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22 March 2019
Defendants Sentenced for Fraud Scheme Involving Local Environmental Company’s Improper Disposal of Toxic ChemicalsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC., and co-defendants JOHN D. MILLER JR., 61, and JOSEPH V. MILLER, 59, for a $1 million fraud scheme involving the improper disposal of toxic waste. Defendants LUMINAIRE and JOHN MILLER were sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. Defendant JOSEPH MILLER was sentenced on March 5, 2019.
According to the defendants’ guilty pleas and documents filed in court, LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC. (“LUMINAIRE”) provided recycling and waste disposal services to customers. Among other services, LUMINAIRE offered to pick up customers’ fluorescent light ballasts containing polychlorinated biphenyls (“PCBs”), transport the PCB-containing ballasts to the LUMINAIRE facility located in Plymouth, Minnesota, and remove and dispose of all the PCBs in accordance with the Toxic Substances Control Act (TSCA). In exchange, LUMINAIRE charged customers a fee of approximately $0.35 per pound of PCB lighting ballasts plus transportation costs. Because the PCBs contained in the ballasts are considered a toxic chemical, regulations promulgated by the United States Environmental Protection Agency (“EPA”), pursuant to TSCA, mandate special procedures and documentation for the transportation and disposal of PCB waste.
According to the defendants’ guilty pleas and documents filed in court, between 2010 until 2015, JOHN MILLER, owner of LUMINAIRE, and other LUMINAIRE employees falsely represented to customers that LUMINAIRE would properly transport and dispose of customers’ toxic chemicals. Instead, after picking up loads of PCB-ballasts from customers, JOHN MILLER instructed LUMINAIRE employees to remove warning labels from the containers holding the PCB-ballasts, and then sell the PCB-ballasts as scrap metal to scrap yards and metal recycling facilities. In order to conceal the fact that the PCB-ballasts had not been received and processed at LUMINAIRE’S facility, JOHN MILLER directed LUMINAIRE employees, including JOSEPH MILLER, to falsely certify on shipping manifests that the PCB-ballasts had arrived at LUMINAIRE’S facility. At JOHN MILLER’S direction, LUMINAIRE employees also sent copies of the falsified shipping documentation by mail to customers and to certain state environmental agencies. In addition, JOHN MILLER instructed LUMINAIRE employees to prepare and deliver falsified invoices to customers who, in turn, made payments to LUMINAIRE. As a result of the scheme, LUMINAIRE fraudulently collected more than $1,000,000 in fees and additional profits.
This case was the result of an investigation conducted by the U.S. Environmental Protection Agency and the Hennepin County Department of Environmental Protection.
Assistant U.S. Attorneys Benjamin F. Langner and Amber M. Brennan prosecuted this case.
Defendant Information:
LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC.
Plymouth, Minn.
Convicted:
- Mail fraud, 1 count
Sentenced:
- Five years of probation with special conditions, including an Environmental Compliance Plan
- $10,000 fine
JOHN D. MILLER JR., 61
Plymouth, Minn.
Convicted:
- Conspiracy to commit mail and wire fraud, 1 count
Sentenced:
- 36 months in prison
- $15,000 fine
- $1,049,848.78 in restitution
JOSEPH V. MILLER, 59
Chanhassen, Minn.
Convicted:
- Falsification of documents with intent to obstruct a federal matter, 1 count
Sentenced:
- Two years of probation
- $3,000 fine
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Decatur Area Man Charged with Federal Child Sexual Exploitation, Possession of Child PornographyRead the Press Release
URBANA, Ill. – A Decatur, Ill., area man, Gary L. Boyle, 34, made his initial appearance in federal court today on child sexual exploitation and child pornography charges. During his appearance before U.S. Magistrate Judge Eric I. Long, in Urbana, Boyle waived his detention hearing and was ordered to remain in law enforcement custody. A preliminary trial date for the federal charges has been scheduled on May 7.
The indictment charges Boyle, of the 5400 block of West Main St., with seven counts of child sexual exploitation on Feb. 4, 2019, and one count of possession of child pornography on Feb. 21, 2019.
If convicted, the statutory maximum penalty for each count of child sexual exploitation is 30 years in prison; for possession of child pornography, the maximum penalty is 10 years in prison.
Boyle was arrested on Feb. 21, and charged by the Macon County State’s Attorney’s Office with multiple counts of sexual assault and abuse charges.
The federal case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Decatur Police Department, the Macon County Sheriff’s Office, and the Royal Canadian Mounted Police.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Convicted Heroin Dealer Sentenced to Prison for Illegally Possessing Firearms while on Federal Supervised ReleaseRead the Press Release
PITTSBURGH – Brandin Gardner was sentenced today for illegally possessing firearms while on federal supervised release following prior felony convictions for heroin trafficking, United States Attorney Scott W. Brady announced today.
Gardner, age 23 of Pittsburgh, was sentenced by United States District Court Judge David S. Cercone to a combined sentence of 3½ years (42 months) in prison followed by three years of supervised release for illegally possessing firearms following prior felony convictions and violating the terms of his supervised release.
Gardner was convicted in 2014 in Pennsylvania state court for possessing heroin with intent to distribute. In 2016, he was convicted in federal court for conspiring to distribute heroin while on probation following the prior state heroin conviction. In 2018, he was indicted and convicted in federal court for possessing a Glock 27 semi-automatic pistol and a Smith & Wesson M & P semi-automatic pistol.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The United States Probation Office, the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police conducted the investigation leading to the conviction and sentence in this case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN) which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Colorado Man Pleads Guilty to $7.2 Million Biodiesel Tax Credit Fraud SchemeRead the Press Release
A Colorado resident pleaded guilty today in the U.S. District Court for the District of Colorado to conspiracy to defraud the United States, conspiracy to commit money laundering, and money laundering, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Matthew Taylor and co-conspirators worked together to defraud the United States by filing false claims for tax credits under a federal program that encourages production and use of renewable fuels. According to court documents, in 2009, Taylor and others created a fake company, Shintan Inc. (Shintan), that purported to be in the business of creating renewable fuels. From 2010 to 2013, Taylor and co-conspirators filed claims with the Internal Revenue Service (IRS) for over $7.2 million in tax credits for renewable fuel produced. In fact, Shintan produced no qualifying renewable fuel, and the documents filed with the IRS were fraudulent. Taylor personally netted at least $4.5 million from the scheme, with the additional $2.7 million going to co-conspirators. To avoid detection, Taylor and co-conspirators transferred the fraudulently obtained funds through bank accounts belonging to Shintan and other shell companies.
At sentencing, Taylor faces up to five years in prison on the conspiracy to defraud the government count, 10 years in prison on the money laundering conspiracy count and the money laundering count. Sentencing is scheduled for Dec. 6, 2019. In addition to a prison sentence, Taylor faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Leslie A. Goemaat, Arthur J. Ewenczyk, Sarah A. Kiewlicz, and Stephen K. Moulton, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Clinton County Doctor Pleads Guilty to Illegal Distribution of Controlled SubstancesRead the Press Release
BOWLING GREEN, Ky. – Dr. Michael L. Cummings, 63, a family practitioner in Albany, Kentucky, pleaded guilty on Tuesday, March 18, 2019, to 13 counts of prescribing controlled substances without any legitimate medical purpose and outside the course of professional medical practice, announced First Assistant United States Attorney Michael A. Bennett.
According to the plea agreement, between May 7, 2012 and April 1, 2014, Cummings prescribed Oxycodone and OxyContin, a Schedule II controlled substance, and alprazolam and zolpidem tartrate, Schedule IV controlled substances, to S.F. without any legitimate medical purpose and outside the course of medical practice.
Between May 14, 2012 and February 10, 2014, Cummings prescribed hydrocodone, a Schedule III controlled substance, Valium, and diazepam, a Schedule IV controlled substance, to S.C., without any legitimate medical purpose and outside the course of professional medical practice.
Cummings prescribed Oxycodone and Endocet, Schedule II controlled substances, hydrocodone, a Schedule III controlled substance, and alprazolam, a Schedule IV controlled substance, to J.S. between June 18, 2012 and November 5, 2014, without any legitimate medical purpose and outside the course of professional medical practice.
Between January 30, 2013 and April 15, 2015, Cummings prescribed hydrocodone polistirex, a Schedule II and Schedule III controlled substance, and alprazolam and phentermine, Schedule IV controlled substances, to J.Y., without any legitimate medical purpose and outside the course of professional medical practice.
Cummings prescribed Oxycodone and Endocet, Schedule II controlled substances, hydrocodone, a Schedule III controlled substance, and alprazolam and diazepam, Schedule IV controlled substances, to C.C. between May 1, 2012 and February 27, 2015, without any legitimate medical purpose and outside the course of professional medical practice.
The charges Cummings pleaded guilty to carry a maximum term of imprisonment of 145 years, a combined maximum fine of $7.25 million, and 3 years of supervised release. Sentencing is scheduled for June 19, 2019, before U.S. District Court Chief Judge Greg N. Stivers.
The case is being prosecuted by Assistant United States Attorneys David Weiser and Ann Marie Blaylock, and was investigated by the Federal Bureau of Investigation and the Kentucky State Police.
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Cincinnati Man Sentenced to 7 Years in Federal Prison for Heroin and Fentanyl ConspiracyRead the Press Release
COVINGTON, Ky. — Dante Marice Martin, 37, of Cincinnati, Ohio, was sentenced on Thursday to 7 years in federal prison by United States District Judge David L. Bunning for conspiracy to distribute and possession with intent to distribute heroin, fentanyl and acetyl fentanyl.
Martin previously pleaded guilty and admitted that from May through his arrest in June 2018, he conspired with his co-defendants to distribute and possess with intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and 10 grams or more of acetyl fentanyl, an analogue of fentanyl. Martin sold these drugs to undercover law enforcement working with the Northern Kentucky Drug Strike Force on four separate occasions. At the fourth and final undercover sale on June 27, 2018, Martin was arrested immediately after he sold 60 grams of the substance for $5,100. He had driven from Cincinnati, Ohio to Kenton County, Kentucky, with his girlfriend and three young children in the vehicle to complete the sale.
Under federal law, Martin must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for a term of 5 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy Plancon, Special Agent in Charge, Drug Enforcement Administration made the announcement after the sentencing.
The investigation was conducted by the Drug Enforcement Administration and the Northern Kentucky Drug Strike Force. The United States was represented by Assistant United States Attorney Wade T. Napier.
Choctaw Tribal Member Sentenced to 45 Years in Prison for Second Degree MurderRead the Press Release
Jackson, Miss. – Keenan Martin, 26, of Philadelphia, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 540 months in prison, followed by five years of supervised release, for second degree murder, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation. Martin was also ordered to pay a $1500 fine.
Martin entered a guilty plea on July 3, 2018, to one count of second degree murder. On November 2, 2017, four members of the Mississippi Band of Choctaw Indians assaulted and killed another Tribal member in the Tucker Community.
Martin’s co-defendant, Jerome Steve, was sentenced on March 21, 2019 and also received a prison sentence of 540 months. The sentencing of a third defendant, Keyshawn Willis, will be set on a later date. A fourth defendant, Monte Isaac, died while awaiting sentencing.
The case is being prosecuted by Deputy Criminal Chief Patrick Lemon, Assistant United States Attorney Erin Chalk and Special Assistant United States Attorney Kevin Payne, and was investigated by the Federal Bureau of Investigation and the Choctaw Police Department.
Cheshire Man Sentenced to 30 Months in Prison for Selling Narcotics to Southington Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS J. HALLERAN, 37, of Cheshire, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by six years of supervised release, for distributing narcotics to a woman in Southington who died from an overdose.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 25, 2017, Southington Police and emergency medical personnel responded to a residence in Southington where they encountered an unresponsive 31-year-old female on the floor. The female was pronounced deceased. Investigators seized five folds of suspected heroin/fentanyl, two empty folds, other drug paraphernalia, and the victim’s cellphone.
The Office of the Chief Medical Examiner for the State of Connecticut concluded that the victim’s death was caused by the combined effects of fentanyl, acetyl fentanyl, methadone, alprazolam and alcohol.
Analysis of the seized cellphone revealed that Halleran had been supplying heroin/fentanyl to the victim for approximately six weeks, and that he delivered heroin/fentanyl to the victim at her residence on the night of July 24, 2017.
Halleran was arrested on August 16, 2017. On June 28, 2018, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and/or fentanyl.
Halleran’s criminal history includes 25 convictions.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Southington Police Department. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cape Coral Felon Sentenced to More Than Nine Years for Possessing A FirearmRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Eddie Junior Saez (28, Cape Coral) to nine years and seven months in federal prison for possessing a firearm as a convicted felon. Saez was found guilty by a federal jury on December 12, 2018.
According to evidence presented at trial, on March 12, 2015, while executing a search warrant at Saez’s residence, Lee County Sheriff deputies located a loaded .45 caliber handgun that was concealed in a knit cap. The investigation had revealed that, in addition to the firearm, Saez had been storing lucrative quantities of narcotics at the home, which he shared with his parents. As a previously convicted felon, Saez is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the FBI and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
California Man Sentenced to 25 Years in Prison for Child Sex Trafficking and Witness TamperingRead the Press Release
LAS VEGAS, Nev. – A California man who was convicted of recruiting and transporting a child from California to Las Vegas, Nevada, to engage in commercial sex acts was sentenced today to 300 months in federal prison, announced U.S. Attorney Nicholas Trutanich for the District of Nevada.
After a three-day jury trial in February of 2018, Brandon Lamar Pruitt, 35, of Compton, California, was found guilty of child sex trafficking and transportation of a minor for prostitution. He was previously convicted by a jury of being a felon in possession of a firearm and tampering with a witness or a victim. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Pruitt to a term of lifetime supervised release.
Beginning in 2013, Pruitt persuaded and recruited a 14-year-old girl to prostitute for him. Over the course of the following three years, Pruitt convinced the minor female to stay with him and arranged her travel from California to Las Vegas to engage in commercial sex acts. He acted as the victim’s pimp, took photos of her that were posted online for prostitution dates, and booked hotel rooms for the dates. Pruitt used violent force and the victim’s romantic feelings for him to coerce and entice the victim’s compliance. The victim would give him money she earned from working as a prostitute. After he was arrested, Pruitt tampered with the victim and attempted to prevent her from cooperating with law enforcement in prosecuting the federal criminal charges. Furthermore, Pruitt unlawfully possessed two stolen guns, a Browning .22 caliber buck mark and a Glock .40 caliber, after sustaining prior felony convictions in California.
The case was investigated by the FBI, Las Vegas Metropolitan Police Department, and Innocence Lost Task Force. Assistant U.S. Attorneys Elham Roohani and Christopher Burton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Bozeman father, son sentenced for heroin traffickingRead the Press Release
MISSOULA—A father and his son who admitted distributing heroin they obtained in Denver to customers in the Bozeman area were sentenced to prison this week, U.S. Attorney Kurt Alme said.
Chief U.S. District Judge Dana L. Christensen on Wednesday sentenced Kyle Brooks, 65, of Bozeman, to 18 months in prison and three years of supervised release. Judge Christensen on Thursday sentenced Kyle Brooks’ son, Ian Brooks, 28, of Bozeman, to 14 months in prison and four years of supervised release. Judge Christensen also ordered the forfeiture of $56,450 seized in the case.
Kyle Brooks pleaded guilty on Nov. 1 to conspiracy to distribute a controlled substance and to possession with intent to distribute heroin. Ian Brooks pleaded guilty on Oct. 31 to possession with intent to distribute heroin.
In June 2018, the Missouri River Drug Task Force began investigating Kyle and Ian Brooks for distributing heroin, learned they had a number of customers in the Bozeman area and that they were planning an out-of-town trip to get more heroin, the prosecution said in court records. After that trip, law enforcement surveilled the pair for weeks and witnessed them conduct numerous drug sales.
On July 13, officers monitored a car Kyle and Ian Brooks drove to Denver, where it stopped at a strip mall for about an hour before returning to Bozeman. Law enforcement stopped the car when it returned to Bozeman on July 16, served a search warrant on the vehicle and found three bags of heroin, containing a total of 204.33 grams of heroin, which is the equivalent of about 2,040 doses, 10 vials with syringes, a bottle of unknown pills and $56,456 cash. A laboratory analysis determined there also was about 2 grams of diclazepam, a controlled substance.
Assistant U.S. Attorney Jessica Betley prosecuted the case which was investigated by the Missouri River Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Bank General Counsel Charged with Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that GREGORY ST. ANGELO (“ST ANGELO”), age 54, a resident of St. Tammany Parish, was charged today with conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the Bill of Information, from in or around 2006 through the fall of 2016, ST. ANGELO was the general counsel of First NBC Bank. During this time, he and several businesses owned or controlled by him (the “Entities”) were First NBC Bank borrowers. Bank President A was a founder of First NBC Bank and acted as its president and Chief Executive Officer from in or around May 2006, until in or around December 2016. From in or around 2006 through April 2017, Bank Officer B was employed by First NBC Bank as its Chief Credit Officer, and was responsible for, among other things, the overall quality of the bank’s lending function.
Beginning at a time unknown, but at least in or around 2006, through in and around April 2017, in the Eastern District of Louisiana and elsewhere, the defendant, ST. ANGELO, and others known and unknown conspired to defraud First NBC Bank by means of false and fraudulent pretenses, representations, and promises, relating to a material fact.
The purpose of the conspiracy was for the defendant, ST. ANGELO, Bank President A, Bank Officer B, and others to enrich themselves unjustly by disguising the true financial status of ST. ANGELO, the Entities, and other borrowers, concealing the accurate performance of loans, and misrepresenting the nature of payments to ST. ANGELO and certain Entities.
ST. ANGELO, Bank President A, Bank Officer B, and others sought to accomplish the conspiracy by engaging in the below activities:
ST. ANGELO, Bank President A, Bank Officer B, and others provided First NBC Bank with materially false and fraudulent documents and personal financial statements, which, among other things, overstated the value of ST. ANGELO’s and the Entities’ assets, understated their liabilities, and omitted material information. The materially false and fraudulent personal financial statements, collateral summaries, and other documents concealed ST. ANGELO’s and the Entities’ true financial condition.
Bank President A, Bank Officer B, and others disguised ST. ANGELO’s and the Entities’ true financial condition by, among other things, issuing new loans to ST. ANGELO and certain Entities to pay older loans that ST. ANGELO was unable to repay and to cover his overdrafts. The new loans then appeared to be current, while the old loans and overdrafts appeared to have been paid. In reality, the new loans were designed to avert the downgrading or impairment of ST. ANGELO’s and several Entities’ loans and to avoid reporting them as nonperforming or losses to the bank.
Another means the conspirators used to disguise ST. ANGELO’s and the Entities’ true financial condition was to extend the maturity date of older loans on which ST. ANGELO was unable to make payments, which allowed First NBC Bank to avoid downgrading, impairing, or reporting the loans as nonperforming or losses to the bank.
Bank President A, Bank Officer B, and others funded fraudulent tax credit investments that First NBC Bank purportedly made in certain Entities owned by ST. ANGELO. In reality, the supposed investments simply funneled money from First NBC Bank’s general ledger to ST. ANGELO and certain Entities, so that ST. ANGELO could make his loan payments and cure overdrafts, and so the bank could avoid downgrading, impairing, or reporting the loans as nonperforming or losses to the bank.
On multiple occasions, Bank President A and ST. ANGELO executed false documents entitled “Agreements to Purchase Tax Credits” designed to make it appear that First NBC Bank was paying ST. ANGELO money in exchange for ownership interests in entities supposedly owned by ST. ANGELO. In reality, these agreements were a way for Bank President A, Bank Officer B, and ST. ANGELO to justify the diversion of bank funds to ST. ANGELO and certain Entities to cure overdrafts and avoid reporting requirements. On multiple occasions, Bank Officer B directed the disbursement of payments to ST. ANGELO and certain Entities from First NBC Bank’s general ledger, purportedly for tax credit investments, knowing that the tax credit investments were false.
Yet another means by which Bank President A, ST. ANGELO, Bank Officer B, and others concealed the true financial condition of ST. ANGELO’s loans was to lend funds to ST. ANGELO’s associates as nominees. Bank President A and ST. ANGELO caused the nominees to sign loan documents, making it appear that the nominee entity was taking out the loan solely for its own use. In fact, the loan proceeds often were paid to ST. ANGELO or the Entities, not the nominees, and were, in part, used to pay ST. ANGELO’s and the Entities’ existing debts to First NBC Bank or to enrich ST. ANGELO.
ST. ANGELO, Bank President A, and Bank Officer B caused employees of First NBC Bank to transfer the nominee loan proceeds directly to ST. ANGELO’s or the Entities’ deposit accounts, when ST. ANGELO, Bank President A, and Bank Officer B knew the loans were not solely for the nominee, but benefitted ST. ANGELO, who was not named in the loan documents or listed as a guarantor.
By April 28, 2017, First NBC Bank had advanced approximately $46 million to ST. ANGELO and the Entities based on the false personal financial statements, and practice of advancing loans to cover overdrafts and make loan payments. First NBC Bank had also paid ST. ANGELO an additional $9.6 million dollars in false tax credit investment money.
If found guilty, ST. ANGELO could face up to 30 years’ imprisonment, a fine of more than $1 million or twice the gross gain to him or the gross loss of any victims, five years of supervised release, and a special assessment of $100.
First Assistant United States Attorney Michael Simpson stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, and J. Ryan McLaren are in charge of the prosecution.
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Anchorage Felon Sentenced for Illegal Possession of FirearmsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Joshua J. Ziegler, 29, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve 57 months in prison, followed by three years of supervised release. In November 2018, Ziegler pleaded guilty to one count of being a felon in possession of firearms.
According to court documents, on April 15, 2017, APD officers were in the area of Karluk and E 20th in Anchorage, attempting to locate a suspect in a shooting incident that occurred in Muldoon. Officers observed Ziegler, who was seated in the rear passenger seat of a car parked not far from the last known residence of the suspected shooter. Ziegler was found to be in possession of two high capacity firearms that had loaded magazines, including an Intratech Tech-9 9mm handgun and a Glock .45 caliber handgun. Ziegler was taken into custody on an outstanding warrant, as he was under state supervision following his felony assault conviction in 2015. In that case, Ziegler had been involved in a shooting incident during which he had fired four rounds at another moving vehicle. As someone previously convicted of a felony, Ziegler was prohibited from possessing firearms.
At the sentencing hearing, Judge Burgess found that Ziegler was a “poster child” for those who should not be in possession of firearms, and sentenced him to the high end of the advisory sentencing guidelines for his crime and his criminal history. Judge Burgess also noted that a sentence at the high end of the guidelines was necessary, in part, to protect the public from Ziegler.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Stephan Collins.
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.
Aggravated Felon Illegal Alien Pleads Guilty to Unlawfully Reentering United StatesRead the Press Release
Gulfport, Miss. – Aldo German Arechiga-Gutierrez, 45, an illegal alien from Mexico, pled guilty today before U.S. District Judge Sul Ozerden to unlawful reentry by an alien removed after conviction for an aggravated felony, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory A. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Arechiga-Gutierrez will be sentenced by Judge Ozerden on June 24, 2019. He faces a potential maximum 20 years in prison and a maximum $250,000 fine.
The Homeland Security Investigations (HSI) Office in Gulfport received information that Arechiga-Gutierrez had returned to the United States after being removed in 2014. An investigation by HSI determined that Arechiga-Gutierrez was residing in the Picayune area and employed in the southeastern Louisiana area. Arechiga-Gutierrez was positively identified and arrested. He later admitted to being a citizen of Mexico and to voluntarily entering and being in the U.S. unlawfully.
In 2002, Arechiga-Gutierrez pled guilty and was convicted in California for conspiracy to possess and sell methamphetamine. As a drug trafficking crime, the conviction qualified as an aggravated felony. Arechiga-Gutierrez was ordered removed from the United States to Mexico after serving his prison sentence.
Arechiga-Gutierrez then unlawfully returned to the United States and, in 2012, was convicted in the Southern District of Mississippi of being an illegal alien in possession of a firearm. After completing his prison sentence, Arechiga-Gutierrez was again removed from the United States to Mexico in 2014.
U.S. Attorney Hurst commended the work of the Picayune Police Department, the Department of Homeland Security, Homeland Security Investigations and the United States Border Patrol. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced JORGE LOPEZ-TREJO, 36, of Hidalgo, Mexico on March 18, 2019 for illegal re-entry of a previously deported alien into the United States. Lopez-Trejo was arrested in Casper, Wyoming. He received time served plus ten day to allow for deportation proceedings and was ordered to pay a $100.00 special assessment. The U.S. Department of Homeland Security (ICE) investigated this case. Lopez-Trejo had previously be removed from the United States to Mexico in 2007.
Federal District Court Judge Alan B. Johnson sentenced DORA MUNOZ-RIVERA, 37, of Chihuahua, Mexico on March 19, 2019 for illegal re-entry of a previously deported alien into the United States. Munoz-Rivera was arrested in Casper, Wyoming. She received time served plus ten day to allow for deportation proceedings and was ordered to pay a $100.00 special assessment. The U.S. Department of Homeland Security (ICE) investigated this case.
33 indicted for heroin, cocaine, and fentanyl distribution operation in Berkeley and Jefferson CountiesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury this week has indicted 33 individuals in seven separate indictments involving heroin, cocaine, and fentanyl distribution, United States Attorney Bill Powell announced.
Agents seized 891 grams of different controlled substances, several firearms, ammunition, and more than $33,000 in cash during several raids and searches conducted in West Virginia, Maryland, and Pennsylvania in January of 2019 that resulted in the indictments. Those indicted are:- Leroy Raymond Griffin, 38, of Philadelphia, Pennsylvania
- Gregory Ian Polk, Jr., 34, of Philadelphia, Pennsylvania
- Jason Lamonte Bryant, 41, of Hagerstown, Maryland
- Tyquil Desmont Griffin, 19, of Philadelphia, Pennsylvania
- Courtney Guess, 23, of Martinsburg, West Virginia
- Jessica Nicholson, also known as “J,” age 23, of Martinsburg, West Virginia
- Anthony Wayne Harrison, II, also known as “Ant,” 29, of Martinsburg, West Virginia
- Bruce Scott Nicholson, age 52, of Martinsburg, West Virginia
- Michael Shavar Payton, 34, of Martinsburg, West Virginia
- Brandy Renae Netz, 34, of Martinsburg, West Virginia
- Shavon Craig, 34, of Kearneysville, West Virginia
- Devale Montray Jackson, also known as “Devale McNickle,” 58, of Martinsburg, West Virginia
- Anthony Jones, also known as “Moose,” 42, of Martinsburg, West Virginia
- Amy Little, also known as “Amy Jackson,” 44, of Harpers Ferry, West Virginia
- Joshua A. Miller, age 28, of Martinsburg, West Virginia
- Brianne Katherine Murray, 38, of Fort Lauderdale, Florida
- David Nathan Huntsberry, 39, of Martinsburg, West Virginia
- Levar Glenwood Crawford, 41, of Martinsburg, West Virginia
- Tywonne Crawford, 39, of Martinsburg, West Virginia
- Todd Jason Erwin, 42, of White Post, Virginia
- Nicholas Wayne Deminds, 30, of Martinsburg, West Virginia
- Shannon Keiffer, 33, of Martinsburg, West Virginia
- James Lamont Brinkley, 32, of Baltimore, Maryland
- Sven Artez Alston, 31, of Baltimore, Maryland
- Armstead William Craig, also known as “Manny” and “Manny Moo,” 39, of Ranson, WV
- Sandra Aramburo, 37, of Ranson, West Virginia
- Jansen V. Carr, 34, of Ranson, West Virginia
- Victor Lamont Carr, 59, of Ranson, West Virginia
- Allen Craig, 56, of Ranson, West Virginia
- Wayne Samuel Ellis Clyburn, 50, of Ranson, West Virginia
- Molly L. Huber, 30, of Ranson, West Virginia
- Hopeton Lee Newman, Jr., 31, of Inwood, West Virginia
- Shawn Kendall Murray, 36, of Loudon County, Virginia
“Our resolve is strong. We will not tolerate those who bring death and violence into our communities. Our law enforcement and prosecution teams are highly skilled and supremely dedicated to our mission. Hopefully, those involved in criminal conduct will learn that the potential consequences are not worth the perceived and false reward of their conduct,” said Powell.
"For far too long the Eastern Panhandle of West Virginia has been plagued by drugs and violence," said Special Agent in Charge Robert Jones, FBI. "The arrests highlight the collaborative work of all our law enforcement partners and our continuing commitment to use every resource to protect our citizens and get these dangerous and illegal drugs off the streets."
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the cases on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated. The United States Marshals assisted in the arrests.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
12 Arrested in Connection with San Antonio-Based Heroin and Cocaine Trafficking OperationRead the Press Release
Federal and state authorities in the San Antonio area have arrested 12 individuals, including ringleaders Andrew Sanchez and Joe Anthony Ramirez of San Antonio, for their alleged roles in a narcotics distribution operation, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
On March 20, 2019, a federal grand jury in San Antonio returned two separate indictments related to this investigation. The first indictment charges 35-year-old Andrew Sanchez (aka “Freight,” “Hakeem”), 33-year-old Joe Anthony Ramirez (aka “Homeboy”), 37-year-old Lisa Mercado, 29-year-old Bonnie Sanchez (aka “B”), 18-year-old Rodrigo Roque (aka “Scrappy”) and 25-year-old Angel Roque (aka “Test”) with one count of conspiracy to distribute heroin and cocaine. The indictment also charges Andrew Sanchez, Joe Ramirez, Lisa Mercado, Bonnie Sanchez and Rodrigo Roque with one substantive count of possession with intent to distribute 100 grams or more of heroin. The indictment alleges that since May 1, 2018, this drug trafficking organization operated an on-demand delivery service for heroin on the east side of San Antonio. This organization maintained a phone which customers called to purchase heroin, and members worked daily shifts operating this phone and delivering narcotics. The indictment alleges that the organization sourced its narcotics from Joe Anthony Ramirez and others.
The second indictment charges Ramirez and members of his drug trafficking organization with one count of conspiracy to distribute heroin and cocaine. Ramirez DTO members include: 36-year-old Ernest Rivas (aka “Chato”), 39-year-old Roy Ramirez, Jr. (aka “Jr.”), 63-year-old Roy Ramirez, Sr. (aka “Black Baby”, aka “Black”), 29-year-old Andrew Ybarra (aka “Drew”), 38-year-old Michael Vital and 53-year-old Abel Trejo. The indictment also charges Joe Ramirez (2 counts), Roy Ramirez, Jr., Roy Ramirez, Sr., and Abel Trejo with possession with intent to distribute cocaine. Joe Ramirez, Hinojosa, Rivas and Ybarra are also charged with one count of possession with intent to distribute heroin. According to the indictment, Joe Anthony Ramirez not only supplied Andrew Sanchez’s operation, he also ran his own drug distribution operation. This indictment alleges that since May 1, 2018, these defendants conspired to distribute heroin and cocaine to street-level dealers and collect proceeds from narcotics sales all across San Antonio.
Authorities are also seeking the criminal forfeiture of several residences and approximately $3,000 in U.S. Currency.
All of the defendants remain in federal custody pending detention hearings expected to occur in U.S. Magistrate Court in San Antonio beginning next week. The defendants face sentences ranging from up to 20 years imprisonment to up to life imprisonment upon conviction, depending on the amount of drugs involved.
The DEA and the Texas Department of Public Safety are investigating this case with assistance from the U.S. Marshals Service, Bexar County Sheriff’s Office; Seguin Police Department, Terrell Hills Police Department and the Bexar County District Attorney’s office. The San Antonio Police Department and the New Braunfels Police Department provided assistance with today’s arrests.
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
21 March 2019
Youth Basketball Coach Arrested for Attempted Production of Child Pornography and Coercion and Enticement of A MinorRead the Press Release
SAN JUAN, Puerto Rico– Yesterday, United States Magistrate Judge Camille L. Vélez-Rivé authorized a criminal complaint against Ángel Gabriel Díaz-Rosado, charging him for attempted production of child pornography, coercion and enticement of minors, and transfer of obscene matter to a minor, in violation of Title 18, United States Code, sections 2251(a); 2422(b); and 1470, announced United States Attorney Rosa Emilia Rodríguez-Vélez. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) led the investigation with the assistance of the Puerto Rico Police Department and the Puerto Rico Department of Family.
Yesterday evening HSI agents of the Child Exploitation Unit arrested Díaz-Rosado in Bayamón. Today he had his initial appearance before U.S. Magistrate Judge Vélez-Rivé.
According to the information contained in a criminal complaint, on Monday, March 18, 2019, the mother of a male minor, went to the ICE-HSI San Patricio offices to report that, on March 13, 2019, she had discovered multiple text, voice messages, and pornographic images shared between her son and defendant Ángel Gabriel Díaz-Rosado. The messages were transmitted, through the Internet, using the WhatsApp phone application.
“The defendant, who was entrusted by the parents and the school where kids played basketball for him, violated their trust by committing these awful acts,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “As this case demonstrates, we will aggressively target those who prey on our children. We encourage other potential victims to come forward if this defendant or any other adult is engaging in this type of criminal behavior. Do not remain silent. Help us help you.”
“HSI will not tolerate the exploitation of the most vulnerable members of our society, and will continue working with our partners in the PRCACTF to investigate those who exploit our children and deprive them of their innocence,” said Ivan J. Arvelo, Special Agent in Charge of HSI San Juan. “This case is particularly alarming as the defendant was in a position of trust with access to minors. Make no mistake, HSI will continue to investigate and apprehend those who exploit our children, especially those who betray the trust placed in them by committing these despicable acts.”
“The mission of our department is clear and we will not allow the security of our most vulnerable populations to be threatened. We will continue working to ensure the welfare of the victims and their families in this case. Puerto Rico can be sure that we will use all the tools in our power to help them regain control of their lives despite this ordeal. We thank all the components that are part of this research who had a quick response to the referral from our department, confirming that together we are stronger,” said Secretary of the Department of the Family, Glorimar Andújar Matos.
Special Assistant United States Attorney Cristina Caraballo and Deputy Chief of the Immigration, Cybercrimes, and Child Exploitation Unit, Nicholas Cannon, are in charge of the prosecution of the case. If convicted, Díaz-Rosado faces a minimum term of imprisonment of fifteen years and up to life, a minimum term of supervised release of five years up to life, and a fine of up to $250,000.
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University to Pay $1.5 Million to Settle False Claims Act AllegationsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that the Board of Regents of the University of Wisconsin System, acting through the University of Wisconsin-Madison (“University”), agreed to pay $1.5 million to the United States to settle the claims that it violated the False Claims Act by failing to properly account for rebates and credits to reduce costs allocable to federal grants and awards (“Federal Awards”).
The United States awards more than $500 billion in Federal Awards annually, usually in the form of grants to help support a variety of programs, including supporting human health, agriculture, homeland security, and funding scientific research, studies, and analysis. As a public research institution, the University obtains significant Federal Awards from the United States to conduct research in a wide range of fields and programs, including but not limited to science, health care, and engineering.
According to the Settlement Agreement, the University was required to adhere to Office of Management and Budget cost principles as a condition of receiving its Federal Awards. These principles require, in relevant part, that when a Federal Award recipient receives rebates and discounts on purchases for Federal Awards, those rebates and discounts must be credited to the Awards. Because the University failed to do so with respect to various rebates and discounts, the United States alleged that the University overcharged it and is liable to the United States under the False Claims Act.
Specifically, the settlement alleges that the University participated in a number of rebate and discount programs with supply and equipment vendors, which generated rebates and discounts through various purchase cards and service centers, including the University’s Material Distribution Services and DoIT Techstore service centers. The rebate and discount programs were applied to certain supplies and equipment purchased by the University, however, the University failed to credit the rebates and discounts associated with these purchases to the Federal Awards.
“The United States entrusts Federal Award recipients with federal dollars, but the funds are subject to regulation, oversight, and audit,” said United States Attorney Blader. “It is incumbent on Award recipients, including public institutions, to provide the United States the benefit of credits or rebates it receives – failure to do so results in overcharging.”
In addition, the United States’ investigation revealed that the University’s accounting for these rebates and discounts failed to comply with its own operative Cost Accounting Standards Board Disclosure Statement as it relates to accounting practices for service centers.
This coordinated investigation was conducted by the United States Attorney’s Office and the Offices of Inspectors General for the U.S. Department of Health and Human Services, the National Science Foundation, the U.S. Department of Energy, the U.S. Department of Defense and Defense Contract Audit Agency, and the National Aeronautics and Space Administration. The prosecution of this matter has been handled by Assistant U.S. Attorney Leslie K. Herje. The settlement agreement states allegations only; the University does not admit the allegations.
Two-Time Career Offender Sentenced to Fifteen Years for Fifth Bank RobberyRead the Press Release
Ocala, Florida – U.S. District Judge James D. Whittemore today sentenced Jason Earl Hill (53, Ingles) to 15 years in federal prison for bank robbery. The court also ordered Hill to make restitution to Center State Bank, N.A., in the amount of $2,250.
Hill had pleaded guilty on January 4, 2019.
According to court documents, Hill robbed a branch of Harbor Community Bank (now known as Center State Bank) in Ocala, Florida on May 11, 2018. Hill presented the teller with a demand note, and with instructions to hand over large sums of money. Hill then fled with $2,250 in his green 2006 Saturn, which was caught on surveillance video at a nearby fast-food restaurant. After identifying the vehicle, law enforcement was able to obtain a positive identification from the victim-teller.
Hill was previously convicted in the District of New Mexico for three bank robberies in 1997. After serving time on those offenses, he was then convicted of bank robbery in the Eastern District of Tennessee in 2002. Following his 12-year sentence on that case, Hill relocated to Ocala, Florida, where he committed the latest bank robbery. In addition to his convictions for multiple bank robberies, Hill has several 1990s convictions for felony theft and burglary in Tennessee.
This case was investigated by the FBI and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Two Men Found Guilty in International Cyber-Fraud Scheme Involving Online Dating and Business Email CompromisesRead the Press Release
A citizen of Nigeria residing in Atlanta, and a citizen of Mexico residing in California, were convicted Wednesday after a seven-day trial in the U.S. District Court for the Western District of Tennessee on charges related to the part each played in an international cyber fraud scheme.
Olufolajimi Abegunde, 31, of Atlanta, Georgia, and Javier Luis Ramos-Alonso, 29, of Seaside, California, participated in a criminal organization in which members “spoofed” emails and created fake profiles on dating websites in order to fool victims into sending money to bogus bank accounts under the control of members of the conspiracy. The proceeds would be laundered and subsequently wired out of the United States to destinations including West Africa.
Abegunde, who received an MBA from Texas A&M University in College Station, Texas, engaged in black-market currency exchanges over the life of the conspiracy. Purporting to hold himself out as a legitimate businessman, the proof at trial showed that Abegunde claimed association with a business entity that was not yet operational in late 2017, so for his primary source of income he relied on his off-the-book currency exchanges. Through this network, Abegeunde played a key role, along with Ramos-Alonso, in laundering fraud funds from an Oct. 3, 2016, business email compromise (BEC) of a land title company located in Bellingham, Washington. The proceeds of another BEC perpetrated in July 2016 upon a real estate company in Memphis, Tennessee, also moved through parts of the same criminal organization.
Abegunde, who faced numerous account closures from banks in the United States, used a complicated network of third-party bank accounts to disguise his illicit activity. The proof at trial established that Abegunde told people that he could not receive payments into accounts that could be “tracked,” and that he preferred to engage in cash transactions because they were easier to clean and “eliminated the risk.”
In July 2014, Ramos-Alonso met Tammy Dolan through an online dating site. Ramos-Alonso engaged in a three-year romantic relationship with Dolan, who claimed to be an Australian American living in Africa, despite never meeting or speaking with Dolan. Shortly after meeting Dolan, Ramos-Alonso began sending money to her through an intricate network of strangers based in Africa and the United States, and he continued to do so despite receiving multiple warnings from businesses and individuals that he was facilitating criminal conduct. The evidence at trial established that Dolan was actually a front for individuals connected to the money-laundering scheme who were directing Ramos-Alonso to move funds. The evidence at trial established that, by the time of the first BEC in July 2016, Ramos-Alonso had “graduated” to a position of trust within the criminal organization, as he received and disbursed a large portion of a $154,000 wire transfer before the victim bank could freeze the funds. In October 2016, Ramos-Alonso received and dispersed approximately $60,000 associated with the Oct. 3, 2016 BEC in Washington, a portion of which he deposited (or attempted to deposit) into accounts controlled by Abegunde. Ramos-Alonso funneled hundreds of thousands of dollars in fraud funds on behalf of the criminal organization.
In addition to his financial activities, Abegunde also engaged in a conspiracy to commit marriage fraud. Abegunde was married during his studies at Texas A&M, but divorced his wife in 2016 to marry a U.S. service member through whom he could obtain immigration and health care benefits and also open new bank accounts. He continued to live with his first wife in Atlanta while his U.S. service member wife was deployed to South Korea. While incarcerated and awaiting trial in the Western District of Tennessee, Abegunde continued his conspiratorial activities, trying to convince his fake spouse, who has since filed for divorce, to refuse to testify against him. Abegunde is contesting the divorce from his fake spouse. Abegunde also engaged in witness tampering by sending a self-written Motion to Dismiss bearing his former attorney’s name and professional attestation. The evidence at trial established that Abegunde drafted and sent the motion, which his attorney expressly did not authorize, to his faux spouse in an effort to deceive her into not testifying against him.
Five other individuals have pleaded guilty to being involved in the scheme. Additionally, three foreign nationals are awaiting extradition to the United States to face trial. Several others are still at large.
Sentencing for Abegunde and Ramos-Alonso is set for June 21, 2019, before the Honorable Judge Sheryl H. Lipman.
The FBI’s Memphis Field Office investigated the case with assistance from agents in Atlanta and San Jose, California. Senior Trial Attorney Timothy C. Flowers with the Department of Justice’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland prosecuted the case.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
Two Men Found Guilty in International Cyber-Fraud Scheme Involving Online Dating and Business Email CompromisesRead the Press Release
Memphis, TN – A citizen of Nigeria residing in Atlanta, and a citizen of Mexico residing in California, were convicted Wednesday after a seven-day trial in the U.S. District Court for the Western District of Tennessee on charges related to the part each played in an international cyber fraud scheme.
Olufolajimi Abegunde, 31, of Atlanta, Georgia, and Javier Luis Ramos-Alonso, 29, of Seaside, California, participated in a criminal organization in which members "spoofed" emails and created fake profiles on dating websites in order to fool victims into sending money to bogus bank accounts under the control of members of the conspiracy. The proceeds would be laundered and subsequently wired out of the United States to destinations including West Africa.
Abegunde, who received an MBA from Texas A&M University in College Station, Texas, engaged in black-market currency exchanges over the life of the conspiracy. Purporting to hold himself out as a legitimate businessman, the proof at trial showed that Abegunde claimed association with a business entity that was not yet operational in late 2017, so for his primary source of income he relied on his off-the-book currency exchanges. Through this network, Abegeunde played a key role, along with Ramos-Alonso, in laundering fraud funds from an Oct. 3, 2016, business email compromise (BEC) of a land title company located in Bellingham, Washington. The proceeds of another BEC perpetrated in July 2016 upon a real estate company in Memphis, Tennessee, also moved through parts of the same criminal organization.
Abegunde, who faced numerous account closures from banks in the United States, used a complicated network of third-party bank accounts to disguise his illicit activity. The proof at trial established that Abegunde told people that he could not receive payments into accounts that could be "tracked," and that he preferred to engage in cash transactions because they were easier to clean and "eliminated the risk."
In July 2014, Ramos-Alonso met Tammy Dolan through an online dating site. Ramos-Alonso engaged in a three-year romantic relationship with Dolan, who claimed to be an Australian American living in Africa, despite never meeting or speaking with Dolan. Shortly after meeting Dolan, Ramos-Alonso began sending money to her through an intricate network of strangers based in Africa and the United States, and he continued to do so despite receiving multiple warnings from businesses and individuals that he was facilitating criminal conduct. The evidence at trial established that Dolan was actually a front for individuals connected to the money-laundering scheme who were directing Ramos-Alonso to move funds. The evidence at trial established that, by the time of the first BEC in July 2016, Ramos-Alonso had "graduated" to a position of trust within the criminal organization, as he received and disbursed a large portion of a $154,000 wire transfer before the victim bank could freeze the funds. In October 2016, Ramos-Alonso received and dispersed approximately $60,000 associated with the Oct. 3, 2016 BEC in Washington, a portion of which he deposited (or attempted to deposit) into accounts controlled by Abegunde. Ramos-Alonso funneled hundreds of thousands of dollars in fraud funds on behalf of the criminal organization.
In addition to his financial activities, Abegunde also engaged in a conspiracy to commit marriage fraud. Abegunde was married during his studies at Texas A&M, but divorced his wife in 2016 to marry a U.S. service member through whom he could obtain immigration and health care benefits and also open new bank accounts. He continued to live with his first wife in Atlanta while his U.S. service member wife was deployed to South Korea. While incarcerated and awaiting trial in the Western District of Tennessee, Abegunde continued his conspiratorial activities, trying to convince his fake spouse, who has since filed for divorce, to refuse to testify against him. Abegunde is contesting the divorce from his fake spouse. Abegunde also engaged in witness tampering by sending a self-written Motion to Dismiss bearing his former attorney’s name and professional attestation. The evidence at trial established that Abegunde drafted and sent the motion, which his attorney expressly did not authorize, to his faux spouse in an effort to deceive her into not testifying against him.
Five other individuals have pleaded guilty to being involved in the scheme. Additionally, three foreign nationals are awaiting extradition to the United States to face trial. Several others are still at large.
Sentencing for Abegunde and Ramos-Alonso is set for June 21, 2019, before the Honorable Judge Sheryl H. Lipman.
The FBI’s Memphis Field Office investigated the case with assistance from agents in Atlanta and San Jose, California. Senior Trial Attorney Timothy C. Flowers with the Department of Justice’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland prosecuted the case.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
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Twin Falls Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – Jeremy Hill, 41, of Twin Falls, was sentenced yesterday in U.S. District Court to 130 months in prison, followed by five years of supervised release, for possessing methamphetamine with intent to distribute, U.S. Attorney Bart M. Davis announced. Hill was sentenced by U.S. District Judge B. Lynn Winmill. Hill was indicted by a federal grand jury in Boise on March 13, 2018, and pleaded guilty on December 4, 2018.
According to court records, on February 7, 2018, Idaho State Police troopers saw Hill driving a Chevrolet Blazer without mud flaps. Troopers attempted to stop Hill. In response, Hill fled at a high rate of speed. As he was fleeing, he threw methamphetamine from the Blazer. Hill eventually crashed his Blazer. Idaho State Police troopers then arrested Hill. The Blazer was searched. Within the Blazer, troopers found more than fifty grams of methamphetamine, drug paraphernalia, and $2,523 cash.
This case was investigated by the Idaho State Police.
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Twice-removed Illegal Alien Found in Pittsburgh Area is Charged with Immigration ViolationRead the Press Release
PITTSBURGH - A citizen of Mexico has been indicted by a federal grand jury on a charge of violating federal immigration law, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on March 20, named Damian Benitez-Castro, 43, as the sole defendant.
According to the Indictment, Benitez-Castro was previously deported or removed from the United States on October 14, 2008, and again on May 11, 2010. Benitez-Castro then illegally reentered the United States and was located in McKees Rocks, Pennsylvania.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000.00, a term of supervised release of not more than 1 year, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Treasurer of Police Charity Arrested for Stealing over $400,000 Meant for Families of NYPD Officers Killed in the Line of DutyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Acting Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced the arrest of LORRAINE SHANLEY today on charges of bank fraud and aggravated identity theft. SHANLEY, the former volunteer treasurer of a nonprofit charity, allegedly participated in a scheme in which she obtained over $410,000 of the charity’s money meant for the families of New York City Police Department (“NYPD”) officers killed in the line of duty. SHANLEY surrendered this morning and will be presented today in Manhattan federal court before U.S. Magistrate Judge James L. Cott.
U.S. Attorney Geoffrey S. Berman said: “Lorraine Shanley allegedly capitalized on tragedy and monetized people’s generosity. As alleged, Shanley stole over 20 percent of the donations to a charity whose sole mission is to help the families of NYPD officers killed in the line of duty. Thanks to the investigative work of the IRS and special agents from our Office, Shanley will be prosecuted for her actions.”
IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said: “As alleged in the complaint, Lorraine Shanley violated her position of trust at a charity and victimized families who have already sacrificed so much. IRS-CI is committed to following the money and investigating those individuals who steal from charities for their own personal gain.”
According to the allegations in the Complaint unsealed today[1]:
For many years, from at least 2010 to 2017, SHANLEY served as a volunteer treasurer for a charity that provides financial support to the families of NYPD officers killed in the line of duty (“Charity-1”). During that time period, Charity-1 received approximately $1.9 million in donations, over 99 percent of which came from NYPD employees, from an average of 5,500 NYPD employees per year.
SHANLEY was an authorized signatory on Charity-1’s bank account and credit card, and was authorized to use them for Charity-1’s operations. But SHANLEY also used the bank account and credit card to benefit herself and her family members, fraudulently obtaining over $410,000 from 2010 to 2017. For example, using Charity-1’s bank account and credit card, SHANLEY:
- Wrote at least $45,000 in checks that were either payable to family members, or that were made out to other people but which SHANLEY double endorsed and deposited into her own accounts;
- Paid approximately $29,000 for her grandchild’s private school tuition;
- Paid approximately $63,000 for legal services and expenses related to criminal charges against SHANLEY’s son;
- Paid approximately $32,000 for personal dental expenses and approximately $25,000 for landscaping on her personal residence; and
- Purchased over $8,000 in event tickets, including over $1,400 for Barbara Streisand concert tickets.
On many of the checks SHANLEY wrote for unauthorized purposes, SHANLEY forged the signature of another authorized signatory on Charity-1’s bank account. SHANLEY’s fraudulent conduct was uncovered when a new volunteer with Charity-1 reviewed the charity’s tax returns and records as part of an effort to modernize the charity’s operations.
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SHANLEY, 68, of Staten Island, New York, is charged with one count of bank fraud, which carries a maximum penalty of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum penalty of two years in prison, which must run consecutively to any other term of imprisonment imposed. The maximum and mandatory minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of Special Agents from the U.S. Attorney’s Office for the Southern District of New York and the IRS-CI. He also thanked the New York City Police Department for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brett M. Kalikow is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Three Time Drug Trafficking Felon Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine while possessing firearms pled guilty March 21, 2019, in federal court in Sioux City.
Brandon Lee Boone, 46, from Des Moines, Iowa, was convicted of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession of a stolen firearm. Boone was previously convicted of manufacture/deliver/possession with intent to deliver methamphetamine in 2004 and possession of methamphetamine with intent to deliver in 2008, both in the Iowa District Court. Boone was also previously convicted of possession of a firearm and ammunition by a felon in the United States District Court in 2009 and felony drug trafficking of methamphetamine in Minnesota in 2018.
At the plea hearing, Boone admitted his involvement in a conspiracy that distributed at least 15 kilograms of mixed methamphetamine from January 2018 through February 2018. During a traffic stop, in Fort Dodge, Iowa, of a vehicle Boone was a passenger in on February 6, 2018, law enforcement seized over 800 grams of actual (pure) methamphetamine and three firearms, including a stolen AR-15 rifle with an extra capacity magazine. Boone admitted he and another possessed the methamphetamine with intent to distribute it and aided and abetted another’s possession of firearms during the time and in furtherance of the conspiracy to distribute methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Boone remains in U.S. Marshals custody pending sentencing. Boone faces a mandatory minimum sentence of 30 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and ten years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Humboldt County Sheriff’s Office, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3004. Follow us on Twitter @USAO_NDIA.
Three Defendants Sentenced for Their Roles in Fraudulent Tax Refund SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Emmanuel Collins, a/k/a Scooter, 40, Quintella Wilson, 36, and Jocelyn Carson, 28, all of Buffalo, NY, who were convicted of conspiracy to defraud the government with respect to claims (Collins and Carson) and aiding and abetting fraudulent returns, statements, or other documents (Wilson), were sentenced by Chief U.S. District Judge Frank P. Geraci, Jr. Collins was sentenced to serve 30 months in prison and ordered to pay $110,475 in restitution. Carson was sentenced to five years probation and ordered to pay restitution totaling $19,640. Wilson was sentenced to one year probation and ordered to pay restitution totaling $6,300.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that between 2012 and 2015, Collins organized various individuals in Buffalo to file fraudulent tax returns with the Internal Revenue Service, claiming false income and tax withholdings on false W-2 forms.
For the tax years 2013 and 2014, defendant Carson provided Collins with her name, date of birth, and social security number. Collins then gave Carson a fraudulent W-2 Form to file with the IRS. In addition, Carson introduced another individual to Collins for the purpose of obtaining a fraudulent W-2 form to be filed with the IRS.
Wilson assisted Collins in part by driving the tax filers to tax return preparers to file the fraudulent forms.
Investigators identified 16 fraudulent filings in the conspiracy that claimed $124,787 in false refunds. Collins generally took a cut of each tax refund that was fraudulently obtained.
The sentencings are the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
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Third Member of Methamphetamine Conspiracy SentencedRead the Press Release
Madison, Wis. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ryan Witter, 36, Manitowoc, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge William M. Conley to 126 months in federal prison for conspiring to distribute methamphetamine.
The amount of methamphetamine attributable to Witter was approximately 680 grams, which Judge Conley described as a conservative estimate. Witter conspired with others, including Tyrone Butterfield, whom he met when they were previously incarcerated together. Witter arranged for the shipping of numerous packages of methamphetamine from his sources in California, including his mother, to Butterfield in Bayfield, Wisconsin. Almost all of this methamphetamine was distributed into the Red Cliff Reservation.
During the course of the conspiracy, Witter was incarcerated for a prior drug charge and while in custody, he continued to arrange for the delivery of methamphetamine to the Red Cliff Reservation. Judge Conley described this as complete disregard for the laws and rules of society.
Four individuals, including Witter, have been charged for their roles in this methamphetamine distribution conspiracy. Rita Witter, Ryan Witter’s mother, was sentenced to three years and Simon Sayers was sentenced to 90 months. Tyrone Butterfield’s sentencing is scheduled for April 3.
The charge against Witter was the result of an investigation conducted by the Red Cliff Police Department; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; Drug Enforcement Administration in Wisconsin and California; Bayfield County Sheriff’s Office; Ashland Police Department; and the Fremont (California) Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Texas Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Gulfport, Miss – David Diaz Rodriguez, 68, of Edcouch, Texas, entered a guilty plea today before Senior U.S. District Judge Louis Guirola, Jr. to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rodriguez was stopped by the South Mississippi Metro Enforcement Team as he was traveling from Florida to Texas. On searching his truck, officers found a shotgun and an AK-47 with a fully loaded magazine that was reported stolen out of Escambia County Florida. Rodriguez has a 2006 felony conviction for possession with intent to distribute cocaine from Kane County, Illinois. He will be sentenced by Judge Guirola on June 10, 2019 at 10:00 a.m., and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Jackson County MET Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
SoCal Trio Indicted for Allegedly Conspiring to Sell 100 Pounds of Methamphetamine at Luxury Orange County HotelRead the Press Release
SANTA ANA, California – A federal grand jury has returned a four-count superseding indictment charging three men with conspiring to sell 100 pounds of methamphetamine at a luxury hotel in Huntington Beach.
The grand jury on Tuesday charged Rami Haddad, 38, of Costa Mesa, Steven Barragan, 37, of Montebello, and Ernest Tyrone Walton, Jr., 37, of Anaheim, with conspiracy to distribute 100 pounds of methamphetamine, and possession with intent to distribute 39.94 kilograms, or 88 pounds, of methamphetamine. Haddad has been charged with using a firearm in furtherance of a drug trafficking crime and now faces an additional charge of knowingly distributing 4.5 kilograms, or 9.9 pounds, of methamphetamine. The defendants’ arraignment on the indictment is scheduled for April 1 in Santa Ana.
According to an affidavit filed with a criminal complaint in the case, on January 16, Haddad agreed to sell 10 pounds of methamphetamine for more than $15,000 but first requested the buyer meet at his home. During the meeting at Haddad’s home, Haddad allegedly showed the buyer a .38-caliber revolver. Haddad later delivered the 10 pounds of methamphetamine in a black duffel bag to the buyer, who was staying at the Kimpton Shorebreak Huntington Beach Resort, court papers state.
On January 28, Haddad allegedly informed the buyer that he had ordered 100 pounds of methamphetamine through his supplier. A few days later, Haddad packaged methamphetamine in his garage, where he kept the .38 caliber revolver for protection, according to the affidavit. On February 4, law enforcement observed Haddad and Walton walking out of Haddad’s home carrying large black boxes, and loading the boxes into Walton’s car, court papers state. Haddad and Walton then drove separately to the Kimpton Shorebreak Huntington Beach Resort for the delivery and sale of the 100 pounds of methamphetamine, according to court documents. Haddad was arrested in the hotel lobby as he made his entrance, while Walton later was arrested nearby, court papers state.
After his arrest, Haddad admitted to picking up the shipment of methamphetamine a few days earlier with Barragan’s assistance, and discussing with Barragan the possibility of diluting the methamphetamine to make it appear larger than it was, the affidavit states. Haddad then admitted to packaging the narcotics into small plastic bags and putting them into boxes so they could be delivered to the buyer, court papers state. The narcotics seized in that arrest totaled 39.94 kilograms, or 88 pounds, of methamphetamine, according to the indictment.
If convicted on all charges, each defendant faces a statutory maximum sentence of life in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office.
Shreveport felon who led police in a car chase sentenced to 42 months on gun chargeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Deaunte D. Noyes, 29, of Shreveport, was sentenced yesterday by Chief U.S. District Judge S. Maurice Hicks Jr. to three and a half years in prison for possession of a firearm by a convicted felon. Noyes was also sentenced to three years of supervised release to follow imprisonment.
Shreveport police officers engaged in a chase on August 28, 2017 with a vehicle that had been reported stolen. After a high-speed pursuit, Noyes wrecked the vehicle and fled the scene on foot. Upon searching the wrecked vehicle, officers found a Taurus, Model PT99, 9 mm-caliber pistol and ammunition that Noyes had placed under the seat. Noyes was previously convicted of attempted illegal carrying of a weapon while in possession of a controlled dangerous substance and attempted possession of a firearm by a convicted felon, both of which are felonies. According to federal law, Noyes is not allowed to possess a firearm or ammunition as a convicted felon. He pleaded guilty on August 24, 2018, to illegally possessing the pistol.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for reductions in crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Seven-time convicted felon sentenced to 25 years in prison for possession of a firearmRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Anthony Joseph Meaux, 38, of Crowley, Louisiana, was sentenced Monday to 25 years in prison by U.S. District Judge Dee D. Drell for possession of a firearm by a convicted felon.
Meaux was called in by his probation officer on December 21, 2016 pursuant to an outstanding warrant and suspicions of his involvement in an armed robbery in Crowley. During that encounter, the probation officer discovered that Meaux was in possession of an Arminius Model HW7 .22 caliber revolver pistol. Meaux has seven prior felony convictions: two for simple burglary, three for simple robbery and two for drug-related offenses. According to federal law, he is not allowed to possess a firearm or ammunition as a convicted felon. He pleaded guilty on September 11, 2018.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for reductions in crime.
The ATF and the Louisiana Probation and Parole conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Seven-Time Felon Pleads Guilty to Illegally Possessing Gun and Meth TraffickingRead the Press Release
Gulfport, Miss – Quniton Kinyoun Peairs, 34, of Pascagoula, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to being a felon in possession of a firearm and possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Three times during May 2018, Peairs sold methamphetamine, along with a firearm, to a confidential informant for the South Mississippi Metropolitan Enforcement Team and the ATF. On one occasion, Peairs brought another individual with him who sold a shotgun stolen from the Pascagoula Police Department to the confidential informant. Peairs has seven prior felony convictions in Jackson County from 2006 through 2015.
Peairs faces a maximum penalty of 10 years in prison for the firearm charge and a maximum of 20 years for the drug charge. He further faces fines up to $1,000,000 along with at least 3 years of supervised release. He will be sentenced by Judge Guirola on June 11, 2019, at 10:00 a.m.
The South Mississippi Metropolitan Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Sawed Off Shotgun Dealer Sentenced to 36 Months in PrisonRead the Press Release
BOISE – Roy Ulysses Benitez, 26, of Nampa, was sentenced Tuesday in U.S. District Court to 36 months in prison for possessing an unregistered firearm, U.S. Attorney Bart M. Davis announced. U.S. District Judge B. Lynn Winmill also placed Benitez on supervised release for three years after he is released from prison. Benitez was indicted by a federal grand jury in Boise on December 12, 2017. He was found guilty of the crime after a three-day jury trial in December 2018.
According to court records, on July 26, 2017, Benitez sold firearms to a confidential informant working for the Bureau of Alcohol, Tobacco, Firearms, and Explosives. One of the firearms was a sawed off shotgun with a barrel length of less than 16 inches. Under federal law, it is illegal to possess certain firearms, like sawed off shotguns, unless the firearm is registered in the National Firearms Registration and Transfer Record. Benitez had not registered the sawed off shotgun in that record.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Rowan County Man Sentenced to 156 Months in Federal Prison for Selling HeroinRead the Press Release
GREENSBORO, N.C. – A Rowan County man was sentenced to federal prison on Wednesday, March 20, 2019, for distributing heroin, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
CURTIS CARL COWAN, age 53, of Salisbury, North Carolina, pleaded guilty on December 3, 2018, to one count of distribution of heroin. COWAN was sentenced by United States District Judge William L. Osteen, Jr. to 156 months of imprisonment, followed by 5 years of supervised release. He was a “career offender” under federal law, based on his prior convictions for second degree kidnapping, attempted second degree kidnapping, and extortion.
On both May 15, 2017 and April 12, 2017, COWAN sold approximately 1 gram of heroin to a confidential informant working with the Rowan County Sheriff’s Office. Both transactions occurred in the public parking lots of retail businesses located in Salisbury, North Carolina.
This case was investigated by the Rowan County Sheriff’s Office and prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Project Safe Neighborhoods Prosecution ResultsRead the Press Release
LAS VEGAS, Nev. – In connection with the U.S. Attorney’s Office continuing efforts to reduce violent crime through the Department of Justice’s Project Safe Neighborhoods initiative, U.S. Attorney Nicholas A. Trutanich today announced the results of three sentencings in firearms-related cases.
- Virlee Osborne, 48, of North Las Vegas, was sentenced today by U.S. District Judge Andrew P. Gordon to 54 months in prison and three years of supervised release. He pleaded guilty in August 2018, to possession of a stolen firearm. On June 27, 2017, Las Vegas Metropolitan Police Department officers arrested Osborne in connection with a separate investigation. During his arrest, officers found a pink and silver .38 revolver with an obliterated serial number inside a bag that Osborne was carrying. He admitted he knew the firearm was stolen. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department.
- Armando Bazua, 35, of Compton, California, was sentenced today by U.S. District Judge Andrew P. Gordon to 40 months in prison and three years of supervised release. He pleaded guilty without the benefit of a plea agreement in December 2018, to felon in possession of a firearm. On February 10, 2017, Bazua was seen on social media posting photographs and videos shooting a .40 caliber handgun and a 9mm handgun at a firing range in Las Vegas. He has a prior felony conviction for conspiracy to possess with intent to distribute methamphetamine in California and is prohibited from possessing firearms. The case was investigated by the Department of Homeland Security Investigations.
- Julio Abundis, 24, was sentenced today by U.S. District Judge Miranda Du to 46 months in prison and three years of supervised release. He pleaded guilty in October 2018, to felon in possession of a firearm. On September 29, 2017, Abundis was stopped by Las Vegas Metropolitan Police Department officers for driving a suspected stolen vehicle. During a search of the vehicle, officers found a .38 caliber revolver under the front passenger seat. Abundis admitted it was his firearm. He has a prior felony conviction for aggravated assault in California and is prohibited from possessing firearms. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department.
These cases were brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Port Sulphur Man Pleads Guilty in Cocaine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that defendant ALBERT VEREEN, JR., age 37, of Port Sulphur, LA, pleaded guilty yesterday to one count of conspiring to traffic cocaine hydrochloride and cocaine base (“crack”), in violation of Title 21, United States Code, Section 841(a)(1), 841(b)(1)(B), and 846. VEREEN is facing a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years in prison, a possible fine up to $5,000,000, and a period of supervised release of at least four years.
U.S. District Judge Martin L.C. Feldman is scheduled to sentence VEREEN on June 12, 2019.
U.S. Attorney Strasser praised the work of the Plaquemines Parish Sheriff’s Office (PPSO), Drug Enforcement Administration (DEA), Alcohol, Tobacco and Firearms (ATF), New Orleans Police Department (NOPD), Kenner Police Department (KPD), Customs and Border Protection (CBP), and Houston Police Department (HPD) in their investigation of this case. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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Owner of “Arctic Treasures” Indicted for Misrepresentation of Goods and Violations of the Marine Mammal Protection ActRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Lee John Screnock, 58, of Anchorage, d.b.a. “Arctic Treasures,” has been charged with one count of misrepresentation of Indian produced goods and products, and two counts alleging violations of the Marine Mammal Protection Act.
According to the indictment, beginning at an unknown time and ending no later than June 2018, Screnock allegedly offered, displayed for sale, and sold goods in a manner that falsely suggested that it was Indian produced, an Indian product, and the product of a particular Indian or Indian tribe or Indian arts and crafts organization. As alleged in the indictment, Screnock fraudulently represented hundreds of items for sale in his business as being carved by Alaskan Native artisans when he had in fact carved them himself. The indictment further alleges that Screnock violated the Marine Mammal Protection Act by knowingly offering illegal wildlife parts for sale, including a polar bear skull and a walrus oosik.
If convicted, Screnock faces a maximum of up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement (OLE) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Orleans Investment Adviser Sentenced for Multi-Million Dollar Fraud and Identity TheftRead the Press Release
BOSTON – An Orleans investment adviser was sentenced yesterday in federal court in Boston for defrauding her clients of more than $3 million and using those funds for her own expenses.
Kimberly Kitts, 51, was sentenced by U.S. District Court Judge Denise J. Casper to 87 months in prison and three years of supervised release. In November 2018, Kitts pleaded guilty to an Information charging her with one count of investment adviser fraud, four counts of wire fraud and one count of aggravated identity theft.
Beginning in 2011, Kitts engaged in various schemes to misappropriate her clients’ assets in order to pay her personal expenses. In one scheme, she directed client assets to a bank account for Marquis Consulting, an entity she controlled. In another scheme, Kitts used her position as an investment adviser to divert her clients’ funds to her own account and then took the funds for her own personal use. This included cashing her clients’ annuities, transferring funds out of her clients’ brokerage accounts and directing distributions from her clients’ Individual Retirement Accounts. In total, Kitts misappropriated approximately $3,085,939 from her clients.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities & Exchange Commission provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted case.
Optician Charged with Identity TheftRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that a Bill of Information was filed Tuesday, March 19, 2019 against a Georgia optician charging him with identity theft in connection with the submission of fraudulent claims to health care benefit programs.
Specifically, JOHN ANTHONY MARSH, age 55, of the Atlanta, Georgia region was charged with one count of identity theft. MARSH operated Magazine Medical Group & Associates, LLC in New Orleans. MARSH is charged with submitting claims for reimbursement for medical services using a misappropriated National Provider Identifier of another physician to submit the claims.
If convicted, MARSH faces a possible maximum sentence of 15 years imprisonment and a $250,000 fine as to Count 1 of the Information.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services for their work investigating the case. U.S. Attorney Strasser reiterated that the Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan.
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Ohio woman admits to using someone else’s passportRead the Press Release
CLARKSBURG, WEST VIRGINIA – Khourtney Alexandra King, of Canton, Ohio, has admitted to using another person’s passport, United States Attorney Bill Powell announced.
King, age 29, pled guilty to one count of “Misuse of a Passport.” King admitted to giving another person’s passport to her employer as proof of identity and citizenship in November 2017 in Ohio County.King faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The U.S. Department of State's Diplomatic Security Service investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Niagara Falls Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Milton Williams, Jr., 35, of Niagara Falls, NY, pleaded guilty, before U.S. District Judge Elizabeth A. Wolford, to possession with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking activity. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on December 12, 2017, law enforcement officers executed a New York State search warrant at the defendant’s residence at 1364 Pierce Avenue in Niagara Falls. Officers recovered three loaded firearms and additional assorted rounds of ammunition. In addition, officers recovered marijuana and a large quantity of cocaine.
Today’s plea is the result of an investigation by the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for July 24, 2019, before Judge Wolford.
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New Orleans Woman Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DAWN CONRAVEY, age 38, of New Orleans, was sentenced yesterday after previously pleading guilty to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically CONRAVEY pleaded guilty to conspiring to distribute and possess with intent to distribute 50 grams or more of a mixture of methamphetamine, in violation of 21 U.S.C. '' 841(a)(1), 841(b)(1)(B) and 846.
U.S. District Judge Ivan L.R. Lemelle sentenced CONRAVEY to time served, followed by 3 years of supervised release, with year one served as home confinement.
According to court documents, during the timeframe of this conspiracy, codefendant Steven LYONS was a major methamphetamine distributor in the New Orleans area. LYONS obtained methamphetamine by U.S. Mail and other means from several sources, including codefendants Carlos Mario CANTU-COX and Christopher CANTU-COX in Texas (who also supplied Anna THOMPSON); Eric WILLIS in Texas; Trung PHAM in California; and Garret TEMPLETON in Louisiana. Codefendants Tommy WELLS, Clark McALPIN, Dwayne CLAUSE, and CONRAVEY acted as sellers or brokers of methamphetamine for LYONS in the New Orleans area.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
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New Milford Business Owner Sentenced to 18 Months in Federal Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM F. ANDERSON, 50, of New Milford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 18 months of imprisonment, followed by two years of supervised release, for tax evasion.
According to court documents and statements made in court, Anderson owns several companies, including W.F. Anderson, LLC, a landscaping and excavation business based in Danbury; 1959, LLC; Retaining Wall Solutions; Wil-Rent; and Jacobs Creek Farm, LLC. For the 2007 through 2014 tax years, Anderson failed to pay more than $1.2 million in federal income taxes on nearly $4 million in income. Anderson committed multiple acts of evasion including, using business income to purchase cashier’s checks to keep income out of his accounts, conducting structured transactions to avoid the filing of Currency Transaction Reports (“CTRs”), and misrepresenting on a form that was filed with the IRS in May 2015 that he had less than $1,000 in a business checking account when, in fact, he had written checks for tens of thousands of dollars shortly before the submission of that form to conceal those assets from the IRS.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements.
On November 5, 2018, Anderson pleaded guilty to one count of tax evasion.
Anderson is required to cooperate with the IRS to pay all outstanding taxes, interest and penalties, which total more than $1.7 million.
Anderson, who is released on a $50,000 bond, was ordered to report to prison on April 24, 2019.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
New Jersey Man Pleads Guilty to Conspiring to Violate the Arms Export Control ActRead the Press Release
PITTSBURGH - A resident of Cedar Knolls, New Jersey, pleaded guilty yesterday in federal court to a charge of conspiracy to violate the Arms Export Control Act, United States Attorney Scott W. Brady announced today.
Michael Stashchyshyn, 56, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Stashchyshyn conspired with others to export night sighting equipment, firearm parts, and ammunition to Ukraine without the requisite license issued by the State Department. The items were purchased in the United States by Stashchyshyn’s co-conspirators, and shipped to Stashchyshyn who owned a freight forwarder business in Parsippany, New Jersey. Stashchyshyn then shipped the items to an individual in Ukraine in violation of U.S. law and regulations. The items shipped are contained on the Federal Munitions List and are controlled by the International Traffic in Arms (ITAR) regulations. They are illegal to ship without a license from the State Department, which the defendant and his co-conspirators did not have.
Judge Cercone scheduled sentencing for July 24, 2019 at 11:00 a.m. The law provides for a total sentence of not more than 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.
Assistant United States Attorneys Charles A. Eberle and Shardul Desai are prosecuting this case on behalf of the government.
Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Michael Stashchyshyn.
New Haven Man Pleads Guilty to Illegally Possessing Gun and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDWARD LUGO, 37, of New Haven, pleaded guilty today before U.S. Magistrate Judge Robert A. Richardson in Hartford to one count of unlawful possession of a firearm and ammunition by a convicted felon.
According to court documents, on September 19, 2018, Lugo possessed a 9mm Kel-Tec Model P-11 pistol and more than 100 rounds of assorted ammunition.
Lugo’s criminal history includes felony convictions in Connecticut and New York for firearm, weapon, drug, larceny and possession of stolen property offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Lugo is scheduled to be sentenced on June 19 at which time he faces a maximum term of imprisonment of 10 years and up to a $250,000 fine.
This matter is being investigated by the Statewide Narcotics Task Force, New Haven Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorneys Margaret E. Maigret and Sarah P. Karwan.
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 neighborhoods safer for everyone.
Natchitoches man pleads guilty to methamphetamine, firearm offensesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Reginald T. Warren, 37, of Natchitoches, Louisiana, pleaded guilty today before U.S. District Judge Dee D. Drell to possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug-trafficking crime.
According to the guilty plea, law enforcement officers with the Natchitoches Multi-Jurisdictional Drug Task Force executed a search warrant on March 7, 2018 for Reginald Warren’s residence in Natchitoches, Louisiana. Agents found a total of more than 4 pounds of methamphetamine in the residence and a loaded Charter Arms .38-caliber revolver in close proximity to the methamphetamine.
Warren faces 10 years to life in prison, at least five years of supervised release and a $10 million fine for the methamphetamine offense. He faces at least five years in prison for the firearm offense. Drell set the sentencing date for June 20, 2019.
The DEA, Natchitoches Multi-Jurisdictional Drug Task Force and Liberty County Sheriff’s Office in Texas conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Montgomery Man Facing 40 Years in Federal Prison Following Drug Trafficking and Firearms ConvictionsRead the Press Release
Montgomery, Alabama- Cody Eugene Mobley, 29, of Montgomery, Alabama was convicted last week of federal drug trafficking and firearms charges, announced U.S. Attorney Louis V. Franklin, Sr., DEA Special Agent in Charge Brad L. Byerley, ATF Special Agent in Charge Marcus Watson, and Montgomery Police Chief Ernest Finley.
On June 6, 2018, a federal search warrant was executed at Mobley’s residence on Butler Road in north Montgomery. During the search, law enforcement found a pound of crystal methamphetamine, drug distribution paraphernalia, and a number of firearms. Among the firearms found were a sawed-off shotgun, a pistol equipped with a silencer, and an AR-15 style rifle, which was equipped with a bump stock.
In September of 2018, Mobley was charged in a five-count indictment for possession with intent to distribute 50 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, being a felon in possession of a firearm, possession of an unregistered short barrel shotgun and possession of an unregistered firearm silencer.
The case was tried beginning March 12 and the jury returned a verdict late Friday afternoon finding Mobley guilty on all five counts. A sentencing hearing is scheduled for Mobley on June 20, 2019 where he will be facing a mandatory minimum sentence of 40 years in prison. There is no parole in the federal system.
“Unfortunately, drug trafficking and guns go hand in hand, and this can make for a dangerous combination,” said U.S. Attorney Franklin. “In this case, the defendant had multiple guns loaded and ready to use in connection with his drug trafficking business. These were not your every day, run-of-the-mill guns, and they certainly should not be in the hands of a drug dealing convicted felon. Our office will continue to make it a priority to prosecute these cases to the fullest extent of the law.”
“Nothing is more important than keeping our communities safe. DEA, along with our federal, state and local law enforcement partners, will continue to utilize our combined resources to target individuals trafficking drugs and guns, threatening the safety of our citizens in this region of Alabama and throughout the country. This ‘career offender’s’ conviction sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities,” said DEA Special Agent in Charge Brad L. Byerley.
“ATF’s Crime Gun Intelligence Centers are the driving force to reduce the violent crime that plagues our neighborhoods. This conviction illustrates the effective partnerships with law enforcement and the community,” said ATF Special Agent in Charge Marcus Watson.
“At MPD, we appreciate our close working relationship with the U.S. Attorney’s Office and want to thank our federal partners for bringing this investigation to a successful conclusion with the conviction of Mr. Mobley,” said Montgomery Police Chief Ernest Finley.
The case was investigated by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Montgomery Police Department. The case was prosecuted by Assistant U.S. Attorneys Brandon Bates and Kevin Davidson.
Missouri City Man Sentenced for Having Trafficked a 12-year-old Girl for SexRead the Press Release
HOUSTON – A 33-year-old Missouri City man has been ordered to prison for sex trafficking of a minor female, announced U.S. Attorney Ryan K. Patrick. Eddie Charles Larue pleaded guilty Oct. 11, 2018, to one count of sex trafficking.
Today, U.S. District Judge Sim Lake sentenced LaRue to 180 months in federal prison. Additional information was also presented today, including a letter read by the child victim detailing her disappointment, fear and bouts of crying when she thinks about what happened to her. Larue will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Larue will also be ordered to register as a sex offender.
At the time of his plea, Larue admitted that from July 3-4, 2017, he recruited a 12-year-old girl to engage in commercial sex acts for money along the 1.3 mile stretch of Bissonnet St., commonly referred to as “The Track.” He also admitted he used force and threats of force to compel his victim into prostitution and collected all of the money she earned.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Department of Labor, IRS-Criminal Investigation and the Texas Department of Public Safety.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sebastian Edwards and Jill Stotts are prosecuting the case.
Minot Man Sentenced to 12 1/2 Years in Federal Prison for Drug, Gun, and Money Laundering ChargesRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on March 18, 2019, Chief Judge Daniel L. Hovland, United States District Court, sentenced Dennis Allen Corwin, age 37, Minot, ND, on charges of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance; Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession or Sale of Stolen Firearm; Possession of Firearms by a Prohibited Person; Possession of a Short-Barreled Shotgun; and Laundering of Monetary Instruments. Judge Hovland sentenced Corwin to serve 12 1/2 years in federal prison, to be followed by five years supervised release.
In the summer of 2016, law enforcement identified Dennis Corwin as a leader of an organization distributing methamphetamine in North Dakota. Law enforcement was able to arrange purchases of methamphetamine in Minot and Bismarck, ND, from Corwin. After Corwin was arrested in Bismarck, approximately five pounds of methamphetamine and 30 firearms were located between his vehicle and shop in Minot, ND. Further investigation revealed the drug organization had transported in excess of 70 pounds of methamphetamine from Mexico to North Dakota.
This case was investigated by the Berthold Police Department, Ward County Narcotics Task Force, Drug Enforcement Administration, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Dawn Deitz prosecuted the case.
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