Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 20 December 2018
Former Georgia correctional officer sentenced to federal prison for smuggling drugs into state prisonRead the Press Release
ROME, Ga. – Tiffany Cook, a former Georgia Department of Corrections (GDC) officer, pleaded guilty to being paid by a prison inmate to smuggle methamphetamine and marijuana into Hays State Prison located in Trion, Georgia.
“Correctional officers compromise the safety of our nation’s prisons when they trade their badges for money,” said U.S. Attorney Byung J. “BJay” Pak. “Prisons are supposed to be places where additional criminal activity is impossible, but this notion breaks down when officers participate in the crimes.”
“Cook not only betrayed the institution she was sworn to protect, she also betrayed every hard working corrections officer who upholds their oath every day,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Removing corrupt staff who violate their sworn duties as government employees and jeopardize the safety of fellow officers and inmates remains one of our main priorities.”
“The GDC does not tolerate actions of individuals who choose to bring discredit to the values of our agency and put their fellow Officers at risk,” said Timothy C. Ward, interim commissioner of the Georgia Department of Corrections. “We appreciate the support of our federal partners in ensuring that justice will be served, and we are proud of those Officers involved who were diligent in stopping the introduction of dangerous contraband into one of our facilities.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On May 17, 2010, Cook began working with the GDC as a correctional officer. Beginning in April 2017, Cook served as a correctional officer at Hays State Prison. Hays State Prison is located in Trion, Georgia in Chattooga County. The facility opened in 1990 and currently holds approximately 1,680 male prisoners.
In early July 2018, the GDC received information from an inmate that Cook was being paid to smuggle illegal drugs into the prison. On July 9, 2018, Cook arrived at Hays State Prison to report for her regularly-scheduled shift. As Cook approached the time clock, correctional officers asked Cook to walk into a conference room. Following the request, Cook stated that she felt ill and wanted to leave the prison. Correctional officers detained and ultimately searched Cook.
Pursuant to their search, correctional officers recovered more than 118 grams of actual methamphetamine (with a purity of 90%), and more than 150 grams marijuana from Cook’s vaginal cavity and bra. After seizing the methamphetamine and marijuana, correctional officers placed Cook under arrest.
Tiffany Cook, 34, of Summerville, Georgia, was sentenced by Senior U.S. District Judge Harold L. Murphy to seven years, eight months in prison to be followed by five years supervised release. On October 11, 2018, Cook was charged in a criminal information with one count of possession, with intent to distribute, a controlled substance.
This case was investigated by the FBI and Georgia Department of Corrections.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Controller of Saint Paul Town and Country Club Sentenced to 42 Months of Prison for Embezzlement SchemeRead the Press Release
JULIE ANN LEE, 53, former controller of the Town & Country Club, was sentenced today to 42 months of federal prison for operating a million dollar embezzlement scheme. LEE, who pleaded guilty on April 4, 2018, was sentenced by Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minnesota.
“For more than eight years, Ms. Lee used her position to embezzle more than a million dollars from Town and Country. She took elaborate steps to hide her deception from her employer, her colleagues and the club’s members who entrusted her with the club’s finances, said United States Attorney Erica H. MacDonald. “Today’s sentence highlights the seriousness of financial crimes.”
According to the defendant’s guilty plea and documents filed in court, from 2008 through December 2016, LEE was the controller of the Town & Country Club (“TCC”) in St. Paul, Minnesota. In her role, LEE was responsible for managing TCC’s finances and had authority to sign and issue checks on behalf of TCC as well as signing authority on TCC’s bank accounts, including a line of credit TCC had with Alliance Bank. LEE used her position as controller to devise a scheme to embezzle more than $1 million from TCC over the course of eight years.
As part of her embezzlement scheme, LEE fraudulently issued herself more than 50 checks totaling approximately $163,357 directly from TCC’s bank accounts. LEE also stole approximately $250,000 in cash from TCC, which she deposited into her personal bank account. LEE also made payments on her personal credit cards directly from TCC bank accounts totaling approximately $764,932. LEE spent the funds she embezzled on things unrelated to TCC, including personal travel, home improvements and her mortgage, a 2013 Dodge Charger, a 2015 GMC Sierra K3500 pickup truck, a motorcycle, and a recreational vehicle.
LEE admitted to attempting to conceal her embezzlement scheme and cover the shortage of money in TCC’s bank accounts by taking advances on TCC’s line of credit at Alliance Bank. As a result of LEE’s embezzlement, TCC was left without sufficient funds to make its quarterly payroll tax payments to the IRS. In order to conceal the shortage of funds, LEE filed false quarterly payroll tax returns with the IRS understating TCC’s payroll tax liability. At times, LEE also filed TCC’s quarterly payroll tax returns late and made TCC’s quarterly tax payments late, which resulted in TCC paying more than $300,000 in interest and penalties to the IRS.
United States Attorney Erica H. MacDonald thanked the Criminal Investigation Division of the Internal Revenue Service, the United States Secret Service, and the Saint Paul Police Department for their work on the investigation, and Assistant United States Attorney Joseph H. Thompson for prosecuting the case.
Defendant Information:
JULIE ANN LEE, 53
Farmington, MN
Convicted:
- Wire fraud, 1 count
- Filing a false tax return, 1 count
Sentenced:
- 42 months imprisonment
- 3 years supervised release
- $1,178,189 in restitution
- $200 special assessment
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Boston Police Officer Sentenced in Connection with Straw Purchases of FirearmsRead the Press Release
BOSTON – A former Boston Police Officer was sentenced today in federal court in Boston with illegally purchasing two firearms on behalf of acquaintances.
Adarbaad Karani, 38, of West Roxbury, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three months in prison and one year of supervised release. In September 2018, Karani was convicted following a five-day jury trial of two counts of making a false statement during the purchase of firearms and two counts of making a false statement in a record.
On two different occasions, in November 2014 and September 2015, Karani acted as the “straw purchaser” of two firearms, a Glock, model 27, .40 caliber pistol and a Glock, model 30S, .45 caliber pistol, which he purchased for two acquaintances. Karani purchased the firearms, which cannot be acquired by civilians, using his police identification and falsely certified that the firearms were for his official police use. During one purchase, Karani also indicated that the firearm was not for resale. One of the firearms that Karani purchased was subsequently stolen from the person on whose behalf Karani bought the gun. The firearm was recovered by law enforcement during the arrest of Desmond Crawford, an alleged member of the Columbia Point Dawgs.
Straw purchases interfere with firearm regulation and recordkeeping, and federal law prohibits making false statements to a firearms dealer in connection with the sale of a firearm.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.
Former Bank President Sentenced to Federal Prison for Bank Fraud and Tax EvasionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced David Harris Lavine, age 58, of Rockville, Maryland, today to three years in federal prison, followed by two years of supervised release, for bank fraud in connection with a scheme to defraud the financial institution, where he served as acting president and later president of a bank affiliate, and for income tax evasion. Lavine was also ordered to pay $892,541.75 in restitution to the financial institution and $365,228.80 in restitution to the Internal Revenue Service and to forfeit $503,378.87.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Kelly Jackson of the Internal Revenue Service-Criminal Investigation; Assistant Inspector General Gerald Maye of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Finance Protection Bureau; and Special Agent in Charge Michael McGill of the Social Security Administration, Office of Inspector General.
From March 2010 until January 2011, David Harris Lavine was the acting president of CFG Community Bank. According to his plea agreement, Lavine admitted that, while acting President, he diverted $100,000 of bank funds to his own benefit. Lavine directed bank employees to wire funds, which Lavine mischaracterized as payments to a mortgage broker on bank loan refinances, to a company that belonged to a friend of Lavine’s. Lavine lied to the friend about the source of the funds and had the friend pay the $100,000 over to Lavine.
In January 2011, shortly after Lavine resigned as the acting president of CFG Comminuty Bank to become president of Capital Financial Ventures (CFV), an affiliate of the bank, Lavine devised a scheme to defraud CFG Community Bank, through the re-finance of two bank-owned commercial mortgage loans and the diversion of the Bank’s loan payoffs to his personal benefit and the benefit of Charles Tobias, his co-defendant in this case.
Lavine admitted that in order to execute the scheme to divert loan payoffs, he used his position at CFV to pose as the CEO/President of CFG Community Bank. For example, Lavine invited the borrowers of two loans with balances totaling over $7.5 million, to refinance those loans with other financial institutions for lower mortgages and pay off CFG Community Bank. At Lavine's direction, the settlement companies sent the mortgage loan payoffs not to CFG Community Bank but to an escrow account managed by Tobias so that Lavine could divert over $775,000. The records created by Lavine showed one payoff amount to the borrower, but the records Lavine sent to the bank understated the payoff amounts and concealed the fact that Lavine had diverted over $775,000 from the Bank’s loan payoffs. Lavine divided the fraud proceeds with Tobias.
Lavine also diverted a total of $91,126.56 in insurance premium refunds on one of the commercial loans purchased by the bank to his personal account instead of paying the funds over to the borrower. Lavine spent over $14,000 of the refunded premium; over $76,000 remained in the custody of the bank. The bank repaid the full $91,125.56 to the borrower.
Lavine and Tobias owned Capital T Partners Brookfield, LLC, a Maryland limited liability corporation. In the fall of 2011, Lavine and Tobias attempted to realize a profit from a group of non-performing mortgages their company had purchased by "donating" some of the mortgages to a charity as an in-kind donation and taking a charitable deduction on their income tax returns. Lavine admitted that he and Tobias created a false IRS Form 8283 and false appraisal which they had Ari Gerzowski, a real estate agent and not a licensed appraiser, sign. As a result of the fraudulent appraisal, Tobias and Lavine received a valuable tax deduction for Capital T Partners Brookfield which would pass through to their personal income tax returns. Lavine and Tobias divided the tax benefits from the $1,032,722 purported charitable deduction they were claiming.
Lavine also admitted that he failed to report income of more than $176,000 in 2010, and failed to report income of $480,289.44, from the loan fraud proceeds and two stolen insurance refunds in 2011. Lavine underpaid his taxes for 2010, 2011, and 2012 by $365,228.80 based on his failure to report fraud proceeds as income and his fraudulent charitable contribution deduction which sheltered reported income.
Charles L. Tobias, age 56, of Potomac, Maryland previously pleaded guilty to willfully subscribing to a false tax return, and was sentenced to two years of probation with 8 months of home confinement with electronic monitoring and ordered to pay restitution of $154,438 to the Internal Revenue Service. Ari Gerzowski, age 47, of Baltimore, pleaded guilty to aiding and abetting the willful submission of a materially false document to the Internal Revenue Service and was sentenced to probation.
United States Attorney Robert K. Hur commended the IRS, the FBI, the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, and the Office of Inspector General for the Social Security Administration for their work in the investigation. Mr. Hur thanked Assistant United States Attorneys Joyce K. McDonald and Peter J. Martinez, who prosecuted the case.
# # #
Florida man sentenced to 8 years in prison for trafficking cocaine in Calcasieu ParishRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Florida man was sentenced Monday to 96 months in prison for trafficking nearly 10 kilograms of cocaine.
Kavin Grandison, 46, of Pensacola, Florida, was sentenced by U.S. District Judge Donald E. Walter on one count of possession with intent to distribute a controlled substance. He was also sentenced to four years of supervised release. According to the October 3, 2018 guilty plea, a law enforcement officer conducted a traffic stop on Grandison’s vehicle on February 22, 2018 in Calcasieu Parish. After a search of the vehicle, the officer discovered sealed plastic bags in the gas tank, which contained powder cocaine. The substance was tested, weighed and found to be 4.972 kilograms of cocaine. During an earlier arrest, officers had stopped Grandison’s vehicle on November 8, 2017 in Jackson County, Mississippi, and conducted a search of his vehicle. They found six sealed packages in a detergent box that later tested to be 4.384 kilograms of cocaine. Grandison was found with a total of 9.356 kilograms of cocaine confiscated from both vehicle stops.
Homeland Security Investigations and the Calcasieu Anti-Drug Team conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Florence Resident Sentenced to Federal Prison for Manufacturing and Passing Counterfeit MoneyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Joshua Ryan Nance, 28, of Florence, South Carolina, was sentenced to over three years in federal prison for his role in a conspiracy to manufacture and pass counterfeit money.
Evidence presented to the court showed that Nance was involved in a conspiracy to manufacture and pass counterfeit $100 and $50 bills in multiple states, including South Carolina and North Carolina. This conspiracy, which began in 2015, included at least nine co-conspirators who were responsible for making and passing over $100,000 in counterfeit money.
Nance and other conspirators manufactured counterfeit money at several residences in Florence, South Carolina. They produced counterfeit $100 bills on genuine currency paper, then visited various local businesses, where they would purchase small items or services with the counterfeit $100 bills in order to obtain genuine currency as change.
United States District Judge R. Bryan Harwell sentenced Nance to 46 months in federal prison, to be followed by three years of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the United States Secret Service with the assistance of the Florence County Sheriff’s Office and the Florence Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
Federal Jury Convicts Two Defendants of Narcotics Conspiracy Tied to the El Chapo Mexican Drug CartelRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that following an eight week trial, a federal jury has convicted Herman E. Aguirre, a/k/a 007, a/k/a Lucky, a/k/a Primo, a/k/a Freddy, of Brea, California, and Troy R. Gillon, of Lockport, NY, of narcotics conspiracy. Defendant Aguirre was also convicted of operating a continuing criminal enterprise and money laundering conspiracy. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who handled the prosecution of the case, stated that Aguirre was the leader, and Gillon a member, of a transnational drug trafficking organization that utilized contacts and a source of supply whose territory included Mexico, Arizona, California, and elsewhere. The source of supply was the Sinaloa Cartel, led by Joaquín “El Chapo” Guzmán and Ismael “El Mayo” Zambada.
The local organization trafficked thousands of kilograms of illegal narcotics, including heroin, fentanyl, and cocaine throughout the United States, including Lockport, Niagara Falls, and Buffalo, via the mail, individual vehicles outfitted with “trap” compartments, and on pallets loaded on tractor trailers. Members of the organization created fictitious “front” companies to launder drug proceeds including Triton Foods, Inc., Kamora Investment Enterprises, Inc. and Fresh Choice Produce, all of which were incorporated in the State of California. Another fictitious company, Corral Seafoods, LLC, registered in the State of New York, was allegedly located in Cheektowaga, NY, but proved to be completely fake.
Using these companies, the defendants disguised kilogram quantities of heroin, fentanyl, and cocaine on pallets described on inventory and other documents as containing “Sea Cucumbers.” Evidence presented by the Government at trial showed that sea cucumbers are commonly found in Southeast Asia and Europe but rarely, if ever, in Western New York State. The pallets bearing the illegal narcotics were secreted in containers sealed with foam or spray insulation to avoid detection by law enforcement.
Members of the organization also utilized numerous bank accounts at local Bank of America branches to deposit illegal drug proceeds. Local members of the drug trafficking organization deposited over $19,000,000 of illegal drug proceeds into these fake seafood accounts, while California conspirators created false invoices to make it look like Western New Yorkers were buying sea cucumbers at astounding rates and quantities. The Western New York Asset Protection Manager of Wegman’s Food Markets, Inc. testified at the trial that none of its 13 Western New York stores have ever carried sea cucumbers because there is no demand for the product in Buffalo and the surrounding areas.
During the course of the investigation, law enforcement officers seized over $5,000,000 worth of illegal narcotics, including:
• 52.5 kilograms of cocaine;
• 17.5 kilograms of heroin; and
• 8.5 kilograms of fentanyl
Using standard dosage amounts, the seized drugs potentially represented over 1,500,000 “hits” of cocaine, and 2,700,000 “hits” of heroin and considering that two milligrams of fentanyl can be a lethal dose, enough fentanyl potentially to kill over four million people. Further evidence presented by the Government at trial revealed that after a December 2014 meeting in Buffalo, defendant Aguirre shipped 10 kilograms of fentanyl to Buffalo and defendant Gillon took possession of the 10 kilograms. Gillon sold two kilograms of the fentanyl before residents of the Lockport area started overdosing on the drug shortly after New Year’s Day, 2015. A DEA representative testified that Gillon told police that he returned the remaining eight kilograms to a co-conspirator in early March 2015 because, “People are dying off this (expletive).” The co-conspirator moved the remaining fentanyl, along with two kilograms of cocaine, and 22 kilograms of heroin, to a house on Folger Street in the City of Buffalo. On March 23, 2015, Buffalo Police seized 32 kilograms of drugs from the Folger Street location—including Gillon’s eight kilograms of fentanyl.
The investigation further determined that between June 2013 and September 2015, members of the organization additionally distributed over 5,000 pounds of cocaine, heroin, fentanyl and marijuana in the Western New York area. Approximately $20,000,000 was sent from Western New York banks to California in a two year period of time.
“This transnational drug organization and these defendants were responsible for introducing the scourge of lethal fentanyl into our community, resulting in the loss of lives,” stated U.S. Attorney Kennedy. “However, as a result of this verdict and previous convictions of multiple co-defendants, the organization and the pipeline have been effectively shut down.”
“Throughout this trial, it clearly demonstrates to the public that traffickers are reaping millions of dollars off overdoses, addiction and death,” stated DEA Special Agent in Charge Ray Donovan. “DEA’s seizures and enforcement efforts in Buffalo denied the Sinaloa Cartel revenue of $2.5 million but more importantly, put 17 members in jail and took nearly three million doses of heroin, fentanyl and cocaine off the streets. I commend our law enforcement partners and the prosecutors at the U.S. Attorney’s Office Western District of New York for their diligent efforts in this investigation.”
“IRS Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in illegal activities as seen in the significant drug organization on trial in this case,” said James D. Robnett, IRS Special Agent-in-Charge of the New York Field Office. “Money laundering constitutes a serious threat to our communities and to the integrity of our financial system; today’s verdict is an example of how merging the unique skills of each agency makes a formidable team as we prosecute the offenders.”
Aguirre and Gillon were indicted along with 15 others including:
• Jose Ruben Gil, a/k/a Unc, a/k/a Ruben Gil Campos, a/k/a Mayor of Mexico, was convicted and is awaiting sentencing;
• Sonia Hernandez, was convicted and is awaiting sentencing;
• Margaret Banuelos, a/k/a Lisa, was convicted and is awaiting sentencing;
• Darryl J. Williams, a/k/a D, was convicted and is awaiting sentencing;
• Trent Adair Hamilton, was convicted and is awaiting sentencing;
• Michael Paul Mitchell, was convicted and is awaiting sentencing;
• Demetrius Yarborough, a/k/a Tu, was convicted and is awaiting sentencing;
• Rashawn Crule, a/k/a Black, a/k/a Shawn, was convicted and is awaiting sentencing;
• Maulana Lucas, a/k/a Big Daddy, a/k/a Shabazz, was convicted and is awaiting sentencing;
• Shirley Grigsby, was convicted and is awaiting sentencing;
• Ralik Hamilton; was convicted and is awaiting sentencing;
• Dion Cheatham, was convicted and is awaiting sentencing; and
• Joseph Thompson, a/k/a Jo-Jo, a/k/a Skools, a/k/a Skoolboy, convicted and sentenced.
Charges are pending against defendants Martha Aguirre and Juan Alfaro. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The trial verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special-Agent-in Charge Kevin Kelly; the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; the Montebello, California Police Department, the Nebraska State Patrol, and the DEA, Los Angeles.
Defendant Aguirre is scheduled to be sentenced on June 12, 2019, Gillon on June 14, 2019, both before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case.
# # # #
Federal Grand Jury Indicts Businessman on Tax Evasion ChargesRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a businessman on tax evasion charges for allegedly scheming to evade personal income taxes for three years.
As the owner of the security firm World Security Bureau, ABRAHAM KISWANI, also known as “Ibriham Kiswani,” willfully failed to pay the full amount of taxes on his personal income for the calendar years 2010, 2012, and 2013, according to an indictment returned in U.S. District Court in Chicago. Kiswani concealed some of his income for those years by arranging for WSB to pay certain personal items, including those held or purchased in the name of family members, and disguising them as business expenses. The expenditures included mortgage payments, homeowner’s association dues, property taxes, sewer and water fees on a personal residence, slip fees and insurance for a boat, slip fees for jet skis, and gold coins, the indictment states. Kiswani covered up some of his 2013 income by arranging for WSB to pay some of his wedding expenses and then entering those payments in WSB’s records as business expenses, the indictment states.
The indictment charges Kiswani, 49, of Burbank, with three counts of tax evasion and one count of willfully filing a false corporate tax return. Kiswani pleaded not guilty at his arraignment Tuesday before U.S. District Judge Manish S. Shah in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the U.S. Department of Housing and Urban Development, and the Chicago Housing Authority Office of the Inspector General. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each tax evasion count carries a maximum sentence of five years in prison, while filing a false return is punishable by up to three years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Family Members Sentenced for Roles in Arson and Insurance Fraud SchemeRead the Press Release
BLUEFIELD, W.Va. – Georgetta Lester Kenny and Greg Lester, two members of a Southern West Virginia family, were sentenced to prison by Senior United States District Judge David A. Faber, announced United States Attorney Mike Stuart. After a five day trial earlier this year, a federal jury found them guilty of various charges related to an arson and insurance fraud scheme. Georgetta Lester Kenney, formerly known as Georgetta Lester, age 42, was sentenced to 36 months in prison and was ordered to pay $578,147 in restitution and forfeit $184,623. Greg Lester, age 41, was sentenced to 60 months in prison and was also ordered to pay restitution in the amount of $578,147 and forfeit $11,965. Agents with the West Virginia Insurance Commission, the United States Postal Inspection Service, and the West Virginia State Police conducted the investigation.
“Arson and insurance fraud are serious crimes that impact all of us, particularly through increased insurance premiums,” said United States Attorney Mike Stuart. “The ordering of restitution and forfeiture in cases like this one is every bit as important as the prison sentences imposed. Criminals should not be able to keep profits obtained through their fraudulent schemes.”
Between April of 2012 and January of 2016, the defendants, along with Windel Lester, James “Punkin” Lester, and others, participated in various ways in three separate but inter-related schemes involving arson, mail fraud, wire fraud, and money laundering. Their overall purpose was to enrich themselves by fraudulently obtaining insurance proceeds on houses they intentionally burned. The houses were insured for amounts greatly exceeding their value and the value of any contents. The houses were located at Matoaka in Mercer County, Huntington in Cabell County, and Ikes Fork in Wyoming County.
Windel Lester was found guilty of 17 felony charges and faces 340 years imprisonment. James “Punkin” Lester was found guilty of 23 felony charges and faces 475 years imprisonment. They are scheduled to be sentenced on January 20, 2019.
Others involved included Dudley Bledsoe, Ricky Gleason, and James Browning, all of whom pled guilty and have been sentenced.
Assistant United States Attorneys Philip H. Wright and R. Gregory McVey handled the prosecution.
Follow us on Twitter: SDWVNews
###
Falmouth Man Sentenced to 360 Months for Conspiring to Distribute MethamphetamineRead the Press Release
COVINGTON, Ky. – Gregory Sydnor, 30, of Falmouth, Kentucky, was sentenced today to 360 months in federal prison, by United States District Judge David L. Bunning, for conspiring to distribute methamphetamine. Sydnor was also sentenced to 10 years of supervised release, to be served after completion of his prison term.
Sydnor was convicted of leading a conspiracy that was responsible for distributing more than 1.5 kilograms of crystal methamphetamine, in 2017. Crystal methamphetamine is an extremely pure form of methamphetamine commonly brought to this area from Mexico and communities along the southwest border of the United States. Court documents established that Sydnor regularly distributed methamphetamine to other traffickers and sold methamphetamine to minors. Sydnor, and other members of the conspiracy, also possessed firearms while selling the drugs. Agents seized ten firearms and a large amount of ammunition during the course of the investigation. Sydnor had five prior felony convictions.
Sydnor was indicted in November 2017 along with other members of his conspiracy. All entered guilty pleas. William Todd Ramsey was sentenced to 120 months in federal prison and Sterling T. Cole was sentenced to 157 months in prison, in November 2018. Nathaniel Hughes was sentenced to 37 months in prison in September 2018. Under federal law, each Defendant must serve at least 85 percent of their prison sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; Richard Sanders, Commissioner of the Kentucky State Police; and Charles Peoples, Pendleton County Sheriff, jointly made the announcement. The investigation was conducted by the DEA, the Kentucky State Police, and the Pendleton County Sheriff’s Department. The United States was represented by Assistant United States Attorney Tony Bracke.
FBI Arrests Former Washington Resident who Fraudulently Promoted IPO Stock SchemeRead the Press Release
A 27-year-old man was arrested in Los Angeles today on a criminal complaint charging him with wire fraud, announced U.S. Attorney Annette L. Hayes. KEENAN A. GRACEY, formerly of Newcastle, Washington, defrauded Seattle-area investors and others out of millions of dollars by pretending to sell them stock that GRACEY did not own and had no right to sell. GRACEY will make his initial appearance in U.S. District Court in Los Angeles.
According to the criminal complaint, between 2016 and 2018, GRACEY posed as a British billionaire with degrees from the London School of Economics and Oxford University. He drove expensive cars such as Bentleys and Ferraris and claimed to own expensive homes in Clyde Hill, Mercer Island, and Newcastle, Washington, as well as in Beverly Hills and San Diego, California. GRACEY also used falsified bank statements to make it appear he had hundreds of millions of dollars of cash on hand. The investigation revealed that GRACEY is Canadian, not British, and rented expensive homes and cars to make it appear he was wealthy.
GRACEY told potential investors he had special access to millions of shares of “pre IPO” stock that would produce returns of as much as 60 times the initial investment. Some investors gave GRACEY as much as $745,000, believing that they were purchasing stock. In fact, GRACEY did not own any of the stock he was pretending to sell, and simply stole the victims’ money. According to the complaint, investigators have identified more than 25 investors who transferred over $3.4 million to Gracey through bank wires.
The Securities and Exchange Commission filed a civil suit against GRACEY in May 2018 and obtained a temporary restraining order barring him from selling securities. In September 2018, the order was made permanent and GRACEY was ordered to disgorge $4.4 million in cash and wire transfers that he had fraudulently obtained from investors.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Wire fraud is punishable by up to 20 years in prison.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
El Dorado Man Sentenced to 24 Months in Federal Prison for Bank FraudRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Robert Craig “Bob” Smith, age 55, of El Dorado, Arkansas, was sentenced today to 24 months in federal prison followed by five years of supervised release and ordered to pay $850,399.79 in restitution on two counts of Bank Fraud. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, with respect to the first count, Smith was the owner and operator of Working Chemical Solutions, Inc. (WCS), a Delaware corporation located in El Dorado, Arkansas. Working Chemical Solutions, Inc. manufactured chemical products used in three areas of market concentration Consumer Packaged Specialty Products, Industrial Specialty Products and Scientific Specialty Products. One of its products was known as "C'mere Deer" also known as "Wild Game Attractant." Smith obtained two loans and extensions to those loans for his company, WCS, through Timberland Bank in El Dorado, Arkansas. Timberland Bank secured these loans with a security interest in all stock and other instruments, general intangibles and contract rights, including, “C’mere Deer. Smith subsequently sold the “C’mere Deer” formula, confidential information and trademarks to Environmental Science Technologies, LLC for $500,000 in December 2006. Smith paid Timberland Bank $149,035.21 out of the $500,000.00 and kept $350,964.79 for the use of WCS or his personal use.
With respect to the second count, Smith opened business checking accounts in the names of ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC at First Guaranty Bank in Dubach, Louisiana. He also opened business checking accounts in the names of Gilbo, LLC and RCS Investment Trust at First Financial Bank in El Dorado, Arkansas. In March of 2016, during an audit by First Financial Bank’s Internal Audit Department, it appeared that Smith was kiting checks between his Gilbo, LLC and RCS Investment Trust accounts at First Financial Bank and checks drawn on the ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC accounts at First Guaranty Bank. On March 7, 2016, First Financial Bank placed holds on all unverified deposits. As a result of the holds, the checks presented for payment from First Guaranty Bank to First Financial Bank were returned and the checks deposited to First Financial Bank were returned from First Guaranty Bank. Between March 9, 2016 and March 10 2016, checks totaling $499,435 were charged back to ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC accounts at First Guaranty Bank.
Smith was named in a six count indictment and plead guilty to counts three and six in September 2018.
This case was investigated by Federal Bureau of Investigation. Assistant United States Attorney Mark Webb prosecuted the case for the United States.
Deported Alien with Felony Drug Conviction Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH, PA - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on Dec. 18, named Vicente Perez-Vargas, 40, of Mexico, as the sole defendant.
According to the Indictment presented to the court, Perez-Vargas, an illegal alien who had been previously deported from the United States on October 19, 1999, after having been convicted of an aggravated felony for illicit trafficking in a controlled substance, was found to be present in Pittsburgh, Pennsylvania on November 21, 2018, without first receiving permission to reenter the United States.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement/Homeland Security Investigations, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendants in Louisville Area Chiropractic Scheme Sentenced to Federal PrisonRead the Press Release
LOUISVILLE, Ky. – U.S. District Judge Rebecca G. Jennings has sentenced defendants of a health care fraud scheme that billed insurance companies for services never performed to years in federal prison, announced United States Attorney Russell M. Coleman.
“This sentence sends a message that theft in the Western District of Kentucky – health care related or otherwise – results in real time in federal prison,” stated U.S. Attorney Russell Coleman
On Wednesday, the Court sentenced Ledinson Chavez to 74 months in prison for health care fraud, money laundering, and aggravated identity theft. The sentence is followed by 2 years supervised release, and $1,016,393.23 in restitution. There is no parole in the federal system.
Sergio Betancourt was sentenced on Wednesday to 37 months imprisonment for health care fraud, money laundering and crimes committed while on pre-trial release. The sentence will be followed by 2 years supervised release, and $1,153,770.34 in restitution.
According to the evidence before the Court, beginning no later than on or about June 12, 2012, and continuing through on or about November 1, 2014, Claudia Lopez, Ledinson Chavez, Oskel Lezcano, Ariel Borrego-Hernandez, Sergio Betancourt and Yuriesky Diaz Rodriguez recruited unsuspecting chiropractors for employment in Louisville area chiropractic clinics in order to obtain and use the chiropractors’ names and National Provider Identifiers (NPI) to fraudulently bill insurance companies. Each chiropractor provided his/her NPI number to Lopez and Lezcano in order to credential the clinics with various insurance companies.
Thereafter, the group of defendants recruited employees from Jeffboat and other local employers to seek chiropractic services from the clinics. However, unbeknownst to the chiropractors, the clinics billed approximately $5,000,000 for methocarbamol injections (a muscle relaxant), using the patients’ names, dates of birth, insurance/policy numbers, addresses, and patient IDs/Social Security Numbers for injections. Most of the patients from Jeffboat were paid to go to the clinics by the defendants and were told the injections were being billed, according to testimony during trial.
Borrego-Hernandez, Lopez, Betancourt, Chavez and allegedly Lezcano operated and controlled multiple chiropractic clinics in the Louisville area including: Xpress Diagnostics Center, Inc.; Prudential Chiropractic Medical Center, PLLC; Klondike Chiropractic Medical Center, LLC; Be Well Chiropractic Center, Corp.; and Chiropractic and Medical Center, LLC, even though the clinics were placed in various chiropractors’ names.
According to additional court documents on or about March 14, 2017, and March 17, 2017, while on pre-trial release, Borrego and Lopez conspired to traffic in marijuana – which caused about 109 pounds of marijuana to be transported from Colorado to Kentucky.
Lopez was sentenced in September to 61 months imprisonment, followed by 3 years of supervised release and ordered to pay $232,617.96 in restitution, as well as forfeit an Audi Q-7 and $53,775 in proceeds.
Ariel Borrego-Hernandez was sentenced in October to 54 months in prison, followed by 3 years supervised release and ordered Borrego-Hernandez to pay $89,161.81 in restitution, and over $53,000 in forfeited cash.
Yuriesky Diaz Rodriguez was sentenced in December to 18 months of probation and ordered to pay $104,624.70 in restitution.
Assistant United States Attorneys Joseph Ansari, Lettricea Jefferson-Webb and Christopher Tieke prosecuted the case and were assisted by Bob Masterson as health care fraud investigator and Mary Kennedy as paralegal. The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the Louisville Metro Police Department, and the National Insurance Crime Bureau.
####
Defendant Charged in White Plains Federal Court with Felon in Possession of A FirearmRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the filing of a complaint charging DARRELL JONES with possessing a firearm subsequent to having been convicted of a felony. JONES was taken into federal custody today, presented before United States Magistrate Judge Lisa M. Smith, and ordered detained.
As alleged in the Complaint unsealed today in White Plains federal court[1]:
Officers with the U.S. Drug Enforcement Administration (“DEA”) and Mount Vernon Police Department (“MVPD”), executed a search warrant of an apartment believed to be JONES’s on November 26, 2018, where they found, among other things, mail addressed to JONES, a 9 millimeter CANIK TP9SF handgun with the slide separated from the receiver, and approximately 300 grams of a white substance believed to be heroin. An agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) has confirmed that the CANIK handgun was manufactured outside New York. JONES has nine prior state felony convictions, including seven felony convictions for possession, attempted possession, or sale of controlled substances.
* * *
Based on the charges in the current complaint, JONES faces a maximum of 10 years in prison, with the possibility of a mandatory minimum of 15 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA Westchester Residential Office, the Mount Vernon Police Department, and the ATF.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Samuel L. Raymond is in charge of the prosecution.
The charge contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Daycare Owner Sentenced for Stealing Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Tariq Butt, 42, of Buffalo, NY, who was convicted of theft of government funds, was sentenced to serve 12 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay restitution totaling $305,000 to the Department of Health and Human Services.
Assistant U.S. Attorney Maura K. O’Donnell, who handled the case, stated that in February 2015, the defendant and his wife, Halima Mohammed, opened Twinkle Stars Day Care Center, and in July 2015, the couple opened Candyland Daycare, both located in the City of Buffalo.Between January 2016 and September 2016, the defendant submitted hundreds of false and fraudulent claims to Erie County seeking reimbursement for daycare services supposedly provided by Twinkle Stars and Candyland to children eligible for Child Care and Development Block Grant funds from the U.S. Department of Health and Human Services. The defendant knew that the children listed on the claims did not actually attend Twinkle Stars on the dates and times claimed, making the daycare ineligible for reimbursement. In total, between January 2016 and September 2016, Erie County paid Twinkle Stars and Candyland approximately $305,000 for daycare services, which were never rendered.
Halima Mohamed was previously convicted and sentenced to five months in prison and three years supervised release, to include five months home detention.
Today’s plea is the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
# # # #
Criminal Charges Filed in Los Angeles and Alaska in Conjunction with Seizures of 15 Websites Offering DDoS-For-Hire ServicesRead the Press Release
The Justice Department announced today the seizure of 15 internet domains associated with DDoS-for-hire services, as well as criminal charges against three defendants who facilitated the computer attack platforms.
The sites, which offered what are often called “booter” or “stresser” services, allowed paying users to launch powerful distributed denial-of-service, or DDoS, attacks that flood targeted computers with information and prevent them from being able to access the internet. Booter services such as those named in this action allegedly cause attacks on a wide array of victims in the United States and abroad, including financial institutions, universities, internet service providers, government systems, and various gaming platforms.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, U.S. Attorney Bryan Schroder of the District of Alaska, and Assistant Director Matthew Gorham of the FBI Cyber Division made the announcement. The action against the DDoS services comes the week before the Christmas holiday, a period historically plagued by prolific DDoS attacks in the gaming world.
On Dec. 19, pursuant to seizure warrants issued by the U.S. District Court for the Central District of California, the FBI seized the domains of 15 booter services, which represent some of the world’s leading DDoS-for-hire services. Among these sites were critical-boot.com, ragebooter.com, downthem.org and quantumstress.net.
According to the affidavit in support of the warrant authorizing the seizure of the 15 websites, these services offered easy access to attack infrastructure, payment options that included Bitcoin, and were relatively low cost. Each of the services was tested by the FBI, which verified those DDoS attack services offered through each of the seized websites. While testing the various services, the FBI determined that these types of services can and have caused disruptions of networks at all levels.
In conjunction with the seizure warrants, the U.S. Attorney’s Office for the Central District of California on Dec. 19 charged Matthew Gatrel, 30, of St. Charles, Illinois, and Juan Martinez, 25, of Pasadena, California, with conspiring to violate the Computer Fraud and Abuse Act through the operation of services known as Downthem and Ampnode. According to the criminal complaint filed in Los Angeles, Downthem offered DDoS services directly to users who wished to attack other internet users, and Ampnode offered resources designed to facilitate the creation of standalone DDoS services by customers. Between October 2014 and November 2018, Downthem’s database showed over 2000 customer subscriptions, and had been used to conduct, or attempt to conduct, over 200,000 DDoS attacks.
On Dec. 12, the U.S. Attorney’s Office for the District of Alaska charged David Bukoski, 23, of Hanover Township, Pennsylvania, with aiding and abetting computer intrusions. The charging documents allege that Bukoski operated Quantum Stresser, one of the longest-running DDoS services in operation. As of Nov. 29, Quantum had over 80,000 customer subscriptions dating back to its launch in 2012. In 2018 alone, Quantum was used to launch over 50,000 actual or attempted DDoS attacks targeting victims worldwide, including victims in Alaska and California.
“DDoS attacks are serious crimes that can cause real harm, as shown by the wide range of sectors allegedly victimized in this case,” said Assistant Attorney General Benczkowski. “The operators and the customers of DDoS-for-hire services should be on notice that the Department of Justice will aggressively prosecute those who perpetrate malicious cyber attacks.”
“DDoS for hire services such as these pose a significant national threat,” said U.S. Attorney Schroder. “Coordinated investigations and prosecutions such as these demonstrate the importance of cross-District collaboration and coordination with public sector partners.”
“The attack-for-hire websites targeted in this investigation offered customers the ability to disrupt computer networks on a massive scale, undermining the internet infrastructure on which we all rely,” said U.S. Attorney Hanna. “While this week’s crackdown will have a significant impact on this burgeoning criminal industry, there are other sites offering these services – and we will continue our efforts to rid the internet of these websites. We are committed to seeing the internet remain a forum for the free and unfettered exchange of information.”
“Whether you launch the DDoS attack or hire a DDoS service to do it for you, the FBI considers it criminal activity,” said FBI Assistant Director Gorham. “Working with our industry and law enforcement partners, the FBI will identify and potentially prosecute you for this activity. We will use every tool at our disposal to combat all forms of cybercrime including DDoS activity. We encourage all DDoS victims to contact your local FBI field office or file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.”
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. These types of DDoS attacks are so named because they result in the “booting” or dropping of the victim-targeted website from the internet. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cyber criminal activity, representing an effective advance in internet attack technology.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The charges in the indictment and criminal complaint are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases announced today are being investigated by the FBI’s Anchorage Field Office and the FBI’s Cyber Initiative and Resource Fusion Unit (CIRFU). Additional assistance was provided by the FBI’s Chicago, Los Angeles, Memphis, and Philadelphia Field Offices and the Scranton, Pennsylvania Resident Agency; the Major Cyber Crimes Unit, Global Operations and Targeting Unit, and Money Laundering Intelligence Unit of FBI Headquarters; Defense Criminal Investigative Service; and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Tennessee and the Northern District of Illinois. The United Kingdom’s National Crime Agency, the Dutch National Police – National High Tech Crime Unit, and the National Cyber-Forensics & Training Alliance made invaluable contributions. Akamai, Bell Aliant, Cloudflare, Entertainment Software Association, Flashpoint, Google, Oath Inc., Oracle, Palo Alto Networks Unit 42, PayPal, Riot Games, ShadowDragon, SpyCloud, University of Cambridge and other valued private sector partners provided additional assistance.
Criminal Charges Filed in Los Angeles and Alaska in Conjunction with Seizures of 15 Websites Offering DDoS-For-Hire ServicesRead the Press Release
LOS ANGELES – The Justice Department today announced the seizure of 15 internet domains associated with DDoS-for-hire services, as well as criminal charges against three defendants who facilitated the computer attack platforms.
The sites, which offered what are often called “booter” or “stresser” services, allowed paying users to launch powerful distributed denial-of-service, or DDoS, attacks that flood targeted computers with information and prevent them from being able to access the internet. Booter services such as those named in this action allegedly cause attacks on a wide array of victims in the United States and abroad, including financial institutions, universities, internet service providers, government systems, and various gaming platforms.
The action against the DDoS services comes the week before the Christmas holiday, a period historically plagued by prolific DDoS attacks in the gaming world.
Pursuant to seizure warrants issued by a federal judge in Los Angeles, the FBI on Wednesday seized the domains of 15 booter services, which represent some of the world’s leading DDoS-for-hire services. Among these sites were critical-boot.com, ragebooter.com, downthem.org, and quantumstress.net.
According to the affidavit in support of the warrant authorizing the seizure of the 15 websites, these services offered easy access to attack infrastructure, payment options that included Bitcoin, and were relatively low cost. Each of the services was tested by the FBI, which verified those DDoS attack services offered through each of the seized websites. While testing the various services, the FBI determined that these types of services can and have caused disruptions of networks at all levels.
In conjunction with the seizure warrants, federal prosecutors in Los Angeles on Wednesday filed a criminal complaint that charges Matthew Gatrel, 30, of St. Charles, Illinois, and Juan Martinez, 25, of Pasadena, California, with conspiring to violate the Computer Fraud and Abuse Act through the operation of services known as Downthem and Ampnode. According to affidavit in support of the criminal complaint, Downthem offered DDoS services directly to users who wished to attack other internet users, and Ampnode offered resources designed to facilitate the creation of standalone DDoS services by customers. Between October 2014 and November 2018, Downthem’s database showed over 2000 customer subscriptions, and had been used to conduct, or attempt to conduct, over 200,000 DDoS attacks.
“The attack-for-hire websites targeted in this investigation offered customers the ability to disrupt computer networks on a massive scale, undermining the internet infrastructure on which we all rely,” said United States Attorney Nick Hanna. “While this week’s crackdown will have a significant impact on this burgeoning criminal industry, there are other sites offering these services – and we will continue our efforts to rid the internet of these websites. We are committed to seeing the internet remain a forum for the free and unfettered exchange of information.”
In a case related to Ampnode, the United States Attorney’s Office for the District of Alaska last week charged David Bukoski, 23, of Hanover Township, Pennsylvania, with aiding and abetting computer intrusions. The charging documents allege that Bukoski operated Quantum Stresser, one of the longest-running DDoS services in operation. As of late last month, Quantum had over 80,000 customer subscriptions dating back to its launch in 2012. In 2018 alone, Quantum was used to launch over 50,000 actual or attempted DDoS attacks targeting victims worldwide, including victims in Alaska and California.
“DDoS for hire services such as these pose a significant national threat,” said Bryan Schroder, the United States Attorney for the District of Alaska. “Coordinated investigations and prosecutions such as these demonstrate the importance of cross-District collaboration and coordination with public sector partners.”
“DDoS attacks are serious crimes that can cause real harm, as shown by the wide range of sectors allegedly victimized in this case,” said Assistant Attorney General Bryan A. Benczkowski, of the Justice Department’s Criminal Division. “The operators and the customers of DDoS-for-hire services should be on notice that the Department of Justice will aggressively prosecute those who perpetrate malicious cyber attacks.”
“Whether you launch the DDoS attack or hire a DDoS service to do it for you, the FBI considers it criminal activity,” said FBI Assistant Director Matthew Gorham. “Working with our industry and law enforcement partners, the FBI will identify and potentially prosecute you for this activity. We will use every tool at our disposal to combat all forms of cybercrime including DDoS activity. We encourage all DDoS victims to contact your local FBI field office or file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.”
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. These types of DDoS attacks are so named because they result in the “booting” or dropping of the victim-targeted website from the internet. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cyber criminal activity, representing an effective advance in internet attack technology.
The charges in the indictment and criminal complaint are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The criminal case against Gatrel and Martinez is being prosecuted by Assistant United States Attorney Cameron Schroeder of the Cyber and Intellectual Property Crimes Section in Los Angeles.
Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section is handling the seizure of the domains.
The case against Bukoski is being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division. CCIPS and the two Districts are also coordinating cryptocurrency seizures.
The cases announced today are being investigated by the FBI’s Anchorage Field Office and the FBI’s Cyber Initiative and Resource Fusion Unit (CIRFU). Additional assistance was provided by the FBI’s Chicago, Los Angeles, Memphis, and Philadelphia Field Offices and the Scranton, Pennsylvania Resident Agency; the Major Cyber Crimes Unit, Global Operations and Targeting Unit, and Money Laundering Intelligence Unit of FBI Headquarters; Defense Criminal Investigative Service; and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Tennessee, and the Northern District of Illinois. The United Kingdom’s National Crime Agency, the Dutch National Police – National High Tech Crime Unit, and the National Cyber-Forensics & Training Alliance made invaluable contributions. Akamai, Bell Aliant, Cloudflare, Entertainment Software Association, Flashpoint, Google, Oath, Inc., Oracle, Palo Alto Networks Unit 42, PayPal, Riot Games, ShadowDragon, SpyCloud, University of Cambridge, and other valued private sector partners provided additional assistance.
Criminal Charges Filed in Alaska in Conjunction with the Seizure of Websites Offering DDoS-For-Hire ServicesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today the seizure of an internet domain associated with DDoS-for-hire services, as well as criminal charges against a Pennsylvania man who facilitated the computer attack platform. This case was brought as part of an FBI investigation that led to the seizure of 15 websites, resulting in criminal charges filed from the U.S. Attorney’s Offices for the District of Alaska and the Central District of California.
The sites, which offered what are often called “booter” or “stresser” services, allowed paying users to launch powerful distributed denial-of-service, or DDoS, attacks that flood targeted computers with information and prevent them from being able to access the internet. Booter services such as named in this action allegedly cause attacks on a wide array of victims in the United States and abroad, including financial institutions, universities, internet service providers, government systems, and various gaming platforms. The action against the DDoS services comes the week before the Christmas holiday, a period historically plagued by prolific DDoS attacks in the gaming world.
The U.S. Attorney’s Office for the District of Alaska charged David Bukoski, 23, of Hanover Township, Pennsylvania, with aiding and abetting computer intrusions. The charging documents allege that Bukoski operated Quantum Stresser, one of the longest-running DDoS services in operation. As of Nov. 29, Quantum had over 80,000 customer subscriptions dating back to its launch in 2012. In 2018 alone, Quantum was used to launch over 50,000 actual or attempted DDoS attacks targeting victims worldwide, including victims in Alaska and California. On Dec. 19, pursuant to seizure warrants issued by the U.S. District Court for the Central District of California, the FBI seized the domains of 15 booter services, one of them being quantumstress.net, the service operated by Bukoski.
“The internet has become the nerve system of modern life, including modern business and government operations,” said U.S. Attorney Schroder. “Against that backdrop, it is essential for law enforcement officers and prosecutors to act swiftly and decisively when criminals attack any part of that system, especially the end users.”
“FBI Anchorage’s Cyber squad worked closely with the FBI’s Los Angeles, Chicago, and Philadelphia Field Offices to address the severe threat posed by DDoS-for-hire in advance of the holiday season,” said Jeffery Peterson, the Special Agent in Charge of FBI’s Anchorage Field Office. “The FBI could not have conducted this successful investigative effort without the cooperation of our international law enforcement and private industry partners. Criminal enterprises and individual actors routinely use DDoS to disrupt networks and damage internet-based services, often resulting in substantial financial losses to companies and individuals. The FBI will continue to aggressively pursue all crimes in cyberspace and strengthen America's cybersecurity.”
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. These types of DDoS attacks are so named because they result in the “booting” or dropping of the victim-targeted website from the internet. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cyber criminal activity, representing an effective advance in internet attack technology. For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The case against Bukoski is being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section (CCIPS) of the Criminal Division.
The case announced today is being investigated by the FBI’s Anchorage Field Office and the FBI’s Cyber Initiative and Resource Fusion Unit (CIRFU). Additional assistance was provided by the FBI’s Chicago, Los Angeles, Memphis, and Philadelphia Field Offices and the Scranton, Pennsylvania Resident Agency; the Major Cyber Crimes Unit, Global Operations and Targeting Unit, and Money Laundering Intelligence Unit of FBI Headquarters; Defense Criminal Investigative Service; and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Tennessee and the Northern District of Illinois. The United Kingdom’s National Crime Agency, the Dutch National Police – National High Tech Crime Unit, and the National Cyber-Forensics & Training Alliance made invaluable contributions. Akamai, Bell Aliant, Cloudflare, Entertainment Software Association, Flashpoint, Google, Oath Inc., Oracle, Palo Alto Networks Unit 42, PayPal, Riot Games, ShadowDragon, SpyCloud, University of Cambridge and other valued private sector partners provided additional assistance.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbus Man Pleads Guilty to Creating Child Pornography by Sexually Abusing 10-Year-Old GirlRead the Press Release
COLUMBUS, Ohio – Eric A. Zevely, 34, of Columbus, pleaded guilty in U.S. District Court to producing child pornography.
Zevely was one of six Central Ohio men charged recently who made online contact with each other and others who shared, or whom they believed to share, their sexual interest in minors, incest and child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Westerville Police Chief Joseph Morbitzer, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Franklin County Sheriff Dallas Baldwin, Ohio Attorney General Mike DeWine and other members of the Franklin County Internet Crimes Against Children (ICAC) task force announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Zevely was indicted by a federal grand jury in August 2018.
According to court documents, Zevely engaged in thousands of communications with numerous other individuals in response to ads placed on Craigslist.
Zevely made contact with undercover officers from two separate task forces in response to online advertisements looking for like-minded individuals interested in “incest taboo young” sexual conduct.
A search of Zevely’s phone revealed explicit photographs of his sexual abuse of a 10-year-old female.
Producing child pornography is a federal crime punishable by a range of 15 to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the federal and local crimes against children task forces, as well as Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the case.
# # #
Cohoes Man Sentenced to 35 Years for Producing and Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – George Muzio, Jr., age 37, of Cohoes, New York, was sentenced today to 420 months in prison for the online sexual exploitation of children, and for the possession and distribution of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
United States District Judge Mae A. D’Agostino also sentenced Muzio to a lifetime term of supervised release, to begin following his term of imprisonment. Muzio will also be required to register as a sex offender upon his release from prison
Muzio pled guilty on July 9, 2018, to two counts of sexual exploitation of a child, six counts of distribution of child pornography, and one count of possession of child pornography.
In connection with his guilty plea, Muzio admitted that between August 2014 and May 2016, he communicated with 13 underage girls using his cell phone and the Kik Messenger application. The minors lived throughout North America and ranged in age from 11 to 17 years old, with most being between 13 and 14 years old at the time Muzio engaged them in text-message exchanges via Kik. The communications, which Muzio frequently steered towards sexual performances by the children, generally spanned thousands of messages sent and received over several months.
Muzio further admitted that he posed as a teenage boy, and repeatedly requested and received sexually explicit photographs from the underage girls he targeted. He texted detailed instructions to two victims about how he wanted them to pose in the sexually explicit photographs that they took and sent to him at his request. One of those victims, a resident of Montana with whom Muzio exchanged over 2,000 text messages over a period of 8 months, was 11 years old at the time. The second, a resident of Georgia with whom Muzio exchanged over 4,700 text messages over a period of 4 months, was 13 years old.
In addition, Muzio admitted that on 6 occasions between March 2015 and January 2016, he distributed child pornography videos from his Cohoes home through an Internet file-sharing program. He also admitted that on May 3, 2016, he possessed a laptop computer that contained approximately 400 child pornography videos depicting the sexual abuse of children as young as 10 years old.
In sentencing Muzio today, Judge D’Agostino told him: “What I find barbaric in this case is what [you] did to innocent children. Children are supposed to be able to lead their lives without being subjected to this kind of evil. Children are the people in society that we are supposed to protect above all others. The barbarism for me is what was done to these children and the way it was done.”
This case was investigated by HSI, with assistance from the Colonie Police Department and the Cohoes Police Department, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Cleveland postal employee and the man she lived with indicted for conspiracy in which she stole at least 1,500 gift cards from the mail worth at least $47,000Read the Press Release
A U.S. Postal Service employee who worked at the main mail processing center in Cleveland and the man she lived with were indicted for their roles in a conspiracy in which she stole at least 1,500 gift cards from the mail worth at least $47,000.
Jennifer Riccardi, 46, and Joseph Dennis, 37, both of Cleveland, were indicted on charges including conspiracy to commit theft of mail and possession of stolen mail, conspiracy to commit access device fraud, possession of stolen mail and access device fraud. Riccardi was also charged with theft of mail by a postal employee.
U.S. Attorney Justin Herdman said: “This defendant is accused of stealing more than a thousand gift cards worth tens thousands of dollars, including birthday presents or other gifts people entrusted to the postal service for delivery to their family and loved ones. Those who steal mail will be held accountable for their actions, just like any other criminal.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth F. Cleevely, Eastern Area Field Office, stated: “The vast majority of the 500,000 postal employees nationwide are hard-working, trust worthy individuals. However, when one of those employees choose to violate that trust and steal from the mail for personal gain, special agents with the USPS OIG will vigorously investigate and pursue federal prosecution when appropriate. When postal employees choose to steal from the mail, they risk their career, benefits, retirement, and possibly their freedom. To report theft of mail, or other postal employee crimes, contact special agents at www.uspsoig.gov or 888-USPS-OIG.”
In one night alone, Riccardi stole more than 100 apparent greeting cards. Among the stolen mail that was opened was a card from a mother to her daughter signed “Love you! Mom” and a card from an uncle and aunt wishing a “Happy 1st Birthday.”
According to the indictment:
Riccardi worked at the USPS Processing and Distribution Center at 2400 Orange Avenue in Cleveland. She stole cards, letters and other pieces of mail she believed contained gift cards, focusing primarily on brightly covered envelopes that appeared to contain greeting cards.
Riccardi concealed the mail she took from the mail stream in bags, her lunch box and other means. She transported the stolen mail to the residence she shared with Dennis during her mid-shift break or at the end of her shift.
Dennis and Riccardi sold at least 41 stolen gift cards and used stolen gift cards for purchases from Amazon, Kohl’s, Starbucks and other locations.
On December 11, 2017, Dennis and Riccardi possessed at their residence at least 108 pieces of stolen mail, $42,000 in cash, an automatic currency counter and 1,505 stolen gifts cards from approximately 230 merchants or vendors. Of those, 1,322 of the gift cards bore face values, which totaled approximately $47,000.
The conspiracy took place between December 2016 and December 11, 2017.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases were investigated by the U.S. Postal Service – Office of Inspector General, with assistance from the U.S. Postal Inspection Service and the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorneys Elliot Morrison and James Lewis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland employee indicted for extortion and accepting bribes after he accepted below-market improvements on his property from a contractor seeking city business and directed city projects to benefit himself, his outside businesses and his clientsRead the Press Release
A City of Cleveland employee was indicted for extortion, accepting bribes and other crimes after he accepted below-market improvements on his property from a contractor seeking city business and directed city projects to benefit himself, his outside businesses, and his clients.
Khalil Ewais, 43, of Cleveland, was indicted on charges including Hobbs Act extortion, receipt of a bribe, federal program theft, making false statements and filing false tax returns.
His brother Abdeljawad Ewais, 45, of Cleveland, was charged with filing false tax returns.
According to a 14-count indictment unsealed in federal court:
Ewais worked in the Mayor’s Office of Capital Projects as the section chief of construction in the division of engineering and construction. He oversaw construction inspectors who inspect work on the city’s roads, bridges and sidewalks. He had a fiduciary duty to act in the best interests of the city and its citizens.
Ewais also owned and operated Pioneer Engineering, a private engineering and consulting business that did work for private clients. He also, along with Abedeljawad Ewais and other family members, owned commercial and residential rental properties in and around Cleveland.
Company 1 bid on jobs with the City of Cleveland. In April 2015, it was awarded a contract to perform most of the resurfacing of residential streets in certain wards of Cleveland for two years. Company 1 bid approximately $5.8 million for the work.
Khalil Ewais, in his job with the city, had input into whether Company 1 received additional contracts from the city. Company 1 could not receive payment for the work it did until Ewais certified it was done appropriately. He could also direct Company 1 to complete “corrective work” which would cost the company additional time and money. He could also use his official position to help Company 1 obtain faster payment for its services.
Ewais in August 2016 contacted multiple companies, including Company 1, about paving the parking lot adjacent to Captain’s Grill, a property at 6104 Storer Ave. that he and his brother owned. Quotes for the work ranged from $48,923 to $59,152.
Ewais contacted an owner of Company 1 on August 10, 2016, about the estimate for the parking lot and said “I need it to be in the $25K range.” The owner quickly responded, “I will do the job for a lump sum of $26,000.”
Company 1 was busy performing larger jobs for the city at the time, and so hired subcontractors to complete the work at Ewais’s parking lot.
While doing the work, the subcontractor learned the connection between the parking lot and the sewer was damaged and would need to be replaced. Ewais used his position to categorize that work as repair work for the city.
Ewais also used his official position to cause the city to pay to repave most of the short public alleyway next to the parking lot, West 62nd Place. Around Oct. 25, 2016, Company 1— at the direction of Ewais — instructed a subcontractor to expand the scope of its work on the parking lot job to include milling and paving the part of West 62nd Place that adjoined the parking lot, but not the short additional distance to reach the home at the end of the alleyway.
The work was completed on Nov. 5, 2016, with the parking lot connected to West 62nd Place. Company 1 spent approximately $81,534 to complete the work. Ewais paid $31,336 for the work and Company 1 did not request any further payment.
In designating the portion West 62nd Place adjoining his property to be repaved, Ewais avoided the established process for selecting streets to be resurfaced. The city, through a contractor, had sought to rate the condition of all the streets in Cleveland leading up to the 2016 resurfacing program. The city’s pavement management group, which included Ewais, met to discuss the lowest-rated streets in each ward to recommend to the City Council members which streets to include as part of the resurfacing program. The list of streets to be resurfaced never included West 62nd Place, which never even received a rating in the evaluation process.
Ewais, on his own accord, created a task order for resurfacing West 62nd Place around October 2016. It had an estimated cost of $9,363.70, to be paid to Company 1 under its contract with the city. He also created a task order for Americans with Disabilities Act-compliant ramps at the corners of West 62nd Place and Storer Avenue, at an estimated cost of $5,898, to be paid to another contractor. Ewais on Oct. 28, 2016, sent Company 1 a copy of the resurfacing task order to indicate Company 1 should repave West 62nd Street under its city contract.
Also in 2016, Ewais had a private client through Pioneer Engineering. Ewais used his position with the city to change the Lorain Avenue Rehabilitation plans to create a parking pull-off lane sought by his client. The cost to the city was approximately $10,000.
In 2017, Ewais agreed to help another client get additional street parking off Melbourne Avenue. This would require moving a utility pole, which the client would be billed for if the move were part of a private project. But the utility company would pay the cost of moving the pole if it were part of a public City of Cleveland project.
In order to ensure his private client would not be billed for moving the pole, Ewais contacted the utility company from his City of Cleveland email address. He used his official position and title and made false and misleading statements that were intended to, and did, mislead representatives of the utility to believe that moving the pole to create a parking pull-off was a public project.
Ewais sent an email from his city email address to an employee of the public utility and others on June 13, 2017. The email subject was: “Pole Place[d] Incorrectly in the Public R/W [Right of Way]. The email stated: “The City has been working with the Developer at the above address for over a year to renovate this building and bring in some new tenants. There is a plan to implement a pull off lane off Melbourne Avenue to accommodate some parking requirements.” It also stated the utility had “placed a pole in the middle of the proposed parking area” and that “[t]his pole will need to be relocated so as not to hamper this improvement.”
Both Khalil and Abdeljawad Ewais also filed numerous false tax returns in which they failed to report rental income.
U.S. Attorney Justin Herdman said: “Public service is a privilege, not a license to get preferential treatment and discounted improvements. This defendant used his job at City Hall to benefit himself and put his personal interests ahead of the people of Cleveland he was supposed to be serving.”
“Our tax-paying citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt government employees who want to financially benefit themselves,” FBI Acting Special Agent in Charge Robert E. Hughes said. “The FBI will continue to work with our law enforcement partners and the United States Attorney's Office to ensure those who violate the public trust are held accountable.”
“Today’s indictment serves as a reminder that no matter the source of income, taxpayers, and especially government employees have an obligation to the American public to pay their fair share of income taxes,” said Ryan Korner, Special Agent in Charge, IRS-Criminal Investigation’s Cincinnati Field Office. “Bringing to justice those who abscond from their tax liabilities has been and will continue to be a top priority.”
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms,” said Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development – Office of Inspector General. “It is our continuing core mission to work with our federal law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.”
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the U.S. Department of Housing and Urban Development – Office of Inspector General and the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorneys Chelsea S. Rice and Elliot Morrison.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
City of Fort Lauderdale Department of Parks and Recreation Employee Pleads GuiltyRead the Press Release
Two individuals, including a City of Fort Lauderdale Parks and Recreation Department employee, pled guilty yesterday before U.S. District Judge Beth Bloom in Miami.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rick Maglione, Chief, Fort Lauderdale Police Department (FLPD) made the announcement.
Phillip Richard Peterson, 42, of Coral Springs, Florida, pled guilty to six counts of an indictment, charging him with theft from a program receiving federal funds and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 666, 1343 and 1349 (18-CR-60278). Each theft count of conviction covers a single year, beginning in 2013 and running through 2017. Peterson faces a maximum statutory sentence of ten years in prison, for each theft count. In addition, he faces a fine of up to $250,000.
Co-defendant Gino Joseph Ferraro, age 49, of Fort Lauderdale, Florida, also pled guilty to one count of conspiracy to commit wire fraud. Both defendants face a maximum statutory sentence of twenty years in prison and a potential fine of up to $250,000, for the conspiracy conviction.
According to the court docket, including an agreed upon factual proffer, Peterson had been issued a credit card by the City of Fort Lauderdale in connection with his employment to allow him to make job related purchases, on behalf of the Department of Parks and Recreation. Peterson purchased items using his City of Fort Lauderdale credit card, and then sold the items to a local pawn store. Each year, between 2013 and 2017, Peterson sold more than $5,000 worth of merchandise in this manner.
The court docket also indicates that Peterson and Ferraro unjustly enriched themselves by charging the City of Fort Lauderdale Parks and Recreation Department for volleyball court repairs and other items that were not completed or provided. Ferraro admitted that Peterson had paid him using his City issued credit card, and he would give Peterson approximately half of the amount that had been charged.
The defendants are scheduled to be sentenced by Judge Bloom on March 1, 2019.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and FLPD in this matter. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Chinese Citizens Sentenced in Scheme to Sell Mislabeled Dietary SupplementsRead the Press Release
Zhang Xiao Dong (aka “Mark Zhang”), of Shanghai, China, was sentenced in Dallas today to 24 months’ imprisonment and two years of supervised release in connection with a scheme to sell mislabeled dietary supplements, the Department of Justice announced.
Zhang was the Sales Manager for Genabolix USA, Inc. and Shanghai Yongyi Biotechnology Co., Ltd., Chinese firms that sell raw ingredients for use in dietary supplements. Zhang pleaded guilty in April 2018 in the Northern District of Texas to one count of mail fraud. Zhang’s co-defendant, Gao Mei Fang (a.k.a. Amy Gao), the Supply Chain Manager for Genabolix, was sentenced on July 17, 2018, to 12 months and a day of imprisonment after pleading guilty in April 2018.
In pleading guilty, Zhang and Gao admitted that they agreed to help sell synthetic stimulant ingredients to a purported dietary supplement manufacturer in the United States. According to an indictment returned in October 2017, Zhang, Gao, and another co-defendant agreed with a confidential government informant to either mislabel the synthetic ingredients or to otherwise help hide the true nature of a proposed dietary supplement from retailers. Zhang and Gao admitted that they knew major American dietary supplement retailers would refuse to carry supplements known to contain certain stimulants, such as DMAA. Gao also admitted to making false statements to FDA’s import division regarding a shipment of synthetic stimulants entering the United States.
“Americans must be able to trust that the products they consume are safe,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “This case shows that we will continue to prosecute those who attempt to import dangerous ingredients into the United States.”
Zhang and Gao were sentenced by U.S. District Court Judge Lindsay of the Northern District of Texas. Gao and Zhang both were arrested in September 2017 while attending a dietary supplement trade show in Las Vegas. A third defendant named in the case, Hu Chang Chun, is not believed to be in the United States.
“Consumers deserve to know exactly what they’re ingesting,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas. “We will not allow this sort of subterfuge to go unchecked in north Texas.”
“American consumers are put at risk when the true nature of ingredients for dietary supplements is hidden,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize the public health.”
The case was investigated by FDA’s Office of Criminal Investigations. The case was prosecuted by David Sullivan and Patrick R. Runkle, Trial Attorneys in the Department of Justice’s Consumer Protection Branch, and Kate Rumsey and Douglas Brasher, Assistant United States Attorneys for the Northern District of Texas.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Child Predator Sentenced to 300 Months for Enticement and Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn. - On December 20, 2018, Justin Kyle Phelps, 27, of Philadelphia, Tennessee, was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge, to serve 300 months in federal prison for enticing and attempting to entice minors for sex and using a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Following his release from prison, Phelps will be supervised by the U.S. Probation Office for 10 years and be required to register with the sex offender registry in any state in which he resides, works, or attends school.
In March 2017, Phelps was arrested when he travelled to Knoxville for the purpose of meeting a minor female for sex. The investigation revealed that he had victimized several minors between the ages of 12 and 15 years, including having sex with some of them and obtaining pornographic photographs of other minors taken at his direction. In July 2018, Phelps pleaded guilty to knowingly enticing and attempting to entice minors through social media for illegal sexual activity.
“Online predators are constantly looking for children to sexually abuse. This prosecution represents part of our efforts to work with law enforcement agencies to protect children from persons who seek to manipulate kids, from the shadows of the internet, for illegal sex and child pornography,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
This investigation was conducted by the Knoxville Police Department’s Internet Crimes Against Children Unit and the U.S. Department of Homeland Security - Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.projectsafechildhood.gov.
###
Chicago-Area Man Sentenced to 10 Years and 10 Months for Traveling to Coldwater and Robbing Cell Phone StoreRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. District Judge Gordon J. Quist sentenced Tramain Hill to 130 months in federal prison for committing an interstate cell phone store robbery with three other people. Hill was also ordered to repay $42,129.44 in restitution and serve 3 years under court supervision following release from prison.
On August 27, 2016, Hill and three associates met up in Kankakee, Illinois to prepare to rob a cell phone store. The crew had recently stolen a Mitsubishi Eclipse in Chicago, and they planned to use it as a getaway vehicle. On August 27, they loaded into the Eclipse and another car.
At approximately 6:50 PM, two of the crew entered a Universal Wireless store at 849 E. Chicago Street in Coldwater, Michigan. After entering, one robber pulled a gun, pointed it at the three employees and one customer present, and herded everyone to a back room. Once in the back room, the other robber bound everyone’s wrists and ankles with zip ties, stole the property of the employees and customer, and proceeded to steal approximately $40,000 in cell phones from the store. The robbers stashed their proceeds in a black trash bag and exited through the back door of the store. The robbers then traveled back to central Illinois, where they sold the cell phones to a fence.
To date, three of the four robbers have been prosecuted federally. Two of them are pending sentencing in the Central District of Illinois.
The Coldwater Police Department and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Davin M. Reust prosecuted it.
END
Charleston Man Sentenced for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. -- A Charleston man was sentenced for a federal drug crime, announced United States Attorney Mike Stuart. Fabian Woodson, 36, was sentenced to 51 months in prison for possessing with intent to distribute heroin on January 4, 2016.
“Fentanyl laced heroin and an arsenal of firearms,” said United States Attorney Mike Stuart. “With Woodson off the streets, the Kanawha Valley is a safer place.”
On September 2, 2015, members of the Metro Drug Unit initiated a traffic stop on a vehicle in which Woodson was a passenger in South Charleston, West Virginia. When the vehicle stopped, Woodson exited the vehicle and attempted to flee from the officers on foot. The officers apprehended him and recovered approximately 20 grams of heroin from the vehicle that Woodson admitted he possessed while in the vehicle. Woodson also admitted that he sold a confidential informant working for the Metro Drug Unit .8 grams of heroin in exchange for $150 on both December 14 and December 17, 2015.
On January 4, 2016, detectives with the Metro Drug Unit executed a search warrant on a home in Elkview where Woodson was residing and found suspected heroin, that Woodson admitted he intended to sell, suspected crack, and marijuana. They also found a loaded Ruger .380 caliber handgun, a loaded Colt .25 caliber handgun, a loaded Glock .26 caliber handgun, a loaded .22 caliber Beretta, and $7,613 in United States Currency, which included $150 of buy money from a previous controlled drug buy conducted by members of the Metro Drug Unit. The drugs seized from Woodson on January 4, 2016, were submitted to the West Virginia State Police Lab for testing, and confirmed to be heroin containing fentanyl weighing 27.58 grams, 3.268 grams of cocaine base, and 398 grams of marijuana.
United States District Court Judge John T. Copenhaver Jr. imposed the sentence.
The Metro Drug Unit was in charge of the investigation. Monica D. Coleman is handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Charleston Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty to a federal firearms charge, said United States Attorney Mike Stuart. Michael D. Williams, 49, pled guilty to being a felon in possession of a firearm. Williams was on supervised release for a prior federal conviction for conspiracy to commit arson. The investigation was conducted by the Charleston Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Defendants like Williams increase the recidivism rate,” said United States Attorney Mike Stuart. “And these are the types of crimes, committed by violent, repeat offenders that are the focus of our Project Safe Neighborhoods initiative.”
On October 13, 2018, Williams got in an altercation at the Transit Mall in downtown Charleston and pulled a firearm on an individual. An officer from the Charleston Police Department witnessed the altercation and arrested Williams.
Williams faces up to 10 years in prison on the felon in possession charge and an additional 24 months in prison for the supervised released violation when he is sentenced on March 14, 2019.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney Steve Loew is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
California Man Sentenced to Nearly 4 Years in Federal Prison for Scheme to Smuggle Rifle Scopes and Tactical Equipment to SyriaRead the Press Release
Rasheed Al Jijakli, 57, a Syrian-born naturalized U.S. citizen who resides in Walnut, California, was sentenced today to 46 months in prison for his role in a scheme to smuggle rifle scopes and other tactical gear to Syria in violation of the International Emergency Economic Powers Act and sanctions imposed on Syria by the United States.
The announcement was made by Assistant Attorney General for National Security John C. Demers and U.S. Attorney Nicola T. Hanna for the Central District of California. The sentence was issued by U.S. District Judge James V. Selna.
During today’s sentencing hearing, Judge Selna agreed with prosecutors that the goods Jijakli took to Syria were “instruments of death.”
Jijakli pleaded guilty to the felony offense on Aug. 13 and admitted he conspired with others to export tactical gear from the United States to Syria. That tactical gear included U.S.-origin laser boresighters, and day- and night-vision rifle scopes.
From June through July of 2012, Jijakli and a co-conspirator purchased the tactical gear. On July 17, 2012, Jijakli traveled with the tactical gear from Los Angeles to Istanbul with the intent that it would be provided to Syrian rebels training in Turkey and fighting in Syria.
Jijakli provided some of the tactical gear, specifically the laser boresighters, to a second co-conspirator, who Jijakli learned was a member of the militant group Ahrar Al-Sham. Jijakli also provided the goods to other armed Syrian insurgent groups in Syria and Turkey.
Jijakli and his co-conspirators knowingly provided at least 43 laser boresighters, 85 day rifle scopes, 30 night-vision rifle scopes, tactical flashlights, a digital monocular, five radios, and one bulletproof vest to Ahrar Al-Sham and other Syrian rebels in Syria, or with knowledge that the tactical gear was going to Syria.
Additionally, in August and September 2012, Jijakli directed co-conspirators to withdraw thousands of dollars from Palmyra Corporation, where Jijakli was the chief executive officer, to pay for tactical gear that would be provided to Syrian rebels. In his plea agreement, Jijakli specifically admitted directing that $17,000 from Palmyra be used to purchase tactical gear intended for Syrian rebels.
The case against Jijakli was the result of an investigation conducted by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of Commerce’s Office of Export Enforcement, and IRS Criminal Investigation.
The case against Jijakli was prosecuted by Assistant U.S. Attorney Mark Takla of the Central District of California’s Terrorism and Export Crimes Section, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Bozeman man sentenced in meth caseRead the Press Release
BILLINGS—A Bozeman man accused of trafficking methamphetamine he brought from Denver to Montana was sentenced on Wednesday to three years in federal prison and five years of supervised release, U.S. Attorney Kurt G. Alme said.
Michael Arnold Delack, 49, pleaded guilty earlier to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided at sentencing.
During an investigation in 2017 and early 2018, law enforcement made controlled meth buys from Delack using confidential informants and undercover agents. In August 2017, law enforcement learned that Delack was returning from Denver and was suspected of bringing meth. Investigators asked the Montana Highway Patrol to stop Delack’s vehicle. MHP stopped Delack in Big Horn County, where Delack told agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had about six ounces of meth inside a duffel bag in the vehicle.
In January 2018, a GPS monitoring device was placed on Delack’s vehicle, as authorized by a search warrant. The tracker indicated Delack was traveling out of state on Jan. 28 and traveling back to Montana the next day. On Jan. 30, MHP stopped Delack’s vehicle east of Columbus and searched the vehicle. Hidden in the engine compartment was a round metal tin containing 112.3 grams of meth. Delack admitted to traveling to Denver and buying four ounces of meth for $2,000. Four ounces of meth is the equivalent of about 896 individual doses.
Assistant U.S. Attorney Thomas Godfrey prosecuted the case, which was investigated by the ATF.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Berkeley County woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shauntae Cherie Placko, of Hedgesville, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Placko, age 29, pled guilty to one count of “False Statement During Purchase of a Firearm.” Placko admitted to making a false statement when purchasing a pistol from a firearms dealer in Berkeley County in October 2017.
Placko faces up to five years incarceration and a fine of up to $250,000 for the false statement count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Arnold Man Sentenced to 120 Years for Child PornographyRead the Press Release
St. Louis - Dennis M. Suellentrop, Jr., 38, Arnold, MO, was sentenced today to 120 years in prison for production and possession of child pornography. He appeared today in federal court before U.S. District Court Judge Catherine D. Perry.
According to court documents, between August 19, 2016 and January 1, 2017, Suellentrop produced child pornography videos of an infant and possessed other images of child pornography.
Suellentrop pled guilty in September to seven counts of production of child pornography and one count of possession of child pornography.
The case was investigated by the Jefferson County Sheriff’s Office, the Federal Bureau of Investigation, and the Missouri Internet Crimes Against Children Task Force. AUSA Rob Livergood handled the case for the United States Attorney’s Office.
Alleged Robber of Jewelry and Gemstones Arrested and Extradited from Colombia to the United StatesRead the Press Release
A Colombian national was arrested in Colombia and extradited to Pittsburgh, Pennsylvania last night on charges related to his alleged role in the robbery of an employee of a New York business that sold jewelry and gemstones.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, Special Agent in Charge Robert Allan Jones of the FBI’s Pittsburgh Field Division and Chief T. Robert Amann for the Northern Regional Police Department in Wexford, Pennsylvania made the announcement.
Oscar Javier Rodriguez Roa, 35, of Bogota, Columbia, was charged by indictment unsealed today in the Western District of Pennsylvania with one count of conspiracy to commit Hobbs Act Robbery and one count of Hobbs Act Robbery. Roa is scheduled to make his initial court appearance in U.S. District Court in Pittsburgh today at 1:45 p.m. EST before U.S. Magistrate Judge Maureen P. Kelly.
The indictment alleges that on May 8, 2013, in the Western District of Pennsylvania, Roa and others conspired to rob and robbed an employee of a New York business that sold jewelry and gemstones. Roa and others allegedly took jewelry and gemstones from the employee against his will by actual and threatened force, violence, and fear of injury.
The investigation of this case was led by the FBI’s Pittsburgh Field Division, with the assistance of the Northern Regional Police Department. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition.
Assistant U.S. Attorney Charles A. Eberle of the U.S. Attorney’s Office for the Western District of Pennsylvania and Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section in the Justice Department are prosecuting the case.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alleged Robber of Jewelry and Gemstones Arrested and Extradited from Colombia to United StatesRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady announced today that a Colombian national made his initial appearance in federal court in Pittsburgh today on charges related to his alleged role in the robbery of a traveling jewelry salesmen outside a jewelry store in Wexford, Pennsylvania.
The indictment against Oscar Javier Rodriguez Roa, 35, of Bogota, Colombia, was unsealed today, following a lengthy extradition process. Roa is charged with one count of conspiracy to commit Hobbs Act Robbery and one count of Hobbs Act Robbery.
The indictment alleges that on May 8, 2013, in the Western District of Pennsylvania, Roa and others robbed a salesman that sold jewelry and gemstones to jewelry stores across the country. Roa and others allegedly took jewelry and gemstones from the employee against his will by force.
According to information presented to the court, Roa is alleged to be part of an organized South American theft group that targeted a salesman delivering jewelry and gemstones to a Wexford jewelry store. He and other members of the ring smashed the window of the victim’s car, which was parked in the jewelry store parking lot, forcefully grabbed a shoulder bag from the victim containing $500,000 worth of jewelry, and fled the scene. Shortly thereafter, Roa fled the country.
"The extradition of Roa to the U.S. to face these charges demonstrates our enduring commitment to prosecute and bring to justice violent criminals, regardless of where they hide," said U.S. Attorney Brady. "I want to commend the work of the Northern Regional Police Department and the FBI in investigating this case."
"This case goes to show that no matter how long it takes, the FBI will work to get justice for the victims," said Robert Jones, Special Agent in Charge of the FBI’s Pittsburgh Field Office. "The FBI has well-connected resources and intelligence around the world. The cooperation with our local, national and international partners should send a message to those committing crimes that we will find you."
"As police chief, I appreciate the assistance and the cooperation between our local police department and all of the federal agencies who worked to identify this defendant and return him to the United States," added Northern Regional Police Chief T. Robert Amann.
This was a joint investigation between the FBI’s Pittsburgh Field Division and the Northern Regional Police Department. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition.
Assistant U.S. Attorney Charles A. Eberle of the U.S. Attorney’s Office for the Western District of Pennsylvania and Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section in the Justice Department are prosecuting the case.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Akron man indicted for trafficking methamphetamineRead the Press Release
An Akron man was indicted in federal court on methamphetamine trafficking charges.
Antonio Dorman, 29, was indicted on one count of possession with intent to distribute a controlled substance.
Dorman on May 22 did knowingly and intentionally possess with the intent to distribute more than 500 grams of a mixture and substance containing methamphetamine, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Peter Daly, following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acting Attorney General Matthew G. Whitaker Statement Regarding the Administration's Agreement with MexicoRead the Press Release
Acting Attorney General Matthew G. Whitaker today released the following statement:
"Because of loopholes in our laws, tens of thousands of illegal aliens have been able to enter this country, make meritless asylum claims, and then be released and disappear into the United States. But the Trump administration has been taking steps to close these loopholes and eliminate the incentives to come here illegally. Today the Trump Administration has taken an historic step that will reverse the trends and help restore the rule of law at the border. The Department of Justice will do its part and ensure that we make available the necessary and appropriate resources in light of this historic agreement. Thanks to this and other Trump Administration decisions, the days of our generosity being abused are coming to an end."
Abington Man Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – An Abington man was sentenced yesterday in federal court in Boston for fentanyl distribution.
Edrick Firmin, 21, was sentenced by U.S. District Court Judge William G. Young to 15 months in prison and three years of supervised release. In October 2018, Firmin pleaded guilty to distributing fentanyl. In August 2018, Firmin was arrested and charged with 28 others as part of Operation Landshark.
On June 15, 2018 and June 19, 2018, Firmin distributed less than four grams, in total, of fentanyl to a cooperating witness in Brockton. The government also alleged that Firmin was an associate of the Cubs gang in Brockton.
Operation Landshark was a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, who have prior convictions for acts of violence. It is alleged that many of the defendants charged in Operation Landshark were in the top 30 criminal offenders responsible for violent acts and firearms in Brockton.
Of the 29 defendants arrested, 23 were charged federally and six were charged with state drug and firearm offenses.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney John D. Pappas; Boston Police Commissioner William Gross; and Brockton Police Chief John Crowley made the announcement today. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Service; and the U.S. Secret Service. The state cases are being prosecuted by the Plymouth County District Attorney’s Office and Suffolk County District Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
9 illegal aliens arrested in the Western District of Louisiana plead guilty, sentenced for re-entering U.S.Read the Press Release
LAKE CHARLES, SHREVEPORT, ALEXANDRIA, MONROE, La. – United States Attorney David C. Joseph announced that nine illegal aliens arrested in the Western District of Louisiana pleaded guilty and were sentenced this week for re-entering the country.
3 illegal aliens from Mexico arrested in Southwest Louisiana plead guilty
LAKE CHARLES, La. – Pedro Olvera-Gonzalez, 40; Juan Perez-Hernandez, 19; and Jose Miguel Boites-Huerta, 34, all of Mexico, pleaded guilty Monday before U.S. District Judge Donald E. Walter to one count of illegal re-entry of a removed alien in three separate cases. According to the guilty pleas, the defendants were arrested in southwest Louisiana and found to have re-entered the United States after being removed.
Olvera-Gonzalez was encountered by Border Patrol agents on September 6, 2018 at the Cameron Parish Jail and was found to have been deported four previous times in 2001, 2003, 2006 and 2010. His criminal history includes a vehicle burglary conviction on May 11, 1999, a vehicle burglary conviction on July 17, 2002 in Nueces County, Texas, an evading arrest conviction on November 17, 2009 in Hidalgo County, Texas, and a 2018 conviction in Cameron Parish for speeding, reckless operation, flight from an officer, lack of vehicle insurance, operation of a vehicle without lawful presence in the United States, no vehicle license and no motor vehicle headlamps.
Perez-Hernandez was detained by Calcasieu Parish Sheriff’s deputies after a traffic stop on September 6, 2018 on Interstate-10 in Lake Charles. He was turned over to Border Patrol agents who discovered that he was a citizen from Mexico and had been previously removed on August 9, 2018.
Boites-Huerta was arrested by Calcasieu Parish Sheriff’s deputies after a traffic violation August 14, 2018 near Lake Charles. He was later turned over to Border Patrol agents who discovered he was a citizen of Mexico and was not allowed to be in the United States. He had been previously removed on December 13, 2010.
The defendants were sentenced at the guilty plea hearings to time served and are to be deported.
Homeland Security Investigations, U.S. Border Patrol and the Calcasieu Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney David J. Ayo prosecuted the cases.
2 illegal aliens from Mexico, Honduras plead guilty to illegally re-entering U.S.
LAKE CHARLES, La. – Sergio Alejandro Rodriguez-Leija, 27, of Mexico, and Irrael Alverto, 40, of Honduras, pleaded guilty Monday before U.S. District Judge Donald E. Walter to one count of illegal re-entry of a removed alien in separate cases. According to the guilty pleas, the defendants were arrested in southwest Louisiana and found to have re-entered the United States after being removed.
Rodriguez-Leija was arrested on August 27, 2018 by Border Patrol agents near Lake Charles. He had been previously removed from the United States on November 14, 2016 near Carrizo Springs, Texas, and was not allowed to re-enter the country.
Alverto was arrested on July 9, 2018 by Sulphur Police near Sulphur, Louisiana. He later admitted to Border Patrol agents that he was in the country illegally and had been previously removed on January 4, 2018.
The defendants were sentenced at the guilty plea hearings to time served and are to be deported.
Homeland Security Investigations, U.S. Border Patrol and the Sulphur Police Department investigated the cases. Assistant U.S. Attorney Robert C. Abendroth prosecuted the cases.
Illegal alien from Mexico found in Calcasieu Parish pleads guilty to re-entering U.S.
LAKE CHARLES, La. – Juan Antonio Esparza-Martinez, 42, of Mexico, pleaded guilty on Monday and was sentenced by U.S. District Judge Donald E. Walter on one count of illegal re-entry of a removed alien. According to the guilty plea, the Calcasieu Parish Sheriff’s Office contacted U.S. Border Patrol concerning four individuals who had parked a car blocking traffic. Three of the individuals were in the United States legally, but Esparza-Martinez only provided a Mexican identification card. Border Patrol agents determined that the defendant had been granted an expedited removal from the country on June 28, 2018. He also had two previous voluntary removals. Esparza-Martinez admitted that he is a citizen of Mexico who was removed in June of 2018 and re-entered the United States illegally in July of 2018 near Laredo, Texas.
The defendant was sentenced at the guilty plea hearing to time served and is to be deported.
Homeland Security Investigations and Calcasieu Parish Sheriff’s Office investigated the case. Assistant U.S. Attorneys Kelly P. Uebinger and Robert C. Abendroth prosecuted the case.
Illegal alien from Guatemala arrested in Webster parish pleads guilty to re-entry
SHREVEPORT, La. – Rodrigo Apolonio Perez-Mejia, 26, of Guatemala, pleaded guilty before U.S. District Judge Donald E. Walter on one count of illegal re-entry of a removed alien. According to the guilty plea, Sarepta Police dentained Perez-Mejia on August 19, 2018. Upon further investigation, law enforcement agents learned that he was an alien who had been removed from the United States after U.S. Border Patrol arrested him on August 2, 2017 near Sasabe, Arizona.
The defendant was sentenced at the guilty plea hearing to time served and is to be deported.
Homeland Security Investigations and the Serepta Police Department investigated the case. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Illegal alien from El Salvador found in Rapides parish pleads guilty
ALEXANDRIA, La. – Jose Alfredo Bonilla-Cruz, 48, of Guatemala, pleaded guilty Wednesday before U.S. District Judge Dee D. Drell on one count of illegal re-entry of a removed alien. According to the guilty plea, a U.S. Immigrations and Customs Enforcement agent made contact with Bonilla-Cruz on October 1, 2018 at the Rapides Parish Detention Center in Alexandria. He was interviewed and admitted to not being a citizen. It was also discovered that he had been removed from the United States three times in 1998, 2000 and 2004.
The defendant was sentenced at the guilty plea hearing to time served and is to be deported.
Homeland Security Investigations and the Rapides Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Illegal alien from Mexico arrested in West Monroe sentenced to six months
MONROE, La. – Jose Juan Salinas-Saldana, 42, of Mexico, pleaded guilty and was sentenced to six months in prison today before U.S. District Judge Terry Doughty on one count of illegal re-entry of a removed alien. According to the guilty plea, West Monroe police detained Salinas-Saldana on November 10, 2018. Law enforcement agents learned that he was an illegal alien who had been removed from the United States in 2002.
Homeland Security Investigations and West Monroe Police Department investigated the case. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
"Operation 922" Results in Four Federal Indictments Related to Domestic ViolenceRead the Press Release
OKLAHOMA CITY — In the first two weeks of December, federal grand juries returned four separate and unrelated indictments in cases involving domestic violence, announced Robert J. Troester of the U.S. Attorney’s Office. These prosecutions involving domestic violence are part of Project Safe Neighborhoods (PSN), the Department of Justice’s national violent crime reduction initiative aimed at making our communities safer and more secure. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and re-entry programs for lasting reductions in crime.
"Operation 922" is the local implementation of the national PSN initiative in the Western District of Oklahoma. As part of "Operation 922," federal prosecutors focus on enforcing federal laws to keep firearms out of the hands of those Congress has precluded from possessing firearms. "Operation 922" specifically focuses on domestic violence abusers who are subject to a victim protection order or restraining order (VPO), or who have been previously convicted in any court of a misdemeanor crime of domestic violence. Section 922 of Title 18 of the United States Code prohibits those specific offenders from possessing firearms or ammunition. In addition, the U.S. Attorney’s Office prosecutes cases in Indian Country, including domestic abuse acts involving strangulation, as well as cases in which a firearm or other weapon is used.
"We cannot have safe neighborhoods without first having safe homes," said Mr. Troester. "We are bringing the power of federal prosecution to help protect women and children who are the subject of repeated abuse and violence, particularly when that violence escalates to a place where firearms or weapons are involved. We are proud to partner with and assist state, local, and tribal law enforcement and prosecutors, who are already working tirelessly to combat the epidemic of domestic violence in Oklahoma."
Since "Operation 922" began in March of this year, the U.S. Attorney’s Office has brought charges in 35 cases involving domestic violence. In the first two weeks of December, federal grand juries returned the following four indictments in separate and unrelated cases involving domestic violence:
- AUSTIN ISRAEL SANDERS, 23, of Weatherford, Oklahoma, was indicted on December 4, 2018, for illegally possessing a 9mm, semi-automatic pistol on July 20, 2018, while being subject to a victim protection order issued out of Custer County, Oklahoma, that restrained him from harassing, stalking, or threatening an intimate partner. If convicted, Sanders faces up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
- RONALD BENTON, 46, of Temple, Oklahoma, was charged on December 12, 2018, with the illegal possession of a 9mm caliber pistol on June 15, 2018, in Cotton County, Oklahoma, after having been previously convicted of battery on a household member in 2007 in New Mexico. If convicted, Benton faces up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
- SHANE MICHAEL GLISSON, 38, of Tuttle, Oklahoma, was indicted on December 12, 2018, for illegally possessing multiple shotguns, a rifle, and ammunition on October 26, 2018, in Cleveland County, Oklahoma, while he was subject to a Cleveland County victim protection order that restrained him from harassing, stalking, or threatening an intimate partner. If convicted, Sanders faces up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
- JAMES DEAN LAMAR LAFOUNTAIN, 24, of Seiling, Oklahoma, was indicted on December 12, 2018, on two counts: assaulting his spouse with a dangerous weapon (a knife), and assaulting his spouse by attempting to strangle and suffocate her on November 25, 2018, in Indian Country. If convicted, Lafountain faces on each count up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
Please note that an indictment is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
These cases are the result of investigations conducted by the Weatherford Police Department, the Moore Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Bureau of Indian Affairs – Office of Justice Services, and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Wilson McGarry is prosecuting the cases against Sanders and Benton. Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting the case against Glisson. Assistant U.S. Attorney Jessica Cárdenas is prosecuting the case against Lafountain.
Wednesday 19 December 2018
“Thief-In-Law” Razhden Shulaya Sentenced in Manhattan Federal Court to 45 Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RAZHDEN SHULAYA, a vor v zakone or “thief-in-law,” was sentenced today to 45 years in prison by United States District Judge Loretta A. Preska. The sentence followed the June 2018 trial conviction of SHULAYA and Avtandil Khurtsidze, a boxing world champion and Shulaya’s violent enforcer, on racketeering and related charges in connection with a sprawling and violent criminal enterprise operating in New York, New Jersey, Pennsylvania, Nevada, and abroad. Khurtsidze was sentenced on September 7, 2018, to 10 years in prison by U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Razhden Shulaya led a vast and violent criminal enterprise engaged in an array of criminal schemes that included extortion, theft, trafficking in stolen goods, and fraud. Shulaya, a ‘thief-in-law,’ is a convicted thief under U.S. law, and has deservedly been sentenced to a lengthy prison term.”
As established by the evidence at trial:
The Shulaya Enterprise was an organized criminal group operating under the direction and protection of RAZHDEN SHULAYA a/k/a “Brother,” a/k/a “Roma,” a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals. As a vor, SHULAYA had substantial influence in the criminal underworld and offered assistance to and protection of the members and associates of the Shulaya Enterprise. Those members and associates, and SHULAYA himself, engaged in widespread criminal activities, including acts of violence, extortion, the operation of illegal gambling businesses, fraud on various casinos, identity theft, credit card frauds, trafficking in large quantities of stolen goods, money laundering through a fraudulently established vodka import-export company, payment of bribes to local law enforcement officers, and the operation of a Brooklyn-based brothel.
The Shulaya Enterprise operated through groups of individuals, often with overlapping members and/or associates, dedicated to particular criminal tasks. While many of these crews were based in New York City, the Shulaya Enterprise had operations in various locations throughout the United States (including in New Jersey, Pennsylvania, Florida, and Nevada) and abroad. Most members and associates of the Shulaya Enterprise were born in the former Soviet Union and many maintained substantial ties to Georgia, Ukraine, and the Russian Federation, including regular travel to those countries, communication with associates in those countries, and the transfer of criminal proceeds to individuals in those countries.
SHULAYA oversaw and personally committed multiple acts of brutal violence in his role as a vor. Evidence at trial included testimony regarding SHULAYA’s pistol-whipping of his own family member; testimony regarding SHULAYA’s public beating of a supposedly disrespectful underling; and photographs of the badly disfigured face of SHULAYA’s former lieutenant, co-defendant Mamuka Chaganava. SHULAYA, protected by Khurtsidze, acted with impunity in the brutal assault of Chagaanva, a man whom he previously had held in high regard, and SHULAYA took pride in the brutality of that assault: SHULAYA photographed Chaganava’s battered face in order to share his “handiwork” with another vor. In later explaining that he was unafraid of any retribution or reports to law enforcement by Chaganava, SHULAYA explained the perceived power of his position: “For him, I am a god.”
SHULAYA accomplished additional acts of violence and extortion through Khurtsidze, formerly a middleweight boxing champion, who acted as SHULAYA’s chief enforcer. Khurtsidze was captured on video twice assaulting others in service of the Shulaya Enterprise, participated in recorded acts of extortion of gambling debts, and planned additional acts of violence with SHULAYA targeting associates of the Shulaya Enterprise whom Khurtsidze and SHULAYA perceived as having disrespected SHULAYA’s status as a vor.
SHULAYA also orchestrated a scheme to defraud casinos by targeting particular models of electronic slot machines using a complicated algorithm designed to predict the behavior of those machines. SHULAYA obtained the technology used to commit that fraud through violence, including through the 2014 kidnapping of a software engineer in Las Vegas. SHULAYA refined that technology by training lower-level members of the Shulaya Enterprise to execute this casino scam using smartphones and software developed by the Enterprise.
Following a two-week trial before Judge Forrest, SHULAYA was found guilty of one count of racketeering conspiracy, one count of conspiring to traffic in stolen goods such as luxury watches, one count of conspiracy to traffic in contraband tobacco, one count of identification document fraud, and one count of wire fraud conspiracy.
* * *
In addition to the prison term, SHULAYA, 41, of Saint Petersburg, Russia, was sentenced to three years of supervised release, and ordered to pay $2,169,270 in forfeiture and restitution in the amount of $550,000.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation and its Eurasian Organized Crime Squad, as well as U.S. Customs and Border Protection and the New York City Police Department for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams and Andrew Thomas are in charge of the case.
Yuma Resident Sentenced to 25 Years for Producing, Distributing, and Possessing Child PornographyRead the Press Release
PHOENIX – On Dec. 17, 2018, Aaron Louis Turk, 32, of Yuma, Ariz., was sentenced to 300 months in prison by Chief U. S. District Judge G. Murray Snow. Turk had previously pleaded guilty to producing child pornography involving two minors, distributing child pornography, and possessing child pornography.
In his plea agreement, Turk admitted that he produced and possessed illegal child pornography images of two toddler-age girls, along with other child pornography. The toddlers were in Turk’s care when he produced the illegal images of them. Turk was first detected on a file sharing network which led to a federal search warrant being executed at his residence in Yuma, Ariz. Law enforcement seized a computer and a cell phone used by Turk, both of which contained child pornography images.
The Court also ordered Turk pay restitution to all identified victims, and serve a lifetime term of supervised release after his release from prison.
“The defendant’s lengthy sentence in this case is well-deserved,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “The defendant’s reprehensible conduct targeted not only very young children, but children who had been placed in his care. I would like to recognize and thank the Yuma Homeland Security Investigation agents whose hard work brought this predator to justice.”
“HSI Yuma will work tirelessly to investigate and bring to justice sexual predators like Mr. Turk who exploit our most vulnerable population,” said Scott Brown, special agent in charge for HSI Phoenix. “This sick and deviant behavior will not be tolerated by society. Thankfully the victims we rescued are out of harm’s way with the defendant serving a lengthy sentence.”
The investigation in this case was conducted by the Homeland Security Investigations, Yuma Office. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Phoenix.
CASE NUMBER: 2:17-cr-00932-GMS-1
RELEASE NUMBER: 2018-172_Turk
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Woman Sentenced to Seven Years in Federal Prison After Stealing from an Elderly Widow and Her Deceased Son, a Former Navy SEALRead the Press Release
A woman who stole the identities of an elderly woman and her deceased son, a former Navy SEAL, in order to withdraw nearly $200,000 from their bank accounts, was sentenced December 18, 2018, to seven years in federal prison.
Robin Ann Bertelli, age 61, from Cedar Rapids, Iowa, received the prison term after a May 17, 2018 guilty plea to one count of bank fraud and one count of aggravated identity theft.
In a plea agreement, and at her plea hearing, Bertelli admitted that, in 2013 she began a romantic relationship a former Navy SEAL, who resided with his elderly and widowed mother in rural Central City, Iowa. Bertelli soon moved into the home the widow and her son shared. The widow was unable to walk to her mailbox to get her mail, and Bertelli stole mail, including mail from the widow’s financial institution, Collins Community Credit Union (“CCCU”).
In December 2015, the former Navy SEAL received an inheritance of approximately $18,000 from a relative and deposited this inheritance into his checking account at CCCU. In February 2016, defendant and the former Navy SEAL travelled together to Puerto Rico for a vacation. On that trip, the former Navy SEAL unexpectedly died. Bertelli reported to others that the former Navy SEAL went swimming, hit his head on a rock, and accidentally drowned.
Family members of the former Navy SEAL ultimately discovered that Bertelli had stolen blank CCCU checks from the former Navy SEAL and his mother. From July 2013 through September 2016, Bertelli fraudulently made over 60 checks payable to herself, inserted a dollar amount, and forged their signatures. Bertelli deposited these forged checks into her own account at NXT Bank, causing transfers of funds from the CCCU accounts of the former Navy SEAL and his mother into Bertelli’s account at NXT Bank. The three transfers from the former Navy SEAL’s CCCU account all occurred after the date of his death. In total, Bertelli stole a total of $192,500 from the CCCU accounts of the former Navy SEAL and his mother. Bertelli used the stolen funds for her own purposes, including to purchase a luxury car and purses.
Bertelli was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Bertelli was sentenced to 84 months’ imprisonment. She was ordered to make $192,500 in restitution to her victims. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
At the sentencing, Judge Reade found Bertelli had an “extremely high risk to recidivate” and pointed out that Bertelli had a number of prior state court theft convictions for which she had received no time in jail—including a six-figure embezzlement from a prior employer. Judge Reade characterized Bertelli as an “opportunist” whose acts were “shameful.” Judge Reade found that, if not confined or under court-ordered supervision, Bertelli “will steal again.” Judge Reade also noted Bertelli had two prior drunk driving convictions, limited legal employment, and violated the court’s orders by using alcohol while on pretrial release.
The prosecution of Bertelli is part of the Department of Justice’s Elder Abuse Initiative. In March 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of ten districts nationwide to launch regional Elder Justice Task Forces. The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The United States Attorney’s Office for the Northern District of Iowa has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect.
The charges also were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Bertelli 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 Timothy L. Vavricek and investigated by the Linn County Sheriff’s Office and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-30-LRR.
Follow us on Twitter @USAO_NDIA.
Wisconsin Rapids Business Owner Sentenced for Tax EvasionRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Russell Broga, 51, Wisconsin Rapids, Wisconsin, was sentenced today by Chief U.S. District Judge James Peterson to two years of probation and fined $150,000. Judge Peterson ordered Broga to pay the fine immediately. On October 30, 2018, Broga pleaded guilty to tax evasion for tax year 2013.
Broga owned and operated A-1 Services Wisconsin Rapids, LLC (A-1), located in Wisconsin Rapids. A-1 provided customers with a variety of services, including asphalt paving, asphalt maintenance, tree removal and tree transplanting. Broga admitted at his plea hearing in October that he took customer checks and cashed them using his personal bank account, instead of depositing the income in his business bank account. Broga then withheld these skimmed receipts from the bookkeeper and tax return preparer for tax years 2012, 2013, and 2014. The total tax evaded for those these three years totaled $147,682. Broga paid the back taxes of $147,682 at the time of the plea hearing.
At today’s sentencing, Judge Peterson explained that imprisoning Broga did not serve the interest of protecting the safety and property of the community, due to Broga’s health issues. However, the judge told Broga that normally this type of crime deserves a prison sentence, and that morally there is no difference between Broga’s tax evasion conduct and the conduct of a car thief or drug dealer. The judge also told Broga that his arrogance in thinking he could cheat the government of taxes whenever he wanted year after year is appalling and reprehensible. Judge Peterson told Broga that he deserved a punitive sentence, which the court believed could be achieved with a fine of $150,000 payable immediately and two years of probation. The court hoped that such a sentence would send a specific deterrence message to Broga, and a general deterrence message to the community that evading $147,000 in taxes will cost double that amount in back taxes and a fine.
The charges against Broga were the result of an investigation conducted by special agents from the Madison office of IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Windsor Man Charged with Illegally Possessing Guns and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, announced that DAVID McKEMMIE, JR., 30, of Windsor, was arrested today and charged by federal criminal complaint with possession of firearms and ammunition by a convicted felon.
Following his arrest, McKemmie appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained pending a detention hearing that is scheduled for December 21, 2018.
As alleged in the criminal complaint, at approximately 6:20 a.m. today, ATF special agents conducted a court-authorized search of McKemmie’s residence at 61 Park Avenue in Windsor. McKemmie was arrested after investigators collected from his bedroom nine handguns, two AR15 rifles, an AR15 pistol that had no markings, more than 500 rounds of ammunition, and various firearms parts and materials used in the construction of firearms.
It is alleged that McKemmie is a previously convicted felon.
U.S. Attorney Durham stressed that a complaint is only a charge and 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the U.S. Postal Inspection Service, Connecticut State Police and Windsor Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Wilson Man Ordered to Pay Hundreds of Thousands of Dollars in Restitution to Human Trafficking VictimRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that United States District Judge Louise W. Flanagan has ordered WILLIAM MAURICE SADDLER, 36, of Wilson to pay $477,618.20 in restitution to a victim of human trafficking. This is the largest amount ever ordered in our District under the trafficking restitution statute.
The case involved a fifteen-year-old victim whom SADDLER prostituted at migrant camps near Wilson, North Carolina. SADDLER helped the victim to become addicted to crack cocaine, coerced her and forced her to continue prostituting, and kept all the money derived from her forced prostitution. SADDLER also introduced the victim to two other pimps, Bobby Ray Williams Jr. and Kenneth Corvon Ward, who also prostituted her with the assistance of two females, Temeeka Honey and Yadyra Brown. Williams, Ward, Honey, and Brown all were previously convicted and sentenced in related cases.
A federal jury in New Bern convicted SADDLER of conspiracy to commit sex trafficking of a minor and sex trafficking by force, fraud or coercion and of a minor. On June 7, 2018, Judge Flanagan sentenced SADDLER to 480 months’ imprisonment followed by a lifetime of supervised release. At the government’s request, and after further proceedings, Judge Flanagan has now ordered SADDLER to pay the substantial restitution amount to the victim.
Federal law applicable to human trafficking offenses mandates that victims be compensated for the full amount of their losses, including for medical services, lost income, attorneys’ fees, transportation, temporary housing, child care expenses, and other items. Here, Judge Flanagan awarded the victim $477,618.20 in restitution for her losses, and ordered SADDLER to pay that as part of his criminal judgment.
“Saddler’s crimes were unbelievably heinous,” said U.S. Attorney Higdon. “For years, he exploited and traumatized a child to satiate his greed and others’ sexual desires. No more. His 40-year sentence ensures that he cannot hurt other children, and his nearly half-million dollar restitution order is a small step on the victim’s path to recovery.”
That substantial sentence also serves another important goal. As U.S. Attorney Higdon emphasized, “the extent of Saddler’s punishment demonstrates the ferocity with which the United States prosecutes offenders like him. Other would-be traffickers should take heed. The United States will exhaust all available resources to protect our communities’ children. For those who seek to exploit our youth, justice will be swift and severe.”
Investigation of this case was conducted by the Federal Bureau of Investigation, the Raleigh Police Department, the N.C. State Bureau of Investigation, the Wilson Police Department and the Wilson County Sheriff’s Office. Assistant United States Attorneys Erin C. Blondel and Eleanor Morales represented the United States.
Wilkinsburg Man Sentenced to Almost 6 Years in Prison for Robbing Local Dollar General and PNC BankRead the Press Release
PITTSBURGH, Pa. – A former resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to a term of imprisonment of five years and 10 months, to be followed by three years of supervised release, on charges of bank robbery and Hobbs Act robbery, United States Attorney Scott W. Brady announced today.
Senior United States District Court Judge Arthur J. Schwab imposed the sentence on Lamont Gates, 65.
According to information presented to the court, on October 5, 2017, armed with a knife, Gates robbed the Dollar General store located on Penn Ave. in Wilkinsburg. Gates took approximately $310 before fleeing the store. One week later, on October 12, 2017, Gates entered the PNC Bank, also on Penn Avenue, and advised the teller that it was a stick-up. He demanded $20 bills. Gates reached through the metal bars on the teller counter in an attempt to grab either the teller or money. He then threatened to blow the teller’s head off and reached for an object with a black handle in his back pocket. The teller gave Gates approximately $2,060, including bait money.
A few minutes later, Gates was observed in the parking lot of the beer distributor one block away from the PNC Bank. After a brief chase, officers arrested Gates. Officers recovered $1,940 (in $20 bills) from Gates. It appears that he had already purchased a few items from the beer distributor. No weapons were recovered. Gates confessed to the Dollar General robbery.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Wilkinsburg Police Department conducted the investigation leading to the prosecution of Lamont Gates.
Wichita Man Charged with Laser Strike on KHP PlaneRead the Press Release
WICHITA, KAN. – A Wichita man was indicted today on charges of striking a Kansas Highway Patrol aircraft with a beam from a laser pointer, U.S. Attorney Stephen McAllister said.
Armando Rodriguez-Leyva, 29, Wichita, is charged with one count of aiming a laser pointer at an aircraft.
The FBI and the U.S. Attorney’s office are campaigning to educate the public about the dangers of pointing lasers at aircraft. When aimed at an aircraft from the ground, the powerful beam of light from a handheld laser can travel more than a mile and illuminate a cockpit, disorienting and temporarily blinding pilots. The effect is similar to a flashbulb going off in a dark car at night. Each year, thousands of laser strikes are reported, and the FBI estimates that thousands more go unreported. For more information, visit this web page: https://www.fbi.gov/video-repository/laser-campaign-soundbites-for-media.mov/view
“Engaging in such activity is not a prank; it is extremely dangerous and a federal felony offense,” McAllister said. “Federal authorities are dedicated to rapidly bringing offenders to justice. The charge in this case was brought, and the defendant was arrested, within 5 days of the alleged commission of the offense.”
According to court documents, on December 15 a fixed wing aircraft owned and operated by the Kansas Highway Patrol for law enforcement purposes was flying over south Wichita to assist local law enforcement agents with a case. During the flight, a green-colored laser struck the aircraft several times and illuminated the cockpit of the aircraft, presenting a serious risk to the pilot.
The pilot tracked the laser light to a residence in the 1100 block of South Terrace in Wichita. The defendant was sitting in a car behind the residence when he was arrested.
If convicted, the defendant faces a sentence of up to five years in federal prison and a fine up to $250,000. The Kansas Highway Patrol, the Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
OTHER INDICTMENTS
Amy S. Bell, 40, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Nov. 13, 2018, in Wichita.
If convicted, she faces up to 10 years in federal prison and a fine up to $250,000. The Sedgwick County Sheriff’s Department investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
Roberto Equihua-Garcia, 39, who is not a United States citizen, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 16, 2018, in Johnson County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Washington County Sheriff's Office Civilian Employee Accused of Enticing a Minor Online and Distributing Child PornographyRead the Press Release
PORTLAND, Ore. – A criminal complaint was unsealed today in federal court alleging Luke De Roy Krieger, 39, of Camas, Washington, engaged in the coercion and enticement of a minor and distributed child pornography.
As alleged in the criminal complaint, on approximately August 14, 2018, undercover officers from the United Kingdom (UK) Police Eastern Regional Special Operations Unit contacted Homeland Security Investigations (HSI) London, England, office requesting assistance regarding a mobile app user who had engaged them in sexualized chat regarding young children. The user, later identified as Krieger, discussed his sexual interest in children and talked about traveling to the UK to engage in sexual activity with the undercover officer’s minor daughter.
Working with the mobile app maker and Frontier Communications, investigators were able to locate two IP addresses Krieger used to conduct the illicit communication. One IP address was associated with a residential internet account for Krieger’s home in Camas. The second was linked to a business internet account registered to the Washington County Sheriff’s Office in Hillsboro, Oregon, where Krieger is employed as a non-sworn Information Systems Analyst.
Investigators continued communicating with Krieger via the mobile app, posing both as an adult male residing in Boise, Idaho, and as a 13-year-old female the adult male was supposedly living with and sexually abusing. Krieger revealed having sexual fantasies about several minor females, including children who he had come into contact with regularly. He also shared his desire to use a spy cam to take voyeuristic photos and videos of minor girls in a state of undress.
Krieger repeatedly requested and sent photos of child pornography to the undercover officers and, on at least one occasion, a nude photo of himself from the neck down. In response to repeated statements by both the undercover adult and minor, Krieger confirmed that he was aware of the minor’s age. Eventually, the undercover adult invited Krieger to travel to Boise for the purpose of having sex with the undercover minor. Krieger was arrested without incident on December 18, 2018, in Hillsboro before attempting to travel out of state.
Krieger made an initial appearance today in federal court before U.S. Magistrate Judge Youlee Yim You. He will remain in custody pending a detention hearing scheduled for December 21, 2018.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by HSI and the Vancouver, Washington Police Department’s Digital Evidence Gathering Unit. The Washington County Sheriff’s Office has fully supported and cooperated with the investigation.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
Vancouver, Washington Toxicology Testing Lab Settles Allegations it Paid Kickbacks for Government Program BusinessRead the Press Release
A Vancouver, Washington toxicology and genetic testing laboratory has agreed to pay up to $1,777,738 to settle allegations that it violated the False Claims Act by paying illegal kickbacks to obtain referrals from government healthcare insurance programs, announced U.S. Attorney Annette L. Hayes. Molecular Testing Labs is a wholly owned subsidiary of Blackfly Investments, LLC.
“The False Claims Act and Anti-Kickback Statute are aimed at making sure taxpayers get value for their money,” said U.S. Attorney Annette L. Hayes. “Those who try to game the system will be held accountable. This settlement sends a clear message that those doing business with government healthcare programs are being scrutinized to ensure they are not engaging in illegal side deals that harm government healthcare systems.”
According to the settlement, between August 2014 and July 2015, the United States claims that Molecular Testing Labs made payments to local laboratories in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute. The United States further claims that by submitting claims for payment to Medicare and TRICARE based on those illegal referrals, Molecular Testing Labs violated the False Claims Act.
Paying remuneration to medical providers or provider-owned laboratories in exchange referrals encourages providers to order medically unnecessary services. The False Claims Act and the Anti-Kickback Statute function, in part, to discourage such behavior.
“Kickbacks intended to gain government program business amount to little more than thinly-veiled bribes,” said Steven J. Ryan, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Along with our law enforcement partners these cases will be thoroughly investigated and resolved.”
“Every year, fraudulent medical claims cause immeasurable damage to U.S. taxpayers by wrongly inflating health care costs,” said Special Agent in Charge Chris D. Hendrickson, Defense Criminal Investigative Service, Western Field Office. “The announced settlement between the U.S. Government and Molecular Testing Labs is a victory for the U.S. taxpayer, and representative of DCIS and our law enforcement partners’ commitment to aggressively pursue those who attempt to defraud the U.S. military’s health care program and other health care programs in order to ensure the health care system works for U.S. military personnel and their families.”
Molecular Testing Labs remains in separate litigation with the Centers for Medicare & Medicaid Services (CMS) concerning potential overpayment of claims. Depending on the outcome of that litigation, the ultimate settlement in this case could be between $180,000 and $1,777,738.
In addition to the U.S. Attorney’s Office, this matter was investigated by the Department of Health and Human Services Office of the Inspector General (HHS-OIG), the Defense Health Agency of the U.S. Department of Defense, and the FBI. Assistant United States Attorneys Pooja Faldu Davé and Kayla Stahman negotiated the settlement for the U.S. Attorney’s Office.