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Wednesday 13 February 2019
Choctaw Man Pleads Guilty to Burglarizing Procurement OfficeRead the Press Release
Jackson, Miss. – Shelton Shane Chapman, Jr., a member of the Mississippi Band of Choctaw Indians, pled guilty today before U.S. District Judge Carlton Reeves, to burglary within the Pearl River Community of the Choctaw Indian reservation, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
On November 7, 2017, Chapman entered the Mississippi Band of Choctaw Indians’ Procurement Office and stole a Dell bag and several iPhones and iPads. Chapman sold some of the items to two individuals who then pawned the items at a local pawn shop.
Chapman will be sentenced on May 15, 2019, at 9:00 a.m. before Judge Reeves, and faces a maximum penalty of seven years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It is being prosecuted by Assistant United States Attorneys Kimberly Purdie and Kevin Payne.
Career criminal sentenced to prison for methamphetamine trafficking, weapons possessionRead the Press Release
SAVANNAH, GA: A Bryan County man who was part of the gang and drug trafficking conspiracy prosecuted under Operation Vanilla Gorilla has been sentenced to nearly 16 years in federal prison.
Jessie Ray Hurt, 40, of Ellabell, Ga., was sentenced by U.S. District Court Judge William T. Moore, Jr., to 188 months in prison to be followed by four years of supervised release, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. There is no parole in the federal prison system.
Hurt, a convicted felon, was indicted in August 2018 by a federal grand jury as part of Operation Vanilla Gorilla, an investigation targeting the Ghost Face Gangsters, a violent, white supremacist street gang operated largely from inside Georgia’s prison system. Hurt pled guilty in October 2018 to Possession of 5 Grams or More of Methamphetamine and Possession of a Firearm by a convicted felon.
According to facts presented in public records, court proceedings, and court filings, federal, state and local enforcement identified Hurt as a member of a drug trafficking organization through undercover purchases of methamphetamine and a search of Hurt’s home. During the search, investigators found a handgun, prescription narcotics, and a large quantity of methamphetamine hidden in a compartment in the floor of Hurt’s bedroom. Police also seized two shotguns, four rifles, a bucket of ammunition, and drug trafficking paraphernalia.
Hurt’s criminal history spans 21 years, with convictions on charges ranging from driving under the influence to multiple convictions for possession, manufacturing and trafficking methamphetamine, and illegal firearms possession. Most recently, he was released from state prison after serving three years of a total 16-year sentence for violating probation, manufacturing, and possessing methamphetamine, and illegal firearms possession.
“Our communities deserve better than to be victimized repeatedly by career criminals who seem to serve only fractions of their sentences before returning to the streets and to their illegal activities,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “This sentence of nearly 16 years in federal prison means Jessie Ray Hurt will serve real time for his crimes, because there is no parole in the federal prison system.”
“This sentence will ensure the incarceration of a dangerous criminal and contribute to the restoration of order and peace,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the bureau of Alcohol, Tobacco, Firearms and Explosives.
Far too many criminals take advantage of the overburdened state penal system that provides them ample opportunity to avoid serious prison time by routinely being let out early after serving only a fraction of their court ordered sentence,” said Jamie Jones, Special Agent in Charge of the Southeastern Regional Drug Enforcement Office of the Georgia Bureau of Investigation. “Hurt’s refusal to learn from his prior bad choices and own personal desire to continue his criminal lifestyle has finally caught up to him. Almost 16 years of confinement in the federal prison system will certainly provide him ample opportunity to ponder his decision to continue a life of crime.”
This case was prosecuted as an Organized Crime Drug Enforcement Task Forces (OCDETF) case by AUSAs Greg Gilluly and Tania Groover. The OCDETF program is the premier United States Department of Justice enforcement mechanism to identify and dismantle drug trafficking organizations.
Cameron High School Teacher Indicted for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former teacher in Cameron, Mo., has been indicted by a federal grand jury for using three minor victims to produce child pornography.
William Derek Williams, 39, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 12, 2019. Williams formerly was a high school language arts teacher and more recently a part-time high school multimedia teacher at the time of the alleged offense.
The federal indictment charges Williams with three counts of producing child pornography, involving three different minor victims, from Jan. 1, 2013, to Sept. 6, 2018. Williams is also charged with one count of possessing child pornography on Sept. 8, 2018.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Clinton County, Mo., Sheriff’s 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."California Man Sentenced to 8 Years in Prison for Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
PHOENIX – Today, Mauro Veliz, 31, of Heron, Calif., was sentenced by U.S. District Judge Diane J. Humetewa to 96 months in federal prison, to be followed by a lifetime term of supervised release. Veliz will also be required to register as a sex offender. Veliz had previously pleaded guilty to conspiracy to commit sex trafficking of a minor.
Between April 23, 2017 and May 5, 2017, Veliz conspired with others to have the minor victim, who was 15, transported from Arizona to California to engage in sex acts with him. Veliz knew at the time that the victim was a minor. Veliz used Facebook to arrange his trafficking of the victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the FBI’s Greater Phoenix Human Trafficking Task Force, which is a collaboration of numerous law enforcement agencies, including the FBI and the Phoenix Police Department. The prosecution was handled by Robert I. Brooks, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1389-PHX-DJH
RELEASE NUMBER: 2019-012_Veliz
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
27 Indicted in Multi-State ATM Robbery ConspiracyRead the Press Release
PLANO, Texas – U.S. Attorney Joseph D. Brown announced today that 27 Houston residents have been indicted and arrested as the result of an investigation into ATM robberies in the Eastern District of Texas.
From August 2017 through January 2019, the defendants are alleged to have conspired with each other, and others, to participate in and commit at least 47 strong-arm robberies of ATM (Automated Teller Machine) technicians as they attempted to service the machines. In addition to multiple robberies in the Eastern District of Texas, including robberies in Plano, Allen, McKinney, and Texarkana, the suspects are accused of robberies in multiple other cities throughout Texas, and in Georgia, North Carolina, Missouri, Arkansas, Florida, Illinois, and Tennessee. Estimated losses to financial institutions are believed to be approximately $2,779,000. The suspects are linked to a criminal gang based in the 5th Ward area of Houston known as the Market Street Money Gang, or MSMG. A federal grand jury indicted seven individuals in August 2018 charging them with conspiracy to commit robbery interfering with interstate commerce and robbery interfering with interstate commerce. Since that time, superseding indictments have been returned by the grand jury and the number of defendants charged has increased to 27.
Twenty-three of the indicted defendants have been arrested. A remaining four suspects are at large. The arrested individuals named in the indictment of Feb. 6, 2019, are as follows:
- PAUL ROOSEVELT BANK, III, 24;
- JOHN FELTON BOUTTE, JR. 29;
- DAVID BENFORD DORSEY, 38;
- KEITH DEWAYNE DORSEY, 30;
- KEVIN DEWAYNE HARRIS, 32;
- JESSE BANKS MOTTON, JR., 33;
- CHARLES JERMAINE RANDLE, 33;
- GEORGE SHERMAN BECKS, 25;
- MARQUETT CAINS DORSEY, 34;
- PATRICK RENOID SMITH, 32;
- BRANDON JAMAL PINSON, 32;
- TRACY ONEAL BLUNT, JR., 25;
- CYRUS RAY MCQUARN, 32;
- DEANDRE MARKER ADAMS, 43;
- LESLIE JAMES ADAMS, 26;
- TYRONE CHRISTOPHER GOREE, 36;
- LORIE ANITA MONTGOMERY, 26;
- MAJEL D. MAPP, 24;
- LATRELL RAYSHOD PHILLIPS, 23;
- DARIUS MARQUISE CELESTINE, 29;
- ALLEN JOSEPH LANCELIN, 26;
- OLIVER MAVRICK ARRINGTON, 30; and
- MARSHALL LEE WARE, JR., 39, all of Houston.
If convicted, the defendants could each face up to 20 years in federal prison.
“This was a large criminal enterprise,” said U.S. States Attorney Joseph Brown. “The criminal activity spanned a good part of the country. They hurt people, scared people, and a lot of money was stolen. The FBI and our state and local partners worked hard to put these cases together, and with the breadth of this conspiracy, that was a difficult task. We intend to make sure these people go to prison.”
This case is being investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, Dallas Police Department, Houston Police Department, Plano Police Department, McKinney Police Department, Allen, Police Department, Texarkana Police Department, and Nashville, Arkansas Police Department. This case is being prosecuted by Assistant U.S. Attorneys in the Plano office.
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
10 Defendants Arrested in International Operation and Charged in Manhattan Federal Court with International Wire Fraud and Money Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Troy Miller, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced a multinational operation involving 10 arrests in the United States and three other countries, and the unsealing of Indictments and filing of a related Complaint charging MARTINS APSKALNS, PAVELS BERNCS, JANIS BERNS, RAITIS GRIGORJEVS, SERGEJS LOGINS, DIANA MAKSIMOVIC, AGRIS PETROVS, IGORS PIRINS, VALTERS VOLKSONS, and VLADISLAV ZAPOLSKIJ with conspiracy to commit wire and bank fraud and conspiracy to commit money laundering. PAVELS BERNCS was arrested in Helsinki, Finland, and VLADISLAV ZAPOLSKIJ was arrested in Vilnius, Lithuania, and both are pending extradition to the United States; MARTINS APSKALNS and IGORS PIRINS were arrested in Kuldiga, Latvia, extradited to the United States, and arraigned before U.S. Magistrate Judge Debra Freeman on December 21, 2018; DIANA MAKSIMOVIC was arrested in Vilnius, Lithuania, and SERGEJS LOGINS was arrested in Riga, Latvia, and both were extradited to the United States and arraigned before U.S. District Judge Jesse M. Furman on February 4, 2019; and JANIS BERNS, RAITIS GRIGORJEVS, AGRIS PETROVS, and VALTERS VOLKSONS were arrested in Queens, New York, and presented before Magistrate Judge Ona T. Wang on December 3, 2018. APSKALNS, BERNCS, LOGINS, MAKSIMOVIC, PIRINS, and ZAPOLSKIJ are charged by Indictment, and BERNS, GRIGORJEVS, PETROVS, and VOLKSONS are charged by Complaint. The case has been assigned to United States District Judge Jesse M. Furman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants used an elaborate network of fictitious classic car dealers and collectors to take their victims for a ride financially. Thinking they were remitting money to purchase rare automobiles, victims were instead sending large sums to bogus auto transport companies that were really just vehicles from which the defendants allegedly vacuumed up the proceeds of their fraudulent scheme. Thanks to our law enforcement partners here in New York and in Latvia, Lithuania, and Finland, the defendants’ once-lucrative joyride is over.”
FBI Assistant Director William F. Sweeney Jr. said: “Victims of this fraud not only believed they were getting what they paid for, they were often stuck paying for the classic automobiles they never received. The FBI New York Eurasian Organized Crime Task Force would never have been able to bring these criminals to justice without the help of our task force partners, but also the work and partnership with our international partners in Latvia, Lithuania and Finland. We cannot stress enough how important it is for these suspects to understand the FBI has the ability to bring them back to the United States to face justice and punishment for their crimes.”
CBP New York Director of Field Operations Troy Miller said: “CBP, working in partnership with U.S. Attorney’s office, FBI, and the New York Police Department, demonstrated vigilance and exceptional skill in targeting and detecting this scheme, directly leading to the apprehension and prosecution of the alleged conspirators.”
NYPD Commissioner James P. O’Neill said: “In this increasingly connected world, it has never been more important for the NYPD and our law enforcement partners, in America and abroad, to work in concert toward our shared public-safety goals. It is due to that close cooperation that – after more than two years and across multiple continents – this investigation into international wire fraud and money laundering has successfully resulted in arrests. I commend and thank the attorneys from the Southern District for bringing this case forward, and all the FBI, CBP, and NYPD investigators for their dedication. Together, we will continue to be relentless in fighting crime that impacts the people we serve wherever, and however, it occurs.”
According to the allegations in the Indictments and the Complaint:[1]
From at least January 2016 through December 2018, the defendants participated in a fraudulent scheme that most commonly operated as follows: first, co-conspirators impersonated automotive dealers and collectors and claimed to be selling classic cars on various well-known internet auction and trading websites. Victims responding to the ads were in fact corresponding with a fraud scheme participant. After the victims and co-conspirators came to terms on a sale price, including down payment and shipping costs, victims were next directed to purported automotive transportation companies and were told that these companies would accept payment and transport the cars. These companies were in fact shell corporations established by the conspiracy to help perpetrate the fraud, whose corporate bank accounts were established and controlled by the defendants and co-conspirators, awaiting wired funds from the fraud’s victims. After victims had wired payment, the defendants and co-conspirators went to the banks to drain the victim’s funds, often starting the same day payment had been transmitted, withdrawing from different bank branches in numerous withdrawals on the same day, and withdrawing in denominations that were varied and often kept to an amount that they believed would prevent the financial institutions from recording and reporting the fraud. The defendants and other co-conspirators then sent the fraud proceeds outside the United States to Eastern European countries, from where the defendants and many of their co-conspirators originated. Some of the defendants maintained managerial roles, recruiting co-conspirators to participate and providing directions and victim information to scheme participants once the co-conspirators were inside the United States. Victims never received the goods they believed they had purchased, and many were unable to recover their money or were left paying loans for cars that were never truly for sale.
Each of the defendants is charged with one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. The charges contained in the Indictments and the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
* * *
The investigation was conducted in close cooperation with the International Cooperation Department and the Criminal Investigation Department of the Central Criminal Police Department, State Police of Latvia; Prosecutor’s General Office of Latvia, International Cooperation Division; Police Department of Lithuania, Vilnius County Police Headquarters, Crimes Against Property Board; Lithuanian Criminal Police Bureau, International Liaison Board; Prosecutor General’s Office of the Republic of Lithuania; Vilnius Regional Prosecution Office; and the National Bureau of Investigation of Finland. The Department of Justice Criminal Division’s Office of International Affairs also provided significant assistance.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jeffrey Coffman, Matthew Hellman, Emily Johnson, Daniel Nessim, and Thane Rehn are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the Complaint, and the descriptions of the Indictments and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 12 February 2019
Un hombre de Oregón se declara culpable de un delito de odio federal por amenazar con llevar a cabo una masacre en una iglesia en EugeneRead the Press Release
El Departamento de Justicia anunció hoy que el acusado Benjamín Jaramillo Hernández, de 69 años, se declaró culpable hoy de un delito de odio federal y un cargo de posesión ilícita de munición que se basan en una serie de acciones cada vez más amenazantes y violentas con la iglesia católica St. Mary Catholic Church en Eugene como objetivo en septiembre del 2018. Lo anunciaron Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles, y Billy J. Williams, el Fiscal Federal para el Distrito de Oregón.
«La División de Derechos Civiles se mantiene firme en su creencia que todas las personas deben vivir libres de amenazas de violencia», declaró el Fiscal General Auxiliar, Eric Dreiband. «El Departamento de Justicia seguirá defendiendo los derechos de individuos que se convierten en víctimas por ejercer sus creencias religiosas y enjuiciaremos a cualquiera que vulnere esos derechos».
«Las leyes contra los delitos de odio protegen valores estadounidenses fundamentales, como la libertad del culto. La declaración de culpabilidad de hoy reafirma el principio básico de que nadie debe vivir con miedo por motivos de su religión», dijo el Fiscal Federal Williamson. «Nuestra oficina continuará investigando activamente y enjuiciando los delitos de odio y buscando la justicia para todas las víctimas».
«Amenazas de acciones violentas atacan el derecho fundamental como estadounidense a vivir, trabajar y rezar sin miedo. Trabajando con la comunidad y nuestras agencias asociadas del orden público, nos fortalecemos gracias a nuestros valores comunes de mantener a salvo a todos independientemente de su raza, religión o creencias políticas», afirmó el Agente Especial Encargado Renn Cannon.
Según los documentos judiciales, el 9 de septiembre del 2018, Hernández fue escoltado fuera de la propiedad de St. Mary tras un ataque de ira durante el sacramento de la comunión. Cinco días más tarde, el 14 de septiembre, un empleado de la iglesia informó a la Policía de Eugene que alguien había dispensado aerosol de pimienta en los mangos de las puertas exteriores y en la ranura para el correo de la puerta principal de la oficina de St. Mary. Los empleados declararon sentir una sensación de ardor en sus dedos y dificultades para respirar. Un policía de Eugene y un agente del FBI identificaron a Hernández en unas videosecuencias de vigilancia de la iglesia como la persona responsable de los dos incidentes.
El 16 de septiembre del 2018, a Hernández lo vieron nuevamente cerca de St. Mary. Un testigo vio a Hernández al otro lado de la calle de la iglesia cuando este paró cerca de la Biblioteca Municipal de Eugene y gritó al testigo, «Aquí tengo algo para ti», mientras señalaba a una bolsa que llevaba encima.
Varios días más tarde, el 20 de septiembre, los empleados de St. Mary avisaron que habían encontrado una nota amenazante y siete balas explosivas de una Sig de 10mm en la oficina. La nota amenazaba a la iglesia con «2 MP5 con 50 cartuchos cada uno», un tipo de metralleta. La nota concluyó así: «A Eugene lo van a poner en el [palabrota] mapa».
Un policía de Eugene revisó nuevamente las videosecuencias de vigilancia de la iglesia e identificó a Hernández como el individuo que había dejado la nota y las balas. El 21 de septiembre del 2018, Hernández fue detenido por la Policía de Eugene en la Biblioteca Municipal de Eugene y acusado de intimidación en segundo grado, vandalismo en segundo grado y dos cargos de entrada no autorizada en segundo grado. Durante un registro de Hernández, los agentes hallaron una lata parcialmente vacía de aerosol de pimienta, tres cartuchos de escopeta .410 y 13 balas explosivas de una Sig de 10mm.
Hernández fue acusado en la lectura penal de cargos de un cargo de obstrucción al libre ejercicio de creencias religiosas y otro de delincuente en posesión de municiones.
Hernández se enfrenta a una pena máxima de 20 años de cárcel y una multa penal de hasta 250.000 $ por el delito de odio, y una pena máxima de 10 años de cárcel por la posesión ilícita de municiones. Hernández será condenado el 22 de mayo del 2019 ante la Juez del Tribunal de Distrito Federal Ann Aiken.
Este caso lo están enjuiciando Gavin Bruce, un Fiscal Federal Auxiliar de la Fiscalía Federal de Oregón, y Cameron Bell, un Abogado de Litigios de la División de Derechos Civiles del Departamento de Justicia de los EE. UU. El caso fue investigado por la División del FBI en Eugene y la Policía de Eugene.
Para más información sobre el trabajo del Departamento de Justicia para combatir y prevenir los delitos de odio, vaya a www.justice.gov/hatecrimes: es un único portal con enlaces a recursos del Departamento de Justicia relacionados con delitos de odio para la policía, los medios de comunicación, investigadores, víctimas, grupos de apoyo y otras organizaciones y personas.
Truck Driver for Post Office Pleads Guilty to Stealing MailRead the Press Release
WICHITA, KAN. – A former contract truck driver for the post office in Rose Hill pleaded guilty Tuesday to stealing items from the mail, U.S. Attorney Stephen McAllister said.
Manuel De La Cruz, 30, Wichita, Kan., pleaded guilty to three counts of stealing items from the mail. In his plea, he pleaded guilty to stealing more than $6,500 worth of items from the mail. Stolen items included a Lenova laptop computer, an upper receiver for an AR 15 rifle, an AR 15 rifle barrel and a gas block for an AR 15.
Sentencing is set for April 29. He faces a penalty of up to five years in federal prison and a fine up to $250,000.
McAllister commended the U.S. Postal Service – Office of Inspector General and Assistant U.S. Attorney Alan Metzger for their work on the case.
Three Individuals Sentenced to Prison for Their Roles in Bribery Schemes Involving VA Program for Disabled Military VeteransRead the Press Release
Two owners and an employee of for-profit, non-accredited schools were sentenced during the last two days for bribing a public official at the U.S. Department of Veterans Affairs (VA) in exchange for the public official’s facilitation of over $2 million in payments that were supposed to be dedicated to providing vocational training for military veterans with service-connected disabilities.
Albert Poawui, 41, of Laurel, Maryland, was the owner of Atius Technology Institute (“Atius”), a school purporting to specialize in information technology courses. Sombo Kanneh, 29, of McLean, Virginia, was Poawui’s employee at Atius. Michelle Stevens, 57, of Waldorf, Maryland, was the owner of Eelon Training Academy, a school purporting to specialize in digital media courses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Special Agent in Charge Kim Lampkins of U.S. Department of Veterans Affairs Office of Inspector General (OIG) Mid-Atlantic Field Office made the announcement.
All three defendants were sentenced by U.S. District Judge John D. Bates of the District of Columbia. Poawui was sentenced to serve 70 months in prison followed by three years of supervised release and ordered to pay $1.5 million in restitution to the VA. Kanneh was sentenced to serve 20 months in prison followed by three years of supervised release and was ordered to pay $113,227.30 in restitution to the VA and to forfeit $1.5 million. Stevens was sentenced to serve 30 months in prison followed by three years of supervised release and ordered to pay $83,000 in restitution to the VA and to forfeit $83,000.
James King, the VA official who all three defendants bribed, has pleaded guilty to bribery, wire fraud, and falsification of documents, and will be sentenced on Friday, Feb. 15.
The Vocational Rehabilitation and Employment (VR&E) program is a VA program that provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
According to admissions made in connection with Poawui and Kanneh’s pleas, in or about August 2015, Poawui and King agreed that Poawui would pay King a seven percent cash kickback of all payments made by the VA to Atius. In exchange, King steered VR&E program veterans to Atius regardless of the veterans’ educational needs or interests and notwithstanding their repeated complaints about the poor quality of education at Atius.
Between Aug. 2015 and Dec. 2017, Poawui, King, and the scheme’s other participants caused the VA to pay Atius approximately $2,217,259.44. Poawui paid King over $155,000 as part of the illicit bribery scheme. These bribery payments were hand-delivered by Poawui or Kanneh to King or King’s assistant, who was a veteran enrolled in the VR&E program. Kanneh admitted that she routinely moved money between Atius’s bank accounts to facilitate bribe payments to King.
Poawui also admitted that he made numerous false representations to the VA to enhance the scheme’s profits. For example, Poawui certified to the VA that veterans attending Atius were enrolled in up to 32 hours of class per week, when in fact he knew that Atius offered a maximum of six weekly class hours. After the VA initiated an administrative audit of Atius, Poawui and King took steps to conceal the truth about earlier misrepresentations they had made to the VA.
According to admissions made in connection with Stevens’ plea, she created Eelon Training Academy after learning about the VR&E program from King. In or about Sept. 2016, King facilitated the first tuition payment from the VA to Eelon. Shortly after receiving this payment, King told Stevens that she should give him seven percent of the monies paid by the VA to Eelon. King proceeded to steer veterans under his supervision to Eelon regardless of their resistance to attending Stevens’ school.
Stevens admitted to later making two cash payments of $1,500 to King in furtherance of her scheme to bribe King in exchange for King sending veterans under his supervision to Eelon and facilitating the VA’s payments to Stevens. In total, Stevens received approximately $83,000 from the VA for education that she purported to provide to veteran students. Stevens submitted invoices to the VA amounting to no less than $300,000 for the tuition and equipment of seven students, but was not paid the balance of the invoice amount due to the VA’s ongoing investigation into Eelon following complaints by students about the poor quality of education.
In an effort to procure the outstanding payments from the VA, Stevens made numerous fraudulent misrepresentations to the VA, and maintained fraudulent student files in the event of an audit by the VA. For example, Stevens emailed to the VA an “attendance” sheet for eight students. The attendance sheet was created by Stevens and included handwritten check marks purporting to represent the dates that the students attended class. In fact, as Stevens well knew, the students had not attended class on many of those dates nor was class even held on many of those dates.
Poawui, Kanneh and Stevens’ sentences are the result of an ongoing investigation by the FBI’s Washington Field Office and the Department of Veterans Affairs Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Three Individuals Sentenced to Prison for Their Roles in Bribery Schemes Involving VA Program for Disabled Military VeteransRead the Press Release
WASHINGTON – Two owners and an employee of for-profit, non-accredited schools were sentenced during the last two days for bribing a public official at the U.S. Department of Veterans Affairs (VA) in exchange for the public official’s facilitation of over $2 million in payments that were supposed to be dedicated to providing vocational training for military veterans with service-connected disabilities.
Albert Poawui, 41, of Laurel, Md., was the owner of Atius Technology Institute (“Atius”), a school purporting to specialize in information technology courses. Sombo Kanneh, 29, of McLean, Va., was Poawui’s employee at Atius. Michelle Stevens, 57, of Waldorf, Md., was the owner of Eelon Training Academy, a school purporting to specialize in digital media courses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Special Agent in Charge Kim Lampkins of U.S. Department of Veterans Affairs Office of Inspector General (OIG) Mid-Atlantic Field Office made the announcement.
All three defendants were sentenced by U.S. District Judge John D. Bates of the District of Columbia. Poawui was sentenced to serve 70 months in prison followed by three years of supervised release and ordered to pay $1.5 million in restitution to the VA. Kanneh was sentenced to serve 20 months in prison followed by three years of supervised release and was ordered to pay $113,227.30 in restitution to the VA and to forfeit $1.5 million. Stevens was sentenced to serve 30 months in prison followed by three years of supervised release and ordered to pay $83,000 in restitution to the VA and to forfeit $83,000.
James King, the VA official who all three defendants bribed, has pleaded guilty to bribery, wire fraud, and falsification of documents, and will be sentenced on Friday, Feb. 15.
The Vocational Rehabilitation and Employment (VR&E) program is a VA program that provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
According to admissions made in connection with Poawui and Kanneh’s pleas, in or about August 2015, Poawui and King agreed that Poawui would pay King a seven percent cash kickback of all payments made by the VA to Atius. In exchange, King steered VR&E program veterans to Atius regardless of the veterans’ educational needs or interests and notwithstanding their repeated complaints about the poor quality of education at Atius.
Between August 2015 and December 2017, Poawui, King, and the scheme’s other participants caused the VA to pay Atius approximately $2,217,259.44. Poawui paid King over $155,000 as part of the illicit bribery scheme. These bribery payments were hand-delivered by Poawui or Kanneh to King or King’s assistant, who was a veteran enrolled in the VR&E program. Kanneh admitted that she routinely moved money between Atius’s bank accounts to facilitate bribe payments to King.
Poawui also admitted that he made numerous false representations to the VA to enhance the scheme’s profits. For example, Poawui certified to the VA that veterans attending Atius were enrolled in up to 32 hours of class per week, when in fact he knew that Atius offered a maximum of six weekly class hours. After the VA initiated an administrative audit of Atius, Poawui and King took steps to conceal the truth about earlier misrepresentations they had made to the VA.
According to admissions made in connection with Stevens’ plea, she created Eelon Training Academy after learning about the VR&E program from King. In or about September 2016, King facilitated the first tuition payment from the VA to Eelon. Shortly after receiving this payment, King told Stevens that she should give him seven percent of the monies paid by the VA to Eelon. King proceeded to steer veterans under his supervision to Eelon regardless of their resistance to attending Stevens’ school.
Stevens admitted to later making two cash payments of $1,500 to King in furtherance of her scheme to bribe King in exchange for King sending veterans under his supervision to Eelon and facilitating the VA’s payments to Stevens. In total, Stevens received approximately $83,000 from the VA for education that she purported to provide to veteran students. Stevens submitted invoices to the VA amounting to no less than $300,000 for the tuition and equipment of seven students, but was not paid the balance of the invoice amount due to the VA’s ongoing investigation into Eelon following complaints by students about the poor quality of education.
In an effort to procure the outstanding payments from the VA, Stevens made numerous fraudulent misrepresentations to the VA, and maintained fraudulent student files in the event of an audit by the VA. For example, Stevens emailed to the VA an “attendance” sheet for eight students. The attendance sheet was created by Stevens and included handwritten check marks purporting to represent the dates that the students attended class. In fact, as Stevens well knew, the students had not attended class on many of those dates nor was class even held on many of those dates.
Poawui, Kanneh, and Stevens’ sentences are the result of an ongoing investigation by the FBI’s Washington Field Office and the Department of Veterans Affairs Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Three Individuals Indicted for Theft and Wire Fraud Committed Against Mississippi Band of Choctaw IndiansRead the Press Release
Jackson, Miss. – Randy Lamar Anderson, 46, of Conehatta, Kevin Edwards, 47, of Walnut Grove, and Roderick Bell, 40, of Philadelphia, were recently indicted by a federal grand jury for theft or embezzlement and wire fraud in separate schemes to defraud the Mississippi Band of Choctaw Indians government with false claims for travel reimbursement payments, announced United States Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Anderson and Edwards are each separately charged with one count of theft and two counts of wire fraud. Bell is charged with one count of theft and one count of wire fraud.
According to the indictments, between March 2015 and December 2017, the three men are alleged to have forged hotel bills and receipts and submitted those documents to the Tribal government for reimbursement for official business travel.
Edwards will appear before United States Magistrate Judge Linda R. Anderson in Jackson, Mississippi, today, Tuesday, February 12, 2019, at 1:30 pm for his arraignment. Anderson and Bell will appear before Judge Anderson for their arraignment on February 13, 2019, at 1:30 pm.
Theft or embezzlement from a Tribal Organization carries a maximum sentence of imprisonment of five years. Wire fraud carries a maximum term of imprisonment of twenty years. Each charge can merit a fine of up to $250,000 and up to three years of supervised release.
U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The Sheriff’s Offices in Leake, Neshoba and Newton Counties assisted with the arrests. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein and Special Assistant United States Attorney Kevin Payne.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law.
Tampa Man Pleads Guilty to Possessing A Firearm as A Convicted FelonRead the Press Release
Tampa, Florida – Jauwan Smith (22, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. His sentencing date has not yet been set.
According to the facts presented at the plea hearing, on the evening of March 6, 2018, officers from the Tampa Police Department observed Smith walking near Chelsea Street and 25th Street North in Tampa. When the officers approached Smith and engaged him in conversation, he admitted that he was armed with a gun. The officers then found a loaded 7.56 mm caliber pistol, containing seven rounds of ammunition, in his waistband.
In 2014, in Hillsborough County, Smith was convicted of felony offenses, including armed robbery and being a felon in possession of a firearm. As a result, he is prohibited from possessing a firearm or ammunition.
This case was investigated by the FBI and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Student Pleads Guilty to Computer Fraud, Trying to Preserve ScholarshipRead the Press Release
Memphis, TN –Michael Geddati, 20, of Memphis has pleaded guilty to computer fraud. U.S. Attorney D. Michael Dunavant announced the plea today.
According to the information presented in court, during the 2017-18 academic year, Michael Geddati was a freshman pre-med major at Rhodes College in Memphis. He received a scholarship valued at approximately $30,000 per semester. Continued receipt of the scholarship depended, in large part, on maintaining a particular grade-point average.
Beginning in approximately December 2017 and continuing through the spring semester, Geddati obtained credentials and passwords for instructors whose courses he was taking and then unlawfully accessed those instructors' accounts to downloaded exams and exam keys and change his official recorded grades.
Near the end of the spring term, one of Geddati's professors noticed a discrepancy between her off-line and online records for Geddati. According to her offline grade book, the grade that Geddati had earned in class was different, and lower, than the grade reflected in online records kept by Rhodes. A subsequent review of the college’s servers indicated that a residential IP address had been used to access the professor's account, as well as the accounts of several other faculty members, all of whom had Geddati as a student. Rhodes' server logs also contained evidence that in the preceding months, a laptop with the identifier "Michaels-MBP," also associated with Geddati, used an internal Rhodes IP address to access both Geddati’s student account and the credentials of his instructors. A total of more than 100 unauthorized access events were recorded. The same IP had also been used to access Michael Geddati's student account.
Records obtained during the investigation showed the IP address in question was assigned to Geddati's residence in Memphis during the period of unauthorized access to the Rhodes accounts. Forensic examination of Geddati's laptop confirmed that the laptop’s MAC (media access control) address matched that found on Rhodes’ servers and used in the unauthorized access to the faculty accounts.
U.S. Attorney D. Michael Dunavant said, "Protection of academic institutions and their computer systems infrastructure is a critical mission for us. Unfortunately, this defendant chose to use dishonest tactics to exploit the integrity of the Rhodes computer system for his own unjust benefit, and has now lost the opportunity for a quality higher education degree at a premier college. This case demonstrates the commitment and ability of the U.S. Attorney’s office, working with our federal law enforcement partners, to detect compromises of sensitive academic information, hold offenders accountable for such fraudulent schemes, and recover restitution for victimized institutions."
"This case is a great example of the cooperation between the target of a cyber-attack and law enforcement, and further illustrates that no one is immune from cyber intrusion," said M.A. Myers, Special Agent in Charge of the Memphis Field Office. "With continued partnerships with the community, cyber-crimes will not go unanswered and those who have committed or are committing similar computer intrusions are on notice that the FBI can and will identify them, and we will make every effort to bring them to justice."
"We take academic integrity and the security of our computer systems very seriously. Each of our students pledges to uphold the Rhodes College Honor Code. Our community does not tolerate lying, cheating, or stealing. We would like to thank the agents of the FBI’s Memphis Field Office who investigated this matter and the U.S. Attorney and assistant U.S. attorneys in the Western District of Tennessee who prosecuted it," Rhodes College Provost Dr. Milton Moreland said.
Rhodes convened an honor council; following a hearing, Mr. Geddati was expelled. Pursuant to the plea agreement presented in court, Geddati has agreed to make restitution to Rhodes College that will include the value of his unearned scholarship.
Geddati faces a maximum penalty of five years imprisonment, $ 250,000 fine and supervised probation. Sentencing is set for May 24, 2019, before U.S. District Court Judge Thomas L. Parker.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
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Stockton Man Sentenced to Life in Prison for Long-Term Sexual Abuse of Minors Including His Own ChildrenRead the Press Release
SACRAMENTO, Calif. — Rodney Flucas, 50, of Stockton, was sentenced today to life in prison for transportation of minors with intent to engage in criminal sexual activity, 10 years in prison for transporting an adult daughter across state lines with intent to engage in incest and 20 years in prison for attempted witness tampering, U.S. Attorney McGregor W. Scott announced. U.S. District Judge Kimberly J. Mueller ordered the sentences to be served consecutively.
U.S. Attorney Scott stated: “The defendant’s conduct is an affront to the most fundamental values of our society and family structures. He repeatedly preyed upon his own children, taking advantage of their innocence and the trust they had in him. The defendant has demonstrated that he will never stop preying upon vulnerable victims, and today’s sentence will help to ensure that he does not repeat these crimes in the future.”
“No sentence can ever erase the pain that the victims have endured as a result of years of abuse and reliving those experiences during their courageous testimony in court,” said Special Agent in Charge Sean Ragan of the Sacramento Field Office. “We hope today’s sentence offers some solace to the victims and encourages those who are enduring similar, unreported circumstances to seek help from law enforcement. The FBI stands with our federal, state, and local partners to investigate these crime to ensure those who exploit our community’s vulnerable, innocent children face justice.”
According to court documents and evidence produced at trial, Flucas engaged in long‑term, concurrent sexual abuse of four of his daughters, a son, and two other young women, all of whom were minors when Flucas began abusing them. The abuse came to light in February 2017 when one of his teenaged daughters tried to commit suicide by driving into a lamppost, in the hope that her death would lead to the discovery of the abuse. She was transported to the hospital where she disclosed the abuse to authorities. From that point, at least six other victims have disclosed sexual abuse that Flucas inflicted on them since they were children. They made such disclosures despite Flucas’s aggressive campaign to undermine the credibility of his victims and his attempts to direct his victims to lie to child protection authorities and the police. Ultimately, however, Flucas’s victims disclosed their abuse notwithstanding the family mantra: “What happens in the family, stays in the family.” DNA testing confirmed that Flucas is the father of 10 children born to victims who testified in this case, including three children born to one of Flucas’s daughters. Flucas has admitted to fathering at least 37 children by numerous women.
According to evidence produced at trial and during sentencing, Flucas began abusing five of his victims when the family lived in Valdosta, Georgia around the year 2000. He owned or rented upward of four houses on the same street in Valdosta where his wife, ex-wife, other partners and numerous children lived. In 2014, the Georgia Division of Family and Children Services began to investigate allegations of child abuse, made by a grandmother of four of Flucas’s children, including allegations that Flucas had impregnated two of his daughters. They closed its investigation, and Flucas moved his family to Americus, Georgia, where he continued to sexually abuse some of his children.
By September 2014, Flucas had again moved the family, including four of his victims, this time to Klamath Falls, Oregon. Once in Oregon, Flucas also began sexually abusing a 15‑year-old girl, who had befriended Flucas’s daughter at school. Flucas invited that girl to move into his home, and he eventually impregnated her when she was 16. He also impregnated an adult daughter for the third time in Oregon. Flucas continued his abuse of his victims throughout their entire time in Oregon.
After more allegations arose in Oregon in 2015, Flucas moved his victims, including the then-pregnant friend of his daughter, to Stockton, where he found employment as a teacher of the deaf and hard of hearing. Flucas continued to sexually abuse his victims in California until the car crash that brought the allegations to light. Evidence at trial showed Flucas kept his abuse secret by abusing his victims behind the locked doors of his bedroom and bedroom closet and by waking his victims in the middle of the night to abuse them while the rest of the family slept.
Evidence at trial also demonstrated that on the heels of his daughter’s disclosure to police in Stockton, Flucas began searching the internet for places to move overseas, including China, Kenya, Ethiopia, Canada, Panama, and Nepal. He also searched for the U.S. dollar to Mexican peso conversion rate. Flucas also told two of his victims that he intended to take them someplace where he could continue the abuse, including places where Flucas believed incest to be legal such as New Jersey, Rhode Island, and Switzerland.
This case was the product of an investigation by the Federal Bureau of Investigation, originating from an investigation by the Stockton Police Department. Assistant U.S. Attorney Jeremy J. Kelley prosecuted the case.
South Bay Man Who Trafficked Hundreds of Pounds of Cocaine from Mexico Sentenced to More than 11 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Torrance man who led a drug ring that used couriers to traffic hundreds of pounds of cocaine from Mexico into the United States and Canada has been sentenced to 135 months in prison on federal felony drug- and money laundering-related charges.
Richard Manuel Pimentel, 45, received the sentence of 11 years and three months’ imprisonment on Monday and was fined $300,000 by United States District Judge Dale S. Fischer.
In October 2018, Pimentel pleaded guilty to one count of conspiracy to distribute cocaine and one count of conspiracy to engage in money laundering.
Pimentel is the fourth and final defendant sentenced in this case by Judge Fischer. His co-defendants, who each pleaded guilty to felony charges in the case, are:
Enrique Rodriguez, 47, of North Hills, who was sentenced to 145 months in federal prison;
Rodolfo Pimentel (Richard Pimentel’s brother), 46, of Palos Verdes Estates, who was sentenced to 87 months; and
Javier Rodriguez, 34, of Mar Vista, who received a 46-month prison sentence.
Between February 2013 and October 2014, Richard Pimentel coordinated with his co-defendants and other co-conspirators to distribute approximately 220 pounds (100 kilograms) of cocaine, according to court documents. He admitted in his plea agreement that he arranged for couriers to transport cocaine obtained from drug suppliers in Mexico to locations in the United States and Canada. He also admitted that he and his co-defendants arranged for the proceeds from cocaine sales – minus their fees – to be sent back to Mexico. Pimentel and his co-conspirators used their cocaine trafficking proceeds to buy vehicles, home improvement and jewelry, among other items of personal use, according to court documents.
He also admitted to arranging the cash payment of a $400,000 debt owed to a cocaine supplier in September 2013, his plea agreement states.
This case was investigated by the Drug Enforcement Administration and IRS Criminal Investigation, with assistance from the Torrance Police Department.
This case is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar of the Organized Crime Drug Enforcement Task Force Section and Cassie D. Palmer of the Public Corruption and Civil Rights Section.
Six Convicted for Roles in Multi-Million Dollar Black Market Peso Exchange Money-Laundering SchemeRead the Press Release
A federal jury in Laredo, Texas found four men and two women guilty for their roles in a two-year multi-million dollar black market peso exchange money-laundering scheme, the Justice Department announced.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Will R. Glaspy of the U.S. Drug Enforcement Administration (DEA) and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (IRS-CI) made the announcement.
Adrian Arciniega-Hernandez, 36, of Nuevo Laredo, Mexico; Adriana Alejandra Galvan-Constantini, 36, and Luis Montes-Patino, 57, both of Irving, Texas, and Ravinder Reddy Gudipati, 61; Harsh Jaggi, 54; and Neeru Jaggi, 51, all of Laredo, Texas, were each convicted of a money laundering conspiracy following a five-week jury trial. In addition, Harsh Jaggi and Adrian Arcinieg-Hernandez were each convicted of two counts of money laundering and Neeru Jaggi was convicted of one count of money laundering. Gudipati was convicted of two counts of money laundering, two counts of causing a trade or business to fail to file a Form 8300, and one count of causing a trade or business to file a Form 8300 containing a material omission and misstatement of facts. Arciniega-Hernandez was found not guilty of a third count of money laundering. Sentencing before U.S. District Judge Marina Garcia Marmalejo of the Southern District of Texas, Laredo Division, who presided over the trial, has not yet been scheduled.
Arciniega-Hernandez, Galvan-Constantini, Montes-Patino, Gudipati, Harsh Jaggi, and Neeru Jaggi were part of a complex money laundering scheme whereby money derived from the sale of drugs in the United States were laundered through businesses in Laredo, in order to return these proceeds to Mexican drug dealers.
According to the evidence presented at trial, from 2011 through 2013, Galvan-Constantini, Montes-Patino and other co-conspirators helped to move millions of dollars derived from the sale of drugs throughout the United States, including New York, Kentucky, North Carolina, Illinois, Mississippi, and multiple cities in Texas to Laredo, Texas. The U.S. currency was moved by couriers, including Galvan-Constantini and Montes-Patino, via cars, commercial buses, commercial planes, and a private plane in bulk cash amounts of up to hundreds of thousands of dollars at a time. The money, in heat sealed packs, uneven rubber-banded money stacks, or loose U.S. currency, arrived in plastic bags, cloth bags, suitcases, backpacks, and even cereal boxes. The money was then distributed among downtown Laredo, Texas perfume stores, including El Reino International Inc., and NYSA Impex LLC. The owner of NYSA Impex LLC, Gudipati, and the owners of El Reino International Inc., Harsh Jaggi, and Neeru Jaggi, accepted loose bulk-cash, even after being told it was “narco dinero.” The store owners also failed to file Form 8300s which are required when more than $10,000 in cash is received by a business, or filed Form 8300s which omitted pertinent information such as the name of the courier who brought the bulk cash.
Co-defendant Carlos Velasaquez, 55, of Laredo, pleaded guilty to conspiracy to launder money on Nov. 7, 2018, and is pending sentencing.
This case was investigated by the DEA and IRS-CI. Trial Attorneys Keith Liddle and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney José Angel Moreno of the Southern District of Texas are prosecuting the case, with the support and assistance of MLARS Trial Attorney Kerry Blackburn.
Six Convicted for Roles in Multi-Million Dollar Black Market Peso Exchange Money Laundering SchemeRead the Press Release
LAREDO, Texas - A federal jury in Laredo has found four men and two women guilty for their roles in a two-year multi-million dollar money-laundering scheme.
U.S. Attorney Ryan Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration (DEA) and Special Agent in Charge D. Richard Goss of the IRS - Criminal Investigation (CI) made the announcement.
Adrian Arciniega-Hernandez, of Nuevo Laredo; Adriana Alejandra Galvan-Constantini and Luis Montes-Patino, both of Irving; and Ravinder Reddy Gudipati, Harsh Jaggi and Neeru Jaggi, all of Laredo, were each convicted of a money laundering conspiracy following a five-week jury trial. In addition, Harsh Jaggi and Adrian Arciniega-Hernandez were convicted of two counts of money laundering, while the jury convicted Neeru Jaggi of one count of money laundering. Gudipati was convicted of two counts of money laundering, two counts of causing a trade or business to fail to file a Form 8300 and one count of causing a trade or business to file a Form 8300 containing a material omission and misstatement of facts.
Sentencing before U.S. District Judge Marina Garcia Marmalejo, who presided over the trial, has not yet been scheduled.
Arciniega-Hernandez, Galvan-Constantini, Montes-Patino, Gudipati, Harsh Jaggi and Neeru Jaggi were part of a complex money laundering scheme whereby money derived from the sale of drugs in the United States were laundered through businesses in Laredo in order to return these proceeds to Mexican drug dealers.
According to the evidence presented at trial, from 2011 through 2013, Galvan-Constantini, Montes-Patino and other co-conspirators helped to move millions of dollars derived from the sale of drugs throughout the United States, including New York, Kentucky, North Carolina, Illinois, Mississippi and multiple cities in Texas to Laredo. Couriers moved the currency, including Galvan-Constantini and Montes-Patino, via cars, commercial buses, commercial planes and a private plane in bulk cash amounts of up to hundreds of thousands of dollars at a time. The money, in heat sealed packs, uneven rubber-banded money stacks or loose U.S. currency, arrived in plastic bags, cloth bags, suitcases, backpacks and even cereal boxes. The money was then distributed among downtown Laredo perfume stores, including El Reino International Inc., which Harsh and Neeru Jaggi owned, and NYSA Impex LLC, owned by Gudipati. Gudipati, Harsh Jaggi and Neeru Jaggi accepted loose bulk-cash even after being told it was “narco dinero.”
The store owners also failed to file Form 8300s which are required when a business receives more than $10,000 in cash, or they filed those forms which omitted pertinent information such as the name of the courier who brought the bulk cash.
Co-defendant Carlos Velasaquez, 55, of Laredo, pleaded guilty to conspiracy to launder money on Nov. 7, 2018, and is pending sentencing.
DEA and IRS-CI conducted the investigation. Assistant U.S. Attorney José Angel Moreno and Trial Attorneys Keith Liddle and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case, with the support and assistance of MLARS Trial Attorney Kerry Blackburn.
Seymour Resident Charged with Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – On February 11, 2019, a complaint was filed in U.S. District Court charging Joshua A. Baird, 35, of Seymour, Tennessee, with robbery of the Tennessee Connect Credit Bureau in Seymour, Tennessee, on the morning of February 11, 2019.
Baird appeared in federal court on February 12, 2019, and a detention hearing was set for 1:30 p.m. on February 14, 2019. This case has not yet been set for trial.
If convicted of bank robbery, Baird faces up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000, any applicable forfeiture, and a $100 special assessment.
The investigation and seizure of evidence was conducted by the Knoxville Division of the FBI Safe Streets Task Force, which is comprised of law enforcement officers from the Knoxville Police Department and Knox County Sheriff’s Office, as well as agents from the FBI. The Sevier County Sheriff’s office also assisted with the investigation and capture of the suspect. Assistant U.S. Attorney Brent N. Jones will represent the United States in court proceedings.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Seven Defendants Convicted in Securities Fraud ConspiracyRead the Press Release
HOUSTON – The last defendant charged in relation to a more than $40 million securities fraud “pump and dump” conspiracy has now been convicted, announced U.S. Attorney Ryan K. Patrick. With the guilty plea of John David Brotherton, 59, of League City, today, all seven defendants charged in the case now stand convicted.
Andrew Ian Farmer, 40, Thomas Galen Massey, 48, Eddie Douglas Austin Jr., 68, Carolyn Price Austin 64, and Charles Earl Grob, 38, all of Houston, and Scott Russell Sieck, 60, of Winter Park, Florida, all had previously entered pleas of guilty for their respective roles in the case.
Farmer, Massey, Eddie Austin, Brotherton, Sieck and Grob admitted they participated in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, these six defendants obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.
As part of her plea agreement, Carolyn Austin admitted she knew of the intended manipulation of the stock prices and acted to conceal this fact from law enforcement.
U.S. District Judge Vanessa D. Gilmore has set Brotherton’s sentencing for June 3, 2019, along with Sieck, Grob and Massey. Eddie and Carolyn Austin are set for June 17, while Farmer will be sentenced June 24. Farmer faces up 10 years in prison, while Carolyn Austin’s conviction carries a possible three-year-term of imprisonment. The remaining defendants face a maximum of five years.
All seven defendants could also be ordered to pay up to a $250,000 fine.
With the exception of Brotherton, who is in now in custody following violations of his conditions of release, the remaining defendants were permitted to remain on bond pending their respective sentencing hearings.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.
Serial Armed Robber Sentenced to Five and A Half Years in PrisonRead the Press Release
SAN FRANCISCO – Harwood Francis McCovey was sentenced today to 66 months in prison for committing multiple armed robberies, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John Bennett. The sentence was handed down by the Honorable Vince Chhabria, United States District Judge.
McCovey, 34, of Hoopa, Calif., pleaded guilty to the robberies on October 16, 2018. According to his plea agreement, in the summer of 2016, McCovey robbed the following three banks and gas station, all while using a dangerous weapon:
- On July 20, 2016, McCovey robbed a bank in Eureka.
- On July 27, 2016, McCovey robbed a credit union in Eureka.
- On July 31, 2016, McCovey robbed a gas station in McKinleyville and absconded with money, cigarettes, and lighters.
- On August 4, 2016, McCovey returned to the credit union in Eureka that he had robbed on July 27, 2016, and robbed it again.
- On August 12, 2016, McCovey robbed a bank in Fortuna.
A federal grand jury indicted McCovey on March 27, 2018, charging him with four counts of armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and one count of robbery affecting interstate commerce (Hobbs Act robbery), in violation of 18 U.S.C. § 1951(a). McCovey pleaded guilty to all five counts.
In addition to the prison term, Judge Chhabria ordered McCovey to serve 5 years of supervised release and to pay $38,486.75 in restitution. McCovey has been in custody since his arrest and will begin serving his sentence immediately.
Assistant U.S. Attorney Sailaja Paidipaty is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of investigations by the Eureka Police Department, the Fortuna Police Department, and the Humboldt County Sheriff’s Office with support from the Federal Bureau of Investigation’s Eureka Resident Agency.
Sabine Parish felon sentenced to 68 months in prison for possessing four firearms at pawn shopRead the Press Release
SHREVEPORT, La. – Joseph Seth Rivers, 36, of Converse, Louisiana, was sentenced Monday to five years and four months in prison by U.S. District Judge S. Maurice Hicks Jr. for possession of firearms by a convicted felon. He was also sentenced to three years of supervised release following imprisonment.
According to the July 10, 2018 guilty plea, Rivers pawned four firearms at a pawnshop in Many, Louisiana on August 20, 2016: a Smith & Wesson revolver, model: 66, .357 caliber; a Ruger rifle, model: 10-22, 22LR caliber; a Browning shotgun, model BPS, 16 gauge; and a Remington rifle, model: 700, .270 caliber. According to store policy, a photo license or identification card must be presented by the person pawning the firearms. Rivers’ name, address and Louisiana driver’s license number matched the information included on the pawn ticket for these four firearms. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In 2009, Rivers was convicted for aggravated assault with a firearm.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Rocky Mount Man Sentenced to 17 Years in Prison for Violent Business RobberiesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, Senior United States District Judge Malcolm J. Howard sentenced DARIUS COTY WHITAKER, 24, to 204 months imprisonment followed by 5 years of supervised release.
WHITAKER was named in an eight-count Indictment filed on April 27, 2017. On December 7, 2017, WHITAKER pled guilty to one-count each of Brandishing a Firearm in Furtherance of a Crime of Violence and Discharging a Firearm in Furtherance of a Crime of Violence.
An investigation conducted by the Rocky Mount Police Department (RMPD) determined that WHITAKER, armed with a handgun, robbed four businesses in the Rocky Mount area from September 6, 2016, to September 15, 2016. On September 19, 2016, an anonymous caller informed the RMPD that WHITAKER appeared to be the suspect in a surveillance video depicting one of the robberies. On September 23, 2016, WHITAKER confessed to law enforcement officials that he committed the four robberies because he was looking for money to buy cocaine. WHITAKER further admitted that he had previously stolen the two firearms he used during the robberies.
The evidence showed that a Dollar Tree employee of the store on Cobb Corners was approaching her vehicle in the parking lot when WHITAKER confronted the employee and demanded she give him the store’s money. When the clerk told WHITAKER she did not have any money, he pulled a stolen handgun from his waistband, pointed it at her, and threatened her with bodily harm. After rifling through her pocketbook and not finding any money, WHITAKER stated, “I know your name, if you call the cops, I’ll come back for you.” WHITAKER then fled the scene on foot.
WHITAKER, armed with a stolen loaded .38 caliber revolver, entered Marathon Gas Station in Battleboro, North Carolina and jumped over the counter. WHITAKER then pointed the firearm at the store clerk’s head and ordered that he open the cash register. As WHITAKER began to approach the register, the clerk grabbed WHITAKER’s firearm. A ground struggle ensued, during which WHITAKER hit the employee several times with his fist and also discharged a firearm round that struck the floor. The employee then bit WHITAKER, causing him to drop the firearm. During the altercation, another store employee activated the security alarm. WHITAKER was able to steal the clerk’s cellphone, identification card, and credit card, before fleeing the scene on foot.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Nash County Sheriff’s Office, Rocky Mount Police Department, and the Halifax County Sheriff’s Office. Assistant United States Attorney James Kurosad prosecuted the case on behalf of the United States.
Ring Leader Pleads Guilty to Drugs and Murder ChargesRead the Press Release
St. Louis, MO – Dionne Lamont Gatling, a/k/a “Cuffy,” 53, of St. Charles, MO, pled guilty to various drug trafficking charges and the use of firearms resulting in death. Gatling appeared today before U.S. District Judge Rodney W. Sippel who accepted his plea and set his sentencing date for May 17, 2019.
According to court documents, Dionne Gatling was the leader and organizer of the Gatling Drug Trafficking Organization which brought heroin, cocaine, methamphetamine and other drugs to the St. Louis area from 2009 to 2014. Gatling arranged for the murders of Theodis Howard and Terrance Morgan. Gatling organized the 2010 murder of Howard as retaliation for Howard’s previous cooperation against Gatling’s brother for drug trafficking. Gatling directed Andre Rush, another conspirator, to kill Morgan in 2013 in order to prevent Morgan from cooperating in the present investigation.
Gatling pled guilty to the following charges: 1) conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine; 2) conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin; 3) attempt to possess with intent to distribute one kilogram or more of heroin; 4) attempt to possess with intent to distribute five kilograms or more of cocaine; and 5) possession of one or more firearms in furtherance of drug-trafficking crime, with deaths resulting. Each of the charges includes a penalty of not less than ten years imprisonment up to life, with the firearms offense required by law to run consecutively to the drug trafficking charges. The parties have recommended a total term of imprisonment of 27 years for all of the offenses. United States District Judge Rodney W. Sippel will determine the appropriate sentenced to be imposed. In determining any actual sentence to be imposed, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Internal Revenue Service.
Port Charlotte Woman Sentenced to Prison for Healthcare FraudRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday has sentenced Lisa McLaren Janick (48, Port Charlotte) to 16 months in federal prison for healthcare fraud.
According to court records, while employed as a marketer at a home health agency, Janick falsified documents relating to patients from her husband’s medical office and created referrals for these patients to receive home health services from her employer, when Janick knew that the patients were not entitled to such services.
Janick’s husband, Dr. John Janick (73, Port Charlotte), was previously sentenced to five months in prison for obstruction of a federal audit.
This case was investigated by FBI and the U.S. Department of Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorney Rachel Jones.
Pittsburgh Woman Stole Mail by Signing Fictitious Name on Return ReceiptRead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of mail theft, United States Attorney Scott W. Brady announced today.
Ekeyma E. Harris, 32, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Harris, on November 21, 2018, obtained a U.S. Postal Express envelope and its contents, addressed to James Holliday at an address on Imogene Road, Pittsburgh, PA 15217, by signing a fictitious name on a Postal Service Domestic Return Receipt, knowing that no individual by the name of James Holliday resided at the Imogene Road address.
Judge Bissoon scheduled sentencing for June 6, 2019, at 10 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Harris remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Harris.
Pittsburgh Felon Pleads Guilty to Gun and Drug Charges Resulting from 3 Separate IncidentsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges involving guns and drugs, United States Attorney Scott W. Brady announced today.
Chance Rice, 26, pleaded guilty yesterday to three counts before United States District Judge Cathy M. Bissoon.
In connection with the guilty plea, the court was advised that Rice was involved in three separate investigations. The first occurred as a result of the September 16, 2015, candlelight vigil shooting. There, multiple people were injured, and multiple guns were fired, as family members and friends held a vigil for the one-year anniversary of the shooting death of a teenage boy in Homewood. The joint investigation between the federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police revealed that the person who fired one of the guns during the vigil shooting later transferred his gun to an individual who was subsequently shot and killed. Before his death, that person transferred the gun to Rice, and Rice transferred it to a defendant named Keith Lovelace. Lovelace and Rice have both been prosecuted in federal court, while the shooter is pending state charges.
The second incident started when Rice told his former girlfriend that he had recently been shot at and that she needed to buy a gun for her own protection. Rice quickly obtained possession of that gun. On October 31, 2015, Edgewood Police officers stopped the vehicle Rice was driving and noticed a spent casing on the dashboard and a black pistol in the car. Rice fled in the vehicle and was a wanted fugitive until his December 18, 2015 arrest. Recorded jail calls include Rice telling others to make sure that an acquaintance puts the gun in his safe. On March 17, 2016, the acquaintance’s residence was searched by Pennsylvania State Parole Agents who located Rice’s gun in the acquaintance’s safe. The acquaintance is also pending federal charges.
Rice had a prior Allegheny County felony conviction in 2014 for carrying a firearm without a license. This conviction made it illegal for Rice to subsequently possess a firearm or ammunition, under federal law.
Finally, Rice was being housed in the Butler County Jail while his cases came to court. On July 10, 2018, the Deputy Warden arranged to have Rice’s cell searched and drug-soaked paper was located. The lab determined that the paper contained a substance called 5 Flouro ADB, a type of synthetic marijuana. In Court, Rice admitted to possessing this drug to provide to other inmates.
Judge Bissoon scheduled sentencing for June 3, 2019 at 10 a.m. The law provides for a total sentence of up to 50 years in prison, a fine of up to $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court ordered that the defendant remain incarcerated.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The ATF conducted the investigation that led to the prosecution of Rice with the valuable cooperation of the Pittsburgh Bureau of Police, the Edgewood Police Department and the Butler County Jail.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Petal Man Sentenced to over Five Years in Federal Prison for Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Gulfport, Miss. – Christopher Columbus Kennedy, 43, of Petal, was sentenced yesterday by U.S. District Judge Sul Ozerden to 66 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration. Kennedy was also ordered to pay a $4,000.00 fine.
On October 1, 2018, a narcotics officer with Gulfport Police Department stopped Kennedy’s car for a traffic violation. Upon approaching the car, the officer smelled marijuana. The officer searched Kennedy’s car and located a handgun with seven rounds of ammunition near the driver’s seat along with marijuana. Kennedy is prohibited from possessing any weapons due to a previous conviction in the Southern District of Mississippi for possessing crack cocaine with the intent to distribute.
Kennedy was indicted on October 23, 2018, for possession of a firearm by a convicted felon. He pled guilty on November 16, 2018.
The case was investigated by the Gulfport Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Owner of North Country Medical Transportation Company Pleads Guilty to Health Care Fraud, Paying KickbacksRead the Press Release
ALBANY, NEW YORK – Arshad Nazir, age 54, of Ticonderoga, New York, pled guilty today to conspiring to defraud Medicaid, and conspiring to pay bribes and kickbacks to Medicaid beneficiaries who used his medical transportation service. He admitted to causing at least $550,000 in losses, and to paying at least $95,000 in bribes and kickbacks.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
- New York State Police Acting Superintendent Keith M. Corlett;
- New York State Workers’ Compensation Fraud Inspector General Catherine Leahy Scott; and
- Rensselaer County District Attorney Mary Pat Donnelly.
Today’s plea is the result of a state and federal investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.
Nazir operated Capital Medallion, Inc. d/b/a Avalanche Taxi Service (“Avalanche Taxi”), a Medicaid-funded transportation company based in Ticonderoga. The New York State Department of Health (“DOH”) paid Nazir’s company at least $2.45 million for Medicaid-funded transportation between 2014 and 2018.
As part of his plea, Nazir admitted that he committed a variety of frauds against Medicaid and DOH, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Avalanche Taxi; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.
Nazir also admitted that he agreed to pay kickbacks and bribes to Medicaid beneficiaries in order to get the beneficiaries to schedule and keep scheduling medical transportation appointments with Avalanche Taxi. Kickbacks included cash, cigarettes and tobacco, and free goods at Nazir’s convenience store in Ticonderoga.
Nazir faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on June 18, 2019 by Senior United States District Judge Thomas J. McAvoy. 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.
Nazir has also agreed to pay $550,000 in restitution to the New York State Department of Health, and to plead guilty to charges of grand larceny and failure to secure workers’ compensation in a parallel case pending in Essex County Court, brought by the Rensselaer County District Attorney as Special Prosecutor.
Charges remain pending against several other defendants. Those defendants are presumed innocent unless and until proven guilty.
The federal charges are being investigated by the FBI and the New York State Police’s Special Investigations Unit, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.
The state charges are being investigated by the New York State Police’s Special Investigations Unit, as well as the Office of the New York State Inspector General, and are being prosecuted by Rensselaer County Assistant District Attorney Carl Rosenkranz.
Additional agencies assisted in this investigation, including the United States Attorney’s Office-Civil Division; Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.
Orlando Resident Sentenced to 23 Years in Prison for Engaging in A Carjacking Spree with A Semiautomatic Assault RifleRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Cedrick Antwain Gant (28, Orlando) to 23 years in federal prison for carjacking and brandishing a semiautomatic assault weapon during an attempted carjacking. Gant had pleaded guilty on June 28, 2018.
According to court documents, on September 25, 2017, Gant, brandishing a loaded semiautomatic assault rifle, approached an individual as they drove into their driveway at a home in Eustis. As the victim exited the vehicle, Gant demanded the victim’s keys and wallet. Gant then unsuccessfully attempted to carjack the victim’s vehicle.
Approximately an hour later, as another individual exited their vehicle at a home in Apopka, Gant approached the individual brandishing the same semiautomatic assault rifle and demanded that the victim drop their keys. In fear for their life, the victim threw the car keys to the ground, ran away, and called 911. Gant then drove off with the vehicle and attempted to flee from law enforcement in a subsequent car chase. Officers were successful in stopping the vehicle in the area of US 441 and Roger Williams Road, but Gant fled on foot and entered a residence occupied by a third victim and demanded a change of clothes and to use a telephone. After securing the third victim’s residence, law enforcement officers located Gant hiding in a wooded area behind the home.
This case was investigated by the FBI, the Apopka Police Department, and the Eustis Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Oregon Man Pleads Guilty to Federal Hate Crime for Threatening Shooting Spree at Eugene ChurchRead the Press Release
EUGENE, Ore.—Benjamin Jaramillo Hernandez, 69, of Eugene, pleaded guilty today to a federal hate crime and illegal possession of ammunition charge arising from a series of progressively more threatening and violent actions targeting St. Mary Catholic Church in Eugene in September 2018. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Billy J. Williams for the District of Oregon and Special Agent in Charge Renn Cannon of the FBI in Oregon made the announcement.
“The Civil Rights Division stands firm in the belief that all people should be able to live their lives free from threats of violence,” said Assistant Attorney General Dreiband. “The Department of Justice will continue to uphold the rights of individuals who are victimized for exercising their religious beliefs and prosecute those who seek to violate those rights.”
“Hate crime laws protect fundamental American values including the free expression of religion. Today’s guilty plea reaffirms the basic principle that no one should live in fear because of their faith,” said U.S. Attorney Williams. “Our office will continue to vigorously investigate and prosecute hate crimes, pursuing justice for all victims.”
“Threatening violent action strikes at the heart of our fundamental right as Americans to live, work and worship without fear. Working with the community and our local law enforcement partners, we will always find strength in our shared values of keeping everyone safe regardless of race, religion or political belief,” said Special Agent in Charge Cannon.
According to court documents, on September 9, 2018, Hernandez was escorted from St. Mary property following an angry outburst during the sacrament of communion. Five days later, on September 14, a church employee reported to the Eugene Police Department that someone had dispensed pepper spray on the exterior door handles and through the mail slot of the St. Mary office front door. Employees reported burning sensations in their fingers and respiratory distress. A Eugene police officer and FBI agent identified Hernandez in church surveillance footage as the person responsible for both incidents.
On September 16, 2018, Hernandez was again spotted near St. Mary. A witness saw Hernandez across the street from the church when he stopped near the Eugene Public Library and shouted at the witness, “I’ve got something for you right here,” while pointing to a bag he was carrying.
A few days later, on September 20, St. Mary employees reported finding a threatening note and seven 10mm Sig hollow point bullets left in the office. The note threatened the church with “2 MP5s w/ 50 rounds each,” a type of submachine gun. The note concluded: “Eugene is going on the [expletive] map.”
A Eugene police officer again reviewed church surveillance footage and identified Hernandez as the individual who dropped off the note and bullets. On September 21, 2018, Eugene Police arrested Hernandez at the Eugene Public Library and charged him with second degree intimidation, second degree criminal mischief and two counts of second degree criminal trespass. During a search of Hernadez’s person, officers located a partially empty can of pepper spray, three .410 shotgun shells and thirteen 10mm Sig hollow point bullets.
Hernandez was charged by criminal information with one count each of obstruction of persons in the free exercise of religious beliefs and felon in possession of ammunition.
He faces a maximum sentence of 20 years in prison and a fine of up to $250,000 for the hate crime conviction, and 10 years in prison for the unlawful possession of ammunition. Hernandez will be sentenced on May 22, 2019 before U.S. District Court Judge Ann Aiken.
This case was investigated by the Eugene Police Department and the FBI and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon, and Cameron Bell, Trial Attorney for the Civil Rights Division.
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.
Oregon Man Pleads Guilty to Federal Hate Crime for Threatening Shooting Spree at Eugene ChurchRead the Press Release
The Justice Department today announced that defendant Benjamin Jaramillo Hernandez, 69, pleaded guilty today to a federal hate crime and illegal possession of ammunition charge arising from a series of progressively more threatening and violent actions targeting St. Mary Catholic Church in Eugene in September 2018. Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the District of Oregon Billy J. Williams made the announcement.
“The Civil Rights Division stands firm in the belief that all people should be able to live their lives free from threats of violence,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to uphold the rights of individuals who are victimized for exercising their religious beliefs and prosecute those who seek to violate those rights.”
“Hate crime laws protect fundamental American values including the free expression of religion. Today’s guilty plea reaffirms the basic principle that no one should live in fear because of their faith,” said U.S. Attorney Williams. “Our office will continue to vigorously investigate and prosecute hate crimes, pursuing justice for all victims.”
“Threatening violent action strikes at the heart of our fundamental right as Americans to live, work and worship without fear. Working with the community and our local law enforcement partners, we will always find strength in our shared values of keeping everyone safe regardless of race, religion or political belief,” said Special Agent in Charge Renn Cannon.
According to court documents, on Sept. 9, 2018, Hernandez was escorted from St. Mary property following an angry outburst during the sacrament of communion. Five days later, on September 14, a church employee reported to the Eugene Police Department that someone had dispensed pepper spray on the exterior door handles and through the mail slot of the St. Mary office front door. Employees reported burning sensations in their fingers and respiratory distress. A Eugene police officer and FBI agent identified Hernandez in church surveillance footage as the person responsible for both incidents.
On Sept. 16, 2018, Hernandez was again spotted near St. Mary. A witness saw Hernandez across the street from the church when he stopped near the Eugene Public Library and shouted at the witness, “I’ve got something for you right here,” while pointing to a bag he was carrying.
A few days later, on September 20, St. Mary employees reported finding a threatening note and seven 10mm Sig hollow point bullets left in the office. The note threatened the church with “2 MP5s w/ 50 rounds each,” a type of submachine gun. The note concluded: “Eugene is going on the [expletive] map.”
A Eugene police officer again reviewed church surveillance footage and identified Hernandez as the individual who dropped off the note and bullets. On Sept. 21, 2018, Hernandez was arrested by Eugene Police at the Eugene Public Library and charged with second degree intimidation, second degree criminal mischief and two counts of second degree criminal trespass. During a search of Hernandez’s person, officers located a partially empty can of pepper spray, three .410 shotgun shells and thirteen 10mm Sig hollow point bullets.
Hernandez was charged by criminal information with one count each of obstruction of persons in the free exercise of religious beliefs and felon in possession of ammunition.
Hernandez faces a maximum sentence of 20 years in prison and a criminal fine of up to $250,000 for the hate crime, and he faces a maximum sentence of 10 years in prison for the unlawful possession of ammunition. Hernandez will be sentenced on May 22, 2019 before U.S. District Court Judge Ann Aiken.
This case is being prosecuted by Assistant U.S. Attorney Gavin Bruce of the U.S. Attorney’s Office of Oregon, and Trial Attorney Cameron Bell with the Civil Rights Division of the U.S. Department of Justice. The case was investigated by the Eugene Division of the FBI and the Eugene Police Department.
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.
Oregon Couple Sentenced to Federal Prison on Federal Drug Trafficking ChargesRead the Press Release
Jackson, TN – An Oregon couple, Michael and Tawni Boutin, have each been sentenced to 12-months and one day in federal prison for conspiracy to distribute marijuana. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on May 17, 2018, the Jackson Metro Narcotics Unit received information about manufacturing marijuana at a residence in Madison County. Law enforcement discovered an active marijuana indoor grow operation inside the residence. From the residence and a tour bus located on the property, law enforcement seized 20 pounds of marijuana and three pounds of butane hash oil, a marijuana concentrate.
On May 21, 2018, a federal grand jury returned an indictment charging the defendants with conspiracy to distribute large amounts of marijuana with knowingly and intentionally manufacturing, attempting to manufacture, possessing with intent to distribute and attempting to possess with the intent to distribute marijuana and marijuana concentrates.
The defendants, Mike Boutin and wife Tawni Boutin, have previously been featured as marijuana farmers on a television show called "Weed Country." Weed Country was an American reality television series on the Discovery Channel that premiered on February 20, 2013, during Discovery Channel’s programming block titled "Weed Wednesdays." The series followed dealers, growers and patients of the marijuana trade located within the Emerald Triangle, a remote fertile area on the border of Northern California and Oregon, along with the enforcers of the law at the Siskiyou County Sheriff’s Office. The series showed the battle between cops, dealers and the growers looking to engineer some of the most powerful marijuana on earth.
U.S. Attorney D. Michael Dunavant said; "In the Controlled Substances Act, Congress has generally prohibited the cultivation, distribution, and possession of marijuana. It has established significant penalties for these crimes, which reflect Congress’s determination that marijuana is a dangerous drug and that marijuana activity is a serious crime. Here in the Western District of Tennessee, we are not ‘weed country,’ and this office will enforce the rule of law by prosecuting marijuana cultivation, distribution, and possession aggressively, consistently, and unapologetically."
Madison County Sheriff John Mehr said: "I commend the Jackson Metro Narcotics Unit for their hard work in this case and appreciate U.S. Attorney D. Michael Dunavant for the Western District of Tennessee for prosecuting this case. Especially, since this was a seizure of high grade marijuana brought into our county from out of state."
On February 12, 2019, U.S. District Court Chief Judge S. Thomas Anderson sentenced both Michael and Tawni Boutin to 12-months and one day in federal prison along with two years supervised release. A third co-defendant, William Brian Cisco, of Jackson is set for sentencing on March 1, 2019.
The Jackson-Madison County Metro Narcotics Unit investigated this case.
Assistant U.S. Attorney Matt Wilson prosecuted this case on the government’s behalf.
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Opioid prosecutions continue to be focus of Southern District task forceRead the Press Release
SAVANNAH, Ga: Three people, including two medical professionals, are among defendants recently prosecuted in federal court as part of continued efforts to crack down on opioid abuse.
Lisa Marie Douthit, 42, a pharmacy technician at a Walgreen’s in Bryan County, was sentenced to three months in prison by U.S. District Court Judge William T. Moore Jr. for stealing opioid pills Oxycodone and Hydrocodone from her employer, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
In addition, Jamie Mays, 19, of Hinesville, Georgia, a former medical assistant at a Bryan County pain clinic, awaits sentencing after pleading guilty to stealing prescriptions for the opioids Percocet and Oxycodone, and Reginald Eric Lee, 24, of Hinesville, Georgia, awaits sentencing after pleading guilty to stealing prescriptions for the opioids Percocet and Oxycodone and to conspiracy to possess with intent to distribute Percocet and Oxycodone.
“Opioid abuse is a crisis in our country and our community, and we are committed to targeting those individuals who divert those highly addictive drugs from their proper use,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “It is especially troubling when these illegal activities are facilitated by people who exploit their access to the healthcare system, and we will not tolerate it.”
These cases were investigated by the Opioid Task Force, which includes the Drug Enforcement Administration (DEA), the FBI, the department of Health and Human Services Office of Inspector General (HHS), the Chatham County Narcotics Team (CNT), and the U.S. Attorney’s Office for the Southern District of Georgia.
“The recklessness and greed exhibited by these individuals put citizens at significant risk of addiction and death,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will use every tool we have to stop criminals from exploiting the vulnerable by taking advantage of their professional access to these drugs.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “The abuse of prescription drugs continues to be a major concern in America. The abuse of a trusted medical profession will not be tolerated. As the nationwide trend toward non-medical use of prescription drugs swells, the need for an organized, immediate, and effective response increases correspondingly. This is a perfect example of the success that can be accomplished when federal, state and local resources and subsequent prosecution by the United States Attorney’s Office are combined to present a united front.”
Said Chatham-Savannah Counter Narcotics Team Director Everett Ragan, “We rely on the healthcare system and its professionals to aid us in fighting the war on the opioid crisis. I know the majority in the profession are doing that every day; however, we stand ready to arrest those who choose to further complicate this matter.”
If you have any information regarding health care fraud or illegal opioid diversion, please contact the U.S. Attorney’s Office at (912) 652-4422.
Assistant United States Attorneys J. Thomas Clarkson and Jonathan Porter prosecuted the cases for the United. States.
One Romanian National Sentenced for Racketeering Conspiracy, ATM Skimming and Aggravated ID TheftRead the Press Release
BOSTON – One Romanian national was sentenced and two Romanian nationals pleaded guilty yesterday in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Florinel Vaduva, 22, was sentenced by U.S. District Court Judge William G. Young to three years in prison, three years of supervised release, and ordered to pay restitution of $50,453.12. In October 2018, Vaduva pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices, and aggravated identity theft.
In a separate hearing, Ion Vaduva, 38, and Florin Hornea, 37, each pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity and conspiracy to use counterfeit access devices. Hornea also pleaded guilty to aggravated identity theft. Judge Young scheduled their sentencing hearings for May 7, 2019. In May 2017, Florinel Vaduva, Ion Vaduva and Florin Hornea and 11 others were indicted in connection with the ATM skimming scheme. A superseding indictment later added another defendant.
The defendants, except for one, were members of the Hornea Crew, led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts.
Over an 18 month period, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Hornea Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
In May 2018, Judge Young sentenced Constantin Denis Hornea, 23, to 65 months in prison, three years of supervised release and ordered him to pay $242,141 in restitution and a money judgment of $54,260. Ludemis Hornea, 21, was sentenced to 42 months in prison, which includes credit for 15 months served on a state sentence, three years of supervised release and ordered him to pay $57,422 in restitution and a money judgment of $11,124. Of the 15 charged defendants, eight have been sentenced, four have pleaded guilty and awaiting are sentencing, one is awaiting trial, and two have not been arrested.
The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a maximum fine of $250,000. The defendants are subject to deportation proceedings. 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 Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Odebolt Man to Federal Prison for Meth and GunsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced February 11, 2019, to more than seven years in federal prison.
Mark David Beckman, 32, from Odebolt, Iowa, received the prison term after a July 30, 2018, guilty plea to conspiracy to distribute methamphetamine and illegal possession of a firearm.
At sentencing, the court found that from about 2014 through about December 2017 Beckman was involved in a conspiracy that distributed methamphetamine in and around Sac and Ida counties. Beckman admitted he possessed a firearm on November 9, 2017, while: (1) being a user of methamphetamine; and (2) subject to a domestic abuse restraining order.
Beckman was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Beckman was sentenced to 87 months’ imprisonment. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Beckman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Ida County Sheriff’s Office, Crawford County Sheriff’s Office, and DCI Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4024. Follow us on Twitter @USAO_NDIA.
North Shore Pastor Sentenced for Fraudulently Obtaining over $200,000 in Social Security BenefitsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that OTHO SCHILLING (“SCHILLING”), age 59, of Mt. Hermon, Louisiana, was sentenced today by U.S. District Court Judge Jay C. Zainey to three years of probation and ordered to pay restitution in the amount of $202,632.00 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court records, SCHILLING, while he was the pastor of a church in Bush, LA beginning in 2005 up until 2016, required the church to pay his personal expenses, such as his health and car insurance premiums, car payments, and personal land note in lieu of the church paying him a salary directly. During this period, SCHILLING was receiving Retirement, Survivors and Disability Insurance (“RSDI”) from the Social Security Administration in the amount of $1,728 a month. SCHILLING concealed both his earnings and employment from the Social Security Administration. Accordingly, SCHILLING fraudulently received over $200,000 in RSDI benefits he was not entitled to due to his employment with the church.
U.S. Attorney Peter G. Strasser praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Nine people – including men with previous convictions for attempted murder, domestic violence and felonious assault with a firearm -- indicted for firearms crimesRead the Press Release
Nine people – including men with previous convictions for attempted murder, domestic violence and felonious assault with a firearm -- were indicted in federal court for firearms crimes.
Indicted are: Darien L. Griffin, 22, of Cleveland; Deangelo Harris, 26, of Cleveland; Larrell Hazzard, of Cleveland; Deayre Horton, 32, of Cleveland; Anthony King, 25, of Canton; Treavon McCullough, 36, of Toledo; Anthony J. Schaffer, 32, of Canfield, and John Joseph Smoter, 39, of Ravenna.
“These cases demonstrate again why firearms enforcement is vital to making our community safer,” U.S. Attorney Justin Herdman said. “These defendants include people convicted of attempted murder, domestic violence, felonious assault with a firearm and other crimes. These defendants have no business carrying firearms or ammunition.”
“ATF’s core mission is reducing violent gun crime in our communities,” said ATF Acting Special Agent in Charge Roland Herndon. “We work side by side with our federal, state, and local partners to follow the gun and remove the most violent criminals from our streets.”
Griffin possessed a Glock .45-caliber pistol and ammunition on December 28, 2018, despite having previously been convicted of attempted felonious assault and robbery, according to the indictment.
Harris possessed 18 rounds of 9 mm ammunition on December 1, 2018, despite a previous conviction for felonious assault with a firearms specification, according to the indictment.
Hazzard possessed a Smith & Wesson .40-caliber handgun on December 5, 2018, despite a previous conviction for aggravated assault, according to the indictment.
Horton possessed a Taurus 9 mm pistol and ammunition on October 26, 2018, despite previous convictions for robbery and two counts of attempted murder with a firearms specification, according to the indictment.
King possessed a Beretta 9 mm pistol and ammunition on August 8, 2018, despite a previous conviction for robbery, according to the indictment.
McCullough possessed a CZ 9 mm pistol on May 27, 2018, despite previous convictions for aggravated robbery, aggravated burglary, being a felon in possession of a firearm and other crimes, according to the indictment.
Schaffer possessed a Smith & Wesson 9 mm pistol and ammunition on January 16, 2019, while being on supervised release for a previous federal conviction for being a felon in possession of a firearm, according to the indictment.
Smoter on January 8, 2019, possessed 14 firearms and ammunition, despite a previous conviction for domestic violence, according to the indictment.
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 records, 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.
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Cleveland Division of Police, the Lorain Police Department, the Toledo Police Department, the Elyria Police Department, the Akron Police Department and the Portage County Parole Authority. They are being prosecuted by Assistant U.S. Attorneys Peter E. Daly, Payum Daroodian, John C. Hanley, Jody King, Alissa Sterling, David M. Toepfer and Scott Zarzycki.
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.
New Orleans Man Pleads Guilty to Trafficking in $193,980 worth of Counterfeit GoodsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MAHER SALIM, age 41, a resident of New Orleans, Louisiana, pleaded guilty today before United States District Judge Jay A. Zainey after previously being charged with trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1).
According to court documents, SALIM owned and operated BRANDS 4 LESS, a business located at 4200 Washington Avenue, Unit A, in New Orleans. On about November 9, 2016, agents with the United States Department of Homeland Security – Homeland Security Investigations (“HSI”) conducted a cargo inspection of a suspicious package addressed to SALIM at the DHL Express facility in Kenner, Louisiana. The package contained 32 pairs of Nike shoes that were determined to be counterfeit. Thereafter, a Nike representative entered BRANDS 4 LESS during its business hours and purchased another pair of counterfeit Nike shoes. Based on this information, HSI agents executed a federal search warrant on BRANDS 4 LESS on January 19, 2017. During the search, agents seized numerous counterfeit goods SALIM was selling that bore the false marks of makers of clothing and luxury goods, including True Religion, Rock Revival, Michael Kors, Coach, Louis Vuitton, Polo, Timberland, New Era, Nike, Adidas, Dolce & Gabbana, Mitchell & Ness, and North Face. The collective fair market value of all the items was approximately $193,980.
SALIM faces a maximum term of ten (10) years in prison, a fine of up to $2,000,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Zainey has been scheduled for May 14, 2019.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Muskegon Heights Man Sentenced to 120 Months in federal Prison for Drug and Firearm OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – Willie Earl Hector, 33, of Muskegon Heights, Michigan, was sentenced to 120 months (10 years) in federal prison for drug and firearm offenses, U.S. Attorney Andrew B. Birge announced today. In addition to the prison term, U.S. District Judge Janet T. Neff imposed a 3-year term of supervised release that will commence once Hector is released from imprisonment.
Hector pled guilty on October 5, 2018, to one count of Being a Felon in Possession of a Firearm and Ammunition, and one count of Possessing a Controlled Substance (Fentanyl) with Intent to Distribute. Hector came to the attention of police in Summer 2017 after a surveillance camera captured him walking around his home brandishing an AK-47 style rifle. Hector is prohibited from possessing firearms because he has nine prior felony convictions plus a conviction for domestic violence.
Picture of Willie Earl Hector bransishing and AK-47 style rifle
The ATF executed a search warrant at Hector’s residence in October 2017. Agents recovered two rifles, ammunition, 19.425 grams of fentanyl, other drugs, and drug paraphernalia. In its sentencing memorandum, the U.S. Attorney’s Office underscored the need to protect the community from Hector’s ongoing criminal activity. The United States noted that Hector had more than 20 convictions, and his priors include multiple drug felonies, as well as numerous instances of gun violence. “Society prohibits felons from possessing firearms and ammunition for a reason, and the defendant’s violent history is a paradigmatic example of why such laws exist. The defendant has proven through his conduct that he will readily use firearms for illegal and violence purposes. . . . [T]he seriousness of the defendant’s conduct is compounded by the fact that he possessed firearms while also possessing fentanyl with the intent to distribute it. The dangers of fentanyl are well known, and the distribution of this substance poses a great risk to the community.”U.S. Attorney Birge stated: “Drug trafficking and firearm offenses will be not be tolerated. My office and our federal, state, and local law enforcement partners will actively prosecute these cases to help make the Muskegon area a safer place.”
The charges in this case are the result of a joint investigation by the Muskegon Heights Police Department, the Michigan State Police, and the Bureau of Alcohol, Tobacco, and Firearms (ATF). The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and drug trafficking in the Muskegon area.
END
Multiple White Supremacist Gang Members among 54 Defendants Charged in RICO IndictmentRead the Press Release
Dozens of members of a white supremacist gang allegedly responsible for multiple acts of violence were charged in a superseding indictment unsealed today in the Eastern District of Arkansas.
The indictment alleges that the New Aryan Empire (NAE) is a racketeering enterprise, which committed violent acts—attempted murder, kidnapping, and maiming—in support of its organization and its wide-ranging drug-trafficking operation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland for the Eastern District of Arkansas, Special Agent in Charge Diane Upchurch of the FBI Little Rock, Arkansas Field Office, Assistant Special Agent in Charge Justin King of the U.S. Drug Enforcement Administration (DEA) Little Rock District Office and Acting Resident Agent in Charge Warren Newman of the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) Little Rock District Office, made the announcement.
“According to the allegations in the indictment announced today, New Aryan Empire associates maintained their criminal enterprise by engaging in multiple acts of violence — including kidnapping and attempting to murder one informant, and stabbing and maiming two others suspected of cooperating with law enforcement,” said Assistant Attorney General Benczkowski. “I want to thank our federal, state, and local law enforcement partners for vigorously investigating this vicious criminal organization.”
The case, named “To The Dirt,” which is in reference to the NAE slogan referring to the rule that members must remain in the NAE until they die, began in 2016 when ATF assisted the Pope County Sheriff’s Office in a murder investigation. The murder involved members of the NAE, a white supremacist organization that began as a prison gang and has since expanded beyond the prisons. Investigators learned that several members of the NAE conducted meetings in Pope County and became involved in methamphetamine distribution.
On Oct. 3, 2017, the grand jury handed down an indictment charging 44 people from the Pope County area with numerous gun and drug violations. Since that indictment, one defendant—Daniel Adame, 32, of Russellville, Arkansas —has pleaded guilty to conspiracy to distribute methamphetamine. The superseding indictment, which was returned by a federal grand jury on Feb. 5, 2019, named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine.
Thirty-five defendants are in either state or federal custody, while 16 were previously released on federal bond. Troy R. Loadholt, 37; Jeffrey G. Howell, 34; and Amos Adame, 46, all from Russellville, remain fugitives. April Howell, 29, and Amanda Rapp, 37, both of Russellville, and Courtney Talley, 32, of Dardanelle, Arkansas, were arrested Tuesday morning. Most of the defendants are residents of Pope and Yell Counties, Arkansas.
“The violence and hatred alleged in this superseding indictment have no place in society,” said U.S. Attorney Hiland. “We are committed to helping our communities remain free from these types of crimes using every resource available, including the powerful RICO statutes when appropriate. The significant charges in this case represent the hard work of our state and federal law enforcement agencies, and this office’s commitment to removing violent, repeat offenders from the streets.”
The superseding indictment alleges that between May 2014 and May 2016, NAE associates Marcus Millsap, 51, of Danville, Arkansas, and James Oliver, 47, of Russellville, as well as NAE President Wesley Gullett, 29, of Russellville, solicited several NAE members and associates to murder the confidential informant responsible for Millsap being charged with drug trafficking. According to the indictment, NAE members believed this informant had provided information about Millsap to law enforcement. In January 2016, two known members of NAE attempted to murder the confidential informant, but were unsuccessful. The superseding indictment further alleges that between May 28, 2017 and June 6, 2017, members and associates of NAE kidnapped, stabbed and maimed two individuals in retaliation for the individuals providing information to law enforcement about another NAE member. During the kidnapping, the victims were forced to write apology letters to the NAE member and his girlfriend.
The indictment charges 17 of the 54 defendants with crimes under the Racketeer Influenced and Corrupt Organizations Act (RICO) and Violent Crimes in Aid of Racketeering statute (VICAR). These racketeering-based statutes provide criminal penalties up to life imprisonment for acts performed as part of a criminal organization, and support charges for those who only ordered or assisted others to carry out the illegal acts. The superseding indictment alleges that from 2014 to the present, the New Aryan Empire functioned as a criminal enterprise to achieve its objectives, including illegal activities that affect interstate commerce.
The charges in the superseding indictment include conspiracy to violate RICO, kidnapping in aid of racketeering, maiming in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and attempted murder in aid of racketeering, as well as multiple methamphetamine and firearm violations (see attachment for complete list of charges and penalties).
“Today’s superseding indictment of over 50 people reflects the FBI’s firm resolve to root out criminal organizations who espouse hate and bigotry, and whose members sell drugs and commit violent acts such as attempted murder, kidnapping, and aggravated assault,” said FBI Special Agent in Charge Upchurch. “We appreciate and applaud the steadfast efforts of our partners at the U.S. Attorney’s Office for the Eastern District of Arkansas, the ATF, DEA, Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, U.S. Postal Inspection Service, and FBI in arresting these individuals who are determined to destroy our communities.”
In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as 69 firearms and more than $70,000 in drug proceeds.
“Historically, Aryan gang members and associates are a source of drugs, violence, and crime throughout this region,” said DEA Assistant Special Agent in Charge King. “Several members and associates of these gangs are charged in a RICO conspiracy as a result of law enforcement collaboration and a determined goal of making our communities safer from gang violence and drug trafficking. This effort, as part of Operation To The Dirt, is a promise to our citizens of the continued commitment of law enforcement at the federal, state and local levels to keep our streets safe.”
Wesley S. Gullett, 29, and Kevin M. Long, 23, both of Russellville, Arkansas; Lesa A. Standridge, 54, of Dover, Arkansas; and Christopher S. Helms, 35, of Dardanelle, Arkansas are charged with being a felon in possession of a firearm. Among the 69 guns seized, include handguns, rifles, shotguns, and several high-capacity assault-style rifles.
“These indictments are the result of an unprecedented collaboration by the ATF, FBI, and DEA Little Rock Field Offices, Pope County Sheriff’s Office, Russellville Police Department and 5th Judicial Drug Task Force,” said ATF Acting Resident Agent in Charge Newman. “This case reflects a major disruption of the New Aryan Empire organization that affected the whole Arkansas River Valley area. As a result of this collaborative effort, we have effectively dismantled this violent, drug-dealing organization and sent a clear message that the ATF and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
The three arrested today will be arraigned at 3 p.m. CST in federal court in Little Rock, Arkansas before U.S. Magistrate Judge Beth Deere.
The investigation was conducted by FBI, ATF, and DEA, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department and U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Liza Jane Brown of the Eastern District of Arkansas.
An indictment is merely an accusation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Multiple White Supremacist Gang Members Among 54 Defendants Charged in RICO IndictmentRead the Press Release
Charges including Solicitation to Commit Murder, Kidnapping, Maiming, and Conspiracy to Distribute Methamphetamine
RUSSELLVILLE—Dozens of members of a white supremacist gang allegedly responsible for multiple acts of violence were charged in a superseding indictment unsealed today.
The indictment alleges that the New Aryan Empire (NAE) is a racketeering enterprise which committed violent acts—including attempted murder, kidnapping, and maiming—in support of its organization and its wide-ranging drug-trafficking operation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the FBI’s Little Rock Field Office, Justin King, Assistant Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Little Rock District Office, and Warren Newman, Acting Resident Agent in Charge Bureau of Alcohol, Tobacco, Firearms, & Explosives’ (ATF) Little Rock District Office, announced the Tuesday morning arrests of the final three defendants and the unsealing of the 54-defendant superseding indictment.
“According to the allegations in the indictment announced today, New Aryan Empire associates maintained their criminal enterprise by engaging in multiple acts of violence—including kidnapping and attempting to murder one informant, and stabbing and maiming two others suspected of cooperating with law enforcement,” Assistant Attorney General Benczkowski said. “I want to thank our federal, state, and local law enforcement partners for vigorously investigating this vicious criminal organization.”
The case, named “To The Dirt,” which is in reference to the NAE slogan referring to the rule that members must remain in the NAE until they die, began in 2016 when ATF assisted the Pope County Sheriff’s Office in a murder investigation. The murder involved members of the NAE, a white supremacist organization that began as a prison gang and has since expanded beyond the prisons. Investigators learned that several members of the NAE conducted meetings in Pope County and became involved in methamphetamine distribution.
On October 3, 2017, the grand jury handed down an indictment charging 44 people from the Pope County area with numerous gun and drug violations. Since that indictment, one defendant—Daniel Adame, 32, of Russellville—has pleaded guilty to conspiracy to distribute methamphetamine. The superseding indictment, which was returned by a federal grand jury on February 5, 2019, named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine.
Thirty-five defendants are in either state or federal custody, while 16 were previously released on federal bond. Troy R. Loadholt, 37, Jeffrey G. Howell, 34, and Amos Adame, 46, all from Russellville, remain fugitives. April Howell, 29, and Amanda Rapp, 37, of Russellville, and Courtney Talley, 32, of Dardanelle, were arrested Tuesday morning. Most of the defendants are residents of Pope and Yell Counties (see attachment for complete list of defendants and charges).
“The violence and hatred alleged in this superseding indictment have no place in society,” U.S. Attorney Hiland said. “We are committed to helping our communities remain free from these types of crimes using every resource available, including the powerful RICO statutes when appropriate. The significant charges in this case represent the hard work of our state and federal law enforcement agencies, and this office’s commitment to removing violent, repeat offenders from the streets.”
The superseding indictment alleges that between May 2014 and May 2016, NAE associates Marcus Millsap, 51, of Danville, and James Oliver, 47, of Russellville, as well as NAE President Wesley Gullett, 29, of Russellville, solicited several NAE members and associates to murder a confidential informant. According to the indictment, NAE members believed this informant had provided information about Millsap to law enforcement.
In January 2016, two known members of NAE attempted to murder the confidential informant, but were unsuccessful. The superseding indictment further alleges that between May 28, 2017, and June 6, 2017, members and associates of NAE kidnapped, stabbed, and maimed two individuals in retaliation for the individuals providing information to law enforcement about another NAE member. During the kidnapping, the victims were forced to write apology letters to the NAE member and his girlfriend.
The indictment charges 17 of the 54 defendants with crimes under the Racketeer Influenced and Corrupt Organizations Act (RICO) and Violent Crimes in Aid of Racketeering statute (VICAR). These racketeering-based statutes provide criminal penalties up to life imprisonment for acts performed as part of a criminal organization, and support charges for those who only ordered or assisted others to carry out the illegal acts. The superseding indictment alleges that from 2014 to the present, the NAE functioned as a criminal enterprise to achieve its objectives, including illegal activities that affect interstate commerce.
The charges in the superseding indictment include conspiracy to violate RICO, kidnapping in aid of racketeering, maiming in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and attempted murder in aid of racketeering, as well as multiple methamphetamine and firearm violations (see below for complete list of charges and penalties).
“Today’s superseding indictment of over 50 people reflects the FBI’s firm resolve to root out criminal organizations who espouse hate and bigotry, and whose members sell drugs and commit violent acts such as attempted murder, kidnapping, and aggravated assault,” FBI SAC Upchurch said. “We appreciate and applaud the steadfast efforts of our partners at the United States Attorney’s Office for the Eastern District of Arkansas, the ATF, DEA, Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, United States Postal Inspection Service, and FBI in arresting these individuals who are determined to destroy our communities.”
In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as the 69 firearms and more than $70,000 in drug proceeds.
“Historically, Aryan gang members and associates are a source of drugs, violence, and crime throughout this region,” DEA ASAC King said. “Several members and associates of these gangs are charged in a RICO conspiracy as a result of law enforcement collaboration and a determined goal of making our communities safer from gang violence and drug trafficking. This effort, as part of Operation To The Dirt, is a promise to our citizens of the continued commitment of law enforcement at the federal, state and local levels to keep our streets safe.”
A majority of the 54 federal defendants are convicted felons, many with violent histories. Among the 69 guns seized include handguns, rifles, shotguns, and several high-capacity assault-style rifles. Wesley S. Gullett, 29, and Kevin M. Long, 23, both of Russellville; Lesa A. Standridge, 54, of Dover; and Christopher S. Helms, 35, of Dardanelle, are charged with being a felon in possession of a firearm.
“These indictments are the result of an unprecedented collaboration by the ATF, FBI, and DEA Little Rock Field Offices, Pope County Sheriff’s Office, Russellville Police Department and 5th Judicial Drug Task Force,” ATF Acting RAC Newman said. “This case reflects a major disruption of the New Aryan Empire organization that affected the whole Arkansas River Valley area. As a result of this collaborative effort, we have effectively dismantled this violent, drug-dealing organization and sent a clear message that the ATF and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
Those arrested today will be arraigned at 3 p.m. in federal court in Little Rock before United States Magistrate Judge Beth Deere.
The investigation was conducted by FBI, ATF, and DEA, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service. The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Liza Jane Brown of the Eastern District of Arkansas.
Tuesday’s arrest operation included the assistance of FBI, ATF, Pope County Sheriff’s Office, Fifth Judicial Drug Task Force, Russellville Police Department, and Arkansas State Police.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edarTwitter:
@EDARNEWS
To The Dirt II Defendant ListMicronesian Government Official Arrested in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
Charges were unsealed yesterday against a Micronesian government official for his alleged participation in a money laundering scheme involving bribes made to corruptly secure engineering and project management contracts from the government of the Federated States of Micronesia (FSM). In a related matter, on Jan. 22, a U.S. executive pleaded guilty for his role in a scheme to, among other things, bribe the Micronesian official in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office made the announcement.
Master Halbert, 44, a Micronesian citizen, was charged in a criminal complaint filed in the District of Hawaii with one count of conspiracy to commit money laundering. Halbert was arrested yesterday in Honolulu, Hawaii, and had his initial court appearance before U.S. Magistrate Judge Richard L. Puglisi of the District of Hawaii. Halbert is scheduled to have a pretrial detention hearing on Feb. 13 and a preliminary hearing on Feb. 22.
According to the criminal complaint, Halbert was a government official in the FSM Department of Transportation, Communications and Infrastructure who administered FSM’s aviation programs, including the management of its airports. The complaint alleges that between 2006 and 2016, a Hawaii-based engineering and consulting company owned by Frank James Lyon paid bribes to FSM officials, including Halbert, to obtain and retain contracts with the FSM government valued at nearly $8 million. According to the complaint, Lyon entered into an agreement with Halbert to bribe Halbert in exchange for Halbert’s assistance in securing contracts for Lyon and his company. Lyon and Halbert allegedly agreed that these bribes would be transported from the United States to FSM.
The charges contained in the complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In the related matter, Lyon, 53, of Honolulu, Hawaii, pleaded guilty on Jan. 22 to a one-count information filed in the District of Hawaii charging him with conspiracy to violate the anti-bribery provisions of the FCPA and to commit federal program fraud. Lyon is scheduled to be sentenced on May 13.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section is prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Metro Atlanta man sentenced for arranging to have sex with a minorRead the Press Release
ATLANTA, Ga. – Mewael Berhane, who communicated on the Internet to arrange to meet a minor girl for sex, has been sentenced to federal prison for enticing a minor to engage in illegal sexual activity.
“This case shines a light on some of the darkest corners of the Internet, where predators seek out minors to victimize,” said U.S. Attorney Byung J. “BJay” Pak. “Through the vigilance of our law enforcement partners, Berhane is being held accountable for his depraved conduct.”
“The federal investigation and subsequent prison sentence clearly reflects the threat Berhane posed to the community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Fortunately, he connected with an undercover FBI agent and not a child. Let it be a warning to sexual predators who think the anonymity of the internet keeps them protected from detection.”
According to U.S. Attorney Pak, the charges and other information presented in court: In October 2017, Berhane posted an ad on Craigslist that was titled “Very Taboo-something different.” In the ad, he expressed his interest in finding mothers and daughters who wanted to have sex with the same man.
An agent with the FBI responded, posing as the “mother” of an 11-year-old girl. The “mother” wrote that she was looking for someone to teach her 11-year-old daughter how to be with a man sexually. Berhane told her that he would “definitely be up for that.”
Berhane continued communicating with the girl’s “mother” on the cell phone app “Kik messenger” and graphically described the sex acts which he planned to engage in with the 11-year-old girl. Berhane asked the mother to send him photos of her 11-year-old daughter on multiple occasions. He even sent her a photo of himself wearing only his underwear.
On November 7, 2017, Berhane made arrangements to meet the mother and the girl for the purpose of engaging in sex with the child. That same day, the defendant drove from his office in Decatur to Duluth, Georgia, in rush hour traffic to meet the girl. He was arrested when he arrived at the pre-arranged location.
Mewael Berhane, 40, of Stone Mountain, Georgia, has been sentenced to ten years in prison, to be followed by ten years of supervised release. He will also be required to register as a sex offender when he is released from prison. Berhane was convicted on these charges on October 22, 2018, after he pleaded guilty.
This case was investigated by the FBI.
Assistant U.S. Attorneys William G. Traynor and Leanne M. Marek prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Members of Hacker Collective Face Federal Charges for Attacking Computer Systems, Emailing Mass Hoax Bomb and Shooting ThreatsRead the Press Release
LOS ANGELES – Federal authorities today arrested one of two defendants charged in a federal indictment with making false threats of violent attacks at many locations – including Los Angeles International Airport and numerous Southern California school districts – and staging attacks on computer systems belonging to institutions and companies, including a Long Beach-based company.
The two defendants allegedly are members of the Apophis Squad, a worldwide collective of computer hackers and swatters intent on using the internet to cause chaos. The collective caused disruptions by making threatening phone calls, sending bogus reports of violent school attacks via email, and launching distributed denial-of-service (DDoS) attacks on websites.
Timothy Dalton Vaughn, 20, of Winston-Salem, North Carolina – who used online handles that include “WantedbyFeds” and “Hacker_R_US” – was arrested this morning by special agents with the FBI.
The second defendant named in the indictment – George Duke-Cohan, 19, of Hertfordshire, United Kingdom, who used online handles that included “DigitalCrimes” and “7R1D3N7” – is currently serving a prison sentence in Britain for making a hoax threat targeting an airliner, a threat that is detailed in the indictment unsealed today.
The indictment alleges that Apophis Squad conducted cyber and swatting attacks against individuals, businesses, and institutions in the U.S. and the United Kingdom. Members made threats of bombs and school shootings that were “designed to cause fear of imminent danger and did cause the closure of hundreds of schools on two continents on multiple occasions,” according to the indictment.
The conspiracy alleged in the indictment spanned the first eight months of 2018, during which members of Apophis Squad communicated various threats – sometimes using “spoofed” email addresses to make it appear the threats had been sent by innocent parties, including the mayor of London. They also allegedly defaced websites and launched denial-of-service attacks. In addition, Vaughn allegedly conducted a DDoS attack that took down hoonigan.com, the website of a Long Beach motorsport company, for three days, and sent extortionate emails to the company demanding a Bitcoin payment to cease the attack.
The indictment also alleges that Duke-Cohan called the FBI field office in Omaha, Nebraska on multiple occasions, discussed the deployment of deadly pathogens in the office, and threatened to rape and kill the wife of the FBI personnel who answered the phone.
Vaughn bragged in an online forum that Apophis Squad had targeted over 2,000 schools in the United States and more than 400 in the United Kingdom, according to the indictment, which details threats about imminent shootings and bombs being sent to school districts across Southern and Central California. Duke-Cohan allegedly posted a message on Twitter taking credit for the hoax emails on behalf of Apophis Squad in which he said, “We are OPEN for request for school lockdowns / evacs.”
The Apophis Squad also took credit for hacking and defacing the website of a university in Colombia, resulting in visitors to the site seeing a picture of Adolf Hitler holding a sign saying “YOU ARE HACKED” alongside the message “Hacked by APOPHIS SQUAD.”
The 11-count indictment, which was returned by a federal grand jury on February 8 and unsealed today, charges Vaughn and Duke-Cohan with conspiracy and eight additional felony offenses, including making threats to injure in interstate commerce and making interstate threats involving explosives. Vaughn is additionally charged with intentionally damaging a computer and interstate threat to damage a protected computer with intent to extort.
Vaughn is expected to make his initial court appearance in the Middle District of North Carolina this afternoon.
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.
If he is convicted of all 11 charges in the indictment, Vaughn would face a statutory maximum sentence of 80 years in federal prison. If he is convicted of the nine charges in the indictment in which he is named, Duke-Cohan would face a statutory maximum sentence of 65 years in federal prison.
This case is the result of an investigation by the Federal Bureau of Investigation, with assistance provided by the United States Secret Service as part of the Electronic Crimes Task Force.
This case is being prosecuted by Assistant United States Attorney Jennie L. Wang of the Cyber & Intellectual Property Crimes Section.
Massage Parlor Owner Pleads Guilty to Federal Conspiracy ChargeRead the Press Release
TOPEKA, KAN. – A woman who operated massage parlors in Lawrence and Topeka pleaded guilty Tuesday to operating a prostitution business, U.S. Attorney Stephen McAllister said.
Weiling Nielsen, 54, pleaded guilty to one count of conspiracy. Nielsen owned and operated Naima Asian Massage and Serenity Health Spa in Lawrence, as well as Jasmine Massage in Topeka. In her plea, she admitted the massage parlors provided sexual services to customers for payment in cash. Nielsen and others advertised the services on the internet. Nielsen and her husband deposited cash into various bank accounts and purchased money orders for deposit in bank accounts in California.
In her plea agreement, Nielsen agreed to pay a $650,000 judgement, which represents the proceeds of the crime.
Sentencing is set for May 15. Both parties are recommending three years on federal probation.
McAllister commended the FBI, the Douglas County Sheriff’s Office, the Topeka Police Department, the Salina Police Department and Assistant U.S. Attorney Christine Kenney for their work on the case.
Massachusetts Woman Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LATOYA McKREITH, 36, of Chicopee, Massachusetts, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to distribute, and to possess with intent to distribute, 500 grams or more of cocaine.
According to court documents and statements made in court, on May 30, 2018, McKreith and Laprese Gollman were arrested after they drove to New Haven in an attempt to purchase four kilograms of cocaine. Investigators seized approximately $100,000 from Gollman at the time of his arrest.
Judge Arterton scheduled sentencing for May 8, 2019, at which time McKreith faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. McKreith is released on a $100,000 bond pending sentencing.
Gollman, of Springfield, Massachusetts, previously pleaded guilty to the same charge and, on October 15, 2018, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by eight years of supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven and Hamden Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Madras Woman Pleads Guilty to Stealing Social Security Payments from Disabled AdultsRead the Press Release
EUGENE, Ore.—Tayva Tucker, 41, of Madras, Oregon, pleaded guilty today to one count of theft of government funds for stealing nearly $40,000 in Social Security payments from ten mentally disabled adults.
According to court documents, beginning in March 2014, Tucker was employed by a social services organization in Madras where she oversaw outreach to mentally disabled clients as part of the organization’s mental health program. As part of her work, Tucker assumed representative payee duties for some her disabled clients’ Title II and Title XVI Social Security benefits. A representative payee is appointed when the beneficiary is incapable of managing his or her benefits. As a representative payee, Tucker was required to use the Social Security payments for the current and future needs of her clients.
In the summer of 2016, an organizational audit uncovered unusual movement of funds between various client accounts, as well as funds transferred from client accounts to Tucker. When confronted, Tucker admitted to taking clients’ Social Security benefits for her personal use. An investigation revealed that Tucker had stolen $39,277 from 10 victims.
Tucker faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. She will be sentenced on April 25, 2019 before U.S. District Court Judge Ann Aiken.
As part of the plea agreement, Tucker has agreed to pay $39,277 in restitution.
This case was investigated by the Social Security Administration Office of Inspector General, the Department of Health and Human Services Office of the Inspector General, and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Ludlow Couple Plead Guilty to Mail Fraud, Identity Theft, and Tax EvasionRead the Press Release
BOSTON – A Ludlow couple pleaded guilty yesterday in federal court in Springfield to mail fraud, identity theft, and tax evasion.
Joanne Murray, 54, and James Murray, 53, each pleaded guilty to an Information charging them with one count of conspiracy to commit mail fraud, aggravated identity theft, and tax evasion.
From approximately 2010 through 2015, the Murrays, along with others, engaged in a scheme to defraud the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. Joanne worked at a Springfield real estate brokerage, which managed hundreds of foreclosed properties owned by Freddie Mac.
In the scheme, Joanne, James, and others, agreed to submit fraudulent “reimbursements” by the brokerage to Freddie Mac for James’ company, amounting to approximately $1,372,099 in repair, improvement, and maintenance projects. After Freddie Mac paid the purported reimbursements, the brokerage paid James approximately 90% of those amounts and retained an approximate 10% skim. Joanne ensured that James’s company would win these projects by submitting fraudulent bids to Freddie Mac by purported competitors. To avoid detection by Freddie Mac, Joanne submitted bids in a friend’s name, without his knowledge, instead of James’ company, for work that was ultimately performed by James’ company. The Murrays also agreed to submit similar fraudulent requests for reimbursement of minor cleaning projects for James’ relative, amounting to approximately $68,960, in exchange for the brokerage’s retention of approximately 10% of the relative’s payments.
In addition, from 2012 through 2014, the Murrays willfully evaded payment on outstanding federal tax debts based upon their 2008, 2009, 2010, and 2011 tax years by cashing numerous checks from the brokerage totaling approximately $461,030 rather than depositing those checks into their bank accounts. Lastly, in 2014, the Murrays jointly filed an individual federal income tax return that under-reported their gross receipts by approximately $151,178.
The conspiracy charge provides for a sentence of no greater than five years in prison, up to five years of supervised release, and a fine of $250,000. The aggravated identity theft charges provide for a mandatory two year sentence consecutive to any other term of imprisonment. The tax evasion charge provides for a sentence of no greater than of five years in prison, a maximum of five years of supervised release, and a fine of $100,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division; John Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office are prosecuting the case.
Life in Federal Prison for Former Tribal Official Convicted of 15 Counts of Sexual Abuse Crimes Involving ChildrenRead the Press Release
United States Attorney Ron Parsons announced that a Lake Andes, South Dakota, man was sentenced to 12 concurrent life sentences and to 3 concurrent 10-year terms of imprisonment on February 11, 2019, by U.S. District Judge Karen E. Schreier.
Quentin P. Bruguier, Jr., a/k/a “JB,” age 55, was sentenced to life in federal prison for each of the 12 counts of aggravated sexual abuse and to 10 years, the statutory maximum, for each of the 3 counts of abusive sexual contact. He was also ordered to pay $1,500 to the Federal Crime Victims Fund.
Following a week-long trial, Bruguier was convicted by a federal jury on November 16, 2018. He was charged in a 15-count indictment for various aggravated sexual abuse charges involving children. Between 1992 and 2016, Bruguier, who was a former Yankton Sioux Tribal Official, engaged in these sexual acts using fear, force, or both, when perpetrating the sexual assaults.
While pronouncing its sentence, the Court stated, “Over a 30-year time period, you took advantage of any young female around you.” The Court also acknowledged the victims by stating, “The girls that came forward were some of the strongest I’ve seen.”
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Bruguier was immediately remanded to custody to continue serving his sentence.
Laurel-Based Physicians Group and Neurologist Agree to Pay Almost One Million Dollars to Resolve False Claims Act AllegationsRead the Press Release
Jackson, Miss. - Jefferson Medical Associates, a now dissolved, multi-specialty medical practice group in Laurel, and Dr. Aremmia Tanious, have agreed to pay the United States $817,635.06 to resolve claims under the False Claims Act arising from Medicare overpayments to Jefferson Medical Associates and Dr. Tanious, announced U.S. Attorney Mike Hurst.
This settlement resolves allegations that from January 1, 2012, through December 31, 2014, Jefferson Medical Associates and Dr. Tanious violated the False Claims Act by failing to return overpayments they received from Medicare on claims. In addition, from February 1, 2013, through June 30, 2017, it was alleged that Jefferson Medical Associates and Dr. Tanious billed Medicare using multiple medical codes when the medical documentation did not support the use of such billing practices.
During the course of the government’s investigation, Jefferson Medical Associates and Dr. Tanious provided assistance through voluntary disclosures to the U.S. Attorney’s Office after they discovered through audits of patient files and claims data that Medicare had been overbilled for certain services.
"This settlement should serve as a reminder to medical providers receiving Medicare funds that they must timely report and return any overpayments owed to Medicare or be subject to liability under the False Claims Act. I applaud our healthcare fraud investigators and prosecutors, as well as agents with the Office of Inspector General for Health and Human Services, for their diligent work in recovering the public’s money," said U.S. Attorney Hurst.
This matter was investigated by the U.S. Attorney’s Office Healthcare Fraud Investigator Ron Jefferson and U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Kristi H. Johnson handled the matter for the United States.
The claims resolved by this settlement are allegations only, and there has been no determination of civil liability.