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Thursday 7 March 2019
Former U.S. Navy Contract Official Pleads Guilty in Bribery Scheme in Which He Received more than $1.2 Million in KickbacksRead the Press Release
LOS ANGELES – A former civilian employee of the United States Navy who was a senior procurement official for Naval Base Ventura County pleaded guilty in federal court today and admitted receiving kickbacks totaling more than $1.2 million.
Fernando Barroso Sr., 69, of Oxnard, pleaded guilty before United States District Judge John F. Walter to one count of conspiracy and one count of subscribing to a false federal income tax return. As part of the conspiracy, Barroso admitted he defrauded the United States, submitted false claims for payment and accepted bribes.
For approximately 22 years, Barroso worked as the master scheduler for the Public Works Department at the Naval Base, which included three facilities – Point Mugu, Port Hueneme and San Nicolas Island. As master scheduler, Barroso was an “approving official” responsible for approving material purchases, service contracts, vendors and payments to vendors.
According to court documents, Barroso conspired with Theodore Bauer, a Ventura County businessman who operated three entities that received contracts from the Navy. In 2008, Barroso and Bauer entered into an arrangement in which Barroso would issue and approve work orders and purchase orders for Bauer’s companies. Bauer submitted false invoices on behalf of his companies, and Barroso approved invoices and payments to Bauer’s companies – even though work was not being performed. In return, Bauer gave Barroso 50 percent of all proceeds generated by the scheme.
Prior to September 13, 2011, Bauer paid Barroso in cash – a figure that exceeded $375,000. Beginning on September 14, 2011, when Barroso created F. Barroso & Sons, Bauer paid the kickbacks by issuing checks payable to Barroso’s corporation. In December 2013, Barroso purchased a majority stake in a maintenance company, and Bauer paid kickbacks in the form of checks to that company as well. The total amount of kickbacks paid by Bauer to Barroso in the form of checks was $856,350.
In his plea agreement, Barroso also admitted that he violated government procurement regulations and violated conflict of interest laws by approving contract payments to the maintenance company he controlled. Barroso further admitted that some of the invoices issued by the maintenance company were simply fraudulent.
In relation to the tax offense, Barroso admitted that he failed to report $95,200 of kickbacks on his 2011 tax return, and that he claimed $331,225 of fictitious deductions on his 2012 tax returns. These violations caused a tax loss to the government of $105,039.
When he is sentenced by Judge Walter on June 3, Barroso will face a statutory maximum sentence of eight years in federal prison and a fine of $500,000. Barroso may also be ordered to pay restitution of $846,150 with respect to the bribery offense and $105,039 in relation to the tax offenses.
Bauer pleaded guilty in November to conspiracy to commit bribery and is scheduled to be sentenced by Judge Walter on June 10.
The case is a product of an investigation by IRS Criminal Investigation, the Defense Criminal Investigative Service, and the Naval Criminal Investigative Service.
The cases against Barroso and Bauer are being prosecuted by Assistant United States Attorney Daniel J. O’Brien of the Public Corruption and Civil Rights Section.
Former Toledo police officer charged in federal court with possession of a stolen firearmRead the Press Release
A former Toledo police officer was charged in federal court with possession of a stolen firearm.
Curtis Stone, 56, of Delta, was in possession of a Taurus .380-caliber pistol on December 4, 2018, that was previously recorded as being destroyed by the Toledo Police Department.
According to an affidavit filed in U.S. District Court:
Toledo police officers recovered a loaded Canik 9 mm pistol during a traffic stop in September 2018. Officers charged an occupant of the car with having a weapon under disability since he had previous convictions for drug and gang offenses.
An ATF task force officer subsequently investigated the incident and discovered the firearm had previously been recovered by Toledo police in 2015 and marked as destroyed in February 2016 by Stone, who was assigned to the Toledo Police Department’s property room at the time.
Stone retired from the Toledo Police Department in January 2018.
Toledo police obtained and executed a search warrant for Stone’s residence in Delta on December 4, 2018. They recovered the Taurus .380-caliber pistol, ten miscellaneous magazines for firearms, miscellaneous ammunition and two Toledo Police Department evidence tags/labels.
The Taurus pistol found in Stone’s home was previously recorded in Toledo Police Department property room records by Stone as having been destroyed.
“Any time a former police officer, like this defendant, appears to have broken the law, we will hold them accountable,” said U.S. Attorney Justin Herdman. “His conduct is not representative of the vast majority of police officers, who go to work every day looking to make their community safer.”
“This case is a disappointing example of an individual that violated the public’s trust as well as the trust of his colleagues,” said Toledo Police Chief George Kral. “We will continue to work with our federal partners to fight crime, wherever it leads. Toledoans should rest assured, the Toledo Police Department is a top-notch police organization that will hold those who fall short accountable.”
The matter remains under investigation.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Toledo Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosive. It is being prosecuted by Assistant U.S. Attorney Gene Crawford.
A charge is only an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former State Department Contractor Pleads Guilty to Stealing ComputersRead the Press Release
ALEXANDRIA, Va. – A former federal contractor pleaded guilty today to theft and embezzlement of up to 16 government computers from the U.S. Department of State.
According to court documents, Andrew W. Cheveers, 31, of Bowie, Maryland, was an Information Technology contractor for the State Department’s Office of Inspector General. In this role, Cheveers held a security clearance that allowed him access to certain sensitive information, and he was responsible for configuring the computers prior to the devices being distributed to U.S. government personnel.
Through the course of his criminal conduct, Cheevers admitted to stealing up to 16 Microsoft Surface Pro laptop computers. Cheveers then sold the stolen computers on Internet websites such as Craigslist and eBay from approximately July 2016 through February 2017 in order to profit from his fraudulent scheme.
Cheveers faces a maximum penalty of 10 years in prison when sentenced on June 21. 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, and Steve A. Linick, Inspector General for the Department of State, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Raj Parekh and Special Assistant U.S. Attorney Katherine Celeste are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-64.
Former Rocker Sentenced to Seven Years in Prison for Defrauding Thousands in Nationwide Real Estate ScamRead the Press Release
Benton, IL – The former bass guitar player for the rock band, The Ataris, is bound for federal prison. Michael S. Davenport, 50, of Santa Barbara, California, was sentenced on Wednesday to serve 84 months behind bars for defrauding thousands of would-be renters and home-buyers throughout the United States from 2009 to 2016. Davenport pled guilty last September to a one-count federal indictment charging him with conspiracy to commit mail and wire fraud.
Davenport’s Santa Barbara-based business changed names several times but was known variously as MDSQ Productions LLC, Housing Standard LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard. Court documents simply refer to the business as "American Standard."
As part of his guilty plea, Davenport admitted that American Standard posted ads on Craigslist listing certain houses for sale or rent at very favorable prices, when, in fact, the houses described in the ads didn’t exist. Consumers who responded to the ads were told they would have to purchase American Standard’s list of houses before they could see any additional information. Consumers were also told that the houses on American Standard’s list were in "pre-foreclosure," that they could purchase the properties by simply taking over the homeowners’ mortgage payments, and that the deeds to the homes would then be transferred into the customers’ names. The $199 fee that American Standard charged to access the list was purportedly to cover the cost of title searches and deed transfers. No matter what area of the country the consumer lived in, American Standard salespersons told them that the list contained numerous pre-foreclosure properties available in their area.
After consumers paid the $199 fee, they learned that the houses on American Standard’s list were not actually available for purchase. A substantial number of the addresses contained on
the list were fictional, or there were simply no houses at those locations. In numerous other instances, the houses were not in pre-foreclosure or any financial distress and were not available to be purchased at below-market prices. If an American Standard customer asked for more information about a specific house advertised on Craigslist, the company’s customer service department always told them that the house was no longer available.
Davenport’s conspiracy and scheme to defraud operated from approximately January 2009 through at least October 5, 2016, over which time American Standard defrauded more than 130,000 people to the tune of more than $25 million. The victims were located in all 50 states and the District of Columbia. Over 100 victims of the scam were located within the Southern District of Illinois, spread across 22 counties, with multiple victims in both St. Clair and Madison counties. American Standard’s list included 534 houses located in Southern Illinois.
In handing down the seven-year sentence at the federal district courthouse in Benton, Illinois, United States District Judge Staci M. Yandle chastised Davenport for what she characterized as a crime of simple greed. "You were intoxicated with making all this money," she told the ex-rocker. "You did horrible things."
As part of his sentence, Davenport was ordered to forfeit $853,210.11 in fraud proceeds that were recovered from his credit card processing accounts, as well as $79,000 in cash that was seized from him at the Bill and Hillary Clinton Airport in Little Rock, Arkansas.
Four of Davenport’s former employees have also been charged with participating in the American Standard fraud conspiracy. On Wednesday afternoon, just hours after Davenport’s sentencing, Cynthia L. Rawlinson, 52, of Santa Barbara, was sentenced by Judge Yandle to five years of supervised release. Rawlinson was a salesperson who also served as a manager for American Standard for a brief period of time. Earlier this year, two other American Standard sales representatives from Santa Barbara –Mark A. Phillips, 50, and Semjase E. Santana, 37 – were also sentenced to serve five years of supervised release. And last June, Carlynne L. Davis, 34, of Lompoc, California, pled guilty to conspiracy to commit wire fraud in connection with her participation in American Standard. Davis’s sentencing hearing is scheduled for April 5, 2019.
This case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Office of the Honorable Joyce E. Dudley, District Attorney for Santa Barbara County, and the Santa Maria Office of the FBI have provided substantial assistance in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Former North Texas Mayor and Land Developer Convicted in Public Corruption TrialRead the Press Release
SHERMAN, Texas –The former mayor of Richardson, Texas and a land developer who she eventually married, have been convicted of federal conspiracy violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Laura Jordan, also known as Laura Maczka, 54, and Mark Jordan, 52, both of Plano, Texas were found guilty by a jury of following a trial before U.S. District Judge Amos Mazzant that lasted over three weeks. Maczka was found guilty of conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to commit bribery concerning a program receiving federal funds and bribery concerning program receiving federal funds. Jordan was found guilty of conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to commit bribery concerning a program receiving federal funds and bribery concerning program receiving federal funds.
According to information presented in court, from May 2013 through April 2015, Maczka was the mayor of Richardson, Texas, and Jordan was a land developer. Maczka and Jordan conspired to devise and execute a scheme to defraud and deprive City of Richardson residents of the honest services of the Mayor through bribery. Maczka, contrary to her campaign promises, supported and repeatedly voted for controversial zoning changes sought by Jordan ultimately allowing for the construction of over 1,000 new apartments in Richardson near Richardson neighborhoods. The indictment alleges that, in exchange, Jordan paid Maczka over $18,000 in cash and $40,000 by check, paid for over $24,000 in renovations to Maczka’s home, paid for Maczka’s luxury hotel stays and airfare upgrades, and provided Maczka lucrative employment at one of Jordan’s companies. According to court testimony, Maczka and Jordan failed to disclose to the public that they had coordinated to effect the zoning changes Jordan wanted and that Jordan had provided a stream of benefits to Maczka.
“This kind of corrupt relationship undermines the public’s confidence in government,” said Eastern District of Texas U.S. Attorney Joseph D. Brown. “This was more than an ethical violation, this was absolutely criminal. We need juries that recognize public corruption for what it is, and support prosecutions that attempt to hold accountable those that cheat. This jury certainly did that.”
Mark Jordan was taken into custody following the verdict and will appear for a detention hearing on Mar. 8, 2019.
Under federal statutes, Maczka and Jordan each face up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher A. Eason, Maureen Smith, Glenn Roque-Jackson, and Bradley Visosky.
Former Investment Advisor Sentenced for Fraud and PerjuryRead the Press Release
BOSTON – A former investment advisor was sentenced yesterday in federal court in Boston for deceiving his former clients concerning the management of their retirement savings as well as lying to the U.S. Securities and Exchange Commission (SEC).
Richard G. Cody, 44, of Jacksonville, Fla., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to two years in prison and two years of supervised release. Cody was also ordered to pay a fine of $30,000. In November 2018, Cody pleaded guilty to one count of violating the Investment Advisors Act of 1940 and two counts of making a false declaration in a court proceeding.
From May 2005 to August 2016, Cody acted as an investment advisor and managed the retirement savings of three victims, including two in Massachusetts. Cody falsely assured the victims that their retirement savings were secure, when in fact he knew they were not. Contrary to his fraudulent assurances, by 2014, the total value of their retirement savings had substantially diminished, and the retirement savings of two victims were entirely gone. In order to conceal these losses, Cody provided the victims with fraudulent account statements and tax documents. In addition, Cody failed to inform his victims that regulators had suspended him in 2013 from acting as an investment advisor.
In addition, Cody lied to the SEC during a March 2017 sworn deposition in connection with a civil enforcement action the SEC had filed against him in December 2016. Cody made false declarations regarding fraudulent documents that he denied giving to two victims of the scheme.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Neil J. Gallagher Jr. and Elysa Wan of Lelling’s Criminal Division is prosecuting the case.
Former Illinois Attorney Pleads Guilty to Tax Evasion in Connection with Legal Fees Stemming from Multi-Billion Dollar Tobacco LitigationRead the Press Release
CHICAGO — Former Illinois attorney EDWARD R. VRDOLYAK pleaded guilty today to federal tax evasion for assisting another lawyer in evading taxes on income received from a multi-billion dollar legal settlement with tobacco companies.
Vrdolyak, 81, of Chicago, pleaded guilty to one count of tax evasion. The charge is punishable by up to five years in prison. U.S. District Judge Robert M. Dow, Jr., set sentencing for July 23, 2019.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Amarjeet S. Bhachu and Special Assistant U.S. Attorney Michael T. Donovan.
Vrdolyak admitted in a plea agreement that he assisted another lawyer, co-defendant DANIEL P. SOSO, in evading federal income taxes owed by Soso for the calendar years 1993 through 2004, and 2008 through 2013. The income was derived from attorney fees received in connection with a $9.2 billion settlement between the State of Illinois and a number of tobacco companies in the 1990s. At the time of the settlement, Vrdolyak and Soso were licensed Illinois attorneys. The pair collected legal fees from the settlement pursuant to agreements with one of the attorneys that represented the State of Illinois. Pursuant to these agreements, Vrdolyak made payments to Soso between 2000 and 2005 of approximately $1,925,830, representing Soso’s agreed-upon share of the fees of the tobacco litigation.
In August 2005, the IRS served a notice of levy on The Law Offices of Edward R. Vrdolyak, which required the turnover of all salary, wages and other amounts owed to Soso. Over the next two years, Vrdolyak received approximately $262,854 due Soso, but he concealed receipt of these funds from the IRS, knowing such concealment would assist Soso in evading the payment of taxes and assessments due the IRS, the plea agreement states. Vrdolyak later caused approximately $170,242 to be paid to Soso instead of remitting these funds to the IRS.
Soso, 67, of Alsip, pleaded guilty last month to one count of tax evasion. Judge Dow set Soso’s sentencing for June 25, 2019.
Former Green Bay resident sentenced to four years in prison for filing false tax returnsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Alma Ramirez (age 40) was sentenced today in federal court in Green Bay to four years in prison, to be followed by three years of supervised release, and ordered to pay $301,370 in restitution.
Ms. Ramirez, who previously lived in Green Bay and now lives in Alabama, pleaded guilty to wire fraud, assisting in the filing of false tax returns, and aggravated identity theft. As detailed in Ms. Ramirez’s plea agreement, during the period from March 2013 through May 2016, Ramirez, and others working with her and at her direction, prepared and filed more than 60 false federal income tax returns in the names of various individuals, thereby fraudulently seeking more than $300,000 in federal income tax refunds. These tax returns included false information concerning the taxpayer’s employment, wages, the amount of federal taxes that had been withheld from those wages, dependents, and the taxpayer’s eligibility for various tax credits. Ramirez also committed identity theft by illegally using the names and social security numbers of unwitting individuals to commit her fraud offense.
In sentencing Ramirez, Judge William C. Griesbach, Chief U.S. District Judge, emphasized the seriousness of Ramirez’s crimes, the fact that Ramirez had recruited others, and the need to deter others who might be tempted to commit similar crimes.
This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.
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Former Equifax executive pleads guilty to insider tradingRead the Press Release
ATLANTA - Jun Ying, who committed insider trading by exercising his company stock options ahead of Equifax’s public announcement of its massive data breach, pleaded guilty to a charge of securities fraud.
“Insider trading is an abuse of trust and victimizes everyone who invests in the stock market,” said U.S. Attorney Byung J. “BJay” Pak. “Our office will continue its work to keep the stock market fair for all investors.”
“We must not allow company insiders to have an advantage over regular investors, otherwise the integrity of the markets and confidence of investors deteriorates,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The FBI will do everything in its power to maintain a fair and equitable stock market for everyone.”
According to U.S. Attorney Pak, the charges and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta, Georgia. During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million Americans. At the time, Jun Ying was the chief information officer of Equifax U.S. Information Solutions. In that role, he was provided sensitive information that led him to conclude that Equifax was the victim of the data breach before it was made public.
On Friday, August 25, 2017, Ying texted a co-worker that the breach they were working on "Sounds bad. We may be the one breached." The following Monday, Ying conducted web searches on the impact of Experian's 2015 data breach on its stock price. Later that morning, Ying exercised all of his stock options, resulting in him receiving 6,815 shares of Equifax stock, which he then sold. He received proceeds of over $950,000, and realized a gain of over $480,000, thereby avoiding a loss of over $117,000. On September 7, 2017, Equifax publicly announced its data breach, which resulted in its stock price falling.
Ying is the second Equifax employee to be found guilty of insider trading relating to the data breach following Sudhakar Reddy Bonthu, a former manager at Equifax, who pleaded guilty on July 23, 2018.
Sentencing for Jun Ying, 43, of Atlanta, Georgia, is scheduled for June 27, 2019, at 10:30 a.m. before U.S. District Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission made contributions to the case.
Assistant U.S. Attorneys Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Lynsey M. Barron prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former El Dorado County Gymnastics Coach Charged with Attempting to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Keith Willette, 56, of Cameron Park, charging him with attempted production of child pornography, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2000 and April 2002, Willette attempted to produce child pornography of a juvenile victim.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust and Trial Attorney Jessica Urban with the Child Exploitation and Obscenity Section of the Department of Justice, Criminal Division, are prosecuting the case.
If convicted, Willette faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. 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 charge is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Florida Landscaper Indicted for Tax FraudRead the Press Release
A Florida man had his initial appearance in court yesterday after being arrested on an indictment charging him with filing false tax returns with the Internal Revenue Service, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the indictment, Joseph J. Ferry III, owned Ferry Enterprises Inc., a residential and commercial landscaping business serving customers in Martin and Saint Lucie County. Ferry Enterprises also provided landscaping services for Martin County and the City of Port Saint Lucie.
Ferry was charged with five counts of filing false corporate income tax returns and five counts of filing false individual income tax returns with the Internal Revenue Service (IRS) that fraudulently understated the total income earned by Ferry Enterprises - and Ferry himself - for tax years 2012 through 2016. The indictment alleges that business income was deposited into corporate bank accounts; however, Ferry allegedly used money from the business bank accounts to pay his personal expenses, including payments on his personal mortgage and loans, purchases of firearms, home renovations, and jewelry. Ferry also allegedly withdrew more than $2.9 million in cash from the corporation’s bank accounts.
If convicted, Ferry faces a maximum sentence of three years in prison for each count of filing a false tax return with the IRS. He also faces substantial monetary penalties and restitution.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Allison J. Garnett and Sean Beaty of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Tulare Residents Charged in Superseding Indictment with Possessing and Selling False Identification DocumentsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 10-count superseding indictment today for a case involving the production and sale of false Social Security cards and green cards first charged in August 2018, U.S. Attorney McGregor W. Scott announced.
Today’s superseding indictment adds three counts and a fifth defendant. Tulare residents Elfego Alcala, 46; Aida Corona, 37; Tamilene Cisneros, 48; Lupita Cisneros; and the fifth defendant, Maria Elena Soriano-Salinas, 57, are charged with conspiring to produce false identification documents, the production and sale of false identification documents, and fraud and misuse of visas and related documents.
According to court documents, in March, May, and August of 2018, the defendants engaged in transactions in which they manufactured and sold false identification documents to buyers. These documents included Social Security cards and green cards.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 15 years in prison and a $250,000 fine. 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.
Five Tipton County Men Convicted After Jury Trial, Guilty Pleas, for 2017 Home Invasion Murder in CovingtonRead the Press Release
Memphis, TN – A federal jury has convicted three Tipton County men for their roles in a 2017 home invasion murder in Covington, TN, and two others have pled guilty for their roles in the attempted robbery resulting in death. U.S. Attorney D. Michael Dunavant announced the convictions today.
According to information presented in court, on January 19, 2017, Willie Somerville, 21, Armoni Hall, 21, Eddie Poindexter, 21, Christian Sherrill, 24, and Darrell Owens, 32, participated in the robbery of Timothy Edwards at his home located at 1229 Douglas Street in Covington, Tennessee. They planned to rob him of drugs and drug proceeds. Somerville was armed with a 9 mm pistol and Hall with a twelve-gauge shotgun. Somerville, Hall, and Poindexter went to Edwards’ residence and kicked in the door, while Sherrill and Owens waited nearby in a getaway car. As Hall entered Edwards' residence, Edwards grabbed him and they struggled over the shotgun. Somerville opened fire with the pistol killing Edwards and seriously injuring Hall. Edwards' wife was in the back of the house and called 911. By the time police arrived a few minutes later, Edwards was already dead. Hall was found lying in the street a block away with gunshot injuries.
On December 19, 2017, a federal grand jury indicted the five men for robbery affecting interstate commerce; possession, use and discharge of firearms during a crime of violence; and use of a firearm to cause the death of Timothy Edwards. On March 5, 2019, after a week-long trial, the jury convicted Somerville of all counts, and Poindexter and Sherrill were convicted of the robbery and use of the firearm during the robbery. Hall previously pled guilty to all counts, and is scheduled to have a sentencing hearing on March 15, 2019. Owens previously pled guilty to the robbery and firearms offenses, and is scheduled to have a sentencing hearing on April 4, 2019.
Sentencing for Somerville, Poindexter, and Sherrill is scheduled for June 26, 2019, before U.S. District Court Judge Sheryl H. Lipman. All defendants face mandatory minimum sentences of 10 years and up to life imprisonment.
U.S. Attorney D. Michael Dunavant said: "The days of brazen violence, robbery crews, trigger-pullers, and lawlessness in Covington are quickly coming to an end. The violent nature of these offenders’ criminal acts underscores the serious threat that this group posed to the community as a whole. They had no regard for human life, and will now be removed from the Covington community for decades. This should send a clear message to those who continue to engage in senseless gun violence in our small towns and rural communities: We know who you are; You will be caught and held accountable; We will bring the full weight and measure of our federal resources to prosecute you to the fullest extent of the law."
This case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation.
Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers are prosecuting this case on behalf of the government.
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Felon Convicted After Three-Day Trial for Illegal Possession of Firearm and AmmunitionRead the Press Release
Baltimore, Maryland – A federal jury convicted Erick Rahumid Hobbs, a/k/a Eric Muhammad, age 39, of Baltimore, Maryland, on March 6, 2019 for illegally possessing a firearm and ammunition. Hobbs was previously convicted of a felony and was therefore prohibited from possessing firearms or ammunition.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to the evidence presented at his three-day trial, between October 2017 and January 2018, Hobbs was dating a woman and gave the woman’s daughter a television as a gift. After the woman broke off their relationship, Hobbs demanded that the woman return the television, even though Hobbs had given it as a gift to her daughter.
The evidence proved that on February 3, 2018, Hobbs broke a rear kitchen window to gain access to the woman’s home. When the woman and her daughter came downstairs to investigate the noise, Hobbs ordered them at gunpoint to open the front door, and he threatened to kill the woman, her daughter, her family, and the police. The woman unlocked the front door. Hobbs, still armed with the gun, forced his way into the residence, then left with the television. The woman called the police to report the incident.
On February 4, 2018, law enforcement located Hobbs in his vehicle and attempted to stop it. Hobbs fled and rear-ended a van nearby. Hobbs got out of his vehicle and was arrested. Officers recovered a loaded 9mm pistol from the ground by the driver’s side door of Hobbs’ vehicle, where Hobbs was standing at the time of his arrest.
Later that day, Hobbs was captured on recorded jail calls talking to his son and roommate. During one of those calls, Hobbs provided his son with the victim’s address and directed his son to give the address to Hobbs’ roommate who is “gonna take care of it from there.” Hobbs’ son promptly went to Hobbs’ residence and provided his phone to Hobbs’ roommate so he could talk to Hobbs. On a recorded jail call, Hobbs spelled out the victim’s first and last name for his roommate and directed his roommate to get the victim’s address from his son. On the same recorded jail call, Hobbs told his roommate that he needed someone to talk with the victim and suggested Facebook as means to contact her. The roommate agreed and subsequently sent the victim communications via Facebook. The victim notified the Baltimore County Police Department of the Facebook communications and was relocated due to concerns for her safety.
On February 5, 2018, law enforcement obtained a warrant to search Hobbs’ residence and seized 65 rounds of 9 mm ammunition—the same type of ammunition inside of the firearm—from Hobbs’ bedroom dresser, and a paper with the victim’s address written on it from the roommate’s bedroom.
Hobbs faces a mandatory minimum sentence of 15 years in prison and up to life in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for May 24, 2019, at 9:30 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Samika N. Boyd, and Special Assistant U.S. Attorney Christine Goo, who are prosecuting the case.
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Federal Jury Convicts St. Louis Man for Being a Felon in Possession of a FirearmRead the Press Release
St. Louis, MO – Merwin Smith, 41, of St. Louis, MO, was convicted by a jury today in U.S. District Court in St. Louis for one count of felon in possession of a firearm. Smith’s trial took place before U.S. District Court Judge John Ross who set a sentencing hearing for June 13, 2019.
According to testimony at trial, on July 17, 2016, Normandy, Missouri police were investigating a property crime at 2:00 a.m. when they observed Smith commit a traffic violation and hurriedly pull his vehicle into a driveway, striking a car that was already parked in the driveway. A Normandy Police Department Officer, in marked car and uniform, next observed Smith exit the vehicle, lean back in, and observed Smith throw a dark object out of the car’s passenger window. Following a brief search, the officer located a fully loaded .45 caliber pistol that landed on an adjacent sidewalk with scrape marks consistent with the firearm striking concrete. Smith has a prior felony conviction for unlawful use of a weapon.
Smith faces a penalty of up to 20 years imprisonment and a fine of $250,000 or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Normandy Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. This case was handled by Assistant United States Attorneys Rodney Holmes and Cassie Wiemken.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the March 2019 Federal Grand Jury.
The following individuals have been charged with violations of United States law in an indictment returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Glenville L. Albright. False Statement in Connection With the Attempted Acquisition of a Firearm; Felon in Possession of a Firearm. Albright, 50, of Pawhuska, is charged with making a false statement on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 in an effort to redeem a Winchester, Ranger Model 120, 12 gauge shotgun that he had previously pawned. Albright lied on the form about his criminal record. He is further charged with being a felon in possession of a firearm. The Bureau of Alcohol, Tobacco, and Firearms is the investigative agency.
Marissa Leigh Andrews and Danica Rae Pulley. Drug Conspiracy; Possession With Intent to Distribute Ecstasy. Andrews, 20, and Pulley, 25, both of Fort Dodge, Iowa, are charged with conspiring to sell ecstasy and intent to distribute ecstasy. The Pryor Police Department and Drug Enforcement Administration are the investigative agencies.
Anthony Dale Brannon. False Statement in Connection With the Attempted Acquisition of Firearms; Felon in Possession of a Firearm. Brannon, 59, of Grove, is charged with making a false statement on the ATF Form 4473 in an effort to purchase a Remington 12 gauge shotgun and a Browning 20 gauge shotgun. Brannon lied on the form about his criminal record. He is further charged with being a felon in possession of firearms. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Matthew F. Donovan. Felon in Possession of a Firearm. Donovan, 34, of Eucha, is charged with being a felon in possession of a Model Heritage Rough rider, .22 LR caliber revolver. The Delaware County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosive are the investigative agencies.
John Wayne Engel. Possession of Heroin With Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Felon in Possession of a Firearm and Ammunition. Engel, 32, is charged with possession with intent to distribute heroin and possessing a firearm and ammunition to carry out his drug trafficking crimes. He is further charged with being a felon in possession of a HS Produkt, Model XD40, .40 S&W semi-automatic pistol and 38 rounds of associated ammunition. The Tulsa Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Joshua Christopher Harrison. Theft by Employee of Gaming Establishment of Indian Lands in Excess of $1000. Harrison, 22, of Broken Arrow, is charged with embezzling more than $1,000 from the Muscogee (Creek) Nation River Spirit Casino, a gaming establishment. The FBI, Muscogee (Creek) Nation Attorney General Investigator and the Office of Public Gaming are the investigative agencies.
Rufus Hicks, Jr. False Statement in Connection With An Attempted Acquisition of a Firearm. Hicks, 39, of Tulsa, is charged with making a false statement on the ATF Form 4473 in an effort to purchase a Taurus, Model 605 Protector Ply, .357 MAG caliber revolver. Hicks lied on the form about his criminal record. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Cesar Lara, Jr., Angel Ricardo Gonzalez, and Juandedios Gonzalez, Jr. Drug Conspiracy. Lara, 23, Angel Ricardo Gonzalez, 31,and Juandedios Gonzalez Jr., 44, all of El Paso, Texas, are charged with knowingly conspiring to possess and distribute cocaine. The Drug Enforcement Administration and Oklahoma Highway Patrol are the investigative agencies.
David Mason Leslie, Jr. Drug Conspiracy; Interstate and Foreign Travel and Transportation in Aid of Racketeering Enterprises. Leslie Jr., 54, of Cucamonga, California, is charged with conspiring to possess and distribute 100 kilograms or more of a mixture containing a detectable amount of marijuana. As part of the conspiracy, the co-conspirators allegedly purchased and transported shipments of marijuana from California to the Northern District of Oklahoma. Leslie and his co-conspirators allegedly distributed the drug in the northeastern Oklahoma and elsewhere, including Minneapolis, Minnesota. Leslie is further charged with traveling in interstate commerce with the intent to facilitate and manage the drug distribution business enterprise. The Drug Enforcement Administration and IRS-Criminal Investigation are the investigative agencies.
Christopher P. Manzanares. False Statement in Connection With the Attempted Acquisition of a Firearm; Possession of a Firearm and Ammunition While Subject to a Domestic Violence Restraining Order. Manzanares, 28, of Broken Arrow, is charged with making a false statement on the ATF Form 4473 in an effort to purchase a SCCY CPX-1, 9 mm pistol. Manzanares lied on the form about being subject to a restraining order. He is further charged with possessing a Davis Industries, Model D-32, .32 caliber derringer while subject to a domestic violence restraining order. The Broken Arrow Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jason William Near, Kevin Michael Wright, and Stephanie Marie Elfman. Drug Conspiracy; Possession of Marijuana with Intent to Distribute. Near, 39, of Lakewood, New York, Wright, 46, of Jamestown, New York, and Elfman, 31, of Jamestown, New York, are charged with conspiring to distribute and to possess with intent to distribute 50 kilograms or more of marijuana. The Miami Police Department, Oklahoma Highway Patrol and Drug Enforcement Administration are the investigative agencies.
Feliciano Villarruel-Cabre. Reentry of Removed Alien. Villarruel-Cabre, 44, of Tulsa, is charged with having returned to the United States unlawfully after being deported on July 11, 2007, from Hidalgo, Texas. Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.
Bradley Ryan Wikel. False Statement in Connection With the Attempted Acquisition of a Firearm; Felon in Possession of a Firearm. Wikel, 31, of Jay, is charged with making a false statement on the ATF Form 4473 in an effort to purchase a Remington .30-06 caliber bolt-action rifle. Brannon lied on the form about his criminal record. He is further charged with being a felon in possession of a firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Evan Jamon Woodard. Felon in Possession of Firearm and Ammunition; Possession of a Firearm in Furtherance of Drug Trafficking Crimes; Possession of Cocaine With Intent to Distribute (2 counts); Possession of Marijuana With Intent to Distribute (2 counts); Possession of Heroin With Intent to Distribute. Woodard, 34, is charged with being a felon in possession of a Kahr Arms, Model CM 9, 9 mm pistol and ammunition and for possession of a firearm in furtherance of drug trafficking crimes. Additional he is charged with multiple counts of possession of cocaine with intent to distribute, possession of marijuana with intent to distribute and possession of heroin with intent to distribute. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
FHA Program Landlord Agrees to False Claims Act SettlementRead the Press Release
RICHMOND, Va. – A real estate broker in Colonial Heights has agreed to settle allegations that he induced a low-income tenant to pay additional money for rent not permitted under a U.S. Department of Housing and Urban Development (HUD) rent subsidy program in which he was participating.
Harold Joseph Tyler, owner of Tyler Realty Group, participates in the federally-funded Housing Choice Voucher Program, a program for low-income individuals administered by HUD. In return for participating, Tyler receives a portion of the rent from housing assistance funds from HUD. The United States alleged that Mr. Tyler violated the federal False Claims Act (FCA) by certifying that he would not receive any payments in excess of the agreed rent. However, Tyler Realty Group, for a period of approximately 72 months, collected $190 per month from the tenant over and above the rent in the form of a monthly “non-refundable deposit.”
A qui tam action under the FCA is commenced by an individual, known as a “relator,” filing a complaint under seal in U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The relator in this case was the tenant who leased the residence and paid the excess amounts to Tyler Realty Group.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, and the Department of Housing and Urban Development, Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Evans City Man Charged with Robbing Zelienople BankRead the Press Release
PITTSBURGH, PA – A resident of Evans City, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on one charge of bank robbery, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on March 5, names Chad Vaughan, 32, as the sole defendant.
According to the Indictment, on October 23, 2018, Vaughan robbed the NexTier Bank, located at 226 South Main Street, Zelienople, PA 16063.
The law provides for a maximum total sentence of not more than twenty (20) years in prison, a fine of not more than $250,000, 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 Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Borough of Zelienople Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Euclid man indicted on charges of sexual exploitation of a child, extortion and possession of child pornographyRead the Press Release
Tyrin Davis, 20, of Euclid, was indicted on charges of sexual exploitation of a child, extortion and possession of child pornography.
According to court documents:
The Toronto (Canada) Police Service’s Internet Child Exploitation Unit contacted Homeland Security Investigations after learning the 13-year-old had been enticed and extorted into sending multiple sexually explicit images of herself via Instagram and Snapchat. The girl and her mother approached the Toronto Police Service in May 2018 to report the ongoing extortion.
The suspect told the girl he would pay $1,000 if she were to send nude photos of herself. The girl stated her parents were going through a rough time financially and she thought that by sending the photos, she could do her part to help.
She sent a few nude photos, at which point the suspect began to send messages asking for more. The girl later said that the suspect told her that if she did not send more, he would put the ones she already sent online for the world to see. As a result, she sent more photos of herself to the suspect.
Once the victim realized things had gone too far, she attempted to stop communication with the suspect. The suspect sent nude photos of her to several of her friends on Instagram. The suspect also communicated with the victim’s cousin on Instagram and stated that if the cousin did not send nude pictures of herself, the suspect would post more nude photos of the 13-year-old online.
Investigators eventually traced the messages to the 13-year-old victim to an IP address assigned to Tyrin Davis on Chestnut Lane in Richmond Heights. Davis subsequently moved to Euclid.
“This case demonstrates the danger posed by the Internet, particularly for teens posting photos and communicating with people they don’t really know,” U.S. Attorney Justin Herdman said. “Parents and trusted adults need to make it their business to know who their kids are talking to.”
"These cases are a painful reminder that we can never have enough conversations with our children about the potential dangers of the internet,” said Homeland Security Investigations' Special Agent in Charge Steve Francis. “Through our iGuardian educational program, HSI is fully committed to ensuring that parents and young people have all the information they need when it comes to online safety.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Toronto Police Service. It is being prosecuted by Assistant United States Attorney Michael A. Sullivan.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Essex County, New Jersey, Man Sentenced to 50 Months in Prison for Health Care FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 50 months in prison for his role in a conspiracy to defraud New Jersey state benefit programs, , U.S. Attorney Craig Carpenito announced.
Brian Catanzarite, 43, a former gym owner from Cedar Grove, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of healthcare fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Catanzarite admitted that from March 2015 through January 2017, he conspired to defraud New Jersey state benefit programs. Catanzarite was recruited by one of his former gym members to become a sales representative of a company that marketed compounded medications. The marketing company received a percentage of every prescription that its sales representatives steered toward a particular compounding pharmacy.
To maximize his profit, Catanzarite convinced state beneficiaries to obtain compounded medications regardless of their medical necessity. On several occasions, Catanzarite even paid an advanced nurse practitioner, introduced to him by the marketing company, or used a telemedicine service that was paid for by the marketing company, to fraudulently obtain compounded medication prescriptions. Catanzarite caused losses of at least $3.5 million and personally made over $1.1 million from the scheme.
In addition to the prison term, Judge Vazquez sentenced Catanzarite to three years of supervised release and ordered restitution of $3.5 million.
U.S. Attorney Carpenito credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Ehrie; and the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey of the DCIS Northeast Field Office, with the investigation leading to today’s sentencing.
The government is represented in these cases by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney's Office Opioid Abuse Prevention and Enforcement Unit in Newark.
Dominican National Sentenced for Fentanyl, Heroin ConspiracyRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for her role in a widespread heroin and fentanyl conspiracy. The defendant had previously failed to appear for trial after being released on unsecured bond.
Isis Y Lugo-Guerrero, 46, a Dominican national residing in Dorchester, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison and three years of supervised release. Lugo-Guerrero will be subject to deportation upon completion of her sentence. In November 2018, Lugo-Guerrero pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin, fentanyl and cocaine.
Lugo-Guerrero was arrested on Feb. 14, 2017, and released from custody on March 2, 2017, on $10,000 unsecured bond. The first day of her week-long trial was scheduled to begin on Sept. 10, 2018, but she failed to appear in court, and a warrant was issued for her arrest. She was arrested on Oct. 3, 2018.
Lugo-Guerrero is the sister of Jose Antonio Lugo-Guerrero, the convicted leader of a Boston-based heroin and fentanyl trafficking organization. Isis Lugo-Guerrero conspired with her brother and others by regularly obtaining heroin and cocaine from him and by supplying him with substances to cut his drugs to make additional profit.
In December 2018, Jose Antonio Lugo-Guerrero was sentenced to 16 years in federal prison after pleading guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, more than 400 grams of fentanyl, and more than five kilograms of cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William G. Gross; Bridgewater Police Chief Christopher D. Delmonte; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
District of Oregon Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
PORTLAND, Ore.—Attorney General William P. Barr and U.S. Attorney Billy J. Williams today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
"Crimes against the elderly target some of the most vulnerable people in our society," Attorney General William P. Barr said. "But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors."
"Today’s sweep sends a clear message that the Department of Justice is determined to hold accountable criminals who prey on our elderly citizens," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I want to thank our law enforcement partners from across the federal government as well as the many state, local and tribal agencies here in Oregon who assisted in bringing these cases and helping to put an end to these shameful schemes."
Three District of Oregon cases were included in the sweep:
U.S. v. Stevens et al.
On January 8, 2019, a federal grand jury returned a six-count indictment charging Portland couple Ronnie Stevens, 49, and Tina Ephrem, 43, with wire fraud after they conspired to defraud an elderly couple of money and property. Stevens and Ephrem stole more than $1.5 million from the adult victims and spent the proceeds on utility bills, restaurants, cigars, retail purchases and travel to locations including Hawaii, Anaheim, California, Las Vegas, Nevada and the Spirit Mountain Lodge in Grand Ronde, Oregon. The couple was arrested on January 11, 2019 and ordered detained pending a five-day jury trial beginning on June 10, 2019. Read more.
U.S. v. Gregory
On January 22, 2019, Rodney Paul Gregory, 64, of Lebanon, Oregon, pleaded guilty to one count each of wire fraud and money laundering for his role in online romance scams, some of which targeted the elderly. Between May 2017 and January 2019, Gregory acted as a money mule, receiving proceeds from various scams and wiring the money into overseas bank accounts. Gregory faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release and will be sentenced on April 4, 2019. Read more.
U.S. v. Tucker
On February 12, 2019, Tayva Tucker, 41, of Madras, Oregon, pleaded guilty to one count of theft of government funds for stealing nearly $40,000 in Social Security payments from ten mentally disabled adults. Tucker was employed by a social services organization where she oversaw outreach to mentally disabled clients as part of the organization’s mental health program. An organizational audit uncovered unusual movement of funds between various client accounts, as well as funds transferred from client accounts to Tucker. When confronted, Tucker admitted to taking clients’ Social Security benefits for her personal use. Tucker faces a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release and will be sentenced on April 25, 2019. Read more.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since passage of the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA), the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Delaware County Attorney Charged with FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Daniel Vermeychuk, 66, of Wallingford, Pennsylvania, was charged in an indictment unsealed today with four counts of wire fraud, one count of social security fraud, and one count of theft from an employee benefit fund.
According to the indictment, the defendant obtained Social Security and pension benefit funds intended for the deceased tenant of an apartment building owned by the defendant’s wife. After the tenant’s death, the defendant continued to withdraw the benefit funds and used the money for his own purposes. According to public records, the defendant is an attorney licensed to practice in Pennsylvania.
If convicted, the defendant faces a maximum possible sentence of 90 years imprisonment, full restitution, a fine, and a period of supervised release.
“Daniel Vermeychuk is charged with conduct that, if proven at trial, stands in stark contrast to the oath he swore as an attorney – to uphold the rule of law,” said U.S. Attorney McSwain. “Instead of entering a courtroom to represent clients before the court, his next appearances will be to answer to these charges, and if found guilty, to be held accountable for them.”
The case was investigated by the Social Security Administration’s Office of Inspector General, the Department of Labor’s Office of Inspector General, and the United States Postal Inspection Service. The case is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant Charged with Assaulting A South Georgia Postal Worker Has Initial Hearing in Federal CourtRead the Press Release
ALBANY, GA – A man charged in the assault of a federal postal employee Wednesday had an initial appearance today, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Traveyon Devante Wilcox, of Donalsonville, GA, had his initial appearance before The Honorable Thomas Q. Langstaff, U.S. Magistrate Judge. Mr. Wilcox is facing one count of Assault on a Federal Employee, a charge that carries up to 20 years imprisonment and a $250,000 fine. Mr. Wilcox is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. A bond hearing before Judge Langstaff is expected within three business days.
According to the facts presented to the Court, Mr. Wilcox is accused of assaulting a postal worker on Wednesday, March 6, 2019 at approximately 9:00 a.m. while the postal worker was on the job in Donalsonville (Seminole County), delivering mail in an official capacity. The defendant is accused of entering the postal vehicle during the assault.
This case is being investigated by the U.S. Postal Inspection Service and the Donalsonville Police Department. Assistant United States Attorney Leah E. McEwen is prosecuting the case for the United States. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Council Bluffs Man Sentenced for Bank RobberyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on March 6, 2019, Larry Eugene Burns, age 30, of Council Bluffs, was sentenced by United States Senior District Court Judge Robert W. Pratt for Bank Robbery by Intimidation. Burns was sentenced to 30 months in prison to be followed by a term of supervised release of three years.
In September 2018, Burns donned a bandana and a pink shirt, walked into Centris Federal Credit Union, and demanded money from the teller. After robbing the Credit Union, Burns ditched the bandana and pink shirt, which were later recovered in a nearby garbage can. Officers located a shirtless Burns walking a few blocks from the bank, and he matched the description given by the witnesses. Burns later confessed to the robbery and identified himself on the bank video surveillance. One month prior to robbing the Centris Federal Credit Union, Burns was released from an Iowa prison after serving an eight-year sentence for bank robbery.
This case was investigated by Council Bluffs Police Department and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced to Eighty-Four Months of Imprisonment for Possessing A Firearm and AmmunitionRead the Press Release
SAN FRANCISCO – Oliver Barcenas was sentenced to 84 months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney David L. Anderson and Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agent in Charge Rayfield Roundtree. The sentence was handed down by the Honorable Vince Chhabria, United States District Judge.
Barcenas, 28, of Richmond, Calif., pleaded guilty to the charge on December 11, 2018. According to the plea agreement, Barcenas admitted that on June 9, 2018, while on a crowded street in San Francisco, he possessed a loaded Glock 30, .45 caliber handgun, with an extended magazine. Barcenas admitted that he was approached by a San Francisco police officer, attempted to evade arrest, fled from the police, and while doing so, removed the firearm from his waistband. Further, Barcenas admitted that on June 9, 2018, he was a convicted felon and was not eligible to possess a firearm. According to court documents, San Francisco police officers arrested Barcenas hours after the Golden State Warriors’ 2018 victory in the NBA championship and during celebrations of the win. During those celebrations in San Francisco, Barcenas ran on a crowded sidewalk while holding the firearm and threw the loaded gun into the crowded street.
On August 30, 2018, a federal grand jury indicted Barcenas, charging him with being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). Barcenas pleaded guilty to the charge.
In addition to the prison term, Judge Chhabria ordered Barcenas to serve a three-year term of supervised release to begin at the conclusion of his prison term.
Assistant United States Attorney Ross Weingarten is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the ATF and the San Francisco Police Department.
Convicted Felon Sentenced After Discharging Firearm in Madison Parking StructureRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Tony D. Smith, 30, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to four years in federal prison, followed by a three-year term of supervised release, for possessing a firearm as a convicted felon. Smith pleaded guilty to this charge on October 23, 2018.
On August 10, 2018, Madison Police Department patrol officers heard a gunshot in a public parking ramp in downtown Madison. The parking ramp’s security guard reported that he observed the driver of a red Dodge sedan discharge a firearm at three individuals in the ramp before speeding out of the ramp and striking through the exit’s stop arm. Security video showed the license plate of the vehicle, and an MPD officer located it shortly afterwards. Officers followed the car and conducted a high-risk traffic stop in an apartment parking lot. They identified the driver and sole occupant of the vehicle as Smith, but no firearm was located in the vehicle. Officers searched the parking ramp and located a 9mm shell casing. The following day, a citizen located a 9mm firearm near the apartment complex where Smith was arrested, and called the police. The firearm had one round in the chamber. Investigation revealed the firearm was owned by Smith’s girlfriend.
Given Smith’s criminal history and background, Judge Conley rejected his request for an 18-month sentence.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The charge against Smith was the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Convicted Felon Pleads Guilty to Trafficking Heroin and Possessing a FirearmRead the Press Release
RICHMOND, Va. – A Henrico man pleaded guilty today to trafficking over 200 grams of heroin and for possessing a firearm as a convicted felon.
“Drug traffickers in possession of firearms pose a significant threat to our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting heroin and fentanyl trafficking crimes is a top priority of this office as we continue to battle this deadly epidemic. We are committed to our mission of public safety and will continue to aggressively pursue those who choose to endanger the safety of the communities we serve.”
According to court documents, Mervin Turner, 37, distributed heroin and fentanyl to a confidential source from his Henrico County residence on two separate occasions in 2018. On August 28, 2018, law enforcement executed a search warrant at Turner’s residence and recovered a semi-automatic pistol loaded with a 100-round drum magazine, more than 200 grams of heroin, two stand-up shop presses used to package heroin, marijuana, digital scales, and more than $9000.
Turner pleaded guilty to possession with the intent to distribute 100 grams or more of heroin. Turner faces a mandatory minimum of 5 years in prison and maximum penalty of 40 years in prison when sentenced on June 10. 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.
Operation California Dreamin was investigated as part of the Organized Crime and 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. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and William C. Smith, Interim Chief of Richmond Police, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorneys Erik S. Siebert and Kenneth Simon are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-158.
Connecticut Medical Equipment Supplier Pays $467K to Settle Allegations under the False Claims ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that Med Tech, LLC, and its owner Thomas Macre, Sr., have entered into a civil settlement agreement with the federal and state governments and have agreed to pay more than $467,000 to resolve allegations that they violated the federal and state False Claims Acts.
Med Tech is a Durable Medical Equipment Supplier in Orange, Connecticut. Med Tech is enrolled as a provider in the Connecticut Medical Assistance Program (“CMAP”), which includes the state’s Medicaid program. Thomas Macre, Sr. owns and operates Med Tech. It is alleged that Med Tech and Macre billed Medicaid for back braces and electrical stimulation unit supplies that were not provided and/or were not medically necessary. To resolve the allegations under the federal and state False Claims Acts, Med Tech and Macre have agreed to pay $467,090 in order to reimburse the Medicaid program, which covers conduct occurring from January 1, 2011 to June 1, 2017.
“Medical equipment suppliers must bill Medicaid accurately, and we will continue to work with our federal and state partners to protect the integrity of all federal healthcare programs,” said U.S. Attorney Durham.
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim.
This matter was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Antonia Conti of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Cohoes Man Pleads Guilty to Conspiring to Steal Political Campaign ContributionsRead the Press Release
ALBANY, NEW YORK – Ralph V. Signoracci, IV, age 44, of Cohoes, New York, pled guilty today to conspiring with Cohoes Mayor Shawn Morse to defraud Morse’s supporters by stealing campaign contributions for Morse’s personal benefit.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Signoracci, while a member of the City of Cohoes Common Council and then an Albany County Legislator, served as treasurer of a political committee called “Friends of Shawn Morse,” from approximately November 2013 through January 2019. He also served as treasurer of the political action committee “The Chairman’s PAC.”
In pleading guilty, Signoracci admitted that he and Morse solicited and received contributions to the committees. Signoracci, at Morse’s direction, withdrew funds from the committees’ bank accounts so that Morse could use the funds to pay for his personal expenses, including vacations, entertaining, dining, and home repairs. Signoracci also admitted to illegally using contributions made to The Chairman’s PAC to directly benefit Morse’s 2015 mayoral campaign.
Signoracci admitted that on behalf of Morse, he concealed the nature of these expenditures by falsely reporting the purpose of the expenditures or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office.
Signoracci pled guilty to one count of conspiring to commit wire fraud, and faces up to 20 years in prison, a term of post-release supervision of up to 3 years, and a fine of up to $250,000, when he is sentenced by Senior United States District Judge Thomas J. McAvoy. 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.
Morse was arraigned on February 28 on an indictment charging him with one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of making a false statement to the FBI. The charges against Morse are merely accusations, and he is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Megan Kinsella Kistler.
Clinton Man Sentenced for $4.7 Million Cattle Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Clinton, Mo., man has been sentenced in federal court for a $4.7 million investment fraud scheme in which he defrauded 92 investors who believed they were purchasing cattle for resale at a profit.
Cameron J. Hager, 43, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, March 5, 2019, to eight years in federal prison without parole. The court also ordered Hager to pay $3,236,547 in restitution to the victims of his crime.
Hager pleaded guilty on June 26, 2018, to one count of wire fraud and one count of money laundering.
Hager, who operated 5A Holdings, LLC, admitted that he engaged in the fraud scheme from July 2015 to September 2017. Hager solicited victims to invest in a “cattle fund” that was used to purchase herds of cattle to be sold later at a substantial profit, although he never actually purchased or intended to purchase any cattle.
Hager received $4.7 million dollars from 92 investors, with investment amounts from $1,000 to $267,000. After taking into account money repaid to investors during the course of the scheme, and money paid to investors by Hager after the scheme was exposed, the total loss amount is $3,236,547.
Hager deposited $394,074 into his business bank account. He also used the proceeds of the scheme, among other things, to make substantial payments on the mortgage of his 46.6-acre residential property and to purchase a Ford F-150 pickup truck, a Toyota 4Runner, and two Winnebago travel trailers. All of Hager’s interest in that property has been forfeited to the government.
Hager convinced his victims that he was locating herds of cattle that farmers in distress needed to sell. He told them he would use investor funds to buy such herds, then transport the cattle to pastures/feed lots owned by himself or his company, 5A Holdings, where the cattle would be cared for, fattened, and eventually sold to slaughterhouses where Hager had “contacts.” Hager consistently represented that these transactions would produce a net “return” of from 23 to 28 percent on each investment. Hager paid an individual to pose as a veterinarian when at least one investor traveled to Missouri to inspect the cattle herds.
Investors filed complaints with the Missouri Secretary of State’s Securities Division, and that office opened an investigation. Hager sent the Securities Division a written response to the allegations of fraud; in that response he admitted that there were no cattle and that he had made false representations to investors.
The wire fraud charge relates to e-mails sent by Hager to a victim investor. The money laundering charge relates to Hager’s withdrawal of $21,500 from his business bank account to purchase a Ford F-150 pickup truck. The FBI determined that the money withdrawn by Hager for this transaction was derived from his wire fraud scheme.
This case was prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Assistant U.S. Attorney Thomas M. Larson. Assistant U.S. Attorney Stacey Perkins Rock is handling the forfeiture. This case was investigated by the FBI and the Missouri Secretary of State, Securities Division.
Citizen of Mexico Convicted of Reentry after DeportationRead the Press Release
CONCORD, N.H. – United States Attorney Scott W. Murray announced that a federal jury found Eleazar Flores-Mora, 32, a citizen of Mexico, guilty of reentering the United States after deportation. The verdict was returned on Wednesday, March 6, 2019.
According to trial exhibits and witness testimony during the two-day jury trial, Eleazar Flores-Mora, a citizen of Mexico was originally encountered in Manchester, New Hampshire in September of 2009 by agents with the Department of Homeland Security who were investigating persons believed to be in the county illegally. Flores-Mora was subsequently found by an Immigration Court to be present in the United States illegally and was deported from the United States in March, 2013. Flores-Mora was arrested by U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations Officers when they encountered him in Manchester again on August 28, 2018.
Flores-Mora was convicted of one count of reentry after deportation. He is scheduled to be sentenced on June 17, 2019 and is likely to be deported from the United States after serving his sentence.
“In order to protect the integrity of the immigration system, those who enter the United States illegally after previously being deported are subject to prosecution,” said U.S. Attorney Murray.
“We’re very pleased that justice has been done in this case,” said Todd M. Lyons, Acting Field Office Director, U.S. Immigration and Customs Enforcement’s (ICE), Enforcement and Removal Operations (ERO) for the Boston area of responsibility. “Illegally re-entering the U.S. after having been removed previously is a serious violation of federal law. We appreciate the U.S. Attorney’s strong commitment to prosecuting those who would continue to disrespect U.S. immigration law and the rulings of U.S. immigration judges.”
This matter was investigated by the Department of Homeland Security, Immigration and Customs Enforcement. Assistance also was provided by United States Citizen and Immigration Services. The case was prosecuted by Assistant U.S. Attorney Helen W. Fitzgibbon.
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Carthage Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Michael Ringer, 49, of Carthage, Maine, pleaded guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on August 17, 2018, the Wilton Police Department responded to the scene of a 911 call regarding a threatening with a firearm and shots fired report. Officers learned that Ringer, a convicted felon, was intoxicated and had gotten into an argument at a social gathering. Several individuals at the gathering had seen the defendant with a handgun. By the time officers arrived, the defendant had left. The following day, officers found the defendant at his home. A subsequent search of the defendant’s residence resulted in the seizure of a pistol belonging to the defendant.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Wilton Police Department.
Bronx Gang Member Convicted of Racketeering and Related Offenses, Including 2014 Shooting of Three IndividualsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER HOWARD, a/k/a “Juju,” a member of a violent, Bronx-based street gang known as “Money, Bitches, Guns” (“MBG”), was convicted yesterday of racketeering conspiracy, assault with a deadly weapon in aid of racketeering, and a firearms offense. HOWARD was convicted following a one-week trial before U.S. District Judge Robert W. Sweet.
U.S. Attorney Geoffrey S. Berman said: “Christopher Howard was a member of a violent street gang that operated in and around NYCHA’s Mill Brook Houses. In August 2014, he shot into a crowd of people in the Mill Brook Houses, injuring three individuals. Now he stands convicted for his crimes. We thank the New York City Police Department and the Drug Enforcement Administration for their tireless efforts to secure this important conviction.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
From 2007 through October 2017, HOWARD was a member of MBG, a local street gang based in the Mill Brook Houses in the Bronx that was responsible for narcotics trafficking and several acts of violence. As part of his membership in MBG, Howard boasted about his gang membership on social media and shot at a rival gang member. Specifically, in the early morning hours of August 17, 2014, HOWARD, aiming for a rival gang member who had previously broken HOWARD’s jaw, shot into a crowd of people gathering in a small courtyard in the Mill Brook Houses. Three people were injured as a result of the shooting, including HOWARD’s intended target.
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HOWARD, 26, of the Staten Island, New York, faces a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison.
Mr. Berman praised the outstanding investigative work of the New York City Police Department and the Drug Enforcement Administration.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Alexandra Rothman, Christopher Clore, and Jordan Estes are in charge of the prosecution.
Bluefield Brothers Sentenced to Federal Prison for Drug and Gun ChargesRead the Press Release
BLUEFIELD, W.Va. – Two brothers from Bluefield were sentenced today to federal prison for their roles in federal drug and gun charges, announced United States Attorney Mike Stuart. Tyquon Freeman, 21, of Bluefield, West Virginia, was sentenced to 81 months in federal prison. Tykeem Freeman, 25, also from Bluefield, was sentenced to federal prison for 70 months. Stuart commended the investigative efforts of the Southern Regional Drug and Violent Crime Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“These brothers, just 21 and 25 years old, were both already convicted felons and on parole when caught up in criminal activity again last year,” said United States Attorney Mike Stuart. “The Freemans are the type of defendants we are prosecuting under our Project Safe Neighborhoods initiative in an effort to remove the most chronic violent offenders from our communities.”
Tyquon Freeman previously entered a guilty pleas to possession with intent to distribute less than 50 kilograms of marijuana and possession of a firearm in furtherance of a drug trafficking crime. Tyquon Freeman previously admitted that on two separate dates in April, 2018, he sold marijuana to a confidential informant working with the Southern Regional Drug and Violent Crime Task Force. On April 19, 2018, agents with the Southern Regional Drug and Violent Crime Task Force and ATF executed a search warrant at Freeman’s house in Bluefield, West Virginia, where the prior drug transactions had occurred. When the agents entered the residence, they found approximately ten pounds of marijuana, some of which Freeman admitted he intended to distribute in exchange for money. Officers also found three firearms. Tyquon Freeman also admitted that he acquired one of the firearms to protect his drugs and drug proceeds, even though he knew he was prohibited from possessing any firearms because he was a convicted felon. Freeman further admitted that at the time he committed this offense, he was still on parole out of the state of Virginia. Freeman was prohibited from possessing any firearm under federal law because of a 2017 drug-related felony conviction in Tazewell County, Virginia.
Tykeem Freeman previously entered a guilty plea to being a felon in possession of a firearm. During the plea hearing, Tykeem Freeman admitted that on April 19, 2018, agents with the Southern Regional Drug and Violent Crime Task Force and ATF executed a search warrant at the house he was living in with his brother. When the agents entered the residence, Freeman was in possession of a Ruger, LCP .380 semi-automatic pistol. He also admitted that he attempted to hide the pistol from law enforcement officers because he knew he was not supposed to possess any firearms because he was a convicted felon. He further admitted that at the time he committed this offense, he also was on parole out of the state of Virginia. Tykeem Freeman was prohibited from possessing any firearm under federal law because he was previously convicted of a drug-related felony in Tazewell County, Virginia, in 2016.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. Senior United States District Judge David A. Faber imposed the sentences.
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. The United States Attorney General reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Beloit Man Sentenced to 6 Months for Social Security FraudRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Gregory Whitt, 63, Beloit, Wisconsin, was sentenced yesterday by U.S. District Judge James D. Peterson to six months in prison for Social Security fraud. Whitt pleaded guilty to this charge on October 17, 2018.
Whitt began receiving Social Security benefits in June of 2011 after claiming an inability to work due to physical and mental health issues. However, the investigation revealed that the defendant, while collecting Social Security payments, worked full-time as a dump truck driver in Beloit until 2017. During this time, Whitt insisted that his employers pay him in cash so he could continue to receive Social Security payments. As a result of his fraudulent conduct, Whitt received $118,602 in Social Security benefits to which he was not entitled.
In imposing the six-month prison sentence, Judge Peterson noted that Whitt’s fraud lasted over six years and involved a significant amount of money. Judge Peterson stated that Whitt knowingly cheated the system and was disappointed that Whitt made false statements to investigating agents when initially confronted with his crime.
The charges against Whitt are the result of an investigation by the Social Security Administration - Office of the Inspector General and the Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of this case has been handled by Assistant U.S. Attorney Aaron D. Wegner.
Bandidos Outlaw Motorcycle Member Arrested for Retaliating Against an InformantRead the Press Release
This morning, federal authorities arrested Albert DeLeon for his alleged role in threatening to harm a government informant, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will R. Glaspy, Houston Division; and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment, unsealed today, charges San Antonio resident Albert DeLeon, 45, with one count of retaliating against an informant.
According to the indictment, on or about February 22, 2019, DeLeon, a member of the Bandidos Outlaw Motorcycle Organization (OMO), approached an individual and threatened to harm the individual in retaliation for the individual providing information and evidence relating to the criminal activities of the Bandidos, including information provided in the case of United States v. John Portillo, Jeffrey Pike, et. al.
“The arrest of Albert Deleon sends a strong and unified message that the mere intimidation and threating of a Government witness will not be endured and those who commit these offenses will rightfully be brought to justice,” stated Will R. Glaspy, Special Agent in Charge, DEA.
“Unlawful coercion, intimidation or threats against an individual, who cooperates with or testifies on behalf of the Government, will not be tolerated,” stated Christopher Combs, Special Agent in Charge, FBI.
DeLeon appeared this afternoon before United States Magistrate Judge Elizabeth S. Chestney and remains in federal custody. Upon conviction, DeLeon faces up to 20 years in federal prison.
On May 17, 2018, after a nearly three-month trial, jurors convicted Pike, the National President of the Bandidos, and Portillo, the National Vice President, of wide-ranging criminal activity, including conspiring to to conduct the affairs of a criminal organization through racketeering acts including directing, sanctioning, approving and permitting members of the Bandidos to commit murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking.
Evidence during trial revealed that in 2006, Pike and Portillo ordered other Bandidos members to murder Anthony Benesh. At the time, Benesh was attempting to start a Texas Chapter of the Hell’s Angels Outlaw Motorcycle Organization in Austin. Members of the Bandidos warned Benesh to cease his activities and recruitment, which Benesh ignored. Several Bandido members then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandido enterprise.
Jurors also found that Portillo and others killed Robert Lara in January 2002 in Atascosa County as payback for killing Bandido member Javier Negrete. Negrete, a member of the same Bandido chapter as Portillo, was killed outside a San Antonio bar in October 2001.
Jurors also found that Pike, Portillo and others conspired to murder and assault members and associates of the Cossacks Outlaw Motorcycle Organization (Cossacks). Testimony revealed that Portillo, with Pike’s approval, declared that the Bandidos were “at war” with the Cossacks. A number of violent acts were committed by the Bandidos around Texas in furtherance of this “war,” including in Fort Worth, Gordon, Odessa, Port Aransas, Crystal City and elsewhere.
Testimony also revealed that Portillo and other members of the Bandidos were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandido members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.
In September 2018, Portillo and Pike were each sentenced to life in federal prison.
This investigation is being conducted by the DEA and FBI together with the New Braunfels Police Department, San Antonio Police Department, Texas Department of Public Safety, Terrell Hills Police Department, and Bexar County District Attorney’s Office.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Baltimore Man Pleads Guilty to Committing a Carjacking at GunpointRead the Press Release
Baltimore, Maryland – Jonathan Thompson, age 25, of Baltimore, Maryland, pleaded guilty today to carjacking and to brandishing a firearm in furtherance of a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Acting Commissioner Michael Harrison of the Baltimore Police Department.
“Criminals who are not deterred from carrying guns by the threat of prison time can be deterred by the reality of years spent in a federal prison with no parole - ever,” said U.S. Attorney Robert K. Hur. “Police and prosecutors are working to identify and prosecute armed criminals to make our communities safer.”
According to his guilty plea, the victim was sitting in her vehicle at the intersection of Ednor and Lakeside Avenues in Baltimore. Thompson approached the vehicle and ordered the victim out of the vehicle at gunpoint. Thompson then got into the driver’s side of the vehicle and co-defendant Dominique Chase got into the passenger side of the vehicle and Thompson drove away. Several minutes later Thompson and Chase switched seats, and Chase continued driving away from the location.
The victim called 911, then spoke with Baltimore Police Department (BPD) officers. BPD officers located the vehicle later that day. Chase surrendered to police, but Thompson ran away and hid a loaded firearm as he ran. Several minutes later, officers located Thompson hiding behind a garbage can and arrested him. The officers also recovered the firearm that Thompson had hidden.
Thompson and the government have agreed that if the Court accepts the plea agreement, Thompson will be sentenced to 16 years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for April 25, 2019, at 2:00 p.m. Dominique Chase, age 25, of Baltimore, previously pleaded guilty to carjacking. Chase faces a maximum of 15 years in federal prison. Both defendants remain detained.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Anatoly Smolkin, who are prosecuting the case.
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Arizona Man Sentenced to Prison for Attempting to Steal Greene County Company Client InformationRead the Press Release
DAYTON – Christopher Paul Murphy, 68, of Golden Valley, Ariz., was sentenced in U.S. District Court to 12 months and one day in prison for intentionally accessing a protected computer without authorization.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down yesterday evening by U.S. District Judge Walter H. Rice.
According to the statement of facts in this case, Murphy, who pleaded guilty in November 2017, intentionally attempted to access a protected computer system in October 2017 without authorization in an effort to gain information for his own private commercial gain.
Murphy planned to obtain client information of customers of National BiWeekly Mortgage Administration, Inc. (NBA) in Xenia. Murphy wanted to use the information to solicit customers to his own similar business.
The defendant attempted to obtain the information by causing an email containing malware to be sent to an NBA employee. He also provided a thumb drive to an NBA employee and directed that, in the event the malware failed, the employee should download the company’s client lists onto the thumb drive.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
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Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging VICTOR NAHUM PEREZ-COLINDRES, age 40, of Honduras, with illegal reentry of a deported alien.
If convicted of illegal reentry of an aggravated felon (possession of a firearm and ammunition), PEREZ-COLINDRES, previously deported and found in Nash County, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by ICE’s Enforcement and Removal Operations.
Alabama Man Indicted for Allegedly Producing Child PornographyRead the Press Release
A federal grand jury in Birmingham, Alabama returned an indictment on Feb. 27 charging an Alabama man, who was arrested earlier today, with production, distribution and receipt of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
Benjamin Eugene Walter, 38, of Decatur, Alabama, was charged by indictment with five counts of production of child pornography, one count of distribution of child pornography and one count of receipt of child pornography. Walter was arrested on March 7 pursuant to an arrest warrant issued in conjunction with the indictment.
The indictment alleges that, between Nov. 2013 and July 2014, Walter used and attempted to use five minors to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct. The indictment further alleges that Walter distributed child pornography in December 2015 and received child pornography between November 2013 and December 2015.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney R. Leann White of the Northern District of Alabama are prosecuting the case.
This investigation is a 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.justice.gov/psc.
Alabama Man Indicted for Allegedly Producing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury returned an indictment on Feb. 27 charging an Alabama man, who was arrested earlier today, with production, distribution and receipt of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
Benjamin Eugene Walter, 38, of Decatur, Alabama, was charged by indictment with five counts of production of child pornography, one count of distribution of child pornography and one count of receipt of child pornography. Walter was arrested on March 7 pursuant to an arrest warrant issued in conjunction with the indictment.
The indictment alleges that, between Nov. 2013 and July 2014, Walter used and attempted to use five minors to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct. The indictment further alleges that Walter distributed child pornography in December 2015 and received child pornography between November 2013 and December 2015.
This investigation is a 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.justice.gov/psc.
The FBI is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney R. Leann White are prosecuting the case.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Adrian Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Adrian, Mo., man who led law enforcement officers on a high-speed pursuit after shooting at another person has been sentenced in federal court for illegally possessing a firearm.
Christopher Good, 32, was sentenced by U.S. District Judge Gary A. Fenner on Wednesday, March 6, 2019, to nine years in federal prison without parole.
On Sept. 19, 2018, Good pleaded guilty to being a felon in possession of a firearm. Good admitted that he was in possession of a Taurus 9mm semi-automatic pistol on Feb. 27, 2018. Good acquired the firearm by taking it from a friend without the friend’s permission. Good engaged in a domestic dispute the same day, which ended with him driving away from a residence with a relative following him in another vehicle. Good fired gunshots at the relative, striking the vehicle the relative was driving.
Law enforcement officers tried to stop Good, but he led them on a vehicle pursuit that exceeded speeds of 90 miles per hour. Good twice avoided tire-deflation devices that the officers had positioned on the route. When officers stopped Good’s vehicle by using a special swerving maneuver, he resisted arrest by struggling with the officers. Officers subdued him by using a Taser.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Good has two prior felony convictions for assault.
This case was prosecuted by Assistant U.S. Attorney David Raskin. It was investigated by the Bates County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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 Missouri. 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. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.A Monongalia County man sentenced for firearms conspiracy chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Anderson, of Morgantown, West Virginia, was sentenced today to 27 months incarceration for his role in a firearms conspiracy yesterday, United States Attorney Bill Powell announced.
Anderson, age 36, pled guilty to one count of “Conspiracy to Violate Federal Firearms Laws” in August 2018. Anderson admitted to working with others to make false statements to purchase firearms from May to June 2017 in Morgantown.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
7 Defendants Charged in White Plains Federal Court with Participating in A Jamaican Lottery Scheme ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced charges today against seven individuals in fraud and money laundering conspiracies dating from July 2017 through September 2018. LINKOY BENNETT, RENNEIL WILLIAMS, DWAYNE BORELAND, TIFFANY RANDOLPH, and OSHANE ROYE, and their associates allegedly engaged in a scheme to defraud elderly victims by telling them they won the Publishers Clearing House Sweepstakes, but needed to prepay their taxes to obtain their winnings. BENNETT, WILLIAMS, BORELAND, and RANDOLPH, as well as FABIAN ROBINSON, and HARRIANN MITCHELL, were also charged in a money laundering conspiracy related to the fraudulent scheme. Seven defendants were arrested in the Southern District of New York and will be presented today before United States Magistrate Judge Paul E. Davison.
U.S. Attorney Geoffrey S. Berman said: “These seven defendants allegedly engaged in the scheme to contact elderly victims under the guise of winning a sweepstakes, imploring them to prepay taxes on their ‘winnings’ before they could collect. In reality, this was a coldhearted scheme to bilk over $1 million from over 30 victims. Linkoy Bennet and his co-defendants played the lottery with the law and their luck has run out, as they now face up to 20 years in federal prison.”
FBI Assistant Director in Charge William F. Sweeney Jr. said: “Unfortunately, many elderly citizens find themselves in less than desirable financial situations, creating within them a constant worry about money. This is one of the many reasons they’re targeted by criminals as attractive victims. Crimes like the one our defendants are charged with today not only provide false hope for their prey, but have the potential to inflict severe emotional wounds. An important step in avoiding being victimized is educating the public about the many scams targeting the elderly. If you believe you are a victim of fraud, or know a senior who may be, regardless of financial loss, immediately report the incident to your local FBI field office or law enforcement agency.”
According to the allegations in the Complaint unsealed today:[1]
From at least in or about July 2017 through in or about September 2018, LINKOY BENNETT, RENNEIL WILLIAMS, DWAYNE BORELAND, TIFFANY RANDOLPH, OSHANE ROYE, FABIAN ROBINSON, and HARRIANN MITCHELL, collected the proceeds of a fraudulent scheme. During the scheme, unnamed co-conspirators called elderly victims throughout the United States, and falsely told the victims they won the Publishers Clearing House Sweepstakes, but needed to prepay taxes and fees to receive their winnings. The victims sent cash, postal money orders, wire transfers, personal and cashier’s checks to the defendants at various addresses in the Southern District of New York. The defendants collected the proceeds of the scheme, and remitted them to an unnamed co-conspirator.
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BENNETT, 22, of the Bronx, New York, WILLIAMS, 32, of the Bronx, New York, BORELAND, 37, of the Bronx, New York, RANDOLPH, 30, of White Plains, New York, and ROYE, 23, of the Bronx, New York, are each charged with one count of conspiracy to commit wire fraud and mail fraud. BENNETT, WILLIAMS, BORELAND, and RANDOLPH, as well as FABIAN ROBINSON, 33, of the Bronx, New York, and HARRIANN MITCHELL, 38, of the Bronx, New York, are charged with a conspiracy launder the proceeds of the scheme. Each charge carries a maximum penalty of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Lindsey Keenan is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
32-Year-Old Memphis Man Sentenced to 20 Years for Distributing a Lethal Dose of FentanylRead the Press Release
Memphis, TN – A local man has been sentenced to 20 years in federal prison for distributing a lethal dose of fentanyl resulting in a fatal overdose. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on October 10, 2016 the body of Zachary Rutherford, 21, was discovered outside the Valero gas station located on Shelby Drive. The cause of death was a fentanyl overdose. The source of this lethal dose of fentanyl was Cortez Armstrong, 32. On June 29, 2017, Armstrong was indicted and charged with distribution of fentanyl resulting in death. He pleaded guilty on September 21, 2018.
What is fentanyl? Fentanyl is a synthetic opioid and a Schedule II substance under the Controlled Substance Act which is fifty times more potent than heroin and one hundred times more so than morphine. Fentanyl has undoubtedly contributed to the sharp increase in opioid deaths both nationally and locally. Because of the rise in deaths associated with the introduction of this narcotic into the drug market, the Department of Justice and this District have taken an aggressive approach in identifying distributors, especially those whose distribution results in death.
U.S. Attorney D. Michael Dunavant said, "Our nation, state, and district are suffering from the opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing families and communities apart. The U.S. Attorney’s Office has developed a district-specific strategy to prioritize and aggressively prosecute cases involving fentanyl distribution causing overdose deaths, and this case demonstrates the significant penalty that we will use to hold dealers accountable and deter others from selling poison to our citizens. We commend the outstanding investigative work of our federal, state, and local law enforcement partners, and we hope this sentence will achieve some measure of justice for the Rutherford family."
On March 6, 2019, United States District Court Judge Thomas L. Parker sentenced Armstrong to the mandatory minimum sentence of 20 years imprisonment.
This case was investigated by the Drug Enforcement Administration, the Memphis Police Department Organized Crime Unit, and the Tennessee Bureau of Investigation.
This case was prosecuted by Assistant United States Attorney Michelle Kimbril-Parks and Special Assistant United States Attorney Joseph Griffith.
Wednesday 6 March 2019
Whiteriver Man Sentenced to Prison for Abusing InfantRead the Press Release
PHOENIX – Yesterday, Michael Joe, 33, of Whiteriver, Ariz., was sentenced by U.S. District Judge David G. Campbell to five years in prison followed by three years of supervised release. Joe had previously pleaded guilty to assault resulting in serious bodily injury.
Joe acted as the primary caretaker for a nine-month-old, developmentally disabled baby. He admitted to injuring the baby by squeezing the baby’s torso until he heard the baby groan and then stop breathing. The baby suffered broken ribs as a result. Judge Campbell increased Joe’s sentence due to other documented injuries to the baby, and because it was necessary to fairly represent the seriousness of this crime, which he described as a “case of severe child abuse.” The incident occurred on the Fort Apache Indian Reservation, and Joe is a member of the White Mountain Apache Tribe.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine D. Keller and Anthony W. Church, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8016-PCT-DGC
RELEASE NUMBER: 2019-026_Joe
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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.
Webster Man Sentenced for Government TheftRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in federal court in Worcester for stealing more than $230,000 in government benefits.
David Brunell, 57, was sentenced by U.S. District Court Judge Timothy S. Hillman to three years of supervised release, with the first 60 days to be spent in a residential re-entry center, followed by three months of home confinement, and ordered to pay $234,177 in restitution. Brunell pleaded guilty in September 2018 to one count of theft of government money.
Between June 2000 and June 2017, the Social Security Administration deposited approximately $234,000 in retirement benefits intended for Brunell’s father into a bank account controlled by Brunell after Brunell’s father had died. Brunell used the funds for various personal expenditures, such as mortgage payments.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.
U.S. Attorney's Office & FBI to Announce Initiative Targeting Elder Financial FraudRead the Press Release
****** MEDIA ADVISORY *******
CHARLOTTE, NC. – March 3-9 is National Consumer Protection Week. The U.S. Attorney’s Office and the FBI will host a press conference on Thursday, March 7, 2019, to announce an initiative focusing on elder financial fraud. With financial scams targeting the elderly on the rise in North Carolina, federal prosecutors and law enforcement are increasing their efforts to combat financial schemes that victimize older Americans, by expanding their response to criminal and civil violations and raising public awareness.
WHO: Andrew Murray, United States Attorney
Western District of North Carolina
John Strong, Special Agent in Charge
Federal Bureau of Investigation
Lara Cole, Associate State Director, Charlotte Region
AARP – North Carolina
WHAT: Press Conference
WHEN: Thursday, March 7, 2019 at 11:15 A.M.
WHERE: U.S. Attorney’s Office
227 West Trade Street, Ste. 1650
Charlotte, NC 28202
OPEN PRESS - Camera preset: 11:00 a.m.
NOTE: Media may begin arriving at 10:30 am and be here no later than 11:10 a.m. Allow time for security check-in, x-ray of equipment, and set up. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media must check in at the building’s security desk for an escort to the U.S. Attorney’s Office. Direct press inquiries to Lia Bantavani at [email protected] or 704-338-3140.
NOT FOR RELEASE OR PUBLICATION - FOR PLANNING PURPOSES ONLY
Two former Department of Defense employees sentenced for embezzlement chargesRead the Press Release
ELKINS, WEST VIRGINIA – Sergeant First Class Shane Morgan with the West Virginia Army National Guard and Master Sergeant (retired) Russell Morgan were sentenced today for charges related to the embezzlement and unlawful sale of government property, United States Attorney Bill Powell announced.
Shane Morgan, age 35, of Buckhannon, West Virginia, and Russell Morgan, age 61, of Helvetia, West Virginia, were each sentenced to four years probation. Each pled guilty to one count of “Conspiracy to Embezzle Government Property” in September 2018. The two men admitted to stealing at least 80 items of United States government property worth an estimated total of more than $80,000. The men obtained access to this property through their official positions at the United States Property and Fiscal Office warehouse in Buckhannon. The crimes took place from August 2010 to October 2017 in Upshur County.
Shane and Russell Morgan were ordered to pay restitution in the amount of $11,614.45.
Assistant U.S. Attorney Andrew R. Cogar is prosecuted the cases on behalf of the government. The West Virginia Army National Guard and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.