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11 April 2019
Man Sentenced for Assaulting Customs and Border Protection Officer at Orlando International AirportRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced John Craig Myrick (67, Groveland) to seven years and three months in federal prison for forcible assaulting a federal officer causing bodily injury. Myrick was convicted following a two-day jury trial on January 8, 2019.
According to testimony and evidence presented at trial, on August 11, 2018, Myrick arrived at the Orlando International Airport from Bogota, Colombia. While passing through the screening area, a Customs and Border Protection officer (CBPO) directed Myrick to the baggage control seating area. While in the seating area, Myrick had an altercation with another CBPO who attempted to control Myrick by grabbing Myrick’s arm. Myrick resisted, fell on top of the CBPO, and began punching the officer in the back of the head several times. The CBPO suffered a fractured ankle in the process.
“This case emphasizes zero tolerance for violence against law enforcement,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “Thanks to our law enforcement partners, including U.S. Customs and Border Protection, this man will be held accountable for his actions.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It was prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, ICE, and Assistant United States Attorney E. Jackson Boggs.
Longtown Man Pleads Guilty to Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sidney Charles Shannon, age 35, entered a guilty plea to Felon In Possession Of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both. However, if the court deems the defendant to be an Armed Career Criminal, the offense is punishable by not less than 15 years imprisonment.
The Indictment alleges that on or about October 30, 2018, within the Eastern District of Oklahoma, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition, to-wit: Eight (8) rounds of Precision Made Cartridges (PMC) brand 9mm Luger caliber ammunition, which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the District 18 Drug and Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Lehighton Man Charged with Racist Internet ThreatsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Corbin Kauffman, age 30, of Lehighton, Pennsylvania, was charged by a criminal complaint on April 1, 2019, with interstate transmission of threats to injure the person of another.
According to United States Attorney David J. Freed, the complaint alleges that Kauffman posted threatening images and messages on a website called Minds.com on March 7, 2019. It further alleges that Kauffman used various aliases online to post hundreds of anti-semitic, anti-black, and anti-Muslim messages, images, and videos. Several of these posts included threats to various religious and racial groups, and one included a digitally created image of Kauffman aiming an AR-15 rifle at a congregation of praying Jewish men. Other posts allegedly expressed a desire to commit genocide and “hate crimes,” and called for or depicted images of the killing of Jewish people, black people, and Muslim people.
Kauffman also posted pictures of acts of vandalism he committed, including anti-semitic graffiti at a public park, and the defacement of a display case at the Chabad Jewish Center in Ocean City, Maryland with white supremacist and anti-semitic stickers.
“Pennsylvanians know all too well how dangerous these kinds of white supremacist threats can be,” said U.S. Attorney Freed. “The last thing we want is to see another tragedy like we saw at Tree of Life Synagogue in Pittsburgh, or at Al Noor Mosque in Christchurch, or at Emmanual African Methodist Episcopal Church in Charleston. We don’t know what might have happened, but we take these threats seriously, and I commend the FBI for their vigilance and quick action in this case.”
“If someone makes violent threats, we’re going to take them at their word and investigate accordingly,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “While the FBI does not and will not police ideology, we stand ready to intervene whenever threatening language crosses the line into illegal activity. As always, protecting the public is our highest priority.”
The case is being investigated by the U.S. Federal Bureau of Investigation. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment for each violation, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lehigh Acres Man Sentenced for Theft of Government Money and Identity Theft CrimesRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Kenneth R. Jackson, Jr. (42, Lehigh Acres) to six years and three months in federal prison for identity theft, conversion of government property, aggravated identity theft, passing a forged treasury check, and access device (credit card) fraud. As part of his sentence, the court also entered a money judgment of $71,931.87, the proceeds obtained from the charged criminal conduct. Jackson was also ordered to pay $99,230.90 in restitution to three banks.
Jackson had been found guilty by a jury on December 21, 2018.
According to testimony and evidence presented during the five-day trial, Jackson operated a business that allowed him full access to credit reports. He used his business to unlawfully obtain credit reports on his victims and opened fraudulent online bank accounts in their names. Jackson then deposited approximately $115,000 in stolen U.S. Treasury tax refund checks into the fraudulent accounts. He used associates to launder the money or directly withdrew cash from ATMs at the banks.
“We have come a long way in combatting the scourge of identity theft in Florida,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Today’s sentencing should pose as yet another warning to would-be crooks that stealing someone’s identity is a serious crime that IRS Criminal Investigation will not tolerate. We will continue to work together with our law enforcement partners to track down identity thieves. We will continue to fight for the victims. We will continue to put offenders behind bars.”
This case was investigated by the Internal Revenue Service - Criminal Investigation and the U.S. Secret Service. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
KC Man Sentenced to 17 Years for Heroin TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin.
Scheronn Scott, 53, was sentenced by U.S. District Judge Greg Kays on Wednesday, April 10, to 17 years and one month in federal prison without parole. The court also ordered Scott to forfeit to the government $25,000, which represents the proceeds of illegal drug trafficking.
On June 25, 2018, Scott pleaded guilty to participating in a conspiracy to distribute heroin, to distributing heroin, and to using a cell phone to facilitate illegal drug trafficking.
Scott participated in the conspiracy to distribute heroin from October 2012 to September 2016. Scott admitted that he sold heroin to an undercover agent on numerous occasions. Additionally, two confidential sources stated they purchased approximately 260 grams of heroin from Scott over a two and one-half year period.
Scott has 26 adult criminal convictions, five of which are felony convictions with the remaining being misdemeanor convictions. The five felony convictions are all drug-related offenses.
Scott is one of five defendants who have pleaded guilty in this case, four of whom have been sentenced.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Justice Department observes national crime victims’ rights week with events throughout the countryRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia joins the Department of Justice in observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
“During National Crime Victim’s Rights Week we honor all victims of a crime, even those that many people view as victimless such as drug trafficking crimes,” said U.S. Attorney Byung J. “BJay” Pak. “This crime is far from victimless. We have lost thousands of fellow Georgians to drug overdoses – particularly from opioids. Moreover, an untold number of our families, friends or neighbors and their loved ones in the form of financial and emotional toll suffer from the destructive cycle of drug addiction.”
Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the Northern District of Georgia Victim Witness Program at (404) 581-6000.
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.
Justice Department Observes National Crime Victims’ Rights Week with Events throughout the Country, Including ArizonaRead the Press Release
PHOENIX – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the District of Arizona hosted its annual Service Award Ceremony today to recognize individuals who have performed exceptional service on behalf of crime victims. This year’s theme for National Crime Victims’ Rights Week is “Honoring Our Past. Creating Hope for the Future.”
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime. Since then, every year in April, the Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by organizing events to highlight the rights of victims in our legal system and to honor those who advocate on their behalf.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“Our office is deeply committed to ensuring that all crime victims are accorded their rights under the Crime Victims’ Rights Act, they are protected from further harm, and they receive the support and assistance necessary for recovery,” stated First Assistant United States Attorney Elizabeth A. Strange. “We honor all of our law enforcement partners who work with us every day to protect our communities and, today, we specifically recognize outstanding individuals who went above and beyond the call of duty to serve victims of crime or to advocate on their behalf.”
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victims’ Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, District of Arizona Victim Witness Program at 602-514-7500.
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RELEASE NUMBER: 2019-043_NVRW
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
BOISE – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the United States Attorney’s Office for the District of Idaho is participating in a community awareness project, Evening of Awareness, hosted by the Advocates Against Family Violence. The public event will be held at Indian Creek Plaza in Caldwell on Saturday, April 13, 2019 from 5:00 pm – 9:00 pm. The Evening of Awareness is a free family event that will offer victim services related booths, nonprofit information booths, food trucks, speakers and entertainment. The event will close with a candlelight vigil.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
“I encourage the public to take a moment to remember and support the victims of crime,” said U.S. Attorney for the District of Idaho Bart M. Davis. “And with first-hand knowledge, I want to thank all those who work with victims. Thank you for all your heroic efforts to help the victims of crime become survivors.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Unit in Idaho at (208) 334-1211.
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Justice Department Continues Nationwide Enforcement Actions Against Dishonest Tax Return PreparersRead the Press Release
Now that tax season is in full swing, the Department of Justice reminds taxpayers to choose tax preparers carefully.
The Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, takes legal action throughout the United States, including seeking court orders to shut down tax return preparers who prepared false tax returns, and criminally prosecuting fraudulent tax return preparers to punish dishonest tax return preparers for their fraudulent activities and to protect taxpayers and government funds.
“Most tax return preparers provide competent and professional advice,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “For those tax return preparers who choose to engage in fraudulent tax return preparation the Justice Department is steadfast in its commitment to ending such tax fraud. Criminal prosecutions and civil injunction actions against dishonest tax return preparers should serve as a strong message to fraudulent tax return preparers that criminal and fraudulent conduct has serious and permanent consequences.”
During this tax season, examples of some of the criminal convictions obtained by the Tax Division include:
- On March 7, 2019, a Miami, Florida, Certified Public Accountant (CPA) was sentenced to 39 months in prison for tax evasion. Darryl Sharpton willfully evaded the payment of federal income taxes for the tax years 2004 through 2008 and 2010. He was ordered to pay $1,380,602 in restitution to the IRS.
- On March 20, 2019, a Charlotte, North Carolina, tax return preparer was sentenced to 24 months in prison for preparing income tax returns for clients that claimed false deductions and fictitious businesses in order to obtain the Earned Income Credit. Shawanda Elmore prepared approximately 500 fraudulent tax returns.
- On March 4, 2019, a federal jury convicted a New York owner of a tax return preparation business for conspiring to commit aggravated identity theft and aiding and assisting in the preparation of false tax returns. Afolabi Ajelero used the identity of others to accomplish the scheme. His co-defendant, Hakeem Bamgbala, also has been convicted and awaits sentencing on wire fraud, aggravated identity theft, and aiding and assisting in the preparation of a false tax return charges.
- On Feb. 8, 2019, a Hattiesburg, Mississippi, CPA was convicted of conspiracy to defraud the United States, aiding in the preparation of false tax returns and filing false tax returns. Carl Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. He faces sentencing on May 23, 2019.
Examples of some of this tax season’s civil injunctions obtained by the Tax Division include:
- On March 29, 2019, a federal court in Dallas, Texas, permanently enjoined Jhane Broadway, individually and doing business as Jeprofessionalz or MaxTaxPros, from preparing federal income tax returns for others. Broadway was required to mail or e-mail notice of the injunction order to all customers for whom she prepared a federal tax return or claim for refund for tax years 2015 through 2017.
- Also on March 29, 2019, a federal court in Beaumont, Texas, entered a permanent injunction against tax return preparer Sylvia Rodriguez, who is also known as Sylvia Ornelas, barring her from preparing federal tax returns for others and owning or operating a tax preparation business. The court found that Rodriguez engaged in fraudulent and deceptive conduct that substantially interfered with the administration of the tax laws.
- On March 27, 2019, a federal court in Miami, Florida, entered a permanent injunction barring Vilbrun Simon, Saintanise Agenord, Simon Accounting & Tax Services LLC, and Village Tax Multi Services from preparing federal income tax returns for others. The group is prohibited from operating, managing, or participating in any business, which prepares tax returns.
In the past decade, the Tax Division has obtained convictions and injunctions against hundreds of unscrupulous return preparers. Information about these cases is available on the Justice Department’s website. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
The Justice Department reminds taxpayers that they could still be responsible for any unpaid taxes, penalties, and interest, resulting from errors made on their returns.
Tax return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
Justice Department Awards $9.4 Million to Support Native American Crime Victims in Eight StatesRead the Press Release
Washington -- United States Attorney Halsey B. Frank joined the Department of Justice’s Office of Justice Programs (OJP) in announcing the award of $9.4 million to support crime victims in Native American communities in eight states: Alaska, California, Maine, Michigan, New Mexico, New York, Oklahoma and Washington. The group of 16 awards is the fourth in a series of grants being made by the Department’s Office for Victims of Crime (OVC) to American Indian and Alaska Native communities. OVC has now awarded more than $26 million of nearly $100 million to support tribal victim service programs.
The Pleasant Point Passamaquoddy Tribe (Maine) received $328,905 to expand existing services for victims of intimate partner violence, sexual assault, dating violence, sex trafficking and stalking, as well as for elders experiencing abuse. Funding will support staff training, transportation for victims in remote areas and a contracted attorney to provide legal counsel in civil matters to elder abuse victims.
The awards—46 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services and transportation. The grants are supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments. The fund includes zero tax dollars.
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said OJP’s Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
According to OJP’s Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crime at rates far greater than the general population.
“We are hopeful that this grant will help the Pleasant Point Passamaquoddy Tribe address some of the challenges that they face in the areas of domestic violence, sexual assault and trafficking, and elder abuse, all of which are national and local priorities for the Department and our office,” said U.S. Attorney Frank.
Nearly 170 tribes are expected to receive funding this spring to help their communities support crime victims over the next three years.
“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
OJP, directed by Principal Deputy Assistant Attorney General Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Jury convicts two Romanian nationals of crimes related to their scheme to infect computers with malware in order to steal credit card and other information to sell on dark market websites, mine cryptocurrency and engage in online fraudRead the Press Release
A federal jury today convicted two Romanian nationals of 21 counts related to their scheme to infect victim computers with malware in order to steal credit card and other information to sell on dark market websites, mine cryptocurrency and engage in online auction fraud.
Bogdan Nicolescu, 36, and Radu Miclaus, 37, were convicted after a 12-day trial of conspiracy to commit wire fraud, conspiracy to traffic in counterfeit service marks, aggravated identity theft, conspiracy to commit money laundering and 12 counts each of wire fraud.
The verdict was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Justin E. Herdman of the Northern District of Ohio, and FBI Special Agent in Charge Eric B. Smith.
“The evidence at presented at trial set out an international criminal enterprise with victims around the world, including people here in Northern Ohio,” Justin Herdman said. “While they stole millions of dollars, what they thought was a veil of anonymity was no protection against law enforcement, who worked diligently to track them down and bring them to justice in an American courthouse.”
"This conviction reveals the dynamic landscape in which international criminals utilize sophisticated cyber methods to take advantage of and defraud, unsuspecting victims,” Smith said. “Despite the complexity and global character of this type of investigation, this judgment demonstrates the commitment by the FBI and our partners to aggressively pursue the individuals responsible, anywhere in the world, and bring them to justice.”
According to testimony at trial and court documents, Nicolescu, Miclaus, and a co-conspirator who pleaded guilty, collectively operated a criminal conspiracy from Bucharest, Romania. It began in 2007 with the development of proprietary malware, which they disseminated through malicious emails purporting to be legitimate from such entities as Western Union, Norton AntiVirus and the IRS. When recipients clicked on an attached file, the malware was surreptitiously installed onto their computer.
This malware harvested email addresses from the infected computer, such as from contact lists or email accounts, and then sent malicious emails to these harvested email addresses. The defendants infected and controlled more than 400,000 individual computers, primarily in the United States.
Controlling these computers allowed the defendants to harvest personal information, such as credit card information, user names and passwords. They disabled victims’ malware protection and blocked the victims’ access to websites associated with law enforcement.
Controlling the computers also allowed the defendants to use the processing power of the computer to solve complex algorithms for the financial benefit of the group, a process known as cryptocurrency mining.
The defendants used stolen email credentials to copy a victim’s email contacts. They also activated files that forced infected computers to register email accounts with AOL. The defendants registered more than 100,000 email accounts using this method. They then sent malicious emails from these addresses to the compromised contact lists. Through this method, they sent tens of millions of malicious emails.
When victims with infected computers visited websites such as Facebook, PayPal, eBay or others, the defendants would intercept the request and redirect the computer to a nearly identical website they had created. The defendants would then steal account credentials. They used the stolen credit card information to fund their criminal infrastructure, including renting server space, registering domain names using fictitious identities and paying for Virtual Private Networks (VPNs) which further concealed their identities.
The defendants were also able to inject fake pages into legitimate websites, such as eBay, to make victims believe they were receiving and following instructions from legitimate websites, when they were actually following the instructions of the defendants.
They placed more than 1,000 fraudulent listings for automobiles, motorcycles and other high-priced goods on eBay and similar auction sites. Photos of the items were infected with malware, which redirected computers that clicked on the image to fictitious webpages designed by the defendants to resemble legitimate eBay pages.
These fictitious webpages prompted users to pay for their goods through a nonexistent “eBay Escrow Agent” who was simply a person hired by the defendants. Users paid for the goods to the fraudulent escrow agents, who in turn wired the money to others in Eastern Europe, who in turn gave it to the defendants. The payers/victims never received the items and never got their money back.
This resulted in a loss of millions of dollars.
The Bayrob group laundered this money by hiring “money transfer agents” and created fictitious companies with fraudulent websites designed to give the impression they were actual businesses engaged in legitimate financial transactions. Money stolen from victims was wired to these fraudulent companies and then in turn wired to Western Union or Money Gram offices in Romania. European “money mules” used fake identity documents to collect the money and deliver it to the defendants.
The FBI investigated the case, with assistance from the Romanian National Police. The case was prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Brian McDonough and Senior Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section. The Office of International Affairs also provided assistance in this case.
Jury convicts Elyria man of illegally having handgunRead the Press Release
A jury convicted an Elyria man of illegally having a firearm and ammunition.
Gregory Raymore, 32, was convicted of one county of being a felon in possession of a firearm after a four-day trial. He is scheduled to be sentenced July 17.
Raymore possessed a .45-caliber handgun and 22 rounds of ammunition. Lorain police officers responded to a fatal shooting in an alleyway outside a bar in May 2018. The murder investigation led to the recovery of a firearm and ammunition near the crime scene that contained Raymore's DNA, although it was not the firearm that caused the death, according to trial testimony.
Raymore was not allowed to possess the firearm or ammunition because of multiple previous convictions, including for aggravated robbery, aggravated burglary, possession of drugs and being a felon in possession of a firearm, according to trial testimony and court documents
This case was prosecuted as part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated 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.
This case was prosecuted by Assistant U.S. Attorneys Scott Zarzycki and Maggie Kane following an investigation by the Lorain Police Department and FBI.
Jury Verdict: Larned Man Was Behind Attacks on Internet Service ProviderRead the Press Release
WICHITA, KAN. – A jury today convicted a Larned man on federal charges of arranging for a series of denial of service attacks on a Kansas internet service provider, U.S. Attorney Stephen McAllister said.
The jury convicted Michael D. Golightley, 35, Larned, Kan., on seven counts of damaging a protected computer and one count of threatening to damage a computer connected to the internet.
During trial, prosecutors presented evidence that Golightley contacted an entity called DDosCity to arrange for a series of attacks on Nex-Tech’s computers.
Nex-Tech is an internet service provider with offices in Hays, Lenora, Beloit, Concordia, Courtland, Dodge City, Downs, Great Bend, Hill City, Hoxie, McPherson, Norton, Osborne, Phillipsburg, Plainville, Quinter, Russell, Salina, Smith Center, Stockton and WaKeeney.
Prosecutors presented evidence that on March 30 and 31, 2017, Nex-Tech was hit by six denial of service attacks, which caused Nex-Tech’s computers to become inaccessible to the public.
Before the attacks, Golightley sent Nex-Tech two threats. He was angry about the company removing an ad he placed on Nex-Tech Classifieds for a PlayStation 3 game that been “jail broken,” or modified to bypass a system security check. Golightley placed the ad a second time and sent Nex-Tech a warning that he would “violate this site by bringing it offline” if the ad were removed again. He added: “If u make me upset, I will retaliate -- your choice.”
Sentencing is set for July 1. He faces a penalty of up to five years in federal prison and a fine up to $250,000 on each count. McAllister commended the FBI, the Hays Police Department, Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Ryan McCarty for their work on the case.
Jury Convicts Hamilton Physician of Illegal Distribution of OpioidsRead the Press Release
CINCINNATI – A U.S. District Court jury convicted Dr. Saad Sakkal, 71, of illegally distributing and dispensing controlled substances that led to the death of one victim in 2016. Sakkal was practicing at Lindenwald Medical Association, Inc. in Hamilton.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Anthony Groeber, Executive Director, State Medical Board of Ohio, Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy, Sarah D. Morrison, Administrator, Ohio Bureau of Workers Compensation, announced the verdict reached today following a trial that began April 1 before U.S. District Judge Michael R. Barrett.
“Sakkal had a medical license, but he was the opposite of a doctor – he was dealing deadly drugs under the guise of practicing medicine and even killed one of his ‘patients’,” U.S. Attorney Glassman said of the jury’s verdict. “The penalty for dealing drugs that cause death is at least 20 years and up to life in prison.” Judge Barrett will schedule a date for sentencing.
The jury convicted Sakkal of 30 counts of illegal distribution of controlled substances outside the scope of a medical practice and with no legitimate medical purpose, and six counts of use of a registration number that was issued to someone else.
During the trial, prosecutors presented evidence gathered by investigators that Sakkal performed inadequate physical exams to identify and verify patient’s complaints of pain, and that he issued prescription combinations that were particularly dangerous and addictive. Pharmacists testified that they warned Sakkal of the risks and eventually refused to fill prescriptions issued by Sakkal. Investigators also testified that Sakkal received repeated notice of addiction, overdoses and deaths, but continued his practices.
A federal grand jury indicted Sakkal in June, 2018. Agents arrested him in Florida after he was indicted. He has been held without bond since his arrest. Judge Barrett ordered him to remain in custody until sentencing.
U.S. Attorney Glassman commended the investigation by the HHS OIG, DEA, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorneys Timothy Oakley and Timothy Mangan, who represented the United States in the case.
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Jackson Man Sentenced to 9 Years in Federal Prison under Project EJECT for Armed Robbery of Local BusinessRead the Press Release
Jackson, Miss. – Stefan Brown, 21, of Jackson, was sentenced today by U.S. District Judge David C. Bramlette to 108 months in prison, followed by three years of supervised release, for robbing a local business and brandishing a firearm, announced U.S. Attorney Mike Hurst and Federal Bureau of Investigation Special Agent in Charge Christopher Freeze.
On January 31, 2017, officers with the Jackson Police Department responded to an armed robbery at the International House of Pancakes ("IHOP") on Greenway Drive in Jackson. The victims reported, and surveillance video confirmed, that Brown entered the IHOP brandishing a firearm and demanding all of the money in their cash registers. The victims answered Brown’s demands and ran to hide in the restaurant freezer. Brown exited the business with $631.
Brown was indicted by a federal grand jury on February 21, 2018 and pled guilty on January 9, 2019.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Candace Mayberry.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing our 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.
Justice Department Observes National Crime Victims’ Rights WeekRead the Press Release
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“One of our greatest rewards as federal prosecutors is to see how our work can make a difference in the lives of victims of crime. Whether they are victims of physically violent attack, suffer financial loss, or endure other forms of exploitation, we are committed to seeing that they receive a measure of justice.” stated US Attorney for the District of Wyoming, Mark A. Klaassen. “I am proud of the work we do every day for the people of Wyoming in this regard, and appreciate the recognition and attention given to this important effort during Crime Victim’s Rights Week.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s Annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
Hopkins Man Indicted for Distributing Fentanyl Causing the Deaths of Eleven PeopleRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment against AARON RHY BROUSSARD, 28, charging him with twenty-one counts related to the distribution of controlled substances, including fentanyl, which resulted in the deaths of eleven people and caused serious bodily injury to four people. BROUSSARD will be arraigned on these charges before a Magistrate Judge in U.S. District Court at a later date. On December 6, 2016, the U.S. Attorney’s Office for the Middle District of Pennsylvania indicted BROUSSARD on one count of distribution and possession with intent to distribute a controlled substance and he is scheduled to stand trial on those charges on May 14, 2019. BROUSSARD was arrested on December 7, 2016, and is in custody in Scranton, Pennsylvania.
According to the allegations in the indictment, from 2014 through December 6, 2016, BROUSSARD obtained controlled substances, including fentanyl, from China-based drug suppliers. Upon receipt, BROUSSARD repackaged the controlled substances, marketed them for sale, and sold them to customers in the United States. BROUSSARD used various websites to market the controlled substances including PlantFoodUSA.Net, and distributed the controlled substances to customers using the United States mail and a United States Postal Service “Click-N-Ship” account.
According to the allegations in the indictment, on March 12, 2016, BROUSSARD placed a drug order for 100 grams of 4-FA, a controlled substance, which was shipped from China and contained approximately 100 grams of fentanyl. Between April 1 and April 27, 2016, BROUSSARD sent packages containing fentanyl to multiple customers throughout the United States. After ingesting the controlled substance received from BROUSSARD, eleven of the customers died from a fentanyl overdose and four customers suffered serious bodily injury. BROUSSARD continued to distribute controlled substances to customers even after learning that some had overdosed.
This case is the result of an investigation conducted by the U.S. Drug Enforcement Administration, the U.S. Postal Inspection Service, the University of Minnesota Police Department, the Peoria Heights (Illinois) Police Department, the Hazel Green (Wisconsin) Police Department, the Dallas (Texas) Police Department, the Broome County (New York) Sheriff’s Office, the Velusia County (Florida) Sheriff’s Office, the Orange County (California) Sheriff’s Office, and the Atlanta (Georgia) Police Department.
Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.
Defendant Information:
AARON RHY BROUSSARD, 28
Hopkins, Minn.
Charges:
- Drug conspiracy resulting in death/serious bodily injury, 1 count
- Importation of 40+ grams of fentanyl, 1 count
- Possession with intent to distribute 40+ grams of fentanyl, 1 count
- Distribution resulting in death/serious bodily injury, 12 counts
- Possession with intent to distribute controlled substance analogues, 5 counts
- Possession With Intent To Distribute 4-EMC, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that FRANKI NOEL ORTIZ-BERNARDEZ, age 34, pleaded guilty Tuesday, April 9, 2019 to a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, FRANKI NOEL ORTIZ-BERNARDEZ (“BERNARDEZ”), reentered the United States after he was previously deported on September 14, 2014 and May 11, 2016.
BERNARDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for July 10, 2019.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Gretna Woman Charged with Filing False Tax ReturnRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that PATRICIA HARGIS, age 70, of Gretna was charged Tuesday, April 9. 2019 with filing a false tax return, a crime punishable by up to three years’ imprisonment.
According to the bill of information, HARGIS intentionally understated her income and taxes owed in her 2015 federal income tax return. U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Internal Revenue Service - Criminal Investigation Division and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Chandra Menon and Andre J. Lagarde are in charge of the prosecution.
Georgia Inmate Charged with Conspiracy to Commit Wire Fraud for His Role in Grand Jury ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that NICHOLAS ROTUNDA ALLEN, age 39, an inmate in Jimmy Autry State Prison in Pelham, Georgia, was charged yesterday in a one-count bill of information with conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 371, for his role in perpetrating a grand jury fraud scam and victimizing a resident of the Eastern District of Louisiana.
According to the bill of information, on November 6, 2017, ALLEN used a contraband cellular telephone to contact Victim A from inside the state prison. ALLEN obtained the phone from a non-incarcerated co-conspirator. ALLEN pretended to be a Deputy United States Marshal and informed Victim A that he had unlawfully failed to report for jury duty service for the United States District Court for the Eastern District of Louisiana. ALLEN further told Victim A that because he had failed to appear for jury duty, a warrant had been issued out of the Eastern District of Louisiana for Victim A’s arrest. The individual said that Victim A had the choice of either being arrested on the warrant or paying a $5,500 fine to have the arrest warrant dismissed. Victim A paid the fine by buying a series of pre-paid cash cards and giving the account numbers to ALLEN. Thereafter, Victim A paid ALLEN by buying a total of eleven (11) pre-paid cash cards and giving the cards’ account numbers to ALLEN.
If convicted, ALLEN faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Marshal Service and the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Ft. Lauderdale Resident Charged with Distribution of Fentanyl Resulting in DeathRead the Press Release
A Ft. Lauderdale resident has been charged with distributing fentanyl, a controlled substance that was ingested and caused the death of another individual.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Jean Jameson, 35, of Broward County, was indicted on one count of distribution of fentanyl resulting in death and two counts of distribution of fentanyl (Case No. 19-60083-CR-Zloch/Hunt). A calendar call has been set for May 10, 2019 at 10:00 a.m. in Fort Lauderdale before Senior Judge William J. Zloch. A jury trial has been scheduled for the trial period beginning May 13, 2019. If convicted of the narcotics distribution resulting in death charge, Jameson faces a mandatory minimum sentence of 20 years to life in prison, to be followed by supervised release and a potential fine of up to $1 million dollars. If convicted of the additional charges, Jameson faces a maximum statutory term of 20 years in prison, to be followed by supervised release and a potential fine of up to $1 million dollars.
According to the court record, on September 25, 2018, Jameson distributed fentanyl, a Schedule II controlled substance, to A.M., an individual who died as a result of ingesting the drug. Thereafter, on two separate occasions, Jameson distributed a controlled substances, to wit, fentanyl.
“Men and women in our community are losing their lives to the drug trade,” stated US Attorney Fajardo Orshan. “Fentanyl, a highly potent controlled substance, is being illegally distributed with deadly results. We implore the public to educate themselves, friends and loved ones about the dangers of drug abuse and addiction. Federal law enforcement authorities will continue to prosecute those who endanger our residents by fueling the opioid epidemic.”
“The DEA takes the distribution of any illegal drug very seriously,” said DEA Special Agent in Charge Adolphus P. Wright. “The recent spike in opioid sales, which correlates to an increased death toll, only heightens our commitment to continue in this fight. The DEA Miami Field Division will continue to work very closely with our law enforcement partners in the Tri-County area along with the United States Attorney’s Office to fully investigate and prosecute those responsible for illicit drug trafficking activities to ensure that they are held accountable for their actions, especially when the consequences from those actions result in the tragic death of another individual.”
Fort Lauderdale Chief of Police Rick Maglione stated, “Individuals who knowingly distribute a substance that often results in death should absolutely be held accountable for the results of their actions. Hopefully these individuals will begin to think twice before taking advantage of people who are suffering from an addiction now that they realize the severity of the charges and potential penalties that can be associated with their crimes.”
In December of 2014, the DEA, the Fort Lauderdale Police Department, and the Broward County Sheriff's Office formed a partnership with the Broward Medical Examiner's Office to track both synthetic drug and heroin related overdoses. From that, and as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) National Heroin strategy to combat heroin/fentanyl trafficking and related overdose deaths, Operation Phantom Chase emerged. The operation, begun in July 2017, is a multi-jurisdictional heroin/fentanyl initiative between the DEA, the U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, Fort Lauderdale Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Hollywood Police Department, Coral Springs Police Department and the U.S. Attorney’ Office in Broward County which operates as a data collection clearinghouse to analyze intelligence gathered from fatal and non-fatal heroin and fentanyl overdoses that occur in Broward County. The charges being announced today result from the diligent investigative work of this successful federal-local partnership.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and the Ft. Lauderdale police. She also thanked the Broward Sheriff’s Office for their support during the course of this investigation. This case is being prosecuted by Assistant U.S. Attorney Robert Juman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Sex Offender Fugitive Gets 60 Years for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON - A 44-year-old man from Humble has received a massive federal prison sentence following his convictions for sexual exploitation of a child as well as receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Moises Valdez pleaded guilty April 4, 2018.
Today, U.S. District Judge Gray Miller handed Valdez a sentence of 360 months for the sexual exploitation of a child, otherwise known as production of child pornography. He also received 240 months for the receipt of child pornography and another 120 months for the possession of child pornography. The sentences will all run consecutively for a total of 720 months in federal prison. There is no parole in the federal system. Valdez also received a lifetime of supervised release.
Valdez came to the attention of law enforcement following an investigation which began May 22, 2015, into persons using the internet to traffic in child pornography. An FBI special agent was able to locate and identify Valdez as the owner of a computer offering to participate in the distribution and receipt of child pornography movies through a peer-to-peer network.
On Jan. 29, 2016, authorities executed a search warrant at Valdez’ residence, at which time, they seized a laptop and a desktop computer located within a bedroom belonging to Valdez. A forensic review resulted in the discovery of approximately 75 images and more than 180 videos of child pornography.
Additionally, agents also found one particular video that appeared to be taken from a cellular phone which agents believed Valdez had produced. This video was of an underage female being vaginally penetrated by an adult male penis. Also depicted in the video was an adult male’s fingers that can be seen spreading open the vagina of the child who appears to be sleeping throughout the sexual assault.
Agents were able to identify the bedroom as that of belonging to Valdez.
On March 8, 2016, agents contacted and interviewed Valdez’ wife who identified the child depicted in the video as a minor relative who would have been four –years-old at the time of the assault. She further able identified body parts of Valdez that were seen in the video.
A warrant for his arrested was issued that day, but he had absconded. Authorities ultimately apprehended him April 18, 2016, upon his entry into the United States from Mexico. The investigation revealed he had fled to Mexico after he learned agents had identified him as the male in the video.
At the sentencing hearing today, the court heard evidence regarding a pattern of abuse which rendered Valdez a repeat and dangerous sex offender. The court heard that Valdez had sexually abused three other minor females in addition to the four-year-old victim from the video. These victims were either family members or were children whom Valdez acted as a father figure. One victim was as young as three-years-old when the abuse began. The total amount of abuse on these victims spanned several years. Further, one of the victims told the court that what Valdez did destroyed her family.
The FBI conducted the investigation.
Valdez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, being prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former New York City Human Resources Administration Employee and Two Others Plead Guilty to Scheme Involving Theft of Hundreds of Thousands in HRA FundsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ELIANA BAUTA pled guilty in Manhattan federal court to her involvement in a scheme to steal over $300,000 in funds from the New York City Human Resources Administration (“HRA”). BAUTA perpetrated the offenses in her capacity as an HRA employee. BAUTA pled guilty today before U.S. District Judge Valerie E. Caproni to federal program theft. BAUTA also pled guilty on March 25, 2019 before Judge Caproni to conspiring to commit wire fraud. Co-defendant GERALDINE PEREZ pled guilty before Judge Caproni on February 5, 2019, to her role in the HRA scheme and also to a separate fraudulent scheme involving more than $90,000 of stolen or fraudulently issued U.S. Treasury checks. Co-defendant ERIC GONZALES pled guilty before Judge Caproni on February 5, 2019, to misdemeanor bank theft.
Manhattan U.S. Attorney Geoffrey S. Berman said: “HRA employees like Eliana Bauta are trusted to use their positions to help people in need. Instead, as she has now admitted, Bauta egregiously abused that trust, working with her co-conspirators to steal hundreds of thousands of dollars intended for New York’s needy. As the guilty pleas in this case indicate, we remain vigilant in seeking out and prosecuting abuses of trust by City employees and remain committed to ensuring that federal and local funds go to their intended recipients.”
According to the Complaint, the Indictment, and statements made in the plea proceedings today and on February 5 and March 25, 2019:
HRA is an agency of the City of New York responsible for administering the majority of the City’s public assistance programs. Among other things, HRA provides temporary, emergency cash assistance to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. The emergency assistance is funded by the federal government as well as by New York State and the City.
Since 2015, the City Department of Investigation-Office of Inspector General (“DOI-OIG”) has been investigating two related schemes in which an HRA employee – BAUTA – defrauded HRA and the City by using her position to commit public assistance fraud. BAUTA worked as a Job Opportunity Specialist for HRA from approximately January 2008 to on or about May 23, 2018. As a Job Opportunity Specialist, BAUTA was at various points responsible for interviewing benefits applicants, compiling and submitting applicants’ paperwork, and disbursing applicants’ benefits.
In the first of the two schemes, BAUTA is alleged to have caused the fraudulent issuance of emergency benefits funds to relatives and acquaintances, including GERALDINE PEREZ and ERIC GONZALES, among others, who in truth and in fact did not qualify for those funds. For example, BAUTA altered a police report submitted by an actual HRA client by changing the name of the victim to a family member’s name, and then entered the doctored report into HRA systems in support of a request for benefits to be issued to that family member. On another occasion, BAUTA submitted a request for emergency benefits to be issued to an individual after an alleged disaster, but no such disaster had occurred. Both PEREZ and GONZALEZ were knowing recipients of such fraudulently issued funds and shared the proceeds with BAUTA.
In the second scheme, BAUTA is alleged to have obtained access to and misappropriated emergency benefits checks issued to actual HRA clients. Instead of providing the checks to the legitimate clients in need of emergency funding, BAUTA gave them to PEREZ and GONZALES, among other of BAUTA’s relatives and associates, who deposited the checks in their own bank accounts and withdrew the funds, and then shared the proceeds with BAUTA. In total, the two schemes resulted in losses to HRA of at least $309,000 in public funds.
In addition to obtaining stolen HRA checks into her bank account and the bank accounts of family members, PEREZ also deposited or caused to be deposited into these same accounts improperly obtained United States Treasury checks that were issued to other individuals as tax refunds. In total, 23 such checks worth more than $91,000 were deposited into bank accounts of PEREZ and her family members and associates. PEREZ then split the proceeds with a tax preparer who assisted in the scheme.
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BAUTA, 35, of the Bronx, New York, pled guilty to one count of federal program theft, which carries a maximum potential sentence of 10 years in prison; and one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison.
PEREZ, 60, of the Bronx, New York, pled guilty to one count of conspiracy to commit federal program theft, which carries a maximum potential sentence of five years in prison; and one count of receiving stolen government money or property, which carries a maximum potential sentence of 10 years in prison.
GONZALES, 26, of the Bronx New York, pled guilty to one count of misdemeanor bank theft, which carries a maximum potential sentence of one year in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge. BAUTA is scheduled to be sentenced before Judge Caproni on July 17, 2019. PEREZ is scheduled to be sentenced before Judge Caproni on May 16, 2019. GONZALES is scheduled to be sentenced before Judge Caproni on June 20, 2019.
Mr. Berman praised the investigative work of DOI and the Internal Revenue Service.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Paul Monteleoni and Catherine Ghosh are in charge of the prosecution.
Former Madras Police Officer Sentenced to Six Years in Federal Prison for Repeated Sexual Abuse of MinorRead the Press Release
PORTLAND, Ore.—John Joseph Wallace, Jr., 35, of Madras, Oregon, was sentenced today to 72 months in prison and life term of supervised release for the repeated sexual abuse of a minor.
According to court documents, the government’s investigation of Wallace began in January 2018, when Warm Springs Tribal Police officers responded to Wallace’s home on the Warm Springs Indian Reservation. Officers were responding to a report that Wallace had abused a young girl. The minor victim and her mother, who contacted police to report Wallace’s crimes, are both Warm Springs tribal members.
An investigation later revealed that Wallace, over a period of years, had repeatedly abused the child by touching her breasts, buttocks, and genitals, both over and under her clothing. Wallace used his cell phone to communicate with the child and facilitate multiple incidents of abuse at his home on the reservation and on a separate occasion in Madras.
On January 3, 2019, Wallace pleaded guilty in federal court to three counts of abusive sexual contact with a minor. In a related state court matter, Jefferson County Circuit Court Judge Annette C. Hillman found Wallace guilty of attempted sexual abuse in the first degree and official misconduct in the first degree. Wallace will be sentence in state court on April 12, 2019.
This case was investigated by FBI Portland’s Safe Trails Task Force, the Warm Springs Tribal Police Department, and the Oregon Department of Justice. It was prosecuted federally by Paul T. Maloney, Assistant U.S. Attorney for the District of Oregon.
The Safe Trails Task Force (STTF) unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTF allows participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Former Floridian Pleads Guilty to Armed Robberies of Two Pittsburgh-area BanksRead the Press Release
PITTSBURGH – A former resident of Pompano Beach, Florida, has pleaded guilty to charges of violating federal armed bank robbery laws, United States Attorney Scott W. Brady announced today.
Robert Stiver, 71, pleaded guilty to two counts of armed bank robbery in front of United States District Court Judge Cathy Bissoon. Stiver has been detained since his arrest at the Pittsburgh International Airport on December 22, 2016, and will remain detained pending sentencing.
According to information presented to the court, on November 2, 2016, Robert Stiver walked into the Allegheny Valley Bank in Shaler, PA wearing an orange construction vest, a duffel bag around his neck, a homemade face mask and a long wig. He approached a teller brandishing a large revolver and announced to everyone in the bank not to try anything or he would have to shoot. He then told the teller to hand over the money from her drawers. The teller complied and Stiver placed the money in the bag draped around his neck. Stiver then walked out of the front door of the bank and fled southbound in a black Toyota Versa Sedan. Stiver netted approximately $2,063 in cash from the robbery.
On December 9, 2016, Stiver walked into the First Commonwealth Bank in Harmarville, PA. Stiver was wearing light color blue jeans, white shoes, and a dark hooded jacket, and, orange construction vest, a homemade face mask and a long wig. Once again, Stiver had a large duffel bag around the front of his person. He approached the teller holding a large revolver in his right hand and demanded money from the drawers without any dye packs. The teller complied and handed over approximately $5,732 in US currency. Stiver fled out of an employee entrance in the back. Surveillance footage captured Stiver fleeing the scene in a small white Ford Focus.
On December 22, 2016, Special Agents of FBI-Pittsburgh’s Violent Crimes Task Force stopped and arrested Stiver at Pittsburgh International Airport while he was attempting to board a plane. Pursuant to a search warrant, Special Agents recovered money stolen from the Harmarville, PA bank in Stiver’s bag. Stiver was arrested and charged by federal criminal complaint at the time.
Judge Bissoon scheduled sentencing for August 13, 2019 at 1:30 p.m. The law provides for a maximum sentence of not more than 25 years in prison, a fine of not more than $250,000, or both for each armed robbery count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The FBI Pittsburgh’s Violent Crimes Task Force, Allegheny County Police, Allegheny County Sherriff’s Department, the Shaler Township Police Department, and the Harmar Township Police Department conducted the investigation leading to the guilty plea in this case.
Former Executive Director of Non-profit Sentenced for Embezzling Funds Intended for Domestic Violence VictimsRead the Press Release
SACRAMENTO, Calif. — Claudia Humphrey, 62, of American Canyon, was sentenced today by U.S. District Judge Troy L. Nunley to six months in prison and ordered to pay $71,423 in restitution for theft of public money and falsifying records in a federal investigation, U.S. Attorney McGregor W. Scott announced. Judge Nunley ordered Humphrey to self-surrender on May 23 to begin serving her sentence.
According to court documents, Humphrey was the executive director of LIFT3 Support Group Inc., a non-profit organization in Fairfield that offered transitional shelter assistance and other services to victims of sexual assault, domestic violence, and dating violence, primarily serving residents in Solano County. Humphrey, through LIFT3, sought and received federal grants from the Department of Justice, Office on Violence Against Women (OVW) in 2011 and 2012. Humphrey transferred or caused to be transferred over $270,000 in grant funds that were to be used only for assisting victims of domestic violence into bank accounts she controlled. Humphrey used over $70,000 of those victim funds on personal expenses such as travel, shopping, and payments to her family members, among other things.
According to court documents, between October 2014 and August 2015, in an effort to conceal her embezzlement of federal funds, Humphrey obstructed the efforts of an OVW audit of LIFT3. Humphrey falsified purchase documents showing that computers were purchased, and altered and falsified expense ledgers and time sheets.
This case was the product of an investigation by the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Matthew C. Thuesen handled the sentencing in the case.
Former Chief Operating Officer of MetroHealth Hospital System sentenced to more than 15 years in prison for his role in a conspiracy to defraud the hospital and others through a series of bribes and kickbacksRead the Press Release
The former Chief Operating Officer of MetroHealth Hospital System was sentenced to more than 15 years in federal prison for his role in a conspiracy to defraud the hospital and others through a series of bribes and kickbacks totaling hundreds of thousands of dollars related to the hospital’s dental program.
Edward R. Hills, 58, of Aurora, was sentenced to 188 months in prison. Restitution will be determined at a later date.
A jury previously found Hills, Sari Alqsous, 34, of Cleveland, Yazan B. Al-Madani, 34, of Westlake, and Tariq Sayegh, 38, of Cleveland, guilty of criminal charges following a trial last year. The other three defendants are scheduled to be sentenced later this month.
“Dr. Hills violated the trust of taxpayers and the leadership of a hospital dedicated to serving the least among us,” U.S. Attorney Justin Herdman said. “Dr. Hills earned this prison sentence by putting his greed above all else, soliciting and taking cash, rent payments, plane tickets, an expensive briefcase and other items as bribes.”
"Mr. Hills will now serve his deserved sentence for defrauding our healthcare system,” FBI Special Agent in Charge Eric B. Smith said. "The investigation and subsequent prosecution of Hills and his associates revealed these individuals had engaged in a pervasive pattern of fraud, betraying the MetroHealth Hospital System, its employees, and our community. The collective efforts of law enforcement and MetroHealth officials led to the disruption of this destructive illegal deceit. "
“Misusing their position of trust for their own personal gain and obstructing justice by telling witnesses to not to cooperate with law enforcement is what ultimately lead to the downfall of these defendants,” said William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The success of this case is a direct result of the excellent partnership amongst IRS Criminal Investigation, the U.S. Attorney’s Office, FBI, the Ohio Bureau of Criminal Investigation, and the Ohio Office of the Inspector General.”
“These four criminals hit Ohio’s taxpayers and healthcare system right in the teeth,” said Ohio Attorney General Dave Yost. “With today’s sentence, justice struck back. I’m pleased our Bureau of Criminal Investigation could assist our law enforcement partners who investigated and prosecuted this case.”
Hills worked in various capacities at MetroHealth, including as Chief Operating Officer and Director of MetroHealth Dental. He also served as interim President and Chief Executive Officer from December 2012 through July 2013. Alqsous, Al-Madani and Sayegh are dentists who worked for MetroHealth.
According to court documents, testimony and documents presented at trial:
Hills, Alqsous and Al-Madani engaged in a racketeering conspiracy from 2008 through 2016 involving a series of elaborate bribery conspiracies, witness tampering and other crimes. These bribes include Hills soliciting cash, checks, a $3,879 Louis Vuitton briefcase, a 55-inch television, airline flights and use of a downtown apartment from Alqsous, Al-Madani and others. In return, Hills took official actions on their behalf, including allowing them to work at their private dental businesses during regular business hours while receiving a full-time salary from MetroHealth.
Alqsous, Al-Madani and others gave cash, checks and other things of value to Hills beginning in 2009. Evidence included text messages and meetings, often at expensive restaurants, which resulted in cash being deposited into Hills’ bank accounts.
Alqsous sent a text message to Al-Madani and another person in 2013 that stated: “With 22nd of October approaching we ll be celebrating Dr hills bday earlier this year…1000 dollars each is the gift from the 3 sons their father.” Later that day, $3,000 was deposited into Hills’ bank account.
In 2012, Alqsous rented and lived in an apartment at the Perry Payne apartment building in downtown Cleveland. When he bought a residence, Hills instructed Alqsous to continue paying rent and other bills at the Perry Payne building, even though Alqsous would no longer be living there. Hills used the Perry Payne apartment to house an associate and for his own personal use in 2013 and 2014 while Alqsous, acting on Hills’ orders, continued to pay rent and other bills.
Hills instructed Alqsous to purchase furniture for the apartment for Hills’ personal use. Alqsous sent Hills a text in 2013 stating: “I bought your bedroom yesterday…there is mirrors everywhere…You will like it.”
Hills became interim President and CEO of the MetroHealth Hospital System in December 2012. Around that time, he told Alqsous, Al-Madani and others that he wanted a specific Louis Vuitton briefcase because his predecessor had a similar briefcase.
Alqsous texted a photo of the briefcase to Hills and wrote: “The guys are also very excited about their raise haha.” Hills responded with: “Thanks I’m so excited to have my bag to start my new job as #1.” Later that day, Alqsous, Al-Madani and others purchased the briefcase for $3,879 from Saks Fifth Avenue in Beachwood and later presented it to Hills.
As director of MetroHealth Dental, Hills was responsible for determining monthly bonuses for dentists who produced receipts in excess of their monthly salary and benefits. Dentists typically received a monthly bonus totaling 25 percent of the monies they generated for excess receipts.
Between 2010 and 2014, Hills regularly upwardly adjusted the bonuses of Alqsous, Al-Madani and others, by a total of approximately $92,829.
Hills also allowed Alqsous, Al-Madani and others to retain full-time salaries and benefits at MetroHealth without requiring them to work full-time hours, thus allowing them to operate private dental clinics. Hills, acting at the request of Alqsous and Al-Madani, provided MetroHealth dental residents to practice at those private clinics during regular business hours. Neither Alqsous nor Al-Madani paid wages or salaries to the resident dentists.
Additionally, Alqsous, Al-Madani and Sayegh solicited and accepted bribes totaling tens of thousands of dollars from prospective candidates to the MetroHealth Dental residency program.
In a typical year, the MetroHealth Dental residency accepted four to six candidates for the residency program from a pool of 40 to 60 applicants. Alqsous, Sayegh and Al-Madani each had the authority to influence the selection of dental residents, and Hills had final decisional authority over who was selected for the residency program.
Alqsous and Sayegh often identified and selected candidates who were from Jordan or trained at a Jordanian dental school, telling them they would have to pay a “donation” to MetroHealth to be considered. Alqsous and Sayegh directed the candidates to pay the “donation” directly to them, and in some cases, told the candidates a portion of the money would go to Hills.
Alqsous, Sayegh and Al-Madani solicited at least $75,000 in bribes from resident dentist candidate between 2008 and 2014.
In another conspiracy, Al-Madani and Alqsous paid bribes to Hills in exchange for him taking actions to refer Medicaid recipients to private dental clinics owned by Al-Madani and Alqsous instead of MetroHealth. All three took steps to conceal this activity by claiming kickback checks totaling $17,600 written to Hills were for “consultation fees” or “professional fees”.
Hills, Alqsous and Al-Madani also conspired to obstruct justice, instructing people not to cooperate with law enforcement after becoming aware of the federal investigation in 2014.
Hills also made false statements on tax returns, failing to claim approximately $165,751 in unreported income stemming from bribes, kickbacks and other things of value between 2011 and 2013.
This case was prosecuted by Assistant U.S. Attorneys Om Kakani, Michael L. Collyer and James Lewis following an investigation by the FBI, IRS-CI, Ohio Bureau of Criminal Investigation and the Ohio Office of the Inspector General.
Former CEO Convicted of Defrauding Food and Drug Administration and Distributing Adulterated DrugsRead the Press Release
A jury yesterday convicted Paul J. Elmer, the former CEO and owner of Pharmakon Pharmaceuticals Inc. (Pharmakon), of conspiracy to defraud the Food and Drug Administration (FDA) and nine counts of adulterating drugs, the Department of Justice announced today. Pharmakon was a Noblesville, Indiana, drug compounding facility.
The verdict came after an eight-day trial before U.S. District Judge James R. Sweeney II in Indianapolis, Indiana.
Elmer, 67, formerly a licensed pharmacist and a resident of Fishers, Indiana, was charged by grand jury in a superseding indictment on Feb. 7, 2019. The superseding indictment charged that, from 2013 to 2016, Elmer and Caprice R. Bearden, Pharmakon’s former director of compliance, caused Pharmakon ─ which compounded sterile, intravenous drugs ─ to distribute approximately 70 lots of over- and under-potent drugs to military and civilian hospitals throughout the country.
“As these convictions show, the Department of Justice takes very seriously conduct that unlawfully undermines the safety of compounded drugs,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will not tolerate actions that impede the FDA’s efforts to ensure the safety of products. With its law enforcement partners, the Department of Justice will thoroughly investigate and prosecute those who knowingly prevent the FDA from protecting patients and ensuring compounded drugs are safe.”
“The jury’s findings in this case resonate with citizens of every age,” said Josh J. Minkler, United States Attorney. “Specifically, hospitals and patients from every walk of life rely on the integrity of pharmaceutical manufacturers like Pharmakon to make safe drugs. This defendant prioritized profit over safety and the jury’s verdict demonstrates the government’s resolve to protect our citizens. Good pharmaceutical manufacturers, who work with the FDA achieve that goal.”
“Producing unsafe drugs puts patients at risk and is particularly concerning when they reach already vulnerable populations such as premature infants. This conviction demonstrates that those, including drug compounders, who distribute harmful drugs will be held accountable under the law,” said Director Catherine A. Hermsen, FDA Office of Criminal Investigations. “The FDA continues to play an important role in protecting patients—including young children—and we will continue to work with our law enforcement partners to pursue and bring to justice those who place profits before the health of U.S. patients.”
“When drug compounders disregard safety standards and violate the law, patient health can be put at significant risk. In this case, we saw unacceptable behavior from the defendant whose company distributed dangerous products that led to serious adverse events in infants,” said Stacy Amin, FDA Chief Counsel. “The FDA is fully committed to working with the Department of Justice to stop these bad actors and protect patients from potential public health risks.”
Bearden pleaded guilty to all the charges in the original indictment on Nov. 21, 2017. Her sentencing date has not been scheduled.
Evidence at Elmer’s trial showed that, from 2013 to 2016, Pharmakon routinely shipped compounded drugs at Elmer’s direction to customers without having received laboratory test results that verified the drugs were the strength they were supposed to be. Furthermore, evidence showed that, despite receiving test results showing potency failures, Elmer did not recall the drugs, notify the customer, notify the FDA of the potency failures, or conduct any root cause investigation to determine the cause of the failure.
FDA consumer safety officers testified about two inspections of Pharmakon they conducted in 2014. One inspection was prompted by Pharmakon’s distribution of 200 percent potent midazolam, a sedative that was used to treat premature infants, to an Indianapolis hospital. They observed numerous violations of FDA regulations during each inspection, and informed Elmer. But former Pharmakon employees testified that Elmer and Bearden misled and interfered with these first two FDA inspections, in order to prevent the FDA from knowing about the potency failures as well as other aspects of the business. Former employees also testified that certain changes in process that Elmer and Bearden told the FDA Pharmakon would enact, never happened.
According to evidence at trial, in February 2016, the multiple potency failures culminated in Pharmakon’s distribution of 2,460 percent super potent morphine sulfate, an opioid pain medication, to hospitals in Indianapolis and Chicago. Nurses at the Indianapolis hospital administered the morphine, not knowing that it was 2,460 percent super potent, to infants in the pediatric unit. Three infants suffered adverse effects from the narcotic overdose. One infant needed to be revived through the administration of Naloxone (commonly known as Narcan) and sent by helicopter to a nearby hospital with a neo-natal intensive care unit. These adverse events led to a final FDA inspection in which FDA consumer safety officers testified that they discovered evidence of multiple previous potency failures that had been concealed by Bearden during the first two inspections. Former employees testified that Elmer and Bearden misled and interfered with this final FDA inspection as well.
Elmer was convicted of one felony count of conspiracy to defraud the FDA and to obstruct FDA inspections, carrying a maximum punishment of five years in prison and a fine of up to $250,000. He was also convicted of three misdemeanor counts of introducing adulterated drugs into interstate commerce and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Each of the adulteration counts is punishable by up to one year in prison and a fine of $100,000.
Elmer’s sentencing date has not been scheduled.
Assistant Attorney General Jody Hunt and U.S. Attorney Minkler commended the FDA’s Office of Criminal Investigations, which conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Cindy J. Cho of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Department’s Consumer Protection Branch and, with assistance from Paul Joseph of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Federal Inmates Guilty of Escape from Beaumont FacilityRead the Press Release
BEAUMONT, Texas – Two federal inmates have pleaded guilty to escape from a Bureau of Prisons facility in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Arnold Troy Crayton, 37, of Fort Worth, and Clemente Valdez, Jr., 36, of Dallas, each pleaded guilty to escape in separate hearings on Apr. 10, 2019 before U.S. District Judge Marcia Crone.
According to information presented in court, on Jan. 12, 2019, the Jefferson County Sheriff’s Office received a call from a citizen near the Bureau of Prison Camp Facility in west Jefferson County reporting they had witnessed inmates crossing a pasture and getting picked up by a vehicle on Hillebrandt Road. A Jefferson County Sheriff’s Deputy pulled over the vehicle shortly afterwards and found Valdez and another escapee inside. The inmates were transported back to the prison facility by law enforcement officers. Crayton returned to the facility on foot several hours later. All three inmates were indicted by a federal grand jury on Feb. 6, 2019.
“We will continue to prosecute these inmates for any escape from federal detention facilities, whether it is a ‘walk-away’ or not,” said U.S. Attorney Joseph D, Brown. “What the inmates and their families need to understand is that anyone who helps in the escapes – drives a vehicle, provides a cell phone, takes any part in it - will also face federal charges. We are serious about stopping these violations.”
Crayton was sentenced to 5 years in federal prison in 2014 for possession with intent to distribute marijuana. He has prior felony convictions for conspiracy to distribute cocaine and has been in a federal prison facility since 2002. Valdez was sentenced to over 17 years in federal prison in 2012 for conspiracy to commit money laundering and conspiracy to distribute cocaine. Valdez was also convicted of marijuana trafficking in 2003 and served state prison time in North Carolina for that offense.
Under federal statutes, Crayton and Valdez each face up to an additional 5 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 Prisons, Federal Bureau of Investigation and Jefferson County Sheriff’s Office and prosecuted by Executive Assistant U.S. Attorney Brit Featherston.
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Federal Grand Jury Returns Indictment Charging Para-Educator with Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on April 10, 2019, a federal grand jury sitting in Rutland, Vermont, returned an indictment charging Bradley Smith, 66, of Jericho, Vermont, with one count of possession of child pornography. Smith will be arraigned on the indictment by U.S. Magistrate Judge John M. Conroy on April 16, 2019.
According to court records and proceedings, the Vermont Internet Crimes Against Children Task Force (the ICAC) received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) which reported that a file depicting child pornography had been uploaded to an Internet search engine. Law enforcement investigated the CyberTip and determined that the image of child pornography had been uploaded from Smith’s residence in Jericho, Vermont. On April 1, 2019, law enforcement executed a search warrant at Smith’s residence. At this time, Smith disclosed, among other things, that he possessed child pornography on his computer, that he had been interested in child pornography for “decades,” and that he found images of child pornography to be sexually arousing. A forensic preview search of Smith’s computer revealed that he possessed more than 100 images of suspected child pornography.
Prior to execution of the search warrant and his arrest, Smith was employed as a para-educator in a first-grade classroom at the Union Memorial School in Colchester, Vermont.
If convicted of the charge, Smith faces a sentence of up to 10 years imprisonment, a term of supervised release of at least five (5) years and up to a lifetime term, and a fine of up to $250,000. If convicted, Smith’s sentence will be determined by reference to the advisory United States Sentencing Guidelines. U.S. Attorney Nolan emphasized that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Smith. Assistant Federal Public Defender Steven L. Barth represents Smith.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fayetteville Man Sentenced to More Than 6 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Mike Seeney, age 33, of Fayetteville, Arkansas, was sentenced yesterday to 77 months in federal prison followed by four years of supervised release for one count of Possession with Intent to Distribute of more than 50 grams of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation into methamphetamine trafficking in the Western District of Arkansas in September 2018, the Fourth Judicial District Taskforce received information that Seeney was distributing methamphetamine in Northwest Arkansas. While conducting surveillance on Seeney, investigators observed Seeney conducting what appeared to be a drug transaction at a gas station. Seeney was detained shortly thereafter. At the time of the stop, the odor of marijuana, as well as a marijuana blunt could be observed in the ashtray of his vehicle. During a search of Seeney’s vehicle investigators discovered a gift bag with two bags of methamphetamine. The substance was sent to the DEA Crime Lab and was confirmed to contain 54.5 grams of actual methamphetamine.
Seeney was indicted by a federal grand jury in September 2018, entered a guilty plea in December 2018.
This case was investigated by the Fourth Judicial District Taskforce. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Fairfield Tax Preparer Indicted for False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 28-count indictment today against Myrna Kawakami, 66, of Fairfield, charging her with assisting in the preparation of false tax returns and filing her own false tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, Kawakami ran a tax preparation business in Fairfield called K.I.M. Tax Book Services where she assisted taxpayers in preparing fraudulent federal income tax returns. The returns claimed thousands of dollars in itemized deductions based on ineligible expenses, resulting in fraudulent tax refunds. Kawakami also submitted fraudulent tax returns on her own behalf, significantly underreporting the income from her tax business and claiming education credits based on ineligible expenses. 2:19-cr-067 TLN
On January 24, 2019, a federal grand jury returned a four-count indictment against El Dorado Hills couple Brian Beland, 35, and Denae Beland, 35, charging them with obstructing an IRS investigation. Brian Beland was also charged with filing false tax returns. According to court documents, Brian Beland filed tax returns in 2011, 2012, and 2013, in which he reported false business expenses. Following the initiation of an audit in 2014, Brian and Denae Beland made false statements to IRS revenue agents and provided revenue agents with spreadsheets containing false business expenses in an attempt to obstruct and impede the audit.
2:19-cr-021 WBSThese cases are the product of investigations by the IRS Criminal Investigation.
Assistant U.S. Attorney Mira Chernick is prosecuting U.S. v. Kawakami. Assistant U.S. Attorney Amy S. Hitchcock is prosecuting U.S. v. Beland. If convicted, Kawakami faces a maximum statutory penalty of three years in prison and a $100,000 fine. If convicted, Brian Beland faces a maximum statutory penalty of three years in prison and a $100,000 fine. If convicted, Denae Beland faces a maximum statutory penalty of three years in prison and a $5,000 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.
Excelsior Springs Man Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Excelsior Springs, Mo., man was sentenced in federal court today for possessing and attempting to distribute child pornography.
Gabriel Valencia, Jr., 27, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.
On Nov. 30, 2018, Valencia pleaded guilty to attempting to distribute child pornography over the internet and to possessing child pornography.
The investigation began when another person admitted to possessing and distributing images of child pornography, chatting online with likeminded individuals, and ultimately giving Valencia the password to a cloud-based storage site containing child pornography images. A federal agent, acting in an undercover capacity, contacted Valencia. On Sept. 22, 2016, Valencia sent the undercover agent a video of child pornography.
On Oct. 3, 2016, members of the FBI Cybercrimes Task Force executed a search warrant at Valencia’s residence. Officers seized two laptop computers, a mini tablet, and two cell phones, one of which contained a 4GB micro sim card. One of the laptop computers had contained approximately 300 images of child pornography. The sim card contained 606 images of child pornography and six videos of child pornography.
One of the cell phones had thousands of chat messages, including dozens of chats in which Valencia engaged in sexually explicit conversations with numerous individuals, many of whom claimed to be under the age of 18. Valencia asked for, and received, explicit photos on numerous occasions, sometimes posing as teenage female. In one of his Skype messages, Valencia stated, “with the type of porn I look at I could go to prison for the rest of my life.”
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI.
Project Safe Childhood
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Essex County, New Jersey, Man Admits Stealing $1.9 Million in Food Stamp BenefitsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in exchanging $1.9 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Jose Perdomo, 34, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of SNAP fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
According to documents filed in this case and statements made in court:
From January 2017 to September 2018, Perdomo was an employee of M&R Supermarket, a small grocery store in Newark. His father, Juan Perdomo, ran the everyday operation of the business since M&R’s opening in 2015.
M&R was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Jose Perdomo and Juan Perdomo exchanged money for SNAP benefits.
The bank account of M&R Supermarket, where the store receives SNAP payments, showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo and Maria Rodriguez, as well as several cashed checks in excess of $10,000 by Jose Perdomo.
In September 2018, Jose Perdomo and Juan Perdomo and were charged by complaint with SNAP benefit fraud and conspiracy to commit wire fraud. The Perdomos and Rodriguez – Juan’s wife and Jose’s mother – were also charged with money laundering conspiracy. The charges against Juan Perdomo and Rodriguez remain pending, and they are merely accusations; the defendants are presumed innocent unless and until proven guilty.
The count of SNAP benefit fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. The count of engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Aug. 5, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Perry Farhat of the U.S. Attorney’s Office Criminal Division in Newark.
Elkhart Man Convicted Following 4-Day Jury TrialRead the Press Release
SOUTH BEND – Rex Hammond, age 54, of Elkhart, Indiana was convicted on 5 counts of Hobbs Act Robbery, 2 counts of brandishing a firearm during a crime of violence and 1 count of being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
U.S. District Court Judge Robert L. Miller, Jr, presided over this 4-day trial.
According to evidence presented at trial, from October 6 through October 27, 2017, Mr. Hammond conducted a series of robberies of gas stations and a liquor store located in Logansport, Peru, Auburn, Decatur and Logansport, Indiana, each while brandishing a firearm. Prior to the armed robberies involved in this federal trial, Mr. Hammond had other felony armed robbery convictions.
Sentencing of Mr. Hammond has been set for July 15, 2019.
The case was investigated ATF; FBI; Indiana State Police; Logansport Police Department; Peru Police Department; Auburn Police Department; Portage, Michigan Department of Public Safety; Kalamazoo, Michigan Department of Public Safety; Decatur Police Department; and Marshall County Sheriff’s Office. Assistance to the case was provided by the following agencies: Cass County Prosecutor’s Office; Miami County Prosecutor’s Office; DeKalb County Prosecutor’s Office; Adams County Prosecutor’s Office; and Marshall County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorneys Molly E. Donnelly and Luke N. Reilander.
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Eleven people from the Mahoning Valley indicted for their roles distributing crack and powder cocaine in the Youngstown areaRead the Press Release
Eleven people from the Mahoning Valley were indicted for their roles distributing crack and powder cocaine in the Youngstown area.
Several people also face related firearms charges.
Named in a 45-count indictment are: Robert Taylor, 58, of Youngstown; Raymond L. Rue, 39, of Liberty; Sadiya Az-Zahra Sow, aka Tina Robinson, 47, of Youngstown; Daniel M. Ortello, Jr., 30, of Niles; Terrell D. Green, 46, of Youngstown; Dewon R. Dawson, 35, of Youngstown; Darrell Dawson, 46, of Youngstown, and Bradley E. Weitzel, 61, of Butler, Pennsylvania.
All eight people are charged with conspiracy to distribute cocaine and crack cocaine. Taylor and Dewon Dawson also face firearms charges.
The indictment alleges that from in or around August 2017 through June 2018, the defendants conspired to distribute cocaine and crack cocaine in the Youngstown area.
According to the indictment, Taylor supplied cocaine to Sow, Rue, Ortello and Green for distribution in the Youngstown area. Sow supplied cocaine to the Dawsons and Weitzel for distribution in Youngstown and Western Pennsylvania.
Rue and Dewon Dawson cooked powder cocaine into crack cocaine, according to the indictment.
In a separate four-count indictment, Robin Rutledge, 48, of Youngstown, was charged with possession with intent to distribute cocaine and marijuana, as well as firearms crimes.
Another 26-count indictment charges Nicki L. Warfield, 42, of Warren, John Weaver, Jr., 62, of Warren, and the aforementioned Sadiya Az-Zahra Sow with conspiracy to distribute cocaine and crack cocaine.
Warfield, Weaver and Sow conspired to distribute cocaine and crack cocaine in the Warren and Youngstown areas between December 2017 through May 2018, according to the indictment.
Prosecutors are seeking to forfeit approximately 22 firearms, ammunition and $258,324 seized as part of these investigations, according to court documents.
“These defendants are accused of bringing large amounts of cocaine into the Mahoning Valley, which they sold for profit,” U.S. Attorney Justin Herdman said. “Taking this group off the street, along with the dozens of firearms associated with them, will make Youngstown, Warren and the entire region safer.”
“This network of individuals brought danger and violence to our communities through their trafficking of illegal drugs,” said FBI Special Agent in Charge Eric B. Smith. “The FBI's well established law enforcement network, through long standing task force partnerships, have disrupted this illegal business and these defendants will be held accountable in court.”
“The success of this law enforcement operation and others like it, would not be possible without the collaborative efforts of the Mahoning Valley Law Enforcement Task Force (MVLETF) and Federal Bureau of Investigation,” said Sergeant Laurence McLaughlin, Commander of the MVLETF. “The Youngstown FBI office and MVLETF have a long history of working together and continue to have a positive impact in reducing narcotics trafficking and violence within Mahoning Valley. The MVLETF is thankful for their professional working relationships with the Department of Justice and the FBI.”
“There is no place in our community for those who use firearms for violent, criminal purposes,” said Kyle Walton, Acting Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at the federal, state, and local levels to ensure those individuals are brought to justice.”
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique
to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These case are being prosecuted by Assistant U.S. Attorney David M. Toepfer. They were investigated by Federal Bureau of Investigation, the Mahoning Valley Law Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department.
The MVLETF is comprised of agents and officers from the Austintown Police Department , ATF, FBI , Hubbard City Police Department, Liberty Township Police Department, Poland Township Police Department, Mahoning County Sheriff's Office, Mahoning County Prosecutor’s Office, Ohio Adult Parole Authority, Ohio State Board of Pharmacy, Springfield Police Department, Struthers City Police Department, Vienna Township Police Department, Youngstown City Police Department and Youngstown State University Police Department .
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.
Dunn Man Sentenced to 12 Years for Drug Trafficking and Firearm OffenseRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced ERNEST TERRELL MCKOY, 31, of Dunn, NC, to 144 months imprisonment, followed by 5 years supervised release.
MCKOY was named in a three-count Superseding Indictment filed on November 7, 2018. On January 3, 2019, MCKOY pled guilty to Distribution of a Quantity of Methamphetamine and to Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On November 6, 2017, investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) utilized a confidential informant to purchase an unspecified amount of methamphetamine (meth) from MCKOY at his residence in Dunn, North Carolina. On July 3, 2018, deputies with the Johnston County Sheriff’s Office conducted a traffic stop of a vehicle driven by MCKOY. A search of the vehicle resulted in the seizure of a stolen Glock 9mm semi-automatic pistol, ammunition, and a large capacity magazine in a bag behind the front passenger seat. Investigation determined that the firearm was reported stolen in Johnston County on September 2, 2017.
On September 7, 2018, MCKOY was arrested federally for possessing a firearm on July 3, 2018. Subsequent to his arrest, MCKOY provided a statement to investigators during which he admitted to selling 85.05 grams of crystal meth every other day for about eight or nine months. MCKOY also admitted to purchasing 7.0875 grams of heroin six times (42.53 grams of heroin). MCKOY stated that he possessed the firearm on July 3, 2018, because he sold narcotics. MCKOY stated that he traded 2 grams of narcotics and $400 in U.S. currency for the firearm in approximately September 2017.
On September 11, 2018, a search of MCKOY and his belongings prior to his initial appearance in federal court in Raleigh, resulted in the seizure of an unspecified amount of methamphetamine.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by ATF and the Johnston County Sheriff’s Office. Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Drasco Man Indicted for Failing to Pay over Employment TaxRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Tamera Cantu, Special Agent in Charge of the IRS-Criminal Investigation Dallas Field Office, announced today the indictment of Chris Michael Guidry, 44, of Drasco, for allegedly failing to pay over employment tax.
Guidry appeared today before United States Magistrate Judge Jerome T. Kearney, and was released on bond. Trial is set for May 13, 2019.
Guidry was the sole member and owner of Top Drive Solutions, LLC, and the sole officer of TDS Corp., which were oil and gas consulting businesses. Guidry exercised control over every aspect of Top Drive Solutions’ and TDS Corp’s business affairs and had the responsibility to collect, truthfully account for, and pay over their payroll taxes to the Internal Revenue Service.
Guidry was required to withhold from the wages of his employees the employees’ share of FICA taxes and income taxes, to account for the taxes, and to pay the withheld amounts over to the United States.
The indictment, which was returned by a grand jury on April 3, 2019, charges Guidry with 11 felony counts of willful failure to pay over tax. According to the indictment, throughout the calendar years 2012, 2013, 2014, 2015, and 2016, Top Drive Solutions and TDS Corp. withheld taxes from its employees’ paychecks, including federal income taxes, Medicare, and Social Security taxes, but failed to pay those withheld taxes to the IRS.
It is alleged that Guidry then caused Top Drive Solutions and TDS Corp. to make thousands of dollars of expenditures for his own personal benefit while, at the same time, failing to pay over to the IRS at least $663,872.41 in payroll taxes withheld from his employees’ paychecks.
The investigation was conducted by IRS Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Chris Givens from the Eastern District of Arkansas.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
https://www.justice.gov/usao-edar
Twitter:
@EDARNEWS
Department of Justice to Hold Workshop on Competition in Television and Digital AdvertisingRead the Press Release
The Department of Justice will hold a public workshop on May 2-3, 2019, to explore industry dynamics in media advertising and the implications for antitrust enforcement and policy, including merger enforcement. The workshop will cover the different types of television and online advertising, and it will highlight, among other developments in the industry, the role of online and mobile advertising networks. Panelists will discuss a range of topics, including how each type of advertising may fit into an advertising campaign, how inventory is priced, the economics of advertising, developments in advertising technologies, the effects from changes in consumer behavior, and the competitive dynamics of media advertising in general, in light of the rise of digital advertising.
Assistant Attorney General Makan Delrahim for the Department of Justice’s Antitrust Division will open the workshop, which will bring together academics and high level executives from leading companies, including buyers and sellers of advertising inventory. The Division intends to explore the practical considerations that industry participants face and the competitive impact of technological developments such as digital and targeted advertising in media markets. The workshop will consist of a series of panels examining (1) television advertising; (2) internet and mobile advertising; (3) the competitive dynamics in media advertising; and (4) trends and predictions for advertising generally.
The Department of Justice invites comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through June 15, 2019, at [email protected].
The workshop is free and open to the public and will take place at the Anne K. Bingaman Auditorium and Lecture Hall, Liberty Square Building, 450 5th St. N.W., Washington, D.C., from 1:30 p.m. to 5:30 p.m. EDT on Thursday, May 2, 2019, and 9:30 a.m. to 1:00 p.m. EDT on Friday, May 3, 2019. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available in the near future on the event web page. Attendees are encouraged, but not required, to register in advance for each day of the workshop at [email protected]. Members of the press should also copy Jeremy Edwards in the Office of Public Affairs at [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Jeremy Edwards at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we require further information.
Defendant Sentenced to Federal Prison in Operation Third World Targeting Drug Trafficking OrganizationRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced KELLY D. WILLIAMS, age 43, of Zachary, Louisiana, to 262 months in federal prison following his convictions for conspiracy to distribute and to possess with the intent to distribute cocaine, distribution of crack cocaine and oxycodone, conspiracy to acquire controlled substances by fraud, and unlawful use of a communication facility. The Court also sentenced WILLIAMS to 5 years of supervised release following his term of imprisonment. The court also ordered a judgement of forfeiture in the amount of $1,020,340.00.
According to admissions made as part of his guilty plea, WILLIAMS conspired with numerous individuals to obtain, distribute, and possess with the intent to distribute, large quantities of cocaine in excess of five kilograms and did conspire knowingly and intentionally to acquire and obtain possession of controlled substances by misrepresentation, fraud and deception.
As part of the conspiracy, WILLIAMS purchased multi- kilogram quantities of cocaine and distributed various amounts of cocaine and crack cocaine to his co-conspirators for further distribution in the Baton Rouge area. WILLIAMS also used violence and the threat of violence in order to advance the conspiracy.
U.S. Attorney Fremin stated, “Violent drug dealers have no place in our communities. Our office will use every resource at our disposal to ensure that those who peddle drugs and violence will be kept off of our streets. I want to thank our prosecutors, and our federal, state, and local partners for their efforts.”
DEA Acting Assistant Special Agent in Charge Michael Arnett said, “Cocaine and crack cocaine destroy lives and have far-reaching negative effects in the communities where they take hold. Side by side with our local law enforcement partners, DEA is holding drug dealers accountable. Together, we are putting dealers where they belong – behind bars. Let this conviction be a clear message to all that if you distribute drugs in this region, you will be identified, investigated and prosecuted to the fullest extent of the law.”
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Operation Third World was handled by the U.S. Attorney’s Office, the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter was prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
Defendant Pleads Guilty in MS-13 Racketeering Case, Accepts Responsibility for MurderRead the Press Release
COLUMBUS, Ohio – Jorge A. Landaverde, 35, of Columbus, pleaded guilty in U.S. District Court to murder in aid of racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Interim Columbus Police Chief Thomas Quinlan announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Landaverde is one of 23 individuals charged in a second superseding indictment in February 2018 who are alleged to be members and associates of MS-13 in Columbus.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The second superseding indictment alleges that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
As part of his plea, Landaverde accepted responsibility for his role in the murder of Martinez-Diaz. Landaverde faces a maximum sentence of life in prison.
Also in federal court in Columbus today, an associate of the MS-13 enterprise was sentenced. Carolina Garcia-Miranda, 31, of Columbus, was sentenced to 18 months in prison for racketeering conspiracy. She will receive credit for time served. She admitted to wiring money gained through illegal activity from the United States to El Salvador, Honduras, and elsewhere at the direction of MS-13 members. These transactions helped conceal the nature and source of the funds and assisted in promoting MS-13’s activities and operations.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
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Columbia Man Sentenced After Leaving Nearly a Kilo of Meth in Rental VehicleRead the Press Release
KANSAS CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today after his wife returned a rental vehicle with nearly a kilogram of methamphetamine in the trunk.
Milton Tyron McGruder, 37, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
On Sept. 18, 2018, McGruder pleaded guilty to possessing methamphetamine with the intent to distribute.
On Aug. 4, 2017, employees at Enterprise Rent-a-Car in Columbia found a black toiletry bag in the back trunk area of a GMC Yukon that had been returned by McGruder’s wife. Inside the bag was a vacuum-sealed Ziploc bag that contained approximately 934 grams of methamphetamine.
After returning the rental car, but before the black toiletry bag had been found, McGruder’s wife called Enterprise and claimed that $700 in cash had been left in the Yukon. She asked if Enterprise employees had found it. Nothing had been found at that point, so she was told that nothing had been recovered. She then asked if she could re-rent the Yukon, but was told that the vehicle had already been rented.
After the call from McGruder’s wife, an Enterprise employee went back outside to the Yukon and searched it. The toiletry bag containing methamphetamine was located in the trunk of the Yukon in the long, rectangular, spare tire compartment. Enterpise employees then called the police department.
McGruder and his wife came to Enterprise and acted as if they wanted to rent another vehicle. An Enterprise employee accompanied them outside to show them another vehicle; however, McGruder went straight to the Yukon and proceeded to search it. McGruder went back inside and asked an employee if they had found a small black toiletry bag. When told that no such bag had been found, McGruder and his wife left Enterprise without renting another vehicle.
McGruder returned while police officers were speaking with Enterprise employees and he was arrested. He told officers that his wife had returned the car while he was still asleep. After a drug canine alerted to the vehicle driven by McGruder, officers searched it and found a loaded SCCY, CPX-2 9mm pistol, nine Adderall pills, marijuana, methamphetamine, and assorted cell phones.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.
Citizen of Mexico Sentenced for Illegally Reentering the U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SIMON RODRIGO TORAL-CONTRERAS, 46, a citizen of Mexico last residing in Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to approximately five months of imprisonment, time already served, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in May 2018, Toral-Contreras was arrested by the Waterbury Police Department for misdemeanor offenses. In June 2018, he was deported from the U.S. to Mexico. In August 2018, U.S. Border Patrol encountered Toral-Contreras in Brownsville, Texas. He as was subsequently charged and convicted in the Southern District of Texas of illegal entry and was again removed to Mexico.
On October 10, 2018, Toral-Contreras was arrested by the Waterbury Police Department and charged with felony drug offenses.
Toral-Contreras has been detained in federal custody since November 1, 2018. On January 17, 2019, he pleaded guilty in federal court to one count of reentry of a removed alien.
On March 22, 2019, Toral-Contreras pleaded guilty in state court to operation of a drug factory and possession with intent to sell a narcotic drug, and was sentenced to three years of imprisonment, execution suspended and conditional discharge.
This investigation was conducted by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Detention and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Citizen of El Salvador Pleads Guilty to Immigration ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WALTER ARNULFO GUZMAN RIVAS, 39, a citizen of El Salvador last residing in Stamford, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of reentry of a removed alien.
According to court documents and statements made in court, in July 2005, Guzman Rivas was deported from the U.S. to El Salvador after being convicted in Texas of three counts of assault on a family member. He illegally reentered the U.S. and, in 2006, was convicted in Kentucky of two counts of robbery in the second degree, for which he was sentenced to 10-years of incarceration. He was again deported to El Salvador in July 2009.
In April 2018, Guzman Rivas was arrested by the Stamford Police Department and charged with sex assault, risk of injury and illegal sexual contact offenses.
Judge Meyer scheduled sentencing for July 11, 2019, at which time Guzman Rivas faces a maximum term of imprisonment of 10 years for illegal reentry.
The state charges against Guzman Rivas are pending.
This investigation is being conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cincinnati woman sentenced to 20 years for leading meth trafficking organizationRead the Press Release
CINCINNATI – Stacey Howell, 42, aka “Ice Queen”, of Cincinnati was sentenced in U.S. District Court today to 240 months in prison for leading a drug trafficking organization that obtained high grade methamphetamine from Mexico and distributed it in southern Ohio, Kentucky and Indiana.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), the Northeast Hamilton County Drug Task Force (DART), Harrison Police Chief Charles Lindsey, the Butler County Undercover Narcotics Unit (BURN), and the Gwinnett County, Georgia District Attorney’s Office announced the sentence imposed today U.S. District Judge Timothy Black.
Court documents say Howell and her husband, Thomas Wilson, 45, aka “Michalo”, acquired the drugs from sources in Mexico. Wilson was an associate of the Mexican Mafia, Surenos-13 and La Familia from Michoacan, Mexico. They built an organization that trafficked the drugs in Ohio, Kentucky and Indiana beginning in 2012. She arranged for large quantities of meth to be delivered from Mexico to Texas, Georgia and elsewhere. Either she, her husband or another member of the organization would pick up the drugs and bring them back to the tri-state for distribution. Howell paid members of the organization with cash, green dot cards, trading memorabilia or with vehicles. Howell was the lead defendant in an indictment returned in 2015 charging 16 people with conspiracy and drug trafficking. Howell pleaded guilty March 9, 2018.
“Eight of the defendants have been sentenced so far and have received sentences ranging from one to 20 years behind bars,” U.S. Attorney Glassman said. “The severity of the sentences reflects the reach of the organization and the destructive impact drug trafficking organizations have on our region. Whether opioids, meth or other stimulants, we need to maintain the highest levels of vigilance about the foreign and domestic threat of illegal drugs.”
Wilson was sentenced to 20 years in prison on March 28, 2018. A third leader of the organization, Norman Kuhbander, 54, aka “Flacco” and “Stormin Norman”, pleaded guilty and was sentenced on March 22, 2018 to 180 months in prison. Kuhbander also forfeited ten firearms, three compound Bows, a Kevlar armor vest, and assorted ammunition.
“HSI is committed to eliminating criminal enterprises that peddle poison to the streets of Ohio; narcotics investigations now make up 50 percent of all HSI cases,” said Francis. “Joint investigations such as this disrupt and dismantle international drug trafficking operations from top to bottom and have an immediate positive impact on the community.”
Glassman commended the cooperative investigation by the HSI offices in Cincinnati and Atlanta, the local agencies and task forces, and Criminal Chief Kenneth L. Parker and Assistant U.S. Attorney Timothy Oakley, who represented the United States in the case.
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Charity Executives, Former Arkansas State Senator Indicted for Embezzlement and Public Corruption SchemeRead the Press Release
Two former executives of a Springfield, Missouri-based charity and a former Arkansas state senator have been indicted by a federal grand jury for their roles in a multi-million-dollar public corruption scheme that involved embezzlement, bribes and illegal campaign contributions for elected public officials in Missouri and Arkansas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Tim Garrison of the Western District of Missouri.
Bontiea Bernedette Goss, 63, her husband, Tommy Ray Goss, aka “Tom,” 63, both residents of Springfield, Missouri, and Boulder, Colorado, and Jeremy Young Hutchinson, 45, of Little Rock, Arkansas, were charged on March 29, 2019, in a 32-count indictment by a federal grand jury in Springfield, which was unsealed today.
The indictment alleges that the Gosses, who were high-level executives at Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), and Hutchinson, who is an attorney and served as a state senator in the Arkansas Senate from 2011 to 2018, along with others, participated in a conspiracy from 2005 to November 2017 to embezzle and misapply the funds of a charitable organization that received federal funds, to pay bribes and kickbacks to elected officials (including Hutchinson), and to deprive the citizens of Arkansas of their right to the honest services of those elected officials. According to the indictment, in exchange for the bribes and kickbacks offered by the Gosses and other co-conspirators, Hutchinson and other elected officials allegedly provided favorable legislative and official action for the charity, including directing funds from the state’s General Improvement Fund (GIF).
The indictment also alleges that the Gosses and others defrauded the charity, and the governmental entities that funded the charity, by embezzling and misapplying charity funds for their personal benefit, including, but not limited to:
- causing the charity to pay for chartered air flights for the Gosses to commute between their home in Colorado and their work at the charity’s office in Springfield;
- providing millions of dollars in interest-free loans to their for-profit companies;
- charging the charity inflated prices to lease vehicles from their for-profit companies;
- renting charity-owned commercial real estate to one of their for-profit companies at below-market rates or, in some instances, for free; and
- using charity funds to pay for personal services for themselves, including child and pet care, housekeeping and cleaning their personal residences, picking up and delivering groceries, and shoveling snow, among other personal services paid for by the charity.
The indictment also contains a forfeiture allegation, which would require the Gosses and Hutchinson to forfeit to the government any property obtained from the proceeds of the alleged offenses.
The charity was known as Alternative Opportunities Inc. from its founding in 1991 until its 2015 merger with Preferred Family Healthcare. The charity, which is cooperating with federal investigators, provided a variety of services to individuals in Arkansas, Illinois, Kansas, Missouri and Oklahoma, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities and medical services.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by IRS Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC). This is a combined investigation by the Criminal Division’s Public Integrity Section, the U.S. Attorney’s Offices in the Western District of Arkansas and the Eastern District of Arkansas. The case is being prosecuted by Trial Attorney Marco A. Palmieri of the Public Integrity Section, Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Missouri, Special Assistant U.S. Attorney Ben Wulff of the Western District of Arkansas and Special Assistant U.S. Attorney Stephanie Mazzanti of the Eastern District of Arkansas.
Charity Executives, Arkansas State Senator Indicted for Embezzlement and Public Corruption SchemeRead the Press Release
SPRINGFIELD, Mo. – Two former executives of a Springfield, Mo.-based charity and an Arkansas state senator have been indicted by a federal grand jury for their roles in a multi-million-dollar public corruption scheme that involved embezzlement, bribes and illegal campaign contributions for elected public officials in Missouri and Arkansas, announced U.S. Attorney Tim Garrison of the Western District of Missouri and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Bontiea Bernedette Goss, 63, her husband, Tommy Ray Goss, also known as “Tom,” 63, residents of Springfield, Mo., and Boulder, Colo., and Jeremy Young Hutchinson, 45, of Little Rock, Ark., were charged on March 29, 2019, in a 32-count indictment by a federal grand jury in Springfield, Mo., which was unsealed today.
The indictment alleges that the Gosses, who were high-level executives at Preferred Family Healthcare, Inc. (formerly known as Alternative Opportunities, Inc.), and Hutchinson, who is an attorney and served as a state senator in the Arkansas Senate from 2011 to 2018, along with others, participated in a conspiracy from 2005 to November 2017 to embezzle and misapply the funds of a charitable organization that received federal funds, to pay bribes and kickbacks to elected officials (including Hutchinson), and to deprive the citizens of Arkansas of their right to the honest services of those elected officials. According to the indictment, in exchange for the bribes and kickbacks offered by the Gosses and other co-conspirators, Hutchinson and other elected officials allegedly provided favorable legislative and official action for the charity, including directing funds from the state’s General Improvement Fund (GIF).
The indictment also alleges that the Gosses and others defrauded the charity, and the governmental entities that funded the charity, by embezzling and misapplying charity funds for their personal benefit, including, but not limited to:
• causing the charity to pay for chartered air flights for the Gosses to commute between their home in Colorado and their work at the charity’s office in Springfield; • providing millions of dollars in interest-free loans to their for-profit companies; • charging the charity inflated prices to lease vehicles from their for-profit companies; • renting charity-owned commercial real estate to one of their for-profit companies at below-market rates or, in some instances, for free; and
• using charity funds to pay for personal services for themselves, including child and pet care, housekeeping and cleaning their personal residences, picking up and delivering groceries, and shoveling snow, among other personal services paid for by the charity.The indictment also contains a forfeiture allegation, which would require the Gosses and Hutchinson to forfeit to the government any property obtained from the proceeds of the alleged offenses.
The charity was known as Alternative Opportunities, Inc. from its founding in 1991 until its 2015 merger with Preferred Family Healthcare. The charity, which is cooperating with federal investigators, provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities and medical services.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is the culmination of a two-and-a-half-year investigation, and is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Missouri; Trial Attorney Marco A. Palmieri with the Public Integrity Section of the Department of Justice’s Criminal Division; Special Assistant U.S. Attorney Ben Wulff of the Western District of Arkansas; and Special Assistant U.S. Attorney Stephanie Mazzanti of the Eastern District of Arkansas. It was investigated by IRS-Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC). This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, and the Public Integrity Section of the Department of Justice.
Canadian National Arrested Aboard Sailing Vessel in International Waters Off Oregon Coast, Methamphetamine SeizedRead the Press Release
PORTLAND, Ore.—A criminal complaint was filed today in federal court alleging John Phillip Stirling, 65, a citizen of Canada, illegally possessed with the intent to distribute methamphetamine aboard a U.S. flagged vessel.
According to court documents, on April 9, 2019, while on a routine patrol, the U.S. Coast Guard Cutter Alert detected a sailing vessel traveling north 225 nautical miles from Newport, Oregon. The vessel, named Mandalay, had a home port of Seattle, Washington and visible U.S. registration numbers. When Coast Guard personnel attempted to communicate with Stirling, he went below deck and would only respond via VHF radio. Once Coast Guard personnel determined the Mandalay was a U.S. flagged vessel, they boarded and found Stirling to be the vessel’s sole occupant.
Stirling stated he did not have vessel documentation and refused to produce identification. Upon further questioning, Sterling’s speech began to deteriorate and he displayed signs of a possible drug overdose. Coast Guard personnel administered medical aid to Stirling and evacuated him by helicopter to Astoria, Oregon. He was later transported by ambulance to Adventist Health Portland for additional treatment.
Coast Guard personnel conducted a search of the Mandalay and discovered 28 seven-gallon jugs containing liquid methamphetamine.
Stirling made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. Stirling was ordered detained pending trial.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the U.S. Coast Guard Investigative Service (CGIS) and Homeland Security Investigations (HSI).
California Man Sentenced to Life in Federal Prison for Sexually Exploiting Minor in OrlandoRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Deepak Deshpande (41, Dublin, California) to life in federal prison for enticing a minor to engage in sexual conduct, and 30 years’ imprisonment for production of child pornography. Deshpande had pleaded guilty on October 29, 2018.
According to court documents and evidence presented during the sentencing hearing, in July 2017, Deshpande contacted a minor in Orlando through an online chat application. At that time, Deshpande posed as a modeling agent and persuaded the minor to send him nude images of herself. In the months that followed, Deshpande contacted the same minor, posing as two other individuals, and threatened to disseminate her nude images if she did not continue producing additional child pornography for him.
In September 2017, Deshpande traveled to Orlando from California to meet the minor in person for the first time. He brought her to a local hotel, and filmed himself sexually assaulting the victim multiple times. Between September 2017 and April 2018, he repeated this same conduct during four additional visits to Orlando.
In early May 2018, following an anonymous tip, the FBI began investigating Deshpande. An undercover FBI agent then began posing as the minor in communications with Deshpande. On May 12, 2018, as a result of the undercover investigation, Deshpande returned to Orlando and was arrested upon his arrival at the Orlando International Airport.
Following his arrest, Deshpande plotted to kidnap and murder the minor victim in advance of his trial. Deshpande recruited a fellow inmate, whom he believed would soon be released, to serve as a middleman. Deshpande gave the inmate names and contact information for individuals who might be willing to carry out the abduction and murder, and furnished personal details concerning the victim and her family, including her residence and schedule. Upon learning of the plot, the FBI conducted an undercover investigation and Deshpande’s efforts were ultimately unsuccessful.
“Those who work the FBI’s Violent Crimes Against Children program bring compassion, commitment, and steadfast determination to their investigations to ensure predators like this are brought to justice,” said Eric Sporre, Special Agent in Charge of the FBI Tampa Division. “This case is particularly noteworthy in the level of planning conducted and depravity displayed by the perpetrator. I would like to recognize the courage of the victim who helped make sure this predator cannot hurt others and also encourage our community to remain vigilant online and report any suspicious activity to law enforcement.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bronx Man Convicted of Defacing African Burial Ground National Monument with Threatening Racial SlurRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that IVAN NIEVES was convicted of vandalism for defacing a sign on the grounds of the African Burial Ground National Monument by writing a threatening racial slur on it. The conviction follows a bench trial before U.S. Magistrate Judge Ona T. Wang.
U.S. Attorney Geoffrey S. Berman said: “The protections of the First Amendment do not extend to defacing federal property. Ivan Nieves was rightly found guilty today for defacing the African Burial Ground National Monument with racial slurs.”
According to the evidence presented during the trial:
On the morning of November 1, 2018, NIEVES wrote “Kill N----rs” in large bold letters across the face of a signpost entitled “A Place of Remembrance” in front of the African Burial Ground National Monument, which is located at the corner of Duane Street and Elk Street in Manhattan. The monument commemorates the skeletal remains of approximately 15,000 African slaves who built the early City of New York. Those remains were discovered in 1991 buried 30 feet beneath the streets of the city across more than six acres in lower Manhattan.
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NIEVES, 57, of the Bronx, New York, was convicted of one count of vandalism, which carries a maximum penalty of six months in prison. NIEVES was acquitted of one count of disorderly conduct. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. NIEVES is scheduled to be sentenced before Judge Wang on July 17, 2019, at 11:00 a.m.
Mr. Berman praised the outstanding investigative work of the Federal Protective Service, the New York City Police Department Hate Crimes Task Force, and the United States Park Police. Mr. Berman also thanked the National Park Service for its dedication and assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jacob R. Fiddelman and Sagar K. Ravi are in charge of the prosecution.