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28 March 2019
Major marijuana trafficker sentenced to federal prisonRead the Press Release
SAVANNAH, Ga: A California man who supplied large amounts of marijuana for a drug trafficking operation across the country has been sentenced to eight years in federal prison.
Daniel Martin, a/k/a “Whiteboy,” 38, of Roseville, Calif., was sentenced by United States District Court Judge William T. Moore Jr. to 96 months in prison and a $30,000 fine after pleading guilty to Conspiracy to Possess with Intent to Distribute and Conspiracy to Distribute 50 Kilograms or More of Marijuana, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his sentence, Martin will serve an additional three years of supervised release. There is no parole in the federal system.
Martin has two prior marijuana-related convictions in California and Ohio. He was one of 20 defendants indicted in August 2017 in Operation Five Hole, a multi-agency investigation targeting an extensive drug trafficking organization that used the sale of marijuana to finance cocaine purchases for further distribution. The traffickers shipped cash proceeds hidden in candy machines to hubs in Atlanta and California, with conspirators transporting large amounts of marijuana and cocaine to Savannah by U.S. Mail and in vehicles with hidden compartments.
During this investigation, agents seized eight firearms, more than 200 pounds of marijuana, multiple kilograms of cocaine, and hundreds of thousands of dollars in cash.
The ringleader of the drug trafficking organization was alleged to be Eugene “Poncho” Allen, who directed the distribution network using smuggled contraband phones despite currently serving a life sentence for murder in a Georgia state prison.
“From thousands of miles away in California, Daniel Martin took part in a scheme that distributed massive amounts of illegal narcotics here in our community,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “But distance isn’t a factor when investigators and prosecutors are determined to bring these merchants of misery to justice.”
“Despite prior felony convictions, Martin continued to plague our communities with drugs and the crimes that result from it,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “With eight years to spend in federal prison without the possibility of parole, hopefully he will come to the realization that his actions need to change. If not, rest assured the FBI and our law enforcement partners will go to every length to uphold the law.”
“It’s time we put a stop to those in prison from enriching themselves and others through violence and drugs,” said Eastern Judicial Circuit District Attorney Meg Heap. “I want to thank the U.S. Attorney Bobby Christine and his staff for their role in this conviction.”
Chatham-Savannah Counter Narcotics Team Director Everett Ragan said, “CNT prides itself in operations like this. It shows we stand united with our local, state, and federal partners to enforce drug laws and we are not restricted by borders.”
This investigation was conducted by the FBI, the Chatham County Narcotics Unit (CNT), the Savannah Police Department, the Chatham and Effingham County Sheriffs’ Offices, the U.S. Postal Inspection Service and the U.S. Marshals Service as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, which is the premier law enforcement unit whose task is to dismantle multi-jurisdictional drug trafficking organizations. The cases are being prosecuted by Special Assistant United States Attorney/Assistant District Attorney Noah Abrams, and Assistant United States Attorneys Greg Gilluly and Frank Pennington.
Lyric Shooter Sentenced to 10 years in PrisonRead the Press Release
OXFORD – A Memphis, Tennessee man was sentenced to 10 years in federal prison on Thursday afternoon for being a convicted felon in possession of ammunition. Desmond Bowen pled guilty to a federal firearms offense in November of 2018, stemming from his role in a shooting that occurred inside the Lyric Theater in Oxford, Mississippi on April 27, 2018. An announcement regarding Bowen’s sentence was made by Joseph Frank, Supervisory Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives in Oxford, and U.S. Attorney William C. Lamar.
Information presented as part of the case against Bowen showed that he attended a party at the Lyric Theater in April on Double Decker Weekend when a fight broke out inside the theater. Bowen fired a shot upward, which hit the underside of a balcony, ricocheted, and struck a patron. Officers collected a .25 auto caliber shell casing from the scene along with an attendee’s video, which depicted Bowen shooting a firearm.
In sentencing Bowen to the maximum possible ten year sentence along with three years of supervised release, U.S. District Judge Michael P. Mills called Bowen a “risk to the public” and noted the senselessness of Bowen’s acts in discharging the weapon within the crowded Lyric theater.
U.S. Attorney William C. Lamar announced the sentence and reiterated the commitment of his office to hold accountable those who threaten the safety of the community through lawless and reckless acts. Lamar remarked, “We are committed to doing everything possible to keep our neighborhoods, towns and cities safe. We will always seek to hold accountable those individuals who threaten the safety and security of our communities and citizens through illegal and reckless conduct. The discharge of a weapon inside a crowded public place demonstrates a reckless disregard for the safety of others. In the instant case, the individual discharging the gun was prohibited by law from even possessing a firearm or ammunition. We will continue to work diligently with our local, state and federal partners to enforce the federal firearms laws and to see that individuals who violate those laws are held accountable.”
The investigation was the culmination of a joint Federal and State investigation into the shooting with the Oxford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by AUSA Clyde McGee.
Lorain man indicted on child pornography chargesRead the Press Release
A Lorain man was indicted on child pornography charges.
Dylan T. Flanigan, 46, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Flanigan knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place in November 2018, according to the indictment.
The indictment also charges that on or about February 22, 2019, Flanigan possessed a computer which contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Danielle K. Angeli following an investigation by the Federal Bureau of Investigation and the Brunswick Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Long-Time Redmond, Washington Investment Advisor Pleads Guilty to Defrauding Investors of more than $3 MillionRead the Press Release
A long-time investment advisor in Redmond, Washington pleaded guilty today in U.S. District Court in Seattle to defrauding some 15 investors of more than $3 million, announced U.S. Attorney Brian T. Moran. DENNIS GIBB, 72, the President and owner of Sweetwater Investments Inc., pleaded guilty to wire fraud and falsification of records with the intent to obstruct a matter within the jurisdiction of the Securities and Exchange Commission (SEC). Simultaneously, GIBB and Sweetwater investment entered into a consent decree with the SEC liquidating the Sweetwater Income Flood LP Fund and barring GIBB from further investment activity. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing in the criminal case for June 28, 2019.
“Sadly, this defendant sold his investors a dream of a safe retirement, representing that he would use a sophisticated investment strategy, including investing in government bonds, to produce stable returns. Instead, Dennis Gibb used investor funds to pay business expenses for Sweetwater Investments, as well as mortgage and car payments and other living expenses,” said U.S. Attorney Brian T. Moran. “He told investors there was $7.8 million in the fund – the reality was there was less than $2 million. The investors no longer have the safe retirement income they were promised.”
According to the criminal case filings and the SEC consent decree, GIBB created Sweetwater Income Flood Limited Partnership, a private fund Gibb managed, in 2008. As early as 2007, he began soliciting investors for the fund targeting those who wanted steady retirement income in the near future. According to the SEC between 2007 and 2018, about 20 investors put about $7.3 million into the fund. GIBB secretly transferred more than $3.1 million from the fund for his own expenses. To hide his theft, GIBB sent investors falsified quarterly account statements. When the SEC began an examination of the Sweetwater Investments in May 2018, GIBB provided false records to examiners indicating the fund had been liquidated.
In his plea agreement GIBB agrees to forfeit a money judgment in the amount of $3,197,401. Gibb will also owe full restitution for the amount he stole. The government will recommend that any money collected on the money judgment go toward the defendant’s restitution obligation. The SEC is ordering GIBB to liquidate the approximately $1.8 million remaining in the Income Flood Fund and provide it to the SEC for disbursement to victims.
Wire fraud is punishable by up to 20 years in prison. Falsification of records is punishable by up to three years in prison. Prosecutors have agreed to recommend no more than 78 months in prison. The court is not bound by the recommendation, the sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the SEC and the FBI. The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
The SEC order is available here.
Liverpool Business Owner Pleads Guilty to Money Laundering and Maintaining a Drug-Involved PremisesRead the Press Release
SYRACUSE, NEW YORK – Jayesh Patel, age 49, of Liverpool, New York, pled guilty to engaging in a monetary transaction in criminally derived property, and to maintaining a drug-involved premises, announced United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Acting Special Agent in Charge Internal Revenue Service Criminal Investigation (IRS-CI), New York Field Office.
Patel, co-owner of the Munchies convenience store in Solvay, New York, and the Econo Lodge Inn & Suites, located near the Syracuse airport, admitted that he sold crack cocaine on a nearly daily basis to drug customers inside Munchies and the Econo Lodge. Patel further admitted to laundering drug proceeds through his business account at Solvay Bank.
Law enforcement officers executed search warrants at Munchies, the Econo Lodge, and Patel’s residence and vehicle, seizing funds held in bank accounts and in U.S. currency. In all, these seizures totaled over $1 million, most of which were the proceeds from drug trafficking.
Sentencing is scheduled for July 24, 2019, at which time Patel faces a maximum sentence of up to 20 years in prison, a fine of up to $500,000, and a term of supervised release of up to 3 years. 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 the Internal Revenue Service-Criminal Investigation (IRS-CI), the Syracuse Police Department-Special Investigation Division, the United States Department of Agriculture-Office of Inspector General, and the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Steven Clymer, Tamara Thomson, and Michael Perry.
Leaders of the ‘Blood Hound Brims’ Gang Convicted in Federal Court of Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LATIQUE JOHNSON, a/k/a “La Brim,” a/k/a “Straight 2 Business,” a/k/a “Breezy,” a/k/a “Boss Dog,” BRANDON GREEN, a/k/a “Light,” a/k/a “Moneywell,” and DONNELL MURRAY, a/k/a “Don P,” were found guilty yesterday of racketeering conspiracy, narcotics trafficking conspiracy, and firearms offenses in connection with their membership in the “Blood Hound Brims” (“BHB”), a violent street and prison gang that operated in New York City, upstate New York, Pennsylvania, and elsewhere. In addition, JOHNSON and MURRAY were found guilty of committing assault in aid of racketeering for a 2012 shooting at a fast food restaurant in the Bronx involving an AK-47 firearm. JOHNSON was found guilty of attempted murder in aid of racketeering for ordering a 2012 shooting of rival gang members in the Bronx. The convictions followed a five-week trial before the Honorable Paul G. Gardephe.
U.S. Attorney Geoffrey S. Berman said: “Latique Johnson, Brandon Green, and Donnell Murray were leaders of the Blood Hound Brims, a ruthless gang, and were responsible for extensive narcotics trafficking and terrible violence. They now stand convicted of their crimes, and will no longer be able to inflict harm on the people of this city.”
According to court documents and the evidence at trial:
BHB was a criminal enterprise that operated principally in the greater New York area, from 2005 to 2016. BHB was a faction of the Bloods street gang, which operates nationwide, and is under the New York Blood Brim Army (“NYBBA”). The BHB operated within and around various locations in New York, including New York City, Westchester County, Elmira, and in Pennsylvania, as well as within and outside federal and state penal systems.
The BHB used a hierarchical structure that was organized, in part, by geography, including New York City, and that was maintained, in part, through the payment of dues. The founder and leader of the Gang was JOHNSON, and other members and associates of the BHB referred to JOHNSON as the “Godfather.” The Gang was divided into several “pedigrees,” each of which had its own leadership structure which was approved by JOHNSON. Other leadership positions included, among others, treasurers who collected dues from members of a particular pedigree, and individuals who performed security and disciplinary functions for the pedigree. In addition to JOHNSON, GREEN, and MURRAY all held leadership positions within the Gang at different times.
Members of the BHB had regular meetings, sometimes called “pow wows” or “9-11s,” at which members were required to pay dues. Some of the meetings were among members of a particular pedigree, and other meetings were for all members of the Enterprise. Word of the meetings was disseminated via text message, word-of-mouth, and flyers. The BHB’s business, including rivalries with other gangs, shootings, the arrest of gang members, guns, and drugs, was regularly discussed at these meetings. “Kitty dues” – money that paid for commissary funds, lawyers, guns, and drugs, and that served as tribute to JOHNSON – were collected at these meetings. The BHB maintained its own rules and constitution that new members were required to learn. Members of the BHB also used code words and secret phrases to communicate with each other both while in prison and on the street in order to avoid detection by law enforcement.
One of the BHB’s principal objectives was to sell cocaine base, commonly known as “crack cocaine,” powder cocaine, and heroin, which members and associates of the BHB sold throughout the greater New York area and in Pennsylvania.
Members and associates of the BHB engaged in multiple acts of violence against rival gangs. These acts of violence included assaults and attempted murders, and were committed to protect the Gang’s drug territory, to retaliate against members of rival gangs who had encroached on the territory controlled by the BHB, and to otherwise promote the standing and reputation of the Gang vis-à-vis rival gangs. These acts of violence also included assaults and attempted murders against members and associates of the BHB itself, as part of internal power struggles within the Gang.
For example, on January 28, 2012, in the Bronx, New York, JOHNSON, aided and abetted by MURRAY, used an AK-47 assault rifle to fire into a restaurant where rival gang members were gathered, injuring two individuals who survived the shooting. The violence continued in fall of 2012 when JOHNSON ordered the shooting of two other members of a rival gang, who survived.
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A chart providing more information regarding the charges and potential penalties is set forth below. The statutory 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 Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jessica Feinstein, Allison Nichols, and Andrew Chan are in charge of the prosecution.
COUNT
DEFENDANT
MAXIMUM PENALTY
Count One: Racketeering Conspiracy
LATIQUE JOHNSON, 39, of the Bronx, New York
BRANDON GREEN, 36, of the Bronx, New York
DONNELL MURRAY. 39, of the Bronx, New York
Life in prison
Life in prison
20 years in prison
Count Two: Assault in aid of racketeering
JOHNSON
MURRAY
20 years in prison
20 years in prison
Count Three: Attempted murder in aid of racketeering
JOHNSON
10 years in prison
Count Four: Narcotics conspiracy
JOHNSON
GREEN
MURRAY
Life in prison
Life in prison
20 years in prison
Count Five: Firearms offense
JOHNSON
GREEN
MURRAY
Life in prison
Life in prison
Life in prison
Laplace Woman Pleads Guilty to Stealing Federal Student Aid Funds and Identity TheftRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that KENDRA GRAVES, age 31, pled guilty yesterday to a two-count bill of information charging her with theft of government funds, in violation of Title 18, United States Code, Section 641 and identity theft in violation of Title 18, United States Code, Section 1028(a)(7).
According to court documents, GRAVES falsified federal student loan applications and used the stolen student aid monies in the amount of $195,432 for her own personal use. As part of her scheme to defraud, GRAVES applied for federal financial aid at Delgado Community College in the name of 15 individuals without their knowledge or consent.
GRAVES faces a possible sentence up to 10 years imprisonment and a fine of $250,000 as to Count 1 and 15 years imprisonment and a fine of $250,000 as to Count 2. GRAVES also faces three (3) years of supervised release following any term of imprisonment and a $200 special assessment fee. United States District Court Judge Lance M. Africk set sentencing for June 26, 2019.
U.S. Attorney Strasser praised the work of the U.S. Department of Education, Office of Inspector General, the U.S. Department of Treasury, Internal Revenue Service, and the Federal Bureau of Investigation. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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Lafayette man pleads guilty to possessing handgun, rifleRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Shelby Jude Darby, 27, of Lafayette, pleaded guilty Wednesday before U.S. District Judge Dee D. Drell to possessing a 9 mm pistol and an AK-47 style rifle.
According to the guilty plea, Lafayette police conducted on November 1, 2017 a traffic stop on Darby’s vehicle because of illegal dark tint. Darby exited the vehicle and ran down an alley between a residence and a garage. Officers chased him, placed him under arrest, and found a SCCY, Model CPX-2, 9 mm semi-automatic pistol on the ground where Darby had been laying. They returned to Darby’s vehicle where officers observed in plain view, a Romarm/Cugir, Model WASR 10/63 UF, 7.620-caliber semi-automatic rifle, which was located between the driver’s seat and center console, along with various illegal narcotics. Darby is a felon who was previously convicted in February of 2016 for possession of a controlled dangerous substance. According to federal law, a convicted felon is not allowed to possess a firearm or ammunition.
Darby faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for July 5, 2019.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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 reductions in crime.
The ATF and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
Kenyan Man Pleads Guilty to Lying to the FBIRead 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 Fuwad Twalib Nassir, 29, of Mombasa, Kenya, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to making a material false statement to law enforcement. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on April 2, 2018, the U.S. Department of State granted the defendant a C-1/D Crewmember in Transit visa in order for Nassir to work aboard a cruise ship that intended to dock in the United States. Among other conditions, a C-1/D visa holder must abide by the employer’s terms and conditions in order to possess a valid visa.
On October 4, 2018, while working aboard the cruise ship, the defendant entered the United States in Port Canaveral, Florida via the visa. However, on October 21, 2018, the U.S. Department of State cancelled Nassir’s visa after he failed to return to work on the ship. A few days later, on October 23, 2018, U.S. Customs and Border Protection officers encountered the defendant as he attempted to enter Canada at the Niagara Falls port of entry. Nassir was taken into custody.
Subsequently, on October 25, 2018, and again on January 22, 2019, during interviews with the Federal Bureau of Investigation, the defendant stated that after he failed to return to the boat in Port Canaveral, he paid a stranger to drive him from Florida to Niagara Falls. The FBI’s investigation determined, however, that Nassir unlawfully traveled from Florida to New York with three individuals, all of whom were familiar to him.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; and U.S. Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
Sentencing is scheduled for August 5, 2019, at 9:30 a.m. before Judge Vilardo.
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Jury finds Toledo pastor guilty of sex trafficking of a minor and other crimesRead the Press Release
A jury found a Toledo pastor guilty of sex trafficking of a minor and other crimes, U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Eric B. Smith said.
Anthony Haynes, 40, is scheduled to be sentenced June 17. A jury found him guilty of conspiracy to engage in sex trafficking of a minor, sex trafficking, child exploitation and obstruction of a sex trafficking investigation following a trial that began on Monday.
Two other pastors -- Kenneth Butler and Cordell Jenkins – previously pleaded guilty to their roles in the sex trafficking conspiracy involving minors.
Haynes, Butler and Jenkins sexually assaulted a juvenile girl beginning in 2014 through 2017, according to court documents.
The girl was 14 when the conduct began and she was in the custody of Haynes. Some of this conduct took place at Greater Life Christian Center in Toledo, where Haynes was pastor at the time. Haynes used his cellular telephone to record these sexual assaults, according to trial testimony and court documents.
Haynes routinely gave the victim money after the acts and told her not to say anything. He told her that if she said anything, it would ruin his family and his church, according to court documents.
Haynes also facilitated the victim being sexually exploited by other men, including Jenkins, according to trial testimony and court documents.
Jenkins repeatedly sexually exploited the minor at his home on Barrington Drive, at his office at Abundant Life Ministries and at a motel in Toledo. He paid her and referred to the payment as “hush money.” He often recorded these interactions with his cellular telephone, according to court documents.
Jenkins also caused another juvenile girl to engage in commercial sex acts in March 2017, according to court documents.
Butler also caused another juvenile girl to engage in commercial sex acts from 2015 through 2017, according to court documents.
“We are gratified by the jury’s verdict and relieved these men can no longer prey on children,” Herdman said. “I am in awe of the courage of the victims and the dedication of our law enforcement personnel in bringing these men to justice.”
"Our children should not be bought, sold or traded,” Smith said. “They should not be used for financial or personal gain. The children who are victimized in the vicious world of sex trafficking deserve justice. In federal court in Toledo, justice was served. Pastor Anthony Haynes violated every trust bestowed on him - as a leader of the church, he was responsible for helping those in need. Especially children. As we saw this week, he violated that trust in the worst way imaginable. Today we are thankful for the law enforcement partnerships that led to this verdict."
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Alissa Sterling following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Juries Convict Overland Park Man of Drug Offense, Illegal Firearm Following ShootingRead the Press Release
KANSAS CITY, Mo. – An Overland Park, Kan., man who was previously found guilty of a drug offense was convicted by a second federal trial jury today of illegally possessing a firearm, which was involved in a shooting during an altercation at a downtown Kansas City, Mo., bar.
Caesar V. Vaca, 42, was found guilty of being a felon in possession of a firearm and ammunition.
The investigation began when Kansas City police officers were dispatched to PR’s Place, a bar at West 18th Street and Washington Avenue in Kansas City, Mo., on Nov. 20, 2016. Witnesses told officers that Vaca and several other men were in an altercation inside the bar, which started again later outside the bar. Vaca pulled a handgun on another person and shot at the victim, according to witnesses, then left the scene, driving north.
Officers collected an expended 9mm shell casing at the scene of the shooting. Later the same day, a witness who was hiking along the Missouri river bank at Berkley Riverfront Park found a loaded Glock 9mm semi-automatic handgun that had been abandoned in the park and called the police. Officers recovered the firearm, which ballistics testing linked to the expended shell casing found at the scene.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Vaca has a prior federal felony conviction for conspiracy to distribute cocaine and prior state felony convictions for aggravated battery, aggravated escape from custody and distributing marijuana.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour and 50 minutes before returning the guilty verdict to U.S. District Judge Greg Kays, ending a trial that began Monday, March 25, 2019.
Vaca was originally indicted on May 22, 2018, for being a felon in possession of a firearm and ammunition. When Vaca was arrested, he was in possession of approximately eight grams of powder cocaine (some of which was packaged in five separate baggies) and $1,874. When officers searched Vaca’s vehicle, they found a trace amount of cocaine and a razor blade. Vaca was then charged in a superseding indictment with an additional drug-trafficking count. The court ordered the two counts of the superseding indictment to be severed, which resulted in a separate trial for each charge.
On Dec. 13, 2018, another trial jury found Vaca guilty of possessing cocaine.
Under federal statutes, Vaca is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Trey Alford and Alison D. Dunning and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.Jacksonville Drug Dealer Sentenced to Ten Years in Prison for Firearm PossessionRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Daniel Francesco Vidal (29, Jacksonville) to 10 years in federal prison for possession of a firearm by a convicted felon. The court also ordered Vidal to forfeit the Walther PPK pistol that he had possessed.
Vidal pleaded guilty on August 6, 2018.
According to court documents and information presented at sentencing, on March 12, 2017, Vidal was driving a car on Interstate 95, in Jacksonville, when a Jacksonville Sheriff’s Office (“JSO”) patrol officer determined there was probable cause to believe that the car had been stolen. Three JSO patrol officers attempted a traffic stop of Vidal’s vehicle, but Vidal failed to comply. Ultimately, Vidal stopped his car after the officers forced him off the road. Vidal was detained, and inside his car, an officer found a Walther PPK pistol, along with drug packaging and paraphernalia consistent with trafficking in marijuana.
On May 22, 2017, Vidal made a call for service to JSO, and two JSO patrol officers responded to Vidal’s house, where two additional firearms were found in plain view.
On July 25, 2017, JSO officers attempting to execute a federal arrest warrant for Vidal encountered him driving a pickup truck on Interstate 95 in Jacksonville. During the stop, Vidal used his pickup truck to intentionally ram JSO vehicles, then attempted to flee on foot. Vidal was apprehended, and a search of his truck revealed several pounds of marijuana and approximately $37,000, as well as a gun safe in the bed of the truck.
Prior to committing these crimes, Vidal was a 10-time convicted felon, and thus is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
High-Ranking Member of ‘Nine Trey Gangsta Bloods’ Pleads Guilty in Connection with Manhattan Armed Robbery and Brooklyn ShootingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that KIFANO JORDAN, a/k/a “Shotti,” pleaded guilty today in Manhattan federal court to firearms offenses in connection with a robbery and a non-fatal shooting carried out 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, Kifano Jordan admitted in open court to committing multiple acts of violence in furtherance of the Nine Trey enterprise. This conduct is simply intolerable. We continue our daily work with our law enforcement partners to keep our communities safe and to vigorously investigate and prosecute those who bring violence to our streets.”
As alleged in the underlying 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, furanly fentanyl, MDMA, dibutylone, and marijuana.
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JORDAN, 36, of Brooklyn, pled guilty to one count of using and possessing a firearm in furtherance of a crime of violence for an assault with a dangerous weapon that occurred in Manhattan on April 3, 2018, which carries a mandatory minimum sentence of five years in prison and must run consecutively to any other sentence imposed; and one count of discharging a firearm in furtherance of a crime of violence for a shooting that occurred in Brooklyn on April 21, 2018, which carries a mandatory minimum sentence of 10 years in prison and must run consecutively to any other sentence imposed.
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 Judge Engelmayer.
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.
Havasupai Tribal Member Sentenced to Prison for Assaulting OfficerRead the Press Release
PHOENIX – This week, Lone Arrow Hastings, 29, of Supai Village, Ariz., was sentenced by U.S. District Judge Susan M. Brnovich to eight months of imprisonment, to be followed by three years of supervised release. Hastings had previously pleaded guilty to assault on a federal officer.
On Dec. 5, 2017, two officers with the Bureau of Indian Affairs – Office of Justice Services arrested Hastings for public intoxication in violation of the Havasupai Tribal Code. During the course of the arrest, Hastings assaulted one of the federal officers by, among other things, kicking the officer in the face.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08022-PCT-SMB
RELEASE NUMBER: 2019-039_Hastings
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Hartford Man Who Harbored Fugitive Sentenced to More Than 3 Years in Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DENROY FABLE, also known as “Kik,” 35, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 37 months of imprisonment, followed by three years of supervised release, for firearm and narcotics offenses.
According to court documents and statements made in court, in late December 2017, members of the FBI’s Connecticut Violent Crime Task Force and the Hartford and Manchester Police Departments were searching for a fugitive wanted in connection with a homicide in Manchester. Investigators developed information connecting Fable to the fugitive being sought.
On January 2, 2018, investigators stopped Fable’s car in the vicinity of Airport Road in Hartford. A search of Fable’s jacket revealed a loaded Ruger 9mm handgun and quantities of crack cocaine and marijuana. After Fable was arrested, investigators searched Fable’s residence on Wethersfield Avenue in Hartford and located the fugitive. A search of the residence also revealed resale quantities of cocaine, crack and fentanyl/heroin; other evidence of narcotics trafficking, and multiple rounds of assorted ammunition.
Fable’s criminal history includes state convictions for criminal possession of a firearm, and carrying a pistol without a permit.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Fable has been detained since his arrest on January 2, 2018. On November 5, he pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon, and one count of possession with intent to distribute cocaine, cocaine base (“crack”).
This matter was investigated by the FBI’s Connecticut Violent Crime Task Force and the Hartford and Manchester Police Departments. The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrison County woman admits to role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Faith Martin, of Shinnston, West Virginia, has admitted to her involvement in a methamphetamine distribution conspiracy, United States Attorney Bill Powell announced.
Martin, age 20, pled guilty to one count of “Distribution of Methamphetamine.” Martin admitted to selling methamphetamine in Harrison County in August 2018.
Martin faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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.
Harrison County man admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Koch, of Anmore, West Virginia, has admitted to methamphetamine distribution, United States Attorney Bill Powell announced.
Koch, age 34, pled guilty to one count of “Distribution of Methamphetamine.” Koch admitted to selling methamphetamine in August 2018 in Harrison County.Koch faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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 United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JORGE AGUILAR-PEREZ, age 25, a citizen of Guatemala, pleaded guilty Tuesday, March 26, 2019 to a one-count bill of information charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the bill of information, JORGE AGUILAR-PEREZ reentered the United States on or about December 20, 2018, after having been previously removed therefrom on or about May 25, 2006.
If convicted, JORGE AGUILAR-PEREZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for May 2, 2019.
The United States Department of Homeland Security, Immigration and Customs Enforcement in investigated this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Georgia man pleads guilty to hacking apple accounts of professional athletes and musiciansRead the Press Release
ATLANTA - Kwamaine Jerell Ford has pleaded guilty to logging into Apple accounts belonging to high-profile professional athletes and musicians without authorization and stealing credit card information from several of those victims.
“Ford tricked his victims into providing their Apple account passwords and stole sensitive, personal information from the accounts,” said U.S. Attorney Byung J. “BJay” Pak. “After stealing credit card numbers belonging to several professional athletes, he brazenly spent thousands of dollars on personal expenses charged to the athletes’ accounts.”
“The high profile victims in this case are an example that no matter who you are, hackers like Ford are trying to get your personal information,” said Chris Hacker Special Agent in Charge of FBI Atlanta. “This case demonstrates the need to be careful in protecting personal information and passwords, especially in response to suspicious e-mails. Hopefully this is a lesson for everyone, not just the victims in this case.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in at least March 2015, Ford obtained login credentials for Apple accounts belonging to victims primarily through a phishing scheme, which is a scheme in which the perpetrator sends a message that purports to be from a legitimate source. Ford primarily targeted college and professional athletes, including NBA and NFL players, and rappers in his scheme. Ford sent thousands of phishing emails to his intended victims from email accounts he set up to spoof legitimate Apple customer service accounts. Ford, posing as an Apple customer support representative, requested that the victims send him their username and password or answers to security challenge questions, which Ford claimed was needed either to reset their Apple accounts or to access videos that individuals were purportedly trying to send the victims. Dozens of victims provided their login credentials based on the phishing scheme.
After obtaining the victims’ login credentials, Ford logged into their Apple accounts and attempted to take over the accounts. Specifically, he attempted to reset the account password, change the contact email account to an email address he controlled, and alter the security challenge questions. As a result, the victims could not log into their own accounts unless they contacted Apple by phone and proved their identity. Apple records showed hundreds of unauthorized logins to victim Apple accounts.
After gaining control of the victims’ accounts, Ford found credit card information belonging to several of the victims. Ford then used the stolen credit card numbers to pay for thousands of dollars in air travel, hotel stays, other travel expenses, furniture, and money transfers to online payment accounts under his control.
On April 17, 2018, Kwamaine Jerell Ford, 27, of Dacula, Georgia, was indicted on six counts each of wire fraud, computer fraud, access device fraud, and aggravated identity theft. He pleaded guilty to one count of computer fraud and one count of aggravated identity theft. Sentencing is scheduled for June 24, 2019, at 10:30 before U.S. District Judge Timothy C. Batten Sr.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes Section, is prosecuting the case. Former Assistant U.S. Attorney Vivek Kothari investigated the case prior to the indictment.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fugitive Who Allegedly Obtained $9 Million in Fraudulent Real Estate Loans Surrenders to Federal AgentsRead the Press Release
LOS ANGELES – A long-time international fugitive who is charged with nine felonies for allegedly participating in a $9 million bank fraud scheme against Wells Fargo has been taken into federal custody in Los Angeles.
Napoleon Olarte, 41, formerly of Reseda, lived in South America as a fugitive since approximately 2011 and was indicted by a federal grand jury in 2017. He self-surrendered to federal law enforcement yesterday and his initial appearance on the criminal charges is scheduled for today in United States District Court.
Olarte is the third and final defendant charged in the mortgage fraud scheme. Olarte’s two co-conspirators – Juan Jose Calle and Nancy Karina Coleman – previously pleaded guilty to charges in the scheme. Olarte fled to Venezuela when federal agents began investigating the case, and he had been living in Venezuela for much of his time as a fugitive. He relocated with his family to Uruguay in approximately November 2018. Shortly before to his move to Uruguay, federal agents established communication with Olarte and, after numerous conversations between Olarte and federal agents between October 2018 and March 2019, Olarte agreed to self-surrender. Olarte was arrested yesterday as he entered the United States at Miami International Airport. Agents then transported Olarte to Los Angeles to face the criminal charges alleged in the indictment.
According to court documents, Coleman worked as a mortgage consultant at Wells Fargo while Olarte and Calle ran Fast Escrow, a rogue brokerage and escrow company in Northridge. Between August 2008 and January 2009, Coleman accepted bribes and other favors in exchange for approving $9 million in fraudulent loans for Olarte and Calle, according to an affidavit filed with a criminal complaint in the case. Olarte allegedly submitted fraudulent loan applications to Wells Fargo that contained false information for borrowers’ income, assets and employment. On some of the Wells Fargo-financed loans, Olarte allegedly failed to pay off existing loan holders and failed to record liens in favor of the bank, leaving Wells Fargo with no collateral when the loans defaulted.
Olarte has been charged with one count of conspiracy, six counts of bank fraud, and two counts of making false statements to a financial institution. If convicted on all counts, Olarte would face a statutory maximum sentence of 30 years in federal prison for each of the nine counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation, and the United States Department of Housing and Urban Development’s Office of Inspector General.
Olarte’s arrest involved the participation of and coordination with Interpol Washington, the United States Department of Justice Office of International Affairs, the Federal Bureau of Investigation, the United States Marshals Service, United States Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. State Department’s Diplomatic Security Service.
This matter is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Abraham Stewart, 43 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Stewart was sentenced to 180 months in prison followed by 3 years of supervised release.
According to documents in the case, on or about January 29, 2017, officers with the Fort Wayne Police Department were attempting to locate Stewart about another matter. Stewart ran from officers, and after apprehending Stewart, officers located a loaded handgun in Stewart’s coat pocket. Stewart was in possession of a firearm despite having at least three felony convictions in Allen County Superior Court. The felony convictions along with this offense qualified Mr. Stewart to be sentenced as an armed career criminal.
This investigation was conducted by the ATF with the assistance of Fort Wayne Police Department. The case was prosecuted by Assistant U. S. Attorney Anthony W. Geller.
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Former Youth Pastor Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former Pineville, Mo., youth pastor was indicted by a federal grand jury today for producing child pornography.
Ryan Daniel Crawford, 32, currently a resident of Jacksonville, Ark., was charged with producing child pornography between Nov. 29 and Dec. 18, 2017.
Crawford was formerly the associate pastor at First Baptist Church in Pineville.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crime Task Force, and the Pineville, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Yale University Coach Pleads Guilty to Accepting Bribes to Facilitate Admissions to YaleRead the Press Release
BOSTON – The former Yale University women’s soccer coach pleaded guilty today in federal court in Boston in connection with accepting bribes to facilitate the admission of students to Yale as recruited athletes.
Rudolph “Rudy” Meredith, 51, of Madison, Conn., pleaded guilty to one count of conspiracy to commit wire fraud and honest services wire fraud and one count of wire fraud and honest services wire fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for June 20, 2019 at 2:30 p.m.
From 1995 through November 2018, Meredith was employed as the head women’s soccer coach at Yale University. Beginning in April 2015, Meredith agreed with William “Rick” Singer, 58, of Newport Beach, Calif., to accept bribes in exchange for designating applicants to Yale as recruits for the Yale women’s soccer team, and thereby facilitating their admission to the University.
In early November 2017, Singer received an email indicating that an individual wished to make a “donation” to “one of those top schools” for his daughter’s “application.” Singer sent the resume and personal statement of the client’s child to Meredith and stated that he would “revise” the materials to “soccer.” Singer then sent Meredith an athletic “profile” that falsely described the child as the co-captain of a prominent soccer club team in southern California. Meredith subsequently designated the child as a recruit for the Yale women’s soccer team – thereby facilitating her admission to Yale – despite the fact that the child did not play competitive soccer. On Jan. 1, 2018, after the child was admitted to Yale, Singer mailed Meredith a check for $400,000 from the account of his purported charitable organization, Key Worldwide Foundation (KWF). During the summer of 2018, relatives of the applicant paid Singer $1.2 million in multiple installments.
On April 12, 2018, Meredith met with the father of another prospective Yale applicant in a Boston hotel room. During the recorded meeting, Meredith stated that he would designate the child as a recruit for the Yale women’s soccer team in exchange for $450,000. At the meeting, Meredith accepted $2,000 in cash as a partial payment and provided bank account information for future payments.
On March 22, 2019, Singer pleaded guilty to racketeering conspiracy, money laundering conspiracy, conspiracy to defraud the United States, and obstruction of justice. He is scheduled to be sentenced on June 19, 2019, at 2:00 p.m. in Boston.
The charges of conspiracy to commit wire fraud and honest services wire fraud, and honest services wire fraud and wire fraud, provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Former Government Contractor Pleads Guilty to Federal Charge of Willful Retention of National Defense InformationRead the Press Release
Harold Thomas Martin, III, age 54, of Glen Burnie, Maryland, pleaded guilty today to the federal charge of willful retention of national defense information.
The guilty plea was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Robert K. Hur for the District of Maryland, Assistant Director John Brown of the FBI’s Counterintelligence Division and Acting Special Agent in Charge Jennifer L. Moore of the FBI’s Baltimore Field Office.
“The American people entrusted Harold Martin with some of the nation’s most sensitive classified secrets,” said Assistant Attorney General Demers. “In turn, Martin owed them a duty to safeguard this information. He has admitted to violating their trust and putting our nation’s security at risk. With today’s plea, we are one step closer to holding Mr. Martin accountable for his dangerous and unlawful actions.”
“Harold Martin was entrusted with highly classified national defense information. Today, Martin admitted that he betrayed that trust and for more than 20 years he stole and retained a vast quantity of highly classified government information,” stated U.S. Attorney Robert K. Hur. “We will prosecute government employees and contractors who flagrantly violate their duty to protect classified materials.”
“Federal government employees and contractors with security clearances pledge to protect classified information, an essential part of guarding our national security,” said Assistant Director Brown. “Harold Martin repeatedly violated that pledge by taking large quantities of classified information over many years. This case demonstrates the FBI does not take such violations lightly and will vigorously investigate these cases.”
“Security clearance holders bear a profound public trust - to safeguard classified information in secure settings with strict adherence to law and policy,” said Acting Special Agent in Charge Moore. “When this trust is broken, as with Mr. Martin, the FBI will be tireless and comprehensive in its investigation to hold wrong doers accountable. The take away from this case is for security clearance holders to abide by laws and security policy for handling classified information, to keep it safe for the good of the country.”
According to his plea agreement, from December 1993 through Aug. 27, 2016, Martin was employed by at least seven different private companies and assigned as a contractor to work at a number of government agencies. Martin was required to receive and maintain a security clearance in order to work at each of the government agencies to which he was assigned. Martin held security clearances that allowed him to have access to Top Secret and Sensitive Compartmented Information (SCI) at various times. A Top Secret classification means that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the United States. An SCI designation compartmentalizes extremely sensitive information. Because of his work responsibilities and security clearance, Martin was able to access government computer systems, programs, and information in secure locations, including classified national defense information. Over his many years of holding a security clearance, Martin received training regarding classified information and his duty to protect classified materials from unauthorized disclosure.
Martin admitted that beginning in the late 1990s and continuing through Aug. 31, 2016, he stole and retained U.S. government property, from secure locations and computer systems, including documents that bore markings indicating that they were the property of the United States and contained highly classified information of the United States, including TOP SECRET/SCI information.
As detailed in his plea agreement, Martin retained a vast quantity of stolen documents and other information, in both hard copy and digital form, bearing standard classification markings and relating to the national defense, at his residence and in his vehicle. Martin knew that the hard copy and digital documents stolen from his workplace contained classified information that related to the national defense and that he was never authorized to retain these documents at his residence or in his vehicle. Martin admitted that he also knew that the unauthorized removal of these materials risked their disclosure, which would be damaging to the national security of the United States and highly useful to its enemies.
Martin and the government have agreed that if the Court accepts the plea agreement, Martin will be sentenced to nine years in prison for willful retention of national defense information. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 17, 2019.
Assistant Attorney General Demers and U.S. Attorney Hur and commended the FBI for its work in the investigation and thanked the National Security Agency for its assistance. Mr. Demers and Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Harvey E. Eisenberg, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who are prosecuting the case.
Former Government Contractor Pleads Guilty to Federal Charge of Willful Retention of National Defense InformationRead the Press Release
Baltimore, Maryland – Harold Thomas Martin, III, age 54, of Glen Burnie, Maryland, pleaded guilty today to the federal charge of willful retention of national defense information.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General for National Security John C. Demers; and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
“Harold Martin was entrusted with highly classified national defense information. Today, Martin admitted that he betrayed that trust and for more than 20 years he stole and retained a vast quantity of highly classified government information,” stated U.S. Attorney Robert K. Hur. “We will prosecute government employees and contractors who flagrantly violate their duty to protect classified materials.”
“The American people entrusted Harold Martin with some of the nation’s most sensitive classified secrets,” said Assistant Attorney General Demers. “In turn, Martin owed them a duty to safeguard this information. He has admitted to violating their trust and putting our nation’s security at risk. With today’s plea, we are one step closer to holding Mr. Martin accountable for his dangerous and unlawful actions.”
“Security clearance holders bear a profound public trust - to safeguard classified information in secure settings with strict adherence to law and policy,” said Acting FBI Baltimore Special Agent in Charge Jennifer L. Moore. “When this trust is broken, as with Mr. Martin, the FBI will be tireless and comprehensive in its investigation to hold wrongdoers accountable. The take away from this case is for security clearance holders to abide by laws and security policy for handling classified information, to keep it safe for the good of the country.”
According to his plea agreement, from December 1993 through August 27, 2016, Martin was employed by at least seven different private companies and assigned as a contractor to work at a number of government agencies. Martin was required to receive and maintain a security clearance in order to work at each of the government agencies to which he was assigned. Martin held security clearances up to Top Secret and Sensitive Compartmented Information (SCI) at various times. A Top Secret classification means that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the United States. An SCI designation compartmentalizes extremely sensitive information. Because of his work responsibilities and security clearance, Martin was able to access government computer systems, programs, and information in secure locations, including classified national defense information. Over his many years of holding a security clearance, Martin received training regarding classified information and his duty to protect classified materials from unauthorized disclosure.
Martin admitted that beginning in the late 1990s and continuing through August 31, 2016, he stole and retained U.S. government property, from secure locations and computer systems, including documents that bore markings indicating that they were the property of the United States and contained highly classified information of the United States, including TOP SECRET/SCI information.
As detailed in his plea agreement, Martin retained a vast quantity of stolen documents and other information bearing standard classification markings, in both hard copy and digital form, and relating to the national defense, at his residence and in his vehicle. Martin knew that the hard copy and digital documents stolen from his workplace contained classified information that related to the national defense and that he was never authorized to retain these documents at his residence or in his vehicle. Martin admitted that he also knew that the unauthorized removal of these materials risked their disclosure, which would be damaging to the national security of the United States and highly useful to its adversaries.
Martin and the government have agreed that if the Court accepts the plea agreement, Martin will be sentenced to nine years in prison for willful retention of national defense information. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 17, 2019, at 3:00 p.m.
United States Attorney Robert K. Hur and Assistant Attorney General for National Security John C. Demers commended the FBI for its work in the investigation and thanked the National Security Agency for its assistance. Mr. Hur and Mr. Demers thanked Assistant U.S. Attorneys Zachary A. Myers and Harvey E. Eisenberg, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who are prosecuting the case.
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Former Controller of College of New Rochelle Pleads Guilty to Securities Fraud and Failing to Pay over More Than $20 Million in Payroll TaxesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Field Division of the United States Postal Inspection Service (“USPIS”), and Jonathan D. Larsen, the Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that KEITH BORGE, the former controller of the College of New Rochelle (“CNR”), pled guilty today before U.S. Magistrate Judge Judith C. McCarthy to one count of failing to pay over federal payroll taxes and one count of securities fraud in White Plains federal court. The case has been assigned to United States District Judge Vincent L. Briccetti.
Manhattan U.S. Attorney Geoffrey S. Berman said: “By covering up CNR’s true financial condition, Keith Borge deprived CNR’s leaders of the opportunity to address the college’s financial problems for two years. Borge defrauded CNR’s bondholders and left CNR with a $20 million tax liability. He committed federal crimes for which he will now pay the price.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Investors rely on accurate financial reporting when deciding on where to invest their hard-earned money. When executives create and distribute inaccurate financial statements, investors are unknowingly steered into making poor investment choices. The United States Postal Inspection Service is committed to protecting American investors and bringing those who manipulate the financial system to justice.”
IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said: “As the tax filing deadline looms, it’s important for the American taxpayer to have confidence that when they are paying their taxes, their neighbor and co-workers are doing the same. And for those individuals who are considering evading their tax duty, they should consider the consequences which include potential imprisonment and civil penalties.”
According to the allegations contained in the Information and other publicly filed documents:
From in or about 2011 to in or about August 2014, BORGE was the Vice President for Financial Affairs at CNR, a private college with its main campus in New Rochelle, New York. From in or about August 2014 to in or about June 2016, BORGE was CNR’s controller. CNR had approximately 500 to 900 paid employees, depending on the time of year. CNR withheld both federal income tax and its employees’ contributions to Social Security and Medicare from its employees’ pay. Federal law required that the college pay over those withheld taxes and contributions within one week of the day it paid its employees. During that one-week period, CNR held those withheld taxes and contributions in trust for the federal government.
As controller, BORGE managed CNR’s financial affairs and was responsible for paying over withheld payroll taxes and contributions. From the third quarter of 2014 through the second quarter of 2016, BORGE failed to do so. By the end of the second quarter of 2016, BORGE had failed to pay over more than $20 million in combined federal and state payroll taxes and contributions.
BORGE also made false entries in CNR’s books and records to conceal the college’s actual financial condition. As a result, CNR’s financial statements for its fiscal year ending June 30, 2015, reported the college had net assets of $25 million, which was overstated by at least $24 million. Among other things, BORGE caused the financial statements to understate CNR’s liability for federal and state payroll taxes by approximately $11 million; to overstate accounts receivable by approximately $9.2 million by recognizing pledged donations twice; to understate accounts payable by at least $1.5 million by failing to enter unpaid vendor invoices into CNR’s books and records; and to overstate investment assets by at least $2.2 million by recognizing assets that did not exist and by failing to enter his withdrawals from CNR’s investment accounts into the college’s books and records.
BORGE caused CNR’s inaccurate financial statements for the fiscal year ending June 30, 2015, to be released to the public by, among other things, providing the financial statements to the Municipal Securities Rulemaking Board for publication on the Electronic Municipal Market Access web site, where they could be reviewed by the investing public. As a result, investors in bonds issued by the college through the City of New Rochelle Industrial Development Agency were defrauded by BORGE’s materially false and misleading statements in CNR’s financial statements.
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BORGE, 62, of Valley Cottage, New York, is charged with one count of failing to pay over payroll taxes, which carries a maximum sentence of five years in prison, and one count of securities fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the court. BORGE is scheduled to be sentenced July 11, 2019, before Judge Briccetti.
In a related case, the U.S. Securities and Exchange Commission brought a civil action today against BORGE in U.S. District Court in White Plains."
Mr. Berman praised the outstanding investigative work of the Postal Inspection Service and IRS-CI. Mr. Berman also thanked the SEC for their investigative work.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys James McMahon and Daniel Loss are in charge of the prosecution.
Former Chief Operating Officer of Asset Management Company Arrested for Defrauding the Company and Its ClientsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service, announced that RICHARD DIVER was arrested on fraud charges in connection with his embezzlement from the asset management company where he worked as Chief Operating Officer. Specifically, DIVER has been charged with investment advisor fraud in connection with his fraudulently overbilling the company’s clients by hundreds of thousands of dollars in fake management fees and rerouting those funds to his personal account, and with wire fraud for fraudulently diverting millions of dollars from the company’s payroll funds to his personal account over a period of several years. DIVER was arrested today in Manhattan, and was presented before Magistrate Judge Katharine H. Parker in Manhattan Federal Court.
Manhattan U.S. Geoffrey S. Berman said: “Richard Diver occupied a position of great responsibility and great trust at the asset management company that employed him. As alleged, he betrayed that trust, stealing from the company and defrauding its clients, all to fund his lavish personal spending. We will continue to work with our law enforcement partners to root out fraud wherever it is found.”
Inspector-in-Charge Philip R. Bartlett said: “Mr. Diver allegedly used his position of trust to overcharge his clients to fund his spending habits and lavish lifestyle. In situations such as these, no one believes they will get caught; but when you allegedly cheat your clients and use the US Mail to facilitate a lie, be forewarned—Postal Inspectors and their law enforcement partners will eventually uncover your unlawful deeds and bring you to justice.”
As alleged in the Complaint unsealed today in Manhattan Federal Court:
DIVER was the Chief Operating Officer (“COO”) of a Manhattan-based asset management company (“Company-1”) that offers its customers investment planning and wealth management services. As COO, DIVER’s responsibilities included overseeing the company’s payroll and billing functions.
Beginning in 2011 and continuing into December 2018, DIVER fraudulently caused Company-1’s third-party payroll vendor to pay him salary significantly beyond his authorized salary and bonus. Over that period, DIVER caused over $4.5 million to be routed to his personal checking account above and beyond his approved compensation.
In 2017, DIVER also began to defraud Company-1’s clients. Typically, Company-1 billed its clients quarterly, in most cases having been authorized by the clients to deduct its investment advisory fees directly from their custodial accounts. DIVER began to cause an employee to run the billing process, which was based on a fixed percentage of the assets the clients had under the company’s management, at off-cycle intervals as to certain clients in addition to the regularly quarterly billing process. These billings were not accompanied by any notice to the clients. The clients affected by this practice therefore had their accounts debited twice, but were only notified of the single legitimate billing in periodic reports and correspondence from the company. DIVER routed the excess funds to his own personal bank accounts through the company’s payroll system. Through this mechanism, DIVER defrauded the clients of over $700,000.
In December 2018, certain clients noticed the overbilling and complained to Company-1’s president, who confronted him. DIVER admitted to the Company-1 president both fraudulent practices, stating that the funds he had stolen were consumed by his own “wild” spending. More recently, law enforcement agents recorded a conversation in which DIVER acknowledged having defrauded the company of $4.5 million through the payroll fraud and certain clients of over $700,000 through the billing fraud.
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DIVER, 62 of New York New York, is charged with one count of investment advisor fraud and one count of wire fraud. The wire fraud count carries a maximum potential sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The investment advisor fraud count carries a maximum sentence of five years in prison and a maximum fine of $10,000. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the U.S. Postal Inspection Service and thanked the New York Regional Office of the U.S. Securities and Exchange Commission, which has filed a civil action against DIVER in a separate action.
This case is being handled by the Office’s Securities and Commodities Task Force. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Florida Man Sentenced to Prison for Federal Marijuana ChargeRead the Press Release
CHARLESTON, W.Va. – A Florida man admitted to possessing marijuana with intent to distribute for remuneration, and was immediately sentenced, announced United States Attorney Mike Stuart. Russell William Smith III pled guilty before United States District Judge Joseph R. Goodwin and was subsequently sentenced to nine months in prison. Stuart commended the investigation conducted by the West Virginia State Police.
“Marijuana is increasingly potent and dangerous,” said United States Attorney Mike Stuart. “This drug dealer was not only driving under the influence but transporting large quantities of marijuana with the intent to sell it. We prosecute all illegal controlled substances in this district and will continue to vigorously enforce federal law.”
As established by public court filings and hearings, on June 4, 2018, Sergeant Brian K. Hammontree with the West Virginia State Police, spotted a truck driving erratically in the Smith Creek area of Kanawha County. The truck swerved off the roadway several times and jumped onto a sidewalk at one point. Sergeant Hammontree initiated a stop on the truck, and Smith exited the truck without prompting. Smith was unsteady on his feet and admitted to drinking “too much.” Smith provided a breath sample that showed his breath alcohol content was over twice the legal limit.
Sergeant Hammontree asked Smith if there were any drugs in the truck and Smith advised he had a large quantity of marijuana, which Sergeant Hammontree retrieved. Sergeant Hammontree ultimately recovered multiple pounds of marijuana from Smith’s duffel bag in the bed of the truck, packaged in 17 separate bags.
Assistant United States Attorney Drew O. Inman handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Florida Man Pleads Guilty in Fraud Scheme related to the Processing of Credit Card PaymentsRead the Press Release
PITTSBURGH - A resident of Parkland, Florida, pleaded guilty in federal court to a charge of conspiracy to commit Bank Fraud, Mail Fraud and Wire Fraud, United States Attorney Scott W. Brady announced today.
Garri Shihman, 45, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Shihman participated a complex matter has two primary components. The first component is related to the illegal on-line sale of pharmaceutical drugs to U.S. consumers from a host of websites located primarily in India. The second component relates to the fraudulent processing of credit card payments for these pharmaceutical drugs and other products. Shihman is only directly associated with the second component.
The fraud involves use of a series of misrepresentations that cause credit card companies to process credit card transactions for various illegal activities. Credit card companies have policies that preclude the use of their products and services to pay for these type of activities, and they have various internal controls designed to prevent the use of their products and services for such activities.
For example, the credit card companies require merchants to apply to use their services, and in the applications, they ask for information about the products or services the company is selling and ask the merchants to provide the website through which the company will sell goods or services. The credit card companies will not open a merchant account if the applicant indicates that they are involved in illegal activities, and the credit card companies check the website to make sure that the applicant is not engaged in illegal activities.
Shihman was involved in a payment processing operation that defrauded the credit card companies through a series of misrepresentations designed to conceal the use of the credit card companies’ products and services to process payments for illegal activities. The complex fraud involved front companies, fraudulent applications, a phone bank, and various other aspects.
The agents, beginning with the undercover purchases of the pharmaceutical drugs, began to unravel this scheme through dozens of search warrants for e-mail accounts, subpoenas, and interviews. Those investigative efforts ultimately led to the execution of a search warrant at Shihman’s business located in Brooklyn, New York. The search warrant revealed of evidence implicating Shihman and others in the fraudulent scheme outlined above.
Judge Cercone scheduled sentencing for July 26, 2019. The law provides for a total sentence of thirty years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The conducted the investigation that led to the prosecution of Garri Shihman.
Five Individuals Indicted in Life Insurance Fraud Scheme to Obtain Policies Without Insureds’ KnowledgeRead the Press Release
SAN JUAN, P.R. – On March 26, 2019, a Federal grand jury returned a 35-count indictment charging five individuals with conspiracy to commit wire and mail fraud, 10 counts of mail fraud, 11 counts of wire fraud, six counts of aggravated identity theft, and seven counts of money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI handled the investigation with the assistance of the United States Postal Inspection Service, and the Puerto Rico Police Department, pursuant to a referral from the Office of the Insurance Commissioner of Puerto Rico.
The indictment alleges that from November 2006 through the return of the indictment, defendants Luz M. Santiago-Torres, Jimmy E. Santiago-Burgos, Félix Rosa-Rosa, José Rivera-Esparra, and Ulises Feliciano-Caraballo conspired, devised, and engaged in a scheme to defraud life insurance companies by applying for, paying for, and receiving life insurance policies for insureds without the insured’s knowledge and consent. Participants in the conspiracy and scheme to defraud submitted life insurance applications containing materially false information, misrepresentations, and forged signatures that were sent to insurers, including Triple-S, Multinational, Occidental, Americo Financial, Universal, National, Great American, and Metlife, all without the knowledge and consent of the insured listed on the life insurance application.
As a part of the conspiracy, insurance agents, including Félix Rosa-Rosa, José Rivera-Esparra, and Ulises Feliciano-Caraballo, prepared and submitted the fraudulent life insurance applications to the various insurance companies. Upon the death of the insureds, payments were then made to the listed beneficiaries, including Santigo-Torres and Santiago-Burgos.
More than 30 fraudulent insurance policy applications were identified involving over 20 different insureds. Those insureds include five individuals who are still alive with active policies in their name as of the date of the indictment, four whom died of natural causes, and four whom suffered violent deaths in Juana Diaz, Puerto Rico, including murder.
The four violent deaths include the shooting deaths of Daniel Santiago Ramos and Reinaldo Santiago Torres on July 1, 2011 and August 28, 2012 respectively, as well as the deaths of brothers Jose A. Torres-Cruz and Margarito Torres Cruz, who died on October 31, 2009 and June 2, 2018 respectively, when each was struck by a vehicle and killed on Road 552 in Juana Diaz.
The total of the fraudulent insurance policies involved in the conspiracy exceeds five millions dollars. In excess of one million five hundred thousand dollars was actually paid by life insurance companies as a result of insureds’ deaths.
The co-conspirators listed the personal identification information of insureds on life insurance applications, including their name, social security number, and date of birth; listed false contact information including false residential addresses, false mailing addresses, and false telephone numbers. The false contact information provided corresponded to the addresses and contact information for individuals involved in the conspiracy and scheme to defraud. By doing so, the defendants would receive communications made via telephone and mail rather than the actual named insured.
Multiple insureds, for whom life insurance policies were obtained without their knowledge and consent, resided at and were provided elderly care at Hogar Sustituto Luz Santiago y Fernando Santiago also known as Sueño Felíz, a home for the elderly operated by defendant Santiago-Torres in Juana Diaz, Puerto Rico. Sueño Felíz was licensed to operate with the Puerto Rico Department of Family until the license was revoked on or about April 5, 2011.
In addition to the mail and wire fraud charges, defendants Luz M. Santiago-Torres, Félix Rosa-Rosa, and José Rivera-Esparra were charged with aggravated identity theft of insureds’ names, social security numbers, and signatures. Santiago-Torres is also facing seven counts of money laundering for making monetary transactions in excess of $10,000 with proceeds of the conspiracy and scheme to defraud, including the $30,000 purchase of a 2018 Jeep Wrangler Unlimited. All defendants are facing the forfeiture of the criminally derived proceeds, including $1,543,974.22.
“Luz M. Santiago-Torres and her coconspirators deliberately targeted senior citizens as part of a life insurance fraud scheme that affected more than 20 victims, some of whom lost their lives violently, and yet they didn’t care and collected fraudulent insurance payouts,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “These charges demonstrate our firm commitment to stopping those who exploit senior citizens and other vulnerable populations.”
“The FBI appreciates the outstanding work of the U.S. Attorney’s Office, U.S. Postal Inspection Service, and the Office of Social Security, and remains confident that we and our partners have the capacity to address any large scale fraud scheme that threatens the public,” said Douglas A. Leff, Special Agent in Charge of the FBI-San Juan Field Office. “As always, the sooner these frauds get reported to us, the faster we can respond and apprehend those responsible. We are available 24 hours a day at 787-754-6000 and www.tips.fbi.gov.”
“Postal Inspectors, federal prosecutors and our law enforcement & regulatory partners have diligently worked to identify and disrupt the activities of a criminal group who stole the identities of individuals, and obtained fraudulent life insurance policies in the names of their victims,” said Raimundo Marrero, Assistant Inspector in Charge, Newark Division, U.S. Postal Inspection Service. “Postal Inspectors will continue to tirelessly investigate these types of financial crimes that utilize the U.S. Mail to target businesses and consumers alike.”
The case is being prosecuted by First Assistant United States Attorney Timothy Henwood and Assistant United States Attorney Seth A. Erbe. If found guilty, defendants are facing a maximum penalty of 20 years of imprisonment for each conspiracy, mail fraud, and wire fraud count as well as a maximum 2 year term of imprisonment for each aggravated identity count and a maximum 10 years of imprisonment for each money laundering count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Five Defendants Arrested for Trafficking Heroin, Fentanyl and Crack Cocaine in Riverhead AreaRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Robert Quarles, Charles Scruggs, Michael Steketee and Deena Colgan with conspiring to distribute heroin, fentanyl and cocaine base in the Riverhead area. Quarles, Scruggs and Steketee were arrested this morning, and were arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay, where they were ordered detained. A related criminal complaint has also been filed charging Tyrone Ligon with possession with intent to distribute cocaine, heroin and fentanyl. Ligon was arrested this morning and was also ordered detained by Magistrate Judge Lindsay at his arraignment this afternoon. Colgan is in custody and will be arraigned on April 2, 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the defendants sold dangerous drugs with no regard for the harm caused to the users or residents of the community,” stated United States Attorney Donoghue. “This Office and our law enforcement partners at the FBI and the East End Drug Task Force will continue to tirelessly investigate and prosecute individuals who contribute to the opioid epidemic.”
“These dealers who allegedly trafficked in deadly illegal drugs don’t see the destruction left in their wake, they only see the money they make from pushing and selling. The opioid deaths in our community and our country get worse each day, but the FBI Long Island Gang Task Force and our law enforcement partners won’t stop investigating and arresting all the dealers we can to keep more people from dying,” stated FBI Assistant Director-in-Charge Sweeney.
Between January 2018 and March 2019, the defendants were involved in a conspiracy to distribute several controlled substances, including over one kilogram of heroin, 40 grams of fentanyl, and crack cocaine. At the time of his arrest, Quarles was found in possession of distribution quantities of crack cocaine and heroin. Ligon was also found in possession of narcotics when he was taken into custody.
The charges in the indictment and complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Colgan, Quarles, Scruggs and Steketee face up to life imprisonment; Ligion faces up to 20 years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael Maffei is in charge of the prosecution.
The Defendants:
ROBERT QUARLES (also known as “Black”)
Age: 43
Mastic, New YorkCHARLES SCRUGGS (also known as “Chuck”)
Age: 31
Riverhead, New YorkMICHAEL STEKETEE
Age: 41
Flanders, New YorkTYRONE LIGON
Age: 49
Southampton, New YorkDEENA COLGAN
Age: 47
Riverhead, New YorkE.D.N.Y. Docket No. 19-CR-156 (DJH)
Final defendant sentenced in massive, nationwide, cargo theft conspiracyRead the Press Release
New Albany – Josh J. Minkler, the United States Attorney, announced today that Ramon Sera-Mastrapa, 40, a Cuban national living in Florida, has been sentenced to 40 months’ imprisonment in connection with his role in a massive, years-long cargo theft conspiracy that spanned more than half of the continental United States.
The sentence, handed down by U.S. District Court Judge Tanya Walton Pratt at a hearing in New Albany, Indiana, Friday morning, represents the culmination of a years-long investigation led by the United States Attorney’s Office and agents of the FBI’s New Albany office, in close partnership with the Kentucky State Police Vehicle Investigations Unit. This massive investigative effort also yielded convictions and significant federal prison sentences for 12 other defendants: Carlos Enrique Freire-Pifferrer, Juan Perez-Gonzalez, Eduardo Hernandez, Mario Hernandez-Oquendo, Yoel Palenzuela-Mendez, Orlis Machado Cantillo, Miguel Mompie, Ritzy Robert-Montaner, Roberto Santos-Gonzalez, Carlos Mendez-Rosa, Raico Benitez Castillo, and Daniel Gonzalez-Insua.
During the many court proceedings held in this case, the Court heard voluminous testimony about the sophistication of this theft ring. Specifically, the court heard that the defendants would travel from various locations throughout the United States to Virginia, Illinois, Indiana, Kentucky, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, and other U.S. States to reconnoiter distribution facilities used by various companies to distribute high-value cell phones, electronics, computer equipment, name brand clothing, cosmetics, pharmaceuticals, cigarettes, and liquor, among other products. Once the defendants identified a truck leaving a distribution facility, they would follow the truck for hundreds of miles until the driver of the cargo load would stop to rest or refuel. At that point, the defendants would steal the entire semi-tractor and trailer. Typically the group would abandon the tractor portion of the stolen vehicle within 20 miles of the site of the theft, but would hook the stolen trailer up to a tractor operated by another member of the conspiracy and paint over any logos on the stolen trailer in an effort to conceal the identity of the trailer and evade law enforcement detection. Efforts were then made to transport the stolen merchandize to major U.S. cities where the contents of the trailers were sold onto the black market.
Among the truck-loads of merchandise targeted for theft by this group were those transporting T-Mobile cellular telephones, Samsung appliances, Ralph Lauren and Victoria’s Secret clothing, Elizabeth Arden perfume, COTY cosmetics, Nikon cameras, Apple, Dell and HP computers, Pfizer pharmaceuticals, Mead Johnson baby formula, Lorillard cigarettes, and one truckload of LG cellular telephones valued at $11.9 million. All totaled, the FBI and KSP linked these defendants to more than 32 cargo loads, valued at more than $30 million, stolen between October of 2011 and May of 2015.
The Court also heard evidence that, before getting involved in this conspiracy, at least three members of the group, Roberto Santos-Gonzalez, Juan Perez-Gonzalez, and Eduardo Hernandez, had prior federal convictions for remarkably similar conduct.
As noted above, Sera-Mastrapa was the final defendant to be sentenced in this case. In prior proceedings, Judge Pratt sentenced the other members of the conspiracy to significant terms of imprisonment, including: Santos-Gonzalez (150 months), Perez-Gonzalez (108 months), Freire-Pifferrer (87 months), Machado-Cantillo (96 months), Mario Hernandez-Oquendo (79 months), Daniel Gonzalez-Insua (72 months), Yoel Palenzuela-Mendez (60 months), Miguel Mompie (57 months), and Carlos Mendez-Rosa (40 months).
According to Assistant United States Attorneys Matthew J. Rinka and James M. Warden, each of the defendants were also ordered to serve a period of supervised release following their incarceration, and ordered to pay millions of dollars in restitution to the victims in this case.
“The arms of federal law enforcement are long and untiring,” said Josh J. Minkler, United States Attorney for the Southern District of Indiana. “These crimes affect everyday Hoosiers and Americans by driving up costs, across-the-board, for businesses and citizens alike. The conspiracy in this case represented an all-out, nationwide assault on interstate shipping, but it ultimately proved no match for the collaborative efforts and determination of Federal, state, and local law enforcement agencies, assisted by private sector groups like the National Insurance Crime Bureau. Let the sentences meted out in this case be a stern warning to others: Those who obstruct or interfere with interstate shipping will be doggedly pursued and brought to justice.”
“The significance of this case, from a national perspective, cannot be overstated. The results represent nearly a decade’s worth of federal, state, and local law enforcement and private sector collaboration,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “It is a testament to the hard work and dedication of the FBI agents and Kentucky State Police troopers who literally chased these defendants across the United States and stopped them.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1.
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Fifteen Defendants Charged in Joint Federal and State Investigation of C-Block Criminal Street Gang’s Drug and Firearms Trafficking OrganizationRead the Press Release
DES MOINES, Iowa -- Fifteen defendants are facing criminal charges as part of a joint federal and state investigation of the Des Moines-based C-Block criminal street gang and associated cocaine trafficking organization. Criminal complaints unsealed in the United States District Court in Des Moines charge fifteen defendants with federal drug and firearms offenses. Many of the federal defendants were arrested Wednesday and Thursday of this week, and preliminary and detention hearings will be held early next week. One other defendant, William Charles Gray, was charged in a state complaint and will make appearance in Polk County Criminal Court.
The charges were announced by Marc Krickbaum, United States Attorney for the Southern District of Iowa; Randall Thysse, Special Agent-in-Charge of the Omaha Field Division of the Federal Bureau of Investigation; John P. Sarcone, Polk County Attorney; and Dana Wingert, Chief of Police of the Des Moines Police Department, following a long term investigation conducted by the FBI’s Central Iowa Gang Task Force, which included the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Drug Enforcement Administration; Dallas County Sheriff’s Office; Polk County Sheriff’s Office; Story County Sheriff’s Office; and the Altoona Police Department. Assistant United States Attorneys Mikaela Shotwell and Adam Kerndt represent the government.
Fifteen federal defendants are charged across two complaint affidavits, stemming from a months-long investigation of the Des Moines-based C-Block criminal street gang. The primary complaint (Case Nos. 4:19-MJ-161 through 174) alleges that DAERON MERRETT, 31, of Des Moines; MARSHAUN MERRETT, 31, of Des Moines; and BARRY ADAIR, JR., 29, of Des Moines, constitute the leadership of C-Block, a criminal street gang based in Des Moines. The complaint describes C-Block’s involvement in the distribution of controlled substances, particularly the distribution of cocaine in the Des Moines area. In December 2018, law enforcement obtained court authorization to intercept telephone communications of JOHNNATHAN FRENCHER, 26, of Des Moines, who was receiving cocaine from DAERON MERRETT for redistribution in Des Moines. Law enforcement later received court authorization to intercept telephone communications of DAERON MERRETT himself, leading to further identification of his cocaine trafficking network. The primary complaint alleges, in late January 2019, DAERON MERRETT and MARCUS HUNT, 37, of Des Moines, began traveling to the Chicago, Illinois and Gary, Indiana areas to obtain cocaine for distribution in Des Moines. CORDNEY SMITH, 43, of Gary, Indiana, is alleged to have brokered at least four drug transactions for DAERON MERRETT and HUNT, who obtained over 500 grams of cocaine for distribution in Des Moines.
The complaint identifies additional customers and redistributors of cocaine who have been charged with drug conspiracy and distribution:
• FREDDIE FRENCHER, JR., 28, of Des Moines
• JOSE ANTONIO SANCHEZ, JR., 25, of Des Moines
• CONRAD FRED TAYLOR, JR., 32, of Des Moines
• JHAMEL DONTA BOOKER, 35, of Des Moines
• CORNELIUS NEAL POPE, 40, of Des Moines
• PETER E. COOPER, JR., 32, of Des Moines
• WALTER STEFON BURGS, 48, of Des Moines
• ANTOWAN LEON TAYLOR, 40, of Des Moines
• PAUL JOSEPH CASTELLINE, 33, of Des MoinesIn addition to federal drug charges, several other defendants are charged with federal firearms offenses and crimes of violence. In United States. v. MARSHAUN JORDAN MERRETT (4:19-MJ-160), MARSHAUN MERRETT is charged with unlawfully possessing an extended magazine loaded with 30 rounds of ammunition during a traffic stop on December 26, 2018. Brothers JOHNNATHAN and FREDDIE FRENCHER are charged with attempted Hobbs Act robbery and possession of a firearm in furtherance of a crime of violence, stemming from an incident on December 13, 2018. The complaint describes intercepted communications between JOHNNATHAN and FREDDIE FRENCHER in which the two planned to commit an armed home invasion robbery of another drug trafficker in Des Moines, who possessed marijuana and marijuana wax in his residence in Des Moines. In an effort to prevent the planned robbery by force, the Des Moines Police Department conducted a traffic stop of the vehicle in which JOHNNATHAN and FREDDIE FRENCHER were passengers, en route to the suspected home invasion location. A subsequent search of that vehicle yielded loaded, Glock firearms under each of JOHNNATHAN and FREDDIE FRENCHER’s seats. JOHNNATHAN FRENCHER has also been charged with possessing a firearm as a felon, based on a prior felony drug conviction in the Iowa District Court for Polk County in May 2014.
The months-long investigation culminated in the execution of federal narcotics and firearms search warrants at the following locations on March 27, 2019:
• 1100 block of 14th Street, Des Moines
• 6600 block of SE 5th Street, Des Moines
• 3700 block of Valdez Drive, Des Moines
• 2000 block of 55th Street, Des Moines
• 600 block of 24th Street, Des Moines
• 6500 block of SW 9th Street, Des Moines
• 2400 block of E. Porter Avenue, Des Moines
• 2400 block of Capitol Avenue, Des Moines
• 1100 block of 9th Street, Des Moines
• 1500 block of 20th Place, Des Moines
• 1800 block of E. 25th Street, Des Moines
• 3000 block of 54th Street, Des MoinesThe charges in the complaints carry maximum penalties of between ten years and life imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Fayetteville Man Sentenced to More Than 5 Years in Federal Prison for Possession of A Pill Press to Manufacture A Controlled SubstanceRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Lewis Chafin age 28, of Fayetteville, Arkansas, was sentenced today to 70 months in federal prison followed by three years of supervised release, and a $2,400.00 fine for one count of Possession of a Tableting or Encapsulating Machine Used to Manufacture Fentanyl. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, investigators received information that Chafin was manufacturing counterfeit oxycodone pills mixed with fentanyl using a pill press machine, and other equipment. Chafin is on active state probation, and had signed a waiver allowing a search of his residence by law enforcement officers at any time.
In April 2018, investigators executed a search of Chafin’s residence. In a bedroom Chafin identified as his, investigators located counterfeit oxycodone pills, a container of fentanyl, a pill press, instructions for creating counterfeit oxycodone using fentanyl, and other equipment related to the manufacture of counterfeit oxycodone. Chafin was indicted by a federal grand jury in April 2018, and entered a guilty plea in September 2018.
This case was investigated by the Fourth Judicial District Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Fayetteville Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Dalton Truax, age 19, of Fayetteville, Arkansas, was sentenced today to 120 months in federal prison followed by five years of supervised release, and a $2,400.00 fine for one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, investigators received information that a suspected package of methamphetamine was seized in the mail. Investigators executed a search warrant on the package and confirmed that it contained methamphetamine. Investigators simultaneously conducted surveillance of the target residence where the package was addressed. A detective drove the package to the target address, and Truax immediately opened the door. The detective indicated that he had received a package by mistake. The detective asked Truax had he been expecting a package, and was his name "Bill," which was the name on the package; Truax confirmed. The detective handed Truax the package, identified himself as a police officer, and advised Truax that he was under arrest. Truax attempted to flee, but was detained and place in handcuffs.
Truax was on active state probation, and had signed a waiver allowing a search of his residence by law enforcement officers at any time. Investigators executed a search of Truax’s bedroom and recovered packaging baggies, a digital scale, nine baggies of marijuana, and a stolen S&W Bodyguard .380. The narcotics were subsequently tested at DEA laboratory and contained approximately 389 grams of methamphetamine.
Truax was indicted by a federal grand jury in August 2018, entered a guilty plea in December 2018.
This case was investigated by the Fourth Judicial District Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the United States.
Fayette County Woman Charged with Tax EvasionRead the Press Release
PITTSBURGH - A resident of Fayette County, Pa., was indicted by a federal grand jury on charges of tax evasion, United States Attorney Scott W. Brady announced today.
The two-count indictment named Lisa Cavanaugh.
According to the indictment, Cavanaugh engaged in a theft and kickback scheme with another individual known to the grand jury as TK. From January 1, 2012 through May 6, 2013, Cavanaugh evaded and defeated her income taxes for calendar year 2012 by filing a false and fraudulent U.S. Individual Income Tax Return, Form 1040A. In the tax return, Cavanaugh stated that her taxable income for calendar year 2012 was $50,667 and that her tax due was $3,231, when she then and there well knew and believed that her taxable income for calendar year 2012 substantially exceeded $50,667 and that her tax due substantially exceeded $3,231.
Likewise, from January 1, 2013 through March 31, 2014, Cavanaugh evaded and defeated her income taxes for calendar year 2013 from proceeds from the theft and kickback scheme, by filing a false and fraudulent U.S. Individual Income Tax Return, Form 1040. In the tax return, Cavanaugh stated that her taxable income for calendar year 2013 was $45,463 and that her tax due was $3,755, when she then and there well knew and believed that her taxable income for calendar year 2013 substantially exceeded $45,463 and that her tax due substantially exceeded $3,755.
The law provides for a maximum total sentence of 10 years in prison and a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Youth Minister from Las Cruces Sentenced to 71 MonthsRead the Press Release
ALBUQUERQUE – Stephen Mendoza Arellano, 31, of Las Cruces, N.M., was sentenced today in federal court to a 71 month term of imprisonment followed by 15 years of supervised release based on his previously entered guilty plea to the offense of traveling in interstate commerce for the purpose of engaging in sexual contact with a minor.
Arellano pled guilty on April 9, 2018, and admitted that in the early summer of 2017, he began to pursue a romantic relationship with the 15-year-old minor victim, whom he knew through the Apostolic Assembly Church and their families’ relationship. He further admitted that in June 2017, he traveled from Las Cruces to El Paso, Texas, with the intent to engage in illicit sexual contact with the victim.
According to court records, at the time he committed the offense, Arellano was an ordained minister of the Apostolic Assembly Church and was serving as the Church’s District of New Mexico Youth President. He was also a National Ordained Minister for the Apostolic Assembly Church, at the time, held the title of District of New Mexico Youth President, and was a member of the same church as the victim. The child victim who was 15-years-old when he began contacting her. HSI initiated the investigation into Arellano after receiving a report from the parents of Arellano’s victim.
This case was investigated by the Las Cruces office of HSI and the Las Cruces Police Department. The case was prosecuted by Assistant U.S. Attorneys Marisa A. Ong and Aaron O. Jordan as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Excluded Felon Sentenced to Twelve Years for Health Care Fraud and Aggravated Identity TheftRead the Press Release
Babubhai Rathod Ran Multiple Health Care Providers After Being Convicted And Excluded From Medicare And Medicaid For Paying Illegal Kickbacks
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Babubhai Bhurabhai Rathod, of Okemos, Michigan, was sentenced to 10 years in prison for health care fraud and an additional 2 years in prison for aggravated identity theft. Rathod pleaded guilty to both charges in August 2018. U.S. District Judge Janet T. Neff also ordered Rathod to pay $939,795.89 in restitution to Medicare and Medicaid.
In 2013, Rathod was sentenced to four years in prison—and was further excluded from participating in Medicare and Medicaid—after being convicted of paying practitioners illegal kickbacks in exchange for patient referrals to his health care companies. While in prison, Rathod faked a drug and alcohol use disorder in order to qualify for admission into the Residential Drug Abuse Program ("RDAP"). Rathod completed RDAP and was released early from custody. Within days of his release in 2016, Rathod began violating his exclusion and supervised release conditions by operating four health care providers across the State of Michigan: Advanced Medical Services (d/b/a Advanced Sleep Diagnostics of Michigan); Sleep Diagnostics of Michigan; EZ Sleep Supplies; and Paramount Home Care. To conceal his ownership of these providers from Medicare and Medicaid, Rathod used a variety of aliases, straw owners, and shell holding companies that were registered to other people. Rathod’s scheme netted nearly a million dollars in Medicare and Medicaid reimbursements to which his providers were not entitled.
As part of his scheme, Rathod used the name, address, date of birth, Social Security Number, and driver’s license of a physician colleague to obtain working capital loans for Advanced Medical Services. Rathod also used the physician’s identity, without the physician’s knowledge, to personally guarantee those loans. When Advanced Medical Services defaulted on one of these loans, a state-court judgment was entered against the physician—without the physician’s knowledge—and the physician’s bank account was frozen.
At sentencing, Judge Neff noted the "breadth, scope, and depth" of Rathod’s fraud and remarked that he was "stealing from the government. That is what this is." Judge Neff described Rathod as both "a man for whom the truth is a stranger" and a naturalized citizen who has "taken advantage of opportunities available in this country to steal from it."
"The resources it took to unravel Mr. Rathod’s elaborate scheme reflects our commitment to holding accountable those who would violate their federal program restrictions," U.S. Attorney Birge said.
"Exclusion is one of the most important tools that HHS-OIG has to protect beneficiaries and counter fraud and abuse in federal health care programs", said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. "Mr. Rathod intentionally and recklessly tried to circumvent his 20 year exclusion in an attempt to line his pockets with vital taxpayer dollars. Excluded providers need to know that HHS-OIG takes its exclusions authority seriously and will ensure that it is strictly enforced."
This case was the result of a coordinated investigation by the U.S. Attorney’s Office for the Western District of Michigan, the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and Blue Cross Blue Shield of Michigan. Assistant U.S. Attorneys Adam B. Townshend and Raymond E. Beckering III represented the United States.
END
Essex County, New Jersey, Man Convicted of Being Felon in Possession of FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man has been convicted of being a felon in possession of a firearm, New Jersey, U.S. Attorney Craig Carpenito announced today.
Shakey Hoover, 38, of Newark, was convicted March 27, 2019, of one count of being a felon in possession of a weapon following a two-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated 90 minutes before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
On the evening of April 23, 2017, four individuals — Lashaunda Glenn, her boyfriend, her sister, and her sister's boyfriend — arrived by car at Glenn’s mother’s house in Newark to pick up a television belonging to Glenn’s sister. Glenn’s mother lived in the third-floor apartment of the house with Hoover, her longtime boyfriend and a convicted felon.
Glenn and Hoover began arguing. As the confrontation became more heated, Hoover pulled from his waistband a small silver revolver, pointed it at the group, and threatened to kill them. Glenn and her companions ran to a nearby police station to report what had happened. Newark police arrived at the house a few minutes later and found a silver revolver loaded with one bullet. An examination of the gun found Hoover’s fingerprint on it.
The count of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 10, 2019.
U.S. Attorney Carpenito credited the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the N.J. State Police, under the direction of Col. Patrick J. Callahan; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Christopher Taylor in Newark, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Stephen Ferketic of the Criminal Divison in Newark.
El Salvadoran Man Pleads Guilty to Illegal ReentryRead the Press Release
NORFOLK, Va. – An El Salvadoran national pleaded guilty today to illegal reentry after sustaining a felony conviction for aggravated sexual battery of a child less than 13 years old.
According to court documents, Ubaldo Adonay Moran-Arevalo, 37, was determined to be in the United States illegally in 2004 and ordered removed in 2005. He remained in the United States, and in 2008, he was arrested in Virginia Beach for sexually assaulting a child. After being convicted and sentenced, he was removed from the United States, but returned sometime later. Moran-Arevalo came to ICE’s attention several months ago after he was arrested in Virginia Beach for a DWI. He has since been convicted of that charge.
Moran-Arevalo faces a maximum penalty of 20 years in prison when sentenced on August 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-165.
Dubuquer Sentenced to over Three Years in Federal Prison for Possessing Sawed-Off ShotgunRead the Press Release
A Dubuque man who possessed a sawed-off shotgun and a pistol with an obliterated serial number was sentenced yesterday to more than three years in federal prison. Neil George Ness, also known as Neelon Ness, 66, from Dubuque, Iowa, received the prison term after a September 7, 2018 guilty plea to one count of Possession of an Unregistered Short-Barreled Shotgun.
At Ness’s sentencing hearing, the district court found that, in August 2016, Dubuque Police Department officers executed a search warrant at Ness’s home in Dubuque after receiving information that another person was selling marijuana from the home. In the other person’s room, officers found three pounds of marijuana, psilocybin mushrooms, cocaine, and marijuana growing equipment. During the search, the officers also examined a locked cabinet in defendant’s bedroom. In the cabinet, officers found a number of firearms, including a sawed-off shotgun with a barrel length of approximately 14.5 inches. The firearm was not registered to Ness in the National Firearm Registration and Transfer record, and thus Ness’s possession of the firearm was illegal. Officers also found a pistol with an obliterated serial number. Ness admitted he knowingly possessed both illegal firearms.
Ness was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Ness was sentenced to 37 months’ imprisonment and fined $2,500. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Ness was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1024.
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Dominican National Sentenced for Social Security FraudRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston.
Fausto Junior Feliz Feliz, 41, a Dominican national formerly residing in Malden, was sentenced by U.S. District Court Judge Denise J. Casper to 12 months in prison and three years of supervised release. Feliz Feliz will be subject to deportation proceedings upon completion of his sentence. In January 2019, Feliz Feliz pleaded guilty to one count of false representation of a Social Security number. He was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the July 2018 investigation was aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On Sept. 3, 2015, Feliz Feliz, applied for a Massachusetts identity card using the name, Social Security number, and date of birth of a Puerto Rican citizen. He supported his application with a Puerto Rican birth certificate and a Social Security card in the other person’s name. Based on the application and supporting identity documents, Feliz Feliz was issued a Massachusetts identity card in the name of the Puerto Rican citizen.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Adam Schneider, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Assistant U.S. Attorney Patrick Callahan of Lelling’s Criminal Division prosecuted the case.
Doddridge County man admits to role in a methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jacob Wright, of West Union, West Virginia, has admitted to his involvement in a methamphetamine distribution conspiracy, United States Attorney Bill Powell announced.
Wright, age 36, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Wright admitted to working with others to distribute methamphetamine in Harrison County and elsewhere from the fall of 2017 to September 2018.
Wright faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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.
District Woman Found Guilty in March 2013 Slaying of Her HusbandRead the Press Release
WASHINGTON - Diana Lalchan, 33, of Washington, D.C., was convicted today of Voluntary Manslaughter while Armed and Possession of a Firearm During a Crime of Violence in the 2013 slaying of her husband, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for June 14, 2019, and held Lalchan without bond pending the sentencing hearing.
According to the government’s evidence, on March 28, 2013, at approximately 12:05 a.m., Lalchan called 911 and reported that she had just shot her husband inside their apartment in the 1200 block of Fourth Street SW. The Metropolitan Police Department (MPD) responded to the scene and found her inside the apartment, holding a cell phone. Police found her husband, Christopher Lalchan, 36, lying on the floor, unconscious and unresponsive. Mr. Lalchan was suffering from an apparent gunshot wound to the back of the head. The defendant was placed under arrest. A search of the residence revealed a semi-automatic handgun and three shell casings on the floor.
Lalchan had been married to Mr. Lalchan since October of 2008. After the shooting, Lalchan told police that her husband had asked her to come home on the evening of March 27, 2013, so that the two could have a meeting regarding their marriage. After having dinner, Lalchan said that an argument ensued that escalated and de-escalated for several hours. Ultimately, according to the government’s evidence, she fired three shots at Mr. Lalchan. According to the forensic evidence, the first shot was fired into the kitchen. The second shot was fired next to Mr. Lalchan’s head. A third shot was fired into the back of his head. The defendant claimed to be a victim of domestic abuse and said that she acted in self-defense.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of the MPD detectives and officers who investigated the case. U.S. Attorney Liu also thanked Paralegal Specialists Stephanie Gilbert, Kelly Blakeney, Stephanie Siegerist, Alesha Matthews, Meredith McGarrity, and Sharon Newman; Criminal Investigators Nelson Rhone, John Marsh, Tommy Miller, Sharon Johnson, and Zachary McMenamin; U.S. Secret Service Special Agents Steven Baskerville and Ian McIntyre; Litigation Technology Specialists Leif Hickling, Kimberly Smith, William Henderson, Thomas (Ron) Royal, and Paul Howell; Victim/Witness Coordinators Katina Adams-Washington and LaJune Thames; Supply Supervisor Nathan Hawkins; student intern Phillip Green; Victim Advocate Marcia Rinker; and Assistant U.S. Attorney Cynthia Wright, who prosecuted the case.
Detroit woman admits to role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Geronda Wilson, of Detroit, Michigan, has admitted to her involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Wilson, age 43, pled guilty to one count of “Aiding and Abetting the Maintaining Drug-Involved Premises.” Wilson admitted to maintain a home in Morgantown, West Virginia, for the purpose of distributing heroin, oxycodone, a crack cocaine from May 2017 to May 2018.
Wilson faces up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Dallas Man Pleads Guilty to Kidnapping and Conspiracy Charges After Targeting Gay Men for Violent CrimesRead the Press Release
Michael Atkinson, 24, pleaded guilty today to kidnapping and conspiracy charges in connection with his involvement in a scheme to target gay men for violent crimes, announced Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney for the Northern District of Texas Erin Nealy Cox, and Acting FBI Special Agent-in-Charge of the Dallas Division Michael Schneider.
“The Department of Justice will continue to protect individuals and communities from violence based on sexual orientation or gender identity,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department will continue to bring perpetrators of hate crimes to justice.”
“The Northern District of Texas will not tolerate criminals who single out victims based on their sexual orientation,” said U.S. Attorney Erin Nealy Cox. “Unfortunately, this is not the first time we’ve seen despicable crimes committed on apps like Grindr. I want to urge the public to be vigilant online and recognize the dangers that are lurking there.”
“Michael Atkinson targeted the victims in this case because of their sexual orientation. Hate crimes affect not only the victims, but also have a devastating impact on their families and an entire community,” said Michael Schneider, Acting Special Agent in Charge of the FBI Dallas Division. “The FBI works tirelessly with our federal, state, and local partners to thoroughly investigate many types of hate crimes, hold the perpetrators accountable for their actions, and bring justice to the victims.”
According to the plea agreement, Atkinson admitted to joining a conspiracy to use Grindr, a social media dating platform, to lure gay men to areas around Dallas, including a vacant apartment, for robbery, carjacking, kidnapping, and hate crimes. On Dec. 11, 2017, Atkinson reached out to one co-conspirator and asked to join the conspiracy. Following this conversation, Atkinson brought a loaded handgun to a vacant apartment where the victims were being held captive. Upon arriving at the apartment, Atkinson learned that a co-conspirator had sexually assaulted at least one of the victims and that a co-conspirator had wiped human feces on and urinated on another victim. Atkinson remained with the conspirators and allowed a co-conspirator to use his handgun to hold victims in the apartment against their will. Atkinson and a co-conspirator then took one of these victims at gunpoint to the victim’s home in an attempt to steal the victim's property. According to the plea papers, Atkinson witnessed a co-conspirator assault one victim and call the victim gay slurs. In addition, Atkinson admitted to going to local ATMs to withdraw cash from the victims’ accounts.
Atkinson faces a maximum statutory penalty of life in prison for the kidnapping charge and five years in prison for the conspiracy charge, and a fine of up to $250,000 with respect to each offense. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentence will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The FBI’s Dallas Field Office conducted the federal investigation with the assistance and cooperation of the Dallas Police Department. Assistant U.S. Attorney Nicole Dana of the Northern District of Texas and Trial Attorneys Rose E. Gibson and Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information about DOJ’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to DOJ hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Consultants from California and Texas Charged with Visa Fraud and ConspiracyRead the Press Release
SAN JOSE - A federal grand jury indicted Kishore Dattapuram, Kumar Aswapathi, and Santosh Giri, charging the defendants in a visa fraud scheme, announced United States Attorney David L. Anderson and Department of Homeland Security, Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin.
According to the indictment, Dattapuram, 49, of Santa Clara, Aswapathi, 49, of Austin, Texas, and Giri, 42, of San Jose, operated Nanosemantics, Inc., a Santa Clara-based consulting firm whose services included placing skilled foreign workers at software and technology companies in the Bay Area. According to the indictment, the defendants worked together to submit fraudulent H-1B visa applications on behalf of foreign workers in order to gain a competitive advantage over competing firms.
The H-1B visa program allows foreign workers to obtain temporary authorization to live and work for employers in the United States. In order to secure an H-1B visa, an employer or other sponsor must submit an “I-129” petition to the United States Citizenship and Immigration Services. A petition and associated documentation must confirm the existence and duration of the job waiting for the worker, and describe key details including the wages associated with the position.
In this case, the defendants allegedly used Nanosemantics to submit fraudulent I-129 petitions and obtain H-1B visas for workers that the defendants could later place at local companies. By maintaining a group of available workers, the defendants would gain a competitive advantage over consultants that properly applied for paperwork only after matching a qualified worker to and available job. According to the indictment, several of the I-129 petitions submitted by defendants stated that particular workers had specific jobs waiting for them at designated companies when, in reality, the defendants knew that these jobs did not exist. Further, the defendants allegedly sought the cooperation of third parties to conceal their fraud. For example, defendants allegedly orchestrated payments by Nanosemantics to at least one individual for permission to list his company as the employer for foreign workers even though Nanosemantics actually intended to place the workers elsewhere. Further, defendants allegedly coached foreign workers and others, to respond to government inquiries in a way that would prevent the government from discovering the fraud.
In sum, the defendants all were charged with one count of conspiracy to commit visa fraud, in violation of 18 U.S.C. § 371, and ten counts of substantive visa fraud, in violation of 18 U.S.C. § 1546(a).
The defendants were arrested yesterday in their respective towns of residence. Dattapuram and Aswapathi made their initial appearances in federal court in San Jose and Austin, respectively. Giri made his initial appearance today in federal court in San Jose. All three defendants entered pleas of not guilty and were released on bonds. Defendants are next scheduled to appear at 1:30 p.m. on May 13, 2019, for a status conference before the Honorable Judge Edward J. Davila, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of ten years, and a fine of $250,000, plus restitution if appropriate for each violation of 18 U.S.C. § 1546(a) (visa fraud); and a maximum prison sentence of five years, and a fine of $250,000, plus restitution if appropriate for the conspiracy count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney John Bostic is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by U.S. Citizenship and Immigration Services and HSI.
Company based in Mahoning County charged with misprision of a felonyRead the Press Release
Extrudex Aluminum, Inc., an aluminum manufacturing company in Mahoning County, with a parent company in Canada, was charged by information for misprision of felony in connection with a conspiracy to obstruct justice related to an investigation by the Occupational Safety and Health Administration.
As charged in the information, from April 1, 2016, through January 1, 2018, Extrudex, through its employees, concealed felony obstruction of justice offenses from Extrudex management in Canada and further failed to inform law enforcement of the commission of those offenses.
This case was investigated by the U.S. Department of Labor, Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Carmen Henderson and Om Kakani.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s culpability in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only an accusation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Columbus man indicted for robbing banks in Cleveland, Lakewood and EastlakeRead the Press Release
A Columbus man was indicted for robbing banks in Cleveland, Lakewood and Eastlake.
Andre Harris, 59, was indicted on three counts of bank robbery.
He is accused of robbing the Key Bank at 3601 Chester Ave. in Cleveland on February 8, the Fifth Third at 14800 Madison Ave. in Lakewood on February 11 and Chase Bank at 35400 Vine Street in Eastlake on February 15, according to the indictment.
“Bank robberies are not just crimes against financial institutions,” said FBI Special Agent in Charge Eric B. Smith. “They leave bank employees and customers shaken not just in the moment, but sometimes for years after. The FBI will continue to work with our local law enforcement partners to address these violent crimes.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors uniqueto this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These robberies were investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Margaret Kane and Ranya Elzein.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Colombian Banker Extradited for Money LaunderingRead the Press Release
Jaime Alberto Giraldo Alzate will be arraigned today in federal court in Brooklyn before United States Magistrate Judge Sanket J. Bulsara on an indictment charging him with money laundering and money laundering conspiracy. Alzate allegedly laundered over $200,000 for undercover law enforcement agents in his capacity as a Foreign Commercial Business Manager at an international bank in Colombia. Alzate was extradited to the United States from Colombia on March 27, 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI), announced the extradition.
“As alleged, the defendant corruptly abused his position as a bank employee to launder money for undercover agents he believed were narcotics traffickers,” stated United States Attorney Donoghue. “I commend the outstanding investigative work by IRS undercover agents that led to the arrest of the defendant, who boasted he had been laundering drug proceeds for years.”
“The alleged laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” stated IRS-CI Acting Special Agent-in-Charge Larsen. “Without these ill-gotten gains, the traffickers cannot finance their organizations. As the role of IRS CI in narcotics investigations is to follow the money, we are highly adept at financially disrupting and dismantling drug trafficking organizations as well as identifying third parties that facilitate the laundering of these funds such as Alzate. We are proud to provide our financial expertise as we work alongside the United States Attorney’s Office to bring criminals to justice.”
In mid-2016, IRS-CI special agents received information that Alzate was laundering money for narcotics traffickers. As alleged in the indictment, undercover agent (“UC”) met with Alzate and said he wanted to launder money from the United States to Colombia. The UC explained that the people he worked for were “only interested in two things, selling their coke and money.” Alzate responded that he could receive the money via wire transfers and deposit it into two accounts at his bank – up to $130,000 per week – for a fee of four percent of the amount of money laundered. Alzate assured the UC that he had been working at the bank for 27 years and had been “doing this for years.”
Following Alzate’s instructions, in January and April 2017, the UC transferred money from a bank account in Brooklyn to an account at the International Bank. Thereafter, Alzate gave checks to other IRS-CI undercover agents, representing the amount of money laundered, less his four percent fee.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorney Tyler Smith is in charge of the prosecution. The Department of Justice’s Office of International Affairs assisted in the extradition.
The Defendant:
Jairo Alberto Giraldo Alzate
Age: 53
Barranquilla, ColombiaE.D.N.Y. Docket No. 17-547 (ARR)