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9 March 2019
United States Attorney Mike Stuart Announces Commitment to Ending Elder AbuseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced his commitment to ending elder abuse. Approximately one in ten Americans aged 60 and over have experienced some form of elder abuse in the last year. The abuse can be physical, psychological, or financial. Financial scams result in seniors losing billions each year.
With the signing of the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, President Trump and his administration placed a renewed focus on those who prey on the elderly.
“I will do everything within my power to protect West Virginia’s seniors and elderly. I have made it a priority to prosecute those who defraud them,” said United States Attorney Mike Stuart. “My office fully embraces Attorney General Barr’s and the Department of Justice’s Elder Justice Initiative. We will be working closely with our law enforcement partners to file both criminal and civil cases against fraudsters, lowlifes and scammers that target the elderly. This is a priority for which you will be reading headlines in the coming months. I will seek maximum sentences and penalties in every case of elder abuse.”
If you or someone you know is the victim of elder fraud/exploitation, we encourage you to reach out to the United States Attorney’s Office for the Southern District of West Virginia at 800-659-8726 (USAO). Assistant United States Attorney Rachel Kincaid is the Elder Justice Coordinator. And if you or someone you know is suffering from physical abuse, or is in immediate danger, please call 911 or contact your local law enforcement. Elder justice resources, training, and outreach materials can be found at the Department of Justice’s Elder Justice website, www.elderjustice.gov.
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Three Charged in Conspiracy to Distribute More Than 28 Gallons of Liquid MethamphetamineRead the Press Release
OKLAHOMA CITY – EDUARDO VILLA-ALVAREZ, 22, JOSE MANUEL SOTO-OCHOA, 22, and KRISTNADEVY MENDOZA-ZAMBRANO, 22, have been charged with conspiring to distribute 28 gallons of liquid methamphetamine and 55 pounds of crystal methamphetamine, announced Robert J. Troester of the U.S. Attorney’s Office.
According to a March 8, 2019, affidavit filed in federal court in support of a criminal complaint, law enforcement stopped a maroon Ford Escape with Oklahoma plates on March 7 south of Oklahoma City, between Purcell and Pauls Valley. The vehicle had been the subject of a judicially-approved tracking device and was traveling from the area of Mesquite, Texas. Defendant Mendoza-Zambrano is alleged to have been driving the vehicle. According to the complaint, a search yielded approximately 77 liters (20 gallons) of liquid methamphetamine.
That same day, agents and officers with the DEA’s North Texas High Intensity Drug Trafficking Area program ("HIDTA") executed a search warrant at a residence in south Oklahoma City. According to the complaint, Villa-Alvarez and Soto-Ochoa were the only occupants of the residence. Law enforcement is alleged to have observed Soto-Ochoa placing in the back of a black Ford Escape a box with baggies containing a white substance. They also are alleged to have observed Villa-Alvarez and Soto-Ochoa using a broom and dust pan to sweep up a white substance. According to the complaint, when investigators approached Villa-Alvarez, he attempted to flee and tossed a firearm near the back yard. Investigators seized from the residence and the vehicle more than 25 kilograms (approximately 55 pounds) of a white crystal substance that tested positive for methamphetamine and more than 30 liters (approximately eight gallons) of suspected liquid methamphetamine. The complaint states investigators believe Mendoza-Zambrano was working with Villa-Alvarez and Soto-Ochoa.
The complaint charges each defendant with conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, as well as possession with intent to distribute more than 500 grams of methamphetamine. If convicted of either of these crimes, each defendant could be imprisoned for life and fined up to $10,000,000. A conviction on either count would also result in a mandatory minimum sentence of ten years in prison.
These charges are the result of an investigation by the Drug Enforcement Administration, including the North Texas HIDTA, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol, the El Reno Police Department, and the District 21 Drug Task Force. Assistant U.S. Attorney Matt Anderson is prosecuting the case.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Omaha Man Sentenced to 204 Months for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Gregory Bartunek, 65, was sentenced today in federal court in Omaha for distributing child pornography. A jury previously found Bartunek guilty of child pornography offenses. The Honorable Robert F. Rossiter, Jr. sentenced Bartunek to 204 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Bartunek will begin a 15-year term of supervised release and be required to register a as sex offender.
On March 26, 2016, a computer at Bartunek’s residence was observed using an online chat service to distribute images of prepubescent minors engaged in a sexual act. The same online chat service again observed a computer from his residence sending another image of child pornography on April 27, 2016.
On May 25, 2016, members of the FBI Cyber Crimes Task Force served a search warrant at Bartunek’s residence in South Omaha. In addition to seizing computers, agents observed four life-sized infant and toddler dolls. Two of the dolls had male genitalia appended. All were clothed in children’s underwear. More children’s underwear was recovered mixed with Bartunek’s underwear in his dresser.
Advanced forensics were used to recover the numerous videos and images that Bartunek, a computer specialist, had erased from his hard drives. Forensic artifacts recovered from the computer showed in excess of 40 titles indicative of or of known child pornography videos. Also recovered were images from the online chat service.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s 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.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
8 March 2019
Wichita Doctor Sentenced to Life for Diverting Rx Drugs to the StreetsRead the Press Release
WICHITA, KAN. - Wichita physician Steven R. Henson was sentenced today to life in federal prison for unlawfully distributing prescription drugs, U.S. Attorney Stephen McAllister said.
“I want this case to send a message to physicians and the health care community,” McAllister said. “Unlawfully distributing opioids and other controlled substances is a federal crime that could end a medical career and send an offender to prison.”
McAllister continued: “We are dealing with an epidemic. Nationwide, more than 70,000 Americans died in 2017 from drug overdoses. That is more than all the American casualties during the war in Vietnam.”
Henson, 57, operated the Kansas Men’s Clinic at 3636 N. Ridge Road in Wichita, stood trial in October and was convicted on the following counts:
- Conspiracy to distribute prescription drugs outside the course of medical practice (Counts 1 and 2).
- Unlawfully distributing oxycodone (Counts 3 through 14).
- Unlawfully distributing oxycodone, methadone and alprazolam (Count 16).
- Unlawfully distributing methadone and alprazolam, the use of which resulted in the death of a victim on July 24, 2015, identified in court records as N.M. (Count 17)
Presenting false patient records to investigators (Count 19). - Obstruction of justice (Count 20)
- Money laundering (Counts 26 through 31).
Evidence at trial showed Henson was giving dangerous, maximum strength opioid prescriptions to people who did not need them.
Henson was registered with the Drug Enforcement Administration to dispense prescription controlled substances. His registered addresses included the Wichita Men’s Clinic and a location at 1861 N. Rock Road, Suite 201.
During trial, prosecutors presented evidence that Henson:
- Wrote prescriptions without a medical need.
- Wrote prescriptions in return for cash.
- Post-dated prescriptions.
- Wrote prescriptions without a legitimate medical exam.
- Wrote prescriptions for people other than the ones who came to see him.
U.S. District Judge J. Thomas Marten wrote in an order denying the defendant’s motion for acquittal: “The defendant kept no medical records, performed no physical examinations or physical tests, gave massive amounts of opioids to patients with little demonstrated need, wrote unneeded, non-controlled prescriptions in order to defeat pharmacy limits on controlled substances, and knew that patients were traveling improbably long distances to receive opioids. There was ample evidence that Henson was prescribing opioid medications in amounts likely to lead to addiction, and in amounts so expensive that the patients would likely be forced by economic circumstances to support their addiction by selling some of the drugs to others.”
The judge criticized Henson for deliberately not confronting the fact his patients were addicts. He had a uniform, scripted colloquy with patients in which he asked them if they had pain, they said yes and then he gave them prescriptions. In that way, he avoided asking more questions or ordering more tests. Marten called it, “a pantomime of a genuine doctor-patient relationship (that) demonstrated a consistent policy of avoiding the truth.”
Evidence presented at trial showed Henson prescribed opioid medications in amounts likely to lead to addiction and ignored the risk that his patients would pay for their drugs by selling some of the drugs to other people.
McAllister said: “The prosecution of cases involving a health professional’s misuse of medical expertise and authority is extremely important to fight the opioid epidemic. The vast majority of health care providers are people of integrity who follow their oath to help others, abide by the law, and do all they can to protect patients from becoming addicted. The evidence showed that is not what Dr. Henson did in this case.”
“For any doctors, pharmacists or nurses who disregard their oath and distribute powerful drugs illegally to enrich themselves, the message today is that they will be prosecuted to the full extent allowed by federal law.”
McAllister comended the Drug Enforcement Administration’s Tactical Diversion Squad, the Newton Police Department, the Wichita Police Department, the Internal Revenue Service-Criminal Investigation Division investigated, the Johnson County Sheriff’s Office, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Kimberly Rodebaugh for their work on the case.
Westside Crips Gang Member Sentenced to 82 MonthsRead the Press Release
Assistant U.S. Attorneys Alessandra P. Serano (202) 252-5843 or Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – March 8, 2019
SAN DIEGO – A leader of the Westside Crips was sentenced to 82 months in prison yesterday for his aggravating role in a racketeering conspiracy involving sex trafficking, narcotics trafficking and other violent crimes as well as possession of a controlled substance with the intent to distribute.
According to court records, Corey DeShawn Austin, aka “Westwood,” admitted to his membership and association with the Westside Crips, which primarily operated in Oceanside and elsewhere. Austin pleaded guilty to RICO Conspiracy and Possession with Intent to Distribute Controlled Substances on August 31, 2018. In furtherance of these crimes, Austin, the lead defendant, admitted he engaged in promoting prostitution of adult females between 2013 and 2015, including while he was in state custody for another offense. Austin further admitted he possessed narcotics for sale in 2013. Austin also admitted he promoted the Westside Crips during the RICO conspiracy through photos posted of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2013 and 2016.
At sentencing, the parties disputed whether Austin had an aggravating role in the RICO conspiracy – a finding that would mean a longer sentence. After hearing testimony from the government and defense expert witnesses at an evidentiary hearing on March 4, 2019, and reviewing the submissions by the parties, U.S. District Judge John A. Houston ruled yesterday that Austin had an aggravating role in the conspiracy because the testimony and evidence proved that he managed, supervised, and directed the criminal activity conducted by other members of the Westside Crips. Judge Houston noted that Austin’s conduct was particularly aggravating because he was managing, supervising and directing other gang members while he was in prison, using a contraband prison cell phone.
Austin was charged in 2017 as part of a larger investigation involving twelve other members of the Westside Crips Criminal Enterprise. The following table provides a summary of the crimes and sentences for 10 of the other defendants who have been convicted and sentenced in this case:
Defendant
Charge(s)
Sentence
Ameer Fareed Roby
aka “Tiny Dum Dum”
RICO Conspiracy
48 months in prison,
3 years supervised release
Michael Anthony Sullivan
aka “Du-Low”
RICO Conspiracy
36 months in prison,
3 years supervised release
Peter Andrew Miranda
aka “Fat Boy”, “Baby Rocks”, “Lil’ Burger”
RICO Conspiracy
45 months in prison,
3 years supervised release
Shane Robert Anderson
aka “Tiny Westwood”,
“Tiny West”
RICO Conspiracy
28 months in prison,
3 years supervised release
Jasiri Malcolm Lacey
aka “Baby Westwood”,
“Baby West”
RICO Conspiracy
72 months in prison,
3 years supervised release
Demetrius Montre McFarland
aka “Mechii Ruu”
RICO Conspiracy
52 months in prison,
3 years supervised release
Travion McHenry
aka “Too Much”
RICO Conspiracy
Drug Trafficking
54 months in prison,
3 years supervised release
Richard Cleveland
aka “Face”
RICO Conspiracy
57 months in prison,
3 years supervised release
Larry Darnell Monroe
RICO Conspiracy
Drug Trafficking
151 months in prison,
3 years supervised release
180 months in prison,
3 years supervised release
Umesh Oza
aka “Kevin”
RICO Conspiracy
4 months in prison,
180 days home confinement,
3 years supervised release
“The sentence imposed yesterday for one of the leaders of the Westside Crips demonstrates the seriousness of these crimes and will hopefully deter younger members of the community from becoming members of criminal street gangs,” said U.S. Attorney Robert S. Brewer. “Sex trafficking is a crime that has long-lasting and devastating effects on the women who are controlled by gang members. This office will continue to target criminal street gangs that promote serious crimes, such as sex trafficking, narcotics trafficking, and other violent crimes in our communities.”
Brewer praised prosecutors Alessandra Serano and Joseph Orabona and law enforcement partners for investigation and legal work that has resulted in a halt to dangerous gang activity.
“One of the top priorities for the DEA in San Diego is dismantling criminal street gangs that profit by selling sex and drugs in our community. The profit, cold hard cash, in turn fuels the violence on our streets,” said Special Agent in Charge Karen Flowers. “DEA will continue to target and put away criminal street gang members like Mr. Austin because it makes San Diego County a safer place to live.”
“For over a decade, this sophisticated street gang terrorized the streets of Oceanside and the surrounding areas for profit,” said IRS Criminal Investigation’s Special Agent in Charge Ryan L. Korner. “Our agency plays a unique role in federal law enforcement’s resolve to dismantle criminal gang enterprises. Our agents target the profit and financial gains of these violent organizations, following the money in an effort to disrupt these organizations and bring their members to justice.”
“The Oceanside Police Department would like to thank the U.S. Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation. “It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.
The remaining defendant, William Bright, has a sentencing hearing on May 13, 2019.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number: 17CR0270-JAH
Corey DeShawn Austin aka “Westwood” Age: 38 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 21, United States Code, Section 841(a)(1) – Possession with Intent to Distribute Controlled Substances
Maximum Penalties: 5 years’ in prison, a fine of $250,000, three years of supervised release
AGENCIES
North County Narcotics Task Force
Drug Enforcement Administration
Oceanside Police Department
Internal Revenue Service
West Baltimore Drug Dealer Sentenced to 24 Years in Federal Prison for Conspiracy to Distribute FentanylRead the Press Release
Baltimore, Maryland – On March 7, 2018, U.S. District Judge Richard D. Bennett sentenced James Johnson, age 50, of Baltimore, Maryland to 24 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute between 12 and 36 kilograms of fentanyl. Since as little as 2 milligrams of fentanyl is a fatal dose, 12 kilograms is enough to kill 6 million people, or roughly the population of Maryland. Johnson also possessed six firearms in furtherance of his drug trafficking. During the time of this drug conspiracy, Johnson was on supervised release for a previous federal drug conviction. At yesterday’s sentencing Judge Bennett found that Johnson violated the conditions of his supervised release and sentenced him to 15 months in prison, concurrent to his 24-year sentence.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Acting Commissioner Michael Harrison of the Baltimore Police Department.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. More and more people are dying from fentanyl overdoses in Baltimore City and throughout Maryland. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his plea agreement, from July 2016 through March 2017, law enforcement investigated drug traffickers operating in the Gilmor Homes area of west Baltimore, including Johnson, co-conspirator Sharafa Buhari, and others. Over the course of the investigation law enforcement obtained court-ordered interceptions of communications on Johnson’s cellular telephone, which indicated that Johnson was distributing fentanyl and heroin in Baltimore and elsewhere. Johnson used his cellular telephone to facilitate and discuss his drug trafficking with Buhari and others. Intercepted conversations also established a connection between Johnson and addresses in Baltimore, including addresses in the 1500 block of North Gilmor Street, and the 800 block of West Lombard Street, where Johnson told co-conspirators to meet him.
For example, on January 12, 2017, Johnson and Buhari discussed Buhari coming to a residence in the 1500 block of North Gilmor Street. On January 12, video surveillance captured Buhari carrying a black backpack, arriving at the residence at 6:42 p.m. and eventually departing at 7:16 p.m. carrying the same backpack. On January 20, 2017, Buhari called Johnson to say that he was coming the next day. On January 21, 2017, Buhari and two co-conspirators were stopped by law enforcement as they walked away from a bus that had recently arrived in Baltimore from New York. Law enforcement recovered 2.45 kilograms of suspected heroin from the black backpack and a suitcase being carried by the two co-conspirators.
One of the co-conspirators told investigators that Buhari had asked him to carry the backpack to Baltimore. Following the heroin seizure, FBI agents obtained court-ordered authorization to track Buhari’s cellular phone. The FBI also determined that Buhari purchased a one-way ticket to fly from John F. Kennedy Airport (“JFK”) in New York to his home country of Nigeria. Investigators obtained a federal arrest warrant for Buhari on February 1, 2017, and he was arrested the next day inside JFK by members of FBI New York and Customs and Border Patrol as he attempted to board the Nigeria-bound flight. Agents recovered over $11,000 and two cell phones from his five bags of luggage, as well as numerous adult diapers that Buhari intended to transport to Nigeria.
On March 22, 2017, search warrants were executed at the residences on North Gilmor and West Lombard Streets that were associated with Johnson. Law enforcement recovered a total of 8,500 grams of fentanyl and 17,250 grams of heroin, six firearms, and approximately $700,000 in cash. As a result, it was foreseeable to Johnson that the conspirators would distribute between 12 and 36 kilograms of fentanyl.
Sharafa Buhari, age 52, who resided in Brooklyn, New York, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and was sentenced for four years in federal prison.
United States Attorney Robert K. Hur praised the FBI, the DEA Baltimore Field Office, and the Baltimore Police Department for their work in the investigation. Mr. Hur also thanked the DEA in Norfolk, Virginia and the New York FBI and Customs and Border Patrol agents who assisted in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary Stendig and Michael C. Hanlon, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Venezuelan Minister and Former Vice President Tareck Zaidan El Aissami Maddah Charged with Violations of the Foreign Narcotics Kingpin Designation ActRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that former Venezuelan Vice President TARECK ZAIDAN EL AISSAMI MADDAH (“EL AISSAMI”) and Venezuelan businessman SAMARK JOSE LOPEZ BELLO were charged in Manhattan federal court with criminal violations of the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”) and sanctions imposed in February 2017 by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) pursuant to the Kingpin Act. Related charges under the Kingpin Act were also filed against VICTOR MONES CORO, ALEJANDRO MIGUEL LEON MAAL, MICHOLS ORSINI QUINTERO, and ALEJANDRO ANTONIO QUINTAVALLE YRADY. The case is assigned to U.S. District Judge Alvin K. Hellerstein. MONES CORO and ORSINI QUINTERO were arrested this morning in Florida. MONES CORO appeared this morning before a United States Magistrate Judge in West Palm Beach, and ORSINI QUINTERO appeared this morning before a United States Magistrate Judge in Fort Lauderdale.
Manhattan U.S. Attorney Geoffrey S. Berman said: “International sanctions restrain the activities of individuals and countries deemed to have policies and practices incompatible with the U.S. from receiving the full benefit of economic, political, humanitarian, and other support the U.S. provides globally. Former Venezuelan Vice President Tareck Zaidan El Aissami Maddah allegedly evaded the sanctions imposed by OFAC by employing U.S. companies to provide international transport via private jet. The enforcement of these sanctions is critical to the national security interests of the U.S., and I commend our law enforcement partners for their vigilance and assistance in bringing today’s charges.”
Special Agent in Charge Melendez said: “Tareck Zaidan El Aissami Maddah has held key positions in the Government of Venezuela, including that of former Vice President and current Minister of Industry and National Production. He has used his position of power to engage in international drug trafficking, earning him the designation of Specially Designated Narcotics Trafficker, along with his business partner Samark Lopez Bello. It is alleged that those arrested today, looking to fill their pockets with dirty money, aided El Aissami and Lopez Bello in circumventing sanctions and violating the Kingpin Act, an OFAC designation targeting those who pose a threat to the national security, foreign policy, and economy of the United States. El Aissami and Lopez Bello allegedly used private jets to set up private meetings around the globe including Turkey and Russia. It is necessary to impose sanctions against foreign persons seeking to gain power and control by circumventing the law, and today’s indictments reflect HSI New York’s El Dorado Task Force resolve in holding those willing to violate such sanctions accountable. Both El Aissami and Lopez Bello will have to think twice before leaving Venezuela, as they are wanted to face justice here in New York.”
As alleged in the Indictment and Superseding Indictments unsealed in federal court:[1]
EL AISSAMI became the Vice President of Venezuela in approximately January 2017. In February 2017, OFAC designated EL AISSAMI and LOPEZ BELLO as Specially Designated Narcotics Traffickers pursuant to the Kingpin Act and related regulations. As a result of OFAC’s designations, U.S. persons are generally prohibited from, among other things, engaging in transactions with or providing services to EL AISSAMI and LOPEZ BELLO absent authorization from OFAC. EL AISSAMI and LOPEZ BELLO nevertheless worked with, among others, U.S. citizens MONES CORO and LEON MAAL, as well as ORSINI QUINTERO and QUINTAVALLE YRADY, who held U.S. visas at the time of the crimes, in an effort to violate and evade OFAC’s sanctions by obtaining travel services, including private jet charters for EL AISSAMI, LOPEZ BELLO, and their relatives and associates. EL AISSAMI and LOPEZ BELLO paid for these services at times through intermediaries who delivered bulk cash in Venezuela.
EL AISSAMI, LOPEZ BELLO, MONES CORO, and LEON MAAL used American Charter Services LLC and its affiliates, all U.S. companies, in connection with the transportation services provided to EL AISSAMI and LOPEZ BELLO in violation of the Kingpin Act and the OFAC sanctions. For example, in September 2018, MONES CORO used an American Charter Services account in the United States to pay expenses for an upcoming private flight by LOPEZ BELLO. EL AISSAMI, LOPEZ BELLO, MONES CORO, and LEON MAAL also used SVMI Solution, LLC, another U.S. company, to receive payments for transportation services provided to EL AISSAMI and LOPEZ BELLO in violation of the Kingpin Act and the OFAC sanctions, such as a July 2018 funds transfer sent from Manhattan, New York to an SVMI Solution account in Florida. Earlier this year, LEON MAAL helped EL AISSAMI charter a private flight from Vnukovo International Airport in Russia to Simón Bolívar International Airport in Venezuela on February 23, 2019.
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EL AISSAMI, 44, of Venezuela, LOPEZ BELLO, 44, of Venezuela, MONES CORO, 51, of Florida, and LEON MAAL, 41, of Florida, are each charged in five counts: (1) conspiring to use American Charter Services LLC and SVMI Solution, LLC to engage in transactions prohibited by the Kingpin Act and related regulations, and to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations, (2) using American Charter Services LLC to engage in transactions prohibited by the Kingpin Act and related regulations, (3) using American Charter Services LLC to evade and attempt to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations, (4) using SVMI Solution, LLC to engage in transactions prohibited by the Kingpin Act and related regulations, and (5) using SVMI Solution, LLC to evade and attempt to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations. If convicted, each of the five counts carries a maximum penalty of 30 years in prison, for a total maximum of 150 years in prison on all accounts faced by EL AISSAMI, LOPEZ BELLO, MONES CORO, and LEON MAAL.
ORSINI QUINTERO, 42, of Florida, and QUINTAVALLE YRADY, 36, of Panama, are each charged with one count of conspiring to use American Charter Services LLC and SVMI Solution, LLC to engage in transactions prohibited by the Kingpin Act and related regulations, and to evade sanctions imposed by OFAC pursuant to the Kingpin Act and related regulations. If convicted, this count carries a maximum penalty of 30 years in prison.
Mr. Berman praised the outstanding efforts of U.S. Customs and Border Protection, the DEA’s Special Operations Division Bilateral Investigations Unit, the DEA’s Miami Field Division, and the U.S. Attorney’s Office for the Southern District of Florida. Mr. Berman also thanked the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division, and OFAC.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Amanda L. Houle are in charge of the prosecution.
The charges contained in the Indictment and Superseding Indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty. The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney’s Office for the Western District of Louisiana takes part in largest-ever nationwide elder fraud sweepRead the Press Release
SHREVEPORT, La. – Attorney General William P. Barr and U.S. Attorney David C. Joseph announced today the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than 2 million Americans, most of them elderly.
In the Western District of Louisiana, the sweep included the indictment of Gregory Alan Smith, 56, of Shreveport, and Kirbyjon H. Caldwell, 65, of Houston, Texas, who are charged with defrauding investors out of more than $1 million. According to the indictment returned by a federal grand jury on March 29, 2018, Smith used his influence and status as the operator and manager of Smith Financial Group LLC in Shreveport, and Caldwell used his influence and status as pastor at a prominent Houston church to lure investors into sinking their money into what they thought were high-return investments. Instead of investing the funds, the defendants used them to pay personal loans, credit card balances, mortgages, vehicle purchases and other personal expenses. Some of the victims were seniors.
“In Louisiana we teach our children to honor and respect their elders. Unfortunately, some in our society target the elderly — betraying their confidence and stealing their hard-earned savings,” said U.S. Attorney Joseph. “My office will continue working daily with our law enforcement partners to protect the elderly members of our communities from those who would steal from them through false promises and fraudulent schemes. Make no mistake, we will expose those who prey upon our seniors and bring them to justice.”
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found here.
A fact-sheet with cases on mass mailing fraud can be found here.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
U.S. Attorney’s Office for the Northern District of Georgia takes part in largest-ever nationwide elder fraud sweepRead the Press Release
ATLANTA – Attorney General William P. Barr and U.S. Attorney Byung J. “BJay” Pak announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“The U.S. Attorney’s Office has made protecting the elderly a priority. As part of the elder fraud sweep, this Office brought multiple indictments against defendants responsible for defrauding hundreds of victims, many of them are seniors, out of nearly $5 million,” said U.S. Attorney Byung J. “BJay” Pak. “We remain focused on prosecuting the criminals who target our community’s seniors with financial scams and abuse. Citizens always should be wary of callers who make threats and ask for personal information, and should contact law enforcement if they believe that they have fallen victim to one of these scams.”
Three cases from the Northern District of Georgia include:
- United States v. Mehboob Mansurali Charania: On November 6, 2018, the defendant was charged based on his alleged involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses. Criminal India-based call centers seek to profit by exploiting United States residents, including the most vulnerable members of our community, by impersonating officials from the Internal Revenue Service or other scams. The call center operators threaten potential victims with arrest, imprisonment, or fines if they do not pay supposed taxes, penalties, or fees. If the victims agree to pay, the call centers then turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds by purchasing prepaid debit cards or through wire transfers, including through MoneyGram and Western Union, to the attention of fictitious names and U.S.-based defendants and their co-conspirators. Assistant U.S. Attorney Jolee Porter is prosecuting this case.
- United States v. Sean Kelly: On January 4, 2019, the defendant pled guilty to mail fraud and securities fraud. The defendant used his companies, Lion's Share Financial of East Cobb, Inc., Lion's Share & Associates, Inc., and Lionsshare Tax Services, LLC, to defraud his investors of at least $1 million. His victims included veterans and elderly retirees. As part of his scheme, the defendant promised that he would invest his victim’s funds in a variety of investment products, but instead spent it on personal expenses including mortgage payments, Super Bowl tickets, vacations, and large cash withdrawals. Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting this case.
- United States v. Silvia Sanchez Valverde, et al.: These five defendants operated a sweepstakes scam that targeted the elderly. From February 2016 through September 2017, dozens of victims were contacted by telephone and told that they had won a sweepstakes or lottery. The victims were told that they could receive their sweepstakes winnings after they paid various expenses, such as taxes and fees. The victims were directed to pay the expenses to various companies controlled by the defendants. The victims then mailed payments via personal and cashier’s checks to addresses that were linked to mailboxes rented by the defendants. The defendants deposited the checks, totaling over $3.5 million, into their bank accounts and then transferred the majority of the funds to Costa Rica. The defendants were sentenced to prison terms ranging from two to five years in prison. Assistant U.S. Attorneys Kelly K. Connors and Cassandra J. Schansman prosecuted these cases.
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
A fact-sheet with technical-support fraud case information can be found at /media/993261/dl?inline.
A fact-sheet with cases on mass mailing fraud can be found at /media/993271/dl?inline.
A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found at /media/993266/dl?inline.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office Hosts Second Annual Reentry SimulationRead the Press Release
“A Day in the Life”
West Palm Beach - Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Jeri Muoio, Mayor of the City of West Palm Beach, Stephanie Sejnoha, Public Safety Director of the Palm Beach County Public Safety Department, Steve Craig, President and Chief Executive Officer of CareerSource of Palm Beach County, and Willie Bentley, Northwest Community Center Director for the Salvation Army, announced the successful completion of the second annual Reentry Simulation held today at the Salvation Army’s Northwest Community Center. More than 120 community members, officials and stakeholders attended the event, which simulates the struggles and challenges faced by individuals who are transitioning from incarceration back into society. The U.S. Attorney’s Office for the Southern District of Florida and its dedicated partners continue to take significant steps to reduce recidivism and help formerly incarcerated individuals successfully contribute to their communities.
The Reentry Simulation is just one of many initiatives that support Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction strategy. Locally, PSN is carried out by the Violence Reduction Partnership (VRP), a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida, comprehensive reentry initiatives promote the successful reintegration of returning citizens and strive to reduce recidivism. The goal is to help those who have paid their debt to society best prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our local communities.
Participants in today’s VRP Reentry Simulation gained an understanding of the significant obstacles faced by men and women, upon their release from incarceration. Employment opportunities, social services, and resources are needed in order to support the returning citizens’ successful transition back into our local community.
In addition to the Re-Entry Simulations, the U.S. Attorney’s Office and our partners support other invaluable reentry initiatives.
In 2016, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Reentry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through bi-weekly court sessions, the CARE Team assesses each participants’ progress, addresses any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions.
To further support our returning citizens, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at both the Federal Detention Center and the Federal Correctional Institution located in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful re-entry into society and reduce their risk of recidivism. Since 2013, more than 300 individuals have attended the meetings and received a Reentry Resource Guide.
The U.S. Attorney’s Office and our community partners also continue to support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 400 returning citizens and their families.
The success of these initiatives and today’s simulation would not have been possible, without community support. In particular, of the City of West Palm Beach Mayor’s Village Initiative, a collaborative multidisciplinary strategy to prevent and reduce youth violence and improve outcomes for African American boys and young men in the North End of the City of West Palm Beach. Also, the Palm Beach County Public Safety Department, Justice Services Division, Reentry Initiative and CareerSource of Palm Beach County, both of which currently provide services to returning citizens to reduce recidivism.
Additional information regarding the CARE and VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
U.S. Attorney Uses Civil and Criminal Authorities to Shut Down Drug-Infested HotelRead the Press Release
A U.S. District Judge has granted federal prosecutors’ motion to shut down a drug-infested hotel located just 1000 feet from a Dallas elementary school, U.S. Attorney Erin Nealy Cox announced today.
On Thursday, a task force of more than 50 agents and officers, accompanied by several attorneys, converged on Han Gil Hotel Town to effect arrests, execute search warrants, and post notices requiring the immediate clearing of the premises.
The Han Gil – which prosecutors say served as home base for multiple drug dealers selling cocaine, heroin and meth – became a “safe haven for drug distributors” and a “breeding ground for escalating criminal activity,” the government argued in a civil motion requesting the hotel’s immediate closure.
The Court’s resulting Temporary Restraining Order, signed Wednesday by Judge C. David C. Godbey, prohibits anyone other than Han Gil proprietors and immediate family from occupying the hotel, which the Court agreed likely “endangers the general welfare of the community.”
“The Han Gil is a magnet for drug dealers and violent criminals and needed to be shut down immediately for public safety reasons,” said U.S. Attorney Nealy Cox. “Instead of simply picking off dealers one-by-one, we asked the Court to issue a Temporary Restraining Order enjoining the hotel’s further operation. We believe this business was nothing but a front for criminal activity and posed significant danger to our community. We will continue to push to keep it shut down.”
Over the past eight months, the hotel, which is essentially caddy corner to Herbert Marcus Elementary, has seen three deaths, two non-fatal shootings, and dozens of drug-related incidents, according to the motion.
The husband-wife duo operating the Han Gil, Su Amos and Micha Mun, brazenly allowed controlled substances to be distributed on their property, the motion asserts. In return for an $80 per day “drug tax,” Mr. and Mrs. Mun allegedly permitted dealers to distribute drugs from inside guest rooms.
The motion alleges that at least one exterior door of the Han Gil was left unlocked so individuals who weren’t renting their own rooms could access the rooms where drug deals occurred. Mr. Mun also permitted dealers to install cameras and peepholes in order to detect and avoid police, and even gave dealers advance notice of upcoming inspections. On at least one occasion, he claimed to have deleted surveillance video evidence of an overdose victim being carried from the premises.
About a month after another woman with a history of drug abuse died in one of the rooms at the Han Gil, law enforcement recovered her body in a nearby wooded area.
“Rather than requesting assistance to combat this criminal activity,” the government’s motion says, “the Muns take advantage of it, knowingly profiting from the rampant drug use and sales occurring at the Han Gil.”
In a separate criminal case, Mr. Mun and his hotel corporation, One Way Investments, Inc. have been indicted on one count of maintaining a drug-involved premises, a violation of the Controlled Substances Act. If convicted, Mr. Mun, who is currently in federal custody, faces up to 20 years in federal prison and a fine of $500,000, while the corporation faces a fine of up to $2 million.
The indictment against Mr. Mun also includes drug charges against several dealers, including Erick Dewayne Freemen, aka “Stuff,” Kendrick Lamel Washington, aka “Kiki”, Kimberly Rosha Robinson, aka “Miss K,” and others. Mr. Freeman and Mr. Washington have also been charged with firearm offenses. These defendants face potential sentences of 10 years to life in prison.
“The Han Gil is a well-known haven and attraction for drug dealers and users,” said DEA Special Agent in Charge of the Dallas Division Clyde E. Shelley, Jr. “It is a place linked to violence and death within close proximity of a school. We will continue to pursue these investigations and make our communities safer.”
The government’s complaint and motion are merely allegations of violations of the law, not evidence or findings of liability. Similarly, an indictment is merely an accusation of criminal conduct, not evidence. All criminal defendants are presumed innocent until proven guilty in a court of law.
The Drug Enforcement Administration conducted the investigation with assistance from the Federal Bureau of Investigation, Coppell Police Department, Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshal’s Service, Grand Prairie Police Department, Arlington Police Department, Grapevine Police Department, Lancaster Police Department, the State Department, IRS, U.S. Postal Inspection Service, Plano Police Department, Farmers Branch Police Department, Homeland Security Investigations, Garland Police Department, Rowlett Police Department, Denton Police Department, Lewisville Police Department and McKinney Police Department. Assistant U.S. Attorneys Scott Hogan, NDTX Civil Chief, Lindsey Beran, NDTX Deputy Civil Chief, and Braden Civins filed the civil motion. Assistant U.S. Attorneys Rick Calvert, Chief of NDTX’s Narcotics Section, and Phelesa Guy, Deputy Chief of the Narcotics Section, are prosecuting the criminal case.
U.S. Attorney Brady: Western Pennsylvania’s Response to the Opioid Epidemic Resulted in a Dramatic Decrease in Overdose Deaths in 2018Read the Press Release
PITTSBURGH – Today, United States Attorney Scott W. Brady announced a dramatic decrease in overdose deaths in western Pennsylvania in 2018. Overdose deaths are down 43% throughout the 25 counties in the Western District of Pennsylvania. This includes significant decreases in the counties most impacted by the crisis, including of 50% in Beaver County, 50% in Butler County, 47% in Lawrence County, 47% in Allegheny County, 44% in Washington County and 37% in Westmoreland County.
"This crisis has impacted every community in western Pennsylvania," said U.S. Attorney Brady, calling western Pennsylvania "Ground Zero" for the opioid epidemic. "From day one of my administration, I vowed to fight the opioid epidemic with every tool the Department of Justice has, and to do so with new urgency."
United States Attorney Brady created a new Narcotics and Organized Crime Section and filled it with the office’s most experienced narcotics prosecutors. He appointed an Opioid Coordinator to serve as a point person for the district’s strategic efforts, and obtained funding from the Department of Justice for new federal prosecutors. With the international reach of federal law enforcement, and strong mandatory minimum penalties under federal law, the United States Attorney’s Office brings significant resources to the fight in investigating and prosecuting opioid traffickers.
Additionally, United States Attorney Brady has prioritized cyber investigations into Darknet marketplaces and placed a continued emphasis on health care professionals who abuse their prescribing privileges. Thus far, the U.S. Attorney’s Office in the Western District of Pennsylvania has prosecuted 25 health care professionals for illegal drug distribution.
"Every life is precious—every person addicted to drugs is a son, daughter, mother, father, brother or sister. We will continue to fight for every life," said U.S. Attorney Brady. Brady praised the efforts of federal, state and local law enforcement partners in combatting the epidemic, as well as the crucial role that the health care and treatment communities have played in treating those with opioid abuse disorder.
Three Romanian citizens plead guilty to participating in a multi-million dollar “vishing and smishing” schemeRead the Press Release
ATLANTA - Robert Codrut Dumitrescu pleaded guilty to federal charges of wire fraud conspiracy, computer fraud and abuse, and aggravated identity theft in connection with a scheme, orchestrated from Romania, which resulted in the illegal intrusion into computer servers in the United States, deployment of phishing messages to thousands of victims, and subsequent theft of victims’ social security numbers and bank account information. His conspirators, Teodor Laurentiu Costea and Cosmin Draghici, also pleaded guilty earlier this year to federal charges related to this scheme.
“These defendants thought they could hide behind their computers in Romania and defraud the citizens of the Northern District of Georgia and elsewhere across the United States,” said U.S. Attorney Byung J. “BJay” Pak. “These guilty pleas resulted from a tireless investigative effort to locate these fraudsters and bring them to justice in our District. We will continue to protect our citizens from cyber-criminals, no matter how far the investigation reaches.”
“Cyber criminals cannot hide in the shadows of the internet no matter where they are,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI won’t let geographic boundaries stop us from pursuing those persons who cause tremendous financial pain to U.S. citizens. To the victims of these three conspirators and other cyber criminals, we will continue to identify them and pursue justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately October 2011 through February 2014, Robert Codrut Dumitrescu, Teodor Laurentiu Costea and Cosmin Draghici conducted a “vishing” and “smishing” scheme from Romania. “Vishing” is a type of phishing scheme that communicates a phishing message, that is, a message that purports to be from a legitimate source, in this case the victims’ banks, through a voice recording. “Smishing” is similar to “vishing,” but communicates a phishing message through text messages.
As part of the scheme, the defendants compromised computer servers located in the Northern District of Georgia, and elsewhere, and installed both interactive voice response and bulk emailing software which initiated thousands of telephone calls and text messages to victims in the Northern District of Georgia, and across the United States, tricking them into disclosing Personally Identifiable Information (PII) such as financial account numbers, PINs, and social security numbers. When a victim received a telephone call, the recipient would be greeted by a recorded message falsely claiming to be a bank. The interactive voice response software would then prompt the victim to enter their PII.
When a victim received a text message, the message purported to be from a bank and directed the recipient to call a telephone number hosted by a compromised Voice Over Internet Protocol server. When the victim called the telephone number, they were prompted by the interactive voice response software to enter their PII. The stolen PII was stored on the compromised computer servers and accessed by Dumitrescu and Costea, who then sold or used the fraudulently obtained information with the assistance of Draghici.
At the time of their arrests in Romania, Dumitrescu possessed 3,278 financial account numbers, Costea possessed 36,050 financial account numbers, and Draghici possessed 3,465 financial account numbers – all fraudulently obtained through this scheme. Based upon these numbers alone, the estimated loss amount is expected to exceed $21,000,000.
On August 16, 2017, a grand jury charged Robert Codrut Dumitrescu, 41, Teodor Laurentiu Costea, 42, and Cosmin Draghici, 29, all of Ploiesti, Romania, with multiple federal computer and fraud-related crimes in connection with this scheme. Dumitrescu, Draghici, and Costea were extradited from Romania to Atlanta last year to face these charges.
Sentencing is scheduled for Costea on June 11, 2019 at 2:00 p.m., for Draghici on June 12, 2019 at 11:00 a.m., and for Dumitrescu on July 23, 2019 at 2:00 p.m., all before U.S. District Judge Thomas W. Thrash.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Third Rochester Man Pleads Guilty to Stealing MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Cordell James, 28, of Rochester, NY, pleaded guilty to conspiracy to steal mail before U.S. Magistrate Judge Marian W. Payson. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that James was employed by a U.S. Postal Service contractor at the Greater Rochester International Airport. While performing his job, the defendant conspired with two other individuals, co-defendants Michael Harris and Chansen Diaz, to steal gift cards and cash from the mail. The three men then used the stolen items to finance their lifestyles.
Michael Harris and Chansen Diaz were previously convicted and are awaiting sentencing.Today’s plea is the result of a joint investigation by the United States Postal Service Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Inspectors with the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Sentencing will be scheduled at a later date before U.S. District Judge David G. Larimer.
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Ten indicted in Evansville Fentanyl distribution caseRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced the indictment of 10 fentanyl traffickers, which was unsealed today in the U.S. District Court in Evansville, Indiana. Law enforcement officers from the region participated in the execution of arrest and search warrants related to the investigation on persons and residences in Evansville and elsewhere. Initial hearings for seven of the defendants charged in the indictment will be held today in the Evansville United States District Court starting at 3:00 p.m.
The indictment is the result of an investigation by the Evansville office of the Drug Enforcement Administration, Evansville Vanderburgh County Drug Task Force, Evansville Police Department, Federal Bureau of Investigation, Bureau of Alcohol Tobacco, Firearms and Explosives, Internal Revenue Service, and other federal, state and local law enforcement agencies. The members of the conspiracy are alleged to have brought large amounts of fentanyl pills into the Evansville, Indiana area from Phoenix, Arizona through parcel shipments for further distribution.
The indictment charges ten individuals as follows:
- Jacob Beshear, 25, Evansville, Indiana
- Crystal Vidal, 27, Phoenix, Arizona
- Joshua Carr, 38, Phoenix, Arizona
- David Wargel, 24, Evansville, Indiana
- Ciara Wargel, 24, Evansville, Indiana
- Matthew Hunter Bennett, 22, Evansville, Indiana
- Lauryn Smith, 19, Evansville, Indiana
- Austin Davis, 19, Evansville, Indiana
- Madison Brown, 23, Boonville, Indiana
- Abigail Shipley, 20, Newburgh, Indiana
“Laser focus on dismantling organizations involved in the distribution of fentanyl and the deadly combination of fraudulent firearms purchases is a top priority for the Department of Justice and for this office,” said Minkler. “Today we recognize the collaborative effort and partnerships old and new as we announce again our desire to make the Southern District of Indiana one of the most inhospitable communities to traffic illicit drugs.”
Fentanyl and fentanyl-related substances represent the deadly convergence of the synthetic drug threat with the current national opioid epidemic. DEA Indianapolis Acting Assistant Special Agent in Charge Dan Gordon emphasized, “DEA recognizes the importance of working with our law enforcement counterparts to attack the violent drug trafficking networks producing, importing, and profiting from these deadly drugs. The DEA Mission is to protect our communities against narcotics traffickers who prey on those who suffer the scourge of addiction.”
Evansville Police Chief Billy Bolin expects these arrests to send an important message, “We have seen the devastating effects Fetanyl can have on members of our community. Despite the known dangers of Fentanyl abuse, these individuals were willing to profit from its illegal sales. These arrests send a message that the distribution of Fetanyl and other illicit narcotics will not be tolerated in Evansville.” Evansville Police Chief Billy Bolin
The Indictment charges ten (10) defendants with conspiracy to distribute fentanyl. Two (2) of the defendants, Beshear and Vidal, are charged with money laundering. Three (3) of the defendants, Beshear, David Wargel, and Brown, are charged with firearms straw purchases. According to Assistant United States Attorney Frank E. Dahl III, who is prosecuting the case for the government, the defendants face possible sentences of up to 20 years in prison if convicted.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who traffic in large quantities of illegal opiates and other dangerous drugs. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.2
Tax Preparers Charged with Filing False ReturnsRead the Press Release
The owner and operator of First Premier Tax Service, a Philadelphia, Pennsylvania, tax preparation business and a return preparer working at the business, were charged in connection with a scheme to prepare fraudulent tax returns in order to reduce taxes and inflate federal tax refunds for their clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney William McSwain for the Eastern District of Pennsylvania.
An indictment returned by a federal grand jury charged both Nvahbulai Quisiah and Gofin Kosia, also known as Kafumba Kromah, with one count of conspiracy to defraud the United States, three counts of wire fraud, and three counts of aggravated identity theft. Quisiah was also charged with eight counts of aiding and assisting in the preparation and filing of a false tax return. Kosia was charged with nine counts of aiding and assisting in the preparation and filing of a false tax return.
According to the indictment, Quisiah and Kosia prepared tax returns for clients for tax years 2009 through 2016 that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents. As a result of these false items and deductions, the defendants allegedly inflated claimed tax refunds for their clients. The indictment alleges that the defendants knew their clients were not entitled to such refunds. One of the clients was an IRS agent acting in an undercover capacity. The indictment also alleges that the defendants bought and sold personal identifying information of children in order to falsely claim the children as dependents on tax returns for the defendants’ clients.
If convicted of aggravated identity theft, the defendants face a mandatory minimum sentence of two years in prison. Each count of wire fraud carries a maximum sentence of twenty years in prison, while each count of aiding and assisting in the preparation of false tax returns carries a maximum three year prison term. The defendants also face a period of supervised release, fines, and the payment of restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.
Tampa Woman Charged with Distributing Heroin and Fentanyl, Causing DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Joamary Rosario (28, Tampa) with conspiring to distribute a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl and distributing a substance that contained a mixture of heroin, fentanyl, and acetyl fentanyl, causing the death of an individual. If convicted, Rosario faces a minimum mandatory penalty of 20 years, and up to life, in federal prison.
According to the
indictment and information presented in court, beginning on an unknown date but no later than November 6, 2018, and continuing through November 7, 2018, Rosario conspired with other individuals to possess and distribute heroin, fentanyl, and acetyl fentanyl.On November 6, 2018, Rosario sold 10 plastic bags—each of which contained a substance composed of a mixture of heroin, fentanyl, and acetyl fentanyl—to an individual. The individual injected himself with the substance from one of the bags and died. A medical autopsy revealed that the cause of death was an accidental overdose caused by a mixture of heroin and fentanyl.
On November 7, 2018, an undercover law enforcement officer contacted Rosario, posing as the deceased individual, and asked her to bring him more of what she had delivered the previous night. Rosario agreed. When she arrived at the meeting place, she was arrested and found to be in possession of three more bags of the same substance.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. This case was investigated by the Hillsborough County Sheriff’s Office Heroin Working Group, with assistance from the Hillsborough County Medical Examiner’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Michael M. Gordon.
Syrian National Charged with StalkingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging ALAA HASAN QALB ALLOUZ, 34, a citizen of Syria last residing in New Haven, with one count of stalking in violation of a protective order.
The indictment was returned on February 5, 2019. Allouz, who has been detained in state and then federal custody since January 10, 2017, appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge.
As alleged in court documents, in July 2016, Allouz, his wife and their children emigrated from Syria and settled in New Haven. In April 2017, Allouz’s wife filed a petition for dissolution of marriage, after incidents of domestic violence and Allouz’s state arrests for risk of injury, assault, breach of peace, and violation of a protective order offenses. In July 2017, Allouz’s wife obtained a Standing Criminal Protective Order ordering Allouz not to contact his wife. In August 2017, after Allouz threatened his wife, Allouz’s wife withdrew her petition for dissolution of marriage.
On February 2, 2018, Allouz was taken into custody by U.S. Immigration and Customs Enforcement on a federal arrest warrant and order of deportation, and he was transferred from a Connecticut state prison to a detention center in Massachusetts. It is alleged that, while he was detained in ICE custody, Allouz made multiple phone calls to his wife during which he repeatedly harassed, threatened and intimidated her. He also made calls to other individuals during which he threatened to harm his wife and her family members. Allouz also threatened his wife and her family members in letters and e-mails.
If convicted of the charge, Allouz faces a mandatory minimum term of imprisonment of one year and a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Sutton Man Sentenced on Federal Drug ChargesRead the Press Release
BOSTON – A Sutton man was sentenced today in federal court in Worcester in connection with a large scale marijuana grow operation.
Eric Vallee, 38, was sentenced by U.S. District Court Judge Timothy S. Hillman to six months in prison and two years of supervised release. In June 2018, Vallee pleaded guilty to two counts of manufacturing marijuana and possessing marijuana with intent to distribute.
A search of Vallee’s home in Auburn, Mass., where he maintained a large, commercial-style marijuana grow operation, resulted in the seizure of more than 100 marijuana plants as well as approximately seven pounds of marijuana packaged for distribution, a cash-counting machine, and approximately $13,000. Vallee then moved to a house in Sutton, Mass. where he continued to oversee a large, commercial-style marijuana grow operation. A search of the Sutton home resulted in the seizure of 55 marijuana plants as well as approximately seven pounds of marijuana packaged for distribution and a cash-counting machine.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and the Auburn and Sutton Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.
Springfield Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Springfield man was charged in federal court in Springfield yesterday with failing to register as a sex offender.
Ruben Pagan, 48, was charged with one count of failing to register as a sex offender. He is currently in state custody on unrelated charges.
According to the charging document, Pagan, having been convicted of a sex offense, engaged in interstate travel and failed to register, as required by law, as a sex offender between October 2017 and March 2018.
Pagan faces no greater than 10 years in prison, a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to 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.
Southern District takes part in largest-ever nationwide elder fraud sweepRead the Press Release
SAVANNAH, Ga: Attorney General William P. Barr and U.S. Attorney Bobby L. Christine today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
In the Southern District, a Liberty County woman has been federally charged with defrauding an elderly dementia patient in an effort to steal nearly half a million dollars.
Sailor Jones, 57, of Midway, Ga., is charged with wire fraud in United States District Court in Savannah, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. She faces up to 20 years in federal prison.
According to an information filed in the case, Jones, who is not a licensed nurse, owned a company purporting to provide at-home health services that was not licensed with the state of Georgia. From about December 2016 to June 2017, Jones provided cleaning and other minor tasks for a now-90-year-old woman who lived at a Savannah retirement community that provided the dementia patient with 24-hour skilled nursing services.
During this period, according to court documents, Jones fraudulently gained access to the woman’s checking and retirement accounts by posing as the victim, taking more than $300,000 and depositing the funds in Jones’ own personal accounts.
“Sailor Jones exploited an elderly dementia patient to enrich herself,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Rather than serving this vulnerable woman’s needs, Jones instead fed her own greed. Our office and the Department of Justice will not tolerate fraud and abuse of our elder citizens, particularly those who have no choice but to trust others for their care.”
“The U.S. Secret Service has invested in identifying and investigating elder abuse and exploitation. Because eliminating this crime requires coordinated action, we work together with other federal, state and local agencies so that, together, we can build a more responsive network and give seniors the tools to avoid financial scams and elder abuse before it starts” stated Resident Agent in Charge Glen Kessler of the U.S. Secret Service Savannah Resident Office. “These senior citizens have earned the right to enjoy their retirement years with a sense of security.”
The charge is merely an allegation, and defendants are presumed innocent unless and until proven guilty.
The case was investigated by the United States Secret Service and is being prosecuted by the United States Attorney’s Office.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
The Department of Justice took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at more than three fourths of one billion dollars.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Sanborn Woman to Federal Prison for MethRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced March 8, 2019, to 8 years in federal prison.
Jamie Williams, 33, from Sanborn, Iowa, received the prison term after a May 21, 2018, guilty plea to one count of conspiracy to distribute methamphetamine within 1000 feet of a protected location.
Evidence at the guilty plea and sentencing showed that from 2015 through January 2018, Williams distributed more than six pounds of methamphetamine from her residence. Williams lived within 1000 feet of Hartley Melvin Sanborn Middle School. In January 2018, law enforcement executed a search warrant at Williams’ residence and seized over 120 grams of pure methamphetamine from her purse.
Williams was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Williams was sentenced to 96 months’ imprisonment. She must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system. Williams is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala M. Steenholdt and investigated by the Clay County Sheriff’s Office, O’Brien County Sheriff’s Office, Dickinson County Sheriff’s Office, and Iowa Division of Criminalistics Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4010. Follow us on Twitter @USAO_NDIA.
San Francisco Acupuncturist Indicted on Health Care Fraud Charges for False Billing SchemeRead the Press Release
SAN FRANCISCO– A federal grand jury has indicted Haichao Huang, charging him with health care fraud and making false statements relating to health care matters, announced United States Attorney David L. Anderson, Office of Personnel Management Office of the Inspector General Deputy Assistant Inspector General for Investigations Thomas W. South, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Abel Salinas.
According to the indictment, filed March 7, 2019, and unsealed today, from February 2013 through June 2018, Huang, 46, of San Francisco, was a health care provider who offered acupuncture, physical therapy, massage, and other services at his office in San Francisco. The indictment alleges that Huang submitted claims for reimbursement to his patients’ health insurance plans, claiming that he provided reimbursable services and treatments when, in fact, he knew that the billings were false and not properly reimbursable. The indictment gives three examples of the ways in which Huang allegedly submitted billings for reimbursement. First, Huang submitted requests for reimbursement for acupuncture and other treatments when, in fact, the patient had received either much shorter periods of treatment or no treatment at all. Second, after a patient reached the limit of acupuncture sessions allowed by the relevant insurance plan, Huang billed the plan for other types of treatments and services that were not provided in order to continue receiving improper reimbursements. Third, Huang submitted claims for services rendered on days when the patient beneficiaries were not seen and received no services at all—including days when Huang was not in California.
Huang is charged with six counts of health care fraud, in violation of 18 U.S.C. § 1347, and one count of false statement relating to health care matters, in violation of 18 U.S.C. § 1035(a)(2).
An indictment merely alleges that crimes have been committed, and Huang, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years in prison and $250,000 for each violation of 18 U.S.C. § 371. The defendant faces five years in prison and a fine of $250,000 if convicted of the violation of 18 U.S.C. § 1035(a)(2). The court may also order additional fines, restitution, and additional periods of supervised release at sentencing. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Huang made an initial appearance today before U.S. Magistrate Judge Joseph C. Spero. Huang pleaded not guilty and was released on bond. Judge Spero scheduled Huang’s next court appearance for March 12, 2019, for a further bond hearing. Huang’s first appearance before a district court judge is scheduled for March 22, 2019, before the Hon. Susan Illston, U.S. District Judge.
Assistant U.S. Attorney Ross Weingarten is prosecuting the case with the assistance of Marina Ponomarchuk. This prosecution is the result of investigations by the Office of Personnel Management Office of Inspector General and the Department of Labor Office of Inspector General, with assistance from the San Mateo County District Attorney’s Office.
Salem Man Sentenced to over a Year in Prison for Tax EvasionRead the Press Release
CONCORD- Blake Ruggiero, 44, of Salem, New Hampshire, was sentenced to 12 months and one day in prison for tax evasion, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, the defendant has owned and operated Romano’s Pizza in Salem since 1994. The defendant paid a substantial portion of wages to Romano’s employees in cash and failed to declare these wages to the Internal Revenue Service in order to reduce his tax liability. The defendant kept multiple sets of books that were seized as part of a search warrant. These documents showed the amounts that the defendant paid in cash but did not report. As a result of the defendant’s conduct, between 2011 and 2016, the defendant failed to pay to the IRS $621,614.88 of employment-related taxes.
Ruggiero previously plead guilty on November 27, 2018.
“As we approach the tax filing season, this case is a sobering reminder that tax evasion is a serious crime,” said U.S. Attorney Murray. “Those who act dishonestly to avoid paying their fair share of taxes undermine the integrity of the tax system. We will continue to work with the IRS to identify and prosecute those who violate our tax laws.”
“Our nation's tax system requires all of us to pay what we owe, or else our society cannot function,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigations in Boston. “This is an appropriate sentence for an individual who failed to pay significant employment taxes owed by his restaurant. Those who skirt the law in this manner gain a competitive advantage that is unfair to honest taxpayers. Violators will be prosecuted, punished and obligated to repay their taxes, along with substantial penalties and interest.”
This matter was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
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Salem County, New Jersey, Man Sentenced to Eight Years in Prison for Dealing Guns Without a LicenseRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man with a previous felony record was sentenced today to 96 months in prison for illegally possessing guns and selling guns without a license, U.S. Attorney Craig Carpenito announced.
Corey Moore, 33, of Salem, previously pleaded guilty before U.S. District Judge Noel L. Hillman to two counts of an indictment charging him with dealing in firearms without a license and unlawfully possessing firearms after having been convicted of a felony offense. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From July 20, 2016, through Dec. 20, 2016, Moore sold firearms. On Oct. 24, 2016, Moore sold two loaded firearms – an Intratec, Model AB10, 9 millimeter Luger pistol, and a Smith & Wesson, Model 642 (marked LadySmith), .38 caliber revolver – to a man who was a confidential informant working with federal law enforcement officers. Moore, who did not have a license, sold the firearms to the informant at a convenience store in Logan Township, New Jersey. He also unlawfully possessed two additional loaded firearms: an Iberia Firearms Inc. (Hi-Point), Model JCP, .40 caliber pistol, and a Ruger, Model Security-Six, .357 magnum caliber revolver. Both of those firearms were fully operable and had been transported in interstate commerce prior to Moore’s possession of them.
In addition to the prison term, Judge Hillman sentenced Moore to X years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Christopher Taylor, with the investigation with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the Criminal Division in Camden.
Saint Paul Man Pleads Guilty to Armed Robbery of Two Eagan BanksRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of DAMIEN JAMES McDONALD, 40, to two counts of armed bank robbery. McDONALD, who was indicted on July 18, 2018, pleaded guilty today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea, on April 14, 2018, McDONALD entered the US Bank branch in the Lunds & Byerly’s grocery store in Eagan, Minnesota, pointed a firearm at two tellers and demanded money. The tellers complied with his demands and McDONALD fled the store with $2,739 in cash. On June 6, 2018, McDONALD entered the Associated Healthcare Credit Union in Eagan, Minnesota. McDONALD pointed a firearm at a teller, threw a bag on the counter and demanded that the teller fill it with cash. After the teller complied, McDONALD ordered the teller to pass the bag to an adjacent teller, who was also instructed to fill the bag with cash. McDONALD ordered the two tellers to a back room and then fled the credit union with $8,236 in cash, which included ten pre-recorded $20 bait bills. Upon review of the surveillance video of the credit union robbery, law enforcement recognized McDONALD and executed a search warrant at his residence and for his vehicles later that day. Law enforcement recovered clothing that matched the clothing worn by the robber during the two robberies and thousands of dollars in cash hidden in the residence. Additionally, investigators found over one-thousand dollars cash in McDONALD’S pocket following his arrest, including cash that matched some of the pre-recorded bait bills from the credit union robbery.
This case is the result of an investigation conducted by the FBI and Eagan Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat violent crime.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar, Thomas Calhoun-Lopez, and Charles J. Kovats.
Defendant Information:
DAMIEN JAMES McDONALD, 40
Saint Paul, Minn.
Convicted:
- Bank robbery (armed), 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Repeat Offender Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Springfield man was sentenced today to total of 16 years in prison and a lifetime of supervised release for receipt of child pornography and a supervised release violation.
According to court documents, William Hemphill, 39, admitted that he downloaded thousands of images and videos of child pornography in February and March 2018. Hemphill, who is currently serving a term of federal supervised release as part of his sentence for an earlier 2006 conviction for possession of child pornography, fled from supervision in Virginia in February 2018. He was arrested in Utah aboard a California-bound train in March 2018, in possession of cocaine and several electronic devices, including a laptop computer. A subsequent forensic examination of these devices revealed that Hemphill had used multiple anonymous Internet services to download and view large quantities of child pornography while on the run in Virginia and elsewhere.
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 U.S. Attorney’s Offices and the 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.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Mathieson, U.S. Marshal for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney William G. Clayman prosecuted the case.
This case was initiated and investigated by the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI Agents, along with Detectives from the Washington Metropolitan Police Department, Fairfax County Police, Arlington County Police, Prince William County Police, Alexandria City Police, Loudoun County Sheriff’s Department, Leesburg Police Department, USMS and other federal Offices of Inspector Generals. Additional assistance in this case was provided by the FBI’s Salt Lake Field Office, the United States Marshal’s Office, and the United States Probation and Pretrial Services in the District of Utah.
The U.S. Attorney’s Office for the District of Utah provided significant assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-414.
Rapid City Man Found Guilty of Attempted Commercial Sex Trafficking of ChildrenRead the Press Release
United States Attorney Ron Parsons announced that Zam Lian Mung, age 29, was found guilty of Attempted Commercial Sex Trafficking of Children following a federal trial in Rapid City, South Dakota.
The charge carries a mandatory minimum of 10 years up to life in federal prison and/or a $250,000 fine, 5 years up to lifetime supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that on August 7, 2018, Mung responded to a prostitution advertisement on CityxGuide.com posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Mung believed to be associated with a 15-year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the $150 he would pay to engage in sex acts with the minor.
The undercover operation and arrest was a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted and tried the case.
A sentencing date has not been set. Mung was remanded to the custody of the U.S. Marshals Service pending sentencing.
Randolph County Resident Pleads Guilty to Federal Credit Card Fraud ChargesRead the Press Release
GREENSBORO, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that ANTHONY THOMAS HARRELSON, 39, of Sophia, North Carolina, pleaded guilty in federal court in Greensboro before the Honorable N. Carlton Tilly, to seven felony charges of use of an unauthorized access device (i.e., a credit card).
HARRELSON pleaded guilty to using credit cards fraudulently obtained from J.P. Morgan Chase Bank and American Express. The indictment alleges that HARRELSON purchased merchandise, jewelry, gold coins, meals at restaurants, vehicles, and firearm parts in excess of $350,161.47 with the fraudulent credit cards. The exact amount of the loss will be determined by the Court at sentencing.
The defendant faces a maximum potential penalty of seventy years imprisonment. The plea agreement requires HARRELSON to make restitution and to forfeit money and goods acquired from use of the fraudulent credit cards. Sentencing is scheduled for federal court in Greensboro on June 27, 2019, at 2 p.m.
The case was investigated by the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Randolph County Sheriff's Department. The case was prosecuted by Assistant United States Attorneys Frank J. Chut, Jr. and Steven N. Baker.
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Pittsfield Man Sentenced to 130 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - John F. Kelekci, 35, of Pittsfield, New Hampshire, was sentenced in federal court on Thursday to serve 130 months in prison for conspiracy to distribute, and possess with intent to distribute, methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning in late 2016, the DEA and the Postal Inspection Service investigated numerous parcels mailed from Las Vegas, Nevada, to New Hampshire suspected of containing methamphetamine. Law enforcement officers also investigated parcels mailed from New Hampshire to Las Vegas, Nevada, suspected of containing United States currency, and money transfers from New Hampshire to Las Vegas. Eventually, law enforcement officers identified Edward Espejo as the individual in Las Vegas who was shipping methamphetamine to New Hampshire in return for money transfers or packages of cash mailed to him.
On December 19, 2017, a Priority Express Mail parcel was mailed from "Brian C Sullivan" at an address in Las Vegas, to a business in Suncook, New Hampshire. On December 20, 2017, an employee of the business contacted local law enforcement to report concerns that the parcel contained illegal narcotics. Police responded to the business and discovered that the parcel contained a plastic vacuum-sealed bag containing 123.9 grams of 100 percent pure methamphetamine. After interviewing witnesses at the business, law enforcement identified the defendant as the intended recipient of the parcel and determined that, earlier in the day on December 20, 2017, the defendant had been waiting at the business for a parcel to arrive, but had departed the business before the mail arrived. Further investigation revealed that the day before the package was shipped, the defendant had wired $2,400 to Espejo in Las Vegas as payment for the drugs.
In January of 2018, the defendant drove from New Hampshire to Las Vegas and met with
Espejo in person. While in Las Vegas, the defendant was wired money by several New Hampshire residents. On January 16, 2018, the defendant mailed two packages to New Hampshire, each containing more than five grams of actual methamphetamine. The first package was intercepted and seized pursuant to a search warrant. On January 20, 2018, the defendant flew home to New Hampshire, leaving behind the car he had driven to Las Vegas at Espejo's house.
On March 9, 2018, the defendant was arrested in New Hampshire by local police following a vehicle chase. During a search of the vehicle the defendant was driving, police seized multiple items, including $6,150 in cash, a Wal-Mart money transfer receipt for $1,500 with Edward Espejo's name on it, and 27.8 grams of 100 percent pure methamphetamine.
Records obtained in the investigation confirmed hundreds of telephone contacts between the defendant and Espejo, as well as multiple money transfers to Espejo and one of Espejo’s associates.
Kelekci previously pleaded guilty on September 27, 2018.
Espejo previously pleaded guilty and is awaiting sentencing. Two other defendants in this conspiracy, Michael Bean and Mark Moore, are also awaiting sentencing.
“This case highlights the emergence of methamphetamine as a lethal substance that threatens the health and safety of New Hampshire communities,” said U.S. Attorney Murray. “Traffickers will use any available means, including the U.S. Mail, to transport their deadly products across the country, making them available for sale on our streets. As is apparent from the lengthy sentence imposed in this case, those who choose to bring methamphetamine into New Hampshire should understand that they face severe consequences for this unlawful conduct.”
“DEA is committed to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “DEA and its local, state and federal partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
“The sentence imposed should give fair warning that the U.S. Postal Inspection Service will seek justice for those who traffic illegal narcotics through the U.S. Mail,” said U.S. Postal Inspection Service's Inspector in Charge, Joseph W. Cronin of the Boston Division. “This highly addictive drug has no place in our communities. We will continue to identify and investigate those who engage in this type of drug trafficking."
This matter was investigated by the DEA and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney John Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Pittsburgh Man Pleads Guilty in Multi-year Marijuana Trafficking Operation that Distributed Primarily to College CampusesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to charges of conspiracy to distribute 100 kilograms or more of marijuana and conspiracy to launder proceeds of marijuana trafficking, United States Attorney Scott W. Brady announced today.
Christopher Schanck, 36, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the Drug Enforcement Administration and other agencies conducted a multi-year investigation of the marijuana trafficking conspiracy of Schanck and his co-conspirators. From 2012 through 2017, Schanck and his co-conspirators arranged for marijuana to be supplied from the West Coast and mailed to the Pittsburgh area through the United States Postal Service. Schanck and his co-conspirators would then distribute the marijuana in the Western District of Pennsylvania, primarily on college campuses, such as Indiana University of Pennsylvania. During the operation of the conspiracy, Schanck conspired to distribute from 100 to 400 kilograms of marijuana. He also conspired to launder approximately $258,404 in proceeds from marijuana trafficking.
Judge Cercone scheduled sentencing for July 25, 2019, at 11:45 a.m. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Indiana Borough Police conducted the investigation that led to the prosecution of Schanck. 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.
Pittsburgh Drug Felon Pleads Guilty to Illegal Gun Possession ChargeRead the Press Release
PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Phil Bradford, 24, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Bradford, an individual with a prior felony drug conviction, knowingly and unlawfully possessed a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm.
Judge Cercone scheduled sentencing for July 25, 2019 at 1 p.m. The law provides for a total sentence of not more than 10 years in prison, a fine of not more than $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 Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Bradford.
Pearl Man Sentenced to Five Years in Federal Prison for Heroin ConspiracyRead the Press Release
Gulfport, Miss. – Howard Lee Walker, 30, of Pearl, Mississippi, was sentenced yesterday by U.S. District Judge Sul Ozerden to 60 months in federal prison, followed by three years of supervised releas,e for conspiring with others to possess with intent to distribute heroin, announced U.S. Attorney Mike Hurst and DEA Assistant Special Agent in Charge Derryle Smith. Walker was also ordered to pay a $3,000 fine.
On July 6, 2018, Biloxi police responded to a call about a female attempting to pass a $100.00 counterfeit bill at Walmart. When officers arrived, they stopped a van driven by Erica Wooldridge of Jackson. Walker was a passenger in the vehicle. Both individuals had warrants for their arrest. Upon searching the vehicle, officers found a loaded 9mm pistol under the front console and numerous pills. Walker admitted to riding with Wooldridge from Jackson to Biloxi to sell the pills. Wooldridge and Walker thought they were selling Percocet or Oxycodone. However, after testing, analysts determined the pills actually contained 295 grams of heroin.
Walker pled guilty on December 4, 2018. Wooldridge was sentenced on January 14, 2019, to 51 months in federal prison, followed by three years of supervised release, and ordered to pay a fine of $7,500.00.
The case was investigated by the Drug Enforcement Administration and the Biloxi Police Department. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Palo Pinto General Hospital CEO Pleads Guilty to Multi-Million Dollar Healthcare Fraud SchemeRead the Press Release
The former CEO of Palo Pinto General Hospital has pleaded guilty to defrauding three major insurance providers – BlueCross BlueShield of Texas, CIGNA Texas, and United Healthcare – out of millions of dollars, U.S. Attorney for the Northern District of Texas Erin Nealy Cox announced today.
According to his plea papers, Palo Pinto General Hospital CEO Harris Brooks, along with his co-conspirators, used PPGH’s in-network contracts with large health insurance companies to engage in pass-through billing for laboratory services, a scheme that lasted from September 2017 through June 2018.
Using PPGH’s national provider identification number, Mr. Brooks and his co-conspirators submitted claims to insurance companies for allergy and genetic testing purportedly performed at PPGH, Harris admits. In reality however, PPGH did not have the equipment on-site to perform the tests for which it submitted claims, and the patients for whom claims were submitted were receiving treatment at various spas and clinics throughout Texas and elsewhere, not PPGH. The patients did not know about the pass-through charges using PPGH’s insurance contracts.
Over the nine-month period, Brooks and his co-conspirators submitted claims to health insurance providers for laboratory services totaling more than $55 million, the vast majority of which were fraudulent. As a result of these claims, the insurance companies paid PPGH more than $9 million.
The purpose of the scheme was to receive higher rates of reimbursement from the insurance companies, Harris said.
According to his plea agreement, Brooks faces up to five years in prison and will be required to pay restitution to those he defrauded.
The Federal Bureau of Investigation conducted the investigation; Assistant U.S. Attorney Megan Fahey prosecuted the case.
Omaha Man Sentenced for Armed Credit Union RobberyRead the Press Release
United States Attorney Joe Kelly announced that Joseph Lanckriet, 28, was sentenced on Thursday March 7, 201,9 in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr., for the crime of armed bank robbery. Judge Rossiter sentenced Lanckriet to 56 months’ imprisonment, a five-year term of supervised release, and ordered Lanckriet to make restitution in the amount of $27,278 to the SAC Federal Credit Union.
On December 7, 2012, Joseph Lanckriet and co-defendant Thomas Woodard, who was sentenced in February, robbed the SAC Federal Credit Union located at 219 S 23rd St. in Plattsmouth, Nebraska, and took $27,278 in credit union funds.
Brandishing a pellet gun, the two robbers confronted a credit union employee at the entrance of the credit union as she was preparing to open for business. After being forced to open the vault and providing them with money, the employee’s hands were zip tied behind her back and her driver’s license was taken from her. She was told if she called the police, they now knew where she lived and they would come back to harm her.
The case went cold but ultimately Lanckriet and Woodard were apprehended in Sioux City, Iowa, in 2014, after they committed another robbery in that city.
This case was investigated by the Federal Bureau of Investigation, the Plattsmouth Police Department, and the Nebraska State Patrol.
New Haven Man Pleads Guilty to Robbing West Haven BankRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MALCOLM LYTELL, 65, of New Haven, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of bank robbery.
According to court documents and statements made in court, on December 21, 2018, Lytell, wearing a hooded jacket, dark gloves and a mask that covered most of his face, entered the TD Bank located at 636 Campbell Avenue in West Haven. He then provided a black bag and a note demanding money to bank employees, and threatened to shoot employees if they did not comply. Bank employees filled the bag with $1,260 in cash and Lytell exited the bank. West Haven Police apprehended Lytell shortly after the robbery.
Lytell has been detained since his arrest.
Lytell has prior federal convictions for burglary and firearm offenses related to multiple armed bank robberies in Connecticut. In January 1994, he was sentenced to 248 months of imprisonment and five years of supervised release for those offenses. He was released from federal prison in April 2018.
The charge of bank robbery carries a maximum term of imprisonment of 20 years. Judge Hall scheduled sentencing for May 31, 2019.
Lytell faces additional penalties for violating the conditions of his supervised release.
This matter has been investigated by the Federal Bureau of Investigation and the West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Margaret E. Maigret.
Nashua Man Pleads Guilty to Fentanyl Trafficking and Firearms ChargesRead the Press Release
CONCORD - Grant Michallyszyn, 22, of Nashua, pleaded guilty in federal court to possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, law enforcement officers executed a search warrant at a hotel room in Nashua where Michallyszyn was staying. During the search, law enforcement seized two handguns, nine rounds of ammunition, digital scales, and various drugs, including over 39 grams of fentanyl. Under federal law, it is unlawful to possess a firearm to protect one’s drug trafficking activities or the location from which one distributes narcotics.
Michallyszyn is scheduled to be sentenced on June 10, 2019.
“The illegal sale of fentanyl poses a serious and well-known risk to public health and safety” said U.S. Attorney Murray. “When fentanyl dealers use firearms to further sales, the danger to the public is greatly increased. Accordingly, the aggressive prosecution of armed fentanyl dealers will continue to be a priority for the U.S. Attorney’s Office.”
“Today Mr. Michallyszyn finally accepted responsibility for illegally possessing firearms to protect his stash of narcotics in pursuit of his drug trafficking activities. This case is another example of how the FBI will continue to work in lock-step with our law enforcement partners to eliminate guns, drugs and violence from our neighborhoods,” said Joseph R. Bonavolonta, Special Agent in Charge, FBI Boston Division.
This matter was investigated by the FBI and Nashua Police Department, with assistance from the New Hampshire Attorney General's office. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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NDTX Roundup - 3/8/2019Read the Press Release
SENTENCING – Gary Morris (AUSA David Jarvis)
Following a four-day sentencing hearing, 70-year-old Gary Ronald Morris, of McKinney, was sentenced on March 6 to 5 years in federal prison and ordered to pay more than $2.2 million in restitution for his role in an investor fraud scheme. Mr. Morris pleaded guilty to wire fraud in May 2018. In his plea papers, Mr. Morris admitted he devised a scheme to defraud investors by deceiving them about the true state of his business, Greystone Digital Technologies. He admits he sent emails to investors falsely claiming that a third party was willing to invest millions in Greystone’s “cargo scanner” project; that he was working closely with Federal Express on the scanner project; and that other companies had partnered with him on the scanner project. At the conclusion of the hearing, a U.S. District Judge ordered Mr. Morris taken into custody immediately.INDICTMENT – Charles Grant (AUSA Walt Junker)
On March 7, a federal grand jury indicted Charles Edward Grant, of Dallas, on two counts of bank robbery. Mr. Grant, 23, allegedly robbed two Dallas banks, a Chase Bank and a Bank of America, in January 2019. He faces up to 20 years in prison on each count.PLEA -- Louis Medford (AUSA John Boyle)
Louis Douglas Medford pleaded guilty on March 7 to firearm and drug charges. Mr. Medford – who was an already convicted felon at the time -- admits he fled the scene of a June 2017 traffic stop after Garland police officers noticed marijuana in his vehicle. Search of the vehicle later revealed a 9 mm Glock under the driver’s seat. Less than a month later, Mr. Medfords admits, he was stopped again, this time with 486 grams of marijuana, a digital scale, and several small plastic bags. This week, he pleaded guilty to two counts of possession with intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of felon in possession of a firearm. The Garland Police Departmet] investigated.INDICTMENT* – Bertha Garay (AUSA Danielle Jones)
On March 6, 2019, a federal grand jury indicted Bertha Garay, 46, for theft of government funds, false statement to the Social Security Administration and Representative Payee Fraud. She was allegedly receiving SSA benefits on behalf of her minor daughter as her representative payee. However, her minor daughter was not in her custody and Ms. Garay was not using the benefits on her daughter. She mislead SSA by submitting signed paperwork stating that her daughter lived with her and she was using the benefits for the care of her daughter. If convicted of this case, Ms. Garay could potentially be compelled to pay back over $82,000. The SSA Office of the Inspector General investigated the case.SENTENCING -- Tony Contreras (AUSA George Leal)
On March 4, 39-year old Tony Contreras, of Hutchins, Texas, was sentenced to more than 8 years behind bars for conspiracy to possess with intent to distribute methamphetamine. According to court documents reflect, in February 2016, he ordered two kilograms of cocaine and one kilogram of methamphetamine from a co-defendant, and complained about a previous kilogram of methamphetamine being wet. The co-defendant told Contreras he would call Contreras when the methamphetamine was ready but that no cocaine was available. The case was investigated by the FBI and the Criminal Investigations Division of the Internal Revenue Service.SENTENCING -- Jose Juan Ortiz-Pacheco (AUSA George Leal)
On March 4, 23- year-old Jose Juan Ortiz-Pacheco, of Michoacán, Mexico, was sentenced to more than 7 years in federal prison for conspiracy to possess with intent to distribute cocaine by United States District Judge Sam A. Lindsay. Court documents reflect that in March 2017, Ortiz-Pacheco and his two co-defendants were arrested with three kilograms of cocaine at an apartment complex after they offered to sell it to another individual. It was noted at sentencing the defendant is an undocumented alien and should not have been in the United States at the time of the offense. The case was investigated by the Drug Enforcement Administration and the Lewisville Police Department.* An indictment is merely an accusation of criminal conduct, not evidence. All criminal defendants are presumed innocent until proven guilty in a court of law.
Mobile County Man Receives 60 Months After Conviction for Conspiring to Steal FirearmsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Simeon C. Taylor, a 27 year old resident of Citronelle, Alabama was sentenced to 60 months incarceration for conspiring to receive, possess and steal firearms.
On November 29, 2018, Taylor entered a guilty plea pursuant to a plea agreement and admitted in open court that on July 5, 2018, Taylor and a co-conspirator burglarized the home of M. J. in Creola, Alabama. During the burglary they stole four (4) firearms, namely, two Anderson, .30 caliber rifles, model 300 Blackout, an Anderson, .223 caliber rifle; and a Marlin, .22 caliber rifle.
Shortly after the burglary, a Creola police officer attempted to stop a red Nissan truck, registered to the co-conspirator, for speeding. First the driver of the Nissan truck tried to flee by speeding up and attempting to elude the police following behind. Next, the Nissan truck stopped and the three occupants inside jumped out and ran. Two of the occupants were caught and one got away. The three occupants were Taylor, his co-conspirator and unidentified man. The co-conspirator was caught. Taylor got away after Taylor pointed a gun at the officer chasing him. All of the stolen firearms were recovered from the Nissan truck. Additionally, two receipts with Taylor’s name were seized from the Nissan truck.
After waiving his Miranda Rights, the conspirator stated that he and Taylor burglarized the residence and stole the firearms. He also stated that the other man was not involved. He also said that Taylor told him to run from the police. The two officers who attempted to stop the Nissan truck for speeding picked Taylor out of a photo line-up as the person who fled and was not caught at the scene and as the person who pointed a handgun at one of the officers.
Officers of the Creola, Alabama Police Department along with special agents of the FBI investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
McKees Rocks Woman Sentenced for Helping a Felon Get 2 FirearmsRead the Press Release
PITTSBURGH, PA - A resident of McKees Rocks, Pennsylvania, has been sentenced in federal court to three years of probation, including six months of home detention, on her conviction of aiding and abetting the possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
United States District Judge David Cercone imposed the sentence on Talaya Thompkins, 36.
According to information presented to the court, from on or about August 27, 2016, and continuing thereafter to on or about August 7, 2017, Talaya Thompkins unlawfully aided and abetted Vincent Eggleton’s possession of firearms. Thompkins purchased the two firearms in August 2016 and February 2017 and made them available to Eggleton. Thompkins was aware that Eggleton had a prior felony conviction, which prohibits Eggleton from possessing any firearm.
On March 1, 2018, Eggleton pleaded guilty to possession of a firearm and ammunition by a felon, as well as conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and a related drug-trafficking charge. On August 1, 2018, Eggleton was sentenced to a total of 10 years and one month in prison on those charges.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Manhattan U.S. Attorney Announces Charges Against Leaders of “OneCoin,” A Multibillion-Dollar Pyramid Scheme Involving the Sale of A Fraudulent CryptocurrencyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Cyrus R. Vance Jr., the District Attorney for the County of New York, John R. Tafur, the Special Agent in Charge of the Newark Field Office of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), William F. Sweeney Jr., and the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that KONSTANTIN IGNATOV was arrested March 6, 2019, at the Los Angeles International Airport, on a wire fraud conspiracy charge stemming from his role as the leader of an international pyramid scheme that involved the marketing of a fraudulent cryptocurrency called “OneCoin.” An Indictment charging IGNATOV’s sister, RUJA IGNATOVA – a founder and original leader of OneCoin – with wire fraud, securities fraud, and money laundering offenses was unsealed yesterday. As a result of misrepresentations that IGNATOV, IGNATOVA, and others made about OneCoin, victims invested billions of dollars worldwide in the fraudulent cryptocurrency. Following his arrest, IGNATOV appeared in Magistrate Court in the Central District of California, and was detained on the charge contained in the Complaint.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ company based completely on lies and deceit. They promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors were victimized while the defendants got rich. Our Office has a history of successfully targeting, arresting, and convicting financial fraudsters, and this case is no different.”
New York County District Attorney Cyrus R. Vance Jr., said: “As alleged in the indictment, these defendants executed an old-school pyramid scheme on a new-school platform, compromising the integrity of New York’s financial system and defrauding investors out of billions. Our Office urges all crypto investors to scrutinize investment opportunities, recognize the prevalence of fraud in this underregulated space, and proceed with caution. I commend U.S. Attorney Berman and my Office’s Major Economic Crimes Bureau for their globe-spanning investigative work and shared commitment to protecting our markets from sophisticated white-collar fraudsters.”
IRS Special Agent in Charge John R. Tafur said: “This is an old scam with a virtual twist. As alleged in court documents, the cryptocurrency OneCoin was established for the sole purpose of defrauding investors. IGNATOV and IGNATOVA allegedly convinced victims to invest in OneCoin based on complete lies about the virtual currency. IRS Criminal Investigation is committed to investigating cryptocurrency scams in an effort to protect the American public and bring cryptocurrency crooks to justice.”
FBI Assistant Director-in-Charge William Sweeney Jr. said: “As we allege, OneCoin was a cryptocurrency existing only in the minds of its creators and their co-conspirators. Unlike authentic cryptocurrencies, which maintain records of their investors’ transaction history, OneCoin had no real value. It offered investors no method of tracing their money, and it could not be used to purchase anything. In fact, the only ones who stood to benefit from its existence were its founders and co-conspirators. Whether you’re dealing with virtual currency or cold, hard cash, we urge the public to exercise due diligence with any investment.”
According to the allegations contained in the Complaint charging KONSTANTIN IGNATOV and the Indictment charging RUJA IGNATOVA, and in other court papers, and other documents in the public record:[1]
IGNATOV currently serves as the top leader of OneCoin Ltd., a company marketing a purported cryptocurrency named “OneCoin,” which the investigation has revealed is in fact a fraudulent pyramid scheme. OneCoin Ltd. was co-founded in 2014 by IGNATOVA, and is based in Sofia, Bulgaria. IGNATOVA served as OneCoin’s top leader until her disappearance from public view, in October 2017. Starting in late 2017, IGNATOV, who is IGNATOVA’s younger brother, assumed high-level positions at OneCoin, rising to the top leadership position by mid-2018.
OneCoin Ltd. operates as a multi-level marketing network through which members receive commissions for recruiting others to purchase cryptocurrency packages. This multi-level marketing structure appears to have influenced rapid growth of the OneCoin member network. Indeed, OneCoin Ltd. has claimed to have more than 3 million members worldwide, including victims living and/or working within the Southern District of New York. OneCoin continues to operate to this day.
As a result of misrepresentations made by IGNATOV, IGNATOVA, and other OneCoin representatives, victims throughout the world wired investment funds to OneCoin-controlled bank accounts in order to purchase OneCoin packages. Records obtained in the course of the investigation show that, between the fourth quarter of 2014 and the third quarter of 2016 alone, OneCoin Ltd. generated €3.353 billion in sales revenue and earned “profits” of €2.232 billion.
Among a number of other representations, OneCoin Ltd. has claimed that the OneCoin cryptocurrency is “mined” using mining servers maintained and operated by the company, and that the value of OneCoin is based on market supply and demand. The purported value of a OneCoin has steadily grown from €0.50 to approximately €29.95 per coin, as of January 2019. In fact, the value of OneCoin is determined internally and not based on market supply and demand; and OneCoins are not mined using computer resources. Moreover, the investigation has revealed that IGNATOVA and her co-founder conceived of and built the OneCoin business fully intending to use it to defraud investors. For example, in one email between IGNATOVA and her co-founder, IGNATOVA described her thoughts on the “exit strategy” for OneCoin. The first option that IGNATOVA listed was, “Take the money and run and blame someone else for this . . . .”
Additionally, OneCoin Ltd. has claimed to have a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions. The investigation has revealed that OneCoin lacks a true blockchain, that is, a public and verifiable blockchain.[2] Moreover, by approximately March 2015, IGNATOVA and her co-founder had started allocating to OneCoin members coins that did not even exist in OneCoin’s purported private blockchain, referring to those coins as “fake coins.”
As the founder and leader of OneCoin Ltd., IGNATOVA participated in efforts to market OneCoin to U.S. victim-investors. For example, on July 4, 2015, IGNATOVA participated in an online webinar, later posted to YouTube.com, in which IGNATOVA announced the official opening of the United States market for OneCoin.
Since taking over leadership of OneCoin following IGNATOVA’s disappearance from publicly running the company, IGNATOV has himself made false representations to OneCoin members to solicit trader package purchases and investments into the company. For example, IGNATOV has repeatedly represented that an “initial public offering” of OneCoin would occur on various dates in 2018 and 2019, in an effort to generate excitement and solicit additional investments from member victims. However, the purported offering was repeatedly postponed, and no such offering has taken place. Moreover, IGNATOV has been personally involved in manually setting and increasing the purported Euro value of OneCoin, contradicting claims that the value is set by supply and demand. Finally, the investigation has revealed that IGNATOV is aware that OneCoin-derived funds have been routed through a series of purported “investment fund” accounts used to hide the origin of the money, i.e., to launder OneCoin fraud proceeds.
Between February 27, 2019, and March 6, 2019, IGNATOV travelled to the United States to conduct OneCoin-related business, including in Las Vegas, Nevada, where he stayed at a casino resort. While in Las Vegas, IGNATOV met with a number of OneCoin affiliates. During the meeting, one of the first questions posed to IGNATOV was when OneCoin members would be able to monetize, or “cash out,” their OneCoins. IGNATOV reportedly responded, “if you are here to cash out, leave this room now, because you don’t understand what this project is about.”
IGNATOVA, a third defendant, MARK S. SCOTT, and others agreed to launder the proceeds of the OneCoin fraud scheme. Specifically, IGNATOVA, SCOTT, and others agreed with others to conduct transactions involving OneCoin fraud proceeds in order to conceal and disguise the nature, location, source, ownership, and control of the proceeds. SCOTT, a former partner of a major United States law firm, assisted IGNATOVA and others in laundering more than $400 million through a series of purported investment funds holding bank accounts at financial institutions in the Cayman Islands and the Republic of Ireland, among other locations. The indictment charging SCOTT was previously unsealed, and SCOTT was arrested in Barnstable, Massachusetts, on September 5, 2018. SCOTT’s case is currently pending before U.S. District Judge Edgardo Ramos.
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IGNATOVA, 38, of Sofia, Bulgaria, is charged with one count each of wire fraud, conspiracy to commit wire fraud, securities fraud, and conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years sentence, and one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison. IGNATOVA remains at large.
IGNATOV, 33, of Sofia, Bulgaria, is charged by Complaint with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
SCOTT, 50, of Coral Gables, Florida, is charged by Indictment with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman and Mr. Vance praised the outstanding investigative work of IRS-CI and the FBI, which jointly conducted this investigation with the Special Agents from the U.S. Attorney’s Office and analysts from the New York County DA’s Office Major Economic Crimes Bureau.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Securities and Commodities Fraud Task Force. Assistant United States Attorneys Christopher J. DiMase and Nicholas Folly, and Special Assistant United States Attorney Julieta V. Lozano of the New York County District Attorney’s Office, are in charge of the prosecution.
The charges contained in the Indictments and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If you think you may have been a victim in this case or have additional information, please contact the United States Attorney’s Office at 866-874-8900, or by email at [email protected].
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and Indictment constitute only allegations, and every fact described herein should be treated as an allegation.
[2] OneCoin Ltd.’s private blockchain may be contrasted with Bitcoin’s blockchain, which is decentralized and public.
Man Sentenced for Importing and Selling Parts of Endangered SpeciesRead the Press Release
ALEXANDRIA, Va. – An Upperville man was sentenced today to 30 days in prison and one year of supervised release for selling endangered species and other wildlife parts that were illegally imported into the United States.
According to court documents, Keith R. Foster, 60, is a golf course architect who also operated a store in Middleburg known as “the Outpost.” Between 2014 and 2018, Foster imported at least 35 separate shipments of merchandise for resale at the Outpost, some of which contained wildlife and wildlife parts, but he failed to declare any of the wildlife within those shipments to the U.S. Fish and Wildlife Service upon import, as required by law. To conceal the existence of wildlife pieces in the shipments and evade detection by the U.S. Fish and Wildlife Service, he caused many pieces to be labeled in a manner that obscured their true nature. Foster then sold at his store the wildlife pieces that he illegally imported.
During the five-year period in question, Foster sold nearly $400,000 worth of items that constituted or contained parts of endangered species and other wildlife that he illegally imported into the United States. These items included Endangered Species Act items such as sawfish blades, crocodile skin bags, wallets and flasks, and handicrafts made of sea turtle shell.
In a telephone call with a customer in January 2017, Foster admitted that he should not be importing sawfish blades. Foster stated, “Rest assured, I’m gonna bring more in, ‘cause I’m the only fool in the States that probably wants to risk it.”
In December 2018, Foster was ordered to perform 50 hours of community service, forfeit scores of individual pieces of wildlife and wildlife parts, and ordered to forfeit $275,000.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Edward Grace, Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Gordon D. Kromberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-456.
Man Found Guilty for Evasion of Federal Tax PaymentsRead the Press Release
James D. Pieron Jr., a former resident of Mount Pleasant, Michigan, was found guilty on March 7, 2019 of one count of evasion of payment of his federal income taxes for 2008 and 2009, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service - Criminal Investigation.
The seven-day jury trial was conducted by U.S. District Judge Thomas L. Ludington in Bay City, Michigan.
The jury found that from approximately April of 2009 until July 18, 2018, James D. Pieron Jr. willfully evaded payment of income taxes due and owing by him for the calendar years 2008 and 2009.
Pieron, a U.S. citizen, operated a foreign currency exchange business in Zurich, Switzerland before he moved back to Mount Pleasant, Michigan in 2009. Pieron earned capital gains on a stock sale while living in Switzerland. Pieron wired millions of dollars from Swiss bank accounts to business accounts of his corporate interests in Mount Pleasant. Pieron filed his 2008 and 2009 personal income tax returns in 2011, reporting capital gains from his sale of stock but without paying the taxes he owed on those gains. Instead of paying his taxes, Pieron kept his personal money in his business accountants and purchased luxury items such as an $18,900 custom motorcycle, a $38,000 Steinway piano, and a $139,500 Mercedes SUV for his own use. In 2012, Pieron submitted an installment agreement request to the IRS, acknowledging that he owed $444,880 in taxes for 2007, 2008 and 2009, and claiming that he could only afford to pay $1,500 per month to get current on his taxes.
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, “Our tax system is based on voluntary compliance. Mr. Pieron intentionally failed to pay over his fair share.” Muriel continued, “The jury’s verdict demonstrates that there are consequences for those who willfully evade their taxes."
The maximum penalty for tax evasion is 5 years of imprisonment and a fine of twice the gain or loss.
Pieron’s sentencing hearing currently is set for June 20, 2019.
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. The case was prosecuted by attorneys from the Flint and Bay City branch offices of the U.S. Attorney’s Office.
Macomb Mother Indicted for Wire Fraud Related to Fraudulent Adoption SchemeRead the Press Release
On March 7, 2018, a federal grand jury returned an indictment charging Macomb County resident Tara Lynn Lee with eighteen counts of wire fraud, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation.
Lee operated in Michigan under the name Always Hope Pregnancy and Education Center. Neither Lee nor her organization were licensed by the State of Michigan to facilitate adoptions or match birth mothers to adoptive families. Yet from 2014 to 2018, Lee repeatedly paired birth mothers with adoptive parents. Lee represented herself to adoptive parents as a licensed social worker with a legitimate adoption agency.
The indictment sets forth specific allegations of wire fraud. On several occasions, Lee matched more than one set of adoptive parents to a birth mother. Other times, Lee matched adoptive parents with birth mothers that did not exist, were not pregnant, or had not decided to place their child into adoption. Lee accepted payment from prospective adoptive parents for these fraudulent matches. The indictment identifies over $200,000 that Lee received from fraudulent matches in 2018 alone.
“The evidence in this case will show that this is a terrible scam of parents who simply want to make our world better by adopting a child. We are encouraging any victims of this dishonest scheme to come forward and call the FBI hotline at 313-965-2227.”
“The wire fraud allegations against Ms. Lee do not begin to address the devastating emotional impact her cruel behavior has had on expectant mothers, adoptive parents, and families across the United States,” said SAC Slater. “The FBI Detroit Field Office is continuing to identify additional victims and investigate new allegations against Ms. Lee. We encourage anyone with information on Tara Lee or her organizations to contact the FBI’s hotline at 313-965-2227.”
A webpage has been created to provide case related information to those effected by the alleged offenses. Please visit www.justice.gov/usaeo-edmi and click the link titled U.S. v. Tara Lee.
The case is assigned to U.S. District Court Judge Bernard A. Friedman. The case was investigated by the Detroit FBI, and it is being prosecuted by Assistant U.S. Attorney Sara Woodward
Lower Brule Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Alan Thompson, Sr., age 55, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 6, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 29, 2018, Thompson forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while they were engaged in the performance of their official duties, and said conduct did involve physical contact.
The charge is merely an accusation and Thompson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Thompson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Michael Dean Elmshauser, 33, of Lincoln, was sentenced today to seven years (84 months) in federal prison for his involvement in a conspiracy to distribute, and possess with the intent to distribute, 500 grams or more of a mixture or substance containing methamphetamine. Following the prison term, Elmshauser will serve four years on supervised release.
Information provided to law enforcement indicated that Elmshauser was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine in the Lincoln area between January of 2014 and December of 2017. In June of 2017, Elmshauser and his co-defendant, Shannon Gillispie, were stopped by Lincoln Police officers, and Gillispie was found to have a small amount of methamphetamine in her purse. In November of 2017, Elmshauser sold small amounts of methamphetamine to an undercover officer on two occasions.
Gillispie also pleaded guilty to the conspiracy charge and is scheduled for sentencing in May of 2019.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
KC Man Sentenced to 15 Years for Possessing Carfentanil to DistributeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for possessing carfentanil (a synthetic opioid) to distribute, after a teenager who ingested half of one of the pills without knowing what it contained suffered a nearly fatal overdose.
Gage S. Lankas, 21, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole.
On Oct. 30, 2018, Lankas pleaded guilty to possessing carfentanil with the intent to distribute.
The investigation began on Aug. 2, 2017, when Grain Valley, Mo., police officers responded to a 17-year-old male having a drug overdose. He mistakenly thought he had ingested half an oxycodone pill, but it actually contained carfentanil. Carfentanil is a synthetic opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl, which itself is 50 times more potent than heroin. Carfentanil has been linked to a significant number of overdose deaths across the country.
The teenager survived the incident and told officers he had snorted an oxycodone pill and blacked out. At his home, the officers located 375 pills stamped “XANAX” on one side and a sideways “2” on the other. They also found some other pills stamped “A215.” The teenage victim told officers he acquired the pills from Lankas, whom he met in the Westport area of Kansas City, Mo. When he returned home, he took a few of the Xanax pills and snorted one-half of what he thought was an oxycodone pill (stamped “A215”). He immediately blacked out and does not remember anything except waking up and passing out again in the ambulance. He told officers he had snorted oxycodone before and could not understand his reaction.
On Aug. 5, 2017, Kansas City, Mo., police officers responded to a report of a suicidal party. When the officers arrived at the apartment, they were met by a woman who told them she and Lankas, her boyfriend, had been arguing. She told him she wanted to break up and she wanted him to leave their apartment. She told the officers Lankas threatened to kill himself by jumping out the window and picked up a handful of pills and acted as if he was going to take them. She left and called 9-1-1. The officers placed Lankas under arrest.
Officers found a large stack of white pills sitting on the kitchen table in the apartment. There were 1,332 white pills, as well as 67 partial pills, stamped “XANAX” (later determined to contain alprazolam). There were also 3.25 blue pills stamped “A215” (later determined to contain carfentanil), $6,583 inside a safe in the bedroom, and drug paraphernalia. Lankas told officers that he purchased the pills from the dark web. Lankas admitted that he intended to distribute the pills.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Grain Valley, Mo., Police Department.
KC Man Pleads Guilty to Possessing Stolen Firearms Taken in Auto TheftsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to possessing firearms stolen overnight from parked vehicles.
Jerel D. Jones, 26, pleaded guilty before U.S. District Judge Howard F. Sachs to possessing at least seven stolen firearms.
Jones sold most of the stolen firearms to Blue Steel Guns & Ammo in Raytown, Mo. Jones sold two of the stolen firearms to Blue Steel Guns & Ammo on Sept. 22, 2015. One of the firearms was a Glock .40-caliber pistol that had been stolen overnight between Sept. 20 and 21, 2015, from a Chevrolet Tahoe in a parking lot in Olathe, Kan. The vehicle had the rear driver’s side window broken out. Also missing was $47,000 from the vehicle’s console. The second stolen firearm was a General George S. Patton Commemorative .45-caliber revolver that had been stolen overnight between Sept. 18 and 19, 2015. It was one of eight firearms taken from a parked Ford F150 in Olathe.
Jones also sold four more firearms that had been stolen from the Ford 150 to Blue Steel Guns & Ammo on other occasions, including a Remington 7mm rifle, a Ruger 10/22 Carbine .22-caliber rifle, and a Benelli 12-gauge shotgun sold on Sept. 19, 2015; and a Springfield 30-06 caliber rifle sold on Sept. 22, 2015.
On the same night the Glock .40-caliber pistol was stolen from the Chevrolet Tahoe between Sept. 20 and 21, a Ford Fusion was broken into in the same parking lot. The vehicle’s front passenger window had been broken out. Investigators recovered a palm print above the passenger door handle that was a match for Jones.
Jones also admitted that he traded a Glock 9mm pistol to Blue Steel Guns & Ammo for a different Glock (a .40-caliber pistol). In order to complete the trade, Jones had to fill out an ATF form that required him to answer 15 prohibiting questions, including, “Are you under indictment or information in any court for a felony, or any other crime for which the judge could imprison you for more than one year.” Jones answered “NO” to this question, although he had been charged with receiving stolen property and had been to court four times prior to filling out the form. Jones later pawned the Glock .40-caliber pistol at Smart Pawn in Kansas City, Mo., for $300.
Under federal statutes, Jones is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce A. Rhoades. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Johnstown Man Arrested on Heroin and Fentanyl ChargeRead the Press Release
ALBANY, NEW YORK – Victor M. Diaz, age 29, of Johnstown, New York, was arrested yesterday for possessing and intending to distribute a controlled substance.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and City of Amsterdam Police Chief Gregory J. Culick.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
According to the criminal complaint, law enforcement executing a search warrant yesterday found Diaz in possession of approximately 1,500 small bags of heroin and/or fentanyl.
Diaz appeared today before United States Magistrate Judge Christian F. Hummel, who ordered Diaz detained pending further proceedings. If convicted, Diaz faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA and the Amsterdam Police Department, with assistance from the New York State Police and the Gloversville Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
John Galanis Sentenced to 10 Years in Prison for His Participation in A Scheme to Defraud A Native American Tribe and Various InvestorsRead the Press Release
Robert Khuzami, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that JOHN GALANIS was sentenced today by the U.S. District Judge Ronnie Abrams to 10 years in prison for defrauding a Native American tribal entity and various investment advisory clients of tens of millions of dollars in connection with the issuance of bonds by the tribal entity and the subsequent sale of those bonds through fraudulent and deceptive means.
Mr. Khuzami said: “This complex and brazen securities fraud scheme lined the pockets of John Galanis and his co-defendants but left the Native American tribal entity, the Wakpamni Lake Community Corporation, $60 million in debt, and numerous pension funds with bonds they never wanted and could not sell. A jury saw the defendant’s lies for what they were, and John Galanis, a career fraudster, now faces a significant prison term as a result of his crimes.”
According to the allegations contained in the Indictment filed against JOHN GALANIS and statements made in related court filings and proceedings, including the trial of JOHN GALANIS and two co-defendants in May and June of 2018:
From March 2014 through April 2016, JOHN GALANIS, Jason Galanis, Gary Hirst, Bevan Cooney, Michelle Morton, Hugh Dunkerley, and others engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by Hirst, Morton, and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
The WLCC was convinced to issue the Tribal Bonds through false and fraudulent representations by JOHN GALANIS. Simultaneously, Jason Galanis, JOHN GALANIS’s son, with the backing of other co-conspirators, worked to acquire Hughes Capital Management (“Hughes”), a registered investment adviser. Hirst and Morton were installed as Hughes’s chief investment officer and chief executive officer, respectively. Within weeks of taking control of Hughes, Hirst and Morton placed the entire $28 million first series of Tribal Bonds with Hughes clients but failed to disclose material facts about the Tribal Bonds, including that the Tribal Bonds fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients. In addition, Hughes’ clients were not told about substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
JOHN GALANIS and his co-conspirators then misappropriated the proceeds of the first Tribal Bond issuance. Specifically, although the Tribal Bonds were supposed to be invested in an annuity, the proceeds were deposited into an account opened by Hirst and over which both Hirst and Dunkerley had signatory authority. Hirst and Dunkerley, at the direction of Jason Galanis, then transferred significant amounts of the bond proceeds from that account to support the defendants’ business and personal interests. Jason Galanis, for example, used a portion of the proceeds of the first Tribal Bond issuance to finance the purchase of a $10 million luxury apartment in Tribeca. JOHN GALANIS, similarly, secretly received $2.35 million in proceeds of the first bond issuance, which he spent on a variety of personal expenses and luxury items, including cars, jewelry, and hotel expenses.
In addition, JOHN GALANIS induced the WLCC to issue a second round of Tribal Bonds, which were purchased using $20 million of bond proceeds from the first issuance. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase. In addition, millions of dollars in bond proceeds from the bond issuances were used to finance the acquisition of companies that the defendants and their co-conspirators acquired as part of their aspiration to build a financial conglomerate.
In the spring of 2015, JOHN GALANIS induced the WLCC to issue an additional $16 million worth of Tribal Bonds. Simultaneously, Jason Galanis and others purchased a second investment adviser, Atlantic Asset Management (“Atlantic”), and installed Morton as the chief executive officer. Within days of obtaining control of Atlantic, Morton placed the entirety of the $16 million Tribal Bond with an Atlantic client, without the client’s consent and without disclosing the fact that the Tribal Bonds were outside the client’s investment parameters and that numerous conflicts of interest existed. The proceeds of the $16 million issuance were again not invested in an annuity as promised, but instead were diverted to, among other things, finance the defendants’ acquisition of another company in furtherance of their hope to build a financial conglomerate and to make payments to one of the broker dealers in which certain co-conspirators had interests.
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In addition to the prison term, JOHN GALANIS, 75, was sentenced to three years of supervised release. JOHN GALANIS was also ordered to forfeit $2,585,000 and to make restitution in the amount of $43,785,176.
Jason Galanis, who pled guilty to conspiracy to commit securities fraud, securities fraud, and investment adviser fraud, was sentenced to a term of 173 months in prison on August 11, 2017. Gary Hirst, who pled guilty to securities fraud, conspiracy to commit securities fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud, was sentenced to 96 months in prison on September 7, 2018. Michelle Morton, who pled guilty to conspiracy to commit securities fraud and investment adviser fraud, is awaiting sentencing. Bevan Cooney, who was convicted with JOHN GALANIS at trial of conspiracy to commit securities fraud and securities fraud, is scheduled to be sentenced on April 4, 2019. Hugh Dunkerley, who pled guilty to conspiracy to commit securities fraud, two counts of securities fraud, bankruptcy fraud and falsification of records with the intent to obstruct a government investigation, is scheduled to be sentenced on July 19, 2019.
This conviction represents JOHN GALANIS’s fourth conviction in this District for fraud-related offenses. JOHN GALANIS is currently serving a 72-month sentence imposed by the Honorable P. Kevin Castel in February 2017, resulting from GALANIS’s involvement in a scheme to manipulate the stock price of Gerova Financial Group, a publicly traded company listed on the New York Stock Exchange, and to defraud the shareholders of that company. At today’s sentencing, Judge Abrams directed that 48 months of the sentence she imposed today be served consecutive to the sentence in the Gerova matter. Previously, in July 1988, JOHN GALANIS was convicted after trial of offenses related to his involvement in another fraudulent scheme and sentenced to 324 months’ in prison. In February 1973, JOHN GALANIS was convicted of conspiring to make false statements to the Securities and Exchange Commission and committing mail fraud.
Mr. Khuzami praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Brendan F. Quigley, and Negar Tekeei are in charge of the prosecution.