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27 February 2019
Eleven Charged in Federal Court in Heroin, Cocaine, and Fentanyl Trafficking IndictmentRead the Press Release
Greenville, South Carolina – United States Attorney Sherri A. Lydon announced today that eleven individuals have been charged in a multi-count federal indictment for their roles in a wide-ranging conspiracy to import and possess with intent to distribute heroin, cocaine, and fentanyl and other related offenses. On February 19, 2019, a federal grand jury returned a twenty-two count sealed indictment alleging the defendants conspired to import the narcotics from Mexico and distribute them throughout the upstate of South Carolina, North Carolina, and elsewhere. One count of the indictment charges that in October 2018, four of the defendants conspired to smuggle over 1 million dollars in cash from South Carolina to a place outside the United States in exchange for the narcotics. According to the indictment, the defendants are also charged with maintaining a stash house located in Mountville, South Carolina, where they manufactured and stored controlled substances.
“Today’s indictment is yet another example of the unwavering commitment of the U.S. Attorney’s Office for the District of South Carolina to disrupting and dismantling the flow of illegal opioids and other narcotics into our state,” said U.S. Attorney Lydon. “As the opioid epidemic tightens its grip on families across America, we will continue to join with our federal, state, and local law enforcement partners to aggressively prosecute individuals who are peddling these dangerous and deadly drugs into our communities.”
While one defendant remains at large, the individuals arrested today are:
- Detric Lee McGowan, aka “Fat”, 46, of Piedmont, South Carolina
- Donald Nathaniel Thomas, Jr. a/k/a, “TJ”, 36, of Greenwood, South Carolina
- Christopher Jerome Cunningham, 38, of Greenwood, South Carolina
- Richard Lamond Longshore, 46, of Greenwood, South Carolina
- Celest Henry Blocker, 67, of Fayetteville, North Carolina
- Eddie Lee Childs, 49, of Simpsonville, South Carolina
- Trevor Maurice Hull, 51, of Greenwood, South Carolina
- Danny Morales Lopez, 29, of Fayetteville, North Carolina
Each of the above defendants face a maximum sentence of life in prison, a fine, plus a term of supervised release. The following defendants face a maximum sentence of 5 years in prison, a fine, plus a term of supervised release:
- Shequita Latoya Holloway, 34, of Greenwood, South Carolina
- Lauren Brooke Poore, 35, of Piedmont, South Carolina
The indictment follows multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. This investigation was conducted by the Drug Enforcement Administration (HIDTA), the Federal Bureau of Investigation, United States Postal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Greenwood Police Department, Greenwood County Sheriff’s Office, Kershaw County Sheriff’s Office, South Carolina Department of Public Safety, South Carolina Department of Natural Resources, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Leesa Washington and Sloan P. Ellis in the Greenville office.
The charges in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
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Dominican National Pleads Guilty to Misuse of A Social Security NumberRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to misusing a Social Security number.
Adys Sanchez, 47, pleaded guilty to one count of misuse of a Social Security number. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for May 30, 2019. In April 2018, Sanchez was indicted and later arrested in Miami, Fla.
In April 2014, Sanchez represented that a Social Security number belonging to another person was her own in an application for a driver’s license renewal at the Massachusetts Registry of Motor Vehicles.
False representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the Social Security Administration Office of Inspector General; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Des Moines Man Sentenced to 30 Years in Prison for Methamphetamine Distribution and Firearm OffensesRead the Press Release
DES MOINES, Iowa—On February 25, 2019, Arthur Tyrone Lee, Jr., age 38, of Des Moines, was sentenced by United States District Court Chief Judge John A. Jarvey to 360 months in prison for possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking offense, and felon in possession of a firearm, announced United States Attorney Marc Krickbaum. Lee was ordered to serve ten years of supervised release to follow his prison term.
On October 16, 2018, Lee was found guilty of the charges after a two-day jury trial. The evidence at trial proved Lee was in possession of 73.43 grams of pure methamphetamine, 4.11 grams of a methamphetamine mixture (consisting of 821 tablets), and a loaded Kimbur Ultra Carry II .45 caliber handgun during the execution of a search warrant at his Des Moines residence. Evidence also showed Lee regularly purchased methamphetamine for distribution, including at least an additional 5,896.8 grams of methamphetamine mixture. At the time of these offenses, Lee had two prior controlled substance felony convictions.
This investigation was conducted by the Des Moines Police Department and Mid Iowa Narcotics Enforcement Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Defendants Charged with Multimillion Dollar Investment FraudRead the Press Release
Portland, Maine: Two individuals were charged in an indictment filed today for their roles in a multimillion-dollar scheme involving purported investments in a start-up financial technology company.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Halsey B. Frank of the District of Maine, Special Agent in Charge Joseph Bonavolonta of the FBI’s Boston Field Office and Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (IRS-CI) in Boston made the announcement.
Michael A. Liberty, 58, of Windermere, Florida, and Paul E. Hess, 63, of Braintree, Massachusetts, were each charged in an indictment filed in the District of Maine with one count of conspiracy to commit wire fraud, four counts of wire fraud and one count of securities fraud. In addition, Liberty was charged with one count of conspiracy to commit money laundering and three counts of money laundering.
The indictment alleges that, beginning in 2010, Liberty and Hess solicited investments in Mozido, a privately held financial technology start-up company that offered users an ability to make payments using their mobile phones. Liberty and Hess allegedly raised millions of dollars from investors telling them, among other things, that their money would be used to fund Mozido’s business operations and that Hess was not being paid to raise the money. The indictment alleges that a substantial amount of the money did not go to Mozido, that a portion of the money was diverted to pay Liberty’s personal expenses, and that Hess received commissions and other payments in return for the money he raised from investors.
The defendants face up to 20 years in prison and a fine of the greater of $250,000 or twice the gain or loss on the wire fraud charges and up to 20 years in prison and a $5,000,000 fine on the securities fraud charge. Liberty faces up to 10 years in prison and a fine of the greater of $250,000 or twice the amount of criminally derived property involved in the transactions on the money laundering charges. 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.
The FBI’s Portland, Maine Resident Agency and IRS-CI are investigating the case. Trial Attorneys Michelle Pascucci and Matthew Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Donald Clark of the District of Maine are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe they may be a victim in this case should contact the Victim Witness Services Unit of the U.S. Attorney’s Office for the District of Maine at (207) 780-3257 for more information.
Council Bluffs Woman Sentenced to Prison for Social Security FraudRead the Press Release
COUNCIL BLUFFS, Iowa – On February 19, 2019, United States District Court Chief Judge John A. Jarvey sentenced Jamie Lynn Opalia, age 37, of Council Bluffs, to three months in prison for Social Security Representative Payee fraud, announced United States Attorney Marc Krickbaum. Opalia was ordered to serve three years of supervised release following her prison term and pay $100 to the Crime Victims’ Fund. Opalia was also ordered to pay restitution to the Social Security Administration in the amount of $22,552.00
On October 23, 2018, Opalia pleaded guilty to the charge and admitted she applied for and was granted Social Security benefits to support another person, but converted almost all of the funds from Social Security to her own personal use.
This matter was investigated by the Office of Inspector General for the Social Security Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Columbus Couple Agree to Plead Guilty to Health Care Fraud Scheme that Targeted City Employees, First Responders, Military Health Benefit ProviderRead the Press Release
COLUMBUS, Ohio – A Columbus couple have agreed to plead guilty to charges related to a health-care fraud scheme that involved compound creams prescribed to city employees and first responders.
Amy M. Kirk and Ryan D. Edney have agreed to plead guilty to one count of conspiring to commit health care fraud, a crime punishable by up to 10 years in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, United States Health and Human Services Office of Inspector General (HHS OIG), Ohio Attorney General Dave Yost, Leigh-Alistair Barzey, Special Agent in Charge, DCIS-Northeast Field Office, and Jim Wernecke, Director, Ohio Bureau of Workers' Compensation special investigations department announced the case.
According to court documents, Kirk was a nurse practitioner at Pain Management Consortium of Ohio (PMCO). Her fiancé and co-defendant, Edney, was the president of RX Health Solutions, LLC.
From 2014 until 2017, Kirk and Edney conspired to defraud Medicaid and other health insurers and enrich themselves by billing for compound cream medications that were not medically necessary. Kirk also wrote prescriptions that were based on false medical conditions. In some instances, prescriptions were written without ever meeting or examining the patient or were issued in exchange for kickback payments.
Kirk and Edney would recruit patients for compound pain creams, scar creams, migraine creams or wellness pills.
“It was part of the conspiracy that the defendants targeted city employees, including police officers, firefighters and teachers, because the government insurance programs were more inclined to pay for compound creams,” U.S. Attorney Glassman said. “Medications were typically prescribed with 11 refills to maximize reimbursement from the health care benefit programs and were shipped directly to patients.”
Kirk completed patient information sheets, often falsifying physical exam information and medical diagnoses. Kirk was then paid for each prescription she authored via kickbacks routed to Edney’s RX Health Solutions company, or directly to Edney himself.
The couple caused more than $751,000 in fraudulent insurance claims to Medicaid, Tricare and private insurance. Tricare provides health care benefits to active duty service members, retired service members and their dependents.
Kirk and Edney personally received nearly $350,000 in kickbacks.
As part of their proposed pleas, Kirk and Edney would pay the $750,000 in restitution.
“Fake conditions, ‘wellness pills’ and examinations that never happened… this level of fraud would make a snake oil salesman blush,” Ohio Attorney General Yost said. “I am proud of our staff, and our partners in the U.S. Attorney’s Office for bringing these two to justice.”
The Court will consider the defendants’ offer of plea at a future plea hearing, which is yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by HHS OIG, the Ohio Attorney General’s Medicaid Fraud Control Unit, DCIS and Ohio Bureau of Workers' Compensation, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are representing the United States in this case.
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Clayton County, Georgia Man Receives 96 Month Sentence for Possession of a Firearm by a Prohibited Person (Felon)Read the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced today that Matthew Joshua Green of Clayton County, Georgia was sentenced to 96 months imprisonment for Possession of a Firearm by a Prohibited Person before Judge William H. Steele. Green had prior felony convictions which include aggravated battery, vehicular homicide, receiving stolen property, felony willful obstruction of law enforcement officers by use of threats or violence and possession of cocaine prior to possess of a firearm.
According to court documents, on April 18, 2018, a Baldwin County Sheriff’s Deputy conducted a traffic stop along Interstate 10 on Green for failing to maintain his lane of travel. Green was on his cell phone and not following the deputy’s request to hang up and step out of the car. The deputy smelled the odor of marijuana coming from the car and witnessed loose marijuana in the car. Because of Green’s behavior, the deputy attempted to conduct a pat down on Green for safety reasons. While attempting to place handcuffs on Green, he began resisting arrest and tried to push the deputy into oncoming traffic. Due to Green’s behavior and what was witnessed by the deputy, a probable cause search was conducted of the vehicle wherein digital scales and marijuana were found in the car along with a loaded firearm.
Due to Green’s attempts to resist arrest and push the deputy into interstate traffic, the Court applied a sentencing enhancement for reckless endangerment during flight.
Special Agents of the Federal Bureau of Investigation along with deputies of the Baldwin County, Alabama Sheriff’s office investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney Michael D. Anderson.
Christopher Hasson Facing Federal Indictment for Illegal Possession of Silencers, Possession of Firearms by a Drug Addict and Unlawful User, and Possession of a Controlled SubstanceRead the Press Release
Greenbelt, Maryland – A federal grand jury today indicted Christopher Paul Hasson, age 49, of Silver Spring, Maryland, on federal charges for unlawful possession of silencers, for possession of firearms by a drug addict and unlawful user, and for possession of a controlled substance. Hasson was arrested on related charges on February 15, 2019, and has been detained since his arrest.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Art Walker of the U.S. Coast Guard Investigative Service; and Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
U.S. Attorney Robert K. Hur stated, “We continue to gather evidence, as well as review evidence already obtained as part of this ongoing investigation.”
According to the indictment and other court documents, Hasson, a Lieutenant in the United States Coast Guard, is charged with illegal possession of two silencers. Federal law requires silencers to bear serial numbers and to be registered in the National Firearms Registration and Transfer Record. The silencers in Hasson’s possession met neither criteria. The indictment further alleges that Hasson is an unlawful user and addict of a controlled substance, and therefore prohibited from possessing the seventeen firearms in his possession. A search warrant executed at Hasson’s residence on February 15, 2019, recovered the following firearms, which are referenced in the indictment: seven rifles; two shotguns; four pistols; two revolvers; an assembled firearm silencer; and a disassembled firearm silencer. Finally, the indictment alleges that Hasson possessed tramadol, a controlled substance that is classified by the Drug Enforcement Administration as an opioid analgesic.
If convicted, Hasson faces a maximum sentence of 10 years in prison for each of the three charges related to firearms and the firearm silencers, and a maximum of one year in prison for possession of tramadol. An arraignment in U.S. District Court in Greenbelt has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, the U.S. Coast Guard Investigative Service, and the ATF for their work in the investigation. Mr. Hur thanked his office’s national security prosecutors, who are handling the case.
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Cape Cod Woman Sentenced for Mail FraudRead the Press Release
BOSTON – A Cape Cod woman was sentenced yesterday in federal court in Boston for her role in a fraudulent lottery scheme.
Ashley Barrett, 26, of Hyannis, was sentenced by U.S. District Court Judge Denise J. Casper to 21 months in prison, three years of supervised release, and ordered to pay $325,148 in restitution. In November 2018, Barrett pleaded guilty to one count of mail fraud.
Between September 2012 and January 2016, Barrett and others devised a scheme to defraud elderly victims across the country by falsely representing to them that they had won millions of dollars in a lottery, and that, in order to receive their winnings, they had to pay taxes or fees. Twelve elderly victims sent Barrett wire payments and checks totaling $325,148. This amount does not include envelopes of cash that victims mailed to Barrett.
The victims include a 73-year old farmer from Iowa, who is a Vietnam veteran, Purple Heart recipient, and cancer survivor. The victim received a call stating that he had won the Mega Millions lottery but first had to pay taxes on his winnings. After paying some money and then stopping, the victim was contacted by a man purporting to be a federal agent who promised to help the victim get his money back from the “lottery scammers.” This person told the victim to send money to Barrett, who supposedly was also a federal agent. The victim subsequently sent Barrett checks totaling $27,098.
Another victim was a 73-year old retiree who lives in Pennsylvania with her husband, a bedridden Korean War veteran. The victim received calls stating that she had won $10 million in a lottery, plus cars and a truck, but that she had to pay taxes and customs fees up front. The victim sent Barrett checks totaling $26,000. As a result of being scammed by Barrett and others, the victim and her husband have lost their home, an RV, a truck, and their credit.
Another victim was a Florida widow with no children. In 2015, the victim, suffering from dementia, told her nephew that someone claiming to be Ashley Barrett had called and told her she had won the lottery. The victim sent Barrett checks totaling $25,000. The victim died last year at age 93 from Alzheimer’s disease.
Another victim is a 77-year old widow who lives alone in Pennsylvania. She received calls saying she had won the Mega Millions lottery and a car. Later a man claiming to be a federal agent called the victim and said he knew that she had been sending money to various people, and that she would be arrested for money laundering unless she mailed money to Barrett. She sent Barrett checks totaling $18,000. The victim, who had retired early from her job as a nurse, lost all her retirement savings to Barrett and other scammers. As a result, she has had to take two part-time jobs, each paying $8/hour, to make ends meet.
Other victims include a Navy veteran who lived in Arkansas until his death in 2015 at age 87, who sent Barrett $149,050 in wire transfers and checks; an 88-year old South Carolina woman who sent Barrett $43,500 in wire transfers and checks; an 84-year old Indiana woman who sent Barrett checks totaling $18,000; an 80-year old woman in Georgia who sent Barrett a check for $9,000; an 84-year old Kentucky man who sent Barrett a check for $8,000; a 90-year old Illinois man who sent Barrett a check for $5,000; an 89-year old woman who wired $3,000 to Barrett; and an 87-year old Texas man who wired Barrett $2,000. A 13th victim, a 95-year old woman in West Virginia, mailed Barrett an $8,000 check that was intercepted by postal inspectors.
If you or someone you know has been the victim of elder abuse, see the Elder Abuse Resource Roadmap for help: https://www.justice.gov/elderjustice/roadmap
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Belle Fourche Woman Sentenced for Theft of Government PropertyRead the Press Release
United States Attorney Ron Parsons announced that a Belle Fourche, South Dakota, woman convicted of Theft of Government Property, Supplemental Security Income Benefits Fraud, and False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Cindy Lou Geib, age 49, was sentenced on February 20, 2019, to 10 months in federal prison, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund on each of the three felony charges. The time in federal prison is to run concurrently on each conviction. Geib was also ordered to pay $112,468.10 in restitution.
The conviction stems from Geib knowingly and willfully making false statements to the United States Social Security Administration and the South Dakota Department of Social Services, to obtain Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP) benefits, Medicaid, and Low Income Energy Assistance Program (LIEAP) benefits, to steal $112,468.10 in money and benefits for herself and her children between 2011 and 2017.
This case was investigated by the Social Security Administration Cooperative Disabilities Investigation Unit, with assistance from the U.S. Department of Health and Human Services Office of the Inspector General and the South Dakota Department of Social Services Office of Recoveries and Fraud Investigations. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Geib was ordered to self-surrender to the custody of the U.S. Marshals Service on March 20, 2019, to begin serving her sentence.
Arizona Man Sentenced on Wire Fraud ChargesRead the Press Release
St. Louis, MO – Matthew Burkett, 47, of Scottsdale, Arizona, was sentenced today to one year and one day for defrauding investors and customers of Predator Tactical, LLC, his firearms manufacturing business. Burkett was also ordered to pay $576.100.48 restitution in total to various individuals and businesses. Burkett appeared before U.S. District Judge Henry Autrey.
According to court documents, Burkett owned and operated Predator Tactical, LLC, a business involved in the manufacturing of custom, high-end firearms which was established in 2010 and located in Tempe, Arizona. Burkett advertised his business across the United States. Pursuant to those efforts, Burkett, representing Predator Tactical, LLC, attended the NRA gun show in St. Louis, Missouri in April 2012. At the show, Burkett advertised and marketed Predator Tactical, LLC products. An individual (referred to here as P.S.) became a customer of Predator Tactical, LLC due to interactions with Burkett at that show.
On July 21, 2012, Burkett met with P.S. again in St. Louis for the purpose of discussing an investment of $50,000 to be paid by P.S. to Predator Tactical, LLC as an investment option, or alternatively as a deposit for future firearm purchases. On July 25, 2012, that agreement was ratified and P.S. caused his bank to wire $50,000 from his account in St. Louis to Predator Tactical, LLC’s bank account in Arizona.
Burkett, contrary to agreement, fraudulently misappropriated that money for personal use. On December 4, 2012, P.S., declining to use the option to invest in Predator Tactical, LLC by the terms of the agreement, placed an order for firearm purchases previously paid for by the $50,000. Burkett and Predator Tactical, LLC however, did not deliver any of the firearms as promised.
This case was investigated by the St. Louis division of the Federal Bureau of Investigation (FBI). Assistant United States Attorney John Ware handled the case for the U.S. Attorney's Office.
Another Long-Time Tax Preparer Receives 18 Months’ Imprisonment for Tax FraudRead the Press Release
PHOENIX– On Feb. 25, 2019, Oscar Hernandez, 58, of Phoenix, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 18 months in prison and ordered to pay $121,548 in restitution to the United States.
Hernandez worked as a tax preparer in Phoenix for nearly 25 years. In 2004, he opened his own tax preparation business called R Robin Tax Services. Hernandez admitted he filed at least 44 fraudulent tax returns between 2010 and 2013, which caused a loss to the United States of $121,548. Hernandez admitted that he falsified returns for his clients by improperly claiming Head of Household filing status, adding false dependents, and claiming false exemptions and credits, all of which had the effect of fraudulently reducing the amount of taxes his clients owed and increasing the amount of their tax refunds.
Last week, Elias Bermudez, another long-time Phoenix tax preparer, was sentenced to 18 months in prison and ordered to pay $131,651 in restitution to the United States for preparing false tax returns.
The investigation in this case was conducted by the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Jillian Besancon and Bridget Minder, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-00416-PHX-DJH
RELEASE NUMBER: 2019-020_Hernandez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Anchorage Man Sentenced to 16 Years in Federal Prison for Attempted Sex Trafficking and Exploitation of MinorsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man has been sentenced to federal prison after he made arrangements with an undercover detective to meet with two fictional minors, whom he believed to be real, to engage in sexual activities.
Danny Ray Lowe, 50, of Anchorage, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve 16 years in federal prison, followed by a lifetime years of supervised release. After a three-day trial in July 2018, a federal jury convicted Lowe of two counts of attempted sexual trafficking of a minor, and two counts of attempted enticement of a minor.
According to court documents, Lowe promptly responded to an online advertisement placed by a detective working an undercover operation. Over an approximate six-month period, Lowe corresponded with the detective using text messages to negotiate the time, place, and price to have sex with two fictional girls, aged 13 and 14. On Sept. 12, 2017, Lowe arrived at the agreed-upon Anchorage motel, ready and willing to pay $150 for two hours of illegal sex with the two minors. The investigation revealed that Lowe had also brought condoms and strawberry-flavored personal lubricant to the motel.
When Lowe knocked on the motel room door, however, local and federal law enforcement officers arrested him. Upon arrest, Lowe confessed his crimes to the detective and wrote an apology letter to the girls’ parents, as he did not yet know that the girls were fictional. Lowe wrote that he was “very sorry for offering money to have sex with your” daughter.
At the sentencing hearing, Judge Beistline explained that the purpose of the sentence imposed was to protect the community and deter others from paying to have sex with children. At trial, Lowe testified that he was attempting to rescue the children, rather than trying to buy sex with them. At today’s sentencing hearing, the Court found that Lowe had lied and knew, “deep down,” that he was guilty.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the joint investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
9 Members of Bronx Drug Trafficking Organization Charged with Distributing Heroin, Fentanyl, and Cocaine Out of Auto Body ShopsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Raymond Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), James D. Robnett, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division, (“IRS-CI”), Angel M. Melendez, Special Agent in Charge of the New York Office of Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), Keith M. Corlett, Acting Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), announced today that ADALBERTO VELAZQUEZ, a/k/a “Joe,” RAYMOND RESTO, a/k/a “Tone,” SAL CASTRO, a/k/a “Floss,” JOEL LOPEZ, a/k/a “Rompiendoe,” a/k/a “Paul,” a/k/a “Po,” WILLIS LLERAS, a/k/a “Willy,” REINALDO ROMAN, a/k/a “Papo,” JAIME GARCIA, a/k/a “Jimmy,” ANTONIO BURGOS, a/k/a “Anthony,” and MARILYN ADINO have been charged with participating in a conspiracy to distribute heroin, fentanyl, and cocaine. The defendants arrested today are expected to be presented this afternoon before United States Magistrate Judge Ona T. Wang. The case has been assigned to United States District Judge Ronnie Abrams.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants were a network that outwardly offered to fix cars but was really an organization that would supply a fix of heroin or cocaine. Thanks to the work of the DEA and its Strike Force partners, we have delivered a body blow to these allegedly drug-peddling body shops.”
DEA Special Agent in Charge Raymond Donovan said: “These arrests will have a significant impact on the heroin/fentanyl supply in the Bronx. DEA’s goal is to keep the public safe from the dangers of drug abuse. One way of doing that is to target local distribution organizations responsible for attracting new users, enabling addiction and contributing to overdoses in our city. I applaud the Strike Force and U.S. Attorney’s Office, Southern District of New York, for their diligent work throughout this investigation.”
According to the allegations in the Indictment[1] and statements made in Court:
The defendants were members of a drug trafficking organization (the “DTO”) that packaged and sold narcotics out of multiple auto body shops and garages in the Bronx, New York. From 2015 to February 2019, the DTO is estimated to have distributed hundreds of kilograms of cocaine and heroin. Much of the heroin that the DTO distributed was mixed with fentanyl.
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VELAZQUEZ, 50, RESTO, 43, CASTRO, 39, LLERAS, 63, ROMAN, 55, GARCIA, 53, BURGOS, 46, and ADINO, 49, each of the Bronx, New York, and LOPEZ, 39, of New York, New York, are each charged with one count of conspiring to distribute cocaine, heroin, and fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA).
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA, the New York City Police Department, the New York State Police, Immigration and Customs Enforcement – Homeland Security Investigations, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives , U.S. Customs and Border Protection, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Michael K. Krouse and Adam S. Hobson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
75 Individuals Charged with Drug Trafficking in Puerto Rico Project Safe Neighborhoods Enforcement EffortRead the Press Release
SAN JUAN, Puerto Rico – On February 20, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against 75 defendants charged with conspiracy to possess with intent to distribute, and distribution of, controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service, and the Puerto Rico Police Department (PRPD), San Juan Strike Force, were in charge of the investigation. This case is part of the U.S. Department of Justice’s Project Safe Neighborhoods initiative.
The indictment alleges that beginning in or about the year 2006, the organization distributed crack, heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Villa Kennedy, Las Casas, El Mirador and Las Margaritas Public Housing Projects, and other areas, and within 1,000 feet of schools and playgrounds located in the Municipality of San Juan, Puerto Rico, all for financial gain and profit. The object of the conspiracy was the large-scale distribution of controlled substances for significant financial gain and profit. Members of the organization also possessed and distributed kilogram quantities of controlled substances, mainly cocaine, in Puerto Rico, for further distribution in the continental United States.
This drug trafficking organization was known as “Las FARC,” (Las Fuerzas Armadas Revolucionarias de Cantera). Las FARC operated out of Barrio Obrero Ward, including but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about the year 2006. The goal of Las FARC was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.
The 75 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, runners, suppliers, enforcers, drug processors, sellers, and facilitators. Twenty-seven defendants are also charged with possession of firearms in furtherance of a drug trafficking crime.
As part of the conspiracy, leaders and/or drug point owners of the drug trafficking organization would routinely authorize and instruct other co-conspirators to provide free “samples” of narcotics to “customers” in order to promote the sales of a specific brand of drug at the drug points. Some of the co-conspirators used different types of barricades or barriers, including but not limited to large water tanks, access control barriers and/or steel gate poles, in order to block off the streets that gave access to the drug points. These barriers would stop the entry of law enforcement agents and/or members of rival gangs. Members of the drug trafficking organization would often “abduct” and assault rival drug traffickers as well as members of their own drug trafficking organization, in order to intimidate and maintain control of the drug trafficking activities.
Some of the defendants used part of the proceeds of their illegal activities to purchase legitimate assets and/or services, including but not limited to real estate properties, nightclubs, motor vehicles, vessels, clothing, trips, hotel accommodations, and private parties.
The defendants indicted today are: Emmanuel Pacheco-Marín, a.k.a. “Bebo Las Farc/Manuel/Cabezon”; Vladimir Natera-Abreu, a.k.a. “Vladi/Flako”; Jesús J. Rivera-Figueroa, a.k.a. “Colombiano”; Jose L. García-López, a.k.a. “Los Gemelos”; Luis A. García-López, a.k.a. “Los Gemelos”; Elvin O. Cruz-Verges, a.k.a. “Mellao”; Segismar Rodríguez-Rivera, a.k.a. “Segis/Seji/Ceji/Segui”; Luis Serrano-Nieves, a.k.a. “Gordo Bemba”; Christian O. Dalmau-García, a.k.a. “Negro/Dalmau”; Fabián Viloria-Sepúlveda, a.k.a. “Fabi/Favi”; Anthony Vazquez-Arroyo, a.k.a. “Buri”; Luis R. Espinal-Rivera, a.k.a. “Espi/Luis Pinal/El Gordo”; Ignacio Gual-Calderón, a.k.a. “Papulin/Papu”; Jonathan Rivera-Carrasquillo, a.k.a. “Moto/Motito/Goldo/Motito Junior”; Samuel Castro-Rivera, a.k.a. “Sammy Loba”; Carlos H. Torres-Carrasquillo, a.k.a. “Hiram/Buba”; Joset J. Rivera-Verdejo, a.k.a. “Jomar”; Jason Arroyo-Pérez, a.k.a. “Chapu/El Gordo”; Jean Carlos Candelario-Figueroa, a.k.a. “Yankee/El Flaco”; Nefty L. Oquendo-Rosario; Pedro Collazo-Prieto, a.k.a. “Pedrito”; José O. Baez-Rosa, a.k.a. “Bam Bam/Landi”; Edgar Nieves-Torres, a.k.a. “Bambi/Banb”; Jonathan O. Arce-Carrillo, a.k.a. “El Joyero/Jon El De Vista”; Gustavo J. Germes-Estrella, a.k.a. “Papo El Claro/Papo”; Dionicio Odali De La Rosa-Richiez, a.k.a. “Dioni”; Anthony González-Miranda, a.k.a. “Tony”; Carlos R. Nieves, a.k.a. “Carlitos Boada/Pablito”; John Blaymeyer-Quiñones, a.k.a. “Blade/Blay/Pichi”; Christian J. Castro-González, a.k.a. “Christian Poo”; Adams E. Aquino-Rosario, a.k.a. “Pirobo”; Alexis Fermaintt-Caraballo; Christian J. Sierra-Pérez, a.k.a. “Bampi/Vampi”; Victor Rivera-Galindez, a.k.a. “Bin Laden”; Luis B. Louzao, a.k.a. “Panda/Benji”; Edgardo A. Benitez-Guivas, a.k.a. “Buda/Buda De Las Margaritas”; Ediberto García-López, a.k.a. “Mafia”; Geovanny Morales-Rodríguez, a.k.a. “Gova/Jova Morales”; Luis A. Piris-Torres, a.k.a. “Piris/Cheo/Cheito”; Luis García-Morlas, a.k.a. “Piolin”; Mario O. De-Jesús-Ocasio, a.k.a. “Caballo/Mario Caballo”; Pedro J. Cintron-Álvarez, a.k.a. “Torombolo/Toro”; José A. Colón-Otero, a.k.a. “Chino/Cheo/Cheito”; Carlos I. Rodríguez-Alvarado, a.k.a. “Teta/Teton/Blanquito/Carlos Teta”; Fernando Hilario-Figueroa, a.k.a. “Nando de Playita/Boti”; Rafael Maldonado-Segarra, a.k.a. “Pucho de la Boada”; Ivette M. Rosado-Pantojas, a.k.a. “La Pata/ISIS”; Luis G. Robert-Torres, a.k.a. “Luigi/Cuajon Luis/Luiyo”; Gilberto Guise-Calderón, a.k.a. “Bereta/Bereta de Cantera”; Christian López-Díaz, a.k.a. “Christian 25”; Edwin Rosa-Colón, a.k.a. “Glock”; Luis O. Cabán-Rodríguez; Carlos M. Pantojas-Ruano, a.k.a. “Carlito”; Leslie R. Dominguez-Miranda, a.k.a. “Raul”; Christian J. Huertas-Méndez, a.k.a. “El Cano”; Christopher A. Espinal-Rivera, a.k.a. “Bofel/Bofer”; Dennis J. Hernández-Rivera, a.k.a. “Tico/Kiko/Tico de la Calle Williams/Pipin”; Joel C. Nieves-Torres; Jonathan Meléndez-Otero, a.k.a. “Goldo”; Jonathan Pereira-Santiago, a.k.a. “Flaco”; Jorge D. Alicea-Cintrón, a.k.a. “Machete”; José M. Santiago-Montañez, a.k.a. “Ojitos Lindos/Pito/Ojitos Bellos”; José J. Piris-Hernández, a.k.a. “Piris”; Juan M. Pérez-Méndez, a.k.a. “Kun”; Luis A. Rosa-Díaz, a.k.a. “Chino”; Michael G. Marrero-Castro, a.k.a. “Conejo/Conejito/Cone”; Nelson A. López-Quiñonez, a.k.a. “Toston”; Kelvinson Castillo-Castillo, a.k.a. “Duran de la Calle Williams”; Pedro J. Massas-Rivera, a.k.a. “Five/Pedrito Massa”; Reynaldo M. Díaz-Verges, a.k.a. “Rey/Barber”; Nelson L. Cuevas-Ocasio, a.k.a. “Luli”; FNU LNU, a.k.a. “Gocho/Erick J. Rodriguez-Velez/Carlitos”; and Isadora Nieves-Cruz, a.k.a. “Pinky/Pinky Curvy”.
Vladimir Natera-Abreu, a.k.a. “Vladi/Flako” is facing one count of money laundering for the purchase of real estate properties in the municipality of Guaynabo with proceeds from drug trafficking. All the defendants are facing a narcotics forfeiture allegation of $75,949,040 in U.S. currency and four other properties listed in the indictment.
Two other members of the drug trafficking organization, Edison Merced-Olivera, a.k.a. “Chino/Chino Oriental/El Loco/Chinos Las Margaritas/Pai” and Waldemar Febres-Sánchez, a.k.a. “Walde,” were charged in a separate indictment with conspiracy to possess with intent to distribute, distribution of controlled substances, and possession of firearms in furtherance of a drug trafficking crime. These two defendants are facing murder charges at the state level for their alleged participation in the murder of Carlos Giovanny Báez-Rosa, a.k.a. “Tonka/Jova,” a known leader of the drug trafficking organization.
“Disputes between gang rivals lead to many shootings and murders, including innocent bystanders who are caught in the crossfire,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I am grateful for the tireless efforts of the investigators and prosecutors who have dismantled Las FARC with today’s indictment. We will continue to investigate these violent criminal organizations with our law enforcement counterparts, and send a clear message that drugs, firearms, and violence will not be tolerated in our neighborhoods.”
Douglas A. Leff, Special Agent in Charge of the FBI-San Juan Field Office said: “Removing drug traffickers, violent offenders from the streets and dismantling violent gangs remains one of the highest priorities of the FBI in Puerto Rico as we seek to provide the citizens of Puerto Rico with a better place to live and raise their families. Today’s operation was made possible through the hard work of Special Agents and Task Force Officers assigned to the FBI Safe Street Task Force, and our dedicated partners at the United States Attorney’s Office; Drug Enforcement Administration; U.S. Marshal Service; Homeland Security Investigations; Internal Revenue Service; Police of Puerto Rico’s Strike Force; San Juan Municipal Police; Puerto Rico Department of Correction; and Puerto Rico Air National Guard. FBI Special Agents and Tactical personnel from FBI Headquarters and several other FBI field offices, conducted several of today’s arrests. Special appreciation is extended to San Juan Police Commissioner José Caldero for the outstanding task force officers from his department, one of whom served as the lead investigator on this case.”
DEA Caribbean Division Special Agent in Charge, A.J. Collazo stated: “DEA and the Caribbean Division is proud of being part of this successful operation. Whenever we work together, favorable changes happen for our citizens and thanks to these changes, our Puerto Rican families are safer. We can’t allow these organizations to obstruct the right of peace in the Public Housing Projects in Puerto Rico. This organization was responsible for placing crack, heroin, and marijuana in the hands of lives who later suffered addiction, death and other situations, none of them positive for them, their families, nor society. These individuals are under arrest for the immeasurable damage they caused; life is priceless, and now they are behind bars to see justice done. The Men and Women of DEA will not rest and we will go after many more, when they least expect it.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers cannot finance their organizations. The role of IRS Criminal Investigation in narcotics investigations is to follow the money, and we are proud to provide our financial expertise as we work alongside our law enforcement partners to disrupt and dismantle drug trafficking organizations and bring these criminals to justice. Today's announcement demonstrates our collective efforts to enforce the law and ensure public trust,” stated Michael J. De Palma, Special Agent in Charge, IRS Criminal Investigation.
Assistant U.S. Attorneys Alberto López-Rocafort and María L. Montañez-Concepción are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Today’s arrests are part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated in 2017, as part of the Department’s renewed focus on targeting each community’s most violent criminals. All U.S. Attorney’s Offices work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
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3 Charged in Heroin, Fentanyl Trafficking ConspiracyRead the Press Release
PITTSBURGH, Pa. – Three individuals have been indicted by a federal grand jury in Pittsburgh on charges of heroin, fentanyl, and cocaine trafficking, United States Attorney Scott W. Brady announced today.
The two-count Indictment, returned on February 26, named Brandon Winters, 43, of Plum Borough, PA; Eduard Guzman Rijo, 48, of the Dominican Republic; and Erick Alexander Martinez, 33, of Yonkers, NY.
According to the Indictment presented to the court, in January 2019, Winters, Rijo, and Martinez conspired to possess with intent to distribute and distribute more than one kilogram of heroin/400 grams of fentanyl. Also according to the Indictment, Winters possessed with intent to distribute more than 500 grams of cocaine.
The law provides for a minimum sentence of 10 years and up to life in prison, a fine of $10,000,000 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.
Assistant United States Attorneys Tonya Sulia Goodman and Jerome A. Moschetta are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
$24,000 Reward Offered in Hardeman County Cold CaseRead the Press Release
Memphis, TN – Representatives from the Tennessee Bureau of Investigation (TBI), the Federal Bureau of Investigation (FBI), the 25th Judicial District Attorney General and the Hardeman County Sheriff today announced a $24,000 reward, in a renewed effort to gain additional information about a 1998 unsolved murder in Hardeman County.
Twenty-one-years ago, TBI Special Agents joined the Hardeman County Sheriff’s Office in investigating the July 23, 1998 murder of Michael Bell, a clerk at McKee’s Stateline Convenience Store, located on Highway 125 S between Middleton, Tennessee, and Walnut, Mississippi. At that time, the investigation revealed that an unknown individual shot and killed the clerk, then left the store in a 1990’s General Motors model sedan, and drove toward Walnut, Mississippi. Information gathered during the investigation indicated that robbery did not appear to have been the motive of the shooting of Michael Bell, but he was instead the target of a coordinated murder.
The Federal Bureau Investigation (FBI), TBI, 25th Judicial District Attorney General’s Office and the Hardeman County Sheriff’s Office continue to aggressively investigate this 1998 murder. The partnership has resulted in new leads being developed in this case.
Based upon the new information, U.S. Attorney Mike Dunavant, 25th Judicial District Attorney General Mark Davidson and FBI Special Agent in Charge M.A. Myers, will again announce today the availability of the $24,000 reward. Investigators are confident there are people in the community who can provide information that will assist in bringing this investigation to a conclusion. This reward is for information that directly assists law enforcement in the arrest and conviction of the person and/or persons responsible for the death of Michael Bell.
Anyone with information about the July 23, 1998 murder of Michael Bell at the McKee’s Stateline Convenience Store in Hardeman County should call 1-800-TBI-FIND.
Photos enhanced in the FBI’s lab in Quantico, Virginia, May 2018.
Michael Bell - Victim
26 February 2019
Virginia Man Charged with Use of Firearms and Stolen Car in Relation to Attempted Crime of Interstate Domestic ViolenceRead the Press Release
U.S. Attorney Matt Martin announcing charges against Steve Brantley Spence with Greensboro Police Chief Wayne Scott and Dr. Tony Watlington of Guilford County SchoolsGREENSBORO, N.C. – A federal grand jury in Greensboro, North Carolina, returned a three count indictment charging Steve Brantley Spence of Norfolk, Virginia, with interstate transportation of a stolen motor vehicle, traveling with the intent to kill, injure, harass, and intimidate in an attempt to commit a crime of domestic violence, and using and carrying firearms in relation to a crime of violence, announced Matt Martin, United States Attorney for the Middle District of North Carolina.
The indictment alleges that on December 3, 2018, Steve Brantley Spence, age 29, transported a stolen 2015 Mercedes Benz ML350 from Virginia to North Carolina, in violation of 18 U.S.C. § 2312. The indictment further alleges that on December 3, 2018, Spence traveled from Virginia to Greensboro, N.C., with the intent to kill, injure, harass, and intimidate two persons, each of whom then was a spouse, intimate partner, or dating partner of Spence, and in the attempt to commit a crime of violence, Spence possessed two handguns, in violation of 18 U.S.C. § 2261(a)(1). The indictment further alleges that on December 3, 2018, Spence did carry and use, by brandishing, two handguns, during and in relation to a crime of interstate domestic violence, in violation of 18 U.S.C. § 924(c).
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Spence faces a maximum sentence of life in prison and a $250,000 fine.
“Let there be no doubt, we will not tolerate people crossing state lines to hunt down former intimate partners, and we will prosecute such crimes to the fullest extent of the law,” said U.S. Attorney Martin. “This case reflects the strength of our federal-local partnerships, and the Greensboro Police Department did excellent work to apprehend Mr. Spence without harm to students or school faculty. GPD performed a thorough investigation in conjunction with our office to allow these charges to be brought.”
The case is being investigated by the Federal Bureau of Investigation and the Greensboro Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Veronica L. Edmisten, and by Assistant U.S. Attorney Clifton T. Barrett, Criminal Chief of the United States Attorney’s Office.
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Violent felon convicted of serial armed robberies of Waffle House restaurants and other businesses in DeKalb CountyRead the Press Release
ATLANTA – Joseph Orlando Hood, a previously convicted felon, has been convicted by a federal jury of several armed commercial robberies, including three Waffle House Restaurants and a United Inn and Suites Motel.
“Hood terrorized and nearly killed several people during his lengthy robbery spree,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the courage of the many victims in this case who testified at trial despite suffering ongoing trauma, and the diligence of our federal and local law enforcement partners, this violent serial robber will be kept off the streets of our district for many years.”
“This case is the product of a concerted collaborative effort on the part of ATF and its local partners to target, investigate, and eliminate the perpetrators of violent crime,” said Assistant Special Agent in Charge Beau Kolodka of the ATF Atlanta Field Division.
“We are very thankful that the partnership between state local and federal agencies have proven to be effective in making our communities safe. In this case, it has taken a very violent felon off the streets. It is successful prosecutions of cases like this, that strengthens our collaboration between law enforcement and citizens to address crime and the fear of crime in our communities,” said Chamblee Police Chief Kerry Thomas.
According to U.S. Attorney Pak, the charges and other information presented in court: Between November 12, 2016, and November 17, 2016, Hood committed commercial armed robberies at Waffle House restaurants in Chamblee, Lithonia, and Tucker, Georgia, at the United Inn and Suites in Decatur, and the Raymok Bar and Grill in Scottsdale. All of the businesses were located in Georgia.
During one of the Waffle House robberies, Hood shot at a customer who tried to escape. He also pistol-whipped the manager of United Inn and Suites motel during the armed robbery of that business. Hood’s armed robbery spree ended after he robbed Raymok Bar and Grill. While Hood fired several rounds at a customer who tried to escape during the robbery, the manager of the bar shot Hood in the leg. Hood fled but was quickly located by law enforcement officers in a nearby apartment complex.
Joseph Orlando Hood, 32, of Scottdale, Georgia, will be sentenced before U.S. District Steve C. Jones on May 20, 2019 at 10:00 a.m. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the DeKalb Police Department, and the Chamblee Police Department.
Assistant U.S. Attorneys Dash A. Cooper and Joseph Plummer prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Vinalhaven Man Sentenced to over Two Years for Making Interstate ThreatsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Eric Malmstrom, 40, of Vinalhaven, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 27 months in prison and three years of supervised release for transmitting threatening interstate communications. Malmstrom was convicted on August 27, 2018, after a one-day jury trial.
The evidence at trial revealed that on three occasions in February and March of last year, Malmstrom placed telephone calls to an employee of the Swedish embassy in Washington, D.C., threatening to slit the employee’s throat. Between September 2017 and March 2018, Malmstrom placed hundreds of calls to the embassy and to the employee.
In pronouncing sentence, Judge Hornby described Malmstrom’s offenses as “a despicable set of crimes,” in which Malmstrom threatened people “with vile mutilation and death.”
“This case demonstrates that threats against public officials will be aggressively investigated and prosecuted,” said U.S. Attorney Frank. “Targeting a government official because of his or her official status threatens not only the particular individual victim but also the system of government as a whole.”
“Today’s sentencing of Eric Malmstrom sends a strong message: Diplomatic Security is committed to making sure those who threaten diplomatic personnel in the United States face consequences,” said Bart Brown, director of the U.S. Department of State, Diplomatic Security Service’s (DSS’) Office of Protective Intelligence Investigations (PII). “DSS’s strong relationship with the U.S. Department of Justice, the U.S. Secret Service and the Knox County Sheriff’s Department is essential in the pursuit of justice.”
This case was investigated by the DSS-PII; the U.S. Secret Service; and the Knox County Sheriff’s Department.
Vian Man Sentenced to 60 Months for Attempted Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Donald Lee Blackbird, age 59, of Vian, Oklahoma, was sentenced to 60 months’ imprisonment and 5 years of supervised release for Attempted Sexual Abuse Of A Minor, in violation of Title 18, United States Code, Sections 1153, 2243(a) and 2246. The charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
The Indictment alleged that on or about April 3, 2018, in the Eastern District of Oklahoma, in Indian Country on an allotment, the title to which had not yet been extinguished, the defendant, an Indian, knowingly attempted to engage in a sexual act as defined in Title 18, United States Code, Section 2246(2), with a person who had attained the age of 12 years, but had not attained the age of 16 years and was at least four years younger than defendant, with an intent to arouse or gratify the sexual desire of any person.
United States Attorney Brian J. Kuester said, “People that prey upon children are and always must be priority targets for investigation and prosecution. Predators will take advantage of every opportunity they have to satisfy their deviant desires, even if that means taking advantage of a child. Their crimes, by their own design, occur in private and thus can be difficult to prove. I applaud the victim for having the courage to endure the investigative and prosecutorial process so the Cherokee Nation Marshal Service, the FBI, and this office could seek justice against Mr. Blackbird.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Two Sentenced for Identity and Mail Theft in Sacramento, San Joaquin, and Stanislaus CountiesRead the Press Release
SACRAMENTO, Calif. — Derek Hillgert, 29, of Carmichael, and Jeffrey Wilhite, 31, of Linden, were each sentenced Monday to five years in prison for committing access device fraud, aggravated identity theft, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hillgert and Wilhite worked together to steal U.S. mail and conduct transactions with stolen identities. On the day of their arrests, they possessed over 200 pieces of stolen mail addressed to over 100 victims. With Wilhite’s assistance, Hillgert used a stolen identity to purchase a van at a dealership in Modesto. Hillgert presented a fraudulent driver’s license in the other person’s name but with Hillgert’s photograph, and he obtained a loan in the other person’s name for over $39,000. Wilhite opened a Target debit card account using a second stolen identity, and the defendants made more than $3,000 in purchases with it.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Tracy Police Department. Assistant U.S. Attorney Miriam R. Hinman prosecuted the case.
Two Sentenced for Heroin, Fentanyl and Firearm ChargesRead the Press Release
St. Louis, MO – James Earl Paulette, 37, of Saint Louis County, was sentenced to five years imprisonment today for charges related to heroin and fentanyl distribution and illegal firearm possession. Paulette appeared before U.S. District Judge Henry Autrey. Co-defendant Terrell Lee Davis, 33, of Saint Louis County, was previously sentenced to five years imprisonment on similar charges.
According to court documents, between August 16 and 28, 2017, Paulette and Davis repeatedly sold over 60 capsules of heroin in Saint Louis County, Missouri. On August 28, 2017, Davis was arrested after distributing heroin. At the time of arrest, Davis possessed a loaded pistol, ammunition, and additional controlled substances including heroin, fentanyl, marijuana and methamphetamine.
That same day, a search warrant was executed at Paulette's residence in St. Louis County, Missouri. Multiple firearms and controlled substances were recovered including fentanyl, heroin and methamphetamine.
This case was investigated by the St. Louis County Police Department and Federal Bureau of Investigation (FBI). Assistant United States Attorney Sara Koppenaal is handling the case for the U.S. Attorney's Office.
Two More Opioid Dealers Sentenced for Their Roles in Elmira Drug Trafficking RingRead 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 Anthony J. Prettyman, 28, of Elmira, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of a fentanyl analogue, was sentenced to serve 125 months in federal prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Judge Geraci sentenced Dwayne Banks, 30, of Elmira, NY, to serve 108 months in federal prison for his conviction on the same offense.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that both defendants were part of a large-scale opioid manufacturing and trafficking organization that operated in the Southern Tier of New York between 2015 and May 2017. As members of the organization, Prettyman and Banks were mid-level dealers of blue pills containing furanyl fentanyl and U-47700 in the Elmira area. The blue pills were manufactured by the leaders of the organization – Robert Ian Thatcher and Maximillian Sams – and made to look like legitimate 30 milligram Percocet pills.
Prettyman admitted to selling pills to various customers, including a 21 year-old female who ultimately died of drug overdose from using the pills. In addition, Prettyman admitted to smuggling more than 5,300 pills containing furanyl fentanyl to North Carolina in October 2016. Prettyman was caught by the Iredell County (North Carolina) Sheriff’s Office transporting the pills in the false bottom of a fake paint can.
To date, 16 members and associates of the opioid manufacturing and trafficking operation have been convicted of federal narcotics offenses. Seven defendants have been sentenced:
Thatcher was sentenced to serve 23 years in federal prison; Thatcher’s girlfriend, Amber Bates, who was convicted of money laundering conspiracy, was sentenced to five years probation to include six months of home detention; Robert J. Elford was sentenced to 121 months in federal prison; Edward Barrett was sentenced to 90 months in federal prison; Dusty Pemberton was sentenced to 70 months in federal prison; Deven Hill was sentenced to 37 months in federal prison; and Isaiah McLaurin, who was convicted of witness tampering after threatening an individual working with the Drug Enforcement Administration on Facebook, was sentenced to serve 57 months in federal prison.
Today’s sentencings are the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, Community Narcotics Enforcement Team Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; the Elmira Police Department, under the direction of Chief Joseph Kane; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Pennsylvania State Police, under the direction of Acting Commissioner Lieutenant Colonel Robert Evanchick; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell; and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.# # # #
Two More Defendants Sentenced in Methamphetamine Trafficking InvestigationRead the Press Release
United States Attorney Joe Kelly announced that on February 25, 2019, Senior United States District Judge Laurie Smith Camp, sentenced Jasive Zamora-Carrillo to a term of imprisonment of 168 months, and Luis Tafoya to a term of imprisonment of 18 months. Zamora-Carrillo and Tafoya will serve their sentences in the U.S. Bureau of Prisons. Zamora-Carrillo pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and use of facilities in interstate commerce in aid of racketeering. Ramon Penunuri-Noriega, another defendant in the case, was previously sentenced on January 14, 2019, to an equivalent term of imprisonment.
During the first few months of 2018, Zamora-Carrillo conspired with others to distribute multi-pound quantities of methamphetamine to customers throughout eastern Nebraska and southwest Iowa. Luis Tafoya, a customer, pleaded guilty to possession with intent to distribute methamphetamine. Tafoya drove with a fourth co-defendant from Lincoln, Nebraska, to a casino in Council Bluffs, Iowa, to obtain approximately four ounces of methamphetamine.
The case was primarily investigated by the Omaha Field Division of the Drug Enforcement Administration, the Omaha Police Department, and the Southwest Iowa Narcotics Task Force.
Two Men Involved in the Illegal Manufacture and Distribution of Xanax and Steroids are SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that two men have been sentenced in Hartford federal court for conspiring to manufacture counterfeit Xanax tablets and anabolic steroids, and distribute the controlled substances on the dark web. Yesterday, U.S. District Judge Alvin W. Thompson sentenced WILLIAM FUSCO, 34, of Philadelphia, Pennsylvania, to 20 months of imprisonment, followed by three years of supervised release. Today, Judge Thompson sentenced JASON CHEN, 34, of Norwich, Connecticut, to three years of probation, the first three months of which Chen must serve in home confinement.
According to court documents and statements made in court, Fusco marketed counterfeit Xanax tablets and anabolic steroid pills on dark web forums such as Alphabay. Fusco paid Chen to maintain two pill presses at Chen’s residence and help Fusco manufacture and distribute the counterfeit Xanax and steroids to Fusco’s customers. Fusco arranged to have chemicals needed to produce Xanax and steroids shipped to Chen’s residence. On several occasions, Fusco traveled to Chen’s home to mix chemicals and press chemicals, including Alprazolam powder into Xanax pills.
Fusco sent Chen emails that indicated the product, quantity, and mailing address of each customer, as well as a link for Chen to click on to get a prepaid shipping label that corresponded to the order. Chen packaged the controlled substances, printed the prepaid shipping labels, applied the labels onto the corresponding packages, and then dropped the packages into various blue U.S. Postal Service collection boxes. For several months, Chen shipped approximately 30 packages per week. Fusco paid Chen between $10 and $20, in Bitcoin, for each package.
A court-authorized search of Chen’s residence revealed two industrial pill tableting machines, tool and dye molds, one electric powder mixer/hopper, approximately 65,122 Xanax tablets, approximately 792 grams of Alprazolam powder, approximately 12,000 steroid capsules, more than 321/100ml liquid steroid vials, and approximately $8,900 in cash.
Fusco was arrested on a federal criminal complaint on June 16, 2017. On that date, a court-authorized search of his residence revealed tool and dye molds, electronic scales, chemistry equipment, pill capsules, steroid bottle caps, other items used to process and package controlled substances, $42,448 in cash, eight firearms, and ammunition.
In December 2017, Fusco and Chen each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, controlled substances, and one count of possession of a tableting machine or any equipment used to manufacture a controlled substance. In pleading guilty, they admitted that they conspired to distribute more than 213,000 counterfeit Xanax tablets and thousands of units of anabolic steroids.
This matter was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
Two Malaysian Nationals Indicted for Conspiring to Illegally Export Firearm Parts to Hong KongRead the Press Release
BOSTON – Two Malaysian nationals were indicted today for conspiring to illegally export firearm parts from the United States to Hong Kong.
Lionel Chan, 35, a resident of Brighton, and Muhammad Mohd Radzi, 26, who resides in Brooklyn, N.Y., were each indicted on one count of conspiring to violate the Arms Export Control Act. Chan was also indicted for obstruction of justice. On Jan. 31, 2019, Chan and Radzi were arrested and charged by criminal complaint.
According to the indictment, beginning in or around March 2018, Chan began purchasing a variety of U.S.-origin firearm parts online, including parts used to assemble AR-15 assault rifles and 9MM semi-automatic handguns, for a buyer located in Hong Kong. Many of the firearm parts that Chan purchased and exported to Hong Kong are defense articles that are designated on the United States Munitions List and therefore cannot be exported from the United States without first obtaining an export license or written authorization from the U.S. Department of State. Nonetheless, Chan allegedly shipped the firearm parts via Federal Express to the buyer in Hong Kong without first obtaining the necessary export licenses. Chan intentionally concealed the contents of the shipments by providing Federal Express with false information about the shipments, and by concealing the parts inside of each package. Between March and May 2018, Chan allegedly shipped at least 12 packages containing firearm parts from Brighton to the buyer in Hong Kong.
In or around April 2018, Radzi allegedly joined the conspiracy and began illegally exporting firearm parts to Hong Kong as well. Between May and October 2018, Radzi allegedly shipped 21 packages from Brooklyn, N.Y., to the buyer in Hong Kong. In October 2018, two of those packages were interdicted by Hong Kong authorities and found to contain numerous firearms parts, including a firing pin and gun sight, which are defense articles and controlled under Category I of the United States Munitions List. Like Chan, Radzi failed to obtain an export license for any of these shipments.
In addition to the conspiracy charge, Chan was also indicted for obstructing justice. According to the indictment, during a flight from Dublin, Ireland to Boston on January 2, 2019, Chan deleted text messages between himself and the buyer in Hong Kong regarding the illegal export of firearm parts from the United States to Hong Kong without the necessary export licenses.
The charge of conspiring to illegally export firearms provides for a sentence of no greater than five years in prison, one year of supervised release and a $250,000 fine. The charge of obstructing justice provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The Massachusetts State Police and U.S. Customs and Border Protection also assisted with the investigation. Assistant U.S. Attorneys George P. Varghese and Jason A. Casey of Lelling’s National Security Unit are prosecuting the case.
Details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Charged with Robbing Cellular Phone Store in Fort WayneRead the Press Release
FORT WAYNE, IN –Quran Waterford, 34, of Bloomington, Indiana and Gary McCaleb, 29, of Harvey, Illinois were charged with Hobbs Act Robbery, and possessing and using a firearm during the commission of a crime of violence announced U.S. Attorney Thomas L. Kirsch, II.
The complaint alleges that on December 13, 2018, Waterford, McCaleb and a third unidentified man entered a cellular phone store in Fort Wayne, Indiana, and displayed a firearm. The three men confined two store employees and two customers and stole numerous cell phones and other merchandise, worth over $58,000. Waterford and McCaleb were apprehended by the Fort Wayne Police Department after a brief vehicle pursuit.
U.S. Attorney Kirsch said, “Bold robberies such as this commands swift response from law enforcement. I want to commend the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fort Wayne Police Department for their work in investigating this case. Aggressive prosecution of violent crimes is one of the District’s top priorities.”
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, 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 is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Two Businessmen Charged with Foreign Bribery in Connection with Venezuela Bribery SchemeRead the Press Release
A former sales representative and the president of a U.S.-based company were charged in an indictment unsealed today on foreign bribery, wire fraud and money laundering charges for their alleged roles in a scheme to corruptly secure business advantages, including contracts and payment on past due invoices, from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston Field Office made the announcement.
Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were charged in a five-count indictment returned in the Southern District of Texas on Feb. 21, and unsealed today. Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida. Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of conspiracy to launder money.
The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto, a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), and Muller, the President of Company A, conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business. According to the indictment, in exchange for bribe payments the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices. The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company charging Company A three percent of whatever payment Company A had received from PDVSA and directing Company A to send payment to a Swiss bank account. According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid.
The wire fraud charges against Pinto and Muller are based on allegations that, in addition to directing Company A money to the three PDVSA officials to benefit Company A, Pinto and Muller received kickbacks in connection with the scheme. In total, Pinto is alleged to have received over $985,000 in kickback payments, and Muller over $258,000.
Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston – have already pleaded guilty in connection with the case and are pending sentencing.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami. Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollison of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, and the Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Businessman Charged with Foreign Bribery in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON - A former sales representative and the president of a U.S.-based company surrendered to federal authorities yesterday for their alleged roles in a scheme to corruptly secure business advantages from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). These business advantages included contract awards and payment on past due invoices.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were arrested in Miami on arrest warrants based on a five-count indictment returned in the Southern District of Texas (SDTX) on Feb. 21, and unsealed today. Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida. Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud and one count of conspiracy to launder money.
According to the indictment, Pinto was a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), while Muller was Company A’s president. The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto and Muller conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business. In exchange for bribe payments, the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices. The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company. The invoices charged Company A three percent of whatever payment Company A had received from PDVSA and directed Company A to send payment to a Swiss bank account. According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid.
The wire fraud charges against Pinto and Muller are based on allegations that, in addition to bribing the three PDVSA officials, Pinto and Muller received kickbacks in connection with the scheme. In total, Pinto is alleged to have received more than $985,000 in kickback payments and Muller over $258,000.
Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston - have already pleaded guilty in connection with the case and are pending sentencing.
With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing U.S. government investigation into bribery at PDVSA. HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami. SDTX Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson and Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section are prosecuting the case. AUSA Kristine Rollison of the SDTX is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Traveler Sentenced for Attempting to Have Sex with a ChildRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Adam Scott Pike, 43, formerly of Rochester, Minnesota, was sentenced on Friday, Feb. 22, 2019, by U.S. District Judge Sharon L. Gleason, to serve 22.5 years in prison, to be followed by a life term of supervised release, for traveling to Alaska with the intent to have sex with a minor, and distribution of child pornography.
According court documents, in early 2017, Pike communicated through a social media application with an individual in Alaska. During those communications, the Alaska man sent sexually explicit images of a minor, and discussed with Pike the possibility of Pike traveling to Alaska in order to have sex with the minor.
On or about March 2, 2017, the FBI arrested the Alaska man and assumed control of his account. Conversations between Pike and an undercover FBI Special Agent about Pike’s trip to Alaska continued. During these communications, Pike sent to the undercover FBI Special Agent two videos of child pornography. Pike also sent images of himself masturbating that he requested be shown to the minor with who he was going to have sex. Pike traveled from Minnesota on April 3, 2017. When Pike arrived in Alaska, he contacted the FBI undercover Special Agent and told the Special Agent to come to a local motel with the minor. The FBI arrested Pike at the motel.
At sentencing, Judge Gleason noted the harm that Pike’s conduct had on the victims, including the minor with whom he intended to have sex, as well as the victims in the child pornography images he distributed. Judge Gleason stated that the sentence was intended to deter others who might contemplate similar conduct. “A sentence of this nature,” said Judge Gleason, “is a long and lengthy sentence that can hopefully deter others.”
Judge Gleason also ordered over $45,000 in restitution to be paid by Pike to the victims in this case. That money is to be used to pay for ongoing and future counseling needs for the victims. The Court also ordered that Pike reimburse the Violent Crimes Compensation Board for expenses incurred in assisting the victims of this case.
This case was investigated by the Federal Bureau of Investigation (FBI), and the Anchorage Police Department, Crimes Against Children Unit (CACU). Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Three Arrested in San Antonio and Charged Federally with Meth TraffickingRead the Press Release
In San Antonio today, authorities filed a federal criminal complaint against three San Antonio residents who were arrested last night while attempting to distribute over four kilograms of crystal methamphetamine, announced U.S. Attorney John Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
The complaint charges 18–year-old Rabbi Lee Ponce, 18–year-old Rudy Aragon, and 30–year-old Mercedes Trinidad, with one count of possession with intent to distribute methamphetamine. According to the complaint, federal and state authorities arranged for an undercover drug deal with Ponce who agreed to sell multiple kilograms of crystal methamphetamine. Ponce, along with Aragon, arrived at the agreed location last night followed shortly thereafter by Trinidad. After a canine unit alerted on Trinidad’s car, authorities recovered approximately 4.6 kilograms of crystal methamphetamine from inside her vehicle.
All three defendants remain in federal custody pending detention hearings in U.S. Magistrate Court in San Antonio. Upon conviction, the defendants face between ten year and life in federal prison.
The DEA is investigating this case together with the Guadalupe County Sheriff’s Office and the Texas Department of Public Safety.
Assistant U.S. Attorney Sean O’Connell is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Three Appleton Area Residents Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced today that a federal indictment was returned against Yia Thao (age: 31) and Yaj Vang (age: 29) both of Appleton, Wisconsin, and Nalee Xiong (age: 36) of Neenah, Wisconsin.
The indictment alleges that the trio conspired to possess in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute. If convicted, each faces a mandatory 10 year prison sentence and up to a lifetime of imprisonment. They could also be fined up to $10,000,000.
This case was investigated by the U.S. Postal Inspection Service and the Lake Winnebago Area Metropolitan Enforcement Group (LWAM). The case 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 Kenneth Gales, 414-297-1700
Terry Slaughter Pleads Guilty to Embezzlement of Labor Union AssetsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today, in federal court, TERRY SLAUGHTER, age 48, pled guilty to embezzlement of labor union assets. In pleading guilty, SLAUGHTER, agreed to make restitution to the United Food and Commercial Workers Local Union 1208 in the amount of $62,315.38.
On January 8, 2019, SLAUGHTER was charged in a Criminal Information with knowingly, intentionally and willfully embezzling, stealing, abstracting and converting to his own use and the use of another, on a recurring basis, money, funds, property, and other assets of a labor organization of which he was an officer, knowing his appropriation of the property was unauthorized. This Information charged SLAUGHTER with using the embezzled money primarily to fund vacations and purchase personal items.
In 2011, Terry Slaughter was elected secretary-treasurer of the United Food and Commercial Workers (“UFCW”), Local Union 1208. The Local encompasses North and South Carolina and has approximately 3600 active members. As the Secretary-Treasurer, Slaughter had financial oversight of the Local’s expenditures, bills, staff benefits, and payroll. SLAUGHTER also acted as a counter signature on union checks and was responsible for providing monthly financial statements to the executive board as well as writing/maintaining the minutes from membership meetings.
In 2015, the UFCW initiated an audit of the Local after placing it under a trusteeship on March 30. The audit revealed that between January 2012 and March 2015, SLAUGHTER embezzled $62,315.38 in union funds by receiving unauthorized checks and making unauthorized purchases with his assigned debit card. The audit also revealed that SLAUGHTER failed to maintain required financial records and concealed his embezzlement by destroying monthly meeting minutes.
Mr. Higdon commented: “Terry Slaughter held a position of trust on behalf of the thousands of members of the United Food and Commercial Workers Union across North and South Carolina. This prosecution is part of the Department of Justice’s ongoing effort to ensure honesty and integrity for the members of our union community.”
The applicable total maximum statutory penalty for this crime is 5 years imprisonment, a $10,000 fine, and 3 years of supervised release and restitution.
Investigation of this case was conducted by the U.S. Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Toby W. Lathan and Special Assistant United States Attorney Tamika G. Moses are representing the government in this case.
Tahlequah Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jack Dewayne Neugin, age 50, of Tahlequah, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about April 27, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Cherokee Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Statement of U.S. Attorney Kennedy Regarding Verdict in U.S. v. Corey KrugRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051“The defendant, like every person on the street, is guaranteed certain rights under our Constitution. Among those rights are the rights to due process and a fair trial. The defendant exercised his constitutional rights and the jury acquitted him on three counts. That is the way our Constitution and our system of justice are supposed to work. We accept the jury’s verdict, and we will be seeking an immediate retrial of the defendant on Count 4 of the Superseding Indictment.”
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South Lake Tahoe Man Sentenced to Prison for Destruction of Archaeological SitesRead the Press Release
SACRAMENTO, Calif. — Timothy Brian Harrison, 50, of South Lake Tahoe, was sentenced today by United States District Judge John A. Mendez to one year and one day in prison and ordered to pay $113,000 in restitution for two counts of excavation and removal of archaeological resources from public lands and one misdemeanor count of unlawful possession of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Harrison conducted illegal digging at prehistoric Native American archaeological sites on federal lands in Alpine and El Dorado Counties, near Lake Tahoe. He collected tens of thousands of ancient artifacts from multiple archaeological sites, and virtually destroyed two very significant archaeological sites. Archaeologists explained that Harrison’s conduct led to the irreplaceable loss of unique historical information. Archaeologists learn the cultural history of the prior inhabitants from artifacts left behind by the inhabitants by carefully documenting where the artifacts are found, and looting of the artifacts destroys that context.
Representatives of the Washoe Tribe of California and Nevada spoke about the impact on the tribe from this destruction of sites. They explained that Harrison’s digging erased their past and interfered with the tribe’s ability to teach younger generations about their history and culture.
This case was the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, the National Park Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, California State Fish & Wildlife Service, California Highway Patrol, and Alpine County Sheriff’s Department. Assistant U.S. Attorneys Samuel Wong, Christopher S. Hales, and Miriam R. Hinman prosecuted the case.
Harrison is out of custody and was ordered to self-surrender to begin serving his sentence on April 23, 2019.
San Jose Resident Sentenced to More Than 13 Years in Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
SAN JOSE – Tuan Ngoc Nguyen was sentenced today to 160 months in prison for his role in a conspiracy to distribute methamphetamine, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Beth Labson Freeman, United States District Judge.
Nguyen, 51, of San Jose, pleaded guilty to the charge on February 6, 2018. At his change of plea hearing, Nguyen admitted that between February 10 and February 17 of 2017, he conspired with others to sell a pound of methamphetamine to a confidential informant working for the DEA. The purchased substance was later tested and contained approximately 430.5 grams of 100% pure “crystal meth” (d-methamphetamine hydrochloride). On October 19, 2017, a federal grand jury returned a second superseding indictment charging Nguyen with one count of conspiracy to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841, and one count of distribution of methamphetamine, in violation of 21 U.S.C. § 841. Nguyen pleaded guilty to both counts.
In addition to the prison term, Judge Freeman sentenced the defendant to a five-year period of supervised release. Nguyen has been in custody since his arrest and will begin serving his sentence immediately.
Nguyen’s co-defendants Julio Camacho Pacheco and Quang Phuong Huynh pleaded guilty to their respective roles is the conspiracy on April 3, 2018, and September 4, 2018, respectively. On July 17, 2018, Judge Freeman sentenced Pacheco to 140 months in prison, to be followed by 5 years of supervised release. On December 11, 2018, Judge Freeman sentenced Huynh to 120 months in prison to be followed by 5 years of supervised release.
Assistant U.S. Attorney Marissa Harris prosecuted the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the DEA.
Sacramento Man Pleads Guilty to Selling Unapproved Drugs on the InternetRead the Press Release
SACRAMENTO, Calif. — Scott Edward Cavell, 35, of Sacramento, pleaded guilty today to one count of causing misbranded drugs to be introduced into interstate commerce, U.S. Attorney McGregor W. Scott announced.
According to court documents, between 2015 and 2017, Cavell, with others, developed a scheme to market and sell a drug, 2,4-Dinitrophenol (also known as DNP), as a weight loss drug and “fat burner” despite knowing that DNP is unapproved by the FDA as a substance for human consumption. Cavell sold DNP in pill form and called it a fertilizer — a term under which is it legally sold in other circumstances.
DNP has been commercially used to manufacture dyes and wood preservatives, as a fertilizer, and as a pesticide. The U.S. Food and Drug Administration has declared that DNP is too toxic to be used for human consumption under any circumstances.
This case is the product of an investigation by the U.S. Food and Drug Administration Office of Criminal Investigations, Drug Enforcement Administration, Homeland Security Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Paul Hemesath is prosecuting the case.
Cavell is scheduled to be sentenced on June 4, 2019, by U.S. District Judge John A. Mendez. Cavell faces a maximum statutory penalty of three years in prison and a $10,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Red Lake Man Charged with First Degree MurderRead the Press Release
United States Attorney Erica H. MacDonald today announced an indictment charging JEREMIAH KINGBIRD, 38, with first and second degree murder.[1] KINGBIRD made his initial appearance yesterday before Magistrate Judge Jon T. Huseby in U.S. District Court in Bemidji, Minnesota.
According to the indictment and documents filed in court, on January 6, 2019, law enforcement responded to a call from a woman who said that an unknown male had stopped at her house and said that he had found his wife on Old Ponemah Road and that she had been there all night. Responding officers found the victim, KINGBIRD’S wife, lying face down in the snow; she had severe physical injuries, and was having difficulty breathing. The victim was transported to the Red Lake IHS Hospital where hospital staff were unsuccessful in reviving her.
According to the indictment and documents filed in court, during a search of KINGBIRD’S vehicle, law enforcement observed blood on the front passenger window of the vehicle. KINGBIRD admitted to physically assaulting his wife and leaving her outside in the elements following a night of drinking in Bemidji.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
This case is being prosecuted by Special Assistant U.S. Attorney Gina L. Allery and Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
JEREMIAH KINGBIRD, 38
Ponemah, Minn.
Charges:
- Murder in the first degree, 1 count
- Murder in the second degree, 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 accusations, and the defendant is presumed innocent unless and until proven guilty.
Rapid City Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rudolph Engel, age 63, was sentenced on February 25, 2019, to 10 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Engel was indicted for the charge by a federal grand jury on September 17, 2017. The conviction stems from Engel conspiring with others in receiving at least 500 grams of methamphetamine from California and Colorado, and then distributing it in the District of South Dakota between 2016 and 2017.
This case was investigated by the Unified Narcotics Enforcement Team, the Department of Homeland Security Investigations, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Engel was immediately turned over to the custody of the U.S. Marshals Service.
Prison Guard Sentenced for Sexual Relationship with InmateRead the Press Release
A federal corrections officer was sentenced yesterday to more than a year behind bars – the same environment where she took advantage of a prison inmate less than two years ago.
Erica McCoy, 32, pleaded guilty in August to abusive sexual contact with an inmate at FCI Seagoville, an all-male, low-security institution southeast of Dallas .
In plea papers, Ms. McCoy said she stumbled upon the inmate – identified only by his initials, D.E. – cleaning her office carpet in the summer of 2017. They had regular sexual contact, Ms. McCoy admitted.
Their relationship ended when D.E. was placed into the Special Housing Unit (SHU) and Ms. McCoy resigned amid an investigation by the Department of Justice Office of the Inspector General.
“Today’s sentence demonstrates that corruption and abuse of power have no place in our federal prisons and will not be tolerated,” stated Deputy Assistant Inspector General for Investigations Elise Chawaga. “Our office takes allegations of sexual contact between correctional officers and inmates seriously, and we thank the U.S. Attorney’s Office for the Northern District of Texas for their hard work on this case.”
A federal judge sentenced Ms. McCoy to one year and one day in federal prison and ordered her to self-surrender within 90 days. She will also be required to register as a sex offender.
The Department of Justice – Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
Pittsfield Man Pleads Guilty to Conspiracy to Violate Firearms LawsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ethan Rumery, 24, of Pittsfield, Maine, pled guilty yesterday in U.S. District Court to conspiring to violate federal firearms laws.
According to court records, between February 2015 and September 2016, Rumery conspired with others to fraudulently obtain firearms from federally licensed dealers. When buying the firearms, Rumery and his conspirators falsely reported that they were the actual purchasers of the firearms, when, in fact, the firearms were purchased for individuals residing outside of Maine.
Rumery faces up to 5 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Massachusetts State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as prosecuted as part of 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.
Pastor Sentenced to Prison for Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria pastor was sentenced today to 8 years in prison for a $2 million fraud scheme that victimized members of his congregation, clergymen, and prospective investors in a Nigerian oil scheme.
“Millender preyed upon the religious beliefs and charitable desires of more than two dozen victims and has demonstrated little to no remorse for his actions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His rampant fraud scheme has exacted a heavy emotional, spiritual and financial toll on his victims, and today’s sentence reflects the seriousness of his crime. My thanks to the trial team and our investigative partners for their terrific work on this righteous case.”
According to court documents and trial testimony, Terry Wayne Millender, 54, the former senior pastor of Victorious Life Church in Alexandria, operated Micro-Enterprise Management Group (MEMG), a Virginia company that alleged to help poor people in developing countries by providing small, short-term loans to start or expand existing businesses by working with a network of established micro-finance institutions. Terry Millender served as chief executive officer of MEMG. Millender and his co-conspirators recruited investors, many of whom invested their retirement funds in a shell company called Equity Trust that investors were falsely led to believe was a third party entity. To recruit investors, Terry Millender emphasized MEMG’s Christian mission and use of the funds to help the poor, promising guaranteed rates of return, assuring investors that the loans’ principal was safe and backed by the assets of MEMG. Instead, the money Millender obtained from investors was used to conduct risky trading on the foreign exchange currency market and options trading, to make payments towards the purchase of a $1.75 million residence for Terry Millender and his wife, to purchase lavish furnishings for their home, and on other personal expenses. To conceal how they had actually used the money, Millender falsely assured investors that they would get their money back and blamed delays in repaying investors on the 2008 financial crisis, among other things.
After MEMG failed, Terry Millender created another entity called Kingdom Commodities Unlimited (KCU), which purportedly specialized in the brokering of Nigerian oil deals. Multiple victims entered into loan agreements with Millender, totaling over $450,000. Like MEMG, the KCU agreements lured prospective investors into giving the Millenders money by promising high rates of return and short term loans. The Millenders used the KCU lenders’ money to pay for their rent and golf trips, as well as a birthday party and other personal expenses.
Millender also failed to disclose any of the income he received from the MEMG and KCU fraud schemes on his income taxes. He was ordered to pay more than $2 million in restitution. This investigation was initiated after a victim of the MEMG scheme contacted authorities, including the Virginia State Corporation Commission.
“The fraudulent solicitation of investments through the US Mail not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Peter Rendina, U.S. Postal Inspection Service - Washington Division. “With our partner law enforcement agencies, Postal Inspectors will continue to aggressively investigate these crimes and continue to ensure our customers’ trust in the United States Postal Service.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Jamar K. Walker, Kimberly R. Pedersen, and Katherine L. Wong prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-239.
Owner of Construction Company and Three Others Charged with Disaster Fraud and Identity Theft in the United States Virgin IslandsRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that charges have been unsealed against Juli Campbell and three others for fraud related to the Federal Emergency Management Agency’s (FEMA’s) Sheltering and Temporary Essential Power (STEP) Program.
The STEP Program provides federal funds for essential repairs to homes damaged by Hurricanes Irma and Maria. According to the Indictment returned by the Grand Jury in the case, Campbell operated Campbell Development, LLC, which was a subcontractor performing STEP-funded work in St. Croix, VI. Campbell and her co-defendants are alleged to have executed a scheme whereby they submitted fraudulent invoices related to a STEP-funded subcontract, even including on such invoices the names of workers who were not actually on the island.
"The Department of Justice is committed to ensuring that federal dollars are used for their intended purposes," said U.S. Attorney Shappert. "The United States Attorney’s Office for the Virgin Islands is especially committed to making certain that federal funds intended for the victims of natural disasters are accounted for and used consistent with FEMA’s directives."
"The DHS OIG takes any and all allegations of fraudulent activity seriously and intends to hold accountable those who try to use natural disasters such as Hurricane Maria to take advantage of others," said Special Agent in Charge Jay H. Donly of the DHS OIG Miami Field Office. "The DHS OIG will continue to use its investigative resources to stop those who use these circumstances for personal and illegal gain."
This case is being investigated by the Department of Homeland Security – Office of the Inspector General as well as Homeland Security Investigations, with support from Customs and Border Protection, Air and Marine Operations. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
Ohio Man Charged with Traveling to Pennsylvania for Sex with a MinoRead the Press Release
PITTSBURGH – An Ohio resident has been indicted by a federal grand jury in Pittsburgh on a charge of traveling with intent to engage in illicit sexual conduct, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 19 and unsealed on February 22, named Jeffrey Judd, 60, Vienna, Ohio, as the sole defendant.
According to the indictment, Judd, on June 1, 2017, knowingly traveled in interstate commerce from Vienna, Ohio, to Hermitage, Pennsylvania, for the purpose of engaging in sexual acts with a minor.
The law provides for a maximum total sentence of 30 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.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Hermitage Police Department conducted the investigation leading to the indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ocean County Man Sentenced to 70 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Toms River man was sentenced today to 70 months in prison for distributing images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced.
David Nelson, 44, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
As a result of an investigation conducted by the FBI Louisville, Kentucky, field office, law enforcement officers arrested an individual after he offered to broadcast the sexual abuse of his daughter over Kik Messenger to an undercover officer. A search of his cell phone revealed chat group communications between that individual and another Kik user operating under the user name “candicesloan1995,” which was later revealed to be Nelson. Nelson was arrested April 9, 2018.
Nelson admitted today that between Oct. 24, 2017 and Oct. 26, 2017, he used his Kik account under the user name “candicesloan1995” to transmit at least 26 images of child pornography to another Kik user. Nelson also admitted that he was an administrator of multiple Kik chat rooms in which child pornography was shared and discussed.
In addition to the prison term, Judge Wolfson sentenced Nelson to five years of supervised release.
U.S. Attorney Carpenito credited FBI special agents of the Franklin Township Resident Agency, under the direction of Special Agent in Charge Gregory Ehrie in Newark, FBI special agents under the direction of Special Agent in Charge Amy S. Hess in Louisville, and FBI special agents under the direction of Special Agent in Charge Timothy Slater in Detroit, with the investigation leading to today’s sentencing. He also thanked the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for its assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
Notice of Court ProceedingsRead the Press Release
COLUMBIA, SOUTH CAROLINA -- United States Attorney Sherri A. Lydon stated today that a Pre-Trial Conference has been scheduled in the case of United States v. Daniel Edward Johnson, Case No. 3:18-863. A plea agreement has been filed. Senior United States District Court Judge Cameron McGowan Currie will preside.
WHEN: Tuesday, February 26, 2019, at 2 p.m.
WHERE: Matthew J. Perry Courthouse
901 Richland Street, Courtroom # 1, Columbia, SC
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Muskogee Man Pleads Guilty to Methamphetamine Distribution and Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gatlin Gary Morgan, age 37, of Muskogee, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A, punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00, or both; and to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about October 8, 2018, within the Eastern District of Oklahoma, defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleges that on or about October 8, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Monongalia County woman admits to drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Katina Sabatino, of Morgantown, West Virginia, has admitted to her role in a drug distribution operation, United States Attorney Bill Powell announced.
Sabatino, age 25, pled guilty to one count of “Unlawful Use of Communication Device.” Sabatino admitted to using a phone to assist with distributing controlled substances in April 2018 in Monongalia County.
Sabatino faces up to four years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.