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Tuesday 26 February 2019
Violent felon convicted of serial armed robberies of Waffle House restaurants and other businesses in DeKalb CountyRead the Press Release
ATLANTA – Joseph Orlando Hood, a previously convicted felon, has been convicted by a federal jury of several armed commercial robberies, including three Waffle House Restaurants and a United Inn and Suites Motel.
“Hood terrorized and nearly killed several people during his lengthy robbery spree,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the courage of the many victims in this case who testified at trial despite suffering ongoing trauma, and the diligence of our federal and local law enforcement partners, this violent serial robber will be kept off the streets of our district for many years.”
“This case is the product of a concerted collaborative effort on the part of ATF and its local partners to target, investigate, and eliminate the perpetrators of violent crime,” said Assistant Special Agent in Charge Beau Kolodka of the ATF Atlanta Field Division.
“We are very thankful that the partnership between state local and federal agencies have proven to be effective in making our communities safe. In this case, it has taken a very violent felon off the streets. It is successful prosecutions of cases like this, that strengthens our collaboration between law enforcement and citizens to address crime and the fear of crime in our communities,” said Chamblee Police Chief Kerry Thomas.
According to U.S. Attorney Pak, the charges and other information presented in court: Between November 12, 2016, and November 17, 2016, Hood committed commercial armed robberies at Waffle House restaurants in Chamblee, Lithonia, and Tucker, Georgia, at the United Inn and Suites in Decatur, and the Raymok Bar and Grill in Scottsdale. All of the businesses were located in Georgia.
During one of the Waffle House robberies, Hood shot at a customer who tried to escape. He also pistol-whipped the manager of United Inn and Suites motel during the armed robbery of that business. Hood’s armed robbery spree ended after he robbed Raymok Bar and Grill. While Hood fired several rounds at a customer who tried to escape during the robbery, the manager of the bar shot Hood in the leg. Hood fled but was quickly located by law enforcement officers in a nearby apartment complex.
Joseph Orlando Hood, 32, of Scottdale, Georgia, will be sentenced before U.S. District Steve C. Jones on May 20, 2019 at 10:00 a.m. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the DeKalb Police Department, and the Chamblee Police Department.
Assistant U.S. Attorneys Dash A. Cooper and Joseph Plummer prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Vinalhaven Man Sentenced to over Two Years for Making Interstate ThreatsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Eric Malmstrom, 40, of Vinalhaven, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 27 months in prison and three years of supervised release for transmitting threatening interstate communications. Malmstrom was convicted on August 27, 2018, after a one-day jury trial.
The evidence at trial revealed that on three occasions in February and March of last year, Malmstrom placed telephone calls to an employee of the Swedish embassy in Washington, D.C., threatening to slit the employee’s throat. Between September 2017 and March 2018, Malmstrom placed hundreds of calls to the embassy and to the employee.
In pronouncing sentence, Judge Hornby described Malmstrom’s offenses as “a despicable set of crimes,” in which Malmstrom threatened people “with vile mutilation and death.”
“This case demonstrates that threats against public officials will be aggressively investigated and prosecuted,” said U.S. Attorney Frank. “Targeting a government official because of his or her official status threatens not only the particular individual victim but also the system of government as a whole.”
“Today’s sentencing of Eric Malmstrom sends a strong message: Diplomatic Security is committed to making sure those who threaten diplomatic personnel in the United States face consequences,” said Bart Brown, director of the U.S. Department of State, Diplomatic Security Service’s (DSS’) Office of Protective Intelligence Investigations (PII). “DSS’s strong relationship with the U.S. Department of Justice, the U.S. Secret Service and the Knox County Sheriff’s Department is essential in the pursuit of justice.”
This case was investigated by the DSS-PII; the U.S. Secret Service; and the Knox County Sheriff’s Department.
Vian Man Sentenced to 60 Months for Attempted Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Donald Lee Blackbird, age 59, of Vian, Oklahoma, was sentenced to 60 months’ imprisonment and 5 years of supervised release for Attempted Sexual Abuse Of A Minor, in violation of Title 18, United States Code, Sections 1153, 2243(a) and 2246. The charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
The Indictment alleged that on or about April 3, 2018, in the Eastern District of Oklahoma, in Indian Country on an allotment, the title to which had not yet been extinguished, the defendant, an Indian, knowingly attempted to engage in a sexual act as defined in Title 18, United States Code, Section 2246(2), with a person who had attained the age of 12 years, but had not attained the age of 16 years and was at least four years younger than defendant, with an intent to arouse or gratify the sexual desire of any person.
United States Attorney Brian J. Kuester said, “People that prey upon children are and always must be priority targets for investigation and prosecution. Predators will take advantage of every opportunity they have to satisfy their deviant desires, even if that means taking advantage of a child. Their crimes, by their own design, occur in private and thus can be difficult to prove. I applaud the victim for having the courage to endure the investigative and prosecutorial process so the Cherokee Nation Marshal Service, the FBI, and this office could seek justice against Mr. Blackbird.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Two Sentenced for Identity and Mail Theft in Sacramento, San Joaquin, and Stanislaus CountiesRead the Press Release
SACRAMENTO, Calif. — Derek Hillgert, 29, of Carmichael, and Jeffrey Wilhite, 31, of Linden, were each sentenced Monday to five years in prison for committing access device fraud, aggravated identity theft, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hillgert and Wilhite worked together to steal U.S. mail and conduct transactions with stolen identities. On the day of their arrests, they possessed over 200 pieces of stolen mail addressed to over 100 victims. With Wilhite’s assistance, Hillgert used a stolen identity to purchase a van at a dealership in Modesto. Hillgert presented a fraudulent driver’s license in the other person’s name but with Hillgert’s photograph, and he obtained a loan in the other person’s name for over $39,000. Wilhite opened a Target debit card account using a second stolen identity, and the defendants made more than $3,000 in purchases with it.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Tracy Police Department. Assistant U.S. Attorney Miriam R. Hinman prosecuted the case.
Two Sentenced for Heroin, Fentanyl and Firearm ChargesRead the Press Release
St. Louis, MO – James Earl Paulette, 37, of Saint Louis County, was sentenced to five years imprisonment today for charges related to heroin and fentanyl distribution and illegal firearm possession. Paulette appeared before U.S. District Judge Henry Autrey. Co-defendant Terrell Lee Davis, 33, of Saint Louis County, was previously sentenced to five years imprisonment on similar charges.
According to court documents, between August 16 and 28, 2017, Paulette and Davis repeatedly sold over 60 capsules of heroin in Saint Louis County, Missouri. On August 28, 2017, Davis was arrested after distributing heroin. At the time of arrest, Davis possessed a loaded pistol, ammunition, and additional controlled substances including heroin, fentanyl, marijuana and methamphetamine.
That same day, a search warrant was executed at Paulette's residence in St. Louis County, Missouri. Multiple firearms and controlled substances were recovered including fentanyl, heroin and methamphetamine.
This case was investigated by the St. Louis County Police Department and Federal Bureau of Investigation (FBI). Assistant United States Attorney Sara Koppenaal is handling the case for the U.S. Attorney's Office.
Two More Opioid Dealers Sentenced for Their Roles in Elmira Drug Trafficking RingRead 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 Anthony J. Prettyman, 28, of Elmira, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of a fentanyl analogue, was sentenced to serve 125 months in federal prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Judge Geraci sentenced Dwayne Banks, 30, of Elmira, NY, to serve 108 months in federal prison for his conviction on the same offense.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that both defendants were part of a large-scale opioid manufacturing and trafficking organization that operated in the Southern Tier of New York between 2015 and May 2017. As members of the organization, Prettyman and Banks were mid-level dealers of blue pills containing furanyl fentanyl and U-47700 in the Elmira area. The blue pills were manufactured by the leaders of the organization – Robert Ian Thatcher and Maximillian Sams – and made to look like legitimate 30 milligram Percocet pills.
Prettyman admitted to selling pills to various customers, including a 21 year-old female who ultimately died of drug overdose from using the pills. In addition, Prettyman admitted to smuggling more than 5,300 pills containing furanyl fentanyl to North Carolina in October 2016. Prettyman was caught by the Iredell County (North Carolina) Sheriff’s Office transporting the pills in the false bottom of a fake paint can.
To date, 16 members and associates of the opioid manufacturing and trafficking operation have been convicted of federal narcotics offenses. Seven defendants have been sentenced:
Thatcher was sentenced to serve 23 years in federal prison; Thatcher’s girlfriend, Amber Bates, who was convicted of money laundering conspiracy, was sentenced to five years probation to include six months of home detention; Robert J. Elford was sentenced to 121 months in federal prison; Edward Barrett was sentenced to 90 months in federal prison; Dusty Pemberton was sentenced to 70 months in federal prison; Deven Hill was sentenced to 37 months in federal prison; and Isaiah McLaurin, who was convicted of witness tampering after threatening an individual working with the Drug Enforcement Administration on Facebook, was sentenced to serve 57 months in federal prison.
Today’s sentencings are the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, Community Narcotics Enforcement Team Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; the Elmira Police Department, under the direction of Chief Joseph Kane; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Pennsylvania State Police, under the direction of Acting Commissioner Lieutenant Colonel Robert Evanchick; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell; and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.# # # #
Two More Defendants Sentenced in Methamphetamine Trafficking InvestigationRead the Press Release
United States Attorney Joe Kelly announced that on February 25, 2019, Senior United States District Judge Laurie Smith Camp, sentenced Jasive Zamora-Carrillo to a term of imprisonment of 168 months, and Luis Tafoya to a term of imprisonment of 18 months. Zamora-Carrillo and Tafoya will serve their sentences in the U.S. Bureau of Prisons. Zamora-Carrillo pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and use of facilities in interstate commerce in aid of racketeering. Ramon Penunuri-Noriega, another defendant in the case, was previously sentenced on January 14, 2019, to an equivalent term of imprisonment.
During the first few months of 2018, Zamora-Carrillo conspired with others to distribute multi-pound quantities of methamphetamine to customers throughout eastern Nebraska and southwest Iowa. Luis Tafoya, a customer, pleaded guilty to possession with intent to distribute methamphetamine. Tafoya drove with a fourth co-defendant from Lincoln, Nebraska, to a casino in Council Bluffs, Iowa, to obtain approximately four ounces of methamphetamine.
The case was primarily investigated by the Omaha Field Division of the Drug Enforcement Administration, the Omaha Police Department, and the Southwest Iowa Narcotics Task Force.
Two Men Involved in the Illegal Manufacture and Distribution of Xanax and Steroids are SentencedRead 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 conspiring to manufacture counterfeit Xanax tablets and anabolic steroids, and distribute the controlled substances on the dark web. Yesterday, U.S. District Judge Alvin W. Thompson sentenced WILLIAM FUSCO, 34, of Philadelphia, Pennsylvania, to 20 months of imprisonment, followed by three years of supervised release. Today, Judge Thompson sentenced JASON CHEN, 34, of Norwich, Connecticut, to three years of probation, the first three months of which Chen must serve in home confinement.
According to court documents and statements made in court, Fusco marketed counterfeit Xanax tablets and anabolic steroid pills on dark web forums such as Alphabay. Fusco paid Chen to maintain two pill presses at Chen’s residence and help Fusco manufacture and distribute the counterfeit Xanax and steroids to Fusco’s customers. Fusco arranged to have chemicals needed to produce Xanax and steroids shipped to Chen’s residence. On several occasions, Fusco traveled to Chen’s home to mix chemicals and press chemicals, including Alprazolam powder into Xanax pills.
Fusco sent Chen emails that indicated the product, quantity, and mailing address of each customer, as well as a link for Chen to click on to get a prepaid shipping label that corresponded to the order. Chen packaged the controlled substances, printed the prepaid shipping labels, applied the labels onto the corresponding packages, and then dropped the packages into various blue U.S. Postal Service collection boxes. For several months, Chen shipped approximately 30 packages per week. Fusco paid Chen between $10 and $20, in Bitcoin, for each package.
A court-authorized search of Chen’s residence revealed two industrial pill tableting machines, tool and dye molds, one electric powder mixer/hopper, approximately 65,122 Xanax tablets, approximately 792 grams of Alprazolam powder, approximately 12,000 steroid capsules, more than 321/100ml liquid steroid vials, and approximately $8,900 in cash.
Fusco was arrested on a federal criminal complaint on June 16, 2017. On that date, a court-authorized search of his residence revealed tool and dye molds, electronic scales, chemistry equipment, pill capsules, steroid bottle caps, other items used to process and package controlled substances, $42,448 in cash, eight firearms, and ammunition.
In December 2017, Fusco and Chen each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, controlled substances, and one count of possession of a tableting machine or any equipment used to manufacture a controlled substance. In pleading guilty, they admitted that they conspired to distribute more than 213,000 counterfeit Xanax tablets and thousands of units of anabolic steroids.
This matter was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
Two Malaysian Nationals Indicted for Conspiring to Illegally Export Firearm Parts to Hong KongRead the Press Release
BOSTON – Two Malaysian nationals were indicted today for conspiring to illegally export firearm parts from the United States to Hong Kong.
Lionel Chan, 35, a resident of Brighton, and Muhammad Mohd Radzi, 26, who resides in Brooklyn, N.Y., were each indicted on one count of conspiring to violate the Arms Export Control Act. Chan was also indicted for obstruction of justice. On Jan. 31, 2019, Chan and Radzi were arrested and charged by criminal complaint.
According to the indictment, beginning in or around March 2018, Chan began purchasing a variety of U.S.-origin firearm parts online, including parts used to assemble AR-15 assault rifles and 9MM semi-automatic handguns, for a buyer located in Hong Kong. Many of the firearm parts that Chan purchased and exported to Hong Kong are defense articles that are designated on the United States Munitions List and therefore cannot be exported from the United States without first obtaining an export license or written authorization from the U.S. Department of State. Nonetheless, Chan allegedly shipped the firearm parts via Federal Express to the buyer in Hong Kong without first obtaining the necessary export licenses. Chan intentionally concealed the contents of the shipments by providing Federal Express with false information about the shipments, and by concealing the parts inside of each package. Between March and May 2018, Chan allegedly shipped at least 12 packages containing firearm parts from Brighton to the buyer in Hong Kong.
In or around April 2018, Radzi allegedly joined the conspiracy and began illegally exporting firearm parts to Hong Kong as well. Between May and October 2018, Radzi allegedly shipped 21 packages from Brooklyn, N.Y., to the buyer in Hong Kong. In October 2018, two of those packages were interdicted by Hong Kong authorities and found to contain numerous firearms parts, including a firing pin and gun sight, which are defense articles and controlled under Category I of the United States Munitions List. Like Chan, Radzi failed to obtain an export license for any of these shipments.
In addition to the conspiracy charge, Chan was also indicted for obstructing justice. According to the indictment, during a flight from Dublin, Ireland to Boston on January 2, 2019, Chan deleted text messages between himself and the buyer in Hong Kong regarding the illegal export of firearm parts from the United States to Hong Kong without the necessary export licenses.
The charge of conspiring to illegally export firearms provides for a sentence of no greater than five years in prison, one year of supervised release and a $250,000 fine. The charge of obstructing justice provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The Massachusetts State Police and U.S. Customs and Border Protection also assisted with the investigation. Assistant U.S. Attorneys George P. Varghese and Jason A. Casey of Lelling’s National Security Unit are prosecuting the case.
Details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Charged with Robbing Cellular Phone Store in Fort WayneRead the Press Release
FORT WAYNE, IN –Quran Waterford, 34, of Bloomington, Indiana and Gary McCaleb, 29, of Harvey, Illinois were charged with Hobbs Act Robbery, and possessing and using a firearm during the commission of a crime of violence announced U.S. Attorney Thomas L. Kirsch, II.
The complaint alleges that on December 13, 2018, Waterford, McCaleb and a third unidentified man entered a cellular phone store in Fort Wayne, Indiana, and displayed a firearm. The three men confined two store employees and two customers and stole numerous cell phones and other merchandise, worth over $58,000. Waterford and McCaleb were apprehended by the Fort Wayne Police Department after a brief vehicle pursuit.
U.S. Attorney Kirsch said, “Bold robberies such as this commands swift response from law enforcement. I want to commend the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department for their work in investigating this case. Aggressive prosecution of violent crimes is one of the District’s top priorities.”
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Two Businessmen Charged with Foreign Bribery in Connection with Venezuela Bribery SchemeRead the Press Release
A former sales representative and the president of a U.S.-based company were charged in an indictment unsealed today on foreign bribery, wire fraud and money laundering charges for their alleged roles in a scheme to corruptly secure business advantages, including contracts and payment on past due invoices, from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston Field Office made the announcement.
Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were charged in a five-count indictment returned in the Southern District of Texas on Feb. 21, and unsealed today. Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida. Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of conspiracy to launder money.
The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto, a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), and Muller, the President of Company A, conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business. According to the indictment, in exchange for bribe payments the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices. The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company charging Company A three percent of whatever payment Company A had received from PDVSA and directing Company A to send payment to a Swiss bank account. According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid.
The wire fraud charges against Pinto and Muller are based on allegations that, in addition to directing Company A money to the three PDVSA officials to benefit Company A, Pinto and Muller received kickbacks in connection with the scheme. In total, Pinto is alleged to have received over $985,000 in kickback payments, and Muller over $258,000.
Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston – have already pleaded guilty in connection with the case and are pending sentencing.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami. Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollison of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, and the Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Businessman Charged with Foreign Bribery in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON - A former sales representative and the president of a U.S.-based company surrendered to federal authorities yesterday for their alleged roles in a scheme to corruptly secure business advantages from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). These business advantages included contract awards and payment on past due invoices.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were arrested in Miami on arrest warrants based on a five-count indictment returned in the Southern District of Texas (SDTX) on Feb. 21, and unsealed today. Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida. Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud and one count of conspiracy to launder money.
According to the indictment, Pinto was a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), while Muller was Company A’s president. The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto and Muller conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business. In exchange for bribe payments, the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices. The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company. The invoices charged Company A three percent of whatever payment Company A had received from PDVSA and directed Company A to send payment to a Swiss bank account. According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid.
The wire fraud charges against Pinto and Muller are based on allegations that, in addition to bribing the three PDVSA officials, Pinto and Muller received kickbacks in connection with the scheme. In total, Pinto is alleged to have received more than $985,000 in kickback payments and Muller over $258,000.
Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston - have already pleaded guilty in connection with the case and are pending sentencing.
With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing U.S. government investigation into bribery at PDVSA. HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami. SDTX Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson and Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section are prosecuting the case. AUSA Kristine Rollison of the SDTX is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Traveler Sentenced for Attempting to Have Sex with a ChildRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Adam Scott Pike, 43, formerly of Rochester, Minnesota, was sentenced on Friday, Feb. 22, 2019, by U.S. District Judge Sharon L. Gleason, to serve 22.5 years in prison, to be followed by a life term of supervised release, for traveling to Alaska with the intent to have sex with a minor, and distribution of child pornography.
According court documents, in early 2017, Pike communicated through a social media application with an individual in Alaska. During those communications, the Alaska man sent sexually explicit images of a minor, and discussed with Pike the possibility of Pike traveling to Alaska in order to have sex with the minor.
On or about March 2, 2017, the FBI arrested the Alaska man and assumed control of his account. Conversations between Pike and an undercover FBI Special Agent about Pike’s trip to Alaska continued. During these communications, Pike sent to the undercover FBI Special Agent two videos of child pornography. Pike also sent images of himself masturbating that he requested be shown to the minor with who he was going to have sex. Pike traveled from Minnesota on April 3, 2017. When Pike arrived in Alaska, he contacted the FBI undercover Special Agent and told the Special Agent to come to a local motel with the minor. The FBI arrested Pike at the motel.
At sentencing, Judge Gleason noted the harm that Pike’s conduct had on the victims, including the minor with whom he intended to have sex, as well as the victims in the child pornography images he distributed. Judge Gleason stated that the sentence was intended to deter others who might contemplate similar conduct. “A sentence of this nature,” said Judge Gleason, “is a long and lengthy sentence that can hopefully deter others.”
Judge Gleason also ordered over $45,000 in restitution to be paid by Pike to the victims in this case. That money is to be used to pay for ongoing and future counseling needs for the victims. The Court also ordered that Pike reimburse the Violent Crimes Compensation Board for expenses incurred in assisting the victims of this case.
This case was investigated by the Federal Bureau of Investigation (FBI), and the Anchorage Police Department, Crimes Against Children Unit (CACU). Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Three Arrested in San Antonio and Charged Federally with Meth TraffickingRead the Press Release
In San Antonio today, authorities filed a federal criminal complaint against three San Antonio residents who were arrested last night while attempting to distribute over four kilograms of crystal methamphetamine, announced U.S. Attorney John Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
The complaint charges 18–year-old Rabbi Lee Ponce, 18–year-old Rudy Aragon, and 30–year-old Mercedes Trinidad, with one count of possession with intent to distribute methamphetamine. According to the complaint, federal and state authorities arranged for an undercover drug deal with Ponce who agreed to sell multiple kilograms of crystal methamphetamine. Ponce, along with Aragon, arrived at the agreed location last night followed shortly thereafter by Trinidad. After a canine unit alerted on Trinidad’s car, authorities recovered approximately 4.6 kilograms of crystal methamphetamine from inside her vehicle.
All three defendants remain in federal custody pending detention hearings in U.S. Magistrate Court in San Antonio. Upon conviction, the defendants face between ten year and life in federal prison.
The DEA is investigating this case together with the Guadalupe County Sheriff’s Office and the Texas Department of Public Safety.
Assistant U.S. Attorney Sean O’Connell is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Three Appleton Area Residents Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced today that a federal indictment was returned against Yia Thao (age: 31) and Yaj Vang (age: 29) both of Appleton, Wisconsin, and Nalee Xiong (age: 36) of Neenah, Wisconsin.
The indictment alleges that the trio conspired to possess in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute. If convicted, each faces a mandatory 10 year prison sentence and up to a lifetime of imprisonment. They could also be fined up to $10,000,000.
This case was investigated by the U.S. Postal Inspection Service and the Lake Winnebago Area Metropolitan Enforcement Group (LWAM). The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Kenneth Gales, 414-297-1700
Terry Slaughter Pleads Guilty to Embezzlement of Labor Union AssetsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today, in federal court, TERRY SLAUGHTER, age 48, pled guilty to embezzlement of labor union assets. In pleading guilty, SLAUGHTER, agreed to make restitution to the United Food and Commercial Workers Local Union 1208 in the amount of $62,315.38.
On January 8, 2019, SLAUGHTER was charged in a Criminal Information with knowingly, intentionally and willfully embezzling, stealing, abstracting and converting to his own use and the use of another, on a recurring basis, money, funds, property, and other assets of a labor organization of which he was an officer, knowing his appropriation of the property was unauthorized. This Information charged SLAUGHTER with using the embezzled money primarily to fund vacations and purchase personal items.
In 2011, Terry Slaughter was elected secretary-treasurer of the United Food and Commercial Workers (“UFCW”), Local Union 1208. The Local encompasses North and South Carolina and has approximately 3600 active members. As the Secretary-Treasurer, Slaughter had financial oversight of the Local’s expenditures, bills, staff benefits, and payroll. SLAUGHTER also acted as a counter signature on union checks and was responsible for providing monthly financial statements to the executive board as well as writing/maintaining the minutes from membership meetings.
In 2015, the UFCW initiated an audit of the Local after placing it under a trusteeship on March 30. The audit revealed that between January 2012 and March 2015, SLAUGHTER embezzled $62,315.38 in union funds by receiving unauthorized checks and making unauthorized purchases with his assigned debit card. The audit also revealed that SLAUGHTER failed to maintain required financial records and concealed his embezzlement by destroying monthly meeting minutes.
Mr. Higdon commented: “Terry Slaughter held a position of trust on behalf of the thousands of members of the United Food and Commercial Workers Union across North and South Carolina. This prosecution is part of the Department of Justice’s ongoing effort to ensure honesty and integrity for the members of our union community.”
The applicable total maximum statutory penalty for this crime is 5 years imprisonment, a $10,000 fine, and 3 years of supervised release and restitution.
Investigation of this case was conducted by the U.S. Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Toby W. Lathan and Special Assistant United States Attorney Tamika G. Moses are representing the government in this case.
Tahlequah Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jack Dewayne Neugin, age 50, of Tahlequah, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about April 27, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Cherokee Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Statement of U.S. Attorney Kennedy Regarding Verdict in U.S. v. Corey KrugRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051“The defendant, like every person on the street, is guaranteed certain rights under our Constitution. Among those rights are the rights to due process and a fair trial. The defendant exercised his constitutional rights and the jury acquitted him on three counts. That is the way our Constitution and our system of justice are supposed to work. We accept the jury’s verdict, and we will be seeking an immediate retrial of the defendant on Count 4 of the Superseding Indictment.”
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South Lake Tahoe Man Sentenced to Prison for Destruction of Archaeological SitesRead the Press Release
SACRAMENTO, Calif. — Timothy Brian Harrison, 50, of South Lake Tahoe, was sentenced today by United States District Judge John A. Mendez to one year and one day in prison and ordered to pay $113,000 in restitution for two counts of excavation and removal of archaeological resources from public lands and one misdemeanor count of unlawful possession of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Harrison conducted illegal digging at prehistoric Native American archaeological sites on federal lands in Alpine and El Dorado Counties, near Lake Tahoe. He collected tens of thousands of ancient artifacts from multiple archaeological sites, and virtually destroyed two very significant archaeological sites. Archaeologists explained that Harrison’s conduct led to the irreplaceable loss of unique historical information. Archaeologists learn the cultural history of the prior inhabitants from artifacts left behind by the inhabitants by carefully documenting where the artifacts are found, and looting of the artifacts destroys that context.
Representatives of the Washoe Tribe of California and Nevada spoke about the impact on the tribe from this destruction of sites. They explained that Harrison’s digging erased their past and interfered with the tribe’s ability to teach younger generations about their history and culture.
This case was the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, the National Park Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, California State Fish & Wildlife Service, California Highway Patrol, and Alpine County Sheriff’s Department. Assistant U.S. Attorneys Samuel Wong, Christopher S. Hales, and Miriam R. Hinman prosecuted the case.
Harrison is out of custody and was ordered to self-surrender to begin serving his sentence on April 23, 2019.
San Jose Resident Sentenced to More Than 13 Years in Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
SAN JOSE – Tuan Ngoc Nguyen was sentenced today to 160 months in prison for his role in a conspiracy to distribute methamphetamine, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Beth Labson Freeman, United States District Judge.
Nguyen, 51, of San Jose, pleaded guilty to the charge on February 6, 2018. At his change of plea hearing, Nguyen admitted that between February 10 and February 17 of 2017, he conspired with others to sell a pound of methamphetamine to a confidential informant working for the DEA. The purchased substance was later tested and contained approximately 430.5 grams of 100% pure “crystal meth” (d-methamphetamine hydrochloride). On October 19, 2017, a federal grand jury returned a second superseding indictment charging Nguyen with one count of conspiracy to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841, and one count of distribution of methamphetamine, in violation of 21 U.S.C. § 841. Nguyen pleaded guilty to both counts.
In addition to the prison term, Judge Freeman sentenced the defendant to a five-year period of supervised release. Nguyen has been in custody since his arrest and will begin serving his sentence immediately.
Nguyen’s co-defendants Julio Camacho Pacheco and Quang Phuong Huynh pleaded guilty to their respective roles is the conspiracy on April 3, 2018, and September 4, 2018, respectively. On July 17, 2018, Judge Freeman sentenced Pacheco to 140 months in prison, to be followed by 5 years of supervised release. On December 11, 2018, Judge Freeman sentenced Huynh to 120 months in prison to be followed by 5 years of supervised release.
Assistant U.S. Attorney Marissa Harris prosecuted the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the DEA.
Sacramento Man Pleads Guilty to Selling Unapproved Drugs on the InternetRead the Press Release
SACRAMENTO, Calif. — Scott Edward Cavell, 35, of Sacramento, pleaded guilty today to one count of causing misbranded drugs to be introduced into interstate commerce, U.S. Attorney McGregor W. Scott announced.
According to court documents, between 2015 and 2017, Cavell, with others, developed a scheme to market and sell a drug, 2,4-Dinitrophenol (also known as DNP), as a weight loss drug and “fat burner” despite knowing that DNP is unapproved by the FDA as a substance for human consumption. Cavell sold DNP in pill form and called it a fertilizer — a term under which is it legally sold in other circumstances.
DNP has been commercially used to manufacture dyes and wood preservatives, as a fertilizer, and as a pesticide. The U.S. Food and Drug Administration has declared that DNP is too toxic to be used for human consumption under any circumstances.
This case is the product of an investigation by the U.S. Food and Drug Administration Office of Criminal Investigations, Drug Enforcement Administration, Homeland Security Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Paul Hemesath is prosecuting the case.
Cavell is scheduled to be sentenced on June 4, 2019, by U.S. District Judge John A. Mendez. Cavell faces a maximum statutory penalty of three years in prison and a $10,000 fine. The actual sentence, however, will 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.
Red Lake Man Charged with First Degree MurderRead the Press Release
United States Attorney Erica H. MacDonald today announced an indictment charging JEREMIAH KINGBIRD, 38, with first and second degree murder.[1] KINGBIRD made his initial appearance yesterday before Magistrate Judge Jon T. Huseby in U.S. District Court in Bemidji, Minnesota.
According to the indictment and documents filed in court, on January 6, 2019, law enforcement responded to a call from a woman who said that an unknown male had stopped at her house and said that he had found his wife on Old Ponemah Road and that she had been there all night. Responding officers found the victim, KINGBIRD’S wife, lying face down in the snow; she had severe physical injuries, and was having difficulty breathing. The victim was transported to the Red Lake IHS Hospital where hospital staff were unsuccessful in reviving her.
According to the indictment and documents filed in court, during a search of KINGBIRD’S vehicle, law enforcement observed blood on the front passenger window of the vehicle. KINGBIRD admitted to physically assaulting his wife and leaving her outside in the elements following a night of drinking in Bemidji.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
This case is being prosecuted by Special Assistant U.S. Attorney Gina L. Allery and Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
JEREMIAH KINGBIRD, 38
Ponemah, Minn.
Charges:
- Murder in the first degree, 1 count
- Murder in the second degree, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rapid City Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rudolph Engel, age 63, was sentenced on February 25, 2019, to 10 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Engel was indicted for the charge by a federal grand jury on September 17, 2017. The conviction stems from Engel conspiring with others in receiving at least 500 grams of methamphetamine from California and Colorado, and then distributing it in the District of South Dakota between 2016 and 2017.
This case was investigated by the Unified Narcotics Enforcement Team, the Department of Homeland Security Investigations, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Engel was immediately turned over to the custody of the U.S. Marshals Service.
Prison Guard Sentenced for Sexual Relationship with InmateRead the Press Release
A federal corrections officer was sentenced yesterday to more than a year behind bars – the same environment where she took advantage of a prison inmate less than two years ago.
Erica McCoy, 32, pleaded guilty in August to abusive sexual contact with an inmate at FCI Seagoville, an all-male, low-security institution southeast of Dallas .
In plea papers, Ms. McCoy said she stumbled upon the inmate – identified only by his initials, D.E. – cleaning her office carpet in the summer of 2017. They had regular sexual contact, Ms. McCoy admitted.
Their relationship ended when D.E. was placed into the Special Housing Unit (SHU) and Ms. McCoy resigned amid an investigation by the Department of Justice Office of the Inspector General.
“Today’s sentence demonstrates that corruption and abuse of power have no place in our federal prisons and will not be tolerated,” stated Deputy Assistant Inspector General for Investigations Elise Chawaga. “Our office takes allegations of sexual contact between correctional officers and inmates seriously, and we thank the U.S. Attorney’s Office for the Northern District of Texas for their hard work on this case.”
A federal judge sentenced Ms. McCoy to one year and one day in federal prison and ordered her to self-surrender within 90 days. She will also be required to register as a sex offender.
The Department of Justice – Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
Pittsfield Man Pleads Guilty to Conspiracy to Violate Firearms LawsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ethan Rumery, 24, of Pittsfield, Maine, pled guilty yesterday in U.S. District Court to conspiring to violate federal firearms laws.
According to court records, between February 2015 and September 2016, Rumery conspired with others to fraudulently obtain firearms from federally licensed dealers. When buying the firearms, Rumery and his conspirators falsely reported that they were the actual purchasers of the firearms, when, in fact, the firearms were purchased for individuals residing outside of Maine.
Rumery faces up to 5 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Massachusetts State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as prosecuted 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.
Pastor Sentenced to Prison for Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria pastor was sentenced today to 8 years in prison for a $2 million fraud scheme that victimized members of his congregation, clergymen, and prospective investors in a Nigerian oil scheme.
“Millender preyed upon the religious beliefs and charitable desires of more than two dozen victims and has demonstrated little to no remorse for his actions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His rampant fraud scheme has exacted a heavy emotional, spiritual and financial toll on his victims, and today’s sentence reflects the seriousness of his crime. My thanks to the trial team and our investigative partners for their terrific work on this righteous case.”
According to court documents and trial testimony, Terry Wayne Millender, 54, the former senior pastor of Victorious Life Church in Alexandria, operated Micro-Enterprise Management Group (MEMG), a Virginia company that alleged to help poor people in developing countries by providing small, short-term loans to start or expand existing businesses by working with a network of established micro-finance institutions. Terry Millender served as chief executive officer of MEMG. Millender and his co-conspirators recruited investors, many of whom invested their retirement funds in a shell company called Equity Trust that investors were falsely led to believe was a third party entity. To recruit investors, Terry Millender emphasized MEMG’s Christian mission and use of the funds to help the poor, promising guaranteed rates of return, assuring investors that the loans’ principal was safe and backed by the assets of MEMG. Instead, the money Millender obtained from investors was used to conduct risky trading on the foreign exchange currency market and options trading, to make payments towards the purchase of a $1.75 million residence for Terry Millender and his wife, to purchase lavish furnishings for their home, and on other personal expenses. To conceal how they had actually used the money, Millender falsely assured investors that they would get their money back and blamed delays in repaying investors on the 2008 financial crisis, among other things.
After MEMG failed, Terry Millender created another entity called Kingdom Commodities Unlimited (KCU), which purportedly specialized in the brokering of Nigerian oil deals. Multiple victims entered into loan agreements with Millender, totaling over $450,000. Like MEMG, the KCU agreements lured prospective investors into giving the Millenders money by promising high rates of return and short term loans. The Millenders used the KCU lenders’ money to pay for their rent and golf trips, as well as a birthday party and other personal expenses.
Millender also failed to disclose any of the income he received from the MEMG and KCU fraud schemes on his income taxes. He was ordered to pay more than $2 million in restitution. This investigation was initiated after a victim of the MEMG scheme contacted authorities, including the Virginia State Corporation Commission.
“The fraudulent solicitation of investments through the US Mail not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Peter Rendina, U.S. Postal Inspection Service - Washington Division. “With our partner law enforcement agencies, Postal Inspectors will continue to aggressively investigate these crimes and continue to ensure our customers’ trust in the United States Postal Service.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Jamar K. Walker, Kimberly R. Pedersen, and Katherine L. Wong prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-239.
Owner of Construction Company and Three Others Charged with Disaster Fraud and Identity Theft in the United States Virgin IslandsRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that charges have been unsealed against Juli Campbell and three others for fraud related to the Federal Emergency Management Agency’s (FEMA’s) Sheltering and Temporary Essential Power (STEP) Program.
The STEP Program provides federal funds for essential repairs to homes damaged by Hurricanes Irma and Maria. According to the Indictment returned by the Grand Jury in the case, Campbell operated Campbell Development, LLC, which was a subcontractor performing STEP-funded work in St. Croix, VI. Campbell and her co-defendants are alleged to have executed a scheme whereby they submitted fraudulent invoices related to a STEP-funded subcontract, even including on such invoices the names of workers who were not actually on the island.
"The Department of Justice is committed to ensuring that federal dollars are used for their intended purposes," said U.S. Attorney Shappert. "The United States Attorney’s Office for the Virgin Islands is especially committed to making certain that federal funds intended for the victims of natural disasters are accounted for and used consistent with FEMA’s directives."
"The DHS OIG takes any and all allegations of fraudulent activity seriously and intends to hold accountable those who try to use natural disasters such as Hurricane Maria to take advantage of others," said Special Agent in Charge Jay H. Donly of the DHS OIG Miami Field Office. "The DHS OIG will continue to use its investigative resources to stop those who use these circumstances for personal and illegal gain."
This case is being investigated by the Department of Homeland Security – Office of the Inspector General as well as Homeland Security Investigations, with support from Customs and Border Protection, Air and Marine Operations. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
Ohio Man Charged with Traveling to Pennsylvania for Sex with a MinoRead the Press Release
PITTSBURGH – An Ohio resident has been indicted by a federal grand jury in Pittsburgh on a charge of traveling with intent to engage in illicit sexual conduct, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 19 and unsealed on February 22, named Jeffrey Judd, 60, Vienna, Ohio, as the sole defendant.
According to the indictment, Judd, on June 1, 2017, knowingly traveled in interstate commerce from Vienna, Ohio, to Hermitage, Pennsylvania, for the purpose of engaging in sexual acts with a minor.
The law provides for a maximum total sentence of 30 years in prison, a fine of $250,000, 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 Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Hermitage Police Department conducted the investigation leading to the indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ocean County Man Sentenced to 70 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Toms River man was sentenced today to 70 months in prison for distributing images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced.
David Nelson, 44, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
As a result of an investigation conducted by the FBI Louisville, Kentucky, field office, law enforcement officers arrested an individual after he offered to broadcast the sexual abuse of his daughter over Kik Messenger to an undercover officer. A search of his cell phone revealed chat group communications between that individual and another Kik user operating under the user name “candicesloan1995,” which was later revealed to be Nelson. Nelson was arrested April 9, 2018.
Nelson admitted today that between Oct. 24, 2017 and Oct. 26, 2017, he used his Kik account under the user name “candicesloan1995” to transmit at least 26 images of child pornography to another Kik user. Nelson also admitted that he was an administrator of multiple Kik chat rooms in which child pornography was shared and discussed.
In addition to the prison term, Judge Wolfson sentenced Nelson to five years of supervised release.
U.S. Attorney Carpenito credited FBI special agents of the Franklin Township Resident Agency, under the direction of Special Agent in Charge Gregory Ehrie in Newark, FBI special agents under the direction of Special Agent in Charge Amy S. Hess in Louisville, and FBI special agents under the direction of Special Agent in Charge Timothy Slater in Detroit, with the investigation leading to today’s sentencing. He also thanked the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for its assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
Notice of Court ProceedingsRead the Press Release
COLUMBIA, SOUTH CAROLINA -- United States Attorney Sherri A. Lydon stated today that a Pre-Trial Conference has been scheduled in the case of United States v. Daniel Edward Johnson, Case No. 3:18-863. A plea agreement has been filed. Senior United States District Court Judge Cameron McGowan Currie will preside.
WHEN: Tuesday, February 26, 2019, at 2 p.m.
WHERE: Matthew J. Perry Courthouse
901 Richland Street, Courtroom # 1, Columbia, SC
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Muskogee Man Pleads Guilty to Methamphetamine Distribution and Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gatlin Gary Morgan, age 37, of Muskogee, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A, punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00, or both; and to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about October 8, 2018, within the Eastern District of Oklahoma, defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleges that on or about October 8, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Monongalia County woman admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Katina Sabatino, of Morgantown, West Virginia, has admitted to her role in a drug distribution operation, United States Attorney Bill Powell announced.
Sabatino, age 25, pled guilty to one count of “Unlawful Use of Communication Device.” Sabatino admitted to using a phone to assist with distributing controlled substances in April 2018 in Monongalia County.
Sabatino faces up to four years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mission Man Charged with Being a Felon in Possession of AmmunitionRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for the crime of Possession of Ammunition by a Felon.
Aaron Santistevan, age 43, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 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 28, 2018, Santistevan, having been previously convicted of a crime punishable by imprisonment for more than one year, possessed 40 rounds of copper-jacketed hollow point .50 Action Express caliber handgun ammunition.
The charge is merely an accusation and Santistevan is presumed innocent until and unless proven guilty.
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 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 investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Santistevan was released on conditions pending trial. A trial date has not been set.
Milwaukee Man Sentenced to 10 Years in Prison for Attempted Robbery of WalgreensRead the Press Release
United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge Lynn Adelman sentenced Lamont Walker to 10 years in prison followed by three years of supervised release after Walker pled guilty to attempting to rob a Walgreens store and brandishing a gun during the attempted robbery.
At his plea hearing, Walker admitted that he attempted to rob the Walgreens store located at 2826 North Dr. Martin Luther King Drive, Milwaukee, on August 22, 2018. He further admitted that he brandished a loaded 9mm handgun after entering the Walgreens. Walker fled the store without having obtained any money or other property and was involved in a foot chase with police officers, during which he threw the handgun onto the roof of Pete’s Fruit Market. Officers recovered the firearm. Walker was on state supervision at the time he committed the attempted robbery and faces revocation.
Walker’s sentence includes a 7-year mandatory minimum sentence on the charge of brandishing a firearm during a crime of violence. This sentence must run consecutive to any other sentence, including a state revocation sentence.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorney Margaret B. Honrath.
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For additional information contact:
Public Information Officer Kenneth Gales (414) 297-1700
Mililani Man Sentenced to 20 Months in Prison for Social Security FraudRead the Press Release
HONOLULU – Gregory Scher, 66, of Mililani, Hawaii, was sentenced yesterday to 20 months of imprisonment for defrauding the Social Security Administration. As part of his sentence, Scher was also ordered to pay $26,298.12 in restitution and a $100 assessment, and to serve 3 years of supervised release.
U.S. Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, Scher admitted that he failed to disclose material information about his income and work, and lied about being legally blind, in order to receive and maintain Social Security Disability Insurance benefit payments. Scher also failed to disclose his employment while receiving Social Security Retirement Insurance benefits, and converted Social Security Child’s Insurance benefits intended for his minor daughter to his own personal use. Many of Scher’s lies and omissions occurred while he was on pretrial or supervised release for his federal Passport Fraud conviction.
At Scher’s sentencing, U.S. District Judge Susan Oki Mollway remarked that her sentence sends a “strong and clear message” that Scher’s “extensive networks of untruths and wrongful actions” must stop. She told Scher that she observed a “pervasive attitude that you could do whatever actions to get whatever benefits you wanted.”
The case was investigated by the Special Agent Robert Rodriguez with Office of Investigations - Office of Inspector General for the Social Security Administration, and prosecuted by Assistant U.S. Attorneys Darren W.K. Ching and Sara Ayabe.
Mexican Man Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that BENITO ORBE-SANTANA, age 43, a native of Mexico, pleaded guilty Thursday, February 21, 2019 to a one-count indictment, which charged him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, ORBE-SANTANA was previously removed from the United States on July 9, 2008. He was later found in the Eastern District of Louisiana on December 10, 2018 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter. According to documents filed in court, ORBE-SANTANA, was arrested in Tangipahoa Parish for DWI in December 2018.
ORBE-SANTANA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. His sentencing is set for March 14, 2019.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Mexican Man Charged with Being Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ANTONIO OSORIO DIAZ, age 41, a native of Mexico, was charged Thursday, February 21, 2019 in a one-count indictment with illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).
According to the indictment, DIAZ was an illegal alien in possession of a firearm on February 3, 2019 who was found in the Eastern District of Louisiana. He is an illegal alien from Mexico and has never been previously deported. The indictment alleges he illegally possessed a Ruger. 45 caliber semi-automatic pistol.
If convicted, DIAZ faces a maximum term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release and a $100.00 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Medford Woman Sentenced for Social Security, Medicare, MassHealth and SNAP Benefit FraudRead the Press Release
BOSTON – A Medford woman was sentenced yesterday in federal court in Boston for fraudulently receiving Social Security disability benefits, Medicare, MassHealth and Supplemental Nutrition Assistance Program (SNAP) benefits.
Stephanie DiPierro, 39, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison, three years of supervised release, and ordered to pay $108,288 in restitution. In November 2018, DiPierro pleaded guilty to three counts of theft of public funds, two counts of making false statements, and one count of falsely representing a Social Security number. In November 2017, DiPierro was arrested, charged and released on conditions.
From October 2007 through May 2017, DiPierro stole $73,288 in Social Security benefits, $8,455 in Medicare benefits, $8,615 in MassHealth benefits and $17,929 in SNAP benefits. In September 2015, she falsely informed the Massachusetts Department of Transitional Assistance that she did not have any income other than her Social Security benefits when, in fact, she was receiving income as a result of her work as a personal care attendant. DiPierro falsely told Social Security in March 2016, while she was working as a personal care attendant, that she did not take care of any other individual. DiPierro also falsely represented her Social Security number on a time sheet submitted in connection with her work as a personal care attendant.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
McCurtain Co Man Pleads Guilty to Possession of Contraband in PrisonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nickey Lynn Anderson, age 36, of McCurtain County, Oklahoma, entered a guilty plea to Possessing Contraband In Prison, in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(3) and 1791(d)(1)(B), punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both; and to Possessing Contraband In Prison (Misdemeanor), in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(4) and 1791(d)(1)(F), punishable by not more than 1 year imprisonment, a fine up to $1000,000.00, or both.
The Indictment alleges that on or about October 16, 2018, in the Eastern District of Oklahoma, the Defendant, an inmate of a prison as defined in Title 18, United States Code, Section 1791(d)(4), did knowingly possess a prohibited object, to-wit: a long piece of metal sharpened to a fine point on one end, with cloth wrapped around the opposite end to form a handle, designed and intended to be used as a weapon.
The Indictment further alleges that on or about October 16, 2018, in the Eastern District of Oklahoma, the Defendant, an inmate of a prison as defined in Title 18, United States Code, Section 1791(d)(4), did knowingly possess a prohibited object, to-wit: a cellular telephone.
The charges arose from an investigation by the U.S. Marshals Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Heatherman represented the United States.
Maryland Man Sentenced to 15 Years in Prison for Committing Armed Carjacking in Morning Rush HourRead the Press Release
WASHINGTON – Kevin Hammond, 26, of Suitland, Md., was sentenced today to 15 years in prison for an armed carjacking in the Ivy City neighborhood of Northeast Washington in which he pistol-whipped the victim so violently that the gun broke into two pieces. He then fled from police before being captured a short time later at a construction site.
The announcement was made by U.S. Attorney Jessie K. Liu, Special Agent in Charge Rob Cekada of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Henry P. Stawinski III, Chief of the Prince George’s County, Md. Police Department.
Hammond pled guilty on Sept. 24, 2018, in the U.S. District Court of the District of Columbia, to one count of federal carjacking, one count of the federal offense of brandishing a firearm during a crime of violence, and one count of the federal offense of interstate transportation of a stolen motor vehicle. He also pled guilty to assault with a dangerous weapon, and leaving the scene of an accident with personal injury, both District of Columbia offenses.
He was sentenced today by the Honorable James E. Boasberg. Following completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, at about 6 a.m. on Monday, Aug. 14, 2017, Hammond brandished a firearm and stole a van from a handyman who was getting ready for work in New Carrollton, in Prince George’s County, Md. Hammond then drove the van into Washington, D.C. and to the Ivy City neighborhood of Northeast Washington.
The van was equipped with a GPS system, and officers with the Prince George’s County Police Department and MPD were able to track and locate the vehicle. At about 7 a.m., as officers tried to stop the stolen vehicle that Hammond was driving, he fled the van and ran, jumping over a fence and running down an alleyway. Hammond then encountered another man in the 1900 block of Fairview Street NE who was parking his car to go to work. Hammond brandished a firearm to carjack this man’s vehicle. After grabbing the keys, Hammond pistol-whipped the man, striking him repeatedly in the face and head with the firearm, until the gun broke into two pieces. He then drove the stolen car down New York Avenue NE in rush-hour traffic with the police in pursuit; finally, he crashed into another car and fled on foot. Hammond was apprehended a short distance away, hiding in a construction site near Fourth Street and New York Avenue NE. He has remained in custody since his arrest.
Hammond still faces charges in Prince George’s County, and he is presumed innocent of those charges until, and unless, proven guilty.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Cekada, Chief Newsham, and Chief Stawinski commended the work of the detectives and patrol officers of the Metropolitan Police Department’s Fifth District, the officers of the Prince George’s County Police Department, the crime scene officers from the District of Columbia Department of Forensic Sciences, and agents and DNA lab personnel from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Monica Trigoso, Paralegal Specialists Jeannette Litz and Kate Abrey, Victim/Witness Advocate Yvonne Bryant, and Victim/Witness Services Coordinator Tonya Jones. Finally, they commended the work of Assistant U.S. Attorneys Dineen A. Baker and Anthony Scarpelli, who investigated and prosecuted the case.
Marion County man and Harrison County man admit to roles in methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stephen Richards, of Fairmont, West Virginia, and Nathan Crites, of Clarksburg, West Virginia, have admitted to their roles in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Richards, age 40, pled guilty to one count of “Unlawful Possession of a Firearm.” Richards, having previously been convicted of a felony, admitted to having a 9mm pistol and a 30-caliber bolt-action rifle in December 2017 in Harrison County.Crites, age 34, pled guilty to one count of “Distribution of Methamphetamine.” Crites admitted to selling methamphetamine in April 2018 in Harrison County.
Richards faces up to 10 years incarceration and a fine of up to $250,000. Crites faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Man Sentenced to Prison for Distributing over 50 Kilos of MarijuanaRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to three years in prison for his involvement in a conspiracy to distribute 50 kilograms or more of marijuana from California to Virginia and his involvement in laundering the marijuana proceeds.
According to court documents, Jamel Stokes, 26, was involved with several co-conspirators in trafficking large quantities of marijuana from California to Virginia. Stokes would receive the shipments of marijuana from California at two Virginia Beach addresses, and then break down the shipments into smaller packages for further distribution in the Hampton Roads area. Stokes also participated in laundering the proceeds from the sale of the marijuana shipments by depositing proceeds into various bank accounts in Virginia, and on the same day someone in California would withdraw the money from those same accounts.
Stokes also participated in secreting money in boxes and shipping them to California. Stokes was apprehended when a large shipment of marijuana was interdicted at the post office. A delivery of the parcel was made to the address on the shipping label. When a co-conspirator picked the box up, he was arrested and told law enforcement that Stokes had been paying him to pick up boxes full of marijuana and to deliver them to various addresses.
Between the two Virginia Beach addresses Stokes used to take delivery of marijuana, a total of 47 parcels were delivered from Northern California with a total weight of 50 kilograms or more but less than 100 kilograms of marijuana.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorneys William D. Muhr and Kevin Hudson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-146.
Man Selling Fentanyl-Laced Drugs Pleads Guilty in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Jeffery Jermaine Joe, age 42, of Camden, South Carolina, pleaded guilty to possession with intent to distribute heroin, cocaine, and crack cocaine. Senior United States District Judge Joseph F. Anderson accepted Joe’s guilty plea and will sentence him after receiving and reviewing a presentencing report prepared by the United States Probation Office.
According to facts summarized by the Government at Joe’s guilty plea hearing, Joe was caught in a traffic stop with the illicit drugs and was subsequently captured on video selling pills laced with fentanyl. Joe was also charged for possession of a firearm that was discovered in the same room where he sold the fentanyl-laced pills. Federal law prohibits Joe from possessing a firearm based on prior convictions for distribution of crack cocaine; possession with intent to distribute crack cocaine 2nd; trafficking crack cocaine 2nd; distribution crack cocaine; and possession with intent to distribute marijuana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kershaw County Sheriff’s Office. It is being prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation 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. This case is being handled by Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office.
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Los Angeles Man Found Guilty on All Counts in Nationwide Credit Card Fraud Scheme with Links to Sacramento and MoscowRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a jury found Ruslan Kirilyuk, 41, of Beverly Hills, guilty on Tuesday of 24 counts of wire fraud, two counts of mail fraud, and one count each of aggravated identity theft and failure to appear, all arising out of his involvement in a nationwide credit card fraud scheme, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between approximately October 5, 2011, and March 5, 2014, Kirilyuk conspired with Mihran Melkonyan, 38, of Sacramento; Rouslan Akhmerov, 42, of Studio City; Alexandr Maslov, 38, of Sacramento, and others in a credit card billing scheme that involved creating approximately 71 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District in Sacramento. Those report cards had students’ personal identifying information on them such as names and social security numbers. Using that information, Kirilyuk and his associates created fraudulent companies with names designed to sound like real companies, such as “CVS Store,” “Walt Mart,” and “Chevran.”
Working with a hacker based in Moscow, they used those fraudulent companies to charge stolen American Express credit card account numbers. In order to transfer the stolen money, they used shell bank accounts held in the names of individuals whose identities had been stolen and former Russian J-1 visa holders. According to court documents, Kirilyuk has a history of corporate cyberintrusion dating back to at least 2003.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael D. Anderson and Matthew M. Yelovich are prosecuting the case.
Kirilyuk is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on May 17, 2019. Kirilyuk faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each wire and mail fraud count, a mandatory two-year consecutive sentence for the aggravated identity theft count, and up to 10 years in prison and a $250,000 fine for the failure to appear charge. The actual sentence, however, will 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.
In an earlier trial, on February 15, 2017, Melkonyan was found guilty of all 24 counts of wire fraud and two counts of mail fraud charged against him related to the scheme. He was sentenced on January 4, 2019, to 19 years and two months in prison.
On December 15, 2014, Akhmerov pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on March 29, 2019.
Maslov failed to appear at an earlier court appearance and a bench warrant has been issued for his arrest. Anyone with information about his whereabouts should contact the Federal Bureau of Investigation at (916) 746-7000. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Knoxville Resident Pleads Guilty to Wire FraudRead the Press Release
KNOXVILLE, Tenn. – Melissa Eula May, 44, of Knoxville, Tennessee, pleaded guilty on February 25, 2019, to an information charging her with wire fraud. Sentencing has been set for 10:00 a.m., July 18, 2019, in United States District Court in Knoxville.
In conjunction with her guilty plea, May, a former employee of the Oliver Spring Housing Authority, admitted to using credit cards issued by her employer for her own personal expenditures. She further admitted that from January 2015 through April 2017, she made fraudulent transactions totaling $149,440.02.
May faces a potential punishment of up to 20 years in prison, forfeiture of all assets illicitly purchased, and the obligation to pay restitution to the Oliver Springs Housing Authority.
This conviction was the result of an investigation by the U.S. Department of Housing and Urban Development, Office of Inspector General; Tennessee Department of Revenue; and, Oliver Springs Police Department. Assistant U.S. Attorney Frank M. Dale, Jr., represented the United States.
Justice Department Repatriates Forfeited Funds to the Government of the Kyrgyz RepublicRead the Press Release
The U.S. Department of Justice repatriated stolen assets to the Government of the Kyrgyz Republic arising from the corruption and theft of government funds by the prior regime of Kurmanbek Bakiyev and his son Maxim Bakiyev. The return of the funds was celebrated yesterday in a ceremony in Bishkek, Kyrgyz Republic attended by Ambassador Alice G. Wells, the head of the Bureau of South and Central Asian Affairs for the Department of State and U.S. Ambassador to the Kyrgyz Republic, Donald Lu.
These funds were identified in the United States in the criminal prosecution of Eugene Gourevitch for insider trading in the U.S. District Court for the Eastern District of New York and a $6 million forfeiture order was subsequently entered by the Court. Following the conviction in the prosecution led by the U.S. Attorney’s Office for the Eastern District of New York, the Kyrgyz Government filed a Petition for Remission with the U.S. Department of Justice, Money Laundering and Asset Recovery Section, claiming that the funds subject to the forfeiture order traced back to monies stolen by Maxim Bakiyev from Kyrgyz state authorities and other banking institutions. On Oct. 4, 2018, the Department of Justice granted the Remission Petition.
So far, approximately $4.5 million of the funds have been collected and are approved for repatriation of the $6 million ordered to be forfeited will be repatriated. These funds will be deposited in the account of the Government of the Kyrgyz Republic (“current account of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic in the National Bank of the Kyrgyz Republic”). MLARS attorneys working in the Kleptocracy Asset Recovery Initiative assisted in the investigation linking these funds to the corruption offenses in Kyrgyztan. Additional efforts will be made by the U.S. Government and the Government of the Kyrgyz Republic to try to locate and return the remainder of the stolen assets in the forfeiture order.
In a joint statement by the Kyrgyz Republic and the U.S. State Department issued today, the Government of the Kyrgyz Republic confirms that the repatriated assets will be used for the benefit of the Kyrgyz people, with a focus on social projects and anti-corruption and transparency. These include:
- Improving public access of the rural population to the healthcare system by buying and installing medical equipment (X-ray, diagnostics equipment, etc.) for regional hospitals to deliver better medical services to the rural area population;
- Construction of water supply facilities in order to expand access to clean drinking water for the rural population through upgrades of drinking water systems and expansion of the scope of ongoing construction of large-scale water supply facilities (water pipes, water pumps, water purification facilities) currently under way with financial support of the World Bank and other International Financial Institutions; and
- Strengthening Kyrgyz institutions responsible for anti-corruption programs and promoting the transparency of court proceedings and financial integrity of state organs, including the purchase and installation of audio and video equipment for projects in district courthouses to increase transparency and public control in the justice sector.
Minister of Finance for the Kyrgyz Republic Baktygul Jeenbaeva who assisted in the investigation of the source of the funds will be the point of contact for questions about the use of these funds. During the repatriation ceremony, Minister Jaanbaeva said, “We are grateful for the United States of America’s support for the Kyrgyz leadership’s efforts to fight corruption. I would like to emphasize the fact that these funds were stolen from the people, and now with the help of our American colleagues, we are returning them through a legal process. We appreciate the joint efforts together with Government of the United States of America and their assistance on this issue and express our hope for further cooperation with the U.S. government.”
U.S. Ambassador Alice G. Wells remarks are posted at: https://kg.usembassy.gov/senior-bureau-official-alice-g-wells-remarks-on-repatriation-of-stolen-assets-to-the-kyrgyz-republic/.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
- Improving public access of the rural population to the healthcare system by buying and installing medical equipment (X-ray, diagnostics equipment, etc.) for regional hospitals to deliver better medical services to the rural area population;
Justice Department Reaches Agreement with Concord, New Hampshire, to Ensure Accessible Voting Machines in City Elections for Voters with DisabilitiesRead the Press Release
The Justice Department today reached an agreement with the city of Concord, New Hampshire, to resolve a complaint alleging that the city violated Title II of the Americans with Disabilities Act (ADA) by failing to provide an accessible ballot to a voter who is blind.
Under the agreement, the city of Concord will provide voting machines that are accessible to voters who are blind or visually impaired. The city will have the accessible machines at its polling places starting in the November 2019 city election. In addition, the city will provide training to poll workers on the use of the accessible voting machines and will develop educational materials regarding the availability of the machines in city elections.
“Through this settlement, the city of Concord will ensure that voting in city elections is accessible to voters who are blind or visually impaired,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend the city’s commitment to guaranteeing that voters with disabilities have equal access to voting.”
This settlement is part of the Department of Justice’s ADA Voting Initiative, which protects the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to ensure accessibility to both polling places and the ballot.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Juneau Man Sentenced for Role in Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Juneau man has been sentenced to federal prison for his role in a drug trafficking conspiracy to transport heroin and methamphetamine from the lower 48 to Alaska for distribution.
Bryan O’Neil Yambao Arce, 40, of Juneau, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve 54 months in prison, followed by five years of supervised release. In December 2018, Arce pleaded guilty to one count of drug conspiracy.
Arce became the subject of an investigation in June 2015, when the Juneau Drug Enforcement Unit (JDEU) began receiving tips that Arce was importing drugs into Juneau. The investigation revealed that, in order to elude law enforcement, Arce utilized a false identification while travelling to Juneau on commercial aircraft, and carried heroin and methamphetamine on his person for subsequent distribution in Juneau. Arce also collected drug proceeds from co-conspirators while in Juneau to pay for drugs previously supplied during the course of the conspiracy. After collecting the drug proceeds, Arce shipped the proceeds to himself using air cargo services. In total, Arce sent 32 packages in this manner.
During the course of the conspiracy, Arce’s fraudulent ID and $3,946 was found in a local store, which was related to a prior delivery of 50 grams of methamphetamine. Further, in December 2015, Arce shipped a package containing at least two ounces of methamphetamine from California to a co-conspirator’s residence in Juneau. Co-conspirators utilized money remittance services, air cargo, and other shipping services to send drug proceeds for payment of methamphetamine and heroin sent by Arce. In April 2017, Arce travelled to Juneau from the lower 48, and was contacted by law enforcement. A search of Arce’s luggage revealed 202 grams of methamphetamine intended for subsequent distribution in Juneau.
According to court documents, Arce’s social media page had hundreds of pages of communications with individuals related to drug trafficking and distribution. Arce advised co-conspirators on how to distribute narcotics and how to collect drug proceeds, and even joked about overdoses in the community and wondered aloud if he might be responsible. During the course of this investigation, Arce is responsible for approximately four ounces of a mixture and substance and 202 grams of actual methamphetamine.
The Juneau Police Department (JPD) and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Jacksonville Man Sentenced to Fifteen Years as Armed Career Criminal for Illegally Possessing FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey Lee Adams today sentenced Sean Justin Owens (35, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. A federal jury found Owens guilty on November 15, 2018. Due to his prior multiple felony convictions, he qualified for an increased penalty under the Armed Career Criminal Act.
According to testimony presented at trial, Owens was found in possession of a firearm after officers from the Jacksonville Sheriff’s Office (JSO) investigated his illegally parked vehicle. As the officers approached the vehicle, Owens quickly left the car and headed toward a nearby residence. When the officers checked the vehicle’s tag, it was not associated with any vehicle. As one of the officers tried to obtain the Vehicle Identification Number (VIN), he saw a firearm on the front console. Owens’s driver license was inside his vehicle, confirming his identity. In addition, an occupant of the home Owens had entered after leaving the vehicle confirmed that the vehicle belonged to Owens.
At the time of this incident, Owens had multiple prior felony convictions, including three convictions for sale or delivery of cocaine, and therefore, was prohibited from possessing firearms under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
ISIS Supporter Sentenced to Almost 16 Years for Attempting to Provide Material Support to Foreign Terrorist Organization and Identity TheftRead the Press Release
Amer Sinan Alhaggagi was sentenced today to 188 months for attempting to provide material support to a designated foreign terrorist organization and identity theft charges. Assistant Attorney General John C. Demers of the National Security Division, United States Attorney David L. Anderson for the Northern District of California and FBI Special Agent in Charge John F. Bennett of the San Francisco Field Office made the announcement. The sentence was handed down by the Honorable Charles R. Breyer, Senior U.S. District Judge.
“Alhaggagi wanted to carry out deadly terrorist attacks in the United States in the name of ISIS,” said Assistant Attorney General Demers. “Today’s sentencing shows the dedication of the National Security Division and our partners to hold accountable those who seek to provide material support to foreign terrorist organizations and to conduct violence on their behalf. I commend the work of the agents, analysts, and prosecutors who are responsible for this case.”
“The highest priority of our counter-terrorism efforts is to prevent acts of violence before they occur,” said U.S. Attorney Anderson. “Amer Alhaggagi hoped and intended to carry out acts of great cruelty in order to sow terror in our community. Through the combined efforts of local and federal law enforcement, Alhaggagi was identified, apprehended, and prosecuted before he was able to commit the violence he schemed to commit. This prosecution stands as an example of how homegrown extremists who seek to sow fear and panic into our communities can be stopped when law enforcement agencies work together.”
“Today is a tragedy for the Alhaggagi family and our community as we have lost yet another young person to the allure of extremist ideology focused on hatred and violence,” said John F. Bennett, Special Agent in Charge of the FBI’s San Francisco Field Office. “This sentence serves as a reminder of how persistent and pervasive online radicalization has become and this should be a precautionary example for individuals who may be tempted by terrorist propaganda. The FBI, through our Joint Terrorism Task Forces, remains dedicated to protecting the United States against any form of terrorism and ensuring the safety of our community.”
Alhaggagi, 23, of Oakland, Calif., pleaded guilty to the charges on July 18, 2018. In pleading guilty, Alhaggagi admitted he knowingly attempted to provide services and personnel to the Islamic State of Iraq and Syria (ISIS) in violation of 18 U.S.C. § 2339B. ISIS was designated a foreign terrorist organization by the United States Secretary of State in 2014.
Federal prosecutors filed sentencing memoranda disclosing additional details of Alhaggagi’s conduct prior to and after his arrest. For example, beginning in July of 2016, Alhaggagi boasted online about a series of terrorist attacks he wanted to commit on behalf ISIS. His aim was to “redefine terror,” and he promised that if he succeeded, the “whole Bay Area [was] gonna be in flames.” Among his more vicious attacks, he planned to explode a car bomb outside a gay nightclub in San Francisco, and plant backpack bombs on routes known to be used by emergency vehicles, in an effort to kill first responders seeking to aid casualties. In addition, even after his arrest, Alhaggagi hatched a new plot for a bomb attack and shared the plan with prison inmates. At one point, Alhaggagi was driving through Berkeley towards the Oakland Hills with an undercover agent when he pointed out several bars and clubs “where all the students are.” The defendant commented, “it’s a nice area to attack… it’s like, everybody’s in their own world, just doing their thing.” He told the undercover agent that there were even more crowded areas in San Francisco that could make for good targets and said, “it’s not hard to target places, because there’s people everywhere. But I was trying to target, you know, like clubs, you know, like dance clubs, bars… stuff like that . . ..”
In pleading guilty, Alhaggagi admitted to the following:
- Alhaggagi admitted that in October and November of 2016, he created Twitter accounts and Facebook accounts along with the Gmail accounts that were necessary to authenticate them for individuals he believed were ISIS supporters.
- Alhaggagi admitted that in the Fall of 2016 he communicated with two individuals who asked him to set up social media accounts. Alhaggagi communicated with the individuals from his computer while he was in Oakland, Calif., and admitted opening several Twitter, Facebook, and Gmail accounts at their request. Alhaggagi also admitted knowing that both of the individuals were ISIS sympathizers and that by opening the social media accounts he was providing a service to ISIS. The investigation demonstrated at least one of the individuals Alhaggagi opened accounts for was an actual member of ISIS.
- Alhaggagi admitted that on Nov. 29, 2016, the day of his arrest, he possessed a device used to make counterfeit credit cards and that between July and August 2016, he used a credit card with someone else’s name to buy more than $1,000 worth of clothes for himself online.
A federal grand jury indicted Alhaggagi on July 21, 2017, with one count of knowingly attempting to provide services and personnel to the Islamic State of Iraq and Syria, or ISIS, in violation of 18 U.S.C. § 2339B; one count of possessing an identity theft device, in violation of 18 U.S.C. § 1029(a)(4); one count of unauthorized identity theft, in violation of 18 U.S.C. § 1029(a)(2); and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Alhaggagi pleaded guilty to all the charges without a written agreement.
In addition to the prison term, Judge Breyer ordered the defendant to serve 10 years supervised release.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Special Prosecutions and National Security Unit of the United States Attorney’s Office for the Northern District of California, the United States Department of Justice National Security Division, the Berkeley Police Department, and members of the Joint Terrorism Task Force including, the Oakland Police Department.
Further Information: Case #: 17-387 CRB
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