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Wednesday 28 November 2018
Dominican National Pleads Guilty to Social Security FraudRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to Social Security fraud.
Luis Alberto Fernandez Fernandez, 28, a Dominican national residing in Salem with legal permanent resident status, pleaded guilty to one count of false representation of a Social Security number. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 27, 2019. Fernandez Fernandez was arrested in July 2018 as part of a law enforcement sweep aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
In September 2016, before he became a lawful permanent resident, Fernandez Fernandez applied for a Massachusetts ID card using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. His application was denied.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Sentenced to 27 Months in Prison for Escaping from Halfway House in Southeast WashingtonRead the Press Release
WASHINGTON – Lonniel Peterson Jr., 28, of Washington, D.C., has been sentenced to 27 months in prison after pleading guilty to escaping from a halfway house in the District of Columbia, announced U.S. Attorney Jessie K. Liu and Robert Turner, United States Marshal for the District of Columbia. Peterson pled guilty to the escape charge in October 2018 in the U.S. District Court for the District of Columbia. He was sentenced on Nov. 27, 2018, by the Honorable Timothy J. Kelly. Following his prison term, he will be placed on two years of supervised release.
Peterson was among two defendant to be sentenced this week as a result of ongoing efforts of the U.S. Marshals Service and the U.S. Attorney’s Office to arrest violent offenders who escape from halfway houses. In the other case, a federal judge sentenced Daquan Jackson, 22, of Washington, D.C., to a 33-month prison term for a similar escape.
In 2017, the U.S. Marshals Service requested the assistance of the U.S. Attorney’s Office with the investigation, prosecution, and disposition of an increased number of escape cases. The escapees were under the supervision of the Federal Bureau of Prisons and were afforded an opportunity to complete the final portion of their sentences at halfway houses to assist in their reentry to the community. To date, the effort has led to 23 felony convictions of defendants who failed to report or absconded from the Hope Village Halfway House in Southeast Washington.
According to court documents, Peterson was at Hope Village serving the remainder of a five-year sentence from a 2013 conviction in the Superior Court of the District of Columbia for assault to intent to kill. He began serving that sentence at the Federal Correctional Facility-Schuylkill in Minersville, Pa. On April 4, 2017, he was furloughed to serve the remainder of his sentence at Hope Village. On June 20, 2017, he left Hope Village without authorization and never returned.
Peterson was re-arrested on June 13, 2018 by the Metropolitan Police Department (MPD). According to court filings, Peterson was arrested with 29 blue bags containing suspected crack cocaine and a 9mm semi-automatic pistol. He still faces firearms and narcotics charges in the Superior Court of the District of Columbia stemming from that arrest.
In announcing the sentence, U.S. Attorney Liu and Marshal Turner commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Gregory Rosen, who prosecuted the matter with the assistance of Assistant U.S. Attorney Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section.
Davenport Man Sentenced to Prison for Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On November 27, 2018, Kevonte Deoblo Kirk, age 23, of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison, following his guilty plea to a Felon in Possession of a Firearm charge, announced United States Attorney Marc Krickbaum. Kirk was ordered to serve three years of supervised release to follow his prison term and pay $100 special assessment to the Crime Victims’ Fund.
Kirk pleaded guilty to the charge on July 16, 2018. On March 15, 2015, Davenport Police Officers were dispatched to 732 W. 14th Street in reference to gun shots fired. Dispatch advised law enforcement that a gray sedan was involved. Officers arrived in the area and observed a vehicle matching that description. The officers followed the vehicle a short distance and a traffic stop was initiated; however, the vehicle fled. A high-speed chase ensued and the suspect vehicle hit other cars and sped over 100 miles per hour. The car then pulled into a gas station and all three passengers fled the vehicle.
Officers apprehended Kirk as he attempted to climb over a fence. A search incident to arrest revealed a loaded Hellcat .380 caliber gun in his left front pocket. Kirk admitted that he had the gun for protection and knew it was loaded. Kirk was currently on probation for a felony deferred judgment. Two shell casings recovered from the shooting scene matched the gun that was found on Kirk. Further investigation revealed that the firearm had been stolen from a Davenport residence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), 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.
Davenport Man Sentenced to 30 Years for Distributing Heroin Resulting in an Overdose DeathsRead the Press Release
DAVENPORT, IA – On November 27, 2018, Larry Lazzez Bolden, age 50, of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to 360 months of imprisonment after pleading guilty to Distribution of a Controlled Substance Resulting in Death, announced United States Attorney Marc Krickbaum. Bolden was ordered to serve a period of supervised release of five years to follow his prison term and pay a $100 special assessment to the Crime Victims’ Fund.
Bolden pleaded guilty to the charge on June 27, 2018. On December 28, 2016; January 7, 2017; January 29, 2017; and January 31, 2017; Bolden distributed a mixture or substance containing heroin to a confidential source. On January 20, 2017, T.Z., N.S., and another individual traveled to the Knights Inn hotel in Davenport, for the purpose of purchasing heroin. T.Z. had previously arranged to purchase $40 in heroin from Bolden. While at the Knight’s Inn hotel, T.Z. obtained heroin from Bolden. After obtaining the substance, the three individuals traveled to T.Z.’s apartment in Rock Island, Illinois, where they ingested the heroin. Within moments, N.S. lost consciousness and died shortly thereafter. Autopsy results confirmed N.S. died due to the “adverse effects of morphine, furanyl fentanyl, and acryl fentanyl.” As part of the plea agreement, Bolden agreed that N.S. would not have died but for the use of the substance Bolden supplied T.Z. on January 20, 2017. Further, Bolden admitted the purported heroin he distributed to T.Z. on January 20, 2017, resulted in the death of N.S. and that N.S.’s death was not merely from a combination of factors to which drug use merely contributed.
During the evening of January 29, 2017, E.M. and two other individuals drove to the Knight’s Inn hotel in Davenport for the purpose of obtaining heroin. E.M. had contacted Bolden’s cellular telephone to arrange the transaction. E.M. went into the Knight’s Inn and obtained the substance. The three of them then drove back to E.M.’s residence in Moline, Illinois, where they ingested the substance shortly thereafter. E.M. was found the next morning (January 30, 2017) deceased. Autopsy results confirmed E.M. died due to the “adverse effects of morphine, furanyl fentanyl, and acryl fentanyl.” Bolden admited E.M. arranged the transaction with the cellular phone belonging to Bolden, and that the transaction took place in the hotel room belonging to Bolden.
This matter was investigated by the Davenport and Rock Island Police Departments.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Cryptocurrency CEO Indicted After Defrauding Investors of $4 MillionRead the Press Release
AriseBank CEO Jared Rice, Sr. was arrested by the FBI on Wednesday, charged with duping hundreds of investors out of more than $4 million in a cryptocurrency scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Mr. Rice, who is also the subject of a civil action filed by the SEC’s Fort Worth regional office earlier this year, was indicted on three counts of securities fraud and three counts of wire fraud.
According to court documents unsealed today, Mr. Rice, 30, allegedly lied to would-be investors, claiming that AriseBank – which he billed as the world’s “first decentralized banking platform” based on a proprietary digital currency called AriseCoin – could offer consumers FDIC-insured accounts and traditional banking services, including Visa-brand credit and debit cards, in addition to cryptocurrency services. In actuality, AriseBank had not been authorized to conduct banking in Texas, was not FDIC insured, and did not have any sort of partnership with Visa.
Even as he touted AriseBank’s nonexistent benefits in press releases and online, Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, clothing, a family law attorney, and even a guardian ad litem.
He allegedly falsely claimed the “Initial Coin Offering,” or ICO, had raised $600 million within just a few weeks and failed to disclose that he’d plead guilty to state felony charges in connection with a prior internet-related business scheme. Meanwhile, investors were buying AriseCoin using digital currencies like Bitcoin, Ethereum, Litecoin, and fiat currency.
“My office is committed to enforcing the rule of law in the cryptocurrency space,” said Nealy Cox. “The Northern District of Texas will not tolerate this sort of flagrant deception – online or off.”
An Indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law. If convicted, Mr. Rice faces up to 120 years in federal prison.
The Federal Bureau of Investigations conducted the investigation. Assistant U.S. Attorneys Mary Walters and Sid Mody are prosecuting the case.
Cincinnati Man Sentenced to 18 Years for Distributing Cocaine in Boone County, KentuckyRead the Press Release
COVINGTON, Ky. — Richard Crawford, Jr., 54, of Cincinnati, was sentenced Tuesday, to 18 years in federal prison for Distribution and Possession of Cocaine in Boone County, Kentucky. Crawford was sentenced by United States District Judge David Bunning.
Crawford was convicted in August 2018, following a three-day jury trial. According to evidence at trial, Crawford sold an ounce of cocaine to a confidential informant working with law enforcement, on June 27, 2017 in Florence, Kentucky. Two days later, law enforcement executed a search warrant on Crawford’s apartment in Florence, Kentucky, finding more than 400 grams of cocaine and crack cocaine, evidence of drug paraphernalia, and cash used by the confidential informant to purchase cocaine. Crawford has an extensive criminal history, including three prior convictions for trafficking in cocaine. Based on these prior convictions, Crawford qualified as a “career offender” under the United States Sentencing Guidelines, subjecting him to an increased sentence.
Under federal law, Crawford must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly made the announcement.
The investigation was conducted by the DEA and the Northern Kentucky Drug Strike Force. The United States was represented by Assistant United States Attorneys Wade T. Napier, Jennifer K. Weinhold, and Tony Bracke.
Cedar Rapids Man Sentenced to Federal Prison for Illegally Possessing a GunRead the Press Release
A convicted felon who illegally possessed a gun after previous felony drug convictions was sentenced today to two months in federal prison.
Alan Cherry, age 39, from Cedar Rapids, Iowa, received the prison term after a guilty plea to being a felon in possession of a firearm and ammunition.
In a plea agreement, Cherry admitted that on February 24, 2018, he was driving a car that was stopped by the Cedar Rapids Police Department. Cherry told officers that he had a gun in the car. Officers searched the car and found a semi-automatic 9mm pistol and ammunition. Cherry had previously been convicted of manufacture and delivery of marijuana and manufacture and delivery of cocaine, both of which are felony drug offenses.
Cherry was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Cherry was sentenced to two months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cherry was released on the bond previously set and is to surrender to the United States Marshal on December 31, 2018.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0045. Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Convicted of Carjacking and Robbery While Using a GunRead the Press Release
A Cedar Rapids man who carjacked an eighteen-year old woman at gunpoint and carried a loaded handgun during the robbery of a Cedar Rapids cell phone store was convicted by a jury on November 27, 2018, after a two-day trial in federal court in Cedar Rapids.
Cedric Antonio Wright, age 22, from Cedar Rapids, Iowa, was convicted of four counts: carjacking, carrying and brandishing a firearm during and in relation to the carjacking; unlawful possession of a firearm as a felon and unlawful drug user; and carrying a firearm during and in relation to the robbery of a Sprint Store in Cedar Rapids. The verdict was returned following about one hour of jury deliberations. Wright had previously pled guilty in the same case when, on October 29, 2018, he pled guilty to one count of robbery and conspiracy to rob the Sprint phone store.
The evidence at trial showed that on October 22, 2017, Wright carjacked an eighteen-year old Kirkwood Community College student who was returning to her apartment near Kirkwood after spending the evening with her parents. As the student parked her car outside her apartment, Wright approached and pointed a handgun at her head while demanding she give Wright her car keys and cell phone. The student gave a description of Wright to the police, including the fact that he was wearing a black face mask and camouflage clothing. The student later identified a photo of Wright that appeared online and also identified Wright from a group of photos at the Cedar Rapids Police Department.
Trial evidence showed that on October 23, 2017, Derrick Ford agreed to give Wright and Gage Rupp a ride in his minivan from southeast Cedar Rapids to an apartment complex on the west side of Cedar Rapids, where Wright claimed the group could transfer into his sister’s car. After getting into the other car, the group drove to and parked in a parking lot adjacent to the strip mall where the Sprint Store was located. The group sat in the car and watched as customers in the store completed their business and left the store. The lone clerk in the store then began to prepare the store for closing. Ford was then directed to drive to the side of the cell phone store and park, where Wright and Rupp got out of the car and put on gloves and clothing to partially obscure their faces. Wright and Rupp then entered the store and demanded the clerk let them into the room where the store inventory was located. The clerk complied and testified at trial he did so because the robbers entered the store aggressively and he felt in fear of his life.
Wright and Rupp returned to the waiting car with more than $1000 in cash and about $40,000 in cell phones and other electronic devices they had stolen from the store. One of the stolen devices was a tracker that alerted police of the robbery. The group then drove back to the west side apartment complex. Wright and Rupp celebrated along the way, and Rupp stated how “sweet” it was that they “didn’t even have to use the gun.” Upon returning to the apartment complex where Ford’s minivan was parked, Wright stated that that they all needed to get back in Ford’s minivan because the car they were in was stolen.
Police responded to the tracking device within a few minutes. The group spotted the police and Wright attempted, unsuccessfully, to get Ford to hide a handgun in the console of the van. The police then pulled over the minivan and detained Wright, Rupp, and Ford. The police located the stolen cash, phones, and electronic devices inside the minivan. The police also recovered a loaded .40 caliber Smith and Wesson handgun from inside the van. The car used in the robbery was determined to have been stolen from the student the previous evening.
Investigators discovered the handgun had been purchased by one of Wright’s friends in Indiana several weeks prior to the Sprint Store robbery. Evidence at trial included several photos from Wright’s Facebook account showing Wright in possession of the same handgun. A video from the Facebook account showed Wright shooting the gun seized from the minivan at a gun range. Other photos taken from Wright’s Facebook account showed him wearing items of camouflage clothing and a black knit ski-type mask. Videos taken from the Facebook account showed Wright in possession of other handguns.
Finally, the evidence showed Wright had a prior aggravated robbery conviction in Illinois in 2016 for committing a robbery while threatening the use of a firearm in the course of the robbery.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wright remains in custody of the United States Marshal pending sentencing. Wright faces a mandatory minimum sentence of 32 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,500,000 fine, and 22 years’ of supervised release following any imprisonment.
Rupp previously pleaded guilty to participating in the robbery of the Sprint Store, conspiring to commit the robbery, and carrying a firearm during and in relation to the robbery. Ford previously pleaded guilty to conspiring to commit the robbery of the Sprint Store. Both men are pending sentencing at a future date.
The case is being prosecuted by Assistant United States Attorneys Richard Murphy and Emily Nydle and was investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl .
The case file number is 18-CR-0015.
Follow us on Twitter @USAO_NDIA.
Carrollton Man Indicted on Child Sexual Exploitation ViolationsRead the Press Release
PLANO, Texas – A 49-year-old Carrollton, Texas man has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Patrick Mosher was named in an indictment returned by a federal grand jury on Nov. 15, 2018 charging him with sexual exploitation of a child. Mosher appeared before U.S. Magistrate Judge Kimberly Priest Johnson on Nov. 19, 2018 and was ordered to be detained until trial.
According to the indictment, in September of 2018, a teenager known to Mosher reported to school officials that he believed he had been secretly filmed in a bathroom of Mosher’s home. Carrollton Police Department detectives executed a search warrant at the home and seized a number of hidden cameras and electronic devices. A forensic review of those devices revealed a number of videos of males captured in private spaces within the home. It appeared that the males did not know they were being recorded or that Mosher had obtained footage of them engaged in private or personal activities.
If convicted, Mosher faces a minimum of 15 years and up to 30 years in federal prison.
Any minors who may have had contact with Joseph Patrick Mosher or visited his home are urged to contact the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations and the Carrollton Police Department and is being prosecuted by Assistant U.S. Attorney Marisa J. Miller.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Carjacker Sentenced to over 12 Years in Prison Under Project EJECTRead the Press Release
Jackson, Miss. – Reginald Henderson, 26, of Jackson, was sentenced yesterday by U.S. District Judge David C. Bramlette III to serve a total of 150 months in prison followed by five years of supervised release for armed carjacking and brandishing a firearm, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On February 5, 2017, Jackson Police officers responded to an armed carjacking that occurred on Grafton Street in Jackson, Mississippi. Upon arrival, the victim told officers that she had been carjacked at gunpoint of her 2016 Chevrolet Equinox while in the driveway of her home. JPD Officers identified the stolen vehicle in transit on I-55 South in Jackson with a male subject driving the vehicle. Officers pursued the vehicle until the driver wrecked near Terry Road and I-20 East in Jackson. Henderson was identified as the driver and placed under arrest. A .45 caliber handgun was located in the vehicle at the time Henderson was arrested. Henderson was wearing an ankle monitor at the time of arrest and is also a previously convicted felon.
"I applaud the men and women of the Jackson Police Department for responding so quickly to this carjacking and apprehending this violent criminal before he could harm someone else. I also commend the FBI for assisting in the investigation and our prosecutors for seeing that justice is done. This is another great example of Project EJECT making our citizens safer by taking violent criminals off our streets and delivering justice to victims," said U.S. Attorney Mike Hurst.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Candace Mayberry.
This case is part of Project EJECT, an 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 Jackson
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.
Butler County Woman Charged with Theft of Social Security FundsRead the Press Release
PITTSBURGH, PA – A Butler County resident has been indicted by a federal grand jury in Pittsburgh on charges relating to theft of Social Security funds, United States Attorney Scott W. Brady announced today.
The two-count Indictment, returned on Nov. 27, named Pattie Lou Smith, 56, of Connoquenessing, as the sole defendant.
According to the Indictment, between December 30, 2013 and February 28, 2017, Smith knowingly received and converted Supplemental Security Income benefits to which she knew she was not entitled, in an amount exceeding $1,000.00. In addition, over the same time period, Smith concealed and failed to disclose her husband’s continued presence in her household to the Social Security Administration, with the intent fraudulently to secure SSI benefits.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronx Man Sentenced to More Than 12 Years in Prison for Facilitation of Sex Trafficking, Drug Trafficking, Firearms, and Identity Theft CrimesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that KEVIN PINNOCK, a/k/a “Kev Savage,” a/k/a “Sav,” was sentenced yesterday to 12 years and three months in prison for using the internet to facilitate sex trafficking, possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of drug trafficking, and possessing stolen identification documents. PINNOCK previously pled guilty before United States District Judge Deborah A. Batts, who also imposed yesterday’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Kevin Pinnock used violence and coercion to force women to engage in commercial sex for his own profit. He will now serve a substantial prison sentence for his crimes. The prosecution of Kevin Pinnock is part of our determined effort to deliver justice to victims of sex trafficking and other forms of commercial exploitation, and to deter others from engaging in this predatory criminal conduct.”
In sentencing PINNOCK, Judge Batts said: “The nature of the crimes in which the defendant was convicted” were “unspeakable, violent, gratuitous crimes he arrogantly committed on young women for his financial gain,” and that his theft of others’ identities “show[s] a shocking disregard on the part of the defendant for the havoc his crimes create for innocent victims in terms of their ruined credit and long-term ramifications on their financial lives.”
According to the Complaint, Indictment, Superseding Indictment, and other documents filed in the case, as well as statements made during court proceedings:
In 2015 and 2016, PINNOCK posted online advertisements to solicit customers to engage in commercial sex with women PINNOCK forced into prostitution by violence, abuse, and coercion. PINNOCK retained virtually all of the profits from his sex trafficking business.
Since at least November 2016, PINNOCK sold crack cocaine and possessed a loaded firearm, which had been stolen, in order to protect his drug dealing business. He also possessed dozens of stolen identification cards – including driver’s licenses and Social Security cards – which he sold to other individuals who were engaged in identity theft and fraud. Many of the identification cards had been obtained through the commission of robberies.
* * *
In addition to his prison term, PINNOCK, 22, of the Bronx, New York, was sentenced to three years of supervised release, a forfeiture money judgment in the amount of $15,000, and restitution in the amount of $100,000.
Mr. Berman praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and United States Immigration and Customs Enforcement’s Homeland Security Investigations, and thanked the United States Secret Service, the Social Security Administration’s Office of the Inspector General, the New York City Police Department, and the Bronx County District Attorney’s Office for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Robert B. Sobelman is in charge of the prosecution.
Boston Man Charged with Drug TraffickingRead the Press Release
BOSTON – A Boston man was charged today in federal court in Boston with drug distribution.
Robert Santos, 24, was indicted on one count of possessing with intent to distribute crack cocaine.
The charge of possession with intent to distribute crack cocaine provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Chris Looney of Lelling’s Criminal Division is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belmont County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Ivan Burt, of Bridgeport, Ohio, was sentenced today to 27 months incarceration for a drug charge, United States Attorney Bill Powell announced.
Burt, age 39, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base” in June 2018. Burt admitted to selling crack cocaine near Madison Elementary School on September 22, 2016 in Ohio County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Baton Rouge Man Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced THANH TRAN, age 41, of Baton Rouge, Louisiana, to 40 months in federal prison for possession with intent to distribute marijuana, and an additional 24 months for a 2008 conviction for conspiracy to distribute MDMA from which he was on supervised release.
In September 2017, Baton Rouge Police Department (“BRPD”) narcotics detectives received information that TRAN was involved in the distribution of controlled substances. On September 14, 2017, BRPD narcotics detectives conducted surveillance of TRAN at an apartment complex in Baton Rouge. They observed TRAN place two large black trash bags in the back of his BMW SUV and then drive away. When TRAN began driving erratically, the BRPD officers conducted a traffic stop in the 11300 block of Archery Drive in Baton Rouge.
TRAN told the BRPD officers that he had 15 lbs. of marijuana in his vehicle. When the officers searched the BMW SUV, they found approximately 30 lbs. of suspected marijuana and about $10,000 cash in the vehicle. The officers also found approximately $5,000 cash in TRAN’s pockets.
At the time of his arrest, TRAN was on supervised release from a previous federal conviction of conspiracy to distribute MDMA.
U. S. Attorney Fremin stated, “This prosecution is part of this office’s fight against habitual drug dealers and our efforts to keep our community free from illegal drugs. I congratulate our prosecutors, the Drug Enforcement Administration, and the Baton Rouge Police Department for their successful investigation and prosecution.”
This matter was investigated by the Drug Enforcement Administration and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Brad Casey.
Attorney Admits Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that JUSTIN C. FREEMAN, 46, of Manchester, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a federal tax charge related to his filing false tax returns that substantially underreported his income.
According to court documents and statements made in court, Freeman is an attorney who owns and operates his own law practice, The Law Offices of Justin C. Freeman, based in Hartford. For the 2010, 2011 and 2012 tax years, Freeman signed individual federal income tax returns that significantly underreported the income he received from his law practice. The returns were subsequently filed by his tax preparer.
For 2010, Freeman reported $476,228 in total income, but actually earned $860,041.93. For 2011, he reported $410,002 in total income, but actually earned $1,093,147.43. For 2012, he reported $529,673 in total income, but actually earned $696,559.43.
Freeman pleaded guilty to one count of filing a false tax return. Judge Dooley scheduled sentencing for February 20, 2019, at which time Freeman faces a maximum term of imprisonment of three years and a fine of up to approximately $840,000. He has paid $419,259 in back taxes, and has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Apollo Couple Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA – Two Armstrong County residents have been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on Nov. 27, named Tara Jo Frain, age 33, and Danny Ray Alexander, age 45, both Apollo, PA, as defendants.
According to the Indictment, between November 29, 2013 and December 30, 2016, Frain and Alexander each knowingly received and converted Supplemental Security Income benefits to which they knew they were not entitled, in an amount exceeding $1,000.00 each. In addition, on or about September 10, 2016, Frain and Alexander each made a false statement material to their right to receive SSI benefits by falsely stating that they were not married.
As to both Frain and Alexander, the law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Another Sent to Prison in Fort Hood Soldier Alien Smuggling CaseRead the Press Release
BROWNSVILLE, Texas – A 54-year old who had been illegally residing in Houston has been ordered to federal prison following her conviction of conspiracy to transport and harbor undocumented aliens and illegal re-entry after deportation, announced U.S. Attorney Ryan K. Patrick. Victoriano Zamora-Jasso aka “Tata,” pleaded guilty Jan. 29, 2018, on the eve of jury selection.
Today, U.S. District Judge Rolando Olvera handed Zamora-Jasso a 21-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
In early 2014, Zamora-Jasso began supplying aliens to Arnold Gracia, 48, from Harlingen. Gracia would then make arrangements with others to transport the aliens through the immigration checkpoint at Sarita. Gracia recruited Brandon Troy Robbins, 24, of San Antonio, Eric Alexander Rodriguez, 25, of Odem, Christopher David Wix, 24, of Abilene, and Yashira Perez-Morales, 28, from Watertown, New York – all then active duty soldiers stationed at Ft. Hood - to transport and deliver the aliens further north.
The conspiracy continued from approximately March to September of 2014. The soldiers would conceal the aliens under their military gear and made many successful trips during the course of the conspiracy.
Zamora-Jasso was indicted in 2016 and arrested after a traffic stop in Conroe in July 2017. At the time of his plea, he admitted his involvement in the conspiracy and to being a previously convicted alien who returned after deportation in 2013.
Gracia and all the soldiers were previously sentenced in 2015 and 2016 with Gracia receiving a 73-month sentence while Robbins, Rodriguez, Wix and Perez-Morales received sentences of 20, 12 months, 12 months and a day and five years probation, respectively.
Zamora-Jasso will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigation conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Oscar Ponce and Angel Castro are prosecuting the case.
Aliquippa Man Charged with Violating Federal Drug and Gun Laws following Investigation by PSP and ATFRead the Press Release
PITTSBURGH – A federal grand jury returned an indictment today against a resident of Beaver County, Pennsylvania, on charges of violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Nov. 27, named Landon Alexander Gatta, 23, of Aliquippa, Pennsylvania, as the sole defendant.
According to the Indictment, on November 5, 2018, in the Western District of Pennsylvania, Gatta possessed with intent to distribute 40 grams or more of a mixture containing fentanyl and heroin. Gatta, a felon, also is charged with unlawfully possessing a firearm and ammunition on November 5, 2018, and possessing that firearm in furtherance of a drug trafficking crime. Federal law prohibits felons from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $5,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Sentenced for Mail TheftRead the Press Release
ALBUQUERQUE – Eric R. Powell, 33, of Albuquerque, N.M., was sentenced today in federal court in Santa Fe, N.M., to five years of probation including eight months of home confinement for mail theft.
Powell pled guilty on May 3, 2017, to a charge of theft or receipt of stolen mail. According to court documents, he possessed stolen mail from more than 1,300 victims and caused his victim’s more than $13,000 in financial losses. In pleading guilty, Powell admitted that he stole mail from numerous mailboxes in Albuquerque using a counterfeit U.S. Postal Service Arrow Key. Powell also admitted that he paid for a hotel room using a credit card he found in stolen mail. He also admitted buying various items with credit and debit cards, checks, and gift cards he obtained from stolen mail.
This case was investigated by the U.S. Postal Inspection Service and the Rio Rancho Police Department. Assistant U.S. Attorney Brandon Fyffe prosecuted the case.
Additional Charges Filed Against Schuylkill County Man Previously Charged with Threatening the PresidentRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury today returned a superseding indictment yesterday adding seven additional charges against Shawn Christy, age 27, of McAdoo, who was previously indicted for threatening to harm President Trump and others.
According to United States Attorney David J. Freed, the superseding indictment charges Christy with interstate transportation of a stolen vehicle, two counts of interstate transportation of a stolen firearm, two counts of interstate transportation of a firearm while under a felony information, one count of unlawful possession of a firearm as a convicted felon, and one count of unlawful possession of a firearm as a fugitive.
The superseding indictment also contains the four threat offenses that were charged in the original indictment, including the threat against President Trump.
The superseding indictment alleges that Christy committed the new offenses between July 25, 2018 and August 20, 2018.
The threat to President Trump is being investigated by United States Secret Service, and the other charges are being investigated by the Federal Bureau of Investigation, and Butler Township Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the unlawful possession of firearms offenses and the interstate transportation of stolen firearms offenses is 10 years’ imprisonment. The maximum penalty for the interstate transportation of stolen vehicle offense is 10 years’ imprisonment. The maximum penalty for the interstate transportation of firearms while under a felony information is five years’ imprisonment. The maximum penalty for each threat offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tuesday 27 November 2018
Wentzville Man Pleads Guilty to Impersonating an FBI Agent and Possession of a Document-Making ImplementRead the Press Release
St. Louis, MO – Mark Van Ronzelen, 45, of Wentzville, pled guilty to impersonating a Federal Bureau of Investigation (FBI) special agent and felony possession of a document-making implement or authentication feature. Sentencing has been set for March 5, 2019.
According to court documents, the Wentzville Police Department received a report that Van Ronzelen falsely represented that he was a Federal agent to an off-duty police officer. At the time he encountered the off-duty officer, Van Ronzelen possessed and displayed a fraudulent Federal Bureau of Investigation identification card and what appeared to be a law enforcement badge.
During a search of the defendant’s residence, investigators recovered various fraudulent press and law enforcement credentials, including White House Press Pool credentials. Investigators also recovered a laptop computer which contained images and templates used to make the various credentials.
"If someone knocking on your door identifies him/herself as an FBI special agent, you can easily verify that information," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Ask to see FBI credentials, which includes a photo, and then call the local FBI field office to confirm."
Van Ronzelen faces a maximum penalty of 6 months in prison and a fine of $5,000 on the possession of a fraudulent FBI identification card and a maximum penalty of 15 years in prison and a $250,000 fine on the possession of a document-making implement. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation, the United States Secret Service, and the Wentzville Police Department. Assistant U.S. Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
United States Files Complaint to Forfeit More Than $3 Million from Companies Accused of Laundering Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
WASHINGTON - The United States has filed a complaint to forfeit $3,167,783 associated with a cooperating Singapore-based company (“Cooperating Company”); Apex Choice Ltd. (“Apex Choice”), a Chinese-based wax company; and Yuanye Wood Ltd. (“Yuanye Wood”), a Chinese-based wood company, announced U.S. Attorney for the District of Columbia Jessie K. Liu and Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office.
The complaint alleges that these three companies laundered United States dollars on behalf of sanctioned North Korean banks. According to the complaint, the North Korean banks used these laundered funds as part of a scheme to procure goods for the North Korean regime, as well as to illegally access the U.S. financial market.
The three companies allegedly were part of a scheme to launder payments to subsequently sanctioned entities, to include: Velmur Management Pte. Ltd. (“Velmur”), which the U.S. Treasury Department sanctioned for procuring Russian petroleum products for North Korea; Dandong Zhicheng Metallic Material Co. (“Dandong Zhicheng”), which the Treasury Department sanctioned for purchasing coal from North Korea, and then in turn laundering the proceeds of those sales to purchase items for North Korea, including nuclear and missile components; and Wee Tiong (S) Pte. Ltd. (“Wee Tiong”), which the Treasury Department sanctioned for laundering money through the U.S. financial system on behalf of North Korea.
The complaint also seeks a civil monetary penalty against Apex Choice and Yuanye Wood for prior sanctions and money laundering violations related to this scheme.
“This complaint alleges that parties in China and Singapore are part of a global money laundering network that coordinates with front companies to move North Korean money through the United States and violate the sanctions imposed by our government on North Korea,” said U.S. Attorney Jessie K. Liu. “This case demonstrates that we will seek significant remedies to address companies that violate U.S. national security, regardless of where they are doing business.”
“The FBI has found numerous foreign companies participating in North Korea’s scheme to launder money,” said FBI Special Agent in Charge Michael DeLeon. “As North Korea continues to find creative ways to circumvent international sanctions, we hope this investigation will compel foreign companies to do their due diligence when it comes to conducting business transactions and/or making third party payments using U.S. dollars. The FBI will continue to dedicate substantial resources to these types of investigations in order to stop illicit transactions. Companies engaging in deceptive banking practices may face criminal or civil action, and could be forced to forfeit funds.”
The complaint was filed on Nov. 26, 2018, in the U.S. District Court for the District of Columbia. According to the complaint, designated North Korean banks use companies, including the “Cooperating Company,” Apex Choice, and Yuanye Wood, to make U.S. dollar payments to North Korean front companies, which are managed by sanctioned North Korean banks.
The United Nations Panel of Experts described in 2017 how North Korean banks have been able to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are adapting by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad that are staffed by foreign nationals making use of front companies. These broad interwoven networks allow North Korean banks to conduct illicit procurement and banking activity.
The complaint alleges activity by the three companies that tracks this paradigm. The first company which is the subject of the complaint, the one identified as “Cooperating Company,” has agreed to the forfeiture of its funds. As part of its agreement to cooperate with the government, this company acknowledged that it was directed by an unauthorized Chinese money remitter to send payments to North Korean companies, when this company was seeking discounted rates for exchanging currency. Apex Choice, a wax company, is accused of paying numerous North Korean front companies with no relation to the wax industry. In a submission to the government, Apex Choice claimed that the known North Korean financial facilitators were wax companies in China. Chilbo, a North Korean wood exporting company based out of Equatorial Guinea, allegedly sold wood produced by North Koreans in forced labor camps to Yuanye Wood. According to the complaint, Yuanye Wood paid known North Korean financial facilitators for these services.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Phoenix Field Office is investigating the case. Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, and Brian P. Hudak are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick and former Paralegal Specialist Toni Anne Donato, and Assistant U.S Attorney Ari Redbord.
U.S. Postal Service Workers Sentenced for Accepting Bribes to Deliver Cocaine through the MailRead the Press Release
ATLANTA – The last defendant of a group of 16 U.S. Postal Service letter carriers and clerks from across the Atlanta area was sentenced to federal prison for accepting bribes to deliver packages of cocaine – two kilograms or more at a time – in a wide-reaching undercover operation. The defendants were willing to make the deliveries for bribes as low as $250, and received sentences of between three and nine years in prison.
“U.S. Postal Service workers are typically valuable members of the community, entrusted to deliver the mail every day to our homes,” said U.S. Attorney Byung J. “BJay” Pak. “This important operation identified and prosecuted 16 corrupt individuals who chose to abuse that trust and instead used their positions to bring what they thought were large amounts of dangerous drugs into those same communities for a quick payoff.”
“The FBI places a high priority on public corruption based investigations and we hope this sentencing will serve as a deterrent for others,” said Chris Hacker, Special Agent in Charge, FBI Atlanta Field Office. “The blatant abuse of the public trust in this case not only stains the reputation of all U.S. Postal Service employees, but it puts the residents on their routes in significant danger by bringing drugs into their community.”
“Postal employees are paid to deliver mail, not drugs,” said Imari R. Niles, Special Agent in Charge, U.S. Postal Service Office of Inspector General, Capital Metro Area Field Office. “The vast majority of the Postal Service’s 600,000 employees are hard-working, trustworthy individuals. When postal employees decide to risk their job, benefits, retirement, and freedom to get involved with drug trafficking, Special Agents of the U.S. Postal Service Office of Inspector General will work with the Federal Bureau of Investigation, DeKalb County District Attorney’s Office and the U.S. Attorney's Office to put them all in federal prison.”
“Drug trafficking, in itself, is an inherently dangerous crime,” said Sherry Boston, DeKalb County District Attorney. “When perpetrated by those in positions of public trust, citizen safety is severely compromised. The DeKalb County District Attorney’s Office is committed to working with our law enforcement partners to ferret out cases of public corruption and ensure that those who abuse their authority and violate the public’s trust, are held accountable for their actions.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, federal agents involved in the dismantling of a drug trafficking organization in Atlanta learned that drug traffickers had been bribing postal workers to intercept and specially deliver packages of drugs while they were on their regular routes, including through residential neighborhoods. The drug traffickers believed the postal workers were less likely to be caught by law enforcement because of their official jobs, and found that the corrupt postal workers were willing to hand deliver the drugs in exchange for bribes. That criminal partnership exploited the U.S. Postal Service to deliver dangerous drugs into the community, and also increased the risk that innocent postal workers and bystanders on their routes would be exposed to the dangerous substances or to rival drug traffickers who sometimes try to rob postal workers to steal packages of drugs.
To catch the corrupt postal workers, federal agents used a confidential source who posed as a drug trafficker looking for postal workers to deliver packages of kilogram quantities of cocaine or marijuana. The defendants agreed to deliver the packages and negotiated the amount of the bribes they would charge, while law enforcement agents watched from a distance and recorded the interactions. All the defendants chose to deliver cocaine instead of marijuana, believing they could charge a higher bribe for packages of cocaine. They also agreed to deliver packages on multiple occasions over a period of time. When the confidential source asked if they knew any other postal workers who did the same thing, some of the defendants introduced the confidential source to coworkers who also wanted to deliver packages (with the defendant claiming an additional bribe for every package their recruit delivered).
The defendants convicted as a result of this operation include:
- Cydra Rochelle Alexander, 33, of Riverdale, Georgia, a letter carrier assigned to the Ralph McGill Carrier Annex and Central City Branch of the Atlanta Post Office was sentenced to five years, 10 months in prison to be followed by four years of supervised release, and ordered to pay forfeiture in the amount of $4,500 by U.S. District Judge Leigh Martin May on February 22, 2018. Alexander pleaded guilty to these charges on November 27, 2017.
- Aurthamis O. Burch, a/k/a Tank, 47, of Snellville, Georgia, a letter carrier assigned to the Doraville Post Office was sentenced to three years, 10 months in prison to be followed by three years of supervised release, and ordered to pay forfeiture in the amount of $1,500 by U.S. District Judge Steve C. Jones on April 10, 2018. Burch pleaded guilty to these charges on December 11, 2017.
- Kawana Rashun Champion, 36, of Jonesboro, Georgia, a clerk assigned to the North Springs Branch of the Sandy Springs Post Office and Central City Branch of the Atlanta Post Office was sentenced to nine years in prison to be followed by four years of supervised release, and ordered to pay forfeiture in the amount of $10,500 by U.S. District Judge Leigh Martin May on May 11, 2018. Champion pleaded guilty to these charges on February 20, 2018.
- Eleanor Lolita Golden, a/k/a Eleanor Johnson, 55, of East Point, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to six years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $4,500 by U.S. District Judge Leigh Martin May on May 17, 2018. Golden pleaded guilty to these charges on December 20, 2017.
- Tonie Harris, 55, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office was sentenced to three years, one month in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $1,450 by U.S. District Judge Steve C. Jones on August 14, 2018. Harris pleaded guilty to these charges on March 20, 2018.
- Leea Janel Holt, 39, of Atlanta, Georgia, a letter carrier assigned to the Old National Branch of the Riverdale Post Office was sentenced to 6 years, 6 months in prison to be followed by 4 years of supervised release, and ordered to pay restitution in the amount of $4,500 by U.S. District Judge Leigh Martin May on November 27, 2018. Holt pleaded guilty to these charges on June 6 and August 28, 2018.
- Clifton Curtis Lee, a/k/a Cliff, 43, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office was sentenced to three years, 10 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,800 by U.S. District Judge Steve C. Jones on June 18, 2018. Lee pleaded guilty to these charges on February 28, 2018.
- Shakeed Anilah Magee, 41, of College Park, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to five years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on February 13, 2018. Magee pleaded guilty to these charges on November 14, 2017.
- Horace Manson, 41, of Roswell, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to three years, 10 months in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on April 17, 2018. Manson pleaded guilty to these charges on January 29, 2018.
- Olivia Marita Moore, 26, of Atlanta, Georgia, a letter carrier assigned to the Old National Branch of the Riverdale Post Office was sentenced to five years, 10 months in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $4,500 by U.S. District Judge Leigh Martin May on July 16, 2018. Moore pleaded guilty to these charges on January 5, 2018.
- Eddie Nash, 64, of Decatur, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to five years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on July 17, 2018. Nash pleaded guilty to these charges on December 14, 2017.
- Jeffrey A. Pearson, 61, of Austell, Georgia, a letter carrier assigned to the Decatur Post Office was sentenced to four years, nine months in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $2,000 by U.S. District Judge Eleanor L. Ross on May 22, 2018. Pearson pleaded guilty to these charges on February 1, 2018.
- Rodney Antwain Salter, 34, of Jonesboro, Georgia, a letter carrier assigned to the Martech Branch of the Atlanta Post Office was sentenced to five years in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $3,000 by U.S. District Judge Leigh Martin May on May 17, 2018. Salter pleaded guilty to these charges on December 20, 2017.
- Frank Webb, 41, of Lithonia, Georgia, a letter carrier assigned to the Central City Branch of the Atlanta Post Office was sentenced to three years, four months in prison to be followed by two years of supervised release, and ordered to pay forfeiture in the amount of $3,000 by U.S. District Judge Leigh Martin May on May 16, 2018. Webb pleaded guilty to these charges on January 30, 2018.
- Katrina Nicole Wilson, a/k/a Trina, 39, of Fairburn, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office was sentenced to eight years in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $9,500 by U.S. District Judge Leigh Martin May on August 27, 2018. Wilson pleaded guilty to these charges on April 12, 2018.
- Harvel Donta Young, a/k/a Dante, 41, of Atlanta, Georgia a letter carrier assigned to the Westside Annex Branch of the Marietta Post Office was sentenced to five years in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $1,800 by U.S. District Judge Steve C. Jones on August 14, 2018. Young pleaded guilty to these charges on May 1, 2018.
Additionally, Dexter Bernard Frazier, a/k/a Dec, 57, of Fairburn, Georgia, who was not a postal employee but participated in some of the package deliveries by connecting the confidential source with postal workers, was sentenced to nine years in prison to be followed by 10 years of supervised release, and ordered to pay restitution in the amount of $10,700 by U.S. District Judge Steve C. Jones on June 13, 2018. Frazier pleaded guilty to these charges on March 6, 2018.
This case was investigated by the Federal Bureau of Investigation, DeKalb County District Attorney’s Office, and U.S. Postal Service Office of Inspector General.
Assistant U.S Attorneys Garrett L. Bradford and Jill E. Steinberg, Deputy Chief of the Criminal Division, prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.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.
- Cydra Rochelle Alexander, 33, of Riverdale, Georgia, a letter carrier assigned to the Ralph McGill Carrier Annex and Central City Branch of the Atlanta Post Office was sentenced to five years, 10 months in prison to be followed by four years of supervised release, and ordered to pay forfeiture in the amount of $4,500 by U.S. District Judge Leigh Martin May on February 22, 2018. Alexander pleaded guilty to these charges on November 27, 2017.
Two Men Charged with Four Robberies of Convenience Stores in QueensRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Scott Brack and Elgin Brack with the armed robberies of four convenience stores in Queens. Elgin Brack was also charged with brandishing a firearm in furtherance of a crime of violence and discharging a firearm in furtherance of a crime of violence. Both defendants were arrested yesterday evening, made their initial appearances this afternoon before United States Magistrate Judge Steven M. Gold and were ordered detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the arrests.
“As alleged, the defendants struck four all-night commercial businesses in Queens in a span of fewer than three hours, including a Duane Reade store in Woodside where an employee was callously shot in the head simply for resisting the robbery,” stated United States Attorney Donoghue. “While most people slept through this night of terror, members of the ATF/NYPD Joint Robbery Task Force were working tirelessly to identify and quickly apprehend the perpetrators who will now face justice for their multiple crimes.”
“The aforementioned individuals are alleged to have committed brazen acts of violence terrorizing business owners in their community,” stated ATF Special Agent-in-Charge Benedict. “In one of their acts, a store manager was shot during a robbery attempt. If not for the work of multiple NYPD units and the ATF/NYPD Joint Robbery Task Force, they would be out on the streets continuing to reign terror on the innocent. ATF will continue to work with our partners to send a strong message to individuals that seek to spread violence in their community that all law enforcement resources will be used to apprehend and prosecute them for their violent actions. I would like to thank the United States Attorney’s office for their work in prosecuting this case.”
“New York City has achieved historic reductions in crime over the past two decades, but some outliers continue to traffic in violence and fear,” stated NYPD Commissioner O’Neill. “That is why the men and women of the NYPD must continue to be the very best at what we do: fighting crime and keeping people safe. Today’s charges highlight their exemplary work, and I commend the ATF investigators who work daily with our detectives on the Strategic Pattern Armed Robbery and Technical Apprehensions Task Force, or SPARTA. By so efficiently pursuing and strengthening high-profile armed-robbery cases like this, we – together with the U.S. Attorney’s Office for the Eastern District and all of our law-enforcement partners – are making the safest large city in the nation even safer.”
As detailed in the complaint, on November 26, 2018, at approximately 3:36 a.m., Elgin Brack entered a Duane Reade store at 60-02 Roosevelt Avenue in Woodside and pointed a gun at the store clerk. Brack then moved behind the store counter, attempted to force the clerk to turn over money and shot the clerk in the hand and the head as he resisted. Brack fled the Duane Reade and together with Scott Brack, traveled by car to a 7-Eleven store located at 50-92 Northern Boulevard in Long Island City where, at approximately 3:58 a.m., Elgin Brack demanded money at gunpoint and took $300 from an employee. Next, the defendants drove to a Rite Aid store located at 33-01 30th Avenue in Astoria at approximately 4:20 a.m., where Elgin Brack approached a store clerk and asked to purchase chewing gum. When the store clerk opened the cash register, Brack pointed a gun and demanded money. The store clerk handed over $802. Immediately outside the Rite Aid store, video surveillance captured Scott Brack discarding an item consistent in size and shape with the cash register tray taken from the prior 7-Eleven armed robbery. Finally, at approximately 5:45 a.m., Elgin Brack entered a second Rite Aid store located at 115-10 Merrick Boulevard in Jamaica, approached a store clerk, pointed a gun and demanded money. The store clerk complied and gave Elgin Brack $200.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a minimum of seven years in prison.
Assistant United States Attorney Phil Selden is in charge of the prosecution.
The Defendant:
SCOTT BRACK
Age: 50
Bronx, New YorkELGIN BRACK
Age: 22
Brooklyn, New YorkTwo International Cybercriminal Rings Dismantled and Eight Defendants Indicted for Causing Tens of Millions of Dollars in Losses in Digital Advertising FraudRead the Press Release
A 13-count indictment was unsealed today in federal court in Brooklyn charging Aleksandr Zhukov, Boris Timokhin, Mikhail Andreev, Denis Avdeev, Dmitry Novikov, Sergey Ovsyannikov, Aleksandr Isaev and Yevgeniy Timchenko with criminal violations for their involvement in perpetrating widespread digital advertising fraud. The charges include wire fraud, computer intrusion, aggravated identity theft and money laundering. Ovsyannikov was arrested last month in Malaysia; Zhukov was arrested earlier this month in Bulgaria; and Timchenko was arrested earlier this month in Estonia, all pursuant to provisional arrest warrants issued at the request of the United States. They await extradition. The remaining defendants are at large.
Also unsealed today in federal court in Brooklyn were seizure warrants authorizing the FBI to take control of 31 internet domains, and search warrants authorizing the FBI to take information from 89 computer servers, that were all part of the infrastructure for botnets engaged in digital advertising fraud activity. The FBI, working with private sector partners, redirected the internet traffic going to the domains (an action known as “sinkholing”) in order to disrupt and dismantle these botnets.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD) announced the charges and domain seizures.
“As alleged in court filings, the defendants in this case used sophisticated computer programming and infrastructure around the world to exploit the digital advertising industry through fraud,” stated United States Attorney Donoghue. “This case sends a powerful message that this Office, together with our law enforcement partners, will use all our available resources to target and dismantle these costly schemes and bring their perpetrators to justice, wherever they are.” Mr. Donoghue thanked the FBI Cyber Division for its extraordinary efforts in carrying out the multi-year investigation.
“As alleged, these individuals built complex, fraudulent digital advertising infrastructure for the express purpose of misleading and defrauding companies who believed they were acting in good faith, and costing them millions of dollars. This kind of exploitation undermines confidence in the system, on the part of both companies and their customers,” stated FBI Assistant Director-in-Charge Sweeney. “Thanks to the hard work of our legal attachés and law enforcement partners overseas, with the cooperation of our international and U.S.-based private sector partners, the defendants will face justice for their alleged crimes.”
“This investigation highlights public- and private-sector collaboration across the globe, and again confirms the absolute necessity for interagency information-sharing. Criminals – especially those operating via the internet – do not concern themselves with jurisdictional boundaries, so it is critical that the law-enforcement community works together to achieve our shared goal of protecting the people we serve,” stated NYPD Commissioner O’Neill. “I thank and commend the U.S. Attorney for the Eastern District, and all the investigators with the FBI Cyber Division and the NYPD. Together, we are ensuring that the vital systems and technologies of our economy are kept safe.”
The Criminal Scheme
The internet is, in large part, freely available to users worldwide because it runs on digital advertising: website owners display advertisements on their sites and are compensated for doing so by intermediaries representing businesses seeking to advertise their goods and services to real human customers. In general, digital advertising revenue is based on how many users click or view the ads on those websites. As alleged in court filings, the defendants in this case represented to others that they ran legitimate companies that delivered advertisements to real human internet users accessing real internet webpages. In fact, the defendants faked both the users and the webpages: they programmed computers they controlled to load advertisements on fabricated webpages, via an automated program, in order to fraudulently obtain digital advertising revenue.
The Datacenter-Based Scheme (Methbot)
As alleged in the indictment, between September 2014 and December 2016, Zhukov, Timokhin, Andreev, Avdeev and Novikov operated a purported advertising network (“Ad Network #1”) and, with Ovsyannikov’s assistance, carried out a digital ad fraud scheme. Ad Network #1 had business arrangements with other advertising networks whereby it received payments in return for placing advertising placeholders (“ad tags”) on websites. Rather than place these ad tags on real publishers’ websites, however, Ad Network #1 rented more than 1,900 computer servers housed in commercial datacenters in Dallas, Texas and elsewhere, and used those datacenter servers to load ads on fabricated websites, “spoofing” more than 5,000 domains. To create the illusion that real human internet users were viewing the advertisements loaded onto these fabricated websites, the defendants programmed the datacenter servers to simulate the internet activity of human internet users: browsing the internet through a fake browser, using a fake mouse to move around and scroll down a webpage, starting and stopping a video player midway, and falsely appearing to be signed into Facebook. Furthermore, the defendants leased more than 650,000 Internet Protocol (“IP”) addresses, assigned multiple IP addresses to each datacenter server, and then fraudulently registered those IP addresses to make it appear that that the datacenter servers were residential computers belonging to individual human internet users who were subscribed to various residential internet service providers. As a result of this scheme, Ad Network #1 falsified billions of ad views and caused businesses to pay more than $7 million for ads that were never actually viewed by real human internet users.
The Botnet-Based Scheme (3ve.2 Template A)
As also alleged in the indictment, between December 2015 and October 2018, Ovsyannikov, Timchenko and Isaev operated a purported advertising network (“Ad Network #2”) and carried out another digital ad fraud scheme. In this scheme, the defendants used a global “botnet”¾a network of malware-infected computers operated without the true owner’s knowledge or consent¾to perpetrate their fraud. The defendants developed an intricate infrastructure of command-and-control servers to direct and monitor the infected computers and check whether a particular infected computer had been flagged by cybersecurity companies as associated with fraud. By using this infrastructure, the defendants accessed more than 1.7 million infected computers, belonging to ordinary individuals and businesses in the United States and elsewhere, and used hidden browsers on those infected computers to download fabricated webpages and load ads onto those fabricated webpages. Meanwhile, the owners of the infected computers were unaware that this process was running in the background on their computers. As a result of this scheme, Ad Network #2 falsified billions of ad views and caused businesses to pay more than $29 million for ads that were never actually viewed by real human internet users.
The Botnet Takedown
Following the arrest of Ovsyannikov by Malaysian authorities, U.S. law enforcement authorities, in conjunction with various private sector companies, began the process of dismantling the criminal cyber infrastructure utilized in the botnet-based scheme, which involved computers infected with malicious software known in the cybersecurity community as “Kovter.” The FBI executed seizure warrants to sinkhole 23 internet domains used to further the charged botnet-based scheme or otherwise used to further the Kovter botnet. The FBI also executed search warrants at 11 different U.S. server providers for 89 servers related to the charged botnet-based scheme or Kovter.
In addition, as part of its investigation, the FBI discovered an additional cybercrime infrastructure committing digital advertising fraud through the use of datacenter servers located in Germany and a botnet of computers in the United States infected with malicious software known in the cybersecurity community as “Boaxxe.” The FBI executed seizure warrants to sinkhole eight domains used to further this scheme and thereby disrupt yet another botnet engaged in digital advertising fraud.
Finally, the United States, with the assistance of its foreign partners, executed seizure warrants for multiple international bank accounts in Switzerland and elsewhere that were associated with the schemes.
The charges in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Alexander F. Mindlin, Michael T. Keilty and Karin K. Orenstein are in charge of the prosecution.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad and foreign authorities in multiple countries provided critical assistance in this case. The Office extends its appreciation to the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian National Central Bureau of Interpol, the Supreme Cassation Prosecution Office of Bulgaria, the Regional Prosecution Office of Varna, the Cybercrime Department of the Bulgarian General Directorate for Combating Organized Crime, the Bulgarian Ministry of Interior Regional Directorate of Varna, the Office of the Prosecutor General of Estonia, the Estonian Police and Border Guard Board and the FBI’s Legal Attaché Offices in Malaysia, Bulgaria and Estonia for their assistance in apprehending defendants in this case. The Office also extends its appreciation to the German Bundeskriminalamt Cybercrime Intelligence Operations Department and Polizei Sachsen Polizeidirektion Zwickau Criminal Investigation Department, the Dutch National Police, the United Kingdom National Crime Agency, the French Police Cybercrime Central Bureau, the Swiss Federal Office of Justice, FBI’s Legal Attaché Offices in those countries, and Europol for their assistance in various aspects of the investigation and botnet takedown.
Multiple private sector organizations also provided critical assistance in this case. The Office extends its appreciation to White Ops, Inc. and Google LLC for their assistance in the investigation and botnet takedown. The Office also extends its appreciation to Proofpoint, Inc, Fox IT B.V., Microsoft Corporation, ESET, Trend Micro Inc., Symantec Corporation, CenturyLink, Inc, F-Secure Corporation, Malwarebytes, MediaMath, the National Cyber-Forensics and Training Alliance and The Shadowserver Foundation for their assistance in the botnet takedown.
For technical details on the malware and botnets referenced in this case, please see US-CERT Alert TA18-331A: https://www.us-cert.gov/ncas/alerts/TA18-331A
The Defendants:
ALEKSANDR ZHUKOV
Age: 38
Russian FederationBORIS TIMOKHIN
Age: 39
Russian FederationMIKHAIL ANDREEV
Age: 34
Russian Federation and UkraineDENIS AVDEEV
Age: 40
Russian FederationDMITRY NOVIKOV
Age: Unknown
Russian FederationSERGEY OVSYANNIKOV
Age: 30
Republic of KazakhstanALEKSANDR ISAEV
Age: 31
Russian FederationYEVGENIY TIMCHENKO
Age: 30
Republic of KazakhstanE.D.N.Y. Docket No. 18-CR-633 (ERK)
Two Greek Shipping Companies Plead Guilty to Illegally Discharging Oil into Texas Port WatersRead the Press Release
Two Greek shipping companies, Avin International LTD, and Nicos I.V. Special Maritime Enterprises, pleaded guilty yesterday in federal court in Beaumont, Texas, to charges stemming from several discharges of oil into the waters of Texas ports by the oil tanker M/T Nicos I.V., announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Joseph D. Brown for the Eastern District of Texas.
Avin International was the operator and Nicos I.V. Special Maritime Enterprises was the owner of the Nicos I.V., which is a Greek-flagged vessel. The Master of the Nicos I.V., Rafail-Thomas Tsoumakos, and the vessel’s Chief Officer, Alexios Thomopoulos, also pleaded guilty to making material false statements to members of the United States Coast Guard during the investigation into the discharges.
Both companies pleaded guilty to one count of obstruction of an agency proceeding, as well as one count of failure to report discharge of oil under the Clean Water Act, and three counts of negligent discharge of oil under the Clean Water Act. Under the plea agreement, the companies will pay a $4 million criminal fine and serve a four-year term of probation, during which vessels operated by the companies will be required to implement an environmental compliance plan, including inspections by an independent auditor. Mr. Tsoumakos and Mr. Thomopoulos each pleaded guilty to one count of making a material false statement and face up to five years in prison when sentenced. A sentencing date has not been set.
“The international ports of Houston and Port Arthur are no one’s dumping ground,” said Assistant Attorney General Clark. “Vessel operators coming to the United States must not foul American waterways. Those who knowingly discharge their waste and lie to the Coast Guard to dodge their legal responsibilities under federal law are on notice that our investigators and prosecutors stand ready to hold them accountable.”
“We take the violation of our environmental protection laws seriously,” said U.S. Attorney Joseph D. Brown. “We expect shipping and oil companies to do the same. They can do terrible damage to our coastlines and wildlife, and we all have to make sure that does not happen.”
“The Coast Guard Investigative Service will continue to vigorously investigate and hold accountable individuals and corporations who illegally discharge pollutants into the marine environment,” said Brian Jeanfreau, Special Agent-In-Charge of the U.S. Coast Guard Investigative Service, Gulf Region.
According to documents filed in court, the Nicos I.V. was equipped with a segregated ballast system, a connected series of tanks used to control the trim and list of the vessel by taking on or discharging water, the latter involving an operation called deballasting. At some point prior to July 6, 2017, the ballast system of the Nicos I.V. became contaminated with oil and that oil was discharged twice from the vessel into the Port of Houston on July 6 and July 7, 2017, during deballasting operations. Both Tsoumakos and Thomopoulos were informed of the discharges of oil in the Port of Houston. Tsoumakos failed to report the discharges as required under the Clean Water Act. Neither discharge was recorded in the vessel’s oil record book, as required under MARPOL and the Act to Prevent Pollution from Ships.
After leaving the Port of Houston, en route to Port Arthur, Texas, the deck crew was instructed to open the ballast tanks, and oil was observed in several of the tanks. After arriving in Port Arthur, additional oil began bubbling up next to the vessel, causing a report to the U.S. Coast Guard. During the ensuing investigation, both Tsoumakos and Thomopoulos lied to the Coast Guard, stating, among other things, that they had not been aware of the oil in the ballast system until after the discharge in Port Arthur, and that they believed that the oil in the ballast tanks had entered them when the vessel took on ballast water in Port Arthur.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard Sector MSU Port Arthur, which conducted the inspection of the ship. The prosecution was handled by Trial Attorney Lauren Steele of the Environmental Crimes Section of the U.S. Department of Justice and Assistant United States Attorney Joseph Batte of the Eastern District of Texas.
Two Additional Mississippi Real Estate Investors Plead Guilty to Conspiracy to Rig Bids at Public Foreclosure AuctionsRead the Press Release
Mississippi real estate investors Christopher Vaughan and Jon Gregg Goodhart Jr. pleaded guilty today for their roles in a conspiracy to rig bids at public real estate foreclosure auctions in Mississippi, the Department of Justice announced.
Including Vaughan and Goodhart, nine real estate investors have entered guilty pleas in this conspiracy. Separate felony charges were filed against Vaughan on November 9, 2018, and Goodhart on November 19, 2018, in the U.S. District Court for the Southern District of Mississippi.
“The conspirators worked together to cheat the system and thereby increased the financial losses on these foreclosed homes,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Justice Department will continue to work with our partners to hold violators of the antitrust laws accountable.”
“These types of crimes affect all Americans, because when individuals rig bids at auctions, it ultimately damages our economy and hurts individuals,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “We want to send a clear message to those participating in this type of corruption: the FBI and Department of Justice will investigate and prosecute anyone betraying the trust of our country’s economic foundation.”
According to court documents, from at least as early as June 9, 2011, through at least as late as February 8, 2017, Vaughan conspired with others not to bid against one another for selected public real estate foreclosure auctions in the Southern District of Mississippi. Goodhart participated in the conspiracy from as early as August 20, 2009, through at least as late as December 11, 2014. Co-conspirators made and received payoffs in exchange for their agreement not to bid.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The investigation is being conducted by Antitrust Division attorneys in the Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.
Three Convicted, in Separate Cases, of Distributing Fentanyl that Resulted in a Fatal OverdoseRead the Press Release
LEXINGTON, Ky. – Defendants, in three separate indictments, have entered guilty pleas to distributing fentanyl that resulted in a death. In one case, Kloud Logan Jones, 27, of Mt. Sterling, Ky., pleaded guilty on October 19, 2018. Jones admitted that on November 23, 2017, he distributed the lethal drug to an individual identified as R.A.S., while both were inmates at the Montgomery County Regional Jail. Video surveillance from the jail captured the incident. The Montgomery County Sheriff’s Department and the Drug Enforcement Administration (DEA) jointly investigated the death, which led to federal charges.
In a separate case, Garry Sean Ramone Drake, Jr, 26, of Lexington, pleaded guilty on November 26, 2018, to distribution of fentanyl resulting in the death of an individual identified as M.R., on November 30, 2017, in Fayette County. Drake is the second individual convicted of distribution resulting in M.R.’s death. Phillip Clayton Jennings, 23, also of Lexington, previously entered a guilty plea to the same charge. Proof gathered during the investigation showed that both defendants were in the chain of distribution of the fentanyl mixture that led to the death. The Lexington Police Department and the DEA jointly investigated the death, which led to federal charges.
All three defendants face a mandatory minimum sentence of 20 years and a maximum sentence of life imprisonment. Sentencing for each of the defendants will occur in the United States District Courthouse, in Lexington, before the United States District Judge Danny C. Reeves.
“The distribution of fentanyl and other dangerous drugs is devastating our community with addiction and death,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “These three convictions demonstrate law enforcement’s continuing commitment to thoroughly investigate and prosecute drug distribution that results in an overdose. Each of these defendants will be facing a lengthy sentence of imprisonment, based on their decision to distribute fentanyl. Their conduct resulted in a death and the loss of their freedom is now the consequence.”
United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Fred Shortridge, Montgomery County Sheriff; and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly announced the convictions. Assistant United States Attorney Todd Bradbury prosecuted the cases on behalf of the United States.
Three Aliens Indicted on Multiple Immigration ViolationsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging BELARMINO LORENZO-LOPEZ, age 25, of Guatemala, with possession of unlawfully obtained documents, aggravated identity theft, and illegal reentry, OBISPO EULOGIO PEREZ-CABRERA, age 29, of Guatemala, with false attestation, possession of unlawfully obtained document, false claim of United States citizenship with intent to obtain a State benefit and service, and failure to register and be fingerprinted, and GUSTAVO DEJESUS SERPAS-VASQUEZ, age 41, of El Salvador, with illegal reentry.
If convicted of possession of unlawfully obtained documents, aggravated identity theft, and illegal reentry of a deported alien, LORENZO-LOPEZ, found in Duplin County, would face maximum penalties of fourteen years’ imprisonment, a $750,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of false attestation, possession of unlawfully obtained document, false claim of United States citizenship with intent to obtain a State benefit and service, and failure to register and be fingerprinted, PEREZ-CABRERA, found in Wayne County, would face maximum penalties of twenty years’ and six months imprisonment, a $751,000 fine, and a term of supervised release following any term of imprisonment.
SERPAS-VASQUEZ, found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (illegal reentry by a convicted felon). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations under the Document Benefit Fraud Task Force.
The Last of 21 Latin King Members and Associates Sentenced to 27 Years in Prison for Racketeering Conspiracy Involving Two Murders in IndianaRead the Press Release
A Cedar Lake, Indiana Latin Kings gang member, was sentenced to 324 months in prison followed by five years of supervised release after pleading guilty to conspiracy to commit racketeering activity and conspiracy to possess with intent to distribute cocaine and marijuana for his role and participation in the Latin Kings street gang, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L Kirsch II for the Northern District of Indiana.
Sergio M. Robles aka Checko, 30, was sentenced by U.S. District Court Judge Jon E. DeGuilio. At sentencing, Robles was held responsible for participating in the December 2003 murder of Jonathan Zimmerman in Hammond, Indiana, and the May 2008 murder of Jose Cortez in East Chicago, Indiana. The Latin Kings suspected Zimmerman was involved in a drug transaction with counterfeit currency. Accordingly, Zimmerman was shot and killed by a co-defendant. Jose Cortez was shot to death by another co-defendant because the Latin Kings believed Cortez was a member of a rival street gang. According to documents in this case, Robles possessed a firearm in furtherance of the gang’s activities and was involved in a conspiracy to distribute 150 kilograms of cocaine and 1,000 kilograms of marijuana.
“Today’s 27-year sentence demonstrates that our focused efforts on investigating and prosecuting gang members committing violent acts on the streets of Northern Indiana, past or present, is long from over,” said U.S. Attorney Kirsch. “Just last week we had a member receive a 28-year sentence. Our community and law enforcement partnerships are some of the best and we will continue investigating and prosecuting these type of cases.”
According to the third superseding indictment returned on Nov. 16, 2011, the Latin Kings is a nationwide gang that originated in Chicago and has branched out in Indiana and throughout the United States, including to Texas. The Latin Kings is a well-organized street gang that has specific leadership and is comprised of regions that include multiple chapters. The third superseding indictment filed in this case alleges that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas.
In addition to Robles, 19 other co-defendants, including two former Chicago police officers, entered guilty pleas and were previously sentenced for their roles in the racketeering conspiracy. One co-defendant, Martin Anaya, was convicted of racketeering and drug conspiracies at trial and subsequently sentenced to 30 years in prison.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Griffith Police Department; the Chicago Police Department; the East Chicago Police Department; the Hammond Police Department; the Highland Police Department; the Houston Police Department and the Lubbock Police Department. This case was prosecuted by the Department of Justice Criminal Division’s Organized Crime and Gang Section (OCGS) and the U.S. Attorney’s Office for the Northern District of Indiana. Assistant U.S. Attorneys Joseph A. Cooley (formally a Trial Attorney with OCGS) and David J. Nozick prosecuted this case.
The Last of 21 Latin King Members and Associates Sentenced to 27 Years in Prison for Racketeering Conspiracy Involving Two Murders in IndianaRead the Press Release
WASHINGTON - A Cedar Lake, Indiana Latin Kings gang member, was sentenced to 324 months in prison followed by five years of supervised release after pleading guilty to conspiracy to commit racketeering activity and conspiracy to possess with intent to distribute cocaine and marijuana for his role and participation in the Latin Kings street gang, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L Kirsch II for the Northern District of Indiana.
Sergio M. Robles aka Checko, 30, was sentenced by U.S. District Court Judge Jon E. DeGuilio. At sentencing, Robles was held responsible for participating in the December 2003 murder of Jonathan Zimmerman in Hammond, Indiana, and the May 2008 murder of Jose Cortez in East Chicago, Indiana. The Latin Kings suspected Zimmerman was involved in a drug transaction with counterfeit currency. Accordingly, Zimmerman was shot and killed by a co-defendant. Jose Cortez was shot to death by another co-defendant because the Latin Kings believed Cortez was a member of a rival street gang. According to documents in this case, Robles possessed a firearm in furtherance of the gang’s activities and was involved in a conspiracy to distribute 150 kilograms of cocaine and 1,000 kilograms of marijuana.
“Today’s 27-year sentence demonstrates that our focused efforts on investigating and prosecuting gang members committing violent acts on the streets of Northern Indiana, past or present, is long from over,” said U.S. Attorney Kirsch. “Just last week we had a member receive a 28-year sentence. Our community and law enforcement partnerships are some of the best and we will continue investigating and prosecuting these type of cases.”
According to the third superseding indictment returned on Nov. 16, 2011, the Latin Kings is a nationwide gang that originated in Chicago and has branched out in Indiana and throughout the United States, including to Texas. The Latin Kings is a well-organized street gang that has specific leadership and is comprised of regions that include multiple chapters. The third superseding indictment filed in this case alleges that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas.
In addition to Robles, 19 other co-defendants, including two former Chicago police officers, entered guilty pleas and were previously sentenced for their roles in the racketeering conspiracy. One co-defendant, Martin Anaya, was convicted of racketeering and drug conspiracies at trial and subsequently sentenced to 30 years in prison.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Griffith Police Department; the Chicago Police Department; the East Chicago Police Department; the Hammond Police Department; the Highland Police Department; the Houston Police Department and the Lubbock Police Department. This case was prosecuted by the Department of Justice Criminal Division’s Organized Crime and Gang Section (OCGS) and the U.S. Attorney’s Office for the Northern District of Indiana. Assistant U.S. Attorneys Joseph A. Cooley (formally a Trial Attorney with OCGS) and David J. Nozick prosecuted this case.
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Two Greek Shipping Companies Plead Guilty to Illegally Discharging Oil into Texas Port WatersRead the Press Release
WASHINGTON – Two Greek shipping companies, Avin International LTD, and Nicos I.V. Special Maritime Enterprises, pleaded guilty yesterday in federal court in Beaumont, Texas, to charges stemming from several discharges of oil into the waters of Texas ports by the oil tanker M/T Nicos I.V., announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Joseph D. Brown for the Eastern District of Texas.
Avin International was the operator and Nicos I.V. Special Maritime Enterprises was the owner of the Nicos I.V., which is a Greek-flagged vessel. The Master of the Nicos I.V., Rafail-Thomas Tsoumakos, and the vessel’s Chief Officer, Alexios Thomopoulos, also pleaded guilty to making material false statements to members of the United States Coast Guard during the investigation into the discharges.
Both companies pleaded guilty to one count of obstruction of an agency proceeding, as well as one count of failure to report discharge of oil under the Clean Water Act, and three counts of negligent discharge of oil under the Clean Water Act. Under the plea agreement, the companies will pay a $4 million criminal fine and serve a four-year term of probation, during which vessels operated by the companies will be required to implement an environmental compliance plan, including inspections by an independent auditor. Mr. Tsoumakos and Mr. Thomopoulos each pleaded guilty to one count of making a material false statement and face up to five years in prison when sentenced. A sentencing date has not been set.
“The international ports of Houston and Port Arthur are no one’s dumping ground,” said Assistant Attorney General Clark. “Vessel operators coming to the United States must not foul American waterways. Those who knowingly discharge their waste and lie to the Coast Guard to dodge their legal responsibilities under federal law are on notice that our investigators and prosecutors stand ready to hold them accountable.”
“We take the violation of our environmental protection laws seriously,” said U.S. Attorney Joseph D. Brown. “We expect shipping and oil companies to do the same. They can do terrible damage to our coastlines and wildlife, and we all have to make sure that does not happen.”
“The Coast Guard Investigative Service will continue to vigorously investigate and hold accountable individuals and corporations who illegally discharge pollutants into the marine environment,” said Brian Jeanfreau, Special Agent-In-Charge of the U.S. Coast Guard Investigative Service, Gulf Region.
According to documents filed in court, the Nicos I.V. was equipped with a segregated ballast system, a connected series of tanks used to control the trim and list of the vessel by taking on or discharging water, the latter involving an operation called deballasting. At some point prior to July 6, 2017, the ballast system of the Nicos I.V. became contaminated with oil and that oil was discharged twice from the vessel into the Port of Houston on July 6 and July 7, 2017, during deballasting operations. Both Tsoumakos and Thomopoulos were informed of the discharges of oil in the Port of Houston. Tsoumakos failed to report the discharges as required under the Clean Water Act. Neither discharge was recorded in the vessel’s oil record book, as required under MARPOL and the Act to Prevent Pollution from Ships.
After leaving the Port of Houston, en route to Port Arthur, Texas, the deck crew was instructed to open the ballast tanks, and oil was observed in several of the tanks. After arriving in Port Arthur, additional oil began bubbling up next to the vessel, causing a report to the U.S. Coast Guard. During the ensuing investigation, both Tsoumakos and Thomopoulos lied to the Coast Guard, stating, among other things, that they had not been aware of the oil in the ballast system until after the discharge in Port Arthur, and that they believed that the oil in the ballast tanks had entered them when the vessel took on ballast water in Port Arthur.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard Sector MSU Port Arthur, which conducted the inspection of the ship. The prosecution was handled by Trial Attorney Lauren Steele of the Environmental Crimes Section of the U.S. Department of Justice and Assistant United States Attorney Joseph Batte of the Eastern District of Texas.
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Twelve Individuals Charged in Extensive Health Care Fraud Conspiracy to Defraud Medicaid Home Care ProgramRead the Press Release
PITTSBURGH, Pa. – Ten residents of Western Pennsylvania, a resident of Georgia, and a resident of South Carolina were charged by a federal grand jury in a 22-count indictment related to a years-long conspiracy to defraud the Pennsylvania Medicaid program, United States Attorney Scott W. Brady announced today.
Arlinda Moriarty, Daynelle Dickens, Julie Wilson, Tamika Adams, Tony Brown, Terry Adams, Terra Dean, Tionne Street, Keith Scoggins and Larita Walls, all residing in and around Pittsburgh, Pennsylvania, along with Tia Collins, a resident of South Carolina, and Luis Columbie-Abrew, a resident of Georgia, are charged with one count each of conspiracy to commit health care fraud and health care fraud. Moriarty, Dickens, Wilson and Tamika Adams are also charged with one count of concealing material facts in relation to a health care matter. In addition, Moriarty, Tamika Adams and Columbie-Abrew each are charged with multiple counts of aggravated identity theft.
According to the Indictment, between January 2011 and April 2017, home health care companies owned and operated by the conspirators received more than $87,000,000 in Medicaid payments. During that time, all 12 of the defendants, along with other individuals, participated in a wide-ranging criminal conspiracy to defraud the Pennsylvania Medicaid program which resulted in the payment of millions of dollars in illegal Medicaid payments. The Indictment sets forth dozens of fraudulent acts by the defendants, including making false claims for services that were never provided, creating fake employees, improperly using consumers’ personal identifying information, and falsifying documentation during state audits of the companies. In some instances, the Indictment alleges that the defendants were actually working at other jobs or living out of the area. In other instances, Medicaid claims were submitted for services for consumers who were actually hospitalized, incarcerated, or deceased.
"Home health care programs are critical to the ability of patients with serious physical limitations, especially the elderly, to receive the care they need while remaining independent. Those who provide home health care are expected to deliver services honestly," said U.S. Attorney Brady. "When criminals cheat and steal from these programs, they not only steal from the taxpayers, but they steal from the most vulnerable members of our community."
"Health care fraud diverts taxpayer dollars and lines the pockets of dishonest health care providers," said FBI Special Agent in Charge Robert Jones. "The FBI will continue to aggressively investigate these cases and work with our state and federal partners to ensure those who commit Medicaid fraud are prosecuted."
"Ensuring the safety of Medicaid beneficiaries is of the upmost importance," said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services in Philadelphia. "We will continue to work with the U.S. Attorney’s Office and all our fellow law enforcement partners, to aggressively investigate allegations of fraud, waste, and abuse in HHS programs."
"Criminals who commit Medicaid fraud are stealing tax dollars that cannot be put to use caring for vulnerable Pennsylvanians who need assistance," said Pennsylvania Attorney General Josh Shapiro. "That’s why my Medicaid Fraud Control section worked closely with U.S. Attorney Brady and other federal law enforcement partners on this investigation. We’ll investigate and prosecute health care fraud wherever we find it."
Tommy Coke, Postal Inspector in Charge of the Pittsburgh Division stated, "This investigation was an excellent example of partnership among the law enforcement agencies, working together to bring down a health care fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing the individuals in this scheme to justice."
"This indictment is the byproduct of a joint investigative effort and is the first step toward holding these individuals accountable for their actions", said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. "The Agents of IRS-CI will continue working with our fellow law enforcement partners on these types of investigations by using our financial expertise to trace the flow of money."
In addition to the 12 defendants charged in the Indictment, four other defendants—Travis Moriarty, Tiffhany Covington, Brenda Lowry and Autumn Brown—have been charged in separate criminal Informations for their involvement in the conspiracy to commit health care fraud.
The conspiracy and health care fraud charges each carry a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. The concealment of material facts in relation to a health care matter charge carries a maximum total sense of not more than five years in prison, a fine of $250,000, or both. The aggravated identity theft charges carry a mandatory sentence of two years in prison to run consecutively with any sentence imposed on any other charge and a fine of no more than $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
St. Louis Resident Indicted for Role in a Stolen Identity Fraud Scheme That Claimed $12 Million in Tax RefundsRead the Press Release
WASHINGTON – A federal grand jury sitting in St. Louis, Missouri, returned an indictment, which was unsealed yesterday, against a St. Louis resident for his role in a sophisticated stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jeffrey B. Jensen for the Eastern District of Missouri.
The indictment charges Babatunde Olusegun Taiwo with conspiracy to file false claims, mail fraud, wire fraud, access device fraud, and aggravated identity theft. To carry out the scheme, Taiwo and others allegedly obtained the payroll information of employees of various public school systems by accessing without authorization a payroll company database. Taiwo and others also allegedly obtained IRS Forms W-2 of various companies through the use of business email schemes. To conceal their involvement, Taiwo and his co-conspirators allegedly obtained and used without authorization several Electronic Filing Identification Numbers issued in the names of tax preparation businesses. As charged in the indictment, Taiwo then arranged for mail forwarding services to be set up in the names of those tax preparers in various cities across the United States, including Reno, Nevada, and Salt Lake City, Utah, and directed mail to be sent to an accomplice’s residence in St. Louis, Missouri.
Taiwo and his co-conspirators allegedly used the school employee payroll information they illegally obtained to file fraudulent tax returns, and computer software to mask the location of where the returns were filed. As charged in the indictment, over 2,000 fraudulent tax returns claiming more than $12 million in tax refunds from the IRS were filed through the scheme.
If convicted, Taiwo faces a statutory maximum sentence of 10 years in prison for the conspiracy to file false claims count, 20 years in prison for each count of wire and mail fraud, 15 years for each count of access device fraud, and a mandatory minimum sentence of two years in prison for the aggravated identity theft. The defendant also faces substantial monetary penalties, supervised release, restitution, and forfeiture.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Jensen commended special agents of Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation and the United States Postal Inspection Service as well as the Dothan Alabama Police Department and Alexander City Alabama Police Department, who investigated this case, and Trial Attorneys Michael C. Boteler and Grace Albinson of the Tax Division, who are prosecuting this case with assistance from the United States Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Shiprock Man Sentenced to Prison for Shooting Firearm into Occupied ResidenceRead the Press Release
PHOENIX – Yesterday, Brandon Lee Curley, 26, of Shiprock, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 33 months in prison followed by three years of supervised release. Curley had previously pleaded guilty to one count of assault with a dangerous weapon.
Curley admitted to firing a shotgun into a residence on the Navajo Nation Indian Reservation. The victim, who was inside the residence at the time, was not injured. Both Curley and the victim were members of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08132-PCT-DJH
RELEASE NUMBER: 2018-160_Curley
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Senior Member of “Manche Boy Mafia” Gang Sentenced to More Than Eleven Years in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced Equanzick Howell a/k/a “Pookie,” “Big Pook,” and “Pook Pook” (31, Tampa) to 11 years and 2 months in federal prison for theft of government property and aggravated identity theft. Howell had pleaded guilty on August 16, 2018.
According to court documents, between 2011 and 2018, Howell, who was a senior member of the Manche Boy Mafia or “MBM” gang, committed tax fraud, credit card fraud, and identity theft in the Tampa Bay area. Between March and June 2013, Howell filed 12 fraudulent tax returns, including one in his own name, and directed that the refunds be loaded onto his H&R Block card. All of the returns, except for Howell’s own return, were filed using identities stolen from individuals who were deceased, elderly, and/or severely mentally disabled. Howell used the H&R Block account to make ATM withdrawals and purchases from Tampa-area retailers and restaurants, including a $2,500 payment to a cosmetic surgery center where Howell’s girlfriend received a cosmetic procedure.
For the 2012, 2013, and 2014 tax years, Howell and those working with him made false claims to the IRS for tax refunds to which they were not entitled in the amount of a least $976,000 and, as a result, received approximately $140,000 in fraudulently obtained tax refunds.
Investigators also learned that, starting in early 2015, members of MBM, including Howell, began purchasing stolen credit and debit card account numbers online from various websites, many of which use bitcoin as their currency. Once the members of this conspiracy purchased the stolen account numbers, they or someone working with them created counterfeit credit cards. The conspirators typically used the counterfeit credit cards to purchase gift cards and electronics, which they kept or later sold for cash. Howell also used counterfeit credit cards to obtain gift cards, which were used to purchase firearms and ammunition. To date, investigators have determined that Howell was responsible for approximately $1.1 million in intended or attempted purchases with counterfeit credit cards and stolen account information.
“The sentencing of Equanzick Howell represents the tireless efforts of dedicated IRS Special Agents, in coordination with the FBI and Tampa Police Department, to eradicate the scourge of stolen identity related tax fraud,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “Howell and his gang heaped untold nightmarish anxiety on their victims, which surely any of us would feel upon learning we had become the target of an identity thief. We are firmly committed to teaming up with our law enforcement partners to pursue any individual and dismantle any organization brazen enough to attempt this heinous crime.”
This case was investigated by the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
San Francisco Resident Sentenced to 10 Years in Prison for Manufacturing Counterfeit Adderall Pills Containing MethamphetamineRead the Press Release
SAN FRANCISCO – Gino Carl von Eckstein was sentenced to 10 years in prison today for possessing with intent to distribute methamphetamine announced United States Attorney Alex G. Tse; Drug Enforcement Administration Special Agent in Charge Chris Nielsen; U.S. Customs and Border Protection Director of Field Operations Brian J. Humphrey; Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Tara Sullivan. The sentence was handed down by the Honorable Charles R. Breyer, U.S. Senior District Judge.
Eckstein, 25, of Brisbane, Calif., pleaded guilty to the charge on September 5, 2018, after federal agents executed search warrants on his car and three residences he was using. Eckstein admitted that he possessed counterfeit “Adderall” pills, or pills that appeared to be Adderall, but in fact contained methamphetamine. Eckstein admitted he stored the pills in his car, at three locations in San Francisco’s Richmond District, in Brisbane, and in San Leandro. Eckstein further admitted he possessed the equipment and ingredients necessary to manufacture counterfeit Adderall pills. In total, agents allegedly found over 1,000 grams of suspected methamphetamine.
“Counterfeit pharmaceuticals are a danger to the community,” said U.S. Attorney Tse. “As this case illustrates, we are responding to the emerging threat of counterfeit pharmaceuticals in our district, particularly when the substances are laced with potentially life endangering drugs. Those individuals who put these dangerous products in our community will be prosecuted to the fullest extent of the law.”
“Producing unregulated concoctions and marketing them as a legitimate substance is criminal and dangerous. These drugs are unsafe and their use can have devastating consequences,” stated DEA Special Agent in Charge Chris Nielsen. “We will continue working with our partners to hold people accountable who threaten public health and safety by distributing counterfeit pharmaceuticals.”
“This a textbook example of how multiple law-enforcement agencies work together to keep dangerous drugs off the street and bring criminals to justice,” said Brian J. Humphrey, CBP Director of Field Operations.
“This investigation and subsequent sentence is the result of the FBI and our partners’ unwavering commitment to keep our citizens safe,” said FBI San Francisco Special Agent in Charge John F. Bennett. “Counterfeit pharmaceuticals laced with dangerous substances on our streets threaten the safety of our citizens and will not be tolerated.”
A federal grand jury filed an indictment on June 26, 2018, charging Eckstein with one count of intentionally possessing with intent to distribute 500 grams and more of a mixture and substance containing methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii). He pleaded guilty to the charge.
In addition to the prison term, Judge Breyer also sentenced the defendant to a 5-year period of supervised release. Eckstein has been in continuous custody since June 15, 2018, and will begin serving his sentence immediately.
Assistant United States Attorney Sheila Armbrust in prosecuting this case. This case is the result of an investigation by the DEA, CBP, FBI, and IRS-CI, with assistance from the San Francisco Police Department. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
San Antonio Man Sentenced for January 2018 Threats Made Against Players and Fans at NFL Playoff Game at Heinz FieldRead the Press Release
PITTSBURGH, PA – A resident of San Antonio, Texas, has been sentenced in federal court to 18 months incarceration on his conviction of Threatening Interstate Communications, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Yuttana Choochongkol, aka Jason Manotham, age 41.
According to the information presented to the court, on January 10 and 11, 2018, Choochongkol made three threats against the athletes and attendees of the National Football League Divisional Playoff Game on Sunday, January 14, 2018. Choochongkol used the internet to send threats to Pittsburgh, Pennsylvania through the KDKA.com and Heinzfield.com "contact us" portals that he was going to engage in mass shootings and suicide at the game.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government. In imposing the sentence, the Court noted the seriousness of the offense of sending internet communications threatening to harm fans and players participating in a public event.
U.S. Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Yuttana Choochongokol.
Salem Man Pleads Guilty to Tax EvasionRead the Press Release
CONCORD- Blake Ruggiero, 44, of Salem, New Hampshire, pleaded guilty in federal court to tax fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, since 1994, the defendant has owned and operated Romano’s Pizza in Salem, New Hampshire. The defendant paid a substantial portion of wages to Romano’s employees in cash and failed to declare these wages to the Internal Revenue Service in order to reduce his tax liability. The defendant kept multiple sets of books that were seized as part of a search warrant. These documents showed the amounts that the defendant paid in cash but did not report. As a result of the defendant’s conduct, between 2011 and 2016, the defendant failed to pay to the IRS $621,614.88 of employment-related taxes.
Ruggiero is scheduled to be sentenced on March 4, 2019.
"All citizens have an obligation to comply with the federal tax laws,” said U.S. Attorney Murray. “When business owners fraudulently avoid their tax obligations, they violate federal law and face potential federal prosecution.”
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office. "The failure to pay over withholding taxes is a serious offense. Employment tax fraud can also impact employees, who may see future Social Security and Medicare benefits reduced or eliminated due to their employers’ criminal conduct."
This matter was investigated by the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Seth Aframe.
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Rochester, New York Man Sentenced to Three Years in Federal Prison on Drug ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Derrius Smalls, 20, of Rochester, New York was sentenced in U.S. District Court in Bangor, Maine to three years in prison and a three year term of supervised release, including a six month term of community confinement, following his conviction for possession with the intent to distribute crack cocaine and heroin.
According to court records, on March 9, 2017, Smalls ran from a vehicle carrying 550 bags of heroin and 399 bags of crack cocaine when the vehicle he was in was stopped by state and federal agents in Scarborough, Maine. Smalls managed to hide the drugs and avoid arrest that night. Smalls was transporting the drugs for Darrell “Coast” Newton and intended to deliver them to an individual in Maine. The following day, a Scarborough Police Department K-9 located the drugs.
Smalls was subsequently indicted together with Newton and fourteen other defendants from Rochester, New York and Central Maine. All defendants have entered pleas of guilty.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Scarborough Police Department and the Maine State Police.
Repeat Offender Sentenced to 33 Months in Prison for Escaping from a Halfway House in Southeast WashingtonRead the Press Release
WASHINGTON – Daquan Jackson, 22, of Washington, D.C., was sentenced today to 33 months in prison for escaping from a halfway house in the District of Columbia, announced U.S. Attorney Jessie K. Liu and Robert Turner, United States Marshal for the District of Columbia.
Jackson pled guilty in September 2018 in the U.S. District Court for the District of Columbia, to escape from custody. He was sentenced by the Honorable Trevor N. McFadden. Following his prison term, Jackson will be placed on three years of supervised release.
Jackson is the most recent defendant to be sentenced as a result of ongoing efforts of the U.S. Marshals Service and the U.S. Attorney’s Office to arrest violent offenders who escape from halfway houses. The offenders were under the supervision of the Federal Bureau of Prisons and were afforded an opportunity to complete the final portion of their sentences at halfway houses to assist in their reentry to the community. In 2017, the U.S. Marshals Service requested the assistance of the U.S. Attorney’s Office with the investigation, prosecution, and disposition of an increased number of escape cases. To date, the collaborative effort has led to 23 felony convictions of defendants who either failed to report or absconded from the Hope Village Halfway House located in Southeast Washington.
According to the government’s evidence, on June 13, 2014, Jackson was convicted of armed robbery in the Superior Court of the District of Columbia. He was sentenced to five years in prison, to be followed by five years of supervised release. In that case, Jackson, armed with a handgun, approached two victims in an alley behind the 3500 block of B Street SE. He pointed his handgun at the victims and took their property, which included a cell phone and car keys. Jackson used the car keys to steal a 2006 Ford Mustang that belonged to one of the victims.
After being sentenced for armed robbery, Jackson served the remainder of his sentence at the Federal Correctional Institution-Gilmer in Glenville, West Virginia. Jackson was subsequently found eligible to complete the remainder of his sentence at Hope Village. This placement was voluntary and required Jackson’s consent. On May 3, 2017, Jackson signed a Furlough Application acknowledging his understanding of the terms of the furlough release conditions and transfer to Hope Village. Jackson’s Conditions of Furlough included Jackson’s agreement that while on furlough, he would be subject to prosecution for escape if he failed to return to the institution at the designated time.
On Aug. 8, 2017, Jackson arrived at Hope Village. On Aug. 23, 2017, Jackson signed out of Hope Village and never returned. Twenty-four hours later, on Aug. 24, 2017, while on escape status, Jackson robbed a pedestrian, took his keys, and then drove away with the victim’s vehicle. The vehicle was subsequently located by the Metropolitan Police Department (MPD). When MPD officers attempted to stop Jackson in the victim’s vehicle, Jackson fled from law enforcement and crashed into a parked vehicle. Jackson was prosecuted for the crimes he committed on Aug. 24, 2017, and sentenced in February 2018 in the Superior Court of the District of Columbia to three years in prison, to be followed by three years of supervised release, on the felony offenses of attempted robbery and unauthorized use of a vehicle.
As part of his sentence for escape from custody, Judge McFadden ordered Jackson’s 33-month sentence be consecutive to his Superior Court sentence for the two felony offenses that he committed after absconding from the halfway house.
In announcing the sentence, U.S. Attorney Liu and Marshal Turner commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Anthony Scarpelli who coordinated the referral of escape cases, Assistant U.S. Attorney Vincent Caputy, who indicted the case, Assistant U.S. Attorney Christopher Macchiaroli, who prosecuted the case, and Paralegal Specialists Kim Hall, Teesha Tobias, and Candace Battle.
Repeat Child Sex Offender Sentenced to 11 Years in Prison for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A child sex offender residing in Las Vegas was sentenced Monday to 135 months in federal prison for possession of child pornography, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Randall Little, 63, pleaded guilty in August 2018, to one count of possession of child pornography. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Little to lifetime supervision following his release from prison. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
After receiving a Cybertip from the National Center for Missing and Exploited Children (NCMEC), law enforcement executed a search warrant at Little’s residence which yielded various electronic devices. When questioned by law enforcement, Little admitted that he possessed sexually explicit images of children and that he reads “intergenerational love stories” that describe romantic relationships between men and boys, and he confessed that he moderates at least 10 online communities where he and others share images of boys. A forensic examination of the recovered devices belonging to Little revealed he possessed over 600 images and videos of child pornography. He was previously convicted in June 2001, in Nevada, of five counts of possession of child pornography. Little faced additional penalties at sentencing because he was a repeat offender.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Elham Roohani prosecuted the case.
If you have information regarding possible child sexual exploitation, you are urged to make a report to NCMEC’s CyberTipline 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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Prison Sentence for Hutchinson Woman Who Said She Was Selling Drugs to Pay Off her BondsmanRead the Press Release
WICHITA, KAN. – A Hutchinson woman was sentenced today to seven years in federal prison on drug and firearm charges, U.S. Attorney Stephen McAllister said.
Kimberly R. Phillips, 35, Hutchinson, Kan., pleaded guilty to one count of possession with intent to distribute oxycodone and one count of carrying a firearm in furtherance of drug trafficking.
In her plea, Phillips admitted investigators found 64 tablets of oxycodone when they searched her residence. She also admitted that when investigators stopped her car they found her Derringer handgun and methamphetamine. She told investigators she was selling drugs to pay back her bondsman.
McAllister commended the Hutchinson Police Department and Department of Health and Human Services – OIG and Assistant U.S. Attorney David Lind for their work on the case.
Postal employee assigned to deliver mail in Willowick and Eastlake sentenced to six months in prison for stealing gift cardsRead the Press Release
A U.S. Postal employee assigned to deliver mail in Willowick and Eastlake was sentenced to six months in prison for stealing gift cards.
Sonte E. Gibbons, 25, of Cleveland, previously pleaded guilty to theft of mail by a postal employee.
Gibbons was assigned to the Willowick Post Office beginning in September 2016, where he delivered mail in Eastlake and Willowick.
On April 13, 2017, Gibbons had a letter he was supposed to deliver to a location on East 331 Street that contained a $10 Wal-Mart gift card. Gibbons redeemed the gift card three days later while wearing his postal uniform, according to court documents.
Gibbons was arrested after the U.S. Postal Service’s Office of Inspector General received complaints about mail on Gibbons’ route had not been delivered. Agents prepared 10 first-class mail pieces that contained a greeting card and a gift card or cash. Agents mailed the letters. Seven of the 10 were not delivered, according to court documents.
“As the holidays approach, this case is a good reminder that people should be cautious about sending cash or gift cards in the mail,” U.S. Attorney Justin Herdman said. “The vast majority of postal employees are dedicated workers, but this case reminds us that there are always Grinches among us.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office said: “Postal employees are paid to deliver the mail, not steal it. This prison sentence should send a message to all postal employees and the public that special agents with the U.S. Postal Service Office of Inspector General aggressively investigate all allegations of employee mail theft, and will hold those who choose to steal accountable. Gibbons decided to forfeit his pay, benefits, retirement, and freedom for what amounted to a few dollars. To report postal employee misconduct, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG.”
This case was prosecuted by Assistant U.S. Attorney Elliot Morrison following an investigation by the U.S. Postal Service’s Office of Inspector General.
Possessing Guns Leads to More than Five Years in Federal Prison for Two Convicted FelonsRead the Press Release
Two convicted felon who each possessed a gun were sentenced on November 26, 2018, to nearly six years apiece in federal prison.
Tereall Deshawn Green, age 24, and Javonta Juan Herbert, age 26, both from Waterloo, Iowa, received the prison terms after each previously pled guilty to being a felon in possession of a firearm.
Information from the sentencing hearing and prior court hearings showed that on January 13, 2018, Green and Herbert were passengers in a car that the Waterloo police stopped shortly after 1:00 a.m. During the course of the stop, officers found a gun stuck in the front of Green’s pants and tied to a drawstring in the pants. Officers also found a gun on the backseat floor where Herbert had been sitting and hiding under his foot. After Green was arrested, he slipped out of his handcuffs and ran from officers but was apprehended a short time later. Both Green and Herbert had prior felony convictions.
In 2012, Green was convicted in Iowa state court of intimidation with a dangerous weapon and willful injury causing serious injury. In that case, Green got a gun out of a car and fired shots at a group of people. Green hit two people, one person in the abdomen and one in the arm. The person who was struck in the abdomen required surgery because the bullet hit the person’s liver.
In sentencing Herbert, the court noted he had a long criminal history that showed he was a danger to the community and likely to commit further crimes. Herbert’s criminal conduct began as a juvenile and continued as an adult with multiple burglary and theft convictions.
Green and Herbert were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Each was sentenced to 71 months’ imprisonment. They must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department of Justice announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Each 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 Anthony Morfitt and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-2006.
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Ponchatoula Turtle Farmer Sentenced for Lacey Act ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – KEITH D. BOUDREAUX, age 56, of Ponchatoula, Louisiana was sentenced today for illegally shipping false map turtles in violation of Title 16, United States Code, Sections 3372(d)(2) and 3373(d)(3)(A).
BOUDREAUX pleaded guilty on August 22, 2018, to submitting falsified export documents to the U.S. Fish and Wildlife Service in connection with a shipment of 1500 false map turtles that he exported to a buyer in the Netherlands.
Judge Jay Zainey sentenced BOUDREAUX to two years of probation, as well as a fine of $15,000.
U.S. Attorney Strasser praised the work of the United States Fish and Wildlife Service and the U.S. Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Park City Man Sentenced for Brandishing Gun During RobberyRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to eight years in federal prison for brandishing a gun during a robbery at a local credit union, U.S. Attorney Stephen McAllister said.
Mack W. Colvin, Jr., 32, Park City, Kan., pleaded guilty to one count of brandishing a firearm during a crime of violence. In his plea, he admitted that on Dec. 19, 2017, he robbed the Wheat State Credit Union at 1400 S. Oliver. He pointed a firearm at tellers and demanded money. Investigators identified him and issued a warrant for his arrest. Colvin turned himself in to the FBI several days after the warrant was issued.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
Old Saybrook Man Who Failed to Pay $4.8 Million in Income Taxes Sentenced to 90 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DAVID ADAMS, 58, of Old Saybrook, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 90 months of imprisonment, followed by three years of supervised release, for failing to pay more than $4.8 million in federal income taxes.
“This defendant engaged the IRS in a decades-long wild goose chase to prevent the agency from collecting the taxes he was required by law to pay,” said U.S. Attorney Durham. “He hid income, repeatedly lied to IRS collections officers, filed frivolous claims for due process hearings, and bounced numerous checks. He also misled, and then attempted to implicate, his accountant. All the while, he had the ability to pay and lived more lavishly than the vast majority of Americans. Our nation’s tax collection system requires all of us to pay what we owe, or else our society cannot function. This is an appropriate sentence for an individual who failed to pay his taxes for a good portion of his working life, and likely will never pay all that he owes the citizens of this country.”
“For years, Mr. Adams obstructed IRS efforts to collect back taxes through a series of criminal acts,” said IRS Criminal Investigation Special Agent in Charge O’Connell. “As a successful entrepreneur, he earned millions and amassed significant wealth, yet willfully chose to evade his significant tax obligations. Honest taxpayers bear the brunt of this crime, through reduced government services and a greater tax burden. IRS-CI and the U.S. Attorney’s Office will continue to hold tax cheats accountable, by prosecuting those who undermine the integrity of our tax system.”
According to court documents and statements made in court, in the early 1980s, and then continuing from 1996 onward, Adams was substantially delinquent in filing his tax returns and paying amounts owed to the IRS. Starting at least as early as the 1982 tax year, Adams repeatedly engaged with IRS collections officers tasked with trying to get Adams into compliance with the tax laws. Although IRS collections officers repeatedly advised Adams about his obligations to pay estimated taxes, he continually failed to pay those taxes on time or in sufficient amounts.
As part of this tax fraud scheme, Adams engaged the services of a certified public accountant to prepare his personal tax returns beginning in approximately 1993, and then gave the accountant false information about his estimated payments, about his income, and then blamed the accountant for making errors on his returns as an excuse for why he should not be required to pay the tax due.
In 2002, Adams sold an online floral business, for which he owed over $1.3 million in tax. Adams failed to pay that tax liability and instead hung the return up in collections, in a collections due process hearing, and in tax court, while blaming his accountant for purported “errors” when none were made. As of today, Adams still has a seven-figure balance on that tax year.
In June 2011, Adams sold his partnership interest in another online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although he knew that he owed substantial taxes on that amount, Adams concealed the income from his accountant and failed to declare the income on his 2011 tax return. At the same time, Adams represented to an IRS revenue officer who was responsible for collecting Adams’s delinquent tax payments and securing Adams’s overdue tax returns, that he had hoped to have funds to pay down his back tax liability (including tax liability associated with the 2002 sale), but that nothing had been “panning out.” Adams failed to disclose to the revenue officer that he had received $4,708,419.20 in cash less than three weeks earlier.
In June 2012, Adams received an additional $1,320,609.59 into his personal bank account as net proceeds of the 2011 sale. Although he knew that he owed substantial taxes on that amount, Adams failed to disclose the income to his accountant, and failed to declare it on his tax return for that year.
Adams also misled the U.S. District Court and U.S. Probation Office in the case by failing to disclose on his financial affidavit a bank account containing more than $500,000.
In total, Adams engaged in a more than 20-year effort to inhibit the IRS’s efforts to collect back taxes from him. Among other things, he bounced checks to the IRS; told IRS collections officers that payment had been sent when it had not; promised to pay delinquent tax liabilities in full and then delayed payment, made only partial payment, failed to pay at all, or paid off one liability while leaving another liability unpaid; claimed that he lacked funds to pay his delinquent tax but failed to disclose that he had access to enough cash to fully pay back his tax liabilities; filed false and fraudulent returns with the IRS; overstated the amounts of estimated taxes paid to the IRS, and failed to declare more than $6 million in income to the IRS.
Adams was arrested on a federal criminal complaint on April 14, 2016. On October 10, 2017, he pleaded guilty to two counts of tax evasion, three counts of making and subscribing a false tax return, and one count of attempting to interfere with the administration of the IRS laws.
Judge Bryant ordered Adams to pay back taxes, interest and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011, and 2012, which total $4,872,172.91. Interest and penalties will continue to accrue until his tax obligation is paid.
At the conclusion of today’s sentencing proceeding, Adams, who had been released on bond, was remanded to the custody of the U.S. Marshals Service.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
Adams’s criminal history includes two prior federal convictions. In 1986, he was convicted of credit card fraud for submitting more than $588,000 in fraudulent credit card sales drafts through his floral business over a three-month period in 1985. In 1992, he was convicted of two counts of failure to file tax returns, relating to his failing to file federal income tax returns for the 1984 through 1986 tax years.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Susan L. Wines and Jennifer R. Laraia.
Oakland Resident Sentenced to 14 Years in Prison for Role in Interstate Gun Trafficking Scheme and Related CrimeRead the Press Release
OAKLAND – Andre Martel Winn was sentenced today to 14 years in prison for his role in orchestrating an elaborate illegal interstate firearm trafficking scheme, as well as robbery and firearms charges, announced United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Ray Roundtree. The sentence was imposed by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Winn was convicted of the crimes on July 18, 2018, following a bench trial based on stipulated facts. According to court documents, Winn was one of nine defendants participating in the illegal interstate firearm trafficking scheme. The other defendants are Oakland resident Edgar De La Cruz, 21; Reno, Nev. residents Richard Straight, 28, Jenna Jeanne Allec, 26, Jonathan Salevao, 29, Kaleka Mile Kam, 25, and Quinton Kalifa Endemann, 30; Elko, Nev. resident Kenneth Lee Kemp, 34; and Sparks, Nev. resident Daniel Taylor Taufi, 26. Winn worked with codefendants to purchase dozens of firearms in Nevada and have them transported to and sold in California. Winn had Nevada-based co-conspirators purchase specific types of firearms at his request and then he wired money from Oakland to Nevada to pay for the gun purchases. Court documents demonstrate that Allec, Kemp, Kam, Taufi, and Endemann purchased the firearms from licensed Nevada firearm dealers and then negotiated with Salevao and Straight to sell the arms to Winn and De La Cruz. Further, Winn and De La Cruz traveled from Oakland to Reno to retrieve the firearms. Winn and De La Cruz then transported the firearms to the San Francisco Bay Area where they were sold.
From March of 2015 through October of 2016, well over 60 firearms were purchased, transported, and sold in violation of federal firearms laws via this scheme. A number of the firearms trafficked during the conspiracy have been recovered in Oakland and elsewhere in the Bay Area by local police officers in the course of law enforcement operations.
“Today’s sentence should serve as a reminder to all those who may consider getting involved is the sale of illegal firearms,” said U.S. Attorney Tse. “This office will prosecute to the fullest extent of the law anyone caught unlawfully disseminating these weapons into our communities.”
“In the pursuit of our commitment to the public and our communities, ATF special agents followed evidence of significant purchases of firearms being trafficked and resold without these individuals holding federal firearms licenses, which is a violation of federal law,” said Special Agent in Charge Roundtree. “This investigation involved routine, multiple sales and trace reports. ATF utilized its Crime Gun Intelligence Centers to glean information on firearms that showed up at crime scenes which were recently purchased. ATF personnel is dedicated to making sure firearms are not going into the hands of criminals and used in violent crimes in our neighborhoods.”
In addition to charges resulting from his role in the firearms trafficking scheme, Winn also was sentenced today for his role in a robbery, being a felon in possession of a firearm, and brandishing firearms in furtherance of a crime of violence. Court documents reflect that before participating in the firearms trafficking scheme, he had a felony conviction. Winn therefore was prohibited from possessing or receiving firearms. In addition, court documents and evidence demonstrate that Winn and De La Cruz each brandished a firearm when they robbed a gas station on High Street in Oakland in 2015. On that occasion, the defendants absconded with approximately $2,000 in cash.
In sum, the defendants have been convicted of the following crimes and sentenced as set forth below:
Defendant
Convictions
Statute
Sentence
Andre Martel Winn
Robbery (Interference with Commerce by Robbery)
18 U.S.C. § 195l(a)
14 years in prison
4 years of supervised release
Possessing/Brandishing a Firearm in Furtherance of a Crime of Violence
18 U.S.C. § 924(c)(l)(A)
Felon in Possession of a Firearm
18 U.S.C. § 922(g)(l)
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
Dealing in Firearms Without a License
18 U.S.C. § 922(a)(l)(A)
Traveling Interstate to Promote Illegal Firearms Trafficking
18 U.S.C. § 924(n)
Edgar De La Cruz
Robbery (Interference with Commerce by Robbery)
18 U.S.C. § 195l(a)
120 months in prison
5 years of supervised release
Possessing/
Brandishing a Firearm in Furtherance of a Crime of Violence
18 U.S.C. § 924(c)(l)(A)
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
Traveling Interstate to Promote Illegal Firearms Trafficking
18 U.S.C.
§ 924(n)
Richard Straight
Dealing in Firearms Without a License
18 U.S.C.
§ 922(a)(l)(A)
42 months in prison
3 years of supervised release
Aiding and Abetting Traveling Interstate to Promote Illegal Firearms Trafficking
18 U.S.C.
§§ 924(n) and 2
Jenna Leanne Allec
Dealing in Firearms Without a License
18 U.S.C.
§ 922(a)(l)(A)
4 years of probation
Kenneth Lee Kemp
Conspiracy to Deal in Firearms Without a License
18 U.S.C. § 371
14 months in prison
3 years of supervised release
Jonathan Salevao
Dealing in Firearms Without a License
18 U.S.C.
§ 922(a)(l)(A)
24 months in prison
3 years of supervised release
Aiding and Abetting Traveling Interstate to Promote Illegal Firearms Trafficking
18 U.S.C.
§§ 924(n) and 2
Kaleka Mile Kam
Dealing in Firearms Without a License
18 U.S.C.
§ 922(a)(l)(A)
3 years of probation
Daniel Taylor Taufi
Dealing in Firearms Without a License
18 U.S.C.
§ 922(a)(l)(A)
3 years of probation
Quinton Kalifa Endemann
Dealing in Firearms Without a License
18 U.S.C.
§ 922(a)(l)(A)
Sentencing set for
January 7, 2019.
Maximum penalties:
5 years in prison
$250,000 fine
3 years supervised release
All of the defendants were convicted of federal felony crimes making it a federal felony for any of them to possess a firearm or ammunition in the future.
The prosecution is the result of an investigation by the ATF Crime Gun Intelligence Center, San Francisco Field Division.