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25 February 2019
Philadelphia man admits to role in a methamphetamine distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry Willie Trapp, of Philadelphia, Pennsylvania, has admitted to his involvement in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Trapp, age 48, pled guilty to one count of “Conspiracy to Distribute Controlled Substances.” Trapp admitted to participating in a drug distribution operation in October 2018 in Monongalia County.Trapp faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Opinion: The Grave Threats of White Supremacy and Far-Right ExtremismRead the Press Release
New York Times Opinion (Published February 22, 2019)
By Thomas T. Cullen, United States Attorney for the Western District of Virginia
Last week, federal agents in Maryland arrested a United States Coast Guard officer and said he was plotting to assassinate Democratic members of Congress, prominent television journalists and others. The officer, Lt. Christopher Hasson, apparently inspired by a right-wing Norwegian terrorist who slaughtered 77 people in 2011, stockpiled firearms and ammunition and researched locations around Washington to launch his attacks, according to investigators. Fortunately, the F.B.I. arrested him before he could act.
This frightening case is just one of several recent reminders that white supremacy and far-right extremism are among the greatest domestic-security threats facing the United States.
Regrettably, over the past 25 years, law enforcement, at both the federal and state levels, has been slow to respond. This is in part because of the limited number of enforcement tools available to prosecutors. But there are steps that can be taken to help the police and prosecutors address this growing threat — including, on the federal level, a domestic terrorism law.
In 2017, hate crimes, generally defined as criminal acts motivated by the victim’s race, ethnicity, religion, or gender, increased by about 17 percent nationally, to 7,175 from 6,121 (the number of police agencies reporting crimes also rose, by about 6 percent); in my state, Virginia, they were up by nearly 50 percent, to 202 from 137.
Killings committed by individuals and groups associated with far-right extremist groups have risen significantly. Seventy-one percent of the 387 “extremist related fatalities in the United States” from 2008 to 2017 were committed by members of far-right and white-supremacist groups, according the Anti-Defamation League’s Center on Extremism. Islamic extremists were responsible for 26 percent.
The rising scourge of domestic hate has been underscored by particularly heinous acts in the past few years. In 2015, an avowed white supremacist murdered nine black congregants at the Emanuel African Methodist Episcopal Church in Charleston, S.C. Last year in Kentucky, a white man with a history of making racist remarks was charged with shooting and killing two African-Americans in their 60s at a grocery store after trying to enter a nearby black church. Several months ago, an assailant shouting anti-Semitic slurs stormed the Tree of Life Synagogue in Pittsburgh with a semiautomatic rifle and murdered 11 people.
Virginia, too, has experienced extremist violence. In August 2017, several hundred people — mainly young white men heavily influenced by white-nationalist propaganda — converged on Charlottesville, ostensibly to protest the possible removal of Confederate monuments from public parks. Among other odious acts, these “Unite the Right” protesters marched with lighted torches on the campus of the University of Virginia. They chanted “Jews will not replace us!” before attacking a small group of students and counterprotesters at the base of a statue of Thomas Jefferson.
The following day, some of these Unite the Right enthusiasts attacked and injured counterprotesters in Charlottesville. Their violence culminated when a white supremacist from Ohio drove his car into a crowd of people, killing 32-year-old Heather Heyer and injuring about 30 others.
In 2009, Congress took an important step in arming federal investigators to deal with hate crimes by passing the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act. This law makes it possible to prosecute as hate crimes violent acts committed against victims because of their race, color, national origin, religion, gender, gender identity or disability. The law provides stringent maximum penalties, including life imprisonment, if someone is killed during a hate crime.
But the hate crime law has its limitations. First, it requires proof that an individual acted because of a specific proscribed animus enumerated in the statute. That means investigators must uncover concrete evidence that the defendant was primarily motivated by, for example, racist or anti-Semitic views. Although this evidence exists in many hate crimes, it proves elusive in others.
Second, because it is a federal statute, prosecutors must prove a “jurisdictional” element, such as travel by the defendant across state lines. For those hate crimes that do not involve interstate travel or communication, the law can’t be invoked.
Given these limitations, elected officials should consider providing law enforcement with additional tools. At the federal level, this could include a domestic-terrorism statute that would allow for the terrorism prosecution of people who commit acts of violence, threats and other criminal activities aimed at intimidating or coercing civilians.
State officials can update and strengthen existing hate-crime laws, many of which do not include protections for some of the categories of people listed in the federal hate crimes law. Although many states have expanded these protections, the Indiana State Senate this week moved to weaken a proposed hate crime bill. In addition, states can authorize localities to place reasonable time, place, and manner restrictions on demonstrations that will likely result in widespread violence and other criminal activity, like the rally in Charlottesville.
At both the federal and state levels, immediate steps are required to curtail the alarming rise of hate crimes and extremist violence in this country.
Okemah Man Sentenced to 48 Months Probation, $200,000 Restitution for False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Paul Buie, age 57, of Okemah, Oklahoma, was sentenced to 4 years’ probation. Buie was also ordered to pay $204,857.37 in restitution for False Statement Or Fraud To Obtain Federal Employees’ Compensation, in violation of Title 18, United States Code, Section 1920. The charges arose from an investigation by the Department of the Army U.S. Army Corp. of Engineers.
The Information alleged that beginning in or about September 2015 and continuing through May 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, knowingly and with intent to defraud, did willfully falsify, conceal and cover up a material fact, to-wit: his true medical condition and that he was physically capable to perform work, such concealed fact caused the payment of federal employees compensation in excess of $1,000.00.
United States Attorney Brian J. Kuester said, “A fraud perpetrated against a government agency is a fraud against us all. The funds that Buie received fraudulently are funds that are designated for those that are legitimately injured and disabled and unable to be gainfully employed because of the injury. This investigation revealed that Buie had made false statements on numerous occasions about his ability to work. As a result he is being held accountable and has been ordered to pay restitution.”
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. First Assistant United States Attorney Christopher Wilson represented the United States.
North Carolina Woman Sentenced to Four Months for Alien SmugglingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Carmen Melari Ferrufino Perdomo, 29, of Charlotte, North Carolina, was sentenced on February 22, 2019, to a four-month period of incarceration upon her conviction for transporting aliens who had entered the United States illegally from Canada. The prison term will be followed by a one-year period of supervised release. Ferrufino was also ordered to pay $5,100 as a special assessment in light of the nature of her crime. United States District Judge Christina Reiss ordered Ferrufino to surrender to the Bureau of Prisons on April 5, 2019.
Court records show that on March 17, 2018, Ferrufino flew from her home in North Carolina to Burlington, Vermont, where she rented a car. She then drove in the early morning of March 18, 2018, to a pre-arranged location on the United States/Canada border to pick up six persons, all aliens who had just entered the United States illegally by walking through the woods. The United States Border Patrol stopped Ferrufino a short while after she had picked up her passengers. Records show that Ferrufino intended to drive all six aliens to New York City, and to receive payment in return.
Counsel for Ferrufino argued for a sentence of six months of house arrest. Judge Reiss disagreed, noting the premeditated nature of Ferrufino's conduct, as well as the societal risks associated with Ferrufino bringing persons she did not know, who had just entered the country unlawfully, further into the United States.
The case was investigated by the United States Border Patrol.
Ferrufino was represented by Assistant Federal Defender David McColgin. Assistant United States Attorney Michael Drescher was the prosecutor.
North Carolina Marketer Agrees to Pay $414,108.08 for Allegedly Engaging in Illegal Kickback Scheme with OK CompoundingRead the Press Release
David Tsui and Wellcare Consulting, LLC, a North Carolina marketing company, have agreed to pay the government $414,108.08 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma entered into a settlement agreement this week with Tsui, of Chapel Hill, North Carolina, and Wellcare, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into OK Compounding, a pharmacy previously located in Skiatook, Oklahoma.
The United States alleged OK Compounding paid substantial kickbacks to various third-party “marketers” in exchange for those marketers arranging for the referral of prescriptions for compounded drugs to the pharmacy. The kickbacks consisted of a share of the revenue that the referrals generated for OK Compounding. These arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b).
“I won’t allow corrupt health care professionals to exploit the federal health care system for their fraudulent, personal enrichment. My Affirmative Civil Enforcement team is prioritizing health care fraud cases,” said U.S. Attorney Trent Shores. “Federal health care dollars are to be used in accordance with the law. Dollar by dollar, corrupt defendant by corrupt defendant, we will get back the illegally obtained funds.”
Through these schemes, Tsui and Wellcare knowingly caused false claims to be presented to the Tricare and Medicare programs for the purpose of defrauding these federal programs. Because federal healthcare programs were involved, the kickbacks were also in violation of the False Claims Act.
It is illegal to pay or receive “kickbacks” in conjunction with federal healthcare insurance. Laws against kickbacks are crucial to ensure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.
Information regarding health care fraud to Medicare can also be reported to the Department of Health and Human Services, Office of Inspector General, at https://oig.hhs.gov/fraud/report-fraud/index.asp. Information for fraud against Tricare can be reported at https://health.mil/Military-Health-Topics/Access-Cost-Quality-and-Safety/Quality-And-Safety-of-Healthcare/Program-Integrity/Fraud-and-Abuse-Report-Submission-Form.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle and is the product of a collaborative investigation by the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Nicaraguan Man Charged with Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that HERVIN ADOLFO PINEDA, age 44, a native of Nicaragua, was charged Thursday, February 21, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, PINEDA was previously removed from the United States on May 11, 2011. He was later found in the Eastern District of Louisiana on January 31, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, PINEDA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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New Jersey Man receives Three Years in Jail for Gun TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Marvin A. Jones, 24, a resident of New Jersey who recently lived in Vermont, was sentenced to 36 months imprisonment on February 20, 2019, in United States District Court in Rutland.
Jones pleaded guilty in November, 2018, to purchasing a semi-automatic pistol in Vermont and selling it in New Jersey without a license to do so. As part of a plea deal, Jones also resolved several pending, unrelated Vermont charges. Court filings indicated that Jones acquired other firearms in Vermont during the same time period.
The Bureau of Alcohol, Tobacco and Firearms initiated the investigation when the pistol sold by Jones was recovered in the State of New Jersey and found to have been originally purchased in the State of Vermont. The firearm was recovered from a New Jersey man in a stolen car, and was matched by ballistics tests to an earlier shooting in that area of New Jersey. ATF investigators conducted numerous interviews and found the pistol had been purchased by Jones as a used gun via Armslist.com from the original owner. Jones transported it from Vermont to New Jersey where he sold the firearm to an associate. He had pending Vermont felony charges at the time.
Jones was represented by Assistant Federal Public Defender David McColgin. The United States was represented by Assistant U.S. Attorney William Darrow.
Monument Man Sentenced to Prison for Tax FraudRead the Press Release
A health care products business owner, who attempted to evade the payment of more than $450,000 in income taxes, was sentenced in federal court in Denver, Colorado, today by U.S. District Court Judge Raymond Moore to 36 months in prison, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, in April 2010, Craig Walcott was notified by the Internal Revenue Service (IRS) that he owed taxes and penalties for the years 2005, 2006 and 2007, totaling $458,569. After receiving this notice, Walcott took a series of steps to prevent the IRS from collecting those taxes. He recorded fictitious deeds of trust against four properties he owned, so that they would be unattractive targets for IRS tax liens, and transferred other properties he owned to nominee entities to make it appear to the IRS that he no longer had an ownership interest in the properties. Walcott also filed false tax returns for the tax years 2005- 2007 that underreported his income for those years.
Walcott pleaded guilty on Nov. 27, 2018, to one count of attempting to evade the payment of his federal income taxes.
In addition to prison, Walcott was ordered to pay restitution to the IRS in the amount of $628,733 and to serve three years of supervised release after the completion of his sentence. Walcott was remanded into custody today.
The case was investigated by special agents of the IRS-Criminal Investigation. Tax Division Assistant Chief Andrew Kameros and Trial Attorney Lee Langston prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Monongalia County men admit to roles in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brian Kyle, of Maidsville, West Virginia, and Hamisi Mwawari, of Morgantown, West Virginia, have admitted to their involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Kyle, age 39, pled guilty to one count of “Unlawful Use of Communication Facility.” Kyle admitted to using a phone to further a drug distribution operation in April 2018 in Monongalia County.Mwawari, age 44, pled guilty to one count of “Unlawful Use of Communication Facility.” Mwawari admitted to using a phone to assist in distributing controlled substances in May 2018 in Monongalia County.
Kyle and Mwawari each face 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 cases 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.
Miami Beach Resident Sentenced to 20 Years in Prison for Attempting to Entice a Minor to Engage in Sexual ActivityRead the Press Release
Jay Walter Sall, 54, of Miami Beach, was sentenced, on February 21, 2019, to a total of 240 months in prison by U.S. District Judge K. Michael Moore, for attempting to entice a minor to engage in sexual activity.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, made the announcement.
According to the court record, Sall communicated with an undercover FBI agent by text messages. In those text messages, Sall solicited and paid for the agent to record sexual intercourse between the agent and the agent’s purported 9-year-old daughter. During the course of the investigation, the FBI also learned that Sall had been secretly recording three other females, two of which were minors at the time of the recordings.
On November 29, 2018, Sall pleaded guilty to attempting to entice a minor to engage in sexual activity. On February 21, 2019, the Honorable K. Michael Moore sentenced Sall to 240 months in prison, 15 years of supervised release, payment of a $50,000 fine, and registration as a sex offender for life.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. She thanked the Miami Beach Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorney Daniel Cervantes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Toxic Marijuana Grow in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Maximiliano Farias Martinez, 49, a Mexican national, was sentenced today to five years and 10 months in prison for conspiring to cultivate marijuana on public land, U.S. Attorney McGregor W. Scott announced.
According to court documents, Farias supervised Jose Manuel Sanchez Zapien, 39, of Dos Palos, who delivered supplies in Farias’ vehicle to growers at a marijuana cultivation site in the Sequoia National Forest. Law enforcement officers found approximately 20,952 marijuana plants at the site. The cultivation operation caused extensive environmental damage. Approximately three acres were stripped of vegetation and the ground was terraced to accommodate the marijuana plants. Large amounts of ammonium nitrate and other fertilizers were found at the site. Spectracide brand insecticide containers and trash were found scattered throughout the grow site. Farias was ordered to pay $8,664 in restitution to the Forest Service to cover the clean-up cost.
Sanchez pleaded guilty to the drug conspiracy and was sentenced to 10 years in prison and ordered to pay restitution to the Forest Service.
This case was the product of an investigation by the U.S. Forest Service with assistance from Homeland Security Investigations, Office of Inspector General of the Social Security Administration, Drug Enforcement Administration (DEA), California Department of Fish and Wildlife, and Merced Area Gang and Narcotics Enforcement Team (MAGNET). Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Maryland man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Phillip Ryan Williams, of McCoole, Maryland, was sentenced today to 30 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Williams, age 24, pled guilty to one count of “Distribution of Methamphetamine” in November 2018. He admitted to selling methamphetamine in Mineral County on June 13, 2018.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jarod Arthur Blakney, of Martinsburg, West Virginia, was sentenced today to 57 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Blakney, also known as “Papi,” age 28, pled guilty to one count of “Distribution of Cocaine Base” in September 2018. Blakney admitted to selling cocaine base in Berkeley County in June of 2017.
The judge also ordered the forfeiture of $14,689 in cash, a 9mm pistol, two 9mm magazines, and a .22LR handgun with magazine.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Man and Woman Sentenced for Immigration Marriage FraudRead the Press Release
United States Attorney Joe Kelly announced that Faisal Garba-Adenkunjo, 29, of the Republic of Benin, was sentenced today in federal court in Omaha for conspiracy to commit immigration fraud. The Honorable Laurie Smith Camp sentenced Garba to 6 months’ imprisonment and one year of supervised release after he serves his prison term.
Farangis Gafarova, 24, of Tajikistan, was also sentenced today by Senior Judge Smith Camp. Gafarova was sentenced to five years of probation for conspiracy to commit immigration fraud and for entering into a marriage to evade the immigration laws.
Gafarova met Garba sometime in 2013 when they both attended Metropolitan Community College. Gafarova was in the United States on an F-1 Student Visa. Sometime in 2014, Garba offered to find Gafarova a United States Citizen to marry to allow her to remain in the United States once her student visa expired. Gafarova agreed and Garba recruited a United States Citizen, Jeremiah Logan, to participate in the scheme. The three defendants agreed upon an amount which Gafarova would pay to Garba and to Logan. In January of 2015, Gafarova married Logan. Logan, with the assistance of Garba and Gafarova, filed immigration paperwork on behalf of Gafarova seeking to obtain legal permanent resident status for Gafarova. The Department of Homeland Security Investigations learned of the fraudulent scheme and conducted an investigation which ultimately led to the federal indictment of all three defendants.
Immigration proceedings will now begin for both Garba and Gafarova. Jeremiah Logan is awaiting sentencing.
This case was investigated by the Department of Homeland Security Investigations and United States Citizenship and Immigration Services Fraud Detection and National Security group.
Man and Woman Plead Guilty to Distributing Heroin that Resulted in DeathRead the Press Release
St. Louis, MO – Today, Anthony Marion, a/k/a “Bird,” 33, and Lauren Nicole Martinez, a/k/a “Nikki,” 30, both from St. Charles, Missouri, entered guilty pleas related to heroin distribution that resulted in death from the use of such heroin. Marion pleaded guilty to one count of distributing heroin resulting in death. Martinez pleaded guilty to one count of heroin distribution. Both appeared before the Honorable Rodney W. Sippel to change and enter their respective guilty pleas.
According to court documents, Martinez agreed to provide two individuals with heroin on February 26, 2016. She contacted her source, Marion, who met Martinez in the parking lot of a White Castle restaurant in St. Charles, Missouri. There, Marion provided heroin to Martinez, who then provided it to the victim. At the time she distributed the heroin, Martinez described it as “strong” and cautioned the victim to be careful. During a later interview, Martinez admitted that she knew multiple people who had overdosed on heroin.
Despite learning of the individual’s death, Martinez and Marion continued to distribute heroin in the subsequent weeks and months. As part of the on-going investigation into the heroin-related death, investigators arranged and made a controlled purchased of heroin from Marion and Martinez in March 2016. On May 9, 2016, Marion was arrested in the possession of heroin and a firearm.
U.S. Attorney Jeff Jensen commended the effectiveness of the investigative team and prosecutor in achieving today’s guilty pleas, “Heroin kills. It is as simple as that. Heroin dealers -- whether they kill someone or not -- will be facing long sentences.” This investigation exemplifies both of those points.”
Sentencing for Marion is set for June 14, 2019. He faces a term of imprisonment of not less than 20 years and up to life imprisonment and a fine $1 million. Martinez’s sentencing date is June 7, 2019. She faces imprisonment of up to 20 years. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
This case was investigated by the O’Fallon Police Department, and the St. Charles County Regional Drug Task.
Man Pleads Guilty to Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – Armin Harcevic, 41, pled guilty today to an indictment in this case that charged him with one count of conspiring to provide material support to terrorists and one count of providing material support to terrorists. Harcevic appeared today before Judge Catherine D. Perry who accepted his plea and set his sentencing for June 7, 2019.
“Armin Harcevic admitted to sending money to terrorists overseas,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “By doing so, he actively supported those seeking to do harm to the U.S. and our allies.”
Charged in the indictment are: Armin Harcevic, Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, all of St. Louis County, Missouri, Nihad Rosic, of Utica, New York, and Mediha Medy Salkicevic, of Schiller Park, Illinois. All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists. Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country. The remaining defendants have pled not guilty. As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Harcevic faces up to 15 years imprisonment and/or fines of up to $250,000 for each count. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Trial Attorney Joshua Champagne of the Department of Justice’s Counterterrorism Section.
Man Allegedly Tried to Smuggle Cocaine Sewn into His VestRead the Press Release
NEWARK, N.J. – A resident of the Dominican Republic is scheduled to appear in federal court today for allegedly trying to smuggle into the United States approximately three kilograms of cocaine, U.S. Attorney Craig Carpenito announced.
Jose Manuel Jimenez Jimenez, 46, is charged by complaint with one count of illegal importation of more than 500 grams of cocaine. He was arrested Feb. 22, 2019, and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court;
Jimenez arrived at Newark Liberty International Airport on a flight from Santo Domingo, Dominican Republic. During a screening, law enforcement officers discovered the cocaine sewn into the vest Jimenez was wearing.
The count with which Jimenez is charged carries a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Brian Michael; and officers of Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Lynn CPA Pleads Guilty to Mortgage and Tax ChargesRead the Press Release
BOSTON – A Lynn accountant pleaded guilty today in federal court in Boston to assisting a multi-year mortgage fraud scheme by creating fraudulent tax returns and submitting fraudulent letters to lenders.
David Plunkett, 53, of Lynn, pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 25, 2019.
George Kritopoulos, 46, of Salem, one of the alleged leaders of the mortgage fraud scheme, was indicted in September 2018, and has pleaded not guilty. Co-conspirator, Joseph Bates III, 38, of Lynnfield, pleaded guilty in October 2018 to one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud.
According to the charging documents, from 2006 through 2015, Bates and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by fraudulent mortgage loans.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so.
Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications. Plunkett also signed letters falsely representing that his CPA firm had prepared corporate tax returns for one of the shell entities, when in fact no such returns had ever been prepared or filed.
Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and millions of dollars of losses to the financial institutions.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of aiding in filing a false tax return provides for a sentence of no greater than three years in prison, one year 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lower Brule Man Charged with BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary.
Marlowe LaRoche, age 20, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 18, 2018, LaRoche entered the Lower Brule Indian Health Service Clinic after normal business hours with the intent to commit larceny.
The charge is merely an accusation and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
LaRoche was released on conditions pending trial. A trial date has not been set.
Lorenzo Castelo Sentenced to 25 Years in Prison for His Role in Federal Drug Trafficking OrganizationRead the Press Release
Memphis, TN – Lorenzo Castelo of Memphis was sentenced to 300 months in prison for his role in a conspiracy to distribute methamphetamine, cocaine and marijuana. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, Castelo was the head of a drug trafficking organization that operated in the Western District of Tennessee, Eastern District of Arkansas and the Northern District of Mississippi. Castelo was charged with nine others in a 15-count superseding indictment on January 18, 2019.
On January 25, 2019, U.S. District Judge Sheryl H. Lipman sentenced Castelo to 300 months imprisonment. He was also ordered to serve five years supervised release.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney D. Michael Dunavant said: “Distribution of illegal narcotics is not a victimless crime. In order to prevent needless addiction, injury, violence, and death in our communities, we must disrupt and dismantle drug trafficking organizations that deliver this deadly poison to citizens in West Tennessee. This significant sentencing of the leader of the organization will do just that, and I commend our federal and local law enforcement partners for their impactful work in this important case.”
“The distribution of illegal narcotics continues to tear at the fabric of our families and communities,” said M.A. Myers, Special Agent in Charge of the Memphis Field Office of the federal Bureau of Investigation. “This sentencing is the result of the strength of collaborative local, state, and federal law enforcement efforts to rid our neighborhoods of highly addictive and extremely dangerous drugs, and target and bring to justice those who engage in these crimes.”
MPD Director Michael Rallings said: “Distributing illegal drugs throughout our community will not be tolerated. We will continue to work with our local and federal partners to identify and apprehend those who choose to victimize our citizens.”
This case was investigated by the Federal Bureau of Investigation Safe Streets Task Force; Department of Homeland Security – Homeland Security Investigations (HSI); and Memphis Police Department.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.###
Long-Time Tax Preparer Receives 18 Months’ Imprisonment for Tax FraudRead the Press Release
PHOENIX– Last week, Elias Bermudez, 68, of Phoenix, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 18 months in prison and ordered to pay $131,651 in restitution to the United States.
Bermudez worked as a tax preparer in Arizona for over 20 years and owned a tax preparation and immigration services business called The Help Center (aka El Centro de Ayuda), which prepared approximately 3,000 to 4,000 income tax returns each year between 2007-2010. Bermudez admitted to filing fraudulent tax returns by including the Additional Child Tax Credit when he knew the credit didn’t apply. His fraudulent tax filings caused a loss to the United States of $131,651.
The investigation in this case was conducted by the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Andrew C. Stone and Bridget Minder, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01301-PHX-DJH
RELEASE NUMBER: 2019-016_Bermudez
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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.
Long Beach Man Sentenced to 10 Years in Federal Prison for Traveling to Mexico to Engage in Illicit Sexual Conduct with MinorRead the Press Release
LOS ANGELES – A Long Beach resident who traveled to Mexico to engage in illicit sexual conduct with a minor – and also enticed his victim to produce child pornography – was sentenced today to 120 months in federal prison.
Jonathan Sandoval-Lepe, 32, was sentenced this morning by United States District Judge George H. Wu.
Sandoval-Lepe pleaded guilty in November 2018 to federal charges of engaging in illicit sexual conduct in a foreign place and receiving child pornography depicting other victims.
According to his plea agreement, over the course of about two years that began in the spring of 2015, Sandoval-Lepe traveled to Baja California to have sex with the victim, who was 13 when the illicit sexual conduct started.
Sandoval-Lepe also admitted that in September 2017 he enticed the victim, who was then 15, to produce child pornography while he was in the United States. The victim sent that child pornography to Sandoval-Lepe in California.
In August 2017, Sandoval-Lepe knowingly received child pornography that he downloaded onto his computer from a peer-to-peer network, the plea agreement states. The investigation found more than 600 images and videos of child pornography, some of which depicted children who were under 12 years of age, according to court documents.
In addition to the prison term, Judge Wu ordered Sandoval-Lepe to pay $15,000 in restitution to his victims, including $10,000 to the Mexican victim. Judge Wu also ordered him to pay a $10,000 special assessment paid to the Domestic Trafficking Victims’ Fund. Following his release from custody, Sandoval-Lepe will remain on federal supervised release for the remainder of his life.
This case was investigated by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department. Mexican law enforcement officers in Baja California provided assistance in this investigation.
This case was prosecuted by Assistant United States Attorneys Joshua O. Mausner and Lana Morton-Owens of the Violent and Organized Crime Section.
Levant Woman Sentenced to 12 Months and a Day for Conspiring to Lie to Federal Firearms Dealer and Lying to a Federal AgentRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Amy Bingaman, 34, of Levant, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to 12 months and one day in prison and three years of supervised release for conspiracy to make false statements to a federal firearms licensee and making false statements to federal agents.
According to court records, in late February 2018, the defendant conspired with two others to lie to a Brewer federal firearms licensee in connection with the purchase of a .380 caliber handgun. In connection with that purchase, the defendant falsely represented that she was buying the handgun for herself, when, in fact, the actual buyer was another conspirator who was paying her to make the purchase. The handgun was recovered during the execution of a narcotics trafficking search warrant in Brewer.
When the defendant was interviewed by federal agents about purchasing firearms for others, she falsely stated that she had not purchased other firearms for anyone else, when, in fact, she had done so several times previously.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brewer Police Department, with assistance provided by the Penobscot County Sheriff’s Office. This case is 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.
Las Vegas Photographer Pleads Guilty to Multi-State Child Sexual Exploitation ConspiracyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas photographer who posed as a professional modeling photographer and alternative sports sponsor to lure children on the promise of sponsorships pleaded guilty today in federal court in connection to a child sexual exploitation conspiracy, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office.
William Clyde Thompson, 58, of Las Vegas, pleaded guilty to child exploitation enterprise, sexual exploitation of a child, conspiracy to produce child pornography, distribution of child pornography, conspiracy to distribute child pornography, and possession of child pornography. He was indicted in September 2013 in Nevada and in 2015 in Arizona. United States District Judge Jennifer A. Dorsey scheduled a sentencing hearing for May 28, 2019.
According to admissions contained in the binding plea agreement, in November 2011, Thompson took sexually explicit photos and videos of a 10-year-old boy. He later introduced the victim, who was a skateboarder, to a potential sponsor. In November 2012, the victim’s mother made a report to the Las Vegas Metropolitan Police Department after the potential sponsor informed her that he believed her child was being sexually exploited. Later that month during the execution of search warrants, multiple digital devices belonging to Thompson were seized from his residence and studio. A forensic examination of the devices revealed over 10,000 files of child sexual exploitation photos and videos.
In January 2013, Thompson was arrested in Nevada on child pornography charges and the state court ordered him released on house arrest. However, Thompson cut off his ankle bracelet and fled the Las Vegas area. He was later indicted on federal charges in September 2013.
While on the run from law enforcement, Thompson contacted at least six boys in the spring and summer of 2014 at the Needles California Skate Park. He identified himself as “Tony Bailor” and “Jason Brock” and told the boys he was a “scooter sponsor.” He and others provided the boys with gifts to induce their compliance and to recruit other minors to be part of the “team” that he claimed he wanted to sponsor. In reality, Thompson and others recruited the “team” with the intention to produce child pornography and to sexually abuse the boys.
Thompson convinced the boys to travel without their parents to his Mohave Valley, Arizona, residence for photo shoots on several occasions. He told the boys they would be paid for the photos and that he would resell the photos online through a website. He told them that prospective buyers had requested specific boys, poses, and clothing in the creation of the pornographic depictions. The boys complied with Thompson’s requests because of the money, alcohol, and marijuana he provided them. Over a six-month period, Thompson produced over 20,000 images and videos depicting sexually explicit content of the children.
Thompson and a co-conspirator created multiple websites to distribute the child pornography he created. Thompson would post sample child pornography photos on one of the websites and when someone purchased the photos based on the sample, he would send the purchaser a hyperlink to the child pornography files on a cloud-based service.
In January 2015, Thompson was arrested during a traffic stop in Mohave Valley, Arizona. At the time of his arrest, law enforcement recovered digital devices belonging to Thompson that contained over one million images and ranged from child erotica to child pornography of several victims.
Both parties jointly recommended Thompson be sentenced to 354 months in prison with a lifetime term of supervised release. As part of the plea agreement, he agreed to pay full restitution to his victims.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Christopher Burton and Elham Roohani are prosecuting the case.
If you have information regarding William Clyde Thompson, you are urged to contact the nearest FBI field office or local law enforcement. To remain anonymous, call Crime Stoppers at (702) 385-5555 or visit www.crimestoppersofnv.com, or contact the National Center for Missing & Exploited Children (NCMEC) by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a report at www.cybertipline.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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KC Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man with prior felony convictions for child pornography was sentenced in federal court today for receiving child pornography over the Internet.
Travis E. Fleming, 44, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. The court also sentenced Fleming to 20 years of supervised release following incarceration. The court ordered Fleming to pay $5,000 in restitution to each of three identified victims of sexual abuse portrayed in the images of child pornography that he possessed.
Fleming was convicted in federal court in 2010 of two counts of receiving child pornography and two counts of possessing child pornography, for which he was sentenced to six years and six months in federal prison without parole. He was on supervised release at the time of this offense.
On Sept. 20, 2018, Fleming pleaded guilty to receiving child pornography. Fleming admitted that he had 256 images of child sexual abuse (including bondage) on his cell phone. Some of the victim children ranged in age from four to 10 years old. A forensic examination determined that Fleming did the bulk of his viewing of child pornography in the dark web.
Fleming’s probation officer discovered the cell phone during a home visit on Nov. 16, 2017. Fleming admitted that he had been accessing the internet since at least February 2017. Among the conditions of Fleming’s supervised release was that he not possess any type of computer or electronic device with access to any on-line computer service.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Western Missouri Cyber Crimes Task Force and the Clay County, Mo., Sheriff’s Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Settles Claims Against International Financial Association for Discriminating Against U.S. WorkersRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with CFA Institute (CFAI), an international association of investment professionals, headquartered in Charlottesville, Virginia. CFAI offers a global certification for Chartered Financial Analysts who pass an exam that CFAI administers annually. The settlement resolves the Department’s investigation into whether CFAI violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by preferring to hire H-1B visa holders over U.S. workers when it selected CFAI exam graders from its members. This is the fifth settlement under the Civil Rights Division’s Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa workers. It is the first of those settlements to involve the H-1B visa program.
The Department’s independent investigation concluded that from at least November 2016 through January 2018, CFAI set aside annual exam-grading positions for its members who required or had H-1B visas or other high-skill temporary visas, based on their citizenship status. The Department also concluded that, in doing so, CFAI failed to consider equally qualified U.S. workers for such positions. The INA prohibits employers from discriminating in the hiring process based on a worker’s citizenship status or national origin. Refusing to hire U.S. citizens, or setting aside positions for visa holders, because of their citizenship status violates the INA.
“The Civil Rights Division works diligently to stop employers from unlawfully denying employment opportunities to qualified and available U.S. workers,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We appreciate CFAI’s cooperation and look forward to working with the organization to ensure that it does not disqualify exam graders based on their citizenship status.”
Under the settlement, CFAI will pay $321,000 in civil penalties to the United States, train employees on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
Under the Protecting U.S. Workers Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with five employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $320,000 in back pay to affected U.S. workers. The Division has also increased its collaboration with other federal agencies to combat discrimination and abuse by employers using temporary visa workers.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Seeks to Shut Down Two Texas Tax Return PreparersRead the Press Release
The United States filed a civil injunction suit to permanently bar Smart Ilesanmi Ajayi, individually and doing business as Harplet Marketing LLC, Topps Tax Services, and Smart Tax Services, as well as JoAnn Villarreal, from preparing federal income tax returns for others, the Justice Department announced today.
The complaint, filed in the United States District Court for the Northern District of Texas, alleges that Ajayi and Villarreal prepare and file tax returns that falsely increase their customers’ deductions or losses. As a result, the complaint alleges, the customers’ tax returns claim larger refunds than they were entitled to receive.
The complaint alleges that defendants’ have prepared returns with fabricated or inflated noncash charitable donation deductions. The complaint further alleges that the defendants have prepared returns with fabricated or inflated businesses losses on Schedule C (Profit or Loss from Business).
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Overland Park Woman in Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Overland Park, Kan., woman has been convicted by a federal trial jury for her role in a multi-defendant drug-trafficking conspiracy with ties to the Sinaloa drug cartel in Mexico.
Christine Little Wood, 61, was found guilty of participating in a conspiracy to distribute heroin from Jan. 1, 2010, to April 18, 2017, and of participating in a money-laundering conspiracy. In addition to the criminal conspiracies, Little Wood was found guilty of using a cell phone to aid the drug-trafficking conspiracy and of maintaining a residence for the distribution and use of heroin.
In addition to Little Wood, 20 co-defendants have pleaded guilty and three have been sentenced in this case. Dennis McLallen, 66, and his wife, and Pamela Gaddy-McLallen, 65, both of Overland Park, were in direct contact with Mexico-based heroin and methamphetamine suppliers and Kansas City-based suppliers. They received multi-ounce levels of black tar heroin from their suppliers, which they and other conspirators repackaged into ounce and gram levels for distribution by Little Wood and others.
McLallen admitted that he was responsible for the distribution of more than 10 kilograms of heroin. Conspirators distributed at least 500 ounces (more than 14 kilograms) of heroin, with an average sale price of $1,700 per ounce, for a total of $850,000.
In September 2016, investigators searched vehicles and residences and seized heroin, methamphetamine, prescription drugs, more than $200,000 in bulk cash, a load vehicle with hidden compartments, drug ledgers, drug packaging, drug scales, firearms, ammunition, a bullet proof vest, and various other drug trafficking related items. Little Wood’s son, a co-defendant in this case, distributed and used heroin in her residence.
McLallen and Gaddy-McLallen each pleaded guilty to their roles in the drug-trafficking and money-laundering conspiracies and to a conspiracy to use firearms in furtherance of drug trafficking. McLallen was sentenced on April 18, 2018, to 15 years in federal prison without parole. Gaddy-McLallen died of natural causes while awaiting sentencing.
Co-defendant Kevin Fletcher,30, of Kansas City, Mo., was sentenced to nine years and two months in federal prison without parole. Co-defendant Sterling Cline, 38, of Kansas City, Mo., was sentenced to 10 years in federal prison without parole. Several co-defendants remain fugitives from justice.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about four hours before returning the guilty verdicts to U.S. District Judge Stephen R. Bough on Friday, Feb. 22, 2019, ending a trial that began Tuesday, Feb. 12, 2019.
Under federal statutes, Little Wood is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI and the Jackson County Drug Task Force.
Jefferson County man sentenced to 15 years for fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Corey Robert Clark Ford, of Harpers Ferry, West Virginia, was sentenced today to 180 months incarceration for distributing fentanyl, United States Attorney Bill Powell announced.
Ford, age 29, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl” in October 2018. Ford admitted to distributing fentanyl in Jefferson County, resulting in the death of another, in December 2016, as well as possessing fentanyl in January 2017.
“The sentence imposed upon Mr. Ford sends a clear message that the distribution of fentanyl, in even a small amount, can have catastrophic consequences. Mr. Ford’s distribution contributed to the death of one of our citizens. He will now spend the next fifteen years of his life in prison. Fentanyl kills. Thanks to the hard work of our prosecution and our law enforcement teams, there is one less fentanyl dealer in our community,” said Powell.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jacksonville Man Sentenced to More Than Fifteen Years for Illegally Possessing A FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Jemone Lawrence Walker (33, Jacksonville) to 15 years and 8 months in federal prison, for possessing a firearm as a convicted felon. A federal jury found Walker guilty on June 7, 2018.
According to testimony presented at trial, Walker was found to be in possession of a loaded revolver when the Jacksonville Sheriff’s Office responded to an armed domestic call at a Jacksonville home. At the time, Walker had multiple prior felony convictions, including armed robbery, attempted armed robbery, attempted robbery, and unarmed robbery and, therefore, was prohibited from possessing firearms.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Indianapolis, Indiana Man Sentenced to 63 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joseph Jay Johnson, age 40, of Indianapolis, Indiana, was sentenced to 63 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e). The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about January 30, 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.
United States Attorney Brian J. Kuester said, “This investigation began when a concerned citizen saw what appeared to be a violent interaction between the defendant and another. The responding Okmulgee County Deputy discovered the defendant, who had a former felony conviction, unlawfully possessed a weapon and ammunition. The ATF and this office assisted because it is a Department of Justice priority to help our state, local, and tribal law enforcement agencies to combat and reduce violent crime – a priority that we proudly and eagerly pursue.”
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 Dean Burris 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.
Illegal alien sentenced for reentry chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eduardo Hernandez Sanchez, a citizen of Mexico, was sentenced today to 87 months incarceration for illegal reentry, United States Attorney Bill Powell announced.
Sanchez, also known as Jorge Andrade-Sanchez, age 42 pled guilty to one count of “Reentry of a Removed Alien” in October 2018. Sanchez, having previously been removed twice, and previously convicted of drug distribution in Pennsylvania in 2016, admitted to being in Berkeley County illegally in February 2018.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Department of Homeland Security Immigration and Customs Enforcement investigated.
Chief U.S. District Judge Gina M. Groh presided.
Illegal Alien Sentenced to Prison for Using Another Person’s Social Security Number and Fraudulent “Green Card” to Get a JobRead the Press Release
A Mexican man who used another person’s social security number and a fraudulent “green card” to get a job was sentenced on February 21, 2019 to five months in federal prison.
Luis Gonzalez-Esparsa, age 46, a citizen of Mexico illegally present in the United States and residing in Cascade, Iowa, received the prison term after a November 28, 2018, jury verdict finding him guilty of one count of unlawful use of an identification document and one count of misuse of a social security number.
The evidence at trial showed that on June 14, 2018, Gonzalez-Esparsa used someone else’s social security number on employment and tax documents when applying for work in Peosta, Iowa. He also used a fraudulent permanent resident card, also known as a “green card,” to claim he was legally present and authorized to work in the United States. The Alien Registration number on the “green card” had been issued to another person, a female from Mexico.
Gonzalez-Esparsa came to the attention of immigration officials following his arrest in August 2018 in Anamosa, Iowa, for failure to appear for court on a state law driving violation. Gonzalez-Esparsa has been convicted of driving without a valid driver’s license eight times. He was also convicted of operating a motor vehicle while intoxicated in Allamakee County, Iowa, in 2005. Gonzalez-Esparsa has illegally resided in the United States since 1996.
Gonzalez-Esparsa was sentenced in Cedar Rapids by United States District Court Judge C. J. Williams. Gonzalez-Esparsa was sentenced to five months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gonzalez-Esparsa is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1035-CJW.
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Huntington Woman Sentenced to Prison for Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman was sentenced today to 72 months for a federal drug charge, announced United States Attorney Mike Stuart. Amanda Hatfield, 26, previously pled guilty plea to an indictment charging her with possession with the intent to distribute 50 grams or more of methamphetamine. The Huntington Police Department conducted the investigation.
“Dealing meth will get you a long stay in federal prison,” said United States Attorney Mike Stuart. “Hatfield was caught with more than 200 grams of methamphetamine and the result is 6 years behind bars. In every case of drug dealing, we’ll do our best to lock you up away from our families as long as possible.”
Hatfield admitted that on June 1, 2017, officers searched her vehicle and found approximately 86 grams of methamphetamine. As part of the plea agreement, Hatfield also admitted that officers conducted a search warrant on her residence and located approximately 116 grams of methamphetamine. She admitted she intended to sell the methamphetamine.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Huntington Man Pleads Guilty to Distributing Fentanyl and MethamphetamineRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught selling fentanyl and methamphetamine last year in Huntington pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Brandon Scott Kidd, 39, entered a guilty plea to distributing fentanyl and methamphetamine in federal court in Huntington. Stuart commended the investigative efforts of the FBI Drug Task Force and the Cabell County Sheriff’s Department.
“Kidd was selling fentanyl, heroin and meth in Huntington,” said United States Attorney Mike Stuart. “Getting him and others like him off our streets and out of our towns is a priority for me and this office.”
On July 16, 2018, an informant working at the direction of the Cabell County Sheriff’s Department went to Kidd’s residence located at 831 15th Street in Huntington to purchase fentanyl. Inside the residence, Kidd sold the informant fentanyl in exchange for $220. Kidd then offered to sell, and sold, the informant methamphetamine in addition to the fentanyl. Later that day, deputies executed a search warrant at Kidd’s residence. During the search, deputies recovered approximately 12 grams of fentanyl and approximately 48 grams of methamphetamine.
As part of his plea agreement, Kidd admitted that he distributed fentanyl, heroin, and methamphetamine in Huntington between July of 2017 and July of 2018. Kidd further admitted that he allowed others to stay in his residence for the purchase of storing and selling drugs.
Kidd faces up to 20 years in federal prison when he is sentenced on June 10, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Honduran Drug Trafficker Sentenced to 20 Years in PrisonRead the Press Release
RICHMOND, Va. – A Honduran man was sentenced today to 20 years in prison for his leadership role in the Los Cachrios drug trafficking organization (DTO), a large-scale Honduran cocaine trafficking group.
According to court documents, Willian Medina-Escobar, 34, conspired to distribute over 1,000 kilograms of cocaine on United States registered aircraft from 2011 to 2014. Medina-Escobar, who was extradited to the United States in September 2017, served in a managerial role for the Los Cachiros DTO. In this role, Medina-Escobar inspected aircraft, organized the transport of cocaine, identified clandestine airstrips, negotiated the purchase of cocaine with sources of supply, and coordinated the landing of cocaine-laden aircraft.
In July 2013, the Los Cachiros DTO purchased a Beechcraft King Air C-90 (King Air C-90) aircraft with United States registered tail number N92XXXX to transport cocaine from Venezuela to Honduras. In the summer of 2013, Medina-Escobar negotiated the purchase of 1,025 kilograms of cocaine from a Colombia source of supply on behalf of the Los Cachiros DTO. In October 2013, the King Air C-90 flew from Guatemala to Venezuela to load and transport the cocaine shipment. On October 27, 2013, the King Air C-90 departed from Apure, Venezuela and transported 1,025 kilograms of cocaine to a clandestine airstrip near Limon, Honduras. As part of this operation, Medina-Escobar was present on the clandestine airstrip, communicated with the pilots via radio, and assisted in the safe landing of the aircraft. Upon the King Air C-90’s arrival in Honduras, the 1,025 kilograms of cocaine were off-loaded and placed into the custody of the Los Cachiros DTO for further redistribution and sale.
Operation Strong Moon was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Colonel David R. Hines, Hanover County Sheriff’s Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert and Peter S. Duffey 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. 3:16-cr-91.
Georgia Man Sentenced to Prison for Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Georgia man was sentenced today to 15 months for a federal drug charge, announced United States Attorney Mike Stuart. Jahrius Whitehead, 26, previously entered a guilty plea to an indictment charging him with possession with the intent to distribute cocaine and marijuana. The Kenova Police Department conducted the investigation.
“Selling cocaine and marijuana – a big problem that needs to end,” said United States Attorney Mike Stuart. “Whitehead tried to run but law enforcement was too quick. Good work by the Kenova Police Department in keeping these dangerous drugs off the streets.”
Whitehead admitted that on September 5, 2018, he was pulled over on I-64 for speeding. Whitehead fled the traffic stop. Officers pursued him on I-64. Whitehead wrecked his vehicle and ran from his vehicle on foot. Officers found him a short distance from the interstate. After he gave officers consent to search his vehicle, officers located approximately 151 grams of cocaine and approximately 392 grams of marijuana. He admitted to officers that he had traveled to Huntington to sell the cocaine and marijuana.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Georgia Man Indicted on Federal Charge of Failing to Register as A Convicted Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces today the return of an indictment charging Jimmie Dwight Whitfield (42, Valdosta, GA) with failing to register as a sex offender after relocating from Georgia to Florida. If convicted, he faces up to 10 years in federal prison. Whitfield was arrested in Atlantic Beach, Florida on October 25, 2018.
According to the indictment, on August 31, 1995, Whitfield was convicted of lewd, lascivious, and indecent acts with a minor in Jacksonville, Florida. On September 29, 2016, he was convicted of sexual battery and sodomy in Valdosta. Following his convictions, between March 20 and October 25, 2018, he traveled from Georgia to Florida and failed to register as a sex offender as required by the Sex Offender Registration and Notification Act (SORNA).
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the United States Marshals Service, the Lowndes County (GA) Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gang Member Sentenced to Life in Prison for His Role in Murder of Mother on Bronx PlaygroundRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that STIVEN SIRI-REYNOSO was sentenced today to life plus five years in prison for his role in the June 11, 2016, murder of Jessica White. Ms. White, 28, was killed by a stray bullet while sitting next to her mother and watching her three young children play in the playground of the John Adams Houses in the Bronx, New York. SIRI-REYNOSO gave the order for that shooting, which targeted a gang rival. On July 30, 2018, SIRI-REYNOSO was convicted of conspiring to commit racketeering, conspiring to sell narcotics, murder in aid of racketeering, and murder through the use of a firearm after an eight-day trial before Chief U.S. District Judge Colleen McMahon.
U.S. Attorney Geoffrey S. Berman said: “On June 11, 2016, Jessica White was murdered in a playground before her mother and her children, the victim of horrific and senseless gang violence. Stiven Siri-Reynoso ordered that shooting and was responsible for Jessica’s death. As a result, he will now spend the rest of his life in a federal prison. We extend our deepest condolences to the members of Jessica’s family, who have experienced tragedy beyond words. We thank our partners at the FBI and NYPD, who worked tirelessly to achieve this measure of justice for Jessica and her family. And we affirm our continued efforts to rid our neighborhoods of intolerable gang violence.”
According to the allegations in the Indictment and the evidence at trial:
On June 11, 2016, Jessica White was struck and killed by a stray bullet while sitting on a bench next to her mother and watching her three children play on a playground at the John Adams Houses, where her mother lived. SIRI-REYNOSO was a member of the “Dominicans Don’t Play” or “DDP” street gang. The DDP gang was engaged in a dispute between with the rival Trinitarios street gang involving, among other things, SIRI-REYNOSO’s drug sales near the John Adams Houses.
On the night of June 11, 2016, Trinitarios members tried to attack SIRI-REYNOSO. In retaliation, SIRI-REYNOSO sent another individual to shoot at the Trinitarios. SIRI-REYNOSO ensured the shooter had a gun and a mask, and arranged for other gang members to be waiting in a getaway car nearby. As the shooter began firing, Jessica White got up and called out for her children. She was struck by one of the bullets and killed.
SIRI-REYNOSO also committed other crimes in connection with his membership in the DDPs, including drug selling and robbery.
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In addition to the prison term, SIRI-REYNOSO, 26, of the Bronx, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Drew Skinner, Allison Nichols, and Frank Balsamello are in charge of the prosecution.
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Former postal worker imprisoned for mail theftRead the Press Release
ATLANTA - Zachary Adam Johnson has been sentenced for aggravated identity theft and mail theft. The defendant was previously a part-time mail carrier for the postal service.
“This case shows the importance of concerned citizens reporting suspicious conduct to law enforcement,” said U.S. Attorney Byung J. “BJay” Pak. “Without that call, the police never would have obtained a search warrant for Johnson’s car and found the large amount of stolen mail there. We ask all citizens to remain vigilant and if you see something, say something.”
“The Postal Inspection Service applauds the efforts of the bank employees who reported the suspicious activity of their customer’s account to law enforcement officials,” said David M. McGinnis, Inspector in Charge of the Charlotte Division. “Postal Inspectors will remain vigilant in pursuing criminals, like Johnson, to ensure the public's trust in a safe and secure mail system.”
According to U.S. Attorney Pak, the charges and other information presented in court: Johnson repeatedly broke into the U.S. Post Office in Snellville, Georgia, and stole mail. After stealing the mail, Johnson would look through it for checks and money orders, then change the payees on those instruments to make them payable to himself, and cash them at local banks. On one occasion, Johnson also forged the signature of the account owner on a check.
On June 28, 2018, Johnson was arrested by the Snellville police department after an alert bank teller at Regions Bank observed that he was trying to cash a check with a forged signature from a longtime branch customer. A search of Johnson’s car revealed five bins of stolen mail in the trunk. Johnson was released on bond by a Gwinnett County judge, but continued his conduct. On July 7 and 9, 2018, while on bond in his Gwinnett county case, Johnson was captured on surveillance video breaking into the post office and stealing mail.
Zachary Adam Johnson, 41, of Loganville, Georgia, has been sentenced to two years, one day in prison to be followed by three years of supervised release. On November 13, 2018, Johnson pled guilty to one count of aggravated identity theft and one count of mail theft.
This case was investigated by the U.S. Postal Inspection Service, which has already notified the victims it was able to identify from the seized stolen mail. The Snellville police department also assisted with this case.
Assistant U.S. Attorney Alana R. Black prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Virginia Tech Professor Found Guilty of Grant Fraud, False Statements, ObstructionRead the Press Release
Roanoke, VIRGINIA – A former Virginia Tech professor studying artificial sweeteners was found guilty last week of conspiring to commit federal grant fraud, making false statements and obstruction by falsification, First Assistant United States Attorney Daniel P. Bubar announced today.
Chief Judge Michael F. Urbanski of the Western District of Virginia released his Findings of Fact and Conclusions of Law February 20, 2019 in which he found Yiheng Percival Zhang, 47, of Blacksburg, Va., guilty of one count of conspiracy to defraud the United States, three counts of making false statements, and one count of obstruction by falsification. The ruling comes following a September 2018 bench trial in U.S. District Court in Roanoke.
“This verdict shows our commitment to hold individuals accountable who seek to fraudulently obtain federal funds. Mr. Zhang used his position of prominence to unlawfully seek money from federal grant programs and will now pay for it,” FAUSA Bubar said today. “I am proud of our team of investigators and prosecutors that worked tirelessly to ensure that tax payer dollars are not being misused.”
“Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants are intended to promote scientific innovation in the private sector by providing capital to entrepreneurial teams at a very early stage when the technological risk associated with their ideas generally precludes private sector funding,” said Allison Lerner, Inspector General for the National Science Foundation (NSF). “The NSF Office of Inspector General remains committed to ensuring the integrity of the SBIR/STTR programs by holding accountable those who attempt to hide behind sophisticated schemes aimed at diverting Federal research funds. I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
According to evidence presented at trial, Zhang, who at the time of the offenses was a biological systems engineering professor at Virginia Tech, founded Cell-Free Bioinnovations, Inc. (“CFB”), a research firm located in Blacksburg, Virginia. CFB relied exclusively on federal grants for funding its research activities. Zhang began working as a paid researcher for the Tianjin Institute of Industrial Biotechnology, Chinese Academy of Sciences by, at least, 2014. In 2015, Zhang caused fraudulent grant proposals to be submitted to the NSF. Evidence presented at trial indicated grant funds obtained would be used for research Zhang knew had already been done in China. Zhang intended to use the grant funds for other CFB projects rather than for the projects for which the funds were requested. To obstruct the investigation, Zhang submitted falsified timesheets to government investigators.
The investigation of the case was conducted by the Department of Energy-Office of the Inspector General, the Federal Bureau of Investigation, and the National Science Foundation-Office of the Inspector General with the assistance of the Blacksburg Police Department and the Virginia Tech Police Department. Assistant United States Attorneys Steve Pfleger and Randy Ramseyer prosecuted the case for the United States.
Former Student Charged with Damaging Computers at Albany CollegeRead the Press Release
ALBANY, NEW YORK – Vishwanath Akuthota, age 26, of Albany, was arrested on February 22 in North Carolina after being charged with intentionally causing damage to protected computers owned by The College of Saint Rose in Albany.
The announcement was made by United States Attorney Grant C. Jaquith; Chief Eric Hawkins of the Albany Police Department (APD); and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, on February 14, 2019, Akuthota entered numerous locations around the Saint Rose campus and inserted a device into more than 50 computers used by students. The device, which resembles a normal USB memory stick, sends a rapid series of power surges into a computer’s electrical hardware, rendering it inoperable. The damage exceeds $50,000. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Akuthota is a citizen of India, residing in the United States on a student visa.
Akuthota appeared in federal court in Raleigh, North Carolina, where a United States Magistrate Judge ordered him detained and transported to the Northern District of New York.
The charge filed against Akuthota carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the APD and the FBI, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Former Secretary of Tribal Office Charged with EmbezzlementRead the Press Release
United States Attorney Ron Parsons announced that a former Secretary of the Oglala Sioux Tribe’s Credit and Finance Office has been indicted by a federal grand jury for Embezzlement and Theft from an Indian Tribal Organization. Helen Hernandez, age 41, was indicted on February 5, 2019, and she made her initial appearance before U.S. Magistrate Judge Daneta Wollman on February 21, 2019, in Rapid City, South Dakota.
The Indictment alleged that from February 2014 through June 2015, Hernandez embezzled and converted to her own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Credit and Finances Office of the Oglala Sioux Tribe, an Indian Tribal Organization. During the time of the embezzlement, Hernandez was serving as the Secretary of that office.
The charge is merely an accusation and Hernandez is presumed innocent until and unless proven guilty. Hernandez pleaded not guilty during her initial appearance. The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation is being conducted by the Department of Interior, Office of Inspector General. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Postal Employee Pleads Guilty to Theft of MailRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that COURTNEY C. DUPLESSIS (“DUPLESSIS”), age 30, of New Orleans, Louisiana, entered a plea of guilty on Thursday, February 21, 2019 to Theft of Mail, in violation of Title 18, United States Code, Section 1709.
According to court records, DUPLESSIS was employed by the United States Postal Service as a Letter Carrier originally assigned to the Carrolton Station Post Office and then to the Elmwood Station Post Office. After an investigation by the Office of Inspector General for the U.S. Postal Service, it was determined that on various dates from October 2017 to June 2018, DUPLESSIS stole several pieces of mail containing gift cards and cash. On June 19, 2018, special agents with U.S. Postal Service Office of Inspector General (“USPS-OIG”) determined DUPLESSIS opened an envelope and removed cash from the envelope. The USPS-OIG agents confronted DUPLESSIS and advised her of her Miranda rights. During an interview, DUPLESSIS admitted to opening several articles of mail and removing cash and gift cards. Agents discovered an additional 54 articles of mail during a subsequent search of DUPLESSIS’s personal vehicle.
DUPLESSIS faces a maximum penalty of five (5) years imprisonment, a $100.00 special assessment fee and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571. Sentencing is scheduled for May 2, 2019 at 2:00pm.
U.S. Attorney Peter G. Strasser praised the work of the USPS-OIG. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Former NYPD Detective Sentenced to Three Months’ Imprisonment for Committing Perjury in a Federal ProsecutionRead the Press Release
Michael Foder, a former detective employed by the New York City Police Department (NYPD) at the time of the charged conduct, was sentenced in federal court in Brooklyn today by United States District Judge Pamela K. Chen to three months’ imprisonment. In August 2018, Foder pleaded guilty to perjury in connection with false statements he made under oath during a criminal proceeding. Foder was arrested in February 2018 and resigned from the NYPD in August 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, NYPD, announced the sentence.
“Integrity is an essential characteristic for every law enforcement officer and the overwhelming majority of officers earn and deserve the trust of the public,” stated United States Attorney Donoghue. “In choosing to lie, this defendant undermined fellow officers and rendered himself unfit to serve as a law enforcement officer.”
On December 29, 2016, Foder, then assigned to the 70th Precinct in Flatbush, Brooklyn, falsely testified under oath at a hearing in a federal prosecution about when and how he showed photographs of two robbery suspects to a victim of a carjacking. Following the hearing, the government found discrepancies in the photo array identifications, including when the identifications had occurred.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
MICHAEL FODER
Age: 42
Staten Island, NYE.D.N.Y. Docket No. 18-CR-97 (PKC)
Former Mahoning County judge pleaded guilty to charges stemming from stealing at least $100,000 from a former clientRead the Press Release
A former Mahoning County judge pleaded guilty to charges stemming from stealing at least $100,000 from a former client.
Diane Vettori-Caraballo, 50, of Youngstown, pleaded guilty to one count of mail fraud, one count of structuring cash deposits, and one count of making false statements to law enforcement. She is scheduled to be sentenced June 13.
Her husband, Ismael Caraballo, pleaded guilty to a tax count.
Vettori-Caraballo stole between $100,200 and $328,000 in cash that was in the home of a client when that client died in March 2016, according to the indictment.
Vettori-Caraballo was elected to position of judge in Mahoning County Court #3 – Sebring Court in 2002, with jurisdiction over misdemeanor criminal and traffic charges and other matters in Sebring and Beloit Villages and Berlin, Green, Goshen,, Ellsworth, Smith and Washingtonville Townships. She was reelected in 2006 and 2012, according to the indictment.
She also provided estate planning services to Robert Sampson, including drafting his will. On Nov. 20, 2015, Vettori-Caraballo filed an application in Mahoning County Probate Court to administer Sampson’s estate. The application stated Sampson died without a will. The probate court, unaware of Sampson’s will, appointed Falgiani as the administrator three days later, according to the indictment.
Sampson died in 2015 and his closest living relative was his sister, Dolores Falgiani. Vettori-Caraballo prepared Falgiani will on Nov. 3, 2015. The will made 16 specific bequests to relatives and friends and bequeathed the rest of the estate to Animal Charity Human Society of Boardman and the Angels for Animal Charity in Canfield, according to the indictment.
Sometime in October or November 2015, Falgiani stated she was in possession of several shoeboxes of cash stored at her residence. Falgiani was found dead in her home on March 10, 2016, according to the indictment.
Vettori-Caraballo filed an application in Mahoning County Probate Court to probate Falgiani’s estate on March 24, 2016. On May 2, she reported having found cash in the residence and depositing the $20,000 into the estate, according to the indictment.
Vettori-Caraballo filed a notice of newly discovered assets with the court on several subsequent occasions in 2016 and 2017. Each time, she failed to disclose the cash she had stolen, according to the indictment.
Vettori-Caraballo also structured deposits of the cash she stole into five different banks within four weeks to avoid regulations that require banks to report cash transactions over $10,000 to the IRS. In addition, Vettori-Caraballo lied to the FBI when she was confronted about the theft and the structuring of cash deposits, according to court documents.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Alex Abreu.
Former Lake Oswego Financial Advisor Sentenced to 36 Months in Federal Prison for Defrauding InvestorsRead the Press Release
PORTLAND, Ore.—Shayne Kniss, 43, formerly of Lake Oswego, Oregon, was sentenced today to 36 months in federal prison and three years’ supervised release for defrauding clients of his investment firm, Iris Capital Management Group, LLC. Kniss was also ordered to pay more than $529,000 in restitution to his victims.
According to court documents, Kniss founded Iris Capital in October 2010 and offered real estate based investments in several different funds to investors. Through various means, including brochures, private placement memoranda, emails, and personal presentations, Kniss misrepresented how he would manage investor funds.
Between February 2011 and April 2013, 47 people invested approximately $4.3 million in Kniss’s funds. Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 for person use, including investing in a retail marijuana enterprise.
Kniss previously pleaded guilty to one count of wire fraud on May 8, 2018.
The FBI investigated this case. It is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Former Arizona Official Who Accepted Bribes from Culver City Debt Collection Outfit Pleads Guilty to Federal Criminal ChargeRead the Press Release
LOS ANGELES – A former Arizona public official pleaded guilty today to accepting tens of thousands of dollars in cash bribes from a now-defunct Culver City-based debt collection company in exchange for disclosing confidential information that helped the company collect nearly $1 million in outstanding debts.
Leslie Gene Nelson, 59, of Phoenix, pleaded guilty to one count of bribery, a felony offense that carries a statutory maximum sentence of 10 years in federal prison. United States District Judge S. James Otero scheduled a June 24 sentencing hearing.
Nelson was an employee of the Arizona Department of Economic Security (AZ DES), a state agency that provides unemployment benefits. In a plea agreement filed in this case, Nelson admitted he accepted at least $26,000 in cash bribes from Michael S. Flowers and Flowers’ employer, Professional Collection Consultants (PCC), from approximately September 2010 until August 2013. In exchange for the bribes, Nelson provided Flowers and PCC with wage and earnings information for thousands of specific Social Security numbers that Flowers provided, according to court documents. AZ DES maintained wage and employment-related data in its computer systems, which were linked with federal and state databases that contained confidential information for people nationwide.
Nelson admitted that he received the Social Security numbers from Flowers and that he sent confidential information found on each individual or advised that no wages existed for a specific Social Security number. Armed with the confidential information, PCC analyzed the collectability of each debtor’s debt and determined whether it was financially reasonable to sue the debtor to obtain a court judgment that would allow the company to garnish the debtor’s wages.
During the first eight months of 2013, the confidential information that Nelson provided helped PCC collect $946,770 in debts owed.
Flowers, 58, of the Mid-City district of the City of Los Angeles, deposited Nelson’s bribe payments into a local bank and he also received a 10 percent commission on the recoveries made by PCC. Flowers and PCC each pleaded guilty to conspiracy to commit federal program bribery. Flowers was sentenced to three years’ probation. PCC was fined $350,000 and ordered to forfeit $946,770.
This matter was investigated by the United States Department of Labor, Office of the Inspector General, which received assistance from the Federal Bureau of Investigation and the Arizona Department of Economic Security.
The case is being prosecuted by Assistant United States Attorney Elisa Fernandez of the Public Corruption and Civil Rights Section.
Federal Jury Convicts a Local Man for Illegally Possessing a FirearmRead the Press Release
Memphis, TN –A local man has been found guilty by a jury for being a felon in possession of a firearm after he committed an armed robbery. U.S. Attorney D. Michael Dunavant announced the conviction today.
According to information presented in court, on September 22, 2016, Alford Robinson robbed a victim at gunpoint and escaped in a blue Dodge Charger. The victim reported the robbery to police, who then put out a broadcast for the vehicle. Two MPD officers who heard the broadcast saw and stopped the car. The defendant immediately jumped out of the vehicle, over a 6-foot privacy fence and escaped from law enforcement. While searching the vehicle, law enforcement located two loaded Smith & Wesson .40 caliber pistols on the floorboards.
On February 23, 2017, Robinson was indicted in federal court for being a convicted felon in possession of a firearm, and was detained by a magistrate judge pending trial. He attempted to escape from federal prison 25 days prior to his original trial date. On March 13, 2018, Robinson was indicted in federal court and charged with attempted escape.
On June 26, 2018, Robinson pleaded guilty to the attempted escape and asked for a trial on the firearm charges. On February 21, 2019, after approximately 30 minutes of deliberation, a federal jury found him guilty of being a felon in possession of a firearm. He will now be classified as an armed career criminal and will face a mandatory minimum sentence of 15 years and up to life imprisonment.
U.S. Attorney D. Michael Dunavant said, "Under our PSN initiative, we focus on removing firearms from the hands of prohibited persons, and removing dangerous felons from our streets. Clearly, this armed career criminal had no hesitation in committing a violent crime with a firearm, and he will now be removed from our community for at least 15 years. We are FED UP. Gun Crime is Max Time."
Sentencing is set for May 24, 2019, before U.S. Senior District Court Judge Samuel H. Mays.
This case is part of Project Safe Neighborhoods (PSN) initiative, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was investigated by the Shelby County Sheriff’s Office, the U.S. Marshals Service, the Memphis Police Department Felony Response Unit, and the PSN Task Force.
Assistant U.S. Attorneys J. William Crow and Stephen Hall are prosecuting this case on behalf of the government.
Federal Jury Convicts Man Who Attempted to Bomb Downtown Oklahoma City BankRead the Press Release
OKLAHOMA CITY — A federal jury has convicted Jerry Drake Varnell, 24, of Sayre, Oklahoma, for attempting to use a weapon of mass destruction at BancFirst in downtown Oklahoma City, announced Robert J. Troester of the U.S. Attorney’s Office.
Jurors began hearing testimony on February 12 and entertained closing arguments this morning. After a half-day of deliberation, they returned unanimous verdicts of guilty on one count of attempting to use an explosive device to damage a building in interstate commerce and one count of attempting to use a weapon of mass destruction against property used in interstate commerce.
The FBI arrested Varnell at approximately 1:00 a.m. on August 12, 2017, after he attempted to detonate what he believed to be an explosives-laden van he had parked in an alley next to BancFirst, at 101 North Broadway. The arrest was the culmination of a long-term domestic terrorism investigation involving an undercover operation, during which Varnell had been monitored closely for months as the alleged bomb plot developed. The explosives were inert, and the public was not in danger. FBI had received information that Varnell initially wanted to blow up the Federal Reserve Building in Washington, D.C., with a device similar to the 1995 Oklahoma City bombing because he was upset with the government.
On October 17, 2017, a federal grand jury charged Varnell with attempting to use an explosive device to damage and destroy BancFirst’s corporate offices. After a psychological evaluation, the court entered an order on November 21, 2017, that found him competent to stand trial. The grand jury returned a superseding indictment on April 17, 2018, that added one count of attempting to use a weapon of mass destruction.
At trial, the jury heard testimony from an informant who made recordings of his conversations with Varnell. It also heard from the undercover FBI agent who helped Varnell build what he thought was a bomb, an FBI bomb technician, and others. It listened to numerous recordings in which Varnell planned the attack and reviewed numerous written electronic communications that corroborated his intent. Furthermore, it heard the testimony of a defense expert concerning Varnell’s mental health. Through its verdicts, the jury concluded any mental health problems did not prevent Varnell from forming the intent required for conviction. It also determined the FBI did not entrap him.
Varnell will remain in custody until his sentencing, which will take place in approximately ninety days. He faces a maximum sentence of life for attempting to use a weapon of mass destruction and a maximum sentence of twenty years for attempting to use an explosive device. The explosive-device count carries a statutory mandatory minimum sentence of five years. He could also be fined $250,000 on each count and subject to supervised release for the rest of his life.
This investigation was conducted by the FBI Joint Terrorism Task Force, including members from the Oklahoma City FBI; Homeland Security Investigations, part of the U.S. Department of Homeland Security; the Oklahoma City Police Department; the Edmond Police Department; the Oklahoma Highway Patrol; the Oklahoma Bureau of Narcotics and Dangerous Drugs; and the Oklahoma State Bureau of Investigation. The FBI worked in conjunction with BancFirst during the investigation. Oklahoma District Attorney Angela Marsee, of District 2, also provided assistance. The case is being prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark R. Stoneman, with assistance from the Justice Department’s Counterterrorism Section.
Reference is made to court records for further information.