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26 April 2019
Malden Food Market Settles Allegations of Food Safety Law ViolationsRead the Press Release
BOSTON – A retail food market in Malden – warned on four occasions since January 2017 by federal investigators about food safety violations – has entered into a consent decree with the government pursuant to which it shall not violate food safety laws, and faces strict penalties if violations are found in the future.
Kim Long Market, LLC, its owner and manager Chien Hong Pham, and its manager Thomas Pham, have entered into a consent decree that permanently enjoins them from violating the Federal Meat Inspection Act (FMIA). The government filed its complaint after a series of U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) inspection activities of Kim Long Market showed that the defendants had purchased, offered for sale, and sold meat food products that were not inspected by the FSIS, and were misbranded. In addition, the defendants failed to maintain appropriate business records concerning the purchase and sale of these products.
The proposed consent decree was filed with the court and is awaiting judicial approval. Under the consent decree, USDA investigators will continue to have broad access to the premises of Kim Long Market to inspect and examine the facility, its inventory and records. The defendants will also face significant financial penalties for any further violations of the FMIA.
“Consumers should be able to trust that their food is produced and sold under safe and sanitary conditions,” said United States Attorney Andrew E. Lelling. “This consent decree establishes procedures to prevent this business, and its owners, from further jeopardizing the health of customers.”
“FSIS investigators are on the job protecting public health every day,” said Carmen Rottenberg, FSIS Administrator. “Our work is critical to protect American families and the food supply, and we will not tolerate blatant disregard for food safety laws.”
U.S. Attorney Lelling and FSIS Administrator Rottenberg made the announcement today. Assistant U.S. Attorney Anita Johnson of Lelling’s Civil Division handled the case.
MS-13 Member Indicted for Racketeering ConspiracyRead the Press Release
BOSTON – An alleged member of the transnational criminal gang La Mara Salvatrucha, or MS-13, was indicted on Wednesday, April 24, 2019, on racketeering conspiracy.
Edwin Amaya Mejia Alvarado, 18, a Salvadoran national who had been residing in East Boston, was indicted on one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as racketeering or RICO conspiracy. Amaya Mejia was detained following an initial appearance in federal court in Boston.
As alleged in the indictment, MS-13 is a violent street gang with members in Massachusetts and across the United States. Among other things, gang members attempt and use violence to enhance the gang’s prestige and expand their criminal operations. MS-13 members have engaged in acts of violence in Massachusetts including murder, attempted murder, robbery, and assault, as well as other criminal activity, including narcotics trafficking, firearms possession, witness tampering, and witness retaliation. It is alleged that Amaya Mejia is a member of the Huntington Locos Salvatrucha clique of MS-13.
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The defendant also faces deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal District Court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Suffolk County District Attorney Rachael Rollins; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Lynn Police Chief Michael Mageary; and Revere Police Chief James Guido made the announcement today.
The details contained in the indictment are allegations and the defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lancaster Woman Charged with Falsely Claiming She Performed Water Quality Tests at Veterans Affairs’ FacilitiesRead the Press Release
PITTSBURGH - A resident of Lancaster, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of making false claims against the United States, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on April 24, 2019, named Megan Waldman, formerly Megan Breski, 28, as the sole defendant.
According to Indictment, Waldman falsely claimed to have performed water quality tests at various Department of Veterans Affairs facilities causing her employer to charge the Department of Veterans Affairs for the water quality tests.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $250,000, a term of not more than three years supervised release, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael L. Ivory is prosecuting this case on behalf of the government.
The Department of Veterans Affairs – Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lake County Man Sentenced to More Than 11 Years for Methamphetamine DistributionRead the Press Release
Ocala, Florida – Senior U.S. District Judge James D. Whittemore has sentenced James Adelbert Walker, II (43, Leesburg) to 11 years and 3 months in federal prison for conspiracy to distribute more than 500 grams of methamphetamine.
Walker had pleaded guilty on February 5, 2019.
According to court documents, in November 2018, agents with Homeland Security Investigations identified Walker as a distributor of large quantities of methamphetamine in and around Lake County, Florida. Working with a confidential source, agents intercepted an inbound parcel containing four kilograms of methamphetamine intended for Walker. The source then placed a series of recorded telephone calls to Walker in which Walker described his role in distributing “5-10 kilograms [of methamphetamine] per week” over the previous year. Subsequently, Walker was arrested when he attempted to purchase four kilograms of methamphetamine directly from undercover agents. Afterwards, a search of Walker’s residence revealed a firearm, ammunition, numerous packages of marijuana, cocaine, and methamphetamine that was intended for distribution.
“This investigation disrupted a money laundering and drug trafficking organization,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “Thanks to HSI and our law enforcement partners, including the DEA, the U.S. Postal Inspectors, the Lake County and Sumter County Sheriff’s Offices, and the Winter Park and Orlando Police Departments we have stopped dangerous drugs from hitting the streets of our communities.”
This case was investigated by Homeland Security Investigations, the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Winter Park Police Department, the Orlando Police Department, the Sumter County Sheriff’s Office, and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
LaPorte Man Entered Guilty PleaRead the Press Release
SOUTH BEND – Eric R. Weiler, 46, of LaPorte, Indiana, tendered his plea of guilty to production of child pornography, possession of child pornography, and making a destructive device before US Magistrate Judge Michael G. Gotsch, Sr., announced U.S. Attorney Kirsch.
According to documents in this case, on August 23, 2017, a person who lived near Weiler discovered that someone had run wires into the gas tank of that person’s car. On September18, 2017, investigators learned that Weiler had been accessing a vacant house next to the house of the person whose car had been wired to explode. On the same date in September, investigators gained access to the vacant house and discovered writings on interior walls documenting the writer’s attempts to acquire a girl under the age of twelve, ideally a newborn baby, for sexual contact. On September 20, 2017, two incendiary devices were located inside Weiler’s house, one of which is commonly referred to as an improvised explosive device (IED), and the other of which is commonly referred to as a CO2 “cricket” bomb. On September 21, 2017, multiple electronic devices and electronic storage devices were located inside Weiler’s house, some of which contained over 24,000 images and over 80 videos of child pornography. The videos included videos of Weiler engaging in sexual acts with a child under the age of twelve. Weiler’s electronic devices also contained videos of him discussing the explosive devices.
The Magistrate Judge will make a report and recommendation to the assigned District Court Judge whether the tendered plea should be accepted. The parties are afforded 14 days to object to the Magistrate Judge’s recommendation. The District Judge thereafter will decide to accept or reject the tendered plea. The plea is final when the District Court Judge accepts it. A sentencing hearing will then be scheduled by the District Judge.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County Prosecutor’s Office, LaPorte Police Department, Michigan City Police Department, and the Porter County Sheriff’s Department. The case is being handled by Assistant U.S. Attorneys John M. Maciejczyk and Molly E. Donnelly.
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Kansas Man Sentenced for Not Paying Employment TaxesRead the Press Release
KANSAS CITY – A Jefferson County man was sentenced Thursday to three years on probation, with eight months of home detention, for failing to pay over payroll taxes to the Internal Revenue Service for a medical staffing company he owned, U.S. Attorney Stephen McAllister said. In addition, the defendant will have to pay more than $68,000 in restitution and a $3,000 fine.
David Monhollon, 62, Ozawkie, Kan., pleaded guilty to one count of failing to pay payroll taxes owed by First Call Medical Group, LLC. The company provided medical staffing services to health care providers. In his plea, Monhollon admitted he failed to pay a total of $68,261 for seven quarters of the company’s payroll taxes. He admitted he knew the taxes were due but chose to spend First Call’s money elsewhere.
McAllister commended IRS–Criminal Investigation, Department of Justice Tax Division Trial Attorney John Mulcahy, and Assistant U.S. Attorney Leon Patton for their work on the case.
Jordanian National Who Hid Terrorism Conviction from Immigration Officials Sentenced to Prison and Is Stripped of U.S. CitizenshipRead the Press Release
LOS ANGELES – A Jordanian national who was sentenced to prison in Israel after admitting he acted at the direction of a terrorist organization to detonate a roadside bomb in an attempt to blow up a civilian bus in Israel was ordered today to serve a nine-month prison sentence for lying to immigration authorities to obtain U.S. citizenship and, as a result of his conviction, will be deported to Jordan.
Vallmoe Shqaire, 51, of Downey, an admitted member of the Palestinian Liberation Organization, pleaded guilty on January 14 to unlawfully procuring U.S. citizenship. As a consequence of his conviction, Shqaire was denaturalized, and he agreed to be removed to Jordan upon the completion of his prison sentence.
Shqaire was convicted in Israel of numerous violent felonies, including charges related to his role in the failed plot to bomb an Israeli bus and for assaulting persons suspected of cooperating with the Israeli authorities,
When he pleaded guilty earlier this year, Shqaire admitted that he lied to U.S. Citizenship and Immigration Services (USCIS) in order to become a citizen. On his citizenship application and during the interview, Shqaire falsely denied under oath that he had never been arrested, convicted or sentenced for any crime, and that he was never a member of any organization or association. Certified Israeli court records show that Shqaire was, in fact, arrested on two occasions in the late 1980s and early 1990s; was convicted of multiple, violent felonies; and served a prison sentence in Israel.
“By repeatedly lying to USCIS Officers, defendant sought to conceal his extensive and violent criminal history in Israel and attacked the immigration safeguards that are in place to protect persons like the defendant from entering our country,” prosecutors wrote in a sentencing memo that noted Shqaire’s criminal conduct continued after he fraudulently obtained U.S. citizenship. After being granted citizenship, Shqaire was prosecuted in a credit card fraud scheme that led to a state prison sentence, and he made additional false statements to law enforcement officers in an attempt to minimize his significant criminal history.
Shqaire was sentenced today by United States District Judge John F. Walter, who issued the order that Shqaire be removed to Jordan once he completes his prison sentence.
The case against Shqaire was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This matter was prosecuted by Assistant United States Attorneys Annamartine Salick of the Terrorism and Export Crimes Section and Robyn K. Bacon of the Cyber and Intellectual Property Crimes Section.
Jacksonville Man Pleads Guilty to Firearm ChargeRead the Press Release
Jacksonville, FL – Timothy Tijwan Doctor (42, Jacksonville) has pleaded guilty to possessing a firearm as a convicted felon. Due to his extensive criminal history, Doctor qualifies as an Armed Career Criminal and faces an enhanced minimum mandatory penalty of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, on August 11, 2018, multiple officers from the Jacksonville Sheriff’s Office responded to a call at a residence in Jacksonville. As the officers arrived, they observed a crowd of individuals in front of the residence, some yelling, who were engaging in a confrontation. As officers separated individuals in the crowd, Doctor was identified as having a firearm. Officers made contact with Doctor and removed a Ruger 9mm pistol from his waistband. The pistol was loaded with a round in the chamber and 12 rounds in the magazine. At the time, Doctor had numerous prior felony convictions and therefore was prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 25 was:
JEREMY AARON SCHULER, 31, of Bellevue, WA, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Schuler faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Schuler was detained. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-54.
HERMAN ELISEO MENENDEZ, 24, of Billings, on charges of conspiracy to possess with intent to distribute, possession with intent to distribute and distribution of cocaine. If convicted of the most serious crime, Mendenez faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Menendez was detained. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-48.
BLAKE ZELON ISGET, 24, of Billings, on charges of conspiracy to possess with intent to distribute, possession with intent to distribute and distribution of cocaine. If convicted of the most serious crime, Isget faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-48.
GUS OLDBEAR, III, 20, of Garryowen, on charges of involuntary manslaughter and assault resulting in serious bodily injury. If convicted of the most serious crime, Oldbear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Oldbear was released pending trial. The case was investigated by the FBI. Pacer case reference. 19-34.
CHRISTIAN DANIEL TAKESENEMY, AKA CHRISTIAN DANIEL YARLOTT, 22, of unknown residence, on charges of theft within Indian Country. If convicted of the most serious crime, Takesenemy faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Takesenemy was detained. The case was investigated by the FBI. Pacer case reference. 19-57.
FRANK BRENT FLYING, SR., 35, of Lame Deer, on charges of assault resulting in substantial bodily injury to a spouse, dating or intimate partner. If convicted of the most serious crime, Flying faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Flying was released pending trial. The case was investigated by the FBI. Pacer case reference. 19-30.
SCOT DONALD PETRIE, 61, of Billings, on charges of conspiracy, coercion and enticement and transportation of a person with intent to engage in criminal sexual activity. If convicted of the most serious crime, Petrie faces a maximum 20 years in prison, a $250,000 fine and five years to life of supervised release. Petrie was released pending trial. The case was investigated by the FBI. Pacer case reference. 19-33.
Appearing on April 22 was:
SHAUN DANIEL NIMOCKS, 41, of Missoula, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Nimocks faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Nimocks was detained. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-35.
SEBASTION JOEL GUETTER, 20, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Guetter faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Guetter was detained. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI, the Drug Enforcement Administration and the Billings Police Department. Pacer case reference. 18-129.
MESKA ANN WHITEMAN, 38, of Lame Deer, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Whiteman faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Whiteman was detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-23.
JAMES ALEXANDER LAFORGE, 23, of Lame Deer, on charges of failure to register as a sex offender. If convicted of the most serious crime, LaForge faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release. LaForge was detained. The case was investigated by the U.S. Marshals Service. Pacer case reference. 19-49.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on April 23 was:
CHARLES GIBSON BAILEY, 32, of West Yellowstone, on charges of prohibited person in possession of firearms and ammunition, possession of a destructive device and manufacture of a destructive device. If convicted of the most serious crime, Bailey faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Bailey was detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Yellowstone Police Department. Pacer case reference. 19-9.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Man Sentenced to 10 years and 10 months for Armed Pharmacy RobberiesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that Devin Jefferson (age: 30) of Indianapolis, Indiana was sentenced yesterday by the Honorable Judge Pamela Pepper to 130 months’ imprisonment for his involvement in three armed pharmacy robberies of Walgreens stores located in the Eastern District of Wisconsin.
The investigation revealed that Jefferson and his co-actors traveled from Indianapolis, Indiana, to Milwaukee, Wisconsin, and arrived on May 7, 2017. Over the next three days, Jefferson and his co-actors committed three armed robberies of pharmacies. Jefferson pled guilty to the armed robberies of two Walgreens stores located in Milwaukee, on March 8, 2017 and March 10, 2017, respectively, and the armed robbery of a Walgreens store located in Menomonee Falls, Wisconsin, on March 10, 2017. Jefferson and his co-actors obtained a substantial number of prescription opioids, primarily Oxycodone and Percocets, during the course of their armed robbery spree. At the sentencing, Judge Pepper emphasized the violent nature of these armed robberies, including the fact that one victim was held at gunpoint for a period of six minutes. Judge Pepper stated that when she reviewed the surveillance video of that robbery, the word that came to mind was “cold blooded.”
“No one who works in or visits a pharmacy should have to face a loaded gun,” said U.S. Attorney Krueger. “These robberies highlight how the demand for prescription opioids in street markets drives violent crime; the defendant aimed to resell the pills he and his co-actors stole at gunpoint for a substantial profit. The U.S. Attorney’s Office is committed to working with federal, state, and local partners to combat violent crime and the opioid epidemic to keep our communities safe.”
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent criminals who commit armed robbery of businesses involved in interstate commerce. The U.S. Attorney’s Office collaborates with law enforcement partners to ensure that violent offenders are effectively prosecuted. This prosecution resulted from the collaborative efforts of the following agencies: the Milwaukee Area Violent Crime Task Force; the Milwaukee, and Indianapolis Divisions of the Federal Bureau of Investigation; the Milwaukee Police Department; the Menomonee Falls Police Department; the Milwaukee County District Attorney’s Office; and the Waukesha County District Attorney’s Office. This case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Benjamin Wesson.
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Houston Man Admits to Kidnapping and Killing Postal EmployeeRead the Press Release
HOUSTON – A 31-year-old resident of Houston has pleaded guilty to kidnapping in connection with the death of a U.S. Postal Service (USPS) Employee, announced U.S. Attorney Ryan Patrick.
Don Gaines entered a plea of guilty today to kidnapping and killing the 28-year-old woman.
“Protecting the employees of the USPS is a top priority for the U.S. Postal Inspection Service,” said Inspector in Charge Adrian Gonzalez. “When someone takes the life of one of our employees, we will stop at nothing to identify those responsible and bring them to justice. We extend our appreciation to all our local, state and federal partners that assisted in this investigation.”
That investigation identified Gaines, also a postal employee, as the person who abducted the victim as she left from the U.S. Postal Station - Houston distribution Center on Aline Bender Road, Sept. 11, 2017. The victim’s family reported her missing shortly thereafter. Gaines and the victim had previously been in a relationship and had two children together.
Gaines admitted he choked the victim in her car near his residence in Houston. After he strangled her, Gaines believed the she was dead and transported her to Louisiana. However, during the trip, the victim regained consciousness, after which Gaines drove her to a secluded area off the highway. At that time, he parked the car and walked the victim into the woods where he shot her in the head with a firearm. He abandoned her body and drove back to Houston in her car the same day.
Investigators identified location data on the victim’s car through a GPS device.
Evidence mirrored Gaines’ statements in that the victim’s car was located at his residence the same date he claimed to have choked her. It was also shown that the victim’s car traveled along Interstate 10 through Louisiana, then returned to Houston. A video further showed that Gaines purchased gas on the return drive to Houston after he disposed of the victim’s body.
Ultimately, the investigation led to the remote location in Louisiana where skeletal remains were discovered Oct. 12, 2017. Subsequent DNA analysis confirmed those remains were of the victim.
U.S. District Judge accepted the plea today and has set sentencing for Aug. 22, 2019. At that time, Gaines faces up to life in prison and a $250,000 fine. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPIS conducted the investigation with the assistance of the Houston Police Department, Harris County Sheriff’s Office, Jefferson Davis Parish (Louisiana) Sheriff’s Office, Louisiana State Police, Calcasieu Parish (Louisiana) Coroner’s Office, Forensic Anthropology and Computer Enhancement Services Laboratory at Louisiana State University and the Georgia Bureau of Investigation. Assistant U.S. Attorneys John Jocher and James McAlister are prosecuting the case.
Houlton Man Convicted of Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Larry O’Neal, 45, of Houlton, Maine, was convicted of possessing child pornography today, following a four-day jury trial.
Court records and trial evidence revealed that, in January 2018, O’Neal was found with images of child pornography in his computer in January 2018, when law enforcement executed a search warrant at his home. Agents began investigating O’Neal after his computer was observed on a peer-to-peer file sharing network as having files associated with child pornography.
O’Neal faces up to 10 years in prison, a $250,000 fine and between five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Department of Homeland Security’s Office of the Inspector General, the Immigration and Customs Enforcement’s Office of Professional Responsibility, the Customs and Border Protection Office of Professional Responsibility, and the Maine State Police Computer Crimes Unit. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Holland Man Sentenced for Marijuana Manufacturing and Money Laundering ChargesRead the Press Release
BOSTON – A Holland man was sentenced today in federal court in Worcester in connection with a marijuana manufacturing operation.
Peter Molle Jr., 36, was sentenced by U.S. District Court Judge Timothy S. Hillman to nine months in prison and two years of supervised release. In January 2019, Molle pleaded guilty to two counts of manufacturing marijuana and possessing marijuana with intent to distribute and one count of money laundering. Molle was arrested in December 2017 and released on conditions.
In February 2017, a search warrant was executed at Molle’s residence in Holland where a commercial-style marijuana grow operation with more than 100 marijuana plants were discovered. Even after the execution of the search warrant, Molle continued to engage in substantial black-market marijuana cultivation. In December 2017, agents executed another search warrant at Molle’s house and again located a significant commercial-style marijuana grow operation. The investigation also found that Molle used cash derived from the sale of marijuana to pay for expenses relating to his marijuana business, including to pay down the balance on a credit card that he used to purchase marijuana-related cultivation supplies.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.
High Desert Resident Who Claimed to be a Licensed CPA Convicted in Tax Scheme that Collected over $1 Million in Fraudulent RefundsRead the Press Release
LOS ANGELES – A San Bernardino County tax preparer was found guilty late Thursday of filing false and fraudulent tax returns with the Internal Revenue Service as part of a scheme that illegally generated more than $1 million in refunds.
Scott Douglas Cutting Sr., 69, of Apple Valley, was found guilty by a federal jury at the conclusion of a three-day trial. Following about two hours of deliberations, the jury convicted Cutting of six felony counts of aiding and assisting in the preparation of false and fraudulent tax returns.
Cutting, who portrayed himself as a CPA despite his license expiring in 1989, prepared and filed tax returns and then had the refunds directly deposited into his own bank accounts. The evidence presented at trial showed that Cutting kept hundreds or thousands of dollars from each fraudulent tax return he filed, often giving clients nothing or only a small portion of the refund.
Cutting filed on behalf of low- or no-income individuals income tax returns that falsely claimed income or credits to fraudulently create a tax refund. Cutting electronically filed the returns, but he did not identify himself as the preparer of the tax returns. Cutting often filed tax returns for people when he had no authority to do so, using their names and Social Security numbers, as well as the names and Social Security numbers of their dependents, without their permission.
The investigation in this case revealed that, from 2008 to 2012, Cutting prepared and filed approximately 314 false or fraudulent tax returns, and the IRS issued approximately $1.09 million in refunds.
In addition the six guilty verdicts returned on Thursday, the jury acquitted Cutting of one count.
Cutting is scheduled to be sentenced by United States District Judge George H. Wu on June 27. As a result of the guilty verdicts, Cutting faces a statutory maximum sentence of 18 years in federal prison.
The investigation of Cutting was conducted by IRS Criminal Investigation.
The matter is being prosecuted by Assistant United States Attorneys Veronica M.A. Alegría and Bryant Y. Yang of the International Narcotics, Money Laundering, and Racketeering Section.
Hazelwood Man Pleads Guilty to Armed Carjacking SpreeRead the Press Release
St. Louis, MO –Jorion Garrett, 21, of Hazelwood, MO, pleaded guilty to three carjacking and two firearms charges. Garrett appeared today before U.S. District Judge Catherine D. Perry, who accepted his plea and set his sentencing date for July 31, 2019.
According to the plea agreement, on October 28, 2017, near the 5600 block of Enright Avenue, St. Louis, Garrett approached the victim from behind. Garrett pointed a handgun at the victim, took the victim’s car keys and drove away in the victim’s 2016 Dodge Charger. The Charger was later recovered near Garrett’s residence in Hazelwood, and Garrett’s DNA was located inside the vehicle.
On November 21, 2017, near the 10000 block of Edgefield, St. Louis County, Garrett and another individual pointed a firearm at a victim who had previously parked her vehicle in the driveway of her residence. Garrett told the victim to drop the keys on the seat and go in the house. He and the other individual drove away in the victim’s 2016 Dodge Journey. On December 3, 2017, police found the vehicle parked in the driveway of Garrett’s residence and later located Garrett’s DNA inside the vehicle.
On January 4, 2018, near the 8300 block of Sagewood Lane, Hazelwood, two victims were delivering food to a residence as part of the Meals on Wheels Program. One victim took the meals inside the home while the other remained standing outside near her silver 2014 Jeep. Garrett approached the victim, along with another individual who pointed a handgun at the victim, and told her to “get back.” Garrett entered the driver’s side of the Jeep and drove away with the other assailant. Garrett later fled from police while driving the Jeep, and after he abandoned it, police recovered a fingerprint and DNA belonging to Garrett from inside the vehicle.
Under the firearms charges, Garrett faces a mandatory minimum term of imprisonment of 14 years consecutive to any sentence imposed in connection with the carjacking counts, which carry a maximum term of imprisonment of 15 years on each count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case in cooperation with the Hazelwood Police Department, the St. Louis County Police Department and the St. Louis Metropolitan Police Department. Assistant United States Attorney Lisa Yemm is handling this case.
Ghanaian National Sentenced for Identity TheftRead the Press Release
BOSTON - A Ghanaian national was sentenced today in federal court in Worcester for illegal possession of identification documents and aggravated identity theft.
Yaw Okyere, a/k/a Stephen Okyere Buda, 38, a citizen of Ghana residing in Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison. Upon completion of his sentence, Okyere will be subject to deportation proceedings. In January 2018, Okyere pleaded guilty to possession of five or more false identification documents and aggravated identity theft. Okyere was arrested and charged by criminal complaint in March 2018.
On March 7, 2018, federal agents executed a search warrant at Okyere’s apartment in Worcester, where they seized computers and a printer. An initial forensic review of one of the computers revealed files containing more than 180 Massachusetts driver’s licenses with various names and photographs.
During the execution of the search warrant, agents interviewed Okyere, who stated that he was a citizen of Ghana, had arrived in the United States a few years earlier on a visa, that he had overstayed his visa, and was unsure of his immigration status.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Fourth Defendant Sentenced for Role in Oxycodone ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to five years in prison for his participation in a conspiracy to distribute oxycodone.
According to court documents, Daniel Webster Ray, Jr., 53, of Hughesville, participated in a conspiracy to distribute oxycodone through a scheme whereby one of his co-conspirators, a former medical assistant at doctor’s offices in Arlington and Alexandria, stole blank prescription pads and electronically generated fraudulent prescriptions using a medical recordkeeping system.
Ray both filled prescriptions for his co-conspirator and bought prescriptions and/or already filled-prescriptions from the co-conspirator, in order to sell the oxycodone pills thereafter. Ray paid his co-conspirator $1,000 per pre-filled bottle of oxycodone and $800 for each blank prescription, in order to sell the pills for profit. During the conspiracy, Ray facilitated the distribution of at least 353 oxycodone prescriptions, totaling 42,360 pills of 30 milligram oxycodone.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Brendan Geary and former Special Assistant U.S. Attorney Matthew Anzaldi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-177.
Four Indicted for Firearms Offenses in Vallejo, Vacaville, Oroville, and StocktonRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury returned indictments in the following cases involving illegal firearms offenses.
Jake Edward Howland, 22, of Vallejo, was charged with one count of possessing a machine gun illegally. According to court documents, on February 24, 2019, sheriff’s deputies responded to a call reporting that someone was shooting a fully automatic weapon on the levee in the unincorporated area of Solano County, near Dixon. The deputies located Howland and found an empty .40-caliber high-capacity ammunition magazine on his person along with a .40-caliber pistol nearby that had been modified to function as a machine gun. Several witnesses had seen Howland firing the pistol before the deputies arrived. This case is the product of an investigation by the Solano County Sheriff’s Office with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Kenny Xyrus Losito, 30, of Vacaville, was charged with one count of possessing a firearm as a felon. According to court documents, on March 14, 2019, during a traffic stop, officers noticed a pistol hidden under Losito’s leg on the driver’s seat. A search of the vehicle revealed over 1 pound of marijuana, several dozen Alprazolam (Xanax) pills, and a loaded Ruger 9 mm pistol. Losito was also carrying over $5,000 in cash at the time. Losito cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense. This case is the product of an investigation by the Vacaville Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Christopher Ballez, 34, of Oroville, is charged with one count of being a felon in possession of a firearm. According to court documents, sheriff’s deputies recovered a Sig Sauer handgun by the side of the road after Ballez had attempted to discard it while being followed by a deputy. Ballez is a previously convicted felon and is therefore prohibited from possessing a firearm. This case is the product of an investigation by the Butte County Sheriff’s Office and the FBI. Assistant U.S. Attorney James Conolly is prosecuting the case.
Marquez Jeter, 42, of Stockton, was charged with one count of unlawful trafficking in firearms, three counts of being a felon in possession of a firearm, and one count of illegal possession of a machinegun. According to court documents, on March 13, 2019, Marquez Jeter sold a Glock pistol to a confidential informant in exchange for $1,200. On April 10, 2019, Jeter offered the confidential informant access to a new supply of firearms. The next day, Jeter sold him 15 guns for $16,500. Jeter is a previously convicted felon and cannot lawfully possess firearms. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, Howland, Losito, and Ballez face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted, Jeter faces five years in prison and a $250,000 fine for unlawful dealing in firearms, 10 years in prison for illegal possession of a machinegun, and 10 years in prison and a $250,000 fine for the three counts of being a felon in possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases were brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Founder of Local Technology Company Charged with Operating a $60 Million Investment FraudRead the Press Release
Assistant U.S. Attorney Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – April 26, 2019
SAN DIEGO – Jonny Ngo, the former president and chief executive officer of NL Technology, LLC, was arraigned today on a 21-count indictment charging him with wire fraud, mail fraud and money laundering in connection with operating a $65 million investment fraud. The hearing took place in federal court before U.S. Magistrate Judge Mitchell D. Dembin after the indictment was unsealed.
According to the indictment, Ngo induced his victims to invest funds in various short-term investment contracts by making false representations, including that: (a) investor money would be used to fund wholesale purchase orders of smartphone screens and other electronic goods; (b) NL Technology was a regular supplier of smartphone screens to a number of buyers, including two buyers who each ordered approximately $2 million of product from NL Technology; (c) all wholesale orders funded by investor money was pre-purchased by NL Technology clients; and (d) the quality of the products and safety of investor funds used to purchase the products was guaranteed by a third-party escrow company.
The indictment further alleges that Ngo created counterfeit invoices falsely indicating that NL Technology had substantial purchase orders from alleged wholesale companies. The indictment alleges that Ngo also provided false financial statements purportedly certified by an accountant showing NL Technology earned income from its wholesale business totaling $12.5 million in 2015 and $15.4 million in 2016. Moreover, as alleged, Ngo fabricated bank statements or screenshots from bank statements held in the name of NL Technology with individual line items altered to appear as legitimate wholesale business transactions. Lastly, Ngo created false checks from wholesale companies allegedly doing business with NL Technology.
To further his investment fraud, Ngo and others allegedly told investors that they could roll over their investments into future investment contracts with NL Technology, when in fact no such future investments were possible. Also, Ngo allegedly lulled investors about the continued viability of NL Technology through materially false representations, including that NL Technology had an outstanding purchase order from a smartphone repair company for approximately $300,000, when in fact, no such order existed.
Instead of investing the funds in the business, the indictment alleges that Ngo converted investor funds to his own personal use and benefit by spending the money on a home, luxury cars and gambling. As a result of his investment fraud, it is alleged that Ngo induced investors to part with more than $60 million, and ultimately caused millions of dollars in losses.
“Investment fraud has a long-lasting and devastating effect on victims in our community,” said U.S. Attorney Robert S. Brewer, Jr. “When these schemes are brought to our attention, we will work collaboratively with our law enforcement partners to unravel the fraud and hold those responsible for profiting from it.”
FBI Acting Special Agent in Charge Suzanne Turner said: “Mr. Ngo's alleged technology business scheme was, in fact, a plan to deceive investors, luring them into a false sense of security about their investments, falsifying documents to cover the lies and stealing the funds for personal use. The FBI will continue to identify and investigate those who defraud investors. We ask anyone who has information related to investor fraud submit a tip at https://tips.fbi.gov/.”
U.S. Postal Inspection Service Inspector in Charge Nichole Cooper stated: “Mr. Ngo is accused of a scheme that separated millions of dollars from consumers who believed they were making legitimate investments. However, those who commit crimes like this one fail to realize that Postal Inspectors and our federal law enforcement partners will discover these greedy schemes and will bring the culprits to justice for their crimes against unsuspecting investors.”
The Government moved to detain the defendant as a risk of flight. Judge Dembin set a detention hearing for Tuesday, April 30, 2019 at 9:30 a.m. before U.S. Magistrate Judge Ruben B. Brooks. The defendant will remain in custody until the hearing. Judge Dembin also scheduled a motion hearing/trial setting for June 7, 2019 at 11 a.m. before U.S. District Judge Jeffrey T. Miller.
DEFENDANT Case Number: 19CR1391-JM
Jonny Ngo Age: 32 San Diego, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1343 – Wire Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 18, United States Code, Section 1341 – Mail Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 18, United States Code, Section 1957 – Money Laundering
Maximum Penalties: 10 years’ in prison, a fine of $250,000, three years of supervised release
AGENCIES
Federal Bureau of Investigation
United States Postal Inspection Service
An indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Former Tax Return Preparer Sentenced to Prison for Tax and Bankruptcy FraudRead the Press Release
A former tax return preparer in Shawnee, Kansas, was sentenced to 24 months in prison yesterday for preparing a false tax return and making a false bankruptcy declaration, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister of the District of Kansas.
According to documents filed with the court, Geoffrey Rotich owned and operated Inventax, a tax preparation business in Shawnee, Kansas. For tax years 2010 through 2012, Rotich filed at least 40 fraudulent individual income tax returns in an effort to increase the claimed refunds for himself or his clients. Rotich also knowingly filed a fraudulent bankruptcy petition, which failed to disclose his interest in Inventax and to fully identify all of his bank accounts.
In addition to the term of imprisonment, U.S. District Court Judge Daniel D. Crabtree ordered Rotich to serve two years of supervised release and to pay restitution in the amount of $86,523 to the Internal Revenue Service (IRS).
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation and Homeland Security Investigations, who conducted the investigation, and Trial Attorney Timothy M. Russo of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas, who prosecuted this case, and the U.S. Trustee’s Office in Wichita, Kansas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Former S&P Analyst Convicted in Insider Trading SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SEBASTIAN PINTO-THOMAZ, a former credit ratings analyst at Standard & Poor’s, was convicted today of participating in two schemes to trade on material, nonpublic information in advance of the Sherwin-Williams Company’s acquisition of the Valspar Corporation, following a seven-day jury trial before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey Berman said: “Sebastian Pinto-Thomaz stole confidential information from his employer and passed it to two men he had known for years – and he did it for his own personal benefit. While the defendant attempted to blame his mother for this conduct at trial, as a unanimous jury found, it was Pinto-Thomaz who committed insider trading.”
According to the evidence presented during the trial and statements made in related court filings and proceedings:
Rating Evaluation Services and the Insider
When a company announces an acquisition, the acquiring company often seeks the opinion of a credit rating agency regarding the potential impact that the acquisition could have on the acquiring company’s creditworthiness. Therefore, companies often contact rating agencies before an acquisition is publicly announced. All the major rating agencies offer a service – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.
In March 2016, Standard and Poor’s (“S&P”), a credit rating agency in New York, New York, assigned SEBASTIAN PINTO-THOMAZ, a credit ratings analyst, to work on a RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”). In connection with this assignment, PINTO-THOMAZ received material, nonpublic information (the “Inside Information”) about Sherwin-Williams’s planned acquisition of Valspar prior to the public announcement of the acquisition. S&P’s written policies prohibited the unauthorized disclosure of confidential information, which included the Inside Information. During his tenure at S&P, PINTO-THOMAZ reviewed and certified his duties of loyalty and confidentiality to S&P and its clients.
The Insider Trading Scheme
In March 2016, PINTO-THOMAZ misappropriated the Inside Information about Sherwin-Williams’s acquisition of Valspar and passed it to Jeremy Millul, his friend, and Abell Oujaddou, his hairdresser, so that they could use it to make profitable trades in Valspar stock and options. On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.
Millul is a Manhattan jeweler who had a close personal friendship with PINTO-THOMAZ. After receiving a tip about the impending Valspar deal from PINTO-THOMAZ, Millul opened a brokerage account on March 13, 2016, and shortly thereafter purchased 480 shares of Valspar common stock. On March 18, 2016, the last trading day before the acquisition was publicly announced, Millul also purchased 75 out-of-the-money Valspar call options. After the acquisition was publicly announced, Millul sold his Valspar stock and options for approximately $106,806 in profits.
Oujaddou is a Manhattan hairstylist and salon owner who has known PINTO-THOMAZ for years, and who is close friends with PINTO-THOMAZ’s mother. During a haircut on March 8, 2016, or March 9, 2016, PINTO-THOMAZ provided Oujaddou with the Inside Information about the impending Valspar deal in exchange for a portion of his trading profits. Then, from March 10, 2016, through March 18, 2016, Oujaddou, who had never previously purchased Valspar or Sherwin-Williams securities, used the Inside Information he had received from PINTO-THOMAZ to purchase 8,630 shares of Valspar stock. After the acquisition was publicly announced, Oujaddou sold his Valspar shares for approximately $192,080 in profits. Following his successful trading, Oujaddou met PINTO-THOMAZ in the paint aisle of a hardware store and paid him a kickback.
Later, in June 2016, the Financial Industry Regulatory Authority (“FINRA”) sent S&P a list of individuals and entities that had traded in Valspar in advance of the public announcement of the acquisition (the “List”). S&P forwarded the List to its employees who had worked on the Sherwin-Williams RES, including PINTO-THOMAZ, asking the employees to respond by stating whether they had a past or present relationship with any individual or entity on the List. Although both Oujaddou and Millul were on the List, PINTO-THOMAZ denied having a relationship with anyone on the List.
* * *
SEBASTIAN PINTO-THOMAZ, 32, of New York, New York, was convicted of two counts of conspiracy to commit securities fraud and two counts of securities fraud. The conspiracy counts each carry a maximum prison term of five years; the securities fraud counts each carry a maximum sentence of 20 years. The securities fraud charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
PINTO-THOMAZ is scheduled to be sentenced before Judge Rakoff on July 29, 2019, at 4:00 p.m.
Abell Oujaddou and Jeremy Millul each previously pled guilty and await sentencing before Judge Rakoff.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo and Andrew Thomas are in charge of the prosecution.
Former Philadelphia Police Officer Sentenced to 9 Years in Federal Prison for Conspiring with Former Baltimore Police GTTF Detective to Distribute Heroin and Other NarcoticsRead the Press Release
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced former Philadelphia Police officer Eric Troy Snell, age 34, of Philadelphia, Pennsylvania, today to nine years in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine. On November 1, 2018, after three days of trial, Snell admitted that he conspired with former Baltimore Police Gun Trace Task Force (GTTF) Detective Jemell Rayam and others to sell heroin and cocaine seized by GTTF members.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
“The community needs to know that when we have evidence of wrongdoing, we will follow that evidence and prosecute you--whether you wear a badge or not,” said Maryland U.S. Attorney Robert K. Hur. “Prosecuting law enforcement officers is painful, but necessary if we are to restore the public’s trust in our justice system. No one is above the law.”
According to court documents and statements at his plea hearing today, Snell is a former Baltimore Police Department (BPD) Officer, who received his training at the Baltimore Police Academy with Jemell Rayam, a former Detective with the BPD Gun Trace Task Force. Snell left the BPD in March 2008, and became an officer in the Philadelphia Police Department on September 29, 2014.
Snell admitted that from at least October 2016 through June 26, 2017, he conspired with Rayam and others to sell heroin and cocaine seized by members of the BPD in Maryland. On October 3, 2016, GTTF Sergeant Wayne Jenkins, Rayam, and other detectives, engaged in a high-speed police chase of G.H. G.H. threw nine ounces of cocaine out of the window of his vehicle before crashing near Mondawmin Mall in Baltimore. The BPD officers retrieved the cocaine and Jenkins told Rayam to sell most of the cocaine and give Jenkins the proceeds of the sale, which Rayam agreed to do.
On October 18, 2016, after learning about the cocaine from Rayam, Snell asked Rayam to give him the cocaine that was stolen from G.H. and not submitted as evidence to BPD. Rayam agreed and on October 20, 2016, traveled to Philadelphia to meet Snell at his residence. Ryam provided the cocaine to Snell, who made arrangements to meet with Snell’s brother, who would sell the cocaine for Snell and Rayam. Later that day. Snell, Rayam, and Snell’s brother met and discussed: the sale of the cocaine; the price the cocaine should be sold for; the amount of money that Snell’s brother would pay Snell after the sale of the cocaine; and the amount of money that Snell would pay Rayam after the sale of the cocaine. On October 23, 2018, Rayam and Snell agreed that Rayam would provide Snell with heroin for Snell to sell and distribute.
Snell admitted that he communicated with Rayam on October 27, 2016, to advised that Snell had received “2K” ($2,000) from the sale of illegal drugs and subsequently deposited $1,000 into Rayam’s bank account. Snell met Rayam several other times to coordinate the drug trafficking and exchange drugs and cash. Snell admitted that he paid Rayam on subsequent occasions for drug proceeds, including making a $2,500 deposit into Rayam’s bank account.
Following Rayam’s arrest on June 26, 2017, Snell spoke with Rayam on the recorded phone system in place at the jail where Rayam was detained. Snell instructed Rayam to “say less” on the recorded jail phones so that law enforcement would not detect their illegal drug trafficking.
On November 14, 2017, Snell was arrested and transported to Baltimore for his initial appearance. During the transport, Snell admitted that he lied to FBI agents when he told them that the payments he made to Rayam were for the repayment of a gambling debt, when in fact, the payments were for drugs he received from Rayam.
During a search of Snell’s residence on November 14, 2017, law enforcement recovered a box in which Snell stored items containing cocaine residue, next to a package of razor blades that were used to cut and process narcotics for distribution, as well as .40-caliber and 9 mm handgun ammunition. From the master bedroom, law enforcement recovered Snell’s Philadelphia Police Department service weapon, a 9 mm handgun, as well as a 40-caliber handgun, and two unregistered short-barrel assault rifles.
Snell admits that the amount of narcotics reasonably foreseeable to him in furtherance of the conspiracy is the equivalent of at least 100 kilograms of marijuana.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
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Former Doctor Sentenced to Prison for Illegal Sale of OpioidsRead the Press Release
ALEXANDRIA, Va. – A former physician was sentenced today to more than seven years in prison for operating a pill mill that illegally distributed over 600,000 oxycodone pills out of a pain management clinic in Woodbridge.
“Pole’s repeated and callous actions endangered the community,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Pole put highly addictive, dangerous drugs into the hands of scores of customers that had no actual need for them. It is exactly the type of irresponsible behavior that continues to fuel the opioid epidemic that is gripping our communities. The Eastern District will remain dogged in its pursuit of heroin traffickers, illicit fentanyl, and dirty practitioners like this as we continue to fight this three-front battle against opioids.”
According to court documents, Shriharsh Laxman Pole, 65, was a physician who voluntarily surrendered his medical license in 2009, and again in 2013. In both instances, Pole admitted to creating a substantial risk to public health by engaging in wrongful prescribing practices for opiates, including oxycodone, oxymorphone, hydrocodone, and hydromorphone.
Upon surrendering his license in 2013, Pole founded Excel Medical Clinic (EMC). EMC operated out of the same office, had the same employees, and the same patients, as Pole’s former practice. Most of EMC’s patients were treated for pain management issues. Pole enlisted the aid of nurse-practitioner and co-conspirator, Janelle Hibson, 63, of Fredericksburg, who pleaded guilty to the same charges on September 6. Hibson pre-signed prescriptions that Pole later filled out and distributed. Patients often received these drugs without undergoing any physical or diagnostic examination to determine whether the drugs were necessary for legitimate medical purposes. Pole admitted that between EMC’s founding and 2015, he caused the distribution of more than 600,000 pills containing oxycodone.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Michael P. Ben’Ary and David Peters prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-303.
Foreclosed Property Preservationist Charged in $10 Million Fraud SchemeRead the Press Release
PROVIDENCE – An East Greenwich, R.I. woman whose business specialized in preserving the current condition of foreclosed homes for resale has been charged in U.S. District Court in Providence. The defendant allegedly operated a scheme whereby she raised and pocketed millions of dollars from investors, often times family members, friends, and business associates, by misrepresenting to them that she needed to raise tens of thousands of dollars for various repair projects. In return for their investment, investors were promised a return of fifty percent of the profit.
According to Court documents, it is alleged that Monique N. Brady, 44, misrepresented projects and solicited multiple bids for significantly more money than an individual project required. Brady performed relatively menial tasks such as grass mowing, snow removal, boiler service, etc., for as little as $20, but represented the bids to investors as full-fledged rehabilitation projects costing tens or hundreds of thousands of dollars. An investigation determined that Brady often solicited multiple bids, primarily by email, for many of the projects.
It is alleged that Brady, owner and operator of MNB LLC, often convinced investors to invest substantial amounts of money claiming she had been awarded Freddie Mac rehabilitation projects, when in fact the projects were associated with real estate entities other than Freddie Mac. The evidence suggests Brady used the Freddie Mac name to provide more credibility to her fraudulent solicitations.
A review of bank and other financial records revealed that Brady allegedly received approximately $10,076,291 in investments from thirty-two individuals based on numerous false and fraudulent representations. Many of these investors had close and personal relationships with Brady, including close friends, her step-brother and the former nanny for her children. Numerous investors suffered substantial harm as a result Brady’s fraudulent conduct, including an elderly woman who lost nearly all of her life savings and another elderly man with Alzheimer’s disease who lost his life savings to Brady.
As part of the scheme, Brady often paid back some of the money she received from one investor with monies received from another. By the time the scheme ended after its discovery in the summer of 2018, twenty-three individuals had lost approximately $4,495,237 to Brady.
Monique Brady appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond on a Criminal Complaint charging her with wire fraud, announced U.S. Attorney for the District of Rhode Island Aaron L. Weisman, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker and Tax Division Trial Attorney Christopher P. O’Donnell.
A Criminal Complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Florida Man Indicted for Wire Fraud and International Money Laundering in Connection with an Investment Fraud Scheme Involving Baton Rouge Area VictimsRead the Press Release
A federal grand jury recently returned a four-count indictment charging Wallace Byers, age 59, of Miami, Florida, with wire fraud and international money laundering. Byers appeared for his arraignment in court today and pled not guilty to the pending charges.
According to the indictment, Byers identified potential victims through social networking websites, commercial services that provided investor leads, and documents that identified the victims of other schemes. The indictment alleges that Byers solicited victims to invest with his company, WBI Associates, LLC, through phone calls, text messages, and email, and promised victims that the money would be invested, variously, in gold production, a lottery company, foreign currency, or “dark pools” or “blind pools.” The indictment further alleges that instead of investing the money sent to him by victims as promised, Byers spent the money on personal expenditures, including among others, approximately $10,000 per month in rent for his residence in a Miami hotel, the lease of luxury cars, including a Ferrari, and gambling in casinos. The indictment alleges that Byers received at least $6,888,000 as a result of his scheme. According to the indictment, two of Byers’ victims lived in the Middle District of Louisiana, one in Baton Rouge and one in Baker.
In addition to charging Byers with wire fraud, the indictment charges Byers with engaging in international money laundering, by sending $3,000,000 to a Swiss bank account, in order to conceal and disguise the nature, location, source, ownership and control of the proceeds of the wire fraud scheme.
U.S. Attorney Brandon J. Fremin stated, “This indictment demonstrates how con artists can prey on our citizens with persuasive lies and false documents. We remain focused on prosecuting the criminals who target our community with financial scams and abuse. Citizens always should be wary of callers who promise large financial returns, and should contact law enforcement if they believe that they have fallen victim to one of these scams. I appreciate the hard work by all those involved in this important matter.”
Eric Rommal, FBI New Orleans Special Agent in Charge, stated "The FBI will continue to aggressively pursue those who prey on our elderly citizens through investment scams and other complex financial crimes."
This matter is being investigated by the Baton Rouge Resident Agency of the Federal Bureau of Investigations, and is being prosecuted by Assistant United States Attorney Elizabeth E. White, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana. The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/elderjustice.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Federal Inmate Sentenced to Additional 48 Months in Prison for Assault with A Dangerous WeaponRead the Press Release
Ocala, Florida – U.S. District Judge James D. Whittemore has sentenced German De Jesus Ventura (40, Sumter County) to an additional 48 months in federal prison for assault with a dangerous weapon with intent to do bodily harm. The sentence will be served consecutive to an existing 35-year prison sentence that Ventura was already serving at the time he committed the assault.
Ventura had pleaded guilty on February 7, 2019.
According to court documents, Ventura was an inmate at the Federal Correctional Complex in Coleman, Florida. In August 2017, he repeatedly struck another inmate in the back of the head with a homemade contraband weapon consisting of a solid metal plate attached to a lanyard. The other inmate suffered a large head wound, two depressed skull fractures, and significant blood loss. A correctional officer who had witnessed the assault quickly apprehended Ventura as Ventura attempted to discard the weapon and flee from the area where the attack had occurred.
This case was investigated by the FBI—Ocala Resident Agency, and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Federal Grand Jury Indicts Alleged Robbery Crew in Well-Planned Jewelry Heists that Netted $1 Million in Stolen GoodsRead the Press Release
LOS ANGELES – A federal grand jury today indicted five members of a robbery crew who allegedly committed sophisticated heists by following wholesale jewelers and bank customers – sometimes for days – and then robbing them, netting the thieves more than $1 million worth of jewelry and tens of thousands of dollars in cash over the past 18 months.
The five defendants, who all are in federal custody after being arrested earlier this month, each are charged with participating in a conspiracy to interfere with commerce by robbery. They are:
- Federico Santiago Quiroz Lucca, 51, of Los Angeles, the alleged ringleader of the scheme;
- Roberto Melendez Falcon, 51, of Los Angeles;
- Roberto Alonso Castellanos, 48, of Pomona;
- Jose Oscar Cupitre Nuñez, 47, of Australia; and
- Jose Manuel Lopez Molina, 45, of Colombia.
Lucca and Nuñez are also charged in a second count with interference with commerce by robbery.
According to an affidavit previously filed in this case, from October 2017 until April 2019, the defendants surveilled and conspired to rob a series of jewelry salespeople and bank customers in the Los Angeles metropolitan area, the San Francisco Bay Area and Denver. Lucca allegedly led and organized the crew’s activities, enlisting help from several Colombian nationals who traveled to Los Angeles to participate in the conspiracy and robberies.
The various heists described in court documents followed a similar pattern: a member of the crew known as a “scout” identified a victim who was likely to be carrying jewelry or cash. The victims typically were jewelers conducting business at jewelry stores or malls in Orange County, the Jewelry District in downtown Los Angeles, or at various trade shows, the affidavit states. The “scout” followed the victim, who often was carrying large amounts of jewelry or cash, and would wait for an opportunity when the scout and co-conspirators could rob the jeweler.
The co-conspirators followed victims to locations such as gas stations and hotels, where the defendants allegedly used a ruse, such as puncturing a car tire, and then posed as a Good Samaritan, or simply used force, to rob the victims.
For example, on February 8, 2018, Lucca allegedly spent four hours following a traveling jewelry salesman making rounds on behalf of his employer to jewelry stores in Orange County. As the victim returned to his car after stopping in Cypress, he was violently pushed from behind, falling into his car door, and his bag containing approximately $400,000 in jewelry was stolen, court papers state.
In a January 2019 incident, a couple who operated a jewelry business in Connecticut was participating in a jewelry show at the Los Angeles Convention Center, when a man wearing a yellow and orange safety vest asked to help them pack up their belongings. According to an affidavit filed in this case, the man in the safety vest ended up pushing their large cart with all their belongings – including a bag containing approximately $400,000 in jewelry – and the bag was later discovered to be missing. Evidence subsequently developed by investigators determined that the robbery crew had tracked the victims for days.
Earlier this month, Lucca, Nuñez, and Molina were arrested in Northern California after they allegedly surveilled various locations, including jewelry stores, a residence, and the Santa Clara Convention Center, where a jewelry show was scheduled to occur, according to court documents.
Castellanos was arrested in Las Vegas, Nevada on April 12, and Falcon was arrested on April 13 in Los Angeles.
All five defendants are scheduled to be arraigned in United States District Court in Los Angeles on May 3.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted in this case, defendants Lucca and Nuñez would face a statutory maximum sentence of 40 years in federal prison, and the other defendants would face statutory maximum sentences of 20 years in prison.
This matter is being investigated by the Federal Bureau of Investigation, which is receiving substantial assistance from the Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorneys Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section and Joshua O. Mausner of the Violent and Organized Crime Section.
Federal Court Shuts Down Alleged Nationwide Tax Scheme Involving Charitable LLCs and Charitable Limited PartnershipsRead the Press Release
A federal court in Miami, Florida, permanently barred Michael L. Meyer from organizing, selling, and making statements about the tax benefits of an allegedly abusive charitable giving tax scheme, the Justice Department announced today. The court’s injunction specifically prohibited Meyer from selling the Ultimate Tax Plan, sometimes referred to as a Charitable LLC or Charitable Limited Partnership. In addition, the court barred Meyer from preparing federal tax returns, performing appraisals for federal tax purposes, representing anyone other than himself before the IRS, furnishing tax advice about charitable contributions, and making statements about transactions having a significant purpose of tax avoidance.
According to the government’s amended complaint, Meyer organized, promoted, and operated an elaborate — and bogus — charitable giving tax scheme throughout the United States. Meyer allegedly told scheme participants they could claim significant tax benefits while retaining complete control over assets purportedly donated to charity.
According to the allegations in the government’s amended complaint, Meyer organized and sold a plan in which participants purportedly transferred property to a limited liability company (LLC) or partnership and purportedly donated their interest in the LLC or partnership to a charity. The United States further alleged that Meyer appraised the “donations,” prepared tax forms for participants to claim unwarranted deductions, and controlled the charities he used to perpetuate the scheme, including Indiana Endowment Fund Inc., Grace Heritage Corporation, and National Endowment Association Inc.
The government argued in its court filings that Meyer falsely advised participants that they could claim an immediate up-front tax deduction, grow assets tax-free, access assets through tax-free loans, and preserve wealth for themselves and their heirs. Because taxpayers retained control over their “donations,” however, all of the alleged tax benefits were unlawful, according to the United States’ court filings. In its amended complaint, the government alleged that Meyer’s scheme deprived the government of at least $35 million in tax revenue.
In addition to barring Meyer from activities described above, the Court also prohibited Meyer from advising, performing work for, receiving compensation from, or referring individuals to six other charities not referenced in the amended complaint: (1) Compassion Beyond Borders Inc.; (2) National Outreach Foundation Inc.; (3) Legacee Charities Inc.; (4) Triton Charitable Foundation; (5) Global Outreach Fund Inc., or (6) Family Office Foundation Inc. The Court further ordered Meyer to dissolve National Endowment Association Inc.; Grace Heritage Corporation; Indiana Endowment Fund Inc.; as well as two other entities, Indiana Endowment Foundation Inc.; and Indiana Outreach Fund Inc. Meyer consented to entry of the injunction.
Principal Deputy Assistant Attorney General Richard E. Zuckerman, head of the Justice Department’s Tax Division, thanked Trial Attorneys Casey S. Smith, James F. Bresnahan II, and Harris J. Phillips of the Tax Division. He also thanked the many IRS attorneys and agents who participated in the investigation.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Grand Jury Returns Indictment Charging Larry Mitchell Hopkins with Firearms ChargeRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., has returned an indictment charging Larry Mitchell Hopkins, 69, of Flora Vista, N.M., with being a felon in possession of firearms and ammunition, announced New Mexico U.S. Attorney John C. Anderson and Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division.
Hopkins, who is also known as Johnny Horton, Jr., is scheduled for arraignment on the indictment at 9:30 a.m. on April 29, 2019, before U.S. Magistrate Judge Karen B. Molzen in the Rio Grande courtroom of the federal courthouse in Albuquerque. Hopkins also is scheduled for a detention hearing at the same time.
The indictment charges Hopkins with knowingly possessing firearms and ammunition in San Juan County, N.M., in Nov. 2017, despite having been convicted of at least one of the following felony crimes, which were punishable by at least a year of imprisonment: being a felon in possession of a firearm; impersonating a peace officer; and possession of a loaded firearm by a convicted felon.
Hopkins has been in custody since he was arrested by the FBI, with assistance from the Sunland Park Police Department, on April 20, 2019, in Sunland Park, N.M.
If convicted on the charge in the indictment, Hopkins faces a maximum statutory penalty of ten years of imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Farmington Resident Agency of the FBI with assistance from the Las Cruces Resident Agency of the FBI. The Sunland Park (N.M.) Police Department assisted in the arrest operation. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Elyria man arrested on child pornography charges after search for missing juvenileRead the Press Release
On April 18, 2019, Jeremy L. Cruz, 39, of Elyria, was taken into custody by Cleveland Division FBI agents, and Sheffield and Avon Lake Police Department officers at a residence in Sheffield Lake, Ohio.
Santa Maria Police Department, in California, asked the public for assistance in a missing 14 year old juvenile case, she had been missing since April 15th. Through initial investigative work, Santa Maria Police Department determined the missing juvenile had been communicating with an adult male she had met online, the adult male was soon identified as Jeremy Cruz of Elyria.
On April 18th, at approximately 3:30am, law enforcement located Cruz at a family member’s residence in Sheffield Lake. The missing juvenile was also present. Cruz was placed into custody without incident and transported to the Sheffield Lake Police Department. The juvenile female was reunited with her family in California.
Law enforcement conducted a digital forensic examination of Cruz’s cellular phone and discovered numerous photos of what is believed to be child pornography.
Cruz has been held in local custody since April 18th and was transferred to federal custody this morning. He has been charged with interstate transport of child pornography. He will have his initial appearance this afternoon in U.S. Magistrate Judge Jonathan D. Greenberg’s courtroom.
This case was investigated by the Santa Maria Police Department, FBI – Los Angeles Division, Sheffield Lake Police Department, Avon Lake Police Department, Elyria Police Department, Lorain Police Department and the Cleveland Division of the FBI and is being prosecuted by the United States Attorney’s Office – Northern District of Ohio.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Drug Cartel Leader Sentenced to 20 Years in Prison for Distributing more than 50 Kilos of MethamphetamineRead the Press Release
The leader of a dangerous drug distribution ring, who continued to run his drug operation after fleeing to Mexico, was sentenced today in U.S. District Court in Tacoma to 20 years in prison, announced U.S. Attorney Brian T. Moran. As early as 2010, JESUS ENRIQUE PALOMERA, 39, conspired with others to distribute methamphetamine in the Tacoma area. PALOMERA not only sold drugs, he sold guns as well – arranging the sale of nine guns in one day to an undercover law enforcement agent. At the sentencing hearing U.S. District Judge Robert J. Bryan said it was one of the largest drug conspiracies he had seen and “the threats of violence here were as bad as I have seen.”
“This defendant was a prolific drug dealer smuggling massive amounts of methamphetamine throughout the West Coast, and very specifically in the Tacoma area,” said U.S. Attorney Moran. “His hallmark was violence and threats of violence, not only against co-conspirators, but against their children, parents and loved ones. This prison sentence puts an end to his drug ring powered by fear.”
According to records filed in the case, following the gun sales in November 2011, PALOMERA fled to Mexico after some of his coconspirators were arrested. PALOMERA continued to run his drug operation from across the border, sometimes communicating with customers in Pierce County via Facebook. PALOMERA frequently threatened those working for him and their family members if they did not obey him. The threats were via Facebook and instant messaging.
PALOMERA continued to be involved in drug distribution in 2014 and 2015. At PALOMERA’s direction more than 50 kilos of methamphetamine were transported from Mexico and up through California and Oregon to Washington. PALOMERA’s threats of violence were made very real when one of the coconspirators went missing and is presumed dead after a load was seized by law enforcement. Sentencing documents reveal that PALOMERA threatened to kill this coconspirator during conversations with other coconspirators, and a number of people saw text messages and photos that indicated PALOMERA directed the beating and killing of the coconspirator
PALOMERA was taken into custody in Mexico in June 2015, and was extradited to the United States in July 2016. In November 2017, he pleaded guilty to two counts of conspiracy to distribute methamphetamine and being an alien in possession of a firearm.
PALOMERA’s coconspirator, James E. Roberts, was sentenced to ten years in prison in December 2015. Roberts owned an auto body shop in Lakewood, Washington, that was central to the drug trafficking ring. Several other conspirators have been sentenced, including:
- Lucas Manglona, who was sentenced to ten years in prison in February 2016.
- Tisha A. Janzen, who was sentenced to ten years in prison in July 2016.
- Daniel R. Vasquez, who was sentenced to 70 months in prison in May 2016.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Lakewood Police Department, the Washington Department of Corrections, the Los Angeles Police Department, the Siskiyou County Drug Task Force, the California Highway Patrol, the Oregon State Police, and the FBI. The case is being prosecuted by Assistant United States Attorneys Michael Dion and Amy Jaquette.
Delaware Man Sentenced to 12 Years in Federal Prison for Conspiring to Commit Sex Trafficking of a 15-Year-Old GirlRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Harry E. Rivers, a/k/a “Hakeem” and “Pots,” age 29, of Delaware, today to 12 years in federal prison, followed by five years of supervised release, for conspiracy to commit sex trafficking of a child.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.
“When an adult profits from sex with a child, that is human trafficking, period,” said Maryland U.S. Attorney Robert K. Hur. “Adults, like Harry Rivers, who encourage or profit from sexual exploitation of children face lengthy terms in federal prison, where there are no suspended sentences and no parole.”
According to his plea agreement, Rivers conspired with co-defendants Steven M. Williams and Jessica L. Schaefer to traffic a 15-year-old girl to engage in commercial sex acts. According to Rivers’ Williams’ and Schaefer’s plea agreements, Schaefer and the victim, Girl 1, engaged in commercial sex acts with men in Delaware. Girl 1 was 15 years old and a resident of Pennsylvania, but lived with her father in Delaware. Schaefer posted ads of herself for commercial sex purposes. Williams responded to one of the ads and determined that Schaefer and Girl 1 would work for him. Williams provided Schaefer and Girl 1 with crack cocaine and they were eventually in debt to Williams. Girl 1 and Schaefer then engaged in commercial sex acts to pay off their debt to Williams. Girl 1 and Schaefer gave any proceeds earned from performing commercial sex acts to Williams. To facilitate the commercial sex acts, Williams rented hotel rooms in his name or the names of men paying for the commercial sex acts, and Rivers provided narcotics to the females and their customers, and helped to arrange “dates” for the females.
In July 2017, Williams drove Girl 1 from Delaware to Elkton, Maryland, separating her from Schaefer. Girl 1 woke up in a motel in Elkton with another sex worker, AH. At Williams’ direction, AH posted an ad featuring a picture of Girl 1 on a website used to advertise and solicit for commercial sex, including the sexual exploitation of minors. While in Maryland, Girl 1 performed commercial sex acts and gave the monies she earned to Williams. Williams physically abused Girl 1 when he thought she was not giving him all the money she earned, and also displayed his firearm to her in a threatening manner.
On July 13, 2017, Girl 1 attempted to leave and hid in AH’s hotel room. Williams, Rivers, and Schaefer traveled from Newark, Delaware to Elkton, to take Girl 1 back to Delaware, to ensure that she did not leave Williams’ employ. Williams and Rivers each had a firearm which they used to threaten AH, demanding that she produce Girl 1. Schaefer had a taser, which she ignited, barged into AH’s room, and took Girl 1 from the room against her will. Rivers, Williams, and Schaefer drove Girl 1 back to Delaware so that she could continue to engage in commercial sex acts.
On July 14, 2017, AH reported the abduction of Girl 1 to law enforcement. Girl 1 was located and rescued in Newark, Delaware the next day, and the defendants were arrested.
Steven M. Williams, a/k/a “Brother Ray”, a/k/a “Ray,” age 39, formerly of Delaware, previously pleaded guilty to sex trafficking of a child by force, fraud, and coercion, and is scheduled to be sentenced on May 17, 2019. Jessica L. Schaefer, a/k/a “Tutti,” age 24, of Pennsylvania, pleaded guilty to conspiracy to commit sex trafficking of a child and is scheduled to be sentenced on June 6, 2019. Williams and Schaefer face a maximum sentenced of life in prison.
As part of their plea agreements, the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
U.S. Attorney Robert Hur commended the FBI, the Elkton Police Department, the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State's Attorney's Office, and the Delaware Department of Justice for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary A. Myers, who are prosecuting the case.
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Dallas Return Preparer Sentenced to Prison in Scheme to File False Tax ReturnsRead the Press Release
A Dallas, Texas-area tax return preparer was sentenced to 51 months in prison today for conspiring to defraud the United States and aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
According to documents and information provided to the court, Mario Melendez worked as a manager and return preparer at Uptown Multi Services, a tax preparation business located in the Northern District of Texas. Co-defendant, Francisco Ventura owned Uptown and other tax preparation businesses.
From November 2013 and continuing through April 2014, Melendez conspired with others to prepare fraudulent federal income tax returns for clients that included false education credits, Schedule C expenses and other such items. Melendez also assisted Ventura during training classes for new tax return preparers during which they instructed employees how to prepare fraudulent tax returns in order to maximize clients’ refunds. Melendez is responsible for attempting to cause an estimated $3.8 million tax loss to the United States.
In addition to the term of imprisonment imposed, Melendez was ordered to serve one year of supervised release and to pay restitution in the amount of $3,885,456 to the Internal Revenue Service (IRS).
Ventura pleaded guilty to aiding and assisting in the preparation of a false return. His sentencing is scheduled for June 14, 2019.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Nealy Cox commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Alexander Effendi of the Tax Division and Assistant United States Attorney Melanie Smith, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
DEA and Partners Host National Prescription Drug Take Back Day,Read the Press Release
OMAHA, Neb., – The Drug Enforcement Administration (DEA) and its national, tribal and community partners will host the 17th National Prescription Drug Take Back Day, Saturday, April 27, from 10 a.m. to 2 p.m., at more 6,000 sites nationwide, including 24 locations in South Dakota. To date, 20 counties in South Dakota and the Standing Rock and Lower Brule Reservations, will host drop-off locations where individuals can dispose of expired, unused and unwanted prescription medications. This service is free and anonymous, however DEA cannot accept liquids, needles or other sharp objects.
Every year, America is losing more than 70,000 people to drug overdose deaths. This is the equivalent of the capacity of the Minnesota Vikings’ U.S. Bank Stadium with additional space needed for 4,000 more people. In 2017, an estimated 3.2 million Americans age 12 or older reported misusing prescription pain relievers within the last month, making prescription opioids the second-most abused drug after marijuana in the United States. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet.
"In South Dakota, 270 people died of opioid overdose between 2014 and 2017," DEA Omaha Division Special Agent in Charge Richard Salter Jr., said. "These were mothers, fathers, children, friends and neighbors in our communities who didn’t need to die. National Prescription Drug Take Back Day is a way in which members of our communities can do their part to prevent the next overdose death by cleaning out their cabinets and those of their loves ones and getting rid of unused, unwanted and expired medications that have the potential for abuse."
Now in its ninth year, the National Prescription Drug Take Back Day initiative continues to remove high amounts of opioids and other medicines from homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. Since the first National Prescription Drug Take Back Day held in 2010, DEA has collected nearly 11 million pounds of medications.
To locate a DEA Take Back site, visit www.DEATakeBack.com or call 1-800-882-9539.
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser joins the DEA in announcing its 17th National Prescription Drug Take Back Day scheduled for April 27th. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including here in the Eastern District of Louisiana. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
U.S. Attorney Strasser stated, “Unfortunately, the average medicine cabinet, overstocked with unused or expired medications, can unintentionally provide opportunities for abuse. DEA’s Take Back Day affords a unique opportunity to anonymously and safely remove these potential hazards and prevent them from affecting families and our communities.”
DEA Special Agent in Charge Brad Byerley said, “Prescription drug abuse has become the nation’s fastest growing drug epidemic. Last year, more Americans died from opioid overdoses than from all other drugs combined, including meth, cocaine and hallucinogens. Unfortunately, these prescription drugs are most often obtained from friends and family, who leave them in home medicine cabinets. DEA’s Take-Back initiative provides citizens an easy and safe way to dispose of unwanted prescription drugs. Please do your part to keep prescription drugs off the streets and help spread awareness in your community.”
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator or www.deatakeback.com where you can search by zip code, city, or state.
Crawford County Man Sentenced to 13 Years for Soliciting Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ricky T. Olson, 60, Gays Mills, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 13 years in federal prison for receipt of child pornography. Olson pleaded guilty to this charge on January 7, 2019.
In February 2015, Olson used a false name to communicate with a child on Snapchat and persuaded the child to send him images and videos of the child engaged in sexually explicit conduct. Olson also admitted that he distributed the images and video to another Snapchat user and that Olson sent the child sexually explicit images of Olson himself.
In sentencing Olson, Judge Conley noted Olson’s lengthy and extensive criminal history, the fact that he created a false persona to commit the crime, and that Olson not only received images, but also redistributed them.
The charge against Ricky T. Olson was the result of an investigation conducted by the Crawford County Sheriff’s Office and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorneys Laura Przybylinski Finn, Diane Schlipper, and Julie Pfluger.
Convicted Felon Sentenced to Prison for Possessing FirearmRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to more than six years in prison for being a felon in possession of a firearm.
“A convicted felon in possession of a firearm poses a serious danger to the safety of our communities and the law enforcement officers who protect us,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Harris has an extensive criminal record and in this case he fired multiple rounds into an occupied apartment and engaged police officers in an armed standoff. Due to their bravery and skilled police work, the officers were able to diffuse the potentially deadly situation and bring Harris to justice. My sincere thanks and gratitude to our local law enforcement partners and their efforts to help us remove dangerous individuals like Harris from our community.”
According to court documents, in September 2018, Charles Lorenzo Harris, 54, unlawfully possessed and fired a Springfield Armory pistol in an occupied apartment in Alexandria. After firing multiple shots inside an apartment, Harris exited the apartment building holding the pistol in his hand and was confronted by officers of the Fairfax County Police Department. After an approximately 30 minute armed standoff, police were able to disarm and arrest Harris. Law enforcement later found bullet holes in the walls and ceiling of the apartment Harris was visiting, and recovered a bullet from the apartment above the apartment Harris was visiting.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Jessica Kraft and Assistant U.S. Attorney Nicholas U. Murphy II prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-28.
Convicted Felon Pleads Guilty Under Project EJECT to Possession of Multiple FirearmsRead the Press Release
Jackson, Miss. – Montavious Johnson, 25, of Ridgeland, pled guilty today before U.S. District Judge Henry T. Wingate to possession of multiple firearms by a convicted felon, announced U.S. Attorney Mike Hurst, Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration (DEA).
Johnson was arrested on September 11, 2018, as part of a joint operation by the Hinds County Sheriff’s Office, the Richland Police Department, DEA and ATF. After arresting Johnson for the sale of narcotics, officers executed a search warrant at the apartment in Jackson where Johnson was staying. Numerous firearms were recovered, including two AR-15 semiautomatic rifles and four pistols. Johnson also had a sixty-round high capacity magazine loaded in one of the AR-15’s.
Johnson had previously been convicted of state felony offenses in Madison County, Mississippi and Hinds County, Mississippi. At the time of his arrest, Johnson was on parole from prior state convictions and was wearing an ankle monitor. Upon his arrest on federal charges, Johnson was ordered detained without bond pending the outcome of his case.
Johnson will be sentenced by Judge Wingate on July 25, 2019. He faces a maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Hinds County Sheriff’s Department, the Richland Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Cocoa Beach Man Indicted for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Albert Chris Partee (25, Cocoa Beach) with disaster-assistance fraud involving Hurricane Irma. If convicted, Partee faces a maximum penalty of 30 years in federal prison.
Partee is currently incarcerated on unrelated charges in Indiana. He is scheduled to make his initial appearance in Jacksonville on May 20, 2019.
According to the indictment, in September 2017, Partee falsified records concerning his primary residence when submitting an application for assistance to the Federal Emergency Management Agency’s Individuals and Households Program for Hurricane Irma.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Chicago Felon Convicted of East Texas Drug Trafficking CrimesRead the Press Release
TEXARKANA, Texas – A 44-year-old Chicago, Illinois, man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James L. Morgan was found guilty of possession with intent to distribute methamphetamine and being a felon in possession of a firearm. The verdict was reached today following a four-day trial before U.S. District Judge Robert W. Schroeder, III.
According to information presented in court, on Sep. 28, 2017, Morgan was stopped by Texas DPS troopers on IH-30 near Mt. Pleasant, Texas, for failing to maintain a single lane of traffic. During the traffic stop, Morgan fled on foot while a passenger, Antonio Alexander Lee, got back in the vehicle and drove away before being stopped by spike strips in Bowie County, Texas. Morgan was apprehended on a rural county road after crossing all lanes of IH-30 on foot and a barbed wire fence. A search of the vehicle revealed more than 75 grams of actual methamphetamine, a loaded firearm, a digital scale and approximately one gram of heroin. Further investigation revealed Morgan was a convicted felon and prohibited from owning or possessing firearms or ammunition. Morgan and Lee were indicted by a federal grand jury on Oct. 18, 2017.
Lee pleaded guilty to conspiracy to possess a controlled substance and was sentenced to 94 months in federal prison on Aug. 21, 2018.
Under the federal statute, Morgan faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
This case was investigated by the Texas Department of Public Safety, Criminal Investigation and Highway Patrol Divisions; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Drug Enforcement Administration; Titus County Sheriff’s Office; Bowie County Sheriff’s Office; and the Cass County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Allen Hurst, Jonathan R. Hornok and Graham Jones.
Charleston Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
Faces up to 30 years incarceration for gun and drug possession at local casino
CHARLESTON, W.Va.—A Charleston man pled guilty to federal drug and gun charges, announced United States Attorney Mike Stuart. Michael A. Parker, 37, pled guilty to possession with the intent to distribute cocaine, and to being a felon in possession of a firearm. He is scheduled to be sentenced on August 8, 2019 and faces up to 30 years in prison. Parker also agreed to forfeit the firearm and $14,225.87 cash that was recovered from the scene. Stuart commended the investigation by the Nitro Police Department, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police Forensic Laboratory and Mardi Gras Casino Security.
“Cocaine, a firearm, lots of cash and running from police,” said United States Attorney Mike Stuart. “Parker evidently didn’t learn anything from his previous federal drug conviction and needs to go back and try again.”
Parker admitted that on July 28, 2018 at 5:00a.m., he had driven to the Mardi Gras Casino in Nitro, West Virginia. He double-parked the car he was driving and went into the casino. Casino security noticed the double-parked car and also saw a gun on the floorboard of the car. Casino security contacted the Nitro Police to get their assistance in asking Parker to move his car. Parker initially agreed to move the car and offered to meet the police outside. Instead, Parker walked out a different door of the casino, fled into the woods near the casino, and hid. Casino security workers monitored Parker’s flight with security cameras and relayed this information to the Nitro Police. Parker was quickly located and eventually agreed to return to his car. Once there, Parker agreed to unlock his car and the police recovered the gun. While securing the firearm, the Nitro Police officer immediately noticed a quantity of cocaine and a large stack of cash in the car. Once this evidence was removed from the car, Parker fled a second time into the woods. He was eventually apprehended with the assistance of a K9 unit. Police recovered a large bag of cocaine, 5 smaller bags of cocaine, a bag of marijuana, $14,225.87 cash and a Smith and Wesson .380 caliber pistol with 11 rounds of ammunition and an extended magazine. Parker is a prior convicted felon, having a 2004 federal conviction of distribution of cocaine base and possession with the intent to deliver cocaine. Parker has not been pardoned or otherwise had his right to own a firearm restored. The ATF traced the firearm and concluded it had traveled in interstate commerce. The West Virginia State Police Forensic Laboratory tested the recovered drugs and confirmed that they were cocaine and marijuana, both controlled substances.
Assistant United States Attorneys Erik S. Goes and Kristin Scott are handling the prosecution. Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
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Caregiver Sentenced to Prison for Defrauding Client of $100KRead the Press Release
NEWPORT NEWS, Va. – A Hayes woman was sentenced today to more than five years in prison for stealing approximately $100,000 from a disabled woman for whom she provided caregiving services.
“The financial and emotional harm these deceitful and illegal acts can cause victims and their family members cannot be overstated,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Denton is a serial fraudster who in this case defrauded and victimized a particularly vulnerable woman who had entrusted Denton with providing care to her and her son, who also suffers from certain disabilities. Denton abused and violated that position of trust and stole nearly $100,000 from the victim. We will continue to work with our federal, state and local law enforcement partners to make sure we are protecting those in our communities who are most vulnerable.”
According to court documents, Amy Denton, 43, worked as a caregiver for a Gloucester woman who suffered from various medical issues and limitations. In early 2015, her client’s mother passed away, leaving her a number of life insurance policies. In her role as caregiver, Denton obtained notices of the policies, but then forged her client’s signature on various forms to request the life insurance funds. Denton caused the victim to complete a Virginia Durable Power of Attorney Form (POA) that gave Denton access and control over her client’s finances. The woman signed this form without knowing the authority it provided Denton over her finances.
“Fraud and betrayal by a trusted caregiver is a shameful crime,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office. “The price of this defendant’s greed is the financial security of the victim and her son. The FBI will continue to hold accountable anyone who preys on the vulnerabilities of others.”
Denton used the POA to open bank accounts and add herself to her client’s existing bank account. In May 2015, Denton fraudulently obtained five life insurance checks in the total amount of approximately $100,000, and then routed these funds through bank accounts she controlled. She used the funds to purchase a vehicle, pay off court costs related to a prior state fraud conviction, and for other travel and entertainment expenses. Once the life insurance proceeds were spent, in November 2015, Denton attempted to obtain an additional $40,000 in assets that were held by a law firm and would have accrued to her client. In May 2016, the victim learned that her bank account lacked sufficient funds to pay various bills, and had a seizure at the bank and additional seizures thereafter that required hospitalization.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Darrell W. Warren, Jr., Gloucester County Sheriff, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-70.
Bridgeport Tax Preparer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROLANDO RUSSELL, 62, of Bridgeport, waived his right to be indicted and pleaded guilty today in Hartford federal court to preparing false tax returns for clients.
According to court documents and statements made in court, Russell prepared approximately 1,820 federal tax returns for the 2013 through 2016 tax years through a tax return preparation practice he operated in Bridgeport. The returns claimed a total of approximately $11.26 million in refunds, of which the IRS issued approximately $10 million. An investigation revealed that many of the tax returns he prepared included false Schedule C forms (“Profit or Loss from Business”). On the returns, the losses attributed to Schedule Cs totaled approximately $22.2 million, resulting in a corresponding reduction of taxes owed of up to $6.2 million.
Russell pleaded guilty to two counts of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years on each count.
In pleading guilty, Russell agreed that losses suffered by the IRS as a result of his fraud totaled approximately $1.5 million.
Russell is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on August 7, 2019.
As a result of Russell’s fraudulent conduct, many of his clients’ filed tax returns will need to be amended. Russell’s clients are required to resolve their own tax liability with the IRS.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Benton Harbor, Michigan Man Sentenced to PrisonRead the Press Release
SOUTH BEND – Marcus Edwards, age 38, of Benton Harbor, Michigan, was sentenced before United States District Court Judge Jon E. DeGuilio upon his plea of guilty to robbery, carjacking and brandishing a firearm during a crime of violence, announced U. S. Attorney Thomas L. Kirsch II.
Edwards was sentenced to 154 months in prison followed by 2 years of supervised release.
According to documents in this case, on March 3, 2016, Mr. Edwards and a co-defendant entered a hotel in South Bend, pointed a shotgun at a clerk and demanded money. After the robbery, the duo followed a vehicle to a house in South Bend where they pointed a shotgun at the driver and passenger to take their car. Co-Defendant Jerricka Johnson was sentenced in May of 2017 to 70 months for her role in this case.
The case was investigated by the FBI with the assistance of the South Bend Police Department and was prosecuted by Assistant United States Attorney Joel R. Gabrielse.
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Baltimore Felon Sentenced to 16 Years in Federal Prison for Committing a Carjacking at GunpointRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Jonathan Thompson, age 25, of Baltimore, Maryland, to 16 years in prison, followed by five years of supervised release for carjacking and for brandishing a firearm in furtherance of a crime of violence. The sentence was imposed on April 25, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Jonathan Thompson used a gun to commit a carjacking and now faces the reality of 16 years spent in a federal prison with no suspended sentences and no parole - ever,” said U.S. Attorney Robert K. Hur. “Local, state, and federal law enforcement will not tolerate this type of gun crime that terrorizes our streets. We are committed to identifying and prosecuting armed criminals to make our communities safer. To those who would do as this defendant did, I say, please put down the gun. You will save a life—maybe even your own.”
According to Thompson’s guilty plea, the victim was sitting in her vehicle at the intersection of Ednor and Lakeside Avenues in Baltimore. Thompson approached the vehicle and ordered the victim out of the vehicle at gunpoint. Thompson then got into the driver’s side of the vehicle and co-defendant Dominique Chase got into the passenger side of the vehicle and Thompson drove away. Several minutes later Thompson and Chase switched seats, and Chase continued driving away from the location.
The victim called 911, then spoke with Baltimore Police Department (BPD) officers. BPD officers located the vehicle later that day. Chase surrendered to police, but Thompson ran away and hid a loaded firearm as he ran. Several minutes later, officers located Thompson hiding behind a garbage can and arrested him. The officers also recovered the firearm that Thompson had hidden.
At the time that Thompson committed this carjacking, he was on probation from a state sentence for robbery with a deadly weapon. Thompson was released from prison at the end of October 2017. As a condition of his probation, Thompson was wearing a GPS ankle monitor at that time, which electronically tracked Thompson’s location and corroborated Thompson’s movements during the carjacking.
Dominique Chase, age 25, of Baltimore, previously pleaded guilty to carjacking, and faces a maximum of 15 years in federal prison. Both defendants remain detained.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Anatoly Smolkin, who are prosecuting the case.
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Baltimore City Felon Sentenced to 11 Years in Federal Prison for Possession with Intent to Distribute Narcotics and for Illegal Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Allen Johnson, age 38, of Baltimore City, Maryland, to 11 years in federal prison, followed by five years of supervised release, for possession with intent to distribute narcotics and for possession of a firearm in furtherance of drug trafficking. The gun discharged while Baltimore City Police Officers were placing Johnson into custody. Johnson was also prohibited from possessing a firearm due to previous felony convictions. The sentence was imposed on April 25, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore City Police Department.
“This officer, like all law enforcement officers, put his life on the line in order to make our community safer,” said United States Attorney Robert K. Hur. “All too often, guns and drugs go hand in hand—and both are killers. We are committed to working with our law enforcement partners to get both off of our streets and to reduce violent crime in our neighborhoods.”
According to Johnson’s plea agreement, on November 29, 2017, Baltimore City Police officers were on patrol in the Cherry Hill/Brooklyn neighborhoods when they received information that an armed man was in the 800 block of Bridgeview Avenue and had the firearm hidden in his waistband. Police officers responded to the 800 block of Bridgeview Avenue and observed a man matching the description they had been provided, who was later identified as Johnson. As the officers approached Johnson they asked Johnson to show his hands. One of the officers asked Johnson if he possessed a firearm, and Johnson turned away and reached for his waistband. Johnson attempted to flee, and the officer grabbed Johnson from behind. With the officer’s arms wrapped around him, Johnson continued to reach for his waistband. As the officer struggled with Johnson, the firearm discharged, shooting the officer in the wrist. An officer deployed his Taser and subdued Johnson, who was handcuffed and placed under arrest.
A search of Johnson after his arrest recovered 19 vials of cocaine and $80 in cash. Johnson admitted that he intended to distribute the cocaine.
United States Attorney Robert K. Hur commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Hur thanked Assistant United States Attorneys John W. Sippel, Jr., Patricia C. McLane, and Lindsey McCulley, who prosecuted this case.
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April 27 Is Prescription Drug Take Back DayRead the Press Release
OKLAHOMA CITY – The Drug Enforcement Administration will be accepting unwanted prescription drugs on Saturday, April 27, from 10:00 to 2:00 at locations throughout the United States. In western Oklahoma, citizens may drop off prescription drugs anonymously at these locations:
- Oklahoma County Sheriff’s Office, Midwest City Substation (8029 S.E. 29th Street)
- Moore Police Department, Sam’s Club (1705 South Broadway Avenue)
- Concho Agency
- Shawnee Police Department, The Clinic Pharmacy (3210 J.D. Kethley Road)
- Shawnee Police Department, Shawnee Senior Center (401 North Bell Avenue)
- Anadarko Agency (201 East Parker McKenzie Drive)
- Custer County Sheriff’s Office, Walmart Supercenter (1349 East Eagle Road, Weatherford)
- Comanche Nation Police Department (8527 Northwest Madische Road, Lawton)
- Pawnee Agency (123 White Eagle Drive, Ponca City)
To find collection sites nationwide, the public can go to www.DEATakeBack.com or call 800-882-9539.
With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft, and abuse by family members and visitors, including children and teens. In continuation of this effort, DEA and its national, tribal, and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27, from 10:00 a.m. to 2:00 p.m. local time.
Now in its ninth year, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused, and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites will be manned by nearly 5,000 partner law enforcement agencies. The service is free and anonymous. DEA cannot accept liquids, needles, or sharps.
"Addiction causes a tremendous amount of pain and suffering, not just for those addicted to drugs, but also for their families and friends," said Acting DEA Administrator Uttam Dhillon. "Helping people keep their loved ones safe by disposing of unwanted, unused, and expired prescription medications is just one of many ways that DEA is working to break the cycle of addiction and overdose deaths plaguing this country."
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
This release mentions private businesses merely to inform the public of take back locations; it is not intended as an endorsement of any particular business.
Anchorage Man Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Michael John Collier, 32, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve seven years in prison, followed by a lifetime period of supervised release. In February 2019, Collier pleaded guilty to one count of sexual exploitation of a child – distribution of child pornography.
According to court documents, Collier became the subject of an investigation when, in February 2018, APD received a cybertip report from a social media platform through the National Center for Missing and Exploited Children (NCMEC) alleging that an individual with an Alaska IP address was using the platform to exchange images depicting child sexual exploitation. The cybertip identified a suspect user name “Torpedo_todd” describing themselves as a “Lover of natural beauty and innocence (NSFW).” After it was determined that Collier was assigned to that IP address, APD executed a search warrant on his residence and recovered a number of digital devices that were later determined to contain thousands of images and videos depicting child sexual exploitation.
When interviewed by law enforcement at the time of the search, Collier admitted that “TorPedo” user names were aliases he had used, and that the naming convention was a conjunction of the terms Tor (dark web) and Pedo (short for “pedophile”). In a separate interview, Collier admitted that the majority of his child pornography collection depicted children between 11 and 13 years old, as well as toddlers. He also made admissions to using social media platforms to follow minor female children, and discussed viewing a manual on how to exploit children without being apprehended by law enforcement. Collier also described that he had been on a “slippery slope” before being contacted by APD and disclosed that he had started exposing himself to children in person and online.
The Anchorage Police Department (APD) and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case. The Alaska Internet Crimes Against Children (ICAC) Task Force is made up of local, state, and federal agencies who develop effective responses to cyber enticement and child sexual exploitation cases. This support encompasses forensic and investigative components, training and technical assistance, victim services, prevention and community education. This case was prosecuted by Assistant U.S. Attorney Adam Alexander.
The investigation is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
25 April 2019
Zurich Life Insurance Company Ltd. and Zurich International Life Limited Enter Agreement with U.S. Regarding Insurance ProductsRead the Press Release
Zurich Life Insurance Company Ltd (Zurich Life), headquartered in Zurich, Switzerland, and Zurich International Life Limited (Zurich International Life), headquartered in the Isle of Man (collectively Zurich) reached a resolution with the United States Department of Justice yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division. As part of the agreement, Zurich will pay a penalty of $5,115,000 to the United States.
According to the terms of the non-prosecution agreement, Zurich agrees to cooperate in any related criminal or civil proceedings, to implement controls to stop misconduct involving undeclared U.S. accounts, and to pay a penalty in return for the Department’s agreement not to prosecute the insurance providers for tax-related criminal offenses.
“The Tax Division remains steadfast in its goal of ending the use of offshore banking and insurance products when used to commit tax evasion,” said Principal Deputy Assistant Attorney General Zuckerman. “This resolution with Zurich should serve as a strong message to those who use offshore bank accounts and insurance products to evade taxation that the Department of Justice is committed to stopping such fraud.”
Zurich Life was founded in 1922 and operates in Switzerland as an insurance carrier offering life insurance and investment products. As of 2016, Zurich Life had approximately $21.3 billion in assets under management and over 300,000 policies in force. Zurich International Life is based in the Isle of Man and operates as an insurance carrier offering life insurance and investment products. Zurich International Life focuses its business on the international expatriate market. As of 2016, Zurich International Life had approximately $10.6 billion in assets under management and approximately 300,000 policies in force. Zurich Life and Zurich International Life are indirectly owned subsidiaries of Zurich Insurance Group Ltd, a Swiss holding company headquartered in Zurich, Switzerland.
From Jan. 1, 2008, through June 30, 2014, Zurich issued or had certain insurance policies and accounts of U.S. taxpayer customers, who used their policies to evade U.S. taxes and reporting requirements. In particular, Zurich had approximately 420 U.S. related policies, 127 with Zurich Life and 293 with Zurich International Life, with an aggregate maximum value of approximately $102 million, for which the U.S. taxpayer customers did not provide evidence that they had declared their policies to U.S. tax authorities.
To qualify for favorable tax treatment under the U.S. tax code, insurance must meet certain minimal requirements. The policies offered by Zurich Life and Zurich International Life did not meet these requirements. The increase of the principal in these policies was therefore subject to taxation, and the policies were required to be disclosed to the Internal Revenue Service (IRS) on FinCEN Form 114 Foreign Bank Account Report, commonly referred to as an FBAR. In issuing or having undeclared U.S. related policies, Zurich knew or should have known that they were helping U.S. taxpayers conceal from the IRS ownership of undeclared assets, maintained as insurance policies or accounts.
Zurich International Life, in particular, sold insurance products to U.S. taxpayers that were “unit linked,” meaning the cash surrender value and death benefit amount were linked to the value of specified investments. With such policies, the U.S. taxpayer had a suite of specialized investment options, allowing them to access potentially higher returns by taking on the market risk associated with the policies. Some of these unit-linked policies offered a base death benefit that was nearly equivalent to the cost of the policy itself, and in some instances was fully funded by transfers from offshore bank accounts. Upon redemption, the U.S. taxpayer would receive the premium amount plus any investment earnings on the policy less a very small percentage for putative risk and fees.
Despite knowing that some of these policies, which had minimal-to-no risk mitigation function and specialized investment options, were held by U.S. taxpayers, Zurich International Life failed to act appropriately to ensure timely compliance by the policyholders with U.S. tax laws. In at least one instance, uncovered during the course of Zurich Life’s internal review, a former U.S. citizen, who pled guilty to a federal fraud offense after purchasing a Zurich International Life policy, used that insurance policy to hide substantial assets, despite owing approximately $900,000 in restitution to his victims.
Following the commencement of the Department’s Swiss Bank Program, the Zurich Group initiated a global review of the life insurance, savings and pension business sold by all of its non-U.S. operating companies to identify policies or accounts with U.S. indicia. This review prompted an extensive customer outreach to current and former customers with a possible nexus to the United States to confirm the customers’ status as U.S. taxpayers, assess their compliance with applicable U.S. tax and reporting rules, and encourage participation in an IRS voluntary disclosure program.
In July 2015, Zurich contacted the Department to inform it of the initial findings of the self-review. Prior to the self-reporting, Zurich was neither a subject nor a target of any investigation being conducted by the Tax Division. Since this self-disclosure, Zurich has conducted a thorough investigation and reported substantial findings to the Tax Division, including dozens of detailed summaries of account information and comprehensive reports for the U.S. related policies.
In addition to these efforts, the Companies have worked closely with non-U.S. regulators to ensure full disclosure to the Department. For instance, in 2016, Zurich Life applied to the Swiss Federal Department of Finance and received approval to waive Article 271 of the Swiss Criminal Code, which restricted the disclosures that Zurich Life could make to the Department, thereby facilitating Zurich Life’s production of certain information that would have otherwise been prohibited.
Principal Assistant Attorney General Zuckerman of the Justice Department’s Tax Division thanked Senior Litigation Counsel Nanette Davis and Trial Attorney Jack Morgan of the Tax Division for their substantial assistance. The Tax Division also thanks the Internal Revenue Service for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Youngstown man indicted for trafficking crack cocaineRead the Press Release
A federal grand jury returned a two-count indictment charging Rafael Ernesto Dones Rosa, 33, of Youngstown, with possession with intent to distribute crack cocaine and use of the mail in causing or facilitating the commission of a felony.
The indictment alleges that on or about April 3, 2019, Rafael Ernesto Dones Rosa knowingly and intentionally possessed with the intent to distribute at least 500 grams of cocaine.
The indictment also alleges that on or about April 3, 2019, Rafael Ernesto Dones Rosa did knowingly and intentionally use the mail in facilitating the commission of a felony.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Postal Service. The case is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.