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3 April 2019
Micronesian Government Official Pleads Guilty to Money Laundering Scheme Involving FCPA ViolationsRead the Press Release
A Micronesian government official pleaded guilty yesterday to a money laundering charge involving bribes made to corruptly secure engineering and project management contracts from the government of the Federated States of Micronesia (FSM), in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office.
Master Halbert, 44, a Micronesian citizen, pleaded guilty in Honolulu before U.S. District Judge Susan O. Mollway of the District of Hawaii to a one-count information charging him with conspiracy to commit money laundering. He is scheduled to be sentenced on July 29, 2019 by Judge Mollway.
According to his admissions at the plea hearing, Halbert was a government official in the FSM Department of Transportation, Communications and Infrastructure who administered FSM’s aviation programs, including the management of its airports. Halbert admitted that between 2006 and 2016, a Hawaii-based engineering and consulting company owned by Frank James Lyon paid bribes to FSM officials, including Halbert, to obtain and retain contracts with the FSM government valued at nearly $8 million, in violation of the FCPA. Lyon and Halbert agreed that these bribe payments would be transported from the United States to the FSM.
In a related matter, Lyon, 53, of Honolulu, Hawaii, pleaded guilty on Jan. 22 to a one-count information filed in the District of Hawaii charging him with conspiracy to violate the anti-bribery provisions of the FCPA and to commit federal program fraud. Lyon is scheduled to be sentenced on May 13.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section is prosecuting the case. The Criminal Division’s Office of International Affairs and the U.S. Department of Transportation Office of Inspector General provided significant 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.
Michigan Fish Dealer Sentenced for Unlawful Trafficking in Michigan Lake TroutRead the Press Release
GRAND RAPIDS, MICHIGAN – John H. Cross III (Cross) and John Cross Fisheries Inc. (Cross Fisheries) were sentenced in Kalamazoo, Michigan, for trafficking in illegally transported and sold lake trout, announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Andrew Birge for the Western District of Michigan. Cross Fisheries was also sentenced for making false records about whitefish purchases.
The two defendants previously had pled guilty to one misdemeanor count of violating the Lacey Act by knowingly selling and attempting to sell in interstate commerce lake trout, when they should have known the fish was possessed and sold in violation of underlying State law, specifically Mich. Comp. Laws, Sections 324.47333 and 324.47319 which prohibit any person from marketing, possessing, or offering for sale any fish illegally taken from the relevant waters. Cross Fisheries also pled guilty to one felony count of violating the Lacey Act by knowingly making a false record and account of whitefish that was intended to be sold and transported in interstate commerce.
Cross was ordered to serve 12 months in prison – intermittently during a five year term of probation – for his role in trafficking lake trout. Cross Fisheries was sentenced to five years’ probation. Both defendants were ordered to pay $1,032,132.00 in restitution, jointly and severally, to the National Fish Hatcheries, which stock Lake Michigan with lake trout. In addition, Cross Fisheries was ordered to create and implement a compliance plan to prevent such violations from reoccurring.
"Purchasing illegally caught fish for interstate sale and then covering up the source of those fish by falsifying records is cheating, plain and simple — and where discovered, the Justice Department will seek to punish such conduct," said Assistant Attorney General Jeffrey Bossert Clark. "For three years, Cross Fisheries harmed law-abiding competitors and the American taxpayers who fund the stocking of Lake Michigan with trout, but that conduct has now come to an end."
"The federally funded stocking of fish and the regulations designed to preserve these natural and communal resources were simply treated as an opportunity for extra profit here and in other cases stemming from Operation Fishing for Funds. This was essentially stealing from competitors, the government, and ultimately the future," commented U.S. Attorney Andrew Birge.
"We are pleased to see this long-term illegal commercialization come to an end. This type of large-scale wildlife trafficking can significantly impact the sustainability of the resources we are charged to protect. This is especially relevant because we have been working for years to restore the Great Lakes fishery," said Edward Grace, Assistant Director of the Office of Law Enforcement.
According to documents filed in court, between September 2011 and October 2013, Cross and Cross Fisheries repeatedly purchased lake trout from "Fisherman A," who Defendants knew and should have known to be a tribal fisherman who fished from a boat that was converted to trap net gear at taxpayers’ expense and thus could not lawfully harvest lake trout. Cross and Cross Fisheries made and submitted records and accounts of these purchases stating that the seller was "Fisherman B" (who Defendants knew and should have known to be a licensed gillnet fisherman who could legally harvest lake trout).
Between approximately September 2011 and October 2013, Cross Fisheries, through its officers and employees, including Cross, made approximately forty-two purchases of lake trout from "Fisherman A," totaling approximately 48,498 pounds, all of which was falsely reported by Cross Fisheries on its Wholesale Fish Dealer’s Purchase Records as being from "Fisherman B’s" gillnet license, and subsequently offered for sale and sold by Cross and others in interstate commerce.
This sentencing is one of the final pending cases arising from Operation Fishing for Funds, an undercover operation run for approximately two years by Special Agents of the U.S. Fish and Wildlife Service (USFWS). This undercover operation investigated the illegal harvest and sale of fish (primarily walleye and trout) taken from the Great Lakes. As part of the investigation, USFWS agents established and operated an undercover wholesale fish business in Baraga, Michigan, named Upper Peninsula North Fish Company (UPNFC). UPNFC bought and sold fish wholesale from individuals across the region, and also sold fish retail.
The Operation has resulted in twenty-one convictions, seven in tribal courts and fourteen in federal courts. To date, over $1.6 million in total restitution has been ordered to the USFWS National Fish Hatcheries and tribal fish hatcheries; this amount reflects the funds needed to restock hatchery fingerlings necessary to replace the illegally harvested fish.
The Lacey Act, 16 U.S.C. §§ 3371-3378, prohibits trafficking in fish and wildlife or plants taken, possessed, transported, or sold in violation of underlying federal, state, foreign, or Indian tribal law. The Lacey Act also prohibits making or submitting a false label, record, or account of fish, wildlife, or plant that has been or is intended to be transported in interstate or foreign commence.
Operation Fishing for Funds was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement with assistance of the Michigan and Wisconsin Departments of Natural Resources. The prosecutions were handled by prosecutors from the Environmental Crimes Section of the U.S. Department of Justice, with assistance from the U.S. Attorney’s Offices for the Western and Eastern Districts of Michigan, and the Eastern District of Wisconsin, as well as The Grand Traverse Band of the Ottawa & Chippewa Indians, the Red Cliff Band of Lake Superior Chippewa, and the Sault St. Marie Tribe of Chippewa Indians.
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Mexican National Man Pleads Guilty to Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national man pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Manuel Ortiz-Sanchez, 44, will be sentenced on August 13, 2019. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE) and the West Virginia State Police.
“Ortiz-Sanchez had two prior removals,” said United States Attorney Mike Stuart. “We have a crisis at our border and our communities and the brave men and women in law enforcement are shouldering the burden. We must stop the revolving door.”
On January 16, 2019, Ortiz-Sanchez was found in Chelyan, Kanawha County, West Virginia. West Virginia troopers had stopped a car for failure to maintain control on the West Virginia Turnpike. The driver offered a Mexican Consular notification document and the passengers, including Ortiz-Sanchez, did not have drivers licenses or other identification. The State Police contacted ICE, who spoke to the individuals telephonically in Spanish. Ortiz-Sanchez admitted being in the United States illegally. Federal agents with ICE responded to the scene and took Ortiz-Sanchez into custody. Ortiz-Sanchez immediately admitted that he was not in the United States legally and had no identification documents permitting him legal status in the United States.
Fingerprinting matched Ortiz-Sanchez to two prior removals from the United States in 2015. In both cases, Ortiz-Sanchez was found by immigration judges to be in the United States illegally and he was deported to Mexico. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Ortiz-Sanchez further admitted to ICE agents that he was a Mexican citizen.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. Senior United States District Judge David Faber presided over the hearing.
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Mexican National Indicted for Illegally Reentering the United StatesRead the Press Release
BEAUMONT, Texas – A 34-year-old Mexican citizen has been indicted for immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Oscar Rendon-Gonzalez was named in an indictment returned by a federal grand jury on Apr. 3, 2019 charging him with unlawful reentry of a deported alien.
According to documents filed in court, Rendon-Gonzalez was stopped for a traffic violation on IH-10 in Beaumont, Texas. A records check revealed that Rendon-Gonzalez is alleged to have a criminal conviction for indecent liberty with a child out of North Carolina and had been deported to Mexico in 2009.
If convicted, Rendon-Gonzalez faces up to 20 years in federal prison and deportation.
This case is being investigated by the Department of Homeland Security/Enforcement Removal Operations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Juan Leobardo Martinez Reyes, age 20, and a citizen of Mexico, was sentenced today to time served (6.5 months), for the offense of illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Martinez-Reyes entered a guilty plea on February 27, 2019. Martinez-Reyes admitted as part of his guilty plea that he is a citizen of Mexico, and that he was removed from the United States to Mexico on February 7, 2018 and again on February 9, 2018. On each occasion, Martinez-Reyes had been arrested by Border Patrol in Arizona after he entered the United States without inspection from Mexico. On September 10, 2018, he was arrested by an ICE-ERO Officer in Latham, New York. A fingerprint check of Martinez-Reyes resulted in the discovery of the prior removals. Martinez-Reyes admitted that he returned to the United States without permission following the 2018 removals.
Following the sentencing, Martinez-Reyes was remanded to the custody of the Department of Homeland Security, for removal from the United States.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Pleads Guilty to Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Fernando Hernandez-Cruz, age 36, and a citizen of Mexico, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Hernandez-Cruz admitted that he is an alien from Mexico, and that he was removed from the United States to Mexico at Hidalgo, Texas, on March 11, 2016. On February 24, 2019, Hernandez Cruz was encountered as part of a group of five individuals arrested by a Border Patrol Agent just south of the international border between the United States and Canada, after they entered the United States without inspection approximately four miles east of the Fort Covington Port of Entry. A fingerprint check of Hernandez Cruz resulted in the discovery of the 2016 removal. Hernandez Cruz admitted that he returned to the United States without permission.
As a result of his conviction, Hernandez-Cruz faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Chief United States District Judge Glenn T. Suddaby on May 6, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Enters Guilty Plea for Immigration FraudRead the Press Release
ALBANY, NEW YORK – Ricardo Garcia De Jesus, age 29, and a citizen of Mexico, pled guilty today to immigration fraud.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Garcia De Jesus admitted that he possessed a counterfeit alien registration receipt card (green card) in Saratoga Springs, New York. Garcia De Jesus also admitted that he was a citizen of Mexico, and that he was in the United States unlawfully.
As a result of his conviction, Garcia De Jesus faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on August 1, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Fidel Herrera-Cruz, age 39, a citizen of Mexico, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Herrera-Cruz admitted as part of his guilty plea that he is a citizen of Mexico, and that he was removed from the United States to Mexico on April 10, 2018 and again on October 28, 2018. On each occasion, Herrera-Cruz had been arrested by immigration authorities along the southwest border after he entered the United States without inspection from Mexico. On February 24, 2019, he was encountered and arrested by a Border Patrol Agent as part of a group of five individuals who had illegally entered the United States from Canada by walking across the border approximately 4 miles east of the Fort Covington Port of Entry, thereby avoiding immigration and customs inspection. A fingerprint check of Herrera-Cruz resulted in the discovery of the prior removals. Herrera-Cruz admitted that he returned to the United States without permission following the 2018 removals.
As a result of his conviction, Herrera-Cruz faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Chief United States District Judge Glenn T. Suddaby on August 7, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Massachusetts Restaurant Owners Charged with Tax FraudRead the Press Release
A federal grand jury in Boston, Massachusetts, returned an indictment charging three restaurant owners with conspiracy to defraud the United States and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
The indictment charges Massachusetts residents, Ayaz Ali Shah of Dedham, Massachusetts, Muhamad Siyab Khan and Khurshed Jehan Badshah, both of Dorchester, Massachusetts, with conspiring to defraud the United States by impeding the lawful functions of the Internal Revenue Service (IRS). Shah and Badshah also are each charged with two counts of willfully filing their own false individual income tax returns for tax years 2012 and 2013. Khan is charged with two counts of aiding and assisting in the preparation and presentation of his own false and fraudulent tax returns for tax years 2012 and 2013.
According to the indictment, from 2009 through 2014, Shah, Khan, Badshah, and an unindicted co-conspirator, co-owned and operated a carry-out restaurant “New York Fried Chicken and Pizza” in Dorchester, Massachusetts. Shah, Khan, and Badshah each allegedly owned twenty percent of the business while the unindicted co-conspirator owned the other forty percent. The indictment alleges that during this time period, the co-conspirators agreed to underreport the business’s gross receipts, cost of goods sold, and net profit and to report these false amounts on Shah’s 2012 and 2013 individual income tax return, thereby concealing the business’s true partnership nature from the IRS. Khan and Badshah allegedly filed false 2012 and 2013 tax returns that failed to report their gross income.
If convicted, Shah, Khan, and Badshah face a maximum sentence of five years in prison on the conspiracy charge and a maximum sentence of three years in prison on each count of willfully filing a false tax return or aiding and assisting in the preparation and presentation of false and fraudulent tax returns. The defendants also face a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, FBI, Boston Division, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) and the Boston Police Department, who conducted the investigations, and Trial Attorneys Thomas Voracek and Mark McDonald of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Marquette Man Pleads Guilty to Attempting to Smuggle Goods into the United StatesRead the Press Release
A Marquette, Michigan man pleaded guilty today to smuggling products into the United States using fraudulent shipping invoices, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Special Agent in Charge William P. Conway, of the U.S. Food and Drug Administration’s Office of Criminal Investigations.
Pleading guilty was Curtis Wenzlaff, 55.
According to court records, Curtis Wenzlaff operated a domestic profit corporation, Sanno Industries, Inc., out of his residence previously located in Flushing, Michigan. Wenzlaff was acting as a drop shipper for companies outside the United States and was paid to assume the risk and consequences of the U.S. government identifying, seizing, and refusing entry of products illegally imported in to the United States.
Beginning in July 2014 and continuing until April 2016, Wenzlaff was involved with smuggling into the United States products commonly used to make drugs regulated by the U.S. Food and Drug Administration. The products were falsely labeled, among other things, as blueberry extract and sunscreen lotion ingredients. Wenzlaff would accept delivery of the packages. Once a product was successfully delivered to Wenzlaff, other individuals would then provide him with instructions regarding relabeling, repackaging and shipping the product to the intended customer. Wenzlaff received in excess of $25,000 from shippers to receive and reship the packages. Defendant claims that a portion of the money received was reimbursement for shipping expenses associated with the imported product.
Wenzlaff knew that the merchandise imported into the United States was not intended for the uses he claimed on shipping documents. Even so, he knowingly received the product and then concealed it in order to facilitate the sale of the merchandise to a third party. The value of the merchandise/products illegally smuggled into the United States by Wenzlaff was in excess of $1,000,000.00.
“I commend the agents of the FDA’s Office of Criminal Investigations for their work on this case,” stated United States Attorney Schneider. “Our office is always working to protect Michigan consumers from harm, and that’s especially true in cases where people try to evade federal health and safety regulations in exchange for their own personal profits.”
“FDA regulations are in place to protect consumers and help ensure the drug products they receive are safe and effective,” said Special Agent in Charge William P. Conway, FDA Office of Criminal Investigations’ Chicago Field Office. “When unscrupulous importers attempt to evade FDA’s regulations, consumers in the U.S. are put at risk. The FDA will continue to pursue and bring to justice those who participate in fraudulent smuggling schemes to the detriment of public health.”
Wenzlaff’s plea agreement provides for an anticipated sentencing guideline range of 24-30 months’ imprisonment. Wenzlaff entered his guilty plea before U.S. District Judge Matthew Leitman in Flint, Michigan. Sentencing has been set for August 8, 2019 at 1:30 p.m..
The case was investigated by the U.S. Food and Drug Administration’s Office of Criminal Investigations and is being prosecuted by Assistant United States Attorney Nancy Abraham.
MS-13 Gang Member Pleads Guilty to Federal Racketeering Conspiracy, Including Participating in a MurderRead the Press Release
Baltimore, Maryland – Daniel Flores-Ventura, a/k/a Necio, age 26, of Aspen Hill, Maryland, pleaded guilty on April 2, 2019, to conspiring to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder. Co-defendants Vilas Sail Argueta-Bermudez, a/k/a Happy, Little Happy, and Enchilada, age 32; Michael Campos-Lemus, a/k/a Humilde, age 25, both of Aspen Hill; and Wilians Ernesto Lovos-Ayala, a/k/a Tigre, age 26, of Woodbridge, Virginia, previously pleaded guilty to the same charge.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief Edward Hargis of the Frederick Police Department; and Chief Barry M. Barnard of Prince William County, Virginia Police.
“The convictions of these four defendants, and our ongoing work with our law enforcement partners to bring other gang members to justice, demonstrate our unflagging commitment to remove MS-13 and its associated violence from our communities,” said United States Attorney Hur. “We simply will not tolerate the wanton violence that MS-13 promotes.”
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Molinos Locos Salvatruchas (“Molinos”), Uniones Locos Salvatruchas (“Uniones”), Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”).
To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”
According to their plea agreements, from about 2015 Flores-Ventura, Lovos-Ayala, and Campos-Lemus were all members and associates of the Uniones clique of MS-13. Co-defendant Argueta-Bermudez was a member and associate of the Molinos clique of MS-13. The defendants admitted to participating in numerous acts in furtherance of the racketeering conspiracy, including drug sales and murder.
As detailed in their plea agreements, the defendants admitted that beginning in June or July 2015, Flores-Ventura, Argueta-Bermudez, Campos-Lemus, and Lovos-Ayala conspired to murder Victim-1, whom they believed to be a member of the rival 18th Street gang. On July 16, 2015, the conspirators lured Victim-1 from Maryland to Virginia, on the pretext that Victim-1 was going to participate in a “court,” a disciplinary beating to be administered to another individual.
Flores-Ventura admitted that he drove Victim-1 from Silver Spring, Maryland, to Woodbridge, Virginia, in order to kill Victim-1. Argueta-Bermudez and Campos-Lemus also drove to Woodbridge, Virginia, to participate in the murder. Lovos-Ayala and the other MS-13 members and associates met in a wooded location in Woodbridge, where Flores-Ventura struck Victim-1 on the head. Lovos-Ayala, Argueta-Bermudez, Campos-Lemus, and other members and associates of MS-13 then struck and stabbed Victim-1 with machetes and knives until Victim-1 was dead.
The defendants admitted that the murder of Victim-1 served to maintain or increase the status of MS-13 within the community and to maintain or increase the status of the defendants and other MS-13 members who participated in the murder.
The defendants all face a maximum sentence of life in prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Campos-Lemus on July 24, 2019; for Argueta-Bermudez on August 19, 2019; for Lovos-Ayala on August 20, 2019, and for Flores-Ventura on August 27, 2019, all at 10:00 a.m.
United States Attorney Robert K. Hur commended HSI Baltimore, the FBI, the Frederick Police Department, and the Prince William County Police Department for their work in the investigation, and thanked Prince William County Commonwealth’s Attorney Paul B. Ebert for his office’s assistance. Mr. Hur thanked Assistant United States Attorneys Kenneth Clark, Catherine K. Dick, and Matthew DellaBetta who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Leader of ‘Nine Trey Gangsta Bloods’ Pleads Guilty to Racketeering and Narcotics Offenses in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JAMEL JONES, a/k/a “Mel Murda,” pled guilty today in Manhattan federal court to racketeering and narcotics offenses as part of his participation in the Nine Trey Gangsta Bloods (“Nine Trey”). U.S. District Judge Paul A. Engelmayer presided over the defendant’s guilty plea.
U.S. Attorney Geoffrey S. Berman said: “Today, Jamel Jones admitted in open court to his involvement in Nine Trey and distributing drugs for the gang. We will continue to work with our law enforcement partners to keep our communities safe and vigorously investigate and prosecute those who bring violence and drugs into our communities.”
As alleged in the Indictment and statements made in open court:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. Members and associates of Nine Trey enriched themselves by committing robberies and selling drugs, such as heroin, fentanyl, furanyl fentanyl, MDMA, dibutylone, and marijuana.
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JONES, 38, of Brooklyn, pled guilty to one count of racketeering conspiracy for his involvement in Nine Trey, which carries a maximum sentence of 20 years in prison; and one count of participating in a narcotics distribution conspiracy, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. JONES’S sentencing has been scheduled for July 17, 2019, at 2:30 p.m. before Judge Engelmayer.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Sebastian Swett are in charge of the prosecution.
Justice Department Alleges Conditions in Alabama Men’s Prisons Violate the ConstitutionRead the Press Release
WASHINGTON – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions in Alabama’s prisons for men violate the Eighth Amendment of the U.S. Constitution. The Department concluded that there is reasonable cause to believe that the men’s prisons fail to protect prisoners from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, and fail to provide prisoners with safe conditions.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided Alabama written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners the right to be housed in safe conditions and not be subjected to violence and sexual abuse,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that Alabama fails to provide constitutionally adequate conditions and that prisoners experience serious harm, including deadly harm, as a result. The Justice Department hopes to work with Alabama to resolve the Department’s concerns.”
“This massive undertaking alleges constitutional troubles in the Alabama Department of Corrections which are serious, systemic, and in need of fundamental and comprehensive change,” U.S. Attorney Jay Town stated. “That being said, I have great confidence in the State of Alabama’s resolve to correct the prison system’s problems. The commitment by Governor Ivey, Commissioner Dunn, and so many others in the State’s leadership to affirmatively address these inherited issues offers great promise of our development of a meaningful remedy.”
“An extraordinary amount of time and effort was expended to investigate this matter,” said U.S. Attorney Louis V. Franklin, Sr. “Although the results of this investigation are disturbing, I look at this as an opportunity to acknowledge that the problems are real and need to be addressed immediately. We are committed to working with State officials to ensure that the Department of Corrections abides by its constitutional obligations.”
“The United States Constitution bans ‘cruel and unusual punishments’ but the conditions found in our investigation of Alabama prisons provide reasonable cause to believe there is a flagrant disregard of that injunction,” said U.S. Attorney Richard Moore. “The failure to respect the rule of law by providing humane treatment for inmates in Alabama prisons is a poor reflection on those of us who live and work in Alabama. We are better than this. We do not need to tarry very long assessing blame, but rather commit to righting this wrong and spare our State further embarrassment. The task is daunting, but one we must embrace now without reservation. I am confident that Governor Ivey and the Legislative leadership in the State of Alabama understand the nature of this inherited problem and that they are committed to sustainable solutions.”
The Civil Rights Division and the United States Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the Department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .
Justice Department Alleges Conditions in Alabama Men's Prisons Violate the ConstitutionRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions in Alabama’s prisons for men violate the Eighth Amendment of the U.S. Constitution. The Department concluded that there is reasonable cause to believe that the men’s prisons fail to protect prisoners from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, and fail to provide prisoners with safe conditions.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided Alabama written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners the right to be housed in safe conditions and not be subjected to violence and sexual abuse,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that Alabama fails to provide constitutionally adequate conditions and that prisoners experience serious harm, including deadly harm, as a result. The Justice Department hopes to work with Alabama to resolve the Department’s concerns.”
“This massive undertaking alleges constitutional troubles in the Alabama Department of Corrections which are serious, systemic, and in need of fundamental and comprehensive change,” U.S. Attorney Jay Town stated. “That being said, I have great confidence in the State of Alabama’s resolve to correct the prison system’s problems. The commitment by Governor Ivey, Commissioner Dunn, and so many others in the State’s leadership to affirmatively address these inherited issues offers great promise of our development of a meaningful remedy.”
“An extraordinary amount of time and effort was expended to investigate this matter,” said U.S. Attorney Louis Franklin, Sr. “Although the results of this investigation are disturbing, I look at this as an opportunity to acknowledge that the problems are real and need to be addressed immediately. We are committed to working with State officials to ensure that the Department of Corrections abides by its constitutional obligations.”
“The United States Constitution bans ‘cruel and unusual punishments’ but the conditions found in our investigation of Alabama prisons provide reasonable cause to believe there is a flagrant disregard of that injunction,” said U.S. Attorney Richard Moore. “The failure to respect the rule of law by providing humane treatment for inmates in Alabama prisons is a poor reflection on those of us who live and work in Alabama. We are better than this. We do not need to tarry very long assessing blame, but rather commit to righting this wrong and spare our State further embarrassment. The task is daunting, but one we must embrace now without reservation. I am confident that Governor Ivey and the Legislative leadership in the State of Alabama understand the nature of this inherited problem and that they are committed to sustainable solutions.”
The Civil Rights Division and the United States Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the Department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Conditions in Alabama Men's Prisons Violate the ConstitutionRead the Press Release
BIRMINGHAM – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions in Alabama’s prisons for men violate the Eighth Amendment of the U.S. Constitution. The Department concluded that there is reasonable cause to believe that the men’s prisons fail to protect prisoners from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, and fail to provide prisoners with safe conditions.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided Alabama written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners the right to be housed in safe conditions and not be subjected to violence and sexual abuse,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that Alabama fails to provide constitutionally adequate conditions and that prisoners experience serious harm, including deadly harm, as a result. The Justice Department hopes to work with Alabama to resolve the Department’s concerns.”
“This massive undertaking alleges constitutional troubles in the Alabama Department of Corrections which are serious, systemic, and in need of fundamental and comprehensive change,” U.S. Attorney Jay Town stated. “That being said, I have great confidence in the State of Alabama’s resolve to correct the prison system’s problems. The commitment by Governor Ivey, Commissioner Dunn, and so many others in the State’s leadership to affirmatively address these inherited issues offers great promise of our development of a meaningful remedy. Assistant United States Attorneys Lane Woodke, Jason Cheek, and Carla Ward from the USAO-NDAL Civil Division have helped to lead this statewide investigation spanning nearly three years.”
“An extraordinary amount of time and effort was expended to investigate this matter,” said U.S. Attorney Louis Franklin, Sr. “Although the results of this investigation are disturbing, I look at this as an opportunity to acknowledge that the problems are real and need to be addressed immediately. We are committed to working with State officials to ensure that the Department of Corrections abides by its constitutional obligations.”
“The United States Constitution bans ‘cruel and unusual punishments’ but the conditions found in our investigation of Alabama prisons provide reasonable cause to believe there is a flagrant disregard of that injunction,” said U.S. Attorney Richard Moore. “The failure to respect the rule of law by providing humane treatment for inmates in Alabama prisons is a poor reflection on those of us who live and work in Alabama. We are better than this. We do not need to tarry very long assessing blame, but rather commit to righting this wrong and spare our State further embarrassment. The task is daunting, but one we must embrace now without reservation. I am confident that Governor Ivey and the Legislative leadership in the State of Alabama understand the nature of this inherited problem and that they are committed to sustainable solutions.”
The Civil Rights Division and the United States Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the Department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
The notice letter and report can be found at /media/999461/dl?inline?utm_medium=email&utm_source=govdelivery.
Illegal alien from Honduras sentenced to 15 months in prison for re-entering the United States five timesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that Selvin Ponce-Hernandez, 28, of Honduras was sentenced to a year and three months in prison by Chief U.S. District Judge S. Maurice Hicks Jr. for illegally re-entering the country for a fifth time.
Lafayette Parish Sheriff’s deputies arrested Ponce-Hernandez on August 9, 2018 for domestic abuse battery, possession of a stolen firearm and resisting an officer. The defendant’s wife reported the battery and deputies found him hiding in the closet of an abandoned apartment. Ponce-Hernandez was previously removed from the United States four times - November 2008, December 2009, January 2012 and October 2015. He also has two previous criminal convictions. He was convicted in August of 2008 of criminal mischief in Houston Texas and in October 2009 in the Southern District of Texas for illegal re-entry of a removed alien. He pleaded guilty on December 20, 2018.
Homeland Security Investigations, the ATF and the Lafayette Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney David J. Ayo prosecuted the case.
Holyoke Man Sentenced for Dealing CocaineRead the Press Release
BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield for dealing cocaine.
Raul Ramos, 44, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served, six days, in prison and six years of supervised release. In February 2018, Ramos pleaded guilty to one count of distribution and possession with intent to distribute cocaine.
On Nov. 8, 2016, Ramos distributed more than 27 grams of cocaine in exchange for $1,300. The charge is a result of a federal, state, and local law enforcement investigation into drug trafficking in Springfield and Holyoke.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Clapprood; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Hobart Resident Indicted for Dark Web Drug Sales and Money LaunderingRead the Press Release
United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin announced that on April 2, 2019, a federal indictment was issued against Christopher D. Bania (age: 26) of Hobart, Wisconsin.
Bania was charged with possession with the intent to distribute controlled substances, maintaining a residence for the purpose of drug distribution, unlawful importation of controlled substances into the United States, and money laundering related to activity occurring between February of 2016 and continuing until his arrest on March 5, 2019.
According to court documents, Bania sold narcotics that included MDMA (“Ecstacy”), cocaine, DMT, ketamine, LSD, methamphetamine, heroin, MDA, cocaine base (“crack cocaine”), methaqualone, marijuana, and a variety of other controlled substances. To make his sales, Bania utilized dark web marketplaces, including Dream Market, Zion, Wall Street, Hansa, Trade Route, and Alpha Bay. Alpha Bay and Hansa were shut down by law enforcement in July of 2017.
The dark web is a part of the Internet that is unreachable by traditional search engines and web browsers. Websites on the dark web have complex web addresses generated by a computer algorithm and must be accessed using special software that is capable of connecting to “The Onion Router” network, or “TOR” for short. The TOR network is encrypted and routes internet traffic dynamically through a series of computers around the world, concealing the true Internet Protocol (IP) addresses of the computers accessing the network and thereby making internet use virtually anonymous. This perceived anonymity has led to a proliferation of criminal activity on dark web marketplaces, where users can find vendors, like Bania, offering illegal goods and services for sale.
“Drug traffickers should take note: the internet is not free from law enforcement,” said U.S. Attorney Krueger. “This case reflects an extraordinary collaboration between federal, state, and local agencies, which are committed to stopping all forms of drug trafficking in our communities.”
“Whether you are selling drugs on a street corner or selling them from a dark web vendor site, the Drug Enforcement Administration will continue investigating drug traffickers wherever they operate,” said Green Bay DEA Resident-Agent-in-Charge Christopher Hoyt. “This arrest proves that drug trafficking via the dark web is not immune from detection and prosecution.”
This case was a joint investigation of the U.S. Customs and Border Patrol, U.S. Postal Inspection Service, U.S. Drug Enforcement Administration, Wisconsin Department of Justice – Division of Criminal Investigation, the Brown County Drug Task Force, the Hobart/Lawrence Police Department, and the Oneida Police Department. It will be prosecuted by Assistant United States Attorneys Scott J. Campbell, Benjamin W. Proctor, and Daniel R. Humble.
If convicted on all charges, Bania faces up to 80 years in federal prison and over $4 million in fines.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Hartford Man Sentenced to Life in Prison for 2011 Gang-Related MurderRead the Press Release
U.S. Attorney John H. Durham and Chief State’s Attorney Kevin T. Kane announced that ARTHUR STANLEY, also known as “Wiggs,” 29, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to a mandatory life prison term for committing the July 15, 2011, murder of Keith Washington, 23, of Windsor. On December 19, 2016, a jury found Stanley guilty of engaging in a violent crime in aid of racketeering.
This matter stems from a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of the Westhell and Team Grease street gangs and gang-related violent activity. Officers and inspectors of the Cold Case Homicide Unit of the Office of the Chief State’s Attorney participated in the investigation.
At approximately 9:28 p.m. on July 15, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 67 Oakland Terrace in Hartford. Officers responding to the scene located an unconscious person lying on the front porch of the residence with an apparent gunshot wound to the head. The victim, who was subsequently identified as Keith Washington, was transported to the hospital where he succumbed to his injuries on July 17, 2011.
According to the trial evidence and testimony, Stanley, a member of the Westhell street gang, attempted to shoot and kill a member of a rival street gang who was talking with Washington on the front porch of 67 Oakland Terrace. He missed his intended target and shot Washington instead.
Stanley has been in federal custody since April 15, 2014, when he was arrested on gang-related narcotics trafficking charges. On May 5, 2015, he pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack”). Today, Judge Meyer imposed a concurrent 10-year sentence for that offense.
Judge Meyer also ordered Stanley to pay restitution of $12,908.87 to Keith Washington’s family for funeral and related expenses.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by U.S. Attorney Durham, Assistant U.S. Attorney Peter S. Jongbloed and New Haven State’s Attorney Patrick Griffin, who was cross-designated as a Special Assistant U.S. Attorney in this matter.
Harrison County man admits to role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA –Cody Boley, of Wallace, West Virginia, has admitted to his involvement in a methamphetamine distribution conspiracy, United States Attorney Bill Powell announced.
Boley, age 25, pled guilty to one count of “Unlawful Possession of a Firearm.” Boley, being a person prohibited from possessing a firearm, admitted to having a .40 caliber semi-automatic pistol in May 2018 in Lewis County.
Boley faces up to 10 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
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.
Harris County Man Indicted for Liberty County Bank RobberyRead the Press Release
BEAUMONT, Texas – An 18-year-old LaPorte, Texas man has been indicted for bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Aaron Gonzalez was named in an indictment returned by a federal grand jury on Apr. 3, 2019 charging him with bank robbery by force or intimidation.
According to the indictment, on Mar. 6, 2019, Gonzalez is alleged to have robbed the Texas First Bank on FM 834 in Hull, Texas by entering the bank and presenting a threatening note to a bank teller. Video surveillance and witness accounts of the bank robber and his vehicle led to Gonzalez’ arrest.
If convicted, Gonzalez faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the Liberty County Sheriff’s Office, the LaPorte Police Department and the Texas Department of Public Safety and is being prosecuted by Assistant U.S. Attorney Robert L. Rawls.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Hampshire County man admits to Clean Water Act violationsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Peer, of Springfield, West Virginia, has admitted to violating permits and discharging untreated sewage from his sewage treatment plant, United States Attorney Bill Powell announced.
Peer, age 55, was the owner of Mountainaire Village Utility, LLC, a sewage water treatment plant serving the residents of Mountainaire Village near Ridgeley, West Virginia. Peer owned and operated this business from early 2008 to July 2016. Peer pled guilty to one count of “Knowing Violation of Permit Conditions” and one count of “False Statements on Discharge Monitoring Reports.”
From 2014 to 2016, Peer admitted to failing to maintain the treatment plant, resulting in untreated and undertreated sewage being discharged into the North Branch of the Potomac River, violating the Clean Water Act and his permit. Peer also admitted to falsely reporting quarterly testing on the wastewater from the plant.
Peer faces not more than 3 years; not less than $5,000 (if a fine is imposed) and not more than $50,000 per day of violation; or $250,000; or twice the amount of gain or loss; for the permit violation count. He faces up to two years incarceration and a fine of up to $10,000 for the discharge count. 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 David J. Perri and Special Assistant United States Attorney Perry McDaniel, with the Southern District of West Virginia U.S. Attorney’s Office, are prosecuting the case on behalf of the government. The Environmental Protection Agency and the West Virginia Department of Environment Protection investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Madison Man Faces Additional Charges Related to Transporting Minor Across State Lines
Bryan Rogers, 31, Madison, Wisconsin, is charged in a superseding indictment with production of child pornography, making false statements to an FBI agent, and two counts of transporting a minor across state lines for an illegal sexual purpose.
Rogers was originally charged with production of child pornography in a complaint filed in U.S. District Court for the Western District of Wisconsin on February 4, 2019. The grand jury returned an indictment on February 20 which charged him with production of child pornography and lying to a federal agent. The superseding indictment returned today adds two additional charges of transporting a minor in interstate commerce with the intent that the minor engage in sexual activity which would be a criminal offense under Wisconsin law, sexual assault of a child.
The new counts in the superseding indictment allege that on January 14, 2019, Rogers transported a minor from Tennessee to Wisconsin, and that on January 28, 2019, he transported the minor from Missouri to Wisconsin.
If convicted, Rogers faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on the child pornography charge, and five years in prison on the charge of lying to investigators. The two charges of transporting a minor across state lines for an illegal sexual purpose carry a mandatory minimum penalty of 10 years and a maximum of life in prison.
Rogers has been in custody since his arrest in January. His trial is scheduled to take place on July 15 in U.S. District Court in Madison.
The charges against Rogers are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Madison Police Department, Dane County Sheriff’s Office, and Monroe County (Tennessee) Sheriff’s Office. The prosecution of this case is being handled by Assistant U.S. Attorney Julie Pfluger.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Madison Man Charged with Drug Crimes Involving Methamphetamine
Johnny B. Green, 38, Madison, Wisconsin, is charged with four counts of distributing methamphetamine, with one count alleging distribution of 50 grams or more, and one count of possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he distributed methamphetamine on four occasions between October 5 and 17, 2018, and that he possessed methamphetamine on October 22, 2018.
If convicted, Green faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison on each of the two counts alleging 50 grams or more of methamphetamine, and 20 years on each of the three other counts of distribution.
The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Diane Schlipper.
Madison Man Charged with Possession of Cocaine With Intent to Distribute
Blair Cook, 25, Madison, Wisconsin, is charged with possessing cocaine with intent to distribute. The indictment alleges that he possessed cocaine on March 25, 2019.
If convicted, Cook faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and the Dane County Sheriff’s Office. The prosecution of this case is being handled by Assistant U.S. Attorney Rita Rumbelow.
Stevens Point Man Charged with Failing To Register as Sex Offender
Jason Ray Scott, 39, Stevens Point, Wisconsin, is charged with failing to register as required by the Sex Offender Registration and Notification Act (SORNA). The indictment alleges that from May 2017 through August 2018, he traveled from Texas to Wisconsin and failed to register as required by SORNA.
If convicted, Scott faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the U.S. Marshals Service. The prosecution of this case is being handled by Assistant U.S. Attorney Julie Pfluger.
Four Kingsmen Motorcycle Club Members Sentenced for RICO ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - James P. Kennedy, Jr. today that announced today that four members of the Kingsmen Motorcycle Club (KMC), who were convicted of RICO conspiracy, were sentenced by U.S. District Judge Elizabeth A. Wolford:
• Jimmy Ray Fritts was sentenced to serve 87 months in prison; • Filip Caruso was sentenced to serve 70 months in prison; • Ryan Myrtle was sentenced to time served, three years supervised release to include six months home detention, and 150 hours of community service; and
• Emmett Green was sentenced to time served and two years supervised release.Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who are handling the case, stated that the defendants admitted to being members of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence.
Defendant Fritts was at various times a KMC Tennessee Moonshine Chapter President. Fritts worked with other KMC members, including Andre Jenkins, to obtain cocaine from a bar in Deland, Florida, and he distributed cocaine in KMC clubhouses and at KMC events in Tennessee, Florida, New York, and Pennsylvania. Fritts also possessed a cache of firearms, to include handguns, rifles, and shotguns.
On July 15, 2015, Fritts testified falsely and evasively about material facts before a federal Grand Jury in the Western District of New York, specifically regarding: the circumstances under which he loaned his motorcycle to Andre Jenkins, a/k/a Little Bear, to travel from Tennessee to New York; what other person was with him when he loaned his motorcycle to Jenkins; where he was when he provided the motorcycle to Jenkins; the circumstances under which Jenkins traveled back to Tennessee from New York to return his motorcycle; whether Jenkins was threatened upon his return to the KMC Tennessee Chapter; and who he met with, and what was discussed, the night before his federal Grand Jury testimony on July 15, 2015.Fritts further admitted that his participation in this conspiracy included his agreement that acts involving murder would be committed by members of the KMC. Specifically, the defendant met with David Pirk, Andre Jenkins, and "Drifter" in the Tennessee KMC Chapter clubhouse and discussed and agreed that Andre Jenkins was going to travel from Tennessee to New York to commit the murder of Filip Caruso and to investigate "leakers" within the KMC suspected of providing information to rivals. Prior to this meeting, Fritts provided a loaded 9mm Glock semi-automatic firearm to Andre Jenkins. On September 6, 2014, Andre Jenkins shot and killed KMC members Paul Maue and Daniel Szymanski behind the North Tonawanda Kingsmen Clubhouse on Oliver Street in North Tonawanda, NY. Jenkins, in committing the murders, was acting under the direction and supervision of David Pirk, who authorized the murders. Following the murders, Fritts made arrangements to help Jenkins flee New York and return to Tennessee.
When Jenkins returned to Tennessee on September 7, 2014, the Tennessee KMC members, who at that time were unaware that Pirk had sanctioned the murders of Maue and Szymanski, were armed with firearms and prepared to kill Jenkins until David Pirk, while speaking on the phone with the Tennessee KMC members, directed the Tennessee KMC Moonshine Chapter members to "stand down" and not harm Jenkins. As time went by, eventually one of the Tennessee KMC members, D.S., who was present when Jenkins returned from New York to Tennessee, was kicked out of the KMC Tennessee Chapter for using heroin, a drug prohibited by the KMC. The KMC determine that D.S. was compromised and should be killed because of the incriminating information he possessed regarding the KMC's role in the murders and Paul Maue and Daniel Szymanski. Fritts and other Tennessee KMC Chapter members agreed to kill D.S., provided Jenkins with a firearm, and instructed Jenkins to kill D.S. Jenkins agreed to kill D.S. Jenkins was subsequently arrested in the State of Georgia with the firearm provided to him by members of the Tennessee KMC Chapter on about October 10, 2014.
Defendant Caruso, a/k/a Filly, was a member of the KMC at various times between 2009 and mid to late August of 2014. In January 2014, Caruso and another KMC member from the Western District of New York traveled to Florida. While Caruso was in Florida, David Pirk and Timothy Enix, KMC Florida Regional President, wanted his help to retrieve KMC property that was in the possession of former KMC members who had jumped patch to a rival motorcycle club in Florida. KMC members, including Caruso, Pirk, Enix, Andre Jenkins, and others obtained and possessed various firearms and engaged in discussions about how to retrieve their property from the former KMC members. During the course of these group discussions, it was agreed upon that they would recover their property by any means necessary, which included killing or kidnapping the former KMC members in order to get back KMC property. In August 2014, Caruso and another KMC member punched and struck a fellow KMC member with a pool cue inside the Niagara Falls Chapter clubhouse.
On June 7, 2013, KMC forcibly shut down the Springville Chapter and stripped members of their colors because they were deemed non-compliant. Defendant Myrtle participated in the forced shutdown during which other KMC members struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug which contained blood. In addition, on September 21, 2012, Myrtle participated in a drive-by shooting in order to retaliate against a former KMC member who assaulted a KMC Regional President. On that date, two car loads of KMC members, including the defendant, drove to the residence of the person in the Riverside section of Buffalo and opened fire at the residence. No injuries were reported.
In December 2014, defendant Green and co-defendant Robert Osborne, Jr., and others, assaulted a former Kingsmen for breaking club rules by punching the victim repeatedly in the body and chest and knocking him to the ground.
A total of 16 defendants were charged and convicted in this case, including KMC National President David Pirk and Andrew Jenkins who were each sentenced to serve multiple terms of life in prison.
Today’s sentencings are the culmination of an investigation led by the FBI’s Safe Streets Task Force. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the North Tonawanda Police Department; the Niagara County Sheriff’s Office; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department.
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Former Vice President of Commercial Flooring Contractor Charged with Bid RiggingRead the Press Release
Michael P. Gannon, former Vice President of Sales for a large Chicago-based commercial flooring contractor, has been charged for his role in a conspiracy to rig bids and fix prices for commercial flooring services and products sold in the United States, the Department of Justice announced today. This charge is the first in the Department’s ongoing investigation into bid rigging and price fixing by commercial flooring contractors.
Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division and Special Agent in Charge, Jeffrey S. Sallet, of the Federal Bureau of Investigation’s Chicago Field Division, made the announcement.
According to a one-count felony charge filed today in U.S. District Court for the Northern District of Illinois, Gannon and his employer engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by agreeing with other individuals and companies to submit “comp,” or complementary, bids so that the designated company would win the bidding. According to the charge, Gannon and his co-conspirators rigged bids for commercial flooring services and products for almost a decade, from at least as early as 2009 until as late as June 22, 2017.
“Today’s charge is the first of what we expect to be many in this ongoing investigation into bid rigging,” said Assistant Attorney General Delrahim. “Any collusion by commercial flooring contractors exploits local communities whose schools, hospitals, charities, and businesses are entitled to the benefits of competitive bidding. The Justice Department and our law enforcement partners will bring contractors to justice when they cheat rather than compete.”
“The FBI has no tolerance for contractors who seek to profit by criminally exploiting innocent businesses and communities,” said Special Agent in Charge Sallet. “We will continue to use every tool at our disposal to hold these offenders accountable for their crimes and restore equity to the bidding process.”
A violation of the Sherman Act carries maximum penalties of a $100 million criminal fine for corporations and 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
An information is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division.
Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200.
Former Stuart Housing Authority Employee Pleads Guilty to Theft of Government FundsRead the Press Release
A former Stuart Housing Authority employee pled guilty today to stealing government funds from the federal Housing Choice Voucher Program.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), made the announcement.
Cynthia Cabrera, 49, of Port St. Lucie, Florida, pled guilty today to one count of theft of government funds (Case No. 19-14014-CR-Rosenberg). She is scheduled to be sentenced by U.S. District Judge Robin L. Rosenberg, in Fort Pierce, on June 12, 2019 at 10:00 a.m. Cabrera faces a maximum statutory sentence of 10 years in prison and a $250,000 fine.
The Housing Choice Voucher Program is the federal government's main program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects.
Housing choice vouchers are administered locally by public housing agencies that receive federal funds from HUD. The Stuart Housing Authority is one such public housing agency. A housing subsidy is paid to the landlord directly by the public housing agency, on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program.
Eligibility for the voucher program depends upon the applicant’s income and household composition. A family with a greater number of dependents will allow a family to be eligible for more benefits. A lower household income will allow applicants to obtain more benefits. The threshold for eligibility to receive benefits is also influenced by the total household income and the number of dependents.
Stuart Housing Authority employee Cynthia Cabrera unlawfully received benefits from the Housing Choice Voucher Program. Between 2009 and 2015, while working as the Stuart Housing Authority bookkeeper Cabrera submitted fraudulent annual applications, in which she failed to accurately report her total income and assets. Additionally, Cabrera failed to accurately report the number of people who occupied the residence and their income.
The Section 8 benefit file reflected that Cabrera’s housing authority income was only reported for the first month of her program participation (January 2010). Thereafter, her housing authority income was never declared, despite the fact that Cabrera was employed with the agency from 2009 through 2018. Additionally, the presence of her husband, and his housing authority income, was never reflected on the applications.
During the period between 2010 and 2016, Cabrera significantly under-reported her household income by failing to disclose her actual earnings and the income of her husband, which resulted in her receipt of $73,953.00 in housing subsidies for which she would not have been entitled to receive had she accurately reported her total household income.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HUD-OIG in this matter. This case is being prosecuted by Assistant U. S. Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Riverton City Clerk Sentenced for Bank FraudRead the Press Release
COUNCIL BLUFFS, Iowa – United States Attorney Marc Krickbaum announced on April 2, 2019, Carol S. Jennings, age 57, of Riverton, was sentenced by United States District Court Judge Stephanie M. Rose for bank fraud. Jennings was sentenced to five years of probation and ordered to pay $77,247.47 in restitution. As part of her sentence, Jennings will serve six months of home confinement.
In November 2018, Jennings pleaded guilty to one count of bank fraud. According to plea documents, Jennings admitted that while employed as the clerk for the City of Riverton, she opened an account with a local bank by providing a falsified document. Jennings also admitted to depositing city funds into the account and then converting almost the entire balance for her own personal use.
This matter was investigated by the Federal Bureau of Investigation and the Fremont County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Port Huron Pharmacist Indicted for Fraudulently Obtaining Powerful PainkillersRead the Press Release
A former pharmacist was arraigned today on an indictment charging him with fraudulently obtaining controlled substances, including opioids, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Timothy Plancon of the Drug Enforcement Administration, Detroit Field Division.
Charged in the indictment is Kyle Wilhelm 40, Marysville.
According to the indictment, between February 2015 and February 2018, Wilhelm utilized his position as a hospital pharmacy manager to fill prescriptions for fictitious patients using false birthdates, false addresses, and by the unauthorized use of a medical doctor’s DEA registration number. Wilhelm exploited his knowledge of his employer’s internal controls to obtain controlled substances, which would go unnoticed during audits. He failed to compensate his employer for more than $35,000 in controlled substances he fraudulently obtained. In total, he obtained more than 200,000 dosage units of controlled substances such as oxycodone, hydromorphone, and hydrocodone acetaminophen.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
If convicted of a drug charges alleged in the indictment, the defendant faces a maximum sentence of imprisonment of eight years, and a maximum fine of $250,000.
The case was investigated by DEA’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorney Philip A. Ross
Former Police Officer Sentenced for Corruption ChargeRead the Press Release
St. Louis, MO –Mark Taylor, 50, of St. Louis, was sentenced to 30 days in prison for accepting bribes in exchange for un-redacted accident reports while a police officer with the City of St. Louis. He appeared in federal court today before U.S. District Judge Stephen Limbaugh, Jr.
According to court documents, between 2007 and 2016, Dr. Mitchell Davis owned and operated Davis Chiropractic Clinic, now known as City Health and Chiropractic. Located on Lindell Blvd in St. Louis, the clinic primarily provided services to accident victims. Galina Davis assisted Dr. Davis in identifying, soliciting, and scheduling potential accident victims.
According to SLMPD policy, the SLMPD will provide un-redacted accident reports only to persons involved in the accidents, the companies insuring them, or the lawyers representing them. Un-redacted accident reports contain detailed information, including addresses, telephone numbers, birthdates, and insurance information of the occupants of the vehicles. Dr. Davis and Galina Davis knew that the SLMPD would not disclose un-redacted police reports to them. To get around this policy, Galina Davis and Dr. Davis recruited, solicited, and paid individual SLMPD police officers to obtain un-redacted accident reports for them.
Using the information from the un-redacted reports, Galina Davis contacted accident victims, identified herself as Gail, Allison, Kelly, Laura, or Shannon, and offered the accident victims free services at Davis Chiropractic. Dr. Davis and Galina Davis focused on identifying accident victims from neighborhoods where there was a large concentration of low-income victims. They believed that low-income individuals would be more receptive to their solicitations and offers of free services.
Taylor admitted to taking cash payments in exchange for providing un-redacted reports. Co-defendants Marlon Caldwell and Cauncenet Brown were sentenced to 13 months in prison and 10 months in prison, respectively, for their roles in the scheme.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Dorothy McMurtry and Reginald Harris are handling the case for the U.S. Attorney’s Office.
Former Owner of Local Nursing Homes Sentenced on Bank Theft and Tax ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Marc I. Korn, 62, of East Amherst, NY, who was convicted of bank theft and willful failure to pay tax, was sentenced to serve 18 months in prison by Senior U.S. District Judge William S. Skretny. The defendant will also pay over $2,500,000 in restitution to three different private entities along with approximately $850,000 to the Internal Revenue Service.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that Korn was the former owner of the Batavia Nursing Home in Batavia, NY, and the Fairchild Manor Nursing Home in Lewiston, NY. The defendant committed bank theft in connection with his actions concerning a credit card and loan from Fifth Third Bank. He also failed to pay over employment taxes related to his nursing homes over three quarters in 2009.
In 2008, Korn sought a loan to refinance the Batavia Nursing Home from Fifth Third Bank. In June 2008, Fifth Third Bank provided $3,900,000 to refinance the nursing home and provided the defendant with a credit card. As part of the application for the loan, Korn submitted a personal financial statement and guaranty on which the bank relied when underwriting the loan. The statement contained numerous falsehoods, including the overvaluation of his primary residence. The defendant stated that the property was valued at $1,465,000 when, at the same time, he was contesting its value with the Town of Amherst for purposes of property taxes, alleging it was worth between $500,000 and $550,000. Additionally, Korn provided the bank with statements of bank accounts that he claimed to own. However those statements also contained falsehoods – including one statement in which the defendant claimed ownership of an account containing $50,000 in February 2008, when the account actually contained $1.00 and belonged to someone else. The loan and payments on the credit card went into default, and Fifth Third Bank lost more than $2,400,000.
Prior to March 2009, for both Batavia Nursing Home and Fairchild Manor Nursing Home, Korn used a service to collect and pay over employment taxes owed. However, beginning in March 2009, the defendant ceased using the service and subsequently intentionally failed to pay to the IRS employment taxes owed for the second, third and fourth quarters of 2009. Instead of paying the taxes owed to the IRS, Korn spent the funds on personal expenses including restaurants, hockey tickets, jewelry, and to pay his children’s college tuition.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
Former Oakland County Reserve Deputy Sentenced for Unlawful Distribution of OpioidsRead the Press Release
A former Oakland County reserve deputy sheriff will spend 49 months in prison for the unlawful distribution of prescription opioids, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Special Agent in Charge Timothy J. Plancon, U.S. Drug Enforcement Administration, Detroit Field Division and Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Division.
Daniel Vasquez, 61, was sentenced yesterday by U.S District Court Judge Paul D. Borman after pleading guilty to possession with the intent to distribute and distribution of controlled substances – namely the Schedule II opioid Oxycodone.
The case revealed that Vasquez, a former reserve Oakland County Sheriff’s Deputy, would receive 1,500 Oxycodone pills per month in addition Hydrocodone and other medication. Instead of taking the medication as prescribed, he would sell the pills in the community. Over the course of five years, he distributed more than 30,000 Oxycodone pills on the street. Oxycodone is one of the most diverted controlled substances in our area. It is extremely powerful, addictive and in the opioid class that is easily abused, and can lead to addiction and eventual heroin use. Michigan has seen devastating statistics relating to opioid drug overdoses in the last five years.
“The vast majority of Michigan’s reserve police officers are outstanding public servants, but unfortunately, this one individual decided to violate his oath by selling deadly pills and harming the very community that he was tasked to protect,” stated United States Attorney Schneider.
"When an officer betrays his oath by selling highly addictive opioids to vulnerable members of our community, it undermines trust in law enforcement and puts the public at risk. The facts of this case are especially troubling to those of us in law enforcement. It should be noted, however, that Mr. Vasquez's actions do not represent the hundreds of dedicated men and women of the Oakland County Sheriff's Office who work tirelessly to keep illegal drugs off the streets of Oakland County," said FBI Special Agent in Charge Slater. "The FBI remains committed to working alongside the OCSO and our many federal, state and local partners to prosecute anyone who illegally distributes narcotics and contributes to the epidemic of opioid addiction in Michigan."
“The sentencing of this former reserved deputy sheriff in no way diminishes the hard work provided by so many reserve deputy officers on a daily basis. This individual willingly participated in the destruction that drug trafficking brings to our neighborhoods. Make no mistake, when any member of the law enforcement community crosses the line and becomes a drug trafficker, the DEA and our law enforcement partners will be relentless in bringing them to justice."
The case was investigated by agents and task force officers of the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Brandy R. McMillion. McMillion serves as the Opioid Fraud Abuse and Detection Unit Prosecutor for the Eastern District of Michigan and is dedicated solely to prosecuting defendants contributing to the nation’s opioid epidemic. The Eastern District of Michigan is one of the twelve districts included in this Department of Justice initiative.
Former Lieutenant in the Mayes County Sheriff’s Office Pleads Guilty to Stealing Drug EvidenceRead the Press Release
A former Mayes County Sheriff’s Office lieutenant pleaded guilty today to stealing methamphetamine that had officially been seized as evidence during multiple investigations, announced U.S. Attorney Trent Shores.
Brett Alan Mull, 48, of Pryor, was convicted of tampering with or destruction of evidence and acquiring controlled, dangerous substances by misrepresentation, fraud, forgery or deception. U.S. District Chief Judge Gregory K. Frizzell accepted the plea. During his hearing, Mull admitted to removing evidence envelopes containing methamphetamine before it was booked into the property room during his time as supervisor of the narcotics unit. In the plea agreement, he further admitted to stealing the drug to support his methamphetamine addiction.
“Law enforcement officers should inspire trust and confidence in the communities they serve and protect,” said U.S. Attorney Shores. “Former Mayes County Deputy Brett Mull violated that trust when he abused his position to obtain and use methamphetamine that had been collected as evidence during drug investigations. Now he will face the consequences of his choices.”
Mull was originally charged in a Criminal Complaint filed in U.S. District Court on Oct. 11, 2018. According to the complaint, investigators discovered Oklahoma State Bureau of Investigation evidence submittal envelopes during a search of his residence, on July 3, 2018. The envelopes appeared to have previously contained methamphetamine seized during Mayes County law enforcement operations. The complaint alleges that Mull admitted to officers that he had removed the evidence from the Criminal Investigations Unit, which he supervised, for his own personal use.
Mull remains on release pending his sentencing, scheduled for July 3, 2019.
The FBI conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case
Former HUD Employee Sentenced for Providing Non-Public Information to Government ContractorRead the Press Release
WASHINGTON – LaFonda Lewis, 57, a former supervisory contract oversight specialist with the U.S. Department of Housing and Urban Development (HUD), was sentenced today to a year and a day in prison for providing non-public information about pending HUD contracts to a business owner in exchange for money, tickets to sporting events, and other things of value.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Reginald O. Sessoms, Special Agent in Charge, Special Investigations Division, HUD Office of Inspector General.
Lewis, of Lusby, Md., pled guilty in January 2019, in the U.S. District Court for the District of Columbia., to violating the Procurement Integrity Act. She was sentenced by the Honorable Randolph D. Moss. As part of her plea agreement, she is required to pay a forfeiture money judgment of $23,055, representing the value of the gifts and benefits she received. Additionally, following her prison term, she will be placed on two years of supervised release.
The charge involved Lewis’s dealings with Charles Thomas, the sole owner and president of a company in Maryland that provided technology services to agencies of the federal government and educational services to public school children in the Washington, D.C. area.
According to a statement of offense signed as part of her plea, between 2012 and 2015, Lewis provided Thomas with non-public information about pending HUD contracts in exchange for Thomas providing her with money, tickets to sporting events, designer handbags, and other items. The information that Lewis provided had not been disclosed publicly and gave Thomas’s company an unfair advantage in competing for contracts.
In a related prosecution, another former HUD employee, Kevin Jones, pled guilty on March 14, 2019, to a federal bribery charge stemming from a similar scheme in which he provided non-public information about pending HUD contracts to Thomas in exchange for tickets to sporting events, travel, and cash. Jones, 48, of Laurel, Md., was a former contract oversight specialist. He is to be sentenced on June 13, 2019. Jones has agreed to pay a forfeiture money judgment of $50,302, representing the value of the gifts that he received in the scheme.
Thomas, 45, of Lusby, Md., pled guilty in May 2018 to one count of conspiracy to commit bribery and two counts of conspiracy to pay gratuities and violate the Procurement Integrity Act. He is awaiting sentencing. In his plea, Thomas admitted to paying bribes to the two HUD employees as well as to an employee of the District of Columbia Office of the State Superintendent of Education (OSSE) in return for payments on contracts involving that agency.
The former District of Columbia employee, Shauntell Harley, 49, of Washington, D.C., was sentenced in July 2018 to 56 months in prison for accepting bribes in return for clearing the way for payments to be made to Thomas and another businessman.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Special Agent in Charge Sessoms commended the work of those who investigated the case from the FBI’s Washington Field Office and HUD’s Office of the Inspector General.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joshua Fein and former Paralegal Specialist Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.
Former Chief Financial Officer at Publicly Traded Transportation Company Charged with $245 Million Securities and Accounting Fraud Scheme; Two Other Defendants Previously Indicted Charged with Additional OffensesRead the Press Release
The former chief financial officer (CFO) of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded transportation and trucking company formerly headquartered in Cudahy, Wisconsin, was charged in a superseding indictment unsealed today for his alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $245 million in shareholder value. The superseding indictment also includes additional charges against two former Roadrunner finance executives for their roles in the scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin, Regional Special Agent in Charge Andrea Kropf of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Field Office made the announcement.
Peter R. Armbruster, 60, of Milwaukee, Wisconsin, was charged in a superseding indictment filed in the Eastern District of Wisconsin with various offenses. Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin, and both of whom were charged in the initial indictment in this case filed in June 2018, were also charged in the superseding indictment with various offenses. All three defendants were charged with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; two counts of false entries in a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; two counts of securities fraud; and two counts of wire fraud. Armbruster and Wogsland were charged with one additional count of securities fraud. Armbruster is also charged with one count of bank fraud; two counts of false statements to a public company’s accountants; one count of false entries in a public company’s books, records, and accounts; and two counts of wire fraud. Wogsland is also charged with two counts of false statements to a public company’s accountants and one count of insider trading. Naggs is also charged with one count of false entries in a public company’s books, records and accounts.
Armbruster made his initial appearance this afternoon before U.S. Magistrate Judge David E. Jones of the Eastern District of Wisconsin and was released on bond.
“According to the charges, former CFO Peter Armbruster, and former executives Mark Wogsland and Bret Naggs, used sham accounting entries, misstated accounts, and other means to conceal millions of dollars of bad debts and other financial problems from Roadrunner’s shareholders, regulators, lenders, and the investing public,” said Assistant Attorney General Benczkowski. “This pattern of deception allegedly caused investors to lose hundreds of millions of dollars. The Department of Justice and our law enforcement partners are committed to protecting investors and safeguarding the integrity of our markets by holding culpable executives to account for securities and accounting fraud.”
“Our economic vitality depends upon shareholders having accurate information about publicly traded companies,” said U.S. Attorney Krueger. “This case demonstrates the Department of Justice’s commitment to protecting the integrity of securities markets.”
“Securities fraud is not a victimless crime. In this case, shareholders lost over $240 million,” said FBI Acting Special Agent in Charge Sutphin. “These types of crimes remain a high priority for the FBI. Perpetrators who mislead investors by manipulating financial data to falsely inflate business performance will be held accountable and face justice for their crimes.”
“Rooting out individuals and companies involved in transportation-related corruption and corporate fraud schemes intent on providing false or misleading information to the Federal government remains a high priority for the U.S. Department of Transportation Office of Inspector General,” said DOT-OIG Regional Special Agent in Charge Kropf. “Today’s superseding indictment reinforces that, working with our law enforcement and prosecutorial partners, these blatant acts of fraud and deception will not go unnoticed or be tolerated.”
Armbruster was Roadrunner’s CFO. Wogsland and Naggs are both former controllers for Roadrunner’s Truckload operating segment, and Wogsland also served as director of accounting for Roadrunner’s Truckload operating segment. The superseding indictment alleges that between 2013 and 2017, Armbruster, Wogsland, Naggs and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition. Beginning as early as 2014, Armbruster, Wogsland, Naggs and their co-conspirators allegedly concealed millions of dollars in misstated accounts, including uncollectible debts and receivables and assets with little to no value. As alleged in the superseding indictment, Armbruster, Wogsland, Naggs and their co-conspirators determined that most, if not all, of these accounts needed to be written off and even developed a plan to write off or “clean up” some of these misstated accounts in 2015, but did not write off the vast majority of the accounts. According to the allegations, these misstated accounts remained on Roadrunner’s balance sheet until they resurfaced more than two years later after they had grown to between $25 and $50 million, but Armbruster nevertheless again certified that Roadrunner’s financial statements were accurate.
The superseding indictment alleges that, in addition to concealing misstated accounts, Armbruster and his co-conspirators engaged in so-called “cushion” accounting whereby they selectively reduced liability accounts in order to create a “cushion” of funds that the conspirators used to fraudulently inflate Roadrunner’s financial performance in later quarters. The superseding indictment also alleges that, as part of the scheme, Armbruster and his co-conspirators delayed recognizing expenses, including accruals for annual bonuses and expenses for bad debt, and otherwise misstated accounts, in order to fraudulently inflate Roadrunner’s financial performance. The superseding indictment further alleges that Armbruster, Wogsland, Naggs and their co-conspirators concealed their scheme and misled Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition.
According to the superseding indictment, in January 2017, Roadrunner announced for the first time that it would be restating its previously reported financial results. Three trading days following the announcement, the price of Roadrunner’s shares dropped from $11.74 to $7.54 per share, causing a loss in shareholder value of more than $160 million. In early 2018, Roadrunner issued restated financial results for 2014 through the third quarter of 2016, acknowledging that it had identified material accounting errors resulting from material weaknesses and management override of internal controls. Three trading days after announcing the restated financial results, Roadrunner’s share price further dropped from $7.14 to $4.90, causing an additional loss in shareholder value of more than $85 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DOT OIG’s Chicago Office and the FBI’s Milwaukee and Atlanta Field Offices are investigating the case. Securities and Financial Fraud Unit Principal Deputy Chief Henry Van Dyck and Trial Attorneys Caitlin Cottingham and David Stier of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Eastern District of Wisconsin. The Securities and Exchange Commission also provided assistance in this matter.
Former Alabama Correctional Sergeant Pleads Guilty to Assaulting InmatesRead the Press Release
WASHINGTON – The Department of Justice announced that former Alabama Department of Corrections (ADOC) Sergeant Ulysses Oliver Jr., 44, pleaded guilty yesterday in federal court to assaulting two handcuffed inmates at ADOC’s Elmore Correctional Facility.
According to the guilty plea, Oliver went to an observation room holding the two inmate victims, who were both handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately 19 times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately 10 times. During the assaults, the victims were handcuffed, and were not resisting or posing a threat. After, Oliver returned to the observation room where the victims were held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face.
Later, Oliver wrote a false written report concerning the assaults, stating that he only struck the victims on their legs with his baton, when he actually struck the victims about their bodies, and also hit the victims with his hands and feet. Oliver’s report also falsely stated that he struck the victims until he was told by another officer to stop, when in truth the other officer had not ordered Oliver to stop.
“Any abuse of power and use of violence by a correctional officer will not be tolerated,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to enforce our nation’s laws and will prosecute those who break the public trust and violate the civil rights of individuals in their custody.”
“Correctional officers have an incredibly difficult job,” stated U.S. Attorney Louis V. Franklin Sr. from the Middle District of Alabama. “Although a vast majority of them serve with honor, valor, and bravery, cases like this make their jobs more challenging and dangerous. When officers abandon their oath to protect and serve, and engage in conduct that is criminal, they too must be held accountable. This office is committed to prosecute anyone who violates the law."
"Conduct like that of Mr. Oliver will not be tolerated and the Department of Corrections will work with all of its law enforcement partners to ensure that such behavior is thoroughly investigated and appropriately prosecuted," said Alabama Commissioner of Corrections Jefferson S. Dunn.
Oliver faces a statutory maximum sentence of 20 years in prison.
This case is being investigated by the FBI’s Mobile Division and ADOC’s Investigations and Intelligence Division with the assistance from the Alabama Commissioner of Corrections. It is being prosecuted by Assistant U.S. Attorney Denise Simpson of the Middle District of Alabama, and Special Legal Counsel Mark Blumberg, Special Litigation Counsel Jared Fishman, and Trial Attorney David Reese of the Civil Rights Division.
Foreign National Indicted for Allegedly Receiving and Possessing Child Pornography and Possessing Counterfeit Green CardRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that a Federal grand jury indicted Orlando Baires-Cartagena for receiving and possessing child pornography and possessing a counterfeit Permanent Resident Card. A Permanent Resident Card, also known as a Green Card, is issued as proof that a foreign national is authorized to live and work in the United States. Baires-Cartagena was arrested and made his initial appearance on April 3, 2019, before U.S. Magistrate Judge John T. Rodgers in Federal Court in Spokane, Washington. Judge Rodgers ordered Baires-Cartagena detained pending trial.
According to allegations in the child pornography Indictment, Baires-Cartagena received images depicting minor and prepubescent children engaging in sexually explicit conduct and possessed visual depictions of child pornography, including images of prepubescent minors and minors who had not attained the age of twelve years old engaging in sexually explicit conduct. If convicted, the receipt of child pornography charge carries a maximum penalty of not less than 5 years nor more than 20 years imprisonment, a $250,000 fine, a term of court supervision of not less than 5 years nor more than life, and a special assessment of $5,000. The possession of child pornography charge carries a maximum penalty 20 years imprisonment, a $250,000 fine, up to a lifetime term of court supervision, and a special assessment of $5,000. Baires-Cartagena also would be required to register as a sex offender.
According to the allegation in the immigration fraud Indictment, Baires-Cartagena possessed a counterfeit Permanent Resident Card in the name of “Orlando Baires” that he knew to be forged, counterfeited and falsely made. If convicted, Baires-Cartagena faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and 3 years of court supervision after release.
Joseph H. Harrington said, “These Indictments demonstrate the United States Attorney’s Office for the Eastern District of Washington is committed to pursuing aggressively those accused of child pornography offenses and to protecting the integrity of the immigration process -- possessing a counterfeit immigration document circumvents the immigration laws and undermines confidence in the system. The charges contained in the Indictments are merely allegations. Baires-Cartagena is presumed innocent, as is any defendant in a criminal case, until proven guilty beyond a reasonable doubt in a court of law.”
The child pornography investigation was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The charges contained in the Indictments are the result of an investigation by the Federal Bureau of Investigation and Southeast Regional ICAC Task Force, the United States Department of Homeland Security, United States Border Patrol, Homeland Security Investigations, and Moses Lake Police Department. The cases are being prosecuted by James Goeke and Matthew Duggan, Assistant United States Attorneys for the Eastern District of Washington.
Final Defendant Sentenced in Major Elmira Heroin 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 Scott Washington, a/k/a Body, a/k/a Addy, 31, of Elmira, NY, who was convicted of conspiracy to possess with intent to distribute 100 grams or more of heroin, was sentenced to serve 10 years in prison by Chief U.S. District Judge Frank P. Geraci, Jr. Washington was also ordered to forfeit a .40 caliber handgun and rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Washington and other members of the conspiracy were responsible for distribution of heroin obtained in Trenton, NJ that was transported to Wilkes-Barres, Pennsylvania, where the heroin was stored, processed, and packaged before being transported to Elmira, where it was sold through multiple distributors in the Elmira area.
On September 28, 2016, law enforcement officers arrested Washington, along with Israel Cedeno-Martinez, Mark Jones, Jr., Mark Jones, Sr., a/k/a Pimp Juice, a/k/a Juice, Marcel Jones, a/k/a Cell, a/k/a Bug, Andrew Woodhouse, a/k/a Woody, and Tanner Rios, a/k/a Ree, on federal narcotics conspiracy charges. That same day, officers raided numerous locations in Elmira, Wilkes-Barre, and Cedeno-Martinez’s residence in Trenton. During the course of the investigation, officers seized six handguns, numerous rounds of ammunition, paraphernalia for the processing and packaging of heroin, over $9,500 in U.S. currency, and over 600 bags of heroin packaged for street sale.
All seven defendants have been convicted and sentenced.The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, under the direction of Major Eric Laughton; the Elmira Police Department, under the direction of Chief Joseph Kane; the Chemung County District Attorney’s Office, under the direction of Weedon Whetmore; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in- Charge John B. Devito; the Elmira Heights Police Department, under the direction of Chief Robert N. Hauptman; the Horseheads Police Department, under the direction of Chief Thomas Stickler; and the Chemung County Sheriff’s Department, under the direction of Acting Sheriff William A. Schrom.
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Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the April 2019 Federal Grand Jury.
The following individuals have been charged with violations of United States law in an indictment returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Josue Abraham Alvarez-Marroquin. Reentry of Removed Alien. Alvarez-Marroquin, 30, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Nov. 12, 2013, near Dallas, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.
Earenest Grayson, Jr. Failure to Account for and Pay Over Payroll Taxes; Failure to File Corporate Income Tax Returns; Failure to File Individual Income Tax Returns. Grayson, Jr., 45, of Tulsa, is charged with 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. He allegedly failed to pay more than $300,000 in payroll taxes. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own income tax returns for the years 2013, 2014 and 2015. The U.S. Department of Treasury, Internal Revenue Service/Criminal Investigation is the investigative agency.
Gabriel Wenseslado Guerra-Gaytan. Reentry of Removed Alien. Guerra-Gaytan, 27, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Aug. 15, 2016, at or near Laredo, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.
Jose Eduardo Gutierrez-Sanchez. Reentry of Removed Alien. Gutierrez-Sanchez, 27, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Aug. 9, 2012, at or near Brownsville, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.
John Michael McIntosh. Obstruct, Delay and Affect Commerce by Robbery; Carry, Use and Brandish a Firearm During and in Relation to a Crime of Violence. McIntosh, 21, of Tulsa, is charged with both obstructing, delaying and affecting commerce by robbery and carrying, using and brandishing a firearm during a crime of violence. The charges are related to five separate robberies of Sand Springs and Tulsa businesses in February 2019. McIntosh is alleged to have robbed a Kentucky Fried Chicken and a QuickTrip located in Sand Springs, as well as a QuickTrip, Waters Liquor Store and Liquor Mart located in Tulsa. The FBI and Sand Springs and Tulsa Police Departments are the investigative agencies.
Gilberto Melendez-Rodriguez. Reentry of Removed Alien. Melendez-Rodriguez, 41, of Tulsa, is charged with having returned to the United States unlawfully after being deported on March 28, 2011, at or near Laredo, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.
Julian Trujillo Morales and Victor Ybarra Robles, Jr. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine. Morales, 29, and Robles, 53, both of Dallas, Texas, are charged with conspiring to distribute and to possessing with intent to distribute 500 grams or more of a substance containing a detectable amount of methamphetamine and with possessing with intent to distribute 500 grams or more of methamphetamine. Robles is further charged with knowingly and intentionally possessing cocaine. The charges resulted from a traffic stop in Pryor. The Pryor Police Department and Drug Enforcement Administration are the investigative agencies.
Jesus Parra-Lopez. Reentry of Removed Alien. Parra-Lopez, 41, is charged with having returned to the United States unlawfully after being deported on July, 19 2016, at Del Rio, Texas. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) is the investigative agency.
Eric Eugene Royer. Felon in Possession of Firearm. Royer, 43, of Seligman, Missouri, is charged with being a felon in possession of a Smith & Wesson, .38 special caliber revolver and five rounds of associated ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Nowata County Sheriff’s Office and Nowata Police Department are the investigative agencies.
Feliciano Villarruel-Cabre. Reentry of Removed Alien; Aggravated Identity Theft; Failure to Register as a Sex Offender. Villarruel-Cabre, 44, of Tulsa, is charged with having returned to the United States unlawfully after being deported on Sept. 11, 2007, at Hidalgo, Texas. He is also charged with aggravated identity theft. Villarruell-Cabre knowingly possessed, without lawful authority, the identification of another person. Finally, he is charged with failure to register as a sex offender. The U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI); Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO), and the U.S. Marshals Service are the investigative agencies.
Fayetteville Man Sentenced to More Than 29 Years Following Attempt to Illegally Obtain FirearmsRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III sentenced ALBERT VINES, 29, of Fayetteville to 326 months’ imprisonment, followed by 5 years of supervised release. Mr. Vines was also on federal supervised release for a previous firearm conviction when he committed the instant offenses for which he was sentenced today. Judge Dever revoked Mr. Vines’ supervised release and sentenced him to 30 months in BOP consecutive to his 326 month sentence.
On December 11, 2018, VINES pled guilty to one count of Brandishing a Firearm in Furtherance of a Crime of Violence and one count of Possession with Intent to Distribute Quantities of Marijuana, Cocaine Base, and Cocaine.
On April 20, 2017, officers with the Fayetteville Police Department (FPD) responded to a robbery call at Tony's Mart located on Ramsey Street in Fayetteville. Upon arrival, the officers made contact with the owner of the business who reported that an individual, later identified as VINES, entered the business wearing all black clothing and asked the owner if there was a fair in town. VINES then brandished a firearm, pointed it at the owner’s face, and stated, "give me the money.” The owner went to the cash register and withdrew $600 which he then gave to VINES. VINES also asked the owner for his firearm, which was hidden under the cash register. The owner handed VINES his Smith and Wesson .40 caliber firearm and VINES subsequently fled from the store on foot.
On May 25, 2017, investigators with the Raleigh Police Department (RPD) attempted to conduct a traffic stop of a vehicle being driven by VINES due to having knowledge that VINES’ driver’s license was suspended. VINES refused to stop his vehicle and drove away at a high rate of speed until stopping behind a building. Once stopped, VINES and an unidentified passenger fled on foot. VINES ran down Huntleigh Drive and was able to successfully elude apprehension. Investigators returned to VINES’ vehicle and detected a strong odor of marijuana emanating from within the vehicle. A subsequent search of the vehicle revealed 13.71 grams of marijuana, 7.08 grams of cocaine base, 1.81 grams of cocaine, a handgun holster, 32 rounds of .40-caliber ammunition, a marijuana grinder, 2 digital scales, and VINES’ North Carolina identification card.
On June 4, 2017, investigators with the RPD were dispatched to a residence on Huntleigh Drive in reference to a handgun being found in the caller’s backyard. The residence was in the same general vicinity where VINES fled on foot on May 25, 2017. The firearm was confirmed to be the same firearm which was stolen from the owner of Tony’s Mart during the robbery on April 20, 2017.
On June 6, 2017, VINES was arrested and released by the RPD on charges related to his May 25, 2017, conduct. On June 27, 2017, he was arrested by the FPD on charges related to his April 20, 2017, conduct.
Based upon the investigation, VINES brandished a firearm during a crime of violence on April 20, 2017. On May 17, 2017, the defendant possessed a firearm while possessing with the intent to distribute 13.71 grams of marijuana, 7.08 grams of cocaine base, and 1.81 grams of cocaine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Fayetteville Police Department, Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Former Chief Financial Officer at Publicly Traded Transportation Company Charged with $245 Million Securities and Accounting Fraud Scheme; Two Other Defendants Previously Indicted Charged with Additional OffensesRead the Press Release
WASHINGTON – The former chief financial officer (CFO) of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded transportation and trucking company formerly headquartered in Cudahy, Wisconsin, was charged in a superseding indictment unsealed today for his alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $245 million in shareholder value. The superseding indictment also includes additional charges against two former Roadrunner finance executives for their roles in the scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin, Regional Special Agent in Charge Andrea Kropf of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Field Office made the announcement.
Peter R. Armbruster, 60, of Milwaukee, Wisconsin, was charged in a superseding indictment filed in the Eastern District of Wisconsin with various offenses. Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin and both of whom were charged in the initial indictment in this case filed in June 2018, were also charged in the superseding indictment with various offenses. All three defendants were charged with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; two counts of false entries in a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; two counts of securities fraud; and two counts of wire fraud. Armbruster and Wogsland were charged with one additional count of securities fraud. Armbruster is also charged with one count of bank fraud; two counts of false statements to a public company’s accountants; one count of false entries in a public company’s books, records, and accounts; and two counts of wire fraud. Wogsland is also charged with two counts of false statements to a public company’s accountants and one count of insider trading. Naggs is also charged with one count of false entries in a public company’s books, records and accounts.
Armbruster made his initial appearance this afternoon before U.S. Magistrate Judge David E. Jones of the Eastern District of Wisconsin and was released on bond.
“According to the charges, former CFO Peter Armbruster, and former executives Mark Wogsland and Bret Naggs, used sham accounting entries, misstated accounts, and other means to conceal millions of dollars of bad debts and other financial problems from Roadrunner’s shareholders, regulators, lenders, and the investing public,” said Assistant Attorney General Benczkowski. “This pattern of deception allegedly caused investors to lose hundreds of millions of dollars. The Department of Justice and our law enforcement partners are committed to protecting investors and safeguarding the integrity of our markets by holding culpable executives to account for securities and accounting fraud.”
“Our economic vitality depends upon shareholders having accurate information about publicly traded companies,” said U.S. Attorney Krueger. “This case demonstrates the Department of Justice’s commitment to protecting the integrity of securities markets.”
“Securities fraud is not a victimless crime. In this case, shareholders lost over $240 million,” said FBI Acting Special Agent in Charge Sutphin. “These types of crimes remain a high priority for the FBI. Perpetrators who mislead investors by manipulating financial data to falsely inflate business performance will be held accountable and face justice for their crimes.”
“Rooting out individuals and companies involved in transportation-related corruption and corporate fraud schemes intent on providing false or misleading information to the Federal government remains a high priority for the U.S. Department of Transportation Office of Inspector General,” said DOT-OIG Regional Special Agent in Charge Kropf. “Today’s superseding indictment reinforces that, working with our law enforcement and prosecutorial partners, these blatant acts of fraud and deception will not go unnoticed or be tolerated.”
Armbruster was Roadrunner’s CFO. Wogsland and Naggs are both former controllers for Roadrunner’s Truckload operating segment, and Wogsland also served as director of accounting for Roadrunner’s Truckload operating segment. The superseding indictment alleges that between 2013 and 2017, Armbruster, Wogsland, Naggs and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition. Beginning as early as 2014, Armbruster, Wogsland, Naggs and their co-conspirators allegedly concealed millions of dollars in misstated accounts, including uncollectible debts and receivables and assets with little to no value. As alleged in the superseding indictment, Armbruster, Wogsland, Naggs and their co-conspirators determined that most, if not all, of these accounts needed to be written off and even developed a plan to write off or “clean up” some of these misstated accounts in 2015, but did not write off the vast majority of the accounts. According to the allegations, these misstated accounts remained on Roadrunner’s balance sheet until they resurfaced more than two years later after they had grown to between $25 and $50 million, but Armbruster nevertheless again certified that Roadrunner’s financial statements were accurate.
The superseding indictment alleges that, in addition to concealing misstated accounts, Armbruster and his co-conspirators engaged in so-called “cushion” accounting whereby they selectively reduced liability accounts in order to create a “cushion” of funds that the conspirators used to fraudulently inflate Roadrunner’s financial performance in later quarters. The superseding indictment also alleges that, as part of the scheme, Armbruster and his co-conspirators delayed recognizing expenses, including accruals for annual bonuses and expenses for bad debt, and otherwise misstated accounts, in order to fraudulently inflate Roadrunner’s financial performance. The superseding indictment further alleges that Armbruster, Wogsland, Naggs and their co-conspirators concealed their scheme and misled Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition.
According to the superseding indictment, in January 2017, Roadrunner announced for the first time that it would be restating its previously reported financial results. Three trading days following the announcement, the price of Roadrunner’s shares dropped from $11.74 to $7.54 per share, causing a loss in shareholder value of more than $160 million. In early 2018, Roadrunner issued restated financial results for 2014 through the third quarter of 2016, acknowledging that it had identified material accounting errors resulting from material weaknesses and management override of internal controls. Three trading days after announcing the restated financial results, Roadrunner’s share price further dropped from $7.14 to $4.90, causing an additional loss in shareholder value of more than $85 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DOT OIG’s Chicago Office and the FBI’s Milwaukee and Atlanta Field Offices are investigating the case. Securities and Financial Fraud Unit Principal Deputy Chief Henry Van Dyck and Trial Attorneys Caitlin Cottingham and David Stier of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Eastern District of Wisconsin. The Securities and Exchange Commission also provided assistance in this matter.
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Executive Director and CEO of Sponsor Organization and Owner of Catering Company Guilty of Participating in a Multi-Million Dollar Scheme to Defraud Food Program for Underprivileged South Florida ChildrenRead the Press Release
Sandra Ruballo, 47, of Davie, Florida, and Carlos Andres Montoya, 48, of Miramar, Florida, participated in a conspiracy to defraud the federally funded Child Care Food Program, which provides free and reduced meals to underprivileged children at hundreds of South Florida daycare centers. As part of the scheme, the conspirators falsified paperwork, entered into various kickback arrangements, manipulated the catering contract bid process, and inflated annual budgets, all in order to receive millions of dollars of falsely and fraudulently obtained federal funds for their own personal use and benefit.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture (USDA), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
On March 29, 2019, following a four-week jury trial, Montoya was convicted of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of federal program bribery, in violation of Title 18, United States Code, Section 666(a)(2) (Case No. 18-CR-20393-Cooke(s)).
On February 27, 2019, co-defendant Ruballo pleaded guilty, without a plea agreement, to all counts of the superseding indictment, including: one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; three counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and four counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i).
U.S. District Judge Marcia G. Cooke is scheduled to sentence Ruballo on May 8, 2019 at 10:30 a.m. and Montoya on June 5, 2019 at 10:00 a.m. As to the conspiracy, as well as substantive wire fraud and money laundering counts, each defendant faces a maximum statutory sentence of 20 years’ imprisonment. As to the bribery count, Montoya faces an additional maximum statutory sentence of 10 years’ imprisonment.
According to court documents and evidence presented at trial, the purpose of the Child Care Food Program (CCFP) is to provide nutritious meals and snacks for underprivileged, low-income children in daycare centers across Florida, including within the Southern District of Florida. As such, the CCFP provides children classified at or below a certain family income level with daily meals and snacks, at a free or a reduced rate. The government pays vastly higher reimbursement rates for children classified as “free,” as opposed to “non-needy,” for example, up to nine times more per meal. Daycare centers often contract with a sponsoring organization to process and submit their program paperwork. In those situations, the sponsoring organization enters into an agreement to operate the CCFP, and assumes administrative and financial responsibility on behalf of the center. For many children in the CCFP, the subsidized food served at daycare centers is their only source of food each day.
Ruballo was the owner and operator of Highland Food Resources, Inc. (HFR), a sponsoring organization of more than two hundred child daycare centers that participated in the CCFP, covering the geographic area from Key West to West Palm Beach and across the State to Florida’s West Coast. In this role, HFR processed paperwork and electronically submitted monthly reimbursement claims on behalf of such centers. Reimbursement was calculated on a sliding scale, with the largest amount allocated for children at the daycare centers who were classified as free, then reduced, then non-needy meal recipients. Once HFR was reimbursed with federal funds, they paid the daycare centers, less HFR’s fee, which is a percentage of the total monthly meal reimbursements. Thus, the size of HFR’s payment was driven, in part, by the number of meals claimed by daycare centers that are multiplied by a higher reimbursement rate for the free and reduced meals/snacks.
On behalf of HFR, Ruballo was responsible for soliciting meal catering companies and awarding contracts through a competitive, anonymous bidding process.
Montoya was the owner and operator of Montoya Holdings, Inc., d/b/a Healthy Children Catering and Pelota Café and Pizzeria. The evidence at trial showed that Montoya, Ruballo, and others conspired to rig the catering bid process and award contracts to Montoya from 2012 to 2016. As a result of the bid-rigging scheme, Montoya Holdings received lucrative contracts, and was paid more than $14 million in federal funds, via HFR, which were supposed to be used for providing nutritious meals to children at daycare centers in South Florida.
Ruballo, Montoya and others conspired to rig the catering bid process through materially false and fraudulent representations to the CCFP. For a period of five years, Ruballo agreed to accept kickbacks in exchange for awarding catering contracts to Montoya Holdings at participating CCFP centers that used HFR as a sponsoring organization. During the course of the scheme, the kickbacks added up to hundreds of thousands of dollars. Montoya and co-conspirators withdrew more than $1.6 million in cash during the conspiracy, and hundreds of thousands of dollars of cash, in turn, were deposited into accounts controlled by Ruballo – including into an account for Ruballo’s husband’s purported mobile car wash business.
Montoya’s bribes bought him protection from regulating agencies, most notably, the Florida Department of Health, and ensured that HFR and Ruballo did not terminate contracts despite repeated complaints about spoiled food. Indeed, the evidence showed that Ruballo and other employees at HFR, at Ruballo’s direction, created falsified reports about other caterers and submitted them to the Department of Health in an attempt to detract attention from Montoya when investigators became suspicious.
After Montoya Holdings caused a staph-induced foodborne illness outbreak in November 2016, affecting more than 140 preschool children in Miami-Dade and Broward Counties, the Department of Health and regulators ultimately banned Montoya Holdings from participating in the CCFP. Despite this prohibition, the bribery continued February 2017, Montoya paid a $160,000 bribe to Ruballo, which the co-conspirators attempted to disguise as a “donation” or “settlement.”
Montoya failed to report more than $27 million in income to the IRS for Montoya Holdings from 2013-2016. Evidence at trial also showed that he used the proceeds of the crime to fund personal expenditures, including visits to the Seminole Hard Rock Casino, a strip club, homes, cars, and jewelry.
Ruballo and other co-conspirators also falsified paperwork for children enrolled at daycare centers in order to qualify more kids for free and reduced meals under the CCFP. This fraudulent paperwork was used as the basis for inflated monthly reimbursement claims that Ruballo submitted to the program, for which HFR received reimbursement from the CCFP.
Ruballo falsely and fraudulently inflated the HFR budget by adding non-existent companies and employees to the budget, thereby deceiving the Department of Health and USDA, to illegally obtain additional program funds. In total, Ruballo caused a loss to the CCFP of at least $22 million.
A co-conspirator, Yudy Miranda, pleaded guilty in connection with the wire fraud conspiracy (Case No. 18-CR-20040) and was sentenced to 84 months in prison by U.S. District Judge Jose E. Martinez. Assistant U.S. Attorney Anne McNamara was the lead prosecutor in that case.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI, USSS, USDA and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Daniel J. Marcet.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Eleven Muskogee Individuals Indicted in Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Muskogee residents Christopher Michael Whitaker Sr. a/k/a “Unc”, age 44; Devin Trevon Whitaker, age 19; Torrell Dshaun Bogar a/k/a “T Real”, age 21; Aaron Oneal Bogar a/k/a Aaron Oneal Wilson, a/k/a “AB”, age 19; Drew Alexander Ragsdale a/k/a “Drew Down”, age 21; Jason Douglas Lee a/k/a “J Rock”, a/k/a “Douglas Fresh”, age 33; Cornelious Joshua Jones a/k/a “Corn”, age 30; Jasmine Dazha McCoy, age 23; Alison Rachel Morgan, age 28; Derrick Christopher Segue, age 26; and Klawaun Lynell Sutton a/k/a “O.G.G.”, age 38, were each indicted for Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years imprisonment, and up to a $10,000,000 fine, or both. The same investigation that lead to these indictments also lead to state charges being filed against an additional 29 defendants by the Muskogee County District Attorney’s Office. Those defendants are charged with various drug-related and communications offenses.
The Indictment alleges that beginning on a date in June 2017, the exact date being unknown to the Grand Jury, and continuing until on or about the date of this Indictment, in the Eastern District of Oklahoma and elsewhere, C. Whitaker, Sr., Jones, D. Whitaker, T. Bogar, A. Bogar, Lee, Ragsdale, Sutton, Segue, McCoy, and Morgan, defendants herein, did willfully and knowingly combine, conspire, confederate, and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States.
In addition to Drug Conspiracy charges, Lee is charged with five counts of Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C), with punishment ranging from not less than 10 years imprisonment to not more than life imprisonment, up to a $10,000,000.00 fine, or both. Lee is also charged with one count of 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, up to a $250,000.00 fine, or both.
D. Whitaker is additionally charged with two counts of Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, up to a $5,000,000.00 fine, or both.
Ragsdale is additionally charged with one count of 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, up to a $250,000.00 fine, or both.
A. Bogar and Jones are additionally charged with one count each of Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, up to a $5,000,000.00 fine, or both.
Jones, Sutton, Segue, McCoy, and Morgan are also additionally charged with Conspiracy to Tamper with a Witness, by conspiring to intimidate, threaten, and corruptly persuade another person with the intent to cause and induce any person to withhold testimony from an official proceeding, contrary to Title 18, United States Code, Sections 1512(b)(1), 1512(k), and 1512(j).
The charges arose from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Muskogee County Sheriff’s Office, and the Muskogee Police Department. Additionally, many different agencies that are members of the DEA High Intensity Drug Trafficking Areas Task Force (“HIDTA”) and the FBI Safe Trails Task Force played important roles in the investigation.
United States Attorney Brian J. Kuester said, “The United States Attorney’s Office values the working relationships that we have with our federal, state, local, and tribal law enforcement partners, and that they have with each other. Without those strong relationships and commitments to work together for the common cause of public safety, operations like this one would not be possible. I am thankful for the men and women from the nearly 20 agencies that participated in the investigation and today’s efforts to arrest those who have been charged.”
“Narcotics trafficking continues to have a devastating and horrific impact upon Oklahoma communities. The FBI and our law enforcement partners remain dedicated to identifying, investigating, and apprehending traffickers whose actions terrorize and threaten the safety and security of our communities.” Special Agent in Charge Kathryn Peterson of the FBI Oklahoma City Division.
“With the partnership the DEA has with the US Attorney’s Office and other law enforcement entities, we are able to conduct investigations where drug trafficking has been a nemesis to the community,” said DEA Special Agent in Charge Clyde E. Shelley, Jr. “We will continue our joint mission of making communities in Oklahoma safer.”
Oklahoma Bureau of Narcotics and Dangerous Drugs Control Director John Scully said, “The Oklahoma Bureau of Narcotics is thankful to be part of such a successful joint operation. When our law enforcement agencies share information and work together, it is a force multiplier to enable us to dismantle drug trafficking organizations and in this case, a drug trafficking organization with violent gang affiliation. Local, State, and Federal law enforcement authorities came together to ensure the streets of our communities are made safer today, by taking violent criminals off the streets and ending their spread of illegal drugs in our communities.”
Muskogee County Sheriff Rob Frazier said, “Today’s arrests represent the ongoing efforts of the Muskogee County Sheriff’s Office to make Muskogee County a safer place for all. Sheriff Frazier states his office will continue to combat drug distribution in Muskogee County through the strong alliances built with local, state and federal law enforcement during this year-long investigation.”District 15 District Attorney Orvil Loge said, “While certain types of drug possession charges have been reduced, minimized or decriminalized, punishment for major drug crimes has not. Drug traffickers, dealers and distributors make their living off providing drugs to our loved ones by feeding their drug addiction. They are the root of the addiction problems that have plagued our county for far too long. My office will ensure these individuals will receive the utmost attention and highest priority of prosecution.”
A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
Dunbar Man Sentenced to Five Years in Prison for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Tajae Dasjuan Mosley, 27, of Dunbar was sentenced today to 60 months in prison for conspiracy to distribute more than 50 grams of methamphetamine and being an unlawful drug user in possession of firearms. Stuart commended the efforts of the FBI, the West Virginia State Police, the Kanawha County Sheriff’s Department, and the United States Postal Inspection Service.
“Selling meth at an apartment complex in Dunbar,” said United States Attorney Mike Stuart. “Mosley’s conviction is good for Dunbar and the Kanawha Valley. We want the Mosleys’ of the world away from our families and our children. Any time we can take a meth dealer off the streets, it’s a win for our communities and for law enforcement.”
Mosley pled guilty in November 2018, admitting that from at least November 2017 until his arrest on July 10, 2018 he had been distributing methamphetamine in and around apartment complexes on Smoot Avenue and Howard Avenue in Dunbar. On July 10, 2018, police executed federal arrest warrants in several locations in Dunbar including Mosley’s residence where they seized three firearms. Mosley admitted that he was prohibited from possessing the firearms due to be a habitual drug user.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
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Dorchester Man Pleads Guilty to Counterfeiting ChargesRead the Press Release
BOSTON – A Dorchester man pleaded guilty yesterday in federal court in Boston to counterfeiting charges.
Franklin Perry, 53, pleaded guilty to one count of dealing in counterfeit currency and two counts of passing and uttering counterfeit obligations of the United States. Senior U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for July 9, 2019. Perry was arrested in August 2018 during a law enforcement sweep targeting federal drug, firearms and counterfeiting offenses.
On June 27, 2018, Perry sold 10 counterfeit $100 bills to an individual who was working with federal law enforcement officers. On July 25, 2018, Perry purchased items from a Target in Westwood, including an ink jet printer, with $500 in counterfeit $100 bills. That same day, he also purchased items at a Walmart in Walpole with $500 in counterfeit bills. All of the counterfeit bills were manufactured using an inkjet printer on real currency that had been bleached first.
On Aug. 23, 2018, five inkjet printers, cleaning solution, bleach, counterfeit currency and real currency were found during a search of Perry’s residence.
For each charge, Perry faces a sentence of no greater than 20 years in prison, five years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division, made the announcement. Assistant U.S. Attorney S. Theodore Merritt of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Pleads Guilty to Federal Charge in Hold-Ups of Two PharmaciesRead the Press Release
WASHINGTON – Daniel Evans, 21, also known as Daniel Jervan Shaw, pled guilty today to a federal charge stemming from a pair of broad daylight robberies carried out within a period of minutes last year at local pharmacies.
The plea was announced by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Evans, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to a charge of conspiracy to interfere with commerce by robbery (Hobbs Act). The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces an estimated range of 63 to 78 months in prison. The plea agreement also calls for Evans to pay a $4,161 forfeiture money judgment. The Honorable Amy Berman Jackson scheduled sentencing for June 14, 2019.
According to the government’s evidence, the first robbery took place at about 11:15 a.m. on March 18, 2018. That morning, three heavily-disguised assailants – wearing gloves and surgical-style masks – entered a CVS in the 9500 block of Georgia Avenue in Silver Spring, Md. The three went behind the pharmacy counter and demanded Percocet and Promethazine, ordering the pharmacist to open the safe. When the pharmacist did not comply, one of the assailants stunned him with a stun gun, causing him to lose consciousness. Unable to get into the safe, the three took some products from off the shelves and fled the scene.
The second robbery occurred at about 12:30 p.m., on the same date. This time, four heavily-disguised assailants – wearing masks – entered the Rite Aid in the 5600 block of Georgia Avenue NW in the District of Columbia. One remained at the entrance and brandished a stun gun at customers. The others went behind the pharmacy counter and demanded Percocet, ordering the pharmacist to open the safe. The pharmacist complied and the intruders fled the scene, taking pharmaceutical products, including Oxycodone and Hydrocodone, with them.
At about 1:35 p.m., a witness called 911 to report seeing an individual get out of a car and throw a bag over the side of the Pennsylvania Avenue Bridge and into the Anacostia River. MPD’s harbor unit found the bag as well as another bag inside it. The bags contained empty pharmaceutical pill bottles, discarded latex gloves and surgical-style masks. An employee from Rite Aid identified some of the bottles as having been stolen from the store that day.
Based on descriptions provided of the car seen at the bridge, MPD officers subsequently identified Evans as the vehicle’s likely owner and executed a search warrant at his residence in Southeast Washington on March 20, 2018. A search of the defendant’s bedroom uncovered a backpack containing $4,161, a hollowed-out VCR containing 12 rounds of ammunition, and plastic bags containing more than 600 tablets of Oxycodone and Hydrocodone. Evans was arrested and has remained in custody ever since. In his guilty plea, Evans acknowledged that he was part of the group that conspired to commit the robberies. No one else has been arrested in the case, and the investigation is continuing.
At the time of the robberies, Evans was on probation for conspiracy to rob a pharmacy in Maryland.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Ethan Carroll, Paralegal Specialist Catherine O’Neal, and Legal Assistant Peter Gaboton. Finally, they commended the efforts of Assistant U.S. Attorney C.B. Buente, who prosecuted the case.
DC Resident Sentenced to Prison for Role in Scheme to Obtain Fraudulent Tax RefundsRead the Press Release
A District of Columbia woman was sentenced to 54 months in prison for conspiring to defraud the United States and commit theft of public money and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed with the court, from approximately January 2008 through April 2012, Sheila Scutchings, along with others, engaged in a scheme to file false tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. Scutchings solicited the names and Social Security numbers of individuals for use in the preparation of those false tax returns. She then caused the fraudulent tax refund checks to be mailed to addresses under her control. Scutchings deposited these refund checks into her own bank account and the account of a co-conspirator, and exchanged others at check cashing businesses. In all, Scutchings caused the IRS to suffer a tax loss of over $1.8 million.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Scutchings to serve three years of supervised release and to pay $1,806,876.06 in restitution to the IRS. The Court entered a consent forfeiture order directing Scutchings to forfeit $673,551.15.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the Department of Treasury Office of Inspector General and IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas Koelbl and William Guappone, who prosecuted the case.
Crowley man sentenced to 10 years in prison for possessing child pornography on electronic devicesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that Kenneth Poullard, 44, of Crowley, Louisiana, was sentenced to 10 years in prison by Chief U.S. District Judge S. Maurice Hicks for possessing sexually explicit images of juveniles. He was also sentenced to 10 years of supervised release and must register as a sex offender.
When law enforcement agents learned that Poullard was downloading child pornography to electronic devices in his home, they searched his home on March 13, 2014 and found a desktop computer containing 50 images of child pornography. Poullard, who was present at the time of the search, admitted to intentionally searching for and downloading images and videos of child pornography. He pleaded guilty on October 17, 2018.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and Louisiana Attorney General’s Office High Technology Crime Unit conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Coraopolis Felon, 19, Pleads Guilty to Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA – An Allegheny County resident pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Kyle Reshaud Goosby, 19, of Coraopolis, Pennsylvania, pleaded guilty yesterday to all five counts in the Indictment against him before United States District Judge Cathy Bissoon.
In connection with the plea, the court was advised that on June 22, 2018, and June 23, 2018, in the Western District of Pennsylvania, Goosby distributed and possessed with intent to distribute quantities of heroin, fentanyl, and acetyl fentanyl (an analogue of fentanyl). Goosby, a felon, also admitted in connection with the plea that on June 23, 2018, and on June 24, 2018, he unlawfully possessed five firearms (four pistols and an AK-47 rifle) and ammunition. Federal law prohibits individuals with prior felony convictions from possessing firearms or ammunition. Finally, Goosby admitted that on June 23, 2018, he possessed firearms in furtherance of a drug trafficking crime.
Judge Bissoon scheduled sentencing for July 30, 2019, at 2:15 p.m. The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta and Special Assistant United States Attorney Chad R. Parks of the Beaver County District Attorney’s Office are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Beaver County Drug Task Force, and the Beaver County District Attorney’s Office conducted the investigation in this case. This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Combatants in Gun Battle Sentenced to Federal PrisonRead the Press Release
Two men who feloniously exchanged gunfire on Sioux City, Iowa’s Near-North Side have been sentenced to federal prison. One was sentenced today to more than six years in federal prison. Another was already sentenced on January 16, 2019 to more than a year in federal prison.
Donald Rashard Smith, Jr., 31, of Yankton, South Dakota, received his prison term of 77 months’ after a November 20, 2018, guilty plea to Possession of a Firearm as a Prohibited Person. Henry Lee Booth, Jr., 25, of Sioux City, Iowa received a prison term of 18 months’ after a June 28, 2018, guilty plea to Possession of a Firearm as a Prohibited Person and Possession with Intent to Distribute Methamphetamine.
Evidence at the plea hearings and sentencings revealed that in the early morning hours of October 29, 2017, Smith, a felon, and Booth, a drug user and dealer, engaged in a gunfight sparked by a romantic quarrel. Smith approached a residence used by Booth, and called out, Booth stepped outside of the house and engaged Smith. The two then repeatedly fired at each other in the residential neighborhood. At least one bullet entered the Booth’s residence, where a family, including young children, were sleeping.
When the Sioux City Police arrived the gun fight was over. The ensuing investigation revealed evidence of Booth’s drug use, drug dealing, and firearm possession. It was also determined Booth and Smith were the combatants.
Smith was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Smith was sentenced to 77 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Booth was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Booth was sentenced to 18 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison. Booth was released on the bond previously set and is to surrender to the United States Marshal.
The case was investigated by the USDOJ’s Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 18-CR-4030 and 18-CR-4026.
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Charleston Man Pleads Guilty to Distribution of Fentanyl MixtureRead the Press Release
CHARLESTON, W.Va. -- Christopher Tyler, 27, of Charleston, West Virginia entered a guilty plea today to a single count information charging him with distributing a mixture containing fentanyl and acetyl fentanyl announced United States Attorney Michael B. Stuart. Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT).
“Tragic. Fentanyl is so deadly. Last year, my office seized enough fentanyl to kill nearly the entire population of West Virginia,” said United States Attorney Mike Stuart. “We are working tirelessly to prosecute every fentanyl dealer we can find. We’ve lost to many of our mothers, fathers, sisters and brothers to this poison.”
Tyler admitted that on August 29, 2018, he exchanged text messages with a female in Charleston and agreed to sell her a substance they both believed to be heroin. The female came to Tyler’s house on Glover Street in Charleston to pick up the substance and gave Tyler money. Tyler and the female continued to text that evening into the earlier morning hours. The next morning when Tyler called the female’s phone, he was informed she had died. Toxicology testing done by the West Virginia Office of the Chief Medical Examiner confirmed that the substance Tyler sold to the female was a mixture of fentanyl, a Schedule II controlled substance, and acetyl fentanyl, a schedule I controlled substance.
Tyler faces up to 20 years imprisonment when he is sentenced on August 6, 2019 before Senior United States District Court Judge David A. Faber.
Assistant United States Attorney Monica D. Coleman is in charge of the investigation.
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