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Friday 8 March 2019
Former Border Patrol Agent Sentenced for Accepting Bribes to Facilitate the Trafficking of Illegal DrugsRead the Press Release
HOUSTON - A former U.S. Border Patrol (BP) agent was sentenced to 114 months in prison followed by three years of supervised release for accepting bribes in return for helping to smuggle illegal drugs into the United States.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Perrye Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan Benavides of U.S. Customs and Border Protection (CBP) Office of Professional Responsibility (OPR) made the announcement.
Former BP agent Robert Hall, 45, of La Feria, pleaded guilty Sept. 14, 2018. Today, U.S. District Judge Ewing Werlein Jr. imposed the sentence and further ordered Hall to pay a $20,000 fine.
According to the plea documents, between 2004 and 2014, Hall, working with others including Daniel Hernandez, 46, of Roseville, California, facilitated the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, he provided an individual in the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BP agents working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border and CBP radios. In total, Hall accepted over $50,000 in cash from the DTO in exchange for using his position as a BP agent to enable the DTO’s drug shipments to cross the border into Texas without law enforcement detection.
Daniel Hernandez pleaded guilty Feb. 5 to one count of conspiracy to bribe a public official before U.S. Magistrate Judge Nancy K. Johnson in the Southern District of Texas. Sentencing has been scheduled for May 9, before U.S. District Judge Gray H. Miller, who accepted the plea on Feb. 8.
The FBI investigated the case with the assistance of CBP - OPR. Assistant U.S. Attorney Julie N. Searle and Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section are prosecuting the case.
Five Members of a Robbery Crew Sentenced to a Total of 510 Months in Federal PrisonRead the Press Release
Memphis, TN – Tavares Clayborn, 29, the last member of a five-man robbery crew, has been sentenced to 292 months in federal prison for robbery and for being a felon in possession of ammunition. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, between October 2016 and August 2017, these five individuals were responsible for at least seven robberies in Memphis and Germantown. To commit these robberies, the individuals learned the types of trucks that delivered cigarettes and studied their routes. During each robbery, one or more individual would enter the trailer of the truck, threaten and intimidate the drivers, and make a demand for cigarettes.
All five defendants pled guilty to participating in the conspiracy. Dantrel Pickett was sentenced to 35 months imprisonment for his role in a robbery that occurred on June 1, 2017. Ralph Conrad was sentenced to 41 months imprisonment for his role in robberies that occurred on October 17, 2016, and May 23, 2017. Tarius Martin was sentenced to 64 months imprisonment for his role in robberies that occurred on October 20, 2016, and December 22, 2016. Actiavious Cobb was sentenced to 78 months imprisonment for his role in a robbery that occurred on June 1, 2016, and his possession of a firearm during that robbery. Tavares Clayborn was sentenced to 292 months imprisonment for his role in robberies that occurred on November 23, 2016, June 1, 2017, and August 16, 2017, and an additional ammunition conviction that stemmed from an unrelated shooting in November 2016.
U.S. Attorney D. Michael Dunavant said, "Robbery crews that victimize delivery drivers with violence and intimidation not only interrupt interstate commerce, but also harm individuals, business owners, and the community. Thanks to the great work of ATF and local law enforcement, this crew has been dismantled and held accountable, and an armed career criminal has been removed from our streets for 24 years."
ATF Special Agent in Charge Marcus Watson remarked, "ATF’s Crime Gun Intelligence focuses on reducing violent crime and disrupting the shooting cycle that negatively impact our neighborhoods. The priority of protecting the public is evident with the partnerships of the Memphis and Germantown Police Departments as well as the U.S. Attorney’s Office."
The Bureau of Alcohol, Firearms Explosives and Tobacco, Memphis Police Department and Germantown Police Department investigated this case.
Assistant U.S. AttorneysMarques Young and Elizabeth Rogers prosecuted these cases on behalf of the government.
Federal Jury Finds Metro Denver Men Guilty of Drug TraffickingRead the Press Release
DENVER – Two Metro Denver men were found guilty earlier this week of drug trafficking crimes following a five day jury trial before Chief U.S. District Court Judge Philip A. Brimmer, announced U.S. Attorney Jason Dunn and DEA Denver Division Special Agent in Charge Tim McDermott. Both of the defendants, Omar Humberto Gonzales-Hernandez and Jeremiah U. Serr, were present at the trial in custody. They were remanded to the custody of the U.S. Marshals Service at the trial’s conclusion. Gonzales-Hernandez and Serr will be sentenced by Chief Judge Philip Brimmer on May 17, 2019.
The defendants were charged by criminal complaint on May 11, 2018. They were then indicted on June 6, 2018, to be followed by a superseding indictment on July 10, 2018, and a second superseding indictment on September 13, 2018. On March 5, 2019, the two defendants were found guilty of conspiracy to distribute more than 500 grams of methamphetamine between October 17, 2016, and May 12, 2018. Serr was also convicted of possession with intent to distribute more than 50 grams of pure methamphetamine. The evidence at trial showed that Gonzales-Hernandez, Serr and three co-defendants worked together to distribute multi-pound quantities of methamphetamine purchased in Colorado to a buyer in Virginia where the price of methamphetamine is significantly higher. Three co-defendants previously entered guilty pleas and are awaiting sentencing.
The conspiracy faltered on October 17, 2016 when the Kansas Highway Patrol stopped Jeremiah U. Serr after he was clocked traveling east at 119 mph on I-70. During that traffic stop, the Kansas Highway Patrol recovered one pound of methamphetamine. After the DEA Denver Field Division became involved in the investigation, the Arapahoe County Sheriff’s Department was able to contact Joanna Gonzalez-Zarate in Bennett, CO, on May 10, 2018, as she drove east on I-70. The DEA and Arapahoe County Sheriff’s Department stopped Gonzalez-Zarate and recovered four pounds of methamphetamine. A typical methamphetamine user purchase on the street is a gram or less. One pound of methamphetamine can be broken down into approximately 453 gram units.
During the trial the jury heard testimony from witnesses from Virginia, Kansas, California, Texas, and the Denver Metro area – including the Kansas Highway Patrol, DPD, DEA, and Arapahoe County Sheriff’s Department.
“Methamphetamine continues to be an epidemic in Colorado and is a priority for our narcotics section,” said U.S. Attorney Jason Dunn. “Pure meth can cause overdoses and death. By removing meth dealers from our streets and targeting their source of supply, we continue to protect the people of Colorado.”
“This investigation is a great example of cooperation between law enforcement agencies across the country in battling dangerous drugs from hitting our communities,” said DEA Denver Division Special Agent in Charge Tim McDermott.
This case was investigated by the Drug Enforcement Administration with support from the Arapahoe County Sherriff’s Office, Denver Police Department, West Metro Drug Task Force and the Waynesboro, Virginia Police Department. The case was prosecuted by the United States Attorney’s Office for the District of Colorado. The Government’s case was presented at trial by Assistant United States Attorney Guy Till and Special Assistant United States Attorney Daniel McIntyre.
Federal Grand Jury Indicts Gadsden Man for Multiple CarjackingsRead the Press Release
BIRMINGHAM – A federal grand jury indicted a Gadsden man for two November 25, 2018 carjackings announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, Jr. and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
Luis Sebastian Tello, 23, is charged in a five-count indictment filed in U.S. District Court with stealing a vehicle at gunpoint from a pizza delivery driver in Gadsden, Alabama and then carjacking a second vehicle from two out-of-state travelers at a gas station in Trussville, Alabama. Springville Police Department then stopped Tello for speeding on Interstate 59. Tello fled into the woods and officers from multiple agencies engaged in a manhunt that resulted in his capture later that evening. Tello is charged with two counts of carjacking, two counts of possession of a firearm during a crime of violence, and one count of being a felon in possession of a firearm.
“We commend the FBI, ATF, St. Clair Correctional Facility’s tracking dog team, St. Clair County Sheriff’s Office, Alabama Law Enforcement Agency, and the police departments of Gadsden, Trussville, Springville, and Odenville for their investigation and quick apprehension of this individual,” Town said. “Violent offenders who prey on unsuspecting victims will be taken of the street.”
The maximum penalty for carjacking is 15 years in prison. The penalty for possession of a firearm during a crime of violence is not less than 7 years in prison. The maximum penalty for being a felon in possession of a firearm is 10 years in prison. Each of the charges carries a maximum fine of $250,000.
FBI investigated the case along with ATF, St. Clair County Sheriff’s Office, Alabama Law Enforcement Agency, Gadsden Police Department, Trussville Police Department, Springville Police Department and Odenville Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Birmingham Man for CarjackingRead the Press Release
BIRMINGHAM – A federal grand jury indicted a Birmingham man for a November 5, 2018 carjacking announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
Corderrel Dwayne Poole, 32, is charged in a one-count indictment filed in U.S. District Court with taking the victim’s SUV by violence and intimidation at a business on Green Springs Highway in Homewood, Alabama. Poole was apprehended the same evening by the Lincoln Police Department at the scene of a one-vehicle crash on Interstate 20 in Talladega County.
“The U.S. Attorney’s Office encourages citizens to be vigilant in the parking areas of businesses they visit and commends the individuals who came forward to assist the victim after she was forcibly removed from her vehicle,” Town said. “Thanks to the work of the Homewood Police Department, Lincoln Police Department, and Alabama Law Enforcement Agency for their efforts in bringing this investigation to a quick conclusion.”
The maximum penalty for carjacking is 15 years in prison and a $250,000 fine.
The FBI investigated the case along with the Homewood Police Department, Lincoln Police Department and Alabama Law Enforcement Agency. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Estherville Man to Federal Prison for Meth and GunsRead the Press Release
A man who conspired to distribute methamphetamine and possessed a gun while doing so was sentenced March 6, 2019, to more than 15 years in federal prison.
Todd Christopher Moritz, 47, from Estherville, Iowa, received the prison term after a June 11, 2018, guilty plea to one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine and one count of possessing a firearm in furtherance of his drug trafficking.
Evidence at the guilty plea and sentencing showed that in June 2017, Moritz, driving a motorcycle, attempted to evade police. Moritz crashed the motorcycle, then fled on foot. Once apprehended, officers seized over 7 grams of methamphetamine, baggies, a digital scale, and eight cell phones from Moritz. Despite Moritz’s prior conviction for possessing a firearm as a felon, he also had a loaded gun with an obliterated serial number.
Moritz was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Moritz was sentenced to 189 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Moritz is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala M. Steenholdt and investigated by the Iowa Division of Narcotics Enforcement, Emmet County Sheriff’s Office, Estherville Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa Division of Criminalistics Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3012. Follow us on Twitter @USAO_NDIA.
Elementary School Custodian and Bus Driver Found Guilty of Child Sex EnticementRead the Press Release
COLUMBUS – A citizen jury has returned a guilty verdict against a North Carolina elementary school custodian charged with enticing a child for sex, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. William Pruitt, 49, of Franklin, North Carolina, was found guilty late Thursday afternoon on one count of Enticing a Minor for Sex. The charge carries a minimum ten years to a maximum life in prison and a $250,000 fine. The trial began Monday, March 4, 2019 in a Columbus federal courtroom, presided over by the Honorable Clay D. Land. There is no parole in the federal system. Mr. Pruitt will be sentenced in June.
According to facts presented at trial, on November 10, 2017 Mr. Pruitt began communicating with an undercover agent posing as a 14-year-old girl named “Brianna” on Craigslist, a popular classified advertisements website. The undercover agent was working on a larger Georgia Internet Crimes Against Children (ICAC) sting that operated from November 9, 2017 until November 13, 2017 centered in Columbus, Georgia, targeting on-line child predators willing to pay to have sex with a child. Approximately 20 individuals were arrested during this operation, including Mr. Pruitt. The undercover agent posted an ad in the personals section on November 9, 2017, and Mr. Pruitt responded the next day. During the online conversation, the undercover agent informed Mr. Pruitt several times that “Brianna” was 14 years old. The online chatting became sexual in nature, with Mr. Pruitt making lewd comments and stating directly that he wished to have sex with the girl, asking the girl to send nude photos of herself and even offering to pay money for the child to send her used underwear to his mother’s house for his personal graphic use. During the correspondence, Mr. Pruitt made clear he was traveling from North Carolina to Columbus to meet the child for sex. On November 12, 2017, Mr. Pruitt was arrested at the front door of the undercover house. Following the arrest, Mr. Pruitt made a voluntary, post-Miranda statement, admitting he knew the child was under the age of consent, that he was meeting the child for sex and that he had been battling sexual fantasies with similar age girls. At the time, Mr. Pruitt was the custodian at a North Carolina elementary school and a school bus driver.
“Sexual crimes against children, particularly when the perpetrator is in a position of trust, are truly the most deplorable crimes in our society today. The defendant’s conviction is part of a much larger effort in Georgia to fight the child sex and pornography trade on the internet,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Law enforcement agencies at every level are successfully working together to arrest and prosecute people who intend to hurt children. This collaboration directly results in children being protected in Georgia.”
“The Georgia Bureau of Investigation and the agencies that are members of the Georgia Internet Crimes Against Children Task Force will continue to work together to diligently and proactively seek out those who wish to do harm to our children,” said Debbie Garner, Commander of the Georgia Internet Crimes Against Children Task Force and Special Agent in Charge of the Child Exploitation and Computer Crimes Unit at the GBI.
The Georgia ICAC Task Force is comprised of 200+ local, state, and federal law enforcement agencies, other related criminal justice agencies and prosecutor’s offices. The mission of the ICAC Task Force, created by the U. S. Department of Justice and managed and operated by the GBI in Georgia, is to assist state and local law enforcement agencies in developing an effective response to cyber enticement and child pornography cases. This support encompasses forensic and investigative components, training and technical assistance, victim services, prevention and community education. The ICAC Program was developed in response to the increasing number of children and teenagers using the internet, the proliferation of child pornography, and the heightened online activity by predators searching for unsupervised contact with underage victims. By helping state and local law enforcement agencies develop effective and sustainable responses to online child victimization and child pornography, the ICAC program delivers national resources at the local level.
This case was investigated by the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit (CEACC), the Georgia Internet Crimes Against Children (ICAC) Task Force, the Muscogee County Sheriff’s Office, the Columbus Police Department, the Federal Bureau of Investigation, and the United States Attorney’s Office, Middle District of Georgia, with assistance from the District Attorney’s Office for Chattahoochee Judicial Circuit. Assistant U.S. Attorneys Crawford Seals and Chris Williams are prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
East Bay Cocaine Trafficker Sentenced to 70 Months in PrisonRead the Press Release
OAKLAND – Oscar Rene Noguera Baeza was sentenced today to 70 months in prison for distributing cocaine and being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge.
Baeza, 31, of Concord, Calif., pleaded guilty to the charges on November 9, 2018. According to his plea agreement, Baeza admitted that between June 2017 and February 2018, he distributed over a kilogram of cocaine in a series of transactions. Baeza also admitted that he was paid a total of $36,960 for the cocaine he sold during these transactions. Defendant also admitted that he possessed a Springfield XD40 semi-automatic .40 caliber pistol loaded with eight rounds ammunition, and an extended magazine that could hold at least sixteen rounds of ammunition.
On August 3, 2018, Baeza was charged by information with one count of distribution of cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C), and one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Baeza pleaded guilty to both counts.
In addition to the prison term, Judge Tigar ordered Baeza to serve a 4-year term of supervised release that will begin at the conclusion of his prison term.
Assistant U.S. Attorney Thomas Green is prosecuting the case with the assistance of Elyza Delgado. The prosecution is the result of an investigation by the DEA and Concord Police Department.
East Aurora Woman Arrested for Attempting to Hire A Hitman to Maim Her Ex-boyfriendRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Yanyan Lesser, 47, of East Aurora, NY, was arrested and charged by criminal complaint with transmitting in interstate or foreign commerce a communication containing a threat to injure another person. The charge carries a maximum penalty of five years in prison and $250,000.
Assistant U.S. Attorney Stephanie O. Lamarque, who is handling the case, stated that according to the complaint, on February 19, 2019, Homeland Security Investigations (HSI) in St. Paul, Minnesota, received information that between February 14, 2019, and February 19, 2019, an unidentified individual utilizing the moniker “TREE I,” conspired with another unknown individual on a dark web site to commit a crippling assault of an individual (G.Z.) living in Orlando, Florida.1 “TREE I” directed what was believed to be a hitman found via the dark web site to break G.Z.'s bones and leave him permanently confined to a wheelchair or crutches.
Some of the instructions provided by “TREE I” to the purported hitman included:
• “Because of a business dispute, I would like to give this guy a lesson:give him a good beating and legs broken, waist broken and even cripple the mark of his legs.It need to be looks like a robbery, looks like To rob of his money or property,NOT looks like revenge.”
• “I will add $2500 more to cover the cost of beating, crippling and robbery look like job. Please remember must be looks like a ROBBERY!That's very important!”
• “And please let hitman knows that Chinese guy no speak English also no understanding English too.So when hitman to do the job with crippling and looking like robbery,Remember to Yelled at that Chinese guy:"MONEY!MONEY! " Because that's only the English word that guy can understand it!”
On February 16, 2019, “TREE I” transferred approximately 1.26 Bitcoin (BTC) (approximately $4,577.51 cash) to a BTC wallet address in the control of the dark web site to facilitate the assault. On February 19, 2019, “TREE I” conducted another transfer of approximately .694 BTC (approximate.ly $2,707.95 cash) to the same BTC wallet address to further the request. “TREE I” also provided a photograph of an unknown individual's lower back area with the words "broken waist" written across it.On February 20, 2019, HSI Orlando conducted an interview of G.Z. at his residence. G.Z. stated that he was not aware of any threat against him, but stated that he believed that his ex-girlfriend, the defendant, was unstable and would be capable of doing something like this.
Subsequent investigation, including a review of cell phone and bank records, determined that “TREE I” is the defendant.
Yanyan will make an initial appearance at 2:00 p.m. this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy.
The complaint is the result of an investigation by Homeland Security Investigations Buffalo, under the direction of Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by HSI St. Paul, Minnesota, and HSI Orlando, Florida.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Downey Man Arrested on Armed Robbery Charges in Thefts at Local GameStop Stores that Netted $135,000 in Cash and MerchandiseRead the Press Release
LOS ANGELES – A Downey man has been arrested on federal criminal charges for his role in four armed robberies of GameStop video game stores in Los Angeles and Orange counties that resulted in the theft of $135,000 in merchandise, cash and employees’ cellphones.
Frederick Lopez Jr., 27, was arrested at his residence on Thursday and remains in custody pursuant to a criminal complaint charging him with four counts of interference with commerce by robbery.
According to an affidavit filed with the complaint, Lopez took part in armed robberies of GameStop stores in Lynwood, Rowland Heights, West Covina and Brea between August 28, 2018 and October 26, 2018. Lopez allegedly entered the stores at night, sometimes accompanied by another suspect, and made small talk with the GameStop store clerks before brandishing a gun and demanding merchandise and money from the cash register. Lopez and the other suspect allegedly also stole victims’ cell phones and, on two occasions, ordered the victims to help load the stolen merchandise into a silver minivan registered to Lopez. Lopez’s fingerprint was found on a Nintendo entertainment system recovered from the scene of the Brea robbery, and witnesses and victims later identified Lopez as one of the suspects, the complaint states.
Lopez is expected to be arraigned in early April.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Each of the robbery counts in the complaint carries a statutory maximum sentence of 20 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brea Police Department.
This matter is being prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Bruce K. Riordan of the Violent and Organized Crime Section.
Dominican Republic National Admits Conspiracy and Selling Stolen IdentificationsRead the Press Release
CAMDEN, N.J. - A Dominican Republic national today admitted his role in a conspiracy to commit identity theft, U.S. Attorney Craig Carpenito announced.
Daury Cordero, 31, a citizen of the Dominican Republic with addresses in Camden, New Jersey, and Philadelphia, pleaded guilty before U.S. District Judge Noel L. Hillman to an indictment charging him with one count of conspiracy and one count of unlawful transfer, possession or use of a means of identification. A federal grand jury in Camden returned the sealed indictment Sept. 19, 2018.
IRS Criminal Investigation Special Agents located Cordero in the custody of Immigration and Customs Enforcement.
According to documents filed in this case and statements made in court:
In January 2016, one of Cordero’s accomplices, Cesar Abreu, was cleaning an office building in Cherry Hill, New Jersey. Abreu stole a list titled: “Town of Uxbridge,” which contained names, Social Security numbers, and dates of birth for 62 people. Cordero enlisted another individual, Pedro Santana, to find someone who would use the list of names to create and file fraudulent federal income tax returns. Eventually, Cordero and Santana found a buyer – who was, in fact, an undercover IRS agent – and sold him the list for $2,500.
Abreu pleaded guilty in December 2017 and was sentenced in October 2018 to three years of probation. Santana pleaded guilty in August 2015 and was sentenced in March 2017 to three years of probation and ordered to pay $4.6 million in restitution.
The count of conspiracy and the count of transferring a means of identification to which Daury Cordero pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 28, 2019.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Rocco Cipparone Jr. Esq. Haddon Heights, New Jersey
Dominican National Sentenced for Social Security FraudRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for Social Security fraud.
Luis Alberto Fernandez Fernandez, 28, a Dominican national residing in Salem with legal permanent resident status, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (12 days) and one year of supervised release. In November 2018, Fernandez Fernandez pleaded guilty to one count of false representation of a Social Security number. He was arrested in July 2018 as part of a law enforcement sweep aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
In September 2016, before he became a lawful permanent resident, Fernandez Fernandez applied for a Massachusetts ID card using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. His application was denied.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
District Man Sentenced to Life in Prison with No Possibility of Release in the 2010 Killing of a Government WitnessRead the Press Release
WASHINGTON - Anthony Waters, 51, was sentenced today to life in prison with no possibility of release on a charge of first-degree murder while armed, with aggravating circumstances, in the 2010 killing of a government witness, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Waters, of Washington, D.C., was found guilty by a jury in October 2018 of the murder charge and related weapons offenses, following a trial in the Superior Court of the District of Columbia. Waters initially was found guilty of these charges in 2012 and sentenced at that time to life in prison with no possibility of release. The judge who heard the case in 2012 subsequently granted a defense motion by Waters seeking a new trial. The retrial resulted in the same outcome before the Honorable Craig Iscoe, who sentenced him today.
According to the government’s evidence at trial, Waters and the victim, Derrick Harris, 37, knew each other from the 2600 block of Birney Place SE, and were part of a crew in a neighborhood known as Parkchester. In June 1998, Mr. Harris testified against a member of that crew regarding a 1996 murder that occurred in the Barry Farm area of Southeast Washington. Afterward, Mr. Harris was shunned and marked as a snitch in the neighborhood by many people he knew, including Waters, for cooperating with the authorities.
For many years, Mr. Harris avoided the neighborhood where he knew that people considered him a traitor, but on June 14, 2010, he returned to the 2600 block of Birney Place to meet a friend. At this time, Waters and Mr. Harris got into an argument because Waters believed that Mr. Harris was being disrespectful by returning to the neighborhood. Waters punched Mr. Harris in the face and threatened to kill him if he was still there when Waters returned. Both men left the scene, but Waters returned and hid behind a building, waiting for the victim to come back to his car.
Shortly thereafter, at about 9 p.m., when Mr. Harris returned to the neighborhood, Waters came out from his hiding place, wearing a ski mask, and repeatedly shot Derrick Harris. Mr. Harris died on the scene from his injuries, which included one gunshot wound to the head and five to the back.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department.
They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Margaret J. Chriss, Chief of the Special Proceedings Division; Chrisellen Kolb and John Mannarino, Deputy Chiefs of the Appellate Division, Laura Bach, Deputy Chief of the Homicide Section; Assistant U.S. Attorney Timothy Lucas; Paralegal Specialists Alesha Matthews Yette and Meridith McGarrity; Victim/Witness Advocates Marcia Rinker and Yvonne Bryant; Victim/Witness Services Coordinator LaJune Thames; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Litigation Technology Specialists Anisha Bhatia, Paul Howell, and William Henderson; Supervisory Litigation Technology Specialist Leif Hickling, and Investigative Analysts Zachary McMenamin and William Hamann.
Finally, they praised the work of Assistant U.S. Attorney S. Vinét Bryant, who indicted the case and prosecuted it at both trials.
District Man Pleads Guilty to Federal Charges in Hold-Up of Northwest Washington DinerRead the Press Release
WASHINGTON – Willie Quinones, 28, of Washington, D.C., pled guilty today to federal robbery and firearms charges stemming from a hold-up that took place in October 2016 at a diner in Northwest Washington, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Quinones pled guilty in the U.S. District Court for the District of Columbia to charges of interference with interstate commerce by robbery (Hobbs Act) and using, carrying, brandishing, and possessing a firearm during a crime of violence. The robbery charge carries a statutory maximum of 20 years in prison and the firearms offense carries a mandatory minimum of seven years and a potential sentence of life imprisonment. Under federal sentencing guidelines, Quinones faces a likely range of 57 to 71 months in prison for the robbery charge and at least seven additional years on the weapons offense.
The Honorable Tanya S. Chutkan scheduled sentencing for May 21, 2019.
According to plea documents, on Oct. 17, 2016, at approximately 3:12 a.m., Quinones and an accomplice entered the Steak-N-Egg restaurant in the 4700 block of Wisconsin Avenue NW. Quinones approached employees to gain access to the cash register while his accomplice pointed a gun at them. The employees raised their hands into the air and kneeled on the floor. Quinones then took money from the cash register before demanding access to a safe.
When an employee insisted that they did not have a key to the safe, Quinones yelled to his accomplice to shoot them. The accomplice, meanwhile, held the gun and pointed it around the room at people inside the restaurant. The accomplice asked which person to shoot, and Quinones responded that the accomplice could shoot all of them.
No shots were fired, and Quinones then approached and robbed three customers in the establishment. The two then fled the diner.
At the time of the robbery, Quinones was on probation for an armed robbery in Prince George’s County, Md., and was wearing a GPS tracking device. He was located at 11 a.m., hours after the crime, by MPD officers at an apartment building in Northeast Washington. He was arrested and has remained in custody ever since. No others have been arrested in the case.
This case was investigated by the FBI’s Washington Field Office and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Gregory P. Rosen, with assistance from former Assistant U.S. Attorney Kara Traster.
Detroit man admits to roles in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Juan Holmes, of Detroit, Michigan, has admitted to his involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Holmes, age 24, pled guilty to one count of “Distribution of Heroin.” Holmes admitted to selling heroin in May 2017 in Monongalia County.Holmes faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Des Moines Man Sentenced to 188 Months in Prison for Distribution of Child PornographyRead the Press Release
Des Moines, IA—On March 8, 2019, Joseph Marchesini, age 35, of Des Moines, Iowa, appeared before United States District Court Judge Rebecca Goodgame Ebinger and was sentenced to 188 months imprisonment for distribution of child pornography, with eight years of supervised release to follow. Marchesini pleaded guilty in October 2018 to distribution of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2).
As a part of his plea agreement, Marchesini admitted in July 2016 he distributed child pornography over the internet. The child pornography he distributed included visual depictions of children being sexually assaulted. Marchesini possessed images and videos of the sexual assault of prepubescent children as young as preschool. Marchesini was ordered to pay $3,000 to an identified victim depicted in the child pornography he possessed.
The investigation was conducted by the Des Moines Police Department, Iowa Division of Criminal Investigation's Internet Crimes Against Children Task Force, and FBI Child Exploitation Task Force. This case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Defendants Sentenced for Bribery Scheme at IDOC PrisonRead the Press Release
BOISE - Three defendants have been sentenced for their roles in a bribery scheme uncovered by an FBI investigation at Idaho Department of Correction’s (“IDOC”) request to address concerns of corruption among IDOC correction officers, U.S. Attorney Bart M. Davis announced. On March 7, 2019, Senior U.S. District Judge Edward J. Lodge sentenced former IDOC correctional officer Joshua Barney, 44, to 15 months in prison for smuggling in contraband to former IDOC inmate Collin McIntyre. Also on March 7, 2019, Judge Lodge sentenced McIntyre, 27, to 12 months in prison. Judge Lodge ordered that Barney and McIntyre be placed on supervised release for three years following their prison sentences.
The third defendant was sentenced on March 6, 2019. Judge Lodge sentenced Tiffany Culbertson, 23, who, at the time, was McIntyre’s girlfriend and who gave Barney the bribe money from McIntyre, to a three‑year term of probation with six weekends to be spent in jail.
All three defendants pleaded guilty to conspiracy to commit Hobbs Act extortion under official color of right. According to court records, Culbertson agreed with McIntyre to pay Barney, a correctional officer at IDOC, to bring in contraband in exchange for money. The defendants then followed through with the plan. On one occasion, Culbertson purchased smokeless tobacco and delivered it to Barney, along with a bribe payment. Barney then brought the tobacco into the prison and delivered it to McIntyre, which was prohibited under IDOC policies. At a later date, Culbertson provided a cell phone to Barney, who brought it into the prison and gave it to McIntyre.
This case was investigated by the FBI and IDOC’s Special Investigations Unit.
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Convicted Felon Arrested for Fraud Scheme Involving Local NewspaperRead the Press Release
ALEXANDRIA, Va. – A previously convicted felon was arrested last night on charges related to defrauding investors of a local newspaper, unlawful possession of firearms by a previously convicted felon, and making false statements to the FBI.
According to allegations in the indictments, Brian Thomas Reynolds, 52, of Leesburg, defrauded both investors and lenders to a company that he controlled that operates a local newspaper in Loudoun County. As alleged in that indictment, Reynolds made several materially false and fraudulent representations to actual and potential investors and lenders regarding the existence and value of advertising contracts held by the company, and created fake advertising contracts when no such agreements existed. Reynolds also allegedly made materially false and fraudulent representations regarding the company’s historical advertising revenues and the amount of money that Reynolds and others had invested in the company, falsely claimed that another individual had agreed to “match” the investments of certain investors, falsely claimed to at least one investor that the company lacked any debt, understated the amount of debt owed by the company to other investors, and materially overstated the amount of money held by the company in its bank accounts.
The indictment further alleges that Reynolds created altered loan documentation to defraud an individual who had lent money to the company by changing the language of the loan agreement to conditions that were materially more favorable to Reynolds and his company than had actually been agreed to by the lender. According to the indictment, Reynolds also made materially false representations regarding the number of issues previously distributed by the newspaper, and falsely claimed that a prominent businessperson served on the company’s advisory board, when in fact that individual held no position on the board and played no role in the operation of the business.
A second indictment charges Reynolds, who is a convicted felon, with unlawfully possessing eight firearms and associated ammunition, and with making false statements to the FBI regarding his use of firearms.
Reynolds is charged with 11 counts of wire fraud, one count of unlawful possession of firearms by a convicted felon, and one count of making false statements. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud, a maximum penalty of 10 years in prison for the unlawful possession of firearms, and a maximum penalty of 5 years in prison for making false statements. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement. Assistant U.S. Attorney Matthew Burke and Special Assistant U.S. Attorney Russell L. Carlberg are prosecuting 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:19-cr-70 and 1:19-cr-71.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Concord Man Sentenced to 77 Months for Drug TraffickingRead the Press Release
CONCORD - Jason Sfara, 44, of Concord, was sentenced to 77 months in prison for possession of fentanyl, cocaine, and methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, parole officers attempted to conduct a parole inspection of Sfara's apartment in Concord on May 15, 2018, and Sfara fled to the roof of the building. The Concord Police Department responded to provide assistance and arrested Sfara on the roof. Officers ultimately obtained a search warrant for Sfara's apartment and found an array of illegal drugs including 107.8 grams of fentanyl, 32 grams of cocaine, and 20 grams of methamphetamine, along with digital scales and other drug distribution paraphernalia.
Sfara previously pleaded guilty on November 26, 2018.
“In New Hampshire, drug trafficking has created the most serious public health hazard in living memory and also the greatest challenge for law enforcement,” said U.S. Attorney Murray. “I commend the Concord Police Department for its efforts to remove these deadly substances from the streets of our Capital City. We continue to work closely with all of our law enforcement partners to identify, prosecute, and incarcerate those who choose to endanger our community by selling dangerous illegal drugs.”
This matter was investigated by the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.
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Buffalo Man Charged with Selling Fentanyl and HeroinRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Brandon Barclay, 30, of Buffalo, NY, with distribution of fentanyl, and distribution of heroin and butyryl fentanyl. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Charles J. Volkert, Jr., who is handling the case, stated that according to the indictment, on two separate occasions in May and June 2018, the defendant sold fentanyl and a mixture of heroin and butyryl fentanyl to an undercover law enforcement officer.
Barclay was released on conditions following a detention hearing before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy; Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boston Man Pleads Guilty to Money LaunderingRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to money laundering.
Juan Peguero, 29, pleaded guilty to two counts of money laundering. U.S. District Court Judge William G. Young scheduled sentencing for May 29, 2019. Peguero was charged in August 2018 and was released on conditions.
On two occasions in 2015, Peguero transferred almost $500,000 worth of drug proceeds - over $398,000 in April and $90,000 in June.
The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the laundered funds. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Baldwin County Man Sentenced to Time Served for Possession of a Firearm after Conviction for Misdemeanor Domestic ViolenceRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Eli Edwin Moran, a 21 year old resident of Daphne, Alabama was sentenced to “time served” for possession of a Taurus pistol after being convicted Domestic Violence 3rd Degree.
On May 20, 2018, Moran entered a guilty plea pursuant to a plea agreement and admitted in open court that on February 27, 2018, he was the only passenger in a vehicle stopped by Daphne, Alabama police officers for no visible tag. During the traffic stop, Moran was asked to identify himself and he did. When officers learned that the driver would be arrested for outstanding warrants and he could not show ownership of the vehicle, Moran was asked to exit the vehicle. Officers conducted a safety pat of Moran’s person. A loaded firearm was seized from Moran’s waistband. Moran acknowledged possession of the firearm and told officers that he did not have a conceal carry permit for the firearm. The firearm is described as a Taurus, model PT 24/7 G2C pistol, At that time, Moran had been convicted of misdemeanor Domestic Violence 3rd , on March 21, 2017, in the Municipal Court, City of Daphne, State of Alabama, case number, MC15-0000422.
Officers of the Daphne, Alabama Police Department along with special agents of the FBI investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Baldwin County Man Receives Five Years Probation for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Allen Rocky Joiner, a 58 year old resident of Bay Minette, Alabama was sentenced to five years of probation for possession of a Mossberg 12 gauge shotgun after being convicted of Unlawful Distribution of a Controlled Substance.
On September 19, 2018, Joiner entered a guilty plea pursuant to a plea agreement and admitted in open court on February 28, 2018, Baldwin County deputies were investigating a stolen vehicle complaint by victim, J. H,. and made contact with Joiner at his residence as part of the investigation. While at Joiner’s residence the stolen vehicle was discovered parked on the property. Deputies asked Joiner how he obtained the vehicle. Joiner said he bought it from J. H.’s wife. While Joiner was retrieving the Bill of Sale from the vehicle, officers saw a Mossberg. 500A. 12 gauge shotgun on the front passenger seat. Deputies asked Joiner who owned the firearm. Joiner said he bought the firearm from a “guy in Perdido so he could shoot possums in his yard.” At that time Joiner, was previously convicted of a Controlled Substance on August 24, 2006, in the Circuit Court of Baldwin County, Alabama, case number CC-05-2369.
Deputies of the Baldwin County, Alabama Sheriff’s Office along with special agents of the FBI investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Baldwin County Man Receives 12 Months and a Day for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Travis L. McCryndle, a 33 year old resident of Bay Minette, Alabama was sentenced to 12 months and a day for possession of a Ruger .22, semi-automatic rifle after being convicted of Burglary 2nd Degree.
On November 21, 2018, McCryndle entered a guilty plea pursuant to a plea agreement and admitted in open court that on August 9, 2018, a Daphne, AL police officer observed McCrydle driving a vehicle that was reported to be displaying a stolen license plate that was taken at gunpoint in Prichard, AL. The officer initiated a traffic stop of the vehicle. When the vehicle stopped, the officer immediately began to issue commands to McCryndle. First, he ordered McCryndle to put both of his hands outside of the vehicle and he complied. The officer then asked McCryndle if there were weapons in the vehicle and McCryndle replied, “just my knife.” McCryndle was then ordered to exit the vehicle and he did. A safety pat of McCryndle’s person discovered the knife and it was seized. McCryndle was then read his Miranda Rights and he said he understood them and agreed to talk to the officer. After a brief discussion about the ownership of the vehicle, McCryndle told the officer that there was a Ruger rifle behind the seat in the vehicle. At that time, McCryndle had been convicted of a felony, Burglary 2nd Degree, on August 12, 2015, in the Circuit Court of Baldwin County, Alabama, case number CC-04-728.
Officers of the Daphne, Alabama Police Department along with special agents of the FBI investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Alcorn County Man Sentenced in AG’s Largest Counterfeit InvestigationRead the Press Release
An Alcorn County man who attempted to sell millions in counterfeit goods was sentenced Thursday in state court for charges following a major state and federal joint investigation, announced Attorney General Jim Hood.
Russell W. Haynie, 45, a native of Stantonville, TN, pleaded guilty in Alcorn County Circuit Court to one count of possession of counterfeit goods with intent to distribute. Alcorn County Circuit Judge John R. White sentenced Haynie to serve five years in the custody of the Mississippi Department of Corrections with two years suspended and leaving three years to serve. Judge White ordered Haynie to pay $1,000 in fines in addition to AG investigative costs. Haynie pleaded guilty last November in federal court to trafficking of counterfeit goods and received a federal sentence of 32 months, which he must serve day for day. Additionally, Haynie must pay $152,930 in federal restitution for Louis Vuitton products and $167,295 for Michael Kors products. The state and federal sentences will be served concurrently.
Haynie and a second defendant were arrested in September 2016 at their Corinth business, Discount Wallet Outlet. The joint investigation by the Department of Homeland Security, the Corinth Police Department and the Attorney General’s Consumer Protection Division uncovered more than $1.5 million in counterfeit goods and coins the defendants were selling to the general public from their store and online.
Haynie was arrested for the second time in September 2017 at his home by investigators with the Attorney General’s Consumer Protection and Cyber Crime Divisions, where investigators found over $2 million worth of counterfeit goods. Items discovered included Yeti-brand products, Life Proof and Otter Box phone cases, Ray Ban sunglasses, Beats by Dre, and Apple and Bose products. Investigators also found multiple high-end bags by Michael Kors, Louis Vuitton, Chanel, Coach, MCM, and Tory Burch. This case was part of General Hood’s Knock Out Knock Offs (KOKO) Taskforce, and it was the largest undercover counterfeit operation since the KOKO’s inception 10 years ago. Multiple agencies assisted in this investigation, including the Alcorn County Sheriff’s Department, United States Department of Homeland Security, and the U.S. Postal Service.
“We have formed strong partnerships with state and federal agencies through our Knock Out Knock Offs Task Force, and this case demonstrates there is a higher price to pay when you are caught selling counterfeit goods in our state,” said General Hood. “We extend our thanks and appreciation to all of the participating agencies in this case for their dedication and hard work. Selling or buying counterfeit goods poses serious health and safety risks to consumers, not to mention loss of revenue to businesses. You won’t get away with it in our state.”
“Criminal networks are working daily to fool the public with illegally imported counterfeit goods they use the profits from to fund other large-scale criminal activity,” said Jere T. Miles, special agent in charge of Homeland Security Investigations New Orleans. “The same criminal groups behind counterfeit luxury goods also sell counterfeit medical devices, and safety items such as car airbags, that directly threaten public safety for profit. HSI will continue to work with the attorney general and other law enforcement partners to identity and prosecute these criminal enterprises, and to defend legitimate businesses that pay taxes, employ workers and contribute to the health of the legitimate economy.”
William C. Lamar, U.S. Attorney for the Northern District of Mississippi, said, “Late last year, Russell Wayne Haynie was convicted and sentenced in federal court for importing and trafficking over $1,000,000 in counterfeit designer brand goods mainly from China. Trafficking in counterfeit goods not only causes tremendous damage to the legitimate manufacturers and businesses but also damages consumers who are not receiving the safe quality goods they believe are authentic. This is also another example of federal and state authorities working together for the good of the people of the State of Mississippi."
In addition to the assisting agencies, this case was investigated by Lee McDivitt and prosecuted by Special Assistant Attorney General Patrick Beasley, both of the Attorney General’s Consumer Protection Division. Also prosecuting this case was Assistant United States Attorneys Jamiel Wiggins and Clay Joyner of the United States Attorneys Office.
Thursday 7 March 2019
Wooster man indicted after making threats purporting to be from women associated with an adult websiteRead the Press Release
A Wooster man was indicted in federal court after making threats purporting to be from women associated with an adult website.
Christopher Smallwood, 25, was indicted on one count of interstate transmission of a threat and one count of willfully making a threat.
Smallwood made a series of reports to the online ATF tip website about threats to kill people with explosives and firearms, to destroy government buildings and declarations of allegiance to terrorist organizations. Smallwood purported these threats came from women associated with the website myfreecams.com, according to the indictment.
This took place between September 1 and November 14, 2018, according to the indictment
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 offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Christopher J. Joyce.
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.
Windsor Woman Sentenced to 12 Months in Prison for Accepting BribesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, United States District Judge James C. Dever III sentenced ARLINDA HENDRIX LEE, 47, of Windsor, North Carolina, to 12 months and 1 day in prison, followed by 1 year of supervised release.
An investigation revealed that LEE, a correctional officer at Rivers Federal Correctional Institution (FCI) in Winton, North Carolina, was accepting bribes and helping to smuggle contraband into the prison for inmates.
On July 23, 2018, LEE pleaded guilty to a Criminal Information that charged her with Receipt of Bribes by a Public Official from 2015 to January 27, 2017.
In December 2015, investigators became aware that an inmate at Rivers FCI was using contraband cell phones to facilitate the smuggling of contraband cigarettes and drugs into the prison, as well as to communicate with drug associates. A review of telephone records from September 22, 2015 through March 28, 2016 revealed that the inmate had 53 contacts with phone numbers associated with LEE. The inmate later obtained a new cell phone, and phone records revealed five additional contacts with LEE.
Investigators determined that between May 10, 2012, and August 18, 2016, LEE received $7,350 in wire transfers from known associates of Rivers FCI inmates in exchange for helping to smuggle contraband into the prison.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Office of Inspector General. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Wilkinsburg Man Robbed 3 Banks and a Convenience StoreRead the Press Release
PITTSBURGH, Pa. -A former resident of Wilkinsburg, Pennsylvania, pleaded guilty in federal court to charges of bank robbery and Hobbs Act robbery, United States Attorney Scott W. Brady announced today.
Glenn Ford, 60, pleaded guilty to four counts before Senior Judge Reggie B. Walton of the United States District Court for the District of Columbia.
In connection with the guilty plea, the court was advised that, on September 15, 2017, Ford robbed the Huntington Bank, on Smithfield St. wearing a long black curly wig, a long leather coat, and a sticker on his face covering his nose and mouth. He demanded $100 and $50 bills and received $2,340. On September 28, 2017, Ford robbed the same Huntington Bank. He attempted to conceal his face as he approached the same teller. Ford demanded $100, $50 and $20 bills and received $2,370. The teller recognized Ford from the prior bank robbery and placed a dye pack with the money, which exploded as he fled.
On September 20, 2017, Ford, wearing a hat, a dress, a trench coat and caramel-colored dress shoes, entered the Citizens Bank located on East Carson St. with a white plastic bag covering part of his face. He demanded money and received $2,950. He discarded his clothing after he exited the bank.
The Court was further advised that on October 4, 2017, wearing a Darth Vader mask and black hoodie, Ford robbed the CoGo’s on East Carson Street with a knife and took $186.
Ford confessed to committing the robberies to support his crack addiction. He told officers about his efforts to clean and use the money damaged from the dye pack explosion. Ford took officers to recover the damaged money, as well as clothing and shoes from an abandoned house in Wilkinsburg, a short distance from his house.
Judge Walton scheduled sentencing for May 2, 2019. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Ford remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pittsburgh Bureau of Police Department, and Allegheny County Sheriff’s Department conducted the investigation that led to the prosecution of Ford.
Western District of Washington Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
Seattle – Attorney General William P. Barr and U.S. Attorney Brian T. Moran today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
In the Western District of Washington, three defendants operating various money‑transmitting schemes agreed to cease operation following civil complaints alleging that they were a critical part of tech support fraud schemes based in India. The operators, in Seattle, Shoreline, and Gold Bar, Washington, collected the fraud proceeds, kept a percentage, and forwarded the bulk of the money to the telemarketing centers in India. In one case, the Shoreline based conspirator sent more than $320,000 to India between December 2017 and May 2018. A fourth company sued civilly in the Western District of Washington is one of the fraudulent tech support companies using telemarketing centers to defraud seniors in Western Washington.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Using our civil authority, we are stopping a key cog in the wheel of tech support fraud,” said U.S. Attorney Brian T. Moran. “By taking out those who process the payments for the fraudsters, we stop the flow of ill-gotten gain to those preying on our senior citizens. This is a warning shot–a return to this fraud could result in additional sanctions.”
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. The Western District of Washington also has formed an Elder Justice Taskforce. To file a complaint with the District, please do so on the Western District webpage.
The four cases filed in the Western District of Washington are:
U.S. v. Joy Emmanuel, 19-cv-309
U.S. v. Jasvit S. Tahim, 19-cv-307
U.S. v. Christine Reeves and VCARE USA LLC, 19-cv-325
U.S. v. Elagoon Business Solutions PVT LTD, 19-cv-00324
Assistant United States Attorney Kayla Stahman leads the Elder Justice Task Force in the Western District of Washington.
Western District of Tennessee Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
Memphis, TN – Attorney General William P. Barr and U.S. Attorney D. Michael Dunavant today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
As a result of investigative activities by the Federal Bureau of Investigation and the United States Attorney’s Office, authorities in the Western District of Tennessee were able to effectuate a recovery of $100,000 for one elderly victim of an investment fraud scheme, and opened an investigation into another matter involving multiple victims and several million dollars.
In a separate case, following a four-day jury trial in federal court in August 2018, a Memphis man was convicted on two counts of wire fraud. Manzur Mazumder, 49, an insurance agent, started a hedge fund business, which defrauded several individuals of their retirement savings. Between 2014 and 2017, Mazumder obtained a total of $360,000. Mazumder is scheduled for sentencing on March 15, 2019, and faces 20 years imprisonment, a fine of $250,000 and three years supervised release.
"Crimes against the elderly target some of the most vulnerable people in our society," Attorney General William P. Barr said. "But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors."
"Criminals steal more than an estimated $3 billion from senior citizens every year. Those who target the elderly will receive the full attention of our office and law enforcement officials in West Tennessee. We will work with our senior citizens to empower them with knowledge and awareness so that they can defend themselves," said U.S. Attorney D. Michael Dunavant.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act
(EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Western District of New York Takes Part in Largest Ever Nationwide Elder Fraud SweepRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – Attorney General William P. Barr and U.S. Attorney James P. Kennedy, Jr. today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
Sheldon Hurley, 39, a citizen of Markham, Ontario, Canada, is charged in the Western District of New York. Hurley is alleged to have participated in a scheme beginning in May 2007 until July 2011 to obtain money from hundreds of victims, including some of whom were elderly. Hurley allegedly personally received in excess of $159,000. Scheme participants operated websites for fictitious financial services companies offering to arrange loans to individuals with credit problems. The victims provided personal information and were told they would be contacted by a lender for approval. When informed that a loan was arranged, applicants were instructed to sign and return a loan agreement, provide bank information, and pay an “insurance deposit.” Hurley is alleged to then have engaged individuals to act as Company payees and obtained the funds from the United States. Loan applicants never received the loans, but were often coerced into making multiple deposits. An extradition request was sent to Canada in December 2017, and Hurley was surrendered to the United States on January 15, 2019.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Sheldon Hurley may have thought he was part of a sophisticated scheme taking advantage those who were struggling financially, including elderly victims, but let this prosecution serve as a warning,” said U.S. Attorney Kennedy. “Our office will continue to work diligently to bring to justice all criminals, particularly those who target the elderly, no matter where those criminals may be.”
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Technical-Support Takedown 2019
As part of the sweep, the Department of Justice and its law enforcement partners announced a tech-support fraud takedown, designed to combat an increasingly common form of elder fraud in which criminals trick victims into giving remote access to their computers under the guise of providing technical support. In 2018, technical-support schemes generated over 142,000 consumer complaints to the FTC’s Consumer Sentinel Network. Consumers 60 and over filed more loss reports on tech-support scams from 2015 to 2018 than on any other fraud category reported to the Consumer Sentinel Network.
The Department of Justice’s Consumer Protection Branch, the Criminal Division’s Computer Crimes and Intellectual Property Section, and 10 U.S. Attorney’s Offices brought cases against perpetrators of technical-support fraud. The FBI, U.S. Postal Inspection Service, and HSI partnered with the Justice Department in investigating these cases, and the FTC, several state Attorneys General and the U.K.’s City of London Police joined the effort by initiating their own cases.
“We’re committed to investigating financial fraud schemes against the elderly,” said FBI Director Christopher Wray. “We’ve dedicated additional resources to address a wide range of elder fraud threats, including technical-support fraud. Victims of these schemes often lose thousands of dollars or more apiece, which can cause significant harm to elderly victims and their caretakers. If anyone suspects that they – or a senior they know – may be a victim of fraud, we encourage them to report it to the FBI’s Internet Crime Complaint Center.”
Transnational Criminal Organizations Committing Elder Fraud
“The sweep announced today brings the Postal Inspection Service to a landmark point in its battle against transnational criminal organizations committing mass mailing elder fraud,” said Chief Postal Inspector Barksdale. “In a recently unsealed case, two Canadians pled guilty and, thanks to the Spanish National Police, another was arrested in Spain for an alleged mail fraud scheme involving $180 million in losses to over one million victims. The Inspection Service has been at the forefront of protecting customers from fraud schemes for many years and we will continue to investigate and stop those who exploit older Americans for their own illegal gains.”
Many of the cases brought as part of the elder fraud sweep announced today – including many of the technical-support fraud cases – allegedly involved transnational criminal organizations. The Department of Justice’s Office of International Affairs worked with numerous countries to secure evidence and capture defendants. During the sweep period, defendants in elder fraud cases were extradited from Canada, The Cayman Islands, Costa Rica, Jamaica, and Poland.
Money Mule Initiative
In addition, in a novel approach, the Department of Justice and its law enforcement partners took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, a money mule is someone who transfers money acquired illegally in person, through the mails, or electronically, on behalf of others. Across the country, money mules receive fraud proceeds directly from victims and forward proceeds to perpetrators and ringleaders of fraud schemes—individuals who often reside in other countries. As part of the sweep, the FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Secret Service agents aided these efforts by seizing and forfeiting elder fraud proceeds in transit from victims to perpetrators.
“Homeland Security Investigations is committed to the fight against elder fraud in conjunction with the Justice Department, and our other law enforcement partners,” said Executive Associate Director Derek Benner. “HSI Special Agents across the country have worked to address illegal fund transfers, fraudsters operating technical-support schemes, and elder fraud of all varieties. We will continue to use creative solutions to protect our nation’s seniors from fraud; financial security is critical to homeland security.”
“The Secret Service is committed to aggressively investigating and disrupting organized criminal groups who prey on our most vulnerable citizens,” said Secret Service Director Randolph “Tex” Alles. “The results of the elder fraud sweep announced today demonstrate what can be achieved though incredible partnerships between federal, state, and local law enforcement agencies.”
Public Education
The Department of Justice and its law enforcement partners focused the sweep’s public education campaign on technical-support fraud, given the widespread harm such schemes are causing. The FTC and State Attorneys General had an important role in designing and disseminating messaging material intended to warn consumers and businesses.
Public education outreach is being conducted by various state and federal agencies, including Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Global Efforts
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Belgium, Canada, Europol, the Netherlands, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the Department of Justice and the FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Due to the IMMFWG’s network of law enforcement, simultaneous technical-support fraud consumer education campaigns are being released in Canada, the Netherlands, the United Kingdom, and the United States.
Elder Fraud Complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Waterbury Man Sentenced to Federal Prison for Distributing Heroin and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JASON BROCKETT, 45, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 14 months of imprisonment, followed by three years of supervised release, for trafficking heroin and crack cocaine
According to court documents and statements made in court, in the fall of 2017, the FBI, ATF and Waterbury Police Department began an investigation into drug trafficking by suspected members of “Addicted to Money,” also known as “ATM,” a violent street gang operating in Waterbury. The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of heroin and crack cocaine, resulted in federal charges against 11 individuals.
Intercepted communications revealed that Brockett purchased and sold distribution quantities of heroin and crack cocaine.
Brockett was arrested on July 17, 2018. On December 20, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack”).
This matter is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Waterbury Police Department’s Gang Task Force. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Natasha M. Freismuth.
Virginia Man Pleads Guilty in Money Laundering SchemeRead the Press Release
PITTSBURGH -A resident of Salem, Virginia, pleaded guilty yesterday in federal court to a charge of money laundering conspiracy, United States Attorney Scott W. Brady announced today.
Thomas Powell, 64, pleaded guilty to one felony count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that during the period from January 2011 through May 2016, Powell agreed to become a member of a money laundering conspiracy. Powell conducted financial transactions affecting interstate commerce, knowing that the property involved in the financial transactions represented the proceeds of some form of unlawful activity. Powell knew that each of the financial transactions was designed in whole or in part to conceal or disguise the nature, location, source, ownership, and control of the proceeds. As part of the money laundering conspiracy, the defendant and his co-conspirators conducted the following financial transactions: 1) withdrew funds from prepaid debit cards and credit cards; 2) transmitted and received funds via MoneyGram, Walmart and Western Union; 3) cashed checks and money orders; and 4) sent and received wire transfers of funds. The funds involved in these transactions, which totaled thousands of dollars, were the proceeds of wire fraud.
Judge Cercone scheduled sentencing for July 23, 2019. The law provides for a maximum total sentence of twenty years in prison and a fine of $500,000 or both. 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.
Pending sentence, the court released Powell on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Department of Homeland Security, Homeland Security Investigations, conducted the investigation leading to the conviction in this case.
Violent Pimp Convicted of Human Trafficking Following Eight Day TrialRead the Press Release
A Seattle area man with a prior history of promoting prostitution was convicted on March 6, 2019, in U.S. District Court in Seattle of five federal felonies including sex trafficking of a minor, announced U.S. Attorney Brian T. Moran. The jury deliberated less than three hours following an eight-day trial before convicting 32-year-old AUBREY TAYLOR, also known as “Uno,” of all counts. During the trial multiple victims testified about how Taylor used threats, violence, sexual assault, and manipulation to control them and force them to engage in commercial sex acts in cities in Washington, Idaho, and Nevada and then give him the money they earned. TAYLOR faces a mandatory minimum 15 years in prison when sentenced by U.S. District Judge Robert S. Lasnik on May 21, 2019.
According to records filed in the case and testimony at trial, TAYLOR forced one young victim into prostitution on a trip to Wenatchee in October 2014 when she was 17 years old. Three other victims testified about how TAYLOR controlled them with mental and physical abuse or promises of love and a better life. The women were transported to as far away as Las Vegas to engage in commercial sex acts. One victim was controlled by rationing doses of heroin–using her addiction to keep her working as a prostitute. Other victims were instructed to get tattoos of TAYLOR’s name and nicknames as a form of branding and to demonstrate TAYLOR’s control over them.
The victims under TAYLOR’s control were violently assaulted by him on multiple occasions. When law enforcement or medical professionals tried to get the victims to cooperate with law enforcement, they expressed fear of TAYLOR. Text messages seized in the case reveal TAYLOR’s attempts to recruit numerous additional women and his use of threats and violence.
“He is a sex trafficker and a predator,” Assistant United States Attorney Kate Crisham said in closing arguments. “He sold his victims a dream of a bright future…but what they got instead was a nightmare.”
“I commend the dedicated law enforcement officers and trial team who worked diligently to investigate and prosecute these crimes,” said U.S. Attorney Brian T. Moran. “And I want to recognize the strength and courage of the victims who came to court and described their darkest moments to the jury in order to hold this defendant accountable.”
The case was investigated by the FBI, the City of Kent Police Department, the City of Auburn Police Department, the Bellingham Police Department, the Wenatchee Police Department, and the Snohomish County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Kate Crisham and Rebecca Cohen.
Vidor Felon Charged with Illegally Possessing FirearmsRead the Press Release
BEAUMONT, Texas – A 39-year-old Vidor, Texas man has been indicted by a federal grand jury and charged with firearms violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Brandon Aaron Holeman was named in a three-count indictment returned by a federal grand jury on Mar. 6, 2019, charging him with two counts of being a felon in possession of a firearm and one count of possession of an unregistered firearm.
The indictment alleges that on two separate occasions, Dec. 12, 2018, and Feb. 2, 2019, Holeman was pulled over by law enforcement in Vidor and during both traffic stops, Holeman attempted to evade police and was arrested after brief pursuits. Holeman was also in possession of firearms during both traffic stops, for a total of two revolvers, a pistol, and a sawed-off shotgun. Further investigation revealed Holeman is a convicted felon and prohibited from owning or possessing firearms or ammunition.
If convicted, Holeman faces up to 10 years in federal prison.
This case is being investigated by the Vidor Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Upshur County man admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Langbien, of Buckhannon, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Langbien, age 28, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Langbien admitted to distributing methamphetamine in March 2018 in Harrison County.Langbien faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
U.S. Attorney’s Office for the Eastern District of Pennsylvania Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
PHILADELPHIA, PA – Attorney General William P. Barr and United States Attorney William M. McSwain today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of whom are elderly.
Two cases from the Eastern District of Pennsylvania are included in this nationwide sweep. In United States v. John Conner, the defendant was a lawyer who took advantage of his 85-year old client by using a power of attorney agreement to withdraw more than $95,000 from her bank account so he could gamble with her money at casinos. A jury convicted the attorney of 19 counts of wire fraud and one count of making a false statement to the FBI following a one-week trial in February 2019; he awaits sentencing. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mark Dubnoff.
The second case from this District is United States v. Jacoya Brazzle. There, the defendant was a nursing assistant at the Veterans Affairs Medical Center (“VAMC”) in Coatesville, Pennsylvania. She allegedly obtained the ATM PIN of a veteran who resides in the assisted living unit at the VAMC, went to ATMs near the VAMC on more than a dozen occasions over the course of six months, and withdrew over $11,000. The trial is scheduled for later this spring. The case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General and is being prosecuted by Assistant United States Attorney Nancy Rue.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today, we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Our Office will continue to prioritize prosecuting criminals who prey on our elderly residents,” said U.S. Attorney McSwain. “I would like to thank Attorney General Barr for his leadership in this initiative; AUSAs Mark Dubnoff and Nancy Rue for their work on the Conner and Brazzle prosecutions; and AUSA Tiwana Wright for her work overseeing the elder abuse cases for our Office.”
The Department took action in every federal district across the country by filing criminal or civil cases or by engaging in consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three quarters of a billion dollars.
The charges in the Brazzle case are allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (“EAPPA”) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that have protected seniors. The Justice Department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
U.S. Attorney's Office Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
LAS VEGAS, Nev. – Attorney General William P. Barr and U.S. Attorney Nicholas A. Trutanich today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Our goal is to reduce crime against Nevada’s seniors,” said U.S. Attorney Trutanich. “Each year an estimated $3 billion is stolen or defrauded from millions of American seniors. The U.S. Attorney’s Office has actively pursued and continues to pursue criminals who prey upon and exploit Nevada’s seniors. I commend the tremendous efforts by our partners who work tirelessly every day to bring justice for our seniors.”
Edgar Del Rio, 51, of Las Vegas, pleaded guilty to conspiring with others to defraud more than $1.5 million from senior citizens using a prize promotion scam. Between May 2011 and February 2018, Del Rio and others carried-out a direct-mail prize scam targeting seniors. The mailings misled victims to believe they would receive a large sum of money, if they paid a small fee. He faces up to 20 years in prison at the May 30, 2019, sentencing hearing.
Patti Kern, 49, of Henderson, was charged by a criminal information for her involvement in the same prize promotion scam as Del Rio. She is scheduled to plead guilty on March 14.
The U.S. Attorney’s Office has a designated Elder Justice Coordinator to help prevent crime by educating seniors about scams and other threats. The District of Nevada has a customized strategy to protect seniors and coordinates prosecutions with state and local partners.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The Department’s Elder Justice Initiative published its Elder Abuse Guide for Law Enforcement (EAGLE) last year. EAGLE contains helpful information for prosecutors, including overviews of state and local law as well as best practices for evidence collection, interviewing older adults, and for documenting elder abuse. EAGLE is free and available to every law enforcement officer in the country.
A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
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U.s. Attorney’s Office for the Eastern District of Wisconsin Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
Attorney General William P. Barr and United States Attorney Matthew D. Krueger today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
In the Eastern District of Wisconsin, Milwaukee resident Chris Kubiak, former financial advisor for Freedom Investors Corp, and Calton & Associates, Inc., was indicted on charges of elder fraud January 15, 2019. The indictment, which charges seven counts of wire and mail fraud, alleges a scheme wherein Kubiak arranged to make withdrawals or to liquidate the investment accounts of his elderly clients. The indictment identifies a total of six clients, from whom he is alleged to have wrongfully appropriated approximately $370,000 over a five year period.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Schemes that target the elderly are too common and can cause devastating harm,” said U.S. Attorney Krueger. “Today’s announcement makes clear that federal, state, and local law enforcement partners are committed to bringing justice to criminals who take advantage of our seniors.”
The Department took action in numerous federal districts across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
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Two Passaic County, New Jersey, Men Charged in Seizure of over 20 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – Two Passaic County, New Jersey, men are charged in connection with the seizure of more than 20 kilograms of cocaine, U.S. Attorney Craig Carpenito announced today.
Carlos Nieves, 24, and Yocadis Montas-Cepeda, 24, both of Paterson, New Jersey, were arrested in Bergen County, New Jersey, on Nov. 19, 2018. They are charged by complaint with one count each of conspiracy to distribute more than five kilograms of cocaine. Nieves is scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Montas-Cepeda is expected to make his initial appearance at a later date.
According to documents filed in this case and statements made in court:
Nieves was driving a car that was the subject of a motor vehicle stop on Interstate 80. Montas-Cepeda was a passenger in the car. The defendants’ statements and other suspicious activities caused law enforcement to believe that the vehicle was being used to traffic narcotics. After receiving consent to search the vehicle, law enforcement officers recovered approximately 20 kilograms of cocaine from the interior.
The count of conspiracy to distribute more than five kilograms of cocaine carries a mandatory minimum sentence of 10 years in prison, a maximum of life in prison, and a maximum fine of $10 million.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division, with the investigation leading to today’s charges. He also thanked the Bergen County Prosecutor’s Office and that office’s Narcotics Task Force.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Nieves: Lauriano Guzman Esq., Bronx, New York
Montas-Cepeda: Victor Molina Esq., Bergenfield, New JerseyTwo Mexican Women Plead Guilty to Heroin PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Maria Guadalupe Martinez-Plascencia, 48, of Guadalajara, Mexico, pleaded guilty to possession with intent to distribute 100 grams or more of heroin before Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine. In addition, co-defendant Claudia Anel Cuevas-Sandoval, 38, also of Guadalajara, Mexico, pleaded guilty to possession with intent to distribute one kilogram or more of heroin and faces a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that in early June 2018, the Drug Enforcement Administration and the Niagara Frontier Transportation Authority Police began investigating the activities of Martinez, who was associated with an individual arrested on May 26, 2018, in Laredo, Texas. The individual was in possession of a backpack and a laptop bag that concealed heroin. Martinez was identified in a Customs and Border Protection report, which included instructions to conduct an inspection of the defendant during any border crossing.
On June 9, 2018, the NFTA identified Martinez and Cuevas traveling together. The defendants purchased tickets for a Greyhound bus departing from Philadelphia, PA, late in the evening of June 9, 2018, and arriving in Buffalo on June 10, 2018. When the defendants arrived, law enforcement officers surveilled them at the Hyatt Regency Buffalo Hotel in downtown Buffalo.
In the early morning hours of June 11, 2018, officers executed a New York State search warrant in the room the defendants were staying in. During the search, officers found two backpacks and two laptop bags in plain view which were heavy but contained no visible contents. Sewn into the baggage were 10 packages containing heroin. Martinez and Cuevas were arrested at that time.
The pleas are the result of an investigation by the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Maria Guadalupe Martinez-Plascencia is scheduled to be sentenced on June 10, 2019 before Judge Skretny. Sentenced for Claudia Anel Cuevas-Sandoval will be scheduled at a later date.
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Trenton Man Admits Role in Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man today admitted his role in a violent drug trafficking conspiracy that allegedly distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced today.
Donte Ellis, a/k/a “Shalant,” 41, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Ellis also admitted to possessing a firearm during the offense.
In October 2018, Ellis and 25 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Ellis is the first of the defendants to plead guilty. On Feb. 21, 2019, a grand jury returned a two-count indictment charging four defendants, Jakir Taylor, a/k/a “Jak”; Jerome Roberts, a/k/a “Righteous”; David Antonio, a/k/a “Papi,” a/k/a “Victor Arias”; and Wayne K. Bush, with conspiracy to distribute one kilogram or more of heroin. Taylor also was charged in the indictment with possessing of a firearm in furtherance of a drug trafficking crime. The charges in the criminal complaint remain pending against the other 20 defendants.
According to documents filed in this case and statements made in court:
From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendants Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” The investigation revealed that in September and October 2018, Ellis—who had been released from state prison in August 2018 for a prior conviction for conspiracy to commit first-degree murder—obtained large quantities of heroin on multiple occasions from Jakir Taylor, which he redistributed to others in and around Trenton. The investigation also revealed that, on several occasions when he obtained supplies of heroin from Taylor, he also obtained a firearm from Taylor for protection in re-distributing the narcotics.
The drug conspiracy count to which Ellis pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for June 13, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Christopher Taylor; officers of the Trenton Police Department, under the direction of Acting Police Director Pedro Medina; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s charges. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case, including with today’s coordinated takedown.
The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Three SoCal Men Arrested in Scheme in Which Chinese Money Allegedly Funded Seven Inland Empire Marijuana Grow HousesRead the Press Release
LOS ANGELES – Three men were arrested this morning on federal charges alleging they took part in a scheme that used millions of dollars wired from China to purchase seven residential homes in San Bernardino County that were converted into illegal marijuana grow houses.
The three defendants arrested today pursuant to a federal criminal complaint are:
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Lin Li, a.k.a. Aaron Li, 37, of Chino, the U.S.-based coordinator of the alleged scheme;
- Ben Chen, 42, of Alhambra, who allegedly took care of the marijuana grows; and
- Jimmy Yu, 44, of Pasadena, a second alleged grow house caretaker.
The complaint charges the three defendants with one count of manufacturing, distributing, and possessing with the intent to distribute marijuana. The three men are expected to make their initial appearances this afternoon in United States District Court in Los Angeles.
In conjunction with the arrests, law enforcement executed search warrants at Li’s home and seven marijuana grow houses in Chino, Ontario and Chino Hills. As a result of the searches, authorities seized approximately 1,650 marijuana plants from several grow houses, as well as cash at Li’s house currently estimated to be at least $80,000.
Today’s takedown is the result of a 14-month investigation that was initiated by the San Bernardino County Sheriff’s Department and soon after was joined by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
In relation to the criminal charges, the U.S. Attorney’s Office, in coordination with the HSI’s Asset Identification and Removal Group, has begun the process to forfeit the seven homes where marijuana was being grown. The properties are cumulatively worth more than $5 million.
According to a 120-page affidavit in support of the criminal complaint, Li, a real estate agent, orchestrated a scheme that purchased residential properties through transactions designed to conceal the homes’ true owners, converted the houses to marijuana grow operations, and trafficked marijuana, with most of the processed marijuana being sold to customers in California and Nevada.
After receiving financing from sources in China, Li “acted as the realtor for the purchase of [seven residences], which he then converted into illegal marijuana grow houses,” the affidavit states. “Li coordinated the purchase of the properties, managed them after purchase, paid their utilities and taxes, and established shell companies for the purpose of managing the properties’ finances.”
Investigators believe Li attempted to distance himself from the conspiracy by using Chen and Yu to manage day-to-day operations at the grow houses, to help with out-of-state distribution of the marijuana, and to return marijuana sale proceeds. Li also used bypasses to physically divert electricity directly from power lines, thus stealing power from the electric companies, hiding the grow houses’ high power usage from law enforcement, and creating fire risks in neighborhoods. According to the affidavit, Li’s attempts to insulate himself from culpability went as far as creating fake leases for some of the properties, documents that included fake tenants, forged electronic signatures, and special clauses that purported to prohibit the fake tenants from cultivating marijuana at the homes.
“In states that have decriminalized marijuana, we have seen an influx of foreign money used to establish grow operations, with much of the marijuana being destined for out-of-state consumers,” said United States Attorney Nick Hanna. “By establishing illegal drug operations in residential neighborhoods, the defendants increased the risks to law-abiding homeowners, caused neighborhood blight, and stole power from utilities.”
“HSI, together with our law enforcement partners, will continue to target transnational criminal organizations that think they can use our neighborhoods as locations for criminal activity,” said Joseph Macias, Special Agent in Charge for HSI Los Angeles. “Today’s arrests and searches, coordinated jointly with the San Bernardino Sheriff’s Department and the U.S. Attorney’s office, are the next step in shutting down criminals who would trash our communities for their own greed.”
“Deputies and detectives from the San Bernardino County Sheriff’s Department assisted HSI with multiple narcotic search warrants. We assist our federal law enforcement partners regularly when requested,” said Sheriff John McMahon. “Our county does not support criminal operations like this and will make every effort to eliminate these threats to our local communities.”
According to the affidavit, down payments for most of the grow houses were traced back to wire transfers from China, and several of the properties were bought by “straw buyers” who actually had nothing to do with the transaction. The titles for most of the homes were transferred, shortly after they were purchased, to limited liability companies associated with Li, who served as the homes’ property manager.
For example, in relation to one of the homes, the affidavit describes how a straw buyer purchased a Chino Hills residence in 2015 for $782,000. The purported buyer was named as chief executive officer of an LLC that Li had established, and that LLC received a $1 million wire transfer from a Hong Kong-based investment group. The vast majority of the purchase price of the house was then wired from the LLC’s bank account. Li received a commission check as the realtor for the sale and also served as the home’s property manager, the affidavit alleges. In early 2018, a neighbor complained to law enforcement about the “overwhelming” smell of marijuana coming from the Chino Hills home and how no one seemed to live there, court papers state.
The total purchase price for the seven homes, which were bought between July 2013 and September 2017, was $4,067,882, according to the affidavit.
In June 2018, deputies and HSI agents executed a search warrant and seized 1,038 marijuana plants at an eighth grow house in Chino Hills believed to be part of the same criminal scheme.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being prosecuted by Assistant United States Attorneys Carley Palmer of the Organized Crime Drug Enforcement Task Force Section and Jonathan Galatzan of the Asset Forfeiture Section.
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Three Men Charged in Conspiracy to Distribute Heroin and Fentanyl from Bronx, New York, Drug MillRead the Press Release
NEWARK, N.J. – Three New York men have been charged for their participation in a conspiracy to distribute heroin and fentanyl after they were arrested at a heroin mill in Bronx, New York, U.S. Attorney Craig Carpenito announced today.
Jhan Carlos Capellan Maldonado, 30, Jose Antonio Vasquez Pena a/k/a “Tono,” 46, and Dilson Vasquez Genao, 22, all of Bronx, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately 100 grams of more of suspected heroin and fentanyl. Maldonado appeared March 6, 2019, before U.S. Magistrate Judge Joseph A. Dickson, and was detained. Pena and Genao appeared last week before U.S. Magistrate Judge Michael A. Hammer and were detained.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On February 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drove to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement office3rs, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found several individuals inside, including Maldonado, Pena, and Genao. The three defendants attempted to escape out a window in the bedroom but were apprehended and arrested by law enforcement officers waiting outside.
Each defendant faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Craig Carpenito credited the Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Maldonado: Kathleen Theurer Platts Esq., Jersey City, New Jersey
Pena: Peter Carter Esq., Assistant Public Defender, Newark
Genao: Edward Kratt Esq., New YorkThree Indicted on Conspiracy to Commit Marriage Fraud and Related Immigration ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging LEVAN LOMTATIDZE, age 44, a citizen of the country of Georgia, MELISSA ANNE GODSHALL, age 31, a citizen of the United States, ROBERT J. KENNERLEY, age 46, a citizen of the United States, with conspiracy to commit marriage fraud, marriage fraud, aiding and abetting, visa fraud and false statements in immigration proceedings.
The indictment alleges that GODSHALL and KENNERLEY, who were romantically involved, were panhandling for money on the side of the road in Granville County, North Carolina. An individual approached them and asked GODSHALL if she would be willing to marry a foreign-born national for money. GODSHALL agreed to engage in the marriage to LOMTATIDZE in exchange for $12,000, housing, and a vehicle. LOMTATIDZE and GODSHALL got married in Granville County, North Carolina. The marriage ceremony was witnessed by KENNERLEY and another individual.
LOMTATIDZE, GODSHALL and KENNERLEY entered into a rental agreement for a house located in Raleigh, North Carolina. The rent was paid for by LOMTATIDZE as part of the payment for the sham marriage. Thereafter, GODSHALL and LOMTATIDZE submitted fraudulent applications to United States Citizenship and Immigration Services (USCIS) requesting LOMTATIDZE’s adjustment of status as a lawful permanent resident in the United States. LOMTATIDZE and GODSHALL were interviewed at the USCIS office in Durham, North Carolina. Both attested under oath they were married in good faith. As a result of the interview, USCIS approved the request and LOMTATIDZE was granted “conditional” resident status in the United States. Later, LOMTATIDZE and GODSHALL submitted to USCIS another application attesting they were still married in good faith and requesting LOMTATIDZE’s removal of conditions on his resident status.
If convicted of conspiracy to commit marriage fraud, marriage fraud, visa fraud, and false statements in immigration proceedings, LOMTATIDZE and GODSHALL would each face maximum penalties of thirty years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of conspiracy to commit marriage fraud, and aiding and abetting marriage fraud, KENNERLEY would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina led by Homeland Security Investigations and assisted by USCIS’s Fraud Detection and National Security.
Three Former Mozambican Government Officials and Five Business Executives Indicted in Alleged $2 Billion Fraud and Money Laundering Scheme That Victimized U.S. InvestorsRead the Press Release
BROOKLYN, NY – An indictment was unsealed on March 4, 2019, charging Najib Allam, an executive of the Privinvest family of maritime services companies, and Teofilo Nhangumele and Antonio do Rosario, former Mozambican government officials, for their roles in a $2 billion fraud and money laundering scheme that victimized investors in the United States and around the world. The indictment was previously unsealed on January 3, 2019 as to co-defendants Jean Boustani, a Privinvest executive, Manuel Chang, the former Finance Minister of Mozambique, and Andrew Pearse, Surjan Singh and Detelina Subeva, former high-ranking investment bankers at an international investment bank (the Investment Bank). Each defendant is charged with wire fraud conspiracy and money laundering conspiracy. In addition, Boustani, Allam, Chang, do Rosario, Pearse, Singh and Subeva are charged with securities fraud conspiracy. Pearse, Singh and Subeva are also charged with conspiracy to violate the anti-bribery and internal controls provisions of the Foreign Corrupt Practices Act (FCPA).
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As charged in the indictment, the defendants orchestrated an immense fraud and bribery scheme that took advantage of the United States financial system, defrauded its investors and adversely impacted the economy of Mozambique, in order to line their own pockets with hundreds of millions of dollars,” said United States Attorney Donoghue. “This indictment underscores the Department of Justice’s continuing efforts to end such fraudulent and corrupt practices and to hold those responsible to account for their crimes.”
“The indictment unsealed today alleges a brazen international criminal scheme in which corrupt Mozambique government officials, corporate executives, and investment bankers stole approximately $200 million in loan proceeds that were meant to benefit the people of Mozambique,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement partners are dedicated to using all tools at our disposal to prosecute those who engage in money laundering, financial fraud and corruption at the expense of U.S. investors, wherever those individuals may be located.”
“Today’s indictment proves that no matter who you are, or what position of power you’re in, you’re not immune from prosecution,” stated FBI Assistant Director-in-Charge Sweeney. "The FBI will continue to use all resources at our disposal to uncover crimes of this nature and expose them for what they really are.”
The Fraudulent Scheme
The indictment alleges that between approximately 2013 and 2016, Boustani, Allam, Nhangumele, do Rosario, Chang, Pearse, Singh, Subeva and their co-conspirators ensured that the Investment Bank, and another foreign investment bank, would arrange for more than $2 billion to be extended, in three loans, to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM) and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing and MAM was to build and maintain shipyards.
Instead, the defendants and their co-conspirators illegally facilitated Privinvest’s criminal diversion of more than $200 million of the proceeds of the loans. These stolen funds included more than $150 million that Privinvest — at the direction of Boustani, Allam and others — used to bribe Chang, Nhangumele, do Rosario and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans. In addition, Privinvest diverted approximately $50 million in kickback payments to Pearse, Singh and Subeva, who assisted the co-conspirators to obtain financing for the loans through the Investment Bank and the other foreign investment bank. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used, the amount and maturity dates of other financial obligations held by Mozambique and the ability of the government of Mozambique to repay the loans.
To date, the companies controlled by the government of Mozambique have failed to make more than $700 million of loan repayments that have become due.
The Defendants
Boustani, a citizen and resident of Lebanon and Antigua and Barbuda, was the lead salesperson and negotiator for Privinvest, and is charged for his role in coordinating the payment by Privinvest of more than $200 million in bribe and kickback payments to Mozambican government officials and investment bankers in order to facilitate the three loans. He is alleged to have personally received at least $15 million from the scheme. Boustani was arrested in Queens, New York on January 2, 2019 and arraigned later that day in federal court in Brooklyn. Boustani has pleaded not guilty to the charges, and a trial date has not yet been set.
Allam, a citizen of Lebanon, was the Chief Financial Officer of Privinvest, and is charged for his role in helping Boustani and others coordinate the payment by Privinvest of more than $200 million in bribe and kickback payments. Allam remains at large.
Nhangumele, a citizen and resident of Mozambique, acted in an official capacity on behalf of the President of Mozambique during the charged scheme, and is charged for his role in facilitating the payment by Privinvest of over $150 million to Mozambican government officials to gain approval for the maritime projects, and to cause Mozambique to borrow more than $2 billion from the two investment banks in government-guaranteed loans to finance the projects. Nhangumele has not yet been arrested on the charges in this indictment and Nhangumele is not currently in U.S. custody.
Do Rosario, a citizen and resident of Mozambique, held positions within the Mozambican government, including with the Mozambican state intelligence service, known as “SISE,” and managerial roles for each of the three state-owned entities formed to undertake the maritime projects that are the subject of the indictment. He is charged for his role in ensuring that Mozambique would undertake the maritime projects and award the contracts for those projects to Privinvest, and that Finance Minister Chang would issue government guarantees binding Mozambique to repay $2 billion in loans to undertake the projects. He is alleged to have personally received more than $12 million from the scheme. Do Rosario has not yet been arrested on the charges in this indictment and is not currently in U.S. custody.
Chang, a citizen and resident of Mozambique, was the former Finance Minister of Mozambique, and is charged for signing guarantees on behalf of Mozambique for the three corrupt loans. He is alleged to have personally received at least $5 million from the scheme. Chang was arrested on December 29, 2018, in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States. The United States is seeking his extradition.
Pearse, a citizen of New Zealand, Singh, a citizen of the United Kingdom and Subeva, a citizen of Bulgaria, reside in the United Kingdom. At the time of the charged scheme, Pearse and Singh were managing directors, and Subeva was a vice president, of the Investment Bank. Each has been charged for facilitating bribe payments to government officials in Mozambique and for circumventing the internal accounting controls of the Investment Bank, which arranged two of the three loans. Pearse, Singh and Subeva were arrested on January 3, 2019, in the United Kingdom, pursuant to provisional arrest warrants issued at the request of the United States. The United States is seeking their extradition.
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The charges in the indictment are allegations, and the defendants are presumed innocent until proven guilty.
The investigation is being conducted by the FBI’s New York Field Office. The government’s case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York (EDNY), the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the Fraud Section. Assistant United States Attorneys Matthew S. Amatruda and Mark E. Bini of the EDNY, Trial Attorneys Margaret Moeser and Sean W. O’Donnell of MLARS and Trial Attorney David M. Fuhr of the Fraud Section are prosecuting the case.
The Criminal Division’s Office of International Affairs provided critical assistance in this case. The Department appreciates the significant cooperation and assistance provided by the United States Securities and Exchange Commission. The Department also appreciates the assistance provided by law enforcement authorities in the United Kingdom and in South Africa.
The Defendants:
JEAN BOUSTANI
Age: 40
Lebanon, Antigua and BarbudaNAJIB ALLAM
Age: 58
LebanonMANUEL CHANG
Age: 63
MozambiqueANTONIO DO ROSARIO
Age: 44
MozambiqueTEOFILO NHANGUMELE
Age: 50
MozambiqueANDREW PEARSE
Age: 49
United KingdomSURJAN SINGH
Age: 44
United KingdomDETELINA SUBEVA
Age: 37
United KingdomE.D.N.Y. Docket No. 18-CR-681 (WFK)
Third Mercenary Sentenced to Life in Prison for Conspiring to Kidnap and Murder as Part of A Murder-For-Hire Scheme OverseasRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOSEPH MANUEL HUNTER was sentenced to life in prison in connection with his participation in the murder of a woman in the Philippines. HUNTER and his co-defendants, Adam Samia and Carl David Stillwell, were convicted on April 18, 2018, following a 12-day trial before U.S. District Judge Ronnie Abrams of the Southern District of New York. Judge Abrams sentenced HUNTER today and had previously sentenced both Stillwell and Samia to mandatory life terms.
U.S. Attorney Geoffrey S. Berman said: “With zero regard for human life, Joseph Hunter callously helped to arrange the murder of a Filipino woman in exchange for money. He and his co-defendants have now been sentenced to life behind bars for their heartless crimes.”
According to the Superseding Indictment against HUNTER, Samia, and Stillwell, other filings in Manhattan federal court, and the evidence admitted at trial:
HUNTER served from 1983 to 2004 in the U.S. Army, where he attained the rank of sergeant first class. While in the Army, HUNTER led air-assault and airborne infantry squads; served as a sniper instructor; and trained soldiers in marksmanship and tactics as a senior drill sergeant. Since leaving the Army in 2004, HUNTER arranged for the murders of multiple victims in exchange for money, among other completed acts of violence undertaken for pay.
Samia was a self-described “Personal Protection/Security Industry” professional. According to Samia’s résumé, he worked as an “Independent Contractor” for clients in the Philippines, China, Papua New Guinea, the Democratic Republic of the Congo, and the Republic of the Congo; and had training in tactics and weapons, including handguns, shotguns, rifles, sniper rifles, and machineguns. Stillwell also purported to have training and experience in the field of information technology and to have worked at a firm in North Carolina that provides firearms training.
In 2011 and 2012, HUNTER, Samia, and Stillwell agreed to commit murders-for-hire in overseas locations in exchange for salaries and bonus payments for each victim. In early 2012, Samia and Stillwell traveled from North Carolina to the Philippines, where HUNTER provided them with, among other things, information about their intended victims and firearms to use to commit the murders.
In January and February 2012, Samia and Stillwell surveilled their intended victims in the Philippines as they formulated their murder plans. On February 12, 2012, Samia and Stillwell killed one of their intended victims – a Filipino woman – in the Philippines by shooting her multiple times in the face (“Victim-1”). After killing Victim-1, Samia and Stillwell disposed of her body on a pile of garbage, where it was later found by local authorities. HUNTER paid Samia and Stillwell $35,000 each for completing the murder, and Samia and Stillwell sent thousands of dollars from the payments they received to the United States using, among other methods, structured wire transfers in amounts under $10,000.
In late February and early March 2012, Samia and Stillwell returned from the Philippines to North Carolina, where they continued to reside until their July 2015 arrests on these charges.
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HUNTER, 53, of Owensboro, Kentucky, Samia, 44, of Roxboro, North Carolina, and Stillwell, 51, of Roxboro, North Carolina, were each convicted of one count of conspiring to commit murder-for-hire and one count of committing murder-for-hire, each of which carries a maximum sentence of life in prison and mandatory minimum sentence of life in prison; and one count of conspiring to murder and kidnap in a foreign country and one count of using and carrying a firearm during and in relation to a crime of violence, each of which carries a maximum sentence of life in prison. Samia and Stillwell were also each convicted of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison.
The charges against the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; DEA’s Manila Country Office; DEA’s Atlanta Field Division, Raleigh Resident Office; DEA’s Louisville Field Division; the Durham Police Department; the Raleigh Police Department; the Harnett County Sherriff’s Office; the Wake County Sherriff’s Office; the Person County Sherriff’s Office; the Cary Police Department; the North Carolina State Bureau of Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Greensboro Field Office; the Customs and Border Protection’s National Targeting Center; the Royal Thai Police; the Philippines National Bureau of Investigation; and the Philippines National Police; and the Department of Justice’s Office of International Affairs. Mr. Berman also thanked the United States Attorney’s Office for the Middle District of North Carolina and the Department of Justice’s Computer Crime and Intellectual Property Section for their support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Patrick Egan, Emil J. Bove III, and Rebekah Donaleski were in charge of the prosecution.
The U.S. Attorney’s Office for the Middle District of Pennsylvania Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
HARRISBURG – Attorney General William P. Barr and U.S. Attorney David J. Freed today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
- Omoefe Okoro, age 48, a citizen of Canada, was charged in the Middle District of Pennsylvania. Okoro and others are alleged to have engaged in an attorney “collection scam” in Ontario, Canada, and elsewhere. In particular, Okoro and his co-conspirators are alleged to have conducted a scheme in which they contacted businesses and individuals, including elderly victims, and requested, among other things, to collect an outstanding debt. The suspects, posing as the third party, then sent a counterfeit check to the victim for deposit and requested that the victim wire funds to an account overseas, typically in Japan, South Korea, or China. Canada surrendered Okoro to the United States on Aug. 29, 2018. Okoro is currently scheduled for trial on May 6, 2019.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Perpetrators of Elder Abuse and Elder Financial Fraud purposefully choose their victims, hoping that they will be unable or unwilling to ask for help, using ever more sophisticated methods to support their scams,” said U.S. Attorney Freed. “We are proud to join our efforts today with those of our colleagues in Washington and throughout the nation, and to work with our state and local colleagues to bring federal resources to tackling this persistent problem.”
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Do not remain silent if you were a victim of financial fraud, speak out and tell someone. Find the right reporting agency by going to Elder Abuse Resource Roadmaps: elderjustice.gov/roadmap or call the Victim Connect Hotline at 1-855-4Victim.
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A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
The Northern District of West Virginia takes part in largest-ever nationwide elder fraud sweepRead the Press Release
WHEELING – Attorney General William P. Barr and U.S. Attorney Bill Powell today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Crimes against the elderly are particularly heinous as they often involve taking advantage of already vulnerable people. The crimes are often compounded when the elderly victims are reluctant to report them. We encourage the reporting of these crimes so they can be fully investigated and aggressively prosecuted,” said Powell.
In the Northern District of West Virginia, there were several cases involving elder fraud, including the case of Karen Kinsley, a former bank branch manager, who pled guilty in September 2018 to bank fraud, admitted to taking out loans in customers’ names and reopening customers’ savings and checking accounts without the customers’ consent. She is scheduled to be sentenced in April.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
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Tax Preparers Indicted for Identify Theft, Wire Fraud, and Filing False ReturnsRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain, along with Principal Deputy Assistant Attorney General Richard E. Zuckerman, announced today that the owner and operator of a Philadelphia-based tax preparation business and his employee were charged with preparing fraudulent tax returns and related crimes in order to reduce taxes and inflate federal tax refunds for their clients.
Nvahbulai Quisiah, 43, of Philadelphia, and Gofin Kosia, 43, of Philadelphia, were charged by federal indictment with one count of conspiracy to defraud the United States, 17 counts of aiding and assisting in the preparation and filing of a false tax return, 6 counts of wire fraud, and 6 counts of aggravated identity theft. Quisiah is the owner of First Premier Tax Service, a tax preparation business, and Kosia is a tax preparer employed there.
According to the indictment, Quisiah and Kosia prepared tax returns for clients for tax years 2009 through 2016 that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents. As a result of these false items and deductions, the defendants allegedly inflated claimed tax refunds for their clients. The indictment alleges that the defendants knew their clients were not entitled to such refunds. One of the clients was an IRS agent acting in an undercover capacity. The indictment also alleges that the defendants bought and sold personal identifying information of children in order to falsely claim the children as dependents on tax returns for the defendants’ clients.
If convicted of aggravated identity theft, the defendants face a mandatory minimum sentence of two years in prison. Each count of wire fraud carries a maximum sentence of twenty years in prison, while each count of aiding and assisting in the preparation of false tax returns carries a maximum three year prison term. The defendants also face a period of supervised release, fines, and the payment of restitution.
“Tax preparers are supposed to follow and apply our tax laws to assist clients to accurately report their income and pay their fair share of federal taxes, not bend or ignore the rules to suit their client’s needs,” said U.S. Attorney McSwain. “As alleged, the defendants enriched themselves and their clients at the expense of taxpayers who take seriously their legal obligation to file complete and accurate federal income taxes each year. My Office will continue to aggressively prosecute these kinds of cases.”
An indictment alleges that crimes have been committed. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.