Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 February 2019
Five Men Charged in Syracuse Heroin Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Four men from Syracuse and one from New York City (the Bronx) have been charged with operating a heroin distribution ring from which investigators seized over 62,000 individual bags of heroin, totaling in excess of two kilograms, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
The following men are charged in two federal criminal complaints with being members of a conspiracy to possess with intent to distribute and distribution of heroin and fentanyl:
- Gavin Ballog, 29, Syracuse, New York
- Yan Morales, 29, Syracuse, New York
- Brian Morales, 28, Syracuse, New York
- Juan Santa, 27, Syracuse, New York
- Jesus Manuel Lopez Mendez, 34, New York City (the Bronx)
Defendants Ballog, Y. Morales, B. Morales, and Santa were arrested and charged on February 2, 2019. Jesus Manuel Lopez Mendez was in the custody of immigration authorities when he was arrested and charged today. The criminal complaints allege the seizure of over 62,000 individual bags of heroin, totaling in excess of two kilograms, and two handguns, as part of an investigation utilizing court-ordered wiretaps. All five defendants have appeared in federal court in Syracuse and are held without bail. The charges filed against the five men carry mandatory minimum sentences of ten years and maximum sentences of life in prison, a fine of up to $10,000,000.00, and a term of supervised release of at least 5 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.
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by U.S. Drug Enforcement Administration, the New York State Police, and the City of Auburn (New York) Police Department, and Investigators from the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Carla B. Freedman.
Financial Advisor Sentenced to 28 Months in Prison for Misappropriating Funds from NFL PlayersRead the Press Release
GREENSBORO, N.C. - A Florida financial advisor who provided financial services to professional athletes was sentenced to prison today for conspiring to commit wire fraud and money laundering, announced Matthew G.T. Martin, U.S. Attorney for the Middle District of North Carolina.
Jason Christopher JERNIGAN, age 44, a resident of Miramar, Florida, was sentenced to 28 months in prison by U.S. District Court Judge N. Carlton Tilley, Jr. of the Middle District of North Carolina.
According to court documents, JERNIGAN, along with his business partner Michael Rowan, operated Capital Management Wealth Advisors, Inc. (“CMG”) and APS Management, LLC (“APS”) in High Point, North Carolina. Through CMG and APS, JERNIGAN and Rowan provided financial and investment services to professional athletes, including players in the National Football League. From 2008 through 2014, JERNIGAN used his access to his clients’ bank accounts to convert and misappropriate approximately $1.48 million.
On March 7, 2018, JERNIGAN pleaded guilty to one count of conspiracy to commit wire fraud and money laundering. JERNIGAN’s business partner, Michael Rowan, was sentenced in April 2017 to 65 months in prison for wire fraud and filing a false 2011 tax return.
In addition to the term of imprisonment imposed, JERNIGAN was order to serve three years of supervised release and to pay restitution in the amount of $1,290,980 to the victims/clients.
U.S. Attorney Martin stated, “Fighting fraud is a priority of our office. I commend the excellent work of the special agents of IRS-Criminal Investigation and US Postal Inspection Service who investigated the case, and Assistant United States Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who prosecuted this case.”
###
Federal Jury Convicts Mayor of Portage, Ind., on Corruption Charge for Pocketing a Bribe to Influence City ContractsRead the Press Release
CHICAGO — A federal jury today convicted the mayor of Portage, Ind., on a corruption charge for soliciting and pocketing a bribe in exchange for influencing the awarding of city contracts.
The jury in U.S. District Court in Hammond, Ind., convicted JAMES SNYDER, 38, of Portage, Ind., on one count of bribery and one count of obstruction of internal revenue laws. The jury acquitted Mayor Snyder on one other bribery count. U.S. District Judge Joseph S. Van Bokkelen set sentencing for May 14, 2019. The bribery conviction is punishable by up to ten years in prison, while the obstruction count is punishable by up to three years.
The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Grant Mendenhall, Special Agent-in-Charge of the Indianapolis office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Indiana State Police provided valuable assistance. The government was represented at trial by Assistant U.S. Attorneys Philip C. Benson and Jill R. Koster of the U.S. Attorney’s Office for the Northern District of Indiana. The prosecutors were supervised by the U.S. Attorney’s Office for the Northern District of Illinois after recusals by supervisory personnel from the Northern District of Indiana.
Evidence at trial revealed that from 2012 to 2014, Mayor Snyder corruptly solicited and agreed to accept a $13,000 check to influence the awarding of a series of city contracts, including more than $1.1 million in contracts approved by the Portage Board of Works.
The obstruction charge involved a scheme to impede the IRS’s collection of personal taxes owed by Mayor Snyder, and the collection of payroll taxes owed by Mayor Snyder’s mortgage business – Portage, Ind.-based First Financial Trust Mortgage LLC. While the IRS was attempting to collect these tax debts, Mayor Snyder secretly diverted funds from the mortgage business to a sole proprietorship that he created. Mayor Snyder submitted forms to the IRS that failed to disclose, among other things, the existence of the sole proprietorship and its bank account.
Federal Court Sentences California-Based Drug Trafficking Head to 42 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that Alex Alberto Castro received 42 years in prison for conspiring to distribute heroin and cocaine. A federal jury convicted Castro in October 2018. He was the lead defendant of a 20-defendant drug conspiracy that began in 2013 and continued until all defendants were arrested in 2017. Chief United States District Judge Robert J. Jonker handed down the sentence..
Evidence presented at trial proved Castro to be the lead California-based drug distributor, responsible for sending heroin and cocaine to Grand Rapids, Michigan, Indianapolis, Indiana, and Kansas, through the use of trap-cars, semi-trucks with custom-made concealed compartments, and car trailers. Castro employed multiple drivers and maintained his drug distribution deliveries even while in prison for a federal supervised release violation in 2016.
The conviction was the result of a multi-agency Federal and State investigation into the conspiracy. The investigation began in 2016 and continued through 2017 and involved the wiretap of seven separate telephones used by multiple coconspirators. In total, 24 defendants were convicted as a result of the charges brought in the investigation. During the arrests of the defendants and execution of associated searches, federal and state investigators seized over 30 kilograms of heroin, cocaine and fentanyl, multiple pounds of marijuana, two kilogram presses, over $1,300,000 in drug proceeds, a bullet-proof vest, three handguns and an assault rifle with an extended magazine.
"Heroin, fentanyl and cocaine - trafficked into our state from other regions—have been a scourge to our community. In Kent County alone, the number of overdose deaths from controlled substances increased by over 50% from 2016 to 2017 and we lost 156 of our neighbors to overdoses in 2017,” stated U.S. Attorney Birge. “Our federal and state law enforcement partners will not rest until they have traced these drugs to their source, like Mr. Castro. Stiff penalties like the one the Court issued here are warranted for those who would profit from this poison."
DEA Special Agent in Charge Tim Plancon added, “This investigation is an example of DEA’s continuing effort to target the distribution of dangerous drugs at the highest level in western Michigan. Castro was part of a drug distribution network spanning from Mexico to Michigan and beyond. The men and women of DEA, along with our law enforcement partners and federal prosecutors, will continue our relentless pursuit to identify and investigate those trafficking illicit narcotics and committing related violent acts in our communities."
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, “IRS-CI will continue to exploit its forensic capabilities to identify, trace and dismantle the financial networks of those individuals and organizations that bring drugs and crime into our state, exhausting all avenues to deny these criminals of their financial reward. Equally important, IRS-CI will utilize the forfeiture statutes to deprive these individuals and organizations of their ill-gotten gains."
The Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Federal Bureau of Investigation (FBI), Vice Unit of the Grand Rapids Police Department (GRPD), Kent County Sheriff’s Department (KCSD), Wyoming Police Department, Michigan State Police (MSP), Kent Area Narcotics Enforcement Team (KANET), Metropolitan Enforcement Team (MET), U.S. Secret Service (USSS), Bureau of Alcohol Tobacco and Firearms (ATF), Kalamazoo Valley Enforcement Team (KVET), Albion P.D., Calhoun County Sheriff Department, and South West Enforcement Team (SWET) have all supported the investigation.
The image below shows items recovered through the law enforcement operation.
END
Federal Court Sentences Business Owner for $20 Million Tax FraudRead the Press Release
HOUSTON - A man who had owned Stat Source, Inc., has been ordered to prison for willfully failed to truthfully account for and pay over employment taxes to the IRS, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI). Jonathan Adam Van Pelt pleaded guilty Nov. 8, 2018.
Today, U.S. District Judge Alfred H. Bennett handed Van Pelt a 30-month sentence to be immediately followed by three years of supervised release. Judge Bennett also ordered Van Pelt to pay restitution to the United States of more than $20 million.
In handing down its sentence, Judge Bennett noted many factors to include Van Pelt’s medical condition as well as the size of the tax loss and the fact that Van Pelt knew he had a degenerative disease prior to commission of his crime.
In the plea agreement filed in the record of the case, Van Pelt admitted the total employment taxes he failed to pay to the IRS for Stat Source Inc., was more than $20 million, the amount owed for 18 employment tax quarters running from the third quarter of 2011 through the fourth quarter of 2015. Van Pelt also admitted he spent the money owed on the unpaid employment taxes on various luxury items, such as luxury automobiles, expensive furniture, leather goods, jewelry, an expensive home, lavish vacations and various entertainment venues.
Judge Bennett allowed Van Pelt to remain on bond pending his voluntary surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
FedEx Packages Intercepted by Law Enforcement Result in Ten-Year Prison SentenceRead the Press Release
United States Attorney Joe Kelly announced that on February 14, 2019, Chief United States District Judge John M. Gerrard sentenced Jose Guzman-Ramirez to a term of imprisonment of 120 months, to be served in the U.S. Bureau of Prisons. Guzman-Ramirez pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, a felony offense.
Investigators with the Drug Enforcement Administration, Omaha Field Division, and the Douglas County Sheriff’s Office intercepted a FedEx delivery of packages containing approximately 10 pounds of methamphetamine. Investigators successfully executed the delivery at a residence in Omaha, where Guzman-Ramirez and another defendant received the packages. Investigators recovered the methamphetamine and more than $11,600 in United States Currency, which is subject to criminal forfeiture. Guzman-Ramirez agreed to an order of removal by U.S. immigration authorities after serving his criminal sentence.
This case was investigated by the Drug Enforcement Administration and the Douglas County Sheriff’s Office.
Ex-Fannie Mae Employee Found Guilty in Multi-Million Dollar Scheme Involving Property Listings and Approval of Below-Market SalesRead the Press Release
SANTA ANA, California – A former employee of Fannie Mae in Irvine has been found guilty of federal fraud charges related to bribes and kickbacks she took from brokers in exchange for Fannie Mae real estate listings and her approval of discounted sales of Fannie Mae-owned properties.
Shirene Hernandez, 46, of Corona, was found guilty on Tuesday of two wire fraud counts that involved the deprivation of honest services. Following the guilty verdicts on Tuesday, a federal jury on Wednesday found that Hernandez must forfeit a piece of property she derived from her criminal conduct.
According to the evidence presented at a five-day trial, Hernandez was a sales representative at the Federal National Mortgage Association (Fannie Mae), a government-sponsored entity under the conservatorship of the Federal Housing Finance Agency (FHFA). As part of its operations, Fannie Mae acquires properties through foreclosures and other methods, and then manages and sells those properties for Fannie Mae’s benefit. Since at least 2012, Fannie Mae’s profits have gone to the United States Treasury Department for the benefit of the U.S. taxpayer.
As a sales representative, a position she held from 2010 until 2015, Hernandez assigned Fannie Mae-owned properties to real estate brokers and approved sales of the properties based on offers the brokers submitted. In violation of Fannie Mae rules and federal law, Hernandez approved sales of Fannie Mae-owned properties at discounted prices to herself and to the brokers who paid her kickbacks. She also received bribes – mostly in cash payments – in return for listings and commissions that brokers earned on real estate sales.
Hernandez also assigned listings to family members who received nearly $2 million in commissions in less than three years. For her part in the scheme, Hernandez received more than $1 million in benefits, including the cash kickbacks and equity in a property she obtained with kickback money.
As part of the scheme, Hernandez purchased a Fannie Mae-owned property in Sonoma that she was responsible for selling, after she rejected higher, market-priced offers in favor of her own below-market price. Hernandez purchased the Sonoma property through intermediaries and affiliates that she controlled, selling it first to a company affiliated with a broker who was bribing her, then directing the broker to transfer the property to her sister-in-law, who paid for the property with a duffel bag filled with $286,450 in cash she received from Hernandez – far below the market price. The Sonoma property was rented out and Hernandez received the rent proceeds. The jury on Wednesday found this property – which now is worth hundreds of thousands of dollars more than the purchase price – should be forfeited to the U.S. government.
United States District Judge Andrew J. Guilford has scheduled a May 13 sentencing hearing for Hernandez, who faces a statutory maximum of 20 years in federal prison on each of the two felony offenses.
The case was investigated by the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG).
The prosecution is being handled by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section and Assistant United States Attorney Ian V. Yanniello of the General Crimes Section.
Ex-Accounting Manager Charged with Embezzling $36 Million from a Company Client Has Been Extradited from Costa RicaRead the Press Release
LOS ANGELES – A former accounting manager who is facing 10 wire fraud counts for allegedly embezzling more than $36 million from his employer’s client and then using the bulk of the ill-gotten funds to pay off tens of millions of dollars of his credit card debt has been extradited to the United States from Costa Rica.
Paul McDaniel, 42, a.k.a. “Edward Martin Karuku,” who resided in the City of Orange before fleeing to Costa Rica in early 2017, arrived this afternoon in Los Angeles after extradition proceedings in Costa Rica. McDaniel is scheduled to be arraigned Friday afternoon in United States District Court.
From July 2009 until December 2016, McDaniel allegedly embezzled the funds from Hypermedia Systems, Inc., a media technology services firm based in downtown Los Angeles. McDaniel was initially an independent contractor for and then an employee of E-Times Corp., a downtown Los Angeles-based professional services firm providing accounting assistance to Hypermedia Systems. McDaniel was assigned to work at Hypermedia as an accounting manager. As part of his job, he would request payments to be made from a Hypermedia account to pay purported Hypermedia vendors.
According to the indictment filed in September 2017, during the time he was working with Hypermedia McDaniel formed a Nevada corporation with a name similar to one of Hypermedia’s vendors and then opened a bank account – under which he had complete control – in that entity’s name. He then allegedly used his authority as Hypermedia’s accounting manager to approve and direct payments totaling more than $36 million to this bank account. To justify the payments, McDaniel allegedly created false and fictitious invoices on the letterhead of actual Hypermedia vendors, falsely stating that particular goods had been provided to the company. The fraudulent payments were wired to the McDaniel-controlled bank account.
McDaniel used the funds to pay off $23 million in credit card bills and transferred another $8 million to his personal bank accounts, according to the indictment. Investigators believe he spent additionally millions of dollars on miscellaneous expenses.
McDaniel was arrested in Costa Rica in 2017 pursuant to a provisional arrest warrant filed by the United States. He was held in custody during extradition proceedings.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each of the 10 counts of wire fraud charges in the indictment carries a statutory maximum penalty of 20 years in federal prison.
This case was investigated by the Federal Bureau of Investigation. The United States Attorney’s Office extends its appreciation to the Costa Rican authorities who assisted in apprehending the defendant, and the Department of Justice Office of International Affairs for assisting with the extradition as well as the United States Department of State Diplomatic Security Service and the United States Marshals Service for their assistance in this matter.
This case is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Erie Man Charged with Illegally Possessing a Firearm while the Subject of an Active PFARead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment named Jonathan Dominic Mull, 19, as the sole defendant.
According to the indictment presented to the court, on December 4, 2018, Mull possessed a firearm which he was precluded from possessing because of an active protection from abuse order.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearm and Explosives.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Effingham Woman Sentenced to Five Years of Probation for Making False Statements to Obtain Social Security BenefitsRead the Press Release
CONCORD – Valerie Rondeau, 59, of Effingham was sentenced to five years of probation for making false statements to obtain Social Security disability benefits, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Rondeau received Supplemental Security Income (“SSI”) benefits for over 16 years prior to her marriage in May 2013. Rondeau continued to receive these benefits after she wed, but Rondeau did not report her marriage or her shared living arrangement to the Social Security Administration. Instead, Rondeau took active steps to conceal her marriage and living arrangement. For example, Rondeau changed her last name to that of her husband, writing in the petition “we live as a married couple.” But, when Social Security inquired about the name change, Rondeau advised Social Security that she was not married and does not present herself as married. Rondeau continued to conceal her marriage and living arrangement until November 2017, when she admitted to investigators that she did not obtain a marriage license or report her marriage to Social Security because she knew she could lose her disability benefits.
Rondeau’s marriage or shared living arrangement, if properly reported, would have disqualified her from receiving benefits. Applicants for certain disability benefits must have limited income and resources in order to qualify for assistance. The incomes of all members of a household are considered when determining an individual’s eligibility for SSI benefits. As a result of her concealment, Rondeau received over $37,000 in disability benefits that she was not entitled to receive.
Rondeau previously pleaded guilty on November 6, 2019. In addition to probation, the court ordered that Rondeau pay full restitution of $37,879.
“Federal benefit programs are designed to provide assistance to those who truly need financial help,” said U.S. Attorney Murray. “In order to protect the integrity of these programs, we work closely with our law enforcement partners to identify and prosecute those who use fraud to obtain benefits that they are not entitled to receive.”
“By prosecuting offenders like Rondeau, we deliver a strong message that this type of fraud won’t be tolerated,” said Adam D. Schneider, Acting Special Agent-in-Charge of the Social Security OIG’s Boston Field Division. “Today’s sentencing should serve as a warning to those who choose to selfishly defraud the Social Security Administration. These cases are vigorously pursued, and we will continue to work jointly with the U.S. Attorney, and other law enforcement partners to identify and prosecute fraud perpetrators in the future. I strongly encourage the public to report suspected instances of Social Security fraud to the SSA OIG’s Fraud Hotline at 1-800-269-0271 or http://oig.ssa.gov/report.”
“Today’s sentencing demonstrates the U.S. Postal Inspection Service’s commitment to combat fraud,” said U.S. Postal Inspection Service’s Inspector in Charge Joseph W. Cronin of the Boston Division. “By working with our federal law enforcement partners, we will continue to investigate and take action against those who take part in this type of behavior.”
This matter was investigated by the Social Security Administration Office of the Inspector General and the United States Postal Inspection Service. The case was prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter.
###
Eastern District of Kentucky U.S. Attorney’s Office Collects over 29 Million Dollars in Criminal and Civil Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
LEXINGTON, Ky. - U.S. Attorney Robert M. Duncan, Jr. announced today that the Eastern District of Kentucky collected $29,313,458.05 in criminal and civil actions in Fiscal Year 2018. Of this amount, $23,868,990.17 was collected in criminal actions and $5,444,467.88 was collected in civil actions.
Additionally, Eastern District of Kentucky worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,059,343.76 in cases pursued jointly by these offices in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
“The Eastern District of Kentucky’s dedicated personnel, in collaboration with partners from other Department of Justice components, worked diligently to protect our citizens and to safeguard taxpayer resources,” stated United States Attorney Robert M. Duncan, Jr. “I commend their efforts in these important endeavors. As a result of their hard work, a significant amount of taxpayer dollars were recovered in last Fiscal Year.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Dubuque Woman Sentenced for Illegally Possessing Multiple GunsRead the Press Release
A woman who possessed guns while using drugs was sentenced on February 13, 2019, to three years’ probation.
Marliesha Scott, age 39, from Dubuque, Iowa, received the sentence after a July 9, 2019, guilty plea to drug user in possession of firearms. Scott possessed three guns while using cocaine and marijuana. The guns were recovered during a Department of Human Services investigation related to her minor children.
Scott was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Scott was sentenced to three years’ probation.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1014.
Follow us on Twitter @USAO_NDIA.
Drug User in Possession of a Gun Sentenced to Federal PrisonRead the Press Release
A Waterloo marijuana user who possessed a gun and high-capacity magazine was sentenced yesterday to more than two years in federal prison.
Antonio Rodriquez Ross, age 24, from Waterloo, Iowa, received the prison term after an August 24, 2018 guilty plea to being a drug user in possession of a firearm.
In a plea agreement, Ross admitted he possessed a gun while he was an unlawful user of marijuana. He further admitted that at the time he possessed the gun, law enforcement was investigating him for his involvement in drug trafficking and use crimes. Ross was also in possession of a high-capacity magazine capable of holding 30 rounds of ammunition.
Ross was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Ross was sentenced to 32 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.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ross 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 Emily K. Nydle and investigated by Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-Cr-2018.
Follow us on Twitter @USAO_NDIA.
Douglas Man Sentenced to 60 Years in Prison for Production and DistributionRead the Press Release
TUCSON, Ariz. – Yesterday, Josue Eduardo Cota, 33, of Douglas, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to serve 720 months in prison. Cota’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender, if he is released from prison.
In February of 2017, Homeland Security Investigations discovered videos showing sexual abuse of pre-pubescent children while reviewing evidence from a child exploitation case in Canada. Agents tracked the distribution of the videos to a person in Douglas, Ariz., and determined that Cota, a former corrections officer in Douglas, had been producing sexually explicit videos of multiple children and distributing them online. On Nov. 30, 2017, Cota pleaded guilty to eight counts of production of child pornography. Cota’s sentence, was aggravated by the facts that he sexually abused very young children and had engaged in a pattern of sexual exploitation of minors, which he shared with others through distribution of the videos.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations, Douglas Office. The prosecution was handled by Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-17-0685-TUC-RM
RELEASE NUMBER: 2019-013_Cota
# # #
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.
Cushing Man Sentenced to Four Years for Seaman’s ManslaughterRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Christopher A. Hutchinson, 30, of Cushing, Maine was sentenced in U.S. District Court by Judge D. Brock Hornby to four years in prison and three years of supervised release for Seaman’s Manslaughter for causing the death of two crewmen who were then 26 and 15 years old. Hutchinson pleaded guilty on September 25, 2018.
According to court records, on November 1, 2014, after smoking marijuana and drinking alcohol, Hutchinson took his lobster boat, the No Limits, out into a predicted storm with two crewmen aboard. After he had ingested oxycodone, the boat capsized. The two crewmen were not wearing personal floatation devices or survival suits. The No Limits’ Emergency Position Indicating Radio Beacon alerted at about 1:20 p.m. The Coast Guard rescued Hutchinson at about 4 p.m. At the time, he was wearing shorts and a t-shirt. The Coast Guard located the bow of the No Limits at about 5 p.m., with no signs of life. The bodies of the two crewmen have never been found and are presumed dead.
In pronouncing sentence, Judge Hornby said: “The case was a heartbreaking tragedy. Two young men lost their lives. One of those leaves a young son who is now fatherless. Many parents are grieving.”
“This case is a terrible tragedy,” said U.S. Attorney Frank. “In the cases of the victim’s families, there is nothing worse for parents than the death of their child. The defendant was the captain of the boat and was responsible for the safety of his crew. Rather than live up to his responsibility, he engaged in risky, reckless behavior that cost the lives of two young men. While nothing can replace those young men, hopefully, this case will send a clear message that captains will be held accountable for such losses.”
The investigation was conducted by the U.S. Coast Guard.
Convicted Felon Who Used a Shotgun to Steal Money Outside a Casino Sentenced to Eight Years in Federal PrisonRead the Press Release
A man who illegally possessed a shotgun that he used to steal money was sentenced on February 13, 2019, to eight years in federal prison.
Harold Amos, age 40, from Coos Bay, Oregon, received the prison term after an August 9, 2018 guilty plea to being a prohibited person in possession of a firearm and ammunition.
In March 2018, Amos was at the Meskwaki Bingo Casino Hotel in Tama, Iowa. Video cameras captured him becoming very angry while in a discussion with other individuals. Amos left the casino and went to his car. One of the other individuals also went outside. Amos then got a shotgun from the car and pointed it at the other individual. While armed with the shotgun, Amos stole cash from this individual. Police later located Amos driving this same car and recovered the shotgun in the truck. The shotgun was loaded.
Amos had previously been convicted of a misdemeanor crime of domestic violence and a felony for manufacturing methamphetamine.
Amos was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Amos was sentenced to 96 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.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Amos 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 Lisa C. Williams and investigated by the Meskwaki Nation Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0025.
Follow us on Twitter @USAO_NDIA.
Convicted Felon Who Kept a Rifle Next to Drugs He Planned to Sell Sentenced to over Two Years in PrisonRead the Press Release
A Lisbon man who kept a rifle next to methamphetamine and marijuana he planned to sell was sentenced today to more than two years in federal prison.
Kevin Seeman, age 51, from Lisbon, Iowa, received the prison term after a November 8, 2018 guilty plea to being a felon in possession of a firearm. Seeman possessed a rifle, which he stored in an outbuilding near marijuana and methamphetamine that he planned to sell. Evidence at sentencing also showed that, just two weeks prior to the sentencing hearing, officers conducted a traffic stop of Seeman’s vehicle in Cedar Rapids, smelled marijuana coming from the vehicle, and found marijuana and methamphetamine on one of the passengers.
Seeman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Seeman was sentenced to 27 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.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Seeman was released on the bond previously set and is to surrender to the United States Marshall’s Service on February 28, 2019.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Lisbon Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-00101-CJW.
Follow us on Twitter @USAO_NDIA.
Convicted Felon Found Guilty of Illegally Possessing Two Firearms in DuPage CountyRead the Press Release
CHICAGO — A convicted felon has been found guilty of illegally possessing an assault rifle and a loaded handgun in DuPage County.
CAMERON BATTISTE, 36, possessed the guns in April 2017 at an apartment complex in Willowbrook. At the time of his arrest on April 7, 2017, the handgun was loaded with six live rounds. Battiste had previously been convicted of a felony and was not legally allowed to possess a firearm.
A federal jury in Chicago on Wednesday convicted Battiste on one count of illegal possession of a firearm by a felon. The conviction is punishable by up to ten years in prison. U.S. District Judge Matthew F. Kennelly set sentencing for May 9, 2019, at 1:30 p.m.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Cook County Sheriff’s Police Department and the Bolingbrook Police Department. The government is represented by Assistant U.S. Attorneys Ankur Srivastava, William Dunne and Saurish Appleby-Bhattacharjee.
Evidence at the three-day trial revealed that the two firearms had been stolen from a cargo train that passed through Chicago on Sept. 18, 2016. Another convicted felon, co-defendant IESHA STANCIEL, 39, of Willowbrook, was arrested at the same time as Battiste for illegally possessing the same two firearms. Stanciel pleaded guilty prior to trial and was sentenced last month to six years in federal prison.
During Stanciel’s sentencing hearing, the government presented evidence that Stanciel threatened an individual who was cooperating with law enforcement. In November 2016, Stanciel posted intimidating messages on the cooperating individual’s Facebook page. One of the posts contained several emojis of a handgun and referred to the individual as a “snitch.”
Columbia, Tennessee Man Facing Federal Firearms Charges After Shooting at Police OfficersRead the Press Release
NASHVILLE, Tenn. – February 14, 2019 – Jamal J. Gardner, 47, of Columbia, Tennessee, was charged today in a criminal complaint with being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
“As I have said many times, when a law enforcement officer in this district is assaulted, we will bring federal charges whenever possible,” said U.S. Attorney Cochran. “This was an extremely violent encounter and we are grateful that lives were not lost. We will hold this defendant accountable for his actions.”
According to the criminal complaint, a Columbia Police Officer initiated a traffic stop of a vehicle matching the description of a report of a reckless driver. As the officer approached the vehicle, he observed the driver holding a rifle and the driver immediately began firing at the officer. As the officer took cover and returned fire, the driver, later identified as Jamal Gardner, fled into a nearby residence and continued firing at responding officers. Gardner fired approximately 80 rounds, from at least four firearms, before escaping from the house.
On February 8, 2019, Gardner surrendered to police in Detroit, Michigan and is awaiting transfer to the Middle District of Tennessee.
If convicted, Gardner faces a minimum sentence of 15 years and up to life in prison.
This case was investigated by the Columbia Police Department; the 22nd Judicial District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Thomas J. Jaworski is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Chicopee Man Sentenced for Selling HeroinRead the Press Release
BOSTON - A Chicopee man was sentenced today in federal court in Springfield for distributing heroin.
Steven Brown, 28, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served (three months) in prison and six years of supervised release. In October 2018, Brown pleaded guilty to one count of distribution and possession with intent to distribute heroin.
"In the midst of an opioid epidemic killing thousands of people a year, we are disappointed that the court gave a convicted, repeat [heroin] trafficker time served instead of the 15 years sought by the government," said U.S. Attorney Andrew E. Lelling.
On June 30, 2016, Brown sold 300 bags of heroin to a cooperating witness. Brown has previously been convicted in state court of drug distribution offenses six times between 2008 and 2013, and he was facing state drug charges at the time of this offense.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
California Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Loren Glen Warner, 29, of Fresno, CA, who was convicted of production of child pornography, was sentenced to serve 20 years in prison and 15 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in early January, 2017, the defendant met the 14 year-old victim at her family’s church in Cattaraugus County, NY, and the two began communicating via Facebook and Snapchat. During those communications, Warner, who knew the victim was 14 years-old, began making sexual references and statements, and sent sexually explicit images of himself to the victim. The defendant also asked for and received nude photographs of the victim.
Warner also met a 13 year-old victim at a church in Fresno, California. Over several years, the defendant requested and received child pornography images and videos from that victim as well.
In March 2017, the defendant pleaded guilty to Rape in the Second Degree, and Endangering the Welfare of a Minor in Cattaraugus County Court and was sentenced to seven years in prison.
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Edward Kennedy; and the Cattaraugus County District Attorney’s Office, under the direction of Lori Rieman.
# # # #
Burnsville Man Pleads Guilty to Violent KidnappingRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of DONTAY LAVARICE REESE, 37, for kidnapping. REESE entered his guilty plea yesterday afternoon before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in the early morning hours of August 6, 2017, REESE met the victim, T.M., in downtown Minneapolis. REESE offered T.M. a ride home; however, instead of driving her home, he drove in the wrong direction into Wisconsin. The defendant told the victim that he was going to take her “several states away” and use her to make money as a prostitute. The victim attempted to escape multiple times - each time she was captured and violently restrained by REESE. A family witnessed one of the escape attempts and called 911.
After the 911 call, Wisconsin State Patrol found the victim running out of a wooded area, with her wrists bound together, and screaming for help. REESE came out of the same wooded area shortly after, fully naked and attempted to cross the interstate on foot. He was taken into custody.
“The victim endured a terrifying experience, and has shown incredible courage throughout this process. Because of her courage a violent offender is no longer in our community,” said United States Attorney Erica H. MacDonald.
"Thoughts today are with the victim in this case who courageously helped put her assailant in prison for many years,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI. “Thanks to the victim and diligent work of law enforcement from Minnesota and Wisconsin working with the FBI, justice was served and Mr. Reese was held accountable for his actions."
Sentencing has been scheduled for June 4, 2019, at 9:00 am in U.S. District Court in Minneapolis.
This case is the result of an investigation conducted by the FBI, Wisconsin State Patrol, Jackson County (Wisconsin) Sheriff’s Department, Eau Claire County (Wisconsin) Sheriff’s Department, and Minneapolis Police Department.
Assistant U.S Attorneys Angela Munoz-Kaphing and John Docherty are prosecuting the case.
Defendant Information:
DONTAY LAVARICE REESE, 37
Burnsville, Minnesota
Convicted:
- Kidnapping, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brooklyn Park Tax Preparer Known as “Papa Eric” Charged with Tax FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ERIC WILLOR, 69, with 15 counts of aiding and assisting in the preparation of a false tax return. WILLOR will make his initial appearance in United States District Court at a later date.
According to the indictment, WILLOR, also known as “Papa Eric,” ran a tax preparation business called Willor’s Tax Preparation and Planning out of his home in Brooklyn Park, Minnesota. WILLOR regularly prepared and filed tax returns using false and fraudulent itemized deductions in order to fraudulently obtain large tax refunds to which his clients were not entitled. Specifically, WILLOR regularly prepared and filed returns falsely claiming that his clients had significant tax-deductible charitable contributions, medical expenses, and educational expenses. In reality, WILLOR knew that these claimed deductions were fraudulent. Between 2012 and 2017, WILLOR prepared and filed approximately 100 fraudulent tax returns that fraudulently claimed a total of approximately $316,000 in tax refunds to which his clients were not entitled.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division.
This case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
Defendant Information:
ERIC WILLOR, 69
Brooklyn Park, Minn.
Charges:
- Aiding and assisting in the preparation of a false tax return, 15 counts
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bronx Man Pleads Guilty to Heroin ChargeRead the Press Release
ALBANY, NEW YORK – Ronny Mota, age 29, of Bronx, New York, pled guilty today to conspiring to distribute more than 100 grams of heroin.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Raymond P. Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
Mota admitted that on December 5, 2018, he drove from New York City to Albany County, New York, for the purpose of selling approximately 130 grams of heroin to another individual. The DEA arrested Mota and a co-conspirator in a motel parking lot in Colonie before they could meet with the buyer. Agents found the bag of heroin in a coffee cup next to the driver’s seat.
Mota faces at least 5 years and up to 40 years in prison, and at least 4 years of post-imprisonment supervised release, when he is sentenced by United States District Judge Mae A. D’Agostino on June 14, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, which includes investigators from the Schenectady Police Department, Troy Police Department and New York State Police. The Schenectady County Sheriff’s Office also assisted in the investigation. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Bookkeeper Pleads Guilty to Failing to Declare More Than $700,000 in Stolen Money on Tax Return. Admits to Stealing over Five Million from New Orleans Law Firm and Real Estate CompanyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that PEGGY NAGELE, age 65 of Thibodeaux, Louisiana pleaded guilty January 24, 2019 to a one count bill of information, charging her with violating Title 26, United States Code, Section 7206, making false statements on an income tax return.
The bill of information, filed in November 2018, charged NAGELE with failing to declare on her 2011 Federal tax form 1040 more than $727,847.80 in funds she had stolen. NAGELE was employed as a bookkeeper with Law Firm A, a New Orleans law firm. In documents filed in open court in connection with her guilty plea. NAGELE admitted to theft of $5,083,601 from Firm “A” and Business “A”, a real estate management company. She admitted to failing to declare $727,847 in illicit income on her 2011 federal income tax return, as charged in the Bill of Information.
NAGELE further admitted to having unfettered access to both entities checkbooks and financial assets. She wrote checks to herself from operating accounts at Firm “A”. She disguised her thefts by making the checks payable to routine vendors, or simply did not record the checks in the check register. The checks were then deposited into either Mortgage Lending Group, a business NAGELE and her family controlled or Nagele Corporation, another business controlled by the defendant.
The maximum penalty NAGELE faces is 3 years incarceration, a $250,000 fine, the cost of the investigation, as well as restitution to the IRS. NAGELE is set for sentencing May 2, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service Criminal Investigation Division for their thorough investigation. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
Bay Area Couple Indicted for Allegedly Stealing Mail Containing Credit Cards and Drivers LicensesRead the Press Release
SAN FRANCISCO – Tyler Goforth and Jesslyn Felix were indicted on charges they engaged in a scheme to steal the mail from a San Francisco condominium, announced United States Attorney David L. Anderson and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The indictment was filed January 15, 2019, and unsealed today.
According to the indictment, from August of 2017 to February of 2018, Goforth and Felix, both 35 and residing in Walnut Creek, entered a 600-condominium apartment complex in San Francisco to steal the residents’ mail. The defendants allegedly used an electronic key fob to enter the complex and then used a tool to unlock and open the door to the residents’ mailboxes. The defendants then activated credit cards, debit cards, and gift cards that they stole from the mailboxes to make purchases for their own benefit.
The indictment describes a number of purchases made with the stolen credit, debit, and gift cards. For example, the indictment alleges that between December 12, 2017 and January 9, 2018, over $800 was used to make purchases at the Sheraton Sonoma County Hotel and another $700 was used to make purchases at CVS pharmacies and Target stores. Further, the indictment alleges on February 15, 2018, the defendants were in possession of more than five authentic drivers licenses that were not issued for their use.
In sum, each defendant is charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; five counts of wire fraud, in violation of 1343; six counts of theft of mail, in violation of 18 U.S.C. § 1708; one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and one count of possession with intent to use or transfer five or more documents or authentication features, in violation of 18 U.S.C. § 1028(a)(3).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years in prison and $250,000 on each fraud and conspiracy count, 5 years in prison and $250,000 on each mail theft count; 5 years in prison on the false document count, and a mandatory 2 years in prison if convicted of the aggravated identity theft count. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Goforth made his initial appearance this morning before U.S. Magistrate Judge Beeler. His next scheduled appearance is scheduled for February 28, 2019, before Magistrate Judge Beeler for a detention hearing. Felix currently is in state custody on unrelated charges; her initial appearance has not yet been scheduled.
Assistant U.S. Attorney Ross Weingarten is prosecuting this case with the assistance of Marina Ponomarchuk. This prosecution is the result of an investigation by the U.S. Postal Inspection Service.
Baton Rouge Doctor and His Medical Billing Supervisor Plead Guilty to Fraudulent Billing SchemeRead the Press Release
A Baton Rouge, Louisiana-based doctor pleaded guilty yesterday and his medical billing supervisor pleaded guilty today for their roles in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark M.D., 66, of Baton Rouge, pleaded guilty on Feb. 13 to count one of an indictment charging him with conspiracy to commit health care fraud. His sentencing has not been scheduled yet by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who accepted his plea. Charlene Anita Severio 56, of Walker, Louisiana, pleaded guilty today to one count of an indictment charging her with conspiracy to commit health care fraud and wire fraud and two counts of the indictment charging health care fraud. Her sentencing has not been scheduled yet by Judge Dick, who accepted her plea.
“For nearly a decade, John Eastham Clark and Charlene Anita Severio submitted fraudulent claims to Medicare and other health insurers for payments they were not entitled to receive,” said Assistant Attorney General Benczkowski. “These guilty pleas should serve as a warning to unscrupulous doctors and other medical professionals: the Criminal Division’s Medicare Fraud Strike Force and our law enforcement partners will aggressively investigate and prosecute illegal billing practices and other fraudulent schemes that steal taxpayer dollars and increase healthcare program costs for all Americans.”
“In defrauding the Medicare system, Dr. Clark violated a sacred oath taken by physicians but above all he violated the law,” said U.S. Attorney Fremin. “Ms. Severio, an employee of Dr. Clark, submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme. We will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system. I want to thank the Department of Justice’s Criminal Division, Fraud Section, the FBI, Health and Human Services - Office of Inspector General and the dedicated attorneys and staff from our office for their outstanding efforts in this case.”
“Today’s guilty pleas clearly illustrate that, along with our law enforcement partners, we will aggressively pursue criminal charges against bad actors in the Medicare program,” said HHS-OIG Special Agent in Charge Porter. “Those intent on robbing patients with legitimate medical needs of access to taxpayer funds earmarked for their health care, will ultimately pay a heavy price.”
“Agents of the Federal Bureau of Investigation remain dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation,” said FBI Special Agent in Charge Porter. “This was a case that spanned multiple years and has resulted in numerous convictions. It highlights the cooperation between the FBI and the Health and Human Services - Office of the Inspector General.”
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to plea documents, the charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. Specifically, as part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Severio, and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
Severio was a billing supervisor at Louisiana Spine & Sports, and worked for Clark. According to admissions made as part of her guilty plea, from approximately June 2005 through March 2015, Severio conspired with Clark to submit fraudulent claims to Medicare and other health care insurers. Specifically, Severio admitted that she knowingly and willfully submitted fraudulent claims indicating that minor surgical procedures performed by Clark occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Severio admitted that this practice was done to defraud health care insurers.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow M.D., a co-owner of Louisiana Spine & Sports, pleaded guilty to a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on March 1. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on April 16.
The case was investigated by HHS-OIG and the FBI. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Baton Rouge Doctor and His Medical Billing Supervisor Plead Guilty to Fraudulent Billing SchemeRead the Press Release
WASHINGTON – A Baton Rouge, Louisiana-based doctor pleaded guilty yesterday and his medical billing supervisor pleaded guilty today for their roles in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark M.D., 66, of Baton Rouge, pleaded guilty on Feb. 13 to count one of an indictment charging him with conspiracy to commit health care fraud. His sentencing has not been scheduled yet by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who accepted his plea. Charlene Anita Severio 56, of Walker, Louisiana, pleaded guilty today to one count of an indictment charging her with conspiracy to commit health care fraud and wire fraud and two counts of the indictment charging health care fraud. Her sentencing has not been scheduled yet by Judge Dick, who accepted her plea.
“For nearly a decade, John Eastham Clark and Charlene Anita Severio submitted fraudulent claims to Medicare and other health insurers for payments they were not entitled to receive,” said Assistant Attorney General Benczkowski. “These guilty pleas should serve as a warning to unscrupulous doctors and other medical professionals: the Criminal Division’s Medicare Fraud Strike Force and our law enforcement partners will aggressively investigate and prosecute illegal billing practices and other fraudulent schemes that steal taxpayer dollars and increase healthcare program costs for all Americans.”
“In defrauding the Medicare system, Dr. Clark violated a sacred oath taken by physicians but above all he violated the law,” said U.S. Attorney Fremin. “Ms. Severio, an employee of Dr. Clark, submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme. We will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system. I want to thank the Department of Justice’s Criminal Division, Fraud Section, the FBI, Health and Human Services - Office of Inspector General and the dedicated attorneys and staff from our office for their outstanding efforts in this case.”
“Today’s guilty pleas clearly illustrate that, along with our law enforcement partners, we will aggressively pursue criminal charges against bad actors in the Medicare program,” said HHS-OIG Special Agent in Charge Porter. “Those intent on robbing patients with legitimate medical needs of access to taxpayer funds earmarked for their health care, will ultimately pay a heavy price.”
“Agents of the Federal Bureau of Investigation remain dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation,” said FBI Special Agent in Charge Rommal. “This was a case that spanned multiple years and has resulted in numerous convictions. It highlights the cooperation between the FBI and the Health and Human Services - Office of the Inspector General.”
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to plea documents, the charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. Specifically, as part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Severio, and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
Severio was a billing supervisor at Louisiana Spine & Sports, and worked for Clark. According to admissions made as part of her guilty plea, from approximately June 2005 through March 2015, Severio conspired with Clark to submit fraudulent claims to Medicare and other health care insurers. Specifically, Severio admitted that she knowingly and willfully submitted fraudulent claims indicating that minor surgical procedures performed by Clark occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Severio admitted that this practice was done to defraud health care insurers.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow M.D., a co-owner of Louisiana Spine & Sports, pleaded guilty to a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on March 1. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on April 16.
The case was investigated by HHS-OIG and the FBI. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Bank Officer Sentenced for FraudRead the Press Release
OXFORD, Miss. – A former bank officer has been sentenced to two years in prison for embezzling funds from Southern Bancorp Bank. Michael J. Erickson, age 42, of Ridgeland, Mississippi, was sentenced by U.S. District Judge Glen H. Davidson on Thursday to serve 24 months imprisonment followed by 3 years of supervised release. In addition, Erickson was ordered to pay $1,462,030.31 in restitution to Southern Bancorp Bank. United States Attorney William C. Lamar, Christopher Freeze, Special Agent in Charge at the Federal Bureau of Investigation, and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP) made the announcement following the sentencing.
Previously, on October 9, 2018, Erickson pled guilty to a one count Information charging him with Embezzlement by a Bank Officer in violation of Title 18, United States Code, Section 656. The conduct in question occurred while Erickson was employed as an officer at Southern Bancorp Bank in Clarksdale, Mississippi. In August 2010, the United States Treasury Department invested $33,800,000 in the holding company of Southern Bancorp Bank through the Community Development Capital Initiative. As a part of his plea, Erickson admitted to using his position as a bank officer to embezzle bank funds for his own benefit and generate fraudulent loans for the benefit of himself and others.
Following the sentencing in Oxford, Mississippi, U.S. Attorney William C. Lamar remarked, “As evidenced by the sentencing today, we will vigorously prosecute those bank employees who betray the public trust by embezzling or stealing from our financial institutions.”
“Embezzlement at any level weakens our economic stability and undermines our financial institutions as a whole,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “We will maintain our strong relationship with the United States Attorney’s Office and partner with law enforcement agencies to ensure these types of criminals are fully investigated and prosecuted across Mississippi.”
“Former bank officer Michael Erickson was sentenced to 24 months in federal prison for criminally defrauding Southern Bancorp, after the bank received a nearly $34 million TARP bailout,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Instead of acting in the public trust, Erickson used his position at Southern Bancorp to steal thousands of dollars for his own personal enrichment from a commercial loan he managed. I thank the United States Attorney’s Office for Northern District of Mississippi for bringing justice in this case.”
This case was jointly investigated by the FBI and the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The case was prosecuted by AUSA Clay Dabbs.
Ballantine man sentenced for two attempted bank burglariesRead the Press Release
BILLINGS—A federal judge on Wednesday sentenced a Ballantine man who admitted trying to break into two banks to two years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Anthony William Felton, 27, pleaded guilty in October to bank burglary.
U.S. District Judge Susan P. Watters presided. Judge Watters will set a hearing to determine restitution.
Prosecutors said the evidence would show that Felton broke into the Beartooth Bank in Billings on Oct. 24, 2017 and tried to break into the ATM machine using a grinder and other tools. He fled before officers responded to the alarm. Officers found a grinder, pocket knife and an extension cord near the ATM. Security footage captured the attempt but was inconclusive about the identity of the suspect, who appeared to avoid the cameras.
A second bank burglary occurred on Dec. 6, 2017 when Felton broke into the Stockman Bank in Worden by breaking an interior door. Felton used an angle grinder to try to access cash in an ATM. He was unsuccessful but caused about $12,000 in damages.
Law enforcement arrested Felton on Dec. 14, 2017 after he was suspected of multiple robberies in the area. A search of his backpack yielded a bandana, a pry bar and bolt cutter. During search of a vehicle Felton was using, officers found a concrete saw that appeared to be the same saw used in the bank burglaries. Felton admitted to law enforcement he attempted to rob both banks.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Allentown Man Charged with Aggravated Identity Theft and FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Jose Anico 69, of Allentown, PA was indicted by a federal grand jury and charged with one count of false statements in connection with an application for a passport, one count of aggravated identity theft, five counts of wire fraud, and four counts of health care fraud.
The indictment charges the defendant with acquiring the identifying information of a United States Citizen who was a resident of New York City and who died on August 13, 1999. Anico used the victim’s name, date of birth, and Social Security number for various purposes, including applying for and receiving Social Security Administration benefits, Medicare benefits, a Pennsylvania driver’s license, and a United States passport.
From May 2002 through November 2018, Anico received more than $475,000 in government benefits that he was not entitled to receive under his assumed name.
“Aggravated identity theft and fraud are serious crimes,” said U.S. Attorney McSwain. “My Office is committed to making sure that the personal identifying information of our citizens is protected and not stolen or abused. We are also committed to ensuring that no one steals money or services from the federal government.”
Robert Castro, Resident Agent In Charge of the DSS Philadelphia Resident Office said, “Today’s indictment demonstrates how our presence at more than 275 diplomatic missions worldwide positions us well to target passport fraud and other related crimes with a transnational nexus.”
If convicted, Anico faces a maximum penalty 152 years’ imprisonment, three years of supervised release, forfeiture and restitution, a $2,750,000 fine, and a $1,100 special assessment.
The case was investigated by the U.S. Department of State’s Diplomatic Security Service (DSS) Philadelphia Resident Office in partnership with the DSS Regional Security Office in Santo Domingo, the Social Security Administration, the U.S. Department of Health and Human Services, and the U.S. Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Everett Witherell.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
13 February 2019
Worcester Woman Pleads Guilty to Role in Two Methamphetamine ConspiraciesRead the Press Release
BOSTON – A Worcester woman pleaded guilty today in federal court in Worcester to methamphetamine charges.
Mindy Doherty, 35, pleaded guilty to two counts of methamphetamine conspiracy. U.S. District Judge Timothy S. Hillman scheduled sentencing for May 20, 2019.
In 2016, Doherty accepted packages of methamphetamine at her Worcester residence and wired money to an individual in California who was involved in the scheme. Doherty also shipped methamphetamine to Brian Zukowski, a co-conspirator who was in Florida, via Federal Express and U.S. Postal Service Priority Mail. Doherty sold methamphetamine to various individuals in Massachusetts and wired a portion of the proceeds to Zukowski or deposited proceeds into Zukowski’s bank account.
As part of a separate conspiracy, Doherty accepted packages of methamphetamine at her Worcester residence on behalf of another co-conspirator, Adam Germano, and subsequently provided a portion of this methamphetamine to Germano. Doherty traveled with Germano to Texas to acquire methamphetamine, and she carried thousands of dollars of cash on the flight. Doherty also wired money to Germano to be used for the acquisition of methamphetamine in Texas and Nevada. Even after Germano was arrested in March 2017, Doherty continued to distribute methamphetamine in and around Worcester.
Germano and Zukowski have pleaded guilty to methamphetamine-related charges. In November 2018, Zukowski was sentenced to 28 months in prison. Germano is scheduled to be sentenced tomorrow.
Doherty faces a mandatory five years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division is prosecuting the case.
Winter Park Man Charged with over $8 Million in FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Bryan L. Brewer (43, Winter Park) with six counts of wire fraud, four counts of bank fraud, and four counts of money laundering. If convicted, Brewer faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 30 years’ imprisonment for each bank fraud count, and up to 10 years in prison for each money laundering count.
According to the indictment and information presented in court, Brewer engaged in two fraudulent schemes totaling more than $8 million. In one scheme, Brewer solicited an individual to invest in a company that manufactured paddleboards by the name of USBoardco (also known as WatersEdge). As part of the scheme, Brewer sent the victim copies of bank statements, tax returns, and other financial documents that had been falsified to inflate the sales, profits, income, and bank account balance for the company. In reliance upon those and other misrepresentations, the victim invested over $1 million.
The second scheme involved real estate located in Seminole County, wherein an individual loaned over $4 million to assist Brewer in the purchase of the property in 2012. In return, that individual obtained a mortgage on the property. Brewer later requested a bank to lend money to one of his companies, with the understanding that it would be secured by a mortgage on the same property that was already mortgaged. To induce the bank to make the loan, Brewer set up a false email account for the individual, who had loaned the money in 2012, which was then used to send the bank a forged letter falsely promising that the individual would release his mortgage for $3.5 million. Relying upon that letter and other misrepresentations, the bank loaned one of Brewer’s companies more than $7 million.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Web Page Available to Assist Potential Victims of Fraud Related to the Sale of Purportedly Organic Grain in Cases Involving Randy Constant, Tom Brennan, James Brennan, and Mike PotterRead the Press Release
The United States Attorney’s Office for the Northern District of Iowa has established a link on its website and a dedicated telephone line to provide case updates and other information, including assistance in submitting victim impact statements or claims for restitution, for potential victims in the cases involving defendants Randy Constant, Tom Brennan, James Brennan, and Mike Potter and those who purchased organic grain or other products produced with organic grain that was sold through Jericho Solutions between 2010 and 2017.
Under the Crime Victims Rights Act victims of federal crimes have several rights, including: to be notified of certain Court proceedings; to be reasonably heard by the Court; and to submit claims for restitution. Through the website, potential victims will be provided timely and accurate information about the criminal cases and their rights under the law.
Potential victims can view the Victim Witness Assistance link on the United States Attorney’s website to receive updated case information. The website provides victims with information about their statutory rights and includes links to court documents in the case. The website also contains a link to a victim impact statement, through which persons claiming to have been victims of one of the referenced cases can submit a statement to the Court and/or make a claim for restitution. The website may be found at: http://www.justice.gov/usao-ndia/victim-witness-assistance/information-victims-large-cases.
Washington, D.C. Woman Pleads Guilty to Murder in Furtherance of a Conspiracy to Distribute Synthetic Cannabinoids and other Controlled Substances, and to the Drug Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – Carjandario Danielle Yarborough, age 35, of Washington, D.C, pleaded guilty today to conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues, and to murder in furtherance of the conspiracy. She and federal prosecutors also agreed to recommend to the judge that he impose a sentence of 20 years in prison.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Peter Newsham of the Metropolitan Police Department; and Prince George’s County State’s Attorney Aisha N. Braveboy.
According to her plea agreement, from at least January 1, 2016 through February 9, 2019, Carjandario Danielle Yarborough conspired with others to distribute synthetic cannabinoids, and other controlled substances and controlled substance analogues. Controlled substance analogues are substances that are chemically manufactured to mimic, and create a “high” similar to other drugs. Yarborough and her co-conspirators obtained synthetic cannabinoids, known by various names, including “Salt,” and sold them in Maryland and other locations, including the District of Columbia and Virginia. Yarborough and her co-conspirators obtained cash from the drug sales and possessed firearms in furtherance of the conspiracy. Yarborough and her co-conspirators routinely rented hotel rooms and vehicles to distribute the synthetic cannabinoids.
On September 29 and September 30, 2016, Yarborough and co-conspirator 1, (“CC-1”) rented hotel rooms in Temple Hills, Maryland, to prepare and distribute synthetic cannabinoids. While at the hotel, Yarborough and CC-1 believed that another co-conspirator, Victim 1, had stolen money from them in connection with the sale of synthetic cannabinoids. When CC-1 confronted Victim 1 about the suspected theft, Yarborough stabbed Victim 1 in the chest with a knife, killing him.
After Victim 1 was killed, CC-1 and another co-conspirator removed synthetic cannabinoids and drug proceeds from the hotel room. After the co-conspirators left the hotel room where Victim 1 had been killed, Yarborough called 911 and falsely reported that she had killed Victim 1 in self-defense.
On January 30, 2018, Yarborough and CC-1 sold synthetic cannabinoids to a law enforcement officer. On February 9, 2018, law enforcement executed a search warrant at the residence where Yarborough and CC-1 lived. Law enforcement recovered synthetic cannabinoids intended for distribution, a 9mm pistol, a 25-caliber pistol, and $1,640.79 in cash, which was generated from the sale of synthetic cannabinoids.
Yarborough and the government have agreed that 20 years in prison is the appropriate disposition of this case and will recommend that sentence to the Court. U.S. District Judge Theodore C. Chuang has scheduled sentencing for June 18, 2019 at 9:30.m.
United States Attorney Robert K. Hur commended the ATF, the DEA, the Prince George’s County Police Department, the Metropolitan Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and recognized U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore and the Arlington County Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys William D. Moomau and Gregory D. Bernstein, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
# # #
Vineland Boys Street Gang Targeted in Federal Racketeering Indictment that Alleges Violence, Extortion and Narcotics TraffickingRead the Press Release
LOS ANGELES – Law enforcement authorities this morning arrested 25 members and associates of the San Fernando Valley-based Vineland Boys street gang who are charged in five federal grand jury indictments that allege a wide range of criminal activity, including shootings and assaults that targeted rivals, extortion and methamphetamine trafficking.
The five indictments charge a total of 45 defendants. The main indictment alleges that 31 Vineland Boys members and associates participated in a criminal enterprise and conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. To consolidate control over their “territory” in Sun Valley, North Hollywood and Burbank, the gang shot and brutally assaulted rival gang members, controlled and conducted drug and firearms trafficking activity, and extorted money in the form of “taxes” from drug dealers, and trafficked narcotics, the indictment alleges.
The RICO indictment details numerous violent incidents involving the gang, including an April 2016 incident where a rival gang member was shot on Lankershim Boulevard. The investigation revealed that the gang was heavily armed and often engaged in illegal firearm sales. One non-gang defendant allegedly manufactured “ghost guns” – AR-15-type weapons with no serial numbers, which makes them untraceable – that were sold to the gang to use in crimes because so many members were prohibited from legally purchasing firearms due their prior felony convictions.
The RICO indictment unsealed today detail multiple narcotics transactions, including two that each involve approximately two pounds of methamphetamine.
The other four indictments cumulatively charge 14 other defendants with supplying methamphetamine to the Vineland Boys, with some transactions taking place near an elementary school.
Today’s arrests come 14 years after law enforcement severely disrupted the Vineland Boys with a series of federal indictments that came in the wake of the 2003 murder of Burbank Police Officer Matthew Pavelka and the attempted murder of his partner, Detective Greg Campbell. Those indictments resulted in more than four dozen convictions, and led to two defendants receiving sentences of life without parole in federal prison.
“Our first attack on this street gang dealt a punishing blow to its operations and sent a message that law enforcement would not tolerate their violent acts and drug trafficking,” said United States Attorney Nick Hanna. “Unfortunately, a new generation of gangsters has come of age and tried to revive the organization’s control of drug trafficking through violence. This takedown will provide significant relief to the law-abiding residents of the east San Fernando Valley, and it sends a strong message to the gang that we will continue our efforts to crush their organization until they no longer pose any threat.”
“The tools of the gang trade are intimidation, violent crime and extortion,” said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “By announcing these distinct operations with our law enforcement partners, we hope to show that these tactics – and these gangs – are not tolerated in Los Angeles.”
“The Los Angeles Police Department is extremely grateful for the culmination of a collaborative task force with our federal partners that led to a well-planned, comprehensive and strategic operation,” said LAPD Assistant Chief Robert Arcos. “Today’s arrests focused on individuals who not only committed extremely violent crimes, but who also have been involved in violent attacks against innocent people in our communities. The Los Angeles Police Department stands committed, with our federal partners, to continue to reduce violent crime in Los Angeles, and to interrupt organizations and apprehend those responsible.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The 25 defendants arrested today are scheduled to make their initial court appearances this afternoon in United States District Court.
In addition to the today’s arrests, 11 defendants were already in custody. Authorities are continuing to search for nine fugitives, four of whom are believed to be currently in Mexico.
The investigation targeting the Vineland Boys was conducted by the Federal Bureau of Investigation, the Los Angeles Police Department and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Jennifer Chou of the Violent and Organized Crime Section.
Versailles Man Convicted of Possessing Sexually Explicit Images of ChildrenRead the Press Release
LEXINGTON, Ky. – A Versailles, Kentucky man was convicted today, by a federal jury sitting in Lexington, of possessing sexually explicit photos of children.
After a brief deliberation following a two-day trial, the jury convicted 54-year-old Scott W. Sulik of one count of knowing possession of sexually explicit images of prepubescent minors.
According to the evidence presented at trial, Sulik was living in Versailles on January 10, 2018, when representatives of law enforcement searched his home for evidence relating to threatening emails that Sulik had sent to a United States Congressman. An examination of the evidence found during that search revealed that Sulik had downloaded and saved sexually explicit photos of children on a laptop and smartphone.
Sulik previously pleaded guilty to one count of cyberstalking, arising from the threats he had emailed to the Congressman. He is currently serving a 48-month term of imprisonment on that charge.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Matthew R. Verderosa, Chief of the United States Capitol Police, jointly announced the verdict. The investigation was conducted by the United States Capitol Police. The United States was represented by Assistant United States Attorney Andrew T. Boone.
Sulik will appear for sentencing on May 24, 2019. He faces a maximum of 20 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
Undocumented Alien Sent to Prison for Illegally Entering the United StatesRead the Press Release
CORPUS CHRISTI, Texas - A 38-year-old Mexican national has been sentenced to federal prison following his conviction of illegal re-entry into the United States after deportation, announced U.S. Attorney Ryan K. Patrick. Isidro Rodriguez-Toscano pleaded guilty Oct. 23, 2018.
“We must have secure borders,” said Patrick. “Foreign nationals previously deported or that have a criminal history are not permitted entry into our country. We have been and will continue to be a leader in prosecuting these types of cases and thank our hard-working law enforcement partners who bring illegal re-entry cases to us for prosecution.
At the hearing today, U.S. District Judge Hilda G. Tagle ordered Rodriguez-Toscano to prison for 46 months in federal prison. The court heard evidence of his convictions for aggravated robbery, felony theft and assault. He was also previously convicted for the same offense - illegal re-entry - in December 2009 and was sentenced to 70 months, later deported and not permitted to return to the United States.
However, in August 2018, A Texas Department of Public Safety (DPS) trooper had conducted a traffic stop for a defective taillight near Riviera. Rodriguez-Toscano was the driver of that vehicle and determined to be illegally present in the country.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and DPS conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Two More Opioid Dealers Sentenced for Their Roles in Elmira Drug Trafficking RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert J. Elford, 30, of Oneida, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of a fentanyl analogue, was sentenced to serve 121 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Judge Geraci sentenced Deven Hill, 25, of Elmira, NY, to serve 37 months in prison for his conviction on a charge of conspiracy to possess with intent to distribute, and to distribute, a fentanyl analogue.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that both defendants were part of a large-scale opioid manufacturing and trafficking organization that operated in the Southern Tier of New York between 2015 and May 2017. As members of the organization, Elford and Hill were street-level dealers of blue pills containing furanyl fentanyl in the Elmira area. The blue pills were manufactured by the leaders of the organization – Robert Ian Thatcher and Maximillian Sams – and made to look like legitimate 30 milligram Percocet pills.
Elford and Hill each admitted to selling pills to various customers, including a 25 year-old male who ultimately died of drug overdose from using the pills.
To date, 16 members and associates of the opioid manufacturing and trafficking operation have been convicted of federal narcotics offenses. Four defendants have been sentenced: Thatcher was sentenced to serve 23 years in federal prison; Thatcher’s girlfriend, Amber Bates, who was convicted of money laundering conspiracy, was sentenced to five years probation to include six months of home detention; Edward Barrett was sentenced to 90 months in prison; Dusty Pemberton was sentenced to 70 months in prison; and Isaiah McLaurin, who was convicted of witness tampering after threatening an individual working with the Drug Enforcement Administration on Facebook, was sentenced to serve 57 months in federal prison.
Today’s sentencings are the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, Community Narcotics Enforcement Team Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; the Elmira Police Department, under the direction of Chief Joseph Kane; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Pennsylvania State Police, under the direction of Acting Commissioner Lieutenant Colonel Robert Evanchick; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell; and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.# # # #
Two Individuals Sentenced for Hobbs Act Robbery That Resulted in MurderRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Judge Francisco A. Besosa sentenced Jonathan Valentin-Santiago to 34 years in prison and Rubén Miró-Cruz to 24 years and six months in prison for their participation in the Hobbs Act robbery that resulted in the murder of a Police of Puerto Rico officer, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On September 11, 2017, Jonathan Valentin-Santiago and Rubén Miró-Cruz approached Herol Café, also known as “La Tumba” in Ponce, PR, and announced a robbery to four men sitting outside the establishment. The co-defendants brandished a knife and a gun and they took money and jewelry from the four individuals and from the business while Cristian Serrano-Delgado, the third co-conspirator, waited outside by his car, a BMW.
Later, an adult male, an off duty Police of Puerto Rico officer, who was inside the establishment discharged his firearm at one of the defendants who returned fire and mortally wounded the police officer. After shots were fired, Serrano-Delgado drove his co-defendants away from the scene.
In December of 2018, after an eight-day jury trial, a jury found Cristian Serrano-Delgado guilty of Hobbs Act robbery and murder. His sentencing is scheduled for March 18, 2019. Serrano-Delgado faces a minimum of ten years up to life imprisonment. Valentin-Santiago had plead guilty on November 8, 2018 and Rubén Miró-Cruz had plead guilty on October 16, 2018.
“I hope that these sentencings will help the victim’s family find some closure,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to work diligently to prosecute violent criminals to the fullest extent of the law. Senseless acts of violence which threaten our communities and innocent victims will not be tolerated.”
Assistant U.S. Attorney Alexander Alum and Special AUSA Omar Barroso were in charge of the prosecution of this case. The FBI and the Puerto Rico Police Department were in charge of the investigation.
# # #
Two Individuals Arrested for Carjacking, Hobbs Act, and Firearms OffensesRead the Press Release
On February 7, a federal grand jury returned an 18-count indictment against two individuals for carjacking, kidnapping, interference with commerce by robbery (Hobbs Act), and possessing and brandishing a firearm in furtherance of a crime of violence, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
The indictment alleges that on January 21, in the District of Puerto Rico, Miguel Ángel Rivera-Rivera and Chris Joanny Goenaga-Ortiz, aiding and abetting each other, possessing and brandishing firearms, took a Ponce taxi, that is a red 2002 Toyota Corolla, from an adult male victim, a taxi driver, by force, violence, and intimidation, with the intent to cause death and serious bodily harm. The defendants kidnapped the victim and held him against his will for hours. On January 25, the same defendants robbed fast food restaurant Little Caesars in Bairoa Shopping Center in Caguas. The defendants were arrested by Puerto Rico Police officers in the carjacked taxi while fleeing from the Little Caesar’s robbery.
Defendant Miguel Ángel Rivera-Rivera is also charged with several robberies while carrying and brandishing a firearm, on the following dates: January 11, Burger King at Las Americas Avenue in Ponce; January 14, Burger King in Villalba; January 15, Chinese fast food restaurant Mr. Wu’s in Juana Diaz; January 16, Burger King in Juana Diaz and KFC-Kentucky Fried Chicken in La Rambla in Ponce; and January 18, Toral Gas Station in Calle Comercio, Ponce. Rivera-Rivera is also facing a charge for being a convicted felon in possession of a firearm.
The case is being prosecuted by Assistant United States Attorney Jenifer Y. Hernández-Vega. The FBI and Puerto Rico Police Department are in charge of the investigation. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
# # #
Turkish Man Faces Extradition for Attempted Murder ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Samet Cekic, 34, of Greece, NY, was arrested pursuant to a fugitive complaint filed by the United States Attorney Office, fulfilling obligations pursuant to an extradition treaty which exists between the United States and Turkey.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the proceedings, stated that, according to information provided by the Government of Turkey, Cekic was previously convicted of Attempted Intentional Killing under Turkish Law. That conviction stemmed from an incident which occurred on September 22, 2006, in the Province of Corum, District of Alaca, Turkey, during which defendant was alleged to have engaged in a fight during which he stabbed an individual multiple times with a knife, causing life-threatening injuries. On July 2, 2008, defendant was sentenced to serve five years and seven months in prison. However, he ultimately failed to appear to serve that sentence. The defendant was located Tuesday by the United States Marshals service as he left his residence in Greece. Pursuant to the Treaty, the Government of Turkey submitted a formal request through diplomatic channels for the extradition of Cekic, so that he may serve the previously imposed sentence.
Cekic’s arrest is the result of the efforts of the U.S. Marshals Service, under the direction of Marshal Charles Salina.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was detained.
Torrington Man Sentenced to Federal Prison for Illegally Manufacturing and Selling Machine GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SEAN DEY, 40, of Torrington, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by 12 months of home confinement and three years of supervised release, for illegally manufacturing and selling machine guns.
According to court documents and statements made in court, between July 2017 and April 2018, Dey manufactured machine guns, including AK-47-style and AR-style machine guns, suppressors, and other firearms. Dey entered into an agreement with George Jaiman, of Bridgeport, to sell machine guns, suppressors and firearms to third parties for profit. Neither Dey nor Jaiman possessed a valid license to deal firearms.
On March 28, 2018, in Bridgeport, Jaiman possessed an AK-47 style machine gun and an AR-style machine gun bearing a suppressor, neither of which had a serial number.
On April 3, 2018, Dey transferred an AR-style machine gun, which he had manufactured, to another individual for cash.
Dey was arrested on April 11, 2018. On October 25, 2018, he pleaded guilty to one count of conspiracy to engage unlawfully in the business of selling firearms, and one count of unlawful possession and transfer of a machine gun.
On October 26, 2018, Jaiman pleaded guilty to one count of unlawful possession of a machine gun. He awaits sentencing.
Dey, who is released on a $150,000 bond, is required to report to prison on March 29.
Judge Thompson ordered Dey to perform 100 hours of community service when he is released from prison.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Tobacco Wholesaler Sentenced to 3 Years for Defrauding Connecticut of $5.8 Million in TaxesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RISHI MALIK, 46, a citizen of India residing in Fairfield, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to three years of imprisonment, followed by three years of supervised release, for defrauding the State of Connecticut of more than $5.8 million in taxes due on tobacco products imported into the state.
According to court documents and statements made in court, the State of Connecticut imposes tax on tobacco products imported into Connecticut for distribution within Connecticut. Tobacco amounts purchased, and taxes due, are reported on Forms OP-300, which are filed with the Connecticut Department of Revenue Services.
For several years until 2012, Malik and a partner operated Connecticut Discounts LLC, a tobacco wholesale business based in Bridgeport. Through that company, Malik obtained tobacco products from out-of-state suppliers and distributed the products to a network of clients who offered tobacco products for retail sale. While operating Connecticut Discounts, Malik caused OP-300 forms to be filed with the Connecticut Department of Revenue Services, which underreported the amount of tobacco he imported into the state for distribution.
In June 2012, Malik sold Connecticut Discounts to Pavan Vaswani, who continued the tobacco wholesale business under the name KDV Discounts, LLC. From approximately June 2012 to April 2017, Malik frequently assisted Vaswani in importing tobacco products from out-of-state suppliers, including suppliers in Pennsylvania. Malik frequently drove to Pennsylvania to pick up products that he delivered to KDV in Connecticut. He also participated in making orders, and sometimes delivered payments in cash.
Between January 2013 and April 2017, KDV acquired almost $12 million in tobacco products, primarily cigars and other products, from suppliers in Pennsylvania, and distributed these products to hundreds of customers in Connecticut that stocked tobacco products for retail sale. On the OP-300 forms that Vaswani filed with the Department of Revenue Services on behalf of KDV, the amounts reported were a small fraction of what KDV actually acquired. Through this scheme, Vaswani failed to report approximately $5,821,057 in tax to the State of Connecticut.
In 2014, Malik registered Discount Deals, LLC, with an address in Sciota, Pennsylvania. Malik held out Discount Deals to be a tobacco distribution business. However, the unit he rented was not a space for a legitimate tobacco business and was maintained to create the appearance that Discount Deals was a legitimate Pennsylvania-based tobacco wholesaler. Between 2014 and at least April 2017, to subvert other federal regulations regarding interstate transport of smokeless tobacco, Malik used Discount Deals to purchase more than $1.1 million in smokeless tobacco products from Pennsylvania suppliers. A substantial amount of these smokeless tobacco products were provided to KDV for distribution in Connecticut. Discount Deals made no tax payments to the State of Connecticut between 2014 and 2017, and approximately $400,000 in smokeless tobacco tax was not reported to Connecticut or other states.
Malik and Vaswani were arrested on January 11, 2018.
Judge Hall ordered Malik to pay restitution of $5,821,057.
On October 30, 2018, Malik pleaded guilty to one count of conspiracy to commit wire fraud and to violate the Contraband Cigarette Trafficking Act (“CCTA”), and one count of wire fraud.
On August 21, 2018, Vaswani, of West Haven, pleaded guilty to the same offenses. He awaits sentencing.
Malik, who is released on $1.2 million bond, is required to report to prison on March 13, 2019.
Malik faces immigration proceedings when he completes his prison term.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut Department of Revenue Services, Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Michael S. McGarry.
Tifton Defendant Pleads Guilty on Drug Charge, Hauling Kilos of Meth, Cocaine on I-75Read the Press Release
MACON – A Tifton woman pled guilty Wednesday on a drug charge after she was arrested carrying four kilos of meth and cocaine in her car with the intent to distribute the illegal drugs, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Anna Maria Lopez-Vazquez, 32, of Tifton, GA entered a guilty plea to one count Possession with Intent to Distribute Methamphetamine before the Honorable Marc Treadwell in Macon federal court on February 13, 2019. This charge carries a penalty of ten years up to life in prison, a $10 million fine, and five years supervised release. A sentencing date for Ms. Lopez-Vasquez has not been scheduled.
According to her signed plea agreement, on May 18, 2017, Anna Maria Lopez-Vasquez was driving a Yukon SUV southbound on I-75 in Peach County, Georgia. She was accompanied by a passenger, who was not charged in this crime. A Peach County deputy on patrol in the area spotted the SUV with an obscured license and failing to maintain its lane of traffic, both traffic infractions in Georgia. During the traffic stop, the deputy smelled a strong odor of marijuana. Following a legal search of the vehicle, 2,942 grams of methamphetamine and 999 grams of cocaine were found in three containers, sealed with plastic wrap, hidden inside a sports bag. Ms. Lopez-Vasquez and the passenger were arrested. In a post-arrest interview, Ms. Lopez-Vasquez admitted that the drugs belonged to her. She denied any involvement by the passenger.
“Methamphetamine is one of the most addictive, destructive drugs of our day, and people who profit from its sale will be caught and held accountable in the Middle District of Georgia,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Getting this volume of illegal drugs off the streets saved countless lives. I am grateful for the good work of our local law enforcement teams who continue to do everything in their power to stop the distribution of meth into our communities.”
The case is being investigated by The Drug Enforcement Agency and the Peach County Sheriff’s Office. Assistant U.S. Attorney Charles Calhoun is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Three Lockport Residents Charged with Distributing Heroin and Fentanyl That Led to the Death of One and Serious Injury to AnotherRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bruno J. Haney, II, 29, Marissa L. DeCarlo, 26, and James O. White, 27, all of Lockport, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, heroin, butyryl fentanyl, and fentanyl that resulted in serious bodily injury and death. The charge carries a mandatory minimum penalty of 20 years in prison and a maximum of life.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, in the early morning hours of March 25, 2017, officers from the Medina, NY Police Department found an individual identified as W.S. unresponsive and in cardiac arrest. W.S. later died. Officers recovered three small, clear, zip lock baggies containing a powder residue and a hypodermic needle in W.S.'s pant pockets. A subsequent analysis determined the substance contained heroin and fentanyl. The coroner ruled that the cause of death was the combined effects of fentanyl and alcohol.
Text messages retrieved from the cellular telephone of W.S. show that on the evening of March 24, 2017, W.S. ordered a half of a “bun,” which is street slang for half of a bundle of heroin from a contact saved on W.S.'s cellular phone as “James,” which was determined to be defendant James White.
Subsequent to W.S.’s death, law enforcement officers, in June 2017, conducted two controlled buys of half a bundle of heroin from White. During each of those purchases, White left his Caledonia Street residence and went to Haney’s Prospect Street residence. Additionally, in April and June 2017, law enforcement officers conducted three controlled purchases from Haney at his Prospect Street residence that he shared with DeCarlo. On June 16, 2017, members of the Niagara County Drug Task Force and the Drug Enforcement Administration executed a search warrant at Haney and DeCarlo’s residence. Officers recovered a quantity of butyryl fentanyl, $515.00 in U.S. currency, and drug packaging paraphernalia. In June and July of 2018, law enforcement officers made three additional controlled buys of heroin and fentanyl from Haney.
On October 09, 2018, the Lockport Police Department responded to a report of an overdose. Officers located an individual, identified as J.B., who was unresponsive with shallow breathing. Patrol officers administered two doses of Narcan and J.B. began making attempts to breathe. J.B. was transported by ambulance to the hospital for further medical treatment. J.B. later told officers that she overdosed on what she thought and was told was heroin, which she purchased from Haney. DeCarlo was present during that purchase.
On January 14, 2019, Haney was indicted in Niagara County Court for three counts of Criminal Possession of a Controlled Substance 3rd and three counts of Criminal Sale of a Controlled Substance 3rd. He was arrested on January 18, 2019. During a search of a residence on East Avenue in Lockport, officers recovered a quantity of a mixture of heroin and fentanyl, a quantity of fentanyl, a quantity of marijuana, $978 in U.S. currency, and drug packaging paraphernalia.
While in custody in the Niagara County Jail, Haney made several phone calls to DeCarlo directing her to collect money owed to Haney for drug transactions. The two also discussed Haney’s source of supply and how to proceed with their narcotics activity.
On January 24, 2019, the Niagara County Drug Task Force received an online complaint that Haney was out on bail and was again selling narcotics at his residence on East Avenue.
White was arrested on January 22, 2019, by the Orleans County Major Felony Crime Task Force and charged with felony manslaughter in the second degree. While incarcerated at the Orleans County Jail, White made a phone call to an unknown individual, during which he stated, “they are trying to say that back in 2017 I caught a body.” White further stated that he got “him” (W.S.) half a bundle from Bruno.
The complaint is the result of an investigation by the Niagara County Drug Task Force and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour; the Niagara County District Attorney’s Office, under the direction of District Attorney Caroline A. Wojtaszek; the Orleans County Major Felony Crime Task Force, under the direction of Sheriff Randy Bower; the Orleans County District Attorney’s Office, under the direction of District Attorney Joseph V. Cardone; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Lockport Police Department, under the direction of Chief Steven Preisch.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Tennessee Man Sentenced to 300 Months for Crossing State Line to Engage in Sex with a MinorRead the Press Release
FRANKFORT, Ky. — Billie Gene Spears, 47, of Jacksboro, Tennessee, was sentenced today to 300 months (25 Years) in federal prison, by United States District Judge Gregory F. Van Tatenhove, for crossing a state line with the intent to engage in a sexual act with a person who was under 12 years of age.
Late last year, Spears admitted that, in October of 2017, he traveled from Tennessee to Franklin County, Kentucky, with the intent to engage in a sexual act with a minor who was less than 12 years old. Spears had posted an internet ad, to which an undercover investigator with the Kentucky Attorney General’s Office responded. During the ensuing communications between the investigator and Spears, Spears unequivocally indicated that he was intending to have sex with the investigator’s fictitious 9 year-old daughter. On October 21, 2017, Spears was met by the investigator and other law enforcement officers, at a pre-arranged location in Franklin County, where he was arrested.
Under federal law, Spears must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 20 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Richard F. Ferretti, Special Agent in Charge, United States Secret Service; and Andy Beshear, Kentucky Attorney General, jointly made the announcement.
The investigation was conducted by the U.S. Secret Service and the Cyber Crimes Branch of the Kentucky Office of Attorney General. The United States was represented by Assistant United States Attorney David A. Marye.
Tampa Man Caught in Undercover Sting Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Steven Weaver, II (38, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. Weaver had pleaded guilty on November 1, 2018.
According to court documents, over the course of several months, Weaver sold undercover agents cocaine, ammunition, and at least 11 firearms. Weaver had reason to believe that the firearms would be trafficked to and resold in other markets, including New York City. Weaver’s criminal history includes cocaine trafficking, aggravated battery with a deadly weapon, and other firearm-related offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
Tabor City Man Sentenced to 14 Years in Prison for Drug Trafficking & Money Laundering OffensesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Senior United States District Judge Malcolm J. Howard sentenced JUSTIN LEE MYERS, 34, of Tabor City, North Carolina, to 168 months in prison, followed by four years of supervised release.
MYERS was charged as part of a 22-count Indictment filed on November 19, 2017 naming 8 defendants. On February 5, 2018, MYERS pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base (Crack), Heroin, Fentanyl, and Marijuana, and to Conspiracy to Commit Money Laundering.
Beginning in December 2008, Columbus County Sheriff’s Office (CCSO) in Tabor City, North Carolina, responded to calls involving the MYERS Drug Trafficking Organization (DTO) regarding various criminal and drug related activity in an area known as the “Sandpit.” The Sandpit consisted of approximately 25 mobile homes reachable after passing through a manned checkpoint. Investigation determined that the checkpoint was established as a lookout for law enforcement, and to protect the area from rival drug dealers. The checkpoint was normally manned by one to two armed members of the DTO.
Wire intercepts, confidential informants (CIs), and surveillance confirmed that the MYERS DTO primarily operated in Columbus County. From February 2017 to May 2017, CIs were utilized to conduct a series of controlled purchases from members of the DTO. Witness statements and subsequent wire intercepts, which spanned from May 2, 2017, to June 8, 2017, determined that MYERS supplied the heroin, cocaine, crack, and marijuana, in addition to directing his co-conspirators. Furthermore, the wire intercepts revealed that MYERS and others had attempted to launder the proceeds of their drug trafficking.
MYERS purchased a 2014 Corvette from Everett Chevrolet in Hickory, NorthCarolina, for $67,634, a 2014 Porsche from Island Chrysler in Pawley’s Island, South Carolina, for $77,983 and several other vehicles claiming his income as legitimate as the owner/operator of Monte Cutz Barber Shop.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case was investigated by the Columbus County Sheriff’s Office, the Internal Revenue Service-Criminal Investigation, and the Wilmington Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Bradford Knott.
St. Louis Man Sentenced for Carjacking and Robbing a 7-11 StoreRead the Press Release
St. Louis, MO – Jevantae Phillips, 22, St. Louis, was sentenced to 11 years in prison for carjacking, brandishing a firearm during a federal crime of violence and robbery charges. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to court documents, on October 17, 2017, officers of the St. Louis Metropolitan Police Department responded to 3880 Meramec, after a report of a robbery/carjacking at that location. The victim was located and she said she had been in her 2002 Pontiac Aztek, traveling east in the 3800 block of Meramec. She stated she stopped at the curb to make a call on her cellular phone. While doing so she heard a knock at her driver’s window. She then looked over and observed a male standing at the driver’s door with a military style weapon brandished at her. She opened the door and attempted to hand over her purse; the suspect refused the purse, and ordered her out of the vehicle.
When she complied, Phillips entered the driver’s seat. She additionally observed the passenger door closing. Ahmaad Ali, the second suspect, entered the passenger side of her vehicle.
The vehicle then fled east on Meramec. The stolen vehicle contained her purse, which held personal items, and her driver’s license. Her vehicle additionally contained a GoGo Sport scooter, which was located in the rear of the vehicle.
On October 18, 2017, Phillisp, along with co-defendants Ahmaad Ali and Travion Lindsey, all armed with firearms entered the 7-11 store located on Christy Avenue in South St. Louis. The three arrived at the 7-11 in the Pontiac Aztek that had been stolen one day earlier at gunpoint by Ali and Phillips. They entered the store brandishing their firearms and wearing masks. One walked around the counter and began stealing lottery tickets and money from the cash register. He was armed with a black long barrel pistol grip firearm. A second male jumped over the counter and began removing the cash register. He was armed with a black handgun, containing an extended magazine. The third male stood guard at the door and eventually walked over the counter and assisted in removing currency. He was armed with a black handgun, which he held in his left hand the entire time. After two minutes inside of the store, the three ran out of the store taking liquor bottles, cigarettes, and candy on their way outside. The males then re-entered the Aztec and fled the area northbound, out of sight.
Co-defendants Ali and Lindsey are scheduled to be sentenced May 8, 2019 and April 10, 2019, respectively.
This case is being investigated by the Federal Bureau of Investigation and assisted by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.