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Friday 16 November 2018
Fugitive Apprehended in North CarolinaRead the Press Release
BOSTON – A convicted fraudster who had been on the run since early November was arrested this morning as he exited a hotel in Charlotte, N.C.
David J. Aubel, 60, of Matthews, N.C., was apprehended today after failing to appear for his sentencing hearing in federal court in Boston on Nov. 5, 2018. Aubel was detained today following an initial appearance in federal court in Charlotte, N.C. A date for his sentencing hearing in Massachusetts has not yet been rescheduled.
In November 2017, Aubel pleaded guilty to conspiracy, securities fraud, and wire fraud in connection with his role in a stock manipulation scheme. According to court documents, Aubel repeatedly failed to appear for multiple sentencing hearings scheduled throughout September and October 2018. Each time, Aubel informed the Court either telephonically or through counsel that his father was in poor health and that he was at his bedside. The Court rescheduled Aubel’s sentencing hearing for Oct. 18, 2018; however, Aubel once again failed to appear at that hearing – informing the Court through counsel that he had been hospitalized the night before. The Court issued an arrest warrant at the government’s request; however, the warrant was later recalled. Aubel’s sentencing was then rescheduled for Nov. 5, 2018.
On the morning of Nov. 5, 2018, the government opposed a motion for self-surrender filed by Aubel. In its opposition, the government disclosed for the first time that it had recently discovered evidence suggesting that Aubel had continued to engage in criminal conduct while released on bail. Aubel subsequently failed to appear at the sentencing hearing later that day.
United States Attorney Andrew E. Lelling; Gregory Allyn Forest, U.S. Marshal of the Western District of North Carolina; John Gibbons, U.S. Marshal of the District of Massachusetts; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, and Special Assistant U.S. Attorney Andrew Palid of the Securities and Exchange Commission are prosecuting the case.
Former Registered Financial Advisor Pleads Guilty to Bank Fraud for Role in Scheme to Fraudulently Obtain and Misuse Credit Lines, Generating over $1 Million in Improper CommissionsRead the Press Release
A former registered financial advisor previously employed by UBS Financial Services Inc. of Puerto Rico (UBS-PR) pleaded guilty today for his role in a scheme to fraudulently obtain and misuse non-purpose credit lines for purchasing securities, resulting in over $1 million in improperly generated commissions, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office.
José G. Ramirez-Arone Jr., 60, currently of Fulton, Maryland, previously of San Juan, Puerto Rico, pleaded guilty to one count of bank fraud before U.S. District Judge Thomas F. Hogan of the District of Columbia. Sentencing has been scheduled for Feb. 8, 2019, before Judge Hogan.
As part of his guilty plea, Ramirez-Arone admitted that, in his role as a financial advisor, he participated in a scheme in which various of his clients at UBS-PR fraudulently obtained non-purpose credit lines (i.e., credit lines for which purchasing securities was expressly prohibited by an internal UBS-PR policy) offered by UBS Bank USA (UBS-UT), a Utah-based subsidiary of UBS Financial Services, Inc. He admitted knowing that his clients then misused them by drawing funds from the credit lines for purchasing securities, directly violating the credit lines’ terms of use.
Ramirez-Arone further admitted that the scheme took advantage of the low interest rate of UBS-UT’s non-purpose credit lines, and the payout interest rate of closed-end funds (CEFs) offered by UBS-PR, which were mainly comprised of Puerto Rican bonds. Ramirez-Arone admitted that the CEFs had a payout interest rate exceeding the low interest rate of the non-purpose credit lines. To capitalize on the difference between the low and high interest rates by engaging in arbitrage, Ramirez-Arone advised various clients that they could draw funds from a UBS-UT non-purpose credit line and invest the funds in a UBS-PR CEF, he admitted.
In addition, Ramirez-Arone admitted that, to circumvent the prohibition against purchasing securities with non-purpose credit line funds, and to obscure from UBS-PR the origin of the funds, he advised clients to obtain a UBS-UT non-purpose credit line by misrepresenting in a credit line application the proposed reason for needing the credit line, which was an important piece of information for UBS-UT. He further admitted that he advised clients—after the credit line was issued—to transfer UBS-UT non-purpose credit line funds to a third-party bank (i.e., outside of the UBS banking system), before transferring the same funds back into the UBS banking system to UBS-PR for investment in a CEF. This practice diminished UBS-UT’s ability to recognize that funds originating from a UBS-UT non-purpose credit line were later being invested in a UBS-PR CEF. As a result of at least a portion of his illicit activity, from in or about January 2011 through in or about September 2013, Ramirez-Arone improperly generated approximately $1,225,500 in commissions, he admitted.
This case was investigated by the FBI. Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section is prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Former Owner and CEO of Yellowstone Partners Investment Firm Indicted for FraudRead the Press Release
BOISE - David Hansen, 47, formerly of Idaho Falls, was indicted yesterday, by a federal grand jury sitting in Boise on 17 counts of wire fraud and six counts of tax fraud, U.S. Attorney Bart M. Davis announced.
Hansen was the 90 percent owner and chief executive officer of Yellowstone Partners, LLC, an investment management firm headquartered in Idaho Falls. The indictment alleges the following: Yellowstone Partners managed its clients’ investment funds pursuant to management agreements that provided for Yellowstone Partners to collect fees for its services. The actual client funds were kept in accounts at national brokerage firms. Yellowstone Partners would receive its fees by submitting billing requests to the brokerage firms. Those requests were supposed to comply with the fees set forth in the management agreements between Yellowstone Partners and its clients.
The indictment furthermore alleges that: From 2008 to 2016, Hansen systematically and intentionally overbilled many of his clients’ accounts. He personally submitted fraudulent billing requests to a brokerage firm, and he also directed certain of his employees to do the same. The fraudulent billings resulted in the transfer to Hansen and Yellowstone Partners of client funds in amounts far in excess of what was allowed for under the management agreements. It is estimated that Hansen defrauded his clients of at least $9,448,941 through his overbilling scheme.
The indictment furthermore alleges that: In 2012 and 2013 Hansen aided and assisted in the preparation of false and fraudulent income tax returns for Yellowstone Partners and himself. Specifically, as part of the overall fraud at Yellowstone Partners, Hansen caused Yellowstone Partners’ revenue and his own income to be significantly underreported.
The indictment finally alleges that: if convicted of wire fraud, Hansen shall forfeit $9,448,941.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release.
The charge of aiding and assisting in the presentation of a false and fraudulent tax return is punishable by up to 3 years in prison, a maximum fine of $250,000, and up to one year of supervised release.
This case is being investigated by the Federal Bureau of Investigation and the IRS-Criminal Investigations Division.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Menomonee Falls Resident Indicted in Federal Court with Under-Reporting $2.6 Million in IncomeRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that John Miller Ragland (age: 71) formerly of Menomonee Falls, Wisconsin has been charged in an indictment with four counts of tax evasion. Specifically, the indictment charges that Mr. Ragland under-reported his income during the years 2010 - 2013 by more than $2.6 million and, thereby, attempted to evade more than $750,000 in federal income taxes.
Each of the offenses with which Mr. Ragland is charged carries a maximum possible penalty of up to 5 years in prison and a fine of up to $250,000, or both.
This matter was investigated by the Internal Revenue Service Criminal Investigation. The matter has been assigned to Assistant United States Attorney Matthew L. Jacobs for prosecution.
The public is cautioned that an indictment is merely the formal method of issuing charges against an individual. A person is presumed innocent until such time, if ever, as the government establishes his or her guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Former Hennepin County Employee Indicted on Theft of Government FundsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ROBERT ANTHONY COLEMAN, 45, and YOLANDA YVETTE COLEMAN aka YOLANDA YVETTE PITTMAN, 50, with multiple counts related to the theft of more than $248,000 of government funds. ROBERT COLEMAN is also charged with two counts of false statements and an additional count of Social Security fraud. They will make their initial appearances in U.S. District Court at a later date. 1]
According to documents filed with the court, from least October 2010 through August of 2018, ROBERT COLEMAN and YOLANDA PITTMAN conspired to fraudulently obtain government funds and public assistance including, Section 8 rental housing assistance subsidies, Supplemental Nutrition Assistance Program (SNAP) benefits, and Medical Assistance benefits, by purposefully submitting false applications to the government entities responsible for implementing these programs.
Further, according to documents filed with the court, YOLANDA PITTMAN used her role as an employee of Hennepin County Human Services and Public Health Department to affect COLEMAN’S receipt of benefits and failed to note that she lived with ROBERT COLEMAN. PITTMAN also acted as COLEMAN’S Personal Care Attendant (PCA) for several years, with COLEMAN’S Medical Assistance benefits paying for these PCA services.
This case is the result of an investigation conducted by the Department of Housing and Urban Development – Office of the Inspector General, Hennepin County Fraud Unit, and the Social Security Administration – Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Sarah Hudleston and Special Assistant U.S. Attorney Lindsey Middlecamp.
Defendant Information:
ROBERT ANTHONY COLEMAN, 45
Minneapolis, Minn.
Charges:
- Conspiracy, 1 count
- Theft of government funds- housing, SNAP, and Social Security Fraud, 1 count
- False statement, 2 counts
- Social Security Benefits Fraud, 1 count
YOLANDA YVETTE COLEMAN, aka YOLANDA YVETTE PITTMAN, 50
Minneapolis, Minn.
Charges:
- Conspiracy, 1 count
- Theft of government funds- housing, SNAP, and Social Security Fraud, 1 count
- Theft from a Program Receiving Federal Funds, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Connecticut Attorney Sentenced to More Than 6 Years in Prison for Stealing Nearly $2 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS M. MURTHA, 62, of Birmingham, Michigan and formerly of Newtown, Connecticut, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by three years of supervised release, for stealing nearly $2 million from clients, friends and family members.
According to court documents and statements made in court, Murtha operated a law practice under the name Maher & Murtha LLC in Bridgeport. Beginning in approximately November 2011, Murtha stole approximately $2 million from more than 20 individuals, including law clients, friends and family members. More than $516,000 of the stolen funds were for the benefit of an individual with mental health issues. As part of the scheme, Murtha submitted false or forged documents to victims. He also incurred charges on credit cards in the names of others without their knowledge or permission.
The investigation revealed that Murtha used some of the stolen funds in connection with the purchase of a $725,000 house in Birmingham, Michigan, and on other lavish expenses, including the purchase and care of show horses.
Judge Shea ordered Murtha to pay total restitution of $1,994,467.15. Murtha also has agreed to forfeit his interests in the house in Michigan and a 2.11 carat diamond engagement ring that the government has seized.
In September 2016, Murtha resigned from the bar after three grievance complaints were filed against him. He was arrested on a federal criminal complaint on April 5, 2017, and a grand jury returned a multi-count indictment against him on August 16, 2017. On May 30, 2018, he pleaded guilty to one count of wire fraud.
Murtha, who is released on bond, was ordered to report to the U.S. Marshals Service on November 26, 2018, to begin serving his sentence.
This matter was investigated by the Federal Bureau of Investigation and the Greenwich Police Department, with the assistance of the Connecticut Office of Chief Disciplinary Counsel. The case was prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and David T. Huang.
Former COO of Montgomery County Department of Economic Development Pleads Guilty to Federal Wire Fraud and Tax Charges for Embezzling More Than $6.7 Million in County FundsRead the Press Release
Greenbelt, Maryland – Byung Il Bang, a/k/a Peter Bang, age 59, of Germantown, Maryland, pleaded guilty today to wire fraud and making false statements on his tax returns, in connection with a scheme in which he embezzled more than $6.7 million from the Montgomery County government and failed to report the money as income on his tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, from 2010 through July 2016, Bang was the Chief Operating Officer (COO) of the Department of Economic Development for Montgomery County, Maryland (MC-DED). In 2016, the MC-DED was privatized and Bang’s position was moved to the Montgomery County Department of Finance, where he was employed until May 2017.
The MC-DED established business incubator and/or innovation centers throughout the County with different areas of focus, such as computer technology, biological technology, and small minority - and women-owned businesses, to help small businesses by giving them below-market rent, placing them in an environment with other small businesses, and providing education on how to run a business. As MC-DED COO, Bang oversaw budgets for these incubators and was authorized to request disbursement of County funds to the incubators. Bang’s position also enabled him to authorize and direct the disbursement of money from County partners, including the Maryland Economic Development Corporation (MEDCO), and the Maryland Conference & Visitors Bureau, without any significant oversight or approval.
In 2010, Montgomery County and the Chungcheongbuk-Do province of South Korea entered into an agreement to develop an incubator fund. On July 20, 2010, Bang caused a company called Chungbuk Incubator Fund LLC to be incorporated in the State of Maryland and opened four bank accounts in the name of the company, listing his home address as the address of the LLC. Bang used this entity and the bank accounts to facilitate his fraud.
Bang admitted that between 2010 and 2016, he fraudulently authorized the disbursement of $6,705,669.37 from the Montgomery County government to the bank accounts of the fraudulent entities that Bang created and controlled. Specifically, between 2010 and 2016, Bang caused the Montgomery County Department of Finance to issue checks and direct deposits totaling $5,447,964; caused MEDCO to send a total of $1,213,987.63 to bank accounts controlled by Bang; and caused the Maryland Conference & Visitors Bureau to send a total of $43,717.74 to the Chungbuk LLC accounts. Bang did not report the money he embezzled as income on his individual tax returns. His failure to report those funds as income resulted in $2,335,913 in taxes due and owing to the IRS.
Bang also admitted that he lied on his County financial disclosure statements for the years 2012 through 2016, by failing to disclose his interest in the Chungbuk entities, including: property holdings; his relationship with an income source; and the type and amount of income he received.
As part of his plea agreement, Bang is required to pay restitution in the full amount of the victims’ losses, and to plead guilty in the Circuit Court for Montgomery County, to the state charges of theft scheme over $100,000, and misconduct in office.
Bang faces a maximum sentence of 20 years in federal prison for wire fraud, and three years in prison for making false statements on his tax returns. U.S. District Judge Paula Xinis has scheduled sentencing for February 22, 2019 at 1:00 p.m.
United States Attorney Robert K. Hur commended the IRS-CI and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Thomas M. Sullivan and Erin B. Pulice who are prosecuting the case.
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Five Defendants Plead Guilty in Drug Conspiracy InvestigationRead the Press Release
Abingdon, VIRGINIA – Five members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia pleaded guilty recently in federal court to federal drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Christy Marie Doffermyer, 47, of Kingsport, Tenn., pleaded guilty to one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, as well as distributing heroin and oxycodone. At sentencing, Doffermyer faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of life in prison and a fine of up to $10 million.
Timothy Terrell Peek, 34, of Greensboro, Ga., pleaded guilty to one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, as well as distributing heroin, oxycodone, cocaine, and alprazolam. At sentencing, Peek faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of life in prison and a fine of up to $10 million.
Audrea Augusta Woodward, 50, of Big Stone Gap, Va., pleaded guilty to one count of conspiracy to possess with the intent to distribute and distributing oxycodone. At sentencing, Woodward faces a maximum statutory penalty of up to 30 years in prison and a fine of up to $2 million.
Timothy Allen Barr, 51, of Coeburn, Va., and Paul Thomas Jones, 25, of Big Stone Gap, Va., pleaded guilty to one count of conspiracy to possess with the intent to distribute and distributing oxycodone. At sentencing, Barr and Jones each face a maximum statutory penalty of up to 20 years in prison and a fine of up to $1 million.
“Crystal methamphetamine is a highly addictive and dangerous drug,” U.S. Attorney Cullen stated today. “We are committed to working with our federal, state, and local partners in Southwest Virginia to dismantle and prosecute organizations that traffic in it. I am grateful for our partnership with Attorney General Herring’s office on this critical law-enforcement initiative.”
“Reducing the availability of crystal methamphetamine and other drugs in Southwest Virginia is a high priority for my office. My office and I work diligently to partner with the U.S. Attorney’s Office and federal, state, and local law enforcement to crack down on those who transport dangerous drugs into the Commonwealth for distribution,” Virginia Attorney General Herring said today. “We appreciate the hard work and dedication of our law enforcement partners and will continue to aggressively prosecute those who endanger the lives of our citizens.”
In all, 11 individuals have been charged as part of this drug trafficking conspiracy. Another defendant is scheduled to enter a guilty plea later this month, with others set for trial in mid-December.
According to evidence presented at the guilty plea hearings by Special Assistant United States Attorney and Virginia Assistant Attorney General Suzanne Kerney-Quillen, the defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Georgia, into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 197 grams of crystal ice methamphetamine, heroin, cocaine, morphine, and oxycodone.
The investigation of the case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Financial Analyst Sentenced to Federal Prison for Embezzling more than $1.1 Million from HoneywellRead the Press Release
ATLANTA – Errol Buggs, a principal finance analyst for Honeywell International, Inc., was sentenced to federal prison for embezzling more than $1.1 million from his employer in a fraud scheme.
“Financial professionals who are unscrupulous are an insider threat to their employers because they have access to payment systems and can learn how to circumvent internal controls to enrich themselves,” said U.S. Attorney Byung J. “BJay” Pak. “Employers must remain vigilant against fraudulent vouchers, fictitious vendors, and sharing or theft of log-in credentials by employees.
“Wire fraud is an offense the FBI takes very seriously,” said Chris Hacker, Special Agent in Charge of the FBI Atlanta Field Office. “Buggs took advantage of his position as a financial analyst for his own personal greed, violating the trust put in him by his employer.”
According to U.S. Attorney Pak, the charges and other information presented in court: From January 2012 through June 2016, Buggs worked in the Roswell, Georgia office of Honeywell International, Inc., an American multinational conglomerate headquartered in New Jersey. An employee at a Honeywell subsidiary in Canada discovered three suspicious wire transfers to a supposed vendor in Georgia for which there were no supporting invoices.
An investigation determined that the payee, Tredd LLC, was a shell company incorporated by Buggs, who was listed in the Georgia Secretary of State’s Office as its Chief Operating Officer. Further investigation showed that Buggs setup Tredd as a vendor in Honeywell’s invoice payment system using a legitimate vendor’s address.
As a senior finance analyst, Buggs was authorized to approve vouchers initiated by colleagues. The defendant used the log-in credentials of a colleague and the credentials of two former employees. By masquerading as other employees, Buggs was able to approve fictitious vouchers and bypass safeguard restrictions against self-dealing of this kind. He used this scheme to cause 28 wire transfers and a check to be sent to his bogus Georgia company. The money trail led to a bank account controlled by Buggs in metropolitan Atlanta. The total amount embezzled was determined to be $1,134,493.35.
Errol Buggs, 44, of Atlanta, Georgia, was sentenced to two years in federal prison, to be followed by three years of supervised release on November 15, 2018, by U.S. District Judge Thomas W. Thrash, Jr. He was also ordered to pay $1,134,493.35 in restitution to Honeywell.
The case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Brian Pearce prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Jury Finds Armed Career Criminal Guilty on Firearm ChargeRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Sean Justin Owens (35, Jacksonville) guilty of possessing a firearm as a convicted felon. Owens faces a mandatory minimum term of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for February 26, 2019.
Owens was indicted on February 21, 2018.
According to testimony presented at trial, Owens was found to be in possession of a firearm after officers from the Jacksonville Sheriff’s Office (JSO) investigated his illegally parked vehicle. As the officers approached the parked vehicle, Owens quickly left the car and headed toward a nearby residence. When the officers checked the vehicle tag, it was not associated with any vehicle. As one of the officers tried to obtain the Vehicle Identification Number (VIN), he saw a firearm on the front console. Owens’s driver license was inside his vehicle, confirming his identity. In addition, an occupant of the home Owens had entered after leaving the vehicle confirmed that the vehicle belonged to Owens.
At the time of this incident, Owens had multiple prior felony convictions and, therefore, was prohibited from possessing a firearm under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Dominican Nationals Sentenced to 95 and 50 Months Respectively, for Possession of Cocaine on Board a VesselRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today two additional sentencings originating from a large-scale drug trafficking conspiracy investigated and prosecuted on St. Croix. Yesterday, District Court Judge Anne E. Thompson sentenced Luis Antonio Rijos-Santana, age 51, of the Dominican Republic, to 95 months in prison and Maurucio Javier Diaz, age 30, also of the Dominican Republic, to 50 months in prison for possession of cocaine on board a vessel. In addition, Judge Thompson sentenced Rijos-Santana to six years of supervised release and to pay a special assessment of $100.00,and Diaz to two years of supervised release and to pay a fine of $500.00 and a special assessment of $100.00.
Diaz and Rijos-Santana entered guilty pleas to possession of a controlled substance on board a vessel on July 10, 2017 and July 19, 2017 respectively. Court documents revealed that while on routine patrol along the north coast of Puerto Rico, U.S. Coast Guard Cutter operator Richard Dixon, together with assistance provided by U.S. Customs and Border Protection (CBP), located a vessel operating without lights, approximately 58 nautical miles north of Fajardo, Puerto Rico in international waters. The Coast Guard and CBP observed Diaz, Rijos-Santana, and co-defendant Carlos Manuel Castro Felix discarding small items, consistent with electronics, over the side vessel. Rijos-Santana was the operator of the vessel, which bore no markings and flew no flag. The Coast Guard intercepted and boarded the vessel, where officers discovered 45 bales of cocaine with a net weight of 909 kilograms.
Felix was originally charged along with Diaz and Rijos-Santana. He entered a guilty plea and was sentenced to 70 months in prison on February 1, 2018.
The incident was investigated by the U.S. Coast Guard, the Department of Homeland Security-U.S. Customs and Border Protection and the U.S. Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Alphonso G. Andrews, Jr.
District Man Sentenced to More Than 16 Years in Prison for Sexually Assaulting StepdaughterRead the Press Release
WASHINGTON – A 39-year-old man, from Washington, D.C., was sentenced today to 16 years and eight months in prison on a charge stemming from years of sexual abuse against his stepdaughter, beginning when she was only 10 years old, announced U.S. Attorney Jessie K. Liu.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty on Aug. 29, 2018, in the Superior Court of the District of Columbia, to first-degree child sexual abuse with aggravating circumstances. He was sentenced by the Honorable Milton C. Lee. Following his prison term, the man will be placed on lifetime supervised release. He also will be required to register as a sex offender for the rest of his life. The man, a Honduran national, also will be subject to removal proceedings.
According to the government’s evidence, the man sexually abused his stepdaughter beginning when she was 10 years old. The sexual abuse took place from 2010 until 2018. It was constant, occurring several times a week throughout the victim’s teenage years. It led to two pregnancies when the victim was 12 and 13 years old. The defendant told the victim that if she reported the abuse, the victim’s mother would side with him, and would kick the victim out of the house. She believed him, and so she kept silent for years. During that time, the defendant manipulated the victim into complying with his sexual demands through threats, bribes, and misleading promises that he loved her and would take care of her. The sexual abuse only came to light when a member of the victim’s family witnessed one of the sexual acts after the victim turned 18. The man was arrested on April 4, 2018, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu praised the work of officers from the Metropolitan Police Department’s Youth Investigation Division. In addition, she commended the work of the Special Agents of the FBI’s Child Exploitation Task Force, who assisted in the investigation. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Juanita Harris and Criminal Investigator John Marsh. Finally, she commended the work of Assistant U.S. Attorneys Jennifer Loeb, Jodi Lazarus, and Marisa West, who investigated and prosecuted this case.
District Man Sentenced to 66 Months Prison After Possessing Packaged Narcotics and a Loaded Firearm While on Federal Supervision for an Urban ShootingRead the Press Release
WASHINGTON – Everett Purvis, 36, of Washington, D.C., has been sentenced to 66 months in prison following his possession of a loaded firearm and packaged narcotics while on federal supervised release for convictions related to a 2008 shooting, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Purvis pled guilty in July 2018, in the Superior Court of the District of Columbia, to one count of possession with intent to distribute a controlled substance and one count of unlawful possession of a firearm. On Nov. 13, 2018, the Honorable José M. López sentenced Purvis to a total term of 42 months of incarceration to be followed by three years of supervised release.
Today, in the U.S. District Court for the District of Columbia, the Honorable Chief Judge Beryl A. Howell revoked Purvis’ supervised release and ordered him to serve 24 months of incarceration, to run consecutively to the Superior Court sentence.
According to the government’s evidence, on April 11, 2018, members of MPD’s Narcotics and Special Investigations Division’s Criminal Interdiction Unit detained Purvis in front of his residence in the 4200 block of Fourth Street SE, after he was observed engaging in a hand-to-hand drug transaction. Purvis was apprehended in possession of a clear plastic bag containing a plastic twist with crack cocaine, 29 green ziploc bags each containing crack cocaine, and 10 clear ziploc bags each containing crack cocaine.
Following a search warrant on Purvis’s residence, MPD recovered a semi-automatic handgun that was loaded with nine 9mm cartridges inside of the magazine and one 9mm cartridge in the chamber. His fingerprint was subsequently recovered from the firearm.
At the time of his arrest, Purvis was on federal supervision for five separate felony convictions following a May 2008 shooting outside a residential apartment complex – in the same 4200 block of Fourth Street SE where the defendant was most recently arrested -- and assault of two separate victims. In that incident, Purvis opened fire across the courtyard of a busy apartment complex in broad daylight, striking a window of an apartment building and shattering glass that caused lacerations to a woman inside. He committed that offense after being released months earlier from a separate felony firearms conviction. In total, Purvis’s recent firearms conviction represents his fourth felony firearms conviction arising out of four separate events.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham 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. Attorneys Christopher Macchiaroli, Monica Dolin, Brian B. Ganjei, and Cynthia Walicki-Chan.
District Man Sentenced to 25 Years in Prison for Murder of Woman in Southeast Washington ApartmentRead the Press Release
WASHINGTON – Kevin L. Smith, 47, of Washington, D.C., was sentenced today to 25 years in prison for killing a woman last December in her apartment in Southeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Smith pled guilty in August 2018, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for an agreed-upon prison sentence of 15 to 27 years. The Honorable Juliet McKenna accepted the plea and sentenced Smith accordingly. Following his prison term, Smith will be placed on five years of supervised release.
According to the government’s evidence, in the early hours of Dec. 2, 2017, the defendant had a fight with the mother of his child, inside their apartment in the 1700 block of 16th Street SE. The fight ended with the woman kicking the defendant out of the apartment for good. The woman’s mother, Valerie Coleman, who also lived there, supported her daughter’s decision. Hours later, at approximately 8 a.m. the same day, Smith came back. Inside the bedroom where the mother of his child and their young daughter were sleeping, he woke up the mother of his child by striking her face with a handgun. He then went to Valerie Coleman’s bedroom and shot her twice in the head. After the shooting, Smith left the apartment. The Metropolitan Police Department arrived shortly afterward, and Ms. Coleman, 55, was pronounced dead on the scene. Police found spent .380-caliber cartridge casings from the bedroom where Ms. Coleman was slain.
Later that day, Smith was arrested in Northeast Washington. A search of his person resulted in the recovery of the .380-caliber semi-automatic handgun that was used to kill Ms. Coleman. Smith has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker and Paralegal Specialist Debra Joyner. Finally, they commended the work of Assistant U.S. Attorneys Jin Park and Ahmed Baset, who investigated and prosecuted the case.
Deer Lodge man sentenced in child pornography caseRead the Press Release
HELENA-- Deer Lodge resident Rex Thomas Kendall, who admitted to possessing child pornography, was sentenced on Thursday to 35 months in prison and 15 years of supervised release, U.S. Attorney Kurt G. Alme said.
Senior U.S. District Judge Charles C. Lovell presided at sentencing.
Kendall, 62, pleaded guilty on Sept. 12, 2018 to possessing child porn.
An investigation began in November 2017 after the editor of the Silver State Post, which contracted with Kendall to write stories, found child porn images on a thumb drive Kendall used to submit stories to the newspaper. The editor had provided Kendall the thumb drive several months earlier. The editor had assigned Kendall two stories, which he submitted for review on the device. The editor reviewed the stories then found the child porn images when he decided to clean up the thumb drive for Kendall.
The next day, Kendall left his personal laptop in his work area at the Post’s offices. Newspaper officials, who had delivered the thumb drive to law enforcement, also turned over the laptop to investigators.
After getting search warrants, FBI investigators examined the laptop and thumb drive and found numerous images of child porn. The investigation also determined that Kendall would use the newspaper’s internet service for personal matters and that it was not unusual for him to be at the office late in the evenings or on weekends.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Powell County Sheriff’s Office, Montana Division of Criminal Investigation and FBI.
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Dallas Tax Return Preparer Pleads Guilty in False Tax Return SchemeRead the Press Release
A Dallas, Texas, area tax return preparer pleaded guilty today to conspiring to defraud the United States and to assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Erin N. Cox for the Northern District of Texas.
According to documents and information provided to the court, Mario Melendez, 29, worked as a manager and tax return preparer at Uptown Multi Services, which was a tax preparation business located in the Northern District of Texas.
From November 2013 and continuing through at least May 2014, Melendez conspired with others to prepare federal income tax returns for clients that included false education credits and Schedule C expenses as well as other fraudulent items. As the manager of Uptown, Melendez taught training classes for new return preparers during which he instructed employees how to prepare fraudulent tax returns in order to maximize client refunds. Melendez is responsible for attempting to cause a tax loss of over $3.8 million to the United States.
Sentencing is scheduled for April 5, 2019. Melendez faces a statutory maximum of eight years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cox commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Alexander Effendi of the Tax Division and Assistant United States Attorney Melanie Smith, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Criminal Complaint Filed Against McCandless Man Caught by FBI while Intending to Rob 4th Bank in 8 DaysRead the Press Release
PITTSBURGH – Dylan Michael Poole, 24, of McCandless, Pa., has been charged by criminal complaint with robbing three area banks and attempting to rob a fourth bank, United States Attorney Scott W. Brady announced today.
Poole was arrested on Nov. 15, 2018 after entering the PNC Bank in Latrobe, Pa. FBI investigators found on his person a robbery demand note that stated, "I have a gun this is a robbery empty the drawer no funny business no one gets hurt." According to the criminal complaint filed in this case, this note was similar to ones Poole left at the scene of two of his prior bank robberies: Nov. 9 in Donegal, Pa., and Nov. 13 in Wexford, Pa.
Additionally, the complaint alleges that on Nov. 8, 2018, Poole entered the WesBanco Bank in McCandless, Pa., and handed the teller a note that read, "This is a robbery, give me all the 100s, 50s and 20s. No funny stuff and nobody will get hurt." Poole received approximately $2,030 from the teller and fled the bank.
On Nov. 9, 2018, Poole entered a PNC Bank located in Donegal, Pa. He approached the teller and handed the teller a note that read, "I have a gun empty all your 100s, 50s, 20s from the drawer. No funny business and no one gets hurt." Poole received approximately $2,388 from the teller and fled the bank. During his flight, Poole left the note behind. Pennsylvania State Police collected the note when responding to the scene.
On Nov. 13, 2018, Poole entered a First National Bank in Wexford, Pa. Poole approached the teller and handed the teller a note that read, "This is a robbery empty the drawer I have a gun that I don’t want to use no funny business no one gets hurt." Poole received $1,028 from the teller and fled the bank. Poole also left this note in the bank during his flight and it was recovered by Allegheny County Police.
FBI investigators were able to track a vehicle leaving the Nov. 13, 2018 bank robbery that was captured on video surveillance. The car was registered to Poole. On November 15, 2018, FBI investigators set up surveillance on Poole at his home in McCandless. Poole drove to the PNC Bank in Latrobe and entered the bank. Once Poole entered the bank he was arrested by FBI investigators. Located on the person of Poole was a note that read, "I have a gun this is a robbery empty the drawer no funny business no one gets hurt."
After Poole was detained, investigators searched his vehicle and recovered money stolen from the November 13, 2018 robbery in Wexford.
Poole made an initial appearance today in federal court. U.S. Magistrate Judge Lisa Lenihan scheduled a detention hearing for Poole on Nov. 20 at 11:30 a.m.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Yvonne Saadi are prosecuting this case on behalf of the government.
The FBI Pittsburgh’s Violent Crimes Task Force, with assistance from the Pennsylvania State Police, Northern Regional Police Department, Allegheny County Sheriff’s Office, McCandless Police Department and Shaler Township Police Department conducted the investigation leading to the indictment in this case.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Sentenced to More Than 7 Years in Federal Prison for Illegally Possessing Two Loaded Handguns in a Chicago ParkRead the Press Release
CHICAGO — A convicted felon has been sentenced to more than seven years in federal prison for illegally possessing two loaded semi-automatic handguns in a park in the Little Village neighborhood of Chicago.
LUIS REYNOSO possessed the guns on the afternoon of April 24, 2017, in Piotrowski Park, in the 4200 block of West 31st Street in Chicago. Reynoso also possessed four bags of marijuana and $345 in cash. Reynoso had previously been convicted of multiple felonies, including attempted murder, and was not legally allowed to possess a firearm.
Reynoso, 38, of Chicago, pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon. U.S. District Judge Ronald A. Guzman on Tuesday sentenced Reynoso to seven years and eight months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department.
“Firearms and firearm-related violence have plagued the City of Chicago for years, and a felon in possession of a firearm – like Reynoso – presents a risk and threat of violence to the community,” Assistant U.S. Attorney Timothy J. Storino argued in the government’s sentencing memorandum. “Reynoso’s illegal possession of a firearm is part of the larger cycle of illegal gun possession that fuels the gun violence in this city and continues to victimize all residents of the City of Chicago.”
Evidence in the case revealed that Reynoso stored the loaded handguns and some of the baggies of marijuana in a red bag, which he had with him in the park. When a law enforcement officer approached him, Reynoso left the bag and ran off, leading the officer on a foot chase along 31st Street. The officer eventually caught up with Reynoso and arrested him. The officer discovered the cash and a bag of marijuana on Reynoso’s person. The officer then walked Reynoso back to the red bag, which contained the two firearms and three additional baggies of marijuana.
Convicted Felon Sentenced for Armed Robbery of Waffle House and Assault on Police OfficersRead the Press Release
ATLANTA – Jason Philpot, a 10-time convicted felon, was sentenced to federal prison for the armed robbery of a Waffle House and assault on police officers, whom he led on a high-speed chase and shot at after the robbery.
“Philpot amassed nine felony convictions during the past 20 years prior to committing the offenses in this case,” said U.S. Attorney Byung J. “BJay” Pak. The citizens of our district are fortunate that his tenth felony, an armed robbery that involved a high-speed chase and shots fired at police officers, did not end in tragedy. Our community is now safer with Philpot behind bars.”
“The complete disregard shown by this defendant for the safety of the Waffle House employees and customers, the motoring public, and law enforcement officers who were shot at, is reprehensible,” said Chris Hacker, Special Agent in Charge of the FBI Atlanta field office. “The FBI would like to thank the employee who called 911 and DeKalb County Police for helping us make sure Philpot serves a lengthy sentence in federal prison.”
According to U.S. Attorney Pak, the charges and other information presented in court: On September 30, 2014, Philpot and his accomplice entered the Waffle House on LaVista Road in Tucker, Georgia, shortly after 10:30 PM. Philpot wore a black mask and carried an assault-style rifle while his accomplice wore a green mask and carried a handgun. The robbers approached two waitresses at gunpoint and demanded that the women provide money from their cash registers and relinquish any personal cash. Philpot and his accomplice then emptied the cash register, took the waitresses’ tip money, demanded access to the safe, and forced the waitresses to accompany the robbers to the rear of the restaurant before placing the women on the floor at gunpoint.
A Waffle House employee standing outside the restaurant saw the robbers flee and called 911, thereby alerting a nearby DeKalb County police officer about the robbery. The officer encountered the robbers and unsuccessfully attempted to stop them before they escaped in a car driven by the defendant. Philpot and his accomplice then led multiple police officers on a high-speed car chase through a busy commercial area. Philpot eventually crashed his car. He and his accomplice fled on foot and fired at the pursuing officers. The defendants fired 11 rounds at police officers before Philpot was arrested at a nearby hotel and his accomplice was apprehended in a brush area close to the hotel. Philpot pleaded guilty to the armed robbery of the restaurant, but proceeded to trial on the offenses of discharging a firearm during a crime of violence – the armed robbery – and being a previously convicted felon in possession of a firearm. A jury convicted him of the offenses on August 4, 2017.
The jury acquitted Philpot’s accomplice of all charges related to the Waffle House robbery and his accomplice subsequently pleaded guilty to committing the armed robbery of a McDonald’s restaurant that occurred days before the Waffle House robbery. Philpot’s accomplice received a sentence of 10 years in prison.
Jason Philpot, 38, of Atlanta, Georgia was sentenced to 25 years, eight months in prison to be followed by three years of supervised release.
This case was investigated by the Federal Bureau of Investigation and DeKalb County Police Department.
Assistant U.S. Attorneys Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, and Jessica C. Morris prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] 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.
Citizen of Mexico Sentenced to 14 Years for Illegal Re-Entry and Failure to Register as A Sex OffenderRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Ramon Lopez-Alvarado (59, Valles, Mexico) to 14 years in federal prison for illegal re-entry into the United States and failure to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). Lopez-Alvarado pleaded guilty to failure to register as a sex offender on July 27, 2018. A federal jury found him guilty of illegal re-entry on August 7, 2018.
According to court documents and evidence presented at trial, Lopez-Alvarado, an alien of the United States who had previously been removed from the country in 2000, 2009, and 2013, was found to be back in the Orlando area in March 2018. At the time, Lopez-Alvarado had prior felony convictions for committing lewd acts on a child and failing to register as a sex offender. When he returned to the United States, he again failed to register as a sex offender as required by SORNA.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
“This sentencing represents law enforcement partners working together to make our communities and our nation safer,” said acting Miami Field Office Director Jim Martin. “This criminal alien will now be held accountable for his actions.”
“The United States Marshals Service will remain steadfast in its pursuit to ensure that convicted sex offenders adhere to the registration requirements clearly outlined in the Adam Walsh Child Protection Act,” said U.S. Marshal William “Bill” Berger for the Middle District of Florida.
This case was investigated by United States Immigration and Customs Enforcement ERO and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Kara M. Wick.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cassadaga Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Villafane-Lozada, 23, of Cassadaga, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession of child pornography involving a prepubescent minor. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy V. Murray, who is handling the case, stated that on April 19, 2018, law enforcement officers executed a search warrant at the defendant’s residence and seized a digital memory card which contained 30 videos and 22 images of child pornography. Some of the images depicted prepubescent minors or minors under 12 years old, the sexual abuse or exploitation of an infant or toddler, and depictions of violence.
As part of his plea, Villafane-Lozada admitted that between 2014 and 2017, he engaged in sexual contact with two minor victims under the age of 18 years old.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for March 1, 2019, at 12:30 p.m. before Judge Arcara.
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California man sentenced in methamphetamine conspiracyRead the Press Release
BILLINGS – A California man who admitted being part of an organization that brought multi-pound quantities of methamphetamine to the Billings area and Crow Indian Reservation was sentenced on Thursday to eight years in prison and five years supervised release, U.S. Attorney Kurt G. Alme said.
U.S. District Judge Susan Watters presided at the sentencing of Miguel Morales, 27, of San Jose, who pleaded guilty in April to conspiracy to possess with intent to distribute and to distribute meth.
In the summer of 2015, law enforcement officers began investigating a drug trafficking organization in which men from San Jose, Calif., were bringing multi-pound quantities of meth Montana for distribution. The investigation found that Morales worked with the organization and in 2016 was in Billings and Crow Agency to distribute meth to others and to collect money.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI task force and Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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California man gets 10 years for Kalispell meth traffickingRead the Press Release
MISSOULA—A man who admitted bringing methamphetamine to Kalispell for distribution was sentenced to 10 years in federal prison on Thursday, U.S. Attorney Kurt Alme said.
Chief U.S. District Judge Dana L. Christensen sentenced Christopher George Nomura, 35, of Corona, Ca., to five years for conviction on possession with intent to distribute meth, a consecutive five years for possessing a firearm in furtherance of a drug trafficking crime and to five years supervised release.
Nomura pleaded guilty to the charges on Aug. 1, 2018.
Law enforcement officers arrested Nomura at a Kalispell hotel in February 2016 after a confidential informant bought meth from Nomura’s codefendant. The codefendant told investigators he drove with Nomura to Kalispell and that Nomura had brought meth to sell. When agents arrested Nomura, they found two pistols and a baggie of meth on his person.
Nomura admitted to agents he and his codefendant drove from California in early 2016 with about a pound of meth to distribute and that he had returned to California and got more meth for distribution in Kalispell.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Northwest Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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CDC Senior Contracting Officer Sentenced for Failing to Disclose Payments from ContractorRead the Press Release
ATLANTA – Carlos Smiley was sentenced to federal prison for making false statements in his annual conflict of interest certification. Smiley was a long-time federal employee and Senior Contracting Officer at the Centers for Disease Control and Prevention (CDC), and the former President of the Atlanta Chapter of the National Contract Management Association.
“Federal contracting officers must disclose payments from outside parties fully and honestly,” said U.S. Attorney Byung J. “BJay” Pak. “Failure to do so limits the ability of federal agencies to detect, deter and punish undisclosed conflicts of interest.”
“We hold our employees to the highest standard and expect them to demonstrate the utmost integrity as civil servants to the nation,” said Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General – Special Investigations. “Smiley’s sentencing demonstrates, making false statements for the purpose of financial gain will not be tolerated.”
According to U.S. Attorney Pak, the charges and other information presented in court: On February 16, 2012 and January 7, 2013, Smiley completed Confidential Financial Disclosure Reports required by his position as a CDC Contracting Officer. Both times, Smiley answered “no” to the question asking whether he had received outside income.
Between September 2011 and January 2012, Smiley received several payments from A-TEK, a Virginia-based holding company that was seeking to do business with the CDC during that time. CDC previously granted Smiley’s request to operate a company called Charisma III, Inc. as an outside business activity. After that, Smiley ostensibly received payments through Charisma III for real estate investment advice.
In 2012, A-TEK was awarded a single-source contract for the staffing of CDC field stations overseas. Smiley signed the contract as the approving contracting officer for CDC. A-TEK turned down the contract after learning of the relationship between Smiley and a representative of its holding company, who was also an A-TEK employee until fired for his conduct. Smiley failed to disclose six payments for a total of $30,600.
In 2015, CDC investigators confronted Smiley about the payments. He admitted to receiving them and to having invented the Charisma III officer whose fictitious name appeared on the purported agreement between Charisma III and the holding company for real estate investment advice.
Carlos Smiley, 57, of Roswell, Georgia was sentenced to three months in federal prison by U.S. District Judge Thomas W. Thrash, Jr. on November 15, 2018. Smiley was also sentenced to one year of supervised release and 200 hours community service following his release from prison. He was also fined $5,000. Smiley was convicted of the charge on July 19, 2018, after pleading guilty to making false statements.
The case was investigated by the Department of Health and Human Services, Office of the Inspector General.
Assistant U.S. Attorney Brian Pearce prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Butte woman sentenced in meth trafficking caseRead the Press Release
MISSOULA—U.S. Attorney Kurt G. Alme announced that Jennifer Lynn Marshall, of Butte, was sentenced on Wednesday to eight years in prison for conspiracy and firearms convictions in a methamphetamine trafficking case.
Marshall, 43, pleaded guilty in August to conspiracy to distribute and to possess with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided at the hearing and imposed three years in prison for the drug crime and an additional five years in prison for the firearms violation.
An investigation into meth trafficking found that Marshall sold one ounce of pure meth to a confidential informant in May 2016 and later that month left with an informant to drive to California to buy four pounds of meth. However, Marshall was stopped and arrested in Dillon while traveling to California and was found to have $12,000 and a .380 caliber handgun in her possession.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Missouri River Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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Burlington, New Jersey, Doctor Arrested for Role in $20 Million Telemedicine Compounded Medication SchemeRead the Press Release
NEWARK, N.J. – A Burlington, New Jersey, man was arrested Friday for his role in a telemedicine scheme to prescribe expensive compounded medications to patients who did not need them, U.S. Attorney Craig Carpenito announced.
Dr. Bernard Ogon, 45, is charged by complaint with one count of conspiracy to commit health care fraud. He made his initial court appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $500,000 secured bond.
According to documents filed in this case and statements made in court:
Telemedicine allows health care providers to evaluate, diagnose, and treat patients remotely – without the need for an in-person visit –by interacting with a patient using telecommunications technology, such as the internet or telephone. Ogon was paid by various telemedicine companies to prescribe exorbitantly expensive compounded medications, such as pain creams, scar creams, migraine creams, and metabolic supplements/“wellness capsules,” regardless of whether they were medically necessary for the patient.
The telemedicine companies sent Ogon prescriptions to sign for compounded medications, and Ogon signed the prescriptions without having established any prior doctor-patient relationship, speaking with the patient, or conducting any kind of medical evaluation.
The telemedicine companies often filled out the prescriptions completely – including selecting the compound medications to be prescribed – before Ogon ever saw them. Once Ogon received the filled-out prescriptions, he needed only to sign them to complete the prescription.
Ogon often received little or no information about the patients before he signed the prescriptions. As a result, Ogon on multiple occasions signed prescriptions for either expensive compounded scar cream or pain cream even though he had not received any information indicating that the patient needed them. Ogon also signed prescriptions for patients residing in states where he was not licensed to practice medicine.
After Ogon signed the medically unnecessary prescriptions, they were sent to compounding pharmacies with whom he or other entities involved in the scheme had relationships. The compounding pharmacies then filled the prescriptions and billed the patient’s health care benefit program regardless of medical necessity.
The telemedicine companies paid Ogon on a per-prescription basis for many prescriptions he signed. One telemedicine company paid Ogon between $20 and $30 per prescription. Ogon’s participation in the conspiracy caused a loss to health care benefit programs of more than $20 million, at least $3 million of which was sustained by TRICARE – a health care benefit program for members of the military and their families.
The charge of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, and special agents of the Department of Health and Human Services, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Erica Liu, Chief of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Buffalo Man, Convicted by Federal Jury, Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Larry Willis, 33, of Buffalo, NY, who was convicted following a jury trial of possessing crack cocaine with intent to distribute, maintaining a drug involved premises, possessing firearms in furtherance of drug trafficking activities, and being a felon-in-possession of firearms and explosives, was sentenced to serve 210 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Laura A. Higgins and Paul E. Bonanno, who handled the trial of the case, stated that between November 2016 and December 1, 2016, Willis and co-defendant Isiah Pierce utilized two apartments inside 70 Henrietta Avenue, Buffalo, New York, to manufacture, package, and store quantities of crack cocaine, heroin, cocaine, fentanyl, and butyryl fentanyl, along with the proceeds from the sale of such substances. To protect their product and their proceeds, the defendants maintained multiple firearms and ammunition within each of the apartments.
During the execution of a search warrant in the lower apartment at 70 Henrietta Avenue, officers recovered crack cocaine, three firearms and ammunition, a digital scale with drug residue, packaging material, whisks, spoons, and cutting agents. A subsequent search of the upper apartment uncovered additional amounts of crack cocaine, a mixture of heroin and butyryl fentanyl, three handguns, and numerous rounds of ammunition.
The sentencing is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Isiah Pierce is awaiting sentencing.
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Brunswick County Man Sentenced to 204 Months in Prison for Drug Trafficking OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that United States District Court Judge James C. Dever III sentenced RODNEY TROY WILLIAMS, 50, of Bolivia, North Carolina, to 204 months in prison, followed by 60 months of supervised release.
WILLIAMS was charged in a two-count Indictment that was issued by the grand jury for the Eastern District of North Carolina on January 31, 2018. The indictment charged WILLIAMS with multiple drug trafficking counts relating to the distribution of cocaine base crack. All of the charged crimes took place in Brunswick and Robeson Counties of North Carolina.
In April, 2017, the Federal Bureau of Investigation (FBI) and the Brunswick County Sheriff’s Office investigated a drug trafficking group that WILLIAMS allegedly worked for. On April 10, 2017, based upon multiple leads, the FBI and Brunswick County Sheriff’s Office followed WILLAMS from his home in Brunswick County to a residence in Robeson County, North Carolina. While WILLIAMS traveled back to Brunswick County, law enforcement initiated traffic stops on both cars traveling with WILLIAMS. In one of the vehicles, agents recovered roughly 100 grams of crack cocaine. All of the individuals from both vehicles were arrested and eventually confessed to working with WILLIAMS to traffic the seized crack cocaine.
At sentencing, the Court found that WILLIAMS was the leader of the drug trafficking organization. Further, the Court noted WILLIAMS’S lengthy criminal history, which includes multiple drug trafficking felonies, as part of the justification for the sentence imposed.
This case was brought by the United States Attorney’s Office through partnership with the Brunswick County Sherriff’s Office and the FBI. The case was prosecuted by Assistant United States Attorney Brad Knott.
Brockway, Pa. Man Sentenced to Prison for Federal Firearms ViolationRead the Press Release
PITTSBURGH, Pa. – A former resident of Jefferson County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 18 months, to be followed by 2 years of supervised release on his conviction on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Douglas Means, 35, formerly of Brockway, Pa.
According to information presented to the court, in August of 2016, Means stole a .380 caliber semiautomatic Smith and Wesson pistol from his father’s residence in Brockway, PA. Means kept the firearm for a few weeks before selling it to his drug source for $400 and 1 gram of cocaine. The firearm was transferred to a drug dealer in New York, so that it could be resold for more money. The gun was later recovered in New York with the serial number intact. Means wrote a voluntary statement confessing to his conduct.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with a detective from the Allegheny County Sheriff’s Office, conducted the investigation leading to the Indictment in this case.
Brockport Man Sentenced for Aiding and Abetting Credit Card Fraud and Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Paul Kozlyuk, 32, of Brockport, NY, who was convicted of aiding and abetting the unlawful transfer, possession, and use of identification documents, authentication features, and information, was sentenced to serve 27 months in prison by U.S. District Judge Elizabeth A. Wolford to. The defendant was also ordered to pay more than $95,000 in restitution to victim businesses.
Assistant U.S. Attorneys Kyle Rossi and Melissa Marangola, who handled the case, stated that the defendant conspired with co-defendant Kyle Bertrand and others, to steal goods from various businesses. As part of the scheme, defendant Bertrand stole the identification of individuals residing in multiple states, including their names, Social Security Numbers, dates of birth, and credit card information. During the scheme, using the stolen identifications, Bertrand, at the request of Kozlyuk, made unlawful purchases of items for the defendant. Kozlyuk then paid Kyle Bertrand with Walmart money grams. Kozlyuk paid Bertrand a fraction of the actual market price of the stolen goods, and either kept the goods or sold them for a profit, through his former business, the Marketview Heights Garage.
Kozlyuk unlawfully obtained vehicle parts from various out-of-state venders, which he later sold to vendors. Kozlyuk also stole inventory from vendors in the Western District of New York. All told, Kozlyuk stole or attempted to steal a total of $144,688.35 in goods.
Kozlyuk was charged along with co-defendants Kyle Bertrand, Herbert Street, Michael Gerone, and Richard Lipke. All defendants have been convicted.
Today’s sentencing is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton; the Rochester Police Department, under the direction of Chief Mark Simmons, and Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Bridgeport Man Pleads Guilty to Federal Drug Charge Related to Investigation of Stratford Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on November 13, 2018, TALVIN HINTON, 42, of Bridgeport, pleaded guilty in Bridgeport federal court to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on September 23, 2017, the Stratford Police Department and emergency medical personnel responded to a suspected overdose of a 25-year-old female at a Stratford home. The victim was transported to the hospital where she was pronounced deceased. At the scene, officers collected nine bags of suspected heroin and other evidence of drug use.
The State of Connecticut Chief Medical Examiner determined the victim’s cause of death to be intoxication of a combination of heroin, fentanyl and other substances.
The investigation revealed that Hinton was the source of the narcotics purchased by the victim shortly before she died.
Between January and March 2018, investigators made four controlled purchases of heroin from Hinton. He was arrested on a federal criminal complaint on March 20, 2018.
Hinton is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport on February 5, 2019, at which time he faces a maximum term of imprisonment of 20 years.
Hinton is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Bolivar Man Sentenced to 20 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Bolivar, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the internet.
Kevin Robert Thomas, 46, was sentenced by U.S. District Judge Stephen R. Bough to 20 years in federal prison without parole.
Thomas pleaded guilty on June 11, 2018. The investigation began when a law enforcement officer, using investigative tools for unlawful internet usage, noticed that Thomas was using peer-to-peer file-sharing software to make child pornography available on his computer. Officers executed a search warrant at Thomas’s residence and seized three computers.
Investigators examined the computers and found 261 images and videos of child pornography on two of the computers. The images and videos depicted children from five to 16 years old.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cyber Crime Task Force, the Missouri State Highway Patrol, the Polk County, Mo., Sheriff’s Department and the Bolivar, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Bank Executive and Husband Sentenced after Embezzling $2.7 MillionRead the Press Release
BOSTON – A former Senior Vice President at Bank of America and her husband were sentenced in federal court in Boston for embezzling more than $2.7 million from the bank using fraudulent donations to non-profit organizations.
Palestine Ace, a/k/a Pam Ace, 45, a former Senior Vice President of Bank of America’s Global Wealth & Investment Management Division, was sentenced on Nov. 14, 2018, by U.S. District Court Judge Allison D. Burroughs to one year and one day in prison, two years of supervised release and ordered to pay restitution of $2,778,000. Her husband, Jonathan R. Ace, 46, was sentenced yesterday by Judge Burroughs to two years in prison, two years of supervised release and ordered to pay restitution of $1,855,000. In February 2018, Palestine Ace pleaded guilty to one count of conspiracy to commit bank fraud, five counts of wire fraud, and 12 counts of bank fraud; Jonathan Ace pleaded guilty to one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of engaging in an unlawful monetary transaction.
From approximately October 2010 to April 2015, the couple engaged in an embezzlement and kickback scheme to defraud Bank of America of approximately $2.7 million using fraudulent donations to non-profit organizations. As part of the scheme, Palestine Ace used her position as a Senior Vice President at Bank of America to misappropriate funds from a marketing budget and transfer the money to non-profit organizations. Specifically, Palestine Ace authorized 75 transactions, each under $50,000, to non-profit organizations in Boston and Atlanta. Then, the couple, either directly or indirectly, informed the non-profit organizations that a substantial portion of the donated funds had to be returned in order to ensure that Bank of America would continue to fund the organization. The non-profit organizations either wrote a check to Jonathan Ace or a co-conspirator, or they returned funds to a Bank of America account, to which the couple had access. On various occasions, Jonathan Ace pressured the recipients of the donated funds to return a higher percentage of the funds to him, by using intimidation and threats of public humiliation.
Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Gross; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Neil J. Gallagher of Lelling’s Securities and Financial Fraud Crimes Unit prosecuted the case.
Austin Man Sentenced to Federal Prison for Firearms Smuggling SchemeRead the Press Release
In Austin today, U.S. District Judge Robert Pitman sentenced 28–year–old Austin resident Tyler Carlson to 70 months imprisonment followed by two years of supervised release for his role in a firearms smuggling scheme involving machineguns and assault weapons, announced U.S. Attorney John F. Bash; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, U.S. Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division.
On April 23, 2018, Carlson pleaded guilty to one count of conspiracy to violate multiple U.S. laws, including illegal exportation of munitions and unlawful possession and transfer of machineguns. Carlson also pleaded guilty to one count of possession of a machinegun.
According to court documents, Carlson conspired with others to violate multiple federal firearms laws, including possessing and transferring unregistered machineguns and unlawfully exporting firearms to Mexico. Carlson worked with others to acquire and unlawfully smuggle 200 firearms, including .50 caliber rifles, and hundreds of thousands of rounds of ammunition to Mexico.
Court documents also reflect that Carlson worked with 69–year–old former law enforcement officer and federal firearms licensee Michael Fox of Georgetown, TX, to illegally acquire multiple M-134G Minigun machineguns. The M-134G is a six-barrel rotary machine gun that can fire between 2,000 and 6,000 rounds of ammunition per minute. Fox, a co-defendant, contacted 63–year–old Tracy Garwood, another co-defendant and owner of the M-134G manufacturer Garwood Industries in Arizona, who agreed to help with the construction and supply Fox with M-134G parts. Records indicated that Garwood did not know the M-134Gs were to be smuggled illegally to Mexico. However, Garwood submitted false paperwork to the ATF claiming he had destroyed multiple M-134G rotor housings—a key component of the M-134G that must be serialized and registered with the ATF. Instead, Garwood unlawfully transferred possession of those rotor housings to Fox.
On February 8, 2017, authorities recovered three M134G rotor housings while executing a search warrant at Fox’s residence. Two of the rotor housings were ones that Garwood told ATF were destroyed. Court records indicate that multiple M-134Gs were successfully smuggled into Mexico by Carlson and coconspirators who were prosecuted in the Southern District of Texas. Through efforts by U.S. and Mexican law enforcement, one of those M-134Gs was recovered by law enforcement in Mexico.
On September 7, 2018, Judge Pitman sentenced Garwood to two years probation and ordered him to pay a $50,000 fine after he pleaded guilty to the conspiracy charge in May 2018. Garwood agreed to divest himself from ownership of his company. As a convicted felon, he can no longer possess firearms.
Fox, who faces up to five years in federal prison after pleading guilty to the conspiracy charge in July 2018, is scheduled for sentencing on January 11, 2019, in Austin before Judge Pitman.
“Firearms trafficking is a priority for ATF because of the increased potential for those guns to be acquired by the criminal element,” said ATF Special Agent in Charge Fred Milanowski.
“This investigation is example of a transnational criminal organization conspiring with individuals in the United States to straw purchase weapons and munitions for the purpose of illegal export. HSI works around the clock with its foreign law enforcement partners to arrest and prosecute these criminals,” said HSI Special Agent in Charge Folden.
“We remain steadfast in our resolve to seek justice to the end and defend the nation’s mail service from illegal use. This goal is achieved through collaborative investigative efforts with other law enforcement agencies,” stated USPIS Inspector in Charge Adrian Gonzalez.
The ATF, HSI, and USPIS conducted this investigation. The U.S. Marshal Service assisted with the deportation of Carlson from Mexico in October 2017. The U.S. Attorney’s Offices for the Southern District of Texas and the District of Arizona provided assistance during this investigation. Assistant U.S. Attorney Michael C. Galdo is prosecuting this case on behalf of the Government.
Arnaudville man sentenced to 90 years in prison for producing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that an Arnaudville man was sentenced to 90 years in prison for producing child pornography.
Joseph Martin, 35, of Arnaudville, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on three counts of production of child pornography. He was also sentenced to 20 years of supervised release if he is ever released and must register as a sex offender. According to the June 4, 2018 guilty plea, law enforcement agents executed a search warrant at Martin’s property and found electronic storage devices in a shed on the property. Upon review of the electronic storage devices, agents found numerous videos of child pornography that Martin had made. Some of the child pornography depicted a child of approximately 4 years old and others depicted a child of approximately 10 months old. The images dated back to 2015.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative 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 combines 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.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 262-2164.
The FBI conducted the investigation. Assistant U.S. Attorney Robert A. Abendroth prosecuted the case.
Arms Trafficker Found Guilty of Conspiring to Supply and Use Anti-Aircraft Missiles after Pleading Guilty to other Arms OffensesRead the Press Release
LOS ANGELES – A federal jury has convicted a black-market arms dealer of conspiring to acquire, transfer and use missiles designed to shoot down aircraft.
Rami Najm Asad-Ghanem, 52, who was commonly known as Rami Ghanem, a naturalized United States citizen who was living in Egypt at the time of the offenses, was found guilty of the missile conspiracy charge late Thursday afternoon in United States District Court. The jury returned the verdict at the conclusion of a nine-day trial.
The evidence at trial showed that Ghanem conspired to transfer a wide array of different surface-to-air missile systems to customers around the world, including clients in Libya, the United Arab Emirates, Iraq and other countries. During the trial, prosecutors presented evidence – which included Ghanem’s electronic communications, his recorded statements, and the corroborating testimony of co-conspirators taken abroad – that demonstrated he conspired to use Russian-made Igla and Strela surface-to-air missile systems by brokering the services of mercenary missile operators to a militant faction in Libya in 2015. Among other actions, Ghanem negotiated the salaries and terms of service of the mercenary missile operators, coordinated their payment, facilitated their travel to Libya, and offered them a $50,000 bonus if they were successful in their mission of shooting down airplanes flown by the internationally recognized government of Libya.
“With the wide range of weapons being offered for sale, this case demonstrates the dangers of underground arms trafficking to the international community and to the security of U.S. forces operating abroad,” said United States Attorney Nick Hanna. “This complicated case was successfully prosecuted as a result of the diligent efforts of federal law enforcement authorities conducting international operations, obtaining evidence from foreign nations and piecing together illicit arms deals in several nations. The successful conclusion of this case is a clear message to arms dealers that there will be severe consequences for providing weapons of war through the black market.”
“Safeguarding our military equipment and technology is vital to our nation’s defense, the protection of our war fighters and a top enforcement priority for HSI,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “The successful outcome of this case is a direct result of the steadfast efforts of our domestic and international law enforcement partners to keep dangerous weapons out of the hands of transnational criminal organizations and foreign enemies that would do us harm. HSI will continue to aggressively target individuals who seek to illegally procure and sell items aimed at causing serious harm to the security of our nation.”
On October 29, Ghanem pleaded guilty to six other federal crimes arising from a variety of arms-trafficking activities, including the unlicensed export of weapons and ammunition, smuggling, money laundering and unlicensed arms brokering.
The investigation into Ghanem started in mid-2014, when a Los Angeles-based supplier of military supplies alerted the U.S. government that it had been solicited to provide equipment to Ghanem. During an undercover operation, an HSI agent developed a relationship with Ghanem, who was seeking to procure a number of armaments – including sniper rifles and night-vision optics – but Ghanem affirmed that the transactions had to be “under the table.” During subsequent meetings with the undercover operative in Athens, Ghanem expressed an interest in purchasing helicopters and fighter jets on behalf of Iranian clients, and Ghanem said he had relationships with Hezbollah in Iraq.
Over the course of several months in 2015, Ghanem discussed his interest in purchasing numerous weapons, and in August 2015 placed an order for $220,000 worth of sniper rifles, pistols, silencers, laser sights, ammunition, night-vision goggles and other items that were to be shipped to Libya. After making two down payments, Ghanem was arrested on December 8, 2015, in Athens. He was extradited to the United States in April 2016 to face prosecution in this case and has remained in custody without bond since the time of his arrest.
After his arrests, authorities seized numerous digital devices that Ghanem had in his possession. Searches of those devices revealed evidence of other large-scale arms brokering activities, including millions of rounds of ammunition, anti-tank missiles, and the scheme to transfer and use anti-aircraft missiles.
“The guilty verdict in the trial of Ghanem demonstrates the Defense Criminal Investigative Service’s unwavering commitment to protect our country from those who seek to inflict harm on it,” said Chris Hendrickson, Special Agent in Charge, DCIS Western Field Office. “DCIS, along with our federal law enforcement partners, will relentlessly pursue those who put our military and our foreign military partners at risk by illegally obtaining and exporting protected U.S. military assets for use against our military and our foreign military partners.”
“This guilty verdict is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to combat the illegal shipment of sophisticated technology. We will continue to aggressively pursue violators wherever they may be,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
United States District Judge S. James Otero, who presided over Ghanem’s trial, has scheduled a sentencing hearing for March 4, 2019.
As a result of Thursday’s guilty verdict on the missile-trafficking charge, Ghanem will face a mandatory minimum sentence of 25 years in federal prison and a statutory maximum sentence of life imprisonment.
Last month, Ghanem pleaded guilty to attempted exportation of defense articles without a license, smuggling, two counts of money laundering, conspiracy to illegally broker a wide range of weapons and illegal arms brokering. In relation to the charges to which he pleaded guilty, Ghanem faces a statutory maximum sentence of 20 years for each of the weapons exportation, arms brokering and money laundering counts. On the smuggling count, Ghanem faces a statutory maximum sentence of 10 years in prison. On the conspiracy count, he faces a statutory maximum sentence of 5 years in prison.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Department of Defense’s Criminal Investigative Service; and the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant support in the investigation and securing the defendant’s extradition from Greece.
The case is being prosecuted by Assistant United States Attorneys Melissa Mills and George E. Pence IV of the United States Attorney’s Office’s Terrorism and Export Crimes Section, and by Trial Attorney Christian E. Ford of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Acting Attorney General Whitaker Statement on the 25th Anniversary of the Religious Freedom Restoration ActRead the Press Release
Acting Attorney General Matthew Whitaker today released the following statement:
“Today marks the 25th anniversary of the Religious Freedom Restoration Act (RFRA), an important law protecting one of our most fundamental freedoms. RFRA was approved by Congress with overwhelming bipartisan support, passing the House unanimously and approved 97 to 3 in the Senate, and signed into law by President Clinton.
“RFRA ensures that our foundational freedom of religious liberty is protected: the right to believe, worship, and practice our faiths according to the dictates of our consciences.
“RFRA requires that whenever actions by the federal government would impose a substantial burden on a person’s religious exercise, the government must give reasons for doing so. And unless the government has a compelling reason, and the government action burdens religion no more than is necessary, RFRA requires that the government accommodate religious freedom.
“It is a remarkable thing for any government to impose such restraints on itself. It is much easier for a government to operate in a manner it believes to be most effective and disregard the costs on individual liberty and conscience. The enactment of RFRA was a bold affirmation that religious freedom and freedom of conscience are precious and deserving of protection, even if this may make things harder for the government.
“The enactment of RFRA was also a re-affirmation of America’s promise to protect religious minorities, which stretches back to George Washington’s promise to the Jewish Congregation in Newport that they would find not only tolerance but equal rights in America, and President Lincoln’s granting of conscientious objector status to Quakers during the Civil War. Minority faiths have been protected by RFRA over the past 25 years.
“Today we celebrate the anniversary of this law and renew our commitment to protecting the freedom of all Americans to exercise their religious convictions openly, in speech and actions. Under President Donald Trump, the Department of Justice will continue defend the rights of people of faith.”
40 Year Sentence Imposed by Federal Judge in Child Exploitation CaseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that today the Honorable Christopher C. Conner sentenced Mason David Powell, age 30, a resident of Biglerville, Pennsylvania to 40 years in federal prison following a three hour sentencing hearing.
According to United States Attorney David J. Freed, officers from the Cumberland Township Police Department initially arrested Powell in Biglerville, PA on October 17, 2015. This arrest followed a concerned parent’s report to the local police that Powell was inappropriately chatting with her minor son. With consent from this parent to assume the minor’s online identity, law enforcement set up a meeting with Powell, who continued to believe he chatted with a minor. Powell arrived at the arranged location to meet the 13 year-old he had been chatting with online and brought two other minors with him. Officers greeted Powell and took him into custody at that time. The Adams County District Attorney’s Office charged Powell with child exploitation offenses relating to a number of minors.
During the investigation, the FBI and the local authorities located online messages Powell exchanged with several minors soliciting naked images of their genitals or attempting to coerce the minors to meet with Powell to engage in sex acts. Powell confessed to soliciting at least 20 minors in this manner. Law enforcement also discovered over 1,000 images of commercially downloaded child pornography of minors as young as infants on Powell’s phone.
On October 28, 2016, Powell pleaded guilty to all counts of the federal indictment and admitted to both producing and possessing images of child pornography that were found on Powell’s phone and in the online chats. In addition, Powell also pleaded guilty to attempting to coerce a minor victim to engage in sexual activity with him.
Before the Court imposed the 40 year sentence, the defense offered testimony from defense expert Dr. Frank Dattilio, a psychologist. Dr. Dattilio opined Powell is predatory, manipulative and on the high end of moderate risk to reoffend without treatment based on Powell’s abuse of numerous minors in the local Adams County community and his collection of pornographic images of prepubescent children from the internet.
Chief Judge Conner rejected the defense’s request to impose only the mandatory minimum of 15 years, stating Powell is “clearly a sexual predator” and a “serious danger to the community” and imposed a 40 year sentence, to be followed by lifetime supervised release.
This case was investigated by the Federal Bureau of Investigation, the Adams County District Attorney’s Office and the Cumberland Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Thursday 15 November 2018
Youngstown Doctor Failed to Pay IRS Nearly $900K in Employment and Income TaxesRead the Press Release
PITTSBURGH – A resident of Wexford, Pennsylvania, pleaded guilty in federal court to a charge of willful failure to pay over taxes, United States Attorney Scott W. Brady announced today.
William L. Houser, Jr., 58, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Houser, a licensed medical doctor and practitioner in Youngstown, Ohio, was required to withhold monies from the paychecks of his employees to cover their individual income, Social Security, and Medicare tax obligations, referred to as trust fund monies, and to remit the trust fund monies to the Internal Revenue Service (IRS) on a quarterly basis. He was also required to pay over to the IRS matching contributions for Social Security and Medicare, commonly known as employment taxes. Houser failed to pay over both employment and trust fund taxes during the period September 2009 through December 2014. He pleaded guilty to one count charging him with failing to pay over to the IRS trust fund taxes totaling $7,057.75, due by January 31, 2014, and agreed to pay the IRS restitution totaling $899,269 for both employment and income taxes that he failed to pay.
Judge Conti scheduled sentencing for March 7, 2019 at 3:30 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Houser was released on an unsecured bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation that led to the prosecution of Houser.
Wood County Woman Sentenced for embezzling $1.8 million from California CompaniesRead the Press Release
TYLER, Texas – A 49-year-old, Hawkins, Texas, woman has been sentenced to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Lina Su, also known as Lina Perkins, pleaded guilty on June 7, 2018, to two counts of wire fraud and one count of money laundering and was sentenced to 80 months in federal prison today by U.S. District Judge Thad Heartfield. Su was also ordered to pay restitution in the amount of $1,815,765.96.
Su, a naturalized citizen from Taiwan, was a financial controller splitting time between living in Hawkins, Texas and Los Angeles. According to information presented in court, in March of 2017, Su made several unauthorized wire transfers from VIG Furniture bank accounts into an account she controlled at City National Bank in Sulphur Springs, Texas. In 2015 and 2016, she also made unauthorized transfers from Airport Van Rental and ACE Medical Transport bank accounts into her personal checking account. In addition, Su used funds from those companies’ accounts to make personal credit card payments, purchase land for herself, and pay contractors constructing her home in Wood County, Texas. Altogether, Su embezzled and transferred over $1.8 million dollars from the California companies she was working for during the time period. Su was indicted by a federal grand jury on Dec. 13, 2017.
Su ultimately cooperated with investigators and entered into an Asset Preservation Agreement with the United States Attorney’s Office which required her to begin paying restitution to her victims by liquidating her assets and turning over those proceeds for restitution for the victims. As part of her plea agreement, Su agreed to forfeit all of her right, title and interest to real property and vehicles.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Jim Noble with the assistance of Assistant U.S. Attorney Robert Wells.
Winslow Man Sentenced over 10 Years Federal Prison for Sexual Offense Against A MinorRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Joseph Snow, age 25, of Winslow, Arkansas, was sentenced today to 124 months without the possibility of parole followed by twenty years of supervised release on one count of Transportation of a Minor with the intent to Engage in Criminal Activity. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in late January of 2018, the father of a fourteen year old female reported to the Washington County Sheriff’s Office that his daughter was missing from her home and was suspected to be with Snow. During the course of the investigation, it was determined that both the minor and Snow had been engaging in sexual activity. Law enforcement subsequently obtained location services on Snow’s cellular phone, reflecting that it was in or near the Roaring River State Park in Missouri. Consequently, Missouri law enforcement was notified. During a subsequent search of the area, law enforcement located both Snow and the minor. Snow later admitted to engaging in sexual intercourse with the minor while in the Missouri State Park.
A federal grand jury indicted Snow in March 2018, and he pleaded guilty in July of 2018.
This case was investigated by the Washington County Sheriff’s Office, the Northwest Arkansas Internet Crimes Against Children Taskforce, Homeland Security Investigations, and the Barry County Sheriff’s Office. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Wetzel County man sentenced to more than 15 years for his connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Doug William Matthews, of New Martinsville, West Virginia, was sentenced today to 188 months incarceration for his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Matthews, age 32, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location” in August 2018. Matthews admitted selling methamphetamine near Magnolia High School in March 2018 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Wells Fargo Personal Banker Indicted for Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY – November 15, 2018
SAN DIEGO – Luis Fernando Figueroa, a former Wells Fargo personal banker, was arrested yesterday by FBI agents and made his initial court appearance today on charges of participating in an international money laundering conspiracy. Figueroa’s apprehension marks the latest in a string of indictments and arrests tied to an international money laundering organization based in Tijuana, Mexico that operated primarily in San Diego, California. Between January and March of 2018, seven leaders of this organization were charged and arrested in San Diego. To date, five of the charged leaders have pleaded guilty.
According to the indictment and other public records, the international money laundering organization laundered approximately $19.6 million dollars in narcotics proceeds on behalf of Mexican-based drug trafficking organizations, including the Sinaloa Cartel, between 2014 and 2016.
The money laundering organization recruited individuals to serve as “funnel account holders” and open personal bank accounts at Wells Fargo Bank and other banking institutions. Other members of the money laundering organization, known as “couriers,” travelled to San Diego, Los Angeles, the East Coast, and other U.S. cities, where they picked up and transported amounts of bulk cash ranging from thousands to hundreds of thousands of dollars in narcotics proceeds.
Once in possession of the money, the couriers deposited the money into the funnel bank accounts controlled by the money laundering organization. These funnel bank accounts were maintained at Wells Fargo Bank, as well as other domestic financial institutions. Subsequently, the funds were transferred from these United States-based accounts via international wire transfers to a series of Mexico-based shell companies operated by the money laundering organization. Once in Mexico, the funds were transferred to representatives of the Sinaloa Cartel.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
This case is being prosecuted by Assistant U.S. Attorneys Blanca Quintero and Jose Castillo.
DEFENDANT
Name Age Hometown
Luis Fernando Figueroa 30 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments (18 U.S.C. § 1956(h)).
Conspiracy (18 U.S.C. § 371).
Operation of an Unlicensed Money Transmitting Business (18 U.S.C. § 1960(a))
Maximum Penalties: Term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 5 years of supervised release.
*The charges and allegations contained in an indictment, information, or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
INVESTIGATIVE AGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Warrensville Heights man indicted on fentanyl, cocaine, firearms and food stamp fraud chargesRead the Press Release
A Warrensville Heights man was indicted on federal drug, firearms and food stamp fraud charges.
Brandon M. Ojikutu, 26, possessed fentanyl, cocaine, a Ruger 9 mm handgun and ammunition on May 26. Ojikutu used the firearm as part of his drug trafficking but was prohibited from having a firearm and ammunition because of prior drug convictions, according to the indictment.
Ojikutu also possessed an EBT card in another person’s name, according to the indictment.
This case was investigated by the Ohio Investigative Unit and Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney James Lewis.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Vaughn woman sentenced for carjackingRead the Press Release
HELENA—A Vaughn woman who admitted to pulling a gun on a driver, who had given her a ride, and ordering the victim and two others out of the vehicle, was sentenced to 14 years prison on Tuesday in U.S. District Court, U.S. Attorney Kurt G. Alme said.
Senior U.S. District Judge Charles C. Lovell sentenced Sidney Rae Aimsback, 30, to seven years in prison for conviction on carjacking and to seven more years for brandishing a firearm in furtherance of a crime of violence.
Aimsback pleaded guilty to the two crimes in May.
The investigation determined that on Nov. 28, 2017 in Helena, Aimsback approached three people, borrowed a cell phone and asked for a ride to a restaurant near Interstate 15. The victim drove her Mitsubishi Outlander, while Aimsback sat in the front passenger seat and the victim’s two friends sat in the back seat. Aimsback persuaded the victim to drive to a nearby housing development, saying her sister lived there.
While stopped at an intersection near the housing development, Aimsback pulled out a gun from near her waistband, pointed it at the victim and told her and the two other passengers to get out of the vehicle. The victim and passengers complied. The three ran up to a carpenter at a building site.
Law enforcement officers arrested Aimsback near Three Forks. The victim consented to a search of the vehicle, and officers found a 9 mm pistol and two magazines of ammunition.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the FBI, Lewis and Clark and Gallatin County sheriff’s offices, the Helena Police Department and the Montana Highway Patrol.
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Vacaville Man Indicted for Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Matthew Michael Fraticelli, 39, of Vacaville, charging him with possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, on September 30, 2018, Vacaville police stopped Fraticelli for various traffic violations. As the officer approached Fraticelli’s car, the officer noticed what he believed to be an ammunition magazine near the driver’s side floorboard. Police searched Fraticelli’s car and located two pistols and a high-capacity drum magazine loaded with 31 rounds of ammunition. Fraticelli cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense.
This case is the product of an investigation by the Vacaville Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
If convicted, Fraticelli faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as a 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. PSN was reinvigorated in 2017 as part of the Department of Justice’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.
Vacaville Man Indicted for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Christian Henry Dorsch Jr., 49, of Vacaville, charging him with possessing methamphetamine for distribution and possession of a controlled substance, U.S. Attorney McGregor W. Scott announced.
According to court documents, on September 6, 2018, law enforcement officers stopped Dorsch while he was driving in Vacaville and had a warrant to search Dorsch, his home, and his cars for evidence of drug trafficking. When the officers searched Dorsch’s car, they found approximately one-half pound of methamphetamine in the center console, as well as a small amount of cocaine elsewhere in the vehicle. When the officers searched Dorsch’s home later that day, they found a small amount of methamphetamine in his bedroom.
This case is the product of an investigation by the Vacaville Police Department with special assistance from the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, and the Solano County District Attorney’s Office.
If convicted of the most significant charge, Dorsch faces a mandatory minimum penalty of five years in prison, and a maximum penalty of 40 years in prison and a $5 million fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney's Office hosts roundtable on sexual harassment in housingRead the Press Release
HELENA – The U.S. Attorney’s Office and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Kurt G. Alme announced.
The event, held at the U.S. Attorney’s Office, included legal aid offices, fair housing organizations, and shelters and transitional housing providers. Those organizations were invited because they often work with vulnerable populations who are most likely to become victims of sexual harassment in housing.
“Sexual harassment in housing is an egregious violation of a person’s right to fair housing,” U.S. Attorney Kurt Alme said. “Landlords using the power they have over tenants to extort sexual favors, or even commit assaults, is intolerable. Our office is dedicated to uncovering such violations where they exist and vigorously enforcing the law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment in Housing Initiative, an effort to combat sexual harassment in housing.
On April 12, 2018, then-Attorney General Jeff Sessions announced the nationwide expansion of that initiative and the formation of a joint task force with the Department of Housing and Urban Development to address this issue.
The initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the department’s enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
In the first year of the initiative’s launch, the Justice Department has opened 34 new sexual harassment matters, which is more than any previous year and nearly five times the number of matters opened in the prior year. In addition, the department has filed six lawsuits in alleged sexual harassment in housing cases, which is more than the department has filed in any previous year.
The U.S. Attorney’s Office is working closely with the Civil Rights Division to spread the word in Montana about options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past.
Roundtable discussions like the one that U.S. Attorney Alme hosted today are one way to increase awareness and build strong partnerships in the community to combat this problem together.
Community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers, can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division and the U.S. Attorney’s Office. In addition, local police departments or legal aid offices may be able to help victims, if the behavior is a crime or if there is an imminent eviction.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing, and the Fair Housing Act prohibits it. The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 1 (844) 380-6178 or emailing [email protected]. For more information, visit https://www.justice.gov/opa/pr/justice-department-reports-major-increases-victim-reporting-and-number-lawsuits-filed-one.
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at United States Attorney’s Office, 2601 Second Avenue N., Suite 3200, Billings, MT 59101 c/o AUSA Brendan McCarthy, or contact AUSA McCarthy by phone – 406-247-4656 or email – [email protected]. Individuals also my contact the FBI.
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Two Spartanburg Brothers Among Five Men Sentenced in Federal Court for Roles in Methamphetamine, Marijuana, and Money Laundering ConspiraciesRead the Press Release
Anderson, South Carolina – United States Attorney Sherri A. Lydon announced today that brothers Soeuth Ath, 46, and Sean Ath, 54, both of Spartanburg, South Carolina, were among five men sentenced to federal prison for their roles in bi-coastal methamphetamine, marijuana, and money laundering conspiracies.
United States District Judge Timothy M. Cain sentenced Soeuth Ath to life in federal prison and Sean Ath to 151 months in federal prison, followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The Ath brothers were convicted by a federal jury after a week-long trial in January. Evidence showed that in 2016, a number of mail packages containing methamphetamine shipped from California to Spartanburg were intercepted by the United States Postal Inspector. A law enforcement investigation revealed that a group of individuals in the Spartanburg area with ties to Fresno and Bakersfield, California, were obtaining large amounts of methamphetamine and marijuana from sources in California via the U.S. Mail. During the course of the conspiracy, the defendants received over 22 kilograms of high purity methamphetamine and at least 15 kilograms of marijuana for distribution in the Upstate of South Carolina. From April 2016 through January 2017, the defendants laundered at least $196,500 in drug trafficking proceeds from South Carolina to California.
Five additional co-conspirators pled guilty to federal drug and money laundering charges. Virig Chheng, 30, of Spartanburg, was sentenced to 328 months in federal prison, followed by five years of court-ordered supervision. Raymond Soeng, 33, of Boiling Springs, was sentenced to 46 months in federal prison, followed by three years of court-ordered supervision. Vilay Phabmisay, 25, of Bakersfield, California, was sentenced to 84 months in federal prison, followed by five years of court-ordered supervision. Two defendants, Anthony Pan, 23, of Bakersfield, and Junior Choeun, 24, of Spartanburg, await sentencing.
The convictions are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) Program. The OCDETF Program is a partnership between federal, state, and local law enforcement agencies. Its principal mission is to identify, disrupt, and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Federal Bureau of Investigation with the assistance and cooperation of the United States Postal Inspection Service, the Spartanburg City Police Department, and the Spartanburg County Sheriff’s Office. Assistant United States Attorneys Leesa Washington and Jeanne Howard of the Greenville office are prosecuting the case.
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Two Indicted for Arranging the Shipment of over 400 Pounds of Marijuana to Kansas City, MissouriRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Patrick Maldonado, 42, of Madera, and Elias Zambrano Jr., 43, of Fresno, charging them with conspiring to distribute and possess with intent to distribute cocaine and marijuana and being felons in possession of firearms, U.S. Attorney McGregor W. Scott announced. Maldonado is also charged with possessing cocaine with the intent to distribute.
According to court documents, Maldonado and Zambrano coordinated the shipment of over 400 pounds of marijuana to Kansas City, Missouri. Following the seizure of one load in Kansas City and a second in Arizona, agents executed search warrants at Maldonado’s residence in Madera and Zambrano’s residence in Fresno. At Maldonado’s residence, agents found four kilograms of cocaine, a firearm, and $45,281 in cash. Processed marijuana was located throughout Maldonado’s residence. At Zambrano’s residence, agents found two loaded firearms and packaged bags of processed marijuana. Because Maldonado and Zambrano were previously convicted of felony offenses, they are prohibited from possessing firearms.
This case was the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force consisting of agents from the Drug Enforcement Administration, Homeland Security Investigations, Federal Bureau of Investigation, the Sheriff’s Offices of Tulare, Kings, and Fresno Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted of the drug conspiracy, Maldonado and Zambrano face a maximum statutory penalty of 40 years in prison, a minimum statutory penalty of five years in prison, and up to a $5 million fine. Maldonado faces the same penalty if convicted of possessing cocaine with the intent to distribute. If convicted of being a felon in possession of firearms, both defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.