Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 January 2019
Woman Indicted and Arrested for ExtortionRead the Press Release
SAN JUAN, Puerto Rico –Today, a federal Grand Jury returned a two-count indictment charging Celinés Rivera-Díaz with conspiracy to interfere with commerce by extortion and extortion. Defendant Rivera-Diaz was arrested on December 19, 2018, and is currently detained pending trial.
Pursuant to the Affidavit in support of the criminal Complaint filed on December 21, 2018, on December 19, 2018, an unknown individual (“Suspect One”) contacted over the phone a 62-year-old female (the “Victim”), and informed her that he abducted her adult son. Suspect One told the Victim that her son owed him $4,000, and was not responding. Suspect One demanded that the Victim pay him $4,000 and threatened that, unless she paid that amount, her son would be harmed. More specifically, Suspect One threatened that the Victim’s son “se iba a joder.” The Victim responded that she only had $1,600 in the bank and could only pay $1,000. Suspect One then instructed the Victim that a woman would drive to the Victim’s home, pick up the Victim, and drive the Victim to the bank so the Victim could withdraw the money and pay the ransom. The Victim acquiesced to Suspect One’s demands.
Later that day, a woman, later identified as defendant Celinés Rivera Díaz (“Rivera-Díaz”), drove to Victim One’s house, picked her up and drove her to a Banco Popular de Puerto Rico branch located in Humacao, Puerto Rico. During the drive to the bank, defendant Rivera-Díaz and the Victim maintained telephone communications with Rivera-Díaz’s coconspirators. Upon arriving at the bank, the Victim entered the bank on foot while the defendant remained outside. Once inside the bank, the Victim informed bank employees that she was being extorted. Bank employees called Puerto Rico Police Department (PRPD) agents, who quickly arrived at the scene. PRPD agents later arrested defendant Celinés Rivera-Díaz. Further investigation revealed that the Victim’s son was not abducted.
“We will not stand by as criminals attempt to rip-off our elders by force, violence, and fear. These con-artists who trick victims into sending money before they realize it’s a scam, by playing into their emotions, should know that they will be prosecuted to the full extent of the law,” stated U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The investigation continues as to other coconspirators.”
Assistant U.S. Attorney Juan C. Reyes-Ramos is in charge of the prosecution of the case and Homeland Security Investigations (HSI) is in charge of the investigation. If convicted the defendant could face up to 20 years of imprisonment on each count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
# # #
U.S. Department of State, Diplomatic Security Service, San Juan Resident Office Arrests on Passport Fraud Charges an Individual Wanted for Capital Murder in the State of AlabamaRead the Press Release
SAN JUAN, Puerto Rico –United States Magistrate Judge Bruce McGiverin authorized a criminal complaint against an individual purporting to be Stephen Williamson Varner, charging him with willfully and knowingly making false statements in a U.S. Passport Renewal Application.
According to the criminal complaint, on December 7, 2018, this same individual executed in San Juan a U.S. Passport Renewal Application under the Stephen Williamson Varner identity. Due to inconsistencies and fraud indicators in the passport renewal form, including a finding of a death record for a Stephen Williamson Varner, born and deceased at the early age of 22 months in the State of Alabama; the State Department’s Bureau of Consular Affairs referred it on December 31st, 2018 to the Diplomatic Security Service (DSS) for investigation. During the course of the investigation conducted by DSS, with the collaboration of the U.S. Marshals Service, the U.S. Postal Inspection Service and the U.S. Department of Homeland Security, Office of the Inspector General, agents confirmed that the individual purporting to be Stephen Williamson Varner was in fact David Anthony Pike, a fugitive wanted since 1985 in Chambers County, State of Alabama, on capital murder charges (a death penalty eligible offense).
“The Diplomatic Security Service not only has a statutory mandate to investigate passport and visa fraud cases, but is also firmly committed to work with the U.S. Attorney’s Office and other federal, state and local law enforcement agencies to bring fugitives to justice,” said Norman Ramirez-Seda, Resident Agent in Charge of the DSS office in San Juan. “In this case, an individual evading the authorities in Chambers County for over thirty years, moved to Puerto Rico where he committed fraudulent activities against multiple government agencies, including the U.S. Department of State, the U.S. Postal Service and the Federal Emergency Management Agency. My office is already working with the U.S. Marshals Service and Chambers County authorities to have David Anthony Pike eventually removed to the State of Alabama, where he will need to respond to the capital murder charges pressed against him in 1985. I thank our special agents and investigative specialists, as well as the agents and inspectors with our sister federal law enforcement organizations who completed, with exceptional professionalism and dedication, this case in sixteen days.”
“The teamwork between DSS and the federal law enforcement agencies which collaborated in this investigation, led to the arrest of this dangerous fugitive. We commend the work and dedication of all the agents who turned this passport fraud investigation into the capture of someone who had been running from justice for over 30 years,” said U.S. Attorney Rosa E. Rodríguez-Vélez.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
# # #
Texas man indicted for having one kilogram of fentanyl, three kilograms of heroin and three kilograms of cocaineRead the Press Release
A Texas man was indicted for having one kilogram of fentanyl, three kilograms of heroin and three kilograms of cocaine.
Roland Herrera, 52, of San Antonio, was indicted on one count of possession with intent to distribute fentanyl, heroin and cocaine and one count of interstate travel in aid of racketeering.
Herrera was arrested on December 29 following a traffic stop in Westlake and found to have more than 15 pounds of drugs hidden in his vehicle, according to court documents.
“Fentanyl, heroin and cocaine have been the source of a long-running mass-casualty event here in Ohio,” U.S. Attorney Justin Herdman said. “This seizure undoubtedly saved lives in our community, and law enforcement will continue prosecuting those who traffic in deadly narcotics while working with other partners to make help available for people who want it.”
“HSI and its Ohio law enforcement partners will continue to vigorously identify, disrupt and dismantle these drug traffickers organizations that exploit and continue to cause great harm to members of the community,” said Steve Francis, Special Agent in Charge of Homeland Security Investigation’s Detroit office, which includes Ohio. “The arrest of Mr. Herrera is another example a drug trafficker in possession of a large amount of narcotics that would have likely caused a significant number of overdoses and deaths.”
“The indictment of this individual is another fine example of the results that come from a collaborative policing effort,” said Cleveland Police Chief Calvin D. Williams. “The hard work put forth by the officers and investigators in this case prevented a significant amount of dangerous narcotics from being distributed on our streets. This is the kind of work that saves lives.”
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being investigated by Homeland Security Investigations, the Cleveland Division of Police and the Westlake Police Department. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
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.
Statement from United States Attorney Jay E. Town on this Morning’s Shooting of Two Birmingham Police OfficersRead the Press Release
“This tragedy is a heartbreaking reminder of the dangers all law enforcement face while we sleep. While they keep us safe. While they do the job. Our thoughts and prayers are with the families of the officers, the officer still fighting for life, and the fallen officer whose end of watch came much too soon.”
Seven people indicted for firearms crimesRead the Press Release
Seven people were indicted in federal court for firearms violations.
They are: Justin A. McGeever, aka Jonor A. McGree, 30, of Cleveland Heights; Gabriel T. Williams, 35, of Cleveland; Marcus L. Lockett, 29, of Akron; Melvin Wright, 37, of Akron; Deshaun A. Jones, 39, of Columbus; Fuquawn Baldwin, 26, of Akron, and Rowland L. Babb, 27, of Canton.
According to the indictments:
McGeever possessed ammunition and a .38-caliber pistol in 2016 while subject to a protection order.
Williams possessed a sawed-off 20-gauge shotgun in 2016.
Lockett possessed a Springfield Arms 9 mm pistol and ammunition, despite a previous conviction for felonious assault with a firearms specification. He also possessed at least 50 grams of methamphetamine and was using the firearm in relation to drug trafficking, according to the indictment.
Wright possessed a .38-caliber revolver and ammunition on September 8, 2018, despite a previous conviction for felonious assault.
Jones possessed a stolen .45-caliber pistol and ammunition on October 1, 2018, despite a previous conviction for being a felon in possession of a firearm.
Baldwin possessed a Ruger 9 mm pistol and ammunition on November 24, 2018, despite a previous conviction for robbery.
Babb possessed a Glock 9 mm pistol and ammunition on November 24, 2018, despite a previous conviction for felonious assault.
This case is part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Canton FBI Safe Streets Task Force, the Canton Police Department, the Akron Police Department,
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.
Romanian Man Sentenced for ATM Scam and ID TheftRead the Press Release
RICHMOND, Va. – A Romanian man was sentenced today to 65 months in prison for conspiracy to commit bank fraud and aggravated identity theft.
According to court documents, Viorel Naboiu, aka “Luigi Latorza,” 44, originally from Craiova, Romania, conspired with several other individuals, including co-defendant Florin Bersanu, to steal money from banks and credit unions in multiple states through an ATM-skimming operation. Naboiu and his co-conspirators manufactured and then inserted small skimming devices deep into the card reader slots of dozens of bank branch ATMs. These skimming devices copied the information on the magnetic stripe of the bank customer’s debit cards when customers used their cards to conduct ATM transactions. The conspirators also mounted pinhole cameras, hidden behind plastic flashing designed to blend into the ATMs’ housing, which surreptitiously recorded the finger-taps of PINs used by bank customers during their transactions. Naboiu and his cohorts skimmed card information and PINS from over 1,300 bank customers. At sentencing he was held accountable for over $150,000 in actual losses and over $646,000 in intended losses.
Naboiu’s co-defendant, Bersanu, was sentenced on Dec. 6, 2018, to 57 months in prison.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and MaryJo Thomas, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Brian R. Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-75.
Prominent Global Law Firm Agrees to Register as an Agent of a Foreign PrincipalRead the Press Release
Skadden, Arps, Slate, Meagher & Flom LLP has entered into a settlement agreement with the Department of Justice, resolving its liability for violations of the Foreign Agents Registration Act (FARA), announced Assistant Attorney General for National Security John Demers.
According to the Agreement, Skadden acted as an agent of the Government of Ukraine within the meaning of FARA, 22 U.S.C. § 611 et seq., by contributing to a public relations campaign directed at select members of the U.S. news media in 2012. Moreover, in 2012 and 2013, Skadden received multiple inquiries from the Department’s FARA Registration Unit about its role in that campaign. A partner then at Skadden made false and misleading statements to the FARA Unit, which led it to conclude in 2013 that the firm was not obligated to register under FARA. The facts, when uncovered, showed that Skadden was indeed required to register in 2012, and, under the Agreement, it will do so retroactively.
“Law firms should handle inquiries from the federal government the same way they would counsel their clients to: with appropriate due diligence to ensure the honesty of their response,” said Assistant Attorney General Demers. “Skadden’s failure to do so, and reliance on only the representations of the lead partner on the matter, hid from the public that its report was part of a Ukrainian foreign influence campaign. FARA protects the integrity of the American political system by enabling Americans to consider the identity of the speaker as they evaluate the substance of the speech.” Assistant Attorney General Demers added, “The Department appreciates Skadden’s more recent extensive cooperation in the investigation of this matter, which facilitated its resolution.”
In addition to agreeing to register under FARA, Skadden has agreed to pay the U.S. Treasury more than $4.6 million, which it received in fees and expenses for its work with Ukraine, and will ensure that it has formal, robust procedures for responding to inquiries concerning its conduct from any federal government entity and ensuring FARA compliance as to its engagements on behalf of foreign clients.
The Agreement acknowledges that Skadden has already taken substantial steps to comply with its terms, and so long as the firm continues to comply with it, the Department will not undertake any action against the firm relating to any of the conduct described in the Agreement and its Appendix.
Background of the Investigation
According to the Agreement, in the spring of 2012, Ukraine, Ministry of Justice (MOJ), with the assistance of Paul Manafort, hired Skadden to write a report (Report) on the evidence and procedures used during the 2011 prosecution and trial of former Prime Minister Yulia Tymoshenko and to address various questions regarding its fairness. Skadden also agreed to advise Ukraine in connection with a second, potential future prosecution of Tymoshenko. Although the engagement letter between Skadden and the MOJ stated that Skadden would be paid its customary fees and expenses, the contract Skadden signed with the MOJ, and which the MOJ made public, stated that the law firm would be paid only 95,000 Ukrainian hryvynas, which is approximately $12,000. Skadden understood that a Ukrainian business person would be paying its fees, which the law firm received from a Cypriot bank account of an entity named Black Sea View Ltd., which Manafort controlled. Skadden was eventually paid $4,657,568.91 for its work on behalf of the MOJ. The arrangements with the Ukrainian business person, the amounts paid, and advice on a second criminal prosecution of Tymoshenko were not disclosed in connection with the issuance of the Report.
Soon after it began work for the MOJ, Skadden became aware that Ukraine intended to use the Report as part of a public relations campaign to influence U.S. policy and public opinion toward Ukraine. After that point, Skadden’s lead partner for the Ukraine engagement took steps to advance the public relations campaign. In the fall of 2012, shortly after a meeting in New York with Manafort and a representative from Ukraine’s public relations firm to finalize the Report and discuss the media strategy for its rollout, the lead partner contacted a journalist at a national newspaper and asked whether the journalist would take a call from a lobbyist for Ukraine about the Report in advance of its release. Then, shortly before Ukraine released the report on December 13, 2012, the lead partner again contacted the journalist and arranged for delivery of the Report to the journalist, both via email and in person. On December 12, 2012, the lead partner spoke with the national newspaper about the Report and provided a quotation for attribution.
The lead partner’s pre-release outreach to the journalist was consistent with Ukraine’s media strategy for the Report, which including leaking the Report prior to its official release so as to “effectively set the agenda for subsequent coverage.”
FARA requires those in the U.S. who engage in political activities on behalf of foreign principals, which include foreign governments, to make a variety of written public disclosures to the Department of Justice. Based on its awareness of and involvement in Ukraine’s public relations campaign, Skadden had an obligation to register with the Department of Justice under FARA, but it failed to do so. If Skadden had registered, it would have had to disclose, among other things, the full amount it was being paid, the source of those payments, and the full scope of the work it was doing on behalf of the MOJ.
Five days after news articles appeared about the Report, the FARA Unit sent Skadden a letter, seeking information about its activities on behalf of Ukraine in order to assist the FARA Unit in determining whether Skadden had a registration obligation. This was the first of several requests for information the FARA Unit made to Skadden.
In both written and oral responses to the FARA Unit between February 6, 2013, and October 11, 2013, Skadden, in reliance on the lead partner, made false and misleading statements including, among other things, that Skadden provided a copy of the Report only in response to requests from the media and spoke to the media to correct misinformation about the report that the media was already reporting. The firm also submitted documents to the FARA unit that were false.
The FARA Unit made a determination that Skadden did not have a registration obligation in connection with its work for Ukraine, and it based that conclusion on the false and misleading information Skadden had provided. Before making its representations to the FARA Unit, Skadden had conducted no investigation to confirm the information the lead partner was providing to the FARA Unit and to other partners at the firm.
The investigation and negotiation of the Agreement was handled by Jason B.A. McCullough, a Trial Attorney in the Counterintelligence and Export Control Section, which includes the FARA Registration Unit, with assistance from the Federal Bureau of Investigation’s Counterintelligence Division.
Peoria Bomb Squad Member Pleads Guilty to RICO Conspiracy; Gang Violence, Attempted Murder, Gun and Drug ChargesRead the Press Release
PEORIA, Ill. – A Peoria, Ill., man, Terry Moss, a member of the Bomb Squad street gang, today pleaded guilty to conspiring with other alleged gang members as an organized criminal enterprise to commit violent crimes. In addition, Moss, 23, aka “Lil Man,” admitted to attempted murder in aid of racketeering; use of a firearm in relation to a violent crime; and possession and distribution of crack cocaine. Moss appeared in federal court before Chief U.S. District Judge James E. Shadid. Sentencing for Moss is scheduled on Aug. 8, 2019.
Moss is one of the 15 men charged in June 2018 with federal racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Trial for the remaining 14 defendants remains scheduled on June 10, 2019, before Judge Shadid. These defendants are presumed innocent unless proven guilty.
Under the RICO statute, a crime which carries a statutory penalty up to life, the defendants are charged with working as an organized criminal enterprise to achieve its objectives, including activities that affect interstate commerce. From 2013 to June 2018, members and associates of Bomb Squad allegedly engaged in acts of violence, including murder, attempted murder, assault with a dangerous weapon, arson, and drug trafficking. The enterprise used violence to protect itself, its members and associates from rival gangs and to protect the standing and reputation of Bomb Squad.
During his appearance in court today, Moss admitted that he was first exposed to Bomb Squad when he was approximately 13 years old. As a member of the Bomb Squad enterprise, on multiple occasions, Moss admitted he shot at rival gang members in Bomb Squad territory, including on June 27, 2017, when a bullet struck a rival gang member in the foot. Moss admitted he sold and helped others sell narcotics, including crack cocaine, and that he possessed guns, held guns for others and loaned guns to other gang members or associates.
At sentencing, Moss faces potential statutory penalties of up to life for the offense of RICO conspiracy; for violent crime in aid of racketeering (VICAR) attempted murder, the statutory penalty is up to 20 years in prison. Use of a firearm in a crime of violence carries a mandatory minimum penalty of 10 years in prison to be served consecutive to any other term of imprisonment. For possession with intent to distribute and distribution of crack cocaine, the maximum penalty is up to 30 years in prison.
The charges are part of the Department of Justice’s Project Safe Neighborhoods violent crime reduction strategy and an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.
U.S. Attorney John Milhiser reinforced the office’s commitment to working with partner law enforcement agencies to use and coordinate all necessary resources to combat violence in our communities. “Working with our state and local partners, we will target those individuals who choose to commit violent crime,” said U.S. Attorney Milhiser.
Law enforcement agencies conducting the investigation include ATF, the Peoria Police Department, and DEA, in coordination with the Office of Peoria County State’s Attorney Jerry Brady. Assistant U.S. Attorney Ron Hanna is coordinating the prosecution on behalf of the government in the Peoria Division, Central District of Illinois.
Ohio man accused of plotting July 4th attack in Cleveland indicted for attempting to provide support to al QaedaRead the Press Release
A Maple Heights man was indicted on one count of attempting to provide material support to al Qaeda.
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 49, has been in custody since July, when he was arrested after allegedly planning a terrorist attack in Cleveland.
“Protecting our citizens and our nation remains the Justice Department’s top priority,” U.S. Attorney Justin E. Herdman said. “This defendant plotted and scouted locations in downtown Cleveland for an attack on July 4th, when he knew it would be packed with people celebrating our nation’s birthday. We will continue to do all we can to identify, arrest and prosecute those threats while working to keep our communities safe and secure.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and was planning to conduct an attack in Cleveland on Independence Day, the very day we celebrate the freedoms we have in this country,” said FBI Acting Special Agent in Charge Robert Hughes. “The FBI commends the public for reporting individuals that espouse their radical beliefs and/or engage in behavior that threaten the lives of our military personnel and community.”
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts and the UCE met in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
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.
NDTX Roundup - 1/17/2019Read the Press Release
PLEA – Roberto Rodriguez Salinas
On Jan. 17, Robert Rodriguez Salinas, 38, of Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty to conspiracy to possess 500 grams or more of a mixture or substance containing a detectable amount of cocaine and conspiracy to launder money. Plea documents reveal Mr. Salinas was arrested with approximately 8 kilograms of cocaine, $115,913.00 in United States Currency, and a .380 Bersa Firearm. Mr. Salinas admitted he was conspiring with others to distribute the cocaine he had in his possession and that the currency was drug proceeds which he was going to send to an individual located in Mexico. Rodriguez Salinas agreed to forfeit the currency and the firearm. The case was investigated by the Drug Enforcement Administration, the Dallas Police Department, and the Dallas County Sheriff’s Department.SENTENCING – LaPorshya Polley
On Jan. 16, Chief Judge Barbara Lynn sentenced LaPorshya Polley, convicted of firearms offenses last April, to 4 years in federal prison, followed by 2 years of supervised release. Last year, a jury found her and her codefendant, Darius Fields, guilty of straw purchasing. Mr. Fields -- who was at the time a person of interest in the kidnapping and eventual murder of 13-year-old Shavon Randle -- is set to be sentenced in April. The FBI and Irving Police Department conducted the investigation.PLEA – Corry Jessie
On Oct. 16, Corry Jessie, 26, of Dallas pleaded guilty to two counts of felon in possession of a firearm. Jessie was prosecuted in connection with the Project Safe Neighborhoods program, an initiative bringing together federal and local law enforcement to stem violent crime in hard-hit communities. He now faces up to 20 years in prison and a fine of up to $500,000. The FBI investigated.SENTENCING – Jose Benavidez III
On Jan. 14, Judge Sam A. Lindsay sentenced 29-year-old Jose Benavidez, III, of Dallas, to 13 years in federal prison for conspiring to possess with intent to distribute 50 grams or more of methamphetamine between February 2017 and October 2017. Plea documents reveal that, on multiple occasions, Jose Benavidez, III sold methamphetamine from an address located on Duleth Street in Dallas. Lab reports revealed the methamphetamine ranged in purity from 94% to 100%. During one of the methamphetamine transactions Jose Benavidez, III opened the door of his residence and discharged a firearm. The Texas Department of Public Safety investigated.SENTENCING – Roger Zamora, 41
On Jan. 14, Roger Zamora was sentenced to 8 years in federal prison for his role in a RICO conspiracy. In March 2018, Zamora pled guilty to participation in a transnational criminal enterprise, comprised mostly of Colombian nationals or individuals of Colombian descent, whose members targeted and robbed traveling diamond and jewelry salesmen across the United States. Zamora participated in six armed robberies of traveling diamond and jewelry salesmen over a four month period, between 2015 and 2016, in Texas, Florida, Indiana, and Virginia.NOTE: Due the the lapse in appropraitions, the U.S. Attorney's Office in the Northern District of Texas will not be issuing press releases or distributing news roundups via email. We will, however, post roundups online.
Multiple Removed Aliens Plead Guilty to Immigration CrimesRead the Press Release
CHARLESTON, W.Va. – In three separate cases, two Mexican Nationals and a Guatamalan National entered guilty pleas to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“Multiple defendants. Multiple prior deportations. Repeat offenders. These are three of many, many similar cases that this district has prosecuted in the past few months,” said United States Attorney Mike Stuart. “We seek to prosecute every reentry case involving someone who is here illegally, repeatedly, against the laws of the United States. The number of these cases is growing in this district. This is an area of real concern to ensure the safety of the citizens.”
Mexican National Sebastian Gonzalez-Cid, 26, is scheduled to be sentenced on February 26, 2019, and is also subject to deportation proceedings. On December 6, 2018, Gonzalez-Cid was found in a Huntington, West Virginia apartment complex by members of ICE after receiving a tip that a person was in the country illegally and living in Huntington. Agents approached Gonzalez-Cid, who confirmed his name, offered a Mexican identification, and admitted he was not in the United States legally. Agents immediately confirmed that Gonzalez-Cid was not in the United States legally, and took him into federal custody. Gonzalez-Cid’s fingerprints matched him to a 2017 prior encounter in South Charleston, West Virginia where he was found in West Virginia and deported from the United States. Gonzalez-Cid reentered the United States without obtaining legal permission to do so.
Guatamalan National Marcus Tojin Tiu, 25, is scheduled to be sentenced on February 26, 2019. Tojin Tiu is also subject to deportation proceedings. On October 30, 2019, Tojin Tiu was found in Barboursville, West Virginia by members of ICE after receiving a tip that a person was in the country illegally and working at a restaurant in Barboursville, West Virginia. Agents approached Tojin Tiu, who immediately admitted he was not in the United States legally and offered them a Guatemalan identification. Agents promptly confirmed that Tojin Tiu was not in the United States legally, and took him into federal custody. Tojin Tiu’s fingerprints matched him to a 2012 prior encounter in Harlingen, Texas where he was found in Texas and deported from the United States. Tojin Tiu reentered the United States without obtaining legal permission to do so. Assistant United States Attorney Erik S. Goes is responsible for the prosecutions. United States District Judge Robert C. Chambers presided over the hearings.
Gilberto Espino-Velasquez, 41, faces up to two years of in prison when he is sentenced on March 7, 2019. Espino-Velasquez is also subject to deportation proceedings at the conclusion of any sentence. On November 8, 2018, Espino-Velasquez was found in Nitro, Kanawha County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working on a construction crew in the area. Pursuant to this investigation, ICE agents approached Espino-Velasquez and he surrendered to them. Agents immediately confirmed that Espino-Velasquez was not in the United States legally, and took him into federal custody. Espino-Velasquez’s fingerprints matched him to three prior encounters in 2003 where he was found in the United States illegally and deported from the United States to Mexico. He was also previously convicted of illegally entering the United States in September 8, 2003 in the Western District of Texas. Espino-Velasquez again illegally reentered the United States prior to his capture in 2018. Espino-Velasquez had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Espino-Velasquez also admitted to ICE agents that he was a Mexican citizen. Assistant United States Attorney Erik S. Goes is handling the prosecution. United States District Judge John T. Copenhaver Jr. presided over the hearing.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Monongalia County man admits to lying to federal agentRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darus Zehrbach, of Westover, West Virginia, has admitted to making a false statement, United States Attorney Bill Powell announced.
Zehrbach, age 72, pled guilty to one count of “False Statement to Federal Agent.” Zehrbach admitted to sending a letter to an agent of the United States Department of Commerce stating that a shipment he sent to Iran had originated in China when in fact that shipment originated in the United States. The crime took place in Monongalia County in June of 2018.
Zehrbach faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The U.S. Department of Commerce Office of Export Enforcement investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Indicted for Aiming A Laser Pointer at A Coast Guard HelicopterRead the Press Release
SAN JUAN, P.R. – Yesterday, a federal grand jury returned a one-count indictment against Juan L. Pantoja De Jesus, charging him with aiming the beam of a laser pointer at a Coast Guard helicopter, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The case is being investigated by Coast Guard Investigative Services (CGIS).
On or about June 12, 2018, Pantoja De Jesus knowingly aimed the beam of a laser pointer at a Coast Guard helicopter, and at the flight path of such aircraft, which was an aircraft in the special aircraft jurisdiction of the United States, in violation of Title 18, United States Code, Section 39A.
“Aiming laser pointers at aircraft while in flight is a serious safety threat. It may create a visual distraction or even damage a pilot’s eyes, and may force a pilot to relinquish control of the aircraft to a co-pilot. In cases of law enforcement aircraft, responses to emergency or crime scenes may have to be terminated because of a laser interference. The public should be aware that there are severe consequences to these actions,” said U.S. Attorney Rosa E. Rodriguez-Velez.
Assistant U.S. Attorney Edward G. Veronda is in charge of the prosecution of the case. If convicted, the defendant faces imprisonment of up to 5 years and a fine. The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
# # #Macy Man Sentenced to 90 Months for Assault and Domestic ViolenceRead the Press Release
United States Attorney Joe Kelly announced that Roman Harlan, 34, of Macy, Nebraska, was sentenced in federal court in Omaha, Nebraska, for assault with a dangerous weapon; strangling an intimate partner; and domestic abuse by a habitual offender. Chief United States District Court Judge John M. Gerrard sentenced Harlan to a total sentence of 90 months. There is no parole in the federal system. After his release from prison, Harlan will begin a three-year term of supervised release.
On September 18, 2018 a jury found Harlan guilty of assault, strangulation and domestic violence-related charges. The evidence at trial established that on March 17, 2018, Harlan returned to his home in Macy. He punched his victim, T.M., in the face, held her down by pressing his knees into her shoulder and strangled her until she was unconscious. When T.M. regained consciousness, Harlan was holding two knives to her throat. He threatened T.M.’s life and that of her two-year-old child should she report the assault to the police. Harlan was found to be a habitual domestic offender. One of his earlier convictions was in federal court. He previously received a 51-month sentence for punching and kicking his wheelchair bound partner.
The federal government has jurisdiction over major crimes on the Omaha Indian Reservation involving a Native American. United States Attorney Joe Kelly credits the Federal Bureau of Investigation and Omaha Nation Law Enforcement Services for their response and investigation of this matter. Kelly noted that aggravated and domestic assaults are a priority and will be vigorously pursued by his office.
This case was investigated by the Federal Bureau of Investigation and Omaha Nation Law Enforcement Services.
Hastings Man Sentenced for Health Care FraudRead the Press Release
United States Attorney Joe Kelly and Nebraska Attorney General Doug Peterson announced today that Randy Kirby, 61, of Hastings, Nebraska, was sentenced January 17, 2019, to a year and a day in federal prison and ordered to pay restitution of more than $130,000 by Senior U.S. District Judge Richard Kopf in Lincoln, following Kirby’s plea to one count of Health Care Fraud. He will be on supervised release for three years following his prison term.
Kirby was formerly a mental health therapist in Hastings and operated a mental health practice called Transitions Counseling. Between September 2013 and September 2016, Kirby submitted false claims for reimbursement to Nebraska Medicaid for services that he could not show had occurred. Nebraska Medicaid paid Kirby $133,639.57 for those services. As a result, Kirby was indicted on nine counts of Health Care Fraud. He pleaded guilty to one count of Health Care Fraud in October 2018.
The matter was investigated by the Program Integrity Unit of Nebraska Medicaid and the Medicaid Fraud and Patient Abuse Unit of the Nebraska Attorney General’s Office, following a referral by Medicaid contractor Magellan Behavioral Health. Magellan was concerned about suspicious billings that were submitted by Kirby.
Former Crockett County 911 Director Sentenced to 57 Months for EmbezzlementRead the Press Release
Jackson, TN – On Monday, January 14, 2019, U.S. District Judge S. Thomas Anderson sentenced Brian Black, 42, of Dyersburg, Tennessee to 57 months in the Federal Bureau of Prisons for embezzlement. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentencing today.
According to information presented in court, Black embezzled at least $178,000 from the trust account of the Oleen H. Fewell Estate. Black was the Chancery Court appointed trustee for the trust, which had been set up by the will of Oleen Fewell for benefit of her daughter, Sharon Connor of Alamo, Tennessee. Instead of using the trust’s money for the benefit only of Sharon Connor, Black spent a large part of the trust’s funds for his own personal benefit. Among other things, Black wrote over $70,000 in trust checks directly to himself, spent almost $6,000 of trust money to take a vacation trip to Florida to attend the St. Louis Cardinals baseball team fantasy camp, and used over $12,000 of trust money to buy items for his own home in Dyersburg.
By the time United States Postal Inspectors learned of the fraud and began an investigation, Black had spent all of the money in the trust account. Black was the former 911 director for Crockett County.
U.S. Attorney D. Michael Dunavant said: "This office is committed to exposing and holding accountable any persons who use their position of trust and authority to prey upon innocent victims. Across the rural communities of the Western District of Tennessee, including Crockett County, we will always aggressively prosecute cases involving financial fraud and exploitation of the vulnerable or elderly. We believe that this sentence achieves justice for the victim’s estate in this case, and we commend the United States Postal Inspection Service for their outstanding investigation in this complex matter."
David M. McGinnis, the Inspector In Charge of the Charlotte Division of the United States Postal Inspection Service, stated "Protecting vulnerable victims is a top priority for the Postal Inspection Service. Postal Inspectors are committed to protecting the sanctity of the United States Mail and will hold those accountable that steal from innocent victims."
Black was convicted on June 15, 2018, after a two-week jury trial in Jackson. The United States is seeking a judgment against Black for restitution, and a subsequent hearing will be conducted to determine the exact amount and extent of criminal restitution to be paid by Black to the victim’s estate.
The United States Postal Inspection Service investigated the case. Assistant United States Attorney Tony Arvin prosecuted the case on behalf of the United States.
Floridian Sentenced to 9 Years in Prison for Distributing Multiple Drugs, Including Fentanyl and CarfentanilRead the Press Release
PITTSBURGH, PA. - A Florida resident has been sentenced in federal court to nine years in prison followed by four years of supervised release on his conviction of conspiracy to distribute 40 grams or more of fentanyl and a quantity of carfentanil, as well as distribution of quantities of methamphetamine, carfentanil, and ecstasy, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Cathy Bissoon imposed the sentence on Robert M. Gilner, aka Gman19635, 30, of St. Petersburg, Fla.
According to information presented to the court, Gilner conspired with others, in the Western District of Pennsylvania and elsewhere, to distribute 40 grams or more of fentanyl and a quantity of carfentanil. Additionally, on March 10, 2017, Gilner distributed a quantity of methamphetamine and, on March 22, 2017, he distributed a quantity of carfentanil and a quantity of ecstasy to the Western District of Pennsylvania..
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, United States Postal Inspection Service, and Homeland Security Investigations for the investigation leading to the successful prosecution of Gilner.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the January 2019 Federal Grand Jury.
The following individuals have been charged with violations of United States law in an indictment returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Brandon Dewayne Atnip. Carjacking; Carrying, Brandishing, and Using a Firearm During and in Relation to a Crime of Violence; Felon in Possession of Firearm and Ammunition. Atnip, 31, of Sulphur, is charged with unlawfully taking a 2001 Toyota Corolla and a 1999 GMC Sonoma by force, violence, and intimidation; using a firearm during and in relation to a crime of violence; and being a felon in possession of a firearm and ammunition, including a Kimber Manufacturing, Inc., .45 ACP caliber semi-automatic pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rogers County Sheriff’s Office, and the Craig County Sheriff’s Office are the investigative agencies.
Carlos Banegas. Felon in Possession of Firearm and Ammunition. Banegas, age unknown, of Tulsa, is charged with being a felon in possession of a firearm and ammunition, including a Jimenez Arms Inc., JA3850, .38 caliber pistol. The Federal Bureau of Investigation is the investigative agency.
Jeffrey Scott Cooper. Attempted Coercion and Enticement of a Minor. Cooper, 45, of Broken Arrow, is charged with knowingly attempting to persuade an individual under the age of 18 to engage in sexual activity. The Tulsa Police Department and the Tulsa County Sheriff’s Office are the investigative agencies.
Jesus Ponce Dominguez. Possession of Methamphetamine With Intent to Distribute; Possession of Heroin With Intent to Distribute; Maintaining a Drug-Involved Premises; Possession of Firearms in Furtherance of Drug Trafficking Crimes. Dominguez, 29, of Tulsa, is charged with possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine; possession with intent to distribute 100 grams or more of a mixture and substance containing heroin; maintaining a place to manufacture and distribute methamphetamine and heroin; and possessing firearms in furtherance of drug trafficking crimes, including a Glock 21, .45 caliber pistol and a Smith & Wesson M&P9, 9mm caliber pistol. The Drug Enforcement Administration, and the Tulsa Police Department are the investigative agencies.
Robert James Hogard and Iola Mae Canon. Carjacking; Carrying, Brandishing, and Using a Firearm During and in Relation to a Crime of Violence. Hogard, 26, of Tulsa, and Canon 29, of Midwest City, are charged with unlawfully taking a 2007 Chrysler Sebring by force, violence, and intimidation; and using a firearm during and in relation to a crime of violence. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigative agencies.
Dominic Larocca. Felon in Possession of Firearms and Ammunition. Larocca, 55, of Acworth, Georgia, is charged with being a felon in possession of firearms and ammunition, including a Springfield Firearm, .45 caliber pistol and a Glock Firearm, .40 caliber pistol. The Federal Bureau of Investigation and the Tulsa Police Department are the investigative agencies.
Meldonado Lavoise Lewis. Felon in Possession of Firearms and Ammunition. Lewis, 33, of Tulsa, is charged with being a felon in possession of firearms and ammunition, including a Taurus, .40 S&W caliber pistol, a Glock, .45 Auto caliber pistol, a Smith & Wesson, .22 LR caliber rifle, and a Norinco, 7.62x39mm caliber rifle. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa County Sheriff’s Office, and the Oklahoma Highway Patrol are the investigative agencies.
Sean Clarke McCain. Attempted Coercion and Enticement of a Minor. McCain, 31, of Tulsa, is charged with knowingly attempting to persuade an individual under the age of 18 to engage in sexual activity. The Tulsa Police Department and the Tulsa County Sheriff’s Office are the investigative agencies.
Javier Najera-Adame. Possession of an Unregistered Weapon Made From a Shotgun; Possession of Firearms and Ammunition by an Alien Illegally in the United States. Najera-Adame, 59, of Broken Arrow, is charged with possessing a weapon made from a shotgun, specifically a modified Ithaca Gun Co., 12 gauge shotgun, not registered to him in the National Firearms Registration and Transfer Record; possessing firearms and ammunition by an alien illegally in the United States, including a weapon made from an Ithaca Gun Co., 12 gauge shotgun and a German Sports Guns, .22 long rifle caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Broken Arrow Police Department are the investigative agencies
Gerardo Resendez-Rosales. Reentry of Removed Alien. Resendez-Rosales, 52, address unknown, is charged with having returned to the United States unlawfully after being deported on August 13, 2002 from Del Rio, Texas. The Immigration and Customs Enforcement’s Homeland Security Investigations is the investigative agency.
Devon Marie Rosen. Felon in Possession of Firearm and Ammunition. Rosen, 32, of Tulsa, is charged with being a felon in possession of a firearm and ammunition, including a Taurus .38 caliber pistol. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Tulsa Police Department are the investigative agencies.
Feliciano Saldana-Juarez. Possession of a Firearm After Conviction for a Misdemeanor Crime of Domestic Violence; Possession of a Firearm by an Alien Illegally in the United States; Reentry of Removed Alien. Saldana-Juarez, 53, of Tulsa, is charged with possessing a firearm after being convicted of a misdemeanor crime of assault and battery; being an alien illegally in the United States and knowingly possessing a firearm, including a Beretta US Corp., .22 caliber semi-automatic pistol; and having returned to the United States unlawfully after being deported on April 17, 2015 from Del Rio, Texas. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Immigration and Customs Enforcement’s Homeland Security Investigations, and the Sand Springs Police Department are the investigative agencies.
Hongjin Tan. Theft of Trade Secrets; Unauthorized Transmission of Trade Secrets; Unauthorized Possession of Trade Secrets. Tan, 35, of Bartlesville, is charged with stealing trade secrets pertaining to methods for developing a particular Research and Development Downstream Energy Market Product; and knowingly possessing, duplicating, and transmitting the trade secrets to persons other than the trade secrets’ owner without permission. The Federal Bureau of Investigation, and the Dallas Customs and Border Protection are the investigative agencies.
Cleveland man indicted for selling fentanyl and heroin last year that resulted in a fatal overdoseRead the Press Release
A Cleveland man was indicted in federal court for selling fentanyl and heroin last year that resulted in a fatal overdose.
Kadeem Davis, 28, was indicted on one count of distribution of fentanyl and heroin, with a sentencing enhancement allegeing the sale resulted in death, one count of use of a communication facility in furtherance of drug trafficking and one count of possession of fentanyl and heroin with intent to distribute.
Davis sold a mixture of fentanyl and heroin on August 21, 2018 that resulted in a fatal overdose, according to the indictment.
Davis on August 22, 2018 possessed fentanyl and heroin with the intent of distributing the drugs, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being investigated by the Lakewood Police Department and the Northern Ohio Law Enforcement Task Force (NOLETF). It is being prosecuted by Assistant U.S. Attorney Marisa T. Darden.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, and the police departments of Broadview Heights, Brooklyn Heights, Cleveland, Cleveland Heights, the Cuyahoga County Sheriff’s Office, Cuyahoga Metropolitan Housing Authority, Euclid, Independence, North Royalton, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
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.
Butler County Man Pleads Guilty to Possessing 500,000+ Images and Videos Depicting Child PornographyRead the Press Release
PITTSBURGH, PA - A resident of Mars, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
David McAnally, 63, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that McAnally unlawfully possessed, on September 4, 2015, in excess of 500,000 still images and videos in computer graphics files depicting minors engaging in sexually explicit conduct, some of whom were under the age of 12. McAnally received and distributed the images through Bit Torrent, a peer-to-peer Internet file-sharing network.
Judge Fischer scheduled sentencing for May 31, 2019, at 9:30 a.m. The law provides for a total sentence of 20 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. McAnally remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of McAnally.
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.justice.gov/psc.
Brian T. Moran Sworn in as U.S. Attorney for the Western District of WashingtonRead the Press Release
U.S. Attorney Brian T. Moran became the chief federal law enforcement officer in the Western District of Washington today, following his confirmation by the U.S. Senate. U.S. Attorney Moran will lead the office of 76 attorneys and 67 professional staff dedicated to prosecuting federal criminal cases, and serving as legal counsel for the U.S. government. Mr. Moran comes to the office with a deep record of public service at both the Washington State Attorney General’s Office and the Kitsap County Prosecuting Attorney’s Office.
“I'm truly humbled and honored to lead this office of dedicated professionals,” U.S. Attorney Moran said. “I am pleased to return to public service in an office whose sole mission is to serve the citizens of the Western District of Washington.
I also want to thank Annette Hayes for serving in the interim as U.S. Attorney until her successor could be confirmed. Annette has ensured that the important work of the office continued seamlessly and she has been an invaluable resource to me as I transition into office.”
U.S. Attorney Moran previously served as Chief Deputy Attorney General for the Washington State Attorney General, managing more than 500 attorneys and 27 legal divisions. In that role, he played a significant role in shaping legal strategy in areas such as consumer protection, privacy and data breach investigations. Mr. Moran was a key partner and legal advisor for state and local law enforcement. Prior to his selection as the Chief Deputy, Mr. Moran served as the Chief Criminal Prosecutor for the Washington State Attorney General’s Office. As Chief Criminal Prosecutor, he and his staff assisted Washington’s 39 county prosecuting attorneys’ offices, pursuing criminal cases and civil commitment of sexually violent predators.
Prior to his work with the Washington State Attorney General, Mr. Moran served as a Senior Deputy Prosecutor with the Kitsap County Prosecutor’s Office. His extensive trial experience includes prosecuting numerous high profile murder cases, white-collar fraud cases and the prosecution of environmental crimes.
U.S. Attorney Moran earned his law degree in 1987 from the University of Puget Sound (now Seattle University Law School). He is a graduate of Middlebury College.
16 January 2019
U.S. Attorney's Office partnering with community organizations to provide active shooter and hate crimes trainingRead the Press Release
You are invited to
SECURE AND SAFE: AN EVENING OF PREPARATION
Concrete Ways to Help Family, Employees and Houses of Worship
Active Shooter Training
Hate Crime Information
Security Best Practices
Co-Sponsored by ADL, U.S. Attorney's Office, FBI, and Jewish Federation of Cleveland
TUESDAY, JANUARY 29, 2019
7:00 pm
STONEHILL AUDITORIUM
MANDEL JEWISH COMMUNITY CENTER
26001 S.Woodland Rd
Beachwood,OH 44122
Free and open to all faiths and denominations.
For security purposes, please RSVP to [email protected].
Any questions may be directed to ADL staff at the email address above.
U.S. Attorney Annette L. Hayes to Step DownRead the Press Release
U.S. Attorney Annette L. Hayes announced that she is stepping down from the U.S. Attorney post on January 17, 2019, when Brian T. Moran is sworn in as the Senate confirmed, politically appointed U.S. Attorney. U.S. Attorney Hayes became Acting U.S. Attorney on October 1, 2014. She was subsequently appointed by Attorney General Eric Holder, and then the U.S. District Court for the Western District of Washington to serve on an interim basis as U.S. Attorney until a presidentially appointed U.S. Attorney was confirmed by the Senate.
“As my tenure as U.S. Attorney comes to a close, I want to reiterate what an honor it has been to lead an office of dedicated public servants focused on seeking justice and protecting the public,” said U.S. Attorney Annette L. Hayes. “Whether it was dismantling complex drug trafficking organizations, taking dangerous guns off our streets, bringing cyber criminals to justice, protecting civil rights, or a host of other impactful work, this office has worked tirelessly with our federal, state, local and tribal law enforcement partners to protect our Western Washington communities, and the nation as a whole. I am pleased to turn over the helm of the office to its next leader, Brian T. Moran.”
Under U.S. Attorney Hayes’s leadership, the office successfully prosecuted multiple international cyber intrusion cases including obtaining the conviction at trial of Russian hacker Roman Seleznev. The office also prosecuted public corruption cases including that of an IRS agent soliciting bribes from a marijuana business owner, and the fraud case against former state Auditor Troy Kelley. The office expanded its work in Indian Country, using new legal tools to prosecute habitual domestic abusers and increasing resources to combat the opioid epidemic. The office also continued to grow its efforts to enforce civil rights laws and provide alternative paths for protecting public safety, including supporting district-wide prisoner reentry efforts and our innovative federal drug court. In addition, as U.S. Attorney, Hayes worked closely with state and local counterparts to secure funding for programs to take guns out of the hands of dangerous felons, and combat violent gangs and drug trafficking organizations.
During her tenure, U.S. Attorney Hayes also was a member of several Attorney General Advisory Subcommittees focused on addressing issues of concern to the Department as a whole and the U.S. Attorney community in particular. From 2014 through early 2017, she was one of the co-chairs of the Attorney General’s Advisory Committee Working Group on Marijuana. In addition to other assignments, throughout her tenure as U.S. Attorney, she was a member of the Attorney General’s Advisory Committee Native American Issues Subcommittee, Border and Immigration Subcommittee, and Cyber and Intellectual Property Subcommittee.
Annette L. Hayes joined the U.S. Attorney’s Office in 1997 as an Assistant United States Attorney in the Criminal Division. She prosecuted a range of drug cases including large-scale, international trafficking and cartel related cases. In 2002, she became the Deputy Supervisor of the Complex Crimes Unit where she prosecuted cyber hacking and intellectual property cases while working with law enforcement on outreach to the private sector. In 2005, she became one of the supervisors of the General Crimes Unit where she worked closely with, and trained many new attorneys on a range of federal crimes including child exploitation, drug, fraud, identity theft, immigration and violent crimes cases. In 2010, Ms. Hayes became the First Assistant U.S. Attorney serving as second-in-command in the U.S. Attorney’s Office responsible for – among other things – overseeing and managing the criminal, civil, appellate and administrative divisions in the office.
Prior to joining the U.S. Attorney’s Office, Ms. Hayes spent her first six years as an attorney handling a variety of civil litigation matters at international law firms in Seattle, and Washington, D.C.
Ms. Hayes is a graduate of Cornell Law School and Williams College.
Two Men Charged in Fentanyl Overdose DeathRead the Press Release
Assistant U.S. Attorneys Mikaela Weber (619) 546-9734 or Stephen Wong (619) 546-9464
NEWS RELEASE SUMMARY – January 16, 2019
SAN DIEGO – Earlier this week, federal prosecutors charged two men with Distribution of Fentanyl Resulting in Death. The charges arise out of a 41 year-old woman’s fatal overdose from fentanyl-laced heroin on October 24, 2018.
As detailed in the criminal complaint, on October 24, 2018, officers responded to a 911 call regarding the suspected overdose of a San Diego woman identified in court documents as J.C.G. When officers and paramedics arrived, they attempted CPR without success and pronounced the woman dead. The complaint alleges that the San Diego County Medical Examiner conducted an examination and confirmed that the woman’s cause of death was a fentanyl and heroin overdose.
The case was immediately assigned to a multi-agency task force, led by the Drug Enforcement Administration, which investigates drug overdose deaths in San Diego County. According to the criminal complaint, within 24 hours of the woman’s death, task force agents and officers traced the fentanyl-laced heroin back to defendant Travis Ray Ballou, who was arrested on October 25, 2018. The complaint alleges that Ballou sold heroin to J.C.G. on three occasions—October 22, 23, and 24. On October 23, J.C.G. overdosed and went to the hospital, where she was revived with Narcan, an opioid blocker used for the rapid reversal of opioid overdose. The following day, on October 24, J.C.G. told Ballou about overdosing the day before and requested additional heroin, which Ballou supplied. That evening, J.C.G. overdosed on heroin and fentanyl and died.
Investigators quickly identified defendant Tony Davis as the person who supplied Ballou with heroin and fentanyl. Among other evidence, the complaint quotes a text message that Ballou sent to Davis on October 24, 2018 informing Davis that one of his (Ballou’s) customers – J.C.G. – had overdosed and had to be revived with Narcan, and telling Davis: “your stuff def has fetnal [sic] in it.” During a court-authorized search of Davis’ residence, law enforcement officers found evidence of fentanyl, heroin, cocaine, and methamphetamine, as well as syringes and payment ledgers.
“As the opioid epidemic continues to rage across the nation, we are committed to doing everything we can to save lives,” said U.S. Attorney Robert Brewer. “That includes investigating overdose deaths as homicides and pursuing charges against dealers of the poison that is killing people every single day in this country.” According to the San Diego County Medical Examiner, deaths caused by fentanyl analogs more than doubled in San Diego County in 2017, rising from 33 to 84, and the office expects a slight increase in 2018 when pending investigations are finalized.
Task force agents and officers arrested Davis on November 15, 2018. Defendant Tony Davis made his initial appearance before U.S. Magistrate Judge Linda Lopez on January 15, 2019. Defendant Travis Ray Ballou is expected to make his initial appearance sometime next week.
This case is being prosecuted by Assistant U.S. Attorneys Stephen Wong and Mikaela Weber.
DEFENDANTS Case Number 19-mj-0142
Tony Davis Age: 63
Travis Ray Ballou Age 40
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)
Maximum penalty: Mandatory minimum 20 years in prison up to life
AGENCIES
San Diego County District Attorney’s Office
Drug Enforcement Administration
San Diego Police Department
San Diego Medical Examiner’s Office
San Diego District Attorney’s Office
Homeland Security Investigations
Department of Health Care Services
Federal Bureau of Investigation
National City Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Two Individuals Sentenced to 23 Years in Prison for A CarjackingRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced that United States District Court Judge Francisco A. Besosa sentenced Miguel Angel Martinez-Ramos and Michael Rosa-Rodríguez to 23 years of imprisonment for carjacking and for discharging a firearm during and in relation to a crime of violence.
On April 25, 2018, Miguel Angel Martínez-Ramos and Michael Rosa-Rodríguez were charged with carjacking; using, carrying and discharging a firearm during a crime of violence; possession of a machinegun in relation to a crime of violence; and illegal possession of a machinegun.
The evidence revealed that on April 14, 2018, the defendants stole the victim’s vehicle and Rosa-Rodriguez shot the victim twice, once on the neck and once on his back. The third shot missed him. The victim, a school teacher, dragged himself on the street and was able to signal someone in an incoming vehicle who agreed to help him and took him to the emergency room where he had to receive emergency surgery.
On October 10, 2018, both defendants pled guilty to Counts One and Two of the indictment.
The criminal prosecution was handled by Assistant United States Attorney Daynelle Alvarez and the Federal Bureau of Investigation (FBI) investigated the case.
St. Louis Man Sentenced for Carjackings and Firearms ChargesRead the Press Release
St. Louis, MO – Joseph Dixon, Jr., 22, St. Louis, was sentenced to 108 months in prison for carjacking and possessing a firearm during a federal crime of violence. He appeared in federal court today before U.S. District Judge Henry E. Autrey.
According to court documents, on July 3, 2017, a citizen of the City of St. Louis exited his 2016 Dodge Charger, which was parked at 2406 13th Street. Dixon armed with a semi-automatic pistol approached the citizen, pointed the pistol at him, and demanded the keys to the car. The citizen complied and Dixon entered the Charger and drove off. When the citizen looked around he saw a KIA Soul also drive off. The Charger was recovered being driven by another individual in the beginning of August.
Subsequent investigation led member of the St. Louis Metropolitan Police Department to arrest the defendant in the end of May, 2018 and interview him. He told the officers who drive the KIA Soul to the carjacking and that he used that person’s Glock 23 firearm to steal the Charger.
Dixon pled guilty on October 4, 2018 on the two counts of carjacking and possession a firearm.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
St. Louis Man Admits Stealing Credit Cards at the Plaza Frontenac CinemaRead the Press Release
St. Louis, MO – Alfred L. Ford, Jr., 30, of Norristown, Pennsylvania, pled guilty to three counts - conspiracy to commit access device fraud, access device fraud and aggravated identity theft. Ford appeared before Judge Ronnie White today who accepted his plea and set his sentencing for April 17, 2019.
According to his plea agreement, between May 27, 2017, and continuing until at least January 27, 2018, Ford and others stole and obtained without authorization credit and debit cards of individual patrons at the Landmark Plaza Frontenac Cinema in St. Louis, Missouri. Ford and his co-conspirators then used the stolen credit and debit cards, without permission of the true account holders, to make purchases at various Walmart stores within the Eastern District of Missouri. The total loss amount from the conspiracy to commit access device fraud is $36,514.57.
Ford faces not more than five years, fine of not more than $250,000 on the conspiracy charge; not more than 10 years, fine of not more than $250,000 on the access device fraud; and two years in addition to the punishment provided for the offenses of access device fraud and aggravated identity theft. Restitution to any victims of Ford’s conduct is also mandatory.
This case was investigated by the U.S. Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney's Office.
Six Defendants Arrested for Distributing Heroin in the East New York Section of Brooklyn and ElsewhereRead the Press Release
Earlier today, an indictment was unsealed in federal court in Brooklyn charging five defendants for their participation in a heroin distribution ring operating in the East New York section of Brooklyn and elsewhere. A sixth defendant was arrested and charged in a complaint with possessing heroin as part of the operation. The defendants were arrested this morning in Brooklyn, Queens and Long Island and will be arraigned this afternoon before Chief United States Magistrate Judge Roanne L. Mann.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged in the indictment and complaint, these defendants distributed high purity heroin in our communities, with life-threatening consequences,” stated United States Attorney Donoghue. “With today’s arrests, their drug trafficking operation has been dismantled, and the defendants will now face justice for their crimes.”
According to the indictment, complaint and other court filings, the defendants regularly acquired kilograms of heroin to process, repackage and distribute on the streets of Brooklyn and elsewhere. The defendants routinely tested the quality of the heroin to ensure it was sufficiently potent. On one occasion, as captured in court-authorized messages, defendant Dino Sanchez texted co-defendant Melvin Sanabria using coded terms to indicate he had a “bentley” and a “phantom” for Sanabria. Thereafter, in a court-authorized intercepted call, Sanabria complained that a subsequent sample Sanchez provided was inferior quality, stating, “I don’t rent hondas or acuras … around here we drive benz and lambos.”
Earlier this morning, law enforcement executed search warrants at three of the defendants’ residences, two additional stash houses and two vehicles, and seized over four kilograms of heroin, three firearms (including one with a defaced serial number), more than $100,000 in U.S. currency and various drug paraphernalia, including over 10,000 glassine envelopes.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face mandatory minimum sentences of 10 years’ imprisonment and up to life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Keith D. Edelman is in charge of the prosecution.
The Defendants:
DINO SANCHEZ (also known as “Dinito”)
Age: 40
East New York, BrooklynALEX AYBAR
Age: 47
Bayside, QueensRALIEK BROWN (also known as “Burger”)
Age: 36
East New York, BrooklynMELVIN SANABRIA (also known as “Mel”)
Age: 42
East Rockaway, New YorkROGELIO VARGAS (also known as “Macho”)
Age: 43
East New York, BrooklynE.D.N.Y. Docket No. 19-CR-14 (AMD)
RAMON SANABRIA (also known as “Junior”)
Age: 48
South Ozone Park, QueensE.D.N.Y. Docket No. 19-MJ-36
Robert S. Brewer, Jr. Sworn in as United States Attorney for the Southern District of CaliforniaRead the Press Release
Kelly Thornton (619) 546-9726 or Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – January 16, 2019
SAN DIEGO – Robert S. Brewer, Jr., a decorated Vietnam War veteran, former prosecutor and prominent San Diego litigator for decades, was sworn in today as the United States Attorney for the Southern District of California by Chief U.S. District Court Judge Barry Ted Moskowitz.
Mr. Brewer took the oath of office in federal court this morning before an audience that included family members, lifelong friends, members of the legal community, judges and staff from the court and the U.S. Attorney’s Office. As the United States Attorney, Mr. Brewer is the chief federal law enforcement officer responsible for prosecuting and defending the interests of the United States in one of the busiest judicial districts in the nation.
“It is one of my life’s great honors to serve as the United States Attorney for the Southern District of California,” Mr. Brewer said in a statement. “I am committed to fairness, equality, justice and above all the rule of law. I will draw on my valuable life experiences to uphold these principles and protect our community and our border. It will be a privilege to work with the skillful and dedicated attorneys and staff in the office. I also want to highly commend Adam Braverman who served as U.S. Attorney for the past 14 months and Alana Robinson who served as U.S. Attorney from January to November 2017. Both served with distinction and brought great credit to the office.”
President Trump nominated Mr. Brewer to serve as U.S. Attorney for this district on June 25, 2018, upon the recommendation of U.S. Senators Kamala Harris and Dianne Feinstein. The full Senate unanimously confirmed his appointment on January 2, 2019.
During today’s swearing in, Judge Moskowitz noted Mr. Brewer’s many contributions to his country and community – from heroic actions as a combat veteran in Vietnam to volunteer work for the American Red Cross, the San Diego Humane Society and Canine Companions for Independence.
He also praised Mr. Brewer’s legal accomplishments. “I’ve known Bob Brewer for 33 years,” Judge Moskowitz said. “He is one of the five best lawyers I have ever met.”
Until recently, Mr. Brewer, a native of Ithaca, New York, was a litigation attorney at Seltzer Caplan McMahon Vitek. He previously served as a Deputy District Attorney in Los Angeles County from 1975 to 1977, and as an Assistant United States Attorney in the Central District of California from 1977 to 1982, where he successfully prosecuted a variety of cases including espionage, bank robbery, murder for hire and aircraft hijacking. He also held various management positions, including Assistant Chief of the Criminal Division. He received the Attorney General’s Commendation Award in 1981.
From 1982 through the present, Mr. Brewer has been in private practice, including from 1991 to 2009 as a partner at McKenna Long & Aldridge LLP, and from 2009 to 2014 as a partner at Jones Day. Before attending law school, Mr. Brewer served in the United States Army as an Airborne Ranger Infantry Officer and received the Silver Star and two Bronze Stars for his combat service in the Vietnam War. Mr. Brewer has been a Fellow in the American College of Trial Lawyers since 1999. He received the Daniel T. Broderick Award from the San Diego County Bar Association in 2009 and the Distinguished Graduate Award from the University of San Diego School of Law in 2016. Mr. Brewer earned his B.A. from St. Lawrence University, and his J.D. from the University of San Diego School of Law.
Brewer is married to retired U.S. District Judge Irma Gonzalez, the nation’s first Mexican-American female federal judge.
Because of the lapse in appropriations, information about possible media availability will be provided at the conclusion of the government shutdown.
Randolph County woman admits to drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Christine Kay Woods, of Elkins, West Virginia, has admitted to methamphetamine distribution, United States Attorney Bill Powell announced.
Woods, age 57, pled guilty to one count of “Conspiracy to Distribute More than 5 Grams of Methamphetamine.” Woods admitted to distributing more than five grams of methamphetamine in Randolph County from the fall of 2016 to July 2018.
Woods faces up to 40 years incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mountain Region Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the Elkins Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Nationwide Sting Operation Targets Illegal Asian Brothels, Six Indicted for RacketeeringRead the Press Release
PORTLAND, Ore.—A federal grand jury in Oregon has returned two indictments charging six people with running sex trafficking organizations operating in the U.S., Canada and Australia. The indictments were unsealed today following a series of arrests by FBI Portland’s Child Exploitation Task Force (CETF) resulting from a multi-district takedown operation on Tuesday, January 15, 2019.
The FBI partnered with local law enforcement agencies in more than a dozen cities across the nation to coordinate sting operations targeting the organizations operated by defendants under indictment in Oregon, along with other Asian sex trafficking networks. As part of the takedown operation, the FBI seized the primary website used by one of the organizations, www.supermatchescort.com, and about 500 other associated domains, including 25 location-specific sub-sites.
In addition to the arrests, the FBI assisted five victims in Oregon. The FBI and U.S. Attorney’s Office victim services programs worked with local non-profits to ensure the victims have access to social, medical and legal services.
Zongtao Chen aka Mark Chen, 46, of Toronto, Canada; Weixuan Zhou aka Marco Zhou, 37, of Guangzhou, China; Yan Wang aka Sarah Wang, 33, of Temecula, California; Chaodan Wang, 32, of Beaverton, Oregon; and Ting Fu, 35, of Beaverton, Oregon, are charged with conspiracy and use of interstate facilities to promote, manage, establish, carry on or facilitate a racketeering enterprise. In a separate indictment, Hui Ling Sun, 40 of Portland, is charged with using interstate facilities to promote, manage, establish, carry on or facilitate a racketeering enterprise.
“Protecting vulnerable foreign nationals from criminal traffickers seeking to exploit them for profit is a critically important law enforcement mission. Trafficking adults for sex can at times be overlooked by our society because some believe the adult victims have a choice. This notion is false. These victims are powerless and often thousands of miles away from their home, native language and personal connections who might help them escape. We have always and will continue to aggressively pursue criminals who exploit vulnerable victims,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Vulnerable women looking for a new life in the U.S. instead find traffickers who cash in on their cultural isolation by profiting from the sale of sex services. In many cases, these women lack the language skills and understanding of American civil rights to ask for help or assistance from law enforcement. For that reason, we need community members who suspect such illegal activity to come forward to help us identify these instances of human trafficking so we can recover the victims and provide them the social, medical and legal services they need,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to the indictments, Mark Chen headed a criminal enterprise that recruited women, primarily from China, to travel to the U.S. and elsewhere to engage in prostitution and other sex trafficking activities. Within the cities the organization was operating, a “boss” would oversee and manage a local brothel in a hotel or apartment complex. Customers seeking to engage in acts of illegal prostitution would call a number listed on www.supermatchescort.com or related websites, or send a message by text, email, or WeChat, an encrypted internet messaging service based in China. The organization employed dispatchers who would receive incoming requests from potential customers to set up “dates.” The dispatchers would coordinate and schedule the “dates” with women working at the various brothels.
Dispatchers used a computer program to schedule and track all of the prostitution dates. This computer program had a customer database that logged more than 30,000 customer phone numbers with details from previous dates. In Oregon, defendant Zongtao “Mark” Chen promoted illegal prostitution activities that occurred at brothels in Portland, Tigard and Beaverton.
Hui Ling Sun made her initial appearances in federal court in Portland on January 15, 2019 and was detained pending trial. Ting Fu is expected to appear in Portland today. Yan Wang, arrested by the FBI’s Los Angeles Division, made an appearance before a magistrate judge in the Central District of California on January 15, 2019. The Toronto Police Service Human Trafficking Enforcement Team and Fugitive Squad have provisionally arrested Chen in Canada with a view towards extradition. Investigators believe Weixuan Zhou is in China and Chaodan Wang’s location is unknown.
Anyone with information on these investigations or who would like to report a federal crime may contact the nearest FBI office or submit information online at https://tips.fbi.gov.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
The FBI Portland’s CETF investigated this case with assistance from Homeland Security Investigations (HSI) agents in Omaha, Nebraska. The Toronto Police Service, which maintained a parallel investigation, also provided assistance. CETF member organizations who participated in the takedown include Portland Police Bureau, Beaverton Police Department, Tigard Police Department and Clackamas County Sheriff’s Office.
The FBI CETF conducts sexual exploitation investigations—many of them undercover—in coordination with other federal, state and local law enforcement agencies. The CETF is committed to locating and arresting those who prey on children as well as recovering victims of sex trafficking and child exploitation.
The National Cyber Forensics and Training Alliance (NCFTA) assisted in the seizure of the websites related to the Chen investigation. The NCFTA, established in 2002, is a nonprofit partnership between private industry, government and academia for the sole purpose of providing a neutral, trusted environment that enables two-way collaboration and cooperation to identify, mitigate and disrupt cybercrime.
Scott Kerin and Julia Jarrett, Assistant U.S. Attorneys for the District of Oregon, are prosecuting the case.
Please Note: During the lapse in appropriations, the U.S. Attorney’s Office is required to curtail some operations pursuant to applicable law and policy. Nevertheless, the office continues to fulfill its law enforcement responsibilities by prosecuting criminal cases. The office will provide public information about certain significant cases including those impacting public safety and national security.
U.S. v. Chen et al. Indictment U.S. v. Sun IndictmentMethamphetamine Addict Sentenced to Prison for Multiple Firearms ViolationsRead the Press Release
PITTSBURGH, PA- A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 2½ years’ imprisonment and three years’ supervised release on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Brandon Mlinac, 27. According to information presented to the court, the White Oak Police responded to a 911 call on January 6, 2018, requesting assistance removing Mlinac from his then-girlfriend’s residence. The caller reported that Mlinac was high on crystal meth and informed law enforcement that Mlinac had a firearm stored under the mattress in the bedroom. When officers arrived at the residence, they recovered an unregistered New England Firearms 20 gauge sawed-off shotgun, with an obliterated serial number, and a Remington 20 gauge shell. They also observed drug paraphernalia. Officers were advised that Mlinac had possessed the firearm at the residence on or about January 2, 2018. Mlinac was prohibited from possessing a firearm at that time due to an outstanding protection from abuse order entered against him on December 12, 2017.
The court was further advised that on December 9, 2017, Mlinac was subject to a traffic stop and a Savage Arms 17 caliber rifle was found in the backseat of his car. A hospital blood test following the traffic stop confirmed that Mlinac was unlawfully using methamphetamine at the time of the traffic stop. Federal law prohibits unlawful users of controlled substances and those addicted to controlled substances from possessing firearms.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the White Oak Police Department conducted the investigation leading to the successful prosecution of Mlinac. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Martinsburg, West Virginia Man Convicted of Sex Trafficking, Distributing Fatal Dose of Fentanyl and Evidence TamperingRead the Press Release
Harrisonburg, VIRGINIA – A Martinsburg, West Virginia, man, who used heroin as a means to control numerous women he trafficked as part of a commercial prostitution ring that operated in the Western District of Virginia, and elsewhere, was convicted this week following a jury trial in U.S. District Court in Harrisonburg. United States Attorney Thomas T. Cullen made the announcement.
Kendall Demarko Wysinger, 42, was convicted on January 14, 2019, of one count of conspiracy to commit sex trafficking, one count of interstate transportation for prostitution, one count of distribution of fentanyl resulting in death, one count of distribution of fentanyl resulting in serious bodily injury, and one count of evidence tampering, following a six-day jury trial. At sentencing, Wysinger faces a mandatory minimum sentence of 20 years in prison and a maximum statutory penalty of life.
“An individual who preyed on vulnerable victims and destroyed numerous lives through opioid distribution and sex trafficking will now spend the better part of his life in federal prison,” U.S. Attorney Cullen stated today. “We are extremely grateful for the hard work and persistence of the FBI, the Virginia State Police, and our numerous local law-enforcement partners in bringing him to justice.”
“The I-81 Human Trafficking Task Force continues to work vigorously to identify and bring to trial the perpetrators of these heinous crimes; and partner with victim service providers to ensure victims are able to obtain the necessary care to recover and rebuild their lives,” said FBI Acting Special Agent in Charge, MaryJo Thomas.
According to evidence presented at trial, Wysinger operated a prostitution ring with at least six victims in Virginia, West Virginia, and Maryland. Through the course of the conspiracy, Wysinger used heroin to coerce his victims into engaging in commercial sex, and employed threats and intimidation to ensure he maintained power and control over those victims. Wysinger routinely advertised these victims for commercial sex using online classified ads in Winchester, Virginia, and Shenandoah County, Virginia, and used social media accounts to target and recruit women into his sex-trafficking operation. The defendant demanded his victims provide him nearly all of the money they received from commercial sex in order to pay their drug debts to him and his charges for transporting them to prostitution dates.
On one occasion, the heroin Wysinger distributed resulted in two overdoses. Wysinger gave what he said was heroin to one victim of his sex trafficking ring and her friend. The substance was actually fentanyl, a far more powerful synthetic opioid, and both victims overdosed after ingesting it. One victim died as a result of the fentanyl poisoning. Wysinger was with both victims when they overdosed and destroyed the evidence from the crime scene.
The investigation of the case was conducted by the Federal Bureau of Investigation’s I-81 Human Trafficking Task Force (I-81 HTTF), the Drug Enforcement Administration, and the Northwest Virginia Regional Drug and Gang Task Force (NWRDGTF). Assistant United States Attorneys Erin M. Kulpa and Rachel Swartz prosecuted the case for the United States.
The I-81 HTTF is a collaborative effort of law enforcement and community partners focused on identifying instances of human trafficking along the I-81 corridor in the northern Shenandoah Valley of Virginia, West Virginia, and Maryland; prosecuting those responsible; and, providing assistance to the victims impacted by these crimes. The I-81 HTTF includes law enforcement from the counties of Frederick, Clarke, and Shenandoah as well as the cities and towns of Front Royal, Hagerstown, and Frederick, Maryland and Lord Fairfax Community College.
The NWRDGTF uses the combined efforts of local, state, and federal agencies to actively pursue those groups or individuals who manufacture, distribute, or sell illegal narcotics. The NWRDGTF is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office, and the Clarke County Sheriff’s Office.
MEDIA ADVISORY -- Release of statements for arrest of Hasher TahebRead the Press Release
The U.S. Attorney for the Northern District of Georgia and the Special Agent in Charge Chris Hacker of the FBI Atlanta Field Office have released the following statements in regards to the arrest of Hasher Taheb:
U.S. Attorney Pak:
“Investigating and prosecuting individuals who seek to cause mass casualties is law enforcement’s top priority. Today, the Joint Terrorism Task Force partners, led by the FBI, arrested Hasher Taheb, 21, of Cumming, Georgia after a thorough investigation into his plans to attack federal buildings. As articulated in the affidavit supporting the complaint, his alleged intent was to attack the White House and other targets of opportunity in the Washington DC area. Mr. Taheb has been charged with violating Title 18USC 844(f)(1) -- attempt to damage by means of an explosive any building owned, possessed, or leased by the United States or any department or agency thereof, or any institution or organization receiving federal financial assistance. The JTTF initiated the case after receiving a tip from the community. Because the FBI, U.S. Secret Service, and numerous Federal, state and LE partners are active participants in the JTTF, all potential threats have been neutralized and under control from the inception of this case. Again, I want to clarify that there were no threats posed to any targets located in Northern District of Georgia, nor was the upcoming Super Bowl a target of his alleged activity,” said U.S. Attorney Byung J. “BJay” Pak.
FBI Statement:
"It is important to point out that this investigation and arrest were the direct result of a tip from the community, another example of how important it is to contact law enforcement if you see or hear something suspicious," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "Taheb is charged as the result of a year-long investigation by FBI Atlanta's Joint Terrorism Task Force. We want to thank the Forsyth County Sheriff Office and Gwinnett County Police Department for assisting us with his arrest. The investigation is continuing, but at this stage it is believed Taheb was acting on his own."
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.
Individual Arrested for Threatening the President of the United StatesRead the Press Release
SAN JUAN, Puerto Rico– Yesterday federal authorities arrested Migdoel Cruz-Ruiz for threatening the life of the President of the United States. The complaint charges Cruz-Ruiz with threatening to kill the President of the United States, in violation of Title 18, United States Code, Section 871, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation.
The affidavit in support of the criminal complaint states that on January 12, 2019, Migdoel Cruz-Ruiz contacted the Federal Bureau of FBI National Threat Operations Center via telephone, and made threats to kill President Trump, destroy Newark, Boston, Colorado, and the White House “very soon.” Cruz-Ruiz claimed that this was being done in vengeance for things the United States did to the people of Pakistan, India and Iran. On January 14, 2019, FBI agents arrested the defendant without incident.
“Federal authorities will continue to prosecute those who use means of communication to threaten, promote, or incite violent acts,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, Cruz-Ruiz faces a maximum term of imprisonment of 5 years, a term of supervised release of up to three years, and a fine of up to $250,000.
The public is reminded that criminal complaints contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Hanover Man Sentenced for Dumping Sewage into West Virginia StreamRead the Press Release
Defendant received 15 months of incarceration for dumping truckloads of sewage into Little Huff Creek in Wyoming County
BECKLEY, W.Va. -- Mike Blankenship, 54, of Hanover, West Virginia, was sentenced to 15 months in prison for Clean Water Act violations, announced United States Attorney Mike Stuart. A federal jury convicted Blankenship of two felony Clean Water Act violations in April 2018. United States Attorney Mike Stuart praised the work of the Environmental Protection Agency (EPA) and the West Virginia Department of Environmental Protection (WVDEP), who were also assisted by the Federal Bureau of Investigation (FBI) and the West Virginia State Police.
“No one wants crap in their creek but that’s exactly what they got in this case,” said United States Attorney Mike Stuart. “Clean water and public sewage - especially in West Virginia- is still much too hard to come by in some of our more rural communities. Blankenship operated his business with total disregard of environmental laws putting raw sewage in the very water sources our good people depend on.”
On September 29, 2015, a sewage truck owned by Blankenship was seen dumping untreated sewage into Little Huff Creek, a tributary of the Guyandotte River in Southwestern West Virginia. Inspectors with the West Virginia Department of Environmental Protection (WVDEP) responded to the truck’s location in Hanover, West Virginia. They saw the sewage truck with a hose placed in the creek, observed sewage in the water and on the ground, and quickly requested the assistance of the West Virginia State Police. Returning to the truck, WVDEP agents were able to take samples from the truck and pad. Lab tests confirmed the presence of fecal coliform, an indicator of raw or untreated sewage. Later, agents with the FBI, EPA, and WVDEP spoke to Mike Blankenship. Blankenship owns a porta-john and sewage business under the name Hanover Contracting Company. Blankenship admitted that it was his sewage truck dumping sewage into the water on the day the WVDEP inspectors observed it. Blankenship also admitted to dumping sewage into Little Huff Creek on other occasions. Neighbors provided photographic evidence that they testified showed Blankenship’s trucks dumping sewage and porta-john waste into the creek on various dates in 2015 and 2016. The April 2018 federal jury also heard testimony from the law enforcement agents and experts in water quality assessment.
Assistant United States Attorney Erik S. Goes and Special Assistant United States Attorney Perry McDaniel represented the United States at sentencing and during the jury trial. United States District Judge Irene C. Berger presided over the hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Festus Man Convicted of Child Pornography ChargesRead the Press Release
St. Louis, MO – Jerris M. Blanks, 39, of Festus, was convicted by a jury today in U.S. District Court in St. Louis for one count of receipt of child pornography and two counts of possession of child pornography. Blanks’ trial took place before U.S. District Court E. Richard Webber and set a sentencing hearing for April 16, 2019.
According to testimony at trial, in 2011 a St. Louis County Detective engaged in a peer-to-peer contact with Blanks as part of an undercover operation. Blanks was found to have over 500 pornographic images of minor children on his computer and another 60 such images on a CD. Later in 2015, another investigation found that Blanks’ possessed more pornographic images of minor children.
Possessing child pornography carries up to 20 years and a fine of $250,000 and receiving child pornography carries a minimum of 5 years to 20 years and a fine of $250,000.
The case was investigated by the Federal Bureau of Investigation, Regional Computer Crimes Education and Enforcement Group, the St. Louis County Police Department, the Jefferson County Sheriff’s Department and the Festus Police Department. This case was handled by Assistant United States Attorneys Rob Livergood and Kyle Bateman and Investigator Donya Jackson.
DuBois, Pa. Felon Pleads Guilty to Illegally Possessing Multiple FirearmsRead the Press Release
JOHNSTOWN, Pa. – A resident of DuBois, Pa. pleaded guilty in federal court to a charge of unlawful possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
Vincent L. Ruchlewicz, 58, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Mar. 1, 2018, he was found in possession of numerous firearms. On Feb. 28, 2011, Ruchlewicz had been convicted in the United States District Court for the Western District of Pennsylvania, of unlawful possession of a firearm by a convicted felon, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Judge Gibson scheduled sentencing for June 3, 2019, at 10:00 a.m. The law provides for a mandatory sentence of at least 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The United States Probation Office for the Western District of Pennsylvania and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Ruchlewicz.
Deputy Attorney General Rod Rosenstein Issues Memo to U.S. Attorneys on the Recently Published OLC Opinion “Reconsidering Whether the Wire Act Applies to Non-Sports Gambling”Read the Press Release
In the January 15, 2019 memorandum to all U.S. Attorneys, the Deputy Attorney General set a 90-day grace period on implementing the Office of Legal Counsel's (OLC) new opinion during which federal prosecutors should not apply the Wire Act to non-sports-related betting or wagering. This 90-day grace period will allow anyone affected to review the opinion and bring their gambling-related operations into compliance, if necessary. The Deputy Attorney General also indicated that, to ensure continuity across the country, any Wire Act charges must be reviewed and approved by the Criminal Division’s Organized Crime and Gang Section. This new review-and-approval requirement will be codified in the Justice Manual.
15 January 2019
Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on January 15, 2019, Taffin Monae Nuss, 30, and currently an inmate at the Nebraska Correctional Center for Women in York, Nebraska, was sentenced to five years in federal prison for conspiracy to distribute 500 grams or more of methamphetamine mixture between January of 2013, and April of 2017. This sentence was ordered to run concurrent with (at the same time as) the remainder of a sentence of 4-10 years imposed by the Lancaster County District Court on March 1, 2018. Following her prison term, Nuss will serve five years on supervised release.
Information provided to law enforcement indicated that Nuss was responsible for the distribution of at least 5 kilograms, (11 pounds) of methamphetamine mixture and at least 35 grams (1 ¼ ounces) of actual/pure methamphetamine. In April of 2017, Nuss was stopped for driving on a suspended license. During a search of her vehicle, at least 40 grams of actual methamphetamine were found.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Washington, D.C. man admits to firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Roger Anthony Williams, of Washington, D.C., has admitted to firearms charges, United States Attorney Bill Powell announced.
Williams, age 38, pled guilty to two counts of “Unlawful Possession of a Firearm.” Williams, having previously been convicted of second-degree murder in Prince George’s County, Maryland, admitted to having a 9mm pistol in October 2017 in Berkeley County. He also admitted to having .45 caliber pistol and .45 caliber ammunition in September 2018 in the District of Columbia.
Williams faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Ukrainian Nationals Indicted in Computer Hacking and Securities Fraud Scheme Targeting U.S. Securities and Exchange CommissionRead the Press Release
Two Ukrainian men have been charged for their roles in a large-scale, international conspiracy to hack into the Securities and Exchange Commission’s (SEC) computer systems and profit by trading on critical information they stole.
In a 16-count indictment unsealed today in the District of New Jersey, Artem Radchenko, 27, and Oleksandr Ieremenko, 26, both of Kiev, Ukraine, are charged with securities fraud conspiracy, wire fraud conspiracy, computer fraud conspiracy, wire fraud, and computer fraud. The SEC also filed a civil complaint today charging Ieremenko along with several other individuals and entities.
The indictment alleges that Radchenko and Ieremenko hacked into the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system and stole thousands of files, including annual and quarterly earnings reports containing confidential, non-public, financial information, which publicly traded companies are required to disclose to the SEC. The defendants and others then profited by selling access to the confidential information in these reports and trading on this stolen information prior to its distribution to the investing public.
“The defendants allegedly orchestrated sophisticated computer intrusions to steal non-public information from the SEC, compromising the integrity of the market and depriving honest investors of a level playing field,” said Assistant Attorney General Benczkowski. “The Department of Justice will aggressively pursue and prosecute those who attack our financial markets and seek to profit unfairly, no matter where such offenders reside.”
“The defendants charged in the indictment announced today engaged in a sophisticated hacking and insider trading scheme to cheat the securities markets and the investing public,” U.S. Attorney Craig Carpenito said. “They targeted the Securities and Exchange Commission with a series of sophisticated and relentless cyber-attacks, stealing thousands of confidential EDGAR filings from the Commission’s servers and then trading on the inside information in those filings before it was known to the market, all at the expense of the average investor.”
“Today’s indictment sends a strong message to those criminals who choose to use the cyber-world to profit from network intrusion,” Mark McKevitt, Special Agent in Charge of the Secret Service Newark Field Office, said. “The Secret Service will continue to aggressively investigate cyber-enabled financial crimes and develop innovative ways to combat emerging cyber threats.”
“This indictment is a testament to the countless hours of hard work and dedication by law enforcement in the fight against cyber criminals,” FBI Special Agent in Charge Gregory W. Ehrie said. “Cybercrime knows no boundaries. Dismantling these operations are possible only by working closely with our partners.”
According to the indictments unsealed today:
From February 2016 to March 2017, Radchenko, Ieremenko, and others conspired to gain unauthorized access to the computer networks of the SEC’s EDGAR system, which is used by publicly traded companies to file required disclosures, such as annual and quarterly earnings reports. These filings contained detailed information about the financial condition and operations of the companies, including their earnings. Such information can, and often does, affect the stock price of the companies when it is made public, and is therefore highly confidential prior to its disclosure to the general public.
The EDGAR system allows companies to make test filings in advance of a public filing. These test filings often contain information that is the same as, or similar to the information in the final filing. The defendants stole thousands of test filings before they were released to the public, and sought to profit from their theft by using the information in the test filings to trade before the investing public learned the information.
To gain access to the SEC’s computer networks, the defendants used a series of targeted cyber-attacks, including directory traversal attacks, phishing attacks, and infecting computers with malware. Once the defendants had access to the test filings on the EDGAR system, they stole them by copying the test filings to servers they controlled. For example, between May 2016 and October 2016, the defendants extracted thousands of test filings from the EDGAR servers to a server they controlled in Lithuania.
Ieremenko was previously charged in a hacking and securities fraud scheme in an indictment in the District of New Jersey. That indictment charged Ieremenko with being part of a large-scale, international conspiracy to hack the computer systems of three newswire organizations and steal press releases containing confidential non-public financial information relating to hundreds of companies traded on the NASDAQ and NYSE from three newswires. The members of the conspiracy profited from the theft by trading on the news ahead of its distribution to the investing public. The indictment unsealed today alleges Ieremenko employed some of the same methods to hack the SEC.
Radchenko recruited to the scheme traders who were provided with the stolen test filings so they could profit by trading on the information before the investing public. Armed with the stolen information, the traders profited by executing various trades in brokerage accounts they controlled. In one instance, a test filing for “Public Company 1” was uploaded to the EDGAR servers at 3:32 p.m. (EDT) on May 19, 2016. Six minutes later, the defendants stole the test filing and uploaded a copy to the Lithuania server. Between 3:42 p.m. and 3:59 p.m., a conspirator purchased approximately $2.4 million worth of shares of Public Company 1. At 4:02 p.m., Public Company 1 released its second quarter earnings report and announced that it expected to deliver record earnings in 2016. Over the next day, the conspirator sold all the acquired shares in Public Company 1 for a profit of more than $270,000.
The wire fraud conspiracy and substantive wire fraud counts with which the defendants are charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy, computer fraud conspiracy, and substantive computer fraud counts with which the defendants are charged carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
This case was investigated by the U.S. States Secret Service and special agents of the FBI, with assistance from the SEC’s Market Abuse and Cyber Units and the Justice Department’s Office of International Affairs.
The prosecution is being handled by Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), and by Assistant U.S. Attorney Daniel Shapiro; Chief of the Cybercrimes Unit Justin S. Herring; Attorney-in-Charge, of the U.S. Attorney’s Office in Trenton Nicholas Grippo; and Special Assistant U.S. Attorney Lynn O’Connor.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Ukrainian Nationals Indicted in Computer Hacking and Securities Fraud Scheme Targeting U.S. Securities and Exchange CommissionRead the Press Release
NEWARK, N.J. – Two Ukrainian men have been charged for their roles in a large-scale, international conspiracy to hack into the Securities and Exchange Commission’s (SEC) computer systems and profit by trading on critical information they stole, U.S. Attorney Craig Carpenito announced today.
In a 16-count indictment unsealed today Artem Radchenko, 27, and Oleksandr Ieremenko, 26, both of Kiev, Ukraine, are charged with securities fraud conspiracy, wire fraud conspiracy, computer fraud conspiracy, wire fraud, and computer fraud. The SEC also filed a civil complaint today charging Ieremenko along with several other individuals and entities.
The indictment alleges that Radchenko and Ieremenko hacked the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system and stole thousands of files, including annual and quarterly earnings reports containing confidential, non-public, financial information, which publicly traded companies are required to disclose to the SEC. The defendants and others then profited by selling access to the confidential info in these reports and trading on this stolen information prior to its distribution to the investing public.
“The defendants charged in the indictment announced today engaged in a sophisticated hacking and insider trading scheme to cheat the securities markets and the investing public,” U.S. Attorney Craig Carpenito said. “They targeted the Securities and Exchange Commission with a series of sophisticated and relentless cyber-attacks, stealing thousands of confidential EDGAR filings from the Commission’s servers and then trading on the inside information in those filings before it was known to the market, all at the expense of the average investor.”
“The defendants allegedly orchestrated sophisticated computer intrusions to steal non-public information from the SEC, compromising the integrity of the market and depriving honest investors of a level playing field,” said Assistant Attorney General Brian Benczkowski. “The Department of Justice will aggressively pursue and prosecute those who attack our financial markets and seek to profit unfairly, no matter where such offenders reside.”
“Today’s indictment sends a strong message to those criminals who choose to use the cyber-world to profit from network intrusion,” Mark McKevitt, Special Agent in Charge of the Secret Service Newark Field Office, said. “The Secret Service will continue to aggressively investigate cyber-enabled financial crimes and develop innovative ways to combat emerging cyber threats.”
“This indictment is a testament to the countless hours of hard work and dedication by law enforcement in the fight against cyber criminals,” FBI Special Agent in Charge Gregory W. Ehrie said. “Cybercrime knows no boundaries. Dismantling these operations are possible only by working closely with our partners.”
According to the indictments unsealed today:
From February 2016 to March 2017, Radchenko, Ieremenko, and others conspired to gain unauthorized access to the computer networks of the SEC’s EDGAR system, which is used by publicly traded companies to file required disclosures, such as annual and quarterly earnings reports. These filings contained detailed information about the financial condition and operations of the companies, including their earnings. Such information can, and often does, affect the stock price of the companies when it is made public, and is therefore highly confidential prior to its disclosure to the general public.
The EDGAR system allows companies to make test filings in advance of a public filing. These test filings often contain information that is the same or similar to the information in the final filing. The defendants stole thousands of test filings before they were released to the public, and sought to profit from their theft by using the information in the test filings to trade before the investing public learned the information.
To gain access to the SEC’s computer networks, the defendants used a series of targeted cyber-attacks, including directory traversal attacks, phishing attacks, and infecting computers with malware. Once the defendants had access to the test filings on the EDGAR system, they stole them by copying the test filings to servers they controlled. For example, between May 2016 and October 2016, the defendants extracted thousands of test filings from the EDGAR servers to a server they controlled in Lithuania.
Ieremenko was previously charged in a hacking and securities fraud scheme in an indictment in the District of New Jersey. That indictment charged Ieremenko with being part of a large-scale, international conspiracy to hack the computer systems of three newswire organizations and steal press releases containing confidential non-public financial information relating to hundreds of companies traded on the NASDAQ and NYSE from three newswires. The members of the conspiracy profited from the theft by trading on the news ahead of its distribution to the investing public. The indictment unsealed today alleges Ieremenko employed some of the same methods to hack the SEC.
Radchenko recruited to the scheme traders who were provided with the stolen test filings so they could profit by trading on the information before the investing public. Armed with the stolen information, the traders profited by executing various trades in brokerage accounts they controlled. In one instance, a test filing for “Public Company 1” was uploaded to the EDGAR servers at 3:32 p.m. (EDT) on May 19, 2016. Six minutes later, the defendants stole the test filing and uploaded a copy to the Lithuania server. Between 3:42 p.m. and 3:59 p.m., a conspirator purchased approximately $2.4 million worth of shares of Public Company 1. At 4:02 p.m., Public Company 1 released its second quarter earnings report and announced that it expected to deliver record earnings in 2016. Over the next day, the conspirator sold all the acquired shares in Public Company 1 for a profit of more than $270,000.
The wire fraud conspiracy and substantive wire fraud counts with which the defendants are charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy, computer fraud conspiracy, and substantive computer fraud counts with which the defendants are charged carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Craig Carpenito credited special agents of the U.S. States Secret Service, under the direction of Special Agent in Charge Mark McKevitt, Newark Field Office; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment. He also thanked the SEC’s Market Abuse and Cyber Units under the direction of Robert Cohen, Joseph Sansone, and Carolyn Welshhans, and the Justice Department’s Office of International Affairs.
The government is represented by Assistant U.S. Attorney Daniel Shapiro; Chief of the Cybercrimes Unit Justin S. Herring; Attorney-in-Charge of the U.S. Attorney’s Office in Trenton Nicholas Grippo; Special Assistant U.S. Attorney Lynn O’Connor; and DOJ Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Toledo men charged in federal court for stealing dozens of guns in firearms store burglaryRead the Press Release
Two Toledo men were charged in federal court after allegedly stealing dozens of guns from a firearms store in Oregon, Ohio.
Emmanuel Riley, 27, and Sevario Whitaker, 36, were each charged with theft from a federal firearms licensee and possession of a stolen firearm.
“These defendants are accused of breaking into a store in the middle of the night and stealing dozens of firearms,” U.S. Attorney Justin E. Herdman said.
“There is no place in our society for those who use firearms for violent purposes, including those who steal firearms to further their criminal pursuits,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at the federal, state, and local levels to bring those individuals to justice.”
According to an affidavit filed in the case:
A federal firearms licensee doing business as Towers Armory was burglarized on November 19, 2018. Approximately 46 firearms, six suppressors and four gun bags were missing from the store. Video surveillance from the store showed two men entered the store at approximately 3:24 a.m. after gaining access through the ventilation system on the roof and began removing firearms. They returned to the store several times in the early morning hours and continued removing firearms.
Investigators obtained additional footage from a nearby business that showed the two men entered a Toyota Camry and drove away. A Toledo police detective recognized the vehicle as one that was used by Riley.
The vehicle was towed from Riley’s mother’s house and Oregon police executed a state search warrant. Inside the vehicle they recovered gloves, a hat, a face mask and Friday the 13th-style mask consistent with what the burglars on the store surveillance footage were wearing. Whitaker was arrested on an outstanding warrant and also found to be wearing a sweatshirt consistent with what one of the burglars was wearing.
DNA testing revealed Whitaker’s DNA could not be excluded from a red pry bar left behind at the burglary scene and the DNA of both men could not be excluded from DNA taken from the face mask recovered from the Camry.
A search of cell tower records indicates both Riley and Whitaker’s phones connected with a cell tower within one mile of the firearms store around the time of the burglary.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oregon Police Department and the Toledo Police Department. It is being prosecuted by Assistant U.S. Attorney Matthew Simko.
A charge is only an accusation 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.
Texas Sex Offender Sentenced to 35 Years in Prison for 'Sextorting' Minors in Eight States; 28 Minors in Central IllinoisRead the Press Release
PEORIA, Ill. – A northeastern Texas man, Mark P. Barnwell, has been ordered to serve 35 years in prison for producing child pornography in 2016 and threatening minor victims in Illinois and seven other states while he was required to register as a sex offender. U.S. District Judge Joe Billy McDade sentenced Barnwell on Jan. 9, 2019, to 25 years for production of child pornography to be followed by 10 years for having committed the crimes while he was required to register as a sex offender. Barnwell was ordered to remain on supervised release for the remainder of his life after he completes the 35-year prison term.
According to court documents and admissions made in court, Barnwell, 36, lived in a shed behind a relative’s house in Whitehouse, Texas. Barnwell’s victims included minor-aged girls, including 28 from Central Illinois communities, and victims from California, Iowa, Mississippi, Nevada, Texas, Washington, and West Virginia.
Barnwell entered his pleas of guilty on Aug. 29, 2018. Barnwell admitted that while he was a registered sex offender, he exploited minors online by using false personas on Facebook. Barnwell controlled multiple female-presenting profiles which he used to contact female Facebook users, including minors, and advertised a modeling opportunity he claimed would pay up to thousands of dollars per photo shoot.
At Barnwell’s urging, the minors who accepted the offer then took, and sent to him, photographs which they believed were being produced for the purposes of a modeling portfolio. The minor victims believed they would be paid by cash, check, or direct deposit once they completed the modeling portfolio process. At Barnwell’s explicit direction, the photographs taken by the minors progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once he obtained compromising images, Barnwell threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with his demands for additional images. In total, Barnwell used this scheme to obtain nude photographs from 43 minor victims located in nine judicial districts across eight states.
In addition to the videos and images related to sexual exploitation of children on Barnwell’s devices, law enforcement authorities found multiple videos captured by Barnwell, including several where he filmed up women’s skirts in public or attempted to do so, and a large number of videos where Barnwell surreptitiously filmed women using public bathrooms. Authorities also discovered what is believed to be the hidden camera he used to capture the videos.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Vital assistance was provided by the United States Attorneys’ offices for the Central District of California, Southern District of Mississippi, District of Nevada, Eastern District of Texas, Northern District of Texas, Western District of Washington, Northern District of Iowa, and Southern District of West Virginia. The case was prosecuted by Assistant U.S. Attorneys Ronald Hanna and Katherine Legge of the Central District of Illinois, Peoria Division, and Trial Attorney William Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tacoma Man Sentenced to Four Years in Prison for Dealing Drugs on the Dark WebRead the Press Release
A 31-year-old Tacoma, Washington man was sentenced today to four years in prison and three years of supervised release for his scheme to distribute MDMA and LSD on the dark web, announced U.S. Attorney Annette L. Hayes. TRAVIS PHILLIPS, was identified in April 2017, as a drug vendor on the dark web. At the sentencing hearing, U.S. District Judge Richard A. Jones noted that PHILLIPS was caught with more than 8600 tabs of MDMA, as well as guns. “Every time that you sold MDMA, that could be the start of a downward cycle for a young person,” Judge Jones said. “When you have firearms and drugs the reason is you are fearful someone will come after you.”
“Drug dealing on the dark web is the new drug dealing frontier,” said U.S. Attorney Annette L. Hayes. “Those too frightened to make a face-to-face purchase may feel emboldened to purchase via the web, expanding the circle of those who fall prey to the scourge of drug addiction. Dark web drug dealers should know they are not safe – they will be found and held to account just like anyone else peddling dangerous drugs in our communities.”
According to records filed in the case, in April 2017, the Dutch National Police alerted U.S. authorities of a shipment of 7000 tablets of MDMA headed to a private mail facility in Renton. Law enforcement seized the drugs and left the box for the recipient. The package had been shipped to a fake name. On May 2, 2017, PHILLIPS arrived to pick up the package –he had a young child in his car. Law enforcement followed PHILLIPS to his home and ultimately detained PHILLIPS. PHILLIPS allowed law enforcement to search his car and home. Agents seized MDMA powder, 155 hits of LSD, psilocybin mushrooms, fake ID and a semi-automatic handgun and rifle. PHILLIPS had also been investigated for internet drug dealing in 2016 in California.
PHILLIPS pleaded guilty in May 2018.
The case was investigated by Homeland Security Investigations and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Thomas Woods and Special Assistant United States Attorney Joseph Silvio. Mr. Silvio is an attorney with Homeland Security Investigations specially designated to prosecute international trafficking cases in federal court.
Man Subject to Victim Protective Orders Charged with Federal Gun CrimesRead the Press Release
OKLAHOMA CITY – CHAD WAYNE KASPEREIT, 34, of Oklahoma City, has been charged with one count of lying on a federal form to purchase firearms, as well as two counts of possessing a firearm while subject to a victim protective order, announced Robert J. Troester of the U.S. Attorney’s Office. An indictment returned by a federal grand jury on December 4, 2018, was unsealed today after Kaspereit’s arrest.
According to Count 1 of the indictment, Kaspereit made a materially false statement on Bureau of Alcohol, Tobacco, Firearms & Explosives Form 4473 when he falsely represented that he was not subject to a victim protective order. He allegedly knew when he completed the form that he was subject to such an order in Stephens County, Oklahoma. He is alleged to have made the false statement on December 7, 2017, at Academy Store 246 in Yukon, Oklahoma, before he purchased a Taurus Judge .45 caliber revolver and a Taurus PT 738 .380 pistol. Form 4473, entitled Firearms Transaction Record, is required of individuals purchasing firearms from federally licensed firearms dealers.
Counts 2 and 3 charge Kaspereit with the felony of possessing a firearm while subject to a victim protective order. Count 2 alleges he possessed the Taurus Judge .45 caliber revolver and the Taurus PT 738 .380 pistol between December 7, 2017, and February 26, 2018, when he was subject to the Stephens County protective order. Count 3 alleges he possessed the Taurus PT 738 .380 caliber pistol on October 16, 2018, when he was subject to a separate victim protective order in Cleveland County, Oklahoma.
If convicted, Kaspereit faces on each count up to ten years in prison, in addition to a fine of up to $250,000. He would also be subject to up to three years of supervised release after imprisonment.
These charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the Cleveland County District Attorney’s Office. Prosecuted by Assistant U.S. Attorney K. McKenzie Anderson, this case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
The public is reminded that these charges are merely allegations and that Kaspereit is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Lincoln Man Sentenced for Production of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Randall Alan Hughes, 58, of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 38 years in prison by Chief United States District Judge John M. Gerrard, for production of child pornography. After serving his prison sentence, Hughes will then be required to be on supervised release for the remainder of his life and register as a sex offender.
In 2017, the Department of Homeland Security received information that an ISP subscriber who resided in Lincoln, Nebraska was uploading child pornography in a chat room. A federal search warrant was served at Hughes’s residence in Lincoln, for evidence relating to production, distribution and possession of child pornography. As a result of the search, cellular telephones and other computer storage media were seized for forensic analysis and investigators found evidence that proved Hughes has been producing child pornography involving prepubescent minor victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Department of Homeland Security.
Last of Four Michigan Men Sentenced on Federal Charges in Connection with Jared the Galleria of Jewelry RobberyRead the Press Release
St. Louis, MO – Robert Scott was sentenced today to 65 months for his part in the robbery of Jared the Galleria of Jewelry on Monday, December 4, 2017.
According to court records, on December 4, 2017, at approximately 8:21 p.m., Robert Scott and three co-defendants, dressed in clothing intended to disguise their identities, entered the jewelry store, Jared the Galleria of Jewelry, in Richmond Heights, Missouri. While a co-defendant held the door, Scott and two other co-defendants armed with hammers, yelled for the store employees to get down. Using the hammers to smash the glass display cases that showcased jewelry, the defendants grabbed loose diamonds and watches. Scott, along with the three others, then fled. However, due to the presence of police officers in the area on an unrelated incident, the four robbers were not able to reach their getaway driver and were quickly apprehended. Grove was arrested at a nearby business behind the Boulevard St. Louis parking garage. The diamonds and watches were recovered from a backpack carried by one of the co-defendants which were valued at approximately $60,000.
Co-defendants Tyran Gray, Darrell Lee and Xavier Grove were all previously sentenced – 42 months; 36 months; and 34 months, respectively.
The case was being investigated by the Richmond Heights Police Department and Federal Bureau of Investigation. Assistant United States Attorney John Ware handled the case for the U.S. Attorney’s Office.
Jury Convicts Two Cousins of Armed Bank RobberyRead the Press Release
RICHMOND, Va. – A federal jury convicted two cousins today on charges of aiding and abetting armed bank robbery and brandishing a firearm in furtherance of a crime of violence, in addition to convicting one cousin of being a felon in possession of a firearm.
According to court records and evidence presented at trial, John Campbell, 45 of Richmond, and Alhakka Campbell, 45, of Knightdale, North Carolina, stormed into a Wells Fargo Bank in Henrico shortly after the bank opened on Nov. 17, 2017. While John Campbell threatened employees with a firearm, Alhakka Campbell vaulted the teller counter, removing approximately $5,197 in cash from teller drawers and putting it in a black bag. The cousins then fled the bank in a stolen pickup truck that they later abandoned. When Alhakka Campbell removed the cash, he unknowingly grabbed two GPS tracking devices, which broadcast the location of the stolen currency to law enforcement. Law enforcement immediately responded to the location of the GPS trackers, leading to the arrest of both men, and the recovery of the firearm used by John Campbell during the robbery.
The Campbell are scheduled for sentencing on April 18. Each face a statutory maximum of 25 years for the bank robbery conviction, plus a mandatory consecutive sentence of at least 5 years for using or carrying a firearm in relation to the bank robbery. John Campbell will also be sentenced for possessing a firearm after being convicted of a felony offense, which carries a statutory maximum of 10 years. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and MaryJo Thomas, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the verdict. Assistant U.S. Attorneys Michael Gill and Gabrielle Michalak are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-124.