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Wednesday 19 December 2018
Two Monroe County Men Charged with Making Straw Purchases of Fourteen FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 14, 2018, a federal grand jury returned a superseding indictment charging Pedro Quinones, age 44, of Tobyhanna, Pennsylvania and Douglas DeHaven, age 35, of East Stroudsburg, Pennsylvania, with multiple counts of making false statements to federally licensed firearms dealers. The superseding indictment had been under seal pending the arrest of Quinones, who was arrested yesterday. DeHaven was arrested in August.
According to United States Attorney David J. Freed, the superseding indictment charges Quinones and DeHaven with providing false information, conspiracy, and aiding and abetting, regarding the purchases of fourteen firearms between January 5, 2018 and February 11, 2018. It is alleged that two of the firearms were purchased from Bella Mia Jewels in Tannersville; nine of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Brodheadsville; and three of the firearms were purchased from Dunkelberger’s Sports Outfitters, in Stroudsburg. The superseding indictment also charges Quinones with being a convicted felon in possession of firearms.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Men Linked to Santa Fe Springs Street Gang Convicted of Federal Racketeering and Drug ChargesRead the Press Release
LOS ANGELES – Two members of the Canta Ranas Organization, a Santa Fe Springs-based criminal enterprise linked to the Mexican Mafia, have been found guilty by a jury of multiple federal offenses, including racketeering, narcotics and firearms charges.
Henry Jerry Mendoza, 39, who is also know by a number of monikers including “Spanky,” of Bellflower, and Jaime Andrew Villalba, 38, a.k.a. “Puppet,” of Hemet, each was found guilty on December 14 of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and being a felon in possession of a firearm and ammunition. Mendoza also was found guilty of a drug trafficking conspiracy, possession of methamphetamine and of carrying a firearm during and in relation to a crime of violence or drug trafficking crime.
Mendoza and Villalba were convicted in the third recent trial against members of Canta Ranas, a multi-generational street gang that primarily operates in Santa Fe Springs and Whittier. The criminal organization is involved in murder, burglary, extortion, money laundering and drug distribution, according to court documents.
The evidence presented to the jury at Mendoza and Villalba’s trial showed that Mendoza sold drugs and possessed firearms in furtherance of the criminal enterprise and, at the time of his arrest in December 2016, he possessed multiple bags of methamphetamine and a loaded 9-mm handgun. Villalba stored weapons and ammunition on behalf of the racketeering organization, brokered deals for gun magazines and ammunition for one of the leaders of the gang, and committed assaults on the gang’s behalf, according to trial evidence. In June 2013, Villalba assaulted someone he believed belonged to a rival street gang, hitting the unconscious man with a bottle, and, the following month, Villalba was found in possession of approximately 10 firearms, including assault rifles, shot guns, handguns and a large amount of ammunition for each firearm, the trial evidence showed.
United States District Judge Percy Anderson has scheduled March 11, 2019 sentencing hearings for both defendants, where each will face potential sentences of life imprisonment on the RICO count. Mendoza faces a mandatory minimum sentence of 25 years in federal prison on the drug trafficking conspiracy and firearms charges because he has a prior conviction for a felony drug offense.
Over the past few months, federal juries have convicted seven members of the Canta Ranas Organization. Following trials in August and September, five Canta Ranas-linked defendants were found guilty of racketeering conspiracy and other counts. All three trials this year arose from a federal grand jury indictment charging 51 defendants that was the result of “Operation Frog Legs.”
Operation Frog Legs is the result of an investigation by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The Task Force members that participated in Operation Frog Legs were U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation, and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit.
This trial was prosecuted by Assistant United States Attorneys Lindsay Bailey, Victoria Degtyareva and Chelsea Norell of the Organized Crime Drug Enforcement Task Force Section.
Two Jacksonville Men Sentenced for Their Roles in the Overdose Death of A 22-Year Old Jacksonville WomanRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Joshua Paul Smith (28, Jacksonville) and Otis Thomas (26, Jacksonville) to 30 years, and 6 years and 8 months, respectively, in federal prison, for their actions leading to the overdose death a 22-year-old Jacksonville woman. The court also ordered Smith to pay $24,187.83 in restitution to the victim’s family. Smith and Thomas had previously pleaded guilty for their roles in the case.
According to court documents and evidence submitted during the sentencing hearings, on the evening of July 10, 2015, the 22-year-old victim and another female traveled to Smith’s home to purchase and use heroin. While there, Smith provided the victim and the other woman with heroin and crack cocaine. Smith provided the victim with repeated access to heroin and cocaine throughout the evening and into the early morning hours of the following day.
The victim went to sleep early in the morning on July 11, 2015, and never woke up. According to the medical examiner, the victim died sometime in the morning hours of July 11. She had overdosed and died in her sleep due to the ingested heroin and cocaine.
At approximately 1:00 pm on July 11, Smith and Thomas found the victim dead in the loft of Smith’s home. After Thomas left the home, Smith and another individual decided to remove the victim’s body. In the early morning hours of July 12, Smith, the other female, and another individual used bi-fold closet doors to slide the victim’s body down the stairs from the loft. They then loaded her body into the back seat of a vehicle. The victim’s car was moved to another location in an effort to cover up the crime.
At approximately 3:00 am on July 12, the three individuals drove the victim’s body to a golf course in Jacksonville and dumped it near a tee box in an effort to make it appear that she had overdosed and died on the golf course. At approximately 7:00 am, a jogger saw the woman’s body and alerted authorities.
This case was investigated by the Drug Enforcement Administration and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Tysen Duva and Beatriz Gonzalez.
Two Former Local Credit Union Employees Charged in Million-Dollar Embezzlement ScamRead the Press Release
HOUSTON – An ex-employee at a local credit union has been charged with embezzlement and making false entries into the credit union’s books and records, announced U.S. Attorney Ryan K. Patrick. Another ex-employee was also charged with embezzlement related to the scam.
A federal grand jury charged Susanna Guajardo, 42, of Pearland in a five-count superseding indictment returned under seal Dec. 12, 2018. She was taken into custody today, at which time the indictment was unsealed, and is expected to make her initial appearance before U.S. Magistrate Judge Frances Stacy today at 10:00 a.m.
Grace Garza aka Grace Valencia, 48, of Pasadena, was originally charged last month with two counts of embezzlement and was released on bond. She is expected to appear again in court on these charges in the near future.
Guajardo is alleged to have committed embezzlement of $1,154,876 and three counts of making false entries into the books and records of a federal credit union between at least 2010 and 2018. The indictment alleges Garza committed two counts of embezzlement – the $1,154,876 along with Guajardo as well as a separate embezzlement of $110,000.
If convicted of any of the charges, each faces up to 30 years in federal prison and a possible $1 million fine.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Birmingham Men Plead Guilty to Using a Firearm During a Carjacking in Homewood, ALRead the Press Release
BIRMINGHAM –Two Birmingham men pled guilty in federal court to carjacking and the use of a firearm during a violent crime, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
KEVIN ELICE PAYNE, 20, entered his plea before U.S. District Court Judge Karon O. Bowdre today to one count of carjacking and one count of using a firearm in relation to a violent crime, in Jefferson County, Alabama, on October 5 2018. PAYNE’S co-defendant, KENMARIOUS MARKEON FAULKNER, 18, plead guilty to the same charges yesterday. The sentencing for PAYNE and FAULKNER is scheduled for April 17th.
“These violent defendants have been brought to justice and they will have plenty of time in a federal prison to pay for their crimes”, Town said. “These crimes are far too prevalent in the Northern District and thus our local, state, and federal law enforcement agencies will remain in their phalanx to not only police violent crime, but defeat it.”
“Thanks to the work of the Homewood Police Department these dangerous and violent criminals were quickly taken into custody and have now admitted to their crimes,” Sharp said. “The FBI will continue to work with our partners to address this type of violent crime.”
On October 5, 2018, the victim was shopping at the Walmart Supercenter on Lakeshore Parkway in Homewood, Alabama. As the victim got into her vehicle, PAYNE and FAULKNER prevented her from closing the door. Wearing a ski mask and brandishing a pistol, PAYNE explained, “I’ll blow your head off if you don’t give me your money.” PAYNE and FAULKNER then grabbed the victim and forcibly removed her from the vehicle. The assailants then stole the victim’s car and sped away. Shortly thereafter, Homewood Police Department alerted patrol officers to be on the lookout for the victim’s vehicle. Moments later, the car was spotted by an officer traveling on I-65 North. Following a lengthy pursuit, officers rammed the fleeing vehicle, causing it to crash. PAYNE and FAULKNER were immediately taken into custody.
The maximum penalty for carjacking is 15 years in prison. Brandishing a firearm during a crime of violence carries a mandatory minimum sentence of five years in prison, to be served consecutively to any other sentence imposed for the crime.
The Federal Bureau of Investigation investigated the case along with Homewood Police Department, which Assistant U.S. Attorney Brad Felton prosecuted.
Ten Weeks of Selling Heroin and Crack Cocaine Leads to Ten Years in Federal PrisonRead the Press Release
A man who sold heroin and crack cocaine for ten weeks in Dubuque was sentenced today to a decade in federal prison.
Gregory Fugi Anderson, Jr., age 32, from Dubuque, Iowa, received the prison term after a February 22, 2018, guilty plea to possessing heroin and crack cocaine which he was planning to sell near Orange Park in Dubuque.
Information at sentencing and prior hearings showed that Anderson sold heroin and crack cocaine for ten weeks in Dubuque between September and November 2017. During that time, Anderson admitted he sold at least 400 grams of heroin and more than 58 grams of crack cocaine. Anderson had a long criminal history, starting at age sixteen when he was convicted of attempted robbery which included multiple assault and drug convictions.
Anderson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Anderson was sentenced to 120 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system. Anderson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and investigated by the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1001.
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Telemarketing Scammer Charged with Multiple Counts of Mail and Wire FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging WAYNE ROBERT DAHL, JR., 50, with four counts of mail fraud and four counts of wire fraud. DAHL will make his initial appearance in U.S. District Court at a later date.
According to the indictment, DAHL owned “Your Magazine Service, Inc.” a fraudulent telemarketing company that operated a call center in Chaska, Minnesota. DAHL devised a scheme to trick mostly elderly customers into signing up for costly magazine subscriptions using false representations and fraudulent sales tactics. From 2009 through 2016, DAHL fraudulently obtained more than $10 million from 13,000 victims across the United States.
According to the indictment, DAHL purchased lists of consumers who had active magazine subscriptions through other companies. DAHL directed his employees to call these consumers and falsely claim they were calling to offer the consumers a $150 reduction on their existing account balance. In reality, as DAHL knew, the consumers did not have an existing magazine subscription with his company. During the calls, DAHL directed his employees to obtain consumers’ credit card information by falsely claiming that the company was conducting a survey on credit card and banking usage. DAHL then directed his employees to use this information to trick consumers into signing up for expensive magazine subscription packages that they did not want nor realize they were purchasing. These new subscription packages resulted in DAHL’s company billing his victim-consumers 20 monthly payments of $49.90, for a total cost of $998.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
Wayne Robert Dahl, Jr., 50
Fridley, Minn.
Charges:
- Mail Fraud, 4 counts
- Wire Fraud, 4 counts
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The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Subject of INTERPOL Red Notice Pleads Guilty to Illegal ReentryRead the Press Release
NORFOLK, Va. – A Mexican citizen who is the subject of an INTERPOL “Red Notice” pleaded guilty today to illegally reentering the country after having been previously removed.
According to court documents, Cesar Fernando Valenzuela-Alvarez, 42, who most recently was living in Chesapeake, had illegally entered the United States and been removed to Mexico on multiple occasions. On October 17, he was taken into custody in Chesapeake after officers learned he was the subject of an INTERPOL “Red Notice”.
Valenzuela-Alvarez pleaded guilty to illegal reentry and faces a maximum penalty of two years in prison when sentenced on April 3, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after Senior U.S. District Judge Henry Coke Morgan, Jr. accepted the plea. Assistant U.S. Attorney Andrew C. Bosse is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-167.
Stamford Man on Supervised Release Pleads Guilty to Drug Dealing ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ALBERT LEE ROBINSON, 57, of Stamford, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute controlled substances. Robinson also admitted that he violated the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on January 16, 2004, Judge Underhill sentenced Robinson to 188 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine. Robinson was sentenced as a career offender based on prior convictions for burglary, narcotics and robbery offenses. Robinson was released from prison in August 2017 and began serving his five-year term of supervised release.
On August 14, 2018, Stamford Police arrested Robinson on state charges after he was found in possession of approximately 17 grams of heroin, 19 grams of crack cocaine, 14 grams of powder cocaine and a quantity of marijuana, much of which was packaged for distribution. Officers also seized a digital scale and $2,052 in cash.
On September 5, 2018, a federal grand jury in New Haven returned an indictment charging Robinson with one count of possession with intent to distribute controlled substances on August 14.
On September 6, 2018, members of the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Stamford Police Department executed a federal arrest warrant for Robinson. At this time of his arrest, Robinson possessed a bag of powder cocaine on his person.
Robinson has been detained since his federal arrest.
Judge Underhill scheduled sentencing for March 12, 2019, at which time Robinson faces a maximum term of imprisonment of 20 years for distributing controlled substances, and an additional term of imprisonment for violating the conditions of his supervised release.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Elena L. Coronado.
St. Augustine Sex Offender Pleads Guilty to Federal Charge of AttemptedRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces today that Kenneth Brian Hanger (46, St. Augustine) has pleaded guilty to attempted online enticement of a child to produce child pornography. In 1994, Hanger was convicted of aggravated indecent assault in Bradford County, Pennsylvania, and is a registered sex offender. Hanger faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. Hanger has been in custody since his arrest on June 5, 2018.
According to court documents, on May 22, 2018, a detective with the St. Johns County Sheriff’s Office (SJSO) reviewed sexual offender registration information provided by Hanger. Hanger disclosed his use of a Facebook account that did not list his true name. Posing as a minor child, the detective sent a “friend request” to this account, and Hanger accepted this request and made online contact with the “child.” Between May 24 and June 5, 2018, Hanger and the “child” engaged in online conversations on several occasions using a texting application. Hanger was advised and acknowledged that the “child” was 13 years old.
On June 1, 2018, Hanger raised the topic of sexual activity between himself and the “child” and suggested meeting to engage in sex. On June 4, 2018, Hanger and the “child” again discussed meeting for sex, and Hanger sent the “child” an explicit photo of himself. Later that day, Hanger asked the “child” to send him a graphic video depicting “her” genitalia. The next day, SJSO detectives arrested Hanger at his home.
This case was investigated by the St. Johns County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Spencer Man Charged with Federal Cocaine OffenseRead the Press Release
BOSTON – A Spencer man was arrested today and charged in federal court in Worcester with cocaine distribution.
Melvin Burgos, 33, was charged by criminal complaint with possessing approximately one kilogram of cocaine with intent to distribute. He will appear in federal court in Worcester later today.
According to the charging documents, in late October 2018, Burgos made arrangements to obtain cocaine, sell it, and then transport the proceeds to New York. On Nov. 1, 2018, law enforcement stopped the vehicle Burgos was driving and seized approximately one kilogram of cocaine.
It is alleged that Burgos also asked another individual to obtain a sample of pills containing fentanyl, which Burgos planned to provide to one of his partners. Burgos allegedly stated that if the pills were of good quality, his partner would buy 1,000. According to the charging documents, Burgos contemplated being able to earn up to $10,000 a month selling these pills, but predicted that it was also possible to go to jail without bail.
Burgos faces a mandatory minimum sentence of five years and up to 40 years in prison, minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The Massachusetts Attorney General’s Office and the Massachusetts State Police provided valuable assistance to the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Solon man sentenced to 30 months in prison for his role in conspiracy to defraud the Cleveland Clinic out of $2.7 millionRead the Press Release
A Solon man was sentenced to 30 months in prison for his role in a conspiracy to defraud the Cleveland Clinic out of more than $2.7 million.
Gary Fingerhut, 58, was ordered to pay $2,784,847 in restitution. He previously pleaded guilty to one count of conspiracy to commit wire fraud and honest services wire fraud and one count of making false statements.
According to court documents filed in the case:
Fingerhut worked at Cleveland Clinic Innovations, which assisted doctors and other Clinic personnel with inventing medical products and marketing those products, typically through the formation of a spin-off company. Fingerhut was hired as general manager of information technologies in 2010 and became executive director in 2013. The Clinic terminated his employment in June 2015.
In 2012, the Cleveland Clinic Innovations formed a subsidiary company known as Interactive Visual Health Records (IVHR), to develop a visual medical charting concept of certain Clinic physicians into a functioning, marketable product. Fingerhut hired Wisam Rizk to work as a consultant and then chief technology officer at IVHR to develop the product.
Fingerhut and Rizk, as a condition of their employment, were prohibited from receiving any financial benefit or having any personal or familial financial interests in companies the Clinic did business with, unless they were expressly disclosed to, and approved by, the Clinic. Fingerhut underwent formal training on the Clinic’s ethics and compliance polices and requirements.
Rizk and others caused to be incorporated a shell company known as iStarFZE LLC (ISTAR) that did not actually perform or provide any goods or services. It was established in the name of a nominee owner. Rizk caused ISTAR to establish a web site and email addresses and a mailing address in New York City.
Rizk caused ISTAR to submit a bid to the Clinic to develop and design IVHR’s software and to increase the price the Clinic paid for the software design and development, all without disclosing his financial interest in ISTAR.
Rizk periodically paid Fingerhut a “referral” or “commission” fee in return for Fingerhut not disclosing the fraud scheme.
Fingerhut accepted nearly $469,000 in these payments from Rizk between August 2012 and November 2014. During that time, Fingerhut, Rizk. and others diverted more than $2.7 million from the Clinic.
Rizk pleaded guilty to his role in the conspiracy and is awaiting sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Chelsea S. Rice and Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
Silicon Valley CEO Sentenced to Three Years in Prison for Wire Fraud SchemeRead the Press Release
SAN FRANCISCO– Renato Libric, the former Chief Executive Officer of Bouxtie, Inc., was sentenced to 36 months in prison for wire fraud, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Maxine M. Chesney, United States District Judge.
Libric, 39, of Redwood City, Calif., and Zagreb, Croatia, pleaded guilty to the wire fraud charge on September 5, 2018. According to his plea agreement, Libric admitted that from August 2017 through February 2018, he devised and carried out a scheme to defraud potential investors in Bouxtie, Inc., a Delaware corporation based in the San Francisco Bay Area. Libric admitted that an essential purpose of the scheme was to overstate the financial condition and prospects of Bouxtie, and to induce potential investors to believe Libric had authority to sell shares in Bouxtie to investors.
Libric took multiple steps to convince members of a Las Vegas-based company to invest over a million dollars in Bouxtie. As part of the scheme, Libric fraudulently suggested to representatives of the potential investors that a large publicly traded corporation was interested in purchasing Bouxtie at a price of $150 million. To bolster this claim, Libric fraudulently placed the signature of an executive with the alleged purchasing corporation on a forged Term Sheet. The Term Sheet purported to indicate the large corporation was interested in the purchase of Bouxtie. In addition, Libric caused the falsified Term Sheet and a falsified bank statement to be transmitted to potential investors. The false bank statement suggested Bouxtie had a balance of over $2,000,000 in an account when, in fact, there was only $7,642.82 in the account. Furthermore, Libric placed the signatures of members of Bouxtie’s Board of Directors on a document that purported to authorize Libric to enter into agreements pursuant to which the investors would lend $1.5 million to Bouxtie and that the loan eventually would be converted into shares of Bouxtie.
As a result of his scheme, Libric convinced investors to transfer $1.5 million into accounts belonging to Bouxtie. Further, after the $1.5 million was deposited, Libric withdrew more than $130,000 of the invested funds from an account and put the funds into his own checking account.
On May 10, 2018, a federal grand jury indicted Libric, charging him with one count of wire fraud, in violation of 18 U.S.C. § 1343 and 2. In September, Libric pleaded guilty to the charge and agreed to make restitution to the victims for their losses.
In addition to the prison term, Judge Chesney also sentenced the defendant to a three-year period of supervised release and ordered him to pay over $1,500,000 in restitution. Libric has been in custody since his arrest on May 10, 2018, and will begin serving his sentence immediately.
Assistant U.S. Attorney Matthew McCarthy is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
Seven North Carolina Residents Indicted for Scheme to Defraud Banks and Credit Unions in Green Bay and the Fox ValleyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on December 18, 2018, a federal grand jury returned an indictment against Che L. Simons a/k/a “Che L. Simmons” (age: 28), Sequoia D. Southerland (age: 21), Mackel H. W. Gaither (age: 28), Henry L. Wilder (age: 32), Fred P. Allen a/k/a “Timothy B. Glass Jr.” (age: 24), Keith D. Davidson (age: 26), and Deshawn D. Mobley (age: 27) all residents of North Carolina. Together they are charged with five counts of financial institution fraud contrary to Title 18 United States Code, Section 1344 and two counts of aggravated identity theft in violation of Title 18, United States Code, Section 1028A. Each fraud count carries a maximum of 30 years imprisonment and $1,000,000 fine, while the identity theft counts call for a mandatory two years imprisonment consecutive to any underlying sentence handed down by the court.
The indictment alleges the group schemed to defraud financial institutions across the United States, including numerous banks and credit unions in the Fox Valley and Green Bay areas. The defendants are alleged to have stolen checks from numerous Wisconsin businesses’ mailboxes prior to altering them and recruiting individuals from homeless shelters, state probation and parole offices, Salvation Army rehabilitation centers, and bus stations to cash the counterfeit checks in exchange for a small amount of money. The defendants are alleged to have obtained or attempted to obtain more than $120,000 from banks and credit unions in Northeast Wisconsin.
This case was investigated by the Brown County Sheriff’s Office, Appleton Police Department, Grand Chute Police Department, Green Bay Police Department, De Pere Police Department, Ashwaubenon Public Safety Office, Marinette Police Department, and the Marinette County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Seven Illegal Aliens Charged with Criminal Immigration OffensesRead the Press Release
RICHMOND, Va. – A federal grand jury returned indictments late yesterday charging seven illegal aliens with illegal reentry following their deportations or removals and/or related charges.
Name, Age
Citizenship
Charges
Max Penalty
Erlin Torres Zuniga, 28
Honduras
Illegal Reentry following removal
2 years
Ruperto Hernandez Zarate, 33
Mexico
Falsely Made Immigration Document
Misuse of Social Security Number
10 years
2 years
Hugo Giovanni Lemus Ramos, 42
El Salvador
Falsely Made Immigration Document
Misuse of Social Security Number
False Claim if U.S. Citizenship
10 years
2 years
3 years
Javier Antonio Cruz Bonilla, 26
El Salvador
Illegal Reentry following removal
2 years
Max De Jesus Pinzon, 31
Mexico
Illegal Reentry following removal
2 years
Efrain Avila Flores, 40
Guatemala
Illegal Reentry following removal
2 years
Rodolfo Segura-Virgen, 38
Mexico
Illegal Reentry following removal after conviction for an aggravated felony
20 years
If convicted, each defendant will again be deported after completion of any prison sentence.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement. Assistant U.S. Attorneys S. David Schiller and Heather H. Mansfield are prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-149, 3:18-cr-151, 3:18-cr-152, 3:18-cr-155, 3:18-cr-156, 3:18-cr-157, 3:18-mj-189.
Second Bronx Gang Member Arrested and Charged in Manhattan Federal Court with 2011 Murder of Bolivia BeckRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Raymond P. Donovan, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced today that KAREEM DAVIS, an alleged member of the “Killbrook” gang based in the Mill Brook Houses in the Bronx, was arrested and charged in connection with the April 18, 2011, murder of Bolivia Beck, the girlfriend of a rival gang member. Beck was shot and killed as she was being introduced to her boyfriend’s grandparents on a sidewalk in the Mill Brook Houses. DAVIS will be arraigned in Manhattan federal court later today before United States Magistrate Judge Debra Freeman.
Fifteen individuals were previously charged in an initial Indictment unsealed on October 11, 2017. That Indictment charged four individuals, including Gary Davis, the brother of KAREEM DAVIS, with racketeering conspiracy, in connection with their membership in the Killbrook gang, and charged other individuals with narcotics conspiracy and firearms offenses. On January 8, 2018, Gary Davis was charged with the 2011 murder of Beck. The Superseding Indictment adds KAREEM DAVIS as the second defendant charged with that murder. The case is assigned to U.S. District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman said: “Bolivia Beck was murdered in 2011, in the most horrible and tragic of circumstances. Over seven years have passed, but our remarkable partners at the NYPD and DEA have remained committed to holding her killers accountable. As a result, Kareem Davis now stands charged with this terrible crime.”
DEA Special Agent in Charge Raymond P. Donovan said: “This investigation into the Killbrook Gang uncovered a racketeering conspiracy involving drug trafficking, firearms offenses and murder. Allegedly, Bolivia Beck was put in the crosshairs of gang rivalry and gang violence by Kareem and Gary Davis, both of whom are charged with murder. There is no place for criminal gang activity in our communities and law enforcement is working to remove threats of violence by putting those responsible in jail.”
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According to the allegations in the Superseding Indictment[1] and information in the public record:
On April 18, 2011, Bolivia Beck was struck in the head by a bullet as she was being introduced to her boyfriend’s grandparents on a sidewalk in the Mill Brook Houses. The shooting occurred in broad daylight. Beck died two days later from the gunshot wound. The shooting arose out of an ongoing gang dispute between Killbrook and the rival “MBG” street gang.
KAREEM DAVIS, 29, of the Bronx, New York, is charged in the Superseding Indictment with one count of racketeering conspiracy, one count of murder in aid of racketeering and aiding and abetting the same, and one count of murder through the use of a firearm and aiding and abetting the same. DAVIS faces a maximum penalty of death or life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and the DEA.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Schenectady Man Pleads Guilty to Distributing Heroin Laced with FentanylRead the Press Release
ALBANY, NEW YORK – Hezekiah Morton, age 47, of Schenectady, New York, pled guilty today to distributing heroin and fentanyl in May 2018.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Raymond P. Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Schenectady County Sheriff Dominic Dagostino.
Morton admitted that between May 7 and May 17, 2018, while in Schenectady, he distributed approximately 46 grams of a substance that he claimed to be heroin, which contained detectable amounts of fentanyl.
Sentencing is scheduled for April 18, 2019 before Senior United States District Judge Gary L. Sharpe. Morton faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and the Schenectady County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
San Francisco Resident Sentenced to Five Years in Prison for Unauthorized Possession of Credit Card and Related InformationRead the Press Release
SAN FRANCISCO – Janelyn Mangisel Dasig was sentenced today to 60 months in prison for unauthorized possession of more than 15 access devices announced United States Attorney Alex G. Tse and United States Secret Service Special Agent in Charge Dave Thomas. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge.
Dasig, 34, of San Francisco, pleaded guilty to the charge on August 29, 2018. According to the plea agreement, on May 8, 2018, Dasig was a front desk clerk at San Francisco motor lodge. She admitted she knowingly possessed printouts of at least three hundred guest names with credit card information, expiration, CVV code, and other identifying information that she unlawfully took from her place of employment. Dasig admitted that when she took the information, she had an intent to defraud and she knew she was not authorized to take the access devices.
On July 17, 2018, a federal grand jury indicted Dasig charging her with one count of possession of 15 or more counterfeit and unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(3) and (c)(1)(A)(i). Dasig pleaded guilty to the charge. Dasig also was serving a term of supervised release on an unrelated charge at the time she was found with the access devices. Judge Breyer sentenced Dasig to 42 months in prison for the access device violation and an additional 18 months in prison for the violation of the conditions of her supervised release.
In addition to the prison term, Judge Breyer also sentenced the defendant to a three-year period of supervised release. The defendant has been in federal custody since May 16, 2018, and will begin serving her sentence immediately.
Special Assistant U.S. Attorney Ann C. Lucas and Assistant U.S. Attorney Philip J. Kearney are prosecuting the case with the assistance of Kimberly Richards and Margoth Turcios. The prosecution is the result of an investigation by the United States Secret Service.
San Francisco Police Officer Arrested and Charged with Robbing BankRead the Press Release
SAN FRANCISCO – San Francisco police officer Rain Olson Daugherty was arrested yesterday and charged this morning with robbing a San Francisco bank, announced United States Attorney Alex. G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to an affidavit filed in connection with the case, on November 29, 2018, Daugherty, 44, of San Francisco, is the person who allegedly robbed entered the East West Bank in the Sunset District of San Francisco and handed a teller a note that demanded money in $50 and $100 denominations. The robber then said something to the effect of “calm down, just do it.” The teller gave a stack of cash and gave it to the robber. A second teller, who had observed the robber pass the note, pressed the alarm and left the area to notify a bank manager of the robbery. The robber took approximately $9,000 from the bank.
According to documents filed with the court, Daugherty is currently under suspension without pay. Daugherty was charged with bank robbery, in a violation of 18 U.S.C. § 2113(a).
A complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. The defendant faces a maximum statutory penalty of 20 years in prison for the charge. Additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendant currently is in federal custody and is scheduled to appear before U.S. Magistrate Judge Sallie Kim on December 19, 2018, for arraignment.
Assistant U.S. Attorney Ajay Krishnamurthy with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the FBI with assistance from the San Francisco Police Department.
Salvadoran Man Arrested in Schenectady for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Efrain Diaz-Alachan, age 46, and a citizen of El Salvador, was arrested yesterday in Schenectady, New York, on a charge of illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
According to the criminal complaint, Diaz-Alachan has been removed from the United States to El Salvador on five prior occasions since 2005, having been previously arrested in Vermont; Colonie, New York; Ticonderoga, New York; Houston, Texas; and Sarita, Texas.
In 2011 and again in 2013, he was convicted of illegal re-entry in the United States District Court for the Northern District of New York. In 2011, he was sentenced to time served. In 2013, he was sentenced to 14 months in prison. In 2015, he was again convicted of illegal re-entry, in the United States District Court for the Southern District of Texas, and sentenced to 15 months in prison.
Diaz-Alachan appeared today before United States Magistrate Judge Daniel J. Stewart, who ordered Diaz-Alachan detained pending further proceedings.
Diaz-Alachan faces up to 10 years in prison if convicted. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by ICE-ERO in Albany, with support from the ERO Buffalo Special Response Team and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Romanian Woman Indicted for Financial Fraud and Possessing ATM Skimming DevicesRead the Press Release
FORT WAYNE –Valentina Marinkovic, 18, of Romania, had a six count indictment returned against her, one count for executing a scheme to defraud a financial institution and 5 counts for possessing access device making equipment, announced U.S. Attorney Kirsch.
According to documents in the case, on or about August 5, and continuing until on or about October 1, 2018, Marinkovic executed a scheme to defraud a federally insured financial institution. Law enforcement has been investigating several reports of skimming devices being placed on bank and credit union ATMS as well as gas station credit card readers at gas pumps. The device captures and stores credit and debit card numbers of unsuspecting victims. The device is subsequently removed and the information from the skimming device is used to produce fraudulent credit/debit cards for unauthorized transactions.
In this case, a credit union was victimized having to reimburse members for losses exceeding $32,000
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI, the Indiana State Police Organized Crime and Corruption Unit along with the Elkhart Police Department. This case will be prosecuted by Assistant United States Attorney Stacey Speith.
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Rochester Man Sentenced to Eight Years in Prison for Robbing A Dunkin' DonutsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ramon Crespo, 32, of Rochester, NY, who was convicted of robbery and possession and brandishing a firearm in furtherance of a crime of violence, was sentenced to serve 96 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that on March 15, 2018, the defendant robbed the Dunkin’ Donuts located at 277 East Ridge Road in Rochester. During the robbery, Crespo waved a firearm at store employees and stole approximately $200 in cash. After investigators with the Rochester Police Department conducted their investigation, the defendant was arrested on March 22, 2018, following a traffic stop. Upon searching the vehicle, officers located a loaded .40 caliber Glock model 27 semi-automatic handgun.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Mark Simmons, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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Revere Man Charged with Distributing FentanylRead the Press Release
BOSTON – A Revere man was charged today in federal court in Boston with distributing 40 grams or more of fentanyl.
Jassiel Ramirez, 24, was indicted on three counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl. Ramirez was arrested in October and charged by criminal complaint; he has been in custody since his arrest on Oct. 11, 2018.
It is alleged that from at least Sept. 13, 2018, through Oct. 11, 2018, Ramirez distributed fentanyl in Salem.
The charge of distribution of 40 grams or more of fentanyl carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Reno Man Sentenced to Seven Years in Prison for Receipt of Child PornographyRead the Press Release
RENO, Nev. – A Reno man who actively sought babysitting opportunities with families with young girls so he could potentially exploit the children was sentenced Tuesday to 84 months in prison to be followed by a lifetime of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Aaron M. Quackenbush, 27, previously pleaded guilty to receipt of child pornography. He will be required to register as a sex offender under the Sex Offender Registration and Notification Act. United States District Judge Robert C. Jones presided over the sentencing hearing.
An investigation revealed that two IP addresses associated with Quackenbush’s residence were downloading child pornography. Quackenbush was interviewed by law enforcement. During his interview, Quackenbush admitted that he had downloaded videos and photos of child pornography for 12 years. When investigators sought to execute a search warrant at his home, Quackenbush deleted the Twitter application and files containing the child pornography from his cellphone. Law enforcement was able to recover his Twitter conversations which revealed dialogue with others about pornographic photos of young girls, Quackenbush’s desire to babysit young girls, as well as videos and photos of child pornography totaling 5,710 images as calculated under the sentencing guidelines.
The case was investigated by the FBI, the Washoe County Sheriff’s Office, and the Northern Nevada Cyber Center Crimes Against Children Task Force. Assistant U.S. Attorney Jim Keller prosecuted the case.
If you have information regarding the sexual exploitation of children, contact the National Center for Missing & Exploited Children Cyber Tipline at www.cybertipline.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Racine Man Convicted of Impersonating a DEA AgentRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on December 18, 2018, a jury in Milwaukee returned guilty verdicts on two charges of impersonating a Drug Enforcement Administration (DEA) agent against Jeremy C. Wade, (age: 29) of Racine. Wade had been charged with violating Title 18, United States Code, Section 912.
The evidence at trial showed that in January and February 2018, in Racine, Wade carried a firearm and wore an official-looking DEA badge in an encounter with a citizen in which Wade asked for information about a particular individual, and showed the citizen a supposed ‘mugshot’ photograph of the individual. The evidence at trial further showed that in February 2018, Wade renewed his request for information about the location of the wanted person by writing the citizen a note on his official-looking DEA business card and leaving it at the citizen’s residence.
Sentencing has been set for May 9, 2019, before United States District Judge Pamela Pepper. Each of the two counts of conviction carry maximum possible penalties of three years in prison and a fine of up to $250,000, or both.
United States Attorney Krueger stated, “It is critical that citizens be protected from unscrupulous people who would convincingly pretend – as the defendant did in this case – that they are federal law enforcement agents. We are committed to protecting the reputation and integrity of federal law enforcement agents, whose badges are earned, not purchased on the Internet.”
This matter was investigated by the Federal Bureau of Investigation and the Racine Police Department, and prosecuted by Assistant United States Attorneys Julie F. Stewart and Stephen A. Ingraham.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-97-1700
Providence Man Indicted, Arraigned on Firearms ChargesRead the Press Release
PROVIDENCE - A Providence man has been ordered detained in federal custody following his arrest on a grand jury indictment charging him with the illegal sale of a firearm to an out-of-state resident and possessing a firearm with an obliterated serial number.
According to information presented to the Court, it is alleged that on April 9, 2018, Diosvany Cabreja Reynosa, 20, sold an individual a 9mm pistol with an obliterated serial number, and on November 15, 2018, he sold a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) undercover agent, who lives in Massachusetts, a semi-automatic rifle with a drum magazine.
It is alleged that in the first transaction, Reynosa acknowledged to the buyer that he was selling him a firearm with an obliterated serial number. In the second transaction, it is alleged that the ATF undercover agent clearly stated to Reynosa, and that Reynosa was aware, that the buyer was a Massachusetts resident.
According to ATF records, Reynosa is not a federally licensed firearms dealer.
Reynoso was arrested on Tuesday and ordered detained at his arraignment before U.S. District Court Magistrate Judge Lincoln D. Almond. The grand jury indictment was returned on December 13, 2018.
Reynosa’s indictment and arrest are announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the Boston Field Division of the Bureau of ATF Kelly D. Brady, and Providence Police Chief Colonel Hugh T. Clements, Jr.
An indictment is merely allegations 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.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, the ATF Task Force, and the Providence Police Department, with the assistance of the Pawtucket Police Department.
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Providence Man Indicted on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE - A Providence man was arraigned today and ordered detained in federal custody on an indictment charging him with trafficking heroin and fentanyl, and for being a felon in possession of a firearm.
Antonio Rivera, 25, was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan at his arraignment in charges of distribution of heroin, distribution of fentanyl, and felon in possession of a firearm.
According to information presented to the Court, it is alleged that on April 27, 2018, Rivera sold an individual 60 grams of heroin, and that on October 23, 2018, he sold a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) undercover agent 8 grams of fentanyl and a semi-automatic rifle with a high capacity magazine.
Rivera’s indictment and arraignment are announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the Boston Field Division of the Bureau of ATF Kelly D. Brady, and Providence Police Chief Colonel Hugh T. Clements, Jr.
An indictment is merely an allegation 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.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, the ATF Task Force, and the Providence Police Department, with the assistance of the Pawtucket Police Department and the Rhode Island State Police High Intensity Drug Trafficking Area Task Force.
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Physician Assistant Sentenced to 10 Years in PrisonRead the Press Release
OAKLAND – David Lague was sentenced to 10 years in prison, and ordered to pay a $5,000 fine and for unlawfully distributing prescription drugs, announced United States Attorney Alex G. Tse, Drug Enforcement Administration Special Agent in Charge Chris Nielsen, and Health & Human Services, Office of Inspector General, Office of Investigations Special Agent in Charge Steven J. Ryan. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
On July 24, 2018, a jury found Lague guilty of 39 counts of unlawful distribution of controlled substances, in violation of 21 U.S.C. § 841(a)(1), after a two-week trial. During the trial, evidence showed that Lague intentionally prescribed drugs to five different patients, knowing that the prescriptions were outside the usual course of professional practice and without a legitimate medical purpose. The evidence showed that, on two occasions, a patient asked Lague to double his prescriptions for powerful opioids so that the patient could sell the drugs. Lague not only doubled the prescriptions, he also discussed with the patient how to do it in a way to avoid scrutiny by pharmacies or law enforcement. Lague admitted at trial that he wrote false medical records of those visits in order to cover up what he was doing. The evidence at trial also showed that Lague falsified records as to other patients as well, detailing exams that never took place and indicating that he had reviewed lab work that he never reviewed. An expert who reviewed four of Lague’s patient files found that his handling of those patients was an extreme departure from the standard of care. Further, the evidence at trial showed that, among physicians who prescribed opioids to 50 or more MediCare patients, Lague was the highest prescriber of opioids in California in 2015 and 2016.
“This case represents an important victory for the community in its fight against the diversion of prescription drugs,” U.S. Attorney Tse said. “The medical profession has made great strides in reforming prescribing practices, and the DEA has worked to decrease the total quantities of pills that pharmaceutical companies produce every year, all with the end of decreasing the numbers of powerful opioid pills getting into the hands of vulnerable members of our community,” he continued. “We appreciate and support their combined efforts. At the same time, we will not hesitate to charge and seek the conviction of those few medical professionals who have abandoned all pretense of providing patient care and instead use their power to prescribe for their own personal benefit. David Lague abused his power in this way. He showed no hesitation when asked to provide pills to someone who said he was going to sell them. There can be no greater abuse of the trust the community placed in him when it gave him the ability to prescribe. Lague’s conduct put a stain on the reputations of the thousands of doctors and physician assistants who try their hardest daily to provide compassionate, quality medical care to the patients they see.”
“Most physician assistants generally hold as their primary responsibility the health, safety, welfare and dignity of all human beings. Instead, Mr. Lague placed his own personal interests above protecting public health and safety, when he provided powerful narcotics outside the usual course of practice and without a medical purpose. This criminal behavior jeopardizes lives,” stated DEA Special Agent in Charge Nielsen. “DEA will continue to hold accountable those who engage in this type of illegal conduct.”
“Medical professionals who overprescribe deadly opioids threaten the health and safety of vulnerable individuals across the country,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “OIG along with our law enforcement partners will ensure that corrupt people, like David Lague, pay a heavy price for the criminal prescribing of opioids.”
In addition to the prison term, Judge Gilliam sentenced the defendant to a 3-year period of supervised release following incarceration, a $5,000 fine, and a $3,800 special assessment. Lague was immediately remanded into custody to begin serving his sentence.
The prosecution is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Philadelphia Man Convicted at Trial of Drug Charge and Bribing U.S. Postal CarrierRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Patrick Walker, 52, of Philadelphia, PA was convicted by a jury today of one count of bribery and one count of attempted possession with intent to distribute marijuana.
In January 2016, the defendant met and began a corrupt relationship with a U.S. mail carrier who delivered packages in Philadelphia. Thereafter, the defendant bribed the mail carrier to agree to divert to the defendant certain packages that had been placed in the U.S. mail. Under their arrangement, the mail carrier would bring certain packages directly to the defendant at various locations, rather than delivering those packages to the address specified on the package. In return, the defendant paid the mail carrier $35 per package.
On or about August 31, 2016, federal law enforcement agents investigating the importation of marijuana to Philadelphia observed and videotaped the mail carrier as he diverted a package to the defendant. During the period between January 10 and February 13, 2017, federal agents seized five packages that contained large quantities of marijuana that were to be diverted by the mail carrier to the defendant, under their corrupt arrangement.
“Bribing a government worker and drug trafficking are both serious crimes,” said U.S. Attorney McSwain. “Patrick Walker had no respect for the law and we are thankful to the jury for holding him accountable for his crimes. He was stopped from further breaking the law by the excellent law enforcement work of the U.S. Postal Service Office of Inspector General, Homeland Security Investigations, and the Pennsylvania Office of the Attorney General.”
The sentencing hearing is scheduled on March 19, 2019, before United States District Judge Gerald I. Pappert. The mail carrier has previously pleaded guilty to accepting bribes from the defendant and is awaiting sentencing.
The case was investigated by the U.S. Postal Service Office of Inspector General, Homeland Security Investigations, and the Pennsylvania Office of the Attorney General, and is being prosecuted by Assistant United States Attorneys Bea Witzleben and Timothy Stengel.
Philadelphia Man Admits Robbing 2 Pittsburgh-area BanksRead the Press Release
PITTSBURGH, Pa. – A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court on Monday to charges of bank robbery, United States Attorney Scott W. Brady announced today.
Germaine Kelly, 39, pleaded guilty to two counts before United States District Judge Cathy Bissoon. Judge Bissoon scheduled sentencing for May 16, 2019.
In connection with the guilty plea, the court was advised that on July 10, 2015, Kelly robbed the Dollar Bank located in Pleasant Hills, Pa. He presented a demand note for $10,000. The teller gave the defendant $1,115. On July 14, 2015, Kelly robbed the First National Bank in West Mifflin, PA. He presented a demand note for $5,000. The teller gave the defendant $8,370. Each note advised the teller not to place any dye packs or tracking devices with the money. In each note, Kelly also advised the teller to remember teller training and threatened to come back and kill the teller. Fingerprints lifted from the note left at First National Bank matched two of the defendant’s fingerprints. The defendant confessed to robbing both banks.
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 offenses and the prior criminal history, if any, of the defendant. Judge Bissoon ordered the defendant to remain detained pending sentencing.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police and the West Mifflin Police Departments conducted the investigation leading to the Indictment in this case through Project Safe Neighborhoods (PSN). 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.
Paterson, New Jersey, Woman and Man Sentenced to Prison Terms for Distributing Fake Percocet Pills Containing HeroinRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, woman and man were sentenced today to federal prison terms for their respective roles in conspiring to distribute thousands of pills containing heroin in New Jersey, U.S. Attorney Craig Carpenito announced.
Karen Rojas, 28, of Paterson, New Jersey, was sentenced today to 21 months in prison; Juan Vidal, 34, of Paterson, was sentenced on Dec. 18, 2018, to 30 months in prison. Both had previously pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to informations charging them with conspiring to distribute and possess with intent to distribute more than 100 grams of substances containing heroin.
According to documents filed in this case and statements made in court:
At their residence in Paterson, Rojas and Vidal manufactured pills that were made with heroin and that were made to resemble Percocet pills. Vidal used a press to make the pills and Rojas then sold the pills for approximately $5 dollars per pill. Between February 2018 and April 2018, Vidal manufactured, and Rojas sold, thousands of pills that were manufactured by Vidal.
On April 18, 2018, for example, in a recorded transaction, Rojas was asked by a cooperating witness for 100-150 heroin pills. Rojas sold the cooperating witness 40 heroin pills, for approximately $200, and Rojas indicated that Vidal needed to “get supplies,” meaning to purchase more heroin, in order to make additional pills.
In addition to the prison terms, Judge Walls sentenced each defendant to four years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel:
Rojas: Paul Uhlik Esq., Clifton, New Jersey
Vidal: Frank Sciro Esq., PatersonPaterson Police Officer Charged with Conspiring to Violate Civil RightsRead the Press Release
NEWARK, N.J. – A City of Paterson, New Jersey, police officer was arrested today and charged with violating the civil rights of a driver and passenger during a motor vehicle stop, U.S. Attorney Craig Carpenito announced.
Police Officer Matthew Torres, 30, of Paterson, was arrested by federal agents this morning and charged by complaint with conspiring to deprive individuals of civil rights under color of law. Torres is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
Torres and other Paterson police officers, including Eudy Ramos, have without justification stopped and searched motor vehicles and stolen cash and other items from the occupants. The officers sometimes used fake paperwork to trick individuals into believing that the cash seizures and vehicle stops were legitimate.
For example, on Dec. 7, 2017, Torres and Ramos conducted a vehicle stop in Paterson, searched the vehicle, driver, and passenger and placed the driver in one police car and the passenger in the other. The passenger told Torres and Ramos that he possessed two bags of marijuana and $3,100. Ramos took the money, placed it on the backseat of the vehicle and told the passenger that he did not care about the marijuana. Ramos told the passenger that they could not simply let him go because his activity likely had been picked up by Paterson police cameras. Ramos said he and Ramos could take $500 from the passenger, have him sign a piece of paper, and then give that paper to the narcotics division. Ramos then placed a call, purportedly to his superior, and told the passenger that the superior officer said it had to be $800. Ramos took out a piece of white paper, wrote something on it, and told the passenger to sign it. The passenger did not know what was written on the paper. Afterwards, Torres and Ramos released the driver and passenger. According to the passenger, there was $1,000 missing from his original $3,100. Torres and Ramos shared the stolen cash proceeds. They did not report the illegal cash seizure to the Paterson Police Department.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, with the investigation leading to today’s arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Passaic County Man Sentenced to 27 Months in Prison for Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Totowa, New Jersey, man was sentenced today to 27 months in prison for knowingly possessing a firearm as a previously convicted felon and trying to bring a loaded gun onto a plane, U.S. Attorney Craig Carpenito announced.
Laron L. James, a/k/a/ “Juelz Santana,” 36, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to both counts of an indictment charging him with possession of a firearm by a convicted felon and carrying a weapon on an aircraft. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
James admitted that on March 9, 2018, he knowingly possessed a loaded Derringer .38 caliber handgun despite the fact he was prohibited from possessing firearms due to his December 2012 conviction in Bergen County Superior Court for manufacturing and distributing a controlled dangerous substance. James also admitted that on that date, he attempted to bring the loaded gun onto a flight from Newark to San Francisco. The gun was discovered during the X-Ray screening of James’s luggage before he could board the flight.
In addition to the prison term, Judge Chesler sentenced James to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Palm Beach Sales Representative Sentenced to Prison for Money Laundering Scheme Involving Alcohol and Drug Addiction Treatment Centers and Clinical LaboratoriesRead the Press Release
A top sales representative was sentenced to prison today for his participation in a money laundering conspiracy involving alcohol and drug addiction treatment centers and clinical laboratories.
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; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak OIG); Isabel Colon, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB); and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) made the announcement.
Lanny Fried, 41, of Miami Beach, previously pled guilty to one count of conspiracy to commit money laundering. U.S. District Judge Robin L. Rosenberg sentenced Fried to 57 months in prison, to be followed by 3 years of supervised release. He was also ordered to pay a $81,163.17 fine.
According to court documents, Smart Lab LLC of Palm Beach Gardens was established by Chief Executive Officer H. Hamilton Wayne, a/k/a “Hawkeye,” and Chief Operating Officer Justin Morgan Wayne, to perform confirmatory urinalysis testing. Smart Lab, H. Wayne and J. Wayne established bank accounts to receive proceeds of insurance claims for medically unnecessary urinalysis testing and to pay kickbacks and bribes to individuals and entities that referred urine samples to Smart Lab for testing.
Fried, a top Smart Lab sales representative, had an agreement with Smart Lab to receive commissions of approximately 50% of the insurance reimbursements for the substance abuse treatment facilities he referred to Smart Lab. These payments were classified as commissions when in reality they were kickbacks for the referral of excessive, medically unnecessary, fraudulent and duplicative confirmatory drug testing. Fried served as the sales representative for Smart Lab’s largest account, Reflections Treatment Center in Margate, Florida. Fried used a portion of these commissions to pay Reflections’ owner, Kenneth Chatman, illegal cash kickbacks to induce him to continue referring urine samples to Smart Lab. Using Fried as a “middleman” for the payments to Chatman disguised the true ownership and purpose of the funds. From 2005 through 2017, Smart Lab paid Fried over $600,000. These payments came from proceeds of health care fraud.
Fried also recruited friends and business associates to engage in similar activity. These individuals signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to Fried and others were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Fried and the others involved did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud. These funds were then disbursed to others, per Fried’s instructions.
H. Hamilton, J. Wayne and Smart Lab previously pled guilty to one count of conspiracy to commit health care fraud. U.S. District Judge Donald M. Middlebrooks sentenced H. Wayne to 63 months in prison, J. Wayne to 46 months in prison, and the corporation to 3 years of probation. The three defendants were jointly and severally ordered to pay $2,897,389.50 in restitution to the victims of their offenses. H. Wayne was separately ordered to pay $954,344 to the TRICARE program for his involvement in fraud at RX to You, along with a $50,000 fine. J. Wayne was separately ordered to pay a $20,000 fine.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, NICB and DCIS. These and related cases are being prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
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 on http://pacer.flsd.uscourts.gov at www.usdoj.gov/usao/fls.
Otter Tail Country Violent Felon Charged with Illegal Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ANTHONY DALE RANDKLEV, 39, with illegally possessing a firearm. RANDKLEV has been previously convicted of multiple violent offenses, including assault, drug, and kidnapping convictions, which prohibit him, under federal law, from owning or possessing a firearm.
According to the indictment, on or about July 22, 2018, the defendant possessed a Remington model 870 12-gauge shotgun. If convicted of the federal charge, RANDKLEV faces a mandatory minimum sentence of 15 years in federal prison.
RANDKLEV is also indicted in Otter Tail County District Court on three counts of first-degree criminal sexual conduct, as well as one count each of kidnapping, first-degree burglary, false imprisonment, felon in possession of a firearm, and fleeing a police officer. He is currently in custody in the Otter Tail County Jail.
This case is the result of an investigation conducted by the ATF, the Otter Tail County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Otter Tail County Attorney’s Office. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
Anthony Dale Randklev, 39
Pelican Rapids, Minn.
Charges:
- Felon in Possession of a Firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Nine Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
A federal grand jury returned a seventh superseding indictment Monday charging nine men in connection with a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
Charged in the seven-count superseding indictment are Junior Noe Alvarado-Requeno, aka “Insolente,” and “Trankilo,” 22, of Landover, Maryland; Michael Eduardo Contreras, aka “Katra,” and “Insoportable,” 24, of Silver Spring, Maryland; Luis Fernando Orellana-Estrada, aka “Pinguino,” 19, of Hyattsville, Maryland; Kevin Alexander Soriana-Hernandez, aka “Brocha,” 19, of Riverdale, Maryland; Carlos Daniel Cardenas-Banegas, aka “Perrico,” 20, of Riverdale, Maryland; Wilfredo Cardenas-Banegas, aka “Torro,” 25, of Riverdale, Maryland; Luis Arnoldo Flores-Reyes, aka “Maloso,” and “Lobo,” 37, of Arlington, Virginia; Miguel Angel Corea Diaz, aka “Reaper,” 36, of Long Branch, New Jersey, Jairo Arnaldo Jacome, aka “Abuelo,” 36, of Langley Park, Maryland.
Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office, Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Aisha Braveboy and Montgomery County State’s Attorney John McCarthy made the announcement.
The superseding indictment alleges that from at least prior to in or about 2015 through at least in or about January 2018, the defendants, as members and associates of MS-13, engaged in a racketeering conspiracy that included extortion, drug trafficking, money laundering, robbery, murder, and conspiracy to commit murder. Jacome was a member and associate of the Langley Park Salvatrucha Clique of MS-13. All other defendants were members and associates of the Sailors Clique of MS-13.
Alvarado-Requeno, Contreras, Orellana-Estrada, Soriana-Hernandez, Wilfredo Cardenas-Banegas, Carlos Cardenas-Banegas, and Flores-Reyes were charged in a previous indictment with conspiracy to participate in a racketeering enterprise for their alleged involvement in a variety of violent acts taken by the Sailors Clique of MS-13, including multiple murders. Corea Diaz and Jacome are also charged with RICO conspiracy in the seventh superseding indictment, in which additional murders have been charged. Specifically, the indictment charges that in June 2016, Alvarado-Requeno and Contreras allegedly planned with and directed other members and associates of MS-13 to search for and murder gang rivals known as “chavalas” in and around Hyattsville, Maryland. On June 8, 2016, Alvarado-Requeno and Contreras directed lower-ranking members of MS-13 to murder two individuals who were believed to be members of the 18th Street gang. Pursuant to this plan and as directed by Alvarado-Requeno and Contreras, MS-13 members and associates stabbed the two victims to death in Hyattsville, Maryland.
The indictment further charges that, on Dec. 4, 2016, Alvarado-Requeno, Contreras, Jacome and other members and associates of MS-13 allegedly traveled to Germantown, Maryland with a machete and other weapons with the purpose of murdering an individual as punishment for his infractions against the gang. They stabbed the victim to death, but fled the area leaving the victim’s body near a creek. The next day, Jacome and other members and associates of MS-13 returned to Germantown to bury the body of the victim.
The indictment further charges that, on March 27, 2017, Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz allegedly arranged for members and associates of the Sailors Clique to travel from Maryland to Lynchburg, Virginia for the purpose of murdering an individual in the Lynchburg area. Flores-Reyes provided the vehicle in which the members and associates drove and called them to provide encouragement to murder the victim. The victim was murdered that same day in Bedford County, Virginia. On March 27 and March 28, 2017, multiple individuals were arrested in connection with the murder. Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz made phone calls on those dates trying to locate the individuals who had gone to Virginia to commit the murder. Two of the participants in the murder escaped from Bedford County and were hidden in Maryland by members and associates of the Sailors Clique.
In addition to the new charges in the RICO conspiracy, Alvarado-Requeno, Contreras and Jacome are charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with the Dec. 4, 2016 murder. Alvarado-Requeno is also charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with a Gaithersburg, Maryland murder that took place on June 16, 2016. Jacome is charged with conspiracy to interfere with interstate commerce by extortion. All defendants are in custody.
According to the superseding indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
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.
FBI Washington and Baltimore Field Offices, HSI Baltimore, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office investigated this case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick and Daniel C. Gardner of the District of Maryland are prosecuting this case.
Nine Alleged MS-13 Members Charged Federally for Their Participation in a Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland –A federal grand jury returned a seventh superseding indictment on December 17, 2018, charging nine men in connection with a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13. The seventh superseding indictment adds two new defendants charged with racketeering conspiracy related to their membership in MS-13, and adds four murders as overt acts allegedly committed by the defendants charged in this indictment.
Charged in the seven-count superseding indictment are Junior Noe Alvarado-Requeno, a/k/a “Insolente,” and “Trankilo,” age 22, of Landover, Maryland; Michael Eduardo Contreras, a/k/a “Katra,” and “Insoportable,” age 24, of Silver Spring, Maryland; Luis Fernando Orellana-Estrada, a/k/a “Pinguino,” age 19, of Hyattsville, Maryland; Kevin Alexander Soriana-Hernandez, a/k/a “Brocha,” age 19, of Riverdale, Maryland; Carlos Daniel Cardenas-Banegas, a/k/a “Perrico,” age 20, of Riverdale, Maryland; Wilfredo Cardenas-Banegas, a/k/a “Torro,” age 25, of Riverdale, Maryland; Luis Arnoldo Flores-Reyes, a/k/a “Maloso,” aka “Lobo,” age 37, of Arlington, Virginia; Miguel Angel Corea Diaz, a/k/a “Reaper,” age 36, of Long Branch, New Jersey; and Jairo Arnaldo Jacome, a/k/a “Abuelo,” age 36, of Langley Park, Maryland.
The superseding indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division; Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office; Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Interim Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
The superseding indictment alleges that from prior to 2015 through at least January 2018, the defendants, as members and associates of MS-13, engaged in a racketeering conspiracy that included extortion, drug trafficking, money laundering, murder, conspiracy to commit murder, and robbery. Jacome was a member and associate of the Langley Park Salvatrucha Clique of MS-13. All other defendants were members and associates of the Sailors Clique of MS-13.
Alvarado-Requeno, Contreras, Orellana-Estrada, Soriana-Hernandez, Wilfredo Cardenas-Banegas, Carlos Cardenas-Banegas, and Flores-Reyes were charged in a previous indictment with conspiracy to participate in a racketeering enterprise for their involvement in a variety of violent acts committed by the Sailors Clique of MS-13, including multiple murders.
The new defendants and charges added in the seventh superseding indictment include the following:
First, alleged MS-13 members Corea Diaz and Jacome have been added as defendants, and are now charged with RICO conspiracy in the seventh superseding indictment.
Second, the seventh superseding indictment now references four additional murders as overt acts taken in furtherance of the racketeering conspiracy:
• Specifically, the indictment charges that in June 2016, Alvarado-Requeno and Contreras planned with and directed other members and associates of MS-13 to search for and murder gang rivals known as “chavalas” in and around Hyattsville, Maryland. On June 8, 2016, Alvarado-Requeno and Contreras directed lower-ranking members of MS-13 to murder two individuals who were believed to be members of the rival 18th Street gang. Pursuant to this plan and as directed by Alvarado-Requeno and Contreras, MS-13members and associates stabbed the two victims to death.
• Alvarado-Requeno, Contreras, Jacome also are now charged in the 2016 murder of a victim in Germantown, Maryland. On Dec. 4, 2016, Alvarado-Requeno, Contreras, Jacome and other members and associates of MS-13 traveled to Germantown with a machete and other weapons with the purpose of murdering an individual as punishment for his infractions against the gang. They stabbed the victim to death, but fled the area leaving the victim’s body near a creek. The next day, Jacome and other members and associates of MS-13 returned to Germantown to bury the body of the victim.
• Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz also are now charged in the 2017 murder of a victim in Lynchburg, Virginia. On March 27, 2017, Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz arranged for members and associates of the Sailors Clique to travel from Maryland to Lynchburg for the purpose of murdering an individual in the Lynchburg area. Flores-Reyes provided the vehicle in which the members and associates drove and called them to provide encouragement to murder the victim. The victim was murdered that same day in Bedford County, Virginia. On March 27 and March 28, 2017, multiple individuals were arrested in connection with the murder. Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz made phone calls on those dates trying to locate the individuals who had traveled to Virginia to commit the murder. Two of the participants in the murder escaped from Bedford County and were hidden in Maryland by members and associates of the Sailors Clique.
In addition to the new charges in the RICO conspiracy, Alvarado-Requeno, Contreras, Jacome are charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with the Dec. 4, 2016 murder. Alvarado-Requeno is also charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with a Gaithersburg, Maryland murder that took place on June 16, 2016. Jacome is charged with conspiracy to interfere with interstate commerce by extortion. All defendants are in custody.
According to the superseding indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
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.
U.S. Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski thanked the FBI Washington and Baltimore Field Offices, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their work in this investigation. Mr. Hur and Mr. Benczkowski commended Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
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New York Resident Pleads Guilty to Employment Tax FraudRead the Press Release
A Suffolk County, New York, resident pleaded guilty today to failing to account for and pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Scott Warner owned and operated a temporary employment agency in Suffolk County, New York, that did business under multiple names, including Around the Clock Staffing Inc., Your Staffing Service Inc., Your Staffing Services Inc., Revlis Consulting Corp., and City Consulting Corp. Warner was responsible for withholding federal income tax, Social Security and Medicare taxes from his employees’ wages, paying the taxes over to the IRS, and filing employment tax returns. Despite this obligation, Warner failed to pay over to the IRS approximately $687,480 withheld from employee wages from Oct. 2012 through Dec. 2016.
Warner faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark Kotila and Ann M. Cherry, who are prosecuting this case.
Navy Veteran Charged with Kidnapping Resulting in DeathRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging Navy veteran Eric Brian Brown with kidnapping resulting in the death of Ashanti M. Billie, a 19-year-old Virginia Beach college student.
According to allegations in the indictment, Brown, 46, abducted Billie in September 2017 on the Joint Expeditionary Base Little Creek-Fort Story. Brown then transported Billie against her will and across state lines from Virginia to North Carolina. Billie died as a result of the kidnapping.
If convicted of kidnapping resulting in death, Brown faces a maximum penalty of death and a mandatory minimum sentence of life in prison. Brown is also charged with assault resulting in serious bodily injury and theft. If convicted of those two offenses, he faces a maximum penalty of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors and requirements.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Larry D. Boone, Chief of Norfolk Police; James A. Cervera, Chief of Virginia Beach Police; and Kerr Putney, Chief of Charlotte-Mecklenburg Police, made the announcement after the indictment was returned. Assistant U.S. Attorneys Kevin M. Comstock, Randy C. Stoker and William B. Jackson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
N.Y. Man Convicted for Knowingly Passing Counterfeit MoneyRead the Press Release
PROVIDENCE – A Bronx, New York man was convicted in U.S. District Court in Providence today of passing counterfeit money in September 2017 in stores at a Cranston shopping center.
Christopher Modesto, 22, was found guilty by U.S. District Court Chief Judge William E. Smith of passing counterfeit obligations or securities. The verdict was announced immediately following the completion of a bench trial that began earlier in the day.
Modesto’s guilty verdict is announced by United States Attorney Stephen G. Dambruch, Cranston Police Chief Colonel Michael J. Winquist, and Special Agent in Charge of the U.S. Secret Service Stephen Marks.
According to court documents, on September 29, 2017, Modesto and two unidentified accomplices passed a total of $5,000 worth of counterfeit $100 bills to successfully make purchases at a number of retail stores. The government’s evidence showed that Modesto passed counterfeit $100 bills at at least three retail stores, of which two attempts were successful.
Cranston Police were notified by shopping center security that several stores were experiencing incidents of counterfeit cash being passed to cashiers. Based on a description of one of the individuals provided by some store employees, Modesto was located inside a store and was seen attempting to make a purchase using a counterfeit $100 bill. He was immediately arrested by Cranston Police.
It was the third store Modesto is known to have passed counterfeit $100 bills on that day. One other attempt was successful. Another attempt was unsuccessful when a cashier refused to accept the bogus $100 bills.
Modesto is scheduled to be sentenced on March 22, 2019. Uttering counterfeit obligations or securities is punishable by statutory penalties of up to 20 years imprisonment, not more than 3 years supervised release, and a fine of up to $250,000.
Modesto, who had been free on unsecured bond while awaiting trial, was ordered remanded to the custody of the U.S. Marshals Service and detained while awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
The matter was investigated by the Cranston Police Department and the United States Secret Service.
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Moss Point Man Sentenced to over Nine Years in Federal Prison for Crack and Cocaine ConspiracyRead the Press Release
Gulfport, Miss. – Thomas Earl Armstrong, 42, of Moss Point, was sentenced yesterday by U.S. District Judge Louis Guirola, Jr. to 109 months in federal prison, followed by 3 years of supervised release, for conspiracy to possess with intent to distribute cocaine and cocaine base, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI) in Mississippi. Armstrong was also ordered to pay a $5,000 fine. He pled guilty before Judge Guirola on July 31, 2018.
The FBI Safe Streets Task Force in Pascagoula started investigating Armstrong after learning he was involved with selling narcotics in Jackson County. Among other things, the FBI used a confidential informant to purchase cocaine and crack from Armstrong on at least three separate occasions. During the investigation, agents learned Armstrong was selling narcotics to numerous individuals. It was also learned that Armstrong instructed individuals to come to his house in Moss Point where he would sell them crack or cocaine.
The case was investigated by the FBI Safe Streets Task Force and the South Mississippi Metro Enforcement Team. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Moss Point Man Sentenced to Nearly 20 Years in Federal Prison for Cocaine ConspiracyRead the Press Release
Gulfport, Miss. – Keith Lavell Brown, 46, of Moss Point, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 235 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute 5 kilograms or more of cocaine, announced U.S. Attorney Mike Hurst, DEA Assistant Special Agent in Charge Derryle Smith, and FBI Special Agent in Charge Christopher Freeze. Brown was also ordered to pay a $35,000 fine.
During his plea on August 15, 2018, Brown admitted to being involved in a conspiracy to bring cocaine to the Mississippi Gulf Coast starting in 2015 until August 2017. On one occasion, in March 2016, Brown’s cousin was stopped in Louisiana and, upon his arrest, Louisiana State Police located 15 kilograms of cocaine inside his vehicle. During the DEA and FBI’s investigation, they determined that Brown had conspired with his cousins and others to have the cocaine brought from Texas to Mississippi. Brown and another individual with Mexican cartel connections actually followed his cousin’s vehicle prior to it being stopped.
After the stop in Louisiana, another individual was stopped in Mississippi driving an RV. During the stop, the RV was searched and law enforcement located 11 kilograms of cocaine hidden inside. During the investigation into the stop of the RV, DEA and FBI agents learned that the kilograms of cocaine were supposed to be delivered to Brown and others in Moss Point. Further information and evidence also showed that the cocaine located in the RV was not the driver’s first time to deliver cocaine to Brown. The driver had previously had a successful delivery of 13 kilograms of cocaine to Brown.
In total, the Court held Brown accountable for 49 kilograms of cocaine during the period of the conspiracy.
The case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Morris County, New Jersey, Man Sentenced to One Year in Prison for Conspiring to Commit Strong-Arm ExtortionRead the Press Release
NEWARK, N.J. – A Kenvil, New Jersey, man was sentenced today to 12 months and one day in prison for conspiring with a former Middlesex Borough fire inspector to use threats of violence to extort cash payments from the owner of a real estate development company, U.S. Attorney Craig Carpenito announced.
Joseph P. Martinelli, 65, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with conspiring to commit extortion using threats of force, violence, and fear. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From December 2016 through June 2017, Martinelli conspired with Billy A. Donnerstag, 49, of Hackettstown, New Jersey, then a fire inspector for Middlesex Borough and other New Jersey municipalities, to extort the owner and operator of a real estate development and construction company, referred to in the information as “Individual 1,” using threats of physical harm if Individual 1 did not pay Martinelli and Donnerstag thousands of dollars.
Martinelli and Donnerstag agreed that the pretext for demanding money would be that Individual 1 supposedly didn’t pay enough for a property he bought from Martinelli in 2007. In a series of telephone and in-person conversations with Individual 1, Martinelli and Donnerstag demanded money from Individual 1 by suggesting that Individual 1 would be physically harmed by Donnerstag if Individual 1 refused.
Martinelli and Donnerstag obtained $15,000 in cash from Individual 1 over two separate meetings. The cash had been provided by the FBI. Donnerstag previously pleaded guilty and was sentenced on Oct. 23, 2018, to 34 months in prison.
In addition to the prison term, Judge Arleo sentenced Martinelli to three years of supervised release, one year of which will be home incarceration.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Brian N. DiGiacomo Esq., Madison, New Jersey
Morgan County Sheriff Agrees to Plead Guilty to Failure to File a Tax ReturnRead the Press Release
BIRMINGHAM – Morgan County Sheriff ANA WOODARD FRANKLIN has been charged in a one-count information charging failure to file a tax return announced U.S. Attorney Jay E. Town and IRS-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
A one-count information filed in United States District Court today, charges ANA WOODARD FRANKLIN, 54, of Hartsell, with willfully failing to file a personal income tax return for tax year 2015.
“We expect all of our citizens, to include and especially our public officials to promptly and accurately file their tax returns,” Town said. “The Department of Justice will continue to federally charge those who fail to do so. We appreciate the investigative work of IRS-CID and FBI Birmingham.”
"As we approach the tax filing season, this case should be an example of what happens when you fail to file and pay your taxes,” Holloman said. “Doing so may subject you to significant penalties, fines, and the possibility of jail time.”
The penalty for willfully failing to file a tax return is a maximum of 1 year in prison and a maximum fine of $100,000.
IRS-CID investigated the case along with FBI Birmingham. Assistant U.S. Attorney Robert O. Posey is prosecuting.
Mishawaka Indiana Man SentencedRead the Press Release
SOUTH BEND - Jerome Sells, age 40, of Mishawaka, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possession of over 500 grams of methamphetamine with intent to distribute and being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Sells was sentenced to 180 months imprisonment followed by 5 years of supervised release.
According to documents in this case, on February 28, 2018, Sells possessed 790 grams of methamphetamine as well as 1.2 kilograms of marijuana, a Taurus handgun and a Jimenez handgun at an auto shop that he operated in Mishawaka, Indiana. He admitted that he intended to distribute the methamphetamine and that he knew it was illegal for him to possess the firearms because he had previously been convicted of a felony. Sells has been convicted of ten misdemeanors and three felonies.
This case is being investigated by ATF with the assistance of the Indiana State Police, Elkhart County Police, St. Joseph County Police, the St. Joseph County Drug Investigations Unit, the South Bend Police, and the Mishawaka Police. The case is being handled by Assistant U.S. Attorney Joel Gabrielse.
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Milwaukee, WI, Man Sentenced for His Role in a Drug Conspiracy Resulting in Death and Serious Bodily InjuryRead the Press Release
FARGO: United States Attorney Christopher C. Myers announces that on December 18, 2018, U.S. District Judge Mark W. Bennett, Northern District of Iowa, sitting by designation, sentenced JOVAN MARQUIS HARRIS, age 28, of Milwaukee, WI, on a charge of Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Death and Serious Bodily Injury; three counts of Distribution of a Controlled Substance Resulting in Death or Serious Bodily Injury; and two counts of Distribution of a Controlled Substance. Judge Bennett sentenced Harris to a period of 25 years in federal prison on each of four counts related to distributing heroin resulting in death or serious bodily injury, and 20 years on the final two counts, all of the sentences to be served concurrently. Harris was also ordered to pay $10,715.41 in restitution for funeral expenses, $600 in special assessments, and will serve 5 years of supervised release after his incarceration.
Law enforcement’s investigation into a spike in the heroin overdose deaths of individuals in the Fargo-Moorhead area between September 2015 and April 2016 resulted in the indictment of Harris for the overdose death of one person in Moorhead, MN, on September 1, 2015, and the non-fatal overdoses of two individuals in Fargo, ND, on August 27 and September 1, 2015. Harris also sold heroin on two occasions in March 2016 to a confidential informant in Fargo, ND. The heroin Harris was distributing was brought to the Fargo-Moorhead area from Milwaukee, WI.
Harris was convicted by a Fargo jury on May 14, 2018, following a six-day trial.
U.S. Attorney Myers stated, "As we are painfully aware, many families in our community have been ripped apart by the scourge of opiates. We will continue to aggressively pursue those individuals who seek to profit from the death and destruction of drug trafficking. The sentence in this case sends another strong message that in North Dakota drug traffickers will be held accountable. We must not lose sight of the fact that this is a community-wide problem that needs a community solution - everyone must continue the fight, together. I want to commend the excellent work of this team of prosecutors, support staff, and law enforcement in bringing some measure of justice for the victims in this case.”
This case was investigated by the Drug Enforcement Administration, Moorhead Police Department, Cass County Drug Task Force, Cass County Sheriff’s Office, and North Dakota Bureau of Criminal Investigation, with assistance from Cass County State’s Attorney, North Dakota Crime Lab, Minnesota BCA Crime Lab, and Ramsey County (MN) Medical Examiner.
This case was prosecuted by Assistant U.S. Attorney Brett Shasky and Assistant U.S. Attorney Jake Rodenbiker
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http://www.usdoj.gov/usao/nd/
Michigan Corrugated Manufacturer Agrees to Pay $400,000 to Settle False Claims Act ViolationsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Arvco Container Corporation of Kalamazoo, Michigan has agreed to pay the United States $400,000 to settle False Claims Act allegations in connection with a contract with the Defense Logistics Agency Acquisition Operations (DLA) in New Cumberland, Pennsylvania.
According to United States Attorney David J. Freed, Arvco Container Corporation (Arvco) violated subcontract limitations imposed by federal regulations and the terms of a contract to provide corrugated boxes to the federal government from August 3, 2010 through August 3, 2014. The contract was awarded by the DLA in New Cumberland, Pennsylvania to Fibre Technologies LLC (Fibre) located in Reading, Pennsylvania. The contract was set-aside for eligible HUBZone small businesses in accordance with program requirements administered by the U.S. Small Business Administration. Federal regulations and the terms of the contract limited Fibre’s ability to subcontract the manufacturing of the boxes to no more than 50 percent. Arvco performed 100 percent of the manufacturing requirement. Arvco’s gross profits for the performance of the Contract total $246,682 which will be returned to DLA. Arvco also agreed to pay a civil penalty amount of $153,318.
“I commend the dogged investigative efforts of our partners at SBA/OIG and DCIS in this case,” said U.S. Attorney Freed. “Their outstanding efforts and the excellent legal work by AUSA Timothy Judge have ensured that Arvco’s ill-gotten profits have been returned, and an appropriate penalty has been assessed to deter other contractors from this behavior in the future. The United States Attorney’s office is steadfastly dedicated to protecting the resources entrusted to us by the taxpayers.”
“Limitations on subtracting ensure that otherwise ineligible businesses don’t use small or disadvantaged businesses merely as vehicles to access set-aside contracts,” said Inspector General Hannibal “Mike” Ware. “OIG will aggressively investigate violations of limitations on subcontracting to protect the integrity of SBA’s set-aside contracting programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication throughout this investigation.”
"Today's settlement agreement is the successful result of a joint investigative effort by the U.S. Attorney's Office, SBA-OIG and the Defense Criminal Investigative Service (DCIS)," stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. "DCIS will continue to work with its law enforcement partners to ensure the integrity of the Defense procurement process."
SBA’s General Counsel Christopher Pilkerton said, “The settlement in this matter demonstrates the excellent results achieved through the combined efforts of federal agencies to uncover and forcefully respond to procurement fraud. SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs."
This case was investigated by the United States Attorney’s Office for the Middle District of Pennsylvania, the U.S. Small Business Administration Office of Inspector General, and the Defense Criminal Investigative Service. The case was litigated by Assistant United States Attorney Timothy S. Judge.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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McAllen Man Sent to Prison in Health Care Fraud ConspiracyRead the Press Release
McALLEN, Texas – An operator of a durable medical equipment (DME) company was ordered to federal prison following his admission of defrauding Medicaid, announced U.S. Attorney Ryan K. Patrick. George Louis Moreno, 59, of McAllen, pleaded guilty Jan. 24, 2018.
Today, U.S. District Judge Micaela Alvarez handed Moreno a 36-month sentence to be immediately followed by three years of supervised release. Moreno was also ordered to pay approximately $1.5 million in restitution to the Texas Medicaid Program.
Moreno was the owner and operator of MARS DME Inc. located in McAllen. From August 2008 to January 2016, Moreno submitted numerous false and fraudulent claims for incontinence supplies, resulting in approximately $1.5 million loss to Medicaid. Specifically, Moreno submitted claims for incontinence supplies that were not delivered to beneficiaries. In many instances, Moreno billed Medicaid for large quantities of higher-reimbursing incontinence supplies, when in fact the company was delivering smaller quantities of inexpensive supplies to recipients. Moreno also paid cash to some beneficiaries in lieu of delivering supplies.
Moreno was permitted to remain on bond and voluntarily surrender Jan. 2, 2019.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services‐Office of Inspector General, FBI and Texas health and Human Services Commission conducted the investigation. Assistant U.S. Attorney (AUSA) Andrew Swartz and Special AUSA Marian Swanberg are prosecuting the case.
Manhattan U.S. Attorney Announces Bank Secrecy Act Charges Against Kansas Broker DealerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced criminal charges against Central States Capital Markets, LLC (“CSCM”), consisting of one felony violation of the Bank Secrecy Act (“BSA”), based on CSCM’s willful failure to file a suspicious activity report (“SAR”) regarding the illegal activities of its customer Scott Tucker. Today’s charge represents the first criminal BSA charge ever brought against a United States broker-dealer. The case is assigned to United States District Judge Paul J. Oetken.
Mr. Berman also announced an agreement (the “Agreement”) under which CSCM agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay a $400,000 penalty, and continue to enhance its BSA/Anti-Money Laundering (“AML”) compliance program. Assuming CSCM’s continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of two years, after which time the Government will seek to dismiss the charges. The penalty shall be collected through CSCM’s forfeiture to the United States of $400,000 in a civil forfeiture action also filed today.
U.S. Attorney Geoffrey S. Berman stated: “CSCM’s anti-money laundering program was operated with serious gaps in oversight, responsiveness, and diligence. As a result, CSCM failed to investigate and report suspicious transactions relating to a historically significant pay-day lending fraud. With today’s resolution, CSCM has accepted responsibility for its criminal conduct and committed to completing the reform of its anti-money laundering program. Today’s charge makes clear that all actors governed by the Bank Secrecy Act – not only banks – must uphold their obligations to protect our economy from exploitation by fraudsters and thieves.”
According to the documents filed today in Manhattan federal court:
The Tucker Payday Lending Scheme
On October 13, 2017, Scott Tucker and his attorney, Timothy Muir, were convicted after trial in the United States District Court for the Southern District of New York of racketeering, wire fraud and money laundering for their roles in perpetrating a massive payday lending scheme. As the jury found, from in or about the late 1990s through in or about 2013, through various companies that he owned and controlled (the “Tucker Payday Lenders”), Tucker extended short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” to individuals around the country at interest rates as high as 700% or more and in violation of the usury laws of numerous states, including New York. Tucker sought to inoculate himself against applicable usury laws by entering into a series of sham relationships with certain Native American tribes (the “Tribes”) in order to conceal his ownership and control of the Tucker Payday Lenders and gain the protection of tribal sovereign immunity – a legal doctrine that generally prevents states from enforcing their laws against Native American tribes. To effectuate his scheme, Tucker assigned nominal ownership of his payday lending companies to certain corporations created under the laws of the tribes (the “Tribal Companies”).
CSCM’s Willful Failure to File a SAR in Violation of the BSA
CSCM failed to follow its written customer identification procedures and did not act upon red flags prior to opening investment accounts for the Tribal Companies, which were in fact controlled by Tucker. CSCM discussed opening these accounts exclusively with Scott Tucker and his brother Blaine (the “Tuckers”). Although CSCM received account opening documents signed by tribal officials granting only Blaine Tucker authorization over the accounts, CSCM routinely dealt with and took direction from Scott Tucker concerning the management of funds in the Tribal Companies’ accounts based solely on Scott Tucker’s oral assertions that he was a “consultant” to the Tribes. At no point did CSCM obtain written verification of Tucker’s authority over the accounts.
CSCM also disregarded red flags that were known prior to opening the accounts. In March 2012, Tucker explained to the CEO that he was involved in the payday lending business and that he had approached certain Native American tribes to operate the payday lending business in order to take advantage of the tribes’ sovereign immunity. Tucker further explained that the payday lending business had generated large cash reserves and that he was approaching CSCM because the business’s existing bank, a small bank based in Florida (the “Florida Bank”), had asked Tucker to move excess accumulations of cash because of certain regulatory requirements it was unable to meet. Neither the CEO, nor anyone at CSCM, attempted to verify this explanation.
Shortly thereafter, CSCM also became aware of additional red flags concerning the Tuckers and the Tribal Companies. Specifically, CSCM learned that Tucker had been convicted of fraud in 1991 and, separately, found news reports from as early as 2011 alleging that the Tuckers were engaging in a “rent-a-tribe” scheme in which the Tribal Companies were used by the Tuckers to claim ownership and control over the payday lending businesses in order to exploit the Tribal Companies’ ability to assert sovereign immunity as a defense to charges that the payday lending business violated state usury laws. CSCM also became aware of an action brought by the Federal Trade Commission (“FTC”) against the Tuckers and the Tribal Companies, among others, for engaging in unfair business practices, which included allegations that the Tribal Companies were not protected by sovereign immunity. CSCM, including its CEO, did not act upon these red flags because Tucker assured CSCM that the FTC action would soon be resolved and all challenges brought by state regulators had been unsuccessful due to sovereign immunity.
In addition to ignoring these various warning signals, CSCM failed to monitor any transactions using Actimize, the AML tool provided to CSCM for that purpose. Between December 2011 and December 2015, Actimize generated 103 alerts, but CSCM never checked any of the alerts, made any attempt to customize Actimize’s default parameters, or undertook a review to ensure that this tool was sufficient for its specific monitoring needs or was being appropriately utilized. Further, although the Clearing Firm furnished CSCM with the ability to generate a report reflecting, among other things, the identities of third parties transferring funds via wire transactions to CSCM account holders, CSCM never generated such reports.
Numerous suspicious transactions went undetected and unreported by CSCM. For example, between December 21, 2012, and March 13, 2013, 18 wire transfers totaling $40,518,000 were sent from accounts at the Florida Bank in the names of Tribal Companies to Tucker’s personal CSCM account. The transfers were in even dollar amounts, and on several occasions two different Tribal Companies, associated with different tribes, transferred the same dollar amounts, on the same day, to Tucker’s personal CSCM account. CSCM never asked Tucker or the Tribal Companies about any of these transactions.
Despite producing documents in connection with this Office’s criminal investigation and its awareness of the indictment against Tucker, CSCM did not file a SAR until long after Tucker was convicted at trial.
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The Government intends to recommend that the amounts forfeited by CSCM be distributed to victims of Tucker’s scheme, consistent with the applicable Department of Justice regulations, through the ongoing remission process.
Mr. Berman praised the outstanding investigative work of the Special Agents at the United States Attorney’s Office and thanked the Securities and Exchange Commission for its assistance with the investigation.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the prosecution.
Man Pleads Guilty to Role in Two Bank RobberiesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to his role in two bank robberies.
“Hudgins is a violent criminal who poses a danger to our communities and those in law enforcement trying to keep us safe,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His significant criminal history includes grand larceny, hit and run, and now bank robbery. With the assistance of our local, state, and federal law enforcement partners, we are committed to removing violent criminals like Hudgins from our streets.”
According to court documents, Russell Hudgins, 34, and his co-defendant, Roscoe Freeman, 33, conspired to rob two banks in the Tidewater area. On May 16, Hudgins went into Citizens and Farmers Bank in Yorktown wearing a black knit cap, a tattoo sleeve, and a fake brown beard. Hudgins made a verbal demand for money from the teller and stated “You know what time it is. Give me 10s, 20s and large.” The total loss to the bank was $1,786.00.
Two days later, Hudgins entered Old Point National Bank in Isle of Wight County wearing a tattoo sleeve and a beard. Hudgins made a verbal demand for all the money in the teller’s drawer and left the bank with $1,629 and a GPS tracker. In both robberies Freeman acted as a getaway driver. Freeman was apprehended by law enforcement after a vehicle pursuit, while Hudgins ran away from the scene and hid from police until he was caught at his residence later that day.
Hudgins was previously convicted in 2007 of armed carjacking and possession of a firearm in furtherance of a crime of violence, and was on federal supervision at the time of the robberies. Hudgins has also previously been convicted of grand larceny, contempt of court, and hit and run.
Hudgins pleaded guilty to two counts of bank robbery and faces a maximum penalty of 40 years in prison when sentenced on April 15, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-78.