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Friday 1 March 2019
Danville Man Convicted in Spree of Seven Armed Robberies Throughout VirginiaRead the Press Release
Lynchburg, VIRGINIA – A Danville man was convicted yesterday following a three-day jury trial of committing seven robberies and other charges related to numerous armed robberies of businesses in Danville, Bedford and Rocky Mount, Virginia and in Prospect Hill, North Carolina. United States Attorney Thomas T. Cullen made the announcement today as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods (PSN) initiative to reduce violent crime.
A jury sitting in U.S. District Court in Lynchburg convicted Justin Lee Stallings, 33, yesterday of six counts of Hobbs Act robbery, one count of conspiracy to commit Hobbs Act Robbery, six counts of using a firearm in commission of a Hobbs Act robbery, and one count of being a convicted felon illegally in possession of a firearm.
“We are committed to working with our federal, state, and local partners to prosecute those who commit acts of violence in our communities,” U.S. Attorney Cullen stated. “Individuals, like Mr. Stallings, who unlawfully possess firearms and who use firearms to commit other violent acts, face very lengthy terms in federal prison. I am grateful for the leadership of the FBI in our PSN and anti-violence initiatives in the Southside and greater-Roanoke regions, as well as for the hard work of our local law-enforcement partners.”
“Residents of Danville, the Commonwealth of Virginia, and the State of North Carolina, are safer today as a result of Mr. Stallings' federal trial conviction in the Western District of Virginia. This successful investigation represents a collaborative effort by a team of dedicated federal and local law enforcement professionals working in concert under the PSN initiative,” said Thomas M. Chadwick, Acting Special Agent in Charge of the FBI’s Richmond Division. “The FBI is fully committed to the U.S. Attorney's Office PSN mission and will continue to work closely with our state, local, and federal partners to use legal process to remove violent offenders such as Mr. Stallings from our communities.”
Evidence presented at trial proved that Stallings committed seven robberies between December of 2016 and February of 2017. Specifically, Stallings used a firearm to commit robberies at each of the following businesses while engaged in interstate commerce:
- Dollar General located on South Main Street in Danville, Va., on December 8, 2016;
- Dollar General located on Westover Drive in Danville, Va. on January 8, 2017;
- KFC located on Memorial Drive in Danville, Va., on January 11, 2017;
- Charles’s Stop N Shop located on Westover Drive in Danville, Va., on January 20, 2017;
- Dollar General located in Caswell County, North Carolina, on January 25, 2017;
- Dollar General located on Blue Ridge Avenue in Bedford, Va., on February 5, 2017;
- Dollar General located on Pell Avenue in Rocky Mount, Va., on February 6, 2017.
During each robbery, Stallings brandished a firearm, pointing it at the employees of the various businesses, and demanding cash and/or other goods from the cash register or store safe.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Danville Police Department, the Pittsylvania County Sheriff’s Office, the Caswell County (N.C.) Sheriff’s Office, the Bedford Police Department, the Rocky Mount Police Department and the Office of the Commonwealth’s Attorney for Bedford County. Assistant United States Attorneys Christopher Kavanaugh and Rachel Swartz prosecuted the case for the United States.
This case was brought as part of PSN the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dallas City Council Member Carolyn Davis Pleads Guilty to Accepting BribesRead the Press Release
Friday morning, four-term Dallas City Council Member Carolyn Davis pleaded guilty to accepting more than $40,000 in bribes, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
According to plea papers, Council Member Davis actively sought these bribes from a real estate developer who stood to benefit from her support of his low-income housing project.
In return for the money – plus the offer of a consulting contract once her tenure at the City Council concluded – Council Member Davis admits she lobbied and voted for the authorization of a $2.5 million development loan to fund the Royal Crest housing project, along with a City of Dallas resolution supporting 9 percent tax credits for Royal Crest, which was competing with another project. She also wielded her considerable influence as Chair of the Dallas Housing Committee in Royal Crest’s favor while advocating for the project with Dallas housing officials.
“Over the course of my 15-month tenure here at the U.S. Attorney’s Office, our team has been relentlessly dedicated to rooting out public corruption,” said U.S Attorney Nealy Cox. “I hope this case sends a message to public officials across our districts: When you prioritize your own financial interests ahead of your duty to you constituents, we will dig as deep as we have to in order to uncover the scheme. And we will bring you to justice.”
“As FBI Dallas continues to proactively investigate Public Officials who misuse their positions of trust, our investigative efforts will be just as focused on those who seek to use their personal wealth, influence, or facilitate relationships between those willing to pay or accept bribes,” said Eric K. Jackson, Special Agent in Charge of the FBI’s Dallas Division. “All of these actions continue to erode the public’s trust and do harm to the communities they were elected to serve.”
An Indictment charging the bribe payer, Ruel Hamilton, a principal with AmeriSouth Realty Group, was unsealed this morning as well.
According to the charging document, Mr. Hamilton allegedly paid out about a quarter of Council Member Davis’ bribe money – around $11,000 – in cash, often immediately after he withdrew the money from his bank account. The remaining 75 percent – roughly $29,500 – was funneled through a not-for-profit intermediary.
In an attempt to disguise the payments, Mr. Hamilton allegedly made out checks to the owner of the not-for-profit, then handed the checks to Council Member Davis, who delivered them to the not-for-profit owner; the owner then deposited or cashed these checks and gave the majority of the proceeds back to Council Member Davis. Not surprisingly, Council Member Davis did not disclose any of these payments to the City Council, or to the Housing Committee, or on her financial disclosure report.
According to the Indictment, Mr. Hamilton also bribed another public official, referred to in the documents as Council Person A, in August 2018. In return for Council Person A’s assistance in getting a referendum on the Council’s agenda and promoting another housing project, Mr. Hamilton wrote a $7,000 check to Council Person A to cover his personal needs.
Neither Council Member Davis nor Council Person A are currently serving in official capacities. Council Member Davis left office in 2016, and Council Person A’s tenure on the City Council ended August 9, 2018.
An indictment is merely an allegation of wrongdoing, not evidence. Mr. Hamilton is considered innocent until proven guilty in a court of law. If convicted, Mr. Hamilton faces up to 20 years in federal prison for two counts of bribery concerning a local government receiving federal benefits. Council Member Davis faces up to 5 years in federal prison on the charge to which she pleaded guilty, conspiracy to commit bribery concerning an agent of a local government receiving federal benefits.
The Federal Bureau of Investigation conducted the investigation with assistance from the Internal Revenue Service - Criminal Investigations. Assistant U.S. Attorneys Marcus Busch, Andrew Wirmani, and Chad Meacham prosecuted the case.
Crew Who Allegedly Robbed Eight Inland Empire AutoZone Stores Indicted on Federal Conspiracy, Robbery and Firearms ChargesRead the Press Release
RIVERSIDE, California – A federal grand jury today returned a 13-count indictment today against two men and a woman from Moreno Valley who allegedly committed at least eight armed robberies at AutoZone stores in the Inland Empire and made off with more than $11,000 in cash.
Daeon Raishawn Cox, 20; Dashon Raymond White, 24; and Jada Shardae Allen, 18, were charged with conspiracy to interfere with commerce by robbery. Cox and White are in local custody and are expected to be turned over to federal law enforcement officials on Monday. Allen, who was turned over to federal authorities on February 25 pursuant to a criminal complaint previously filed in this case, was freed on a $40,000 bond, and her arraignment is scheduled for March 13.
According to the indictment, over the course of three months late last year, Cox – who was alternately aided by White, Allen and an unindicted juvenile – robbed AutoZone stores in Riverside, San Bernardino, Grand Terrace, Redlands, Hemet and Fontana. Typically, the robbers entered the AutoZone stores at night, wearing black hoodies, black pants, gloves and with their faces covered by bandanas, according to the affidavit in support of the criminal complaint. The robbers allegedly pointed guns at AutoZone employees and forced them to hand over money from the cash register or from the store safe. The robberies netted the defendants around $1,000 per incident, the affidavit states.
The defendants were caught after an attempted robbery on December 12 was interrupted by Fontana police, who had been conducting surveillance at an AutoZone store in that city. A Fontana police officer witnessed Cox and White exit White’s gray Saturn SUV while Allen was seated in the back of the vehicle, according to the affidavit. Cox and White allegedly approached the AutoZone wearing black hooded sweatshirts and masks on their faces, while Cox carried an AR-15-type rifle and handed it to White. After the police officer identified himself, the defendants fled the scene, driving away in White’s SUV at a high rate of speed, court papers state. During the pursuit, the rifle was thrown from the SUV’s front passenger window onto the I-15 and I-210 freeway interchange. The car chase ended when White’s SUV crashed in Rancho Cucamonga and the defendants fled on foot. Cox was caught while hiding in a nearby garbage can, while White and Allen were arrested the next day at their residences, the affidavit states. Fontana police later recovered the rifle – which was loaded with eight rounds – from the shoulder of the freeway, court papers said.
In addition to the conspiracy count, Cox was charged with six substantive counts of interfering with commerce by robbery and six counts of using a firearm in furtherance of a violent crime. White also faces two robbery counts and two firearms counts, while Allen also was charged with one count of robbery and one firearm count.
If convicted, each defendants would face a statutory maximum sentence of 20 years in federal prison for each of the robbery-related charges, as well as a mandatory seven-year consecutive sentence for the firearms offenses.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation, the Fontana Police Department, the San Bernardino County Sheriff’s Department, the Riverside Police Department, the Hemet Police Department, the Redlands Police Department, the Moreno Valley Police Department, the Riverside County District Attorney’s Office and the San Bernardino County District Attorney’s Office.
This case is being prosecuted by Assistant United States Attorney Jerry Yang of the Riverside Branch Office.
Convicted Felon Found Guilty of Making False Statements on Federal Background Check Form and for Illegally Possessing FirearmsRead the Press Release
Memphis, TN –A convicted felon has been found guilty by a federal jury for making false statements on federal background check form ATF 4473 and for illegally possessing firearms. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
According to information presented in court, on April 8, 2008, Tyrone Todd was convicted of felony burglary of a dwelling in Tate County, MS. On July 11, 2016, Todd went to the AA pawnshop to buy a firearm. The AA pawnshop is a federal firearms licensee, which requires purchasers to complete a federal background check form prior to purchasing a firearm. In this case, Todd filled out the ATF Form 4473, indicating he was not a convicted felon and was therefore not prohibited from possessing a firearm. The firearm was later transferred to the defendant on July 30, 2016.
On June 8, 2018, Shelby County Sheriff Deputies responded to Todd’s home on an aggravated assault call after he violently assaulted his girlfriend. The defendant fled the scene when officers responded. Deputies searched the home and found his Smith & Wesson .40 caliber pistol under his bed.
The defendant was indicted for making a false statement on the ATF Form 4473 and with two counts of being a felon in possession of a firearm. On February 28, 2019, a federal jury convicted Todd on all three counts.
U.S. Attorney D. Michael Dunavant said, "Prosecutions of violent crimes must be paired with proactive prevention efforts to keep guns out of the hands of criminals and other prohibited persons. Convicted felons who attempt to thwart the background check process by lying on the required ATF forms threaten to undermine this important crime prevention tool, and such conduct cannot be tolerated. As part of our violence reduction strategy, we want to take guns out of the hands of dangerous people, and take violent offenders off our streets. Let this serve as a warning: This office will vigorously prosecute any prohibited persons who illegally obtain a firearm in these "lie-and-try" cases.
Sentencing is set for May 30, 2019 before U.S. District Court Judge John T. Fowlkes Jr. At that time, the United States anticipates presenting additional evidence regarding the assault the defendant committed against his then girlfriend on June 8, 2018. Todd faces up to 10 years imprisonment; a $250,000 fine and three years supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Shelby County Sheriff’s Office.
Assistant U.S. Attorneys J. William Crow and Karen Hartridge are prosecuting this case on the government’s behalf.
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Congolese National with Rape Conviction from the United Kingdom Charged with Asylum FraudRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Boston, and Roberto Quiroga, Resident Agent in Charge, U.S. Department of State’s Diplomatic Security Service, Bridgeport Resident Office, today announced that a federal grand jury in New Haven has returned an indictment charging KASEBA KATAMBWA, a.k.a. “Patrick Ndaya Katambwa,” “Katambwa Patrick Ndaya,” and “Patrick Katambwa Ndaya,” 50, with one count of making a false statement in an immigration document.
The indictment alleges that, in April 2018, Katambwa stated in an asylum application that his name was “Patrick Ndaya Katambwa,” “Katambwa Patrick Ndaya,” and “Patrick Katambwa Ndaya,” with a specific date of birth; that he had resided in the Democratic Republic of Congo (“DRC”) from February 1969 to January 2018; and that he had been arrested, convicted and sentenced, or imprisoned solely in the DRC, and not in any country other than the U.S. These statements were false. In addition to failing to state his true name and date of birth, Katambwa failed to state that he had resided in the United Kingdom for multiple years between February 1969 and January 2018, and that, under the name of Kaseba Katambwa, he had been previously convicted, sentenced, and imprisoned in the U.K. for rape, entering into an arrangement to facilitate the acquisition or use of criminal property, and dishonestly retaining a wrongful credit.
Katambwa, who was residing in Bridgeport, has been detained since his arrest on a federal criminal complaint on February 1, 2019. The indictment was returned on February 13, 2019. Katambwa appeared yesterday before U.S Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charge.
If convicted of the charge, Katambwa faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and U.S. Department of State’s Diplomatic Security Service. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Colombian National Pleads Guilty to Illegal Reentry and Immigration FraudRead the Press Release
BOSTON – A Colombian national pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation and to immigration document fraud.
Guillermo Pineda Suarez, 57, pleaded guilty to one count of illegal reentry of a deported alien, one count of possession and use of a false immigration document, and one count of false statements in an immigration document. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for March 26, 2019. Pineda Suarez is currently in state custody awaiting trial on unrelated charges.
On May 22, 2014, Pineda Suarez made a false statement under oath in a United States Citizenship and Immigration Services Form I-9 Employment Eligibility Verification Form and used a counterfeit U.S. Permanent Resident Card in order to obtain employment. On March 15, 2018, Pineda Suarez was encountered by law enforcement in Boston and determined to be unlawfully present in the United States. Pineda Suarez was previously deported on Nov. 9, 2001, after a conviction for a drug trafficking crime.
The illegal reentry charge provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. The remaining charges each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Pineda Suarez will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
Charleston Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Bree Eberbaugh, 28, pled guilty to one count of possession with intent to distribute fentanyl.
“According to data from the West Virginia Health Statistics Center, there have been 1,486 synthetic opioid-related overdose deaths among West Virginia residents from 2013-2017,” said United States Attorney Mike Stuart. “That’s why I am committed to prosecuting every case involving the illegal distribution of synthetic opioids. I will do everything within my power to save the lives of fellow West Virginians.”
Eberbaugh admitted that on August 28, 2017, her apartment was raided pursuant to a search warrant. During the search, over 50 grams of fentanyl was discovered. Eberbaugh stated that she believed she was selling heroin, but forensic analysts determined the substance to be fentanyl. Eberbaugh admitted that she helped arrange sales for the fentanyl and acknowledged that some fentanyl had been sold just prior to the search warrant. Eberbaugh also admitted that she had assisted another individual with selling and distributing fentanyl.
Eberbaugh faces a maximum of 20 years in federal prison when she is sentenced on July 1, 2019.
MDENT conducted the investigation. The plea hearing was held before United States District Judge David A. Faber. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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###Charleston Man Sentenced to Prison for Federal Firearms CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to 30 months in prison for a federal firearms crime, announced United States Attorney Michael B. Stuart. Michael Matthew Phillips, age 31, was convicted of possessing a firearm by a prohibited person in September of last year following a two-day jury trial. Senior District Court Judge David A. Faber presided over the trial and sentencing hearing.
“Another convicted felon with a gun,” said United States Attorney Mike Stuart. “We have prosecuted an outrageous number of these cases during the past year, and they just keep coming. And we’ll just keep prosecuting them.”
On January 24, 2017, Phillips was supposed to sell heroin and a firearm to a confidential informant. Phillips didn't bring heroin to the meeting because he was concerned that there were police officers in the area. However, Phillips took the confidential informant to an area where a 9mm handgun was hidden and sold the gun for $140. Phillips was a convicted felon and prohibited from possessing firearms.
The Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant United States Attorney R. Gregory McVey handled the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Charleston Man Sentenced for Federal Firearms CrimeRead the Press Release
CHARLESTON, W.Va. -- A Charleston, West Virginia man received a four year sentence for a federal firearms charge, announced United States Attorney Mike Stuart. Steven Belcher, 46, previously entered a guilty plea on May 23, 2018 to being a prohibited person in possession of a firearm. Stuart praised the work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). After he discharges his sentence, Mr. Belcher will be placed on supervised release for three years. Mr. Belcher further agreed to abandon any interest in the recovered firearms as a term of his guilty plea.
“Another prohibited person with a gun,” said United States Attorney Mike Stuart. “As a result of his previous federal convictions in 1998, Belcher was sentenced to 54 months in federal prison. Now he’s going back for another four years.”
On August 21, 2017, Mr. Belcher was found by the Charleston Police Department in possession of a 9 mm Lorcin pistol and five rounds of ammunition. Mr. Belcher was a prohibited person due to his prior federal felony convictions of conspiring to deliver cocaine base and conspiring to possess a fully automatic machine gun. Both federal felony convictions stemmed from Mr. Belcher’s guilty verdict following a jury trial on July 22, 1998. On November 24, 1998, Mr. Belcher was sentenced to fifty-four months in federal prison. Mr. Belcher’s prior felony convictions make him ineligible to possess either a firearm or the ammunition for a firearm. ATF traced Mr. Belcher’s Lorcin 9mm gun, revealing that it had traveled in interstate commerce and giving the federal government jurisdiction over this crime. In an unrelated incident, Mr. Belcher also admitted to possessing a 12 gauge Winchester shotgun on October 4, 2017. This particular shotgun was further modified to have an illegal barrel length of less than 18 inches (commonly called a “sawed-off shotgun”). This shotgun also traveled in interstate commerce, giving the federal government jurisdiction to prosecute this firearm crime as well. Finally, Mr. Belcher was caught in February 14, 2018 illegally possessing ammunition—specifically four 20 gauge shotgun shells.
Assistant United States Attorney Erik S. Goes prosecuted the case. The hearing was conducted before Senior United States District Judge David A. Faber.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Charleston Man Sentenced for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man, who previously pled guilty to drug and gun charges, was sentenced today to 120 months in prison, announced United States Attorney Mike Stuart. In September 2018, Shawn Gilmore, 49, pled guilty to all four counts of an indictment charging him with two counts of possession with intent to deliver heroin, possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of firearms. Stuart commended the investigation conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“10 years. 10 years in federal prison,” said United States Attorney Mike Stuart. “Gilmore had an extensive criminal history. He had guns. He was selling fentanyl laced heroin. Not the type of element we want to promote a thriving West Side community. We are working hard with our law enforcement partners to rid the West Side of people like Gilmore.”
Gilmore admitted that on March 8, 2018, he met an informant on Charleston’s west side to sell him heroin. An officer with Charleston Police Department stopped Gilmore and seized ½ gram of heroin he intended to sell to the informant. Officers searched Gilmore’s residence in Charleston and recovered over 100 grams of heroin and two loaded handguns. Gilmore has two prior felony convictions.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Canton Man Charged as Part of Largest Ponzi Scheme in Mississippi HistoryRead the Press Release
Jackson, Miss. – William B. McHenry, 71, of Canton, has been indicted by a federal grand jury for his role in a multi-million dollar Ponzi scheme that adversely affected hundreds of victims across multiple states over a number of years, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation in Mississippi.
McHenry appeared before U.S. Magistrate Judge Linda R. Anderson today for his initial appearance and arraignment on the Indictment. The case is currently scheduled for trial on April 15, 2019, before U.S. District Judge Carlton W. Reeves in Jackson.
"Those who prey upon and steal from others will soon find themselves on the wrong side of the law. We will continue to investigate this massive scheme wherever the evidence may take us and will vigorously pursue and bring to justice any other wrongdoers who were involved," said U.S. Attorney Hurst.
McHenry is charged with one count of securities fraud and two counts of wire fraud involving a scheme to defraud investors, all in connection with a Ponzi scheme using Madison Timber Properties, LLC, a company wholly owned by Arthur Lamar Adams. Adams has previously been convicted and sentenced for his role in the Ponzi scheme.
As charged in the Indictment, beginning as early as 2008 and continuing through April 2018, McHenry assisted in a scheme to defraud investors by soliciting millions of dollars of funds for Adams under false pretenses, failing to use the investors’ funds as promised, and converting investors’ funds to McHenry’s and Adams’s own benefit without the knowledge of the investors. Instead of investing McHenry’s clients’ money, Adams used the invested funds for
his own personal benefit and for purposes other than those represented to investors, which also included making payments due and owing to other investors, thus perpetuating the Ponzi scheme. During the fraudulent scheme, McHenry recruited investors, and fraudulently obtained well in excess of $18,000,000 from more than 25 investors located in multiple states.
As alleged in the Indictment, as part of the fraudulent scheme, McHenry falsely represented to investors that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price. The object of the scheme was to cause individuals to invest in loans that purportedly were for the purpose of financing contracts for the purchase of timber rights to be sold to lumber mills at a higher price. However, neither McHenry, Adams nor Madison Timber Properties had such timber rights or contracts with lumber mills, except in only a few instances.
McHenry and Adams entered into fraudulent investment contracts with investors, most often in the form of promissory notes on behalf of Madison Timber Properties. The loans typically guaranteed investors an interest rate of 12-13%, with the interest to be repaid to investors over the course of 12-13 months. The monthly payments due on these promissory notes were typically due on either the first or the fifteenth of the month.
McHenry and Adams created false documents causing investors to believe that their investments were secured by sufficient collateral from which they could recover all or part of their investment in the event that Madison Timber Properties defaulted on the loans. Specifically, Adams created false timber deeds purporting to be contracts conveying timber rights from landowners to Madison Timber Properties. Adams forged the signatures of landowners and also created false timber deeds purporting to convey timber rights from Madison Timber Properties to the investors.
To further lull investors, Adams had many of the documents notarized to make the investments appear legitimate. McHenry and Adams also required the investors to agree not to record their timber deeds unless Madison Timber Properties defaulted on the loan agreement by failing to make a payment.
McHenry misled his investors to think that McHenry was a principal officer of Madison Timber Properties and was personally invested with his own funds in the enterprise. Instead, McHenry in fact only received a ten percent commission on all the investments he recruited, which McHenry failed to disclose.
Following the 2018 criminal prosecution of Arthur Lamar Adams, the United States District Court appointed a receiver, who is actively seeking to recover and maximize assets for restitution to investor victims. Information regarding the Receiver’s activities can be found at the receiver’s website, madisontimberreceiver.com.
The case is being investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. The criminal case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Canton Man Arrested for Armed RobberyRead the Press Release
BOSTON – A Canton man was arrested yesterday and charged in federal court in Boston in connection with multiple armed robberies in Canton and Mattapan.
Jerron Perry, 27, was charged with interference with commerce by robbery and being a felon in possession of ammunition. Perry appeared in federal court in Boston yesterday and was remanded into custody pending a probable cause and detention hearing set for March 7, 2019.
According to the charging documents, on Sept. 22, 2018, Perry, wearing a mask, pointed a semi-automatic pistol at the store clerk of a Metro PCS store in Mattapan and demanded money from the register; he left the store with approximately $607. Perry is alleged to have robbed that same store again in the same manner on Oct. 25, 2018, stealing $359. It is further alleged that Perry committed a similar armed robbery at a convenience store in Canton on Oct. 31, 2018, stealing an unknown amount of cash.
A search of Perry’s residence on Feb. 28, 2019, resulted in the discovery of clothing that matched the suspect’s clothes and two shell casings. Due to a 2013 conviction for assault and battery by means of a dangerous weapon, Perry is prohibited from possessing ammunition.
The charge of interference with commerce by robbery provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of up to $ 250,000. The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation; Boston Police Commissioner William G. Gross; and Canton Police Chief Kenneth Berkowitz made the announcement. Assistant U.S. Attorney Theodore Merritt of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man, Courier for Mexico-based Drug Trafficking Organization, Sentenced to Imprisonment for Fourteen YearsRead the Press Release
United States Attorney Joe Kelly announced that on March 1, 2019, United States District Judge Robert F. Rossiter, Jr. sentenced John F. Haller III to a term of imprisonment of 168 months, to be served in the U.S. Bureau of Prisons. Haller, 51, of Riverside, California, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine.
In July of 2017, Haller delivered approximately 50 pounds of methamphetamine on behalf of a Mexico-based drug trafficking organization to another defendant at a gas station in Gretna, Nebraska. The methamphetamine was intended for distribution in the Omaha/Council Bluffs metropolitan area. One month later, in August of 2017, a Summit County, Utah, Sheriff’s Deputy stopped a pickup truck heading east toward Omaha on Interstate 15. Haller was a passenger in the truck. Officers searched the vehicle and recovered a garbage bag containing approximately 10 pounds of methamphetamine. At the time of the traffic stop, Haller claimed the methamphetamine and admitted he made additional trips and deliveries on behalf of the organization.
Haller was indicted federally in Utah and in Nebraska, but the Utah case was transferred to the District of Nebraska for disposition.
The case was primarily investigated by the Omaha Field Division of the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations.
Brandon Wilson, Member of Violent West Baltimore Gang, Sentenced to 25 Years in Prison for Federal Racketeering and Drug Conspiracies, and Gun ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact MARCIA MURPHY
www.justice.gov/usao/md at (410) 209-4854
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Brandon Wilson, a/k/a Ali, age 24, of Baltimore, Maryland, to 25 years in prison, followed by five years of supervised release, for conspiring to participate in a drug distribution conspiracy and a violent racketeering enterprise known as Trained To Go (TTG). The racketeering conspiracy included eight murders, as well as drug trafficking and witness intimidation. Wilson and his co-defendants were also convicted of a drug distribution conspiracy involving heroin, marijuana, and cocaine. Wilson was convicted of possession of a firearm in furtherance of a drug trafficking crime and of being a felon in possession of a firearm. The firearm was linked to a murder which occurred the day before the gun was found in Wilson’s home. A federal jury convicted Wilson and seven co-defendants on October 31, 2018.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Acting Commissioner Michael Harrison of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the evidence presented at their 24-day trial, Wilson and his co-defendants are all members of TTG, a criminal organization that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The evidence at trial showed that members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. Specifically, the evidence proved that between May 20, 2010 and January 9, 2017, Wilson, his co-defendants, and other members of TTG committed acts of violence, including eight murders, shootings, armed robbery, and witness intimidation. Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes. A gun recovered during a search of Wilson’s residence on January 10, 2017, was determined to have been used in a murder on January 9, 2017. Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.
The leader of the gang, Montana Barronette, a/k/a Tana, and Tanner, age 23, of Baltimore, was sentenced to life in federal prison on February 15, 2019.
The remaining defendants convicted at the trial are all from Baltimore, and face a maximum sentence of life in federal prison on the racketeering and drug conspiracies. They include:
Terrell Sivells, a/k/a Rell, age 27; John Harrison, a/k/a Binkie, age 28; Taurus Tillman, a/k/a Tash, age 29; Linton Broughton, a/k/a Marty, age 25; Dennis Pulley, a/k/a Denmo, age 31; and Timothy Floyd, a/k/a Tim Rod, age 28.
The defendants remain detained.
Three other TTG members previously pleaded guilty and were sentenced to between five and 25 years in prison. Another defendant, Roger Taylor, a/k/a Milk, is a fugitive.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments. The FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its 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.
Wilson is still facing charges for allegedly assaulting employees of the U.S. Marshals Service (USMS) while he was detained and being transported to and from the courtroom during their trial. The indictment alleges that on October 31, 2018, Wilson assaulted two Maryland Department of Correction officers in the Chesapeake Detention Facility as they attempted to search Wilson prior to his being transported to U.S. District Court for the continuation of his trial. If convicted of the assault charges, Wilson faces a maximum sentence of eight years in federal prison. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. The U.S. Marshals Service is investigating the case.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, the Baltimore Police Department, the ATF, the DEA, the Anne Arundel County Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner, Christopher J. Romano, and Special Assistant U.S. Attorney John C. Hanley formerly of the Justice Department’s Organized Crime and Gang Section, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Brandon Man Sentenced to Seven Years in Prison Under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Joel Wendell Beckham, 32, of Brandon, was sentenced yesterday by U.S. District Judge David C. Bramlette III to 84 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and U.S. Marshal Mark Shepherd. Beckham was also ordered to pay a $1,500 fine.
On January 4, 2018, members of the U.S. Marshal Service Gulf Coast Regional Fugitive Task Force executed an arrest warrant and apprehended Joel Wendell Beckham at a residence in Jackson on a felony warrant from the Rankin County Sheriff’s Department for failure to appear for a revocation hearing. Upon making entry, task force officers made contact with Beckham in the rear bedroom. A KAHR, .40 caliber, semi-automatic pistol and a clear plastic bag with methamphetamine was found under the desk where Beckham was standing. During an interview, Beckham admitted to possession of the weapon.
Beckham was previously convicted in the Circuit Court of Rankin County for the felony offense of conspiracy to transfer a controlled substance.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation and the U.S. Marshal Service Gulf Coast Regional Fugitive Task Force. It was prosecuted by Assistant United States Attorney Keesha D. Middleton.
Belcourt Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Belcourt, North Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Gloria Peltier, age 20, was indicted on January 23, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 18, 2018, Peltier was being held at the Lower Brule Detention Center and did forcibly assault, resist, impede, intimidate, and interfere with a corrections officer while they were engaged in the performance of their duties.
The charge is merely an accusation and Peltier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Peltier was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Armed Career Criminal Sentenced to 188 Months in Prison for Illegally Possessing Firearms and DrugsRead the Press Release
Memphis, TN – A local man was sentenced as an armed career criminal for being a convicted felon in possession of a firearm and drugs. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on October 4, 2017, detectives with the Memphis Police Department Organized Crime Unit (OCU) obtained narcotics search warrants for both 656 North Dunlap and 4771 Winchester to search for marijuana in the possession of Marlon Pruitt a/k/a "Big Putt."
On October 5, officers executed the search warrant at the Dunlap address, waited for the defendant’s arrival, and immediately surrounded him. The officers knocked and announced their presence, and Pruitt's aunt answered the doorbell and told the officers that Pruitt lived upstairs. Upon searching the residence officers found multiple bags of marijuana weighing 70.9 grams, extra baggies and two digital scales. Pruitt also had $795 in his pocket. Inside an armoire, officers found some of the defendant's clothing together with a box of 20 gauge shotgun shells and a 20-gauge shotgun. The defendant admitted that all of the items belonged to him.
Law enforcement then executed the search warrant at the Winchester address and discovered 159.6 grams of marijuana in 53 separate bags in a desk drawer. Officers also found a digital scale and 25 live .45 caliber rounds.
At the time of these events, the defendant had previously been convicted of numerous felonies, including:
• Two counts of aggravated robbery on July 15, 1991
• Criminal attempt, to wit: murder first degree amended to aggravated assault on June 27, 1994
• Three counts of conspiracy to possess with the intent to distribute cocaine base on April 17, 1998, and
• Possession of a controlled substance with intent to manufacture/deliver/sell amended to solicitation: possession of a controlled substance with intent to distribute -0.5 grams of cocaine on October 22, 2012.
He had also been convicted of numerous misdemeanor offenses.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to community, and in this case, "Big Putt" was an armed career criminal who continued to possess firearms and sell illegal narcotics despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more armed drug dealer removed from our streets. Gun Crime is Max Time."
On February 28, 2019, U.S. District Court Judge Thomas L. Parker sentenced Pruitt to 188 months imprisonment followed by three years supervised release. Because of Pruitt's criminal history, he was sentenced as an Armed Career Criminal and faced a mandatory minimum sentence of 15 years (180 months) imprisonment.
This case is part of the Project Safe Neighborhoods Initiative (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. In 2017, PSN was reinvigorated 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 investigated by the Memphis Police Department Organized Crime Unit and the Project Safe Neighborhoods Task Force.
Assistant U.S. Attorneys J. William Crow and Raney Irwin prosecuted this case on behalf of the government.
Anne Arundel County Man Sentenced to 57 Months in Prison for Possession with Intent to Distribute FentanylRead the Press Release
FOR IMMEDIATE RELEASE Contact MARCIA MURPHY
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Robert Luke Simpson, age 25, of Gambrills, Maryland, today to 57 months in prison, followed by three years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl. As little as 2 milligrams of fentanyl can be a lethal dose. Simpson admitted that he sold at least 400 grams of fentanyl, or enough to kill 400,000 people.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Tim Altomare.
U.S. Attorney Robert K. Hur stated, “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We’re also targeting drug dealers who buy fentanyl on the dark web and re-sell this poison to our citizens. Working together with our local, state, and federal partners, we are determined to reduce the number of opioid overdose deaths in Maryland.”
“Whenever someone uses the U.S. Mail to send anything that is illegal, counterfeit, or improper, Postal Inspectors will find them and bring them to justice,” said Peter Rendina, Inspector In Charge of the U.S. Postal Inspection Service, Washington Division. “We are committed to keeping the mail safe for our customers and our employees.”
According to his plea agreement, law enforcement executed a search warrant at Simpson’s residence on October 11, 2017, and found 6,200 fentanyl pills weighing approximately 369 grams, in a hidden compartment in a wall-mounted shelf and on a desk. Officers also found $8,578 in cash, as well as cell phones, computers, iPads, and Bitcoin cryptocurrency mining equipment. Simpson admitted that he purchased 10,000 fentanyl pills from a dark web marketplace for approximately $10,000 worth of Bitcoin cryptocurrency. Simpson sold the fentanyl pills for $5 to $10 each to customers in Maryland. Simpson admitted that he sold between 400 grams and 1.2 kilograms of fentanyl.
Judge Russell also ordered that Simpson must forfeit money, property, and/or assets derived from, or used to facilitate the commission of Simpson’s illegal activities, including the items seized during the search of his residence.
United States Attorney Robert K. Hur commended HSI Baltimore, the U.S. Postal Inspection Service, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Lauren M. Elfner and Assistant U.S. Attorney Burden Walker, who prosecuted the case.
Alabama Woman Sentenced to 46 Months in Prison for Stealing over $700,000 from Her Employer and Failing to Report Income on Her Tax ReturnsRead the Press Release
An Alabama woman was sentenced today to prison for embezzling from her employer and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Louis V. Franklin, Sr. for the Middle District of Alabama.
According to court documents, from February 2007 through May 2014, Alita Baker Edeker, a resident of Valley, Alabama, embezzled $700,000 of her employer’s funds by diverting payments from clients of the company to debit and credit cards she controlled. Edeker made false entries in the company’s books and records in order to conceal her embezzlement. After embezzling the funds, Edeker willfully filed false tax returns for tax years 2011, 2012, and 2013 that did not report the money.
In addition to the term of imprisonment imposed, Edeker was ordered to serve three years of supervised release and to pay restitution in the amounts of $819,497.29 to her employer and $101,604 to the Internal Revenue Service (IRS).
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Franklin commended special agents of IRS-Criminal Investigation, and the Auburn, Alabama Police Department, who investigated the case, and Assistant United States Attorney Ben Baxley and Trial Attorney Grace Albinson of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Alabama Man Pretending to be College Softball Coach Sentenced to 15 Years in Prison for Attempting to Produce Child PornographyRead the Press Release
Jason Ford, a former teaching assistant and travel softball coach, was sentenced to 15 years in prison today after previously pleading guilty to attempting to produce child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami, Florida Field Office, Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville, Florida Field Office, James E. Jewell, Special Agent in Charge of the FBI Mobile, Alabama Field Office, and Alphonso Norris, Special Agent in Charge of the FBI Columbia, South Carolina Field Office made the announcement.
Ford, 42, of Dothan, Alabama, was sentenced by U.S. District Judge Beth Bloom, in Fort Lauderdale, Florida (Case No. 18-cr-60117), to a total of 15 years in prison. He was also sentenced to serve 20 years of supervised release and must register as a sex offender.
According to the court docket, including the agreed upon factual proffer Ford was a teaching assistant and travel softball coach, working out of Dothan, Alabama. However, Ford falsely represented himself to be a University of North Florida and University of South Carolina softball coach, in order to have contact with female high school softball players. Ford engaged in a calculated scheme to gain the trust of minor females who aspired to earn college athletic scholarships. Ford engaged in inappropriate conversations with teen softball players in Florida, Alabama and Tennessee. Ultimately, Ford made contact online with an undercover agent he believed to be a 15-year-old female softball player. Ford was arrested after he sent the teen (who in fact was an undercover agent) currency for a sexually explicit video.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami, Florida; Jacksonville, Florida; Mobile, Alabama; and Columbia, South Carolina Field Offices in this matter. She also thanked the Dothan Police Department for their assistance. This case was prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.
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.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced CHARLES BERNARD OWENS, a/k/a Christopher Bernard Mone, a/k/a Christopher Bernard Jackson, a/k/a Christopher Jackson, 36, of San Bernardino, California on February 14, 2019 for transportation in interstate commerce for the purposes of prostitution or other unlawful sexual activity. He received twenty-four months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment and a $750.00 assessment to the Justice for Victims of Trafficking Act fund.
On July 22, 2017, during Cheyenne Frontier Days, detectives with the Cheyenne Police Department Human Trafficking Task Force conducted a joint operation with the Federal Bureau of Investigation into human trafficking in the Cheyenne, Wyoming area. During this operation, law enforcement identified and contacted a Californian woman who had been advertising prostitution services in the Cheyenne area. During the investigation, law enforcement discovered that the woman had traveled from California to Wyoming for the purpose of engaging in acts of prostitution at the direction Owens. Owens arranged the woman’s transportation and later prostitution while in the custody of a California State Prison. The Cheyenne Police Department, FBI, and Department of Homeland Security Investigations investigated this case.
Federal District Court Judge Alan B. Johnson sentenced GERSON BARDALES-SAGASTUME, 22, of San Marcos, Honduras on February 21, 2019 for illegal re-entry of a previously deported alien into the United States. Bardales-Sagastume was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment. Bardales-Sagastume was previously ordered removed from the US in 2016. The Department of Homeland Security investigated this case.
Thursday 28 February 2019
Windham Man Sentenced to Federal Prison for Trafficking MarijuanaRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC BERGENN, 64, of Windham, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 18 months of imprisonment, followed by three years of supervised release, for marijuana trafficking and money laundering offenses.
According to court documents and statements made in court, in February 2014, the DEA and IRS-Criminal Investigation began investigating Eric Bergenn and his son, Arthur Bergenn, for the illegal production and distribution of marijuana and related money laundering. The investigation revealed that Arthur Bergenn moved from Connecticut to California and began purchasing large quantities of marijuana. Arthur then shipped marijuana via the U.S. Postal Service to individuals in Connecticut, where the marijuana was sold for profit.
The investigation further revealed that Eric Bergenn deposited cash proceeds from the sale of the marijuana into bank accounts he and his son maintained, and that he also mailed bulk amounts of cash to Arthur in California. Arthur withdrew cash from the bank accounts while in California. Arthur used the cash to finance the marijuana operation, and eventually used the funds to purchase three properties in Tehama County, California, on which he cultivated marijuana.
Between April 2010 and June 2014, more than $1.2 million in cash was deposited into 12 separate bank accounts controlled by Arthur and Eric Bergenn. All of the cash deposits were in structured amounts of less than $10,000 in an apparent attempt to evade the filing of Currency Transaction Reports. During this time, Arthur had no legitimate employment or source of income.
On August 11, 2014, investigators conducted court-authorized searches of Arthur Bergenn’s three California properties and seized approximately 300 marijuana plants, more than 50 pounds of processed marijuana, and numerous items used to cultivate, process and package marijuana. Arthur and Eric Bergenn, who were present at one of the California properties, were arrested on state charges at that time.
On August 11, 2016, Arthur Bergenn pleaded guilty in federal court to one count of conspiracy to distribute and to possess with intent to distribute marijuana, and one count of conspiracy to engage in money laundering. Eric Bergenn pleaded guilty to the same charges on April 19, 2018.
Arthur Bergenn, 33, awaits sentencing.
In resolving this case, Arthur and Eric Bergenn have agreed to forfeit their interest in 20635 Canal View Road in Corning, California; 15950 N. Mendocino Drive in Corning, California; 160 acres of land in Tehama County, California, and approximately $50,000 in cash that was seized during the investigation.
This matter has been investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation Division, with the assistance of the U.S. Postal Inspection Service, Connecticut State Police, Hartford Police Department, and Tehama County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Unregistered commodity pool operator arraigned on fraud chargeRead the Press Release
ATLANTA –Kevin Perry has been arraigned on charges that he ran a foreign currency investment fraud scheme.
“This defendant allegedly defrauded investors who trusted him with their hard-earned money,” said U.S. Attorney Byung J. “BJay” Pak. “Even after regulators took action against Perry, he allegedly continued to seek to defraud investors, including at one point attempting to defraud an undercover FBI agent.”
“Instead of living off well-earned investments, Perry’s alleged victims now have to worry about their financial futures,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Nothing can make victims of investment fraud whole again, but the FBI will continue to make it a priority to investigate and punish anyone who preys on investors for their own personal greed.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Perry allegedly led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “forex”) market. Perry induced investors into sending money by signing agreements that claimed the investors’ initial investments were secure from loss. In actuality, Lucrative Pips was never registered as a “commodity pool operator” with the Commodity Futures Trading Commission. Also, Perry had never generated the historical returns represented to investors, and he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him.
The indictment further alleges that even after the Commodity Futures Trading Commission filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors. In December 2018, Perry made a series of fraudulent investment pitches to an undercover FBI agent, who was posing as a potential investor. Perry told the undercover FBI agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month and that he minimized any risk by doing a “100% money-back guarantee.”
Kevin Perry, 21, of Cartersville, Georgia was arraigned Monday, February 25, 2019 before U.S. Magistrate Judge Catherine M. Salinas. A federal grand jury returned an indictment on December 12, 2018, alleging that Perry committed wire fraud.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI.
Assistant U.S. Attorney Thomas J. Krepp and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case. The Commodity Futures Trading Commission provided invaluable assistance throughout the course of the investigation.
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.
Union County, New Jersey, Man Admits Role in Credit Card Fraud and Aggravated Identity Theft ConspiracyRead the Press Release
TRENTON, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy to hijack the credit card accounts of multiple victims in order to fraudulently purchase hundreds of thousands of dollars in high-end products, U.S. Attorney Craig Carpenito announced.
Oluwaseun Jato, 29, of Hillside, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an indictment charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
From July 2016 through May 2017, Jato and others participated in a credit card takeover conspiracy to obtain control of credit card accounts by contacting financial institutions and posing as account owners so they could change the personal information associated with their accounts, including the residential address, email address, and telephone number.Members of the conspiracy then opened new accounts or ordered replacement cards to be shipped to them without the account owners’ knowledge or authorization. Jato and others used the compromised credit card accounts to purchase high-value items, including smartphones, tablets, and other electronic devices. Jato admitted receiving 25 percent to 30 percent of the illegal proceeds from more than 10 victims.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must run consecutive to any other term of imprisonment imposed. Sentencing is scheduled for May 30, 2019.Co-defendants Alexus Omowole and Henry Abdul previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and are awaiting sentencing.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Ray Mateo and Nicholas Grippo, Attorney-in-Charge of the Trenton Office.
U.S. Justice Department Files Sexual Harassment Lawsuit against New London LandlordsRead the Press Release
U.S. Attorney John H. Durham and Assistant Attorney General Eric Dreiband of the U.S. Department of Justice’s Civil Rights Division today announced that the U.S. Attorney’s Office and Justice Department have filed a lawsuit in the District of Connecticut alleging that female tenants and applicants of residential rental properties in and around New London, Connecticut, were subjected to sexual harassment, coercion, intimidation and threats, in violation of the federal Fair Housing Act.
The lawsuit alleges that from at least 2011 through 2016, Richard Bruno sexually harassed female tenants and applicants of rental properties owned or co-owned by Bruno, Domco LLC, and Domco II LLC. Bruno was an agent and property manager for Domco, which was owned by Bruno’s ex-wife. Domco II was owned by Bruno and his ex-wife. According to the complaint, Bruno engaged in harassment that included making unwelcome sexual advances and comments; engaging in unwanted sexual touching; demanding or pressuring female applicants to engage in sexual acts to obtain rental privileges; evicting or threatening to evict female tenants who objected to or refused sexual advances; entering the homes of female tenants without their consent; asking to take and taking pictures and videos of the bodies of his tenants and their female children, and establishing, maintaining and forcing his tenants and their minor female children to view “dungeons” or “sex rooms” in the rental properties.
The lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination.
Bruno, a former resident of Waterford, Connecticut, has been incarcerated at the Federal Correctional Institute at Otisville since 2017. Bruno pleaded guilty and, on September 28, 2017, was sentenced in New Haven federal court to 16 years in prison for producing child pornography in one of the properties owned by Domco II, with one of the minors who resided in one of properties owned by Domco.
“This federal lawsuit represents a significant step toward achieving justice and compensation for vulnerable victims of civil rights violations,” said U.S. Attorney Durham. “Everyone has the right to be free from unwanted sexual harassment and intimidation by a landlord or property manager, loan officer or housing official, maintenance worker or security guard. Individuals who are being victimized as a condition of their housing have rights, and all are encouraged to report this type of reprehensible behavior to the Justice Department.”
“Female tenants should never be subjected to sexual harassment in a place that should be free from coercion and intimidation,” said Assistant Attorney General Dreiband. “The Civil Rights Division is committed to enforcing the Fair Housing Act and taking action against landlords and property managers who prey on women and cause them to feel unsafe in their own homes.”
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
The U.S. Attorney’s Office urges individuals who believe that they have been victimized by sexual harassment or other types of housing discrimination at rental dwellings previously owned or operated by Richard Bruno, Domco or Domco II, or who have other information that may be relevant to this case, to contact Investigator John Sereno at 203-696-3036, or [email protected].
Victims of sexual harassment related to housing can also contact the Justice Department’s Sexual Harassment in Housing Initiative by calling 1-844-380-6178, or through email at [email protected]. Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the U.S. Attorney’s Office at [email protected].
More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
U.S. Attorney’s Office for the Northern District of Georgia helps to collect over $77 million in civil and criminal actions in fiscal year 2018Read the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced today that the Northern District of Georgia helped to collect over $77 million in civil and criminal restitution and financial penalties for Fiscal Year 2018, ending September 30, 2018. Of this amount, the Northern District of Georgia directly collected $29,899,597, of which $10,536,937 was collected in criminal actions and $19,362,660 was collected in civil actions. Also, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice in joint cases to collect an additional $47,846,632. Of the amount collected jointly, $12,825 was collected in criminal actions and $47,833,807 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in FY 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“Recovery of restitution and the imposition of financial penalties are a critical part of enforcement in criminal and civil fraud cases,” said U.S. Attorney Byung J. “BJay” Pak. “This announcement shows that through financial enforcement efforts, our office has delivered a significant financial benefit to the citizens of our district and the country.”
The largest collections were from affirmative civil enforcement actions, in which the United States recovered government funds lost to fraud or other misconduct, or collected fines imposed on individuals and corporations for violations of federal health, safety, civil rights or environmental laws. For example, the Northern District of Georgia investigated and recovered $3.2 million from Georgia Bone & Joint; Southern Bone & Joint; Southern Crescent Anesthesiology, PC; Sentry Anesthesia Management, LLC; and David LaGuardia for allegations of kickbacks and submission of false claims to Medicare for prescription drugs purchased outside of the United States which were not approved by the U.S. Food and Drug Administration (FDA) https://www.justice.gov/usao-ndga/pr/orthopaedic-and-anesthesia-providers-pay-32-million-settle-false-claim-act-allegations. Similarly, over $30 million was recovered this year from Signature HealthCARE LLC in an investigation which began in this district and became national in scope following a whistleblower allegation filed in another district https://www.justice.gov/usao-ndga/pr/signature-healthcare-pay-more-30-million-resolve-false-claims-act-allegations-related. This Office worked jointly with the U.S. Attorney’s Office for the Middle District of Tennessee and the Department of Justice Civil Frauds Section to investigate and ultimately settle violations of the False Claims Act for knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, and skilled. In addition, the Northern District of Georgia recovered debts owed to federal agencies, including the Departments of Housing and Urban Development, Health and Human Services, Treasury and Education, as well as the Small Business Administration.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are also responsible for enforcing and collecting criminal debts owed to the U.S. and to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Examples of recoveries by the Northern District of Georgia include garnishments and other collection efforts that led to recovery of criminal restitution in the amounts of $290,493 in United States v. Justin Herring, and $328,784 in United States v. Paul Anderson, both fraud cases prosecuted by the office.
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.
U.S. Attorney’s Office Brings Federal Charges After the Philadelphia District Attorney’s Office Agrees to a Lenient Plea Deal in a Violent RobberyRead the Press Release
PHILADELPHIA, PA – On February 28, 2019, United States Attorney William M. McSwain convened a press conference to announce charges against Jovaun Patterson of Philadelphia, who is alleged to have shot Philadelphia shop owner, Li (“Mike”) Poeng, with an assault rifle during an attempted robbery of Mr. Poeng’s convenience store on May 5, 2018. Mr. Poeng is a refugee from Cambodia who became a U.S. citizen in 1998. As a result of the shooting, Mr. Poeng is confined to a wheelchair. The Philadelphia District Attorney’s Office originally charged Patterson with multiple crimes, including attempted murder and aggravated assault, but then dropped the attempted murder charges and agreed to a lenient plea deal of 3 ½ to 10 years imprisonment. The U.S. Attorney’s Office has now stepped in to bring federal charges.
Remarks as Prepared for Delivery
Good afternoon, everybody. I am here today to announce criminal charges against Jovaun Patterson of Philadelphia, who is alleged to have shot Philadelphia shop owner, Mike Poeng, with a military-style assault rifle on May 5, 2018, during an attempted robbery of Mr. Poeng’s convenience store located at 300 South 54th Street. Mr. Poeng is a refugee from Cambodia who became a U.S. citizen in 1998, and is a married father of three young sons. As a result of the shooting, Mr. Poeng had his right leg nearly blown off and is presently confined to a wheelchair. Earlier today, a federal grand jury returned an indictment against Patterson, charging him with (a) one count of attempted robbery which interferes with interstate commerce and (b) one count of using, carrying and discharging a firearm during and in relation to a crime of violence. On the gun charge alone, he faces a statutory maximum of life imprisonment and a statutory minimum of 10 years’ imprisonment, which must run consecutively to any other sentence imposed on the attempted robbery count.
I want to thank the Bureau of Alcohol, Tobacco, Firearms and Explosives, which investigated this case, and in particular, Acting Special Agent in Charge Brian Gallagher, Supervisory Special Agent John Bowman and Special Agent David Krueger, all of whom are with us today. I want to thank the Philadelphia Police Department for its assistance in our investigation. Thank you to Sal Astolfi, the Chief of the Violent Crime unit in my Office, who is prosecuting the case. Thank you to Tom Malone, who is representing Mr. Poeng pro bono and helping him to navigate through the legal system. And thank you, Mr. Poeng, for being here today.
Mr. Poeng’s story, and the circumstances surrounding this case, which was originally charged by the Philadelphia District Attorney’s Office, are well known and have been the subject of much public discussion and, understandably, much outrage. After a struggle with an armed assailant in front of his store – all captured on videotape – Mr. Poeng was shot and rendered unconscious. His wife, who had been inside the store with the couple’s three sons, raced from the store and found her husband face down on the sidewalk, bleeding profusely. He was rushed to the hospital, where he went into cardiac arrest and remained in a coma for weeks. Following a long hospital stay and a period in a rehabilitation facility, he returned home in August 2018. Mr. Poeng is now confined to a wheelchair and does not know if he will ever walk again on his own.
In July 2018, Jovaun Patterson was arrested by the Philadelphia police. He was charged with attempted murder, aggravated assault, robbery–threat of immediate serious injury, possession of a firearm by a prohibited person, possession of a firearm on a street in Philadelphia, possession of an instrument of crime, simple assault and recklessly endangering another person. After a two-minute hearing in the Philadelphia Court of Common Pleas, the District Attorney’s Office dropped the attempted murder charge, both gun charges, the simple assault charge and the recklessly endangering charge, and Patterson was sentenced to 3 ½ to 10 years imprisonment as part of a plea deal that was negotiated by the District Attorney’s Office. In violation of the Pennsylvania Crime Victims Act, the District Attorney’s Office told Mike Poeng nothing of the deal.
When the public learned of this deal and criticism of it mounted, a spokesman for the District Attorney’s Office defended it – saying that withdrawal of the attempted murder charge was “wholly appropriate as the video evidence depicted a struggle involving the gun prior to its discharge.” I have carefully considered that statement and I still do not understand it. I guess it’s supposed to mean that because Mike Poeng decided to fight for his life and to protect his wife and children, the person who shot him somehow deserves a break. As for the sentence imposed, the District Attorney’s Office spokesman went on to state that it, too, was “wholly appropriate.”
When public criticism of the sentence continued, the District Attorney’s Office tried a different approach. This time, the Office blamed the assistant district attorney working on the case. The District Attorney’s Office spokesman claimed that “the assigned ADA made two mistakes. First, she did not contact the victim prior to the plea . . . and second, she did not get authorization from her supervisor to convey the plea offer.”
What does that explanation tell us? It tells us that nobody in leadership at the District Attorney’s Office even knows what’s going on in plea negotiations or in the courtroom in significant violent crime matters. In the absence of supervision, however, the assistant district attorneys certainly know that they are to pursue deals that will please the District Attorney or they risk losing their jobs, and there is no doubt that the assistant district attorney in the Patterson case did exactly that – offering a lenient 3 ½ to 10 year deal because she thought that reflected the new priorities of the District Attorney’s Office.
Whether this plea deal was approved in advance or not, nobody in leadership at the District Attorney’s Office should be blaming the assistant district attorney. The first principle of running a prosecutor’s office – or any office, for that matter – is that the leader of the office is responsible for everything that the office does or fails to do. Running a large prosecutor’s office comes with public scrutiny and can come with public criticism. Leaders take personal responsibility. They don’t blame the people who work for them.
Mike Poeng deserves justice. The “new” District Attorney’s Office was not able to provide it to him. He will now have his chance to be heard in federal court.
And what has the “new” District Attorney’s Office meant for Philadelphia more broadly? Potential criminals on the streets of our City are not stupid. They pay attention to what is happening at the District Attorney’s Office. When the District Attorney begins his tenure by summarily firing the Office’s most experienced prosecutors (and casually maligning them as they exited the building), when the Office is woefully understaffed, when the new hires at the Office share their boss’ anti-law enforcement philosophy, when the Philadelphia Police Department absorbs constant unfair criticism from the Office, when the Office routinely violates state law by not communicating with victims of violent crime, when the Office consistently undercharges violent crime cases, when it offers sweetheart deals to violent defendants, when its overall stated priority is “decarceration,” when it leads the charge for lenient bail conditions, when the Office issues a memorandum of “new policies” that reads like something written by a radical defense attorney, and when the District Attorney refers to himself as a “public defender with power” – violent criminals take notice of all of that. And they become emboldened. They think they can literally get away with murder.
Sadly, there are likely to be terrible consequences for public safety in Philadelphia as a result of all of this. The only way to effectively deter homicide and other violent crime is to put fear into the hearts of those who would commit such crimes – fear of the law enforcement consequences. The Philadelphia District Attorney’s Office isn’t putting fear into the hearts of anybody who is contemplating a life of violent crime. Instead, what’s even worse, is that the District Attorney’s Office is putting fear into the hearts of law-abiding citizens who have to deal with the terror of homicide and other violent crime in their neighborhoods.
Unfortunately, we are seeing the results already. In 2018, the District Attorney’s first year in office, Philadelphia endured 351 homicides, the most in over a decade, and an 11% increase as compared to 2017. There were 1,365 shooting victims in the City in 2018, the most since 2011, also an 11% increase as compared to 2017. Thus far in 2019, this alarming pattern has continued, as there were more homicides in January 2019 than there were in January 2018. Just last week, an 18-year old was fatally shot in North Philadelphia, the third teenager to be killed by gunfire in the City in a week. The chart to my left depicts the number of homicides in the City on a yearly basis from 2013 to 2018. [Display the chart].
These 2018 Philadelphia homicide numbers have occurred against the backdrop of a sharp decline in homicides nationwide. According to preliminary reports, in 2018, homicides were down approximately 7% nationwide in cities with more than one million residents. Nearby, Chester, PA saw a 38% decrease in homicides in 2018; both Camden, NJ and Newark, NJ also experienced a decrease. It is not a coincidence that Philadelphia saw a double-digit percentage increase in homicides in 2018, while our nearby cities, and the nation as a whole, experienced a significant decrease. The policies of the District Attorney’s Office are undoubtedly playing a large role in this tragedy – and nobody should be surprised by it. I’m not.
And who is it that is dying as a result of this homicide epidemic? By and large, it’s African-Americans, as well as Latinos. In 2018, 276 of the 351 homicide victims were African-Americans, or 79%, while 44 of the 351 were Hispanic, or 13%. Thus, a staggering 92% of the homicide victims in Philadelphia in 2018 were African-American or Hispanic. The chart to my left depicts the number of homicides in the City on a yearly basis from 2013 to 2018, broken down by the race of the victim. [Display the chart]. This chart tells a most unfortunate story. And it’s one that the District Attorney’s Office should be working hard to fix – not, as it is doing with its current policies, making worse.
The policies of the District Attorney’s Office are harming minority communities all across the City. And the people who have the right to be the most outraged by these policies are those in the African-American community and the Latino community. Everyone in the City – and I mean everyone – deserves to live in a safe neighborhood.
The District Attorney calls himself “a public defender with power.” That is not his job. He’s not supposed to be a public defender, advocating for defendants. He’s supposed to be a prosecutor, advocating for victims and protecting the community. I can assure you this: the prosecutors of my Office, working with our federal and state law enforcement partners, as well as with the Philadelphia police, will do everything in our power to keep the City safe.
Thank you, and at this time, I am happy to take your questions.
Two West Baltimore Heroin Dealers Plead Guilty to Federal Drug Distribution ChargesRead the Press Release
Baltimore, Maryland – Tyron Evans, age 42, of Baltimore, Maryland pleaded guilty today in U.S. District Court to possession with intent to distribute heroin. On February 27, 2019, his co-defendant, Brandon Pride, age 38, also of Baltimore, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Maryland Attorney General Brian E. Frosh; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Commissioner Michael Harrison of the Baltimore Police Department; and Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services.
“Federal, state and local agencies have joined to target leaders and key members of violent gangs operating in Baltimore City,” said U.S. Attorney Robert K. Hur. “As a result of this partnership, these drug dealers will no longer peddle death in West Baltimore. Pride and Evans will also serve a significant sentence in federal prison, where there is no parole - ever.”
According to Pride’s guilty plea, beginning in at least 2015, Pride conspired with others to distribute heroin in west Baltimore. Specifically, Pride provided heroin, often in “packs” worth $5,000, to multiple “lieutenants” in his drug trafficking organization. These “lieutenants” supervised particular block operations, or “shops” located in the blocks surrounding Edmonson Avenue and Pulaski Street in west Baltimore. Pride met with his lieutenants on a regular basis, sometimes multiple times a day, to supply them with heroin, packaged in order to be distributed in a street-level operation. The lieutenants took the heroin back to their block, where other members of their group sold the heroin. The heroin came packaged in quantities that could be sold for $20 or $40 each.
Further, Pride utilized strategies to evade detection by law enforcement, including changing phone numbers, checking for trackers on vehicles, and taking action against anyone suspected of cooperating with law enforcement.
Evans admitted that on January 23, 2017, he sold several blue topped vials containing heroin to an individual who was assisting Baltimore Police officers. The individual drove with a Baltimore Police undercover officer to meet Evans, then provided Evans with cash in exchange for the heroin. Law enforcement executed a search warrant at Evans’ residence on February 2, 2017 and recovered more than 40 grams of heroin, including 39.33 grams of heroin in a bag, 11 glass vials and five plastic containers, all containing heroin, as well as a scale with heroin residue and cash. Evans agreed that he possessed the heroin with the intent to distribute it to others.
Evans, Pride and the government have agreed that if the Court accepts their plea agreements, Evans and Pride will each be sentenced to eight years in federal prison. U.S. District Judge Catherine C. Blake has not yet scheduled their sentencing dates.
Three other defendants, all from Baltimore, pleaded guilty to federal charges related to this case and were sentenced. They include: Antoine Benjamin, age 27, who was sentenced to 10 years in federal prison for illegal possession of a gun by a previously convicted felon; Tavares White, age 33, who was sentenced to eight years in federal prison for possession with intent to distribute fentanyl; and Lukeda Butler, age 35, who admitted participating in a heroin distribution conspiracy and was sentenced to 22 months in federal prison, to be served consecutive to her state sentence for witness intimidation related to the drug trafficking organization.
The Maryland Attorney General’s Office initiated this case and prosecuted related defendants on state charges. The state prosecutions were handled by Assistant Attorneys General Katie Dorian, Jared Albert, Kelly Burrell, and Zachary Norfolk, with the Maryland Attorney General’s Office, who also assisted with the federal cases.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the Maryland Attorney General’s Office, the ATF, the FBI, the Baltimore Police Department, and the Maryland Department of Public Safety and Correction Services for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Michael C. Hanlon, who are prosecuting the federal case.
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Two Southeastern Connecticut Men to Serve Time in Federal Prison for Roles in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that two men have been sentenced in Hartford federal court for their participation in a Southeastern Connecticut heroin trafficking ring.
Yesterday, U.S. District Judge Michael P. Shea sentenced ROBERTO ROMAN, also known as “Indio,” 49, of New London, to 72 months of imprisonment and eight years of supervised release. Today, Judge Shea sentenced MARCUS ANTON, 34, of Montville, to 48 months of imprisonment and three years of supervised release.
According to court documents and statements made in court, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Michael Luciano, of New London, was distributing heroin through a network of street-level dealers in southeastern Connecticut.
Roman served as a “runner” for Luciano, delivering heroin to Luciano’s customers, collecting cash from them, and then delivering the money Luciano. Anton was a street-level heroin dealer who was supplied by Luciano.
On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging Luciano, Roman, Anton and 18 other individuals with various heroin trafficking offenses.
On August 30, 2018, Anton pleaded guilty to one count of conspiracy to distribute heroin. On September 27, 2018, Roman pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
On June 27, 2018, Luciano pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin. On January 29, 2019, he was sentenced to 12 years of imprisonment.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Geoffrey M. Stone.
Two RGV Residents Indicted for Health Care FraudRead the Press Release
McALLEN, Texas – Two Rio Grande Valley residents have been taken into custody for submitting fraudulent claims for payment to Texas Medicaid for durable medical equipment (DME) supplies that were never delivered to Medicaid beneficiaries, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury in McAllen returned the indictment Feb. 26, 2019, against Everardo Villarreal, 46, of Edinburg, and Delilah Rae Robles, 38, of Weslaco. It was unsealed today as they were taken into custody. They are expected to make initial appearances before U.S. Magistrate Judge Scott Hacker on Friday, March 1, 2019.
According to the indictment, Villarreal was the owner and operator of now defunct Durable Medical Supply Depot of Elsa. Robles was his secretary and Medicaid biller.
The indictment alleges they committed one count of conspiracy to commit health care fraud, four counts of substantive health care fraud as well as two counts of aggravated identity theft of local Medicaid beneficiaries’ personal Medicaid numbers.
From on or about April 2010 to on or about September 2014, Villarreal and Robles allegedly billed Texas Medicaid in excess of $850,000 for DME that was either never delivered or was only partially delivered to Medicaid beneficiaries. The indictment alleges Villarreal and Robles purchased or arranged for the purchase of personal Medicaid identification numbers of local Medicaid beneficiaries in order to submit false and fraudulent claims to Medicaid for items that were never intended to be delivered.
Each of the counts of health care fraud related matters carries a maximum of 10 years in federal prison. If convicted of identity theft, they each also face a mandatory two years imprisonment which must be served consecutively to any other sentence imposed. All of the charges also carry a $250,000 maximum possible fine.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services – Office of Inspector General and the FBI conducted the investigation. Special Assistant U.S. Attorney Marian Swanberg and Assistant U.S. Attorney Andrew Swartz are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two Men Sentenced to Federal Prison for Drug CrimesRead the Press Release
BOISE – Jose Luis Gonzales, 40, of Twin Falls, and David Lee Martell, 47, of Nampa, were sentenced to federal prison this week for participating in a drug trafficking organization, announced U.S. Attorney Bart M. Davis. Gonzales was sentenced Wednesday to ten years in federal prison followed by five years of supervised release. Martell was sentenced yesterday to 54 months in prison followed by three years of supervised release. Both were sentenced by U.S. District Judge B. Lynn Winmill.
According to court records, investigators began an investigation into a drug trafficking organization distributing methamphetamine, heroin and fentanyl in Idaho. Their investigation determined that Gonzales and Martell were members of that organization. Investigators arrested Gonzales on April 27, 2018, after he distributed approximately three ounces of methamphetamine to a co-conspirator. Gonzales was on parole at the time due to prior convictions for possessing methamphetamine and unlawfully possessing a firearm by a felon. Martell was arrested after the search of his residence on April 26, 2018, when investigators found approximately two ounces of methamphetamine, four grams of heroin, a digital scale, packaging materials, and a loaded .40 caliber pistol. Martell also had prior felony convictions for possessing methamphetamine and for unlawfully possessing firearms by a felon.
Gonzales, Martell, and four others were indicted by a federal grand jury in May 2018 for conspiring to distribute methamphetamine, heroin, and fentanyl. Martell pleaded guilty in October 2018 to possessing methamphetamine with the intent to distribute. Gonzales pleaded guilty in November 2018 to distributing over fifty grams of pure methamphetamine.
A third defendant, Russell Anthony Antonucci, 50, of Boise, was sentenced on January 31, 2019, to 42 months in federal prison for his role in the offense. The remaining three defendants are scheduled for sentencing in April 2019 at the federal courthouse in Boise. Edouard Gribkoff, 37, of Ontario, Oregon, is scheduled for sentencing before U.S. Magistrate Judge Candy W. Dale on April 10, 2019. Daniel Allen Gonzales, 44, of Boise and Roberto Jo Miguel Serpa, 40, of Caldwell, are scheduled for sentencing in front of Judge Winmill on April 15 and 16, 2019, respectively.
This case was investigated by the Drug Enforcement Administration and the Nampa Police Department.
The indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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Two Men Sentenced to Lengthy Prison Terms for Their Roles in One of the Largest Fentanyl Seizure in the United StatesRead the Press Release
Two men from California were sentenced this month for their role in a drug conspiracy that resulted in, what was at the time, the third largest fentanyl seizure in the United States, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy Plancon, U.S. Drug Enforcement Administration, Detroit Field Division.
Sentenced were Manual Arnulfo Barajas, age 23, of West Covina, California, and Andre Lee Scott, age 27, of San Bernadino, California. Barajas was sentenced to 135 months on February 21, 2019. Scott was sentenced to 141 months today. In addition to the prison sentences, both defendants were ordered to serve five years of supervised release. United States District Judge Terrence G. Berg of the Eastern District of Michigan imposed the sentences.
According to court records, the men were arrested in July 2017 at a condominium in Novi, Michigan with more than 10 kilograms of pure fentanyl, 20 kilograms of fentanyl laced with heroin, and more than half a million dollars in cash. It is estimated that the fentanyl seized could have killed at least five million people. Manual Barajas admitted he traveled to Michigan on behalf of the source of supply when drug shipments arrived. Andre Lee Scott was responsible for overseeing the drug distribution and money collection at the condominium. The seizure was the result of DEA agent’s creative investigative work after they traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active.
“Fentanyl is now the leading cause of overdose deaths in America — it is inherently dangerous and 50 times more potent than heroin,” United States Attorney Schneider stated. “This fentanyl seizure has literally saved lives by keeping this poison off our streets. Criminals who harm our community like this will be held accountable for the venomous drugs they spread.”
“The recent sentencing of BARAJAS and SCOTT sends a strong unified message that drug trafficking will not be tolerated. The commitment and relentless efforts of the men and woman of the DEA, along with our law enforcement partners, took a record amount of fentanyl off of the streets of communities throughout southeast Michigan. Dismantling fentanyl trafficking organizations, and preventing devastation caused by them, is a top priority to law enforcement. We will tirelessly continue to identify, investigate, and disrupt those involved in such ruthless criminal activity and bring them to justice.”
Six additional defendants have been indicted as part of the ongoing investigation. All six are awaiting trial, currently scheduled for April 30, 2019.
The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting and Craig Wininger prosecuted the case for the United States.
Two Chinese Nationals Indicted on Federal Kidnapping and Extortion Charges in Scheme Involving $2 Million Ransom DemandRead the Press Release
LOS ANGELES – Two Chinese nationals have been indicted on federal charges that allege they kidnapped another Chinese national and attempted to collect $2 million in ransom from the victim’s family in exchange for the victim’s life.
Guangyao Yang, 25, and Peicheng Shen, 33, whose last known U.S. residences were in West Covina, were charged in a four-count indictment returned by a federal grand jury on February 22. The indictment charges the two defendants with conspiracy to kidnap, kidnapping, attempted extortion in violation of the Hobbs Act, and threat by foreign communication.
According to court documents, Shen, using an alias, met the victim, a Santa Ana resident, several times on the pretense that Shen would help the victim collect a debt from another individual. During their third meeting, at a San Gabriel shopping center on July 16, 2018, Shen allegedly kidnapped the victim and then, along with Yang, held the victim hostage at a house in Corona. At that house, Shen and Yang allegedly confined the victim by binding his legs together, taping his eyes shut, restraining his arms behind him, and confining him in a closet.
The day after the kidnapping, the victim’s father received a demand for a $2 million ransom in exchange for the victim’s life, with the money to be deposited into three Chinese bank accounts within three hours, court documents allege. The victim’s father also received photographs of the victim, who was physically restrained in a closet, according to court documents.
Investigators believe the victim died during the course of the kidnapping, and they are seeking the public’s assistance in locating his body.
The indictment further alleges that on July 18, defendants Shen and Yang attempted to conceal evidence of the crime. Specifically, defendants Shen and Yang drove to the area of Mojave, California, to bury or otherwise dispose of the victim’s body or other physical evidence involved in the crime. Further, on that same day, Shen allegedly had the closet of the Corona house re-carpeted. Yang also performed an Internet search to determine, in effect, how fast a corpse decomposes in soil, court papers state.
Shen and Yang currently are believed to be in China.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The two kidnapping-related charges carry a statutory maximum penalty of life in federal prison. The extortion and threat by foreign communication charges each carry a statutory maximum penalty of 20 years in prison.
The investigation into the kidnapping and extortion is being conducted by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Julia Choe of the Cyber and Intellectual Property Crimes Section and Special Assistant United States Attorney Ryan Adams of the General Crimes Section.
The FBI is seeking information regarding the suspects charged in this case and to determine the whereabouts of the victim. While search efforts are focused in the Mojave Desert, the FBI would like to hear from anyone who may have information about this alleged crime or about associated suspicious activity. Anyone with information may call the FBI’s Los Angeles Field Office at (310) 477-6565.
Tarentum Man Charged with Bank FraudRead the Press Release
PITTBURGH - A resident of Tarentum, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of bank fraud, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on February 19 and unsealed today, named David Linder, 40, as the sole defendant.
According to the Indictment, Linder participated in a scheme to defraud S&T Bank by opening accounts with a false Social Security number, depositing fraudulent checks into those accounts, and then making transactions drawing on the accounts.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Department of Homeland Security and United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tampa Pastor and Daughter Plead Guilty to Tax Fraud ConspiracyRead the Press Release
Tampa, FL – Luckner Stimphil (55, Brandon) has pleaded guilty to conspiracy to defraud the United States. His daughter, Elwolfine Dufort (31, Riverview), pleaded guilty on February 21, 2019, for her role in the conspiracy. Stimphil and Dufort each face a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
Pursuant to their plea agreements, Stimphil and Dufort have agreed to pay more than $11 million in restitution to the U.S. Department of the Treasury relating to the conspiracy. Stimphil also consented to pay all taxes, interest, and penalties found to be owed and due to the IRS relating to his personal tax returns for years 2012 and 2013. Stimphil and Dufort have also agreed to be permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns for any other person or entity; from maintaining any association with a tax return preparation business; and from instructing, teaching, or otherwise training any person in the preparation of federal tax returns.
According to court documents, Stimphil, the then-pastor at First Calvary Family Life Ministry located on Martin Luther King Jr. Blvd., in Tampa, created and operated Top Popular Tax, a tax return preparation business with offices in Tampa, Winter Haven, and elsewhere. The business operated from 2011 through at least mid-2015. There, Stimphil, his daughter (Dufort), and others working under Stimphil’s supervision, routinely assisted in and advised clients in the preparation and presentation of tax forms to the IRS, which included materially false and fraudulent information on client-taxpayers’ Schedule C Forms (business income or loss) and Forms 8863 (associated with a claim for the American opportunity credit). Some of the information submitted on Forms 1040 also included a false and fraudulent claim for a credit for federal tax on fuels on Form 4136.
This case was investigated by IRS - Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Jay G. Trezevant and Craig Gestring.
Stockton Man Indicted for Illegal Firearms PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Joseph Flowers, 29, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on January 16, 2019, Flowers was found in possession of a Pietro Beretta model 92F semi-automatic pistol. Flowers has three prior felony convictions, making it illegal for him to possess a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stockton Police Department. Assistant U.S. Attorney David Spencer is prosecuting the case.
If convicted, Flowers faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Spokane Valley Woman Pleads Guilty to Stealing over $88,000 from Greater Spokane County Meals on WheelsRead the Press Release
Spokane – Today, Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Michelle Susan Ferrell, age 59, of Spokane Valley, Washington, pled guilty to wire fraud. Senior United States District Judge Robert H. Whaley accepted Ferrell’s guilty plea and scheduled a sentencing hearing for May 14, 2019 at 9:30 a.m. in Spokane, Washington.
According to court documents and information disclosed during the court proceedings, between May 2013 and April 2018, Ferrell was a bookkeeper at Greater Spokane County Meals on Wheels (Meals on Wheels). Meals on Wheels, which is part of the nationwide Meals on Wheels America organization operating throughout the United States, relies on government funding and private donations to provide over 1,000 meals each day to elderly and disabled residents of Spokane County. As a bookkeeper for Meals on Wheels, Ferrell had access to Meals on Wheels’ bank accounts, debit cards, and payroll system.
While employed at Meals on Wheels, Ferrell frequently used Meals on Wheels funds and bank accounts to pay for her unauthorized personal expenses, including mortgage, utility, and property tax payments on Ferrell’s residence, and to electronically transfer funds to herself and her businesses. Ferrell frequently disguised these transfers in Meals on Wheels’ internal accounting system to make them appear as though they were legitimate Meals on Wheels expenses. In this manner, between May 2013 and April 2018, Ferrell stole $88,800 in Meals on Wheels funds for her own personal use.
Additionally, Ferrell, who was responsible for paying Meals on Wheels’ quarterly payroll taxes to the United States Internal Revenue Service (IRS), frequently underpaid the Meals on Wheels’ payroll taxes, or failed to file tax returns at all, and then falsified Meals on Wheels’ internal accounting records to reflect that it had paid the full amount due. Ferrell did this in order to ensure that Meals on Wheels would have funds in its account that Ferrell could use to pay her personal expenses without drawing attention to herself. When Meals on Wheels discovered this fraud, it was required to file corrected returns with the IRS, resulting in Meals on Wheels owing the IRS an additional over $120,000 in back payroll taxes, not including penalties or interest for late payment, which are still being assessed by the IRS.
United States Attorney Harrington said that “every day, more than one thousand elderly and disabled Spokane County residents rely on Meals on Wheels to provide food so that they don’t go to bed hungry or undernourished. Stealing from an organization that provides a crucial service to so many of the most vulnerable members of our community is simply beyond the pale.” Harrington continued, “I want to especially commend the stellar investigative work done by the FBI in making this result possible. This case demonstrates that our office will continue to work closely with our law enforcement partners to ensure that our tax dollars and charitable donations do not fall prey to fraud and embezzlement.”
The wire fraud charge carries a maximum penalty of 20 years imprisonment, a $250,000 fine, up to 3 years of court supervision after release, and restitution. Additionally, as part of the plea agreement, Ferrell has agreed to the United States’ forfeiture of her residence in Spokane Valley, because it represents the proceeds of the fraud.
This investigation was conducted by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene.
Snohomish County Resident Convicted of Violating the Arms Export Control Act and Three Federal Firearms LawsRead the Press Release
A 35-year-old resident of Tulalip, Washington was convicted late yesterday in U.S. District Court in Seattle on four federal felonies related to illegal gun possession and trafficking, announced U.S. Attorney Brian T. Moran. HANY VELETANLIC, a citizen of Bosnia legally residing in the United States, was found guilty of violating the Arms Export Control Act, illegally possessing two unregistered silencers, and possessing a firearm with an obliterated serial number. The jury deliberated nearly three hours following two days of testimony. U.S. District Judge James L. Robart scheduled sentencing for May 20, 2019.
According to records filed in the case and testimony at trial, in February 2017, Swedish law enforcement seized a part of a Glock firearm from a residence in Fagersta, Sweden. The serial number on the Glock firearm had been filed off, but Glock Inc. was able to trace the sale of the firearm using a specialized company code imprinted on the part. The gun had been purchased by a resident of the Seattle area. When contacted by law enforcement, the resident said he had privately sold the gun to VELETANLIC. In May 2017, VELETANLIC contacted Homeland Security agents when he learned they had been asking about the firearm. VELETANLIC told agents about his activity selling firearms on eBay and in direct sales. After being advised of his Miranda rights, VELETANLIC ultimately admitted shipping packages of firearms overseas – as many as 20 different shipments to two different customer groups in Sweden. He also shipped gun parts to a person in France.
In the course of a July 2017 interview with law enforcement, VELETANLIC admitted that the customer in France had shipped him two silencers in exchange for the firearms parts. VELETANLIC claimed the silencers had been destroyed. However, when agents received permission to look in VELETANLIC’s gun safe, they found one of the silencers. The second silencer was turned over by VELETANLIC to agents in August 2017.
In May 2018, VELETANLIC was arrested on federal charges. At the time of his arrest he was carrying a Ruger pistol with an obliterated serial number. VELETANLIC admitted the weapon had an obliterated serial number because it had been stolen.
Violating the Arms Export Control Act is punishable by up to 20 years in prison. Possession of as unregistered firearm is punishable by up to ten years in prison. Possession of a firearm with an obliterated serial number is punishable by up to five years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations and Bureau of Alcohol, Tobacco Firearms & Explosives (ATF) with assistance from the Swedish National Police.
The case was prosecuted by Assistant United States Attorneys Matthew Diggs and Marie Dalton.
Shreveport man pleads guilty to possessing pistol at an apartment complexRead the Press Release
SHREVEPORT, La. – Recardo Catrell Pierce, 22, of Shreveport, pleaded guilty Tuesday before U.S. District Judge Elizabeth E. Foote possession of a firearm by a convicted felon, U.S. Attorney David C. Joseph announced.
According to the guilty plea, a Shreveport police officer observed Pierce exit an apartment and noticed a black handgun tucked in the front waistband of his shorts as he walked toward a parked car. When the officer approached the vehicle, Pierce attempted to exit the vehicle. As Pierce was climbing out of the vehicle through the door window, the firearm fell out of his pants. After chasing Pierce for about 300 yards, the officer apprehended him and took him back to the scene where the car had been and secured the dropped weapon, a Springfield Armory, Model: SA-XD, 9 by 19-caliber pistol, loaded with 12 rounds of 9mm ammunition.
Pierce is a felon who was convicted of simple burglary on February 10, 2016 in Bossier Parish and was sentenced to six years in prison and five years of probation. Under federal law, felons are not allowed to possess firearms.
Pierce faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for June 18, 2019.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
San Jose Resident Sentenced to 33 Months in Prison for Embezzlement of an Emeryville CompanyRead the Press Release
OAKLAND – Dinesh Shankar was sentenced today to 33 months in prison and ordered to pay $2,618,000 in restitution as result of his mail fraud conviction for embezzling from an East Bay medical device company, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Judge.
Shankar, 41, of San Jose, Calif., pleaded guilty to one count of mail fraud on November 1, 2018. According to the plea agreement, from March 2013 until January 2018, Shankar was an employee of an Emeryville-based medical device company. Beginning in July 2013 until December 2017, the defendant submitted false expense reports and false invoices to the company’s finance department, causing the company to pay more than half a million dollars in excess of the legitimate expenses and expenditures for services provided to the company. In addition, Shankar admitted he created false invoices that appeared to be issued by six different entities. The entities were actually fictitious business names for entities that Shankar controlled. Shankar prepared the false invoices to make it appear the entities had provided testing and quality assurance services to his employer when, in fact, they had not provided the services. Shankar admitted he caused a total loss to the company of about $2,576,384.
A federal grand jury indicted Shankar on April 12, 2018, charging him with six counts of mail fraud, in violation of 18 U.S.C. § 1341. Shankar pleaded guilty to one count and the remaining counts were dismissed.
In addition to the prison sentence and restitution, Judge Gonzalez Rogers also sentenced the defendant to serve a three-year term of supervised release. The defendant will begin serving the sentence on May 1, 2019.
Assistant U.S. Attorney Lloyd Farnham is prosecuting the case with the assistance of Bridget Kilkenny and Claudia Hyslop. The prosecution is the result of an investigation by the FBI.
San Fernando Valley Brothers Arrested in Stolen Refund Check Scheme that Allegedly Involved International Money LaunderingRead the Press Release
LOS ANGELES – Federal authorities have arrested two brothers from Woodland Hills who are charged in a stolen tax refund check scheme involving hundreds of thousands of dollars in fraudulently obtained federal income tax refunds, some of which were then laundered through bank accounts held in the United Kingdom.
Victor A. Ohiri, 50, and Stephen O. Danielson-Ohiri, 49, were arrested late Tuesday pursuant to a 13-count indictment returned by a federal grand jury on January 29 that charges them with conspiracy, theft of government property, and international money laundering.
The Ohiri brothers were arraigned on the indictment Wednesday afternoon in United States District Court in downtown Los Angeles. Both defendants pleaded not guilty and were ordered to stand trial on April 23.
The indictment alleges that between March 2014 and March 2015, Victor and Stephen Ohiri, together with two unidentified co-conspirators, conspired to use bank accounts to launder hundreds of thousands of fraudulently obtained federal income tax refunds. During the course of the conspiracy, at least $294,000 in federal income tax refunds was deposited into accounts controlled by the Ohiris.
According to the indictment, the unidentified co-conspirators filed fraudulent federal income tax returns with the Internal Revenue Service in the names of taxpayers who were identity theft victims. The co-conspirators used fake documents, such as bogus Forms W-2, and information from the Ohiris’ bank accounts to file the fraudulent returns, which sought large tax refunds, often between $8,000 and $10,000.
Based on the false and fraudulent returns, the IRS issued tax refunds, which were electronically transmitted not to the named taxpayers, but instead to the bank accounts controlled by Victor and Stephen Ohiri, and others. Victor and Stephen Ohiri then withdrew the funds and/or transferred the funds to other bank accounts. In relation to most of the tax refunds, the majority of the funds were wired overseas to the unidentified co-conspirators in the United Kingdom.
During the investigation, IRS investigators seized approximately $181,000 in 2014 from two of Stephen Ohiri’s bank accounts – money that came from just one fraudulently obtained tax return.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If the Ohiris were to be convicted of the charges alleged in the indictment, each defendant would face a statutory maximum sentence of 145 years in federal prison.
During Wednesday’s arraignment, a United States Magistrate Judge ordered Victor Ohiri detained without bond pending trial, while Stephen Ohiri was ordered released on a $75,000 bond.
The case against the Ohiris is part of an ongoing investigation being conducted by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorney Kristen A. Williams of the Major Frauds Section.
Salvadoran National Sentenced for Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A Salvadoran national, illegally present in the United States, was sentenced today in federal court in Boston for failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).
Melvin Velasquez, 34, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to eight months in prison and five years of supervised release. In November 2018, Velasquez pleaded guilty to one count of failure to register as a sex offender. Velasquez was charged by criminal complaint in August 2018 and has been in federal custody since his arrest.
In 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in prison and eight years of probation. As a condition to his probation, Velasquez was required by SORNA to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was also determined to be illegally present in the United States, was deported to El Salvador following the completion of his sentence.
Sometime thereafter, Velasquez returned to the United States, assumed a false identity, and was living and working in East Boston. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his alien file stemming from his 2007 New York rape conviction. Law enforcement subsequently discovered that Velasquez had not registered, as required by law, with the Massachusetts Sex Offender Registry Board.
United States Attorney Andrew E. Lelling; United States Marshal John Gibbons of the District of Massachusetts; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Puerto Rican man Sentenced for His Role in Rochester Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Freddie Silva Otero, 49, of Mayaguez, Puerto Rico, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to serve 57 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that between January 12, 2018, and January 29, 2018, the defendant conspired with others to distribute cocaine in the Rochester area.
In furtherance of the conspiracy, Otero communicated via telephone with co-defendants Leitscha Poncedeleon and Carlos Javier Figueroa regarding the shipment of cocaine from Puerto Rico to Rochester, via the United States Postal Service. Leitscha Poncedeleon would provide the defendant with addresses. Otero then mailed packages containing approximately two kilograms of cocaine each.
Between January 16 and January 24, 2018, the defendant shipped a total of six packages from Puerto Rico to Rochester via the United States Postal Service.
A total of 10 defendants have been charged in connection with this conspiracy, five have been convicted.
Today’s sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Mark Simmons; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Greece Police Department, under the direction of Chief Patrick Phelan; the Brighton Police Department, under the direction of Chief Mark Henderson; and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Gregory Johnson.
Princeton Man Sentenced on Federal Drug ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a Princeton man was sentenced in federal court on his conviction for distributing cocaine. Jermaine Jones, 30, was sentenced to 21 months in prison.
“Cocaine, guns, and selling drugs,” said United States Attorney Mike Stuart. “Another drug dealer is off the streets, away from our families and communities and headed to a federal prison. Our drug task forces are working with a sense of urgency to keep our citizens safe and free from the drug demons that thrive on the innocent and vulnerable.”
Jones pled guilty in October, admitting that on March 30, 2018, he distributed a quantity of cocaine to a confidential informant near Bluewell in Mercer County. He further admitted that he sold cocaine in Mercer County on four other occasions in March and April of 2018, and that he possessed an additional amount of cocaine on April 4, 2018, at his residence in Princeton. Finally, he admitted that when authorities searched his residence, they found his two pistols.
This case was investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John File handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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President and Vice President of South Florida Construction Company Convicted at Trial of Defrauding Low-Income Housing Development ProgramRead the Press Release
Following a six-day jury trial, the president and vice president of a South Florida construction company were convicted of defrauding a low-income housing development program.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Mary T. Cagle, Inspector General, Miami Dade County Office of the Inspector General, made the announcement.
Javier Estepa, 48, of Davie, Florida and Diego Alejandro Estepa Vasquez, 37, of Boca Raton, Florida, were convicted yesterday of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and three counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343 (Case No. 18-CR-20530). In addition, Javier Estepa was convicted of three counts of making a false statement to a federal agency and Diego Alejandro Estepa Vasquez was convicted of one count of making a false statement to a federal agency, in violation of Title 18, United States Code, Section 1001. The defendants face a statutory maximum penalty of 20 years in prison as to each count of wire fraud and a statutory maximum penalty of 5 years in prison for each count of making a false statement. Sentencing is scheduled for May 10, 2019, at 2 p.m. before U.S. District Court Judge Ursula Ungaro.
The evidence at trial established that, between June 2014 and December 2016, Javier Estepa and Diego Alejandro Estepa Vasquez engaged in a scheme to unlawfully enrich themselves by securing Miami-Dade Public Housing and Community Development (PHCD) bid awards and causing payments on those contracts by making materially false and fraudulent representations, and by the concealment of material facts concerning, among other things, the utilization of subcontractors, the number of workers employed on the construction projects, the hours worked, and the status of those workers as employees of Aaron Construction Group, Inc.
Javier Estepa and Diego Alejandro Estepa Vasquez, the president and vice president, respectively, of Aaron Construction Group, submitted bids to PHCD, on behalf of Aaron Construction, for specific renovation and repair of low-income housing in various locations throughout Miami-Dade County. In the bids, Javier Estepa and Diego Alejandro Estepa Vasquez falsely and fraudulently represented that no subcontractors would be utilized in connection with the contract, that each worker would be paid for each hour worked, including for overtime, according to the Davis Bacon prevailing wage rates, and that Aaron Construction would obtain workers’ compensation insurance, in accordance with state laws. However, immediately after being awarded the contracts, Aaron Construction entered into agreements with subcontractors which set a fixed payment at very low amounts for their work, regardless of the number of hours worked. In addition, Aaron Construction required subcontractors to provide the information of two or three subcontractor employees so that they could be placed on Aaron Construction’s certified payroll to appear as if they were Aaron Construction employees. The evidence at trial established that Aaron Construction failed to accurately report the hour employees worked on the job sites or the specific categories of work performed.
In order to obtain payment from PHCD, Javier Estepa and Diego Alejandro Estepa Vasquez submitted Periodic or Final Estimate for Payment packets to PHCD containing false and fraudulent certified payroll records that listed fewer workers than were actually employed on the project and falsified the number of hours worked. In addition, the evidence at trial established that the workers were not paid the appropriate wages under the Davis Bacon Act, nor were the workers paid overtime. Javier Estepa and Diego Alejandro Estepa Vasquez falsely and fraudulently stated that they had no subcontractors working on the project, falsely characterizing the workers as employees of Aaron Construction, when in fact they were subcontractors and subcontractor employees. In addition, Javier Estepa and Diego Alejandro Estepa Vasquez submitted with the Periodic or Final Estimate for Payment packets sworn statements of compliance that falsely and fraudulently certified that the information submitted was true and correct. As a result of these false and fraudulent submissions, PHCD transferred over $3.9 million dollars in funds to bank accounts controlled by Javier Estepa and Diego Alejandro Estepa Vasquez.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOL-OIG, HUD-OIG and the Miami Dade County Office of the Inspector General. She thanked the Miami-Dade Police Department for their assistance. The case was prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein and John Gonsoulin.
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.
Poplar Grove Man Sentenced to 21 Months in Prison for Theft of More Than $160,000 in Social Security BenefitsRead the Press Release
ROCKFORD — A Poplar Grove man was sentenced today by U.S. District Judge Frederick J. Kapala for theft of government funds.
JONATHAN GORZELA, 56, was sentenced to 21 months in federal prison, to be followed by three years of supervised release. Gorzela, who pleaded guilty to the charge on Oct. 12, 2018, was also ordered to pay restitution in the amount of $160,858.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Tracey Thanos, Special Agent-in-Charge of the Social Security Administration’s Office of Inspector General in Chicago. The Illinois Department of Rehabilitative Services assisted in the investigation. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
According to a written plea agreement, between April 1991 and December 2015, Gorzela received disability benefits from funds administered by the Social Security Administration that he was not entitled to receive. Gorzela began receiving Social Security Income disability benefits in July 1984 after he sustained a gunshot wound to his back that left him a paraplegic. Gorzela was required to immediately report to the SSA any changes in income, family size or composition, family income, benefits from other sources, improvement in medical condition, or return to work. In multiple documents submitted to the SSA, Gorzela acknowledged he understood his responsibility to report any such changes to the SSA. Gorzela married in April 1991 and from that date through October 2015 did not disclose his marriage, nor the fact that his spouse was employed throughout the time of the marriage, or his spouse’s income.
In February 1998, Gorzela used false documentation to obtain a second Social Security number under another name. From 2000 through 2014 Gorzela obtained various jobs using the second social security number and the other name. None of the income obtained from that employment was reported to the SSA. As a result of Gorzela’s failure to report his marriage, his wife’s income, and the income he earned using his second identity to the SSA, Gorzela was overpaid approximately $160,858 in SSI disability benefits.
Gorzela also used his second identity to falsely obtain payment from the Illinois Dept. of Rehabilitative Services for the use of a paid personal assistant for which he qualified due to his injury. Between April 2006 and June 2008, Gorzela billed the IDRS approximately $28,566 for services purportedly provided to him under his alias identity. In addition, Gorzela billed the IDRS for services purportedly provided to the defendant by his son during the time periods that his son was incarcerated and during periods that Gorzela was working full time. Those billings resulted in the IDRS paying the defendant’s son approximately $21,382 for services that were not performed. In total, Gorzela caused the IDRS to overpay $49,948 for services that were not performed.
Pinellas Men Plead Guilty in Telemarketing ScamRead the Press Release
Tampa, FL – Troy Cater (30) and David Bell (55), both of St. Petersburg, have pleaded guilty to a money laundering conspiracy. Each faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
Pursuant to their plea agreements, Cater has agreed to pay $145,961.35 and Bell has agreed to pay $268,356, in restitution to the scheme’s numerous victims. In addition, Cater and Bell have consented to forfeiture money judgments in the amounts of $15,000 and $26,000, respectively, which represent the proceeds of the fraud.
According to the plea agreements, from 2015 through 2018, Cater and Bell conspired with others to take money from victims throughout the United States who wanted to sell their timeshare properties or other parcels of land. Other conspirators placed telephone calls to these victims impersonating real estate professionals and misleading the timeshare owners to believe that the conspirators had identified buyers for the victims’ timeshares and other properties. The conspirators further advised the victims that the sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus advance fees, the conspirators directed the victims to send funds via wire transfers to Cater and Bell, who then withdrew the fraud proceeds or hired others to retrieve the proceeds and shared them among the conspirators based on each conspirator’s role in the fraudulent transaction. The conspirators also continued to contact their victims, fraudulently advising them that additional funds were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advance fees until the victims ran out of money or became aware of the scam.
The scam then evolved into a second stage where the conspirators re-contacted the victims via email and, now posing as helpful attorneys, told the victims that they had been defrauded in a timeshare scam. They offered to “represent” the victims against the “first attorneys,” and to obtain settlements on their behalves. Once the conspirators had gained the trust of the timeshare victims in their new roles, they directed the victims to forward additional bogus fees to Cater, Bell, and others. Some victims paid the conspirators several hundreds of thousands of dollars for the purported “litigation,” which Cater and Bell retrieved or had others retrieve at their direction.
Cater and Bell were initially recruited into the scheme by others, including several defendants who have pleaded guilty to related charges. Mark Boring previously pleaded guilty to wire fraud conspiracy and aggravated identity theft. His sentencing hearing is set for March 7, 2019. Martin Steele has pleaded guilty to wire fraud conspiracy and aggravated identity theft. His sentencing hearing has not yet been set. Gary Kinard has been sentenced to seven years and eleven months in federal prison for wire fraud conspiracy and aggravated identity theft for his role in the scheme.
This case was investigated by the FBI, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Pinellas Man Sentenced to Nearly Eight Years in Prison for Telemarketing ScamRead the Press Release
Tampa, FL – U.S. District Judge Susan Bucklew has sentenced Gary Kinard (40, St. Petersburg) to 7 years and 11 months in federal prison for his role in a telemarketing scheme. As part of his sentence, the court also entered a money judgment of $75,000, the proceeds of the wire fraud conspiracy. In addition, Kinard was directed to pay a total of $2,244,735.66 to 43 identified victims of the scheme.
According to court records, from 2016 through at least 2018, Kinard conspired with others to take money from victims throughout the United States who wanted to sell their timeshare properties or other parcels of land. Kinard and others placed telephone calls to these victims impersonating real estate professionals. They misled the timeshare owners to believe the conspirators had identified buyers for the victims’ timeshares and other properties. The conspirators further advised the victims that the timeshare and property sales could be consummated if the victims made one or more advanced payments to the conspirators for various fees purportedly associated with the sales, such as closing costs, courier services, title searches, transfer fees, and legal fees. Once the victims agreed to pay the bogus advance fees, the conspirators directed the victims to send funds via wire transfers to one of the conspirators. That coconspirator then withdrew the fraud proceeds and shared them with the others, based on each conspirator’s role in the fraudulent transaction. The conspirators often repeatedly re-contacted their victims and fraudulently advised them that additional fees were needed in order to complete the sales, and they continued to dupe the victims into sending bogus advance fees until the victims either ran out of money or became aware of the scam.
After the victims depleted their assets or recognized that they had been defrauded, Kinard and other conspirators evolved the scheme. In this second stage, Kinard and/or other conspirators re-contacted their victims via email and, now posing as helpful attorneys, told the victims that they had been defrauded in a timeshare scam. They then offered to “represent” the victims against the “first attorneys,” and to obtain settlements on their behalves. Once Kinard had regained the trust of the timeshare victims, he directed the victims to forward additional bogus fees purportedly associated with the cost of litigation, settlement expenses, and other related expenses. Some victims paid the conspirators hundreds of thousands of dollars for the purported “litigation.” Over the course of the conspiracy, many victims lost their retirement savings and their homes.
Mark Boring, Martin Steele, David Bell, and Troy Cater previously pleaded guilty for their roles in this scheme. Their sentencing hearings are pending.
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Philadelphia Man Sentenced to 24 Months in Federal Prison for Illegal Gun PurchasesRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that on February 27, 2019, Elias K. Davie, age 37, was sentenced by U.S. District Court Judge Richard G. Andrews to 24 months incarceration. Davie pled guilty to making false statements to a licensed firearms dealer in the acquisition of firearms.
According to court filings, over a two-month period, Davie straw purchased three handguns for drug dealers, falsely representing that he was the actual purchaser when, in fact, he intended to transfer the firearms to drug dealers. Thereafter, Davie attempted to straw purchase two additional guns for individuals that were prohibited from owning them.
Following the sentencing, U.S. Attorney Weiss stated, “It is a violation of law to straw purchase firearms. It is even more egregious to supply those firearms to drug dealers. This is a lethal combination and we will do our best to ensure that such defendants are held fully accountable for their conduct.”
“Our mission is to protect communities from anyone using firearms to commit illegal and violent acts,” said ATF Baltimore Special Agent in Charge Cekada. “Those who aid felons by supplying them with guns and who criminally abuse the process of purchasing firearms must be held accountable for their role in threatening the safety of our communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Whitney Cloud and Laura D. Hatcher.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District of Delaware for the District of Delaware or on PACER by searching for Case No. 18-CR-4-RGA.
Peter Mazza Sworn in as Second-in-Command at U.S. Attorney’s OfficeRead the Press Release
Kelly Thornton 619-546-9726
NEWS RELEASE SUMMARY – February 28, 2019
SAN DIEGO – Peter J. Mazza, a trial lawyer and former federal prosecutor, rejoined the U.S. Attorney’s Office today as second-in-command of one of the busiest federal districts in the nation.
Mazza, who was selected by U.S. Attorney Robert Brewer, was sworn in by Chief U.S. District Judge Larry Burns during a ceremony this morning. As First Assistant U.S. Attorney, Mazza will oversee the day-to-day operations of the office and serve as a trusted advisor to the U.S. attorney.
During his eight years as a prosecutor in the San Diego office beginning in 2006, Mazza worked in the General Crimes Section, the Organized Crime Drug Enforcement Task Forces Section and the Major Frauds and Special Prosecutions Section, handling a wide variety of complex and significant cases. Mazza led many investigations involving crimes such as multi-million dollar tax and bank fraud schemes, public corruption, racketeering, extortion, money laundering and fraud.
Mazza left the office in 2014 to become a partner at Jones Day, specializing in business and tort litigation.
Brewer, who was sworn in as U.S. Attorney on January 16, previously worked at Jones Day, where he met Mazza briefly before moving to another firm. The two overlapped for a couple of months in 2014. Brewer said he was impressed by Mazza’s work experience.
“I am excited that the office will once again benefit from the depth and breadth of Pete’s expertise and knowledge related to our work and our mission,” U.S. Attorney Brewer said. “His sterling reputation, trial experience, and our shared vision for the office made him the clear choice. We and the entire Department of Justice are tremendously fortunate that he has decided to bring his legal skill, extraordinary judgment and professional experience back to our office.”
Mazza received his Bachelor of Arts in History from Yale University, graduating cum laude, and was captain of the varsity football team. He received his law degree from the University of Michigan Law School, graduating with distinction.
The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation. The office is composed of approximately 140 Assistant U.S. Attorneys and 145 staff members.