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12 February 2019
Opioid prosecutions continue to be focus of Southern District task forceRead the Press Release
SAVANNAH, Ga: Three people, including two medical professionals, are among defendants recently prosecuted in federal court as part of continued efforts to crack down on opioid abuse.
Lisa Marie Douthit, 42, a pharmacy technician at a Walgreen’s in Bryan County, was sentenced to three months in prison by U.S. District Court Judge William T. Moore Jr. for stealing opioid pills Oxycodone and Hydrocodone from her employer, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
In addition, Jamie Mays, 19, of Hinesville, Georgia, a former medical assistant at a Bryan County pain clinic, awaits sentencing after pleading guilty to stealing prescriptions for the opioids Percocet and Oxycodone, and Reginald Eric Lee, 24, of Hinesville, Georgia, awaits sentencing after pleading guilty to stealing prescriptions for the opioids Percocet and Oxycodone and to conspiracy to possess with intent to distribute Percocet and Oxycodone.
“Opioid abuse is a crisis in our country and our community, and we are committed to targeting those individuals who divert those highly addictive drugs from their proper use,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “It is especially troubling when these illegal activities are facilitated by people who exploit their access to the healthcare system, and we will not tolerate it.”
These cases were investigated by the Opioid Task Force, which includes the Drug Enforcement Administration (DEA), the FBI, the department of Health and Human Services Office of Inspector General (HHS), the Chatham County Narcotics Team (CNT), and the U.S. Attorney’s Office for the Southern District of Georgia.
“The recklessness and greed exhibited by these individuals put citizens at significant risk of addiction and death,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will use every tool we have to stop criminals from exploiting the vulnerable by taking advantage of their professional access to these drugs.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “The abuse of prescription drugs continues to be a major concern in America. The abuse of a trusted medical profession will not be tolerated. As the nationwide trend toward non-medical use of prescription drugs swells, the need for an organized, immediate, and effective response increases correspondingly. This is a perfect example of the success that can be accomplished when federal, state and local resources and subsequent prosecution by the United States Attorney’s Office are combined to present a united front.”
Said Chatham-Savannah Counter Narcotics Team Director Everett Ragan, “We rely on the healthcare system and its professionals to aid us in fighting the war on the opioid crisis. I know the majority in the profession are doing that every day; however, we stand ready to arrest those who choose to further complicate this matter.”
If you have any information regarding health care fraud or illegal opioid diversion, please contact the U.S. Attorney’s Office at (912) 652-4422.
Assistant United States Attorneys J. Thomas Clarkson and Jonathan Porter prosecuted the cases for the United. States.
One Romanian National Sentenced for Racketeering Conspiracy, ATM Skimming and Aggravated ID TheftRead the Press Release
BOSTON – One Romanian national was sentenced and two Romanian nationals pleaded guilty yesterday in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Florinel Vaduva, 22, was sentenced by U.S. District Court Judge William G. Young to three years in prison, three years of supervised release, and ordered to pay restitution of $50,453.12. In October 2018, Vaduva pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices, and aggravated identity theft.
In a separate hearing, Ion Vaduva, 38, and Florin Hornea, 37, each pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity and conspiracy to use counterfeit access devices. Hornea also pleaded guilty to aggravated identity theft. Judge Young scheduled their sentencing hearings for May 7, 2019. In May 2017, Florinel Vaduva, Ion Vaduva and Florin Hornea and 11 others were indicted in connection with the ATM skimming scheme. A superseding indictment later added another defendant.
The defendants, except for one, were members of the Hornea Crew, led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts.
Over an 18 month period, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Hornea Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
In May 2018, Judge Young sentenced Constantin Denis Hornea, 23, to 65 months in prison, three years of supervised release and ordered him to pay $242,141 in restitution and a money judgment of $54,260. Ludemis Hornea, 21, was sentenced to 42 months in prison, which includes credit for 15 months served on a state sentence, three years of supervised release and ordered him to pay $57,422 in restitution and a money judgment of $11,124. Of the 15 charged defendants, eight have been sentenced, four have pleaded guilty and awaiting are sentencing, one is awaiting trial, and two have not been arrested.
The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a maximum fine of $250,000. The defendants are subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Odebolt Man to Federal Prison for Meth and GunsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced February 11, 2019, to more than seven years in federal prison.
Mark David Beckman, 32, from Odebolt, Iowa, received the prison term after a July 30, 2018, guilty plea to conspiracy to distribute methamphetamine and illegal possession of a firearm.
At sentencing, the court found that from about 2014 through about December 2017 Beckman was involved in a conspiracy that distributed methamphetamine in and around Sac and Ida counties. Beckman admitted he possessed a firearm on November 9, 2017, while: (1) being a user of methamphetamine; and (2) subject to a domestic abuse restraining order.
Beckman was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Beckman was sentenced to 87 months’ imprisonment. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Beckman 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 Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Ida County Sheriff’s Office, Crawford County Sheriff’s Office, and DCI Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4024. Follow us on Twitter @USAO_NDIA.
North Shore Pastor Sentenced for Fraudulently Obtaining over $200,000 in Social Security BenefitsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that OTHO SCHILLING (“SCHILLING”), age 59, of Mt. Hermon, Louisiana, was sentenced today by U.S. District Court Judge Jay C. Zainey to three years of probation and ordered to pay restitution in the amount of $202,632.00 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court records, SCHILLING, while he was the pastor of a church in Bush, LA beginning in 2005 up until 2016, required the church to pay his personal expenses, such as his health and car insurance premiums, car payments, and personal land note in lieu of the church paying him a salary directly. During this period, SCHILLING was receiving Retirement, Survivors and Disability Insurance (“RSDI”) from the Social Security Administration in the amount of $1,728 a month. SCHILLING concealed both his earnings and employment from the Social Security Administration. Accordingly, SCHILLING fraudulently received over $200,000 in RSDI benefits he was not entitled to due to his employment with the church.
U.S. Attorney Peter G. Strasser praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Nine people – including men with previous convictions for attempted murder, domestic violence and felonious assault with a firearm -- indicted for firearms crimesRead the Press Release
Nine people – including men with previous convictions for attempted murder, domestic violence and felonious assault with a firearm -- were indicted in federal court for firearms crimes.
Indicted are: Darien L. Griffin, 22, of Cleveland; Deangelo Harris, 26, of Cleveland; Larrell Hazzard, of Cleveland; Deayre Horton, 32, of Cleveland; Anthony King, 25, of Canton; Treavon McCullough, 36, of Toledo; Anthony J. Schaffer, 32, of Canfield, and John Joseph Smoter, 39, of Ravenna.
“These cases demonstrate again why firearms enforcement is vital to making our community safer,” U.S. Attorney Justin Herdman said. “These defendants include people convicted of attempted murder, domestic violence, felonious assault with a firearm and other crimes. These defendants have no business carrying firearms or ammunition.”
“ATF’s core mission is reducing violent gun crime in our communities,” said ATF Acting Special Agent in Charge Roland Herndon. “We work side by side with our federal, state, and local partners to follow the gun and remove the most violent criminals from our streets.”
Griffin possessed a Glock .45-caliber pistol and ammunition on December 28, 2018, despite having previously been convicted of attempted felonious assault and robbery, according to the indictment.
Harris possessed 18 rounds of 9 mm ammunition on December 1, 2018, despite a previous conviction for felonious assault with a firearms specification, according to the indictment.
Hazzard possessed a Smith & Wesson .40-caliber handgun on December 5, 2018, despite a previous conviction for aggravated assault, according to the indictment.
Horton possessed a Taurus 9 mm pistol and ammunition on October 26, 2018, despite previous convictions for robbery and two counts of attempted murder with a firearms specification, according to the indictment.
King possessed a Beretta 9 mm pistol and ammunition on August 8, 2018, despite a previous conviction for robbery, according to the indictment.
McCullough possessed a CZ 9 mm pistol on May 27, 2018, despite previous convictions for aggravated robbery, aggravated burglary, being a felon in possession of a firearm and other crimes, according to the indictment.
Schaffer possessed a Smith & Wesson 9 mm pistol and ammunition on January 16, 2019, while being on supervised release for a previous federal conviction for being a felon in possession of a firearm, according to the indictment.
Smoter on January 8, 2019, possessed 14 firearms and ammunition, despite a previous conviction for domestic violence, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Cleveland Division of Police, the Lorain Police Department, the Toledo Police Department, the Elyria Police Department, the Akron Police Department and the Portage County Parole Authority. They are being prosecuted by Assistant U.S. Attorneys Peter E. Daly, Payum Daroodian, John C. Hanley, Jody King, Alissa Sterling, David M. Toepfer and Scott Zarzycki.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New Orleans Man Pleads Guilty to Trafficking in $193,980 worth of Counterfeit GoodsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MAHER SALIM, age 41, a resident of New Orleans, Louisiana, pleaded guilty today before United States District Judge Jay A. Zainey after previously being charged with trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1).
According to court documents, SALIM owned and operated BRANDS 4 LESS, a business located at 4200 Washington Avenue, Unit A, in New Orleans. On about November 9, 2016, agents with the United States Department of Homeland Security – Homeland Security Investigations (“HSI”) conducted a cargo inspection of a suspicious package addressed to SALIM at the DHL Express facility in Kenner, Louisiana. The package contained 32 pairs of Nike shoes that were determined to be counterfeit. Thereafter, a Nike representative entered BRANDS 4 LESS during its business hours and purchased another pair of counterfeit Nike shoes. Based on this information, HSI agents executed a federal search warrant on BRANDS 4 LESS on January 19, 2017. During the search, agents seized numerous counterfeit goods SALIM was selling that bore the false marks of makers of clothing and luxury goods, including True Religion, Rock Revival, Michael Kors, Coach, Louis Vuitton, Polo, Timberland, New Era, Nike, Adidas, Dolce & Gabbana, Mitchell & Ness, and North Face. The collective fair market value of all the items was approximately $193,980.
SALIM faces a maximum term of ten (10) years in prison, a fine of up to $2,000,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Zainey has been scheduled for May 14, 2019.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Muskegon Heights Man Sentenced to 120 Months in federal Prison for Drug and Firearm OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – Willie Earl Hector, 33, of Muskegon Heights, Michigan, was sentenced to 120 months (10 years) in federal prison for drug and firearm offenses, U.S. Attorney Andrew B. Birge announced today. In addition to the prison term, U.S. District Judge Janet T. Neff imposed a 3-year term of supervised release that will commence once Hector is released from imprisonment.
Hector pled guilty on October 5, 2018, to one count of Being a Felon in Possession of a Firearm and Ammunition, and one count of Possessing a Controlled Substance (Fentanyl) with Intent to Distribute. Hector came to the attention of police in Summer 2017 after a surveillance camera captured him walking around his home brandishing an AK-47 style rifle. Hector is prohibited from possessing firearms because he has nine prior felony convictions plus a conviction for domestic violence.
Picture of Willie Earl Hector bransishing and AK-47 style rifle
The ATF executed a search warrant at Hector’s residence in October 2017. Agents recovered two rifles, ammunition, 19.425 grams of fentanyl, other drugs, and drug paraphernalia. In its sentencing memorandum, the U.S. Attorney’s Office underscored the need to protect the community from Hector’s ongoing criminal activity. The United States noted that Hector had more than 20 convictions, and his priors include multiple drug felonies, as well as numerous instances of gun violence. “Society prohibits felons from possessing firearms and ammunition for a reason, and the defendant’s violent history is a paradigmatic example of why such laws exist. The defendant has proven through his conduct that he will readily use firearms for illegal and violence purposes. . . . [T]he seriousness of the defendant’s conduct is compounded by the fact that he possessed firearms while also possessing fentanyl with the intent to distribute it. The dangers of fentanyl are well known, and the distribution of this substance poses a great risk to the community.”U.S. Attorney Birge stated: “Drug trafficking and firearm offenses will be not be tolerated. My office and our federal, state, and local law enforcement partners will actively prosecute these cases to help make the Muskegon area a safer place.”
The charges in this case are the result of a joint investigation by the Muskegon Heights Police Department, the Michigan State Police, and the Bureau of Alcohol, Tobacco, and Firearms (ATF). The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and drug trafficking in the Muskegon area.
END
Multiple White Supremacist Gang Members among 54 Defendants Charged in RICO IndictmentRead the Press Release
Dozens of members of a white supremacist gang allegedly responsible for multiple acts of violence were charged in a superseding indictment unsealed today in the Eastern District of Arkansas.
The indictment alleges that the New Aryan Empire (NAE) is a racketeering enterprise, which committed violent acts—attempted murder, kidnapping, and maiming—in support of its organization and its wide-ranging drug-trafficking operation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland for the Eastern District of Arkansas, Special Agent in Charge Diane Upchurch of the FBI Little Rock, Arkansas Field Office, Assistant Special Agent in Charge Justin King of the U.S. Drug Enforcement Administration (DEA) Little Rock District Office and Acting Resident Agent in Charge Warren Newman of the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) Little Rock District Office, made the announcement.
“According to the allegations in the indictment announced today, New Aryan Empire associates maintained their criminal enterprise by engaging in multiple acts of violence — including kidnapping and attempting to murder one informant, and stabbing and maiming two others suspected of cooperating with law enforcement,” said Assistant Attorney General Benczkowski. “I want to thank our federal, state, and local law enforcement partners for vigorously investigating this vicious criminal organization.”
The case, named “To The Dirt,” which is in reference to the NAE slogan referring to the rule that members must remain in the NAE until they die, began in 2016 when ATF assisted the Pope County Sheriff’s Office in a murder investigation. The murder involved members of the NAE, a white supremacist organization that began as a prison gang and has since expanded beyond the prisons. Investigators learned that several members of the NAE conducted meetings in Pope County and became involved in methamphetamine distribution.
On Oct. 3, 2017, the grand jury handed down an indictment charging 44 people from the Pope County area with numerous gun and drug violations. Since that indictment, one defendant—Daniel Adame, 32, of Russellville, Arkansas —has pleaded guilty to conspiracy to distribute methamphetamine. The superseding indictment, which was returned by a federal grand jury on Feb. 5, 2019, named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine.
Thirty-five defendants are in either state or federal custody, while 16 were previously released on federal bond. Troy R. Loadholt, 37; Jeffrey G. Howell, 34; and Amos Adame, 46, all from Russellville, remain fugitives. April Howell, 29, and Amanda Rapp, 37, both of Russellville, and Courtney Talley, 32, of Dardanelle, Arkansas, were arrested Tuesday morning. Most of the defendants are residents of Pope and Yell Counties, Arkansas.
“The violence and hatred alleged in this superseding indictment have no place in society,” said U.S. Attorney Hiland. “We are committed to helping our communities remain free from these types of crimes using every resource available, including the powerful RICO statutes when appropriate. The significant charges in this case represent the hard work of our state and federal law enforcement agencies, and this office’s commitment to removing violent, repeat offenders from the streets.”
The superseding indictment alleges that between May 2014 and May 2016, NAE associates Marcus Millsap, 51, of Danville, Arkansas, and James Oliver, 47, of Russellville, as well as NAE President Wesley Gullett, 29, of Russellville, solicited several NAE members and associates to murder the confidential informant responsible for Millsap being charged with drug trafficking. According to the indictment, NAE members believed this informant had provided information about Millsap to law enforcement. In January 2016, two known members of NAE attempted to murder the confidential informant, but were unsuccessful. The superseding indictment further alleges that between May 28, 2017 and June 6, 2017, members and associates of NAE kidnapped, stabbed and maimed two individuals in retaliation for the individuals providing information to law enforcement about another NAE member. During the kidnapping, the victims were forced to write apology letters to the NAE member and his girlfriend.
The indictment charges 17 of the 54 defendants with crimes under the Racketeer Influenced and Corrupt Organizations Act (RICO) and Violent Crimes in Aid of Racketeering statute (VICAR). These racketeering-based statutes provide criminal penalties up to life imprisonment for acts performed as part of a criminal organization, and support charges for those who only ordered or assisted others to carry out the illegal acts. The superseding indictment alleges that from 2014 to the present, the New Aryan Empire functioned as a criminal enterprise to achieve its objectives, including illegal activities that affect interstate commerce.
The charges in the superseding indictment include conspiracy to violate RICO, kidnapping in aid of racketeering, maiming in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and attempted murder in aid of racketeering, as well as multiple methamphetamine and firearm violations (see attachment for complete list of charges and penalties).
“Today’s superseding indictment of over 50 people reflects the FBI’s firm resolve to root out criminal organizations who espouse hate and bigotry, and whose members sell drugs and commit violent acts such as attempted murder, kidnapping, and aggravated assault,” said FBI Special Agent in Charge Upchurch. “We appreciate and applaud the steadfast efforts of our partners at the U.S. Attorney’s Office for the Eastern District of Arkansas, the ATF, DEA, Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, U.S. Postal Inspection Service, and FBI in arresting these individuals who are determined to destroy our communities.”
In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as 69 firearms and more than $70,000 in drug proceeds.
“Historically, Aryan gang members and associates are a source of drugs, violence, and crime throughout this region,” said DEA Assistant Special Agent in Charge King. “Several members and associates of these gangs are charged in a RICO conspiracy as a result of law enforcement collaboration and a determined goal of making our communities safer from gang violence and drug trafficking. This effort, as part of Operation To The Dirt, is a promise to our citizens of the continued commitment of law enforcement at the federal, state and local levels to keep our streets safe.”
Wesley S. Gullett, 29, and Kevin M. Long, 23, both of Russellville, Arkansas; Lesa A. Standridge, 54, of Dover, Arkansas; and Christopher S. Helms, 35, of Dardanelle, Arkansas are charged with being a felon in possession of a firearm. Among the 69 guns seized, include handguns, rifles, shotguns, and several high-capacity assault-style rifles.
“These indictments are the result of an unprecedented collaboration by the ATF, FBI, and DEA Little Rock Field Offices, Pope County Sheriff’s Office, Russellville Police Department and 5th Judicial Drug Task Force,” said ATF Acting Resident Agent in Charge Newman. “This case reflects a major disruption of the New Aryan Empire organization that affected the whole Arkansas River Valley area. As a result of this collaborative effort, we have effectively dismantled this violent, drug-dealing organization and sent a clear message that the ATF and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
The three arrested today will be arraigned at 3 p.m. CST in federal court in Little Rock, Arkansas before U.S. Magistrate Judge Beth Deere.
The investigation was conducted by FBI, ATF, and DEA, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department and U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Liza Jane Brown of the Eastern District of Arkansas.
An indictment is merely an accusation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Multiple White Supremacist Gang Members Among 54 Defendants Charged in RICO IndictmentRead the Press Release
Charges including Solicitation to Commit Murder, Kidnapping, Maiming, and Conspiracy to Distribute Methamphetamine
RUSSELLVILLE—Dozens of members of a white supremacist gang allegedly responsible for multiple acts of violence were charged in a superseding indictment unsealed today.
The indictment alleges that the New Aryan Empire (NAE) is a racketeering enterprise which committed violent acts—including attempted murder, kidnapping, and maiming—in support of its organization and its wide-ranging drug-trafficking operation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the FBI’s Little Rock Field Office, Justin King, Assistant Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Little Rock District Office, and Warren Newman, Acting Resident Agent in Charge Bureau of Alcohol, Tobacco, Firearms, & Explosives’ (ATF) Little Rock District Office, announced the Tuesday morning arrests of the final three defendants and the unsealing of the 54-defendant superseding indictment.
“According to the allegations in the indictment announced today, New Aryan Empire associates maintained their criminal enterprise by engaging in multiple acts of violence—including kidnapping and attempting to murder one informant, and stabbing and maiming two others suspected of cooperating with law enforcement,” Assistant Attorney General Benczkowski said. “I want to thank our federal, state, and local law enforcement partners for vigorously investigating this vicious criminal organization.”
The case, named “To The Dirt,” which is in reference to the NAE slogan referring to the rule that members must remain in the NAE until they die, began in 2016 when ATF assisted the Pope County Sheriff’s Office in a murder investigation. The murder involved members of the NAE, a white supremacist organization that began as a prison gang and has since expanded beyond the prisons. Investigators learned that several members of the NAE conducted meetings in Pope County and became involved in methamphetamine distribution.
On October 3, 2017, the grand jury handed down an indictment charging 44 people from the Pope County area with numerous gun and drug violations. Since that indictment, one defendant—Daniel Adame, 32, of Russellville—has pleaded guilty to conspiracy to distribute methamphetamine. The superseding indictment, which was returned by a federal grand jury on February 5, 2019, named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine.
Thirty-five defendants are in either state or federal custody, while 16 were previously released on federal bond. Troy R. Loadholt, 37, Jeffrey G. Howell, 34, and Amos Adame, 46, all from Russellville, remain fugitives. April Howell, 29, and Amanda Rapp, 37, of Russellville, and Courtney Talley, 32, of Dardanelle, were arrested Tuesday morning. Most of the defendants are residents of Pope and Yell Counties (see attachment for complete list of defendants and charges).
“The violence and hatred alleged in this superseding indictment have no place in society,” U.S. Attorney Hiland said. “We are committed to helping our communities remain free from these types of crimes using every resource available, including the powerful RICO statutes when appropriate. The significant charges in this case represent the hard work of our state and federal law enforcement agencies, and this office’s commitment to removing violent, repeat offenders from the streets.”
The superseding indictment alleges that between May 2014 and May 2016, NAE associates Marcus Millsap, 51, of Danville, and James Oliver, 47, of Russellville, as well as NAE President Wesley Gullett, 29, of Russellville, solicited several NAE members and associates to murder a confidential informant. According to the indictment, NAE members believed this informant had provided information about Millsap to law enforcement.
In January 2016, two known members of NAE attempted to murder the confidential informant, but were unsuccessful. The superseding indictment further alleges that between May 28, 2017, and June 6, 2017, members and associates of NAE kidnapped, stabbed, and maimed two individuals in retaliation for the individuals providing information to law enforcement about another NAE member. During the kidnapping, the victims were forced to write apology letters to the NAE member and his girlfriend.
The indictment charges 17 of the 54 defendants with crimes under the Racketeer Influenced and Corrupt Organizations Act (RICO) and Violent Crimes in Aid of Racketeering statute (VICAR). These racketeering-based statutes provide criminal penalties up to life imprisonment for acts performed as part of a criminal organization, and support charges for those who only ordered or assisted others to carry out the illegal acts. The superseding indictment alleges that from 2014 to the present, the NAE functioned as a criminal enterprise to achieve its objectives, including illegal activities that affect interstate commerce.
The charges in the superseding indictment include conspiracy to violate RICO, kidnapping in aid of racketeering, maiming in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and attempted murder in aid of racketeering, as well as multiple methamphetamine and firearm violations (see below for complete list of charges and penalties).
“Today’s superseding indictment of over 50 people reflects the FBI’s firm resolve to root out criminal organizations who espouse hate and bigotry, and whose members sell drugs and commit violent acts such as attempted murder, kidnapping, and aggravated assault,” FBI SAC Upchurch said. “We appreciate and applaud the steadfast efforts of our partners at the United States Attorney’s Office for the Eastern District of Arkansas, the ATF, DEA, Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, United States Postal Inspection Service, and FBI in arresting these individuals who are determined to destroy our communities.”
In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as the 69 firearms and more than $70,000 in drug proceeds.
“Historically, Aryan gang members and associates are a source of drugs, violence, and crime throughout this region,” DEA ASAC King said. “Several members and associates of these gangs are charged in a RICO conspiracy as a result of law enforcement collaboration and a determined goal of making our communities safer from gang violence and drug trafficking. This effort, as part of Operation To The Dirt, is a promise to our citizens of the continued commitment of law enforcement at the federal, state and local levels to keep our streets safe.”
A majority of the 54 federal defendants are convicted felons, many with violent histories. Among the 69 guns seized include handguns, rifles, shotguns, and several high-capacity assault-style rifles. Wesley S. Gullett, 29, and Kevin M. Long, 23, both of Russellville; Lesa A. Standridge, 54, of Dover; and Christopher S. Helms, 35, of Dardanelle, are charged with being a felon in possession of a firearm.
“These indictments are the result of an unprecedented collaboration by the ATF, FBI, and DEA Little Rock Field Offices, Pope County Sheriff’s Office, Russellville Police Department and 5th Judicial Drug Task Force,” ATF Acting RAC Newman said. “This case reflects a major disruption of the New Aryan Empire organization that affected the whole Arkansas River Valley area. As a result of this collaborative effort, we have effectively dismantled this violent, drug-dealing organization and sent a clear message that the ATF and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
Those arrested today will be arraigned at 3 p.m. in federal court in Little Rock before United States Magistrate Judge Beth Deere.
The investigation was conducted by FBI, ATF, and DEA, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service. The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Liza Jane Brown of the Eastern District of Arkansas.
Tuesday’s arrest operation included the assistance of FBI, ATF, Pope County Sheriff’s Office, Fifth Judicial Drug Task Force, Russellville Police Department, and Arkansas State Police.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at http://www.justice.gov/edar
Twitter: @EDARNEWS
To The Dirt II Defendant ListMicronesian Government Official Arrested in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
Charges were unsealed yesterday against a Micronesian government official for his alleged participation in a money laundering scheme involving bribes made to corruptly secure engineering and project management contracts from the government of the Federated States of Micronesia (FSM). In a related matter, on Jan. 22, a U.S. executive pleaded guilty for his role in a scheme to, among other things, bribe the Micronesian official in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office made the announcement.
Master Halbert, 44, a Micronesian citizen, was charged in a criminal complaint filed in the District of Hawaii with one count of conspiracy to commit money laundering. Halbert was arrested yesterday in Honolulu, Hawaii, and had his initial court appearance before U.S. Magistrate Judge Richard L. Puglisi of the District of Hawaii. Halbert is scheduled to have a pretrial detention hearing on Feb. 13 and a preliminary hearing on Feb. 22.
According to the criminal complaint, Halbert was a government official in the FSM Department of Transportation, Communications and Infrastructure who administered FSM’s aviation programs, including the management of its airports. The complaint alleges that between 2006 and 2016, a Hawaii-based engineering and consulting company owned by Frank James Lyon paid bribes to FSM officials, including Halbert, to obtain and retain contracts with the FSM government valued at nearly $8 million. According to the complaint, Lyon entered into an agreement with Halbert to bribe Halbert in exchange for Halbert’s assistance in securing contracts for Lyon and his company. Lyon and Halbert allegedly agreed that these bribes would be transported from the United States to FSM.
The charges contained in the complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In the related matter, Lyon, 53, of Honolulu, Hawaii, pleaded guilty on Jan. 22 to a one-count information filed in the District of Hawaii charging him with conspiracy to violate the anti-bribery provisions of the FCPA and to commit federal program fraud. Lyon is scheduled to be sentenced on May 13.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section is prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Metro Atlanta man sentenced for arranging to have sex with a minorRead the Press Release
ATLANTA, Ga. – Mewael Berhane, who communicated on the Internet to arrange to meet a minor girl for sex, has been sentenced to federal prison for enticing a minor to engage in illegal sexual activity.
“This case shines a light on some of the darkest corners of the Internet, where predators seek out minors to victimize,” said U.S. Attorney Byung J. “BJay” Pak. “Through the vigilance of our law enforcement partners, Berhane is being held accountable for his depraved conduct.”
“The federal investigation and subsequent prison sentence clearly reflects the threat Berhane posed to the community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Fortunately, he connected with an undercover FBI agent and not a child. Let it be a warning to sexual predators who think the anonymity of the internet keeps them protected from detection.”
According to U.S. Attorney Pak, the charges and other information presented in court: In October 2017, Berhane posted an ad on Craigslist that was titled “Very Taboo-something different.” In the ad, he expressed his interest in finding mothers and daughters who wanted to have sex with the same man.
An agent with the FBI responded, posing as the “mother” of an 11-year-old girl. The “mother” wrote that she was looking for someone to teach her 11-year-old daughter how to be with a man sexually. Berhane told her that he would “definitely be up for that.”
Berhane continued communicating with the girl’s “mother” on the cell phone app “Kik messenger” and graphically described the sex acts which he planned to engage in with the 11-year-old girl. Berhane asked the mother to send him photos of her 11-year-old daughter on multiple occasions. He even sent her a photo of himself wearing only his underwear.
On November 7, 2017, Berhane made arrangements to meet the mother and the girl for the purpose of engaging in sex with the child. That same day, the defendant drove from his office in Decatur to Duluth, Georgia, in rush hour traffic to meet the girl. He was arrested when he arrived at the pre-arranged location.
Mewael Berhane, 40, of Stone Mountain, Georgia, has been sentenced to ten years in prison, to be followed by ten years of supervised release. He will also be required to register as a sex offender when he is released from prison. Berhane was convicted on these charges on October 22, 2018, after he pleaded guilty.
This case was investigated by the FBI.
Assistant U.S. Attorneys William G. Traynor and Leanne M. Marek prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Members of Hacker Collective Face Federal Charges for Attacking Computer Systems, Emailing Mass Hoax Bomb and Shooting ThreatsRead the Press Release
LOS ANGELES – Federal authorities today arrested one of two defendants charged in a federal indictment with making false threats of violent attacks at many locations – including Los Angeles International Airport and numerous Southern California school districts – and staging attacks on computer systems belonging to institutions and companies, including a Long Beach-based company.
The two defendants allegedly are members of the Apophis Squad, a worldwide collective of computer hackers and swatters intent on using the internet to cause chaos. The collective caused disruptions by making threatening phone calls, sending bogus reports of violent school attacks via email, and launching distributed denial-of-service (DDoS) attacks on websites.
Timothy Dalton Vaughn, 20, of Winston-Salem, North Carolina – who used online handles that include “WantedbyFeds” and “Hacker_R_US” – was arrested this morning by special agents with the FBI.
The second defendant named in the indictment – George Duke-Cohan, 19, of Hertfordshire, United Kingdom, who used online handles that included “DigitalCrimes” and “7R1D3N7” – is currently serving a prison sentence in Britain for making a hoax threat targeting an airliner, a threat that is detailed in the indictment unsealed today.
The indictment alleges that Apophis Squad conducted cyber and swatting attacks against individuals, businesses, and institutions in the U.S. and the United Kingdom. Members made threats of bombs and school shootings that were “designed to cause fear of imminent danger and did cause the closure of hundreds of schools on two continents on multiple occasions,” according to the indictment.
The conspiracy alleged in the indictment spanned the first eight months of 2018, during which members of Apophis Squad communicated various threats – sometimes using “spoofed” email addresses to make it appear the threats had been sent by innocent parties, including the mayor of London. They also allegedly defaced websites and launched denial-of-service attacks. In addition, Vaughn allegedly conducted a DDoS attack that took down hoonigan.com, the website of a Long Beach motorsport company, for three days, and sent extortionate emails to the company demanding a Bitcoin payment to cease the attack.
The indictment also alleges that Duke-Cohan called the FBI field office in Omaha, Nebraska on multiple occasions, discussed the deployment of deadly pathogens in the office, and threatened to rape and kill the wife of the FBI personnel who answered the phone.
Vaughn bragged in an online forum that Apophis Squad had targeted over 2,000 schools in the United States and more than 400 in the United Kingdom, according to the indictment, which details threats about imminent shootings and bombs being sent to school districts across Southern and Central California. Duke-Cohan allegedly posted a message on Twitter taking credit for the hoax emails on behalf of Apophis Squad in which he said, “We are OPEN for request for school lockdowns / evacs.”
The Apophis Squad also took credit for hacking and defacing the website of a university in Colombia, resulting in visitors to the site seeing a picture of Adolf Hitler holding a sign saying “YOU ARE HACKED” alongside the message “Hacked by APOPHIS SQUAD.”
The 11-count indictment, which was returned by a federal grand jury on February 8 and unsealed today, charges Vaughn and Duke-Cohan with conspiracy and eight additional felony offenses, including making threats to injure in interstate commerce and making interstate threats involving explosives. Vaughn is additionally charged with intentionally damaging a computer and interstate threat to damage a protected computer with intent to extort.
Vaughn is expected to make his initial court appearance in the Middle District of North Carolina this afternoon.
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.
If he is convicted of all 11 charges in the indictment, Vaughn would face a statutory maximum sentence of 80 years in federal prison. If he is convicted of the nine charges in the indictment in which he is named, Duke-Cohan would face a statutory maximum sentence of 65 years in federal prison.
This case is the result of an investigation by the Federal Bureau of Investigation, with assistance provided by the United States Secret Service as part of the Electronic Crimes Task Force.
This case is being prosecuted by Assistant United States Attorney Jennie L. Wang of the Cyber & Intellectual Property Crimes Section.
Massage Parlor Owner Pleads Guilty to Federal Conspiracy ChargeRead the Press Release
TOPEKA, KAN. – A woman who operated massage parlors in Lawrence and Topeka pleaded guilty Tuesday to operating a prostitution business, U.S. Attorney Stephen McAllister said.
Weiling Nielsen, 54, pleaded guilty to one count of conspiracy. Nielsen owned and operated Naima Asian Massage and Serenity Health Spa in Lawrence, as well as Jasmine Massage in Topeka. In her plea, she admitted the massage parlors provided sexual services to customers for payment in cash. Nielsen and others advertised the services on the internet. Nielsen and her husband deposited cash into various bank accounts and purchased money orders for deposit in bank accounts in California.
In her plea agreement, Nielsen agreed to pay a $650,000 judgement, which represents the proceeds of the crime.
Sentencing is set for May 15. Both parties are recommending three years on federal probation.
McAllister commended the FBI, the Douglas County Sheriff’s Office, the Topeka Police Department, the Salina Police Department and Assistant U.S. Attorney Christine Kenney for their work on the case.
Massachusetts Woman Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LATOYA McKREITH, 36, of Chicopee, Massachusetts, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to distribute, and to possess with intent to distribute, 500 grams or more of cocaine.
According to court documents and statements made in court, on May 30, 2018, McKreith and Laprese Gollman were arrested after they drove to New Haven in an attempt to purchase four kilograms of cocaine. Investigators seized approximately $100,000 from Gollman at the time of his arrest.
Judge Arterton scheduled sentencing for May 8, 2019, at which time McKreith faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. McKreith is released on a $100,000 bond pending sentencing.
Gollman, of Springfield, Massachusetts, previously pleaded guilty to the same charge and, on October 15, 2018, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by eight years of supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven and Hamden Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Madras Woman Pleads Guilty to Stealing Social Security Payments from Disabled AdultsRead the Press Release
EUGENE, Ore.—Tayva Tucker, 41, of Madras, Oregon, pleaded guilty today to one count of theft of government funds for stealing nearly $40,000 in Social Security payments from ten mentally disabled adults.
According to court documents, beginning in March 2014, Tucker was employed by a social services organization in Madras where she oversaw outreach to mentally disabled clients as part of the organization’s mental health program. As part of her work, Tucker assumed representative payee duties for some her disabled clients’ Title II and Title XVI Social Security benefits. A representative payee is appointed when the beneficiary is incapable of managing his or her benefits. As a representative payee, Tucker was required to use the Social Security payments for the current and future needs of her clients.
In the summer of 2016, an organizational audit uncovered unusual movement of funds between various client accounts, as well as funds transferred from client accounts to Tucker. When confronted, Tucker admitted to taking clients’ Social Security benefits for her personal use. An investigation revealed that Tucker had stolen $39,277 from 10 victims.
Tucker faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. She will be sentenced on April 25, 2019 before U.S. District Court Judge Ann Aiken.
As part of the plea agreement, Tucker has agreed to pay $39,277 in restitution.
This case was investigated by the Social Security Administration Office of Inspector General, the Department of Health and Human Services Office of the Inspector General, and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Ludlow Couple Plead Guilty to Mail Fraud, Identity Theft, and Tax EvasionRead the Press Release
BOSTON – A Ludlow couple pleaded guilty yesterday in federal court in Springfield to mail fraud, identity theft, and tax evasion.
Joanne Murray, 54, and James Murray, 53, each pleaded guilty to an Information charging them with one count of conspiracy to commit mail fraud, aggravated identity theft, and tax evasion.
From approximately 2010 through 2015, the Murrays, along with others, engaged in a scheme to defraud the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. Joanne worked at a Springfield real estate brokerage, which managed hundreds of foreclosed properties owned by Freddie Mac.
In the scheme, Joanne, James, and others, agreed to submit fraudulent “reimbursements” by the brokerage to Freddie Mac for James’ company, amounting to approximately $1,372,099 in repair, improvement, and maintenance projects. After Freddie Mac paid the purported reimbursements, the brokerage paid James approximately 90% of those amounts and retained an approximate 10% skim. Joanne ensured that James’s company would win these projects by submitting fraudulent bids to Freddie Mac by purported competitors. To avoid detection by Freddie Mac, Joanne submitted bids in a friend’s name, without his knowledge, instead of James’ company, for work that was ultimately performed by James’ company. The Murrays also agreed to submit similar fraudulent requests for reimbursement of minor cleaning projects for James’ relative, amounting to approximately $68,960, in exchange for the brokerage’s retention of approximately 10% of the relative’s payments.
In addition, from 2012 through 2014, the Murrays willfully evaded payment on outstanding federal tax debts based upon their 2008, 2009, 2010, and 2011 tax years by cashing numerous checks from the brokerage totaling approximately $461,030 rather than depositing those checks into their bank accounts. Lastly, in 2014, the Murrays jointly filed an individual federal income tax return that under-reported their gross receipts by approximately $151,178.
The conspiracy charge provides for a sentence of no greater than five years in prison, up to five years of supervised release, and a fine of $250,000. The aggravated identity theft charges provide for a mandatory two year sentence consecutive to any other term of imprisonment. The tax evasion charge provides for a sentence of no greater than of five years in prison, a maximum of five years of supervised release, and a fine of $100,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division; John Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office are prosecuting the case.
Life in Federal Prison for Former Tribal Official Convicted of 15 Counts of Sexual Abuse Crimes Involving ChildrenRead the Press Release
United States Attorney Ron Parsons announced that a Lake Andes, South Dakota, man was sentenced to 12 concurrent life sentences and to 3 concurrent 10-year terms of imprisonment on February 11, 2019, by U.S. District Judge Karen E. Schreier.
Quentin P. Bruguier, Jr., a/k/a “JB,” age 55, was sentenced to life in federal prison for each of the 12 counts of aggravated sexual abuse and to 10 years, the statutory maximum, for each of the 3 counts of abusive sexual contact. He was also ordered to pay $1,500 to the Federal Crime Victims Fund.
Following a week-long trial, Bruguier was convicted by a federal jury on November 16, 2018. He was charged in a 15-count indictment for various aggravated sexual abuse charges involving children. Between 1992 and 2016, Bruguier, who was a former Yankton Sioux Tribal Official, engaged in these sexual acts using fear, force, or both, when perpetrating the sexual assaults.
While pronouncing its sentence, the Court stated, “Over a 30-year time period, you took advantage of any young female around you.” The Court also acknowledged the victims by stating, “The girls that came forward were some of the strongest I’ve seen.”
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Bruguier was immediately remanded to custody to continue serving his sentence.
Laurel-Based Physicians Group and Neurologist Agree to Pay Almost One Million Dollars to Resolve False Claims Act AllegationsRead the Press Release
Jackson, Miss. - Jefferson Medical Associates, a now dissolved, multi-specialty medical practice group in Laurel, and Dr. Aremmia Tanious, have agreed to pay the United States $817,635.06 to resolve claims under the False Claims Act arising from Medicare overpayments to Jefferson Medical Associates and Dr. Tanious, announced U.S. Attorney Mike Hurst.
This settlement resolves allegations that from January 1, 2012, through December 31, 2014, Jefferson Medical Associates and Dr. Tanious violated the False Claims Act by failing to return overpayments they received from Medicare on claims. In addition, from February 1, 2013, through June 30, 2017, it was alleged that Jefferson Medical Associates and Dr. Tanious billed Medicare using multiple medical codes when the medical documentation did not support the use of such billing practices.
During the course of the government’s investigation, Jefferson Medical Associates and Dr. Tanious provided assistance through voluntary disclosures to the U.S. Attorney’s Office after they discovered through audits of patient files and claims data that Medicare had been overbilled for certain services.
"This settlement should serve as a reminder to medical providers receiving Medicare funds that they must timely report and return any overpayments owed to Medicare or be subject to liability under the False Claims Act. I applaud our healthcare fraud investigators and prosecutors, as well as agents with the Office of Inspector General for Health and Human Services, for their diligent work in recovering the public’s money," said U.S. Attorney Hurst.
This matter was investigated by the U.S. Attorney’s Office Healthcare Fraud Investigator Ron Jefferson and U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Kristi H. Johnson handled the matter for the United States.
The claims resolved by this settlement are allegations only, and there has been no determination of civil liability.
Las Vegas Man Sentenced to Eight Years in Prison for Soliciting and Receiving Sexually Explicit Photos from Autistic Minor VictimRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who repeatedly played the game of “truth or dare” with an autistic girl to entice her to send him sexually explicit photos was sentenced to eight years in federal prison to be followed by lifetime supervised release, announced U.S. Attorney District Nicholas A. Trutanich for the District of Nevada.
“The defendant in this case exploited a vulnerable victim with special needs,” said U.S. Attorney Trutanich. “The Department of Justice’s Project Safe Childhood initiative brings together a network of law enforcement partners to protect children from those who would exploit their vulnerabilities and my office will continue to support the cause of keeping children in Nevada safe.”
Fredy Hernandez-Gomez, 32, previously pleaded guilty to receipt of child pornography before U.S. District Judge Kent J. Dawson.
Hernandez-Gomez admitted that in April 2017, he began exchanging text messages with his friend’s autistic 13-year-old girl daughter. He and the girl would “dare” each other to do various things and he used the “dares” to induce her to comply and to reduce the risk that she would tell her parents. On May 5, 2017, he texted the girl to send him photos of herself telling her to “be daring,” and “don’t be shy.” They continued to exchange sexually explicit text messages. When the girl sent sexually explicit photos of herself, Hernandez-Gomez texted “I like them” and then “Erase it.” The girl’s parents subsequently discovered the text messages and made a report to the police. During an interview with law enforcement, Hernandez-Gomez admitted to sending the victim text messages and asking her to send him sexually explicit photos of herself. Hernandez-Gomez admitted to receiving the sexually explicit photos he requested.
During the investigation, the minor victim reported that Hernandez-Gomez also sexually abused her. Hernandez-Gomez subsequently was charged with and pleaded guilty in Clark County District Court to one count of attempted sexual assault. On January 3, 2019, Hernandez-Gomez was sentenced in connection with that case to eight to 20 years in prison.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Christopher Burton prosecuted the case.
If you have information regarding possible child sexual exploitation, you are urged to make a report to the National Center for Missing and Exploited Children at www.cybertipline.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Lake Charles man pleads guilty to possessing a revolverRead the Press Release
LAKE CHARLES, La. – John Casimere, 33, of Lake Charles, pleaded guilty last week before U.S. Magistrate Judge Kathleen Kay to one count of possession of a firearm by a prohibited person, U.S. Attorney David C. Joseph announced.
According to the guilty plea, Lake Charles police encountered Casimere on May 28, 2018 at a Lake Charles residence after responding to a domestic disturbance involving a firearm. At the time of this incident, Casimere possessed an RG Industries .22-caliber revolver, and had been previously convicted of a misdemeanor crime of domestic violence and was subject to a protection order, which prohibited him from possessing a firearm.
Casimere faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for May 9, 2019.
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 ATF and Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Jury Convicts Round Rock Man for Kidnapping Two Sisters in December 2017 and Federal Sex Offenses Involving a MinorRead the Press Release
In Austin today, a federal jury convicted 45-year-old Terry Allen Miles for kidnapping two minors and taking them to Colorado, announced United States Attorney John F. Bash, and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division and Round Rock Police Chief Allen Banks.
Jurors found Miles guilty on two counts of kidnapping, one count of transporting a minor with intent to engage in sex with her, and one count of interstate travel with intent to engage in sex with a minor. Evidence presented during trial revealed on December 30, 2017, Round Rock (TX) Police (RRPD) officers conducted a welfare check at the residence of Tonya Ellen Bates because she had not shown up for work that day as expected. The officers subsequently discovered Bates’s body inside the residence. Bates was the only individual at the residence at the time of the welfare check and Bates’s 2017 Hyundai Accent was missing. Further investigation revealed that Miles, who had lived with Bates and her two young daughters, may have kidnapped the daughters, whose whereabouts were unknown.
Bates’ death was ruled a homicide by blunt force trauma. Testimony at trial indicated that Miles likely killed Bates by bludgeoning her on the head with a heavy flashlight. DNA evidence indicated that Bates’ blood was found on one of Miles’ sneakers.
RRPD officers obtained cell phone information on the children’s two phones. One of the phones was located in a heavily wooded area adjacent to a Wal-Mart store located in Round Rock. Surveillance video from the Wal-Mart showed what appeared to be Miles purchasing numerous camping-related items and then leaving the store in a vehicle appearing to match Bates’s vehicle. The vehicle and a cell phone belonging to one of the minors were subsequently traced heading to Colorado. Evidence from security cameras and phone records showed the route Miles took from Round Rock to southern Colorado.
On January 3, 2018, deputies with the Las Animas County Sheriff’s Office arrested Miles during a traffic stop near La Vera, Colorado. The two minors, ages 7 and 14, were found with Miles in the vehicle he took from Round Rock.
Testimony elicited during trial also revealed that Miles repeatedly engaged in sexual relations with the 14-year-old girl over a 5-month period prior to being arrested. DNA evidence indicated that Miles was the source of semen found in the 14 year old’s underwear that she was wearing at the time she was found. Miles was also shown to be the source of semen found on a towel at the remote campsite where they hid out after arriving in Colorado.
Miles faces between 20 years and life in federal prison. He remains in federal custody pending sentencing scheduled for 9:00am on April 25, 2019, before U.S. District Judge Lee Yeakel in Austin.
“Today’s verdict represents justice for the child victims of Terry Miles,” said U.S. Attorney Bash. “ Mandatory minimums have been criticized recently, but I am glad that federal law requires defendants to serve at least 20 years—and up to life in prison—for these sorts of heinous acts against children.
“Thank you to our wonderful prosecution team – who worked without paychecks during the shutdown preparing for this trial – and to our partners at the FBI and the Round Rock Police Department,” Bash added.
“This investigation and subsequent prosecution, resulted from the exemplary collaboration of federal, state, and local law enforcement, across multiple states, leading to the safe recovery of two children,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent violent crimes against children, but it sends a clear message that we will relentlessly pursue and prosecute violent criminals who prey on the most vulnerable in our society.”
“I am pleased with the guilty verdict against Terry Miles. I would like to thank the U.S. Attorney’s Office, the FBI and the men and women of the Round Rock Police Department and all our Law Enforcement partners who worked tirelessly on this case. Our prayers are that this verdict starts the healing process for the two victims,” stated Round Rock Police Chief Banks.
The FBI and the Round Rock Police Department are conducting this investigation. The U.S. Marshals Service – Lone Star Fugitive Task Force, Texas Rangers; Central Texas Violent Crimes Task Force; Williamson County (TX) District Attorney’s Office; United States Attorney’s Office – District of Colorado; New Mexico State Police Department; Las Animas County (CO) Sheriff’s Office; Southern Colorado Safe Streets Task Force; Colorado State Patrol; Trinidad (CO) Police Department; Colorado Bureau of Investigations; Huerfano County (CO) Sheriff’s Office; Archuletta County (CO) Sheriff’s Office; Pagosa Springs (CO) Police Department; Rio Grande County (CO) Sheriff’s Office; Federal Bureau of Investigation in Colorado; Durango (CO) Police Department; La Plata County (CO) Sheriff’s Office; Child Protective Services in Texas and Colorado; and, the National Center for Missing and Exploited Children assisted in this investigation. Assistant United States Attorneys Matthew Devlin and Michelle Fernald are prosecuting this case on behalf of the Government.
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Johnstown Heroin Dealer Sentenced to 2 Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to two years in prison and six years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Tony Charles Eppolito, 32.
According to information presented to the court, on Dec. 6, 2017, Eppolito distributed a quantity of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Eppolito.
Joaquin “El Chapo” Guzman, Sinaloa Cartel Leader, Convicted of Running a Continuing Criminal Enterprise and Other Drug-Related ChargesRead the Press Release
BROOKLYN, N.Y. – Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was convicted today by a federal jury in Brooklyn of being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy. Guzman Loera was convicted of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. The verdict followed a 12-week trial before United States District Judge Brian M. Cogan. Guzman Loera faces a mandatory sentence of life imprisonment.
Matthew G. Whitaker, Acting Attorney General; Richard P. Donoghue, United States Attorney for the Eastern District of New York; Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Uttam Dhillon, Acting Administrator, U.S. Drug Enforcement Administration (DEA); Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); Kirstjen Nielsen, Secretary, United States Department of Homeland Security; Derek Benner, Executive Associate Director, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Bryan T. Mullee, Acting U.S. Marshal, Eastern District of New York; and James P. O’Neill, Commissioner, New York City Police Department, announced the verdict.
The Evidence at Trial
As proven at trial, Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing vast quantities of cocaine, marijuana, methamphetamine and heroin in the United States. The evidence at trial, including testimony from 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings, detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014. Guzman Loera was repeatedly referred to by witnesses as one of the leaders of the Sinaloa Cartel.
Guzman Loera oversaw the smuggling of narcotics to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere. The billions of illicit dollars generated from drug sales in the United States were then clandestinely transported back to Mexico. Guzman Loera used “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico to enforce Sinaloa’s control of territories and to eliminate those who posed a threat to the Sinaloa Cartel.
Drug Trafficking
In the course of the decades-long drug trafficking conspiracy, the Sinaloa Cartel transported tens of thousands of kilograms of narcotics from Central and South America for distribution in the United States. Guzman Loera used various methods to transport the cartel’s narcotics into the United States, including submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Multiple witnesses testified about seizures by law enforcement officers of massive amounts of cocaine, heroin and marijuana linked to the Sinaloa Cartel. One of the largest seizures of drugs bound for the U.S. involved over seven tons of cocaine concealed in jalapeño cans.
The jury also heard recordings of Guzman Loera’s own damning words discussing his drug trafficking, corruption and violence. calls included Guzman Loera discussing sending “ice,” meaning methamphetamine, to Ohio, Tucson, Minneapolis and Los Angeles.
Communications Network
Guzman Loera also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. As an information technology engineer testified at trial, Guzman Loera paid him one million dollars to purchase and set up a network to enable the defendant to communicate via Internet with his drug-trafficking associates in Colombia, Ecuador, Canada and the United States without fear of being intercepted by law enforcement or his rivals. The witness devised a secret and secure system, consisting of encrypted cell phones and encrypted apps.
Cartel Violence
The success of the Sinaloa Cartel relied upon the use of violence to maintain their power throughout the region and beyond. Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and shoot members of rival drug organizations, at times carrying out acts of violence himself. A former hitman testified that Guzman Loera beat two men with a tree branch until their bodies “were completely like rag dolls,” before shooting the men and ordering their bodies to be tossed into a bonfire. The former hitman also testified that Guzman Loera interrogated a rival drug cartel member, shot him and ordered that he be buried alive. In an intercepted call, the jury heard Guzman Loera order one of his sicarios to kidnap rival cartel members, but not to kill them without first checking with him.
Weapons
The Sinaloa Cartel had unfettered access to weapons. A law enforcement witness showed the jury over 40 AK-47s that were seized in El Paso, Texas before they could be delivered to Guzman Loera in Mexico. Additionally, witnesses identified photographs of various weapons, including grenades and a rocket-propelled grenade launcher utilized by the Sinaloa Cartel. Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.”
Corruption
The evidence presented at trial demonstrated that to further the interests of the Sinaloa Cartel, Guzman Loera and his organization took advantage of a vast network of corrupt government officials. These officials ranged from local law enforcement officers, prison guards, state officials, high ranking members of the armed forces, as well as politicians. These corrupt officials assisted Guzman Loera and his organization in exchange for millions of dollars’ worth of bribery payments. For example, according to the testimony of several witnesses, in many instances, Guzman Loera and his workers were warned of pending law enforcement operations which allowed Guzman Loera to avoid capture on multiple occasions. In other instances, Guzman Loera, through his employees, paid officials to turn a blind eye to trafficking activities in an effort to facilitate the shipment of drugs, weapons and bulk cash.
Money Laundering
Guzman Loera’s lucrative drug trafficking business generated billions of dollars in illicit proceeds. Guzman Lorea used various methods to launder money including bulk cash smuggling from the United States to Mexico. One of the largest seizures was of $1.26 million seized from hidden compartments in a truck driven by Guzman Loera’s brother in Arizona in 1989. In addition to the bulk cash smuggling, Guzman Loera oversaw numerous shell companies, including a juice company and a fish flour company, to launder the cartel’s narcotics trafficking proceeds.
“I am pleased that the Department has brought Joaquin Guzman Loera (El Chapo) to justice by securing a conviction against this drug kingpin, who was a principal leader of the Sinaloa Cartel,” said Acting Attorney General Whitaker. “As was clear to the jury, Guzman Loera’s massive, multi-billion dollar criminal enterprise was responsible for flooding the streets of the United States with hundreds of tons of cocaine, as well as enormous quantities of other dangerous drugs such as heroin and methamphetamine. The trial evidence also overwhelmingly showed that Guzman’s unceasing efforts to expand his cartel’s control and consolidate its power left a wake of corruption and violence in communities in both Mexico and the United States. This case demonstrated the extraordinary reach of the U.S. government, our tenacity and commitment to pursuing kingpins like Guzman whom — if their power is unchecked — will, like Guzman, develop what for 25 years was an almost unstoppable capacity to move massive quantities of drugs into our country. Guzman had the capital to absorb huge losses and run his enterprise with impunity; the enormous power to corrupt; and the capability to employ violence on a massive scale. This case, and more importantly, this conviction serves as an irrefutable message to the kingpins that remain in Mexico, and those that aspire to be the next Chapo Guzman, that eventually you will be apprehended and prosecuted. Finally, this verdict demonstrates that the United States, working in close partnership with the Mexican government, will continue to bring all possible resources to bear in its fight against international drug traffickers and their violent organizations.”
“Guzman Loera’s bloody reign atop the Sinaloa Cartel has come to an end, and the myth that he could not be brought to justice has been laid to rest. Today, Guzman Loera has been held accountable for the tons of illegal narcotics he trafficked for more than two decades, the murders he ordered and committed, and the billions of dollars he reaped while causing incalculable pain and suffering to those devastated by his drugs,” stated EDNY United States Attorney Donoghue. “Today’s verdict is the culmination of the tireless work of countless brave members of law enforcement, here and abroad, and we congratulate them. The Department of Justice is committed to eradicating criminal organizations that fuel America’s drug epidemic, and our mission will continue until it is completed.”
“The conviction of former Sinaloa Cartel leader Joaquin Guzman Loera strips the power from a man who employed horrific acts of violence to infect communities, throughout the United States and abroad, with the venom of illicit drugs,” stated SDFL United States Attorney Fajardo Orshan. “Today’s verdict is a reminder to all, that our international borders do not protect narco-traffickers and the cartels’ criminal enterprises from federal prosecution. U.S. Attorney’s Offices across the nation stand united with our domestic and foreign law enforcement partners, as we continue our fight against transnational criminal organizations.”
“Today’s conviction of Joaquin “El Chapo” Guzman demonstrates the dedication and determination of the men and women of DEA to bring the world’s most dangerous and prolific drug trafficker to justice,” stated DEA Acting Administrator Dhillon. “Those who bring drugs and violence into the United States that destroy lives and communities will not be tolerated, nor evade our reach. The success of this case is a testament to the strength of our relationship with our Mexican counterparts. DEA will continue to pursue justice worldwide and protect Americans.”
“The reign of Joaquin Guzman Loera’s crime and violence has come to an end,” said FBI Director Christopher Wray. “As leader of the Sinaloa Cartel, Guzman Loera carried out and directed acts of brazen violence as he oversaw the import and distribution of vast amounts of illegal drugs throughout the United States. But today, through the steadfast determination and collective efforts of the FBI and our law enforcement partners both domestic and abroad, and due to our continuing partnership with the government of Mexico, justice has been served.”
“The guilty verdict against Joaquin Guzman Loera, one of the most violent and feared drug kingpins of our time, is a testament to the hard work and courage of America’s frontline law enforcement personnel, including ICE’s Homeland Security Investigations. They gathered substantial evidence over multiple investigations, which made his extradition to the United States and a successful prosecution possible,” stated United States Department of Homeland Security Secretary Nielsen. “Today’s verdict sends an unmistakable message to transnational criminals: you cannot hide, you are not beyond our reach, and we will find you and bring you to face justice. Like Guzman, you will suffer the consequences of your criminal behavior. I applaud the brave men and women at DHS who helped make this conviction possible and thank our interagency and international partners for their exceptional work.”
“HSI is committed to using our unique border authority to target and dismantle transnational criminal organizations responsible for trafficking narcotics and bringing violence into the United States,” said HSI Executive Associate Director Benner. “Through collaboration with local, federal and international law enforcement partners, HSI special agents were able to bring an end to Joaquin Guzman Loera’s criminal activities, and help ensure he was brought to justice.”
“The conviction of Joaquin “El Chapo” Guzman demonstrates what is possible when law enforcement works collectively and coordinates their efforts. The United States Marshals Service ensured the integrity of the judicial process in this case. From providing safe and secure detention and transportation of the world’s most notorious drug kingpin to ensuring the anonymity of the jury, protecting the judge, attorneys, witnesses and the public, the Marshals Service proudly played its important role in the process,” said Acting U.S. Marshal Mullee of the Eastern District of New York. “I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission. They are the talented men and women of the New York City Police Department, Federal Protective Service, 24th Civil Support Team of the New York National Guard, and the Federal Bureau of Prisons. The U.S. Marshals take our responsibility of protecting the federal judicial process very seriously. We must anticipate and deter threats, while continuously developing and employing innovative protective tactics. We carry out these responsibilities with precision every day across the country. The successful prosecution of Joaquin “El Chapo” Guzman stands as a shining example of our mission.”
“Just over two years ago, we announced the arrival of this notorious drug kingpin on U.S. soil, where he would face American justice and finally answer for his many years of illegal behavior. And today, I commend the members of the jury for their dedication to this important case, as well as the lawyers of the Eastern District and all of our domestic and foreign law-enforcement colleagues, who continue to be our great partners in so many efforts. In close cooperation with members of the DEA, the FBI, the U.S. Marshals Service, Homeland Security Investigations, the New York State Police and more, NYPD detectives on the Drug Enforcement Task Force tirelessly investigated Mr. Guzman Loera’s criminal enterprise for years,” stated NYPD Commissioner O’Neill. “Today’s guilty verdict shows that, collectively, we never shelve an unfinished case. He operated a drug-trafficking network responsible for perpetuating a murderous, toxic scourge that forever altered lives, tore apart families and netted billions of dollars in illicit revenue. I thank the investigators for their hard work, and I remind the people we serve that New York City and America will always stand with our colleagues around the world in the fight against any individual or criminal group that venerates illegal profit above all else.”When sentenced by Judge Cogan, Guzman Loera faces a mandatory life sentence without the possibility of parole for leading a continuing criminal enterprise, and a sentence of up to life imprisonment on the seven remaining drug counts. After the verdict, the government will seek a forfeiture money judgment for billions of dollars constituting the cartel’s illegal drug-trafficking proceeds.
The government’s case is being prosecuted by Assistant U.S. Attorneys Gina Parlovecchio, Andrea Goldbarg, Michael Robotti, Patricia Notopoulos and Hiral Mehta from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels and Lynn Kirkpatrick from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Michael Lang and Brett Reynolds of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.
The case was investigated by the DEA, ICE and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California and the District of New Hampshire. The Department of Justice Office of International Affairs also played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his extradition and prosecution would not have been possible. The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section, DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office, ICE HSI New York, ICE HSI Nogales, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Internal Revenue Service - Criminal Investigation, U.S. Bureau of Prisons, NYPD and New York State Police.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Joaquin “El Chapo’ Guzman, Sinaloa Cartel Leader, Convicted of Running A Continuing Criminal Enterprise and Other Drug-Related ChargesRead the Press Release
Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was convicted today by a federal jury in Brooklyn, New York of being a principal operator of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy. Guzman Loera was convicted of all 10 counts of a superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. The verdict followed a 12-week trial before U.S. District Judge Brian M. Cogan. Guzman Loera faces a mandatory sentence of life imprisonment at his sentencing scheduled on June 25.
Acting Attorney General Matthew G. Whitaker, U.S. Department of Homeland Security Secretary Kirstjen Nielsen, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), FBI Director Christopher Wray, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, announced the verdict.
The Evidence at Trial:
As proven at trial, Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing vast quantities of cocaine, marijuana, methamphetamine and heroin into the United States. The evidence at trial, including testimony from 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings, detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014. Guzman Loera was repeatedly referred to by witnesses as one of the leaders of the Sinaloa Cartel.
Guzman Loera oversaw the smuggling of narcotics to wholesale distributors in Arizona, Atlanta, Chicago, Los Angeles, Miami, New York, and elsewhere. The billions of illicit dollars generated from drug sales in the United States were then clandestinely transported back to Mexico. Guzman Loera also used “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico to enforce Sinaloa’s control of territories and to eliminate those who posed a threat to the Sinaloa Cartel.
Drug Trafficking
In the course of the decades-long drug trafficking conspiracy, the Sinaloa Cartel transported tens of thousands of kilograms of narcotics from Central and South America for distribution in the United States. Guzman Loera used various methods to transport the cartel’s narcotics into the United States, including submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Multiple witnesses testified about seizures by law enforcement officers of massive amounts of cocaine, heroin and marijuana linked to the Sinaloa Cartel. One of the largest seizures of drugs bound for the United States involved over seven tons of cocaine concealed in jalapeño cans.
The jury also heard recordings of Guzman Loera’s own damning words discussing his drug trafficking, corruption and violence. The calls included Guzman Loera discussing sending “ice,” meaning methamphetamine, to Los Angeles, California; Minneapolis, Minnesota; Ohio and Tucson, Arizona.
Communications Network
Guzman Loera also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. As an information technology engineer testified at trial, Guzman Loera paid him one million dollars to purchase and set up a network to enable the defendant to communicate via the internet with his drug trafficking associates in Colombia, Ecuador, Canada and the United States without fear of being intercepted by law enforcement or his rivals. The witness devised a secret and secure system, consisting of encrypted cell phones and encrypted apps.
Cartel Violence
The success of the Sinaloa Cartel relied upon the use of violence to maintain their power throughout the region and beyond. Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and shoot members of rival drug organizations, at times carrying out acts of violence himself. A former hitman testified that Guzman Loera beat two men with a tree branch until their bodies “were completely like rag dolls,” before shooting the men and ordering their bodies be tossed into a bonfire. The former hitman also testified that Guzman Loera interrogated a rival drug cartel member, shot him and ordered that he be buried alive. In an intercepted call, the jury heard Guzman Loera order one of his sicarios to kidnap rival cartel members, but not to kill them without first checking with him.
Weapons
The Sinaloa Cartel had unfettered access to weapons. A law enforcement witness showed the jury over 40 AK-47s that were seized in El Paso, Texas before they could be delivered to Guzman Loera in Mexico. Additionally, witnesses identifed photographs of various weapons, including grenades and a rocket-propelled grenade launcher utilized by the Sinaloa Cartel. Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.”
Corruption
The evidence presented at trial demonstrated that to further the interests of the Sinaloa Cartel, Guzman Loera and his organization took advantage of a vast network of corrupt government officials. These officials ranged from local law enforcement officers, prison guards, state officials, high ranking members of the armed forces, as well as politicians. These corrupt officials assisted Guzman Loera and his organization in exchange for millions of dollars’ worth of bribery payments. For example, according to the testimony of several witnesses, in many instances, Guzman Loera and his workers were warned of pending law enforcement operations which allowed Guzman Loera to avoid capture on multiple occasions. In other instances, Guzman Loera, through his employees, paid officials to turn a blind eye to trafficking activities in an effort to facilitate the shipment of drugs, weapons, and bulk cash.
Money Laundering
Guzman Loera’s lucrative drug trafficking business generated billions of dollars in illicit proceeds. Guzman Loera used various methods to launder money including bulk cash smuggling from the United States to Mexico. One of the largest seizures was of $1.26 million seized from hidden compartments in a truck driven by Guzman Loera’s brother in Douglas, Arizona in 1989. In addition to the bulk cash smuggling, Guzman Loera oversaw numerous shell companies, including a juice company and a fish flour company to launder the cartel’s narcotics trafficking proceeds.
“I am pleased that the Department has brought Joaquin Guzman Loera (El Chapo) to justice by securing a conviction against this drug kingpin, who was a principal leader of the Sinaloa Cartel,” said Acting Attorney General Whitaker. “As was clear to the jury, Guzman Loera’s massive, multi-billion dollar criminal enterprise was responsible for flooding the streets of the United States with hundreds of tons of cocaine, as well as enormous quantities of other dangerous drugs such as heroin and methamphetamine. The trial evidence also overwhelmingly showed that Guzman’s unceasing efforts to expand his cartel’s control and consolidate its power left a wake of corruption and violence in communities in both Mexico and the United States. This case demonstrated the extraordinary reach of the U.S. government, our tenacity and commitment to pursuing kingpins like Guzman whom if their power is unchecked — will, like Guzman, develop what for 25 years was an almost unstoppable capacity to move massive quantities of drugs into our country. Guzman had the capital to absorb huge losses and run his enterprise with impunity; the enormous power to corrupt; and the capability to employ violence on a massive scale. This case, and more importantly, this conviction serves as an irrefutable message to the kingpins that remain in Mexico, and those that aspire to be the next Chapo Guzman, that eventually you will be apprehended and prosecuted. Finally, this verdict demonstrates that the United States, working in close partnership with the Mexican government, will continue to bring all possible resources to bear in its fight against international drug traffickers and their violent organizations.”
“The guilty verdict against Joaquin Guzman Loera, one of the most violent and feared drug kingpins of our time, is a testament to the hard work and courage of America’s frontline law enforcement personnel, including ICE’s Homeland Security Investigations,” said DHS Secretary Nielsen. “They gathered substantial evidence over multiple investigations, which made his extradition to the United States and a successful prosecution possible. Today’s verdict sends an unmistakable message to transnational criminals: you cannot hide, you are not beyond our reach, and we will find you and bring you to face justice. Like Guzman, you will suffer the consequences of your criminal behavior. I applaud the brave men and women at DHS who helped make this conviction possible and thank our interagency and international partners for their exceptional work.”
“Guzman Loera’s bloody reign atop the Sinaloa Cartel has come to an end, and the myth that he could not be brought to justice has been laid to rest,” said U.S. Attorney Donoghue. “Today, Guzman Loera has been held accountable for the tons of illegal narcotics he trafficked for more than two decades, the murders he ordered and committed, and the billions of dollars he reaped while causing incalculable pain and suffering to those devastated by his drugs. Today’s verdict is the culmination of the tireless work of countless brave members of law enforcement, here and abroad, and we congratulate them. The Department of Justice is committed to eradicating criminal organizations that fuel America’s drug epidemic, and our mission will continue until it is completed.”
“The conviction of former Sinaloa Cartel leader Joaquin Guzman Loera strips the power from a man who employed horrific acts of violence to infect communities, throughout the United States and abroad, with the venom of illicit drugs,” said U.S. Attorney Fajardo Orshan. “Today’s verdict is a reminder to all, that our international borders do not protect narco-traffickers and the cartels’ criminal enterprises from federal prosecution. U.S. Attorney’s Offices across the nation stand united with our domestic and foreign law enforcement partners, as we continue our fight against transnational criminal organizations.”
“The reign of Joaquin Guzman Loera’s crime and violence has come to an end,” said FBI Director Wray. “As leader of the Sinaloa Cartel, Guzman Loera carried out and directed acts of brazen violence as he oversaw the import and distribution of vast amounts of illegal drugs throughout the United States. But today, through the steadfast determination and collective efforts of the FBI and our law enforcement partners both domestic and abroad, and due to our continuing partnership with the Government of Mexico, justice has been served.”
“Today’s conviction of Joaquin “El Chapo” Guzman demonstrates the dedication and determination of the men and women of DEA to bring the world’s most dangerous and prolific drug trafficker to justice,” said DEA Acting Administrator Dhillon. “Those who bring drugs and violence into the United States that destroy lives and communities will not be tolerated, nor evade our reach. The success of this case is a testament to the strength of our relationship with our Mexican counterparts. DEA will continue to pursue justice worldwide and protect Americans.”
“HSI is committed to using our unique border authority to target and dismantle transnational criminal organizations responsible for trafficking narcotics and bringing violence into the United States,” said HSI Executive Associate Director Benner. “Through collaboration with local, federal and international law enforcement partners, HSI special agents were able to bring an end to Joaquin Guzman Loera’s criminal activities, and help ensure he was brought to justice.”
“The conviction of Joaquin “El Chapo” Guzman demonstrates what is possible when law enforcement works collectively and coordinates their efforts,” said Acting U.S. Marshal Mullee. “The U.S. Marshals Service ensured the integrity of the judicial process in this case. From providing safe and secure detention and transportation of the world’s most notorious drug kingpin to ensuring the anonymity of the jury, protecting the judge, attorneys, witnesses and the public, the Marshals Service proudly played its important role in the process. I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission. They are the talented men and women of the New York City Police Department, Federal Protective Service, 24th Civil Support Team of the New York National Guard, and the Federal Bureau of Prisons. The U.S. Marshals take our responsibility of protecting the federal judicial process very seriously. We must anticipate and deter threats, while continuously developing and employing innovative protective tactics. We carry out these responsibilities with precision every day across the country. The successful prosecution of Joaquin “El Chapo” Guzman stands as a shining example of our mission.”
When sentenced by Judge Cogan, Guzman Loera faces a mandatory life sentence without the possibility of parole for leading a continuing criminal enterprise, and a sentence of up to life imprisonment on the seven remaining drug counts. After the verdict, the government will seek a forfeiture money judgment for billions of dollars constituting the cartel’s illegal drug-trafficking proceeds.
The government’s case is being prosecuted by U.S. Department of Justice Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Michael Lang and Brett Reynolds of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorneys Gina Parlovecchio, Andrea Goldbarg, Michael Robotti, Patricia Notopoulos and Hiral Mehta of the Eastern District of New York and Assistant U.S. Attorneys Adam Fels and Lynn Kirkpatrick of the Southern District of Florida.
The case was investigated by the DEA, HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican, and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California and the District of New Hampshire. The Department of Justice’s Office of International Affairs also played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his extradition and prosecution would not have been possible. The investigative efforts in this case were coordinated with the Department of Justice’s Special Operations Division, comprising of agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office; HSI New York, HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons, NYPD and New York State Police.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Joaquin 'El Chapo’ Guzman, Sinaloa Cartel Leader, Convicted of Running a Continuing Criminal Enterprise and Other Drug-Related ChargesRead the Press Release
Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was convicted today by a federal jury in Brooklyn, New York of being a principal operator of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy. Guzman Loera was convicted of all 10 counts of a superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. The verdict followed a 12-week trial before U.S. District Judge Brian M. Cogan. Guzman Loera faces a mandatory sentence of life imprisonment at his sentencing scheduled on June 25.
Acting Attorney General Matthew G. Whitaker, U.S. Department of Homeland Security Secretary Kirstjen Nielsen, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), FBI Director Christopher Wray, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, announced the verdict.
The Evidence at Trial:
As proven at trial, Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing vast quantities of cocaine, marijuana, methamphetamine and heroin into the United States. The evidence at trial, including testimony from 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings, detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014. Guzman Loera was repeatedly referred to by witnesses as one of the leaders of the Sinaloa Cartel.
Guzman Loera oversaw the smuggling of narcotics to wholesale distributors in Arizona, Atlanta, Chicago, Los Angeles, Miami, New York, and elsewhere. The billions of illicit dollars generated from drug sales in the United States were then clandestinely transported back to Mexico. Guzman Loera also used “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico to enforce Sinaloa’s control of territories and to eliminate those who posed a threat to the Sinaloa Cartel.
Drug Trafficking
In the course of the decades-long drug trafficking conspiracy, the Sinaloa Cartel transported tens of thousands of kilograms of narcotics from Central and South America for distribution in the United States. Guzman Loera used various methods to transport the cartel’s narcotics into the United States, including submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Multiple witnesses testified about seizures by law enforcement officers of massive amounts of cocaine, heroin and marijuana linked to the Sinaloa Cartel. One of the largest seizures of drugs bound for the United States involved over seven tons of cocaine concealed in jalapeño cans.
The jury also heard recordings of Guzman Loera’s own damning words discussing his drug trafficking, corruption and violence. The calls included Guzman Loera discussing sending “ice,” meaning methamphetamine, to Los Angeles, California; Minneapolis, Minnesota; Ohio and Tucson, Arizona.
Communications Network
Guzman Loera also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. As an information technology engineer testified at trial, Guzman Loera paid him one million dollars to purchase and set up a network to enable the defendant to communicate via the internet with his drug trafficking associates in Colombia, Ecuador, Canada and the United States without fear of being intercepted by law enforcement or his rivals. The witness devised a secret and secure system, consisting of encrypted cell phones and encrypted apps.
Cartel Violence
The success of the Sinaloa Cartel relied upon the use of violence to maintain their power throughout the region and beyond. Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and shoot members of rival drug organizations, at times carrying out acts of violence himself. A former hitman testified that Guzman Loera beat two men with a tree branch until their bodies “were completely like rag dolls,” before shooting the men and ordering their bodies be tossed into a bonfire. The former hitman also testified that Guzman Loera interrogated a rival drug cartel member, shot him and ordered that he be buried alive. In an intercepted call, the jury heard Guzman Loera order one of his sicarios to kidnap rival cartel members, but not to kill them without first checking with him.
Weapons
The Sinaloa Cartel had unfettered access to weapons. A law enforcement witness showed the jury over 40 AK-47s that were seized in El Paso, Texas before they could be delivered to Guzman Loera in Mexico. Additionally, witnesses identifed photographs of various weapons, including grenades and a rocket-propelled grenade launcher utilized by the Sinaloa Cartel. Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.”
Corruption
The evidence presented at trial demonstrated that to further the interests of the Sinaloa Cartel, Guzman Loera and his organization took advantage of a vast network of corrupt government officials. These officials ranged from local law enforcement officers, prison guards, state officials, high ranking members of the armed forces, as well as politicians. These corrupt officials assisted Guzman Loera and his organization in exchange for millions of dollars’ worth of bribery payments. For example, according to the testimony of several witnesses, in many instances, Guzman Loera and his workers were warned of pending law enforcement operations which allowed Guzman Loera to avoid capture on multiple occasions. In other instances, Guzman Loera, through his employees, paid officials to turn a blind eye to trafficking activities in an effort to facilitate the shipment of drugs, weapons, and bulk cash.
Money Laundering
Guzman Loera’s lucrative drug trafficking business generated billions of dollars in illicit proceeds. Guzman Loera used various methods to launder money including bulk cash smuggling from the United States to Mexico. One of the largest seizures was of $1.26 million seized from hidden compartments in a truck driven by Guzman Loera’s brother in Douglas, Arizona in 1989. In addition to the bulk cash smuggling, Guzman Loera oversaw numerous shell companies, including a juice company and a fish flour company to launder the cartel’s narcotics trafficking proceeds.
“I am pleased that the Department has brought Joaquin Guzman Loera (El Chapo) to justice by securing a conviction against this drug kingpin, who was a principal leader of the Sinaloa Cartel,” said Acting Attorney General Whitaker. “As was clear to the jury, Guzman Loera’s massive, multi-billion dollar criminal enterprise was responsible for flooding the streets of the United States with hundreds of tons of cocaine, as well as enormous quantities of other dangerous drugs such as heroin and methamphetamine. The trial evidence also overwhelmingly showed that Guzman’s unceasing efforts to expand his cartel’s control and consolidate its power left a wake of corruption and violence in communities in both Mexico and the United States. This case demonstrated the extraordinary reach of the U.S. government, our tenacity and commitment to pursuing kingpins like Guzman whom — if their power is unchecked — will, like Guzman, develop what for 25 years was an almost unstoppable capacity to move massive quantities of drugs into our country. Guzman had the capital to absorb huge losses and run his enterprise with impunity; the enormous power to corrupt; and the capability to employ violence on a massive scale. This case, and more importantly, this conviction serves as an irrefutable message to the kingpins that remain in Mexico, and those that aspire to be the next Chapo Guzman, that eventually you will be apprehended and prosecuted. Finally, this verdict demonstrates that the United States, working in close partnership with the Mexican government, will continue to bring all possible resources to bear in its fight against international drug traffickers and their violent organizations.”
“The guilty verdict against Joaquin Guzman Loera, one of the most violent and feared drug kingpins of our time, is a testament to the hard work and courage of America’s frontline law enforcement personnel, including ICE’s Homeland Security Investigations,” said DHS Secretary Nielsen. “They gathered substantial evidence over multiple investigations, which made his extradition to the United States and a successful prosecution possible. Today’s verdict sends an unmistakable message to transnational criminals: you cannot hide, you are not beyond our reach, and we will find you and bring you to face justice. Like Guzman, you will suffer the consequences of your criminal behavior. I applaud the brave men and women at DHS who helped make this conviction possible and thank our interagency and international partners for their exceptional work.”
“Guzman Loera’s bloody reign atop the Sinaloa Cartel has come to an end, and the myth that he could not be brought to justice has been laid to rest,” said U.S. Attorney Donoghue. “Today, Guzman Loera has been held accountable for the tons of illegal narcotics he trafficked for more than two decades, the murders he ordered and committed, and the billions of dollars he reaped while causing incalculable pain and suffering to those devastated by his drugs. Today’s verdict is the culmination of the tireless work of countless brave members of law enforcement, here and abroad, and we congratulate them. The Department of Justice is committed to eradicating criminal organizations that fuel America’s drug epidemic, and our mission will continue until it is completed.”
“The conviction of former Sinaloa Cartel leader Joaquin Guzman Loera strips the power from a man who employed horrific acts of violence to infect communities, throughout the United States and abroad, with the venom of illicit drugs,” said U.S. Attorney Fajardo Orshan. “Today’s verdict is a reminder to all, that our international borders do not protect narco-traffickers and the cartels’ criminal enterprises from federal prosecution. U.S. Attorney’s Offices across the nation stand united with our domestic and foreign law enforcement partners, as we continue our fight against transnational criminal organizations.”
“The reign of Joaquin Guzman Loera’s crime and violence has come to an end,” said FBI Director Wray. “As leader of the Sinaloa Cartel, Guzman Loera carried out and directed acts of brazen violence as he oversaw the import and distribution of vast amounts of illegal drugs throughout the United States. But today, through the steadfast determination and collective efforts of the FBI and our law enforcement partners both domestic and abroad, and due to our continuing partnership with the Government of Mexico, justice has been served.”
“Today’s conviction of Joaquin “El Chapo” Guzman demonstrates the dedication and determination of the men and women of DEA to bring the world’s most dangerous and prolific drug trafficker to justice,” said DEA Acting Administrator Dhillon. “Those who bring drugs and violence into the United States that destroy lives and communities will not be tolerated, nor evade our reach. The success of this case is a testament to the strength of our relationship with our Mexican counterparts. DEA will continue to pursue justice worldwide and protect Americans.”
“HSI is committed to using our unique border authority to target and dismantle transnational criminal organizations responsible for trafficking narcotics and bringing violence into the United States,” said HSI Executive Associate Director Benner. “Through collaboration with local, federal and international law enforcement partners, HSI special agents were able to bring an end to Joaquin Guzman Loera’s criminal activities, and help ensure he was brought to justice.”
“The conviction of Joaquin “El Chapo” Guzman demonstrates what is possible when law enforcement works collectively and coordinates their efforts,” said Acting U.S. Marshal Mullee. “The U.S. Marshals Service ensured the integrity of the judicial process in this case. From providing safe and secure detention and transportation of the world’s most notorious drug kingpin to ensuring the anonymity of the jury, protecting the judge, attorneys, witnesses and the public, the Marshals Service proudly played its important role in the process. I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission. They are the talented men and women of the New York City Police Department, Federal Protective Service, 24th Civil Support Team of the New York National Guard, and the Federal Bureau of Prisons. The U.S. Marshals take our responsibility of protecting the federal judicial process very seriously. We must anticipate and deter threats, while continuously developing and employing innovative protective tactics. We carry out these responsibilities with precision every day across the country. The successful prosecution of Joaquin “El Chapo” Guzman stands as a shining example of our mission.”
When sentenced by Judge Cogan, Guzman Loera faces a mandatory life sentence without the possibility of parole for leading a continuing criminal enterprise, and a sentence of up to life imprisonment on the seven remaining drug counts. After the verdict, the government will seek a forfeiture money judgment for billions of dollars constituting the cartel’s illegal drug-trafficking proceeds.
The government’s case is being prosecuted by U.S. Department of Justice Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Michael Lang and Brett Reynolds of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorneys Gina Parlovecchio, Andrea Goldbarg, Michael Robotti, Patricia Notopoulos and Hiral Mehta of the Eastern District of New York and Assistant U.S. Attorneys Adam Fels and Lynn Kirkpatrick of the Southern District of Florida.
The case was investigated by the DEA, HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican, and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California and the District of New Hampshire. The Department of Justice’s Office of International Affairs also played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his extradition and prosecution would not have been possible. The investigative efforts in this case were coordinated with the Department of Justice’s Special Operations Division, comprising of agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office; HSI New York, HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons, NYPD and New York State Police.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Jamaican National Pleads Guilty to Financial Structuring and is Sentenced, Will be Turned over to ICERead the Press Release
PITTSBURGH, PA- A resident of Pittsburgh, Pennsylvania, pleaded guilty to a charge of structuring transactions to evade currency transaction reporting requirements, and was sentenced in federal court to time served, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ashani Ishmael Levy, 22, a Jamaican national who had been detained since his arrest on November 21, 2018. According to the information presented to the court, from July 17, 2018 to November 14, 2018, Levy possessed in excess of $10,000 in United States currency, and transferred the funds through 23 separate wire transactions at Western Union and MoneyGram, each in an amount of less than $1,000, in order to prevent the financial institutions from filing a Currency Transaction Report with the federal government, as required. The wire transfers totaled $14,955.
Levy will be turned over to U.S. Immigration and Customs Enforcement who lodged a detainer at the time of his arrest because he had overstayed his tourist visa.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Levy.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Courtney Kentrell Chapman, 29, of Jackson, pled guilty yesterday before U.S. District Judge Henry T. Wingate to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana K. Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Chapman was previously convicted of multiple felonies in Hinds County, including being an accessory after the fact to carjacking, felony eluding, and possession of a controlled substance while armed. On August 15, 2018, Chapman was found in possession of a firearm during an administrative checkpoint in Jackson.
Chapman will be sentenced by Judge Wingate on May 13, 2019 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, a nationally-recognized initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Jackson Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Individual Charged in White Plains with Murder of 24-Year-Old VictimRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Anthony A. Scarpino, Jr., the Westchester County District Attorney, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Joseph F. Schaller, Commissioner of the New Rochelle Police Department, and James J. Heavey, Town of Greenwich Chief of Police, announced today the arrest of JAVIER ENRIQUE DA SILVA ROJAS (the “defendant” or “Da Silva”), who was charged by complaint with the kidnapping of Valerie Reyes (the “Victim”) in New Rochelle, New York, and unlawfully transporting her to Greenwich, Connecticut. The defendant was arrested in Flushing, Queens, on February 11, 2019, and was presented in White Plains federal court before the U.S. Magistrate Judge Lisa Margaret Smith today.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Javier Da Silva is charged with committing a gruesome kidnapping that resulted in the death of a young woman. Thanks to the excellent work of the FBI and its local law enforcement partners, Da Silva will need to answer for his alleged actions in court.”
District Attorney Anthony A. Scarpino, Jr. said: “From the start of this investigation into the death of Valerie Reyes, the Westchester County District Attorney’s Office has worked closely with Greenwich and New Rochelle Police Departments and the Connecticut State’s Attorney. The Assistant District Attorney and investigators assigned to the case worked tirelessly in an effort to bring swift justice for the victim of this horrendous crime and her family here in Westchester. We will continue to work with our law enforcement partners, including the FBI and the U.S. Attorney for the Southern District, to ensure the strength of the case.”
FBI Assistant Director William F. Sweeney Jr. said: “Together with our partners from the Greenwich and New Rochelle Police Departments, we were able to swiftly identify Javier Da Silva, an alleged murderer, and place him behind bars. But while today’s arrest is certainly a welcome conclusion, it in no way alleviates the pain and suffering Valerie’s family will continue to feel for years to come. The reality of their situation is utterly unimaginable, as is the crime with which Da Silva is charged.”
New Rochelle Deputy Police Chief Robert Gazzola said: “The arrest of Javier Da Silva is a result of the outstanding work and cooperation between members of the New Rochelle Police Department, the Greenwich Police Department, and the F.B.I. Safe Streets Task Force. This was a complicated case, and the efforts of the members who worked tirelessly on it should be applauded. I hope that this arrest will bring some degree of closure to the family of Valerie Reyes.”
Town of Greenwich Chief of Police James J. Heavey said: “From the moment Valerie was found in Greenwich, detectives from New Rochelle and Greenwich have worked tirelessly pursuing multiple investigative leads. We are pleased that this investigation and subsequent prosecution may bring justice for Valerie and some level of peace to her family. The New Rochelle and Greenwich communities can be proud of the collaborative work of their detectives and how they brought this investigation to a successful conclusion.”
According to the allegations in the Complaint unsealed in White Plains federal court:[1]
On or about January 30, 2019, the Victim was reported missing to the New Rochelle Police Department by her mother, father, and boyfriend. A few days later, on or about February 5, 2019, her body was recovered in a suitcase alongside a public road in the Town of Greenwich, Connecticut.
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DA SILVA, 24, of Flushing, Queens, is charged with one count of kidnapping resulting in death, which carries a sentence of death or life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the FBI Westchester County Safe Streets Task Force, the FBI New Haven Division, the New Rochelle Police Department, the Greenwich Police Department, the Westchester County District Attorney’s Office, the Westchester County Department of Public Safety, and the Westchester County Real Time Crime Center.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Mathew Andrews and Sam Adelsberg are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Holden Man Sentenced to 20 Months for Marijuana Conspiracy and StructuringRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Christopher Ruhlin, 49, of Holden, Maine, was sentenced today in U.S. District Court by Chief Judge Jon D. Levy to 20 months in prison and three years of supervised release for conspiring to manufacture, distribute, and possess with intent to distribute marijuana and structuring financial transactions. He was also ordered to forfeit $115,000. He pled guilty to the charges on June 18, 2018.
According to court records, between October 2010 and August 2016, the defendant conspired with others to illegally manufacture and distribute marijuana. From about December 2010 until November 2013, the defendant leased a facility in Frankfort, Maine at which he and other conspirators grew and distributed marijuana. In about May of 2014, other conspirators took over growing, processing and packaging marijuana at the Frankfort facility. They sold it to the defendant and he sold it at his business, the Owl’s Club, in downtown Bangor.
In May 2016, agents searched the Frankfort facility and seized marijuana in various stages of harvest and cultivation, together with paraphernalia and items used to manufacture and process marijuana. On July 20, 2016, July 28, 2016, and August 10, 2016, respectively, a witness working with law enforcement purchased marijuana at the Owl’s Club. In August 2016, agents searched property in downtown Bangor, including the Owl’s Club, and seized over three pounds of processed marijuana.
In imposing sentence, Judge Levy concluded that Ruhlin’s conduct violated both state and federal law. In 2010 Ruhlin had sought, but had been denied, a license to operate a medical marijuana dispensary in the state. Judge Levy noted that Ruhlin was “operating the Owl’s Club as the dispensary that he was denied a license to operate by the state” and said that “the unregulated sale of marijuana is dangerous. Simple as that.”
Under federal law, financial institutions that receive more than $10,000 in cash from a customer are required to report the transaction to the Internal Revenue Service (IRS). Structuring occurs when a customer breaks up their cash transactions to avoid these cash transaction reporting and record-keeping requirements. On May 28, 2013, Ruhlin structured $27,000 in cash into two bank accounts by dividing it into three $9,000 deposits in order to evade federal reporting and record keeping requirements.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Hedge Fund Founder Sentenced to 30 Months in Connection with Bribery of Former Correction Officers Union LeaderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MURRAY HUBERFELD was sentenced to 30 months in prison for his role in a scheme to submit false paperwork to Platinum Partners (“Platinum”), a hedge fund founded by HUBERFELD, in order to facilitate a bribe to Norman Seabrook, the former president of the nation’s largest municipal correction officers union. HUBERFELD previously pled guilty to conspiring to commit wire fraud and thereby causing Platinum to fund a $60,000 bribe payment to Seabrook, which HUBERFELD intentionally concealed by falsely documenting the payment as one for courtside tickets to New York Knicks basketball games. As a result of the bribe, Seabrook caused the investment of millions of dollars of union funds into Platinum. Today’s sentence was imposed by U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Not content with being a successful businessman, Murray Huberfeld sought to grow his fund through fraud and deception, playing a critical role in a pernicious kickback scheme. His conduct was not only corrupt and criminal, but led to the loss of millions of dollars of union retirement benefits. The sentence imposed today reflects the magnitude of his crimes and untold pain his conduct caused to others.”
According to the Superseding Information, Superseding Indictment, Indictment, and Complaint filed in this case, other public filings, statements made during the plea proceeding, and evidence and testimony presented at trial proceedings in the fall of 2017 and the summer of 2018:
HUBERFELD was a founder of Platinum, a hedge fund that he had founded and continued to control unofficially even after his formal affiliation with the fund had ceased. In late 2013, HUBERFELD and Jona Rechnitz, an acquaintance and real estate businessman, sought to attract public and institutional investors to the fund. In late 2013, Rechnitz told HUBERFELD that a contact of his – Norman Seabrook president of the Correction Officers’ Benevolent Association (“COBA” or the “Union”) – would likely invest COBA money in Platinum if HUBERFELD were willing to pay Seabrook money. Over the next few months, Seabrook caused COBA to invest approximately $20 million of its funds into Platinum, including $15 million from a retirement benefits program funded by the City of New York that invests money for correction officers’ retirements.
In or around December 2014, arrangements were made to pay Seabrook for the millions of dollars the Union had invested over the course of that year. Rechnitz paid Seabrook $60,000 in cash, delivered to Seabrook in a men’s luxury handbag. HUBERFELD and Rechnitz arranged for Platinum’s management company to receive a fraudulent invoice for $60,000 – generated by Rechnitz – that, on its face, billed Platinum for seven pairs of courtside tickets to New York Knick games given to Platinum by Rechnitz, who owned Knicks season tickets. In truth, and as HUBERFELD knew, the reason given to Platinum was false, and no Knicks tickets had changed hands. The real purpose of the payment was to reimburse Rechnitz, who had paid Seabrook for his efforts in securing COBA’s investments. Three days later, Platinum issued Rechnitz a $60,000 check. Over the next few months, Rechnitz, HUBERFELD, and Jeremy Reichberg, another co-conspirator, continued to work together to lobby Seabrook for more money. However, after a lawsuit filed by a former COBA board member referred to the Platinum investments, and the U.S. Attorney’s Office grand jury investigation resulted in subpoenas to Platinum and COBA in May 2015, no further investments were made. Ultimately, Platinum collapsed, and COBA lost $19 million of its investment.
Seabrook was convicted of honest services fraud and conspiracy on August 18, 2018, after a 10-day trial in Manhattan federal court. On February 8, 2019, Judge Hellerstein sentenced Seabrook to 58 months in prison and ordered him to pay restitution in the amount of $19 million.
On January 2, 2019, Reichberg was found guilty of honest services fraud, conspiracy, and obstruction of justice in connection with a separate scheme in which he and Rechnitz provided gifts and benefits to a number of high-level officers of the New York City Police Department (“NYPD”) in exchange for official police action for themselves and their associates. He is due to be sentenced by U.S. District Judge Gregory H. Woods on April 4, 2019.
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In addition to the prison term, HUBERFELD, 58, of Lawrence, New York, was sentenced to three years of supervised release, and ordered to pay restitution in the amount of $19 million.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Division.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin S. Bell, Russell Capone, and Lara Pomerantz are in charge of the prosecution.
Glendale Man Sentenced to Prison for Assaulting BabyRead the Press Release
PHOENIX – Yesterday, Dillon Colton Wilson, 26, of Glendale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 21 months in prison followed by 3 years of supervised release. Wilson had previously pleaded guilty to assault resulting in serious bodily injury.
Wilson admitted that while caring for the five-month-old infant victim in the Ak-Chin Indian Community, he forcefully jerked the victim by the left arm, resulting in a complete, mid-shaft break of the upper arm. Wilson is an enrolled member of the Tohono O’Odham Nation.
The investigation in this case was conducted by the Ak-Chin Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-606-PHX-SPL
RELEASE NUMBER: 2019-011_Wilson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Garden City Man with Prison Record Sentenced for Carrying a GunRead the Press Release
WICHITA, KAN. – A Garden City man with a state prison record was sentenced Tuesday to 87 months in federal prison for carrying a gun, U.S. Attorney Stephen McAllister said.
Darnell Wilks, 49, Garden City, Kan., pleaded guilty to one count of unlawful possession of a firearm by a convicted felon.
A Garden City police officer arrested Wilks in March 2017. The officer saw Wilks walking down the middle of west Kansas Ave. and stopped to talk to him. Seeing the officer, Wilks ran away. During the chase, Wilks threw down a .45 caliber handgun. He was prohibited from possessing a firearm because he was convicted in 2014 in Finney County District Court on a charge of making a criminal threat.
The case was prosecuted under the Justice Department’s Project Safe Neighborhoods initiative. McAllister commended the Garden City Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
Four More Defendants Plead Guilty in Local Crips Gang CaseRead the Press Release
COLUMBUS, Ohio – A total of five of 19 Columbus men charged federally as being associated with a local Crips gang has pleaded guilty. The men were indicted in September 2018 and charged in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes.
Terrance Pyfrom, 21, Derrick Thornton, 29, and Donovan Reed, 26, all pleaded guilty today. Reed pleaded to one count of conspiring to distribute crack cocaine. Andrew Harris, 30, pleaded guilty on February 7. He and Thornton pleaded guilty to one count of conspiring to distribute more than 100 grams of heroin. Dominique Bryant, 26, pleaded guilty on January 15. He and Pyfrom pleaded guilty to one count of participating in the racketeering conspiracy.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Roland Herndon, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Interim Columbus Police Chief Tom Quinlan, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the pleas entered into before U.S. District Judge Michael H. Watson.
According to court documents, the defendants are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
The boundaries of the gang’s territory are marked by Mt. Vernon Avenue to the south, Leonard Avenue to the north, Taylor Avenue to the east and St. Clair Avenue to the west.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
T&A engaged in a long-term operation of consistent transportation of heroin and crack from Columbus to Portsmouth, Ohio, for sale in various “trap houses.” In the summer of 2015, T&A, under the leadership of Eric Henderson, Sr., began to deliver large amounts of heroin, crack, and oxycodone from Columbus to Portsmouth on a weekly basis. Female associates and drug-addicted “mules” transported the drugs at the direction of T&A members and associates. The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members, including Thornton and Harris. According to their pleas, between the summer of 2015 and September 2018, Thornton and Harris were personally responsible for distributing and possessing with intent to distribute between 100 grams and 400 grams of heroin as part of T&A’s Portsmouth Drug Operations. The proceeds from the drug sales in Portsmouth were then used to purchase firearms that were used in ongoing gang wars with rival gangs in Columbus.
Likewise, in the summer of 2015, T&A members began to deliver large amounts of crack and oxycodone from Columbus to Huntington, W.Va. on a weekly basis. The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members, including Reed. Reed was personally responsible for distributing and possessing with intent to distribute between 28 grams and 112 grams of crack as part of T&A’s West Virginia Drug Operation.
Pyfrom admitted to shooting at members of the Easthaven Bloods gang on August 8, 2014, after a drive-by shooting. He also admitted to selling crack cocaine and sharing firearms and “trap” houses in order to facilitate the sale of the drug.
Others charged in this case include:
Name
Also Known As
Age
Charles Carson
23
Jonathan Dantzler
Jesus
26
Terrell Hansard
T Body
21
Eric Henderson, Jr.
Lil Go, Little E
19
Eric Henderson, Sr.
Easy
39
Michael Henderson
Bang
20
Steve Henderson, Jr.
Big Go, Tana
25
Brandon Martin
Gunner
26
Lee Devine McCrae
Capone
22
Shawn Nelms
Mook
25
Deswan Robinson
Dezzy
25
Thomas Seals
Bhomo
24
Marcus Walton
Ox, Wax
35
Michael Watson
Sossa
25
U.S. Attorney Glassman commended the investigation of this case by ATF, FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers, Kevin W. Kelley and Noah R. Litton, who are prosecuting the case.
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Fort Myers Pain Management Physician Sentenced to Eighteen Months in Prison in Kickback SchemeRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell today sentenced Dr. Michael Frey (46, Fort Myers) to 18 months in federal prison for conspiracy to receive healthcare kickbacks. Frey had pleaded guilty in June 2018. In addition to his guilty plea, Frey previously agreed to a civil settlement in which he will pay $2.8 million to the United States to resolve allegations that he violated the False Claims Act in a number of ways, including receiving illegal kickbacks and by ordering medically unnecessary laboratory tests.
During the time of the conspiracy, Frey was a practicing interventional pain management specialist and one of the two principal owners of Advanced Pain Management Specialists, P.A., which is located in Fort Myers.
According to the plea agreement, beginning in 2010, Frey conspired with the owners of A&G Spinal Solutions, LLC, a durable medical equipment provider operating in Fort Myers, to receive compensation in exchange for referrals to A&G Spinal. Frey was paid a percentage of A&G Spinal’s profits based on his referrals and the referrals from other Advanced Pain providers. A&G Spinal compensated Frey through checks made payable to his wife. Through this arrangement, A&G Spinal created the impression that Mrs. Frey was an employee of A&G Spinal, when she was not.
The two principals of A&G Spinal, Ryan Williamson and William Pierce, previously pleaded guilty and have been sentenced to one year and nine months in prison, respectively, for conspiring to pay healthcare kickbacks to Frey.
In addition, from 2013 to 2015, Frey also received cash payments from Ryan Williamson in exchange for referrals of compound pharmaceutical pain cream prescriptions.
In his plea agreement, Frey also admitted that he had received kickbacks in the form of “speaker fees” paid to him in connection with his participation in largely bogus Insys Therapeutics, Inc. speaker event programs. Insys manufactures a fentanyl sublingual spray known as SUBSYS. Insys paid kickbacks to Frey to induce him to write prescriptions for their product.
“This sentencing of a medical provider who defrauded the Department of Defense TRICARE program should serve as a stern warning to any medical practitioners who believe they can get away with schemes to waste and divert precious taxpayer dollars for their personal gain,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “DCIS continues to protect the integrity of all critical DoD programs by aggressively investigating those who violate the law, and bringing them to justice.”
“Dr. Frey allowed bribes and greed to guide his decision making instead of his obligation to his patients,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s sentencing demonstrates that the OIG and our partners will hold accountable those intent on fraudulently lining their own pockets with precious tax dollars from government health care programs.”
This case was prosecuted by Assistant United States Attorneys Simon Eth and Rachel K. Jones, with assistance from the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services–Office of Inspector General, and the U.S. Postal Service–Office of Inspector General.
Today’s resolution illustrates the government’s commitment to combating improper practices that implicate the nation’s federally subsidized health care programs, using all statutory and common law remedies available to address such schemes. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Former Taneytown Police Chief Pleads Guilty to Illegal Transfer and Possession of a Machine GunRead the Press Release
Baltimore, Maryland – William E. Tyler, age 55, of Fairfield, Pennsylvania, pleaded guilty today to the illegal transfer and possession of a machine gun. Tyler is the former Chief of Police in Taneytown, Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his guilty plea, in 2017 Tyler transferred two machine guns owned by and registered to the Taneytown Police Department to himself and another officer, for their personal use. Tyler did not attempt to report the transfer of the machine guns to the ATF’s National Firearms Act (NFA) Division, which is responsible for maintaining registration and transfer information about all NFA weapons in accordance with federal law.
On January 15, 2019, law enforcement executed search warrants at the residences of Tyler and the officer and recovered the machine guns. Tyler was interviewed by the FBI and ATF, and was warned that it is a crime to make a materially false statement or representation to federal agents. Despite the warning, Tyler lied when he told agents that he had never fired the .223-caliber machine gun and did not know it was automatic, when in fact he had fired the weapon.
As a result of his guilty plea, Tyler must forfeit assets obtained as a result of, or used to facilitate the commission of his illegal activities, including the two .223-caliber machine guns.
Tyler faces a maximum sentence of 10 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for June 14, 2019 at 2:00 p.m.
United States Attorney Robert K. Hur commended the FBI and ATF for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting the case.
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Former State Senator Carlos Uresti Sentenced to Federal Prison for BriberyRead the Press Release
In San Antonio this afternoon, a federal judge sentenced former District 19 Texas State Senator Carlos I. Uresti to five years in federal prison for bribery, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
Senior U.S. District Judge David A. Ezra ordered that the five-year prison term run concurrent to the 12-year federal prison sentence he handed down to Uresti in the Fourwinds case on June 26, 2018. Judge Ezra also ordered that Uresti pay restitution in the amount of $876,000 and that he be placed on supervised release for a period of three years after completing his prison term. Judge Ezra also ordered that Uresti surrender to federal authorities next Tuesday to begin serving his prison term.
“This sentence makes clear that we will not tolerate corruption by elected officials. It is one of my top priorities to root out corruption in Texas government,” stated U.S. Attorney Bash.
On October 12, 2018, Uresti pleaded guilty to one count of conspiracy to commit bribery. By pleading guilty, Uresti admitted that from January 2006 to September 2016, he conspired with others to facilitate the payment of bribes to former Reeves County Judge Jimmy Galindo in exchange for Judge Galindo’s official actions concerning a Reeves County Correctional Center medical services contract. Uresti further admitted to collecting $10,000 a month as a marketing consultant. Approximately half of that sum was then given to Judge Galindo as a facilitation of the bribe and for his support to award the contract to a specific company at a more favorable price to that company.
In June 2017, Galindo pleaded guilty to the same conspiracy charge. Galindo, who faces up to five years in federal prison, is scheduled for sentencing at 9:00am on February 26, 2019.
“Communities have a right to expect that their elected leaders are ethical, trustworthy, and responsible, only representing the best interests of their constituents. Carlos Uresti betrayed the trust bestowed on him as public official. The sentence imposed reflects the gravity of his crime. The FBI, its law enforcement partners, and the U.S. Attorney's Office will continue to root out such graft in order to ensure that the citizens of South Texas receive honest representation by their elected officials,” stated FBI Special Agent in Charge Combs.
On June 26, 2018, Uresti was sentenced to 12 years in federal prison and ordered to pay more than $6.3 million in restitution. A jury convicted Uresti on various federal charges regarding his role in an investment Ponzi scheme centered on a company which purportedly bought and sold fracking sand for oil production, FourWinds, Inc.
The jury found that Uresti recruited investors under false pretenses by lying about investing his own money in FourWinds as well as failing to disclose his receipt of a commission and a percentage of the profits resulting from investments in FourWinds. Jurors also found that Uresti was not registered as a broker with the Securities and Exchange Commission (SEC) and that he and others engaged in money laundering with the proceeds of their fraud scheme.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force includes investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant U.S. Attorneys Joseph E. Blackwell and Sean O’Connell are prosecuting this case on behalf of the Government.
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Former Jourdanton Bank Teller Sentenced to Prison for Bank Fraud, Aggravated Identity Theft and False Statement on Income Tax ReturnRead the Press Release
In San Antonio today, a federal judge sentenced a Poteet, TX, woman to 61 months in federal prison for a scheme to steal more than $830,000 from a bank in Jourdanton, announced United States Attorney John F. Bash, Acting IRS-Criminal Investigation Special Agent in Charge Ramsey Covington, Houston Field Office, and U.S. Secret Service Special Agent in Charge Paul A. Duran, San Antonio Field Office.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered 31-year-old Jennifer Trevino to pay $821,579.18 in restitution for bank fraud plus. Judge Ezra also ordered that Trevino be placed under supervised release for a period of five years after completing her prison term and as a special condition of her supervised release, she must pay the tax loss amount to the IRS which is currently estimated to be more than $187,000.
On May 30, 2018, Trevino pleaded guilty to three counts of bank fraud, one count of Aggravated Identity Theft and one count of making a false statement on a federal income tax return. According to court records, Trevino was employed by First Commerce Bank (formerly Jourdanton State Bank) first as a teller, then as a Loan Specialist. By pleading guilty, Trevino admitted to making unauthorized cash withdrawals from FCB accounts, without the knowledge of the account holders, and depositing the funds into accounts which she controlled. Trevino also admitted that she underreported her total income on her 2016 Individual Income Tax Return by more than $330,000.
“An important mission of federal law enforcement is to protect the integrity of the banking system. Today’s sentence reflects our commitment to keeping that system secure,” stated U.S. Attorney Bash.
“The Secret Service and our South Texas Regional Task Force is committed to collaborating with our law enforcement partners and prosecutors, ensuring individuals who violate their positions of trust and access to illegally enrich themselves will be appropriately investigated and prosecuted. Today’s sentencing is one of many examples of the dedicated efforts made by task force agents, and we hope will act as a deterrent to like-minded criminals and their conspirators that stealing from innocent victims will not go unpunished,” stated U.S. Secret Service SAC Duran.
“Today’s sentencing of Jennifer Trevino should alert others thinking about participating in fraudulent schemes, such as bank fraud, aggravated identity theft and failing to report all forms of income that they should stop in their tracks and simply look at the consequences of taking the next step,” said Acting Special Agent in Charge Ramsey Covington, Houston Field Office. “Those consequences will include going to prison, being branded a convicted felon for the rest of their lives, and paying back all the taxes owed plus steep penalties and interest.”
Special agents with IRS-Criminal Investigation and the U.S. Secret Service conducted this investigation. Assistant U.S. Attorney Thomas Moore prosecuted this case on behalf of the Government.
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Former Government Contracting Officer Representative Sentenced to 60 Months in Prison for Conspiracy and BriberyRead the Press Release
PENSACOLA, FLORIDA – Jerry T. Vertefeuille, 54, of Niceville, was sentenced today to 60 months in prison. Co-defendant Christopher A. Carter, 37, of Fort Walton Beach, is scheduled to be sentenced on Friday, February 15, at 11:00 a.m. CST. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
On July 11, 2018, Vertefeuille pleaded guilty to conspiracy (to commit theft of honest services and wire fraud), bribery of a public official, and obtaining and disclosing procurement information.
Vertefeuille was a federal government contracting officer representative for the 96 Test Wing Maintenance Group (96 MXG) at Eglin Air Force Base. His duties included overseeing maintenance work and initially approving purchases and invoices.
In 2007, Vertefeuille helped Carter, as the owner of TCC Services, Unlimited, LLC, win a paint booth maintenance contract, as well as multiple contract renewals. Vertefeuille received kickbacks in exchange for approving Carter’s fraudulent invoices and recommending the renewal of TCC’s contract.
U.S. Attorney Keefe said: “Public corruption is an attack on the rule of law, which is the mission of the Department of Justice and the cornerstone of American government. The U.S. Attorney’s Office, along with local, state, and federal law enforcement agencies, is committed to upholding the public’s faith in honest services and enforcing high ethical standards.”
“Corruption in the government procurement process damages the public trust and ultimately degrades the warfighting mission of the Department of Defense,” commented Special Agent in Charge John F. Khin, DCIS, Southeast Field Office. “DCIS, along with our investigative partners, remains committed to pursuing and bringing to justice anyone who uses fraud and deception to undermine the critical missions of the Department of Defense and the safety of our communities.”
The case was investigated by the U.S. Air Force Office of Special Investigations, Air Force Audit Agency, and Defense Criminal Investigative Service. It was prosecuted by Assistant U.S. Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Executives of Evansville plastics company indictedRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that a federal grand jury has indicted Kevin Kuhnash, 57, and Jason Jimerson, 44, formerly the Chief Executive Officer and Chief Operating Officer of Lucent Polymers, Inc., an Evansville-based plastics manufacturer. The two men were arrested today by the FBI. The indictment alleges that they committed fraud when they orchestrated the sale of Lucent to another company but concealed critical defects in Lucent’s business, including fraud that Lucent was committing on its customers. Also today, the U.S. Securities and Exchange Commission announced that it also charged Kuhnash and Jimerson with fraud.
“Corporate officials who put deviousness over good faith degrade the integrity of our markets and impugn the reputation of American industry,” said Minkler. “This office will continue to prioritize the investigation and prosecution of corrupt corporate executives who enrich themselves through fraud and deception.”
The indictment alleged that a key aspect of Lucent’s business was its purported ability to design and manufacture custom plastics products that met customers’ exact specifications at very low prices. Lucent’s customers included manufacturers and suppliers of automobiles, automobile air bags, electrical boxes, ceiling fans, kitchen appliances, and heating and air conditioning units. Their specifications often included the plastic’s flame resistance, color, strength and durability, and certification by Underwriter’s Laboratories (“UL”).
According to the indictment, Lucent’s internal testing allegedly showed that its low-cost products often did not meet its customers’ specifications or UL certification standards. Nevertheless, Lucent employees allegedly created and submitted to customers false records stating that the internal testing confirmed that the products were within spec, when they were not. Even when customers complained, Lucent employees allegedly continued to conceal that they had altered the test results.
The indictment alleged that in 2013, Kuhnash and Jimerson, as CEO and CFO, were involved in trying to sell Lucent’s business to another company. Kuhnash and Jimerson allegedly both owned stock in Lucent and stood to, and allegedly did, receive hundreds of thousands of dollars’ worth of compensation when the sale was completed.
According to the indictment, in September of 2013, if not before, both Kuhnash and Jimerson were allegedly made aware that Lucent was routinely deceiving its customers regarding its products. As an example, the indictment referenced an email from a Lucent employee that both Kuhnash and Jimerson received that discussed data manipulation, changing UL-certified product formulations, and customer complaints. The indictment further alleged that, in discussing the email amongst themselves, Kuhnash and Jimerson stated that they would not let anyone see or have knowledge of the employee’s email.
The indictment alleged that neither did Kuhnash or Jimerson take any meaningful steps to stop the Lucent’s alleged fraud on its customers, nor did they disclose the existence of the fraud to the company that was acquiring Lucent’s business. Lucent was acquired shortly thereafter, and Kuhnash and Jimerson allegedly received the significant compensation for their Lucent stock. That compensation allegedly included stock in the company that bought Lucent.
Additionally, the indictment alleged that, even after the acquisition was completed, Kuhnash and Jimerson did not take meaningful steps to stop Lucent’s fraud on its customers and did not disclose the existence of the fraud, including to the acquiring company’s outside auditors.
According to the indictment, in 2015, the acquiring company was itself acquired by a larger, publicly traded company. Both men allegedly owned significant stock, and as a result of the second acquisition, both allegedly received hundreds of thousands of dollars. In total, the indictment alleges that Kuhnash and Jimerson personally received approximately $2 million from the two acquisitions of their stock.
The indictment further alleges that Lucent’s fraud on its customers was discovered by the publicly traded company a few months after acquiring Lucent’s business. On the day the publicly traded company disclosed the existence of Lucent’s fraud to investors, its stock dropped 25%.
Finally, the indictment alleges that Jimerson obstructed justice and made false statements to the FBI by stating he was not aware of Lucent’s fraud on its customers and did not receive the employee email, when he allegedly did.
According to Assistant United States Attorneys Nicholas J. Linder and Steve DeBrota, who are prosecuting the case for the government, the defendants face possible sentences of up to between five and twenty years of imprisonment for each count.
This case is being jointly investigated by the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation said, “Business executives that cheat, lie, and steal stain the fabric of the American economy. These Lucent executives filled their pockets through fraud and numerous acts of deceit. As in this case and countless others our agents will find corruption and bring it to justice.”
“These individuals learned of significant fraudulent practices at the company they led and let it continue. Even during and after the sale of the company, they chose not to reveal the fraud in order to enrich themselves from the sale of their stock,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This case is a result of the strong partnership and working relationship between the FBI, federal prosecutors, and the IRS-Criminal Investigations Division to combat a significant fraud scheme impacting private and publicly-traded companies.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1
Former Baltimore City Police Gun Trace Task Force Detective Sentenced to 10 Years in Federal Prison for Racketeering and Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced former Baltimore Police Detective Momodu Bondeva Kenton Gondo, age 36, of Owings Mills, Maryland, today to 10 years in prison, followed by four years of supervised release, for one count of racketeering conspiracy and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of a mixture or substance containing heroin.
The sentence was announced by United States Attorney Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office.
“This prosecution demonstrates that no one is above the law. When we have evidence of wrongdoing, we will follow that evidence and prosecute you--whether you wear a badge or not,” said Maryland U.S. Attorney Robert K. Hur. “Momodu Gondo and the other corrupt officers in the GTTF betrayed the public’s trust and dishonored their badge. Their federal prison sentences are just punishment for their crimes”
Momodu Gondo joined the Baltimore Police Department (BPD) on November 29, 2005 and was later assigned to the Gun Trace Task Force (GTTF), a division of the Baltimore Police Department. According to his plea agreement, Gondo conspired to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Gondo prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents, which concealed the fact that Gondo and his co-conspirators stole money, property, and narcotics from individuals.
According to his plea agreement, Gondo admitted participating in eight robberies from March 2015 through July 2016. Gondo robbed civilians whom he detained and in some cases arrested and stole money and drugs from them. Gondo shared the proceeds with co-defendants and fellow BPD officers Jemell Rayam, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself. In each robbery, Gondo was armed with his BPD service firearm, individual victims of the robberies were physically restrained to facilitate the commission of the offense, and he authored false incident reports and other official documents, in some cases in order to conceal his criminal conduct and otherwise obstruct justice.
On October 5, 2015, Gondo and his co-conspirators robbed a drug dealer after Gondo and Rayam placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home. Gondo acted as a lookout while Rayam and Glen Kyle Wells entered the victim’s apartment. Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin. After the robbery, Gondo and his co-conspirators split the money they had stolen. Wells took the Rolex, the gun, and the drugs and sold some of the drugs. Rayam also sold some of the drugs and shared proceeds with Gondo.
Gondo admitted to committing multiple robberies with Sergeant Thomas Allers. For example, on March 11, 2015, Gondo, Rayam, and Allers searched a residence and discovered a large quantity of cash. Gondo, Rayam, and Allers each took some of the cash. Gondo took between $8,000 and $10,000.
Gondo further admitted that he sold a seized gun and marijuana to a drug dealer. In June 2016, Gondo, Rayam, and Jenkins conducted a car stop and then went to the driver’s residence, without a warrant, and seized a 9mm handgun and a pound of marijuana. After Jenkins directed the sale of the gun and marijuana in order to repay a debt Rayam owed Jenkins for drugs, Gondo arranged for an associate of his, a drug dealer, to buy the marijuana and handgun.
On July 8, 2016, Gondo and his co-defendants Hersl and Rayam detained two victims after a car stop. Gondo stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them. Jenkins told his co-conspirators to treat him like he was the U.S. Attorney. After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000. Jenkins, Hersl, Rayam, and Gondo divided the $20,000.
In a separate seven-count indictment, Gondo and five co-defendants were charged with conspiracy to distribute and possess with intent to distribute heroin as part of the Shropshire drug trafficking organization (“DTO”). Gondo admitted that he provided sensitive law enforcement information to other conspirators in order to help the DTO and protect his co-conspirators. According to his plea agreement, Gondo admitted to providing protection, information and tips to his co-conspirator and co-defendant Antonio Shropshire about how to avoid being arrested. For example, on March 31, 2016, Gondo alerted Shropshire, who along with his co-conspirators, primarily distributed heroin near the Alameda Shopping Center in Baltimore, that the Drug Enforcement Administration had installed a GPS tracking device on his vehicle. Shropshire, under Gondo’s instruction, then removed the GPS device and placed it on another vehicle.
According to his plea agreement, Gondo also admitted that he routinely submitted fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of Maryland. On these reports, Gondo falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Gondo also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
Lastly, Gondo admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching them to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body cameras to avoid recording encounters with civilians.
Former Baltimore Police Sergeant Wayne Earl Jenkins, age 38, of Middle River, Maryland was sentenced to 25 years in federal prison for a racketeering conspiracy, racketeering, two counts of robbery, destruction, alteration, or falsification of records in a federal investigation, and four counts of deprivation of rights under color of law. Former Detectives Daniel Thomas Hersl, age 49, of Joppa, Maryland and Marcus Roosevelt Taylor, age 32, of Glen Burnie, Maryland, were convicted after a three-week trial and were each sentenced to 18 years in federal prison, for racketeering conspiracy and racketeering offenses, including overtime fraud, and robbery. Former Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland was sentenced to fifteen years in prison, for racketeering conspiracy and racketeering offenses, including nine robberies. Former Detective Jemell Lamar Rayam, age 38, of Owings Mills, Maryland, previously pleaded guilty to racketeering conspiracy, including multiple robberies, and overtime fraud, and is scheduled for sentencing on March 8, 2019 at 10:00 a.m.
Antonio Shropshire, a/k/a Brill, B, and Tony, age 33, to 25 years in prison for conspiracy to distribute and possession with intent to distribute heroin and cocaine relating to the drug trafficking organization in North Baltimore. Co-defendants Alexander Campbell, a/k/a Munch, age 30, and Glen Kyle Wells, a/k/a Lou, and Kyle, age 31, both of Baltimore were sentenced to 196 months and 188 months in prison, respectively, for their participation in the drug trafficking organization.
United States Attorney Robert K. Hur commended the FBI, the DEA, the Baltimore County Police Department, and the Harford County Sheriff’s Office for their work in the investigation. U.S. Attorney Hur also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Fifth Bronx Man Pleads Guilty in Multimillion-Dollar Ghana-Based Fraud Scheme Involving Business Email Compromises and Romance Scams Targeting ElderlyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, the Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that MUFTAU ADAMU, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” pled guilty today to one count of conspiracy to commit wire fraud in connection with a fraud scheme based in the Republic of Ghana (“Ghana”) involving the theft of over $10 million through business email compromises and romance scams that targeted the elderly from at least in or about 2014 through in or about 2018. ADAMU is the fifth defendant to plead guilty in the case. Four other defendants – TOUREY AHMED RUFAI, a/k/a “Joe Thompson,” a/k/a “Joe Terry,” a/k/a “Rufai A Tourey,” a/k/a “Ahmed Rufai Tourey,” PRINCE NANA AGGREY, ABDUL RASHID MASOUD, and MUBARAK BATURI, a/k/a “Eben Karsah,” were arrested in 2018 and also pled guilty earlier this year. RUFAI, AGGREY, and BATURI pled guilty on January 9, January 28, and February 8, 2019, respectively, to one count of conspiracy to commit wire fraud. MASOUD pled guilty on January 18, 2019, to one count of receiving stolen property. ADAMU pled guilty before U.S. Magistrate Judge Kevin Nathaniel Fox. The case is assigned to U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Geoffrey S. Berman said: “These five defendants admitted to participating in a conspiracy that involved stealing millions of dollars from U.S. businesses and individuals across the United States and laundering that money to their co-conspirators in Ghana through a network of bank accounts in the Bronx, many of which were opened using fake names and businesses. The conspiracy’s commission of fraud through business email compromises and the targeting of elderly victims through romance scams is particularly egregious. These defendants now await sentencing for their crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “There’s often a misconception that financial schemes, such as those detailed in this case, are easy to spot. This is especially true for companies with a high level of awareness about business email compromises, and those individuals who are caught off guard by a scammer willing to capitalize on their trust and compassion. This fraud alone involved the alleged theft of more than $10 million, proving there’s often a way around the general safeguards put in place by businesses and individuals alike. Today’s announcement is a good reminder for all to stay alert and remember, if something doesn’t feel right, chances are it’s the wrong thing to do.”
IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said: “Every defendant in today’s announcement shares one trait in common – greed. This desire for money drove them to prey upon the vulnerable in our society. Thanks to the financial expertise and diligence of IRS-CI special agents, who worked side-by-side with our law enforcement partners to uncover these schemes, these criminals are off the street and will now face the consequences of their actions.”
According to allegations in the Complaints and the Indictment filed in the case:
Between 2014 and 2018, ADAMU, RUFAI, AGGREY, MASOUD, and BATURI were members of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York.
The objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise. First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company, to “spoof” or impersonate those employees or third parties. These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic. The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees. By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of members of the Enterprise, including ADAMU, RUFAI, AGGREY, MASOUD, and BATURI.
The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable men and women over the age of 60 who lived alone, into believing the victims were in romantic relationships, when in fact the correspondents were members of the Enterprise using fake identities. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses, such as a shipment of gold or receiving a portion of an investment, to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise. At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise. The members of the Enterprise, posing as the romantic interests of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise.
ADAMU, RUFAI, AGGREY, MASOUD, BATURI, and their co-conspirators received or otherwise directed the receipt of over $10 million in fraud proceeds from victims of the Enterprise in bank accounts that they controlled in the Bronx, New York. Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts. Once the defendants received the fraud proceeds in bank accounts under their control, the defendants withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.
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ADAMU, 30, RUFAI, 33, AGGREY, 43, and BATURI, 29, all of the Bronx, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. MASOUD, 36, of the Bronx, New York, pled guilty to one count of conspiracy to receive stolen money, which carries a maximum sentence of five years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
ADAMU is scheduled to be sentenced on June 7, 2019, at 10:30 a.m. RUFAI is scheduled to be sentenced on April 12, 2019, at 11:00 a.m. MASOUD is scheduled to be sentenced on April 19, 2019, at 11:00 a.m. BATURI and AGGREY are scheduled to be sentenced on May 10, 2019, at 10:30 a.m. and 2:00 p.m., respectively. Each of the defendants will be sentenced by Judge Cote.
Any businesses or individuals who believe they may have been the victim of a business email compromise or a romance scam or have information regarding such crimes should file a complaint with the FBI’s Internet Crime Complaint Center (“IC3”) at https://www.ic3.gov or contact their local FBI office.
Mr. Berman praised the outstanding investigative work of the FBI and IRS-CI. Mr. Berman also thanked U.S. Customs and Border Protection, Ghana’s Economic and Organised Crime Office, and the FBI Legal Attaché in Accra, Ghana, for their helpful assistance with the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Andrew D. Beaty are in charge of the prosecution.
Feds Charge Two in Connection to Bullitt County OD DeathRead the Press Release
LOUISVILLE, Ky. – Two defendants have been charged by a federal grand jury for possession of heroin that caused the death of a Shepherdsville victim, announced United States Attorney Russell M. Coleman.
Aaron Shelton, 27, and Tajuan M. McDowell, a.k.a. Tawain McDowell, 18, have been charged in the indictment with possession of heroin with intent to distribute. Shelton faces an additional charge of conspiracy to distribute heroin – causing death.
“We will charge as little as one pill that results in overdose death,” stated U.S. Attorney Russell Coleman “And these federal charges carry a mandatory sentence of twenty years to life for those that peddle their poison in our Commonwealth. Is it worth it?”
According to a criminal complaint, the morning of February 2, 2019, Shepherdsville Police Department officers responded to a suspected fatal overdose where they found A.M., the victim, deceased along with suspected heroin.
Subsequently, the Shepherdsville Police Department and LMPD’s 9th Mobile Division coordinated and conducted a controlled purchase of heroin from Shelton. During the controlled purchase, McDowell attempted to dispose of three bindles of suspected heroin, and Shelton attempted to flee in a vehicle, when he struck an unmarked LMPD police vehicle.
Shelton was initially placed into state custody for Criminal Mischief 1st for intentionally ramming a police vehicle. While taking Shelton into custody, Officers observed a bundle of currency in plain view in the driver’s floorboard of Shelton’s vehicle, in which Shelton was found to be the sole occupant; following a K-9 alert, a search of the car was conducted which revealed multiple phones and other evidence.
Both defendants appeared in federal court last week. Shelton remains in federal custody.
Both counts in the indictment carry a term of imprisonment of no less than 20 years and no more than life, in addition to a term of supervised release. There is no parole in the federal system.
The case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and Special Assistant United States Attorney Ebert Haegele, and is being investigated by the Drug Enforcement Administration, Shepherdsville Police Department, Louisville Metro Police Department’s 9th Mobile and Narcotics divisions.
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Ex-Director of Facilities for the Municipality of Toa Baja Sentenced to 30 Months in Prison for Bribery and Conspiracy to DefraudRead the Press Release
SAN JUAN, P.R. – Today, Edgar Arroyo-Amezquita, former Director of Facilities for the Municipality of Toa Baja was sentenced by United States District Judge Carmen C. Cerezo to serve 30 months in prison and to pay restitution in the amount of $39,999 to the Municipality of Toa Baja, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On August 30, 2018, Edgar Arroyo-Amezquita pleaded guilty before Magistrate Judge Silvia Carreño-Coll to bribery and conspiracy to obtain property by fraud from a program receiving federal funds. As a part of the guilty plea, Arroyo admitted that he served as Director of Facilities for the Municipality of Toa Baja during the time of the conspiracy, which was from May 2011 through May 2013. In his position as Director of Facilities, Arroyo conspired to defraud the municipality and accepted multiple bribes, paid in cash and totaling $39,999, in exchange for causing contracts to be awarded and payments to be made by the Municipality of Toa Baja to enrich co-defendant Luis Serrano-Perdigón.
As a part of the conspiracy, Arroyo personally submitted fraudulent quote documentation to the purchasing office of the Municipality of Toa Baja using a fictitious company named Professional Sales & Service. In doing so, Arroyo utilized, without consent or legal authority, the name and signature of a real person on the fraudulent quote documentation submitted to the municipality. Arroyo then caused checks to be issued by the municipality to Professional Sales & Service, which were deposited into a bank account in the name of ALS Electronic Service, a company alleged to be controlled by co-defendant Luis Serrano Perdigon. Bribe payments were then made by Luis Serrano-Perdigón directly to Edgar Arroyo-Amezquita.
The sentencing hearing for Luis Serrano-Perdigón is scheduled for February 14, 2019. The case was prosecuted by Assistant United States Attorney Seth Erbe and was investigated by the Federal Bureau of Investigation.
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Euclid man arrested after he directed a 13-year-old girl to send him nude photos of herself and threatened to share the photos with her friends if she did not send moreRead the Press Release
A Euclid man was arrested after he directed a 13-year-old girl to send him nude photos of herself and threatened to share the photos with her friends if she did not send more.
Tyrin B. Davis, 20, was charged in U.S. District Court in Cleveland with one count of sexual exploitation of a child.
“This case demonstrates the danger posed by the Internet, particularly for teens posting photos and communicating with people they don’t really know,” U.S. Attorney Justin Herdman said. “Parents and trusted adults need to make it their business to know who their kids are talking to.”
"These cases are a painful reminder that we can never have enough conversations with our children about the potential dangers of the internet,” said Homeland Security Investigations' Special Agent in Charge Steve Francis. “Through our iGuardian educational program, HSI is fully committed to ensuring that parents and young people have all the information they need when it comes to online safety.”
According to an affidavit filed in the case:
The Toronto (Canada) Police Service’s Internet Child Exploitation Unit contacted Homeland Security Investigations after learning the 13-year-old had been enticed and extorted into sending multiple sexually explicit images of herself via Instagram and Snapchat. The girl and her mother approached the Toronto Police Service in May 2018 to report the ongoing extortion.
The suspect told the girl he would pay $1,000 if she were to send nude photos of herself. The girl stated her parents were going through a rough time financially and she thought that by sending the photos, she could do her part to help.
She sent a few nude photos, at which point the suspect began to send messages asking for more. The girl later said that the suspect told her that if she did not send more, he would put the ones she already sent online for the world to see. As a result, she sent more photos of herself to the suspect.
Once the victim realized things had gone too far, she attempted to stop communication with the suspect. The suspect sent nude photos of her to several of her friends on Instagram. The suspect also communicated with the victim’s cousin on Instagram and stated that if the cousin did not send nude pictures of herself, the suspect would post more nude photos of the 13-year-old online.
Investigators eventually traced the messages to the 13-year-old victim to an IP address assigned to Tyrin Davis on Chestnut Lane in Richmond Heights. Davis subsequently moved to Euclid.
This case was investigated by Homeland Security Investigations and the Toronto Police Service. It is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is only an allegation and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Dominican Citizen Sentenced to over Two Years in Prison for Aggrevated Identity TheftRead the Press Release
CONCORD - Grency Junior Nuñez Barrera, 31, a citizen of the Dominican Republic residing in Lawrence, Massachusetts, was sentenced to 24 months and one day in prison for aggravated identity theft, social security fraud, and making false statements, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, Nuñez Barrera illegally entered the United States in 2009 and obtained identification documents of an American citizen from Puerto Rico, including a forged birth certificate and social security card. From 2009 through 2018, Nuñez Barrera assumed that person’s identity. During that time, among other things, Nuñez Barrera worked and was charged with other crimes using the victim’s identity. In 2010, Nuñez Barrera used the victim’s identity to obtain a New Hampshire driver’s license. He later used the victim’s information to obtain a social security number.
In 2015, Nuñez Barrera was arrested while using the victim’s identity to renew the New Hampshire driver’s license he obtained in 2010. In February 2018, Nuñez Barrera again traveled to the Division of Motor Vehicles in Concord, New Hampshire and applied for a replacement driver’s license using the victim’s name, date of birth, and social security number. The DMV flagged the application and Nuñez Barrera was subsequently arrested. Upon his arrest for federal charges, Nuñez Barrera again falsely identified himself as the victim to the U.S. Marshals and, as proof, provided the victim’s social security number.
Nuñez Barrera previously pleaded guilty on October 30, 2018. He faces likely deportation to the Dominican Republic after serving his sentence.
“Identity theft is a serious crime that can have a harmful and lasting impact on its victims,” said U.S. Attorney Murray. “Victims often must spend countless hours attempting to clear their names, particularly when crimes are committed by those who have stolen their identity. Those who choose to participate in this crime should understand that their fraudulent conduct will be met with aggressive prosecution and incarceration.”
“Today’s sentencing demonstrates my office’s commitment to stopping the threats and devastating impacts that American citizens face from identity theft and related crimes,” said Adam D. Schneider, Acting Special Agent-in-Charge of the Social Security Administration’s Office of the Inspector General, Boston Field Division. “Along with our local and federal law enforcement partners, we will continue to target investigations aimed specifically at identifying people who have stolen the identities of others, and we look forward to working with the U.S. Attorney on the successful prosecution of similar cases.”
This matter was investigated by the Social Security Administration Office of the Inspector General, the New Hampshire State Police, and U.S. Immigration and Custom Enforcement. The case was prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter.
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Dexter Man Sentenced to a Year and a Day for Marijuana ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Terrence Sawtelle, a/k/a “Terry,” 49, of Dexter, Maine was sentenced today in U.S. District Court by Chief Judge Jon D. Levy to one year and one day in prison and three years of supervised release for conspiring to manufacture, distribute, and possess with intent to distribute marijuana. The defendant pled guilty on June 28, 2018.
According to court records, for a period of time between October 2010 and August 2016, the defendant conspired with others to illegally manufacture marijuana at a facility in Frankfort, Maine and to distribute it at the Owl’s Club, in Bangor, Maine, in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. The Owl’s Club was owned and operated by co-defendant Christopher Ruhlin.
In May 2016, agents searched the Frankfort facility and seized marijuana in various stages of harvest and cultivation, together with paraphernalia and items used to manufacture and process marijuana. In August 2016, agents searched property in downtown Bangor, including the Owl’s Club, and seized processed marijuana. At the time of the searches, the location of the Frankfort facility was not reported to Maine’s Department of Health and Human Services as required. Beginning in March 2015, the defendant started selling marijuana for Christopher Ruhlin at the Owl’s Club.
In imposing sentence, Judge Levy concluded that Sawtelle’s activities violated both state and federal law.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Colorado River Indian Tribes Tribal Member Sentenced to 15 Years in Federal Prison for Second Degree MurderRead the Press Release
PHOENIX – On Feb. 11, 2019, Larson Namow Burns, 29, formerly of Parker, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 180 months in prison, followed by five years of supervised release. Burns had previously pleaded guilty to second degree murder.
On Jan. 3, 2018, Burns strangled the victim and inflicted several blows with a blunt object, resulting in the victim’s death. The victim was a member of the Colorado River Indian Tribes. Burns is also a member of the Colorado River Indian Tribes and the murder happened on the Colorado River Indian Tribes Indian Reservation.
CASE NUMBER: CR-18-00379-PHX-DJH
RELEASE NUMBER: 2019-010_Burns
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Colombian Nationals Sentenced to 45 and 50 Years in Prison for Participating in Human Smuggling Event That Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
Two Colombian nationals were sentenced to 45 and 50 years in prison for their roles in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Carlos Emilio Ibarguen Palacios, 27, and Jhoan Stiven Carreazo Asprilla, 23, Colombian nationals, extradited to the United States in 2017 and 2018 respectively, to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Ibarguen Palacios and Carreazo Asprilla were sentenced to serve 540 months and 600 months in prison, respectively, by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered them to serve three years of supervised release following their prison sentence.
“The defendants’ carried out a fatal human smuggling trip for which two victims paid the ultimate price,” said U.S. Attorney Fajardo Orshan. “But for the strength of the surviving victim, the defendants’ brutality would have been washed away at sea. The significant federal prison sentences imposed against the smugglers cannot bring back life but we hope can serve to thwart the dangerous business of alien smuggling.”
“The heinous acts committed by the defendants in this case provide a stark reminder that alien smuggling is inherently dangerous—and can be deadly,” said Assistant Attorney General Benczkowski. “But for the desperate escape of one of the victims, the defendants’ acts would have remained hidden with the bodies they left behind. The substantial prison sentence imposed today against these two smugglers demonstrates the Department of Justice’s continuing commitment to prosecute those who violate this country’s immigration laws.”
“These two individuals were involved in one of the most cold and callous cases investigated by HSI Miami,” said HSI Special Agent in Charge Salisbury. “Although the sentences will not return the victims to their loved ones, it does bring justice for their friends and family. HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”
According to the court record, including agreed-upon factual proffers, since 2014, Carlos Emilio Ibarguen Palacios, Jhoan Stiven Carreazo Asprilla, and their co-defendants, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by co-defendant Fredis Valencia Palacios to a boat captained by Ibarguen Palacios. After some delay, Ibarguen Palacios was joined by Carreazo Asprilla and they began their journey to Panama. During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and gun, respectively, on the victims. Ibarguen Palacios tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him. While his fellow travelers were being murdered, the survivor managed to free himself and escape by swimming away. Ibarguen Palacios and Carreazo Asprilla left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. Shortly thereafter, Ibarguen Palacios and Carreazo Asprilla were located and arrested.
Co-defendant Valencia Palacios who assisted in arranging this smuggling event was sentenced to serve 15 years in prison on Dec. 4, 2018 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Cherokee County Man Pleads Guilty to Theft from GunsmithRead the Press Release
WICHITA, KAN. – A Cherokee County man pleaded guilty Tuesday to unlawful possession of a rifle stolen during a burglary at a gunsmith’s residence, U.S. Attorney Stephen McAllister said.
Nathan J. Moss, 32, Columbus, Kan., pleaded guilty to one count of unlawful possession of a firearm by a convicted felon. In his plea, Moss admitted he was arrested Aug. 18 after police chased the vehicle he was driving from Crawford to Cherokee County. In the vehicle, police officers found an Anderson Model AM-15 5.56-caliber rifle. The rifle was stolen four days earlier from M and M Tactical Gunsmithing in Arma, Kan.
Moss, who had a prior felony conviction, was prohibited by federal law from possessing a firearm.
Sentencing is set for April 29. Both parties have agreed to recommend a sentence of five years in federal prison. McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburg Police Department, the Cherokee County Sheriff’s Department, the Arma Police Department and Assistant U.S. Attorney Lanny Welch for their work on the case.
Brazilian National Pleads Guilty to ATM SkimmingRead the Press Release
BOSTON – A Brazilian national pleaded guilty yesterday in federal court in Boston to charges of ATM skimming in towns north of Boston.
Alexandre Kawamura, 43, pleaded guilty to two counts of using counterfeit access devices (debit and credit cards), four counts of possessing device-making equipment (ATM skimming devices and pinhole cameras), and two counts of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 17, 2019. Kawamura, who legally entered the U.S. on a tourist visa, will be subject to deportation after he completes his sentence.
Kawamura placed hidden skimming devices and pinhole cameras on Eastern Bank ATMs in Saugus, Stoneham, Medford, and Everett, every day between February 25 and March 16, 2018, when he was arrested. The purpose of the skimming devices was to record bank account information on the magnetic strips of debit and credit cards that unwitting victims inserted into the ATMs. The purpose of the pinhole cameras was to capture the victims’ PINs as they were entered on the ATM keypads.
On March 8, 2018, Kawamura possessed a counterfeit debit card with a magnetic strip that contained the stolen bank account number of a Milton woman. At an ATM in Malden, Kawamura used the card and the victim’s PIN to withdraw $500 cash from the victim’s account.
On March 16, 2018, Kawamura used a counterfeit credit card to buy clothing at a sporting goods store in Medford. The name on the card was an alias, and the card’s magnetic strip contained the stolen Eastern Bank account number of a Medford man, whose account had been compromised the day before.
Kawamura was arrested on March 16 after a bank customer called police to report that he had found a skimming device on a drive-up ATM at an Eastern Bank branch in Stoneham. Police responded and discovered that the pinhole camera was still attached to the ATM. They set up surveillance and waited for the suspect to return. Kawamura drove up to the ATM in a rental car shortly before 11 pm. He appeared to look for the skimming device and then drove off. Stoneham police stopped the car and discovered that the driver had a Brazilian passport in his real name and had rented the car under an alias. Kawamura was in possession of the counterfeit credit card that he had just used to buy clothing at the sporting goods store.
The charging statute for using a counterfeit access device provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of possessing device-making equipment provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.