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16 April 2019
Monett Woman, Mexican National Sentenced for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Monett, Mo., woman and a Mexican national have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine.
Rebecca Castillo, 37, and Heradio Rios-Zarate, 27, a citizen of Mexico, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes on Monday, April 15. Castillo was sentenced to nine years in federal prison without parole. Rios-Zarate was sentenced to 10 years and three months in federal prison without parole.
Castillo and Rios-Zarate have both pleaded guilty to participating in a conspiracy to distribute methamphetamine from March 8 to April 20, 2017.
Castillo admitted that Rios-Zarate was her direct source of supply for methamphetamine. On March 8, 2017, Rios-Zarate transported five plastic containers that contained a total of more than 2.2 kilograms of methamphetamine (4.87 pounds), with a purity level of 98 percent, from Texas. He was stopped for speeding on Interstate 40 in Texas. A police service dog alerted to the presence of drugs in the vehicle. Officers found the methamphetamine in a plastic sack on the floor behind the front passenger seat.
When Rios-Zarate saw one of the officers pull out his handcuffs, he began running into an open field. One officer pursued him on foot and the others followed into the field in their patrol cars. Rios-Zarate was apprehended without further incident. Rios-Zarate admitted that at least one pound of the methamphetamine was to be delivered to Castillo.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Texas Department of Public Safety, the Missouri State Highway Patrol, the Monett, Mo., Police Department, and the Mesa County, Colo., Sheriff’s Department.
Miami-Based Violent Criminal Enterprise Members and Associates Sentenced for RICO Conspiracy, Drug Trafficking, Robbery and Use of FirearmsRead the Press Release
This month, the last of 14 defendants were sentenced for their respective roles in a violent criminal enterprise that operated in the Miami neighborhood of Allapattah for crimes committed as early as the year 2000.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Jorge Colina, Chief, Miami Police Department (MPD), Juan Perez, Director, Miami-Dade Police Department (MDPD), and Daniel Junior, Director, Miami-Dade Corrections and Rehabilitation Department (MDCR), made the announcement as part of the Southern District of Florida Violence Reduction Partnership (VRP).
On September 14, 2018, at the conclusion of a two-month trial before U.S. District Judge Jose E. Martinez, the jury convicted 10 defendants for racketeering and drug-related offenses. On April 12, 2019, Judge Martinez completed the sentencing of the final defendant. The sentences as to the defendants convicted at trial are as follows:
Antonio Glass, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Glass was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy;
Jerimaine Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and three counts of Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to life imprisonment;
Curtis Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy;
Samuel Hayes, of Miami, was convicted at trial of one count of Racketeering Conspiracy, two counts of Robbery, and one count of Firearm Possession in Furtherance of a Crime of Violence. Hayes was sentenced to 27 years imprisonment;
Mario Rodriguez, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy, one count of Possession of a Controlled Substance with Intent to Distribute, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Rodriguez was sentenced to 21 years imprisonment;
Michael Walker, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Walker was sentenced to 19 years imprisonment;
Reginald Graham, of Miami, was convicted at trial of one count of Racketeering Conspiracy, Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Graham was sentenced to 19 years imprisonment;
Daniel Jones, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy. Jones was sentenced to 19 years imprisonment;
Levi Bryant, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to 16 years imprisonment; and
Torivis Reginald Ingram, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute. Ingram was sentenced to 14 years imprisonment.
The other four defendants, of Miami, pled guilty prior to trial and were sentenced for periods of sixty months to 15 years imprisonment.
During the trial, evidence, that included civilian and law enforcement witness testimony, presented proved how the charged racketeering enterprise, which used names such as the Dub Side Blood Family (DSBF), for over 17 years conducted its unlawful business practices and controlled the South Gwen Cherry Housing Complex in the Allapattah neighborhood of Miami. Witness testimony established how the DSBF members routinely robbed victims at gunpoint and sold narcotics. The enterprise’s criminal spree included five commercial businesses, including MetroPCS locations, a Food Plus store, and the armed robberies of drug dealers.
The evidence at trial showed that the DSBF became so emboldened that it told a future homicide victim’s own mother that her son would be killed. The DBSF followed through on that promise with his subsequent murder. Trial evidence also established that members of the group celebrated after another victim’s murder by posting images of the deceased’s body in a casket. Trial evidence included jailhouse phone calls and private messages, which captured DSBF members discussing the operation of their organization and proposed responses to circumvent law enforcement’s investigation into the criminal enterprise. Trial evidence from the defendants’ social media and cellular phone records demonstrated the group’s ability to continue criminal activity despite periods of time when its members were incarcerated.
U.S. Attorney Fajardo Orshan commended the collaborative investigative efforts of ATF, FBI, DEA, MPD, MDPD, and MDCR, including the following key participants: MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. Ms. Fajardo Orshan also thanked the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department, Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force for their support in the investigation.
Through the collaborative VRP, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The sentences announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), Operation Northern Light. The Northern Light Task Force is a federal multi-agency, multi-jurisdictional task force that was formed to combat organized violent crime in Northern Miami-Dade County. To date the Northern Light Task Force has secured the conviction of 27 defendants involved in complex violent crimes involving homicide, attempted murder, serial robbery, firearms offenses, drug trafficking, and other crimes. The principal mission of the Northern Light Task Force is to identify, disrupt, and dismantle the most serious organized violent criminal conspiracies operating in Miami-Dade County, Florida.
This case was prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr. and Ilham A. Hosseini.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Member of Carjacking Conspiracy Pleads GuiltyRead the Press Release
DAYTON – Carlos Raymond Alvarez, aka “Rico Finessegod”, 25, of Dayton, pleaded guilty in U.S. District Court to conspiracy to commit carjacking and gun charges for his role in a scheme that lured a victim through a dating app and stole his car when he showed up for his expected date.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Montgomery County Sheriff Rob Streck, and Colonel Richard S. Fambro of the Ohio State Highway Patrol announced the plea entered yesterday before U.S. District Judge Thomas M. Rose.
A federal grand jury indicted Alvarez along with co-defendants A. Philip Thomas Christian Daugherty, 23, of Dayton, Zy’Lique Anaise Murphy, 19 and Zhaire Simone Chardae Evans, 19, both of Columbus, in November 2018. According to court documents, Evans posted messages on internet dating sites soliciting men to meet her for a date. One of the meetings was set for July 6, 2018 in Harrison Township. When the victim arrived, Alvarez and Daugherty pretended to be jilted boyfriends of Evans and Murphy, beat the victim, stole his keys and his car and drove the car to Columbus. Alvarez fired a handgun he was carrying near the victim as a way to intimidate him.
Alvarez pleaded guilty to one count of conspiracy to commit carjacking, punishable by up to five years in prison and one count of using a firearm during a crime of violence, punishable by a mandatory minimum of ten years and up to life in prison. Judge Rose scheduled a sentencing hearing for Alvarez for July 24. Charges against the other three defendants remain pending.
U.S. Attorney Glassman commended the cooperative investigation by ATF, the Sheriff’s Office and the Ohio Highway Patrol, as well as Assistant United States Attorney Dwight Keller who is representing the United States in the case.
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Maximum sentence removes violent felon from historic Savannah neighborhoodRead the Press Release
SAVANNAH, Ga: A Savannah man has received the maximum federal prison sentence after his conviction for possession of a firearm by a convicted felon.
Calvin James, 32, was sentenced to 10 years in prison by U.S. District Court Judge William T. Moore, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. James, who was convicted after a jury trial in January, also was sentenced to serve three years of supervised release after completion of his sentence, and there is no parole in the federal system.
James’ arrest occurred in March 2018 in Savannah’s Cuyler-Brownsville neighborhood, an area that has received extensive focus from the Savannah Police Department’s Strategic Investigations Unit (SIU) and the U.S. Attorney’s Office through the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). The case also was investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives.
James was arrested by members of SIU after he fled on foot and discarded a stolen firearm and several bags of marijuana.
“James’ sentence represents another violent felon removed from the Cuyler-Brownsville neighborhood,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “With our law enforcement partners, we will not stop until every violent criminal is removed from every one of our communities.”
“This inter-agency collaboration and the resulting arrest goes a long way toward addressing gun violence by removing from our streets firearms and those willing to obtain them illegally and potentially use them,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF.
The case was investigated by the Savannah Police Department’s Special Investigative Unit (SIU) and the ATF. The case was prosecuted for the United States by Assistant United States Attorneys Jennifer Kirkland and Joshua Bearden.
Massachusetts Man Pleads Guilty to Multiple Counts of Child Pornography OffensesRead the Press Release
A Massachusetts man pleaded guilty today to distribution, receipt and possession of child pornography charges.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office made the announcement.
Bruce Singer, 72, of Southampton, Massachusetts was charged with five counts of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. Singer was indicted in March 2017. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 19, 2019.
According to admissions made in connection with his plea agreement, on various occasions between April 30, 2013 and June 25, 2015, Singer sent and received child pornography by text and email. Singer engaged in the exchange of child pornography with two other people, including James Smith, a man who was convicted in 2017 in District Court in Springfield, Massachusetts for distributing, transporting, receiving and possessing child pornography. At the time police searched his home in 2015, Singer possessed hundreds of images of child pornography on various electronic devices, including images of several known child victims.
This case was investigated by the FBI, Northampton Police Department, Easthampton Police Department and Massachusetts State Police. Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alex J. Grant of the District of Massachusetts are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Marysville Woman Guilty of Distribution of A Controlled Substance and False Statements in Health Care MattersRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Belinda Dietrich, age 62, of Marysville, Pennsylvania, pleaded guilty on April 15, 2019, before U.S. District Court Judge Sylvia H. Rambo to one count of unlawful distribution of a controlled substance and one count of false statements in health care matters.
According to United States Attorney David J. Freed, Dietrich, a former receptionist for a solo dental practitioner in Harrisburg, admitted to forging the signature of her employer on a blank prescription form on February 13, 2017, for oxycodone pills for her mother, a Medicare beneficiary, who was not a patient of the dentist. Dietrich then had the prescription filled at a Harrisburg area pharmacy and received 24 oxycodone pills, who then converted the drugs to her own use. The pharmacy billed the cost of the oxycodone pills to Medicare, which paid the claim.
The guilty plea proceeding revealed that Dietrich’s forgeries were not limited to just one prescription. The government informed the court that between February 17, 2016 and August 2017, Dietrich forged 164 prescriptions for oxycodone and hydrocodone for herself, her family and her friends, who then filled the prescriptions at local pharmacies and shared the controlled substances among themselves. All together, more than 5,022 oxycodone and hydrocodone pill were obtained in this manner.
Judge Rambo ordered a presentence report to be prepared pending sentencing, which will be scheduled at a later date.
The case was investigated by the Harrisburg Offices of the Drug Enforcement Administration, Diversion Division and the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for distribution of a controlled substance is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $1 million fine. The maximum penalty for false statements in health care matters is five years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Man Pleads Guilty to Participating in a Drug Trafficking Conspiracy and Possessing a FirearmRead the Press Release
WASHINGTON –Brian Jenkins, 44, of Brentwood, Md., pled guilty today to trafficking in crack and powder cocaine as part of a nearly year-long narcotics conspiracy in Washington, D.C. and Maryland, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Jenkins pled guilty before the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a detectable amount of cocaine. The charge requires a mandatory minimum sentence of five years of incarceration and up to 40 years imprisonment. Judge Leon scheduled Jenkins’ sentencing for July 18, 2019.
As part of his plea agreement, Jenkins accepted responsibility for a firearm possessed in his Maryland residence at the time that he was arrested.
Jenkins was arrested on the morning of March 15, 2018 and his residence was searched pursuant to a warrant. At Jenkins’ residence, the FBI recovered cocaine, $12,900 in U.S. currency, a loaded handgun with multiple magazines, and a crack cocaine manufacturing kit to include two digital scales, a strainer, baking soda, and a Pyrex dish.
Four others have pled guilty to charges in the case. They include Everette Reel, 46, of Upper Marlboro, Md; Jamal Curtis, 41, of Washington, D.C., Derek Holmes, 54, of Washington, D.C., and Russell Harrison, 40, of Temple Hills, Md. Reel, Curtis, and Holmes are now serving sentences and Harrison is to be sentenced on May 1, 2019. Harrison faces a mandatory minimum sentence of five years of incarceration and up to life imprisonment for his possession of multiple firearms in furtherance of his drug trafficking as part of the conspiracy.
The case remains pending against another defendant, Darnell Catlett, 46, of Upper Marlboro, Md.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
In announcing the pleas, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Candace Battle and Teesha Tobias, Legal Assistant Emma Atlas, and Assistant U.S. Attorneys Christopher Macchiaroli and Kevin Rosenberg of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and prosecuted the defendants.
Manufacturing Company Owner Pleads Guilty to Crimes Involving Defense Department ContractsRead the Press Release
COLUMBUS, Ohio – Daniel Emerson Norton, 51, of Arlington, Virginia and owner of Torrance, California-based Emerson Company, pleaded guilty in U.S. District Court to conspiracy to commit wire fraud, concealment money laundering and tampering with documents or proceedings in connection with illegally obtaining approximately $2,229,142.40 in Defense Department contracts and providing defective parts made in China instead of U.S.-made critical application items used by the U.S. military.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Leigh-Alistair Barzey, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Services (DCIS), Central Field Office, and William Cheung, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the plea entered yesterday before U.S. District Judge Michael H. Watson.
A trial against Norton began April 8th. He interrupted the trial to enter the pleas of guilty.
“Contractors who provide defective and nonconforming parts place the reliability of U.S. military equipment in jeopardy,” U.S. Attorney Glassman said. “That in turn puts our men and women in uniform in danger. That’s why I think it’s crucial that contractors like Norton and Emerson Company are held accountable for their crimes.”
According to court documents and testimony at trial, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011. Norton then continued to recruit people who either already had companies or were willing to start companies to do his bidding on solicitations and contract with the military to provide parts for the U.S. military between 2011 and 2013. When one of the companies was awarded a purchase order, Norton directed them to send it to Emerson Company which would buy and ship the part directly to DoD.
Norton bought the parts from manufacturers in China, even though a large number of them were required to be made in the United States. The parts Norton provided had dimensional defects, material substitutions, incorrect or missing markings, incorrect finishes, improper shapes or styles, mislabeled packaging or poor workmanship and thus failed to conform to the contract requirements. Additionally there were contracts that called for an exact part from a specific domestic manufacturer. Rather than obtaining these parts from the specified manufacturer, Norton supplied parts obtained from China. The parts involved a variety of parts utilized on military weapon systems to include aircraft, vessels, vehicles, and nuclear reactor programs.
Once Norton realized he was under investigation in 2013 by both the Defense Logistics Agency (DLA), an agency of the Defense Department, DCIS and the U.S. Attorney’s Office, he took several steps to mislead the government in its investigations. For example, in an effort to avoid an extension of debarment for providing a non-conforming bolt used on a C-130 aircraft engine, Norton submitted false documents to the DLA deflecting blame from Emerson Company as the manufacturer. Norton knew, however, that he had ordered the bolts from a manufacturer in China and they did not conform to the contract requirements. Norton also admitted to falsely communicating information to his attorney, or allowing such information to be communicated, with the intent that it be communicated to the United States as it related to its grand jury investigation, thereby obstructing that investigation.
Norton faces up to ten years in prison for his crimes. He also agreed to make restitution of more than $2 million and to forfeit his $800,000 home in Hawaii and more than $300,000 in proceeds in a bank account. Judge Watson will schedule a date for sentencing.
“IRS criminal investigation followed the flow of money in this case in order to uncover the fraud committed against American taxpayers,” Acting SAC Cheung said. “We are proud to work with our law enforcement and military partners to investigate financial transactions that impact our country and our military.”
U.S. Attorney Glassman commended the investigation of this case by DCIS and the IRS, Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case, and Special Assistant U.S. Attorney Christopher St. Pierre.
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Man Sentenced to 58 Months for Darknet Credit Card SchemeRead the Press Release
A Lewisville man who stole more than a thousand credit and debit card numbers was sentenced today to 58 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Odis Edwards, 40, pleaded guilty to conspiracy to commit access device fraud in January.
In plea papers, Mr. Edwards admits he stole more than 1,200 credit and debit card numbers via the darknet and internet chat rooms. He and his co-conspirators used counterfeit cards to book more than $250,000 in rooms and incidentals at hotels around Dallas.
An agent testified in Court on Monday that Mr. Edwards sub-rented the rooms to drug dealers and pimps at a fraction of their true cost.
Hotel personnel became suspicious when multiple people racked up hefty room service bills, all charged to Mr. Edward’s account. Inside the rooms, law enforcement officers found altered credit cards as well as notebooks containing what appeared to be credit card numbers and URLs for digital credit card number generators.
“More and more, we’re seeing perpetrators attempt to cloak themselves in the seeming anonymity of the darknet. But they should know that we prioritize the investigation of illicit activity on the darknet and will vigorously prosecute this unlawful behavior ,” said U.S. Attorney Nealy Cox. “In this case, I applaud the hard work of our Secret Service and police partners, as well as the hotel workers who reached out to law enforcement when they felt something was amiss.”
“The Dallas Field Office and the entire Secret Service is dedicated to the investigation of financial crime,” said William Noonan, Special Agent in Charge of the Secret Service’s Dallas Field Office. “This investigation is a testament to the Secret Service’s commitment to working with our partners on accomplishing our dual mission.”
The U.S. Secret Service conducted the investigation with the assistance of the Colleyville Police Department. Assistant U.S. Attorneys Ryan Raybould and Damien Diggs prosecuted the case.
Man Sentenced for Straw Purchasing Firearms for Convicted FelonRead the Press Release
RICHMOND, Va. – A Chesterfield County man was sentenced today to two and a half years in prison for making false statements when he purchased firearms for a convicted felon.
“Straw purchasers are often literally arming criminals,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This poses a serious threat to public safety and the safety of our law enforcement partners. Simply put, convicted felons have forfeited their Second Amendment right to bear arms, and those who choose to straw purchase firearms for prohibited individuals will be investigated, prosecuted, and may themselves become convicted felons and therefore unable to possess or purchase firearms for themselves or others. We will continue to aggressively pursue these cases, seek to obtain felony convictions, and work with local federally licensed firearms dealers and our partners at the ATF to stop the flow of illegally purchased firearms from hitting the street.”
According to court documents, Jeremy Durand Lewis, 35, purchased seven guns for Abdul Shahid Davis, a convicted felon, at federally licensed firearms dealers in Virginia between July and November 2015. When purchasing these firearms, Lewis falsely stated on forms that he was the actual purchaser of the firearms, when, in fact, he was purchasing them for Davis. Davis then sold those guns to an undercover New York City Police Detective.
“This investigation demonstrates how firearms make it into the hands of convicted felons and onto our streets. Anyone engaged in firearms trafficking should be on notice,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “As shown in this case, ATF works with law enforcement partners throughout the nation to keep firearms out of the hands of those who should not have them. If you lie when you buy a firearm, you will be held accountable. ATF is committed to keeping all of our communities safe and will continue to follow these investigations wherever they lead us.”
Six other defendants have received felony convictions and have been sentenced for making false statements in connection with this scheme:
Name, Age
Hometown
Felony Conviction
Sentence
Cherie Elanda Wyatt, 41
Richmond
False Statement to Acquire Firearm
1 year of probation
Kevin Edward Wilson, 29
Powhatan
False Statement to Acquire Firearm
2 years of probation, 180 days of home detention
Denise Michelle Sinkford, 41
Richmond
False Statement to Acquire Firearm
2 years of probation, 180 days of home detention
Shanta Teisha Brown, 29
Richmond
False Statement to Acquire Firearm
2 years of probation, 60 days of home detention
Evelyn Jean Collins-Chandler, 54
Richmond
Conspiracy to Make False Statements to Acquire Firearm
2 years of probation, 60 days of home detention
Ebony Danielle Clarke, 34
Richmond
False Statement to Acquire Firearm
3 years of probation, 210 days of home detention
Three other defendants have pleaded guilty to making false statements on firearm forms and are awaiting sentencing:
Name, Age
Hometown
Convictions
Sentencing Date
Brandon Andrea Powell, 40
Chester
False Statement to Acquire Firearm
May 31
Jeffrey Quinton Toole, 56
Richmond
False Statement to Acquire Firearm
July 15
Yolanda Lisa Stone, 47
Richmond
False Statement to Acquire Firearm
July 29
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 Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge M. Hannah Lauck imposed sentence. Assistant U.S. Attorneys Michael C. Moore and Kenneth Simon are prosecuting the cases.
Special assistance in this investigation and prosecution was provided by the New York Police Department and the New York County District Attorney’s Office.
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. 3:18-37, 56, 77, 86, 110, 120, 138, 154, and 3:19-cr-13.
Madera Pharmacist Arrested on Drug Trafficking ChargesRead the Press Release
FRESNO, Calif. — A Madera pharmacist and two others were arrested today in connection with a conspiracy to distribute oxycodone and hydrocodone, U.S. Attorney McGregor W. Scott announced.
On April 11, a federal grand jury returned a 42-count indictment, charging Ifeanyi Vincent Ntukogu, 44, of Fresno, a pharmacist, with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 17 counts of distribution of controlled substances. Kelo White, 38, of Fresno, was charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 12 counts of possession with intent to distribute controlled substances. Donald Ray Pierre, 50, of Fresno, was charged with one count of conspiracy to distribute controlled substances, 10 counts of possession with intent to distribute controlled substances, and two counts of identity theft.
According to court documents, Ntukogu owned and operated New Life Pharmacy in Madera. Between December 2014 and November 2018, Ntukogu filled fraudulent prescriptions for oxycodone and hydrocodone, Schedule II controlled substances, then dispensed the controlled substances to White and Pierre.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the California Department of Health Care Services. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Ntukogu was arrested at the New Life Pharmacy in Madera and White and Pierre were arrested at their homes in Fresno.
If convicted, Ntukogu, White and Pierre each face a maximum statutory penalty of 20 years in prison and a $1 million fine in connection with the drug charges. Additionally, Pierre faces a maximum statutory penalty of 20 years in prison and a $250,000 fine in connection with the identity theft charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Loudon Man Sentenced to 120 Months for Participating in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD - Michael Bean, 33, of Loudon, was sentenced to 120 months in prison for conspiring with others to distribute methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Bean and his girlfriend, Katie-Jo Waters, were members of a conspiracy in which supplier Edward Espejo, of Las Vegas, Nevada, shipped packages of nearly pure methamphetamine to New Hampshire. Bean and Waters received packages containing methamphetamine in Pembroke and distributed the drugs to New Hampshire buyers. Bean and Waters would then wire the proceeds of drugs sales to Espejo in Las Vegas to purchase additional drugs. Between January and May 2018, Bean and Waters wired a total of more than $28,000 to Espejo in Las Vegas to buy methamphetamine. On May 2, 2018, postal inspectors intercepted a package containing a pound of pure methamphetamine that Espejo was sending to Waters.
Bean previously pleaded guilty on September 27, 2018.
Waters and Espejo previously pleaded guilty. Waters was sentenced on Tuesday to serve 72 months in prison. Espejo is awaiting sentencing.
“Highly pure methamphetamine has been appearing with greater frequency in New Hampshire,” said U.S. Attorney Murray. “This dangerous drug presents a serious and growing threat to public health and safety. In order to deter drug traffickers, the law enforcement community will act aggressively to identify, prosecute, and incarcerate those who attempt to distribute methamphetamine in the Granite State.”
“Today’s sentencing is a result of a coordinated effort with our federal law enforcement partners to keep these highly addictive drugs out of our communities,” said U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division. “The U.S. Postal Inspection Service continuously works to rid the mail of illicit drug trafficking and the associated violence, preserve the integrity of the mail, and, most importantly, provide a safe environment for postal employees and the American public.”
“This sentence reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said Special Agent in Charge Brian D. Boyle. “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the DEA and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Long Island Bloods Gang Leader Sentenced to 20 Years in Prison for Narcotics Distribution and Multiple ShootingsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Michael Smith, also known as “Bum Jew,” a high-ranking member of the Nine Trey Bloods street gang, was sentenced by United States District Judge Joseph F. Bianco to 20 years’ imprisonment for conspiracy to distribute crack cocaine, his participation in two shootings and possessing a firearm. Smith had previously pleaded guilty on November 9, 2015.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“With today’s sentence, Smith has been held accountable for his ruthless conduct and for profiting from the human misery he perpetuated in Suffolk County by supplying crack to other Bloods gang members for re-sale as well as directly to addicts himself,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will continue to work tirelessly to dismantle violent street gangs in our communities.” Mr. Donoghue expressed his gratitude to the FBI’s Long Island Gang Task Force for their outstanding work on the case.
“Michael Smith plagued Suffolk County with his distribution of this deadly drug to fellow dealers, gang members, and addicts,” stated FBI Assistant Director-in-Charge Sweeney. “As if drug dealing wasn’t enough of a threat to the community, Smith then compounded this with his violent activity; involving himself in multiple shootings. Today’s sentencing not only brings Smith to justice, but also helps keep our community safe.”
According to court filings and statements made during the guilty plea, between January 2008 and January 2014, Smith utilized his leadership position within the Bloods to purchase, process and distribute kilograms of cocaine base in Suffolk County. Smith sold narcotics to distribution-level drug dealers, some of whom were other Bloods gang members, and directly to drug users. When distributing narcotics, Smith was typically armed with a gun.
On November 24, 2011, Smith engaged in a verbal dispute with one of his drug suppliers in front of a bar in Patchogue. During the dispute, Smith shot the supplier in the chest. On June 16, 2013, Smith and several fellow Bloods members drove to a home in Central Islip, where they confronted another Bloods member about his role in a prior shooting. During the confrontation, Smith displayed a firearm and pointed it at the intended victim. When a bystander restrained Smith, pointing out that there were many women and children present, Smith ordered a Bloods member to shoot the other Bloods member. Both shooting victims survived their wounds.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek are in charge of the prosecution.
The Defendant
MICHAEL SMITH (also known as “Bum Jew”)
Age: 33
Residence: Mastic, New YorkE.D.N.Y. Docket No. 14-CR-485 (S-3) (JFB)
Las Vegas Man Sentenced to 35 Years in Prison for Two Violent Takeover Robberies and Assault on A Federal OfficerRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man, Brian Wright, who was convicted for his role in planning and participating in the armed robbery of two jewelry stores while he was on federal supervised release for a conviction related to unlawful possession of a firearm, was sentenced Monday to 328 months in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada. In a separate case, Wright was previously sentenced to 92 months in prison after a jury convicted him of Assault on a Federal Officer. The Court ordered the 328-month sentence in this case to run consecutive to his sentence in the assault case for a total sentence of 35 years in federal prison.
Brian Wright, 34, was convicted of two counts of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. In addition to the incarceration, U.S. District Judge Jennifer A. Dorsey sentenced him to three years of supervised release concurrent on each count. Wright has been previously convicted in Nevada of robbery with a deadly weapon, conspiracy to commit robbery, and felon in possession of a firearm, and he has multiple parole and supervised release violations.
“Every time law enforcement takes a gun out of the hands of a violent criminal we are potentially saving lives,” said U.S. Attorney Trutanich. “This significant sentence is the result of our continued efforts to keep the community safe from dangerous repeat offenders by working together with our local and federal law enforcement partners.”
During the six-day trial, the government proved that Wright planned and recruited two gunmen and several getaway drivers to rob a jewelry store located at N. Rainbow Blvd in northwest Las Vegas in January, 2017. On January 3, 2017, the two gunmen, co-conspirators Deandre Nakita Brown and Aquail Harris, entered the jewelry store pointing their firearms at employees and customers, including two young children, forcing them to their knees. Harris physically removed the security guard’s firearm and the robbers took the firearm along with the stolen jewelry. The two gunmen delivered the stolen jewelry and watches valued at over $850,000 to the getaway vehicle driven by two additional co-conspirators, Kendareen Hudson and Safiyyah Christopher. Wright, using a police radio scanner app on his phone, relayed information to his co-conspirators to avoid apprehension. However, shortly following the robbery Las Vegas Metropolitan Police Department officers found and arrested Hudson and Christopher and recovered the stolen merchandise.
Ten days later, Wright recruited co-conspirators Carl Whitley and Deandre Brown to help him rob a jewelry store located at W. Charleston Blvd in Boca Park. Wright provided a gun to Brown to use in the robbery. On January 13, Brown entered the jewelry store pointing a gun at employees and directing them to fill garbage bags with jewelry and watches. Approximately $765,000 worth of jewelry was taken. Brown fled in a getaway vehicle driven by co-conspirator Randy Jerousek. Brown ultimately abandoned the vehicle and the jewelry in the backseat when the it became clear that police were searching for the getaway vehicle. This vehicle driven by co-conspirator Randy Jerousek was quickly located at a casino with the stolen merchandise in it. The co-conspirators were arrested soon thereafter.
Brown, Harris, and Wright met and planned the robberies while each of them were serving on federal supervised release.
Co-defendants Harris, Christopher, Hudson, Jerousek, Whitley, and Brown all pleaded guilty for their involvement in the armed robberies.
The case was investigated by the FBI Safe Streets Task Force and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Alexandra Michael, Nadia Ahmed, and Lisa Cartier Giroux prosecuted the case.
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Laredo Man Sentenced for Multi-Year Drug ConspiracyRead the Press Release
LAREDO, Texas – A 60-year-old resident of Laredo has been ordered to federal prison for his involvement in a multi-year conspiracy involving numerous types of narcotics, announced U.S. Attorney Ryan Patrick. Daniel Martin Huerta pleaded guilty Aug. 22, 2018.
Today, U.S. District Judge Keith P. Ellison sentenced Huerta to 120 months of imprisonment to be immediately followed by a five-year-term of supervised release. At the hearing, he was held accountable for being the leader and organizer of five or more persons during the course of the drug trafficking conspiracy.
Between May 1, 2012, and April 24, 2018, Huerta conspired with persons in his drug trafficking organization to possess with the intent to distribute large amounts of cocaine, methamphetamine, heroin and marijuana. Huerta and his co-conspirators were responsible for importing the controlled substances from Mexico and sending them to Dallas and other cities throughout the United States.
Huerta also laundered money in U.S. bank accounts and smuggled U.S. currency derived from drug proceeds into Mexico. Notably, on April 27, 2013, Huerta directed co-conspirators to smuggle $238,335 in bulk cash into Mexico. Law enforcement seized this load prior to the money exiting the U.S.
On Nov. 24, 2014, local authorities seized 24 kilograms of cocaine in four car batteries after a traffic stop of a flatbed trailer which belonged to Huerta.
Huerta has been in custody since his arrest on May 4, 2018. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force investigation with the assistance of Border Patrol. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.
Kayenta Man Sentenced to Federal Prison for Assault with a Dangerous WeaponRead the Press Release
PHOENIX – On April 15, 2019, Kelsey Dale Benally, 27, of Kayenta, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 63 months in prison, to be followed by three years of supervised release. Benally had previously pleaded guilty to assault with a dangerous weapon. Benally was also sentenced to five months in prison for violating a term of supervised release imposed for a prior criminal conviction in 2017. These sentences were ordered to run consecutively.
On Oct. 31, 2015, Benally stabbed the victim multiple times with a knife, causing the victim to sustain serious bodily injuries. After seriously injuring the victim, Benally also stole a truck the victim had been driving. Officers from the Navajo Nation Police Department apprehended Benally shortly after the assault. The assault happened on the Navajo Indian Reservation. Both Benally and the victim are members of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08019-PCT-JJT
RELEASE NUMBER: 2019-053_Benally
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Settles Claims Against Farmersville,Texas, Involving Denial of Islamic CemeteryRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Eastern District of Texas today announced an agreement with the City of Farmersville, Texas, to resolve allegations that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when, in July 2017, it denied an application by the Islamic Association of Collin County (Islamic Association) to build a cemetery.
“Federal law protects the rights of all religious communities to buy or rent land for religious purposes including places of worship, religious schools, charitable activities, and cemeteries without discrimination or the imposition of unwarranted burdens,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously enforce this important right.”
“There is no place in our community for religious discrimination,” said U.S. Attorney Joseph D. Brown. “Our office is committed to protecting religious freedom.”
The settlement agreement resolves a lawsuit the United States filed today in the U.S. District Court for the Eastern District of Texas. After the City denied the Islamic Association’s application to build a religious cemetery, the United States opened an investigation of the City’s actions in September 2017. In August 2018, the United States notified the City that it had concluded that the City had violated RLUIPA and intended to file suit, and offered the City an opportunity to negotiate a resolution. In September 2018, the City and the Islamic Association entered into a separate agreement allowing for the approval of the cemetery and in December 2018, the City approved the Islamic Association’s application to develop the land as a cemetery.
The United States’ complaint alleges that the City’s denial of the Islamic Association’s application to develop the property as a cemetery imposed a substantial burden on the Islamic Association’s religious exercise and discriminated against the Islamic Association on the basis of religion. The City denies the allegations. As part of the agreement, the City has agreed to provide training to its officials and employees about their obligations under RLUIPA and to notify the public about the City’s compliance with RLUIPA in its zoning and land use actions.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Johnstown Woman Pleads Guilty to Heroin PossessionRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Alissa N. Mosley, 30, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 27, 2017, Mosley and a co-defendant did possess with intent to distribute more than 100 grams of heroin.
Judge Gibson scheduled sentencing for August 19, 2019, at 10:00 a.m. The law provides for a maximum sentence for Mosley of 40 years in prison and a fine of $5,000,000 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.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Mosley.
Justice Department Settles Claims Against Farmersville, Texas, Involving Denial of Islamic CemeteryRead the Press Release
WASHINGTON – The Department of Justice and the U.S. Attorney’s Office for the Eastern District of Texas today announced an agreement with the City of Farmersville, Texas, to resolve allegations that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when, in July 2017, it denied an application by the Islamic Association of Collin County (Islamic Association) to build a cemetery.
“There is no place in our community for religious discrimination,” said U.S. Attorney Joseph D. Brown. “Our office is committed to protecting religious freedom.”
“Federal law protects the rights of all religious communities to buy or rent land for religious purposes including places of worship, religious schools, charitable activities, and cemeteries without discrimination or the imposition of unwarranted burdens,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously enforce this important right.”
The settlement agreement resolves a lawsuit the United States filed today in the U.S. District Court for the Eastern District of Texas. After the City denied the Islamic Association’s application to build a religious cemetery, the United States opened an investigation of the City’s actions in September 2017. In August 2018, the United States notified the City that it had concluded that the City had violated RLUIPA and intended to file suit, and offered the City an opportunity to negotiate a resolution. In September 2018, the City and the Islamic Association entered into a separate agreement allowing for the approval of the cemetery and in December 2018, the City approved the Islamic Association’s application to develop the land as a cemetery.
The United States’ complaint alleges that the City’s denial of the Islamic Association’s application to develop the property as a cemetery imposed a substantial burden on the Islamic Association’s religious exercise and discriminated against the Islamic Association on the basis of religion. The City denies the allegations. As part of the agreement, the City has agreed to provide training to its officials and employees about their obligations under RLUIPA and to notify the public about the City’s compliance with RLUIPA in its zoning and land use actions.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
This matter is being handled by Eastern District of Texas Assistant U.S. Attorney James Gillingham and Civil Chief Josh Russ.
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Houston Man Gets Significant Sentence for Carjacking and Related OffenseRead the Press Release
HOUSTON – A 35-year-old Houston man has been ordered to federal prison for carjacking and discharging a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. A federal jury sitting in Houston convicted Sean Rodriguez Sept. 26, 2018, after approximately three hours of deliberation following a three-day trial.
Today, Chief U.S. District Judge Lee H. Rosenthal handed Rodriguez a 80-month sentence for the carjacking. He also received an additional 10 years for the firearms charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by two years of supervised release. In handing down the sentence, the court noted that this was a serious and dangerous crime and that the defendant was lucky that no one was injured or killed during the crime or his flight.
During the trial, the jury heard from victims who were carjacked at gunpoint. Both described how Rodriguez brandished a silver revolver and pointed it at them. Rodriguez had pistol-whipped the male victim, at which time the gun discharged above the man’s head.
A neighbor also provided testimony who explained how she helped the female victim after she ran to her house to call 911. The jury also heard that call.
The jury also heard from four police officers were involved in a high-speed chase after Rodriguez refused to pull over in the stolen vehicle three days later. The jury saw a helicopter video of the chase and the dash cam of one of the officers. During the chase, Rodriguez went the wrong way down streets at high rates of speed, nearly hit pedestrians and other vehicles before crashing into a family of six.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Texas Department of Public Safety, Houston Police Department, Harris County Institute of Forensic Science and Harris County Sherriff’s Office conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Britni Cooper are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Herndon Man Pleads Guilty to CyberstalkingRead the Press Release
ALEXANDRIA, Va. – A Herndon man pleaded guilty today to cyberstalking a victim in New York.
According to court documents, Brandon Theresa, 21, engaged in an extensive cyberstalking campaign against a victim from at least May 2015 through December 2018. During that time, he accessed the victim’s online accounts without the victim’s permission and periodically impersonated the victim and the victim’s friends to gain information about the victim’s comings and goings. As part of that conduct, Theresa established U.S. Postal Service Informed Delivery accounts, which provide detailed information about the mail received at a particular address, using the personal information of the victim and the victim’s friends and family member in order to further place the victim under surveillance.
Theresa pleaded guilty to cyberstalking and faces a maximum penalty of five years in prison when sentenced on July 26. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael Ray, Inspector in Charge of Analytics/Cyber Division of the U.S. Postal Inspection Service, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Laura Fong is 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-118.
Guilty Plea in Illegal Firearms SalesRead the Press Release
PROVIDENCE - A Providence man pleaded guilty in U.S. District Court on Monday to selling two firearms, one with an obliterated serial number, to a local person and one to an undercover law enforcement out-of-state resident.
Diosvany Cabreja Renosa, 21, pleaded guilty to possession of a firearm with an obliterated serial number and sale of a firearm to an out-of-state resident, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, and Providence Police Chief Colonel Hugh T. Clements, Jr.
According to information presented to the Court, on April 9, 2018, Reynosa, 21, sold an individual in Providence a 9mm pistol with an obliterated serial number, and on November 15, 2018, he sold an undercover ATF agent, who lives in Massachusetts, a semi-automatic rifle with a drum magazine.
In the first transaction, Reynosa acknowledged to the buyer that he was selling him a firearm with an obliterated serial number. In the second transaction, the undercover agent clearly stated to Reynosa that he was a Massachusetts resident. Reynosa acknowledged that he was aware that the person to whom he was selling the firearm did not live in Rhode Island.
According to ATF records, Reynosa is not a federally licensed firearms dealer.
Reynoso was arrested by members of the ATF Task Force on December 19, 2018, six days after a federal grand jury returned a sealed indictment in this matter.
Reynoso is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on August 30, 2019.
Possession of a firearm with an obliterated serial number and sale of a firearm to an out-of-state resident are punishable by statutory penalties of up to 5 years in federal prison to be followed by up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, the ATF Task Force, and the Providence Police Department. U.S. Attorney Aaron L. Weisman acknowledges and thanks the Pawtucket Police Department for their assistance in the investigation of this matter.
The ATF Task Force is comprised of law enforcement agents and officers from ATF, the Providence and Pawtucket Police Departments, Rhode Island State Police, and the Rhode Island Department of Corrections.
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Four Extradited from Peru for Operating Spanish-Speaking Call Centers that Extorted U.S. ConsumersRead the Press Release
Four Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced.
Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.
“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten U.S. consumers and extort them of their hard earned money, regardless of what country they operate from,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch in pursuing South American call center operators who victimize consumers through the U.S. mail.”
Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.
According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats.
A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Four Extradited from Peru for Operating Spanish-Speaking Call Centers that Extorted U.S. ConsumersRead the Press Release
Four Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced.
Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.
“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten U.S. consumers and extort them of their hard earned money, regardless of what country they operate from,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch in pursuing South American call center operators who victimize consumers through the U.S. mail.”
Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.
According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats.
A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Former Wichita Policeman Pleads Guilty to Protecting Illegal Poker GamesRead the Press Release
WICHITA, KAN. – A former Wichita police officer pleaded guilty Tuesday to looking the other way for years while co-defendants made a business of operating illegal private poker games, U.S. Attorney Stephen McAllister said.
Michael Zajkowski, 51, pleaded guilty to one count of concealing a felony. In his plea, he admitted he knew about illegal private poker games in Wichita and he did not report it to authorities. On Feb. 12, 2014, one of the co-defendants suspected an undercover Wichita police officer had come to a poker game posing as a gambler. At the co-defendant’s request, Zajkowski attempted to find out whether there was a police investigation and provided information to the co-defendant.
Sentencing is set for Aug. 2. Both parties have agreed to recommend Zajkowski serve a year on federal probation. McAllister commended the FBI, the Wichita Police Department, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Student Pleads Guilty to Destroying Computers at the College of St. RoseRead the Press Release
ALBANY, NEW YORK – Vishwanath Akuthota, age 27, of Albany, pled guilty today to causing damage to computers owned by The College of St. Rose.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief Eric Hawkins of the Albany Police Department (APD).
Akuthota admitted that on February 14, 2019, he inserted a “USB Killer” device into 66 computers, as well as numerous computer monitors and computer-enhanced podiums, owned by the college in Albany. The “USB Killer” device, when inserted into a computer’s USB port, sends a command causing the computer’s on-board capacitors to rapidly charge and then discharge repeatedly, thereby overloading and physically destroying the computer’s USB port and electrical system.
Akuthota admitted that he intentionally destroyed the computers, and recorded himself doing so using his iPhone, including making statements such as “I’m going to kill this guy” before inserting the USB Killer into a computer’s USB port. Akuthota also admitted that his actions caused $58,471 in damage, and has agreed to pay restitution in that amount to the College.
Akuthota is a citizen of India, residing in the United States on a student visa. He has been in custody since he was arrested in North Carolina on February 22, 2019.
When he is sentenced on August 12, 2019 by United States District Judge Mae A. D’Agostino, Akuthota faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and APD, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Former State Criminal Investigator Sentenced to over Three Years in Federal Prison for ExtortionRead the Press Release
Jackson, Miss. – Frank Saddler, 52, of Ridgeland, was sentenced today by U.S. District Judge Henry T. Wingate to serve 39 months in federal prison for extortion, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and Dax Roberson, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General - Southwest Regional Office. Judge Wingate also ordered Saddler to pay $28,374.64 in restitution to the victims and to serve three years of supervised release upon completion of his prison sentence.
Saddler was a certified law enforcement officer working for the Mississippi Department of Human Services charged with investigating criminal fraud related to the Supplemental Nutrition Assistance Program ("SNAP"), a program funded by the United States Department of Agriculture. From July 23, 2014 to June 15, 2015, Saddler extorted money from convenience store owners who had been charged with criminal violations relating to SNAP in exchange for not pursuing criminal charges against them. Saddler would tell store owners that they were paying restitution to the State of Mississippi when, in fact, they were making payments to Saddler which he deposited in his own bank account.
The case was investigated by the Office of the Inspector General for the U.S. Department of Agriculture and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
Former Medical Practice Employee Charged with Stealing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shannon Lambert, 33, of Canandaigua, NY, was arrested and charged by criminal complaint with obtaining controlled substances by fraud. The charge carries a maximum penalty of four years in prison and a fine of $250,000.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that according to the complaint, between January 2018 and February 2019, Lambert worked at Cornerstone Eye Associates in Rochester, NY. As part of her employment, the defendant had access to an electronic prescription program which doctors at Cornerstone used to write and submit prescriptions to pharmacies on behalf of their patients. Lambert fraudulently accessed the program by logging in as a doctor who worked at Cornerstone, and then used the program to issue prescriptions for Schedule II and III controlled substances to herself and others who were not Cornerstone patients. These substances included Vicodin, Hydrocodone, and Oxycodone. Investigators reviewed prescription records and identified 73 fraudulent prescriptions issued by the defendant, totaling approximately 5,048 prescription pills. All such prescriptions were issued without the knowledge or authorization of a doctor, and were issued by Lambert without a legitimate medical purpose.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson, and was released on conditions. Further proceedings in this case are scheduled before Judge Payson on May 10, 2019, at 9:00 a.m.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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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Former Colombian Police Officer Sentenced to More Than 12 Years for Attempted Cocaine SmugglingRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Santiago Silva-Ortiz (28, Colombia) to 12 years and 7 months in federal prison for conspiracy to possess with the intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.
Silva-Ortiz had pleaded guilty on January 14, 2019.
According to testimony and court documents, Silva-Ortiz served as a member of the Colombian National Police for two years and became involved with narco-traffickers. On October 10, 2018, Silva-Ortiz served as the load guard on a go-fast vessel that was interdicted south of the Dominican Republic by the United States Coast Guard. Silva-Ortiz and his conspirators were attempting to smuggle more than 1,190 kilograms of cocaine.
In March 2019, the captain of the go-fast vessel, Eulices De Jesus Barliza-Lopez, was sentenced to 11 years and 3 months in federal prison for his role in the offense.
This case was investigated by the Panama Express Strike Force (PANEX) - a federally approved Organized Crime Drug Enforcement Task Force (OCDETF) consisting of U.S. Immigration and Customs Enforcement, the Drug Enforcement Administration, United States Coast Guard, Internal Revenue Service, Federal Bureau of Investigation, Pinellas County Sheriff’s Office, and the Florida Department of Law Enforcement. Operation Panama Express currently targets South American-based drug trafficking organizations responsible for smuggling drugs to the United States and elsewhere for distribution. This case was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Feds Charge Eight in Owensboro Surge Targeting Community ViolenceRead the Press Release
OWENSBORO, Ky. – United States Attorney Russell M. Coleman announced in an Owensboro press conference that a federal grand jury has returned eight felony indictments against individuals charging multiple counts including firearms violations, and the possession and distribution of drugs.
The charges are part of an ongoing promise from the feds to be better partners outside of the Louisville region, and are in direct response to escalating violence in the Owensboro region. According to Owensboro Police Department statistics from January 1, 2018 through December 31, 2018, patrol officers responded to 126 shots fired calls.
“As a guy who spent his early years in Thruston out near Yellow Creek, , I know what a wonderful community this is; federal law enforcement is committed to being active partners in helping to protect it,” said U.S. Attorney Russell Coleman. “These indictments are a result of the feds teaming with the Owensboro Police Department and Sheriff Cain to better protect Daviess County families from narcotics trafficking and armed felons. More to come.”
U.S. Attorney Coleman was joined in the announcement by Owensboro Police Department Chief Arthur Ealum, and ATF ASAC L.C. Cheeks, Jr. These charges were developed through partnerships with multiple law enforcement agencies.
“ATF strives to be ‘no better partner’ to law enforcement agencies,” stated ATF Assistant Special Agent in Charge L.C. Cheeks Jr., of the Louisville Field Division. “During the past months, this partnership investigated illegal sources of crime guns and persons who illegally possessed or used guns to commit violent crimes in the Owensboro area. Together, we aggressively pursued ‘traffickers and trigger pullers,’ making use of crime gun intelligence to disrupt the shooting cycle. These efforts support the Department of Justice’s Project Safe Neighborhoods in making our communities safer for everyone.”
“The Owensboro Police Department is committed to reducing gun violence in our community,” said Owensboro Police Department Chief Arthur Ealum. “We are pleased to partner with the ATF and the office of United States Attorney Russell M. Coleman to help make our commitment a reality. The efforts here today should serve as a warning to all those who wish to prey on the vulnerable members of our community by trafficking in narcotics, unlawfully possessing a firearm or otherwise committing acts of violence in this community.
The Owensboro Police Department will work tirelessly with our local, state and federal partners to identify, charge and prosecute those offenders who commit serious offenses while in possession of firearms,” Ealum continued. “It is our hope that the seriousness and the certainty of punishment will serve as a deterrent to those who wish to engage in disruptive criminal behavior in this community.”
The eight defendants charged in this surge include:
- Joseph L. Howell, age 32, of Owensboro, Kentucky, who is charged in a three count indictment with possession with intent to distribute methamphetamine; use of/carrying a Taurus, model 709 Slim, 9 millimeter semiautomatic pistol during and in relation to a drug trafficking crime; and being a felon in possession of a firearm. Howell was previously convicted of first degree trafficking in methamphetamine in 2015, and convicted of manufacturing methamphetamine and tampering with physical evidence (two counts), each a felony in 2012.
- Larry Andrew Barnett, age 31, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Marlin, Model T95, .22LR semiautomatic rifle. Barnett was previously convicted of Wanton Endangerment in the first degree, a felony, in 2018.
- Jeremy L. Morrow, age 27, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Hi-Point, Model C9, 9 millimeter semiautomatic pistol. Morrow was previously convicted of Second-Degree Robbery, a felony, in 2011.
- Christen Shane Stewart, age 30, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Smith & Wesson, Model Bodyguard 380, .380 caliber semiautomatic pistol. Stewart was previously convicted of Second-Degree Robbery, a felony, in 2010.
- Seth Aaron Fenwick, age 28, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Rohm, model RG10, .22 caliber revolver, bearing an obliterated serial number. Fenwick was previously convicted of Third-Degree Burglary and Theft by Unlawful Taking/Automobile, felonies, in 2009.
- Jonathan Robert Miller, age 24, of Owensboro, Kentucky, is charged in a one count indictment of being a felon in possession of a firearm, a Kimber, model Micro 9, 9 millimeter semiautomatic pistol. Miller was previously convicted of First Degree Wanton Endangerment, a felony, in 2017.
- Carl Dikeith Warren, age 33, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, an Israeli Weapons Industries, Inc., model Baby Desert Eagle II, Compact Polymer 9 millimeter semiautomatic pistol bearing an obliterated serial number. Warren was previously convicted of Wanton Endangerment, First-Degree, a felony, in 2008.
- Jeremy V. Denson, age 27, of Owensboro, Kentucky, is charged in a one count indictment of being a felon in possession of a firearm, a Taurus, model PT111 Millennium, 9 millimeter semiautomatic pistol. Denson was previously convicted of trafficking marijuana, a felony, in 2016.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison.
These cases are being prosecuted by Assistant United States Attorneys Seth Hancock, Leigh Ann Dycus and Madison Sewell, and were investigated by the Owensboro Police Department, Daviess County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Today’s announced indictments are part of the Project Safe Neighborhoods Initiative in the Western District of Kentucky.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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- Joseph L. Howell, age 32, of Owensboro, Kentucky, who is charged in a three count indictment with possession with intent to distribute methamphetamine; use of/carrying a Taurus, model 709 Slim, 9 millimeter semiautomatic pistol during and in relation to a drug trafficking crime; and being a felon in possession of a firearm. Howell was previously convicted of first degree trafficking in methamphetamine in 2015, and convicted of manufacturing methamphetamine and tampering with physical evidence (two counts), each a felony in 2012.
Drug Trafficker Gets 14 Years Added to Sentence for Conspiring to Deal Drugs While in Custody on Drug Trafficking ChargesRead the Press Release
CINCINNATI – Manuel Brijido Burciaga, 36, was sentenced today to an additional 168 months in prison for conspiring to deal drugs while in custody on pending federal drug trafficking charges.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), the Northeast Hamilton County Drug Task Force (DART) and West Chester Police Chief Joel Herzog announced the sentence imposed today by U.S. District Judge Susan J. Dlott.
According to court documents, Burciaga was in custody in Butler County jail as he was being prosecuted for trafficking cocaine. He eventually received a 60-month sentence in April 2018 after pleading guilty to that charge.
In November 2016, Burciaga and his girlfriend, Yvette Estrella Rodriguez, 29, discussed the distribution of approximately 11 kilograms of methamphetamine. Burciaga arranged for her to connect with an outside contact to obtain the meth and distribute it in southern Ohio and elsewhere. Rodriguez met with an individual in January 2017 to make the deal. She and her mother, Socorro Rodriguez, 54, were arrested after she delivered five kilograms of meth.
“This case underscores the peril someone faces for continued drug trafficking activity while in custody,” U.S. Attorney Glassman said. “Although he was initially facing a five-year sentence, Burciaga will now be serving 19 years in federal custody due to his crimes.”
Yvette and Socorro Rodriguez have each pleaded guilty to conspiracy to distribute methamphetamine and are facing sentences of up to ten years.
Glassman commended the investigation by the federal, regional and local agencies, as well as Criminal Chief Kenneth L. Parker and Assistant U.S. Attorney Ebunoluwa Taiwo, who are representing the United States in the case.
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Des Moines Man Pleads Guilty to Defrauding United Way of Central Iowa and Embezzling from a Labor UnionRead the Press Release
Des Moines, IA—On April 15, 2019, Theodore Eric Watson, age 54, of Des Moines, Iowa, appeared before United States Magistrate Judge Celeste F. Bremer and entered guilty pleas to Mail Fraud and Embezzlement of Labor Union Assets.
Watson admitted from 2007 until September 2016, while employed as the Business Manager for Local 74 of the International Association of Heat and Frost Insulators and Allied Workers (AFL-CIO), he sent fraudulent requests for payment of grant funds for training adults to the United Way of Central Iowa. These fraudulent requests were unauthorized and unknown to Local 74. In one such circumstance, Watson obtained a check in the mail from United Way for $19,000 that Watson converted for his personal use.
Watson also admitted to embezzling from Local 74 by making unauthorized purchases and cash advances on a Local 74 credit card and then concealing the fraud by submitting altered credit card statements and false monthly reports to Local 74. Watson additionally opened a bank account in the name of Local 74, without Local 74’s consent or knowledge. From December 2013 through January 2016, Watson deposited Local 74 funds into this account, but used the money for his own purposes.
Watson faces up to 20 years imprisonment for mail fraud and up to five years imprisonment for embezzlement from the union. The Court will determine the restitution amount at sentencing. Sentencing is presently scheduled for August 23, 2019, at 10:30 a.m. before United States District Court Chief Judge John A. Jarvey at the Des Moines Federal Courthouse.
This matter was investigated by the United States Department of Labor–Management Standards. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
DeKalb Resident Indicted on Charges of Smuggling, Transporting and Harboring Illegal AliensRead the Press Release
ROCKFORD — A DeKalb resident, LUIS ALFREDO DELACRUZ, 49, was indicted today by a federal grand jury in Rockford on two counts of bringing aliens to the United States at a place other than a designated port of entry for commercial advantage or private financial gain, two counts of bringing aliens to the U.S. at a place other than a designated port of entry, two counts of transporting illegal aliens within the U.S. for commercial advantage or private financial gain, and eight counts of harboring illegal aliens for commercial advantage or private financial gain.
Delacruz will appear for arraignment on April 23, 2019, at 11:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The DeKalb Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
As alleged in the indictment, in November 2015 and April 2016, Delacruz brought to the United States two alien individuals who had not received prior official authorization to enter. Delacruz did not bring the individuals through immigration at a designated port of entry, the indictment states. It is further alleged that on June 1, 2018, Delacruz illegally harbored eight illegal aliens in buildings or other places through employment by Alfredo’s Iron Works in Cortland. Delacruz allegedly harbored these aliens for commercial advantage and his own financial gain.
Each count of bringing aliens to the United States at a place other than a designated port of entry for commercial advantage or private financial gain carries a mandatory minimum sentence of three years in prison and a maximum of ten years. Each count of bringing aliens to the U.S. at a place other than a designated port of entry carries a maximum sentence of five years in prison. Each count of transporting illegal aliens within the U.S. for commercial advantage or private financial gain and each count of harboring illegal aliens for commercial advantage or private financial gain carries a maximum sentence of ten years in prison. Each count in the indictment also carries a maximum fine of $250,000, and a period of supervised release following imprisonment of up to three years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Corona Lawyer Admits Illegal Possession of Unregistered WeaponsRead the Press Release
LOS ANGELES – A California attorney and ex-Rialto police officer pleaded guilty today to one felony count of illegally possessing multiple unregistered weapons, including a short-barreled rifle, two silencers, and a hand grenade.
Sergio Lopez de Tirado, 43, of Corona, pleaded guilty to possession of an unregistered firearm and destructive device.
United States District Judge Fernando M. Olguin scheduled a September 26 sentencing hearing, where Lopez de Tirado will face a statutory maximum sentence of 10 years in federal prison. Lopez de Tirado is currently in custody without bond.
According to court documents, law enforcement found Lopez de Tirado asleep and apparently intoxicated in the passenger’s seat of a pickup truck that was parked with its doors wide open and blocking a driveway in Norco. During their search of the truck on December 21, 2018, authorities found a short-barreled 9-millimeter rifle, two silencers, and a hand grenade in a holster under his arm. Other items, such as high-capacity magazines, ammunition, and brass knuckles, were also found in the truck.
According to court documents, the firearms in the vehicle – including the short-barreled rifle and an AR-type rifle with a silencer – were loaded when recovered by authorities.
Lopez de Tirado admitted in his plea agreement that he had not registered the rifle, the silencers or the hand grenade with the National Firearms Registration and Transfer Record.
This case was investigated by the FBI’s Inland Empire Joint Terrorism Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Riverside County Sheriff’s Department, the Rialto Police Department, the Corona Police Department, and the California Highway Patrol.
This case is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Terrorism and Export Crimes Section.
Clark County Man Sentenced for Possessing Carfentanil with Intent to DistributeRead the Press Release
DAYTON – Alandre J. Gilbreath, Jr., 34, of Springfield, was sentenced in U.S. District Court to 60 months in prison for possessing carfentanil with intent to distribute.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, Springfield Police Chief Lee Graf and Acting Clark County Prosecutor Daniel P. Driscoll announced the sentence handed down by U.S. District Judge Thomas M. Rose.
According to court documents, in May 2017, Springfield police officers responded to reports of an attempted residential break-in and encountered Gilbreath standing on the porch of the house. They saw Gilbreath remove a baggie from his pocket and throw it into the yard.
“Officers picked up the bag, and forensic analysis at the Bureau of Criminal Investigation determined it contained 16.28 grams of a mixture of fentanyl and carfentanil,” U.S. Attorney Glassman said. “This amount is a quantity intended for distribution.”
Gilbreath pleaded guilty in December 2018 to one count of possessing with the intent to distribute more than 10 grams of carfentanil.
According to the DEA, carfentanil is an analogue of fentanyl and is 10,000 times more potent than morphine. Carfentanil is used in veterinary practice to immobilize large animals.
“Powerful opioids, such as Carfentanil, will continue to be a serious threat to America and Ohio as long as drug dealers such as Gilbreath are willing to put themselves and the community at risk,” said Special Agent in Charge Plancon. “Gilbreath was in possession of enough carfentanil to kill approximately 700 people. This case is a testament to the relentless determination of law enforcement to make a significant impact on the opioid supply in Ohio and to keep our communities drug free.”
U.S. Attorney Glassman commended the cooperative investigation by the DEA and Springfield Police Department, as well as Assistant United States Attorney Amy M. Smith, and Assistant U.S. Attorney Ryan Saunders, formerly with the Southern District of Ohio, who represented the United States in this case.
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Chilton County Man to Serve to Life in Prison for Transporting Two Minors and Producing, Transporting, and Possessing Child PornographyRead the Press Release
BIRMINGHAM – Chilton County man sentenced today for transporting two minor girls for illegal sexual activity and producing, transporting, and possessing child pornography, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge Madeline H. Haikala sentenced BRUCE NICHOLSON, 56 to life in prison.
NICHOLSON was convicted on October 18, 2018, for production, transportation, and possession of child pornography and transporting two minors with the intent to engage in unlawful sexual activity with them. According to the sentencing memorandum, for many years Nicholson had sexually abused both girls and fled the state of Alabama with them in 2012. They were on the road for more than month and spent time in Florida, North Carolina, and New York, before law enforcement authorities found them in Kentucky.
“The sentence handed down today ensures that this man, who stole the innocence of two girls, and a large part of their childhoods, can no longer take advantage of them or any other vulnerable child,” Town said. “Nicholson gave no sanctuary to these innocent girls and now has been sent away to federal prison for life where there is no sanctuary of parole.”
“A long prison sentence is well deserved for the defendant in this case,” SAC Sharp said. “The FBI will continue to use their tools to identify those who commit these horrendous acts, and will seek justice on behalf of their victims.”
FBI investigated the case, which Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted.
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Child Sexual Predator Sentenced to 27 Years in PrisonRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 27 years in prison for producing images of child sexual abuse of an 8 year-old victim.
“We must do everything possible to protect our children from dangerous sexual predators like Brown,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Child sexual abuse is a horrific and abhorrent crime. I want to thank our law enforcement partners and prosecutors for ensuring that Brown will now be in a place where he cannot prey on our most vulnerable victims.”
According to court documents and evidence, Leedente Darrell Brown, 32, met dozens of young girls, including an 8-year-old, in real life and online, and had them produce child pornography for him and other horrible sex offenders who were in group chat rooms with Brown. He was identified after a Virginia Beach Police Department officer responded to a Peeping Tom call. Investigators later learned that Brown was attempting to meet the 8-year-old girl to engage in sexual acts. The 8-year-old victim reported that Brown told her not to tell anyone, and if she did, he would kill her.
“Adults that prey on innocent children are despicable,” said Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk. “Brown’s victims will have to cope with the longstanding effects of his abuse for years to come. HSI special agents and our law enforcement partners will continue to investigate sexual predators like Brown to ensure they are prosecuted to the fullest extent of the law.”
Brown has a significant criminal history which includes violence. In 2005, he was convicted of Assault and Battery of an 11 year-old. He was also convicted in March 2013 for Assault and Battery for cutting someone inside the MacArthur mall.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of HSI Norfolk, and James A. Cervera, Chief of Virginia Beach Police made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-42.
Charter School Victims to Receive More Than a Half-Million in RestitutionRead the Press Release
HOUSTON – More than 4,000 parents who had entrusted their children to administrators at the Varnett Charter School are set to receive payments totaling more than $600,000, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI, Special Agent in Charge Neil Sanchez from the Department of Education – Office of Inspector General (ED-OIG) and Acting Special Agent in Charge Sarah Kull of IRS – Criminal Investigation (CI).
Marian Annette Cluff, 70, was the founding superintendent of The Varnett Public School, a charter school with three locations in Houston, while her husband - Alsie Cluff Jr., 69, was the facilities and operations manager. They pleaded guilty Aug. 25, 2017, to mail fraud and conspiracy to commit tax evasion charges for embezzling millions of dollars from the school.
In June 2018, U.S. District Judge Melinda Harmon sentenced Marian Cluff to 120 months imprisonment and to pay a $295,596 fine, while her husband was ordered to serve a 36-month term of imprisonment and pay a $88,678 fine. More importantly, however, was that both were also ordered to pay a total of $4,443,755.69 in restitution.
In less than a year following the sentencing hearing, the Financial Litigation Unit (FLU) of the U.S. Attorney’s Office – with the substantial assistance of the U.S. Marshal Service (USMS) – collected the total restitution ordered in the case.
In an amended order issued in March 2019, U.S. District Judge Andrew S. Hanen ordered that $604,889.76 of that amount be distributed to the identified victim parents of the school. The U.S. District Clerk’s Office has indicated that restitution payments to the parents will be handled on an expedited basis.
At the time of the sentencing, the court heard that the couple embezzled millions of dollars in funds that were intended for the operation and function of the charter school and its programs. These included “money orders” parents had submitted to pay for school field trips and student fundraisers, such as chocolate sales, book fairs, school carnivals and other school-related activities.
The Cluffs used their positions of trust and authority and diverted and concealed money received from vendors of the school, insurance companies and federal agencies into the off-book accounts for the purpose of diverting money intended for the charter school for their own personal use and benefit. The Cluffs concealed the accounts from the charter school office manager, the school’s external accountant and their income tax preparer.
Testimony at sentencing also revealed the Cluffs conspired to commit tax evasion of approximately $1,827,477.55 in tax, interest and penalties owed to the IRS. The Cluffs did not pay income taxes on the money they received as a result of the scheme.
The Cluffs were ordered to surrender to the U.S. Bureau of Prisons in August 2018 and are currently serving their sentences.
Today’s announcement comes as National Crime Victim Rights Week (NCVRW) draws to a close. Every April, the Office for Victims of Crime leads communities throughout the country in their annual observances of NCVRW. This year’s theme - Honoring Our Past. Creating Hope for the Future - celebrated the progress made by those before us as we look to a future of crime victim services that is even more inclusive, accessible and trauma-informed.
The Department of Justice’s Mega Victim Case Assistance Program (MCAP) has also conducted research in this case to identify the current addresses for parents of former students. If your child attended the Varnett Public School between 2007–2014 and you have not received any correspondence from the U.S. Attorney’s Office, please contact the Victim Witness Unit at 713-567-9445.
The FBI, IRS-CI and Ed-OIG conducted the investigation. ED-OIG, USMS, FLU, U.S. District Clerk’s Office and MCAP worked collectively to assist in the restitution matter.
Assistant U.S. Attorney Quincy L. Ollison prosecuted the criminal case.
CVS to Pay $535,000 for Filling Invalid PrescriptionsRead the Press Release
PROVIDENCE, R.I. - Pharmacy chain CVS Pharmacy, Inc. has agreed to pay $535,000 to resolve the United States’ allegations that several of its Rhode Island stores violated the federal Controlled Substances Act by filling invalid prescriptions, announced United States Attorney Aaron L. Weisman and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
The settlement caps an investigation by the United States Attorney’s Office for the District of Rhode Island and the DEA Office of Diversion Control of CVS’ conduct at several of its Rhode Island retail pharmacy locations in filling prescriptions for controlled substances with a high potential for abuse. Under the Controlled Substances Act and its implementing regulations, substances such as painkillers and opioids can only be prescribed for legitimate medical purposes by a physician. The law, however, also places a “corresponding responsibility” on the pharmacist filling the prescription to ensure that the prescription is valid and legal.
In this case, the United States alleged that CVS retail pharmacies in Rhode Island filled thirty-nine prescriptions for Percocet, a Schedule II narcotic, that CVS pharmacists had reason to know were forged.
Under the terms of this civil resolution, CVS will pay a civil penalty of $535,000 for its alleged conduct in the State of Rhode Island. CVS, while acknowledging that its pharmacists bear a corresponding responsibility under the Controlled Substances Act, has denied wrongdoing in this case.
United States Attorney Aaron L. Weisman commented, “This settlement demonstrates that the Department of Justice remains committed to using all the legal tools at its disposal to ensure that everyone in the chain of controlled substance distribution -- from physicians to pharmacists -- abides by the strict requirements of the law.”
“DEA registrants like CVS have a corresponding responsibility to dispense controlled substances in accordance with the Controlled Substance Act,” said DEA Special Agent in Charge Brian D. Boyle. “Pharmacies put patients at risk when they dispense Schedule II narcotics, which have the highest potential for abuse, without a valid and legal prescription. Today’s settlement demonstrates DEA’s commitment to work with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
This matter was litigated by Assistant U.S. Attorney Richard Myrus.
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Bridgeport Man Sentenced to Federal Prison for Trafficking Homemade Machine GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GEORGE JAIMAN, 70, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 14 months of imprisonment, followed by three years of supervised release, for trafficking machine guns. Judge Thompson also ordered Jaiman to pay a $1,000 fine and perform 100 hours of community service while he is on supervised release.
According to court documents and statements made in court, between July 2017 and April 2018, Jaiman’s coworker, Sean Dey, manufactured machine guns, including AK-47-style and AR-style machine guns, suppressors, and other firearms, in a basement workshop at Dey’s Torrington residence. Dey entered into an agreement with Jaiman to sell machine guns, suppressors and firearms to others for profit. Neither Dey nor Jaiman possessed a valid license to deal firearms.
The investigation also revealed that Jaiman’s son, Phillip Jaiman, sold some of Dey’s machine guns that he received from George Jaiman to individuals, including convicted felons, in the Bridgeport area.
George Jaiman was arrested on June 4, 2018. On October 26, he pleaded guilty to one count of unlawful possession of a machine gun.
Judge Thompson ordered Jaiman to report to prison on May 22.
On October 25, 2018, Dey pleaded guilty to one count of conspiracy to engage unlawfully in the business of selling firearms, and one count of unlawful possession and transfer of a machine gun. On February 13, 2019, he was sentenced to 24 months of imprisonment, followed by 12 months of home confinement and three years of supervised release, and 100 hours of community service.
On April 9, 2019, Phillip Jaiman pleaded guilty to one count of unlawful possession and transfer of a machine gun. He awaits sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Beaver Falls Man Indicted on Unlawful Possession of Firearms and Drug ChargesRead the Press Release
PITTSBURGH, PA - A resident of Beaver Falls, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Eliezer Rodriguez, 40, as the sole defendant.
According to the Indictment, Rodriguez was in possession of firearms while having been previously convicted of felonies; was in possession of a weapon in furtherance of a drug trafficking offense; and possessed with intent to distribute a quantity of a mixture of heroin, and N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, commonly known as fentanyl.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Beaver Falls Police Department and the Pennsylvania Office of Attorney General conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Atlantic City, New Jersey, Man Admits Insurance Fraud, Drug DistributionRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man today admitted to staging a fake robbery of a Union County, New Jersey, pawnshop for the purpose of perpetrating an insurance fraud and to distributing illegal drugs, U.S. Attorney Craig Carpenito announced.
Salvatore “Sam” Piccolo, 67, of Atlantic City, a member of the Philadelphia La Cosa Nostra organized crime family, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with distribution 216 grams of methamphetamine and one count of wire fraud.
According to documents filed in this case and statements made in court:
Piccolo admitted that on April 19, 2014, he and an accomplice entered a pawnshop in Union County, purportedly to sell some silver items. Once inside the shop, the accomplice displayed a hand gun while Piccolo, wearing a nylon mask, chained the front doors closed to prevent anyone from entering. The owner was bound, as a pretense, while Piccolo and his accomplice looted the safe of what the owner told police was approximately $60,000 in cash, several pieces of jewelry, and a hand gun. The owner later submitted to his insurance company a fraudulent loss claim that was paid for approximately $174,000.
Piccolo also admitted making three sales of methamphetamine totaling 216 grams of the drug to an undercover FBI agent. Subsequent laboratory analysis determined the methamphetamine to be 99 percent pure.
The distribution of methamphetamine charge carries a minimum of 10 years in prison and a maximum penalty of life in prison; the wire fraud charge carries a maximum penalty of 10 years in prison. Both counts are also punishable by a fine of $250,000. Sentencing is scheduled for July 18, 2019.
U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Criminal Division, Camden Office, and Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney=s Office Organized Crime/Gangs Unit in Newark.
Apollo Man Pleads Guilty to Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA- A resident of Apollo, Pennsylvania, pleaded guilty in federal court to a charge of theft of government money, United States Attorney Scott W. Brady announced today.
Danny Ray Alexander, 36, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the Court was advised that between November 29, 2013 and December 30, 2016, Alexander, and his wife and codefendant, Tara Jo Frain, who pleaded guilty earlier this month, knowingly received $25,164 in Supplemental Security Income benefits to which they knew they were not entitled. In addition to the theft, Alexander took responsibility for making false statements to the Social Security Administration regarding his marital status, which impacted his eligibility to receive SSI disability payments, which was charged in a separate count of the Indictment. Specifically, the Court was informed, that in May of 2012, Frain and Alexander were married but Alexander did not inform the SSA of the change in his marital status and, in September of 2016, Alexander falsely claimed on a SSA form that he was not married.
Judge Ambrose scheduled sentencing for August 5, 2019, at 10:30 a.m. The law provides for a total sentence of 10 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 offense and the prior criminal history, if any, of the defendant. Alexander remains on bond pending sentencing.
Assistant United States Attorney Rebecca L. Silinski and Adam N. Hallowell are prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Alexander.
Alexandria man pleads guilty to being a felon in possession of a stolen pistolRead the Press Release
ALEXANDNRIA, La. – United States Attorney David C. Joseph announced today that Freddie Lewis, 28, of Alexandria, pleaded guilty before U.S. District Judge Dee D. Drell for possession of a firearm by a convicted felon.
On December 12, 2017, a Louisiana State Trooper stopped Freddie Lewis in Alexandria and found that he was in possession of a loaded Glock 22, .40-caliber pistol that had been reported stolen. Lewis is prohibited from possessing a firearm because of previous felony convictions that include possession of cocaine (2010), aggravated flight from an officer and simple burglary of a religious building (2013), obscenity (2015), and attempted possession of a firearm by a convicted felon (2017). Under federal law, felons are not allowed to possess a firearm or ammunition.
Lewis faces up to 10 years in prison, three years of supervised release and a $250,000 fine. Drell set the sentencing date for July 19, 2019.
The ATF and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
16 Individuals Charged or Arrested for Drug Trafficking Crimes as Part of Joint Law Enforcement EffortRead the Press Release
On April 16, 2019, the United States Attorney for the District of Vermont announced a multi-agency, multi-jurisdictional law enforcement effort that focused on drug trafficking in the area of Brattleboro, Vermont. During the three-day operation conducted last week by federal, state, local, and county officers, and federal and state prosecutors, law enforcement arrested or charged 16 individuals, searched 3 residences and 1 hotel room, and seized approximately 1,000 bags of heroin and 70 grams of cocaine base. Twelve individuals have been charged in federal court with participating in drug trafficking crimes. Two have been charged in state court with drug possession crimes.
Those charged in federal court include:
- Curtis Bunkley, 29, of Brattleboro, charged with distribution of cocaine base, distribution of fentanyl, and possession with intent to distribute heroin.
- Sarah Cassell, 32, of Brattleboro, charged with distribution of heroin and cocaine base.
- Arthur Fisk, 28, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
- Daniel DeThomas, 37, of Hartford, Connecticut, charged with distribution of cocaine base.
- Luis Duprey, 24, of Holyoke, Massachusetts, charged with using a communication facility to facilitate the commission of a drug felony arising from his attempt to distribute 500 bags of heroin.
- Rachael Gauthier, 49, of Brattleboro, charged with distribution of heroin and fentanyl.
- Rory Jackson, 35, of Queens, New York, charged with possession with intent to distribute heroin and cocaine base.
- Holly Magnuson, 25, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
- Robert Newton, 49, of Brattleboro, charged with distribution of heroin.
- Jocelyn Pond, 29, of Brattleboro, charged with distribution of fentanyl.
- Justine Pond, 29, of Brattleboro, charged with distribution of fentanyl.
- Jaylen Pryor, 18, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
Those charged in state court include:
- Corey Archer, 38, of Brattleboro, Vermont, charged with cocaine possession.
- Lee Griffin, 36, of Brattleboro, Vermont, charged with cocaine possession.
Defendants Cassell and Newton are currently fugitives. All other defendants were arrested during the operation.
The charges against the defendants are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation stemmed from careful planning and collaboration by Vermont law enforcement at all levels. The enforcement surge involved the participation of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Department of Homeland Security - Homeland Security Investigations; the Drug Enforcement Administration; the Federal Bureau of Investigation; the United States Marshals Service; the Brattleboro Police Department; the Vermont Drug Task Force; the Vermont State Police; CBP Air/Marine Unit; and New Hampshire Drug Task Force. Crucial support was provided by the Office of the Windham County State’s Attorney; the Vermont Attorney General’s Office; and the Office of the United States Attorney for the District of Massachusetts.
United States Attorney Christina E. Nolan stated: “Vermont lost 110 lives to drug overdose death last year, and the County with the most of those deaths was Windham County. This is an unacceptable tragedy. There is suffering from the drug crisis in every corner of Vermont, not least of all Brattleboro, in light of its geographic proximity to dealers based in the Springfield, Massachusetts area. This coordinated operation exemplifies the teamwork of Vermont law enforcement and our collective determination to deter and bring consequences to local and out-of-state dealers who ravage our communities. We will continue to surge federal, state, local, and county enforcement resources across the state to bring justice to those who profit from death and immense suffering. I commend this outstanding collaborative effort involving so many agencies and prosecutors’ offices.”
“Fentanyl and heroin abuse are at epidemic levels in Vermont and across the North East,” said DEA Special Agent in Charge Brian D. Boyle. “DEA is committed to aggressively pursuing Drug Trafficking Organizations or individuals who are coming from out of state to distribute these poisons, in order to profit and destroy people’s lives. This investigation demonstrates the strength of collaborative local, county, state and federal law enforcement efforts in Vermont and our strong partnership with the U.S. Attorney’s Office.”
“Operations like this demonstrate the critically important results that can be achieved through close coordination among state, local and federal law enforcement in Vermont,” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Boston. "Homeland Security Investigations is committed to maintaining our strong working relationship with our state, local and federal law enforcement colleagues in addressing the threats to public safety in the state of Vermont.”
“The operation was a large scale event with significant results directly connected to the strong partnerships that exist among our local, state and federal law enforcement agencies. As made evident by this event, the criminal element has no boundaries. This operation is a testament to our commitment to pursue and disrupt illegal activity in innovative and effective ways throughout Vermont,” stated U.S. Marshal Bradley J. LaRose.
“Effective coordination between federal, state, and local agencies is essential for us to identify and disrupt drug trafficking organizations,” said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “Together, our agencies prevented 70 grams of crack cocaine and nearly 1,000 bags of heroin from being sold on our streets. The FBI, along with our law enforcement partners, is committed to investigating and bringing justice to the individuals arrested in this operation. Anyone who harms our communities with their drug dealing should know we're coming for you.”
“The success of this initiative is a testament to the hard work and dedication of all the law enforcement professionals in the region working in a truly collaborative fashion," said Kelly D. Brady, Special Agent-in-Charge of ATF’s Boston Field Division. "We could not ask for a better group of professionals to work with toward the shared goal of reducing violent crime in the City of Brattleboro and throughout Vermont."
“Resources from federal and state agencies combined with local law enforcement’s knowledge of the activities and needs of their community make a formidable team when conducting drug interdiction operations,” stated Brattleboro Police Chief Michael Fitzgerald. “Integrating multiple agencies in the execution of an operation requires extensive planning, coordination and cooperation. For us to be successful, we need to work together and take advantage of each other’s unique set of skills. This cooperation proved invaluable to the overall success of the most recent operation in Brattleboro. I would like to thank all the agencies which participated in the recent drug interdiction operation in Brattleboro. I would especially like to thank U.S. Attorney Christina Nolan and the members of her team who worked tirelessly over the past several months in coordinating this effort.”
Vermont Public Safety Commissioner Thomas D. Anderson stated: “Vermont has done a tremendous job in making opioid treatment available to anyone who wishes to get treatment. Unfortunately, as these arrests demonstrate, there continues to be a demand for illegal opioids throughout Vermont. One of the most important tactics in fighting Vermont’s opioid epidemic is reducing the supply of this deadly poison by taking dealers off our streets and holding them accountable. This month in Brattleboro, which has one of the highest rates of overdose deaths in the state, the Vermont Drug Task Force worked in close collaboration with local and federal law-enforcement partners to make numerous arrests that targeted the trafficking and sale of these illegal drugs. Our message must be clear: Stop selling, get into treatment, or get arrested. Our efforts to reduce the supply of drugs and the risk of overdose, and to bring offenders to justice, will continue.”
The Vermont Assistant U.S. Attorneys assisting in the operation and subsequent prosecutions are AUSAs John Boscia; Nate Burris; First Assistant U.S. Attorney Kevin Doyle; and Deputy Criminal Chief Jonathan Ophardt. Defendant Bunkley is represented by Chris Davis, Esq. Defendant Duprey is represented by the Office of the Federal Public Defender. Defendant Arthur Fisk is represented by Maryanne E. Kampmann, Esq. Defendant Gauthier is represented by David Watts, Esq. Defendant Jackson is represented by Richard Bothfeld, Esq. Defendant Magnuson is represented by Mary Kehoe, Esq. Defendant Justine Pond is represented by Thomas Sherrer, Esq. Defendant Jocelyn Pond is represented by Katina Ready, Esq. Defendant Jaylen Pryor is represented by the Office of the Federal Public Defender.
15 April 2019
Wisconsin Man Convicted of Sex Trafficking ChargesRead the Press Release
MADISON, WIS. – After a five-day trial, a federal jury in Madison, Wisconsin, found Erin F. Graham, Jr., 37, of Madison, guilty on Friday, April 12, of seven counts of sex trafficking. The verdict was announced by U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
Evidence presented at trial established that between 2015 and 2017, Graham engaged in sex trafficking by force, coercion and fraud, and transported individuals across state lines with the intent that they engage in prostitution. Graham posted advertisements on Backpage.com and forced or coerced individuals to commit commercial sex acts with those who responded to the advertisements. In addition, Graham transported two individuals between Wisconsin and Virginia with the intent that they engage in prostitution.
The scheme was uncovered in April 2017 when law enforcement officials encountered one of the victims at a Madison hotel when an employee called 911 after the victim ran from her room bleeding and hid behind the front desk. The victim told a nurse at a Madison hospital that she had been strangled to the point of unconsciousness by Graham when she told him she wanted to leave.
The victims testified that they were forced to engage in multiple acts of prostitution and turn over money they earned to Graham and his girlfriend, Patience Moore, 28, of Madison. The victims testified that they were the only source of income for Graham and Moore. Moore pleaded guilty for her role in this sex trafficking scheme on March 14.
“Through violence and coercion, Graham exploited vulnerable young women into committing commercial sex acts for his profit. In the process the victims were often degraded and robbed of their human dignity,” said U.S. Attorney Blader. “We will continue to work closely with our law enforcement partners to bring human traffickers to justice.”
Traffickers use various techniques, including fraud, coercion and drugs – often opioids – to lure their victims and force them into commercial sexual or labor exploitation. The trauma caused by the traffickers can be so great that many may not identify themselves as victims or ask for help. The prosecution of sex traffickers is a priority for the Justice Department and all U.S. Attorneys’ Offices. Federal law provides severe penalties for these offenders. Since 2017, three sex traffickers convicted in the Western District of Wisconsin have received sentences totaling 58 years.
U.S. District Judge James Peterson scheduled Graham’s sentencing for July 1. Graham faces a mandatory minimum penalty of 15 years and a maximum of life in federal prison. Moore will be sentenced on June 5, and also faces a maximum of life.
The charges against Graham and Moore are the result of an investigation by the Dane County Sheriff’s Office, the Wisconsin Department of Justice Division of Criminal Investigation, with the assistance of the Madison, Grand Chute, Wisconsin State Capitol and Hampton (Virginia) Police Departments. The prosecution of the case is being handled by Assistant U.S. Attorneys Julie Pfluger and Kevin Burke.
UniCredit Bank AG Agrees to Plead Guilty for Illegally Processing Transactions in Violation of Iranian SanctionsRead the Press Release
UniCredit Bank AG (UCB AG), a financial institution headquartered in Munich, operating under the name HypoVereinsbank, and part of the UniCredit Group has agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States by processing hundreds of millions of dollars of transactions through the U.S. financial system on behalf of an entity designated as a weapons of mass destruction proliferator and other Iranian entities subject to U.S. economic sanctions. UniCredit Bank Austria (BA), another financial institution in the UniCredit Group, headquartered in Vienna, Austria, agreed to forfeit $20 million and entered into a non-prosecution agreement to resolve an investigation into its violations of IEEPA. UniCredit SpA, the parent of both UCB AG and BA, has agreed to ensure that UCB AG and BA’s obligations are fulfilled.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeny of the FBI’s New York Field Office and Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigations (CI) Washington Field Division made the announcement.
According to court documents, over the course of almost 10 years, UCB AG knowingly and willfully moved at least $393 million through the U.S. financial system on behalf of sanctioned entities, most of which was for an entity the U.S. Government specifically prohibited from accessing the U.S. financial system. UCB AG engaged in this criminal conduct through a scheme, formalized in its own bank polices and designed to conceal from U.S. regulators and banks the involvement of sanctioned entities in certain transactions. UCB AG routed illegal payments through U.S. financial institutions for the benefit of the sanctioned entities in ways that concealed the involvement of the sanctioned entities, including through the use of companies that UCB AG knew would appear unconnected to the sanctioned entity despite being controlled by the sanctioned entity.
“When the United States sanctioned Iranian entities for proliferating weapons of mass destruction, UCB AG went to great lengths to help one such entity – Islamic Republic of Iran Shipping Lines – evade sanctions to gain access to the U.S. financial system,” said Assistant Attorney General Benczkowski. “The integrity of our financial system requires financial institutions to comply with our laws, and UCB AG willfully failed to do so. Today’s guilty plea and $1.3 billion penalty are just punishments for undermining U.S. sanctions and putting our financial system at risk.”
“UCB AG’s actions in deliberately providing a designated weapons-of-mass-destruction proliferator with access to the U.S. financial system for almost two years after such access was prohibited by U.S. law were particularly egregious,” said U.S. Attorney Liu. “The bank’s impending guilty plea and the accompanying monetary penalty announced today send a clear message that financial institutions that subvert U.S. sanctions, and therefore our national security, should expect severe consequences.”
"This case is a prime example of how some institutions erroneously believe they can game the U.S. financial system and conceal their nefarious activity,” said Assistant Director in Charge Sweeney. "The FBI will root out and aggressively investigate institutions, like UCB AG, that conspire to violate U.S. sanctions on behalf of prohibited entities."
“The financial penalty announced today should dissuade other financial institutions around the world from scheming and circumventing U.S. sanctions by moving money around using various institutions and companies,” said Special Agent in Charge Jackson. “Following the money is what we do—so too is holding those accountable who try to avoid following the law.”
UCB AG will waive indictment and be charged in a one-count felony criminal information, according to documents to be filed in federal court in the District of Columbia, charging UCB AG with knowingly and willfully conspiring to commit violations of IEEPA and to defraud the United States, from 2002 through 2011. UCB AG has agreed to plead guilty to the information, has entered into a written plea agreement and has accepted responsibility for its criminal conduct. UCB AG will enter its guilty plea before a judge in the District of Columbia. UniCredit Group banks will pay total financial penalties of approximately $1.3 billion. The plea agreement, subject to approval by the court, provides that UCB AG will forfeit $316,545,816 and pay a fine of $468,350,000.
According to admissions in the non-prosecution agreement and accompanying statement of facts, between 2002 and 2012, BA used non-transparent methods to send payments related to sanctioned jurisdictions such as Iran through the United States. BA conspired to violate IEEPA and defraud the United States by processing transactions worth at least $20 million through the United States on behalf of customers located or doing business in Iran and other countries subject to U.S. economic sanctions or customers otherwise subject to U.S. economic sanctions. As a result of its crimes, BA will forfeit $20 million and has agreed to additional compliance and sanctions enhancements.
In addition, UCB AG has entered into a plea agreement with the New York County District Attorney’s Office (DANY) for violating New York State law pursuant to which it will pay $316,545,816. BA has also entered into a non-prosecution agreement with DANY for violating New York State law. DANY conducted its own investigation alongside the Justice Department.
UniCredit SpA, UCB AG and BA have also entered into various settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve) and the New York State Department of Financial Services (DFS) under which they will pay additional penalties of approximately $660 million as follows: $611,023,421 to OFAC, which will be satisfied in part by payments to the Justice Department and the Federal Reserve, $157,770,000 to the Federal Reserve and $405 million to DFS.
The case was prosecuted by Senior Trial Attorney Margaret A. Moeser of the Bank Integrity Unit in the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Michelle Zamarin of the District of Columbia. The case was investigated by the FBI and the IRS-CI.
The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Department of Justice expressed its gratitude to DANY, OFAC, the Federal Reserve, DFS and the Justice Department’s Office of International Affairs.
UniCredit Bank AG Agrees to Plead Guilty for Illegally Processing Transactions in Violation of Iranian SanctionsRead the Press Release
WASHINGTON - UniCredit Bank AG (UCB AG), a financial institution headquartered in Munich, operating under the name HypoVereinsbank, and part of the UniCredit Group has agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States by processing hundreds of millions of dollars of transactions through the U.S. financial system on behalf of an entity designated as a weapons of mass destruction proliferator and other Iranian entities subject to U.S. economic sanctions. UniCredit Bank Austria (BA), another financial institution in the UniCredit Group, headquartered in Vienna, Austria, agreed to forfeit $20 million and entered into a non-prosecution agreement to resolve an investigation into its violations of IEEPA. UniCredit SpA, the parent of both UCB AG and BA, has agreed to ensure that UCB AG and BA’s obligations are fulfilled.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeny of the FBI’s New York Field Office and Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigations (CI) Washington Field Division made the announcement.
According to court documents, over the course of almost 10 years, UCB AG knowingly and willfully moved at least $393 million through the U.S. financial system on behalf of sanctioned entities, most of which for an entity the U.S. Government specifically prohibited from accessing the U.S. financial system. UCB AG engaged in this criminal conduct through a scheme, formalized in its own bank polices and designed to conceal from U.S. regulators and banks the involvement of sanctioned entities in certain transactions. UCB AG routed illegal payments through U.S. financial institutions for the benefit of the sanctioned entities in ways that concealed the involvement of the sanctioned entities, including through the use of companies that UCB AG knew would appear unconnected to the sanctioned entity despite being controlled by the sanctioned entity.
“When the United States sanctioned Iranian entities for proliferating weapons of mass destruction, UCB AG went to great lengths to help one such entity – Islamic Republic of Iran Shipping Lines – evade sanctions to gain access to the U.S. financial system,” said Assistant Attorney General Benczkowski. “The integrity of our financial system requires financial institutions to comply with our laws, and UCB AG willfully failed to do so. Today’s guilty plea and $1.3 billion penalty are just punishments for undermining U.S. sanctions and putting our financial system at risk.”
“UCB AG’s actions in deliberately providing a designated weapons-of-mass-destruction proliferator with access to the U.S. financial system for almost two years after such access was prohibited by U.S. law were particularly egregious,” said U.S. Attorney Liu. “The bank’s impending guilty plea and the accompanying monetary penalty announced today send a clear message that financial institutions that subvert U.S. sanctions, and therefore our national security, should expect severe consequences.”
"This case is a prime example of how some institutions erroneously believe they can game the U.S. financial system and conceal their nefarious activity,” said Assistant Director in Charge Sweeney. "The FBI will root out and aggressively investigate institutions, like UCB AG, that conspire to violate U.S. sanctions on behalf of prohibited entities."
“The financial penalty announced today should dissuade other financial institutions around the world from scheming and circumventing U.S. sanctions by moving money around using various institutions and companies,” said Special Agent in Charge Jackson. “Following the money is what we do—so too is holding those accountable who try to avoid following the law.”
UCB AG will waive indictment and be charged in a one-count felony criminal information, according to documents to be filed in federal court in the District of Columbia, charging UCB AG with knowingly and willfully conspiring to commit violations of IEEPA and to defraud the United States, from 2002 through 2011. UCB AG has agreed to plead guilty to the information, has entered into a written plea agreement and has accepted responsibility for its criminal conduct. UCB AG will enter its guilty plea before a judge in the District of Columbia. UniCredit Group banks will pay total financial penalties of approximately $1.3 billion. The plea agreement, subject to approval by the court, provides that UCB AG will forfeit $316,545,816 and pay a fine of $468,350,000.
According to admissions in the non-prosecution agreement and accompanying statement of facts, between 2002 and 2012, BA used non-transparent methods to send payments related to sanctioned jurisdictions such as Iran through the United States. BA conspired to violate IEEPA and defraud the United States by processing transactions worth at least $20 million through the United States on behalf of customers located or doing business in Iran and other countries subject to U.S. economic sanctions or customers otherwise subject to U.S. economic sanctions. As a result of its crimes, BA will forfeit $20 million and has agreed to additional compliance and sanctions enhancements.
In addition, UCB AG has entered into a plea agreement with the New York County District Attorney’s Office (DANY) for violating New York State law pursuant to which it will pay $316,545,816. BA has also entered into a non-prosecution agreement with DANY for violating New York State law. DANY conducted its own investigation alongside the Justice Department.
UniCredit SpA, UCB AG and BA have also entered into various settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve) and the New York State Department of Financial Services (DFS) under which they will pay additional penalties of approximately $660 million as follows: $611,023,421 to OFAC, which will be satisfied in part by payments to the Justice Department and the Federal Reserve, $157,770,000 to the Federal Reserve and $405 million to DFS.
The case was prosecuted by Senior Trial Attorney Margaret A. Moeser of the Bank Integrity Unit in the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Michelle Zamarin of the District of Columbia. The case was investigated by the FBI and the IRS-CI.
The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Department of Justice expressed its gratitude to DANY, OFAC, the Federal Reserve, DFS and the Justice Department’s Office of International Affairs.
U.S. Attorney’s Office to Commemorate National Crime Victims’ Rights WeekRead the Press Release
FARGO – U.S. Attorney Christopher C. Myers announced today that on Thursday, April 18, 2019, the U.S. Attorney’s Office for the District of North Dakota will host a National Crime Victims’ Rights Week Awards Ceremony to raise awareness about crime victims’ rights and to recognize individuals in the state who provide outstanding services to crime victims. The awards ceremony will take place at the Quentin N. Burdick United States Courthouse, Jury Assembly Room, 655 First Avenue North, Fargo, ND at 10:30 a.m.
The Office for Victims of Crime (OVC) of the U.S Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week, April 7-13, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme –Honoring Our Past. Creating Hope for the Future. – celebrates the progress made by those before us as we look to a future of crime victim services that is even more inclusive, accessible, and trauma-informed.
Members of the media will be permitted to bring appropriate still photo, video, and audio equipment to the Jury Assembly Room for purposes of covering this event. The public is invited to attend
U.S. Attorney Kicks Off Elder Fraud Prevention and Response Network ConveningRead the Press Release
U.S. Attorney Christina Nolan served as the keynote speaker for the Consumer Financial Protection Bureau’s Elder Fraud Prevention and Response Network Convening in Burlington, Vermont. Speaking last week to an audience comprised of Federal, State, Local and Private Sector stakeholders, U.S. Attorney Nolan emphasized the commitment of her office to protecting the elderly from any kind of abuse, financial or physical.
U.S. Attorney Nolan stated, “Society should be judged by how it protects its most innocent and vulnerable members. Elder abuse is a despicable crime that is already far too common. Protecting the elderly is a deeply rooted American ideal. As a country, we give the elderly special social and medical protections, as we should. The elderly should likewise receive special focus from our investigative and prosecutorial bodies. The Department of Justice will not stand for elder abuse or elder financial exploitation. At a nationwide level, we are doing more than ever to warn communities about ongoing scams, and to investigate and prosecute those who seek to exploit our seniors. And we are doing more in Vermont.”
The Convening was part of a nationwide effort by the Consumer Financial Protection Bureau’s Office of Older Americans to create or bolster local Elder Fraud Prevention and Response Networks. Convening participants engaged in a group exercise to brainstorm the successes and challenges of addressing Elder Financial Exploitation in Vermont. The Convening also included presentations from Assistant U.S. Attorney Andrew Gilman, Elder Justice Coordinator for the District of Vermont U.S. Attorney’s Office, Vermont Assistant Attorneys General Jamie Renner and John Waszak of the Vermont Attorney General’s Office Elder Protection Initiative, and Captain Frank Koss, President of the Vermont Chiefs of Police Association.
U.S. Attorney Nolan expressed her thanks to all who attended and helped organize the convening, including the Consumer Financial Protection Bureau’s Office of Older Americans, the Financial Abuse Specialist Team of Vermont, the Vermont Bankers Association, and the Association of Vermont Credit Unions.
If you have information concerning elder abuse, please contact law enforcement. The U.S. Attorney’s Office may be reached at 802-951-6725.