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Thursday 15 November 2018
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that GERMAN ALFREDO MOLINA-LARA, age 35, a citizen of Honduras, pleaded guilty to a one-count Bill of Information alleging illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, MOLINA-LARA reentered the United States on or about August 26, 2018, after having been previously removed therefrom on or about June 12, 2008.
MOLINA-LARA faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for November 14, 2018.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Greenville Man Sentenced to 10 Years in Federal Prison for Transporting a Woman for ProstitutionRead the Press Release
Greenville, South Carolina---- United States Attorney Sherri A. Lydon announced today that Patrick Rashad Durham, aka “Pat Pat,” 29, of Greenville, South Carolina, was sentenced to 10 years in federal prison for transporting an individual for the purposes of prostitution.
Evidence presented to the court showed that in 2014, Durham facilitated the prostitution of a woman from South Carolina to North Carolina and Florida. Durham severely assaulted the victim on at least ten occasions. He has prior convictions for Possession with Intent to Distribute Crack Cocaine, Strong Arm Robbery, Criminal Domestic Violence, and Assault and Battery 3rd Degree.
United States District Judge Bruce Howe Hendricks sentenced Durham to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system. Durham will also be required to pay $10,000 in restitution for the victim, which was ordered as forfeiture.
The case was investigated by the FBI. Assistant United States Attorneys Jamie Lea Schoen and Carrie Fisher Sherard prosecuted the case.
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Four Mexican Nationals with Prior Deportations Are Sentenced for Illegal ReentryRead the Press Release
CHARLOTTE, N.C. – Four Mexican nationals were sentenced today in federal court in Charlotte for illegally reentering the United States after being deported, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over the sentencings. The four defendants will also be subject to deportation proceedings upon completion of their sentences.
Eli Vega Delao, 39, a Mexican national formerly residing in Charlotte, was sentenced to 30 months in prison and two years of supervised release. On March 27, 2018, Delao pleaded guilty to unlawful reentry after a felony conviction. According to court records, Delano has prior state convictions, including a drug-related conviction in Milwaukee, Wisconsin, and a 2015 federal illegal reentry conviction in Greensboro, N.C. Immigration judges have ordered Delao’s removal from the United States on at least nine occasions. Judge Conrad gave Delao a sentence at the high end of the applicable Sentencing Guidelines range, and stated that the defendant, “had not shown respect for immigration rules and the laws of the United States and needed adequate deterrence to avoid his illegal returning to this country.”
Carlos Arturo Aguilar Galeno, 43, of Mexico, was sentenced to 12 months in prison and one year of supervised release. Galeno was arrested in Gaston County in May 2018, for Methamphetamine Trafficking and related charges. Court records show that law enforcement determined that Galeno was in the country illegally. Galeno has prior state and federal convictions, including a federal drug trafficking conspiracy conviction in Tucson, Arizona. According to court records, Galeno had been previously removed from the United States to Mexico eight times, and at the time of his recent arrest an order for Galeno’s deportation or removal was outstanding. Galeno pleaded guilty to illegal reentry of a deported alien on August 2, 2018.
Hardoldo Garcia Racancoj, 44, of Mexico and residing in Charlotte, was sentenced to eight months in prison. Racancoj pleaded guilty on April 20, 2018, to unlawful reentry by a deported alien. At the time of his arrest, an order for Racancoj’s deportation or removal was outstanding.
Judge Conrad also sentenced Jose Jesus Ramirez Orduna, 40, of Mexico, to 10 months in prison and one year of supervised release. Orduna was arrested in Union County on April 18, 2018. Prior to that, Orduna had been arrested and removed from the United States on at least two occasions. Orduna pleaded guilty to one count of reentry of a deported alien on August 3, 2018.
In making todays’ announcement, U.S. Attorney Murray thanked the U.S. immigration and Customs Enforcement’s Enforcement and Removal Operations in Charlotte for their assistance.
Assistant U.S. Attorney Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, prosecuted the cases.
Fort Dodge Man Pleads Guilty to Firearm OffenseRead the Press Release
A man who illegally possessed a firearm pled guilty November 15, 2018, in federal court in Sioux City.
Torre Ashton Mosley, 25, from Fort Dodge, Iowa, was convicted of possession of a firearm by a felon.
At the plea hearing, Mosley admitted that in November, 2017 he possessed a .40 caliber Glock for protection. Mosley further admitted to being dealer of cocaine and marijuana. Mosley was previously convicted of possession and/or introduction of contraband into a detention facility, in the Iowa District Court for Webster County, on or about September 21, 2015.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Mosley remains free on bond previously set. Mosley faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Mikala M. Steenholdt and was investigated by the Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Iowa Department of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3019. Follow us on Twitter @USAO_NDIA.
Former executive director of Collinwood and Nottingham Villages Development Corporation arrested and charged with embezzling $172,000 from the nonprofitRead the Press Release
A former executive director of a Cleveland community development corporation was arrested this morning for embezzling more than $172,000 from the Collinwood and Nottingham Villages Development Corporation.
Tamiko Parker, 46, of Cleveland, is scheduled to appear on Thursday at 2 p.m. in U.S. District Court in Cleveland. She has been indicted on one count of theft of federal funds.
Parker served as executive director of Collinwood and Nottingham Villages Development Corporation, a nonprofit organization that was to acquire, develop and lease property on the northeast side of Cleveland.
Parker misused various accounts through a variety of schemes including making unauthorized cash withdrawals, having checks issued to her and using debit and credit cards to pay her personal expenses. This took place between September 2014 through February 2016, according to court documents.
Parker used the community development corporation’s debit card to make purchases at Harley Davidson, the Horseshoe Casino, Victoria’s Secret and in Atlantic City and Las Vegas. She used the community development corporation’s credit card to purchase appliances at Home Depot for her home. Parker collected cash rental payments from tenants of the nonprofit and deposited cash into her personal account, according to court documents.
“This defendant betrayed the trust placed in her by a city and a community,” U.S. Attorney Justin Herdman said. “Instead of using her position to spur redevelopment, she used it as a personal piggy bank to gamble and travel.”
“Ms. Parker stole hundreds of thousands of dollars planned for economic development in the community,” said FBI Special Agent in Charge Stephen D. Anthony. “The only thing Ms. Parker was developing was her lavish lifestyle. She will now be held accountable for being a thief.”
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, especially when the programs involved should have been used to help our neediest families,” said Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General. “It is our continuing core mission to work with our Federal law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.”
“Those funds were designated to improve the lives of the residents and business owners in the Collinwood neighborhood,” said Cuyahoga County Prosecutor Michael O’Malley.
This case was investigated by the FBI, the U.S. Department of Housing and Urban Development -- Office of Inspector General. and Cuyahoga County Prosecutor’s Office and is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Carmen Henderson.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines, which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is a charge and 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.
Former Tucson School Director Sentenced to Prison for Embezzling from School, StudentsRead the Press Release
TUCSON, Ariz. – On Nov. 15, 2018, Robert Alan Knapp, 71, a former director of HDS Truck Driving Institute (HDS) in Tucson, Ariz., was sentenced to 48 months in prison by U.S. District Court Judge Rosemary Màrquez. Knapp had previously pleaded guilty to bank fraud and federal student aid fraud.
In his plea agreement, Knapp admitted that while employed by HDS between 2008 and 2015, he stole over $905,000 by intercepting or fraudulently generating more than 400 checks payable to third parties that he deposited to a bank account he owned after adding forged indorsements. Most of the stolen checks were payable to HDS’s students, and represented either federal student aid received from the Department of Education that should have been forwarded to the students, or funds taken from HDS to pay fictitious obligations that Knapp had created in HDS’s books and records. The Court also ordered Knapp to pay restitution to all identified victims, and to make monthly restitution payments during a 5-year term of supervision to follow his release from prison.
The investigation in this case was conducted by the Department of Education, Office of Inspector General and the Pima County Sheriff’s Department. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR 17-1275-TUC-RM (JR)
RELEASE NUMBER: 2018-156_Knapp
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Former Tax Preparer Sentenced to Three Years for Identity Theft-Related OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Celia Yvette Gamet to three years in federal prison for theft of government money and aggravated identity theft.
Gamet had pleaded guilty on March 23, 2018.
According to court documents, from 2012 until 2016, Gamet was a tax preparer for HK Tax Service in Orlando. During that period, Gamet used her position as a tax preparer to steal personal identification information of others, some of whom were dependents of HK Tax’s clients. Unbeknownst to the HK Tax clients, and without their authority, Gamet used many of the dependents’ personal identification information to file false tax returns.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Former Superintendent of Chesterfield Township Sentenced to Prison for BriberyRead the Press Release
Former Chesterfield Township Supervisor, Michael Lovelock, 59, of New Baltimore, Michigan, was sentenced to 24 months in prison today based on his conviction for conspiracy to commit bribery, announced U.S. Attorney Matthew Schneider.
Schneider was joined in the announcement by Timothy R. Slater, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Lovelock was convicted of conspiring with Rizzo Environmental CEO Charles B “Chuck” Rizzo to accept $30,000 in cash bribes from Rizzo between 2010 and 2016. The bribes were paid by Rizzo in exchange for favorable treatment from Lovelock in connection with Rizzo’s municipal garbage-hauling contract with the township.
Lovelock is one of twenty defendants charged in the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The sentence for Lovelock was reduced based on his cooperation with the government against Rizzo and others.
“Public officials who desecrate their elected office by selling out for bribes from contractors are among the most deserving of federal prosecution and will be held to account for each and every one of their corrupt misdeeds,” stated United States Attorney Matthew Schneider.
“Public officials who misuse their position of trust for personal gain, undermine the integrity of their office and deny honest services to the residents they purport to serve” said Timothy R. Slater, Special Agent in Charge, Detroit Division of the Federal Bureau of Investigation. "The FBI led Detroit Area Public Corruption Task Force will continue to aggressively investigate cases involving any federal, state, or local public officials who solicit and accept bribes in exchange for official acts and will work with our partners to ensure that those who violate their obligation to the public are held accountable.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, Steven Cares, and Adriana Dydell.
Former Shakopee Superintendent Pleads Guilty to Corruptly Soliciting A BribeRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of RODNEY KEITH THOMPSON, 53, for corruptly soliciting a bribe. THOMPSON entered his guilty plea earlier today, before Judge Susan Nelson in U.S. District Court in St. Paul, Minnesota. He was charged via felony information on November 13, 2018.
According to the defendant’s guilty plea and documents filed in court, THOMPSON used his position and authority as then Superintendent of the Shakopee School District, to obtain personal benefits from a company interested in being awarded contracts with the Shakopee School District. THOMPSON solicited home improvement projects, personal travel, and attendance at sporting events in exchange for contracts with the School District.
“Mr. Thompson was a trusted member of the Shakopee community. Parents, teachers, staff, and students trusted him to act with integrity to make the right decisions in the best interest of the Shakopee schools,” said United States Attorney Erica H. MacDonald. “He chose to violate that trust and act on what served his own interest. With his guilty plea today, I hope the Shakopee community has a sense of closure.”
"The defendant held a position of public trust with an obligation to act in the best interest of Shakopee schools, staff, and students he was responsible for," said FBI Special Agent in Charge Jill Sanborn. "Sadly, the defendant chose to violate this sacred trust by making the conscious decision to steal and deprive teachers of the very resources necessary to provide a quality education. The FBI remains committed to working with our law enforcement partners to investigate public corruption such as this and bring those responsible to justice."
THOMPSON’s sentencing has been scheduled for March 29, 2019, before Judge Susan Nelson, in U.S. District Court in St. Paul.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
RODNEY KEITH THOMPSON, 53
Shakopee, Minn.
Convicted:
- Corrupt Solicitation of a Bribe, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Owner of Stenotype Institute Pleads Guilty to Failing to Refund Federal Student Aid FundsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Gloria Wiley (72, Dansville, KY) has pleaded guilty to a charge of failure to refund federally insured student aid funds, commonly referred to as Stafford Loans and Pell Grants. Wiley faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set. As part of her plea agreement, Wiley has agreed to pay nearly $300,000 in restitution to affected students, the U.S. Department of Education, and the Department of Veterans Affairs.
According to the
plea agreement , Wiley was the owner of Stenotype Institute of Jacksonville, Inc.—a Jacksonville-based stenography school that provided professional education to individuals pursuing stenography careers, including court reporting and medical transcription. Stenotype was authorized to receive federal student aid funds from the U.S. Department of Education on behalf of its students to cover tuition, fees, and living expense stipends. Excess funds drawn on behalf of students were required to be refunded to the U.S. Department of Education or to the student within 45 days.Beginning in June 2015, instead of refunding the excess refunds, Stenotype began tracking the amounts owed in a spreadsheet. Meanwhile, Wiley continued to draw funds from the school for her personal use. In total, Wiley and Stenotype held approximately $290,000 in refunds due to the U.S. Department of Education and to former students, and $9,000 due to the Department of Veterans Affairs, none of which have ever been paid. Stenotype ceased operations in March 2016, shortly after a program review by the U.S. Department of Education.
This case was investigated by the U.S. Department of Education Office of Inspector General and the Department of Veterans Affairs Office of Inspector General. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Former New Jersey Corrections Officer Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A former officer with the N.J. Department of Corrections was sentenced today to 60 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Salamak, 39, of Lodi, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with receipt of child pornography. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Salamak used email to seek and obtain images of child pornography, including images of prepubescent children.
In addition to the prison term, Judge McNulty sentenced Salamak to 10 years of supervised release.U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Brian Neary Esq., Hackensack, New Jersey
Former Manager of North Kenner Post Office Charged with Misappropriation of Postal FundsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced yesterday that RYAN S. CORTEZ, former Supervisor and Manager of Customer Service Operations at the North Kenner Post Office located at 390 West Esplanade Avenue, was charged in a Bill of Information for Misappropriation of Postal Funds. CORTEZ, age 46, of Des Allemands, Louisiana, was arrested in October 2018 by special agents with the United States Postal Service, Office of Inspector General (“Postal OIG”).
According to court records, Postal OIG agents were notified by PayPal and eBay regarding significant quantities of U.S. Postal stamps being sold by CORTEZ on eBay. A subsequent investigation by Postal OIG revealed that, as manager, Cortez had increased the North Kenner Post Office’s reserve stamp stock by more than $600,000. Subpoenaed records from Cortez’s Regions Bank account revealed substantial deposits, including more than $58,000 in a one-month period in the summer of 2018.
During their investigation, Postal OIG agents determined CORTEZ withdrew thousands of dollars on a regular basis at the Harrah’s Casino in New Orleans. Harrah’s records revealed CORTEZ lost over $667,000 since 2011 and lost over $220,000 in 2017. Postal records indicate CORTEZ earned an annual salary of $70,818.
On October 10, 2018, Postal OIG special agents executed a federal search warrant issued by a federal magistrate judge at CORTEZ’s residence in Des Allemands.
In total, Postal records reveal that CORTEZ stole over $630,000 in U.S. stamps and sold them on eBay. According to Postal authorities, CORTEZ’s illegal activities constitute one of the largest internal Postal thefts by a Postal Service employee in the history of the U.S. Postal Service.
U. S. Attorney Strasser reiterated that a Bill of Information is merely a charge and that the guilt of a defendant must be proven beyond a reasonable doubt.
If convicted, CORTEZ faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
This case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Former IRS Employee Sentenced to Prison for Aggravated Identity TheftRead the Press Release
A former employee for the Internal Revenue Service (IRS) was sentenced to serve 24 months in prison for aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Byung J. Pak for the Northern District of Georgia.
According to court documents, Stephanie Parker worked for the IRS as a Contact Representative in Atlanta, Georgia. Between September 2012 and March 2013, taxpayers called into the IRS for assistance, and Parker handled the taxpayers’ inquiries. During the calls, Parker obtained the taxpayers’ Social Security numbers and addresses. On at least five occasions, Parker used the taxpayers’ personal information to electronically file fraudulent tax returns in their names without their authorization. Parker directed the fraudulent tax refunds to bank accounts controlled by her friends. Parker, in turn, had the money withdrawn from at least one of those accounts, deposited a portion of the money into her own bank account, and used it for personal expenses.
In addition to the term of imprisonment imposed, Parker was also ordered to serve one year of supervised release and to pay $5,964 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Pak commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Alexander Effendi and Michael Boteler of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Cable Show Hunter Indicted on Charges of Poaching DeerRead the Press Release
PEORIA, Ill. – A grand jury today indicted an East Peoria, Ill., man, who self-produced and starred in his own cable hunting show, on charges that he illegally killed more deer than permitted in Indiana. The indictment against Christopher Brackett, 41, whose program, “Fear No Evil,” aired on the Outdoor Channel, alleges that Brackett engaged in illegal hunting in 2013 by shooting and killing two bucks in Indiana and transporting one buck to Illinois. At the time of the alleged offenses, Indiana law allowed hunters with the appropriate permit to kill one antlered deer per season.
According to the indictment, Brackett filmed a hunt in December 2013 in southern Indiana for an episode of his show that featured him killing an 11-point deer which he nicknamed the “Unicorn Buck.” The indictment alleges that on Dec. 21, 2013, Brackett first shot and killed a smaller, eight-point buck before he shot the larger, 11-point buck. Brackett allegedly registered the “Unicorn Buck” with the state of Indiana under his license and transported it to Illinois. The “Unicorn Buck,” episode aired on the Outdoor Channel in the fall of 2014 with edited footage that did not show Brackett killing the first, smaller buck.
On Dec. 22, 2013, the day after both deer were shot, the indictment alleges Brackett purchased a second non-resident deer muzzleloader permit under his cameraman’s name and then registered the first, smaller buck with the permit purchased in the cameraman’s name.
The U.S. District Clerk of the Court will schedule the date for Brackett to appear for arraignment in federal court in Peoria, Ill.
If convicted, as charged, the statutory maximum penalty for each offense, conspiracy to violate the Lacey Act (count one) and a violation of the Lacey Act (count two), is up to five years in prison and fines of up to $250,000. Both offenses, as charged, are felony offenses.
The government is represented by Assistant U.S. Attorney Katherine Legge in the prosecution. The charges were investigated by the U.S. Fish and Wildlife Service with the assistance of both the Illinois and Indiana Departments of Natural Resources.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Florence Resident Sentenced to Federal Prison for Manufacturing and Passing Counterfeit MoneyRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Shanteley Latrice Howard, 33, of Florence, South Carolina, was sentenced to federal prison for conspiracy to manufacture and pass counterfeit money.
Evidence presented to the court showed that Howard was involved in a conspiracy to manufacture and pass counterfeit $100 and $50 bills in multiple states, including South Carolina and North Carolina. This conspiracy, which began in 2015, included at least nine co-conspirators who were responsible for making and passing over $100,000 in counterfeit money. Howard passed counterfeit $100 and $50 bills on multiple occasions at businesses in Florence and other locations in South Carolina.
United States District Judge R. Bryan Harwell sentenced Howard to 18 months in federal prison, to be followed by three years of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the United States Secret Service with the assistance of the Florence County Sheriff’s Office and the Florence Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Federal Jury Convicts Rochester Man of Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Andre L. Barnes, 42, of Rochester, NY, of conspiracy to sex traffic minors, sex trafficking of minors and adults by force, and transportation of girls across state lines to engage in prostitution. The charges carry a mandatory minimum sentence of 15 years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorneys Melissa M. Marangola and Craig R. Gestring, who handled the prosecution of the case at trial, stated that Barnes and co-defendant Christopher Johnson began working together in 2012 to sex traffic minors and adults by force. This lasted until the arrest of Barnes in May 2013 for assaulting one of his victims at the Gates Motel.Barnes and Johnson posted the victims on Backpage.com to advertise for clients. During the conspiracy, Barnes and Johnson recruited vulnerable girls and young women, meeting them at locations such the Department of Social Services. More than 10 girls, some as young as 15 years old, worked for them as prostitutes. Barnes was convicted of using force, fraud, and coercion to keep the girls working for him. The defendant also supplied them with heroin, crack cocaine, and ecstasy. Barnes also assaulted several girls and threatened them repeatedly with violence.
After his arrest, the defendant admitted to investigators that he was a pimp and expressed an interest in returning to that conduct upon his release from prison. Barnes admitted that he beat his girls but did not want to leave bruises on their faces because that could lead to a loss of money. Several victims and witnesses testified during the 10 day trial.
Johnson was previously convicted for his role in the conspiracy is awaiting sentencing.
The verdict is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for January 10, 2019, at 10:00 a.m. before U.S. District Judge David G. Larimer who presided over the trial.
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Federal Jury Convicts Bureau of Corrections Inmate of Possessing Prison Contraband Inside of the Alexander Farrelly Justice Complex While Two Other Inmates Plead Guilty to Possessing Prison ContrabandRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C. F. Shappert announced that a Federal jury handed down a guilty verdict against Michael Hendrickson 28, for possession of prison contraband on Wednesday, following a one-day trial. “Contraband cell phones in correctional facilities create a security threat for correctional officers, others prisoners, and potential witnesses,” said Shappert. “Contraband phones can be used by inmates to conduct criminal activities and threaten the well-being of persons housed in the facility and on the street. Possession of these items is a federal offense”.
According to trial testimony, on March 14, 2018, a Bureau of Corrections Sargent conducted a routine pat-down of Hendrickson as he entered a restricted area within the Alexander Farrelly Justice Complex. The officer identified a hard object concealed in the inmate’s clothing. The officer removed the item and discovered that it was a cellular telephone. Cellular telephones are prohibited items in the Bureau of Corrections and inmates are forbidden from possessing them under federal law.
Two other Bureau of Corrections inmates, Gamba Potter, 33, and K’Moi Corraspe, 24, previously entered guilty pleas to the same charge of possessing cellular telephones while inmates at the Bureau of Corrections. Potter entered his guilty plea on November 6, 2016, and Corraspe entered his guilty plea on October 31, 2018.
Defendants each face a maximum sentence of one year imprisonment and a fine of up to $100,000. The date for Hendrickson’s sentencing is scheduled for March 21, 2019. Sentencing for Potter is set for December 20, 2018, and January 9, 2019 for Corraspe.
These cases were investigated by the Federal Bureau of Investigations, the Virgin Islands Police Department and the Virgin Islands Bureau of Corrections. They are all being prosecuted by Assistant U.S. Attorney Everard E. Potter.
Federal Inmate Gets More Time in Prison after Exposing Himself to Female StaffRead the Press Release
Brunswick, GA – A federal inmate already serving nearly 20 years on weapons charges will serve more time behind bars after repeatedly exposing himself to female prison staff.
Bruce Ferguson, 55, was sentenced by the Honorable Magistrate Judge Benjamin W. Cheesbro to 11 additional months in prison consecutive to his current federal sentence of 225 months, said U.S. Attorney Bobby L. Christine. Ferguson was an inmate at Federal Correctional Institute Jesup, in Jesup, Ga., when he exposed himself to a female staff member.
During his time as a federal inmate, Ferguson has racked up at least 10 previous disciplinary incidents, which included seven prior incidents with similar conduct of exposing himself to female Federal Bureau of Prisons staff.
“The honorable employees at our correctional institutions work hard every day and deserve to see prosecuted those who would victimize them,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Ferguson apparently has failed to learn what most others in federal custody have: He isn’t going free until his time is up. There is no parole in the federal system, and as long as he continues to abuse the prison staff, he will continue to spend more time in their custody.”
Federal inmate abuse of female staff members has increased in recent years, with more than 850 cases of exposure in 2016, more than 1,000 in 2017 and already nearly 1,100 in the first 10 months of this year.
This case was investigated by the Federal Bureau of Prisons and the FBI. Assistant United States Attorney Marcela C. Mateo and Special Assistant United States Attorney Katelyn Semales prosecuted the case on behalf of the United States.
For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.
Federal Indictment Targets South Bay Street Gang Involved in Drug Trafficking, including Smuggling Meth into a California State PrisonRead the Press Release
LOS ANGELES – Authorities have arrested eight members and associates of the East Side Torrance street gang on federal narcotics trafficking and firearms charges stemming from an investigation that led to a number of seizures, including 20 pounds of methamphetamine that was discovered in a Torrance apartment complex.
A federal grand jury indictment targets the leadership and key members of the gang, which distributed methamphetamine and other drugs out of the South Bay and the Harbor Gateway area of Los Angeles. The indictment alleges the gang trafficked pound-quantities of methamphetamine to Colorado, and also smuggled methamphetamine and heroin into Kern Valley State Prison in Delano, California.
Various defendants allegedly possessed firearms to maintain control of their gang “territory,” to control drug trafficking, and to retaliate against rivals, the indictments allege.The seven-count indictment charges 10 defendants in a conspiracy to traffic methamphetamine, heroin and other illegal drugs. In addition to the eight arrested today, two defendants are currently in state custody.
The indictment unsealed today is the result of a three-year investigation by the FBI, the Drug Enforcement Administration and the Torrance Police Department.
“Street gangs bring the twin plagues of narcotics and violence to their neighborhoods, endangering everyone who lives there,” said United States Attorney Nick Hanna. “This case is the product of an excellent working relationship between federal and local law enforcement authorities, all of whom are committed to increasing public safety in every community.”
“Street gangs such as East Side Torrance are responsible for pushing drugs onto our streets and putting our citizens in serious danger,” said DEA Special Agent in Charge David J. Downing. “Nevertheless, the coordinated enforcement action that occurred this morning illustrates how effective our law enforcement alliances are in disrupting and dismantling these criminal organizations.”
“Today’s arrests targeted the leaders of a criminal enterprise who used firearms and the threat of violence to run a drug distribution network from the South Bay of Los Angeles to Colorado and even inside prison walls,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today’s arrests are the results of a collaborative effort among federal and local partners to target the most violent gangs that continue to plague our communities.”
“The Torrance Police Department is dedicated to working with our state and federal partners to ensure our communities are safe and that offenders are brought to justice,” said Torrance Police Chief Eve R. Irvine.
The lead defendant in the indictment – Carmen Merejil, a.k.a. “Caveman,” 52, of Carson – allegedly directed the drug trafficking operation and used his East Side Torrance gang associates to sell large amounts of methamphetamine, heroin and other drugs in the gang’s territory. Merejil also allegedly directed the trafficking of large quantities of methamphetamine to a distributor in Delta, Colorado for redistribution there. Finally, Merejil and other defendants are alleged to have packaged and smuggled controlled substances into Kern Valley State Prison, where an incarcerated East Side Torrance street gang member distributed the drugs and sent money back to Merejil and other defendants.
In March 2016, law enforcement seized more than 20 pounds of methamphetamine – along with cocaine, MDMA and other drugs – from a stash house maintained by Merejil and his associates. Authorities also intercepted nearly two ounces of methamphetamine that had been smuggled into Kern Valley State Prison. Other large quantities of methamphetamine were seized from other alleged co-conspirators at various points during the investigation, including the seizure of nearly one pound of methamphetamine by agents executing a search warrant in Colorado.
The defendants taken into custody this morning are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles. The defendants currently in state prison are expected to be arraigned in federal court in the coming weeks.
If convicted, each of the defendants would face decades in federal prison. The charge of conspiracy to distribute more than 50 grams of methamphetamine carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life without parole.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The investigation targeting the East Side Torrance gang was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration and the Torrance Police Department.
During the investigation, substantial assistance was received from the California Department of Corrections and Rehabilitation, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the Redondo Beach Police Department, the Hermosa Beach Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorneys Gregory Lesser and Shawn Andrews of the Violent and Organized Crime Section.
El sospechoso en el tiroteo en un supermercado Kroger es acusado de delitos de odio federales y delitos relacionados con armas de fuegoRead the Press Release
Gregory A. Bush, de 51 años, fue acusado formalmente hoy por un gran jurado ante cargos relacionados con un delito de odio y con armas de fuego que se basan en el asesinato por motivo de raza de dos clientes afroestadounidenses de un supermercado Kroger y el intento de asesinato de un tercero el 24 de octubre en Jeffersontown, Kentucky. La acusación formal fue anunciada por el Fiscal General en funciones Matthew Whitaker, el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal Russell Coleman, y el Agente Especial Encargado del Buró de Investigaciones Federales («FBI», por sus siglas en inglés) en Louisville, James Robert Brown, Jr.
La acusación formal de hoy le acusa a Bush de delitos de odio por disparar y matar a dos víctimas por motivos de su raza y color de piel, y por disparar a un tercer hombre por motivos de su raza y color de piel. Asimismo, la acusación formal le acusa a Bush de utilizar y descargar un arma de fuego durante y en relación con esos delitos de odio. La acusación formal alega que Bush cometió el delito tras planificación y premeditación durante bastante tiempo, que mató a más de una persona en un solo episodio delictivo y que creó, a sabiendas, un grave riesgo de muerte a otras personas presentes en la escena del delito.
La pena máxima para los cargos contenidos en la acusación formal es la cadena perpetua o la pena de muerte. El Departamento de Justicia determinará a una fecha posterior si en este caso en particular pedirá la pena de muerte.
«Los delitos alegados en esta acusación formal son horrorosos», declaró el Fiscal General en funciones Whitaker. «No podemos tolerar ni tampoco toleraremos la violencia motivada por el racismo. Emplearemos todo el peso de la ley contra estos y cualquier otro alegado delito de odio cometido contra estadounidenses de cualquier raza. Quiero dar las gracias al FBI, al Abogado de Litigios Christopher Perras y la Fiscal Federal Auxiliar Amanda Gregory por todo el arduo trabajo que ha hecho posible esta acusación formal. Hoy nos hemos dado un paso más hacia la justicia para las víctimas y sus familias y un paso más hacia ayudar a esta comunidad a intentar curarse».
«No hay lugar para violencia motivada por el odio en nuestra comunidad o en nuestra Mancomunidad [Commonwealth of Kentucky]», afirmó el Fiscal Federal Russell Coleman. «La policía federal, estatal y local están unidas en asegurar que los vecinos de Kentucky puedan ir de compras, rezar o asistir a la escuela sin tener miedo».
«Los eventos trágicos del 24 de octubre del 2018 sirven de recordatorio solemne de las razones por las que el FBI tiene como prioridad la investigación de vulneraciones de derechos civiles entre sus programas contra la delincuencia», comentó el Agente Especial Encargado del FBI en Louisville, Robert Brown Jr. «La acusación formal de hoy debe servir de recordatorio a aquellos cuyos motivos se arraiguen en el odio y que estén decididos a cometer actos de violencia que su ideología odiosa no tendrá la última palabra. El FBI, junto con el Departamento de Justicia, seguirá en ello, y ustedes serán capturados y enjuiciados con todo el peso de la ley».
«La Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos (ATF, por sus siglas en inglés) se ha comprometido a colaborar con nuestras agencias asociadas del orden público para garantizar que se haga justicia para las víctimas, sus familias y la comunidad de Louisville durante la investigación y el enjuiciamiento de este alegado delito violento tan lleno de odio», declaró Stuart Lowrey, el Agente Especial Encargado de la División de la ATF en Louisville. «Hoy, como siempre, la prioridad actual de la ATF es reducir la delincuencia violenta y garantizar la seguridad de nuestras comunidades».
Una acusación formal es sencillamente una acusación y al acusado se lo considera inocente mientras no se pruebe su culpabilidad.
Este caso ha sido investigado por la Oficina del FBI en Louisville y la División Local en Louisville de la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos y está siendo enjuiciado por Christopher J. Perras, Abogado de Litigios de la División de Derechos Civiles, y Amanda Gregory, Fiscal Federal Auxiliar para el Distrito Occidental de Kentucky.
Anexo(s):
Download Bush Indictment
Eastside Hollygrove Drug Traffickers Plead GuiltyRead the Press Release
NEW ORLEANS – The U.S. Attorney’s Office, EDLA announced yesterday that DONALD MARCELIN, a/k/a “Snook,” a/k/a “Black,” a/k/a “Golfer,” age 41, and LANCE STOVALL, a/k/a “Lele,” a/k/a “Allen,” age 28, both of New Orleans, pleaded guilty today to conspiring to distribute and to possess with intent to distribute heroin and fentanyl.
On MARCELIN’s drug conspiracy count, MARCELIN is facing a mandatory minimum sentence of 10 years’ imprisonment, a maximum sentence of life, a possible fine of up to $10,000,000, and at least five years of supervised release upon his release from prison. On STOVALL’s drug conspiracy count, STOVALL is facing a mandatory minimum sentence of 5 years’ imprisonment, a maximum of 40 years’ imprisonment, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison.
U.S. District Judge Sarah S. Vance will sentence MARCELIN and STOVALL on March 13, 2019.
The U.S. Attorney’s Office praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
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East Texans Sentenced for Methamphetamine TraffickingRead the Press Release
TYLER, Texas – Two East Texas men have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Keyonta Monquan Johnson, 24, of Reklaw, Texas, pleaded guilty on Mar. 22, 2018, to distribution of methamphetamine near a playground and was sentenced to 100 months in federal prison on Oct. 4, 2018, by U.S. District Judge Ron Clark.
Devante Lee Johnson, 26, of Jacksonville, Texas, pleaded guilty on May 22, 2018, to possession with intent to distribute methamphetamine on premises where children are present and was sentenced to 180 months in federal prison today by U.S. District Judge Thad Heartfield.
Both defendants were indicted by a federal grand jury on Oct. 18, 2017.
This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby and investigated by the Federal Bureau of Investigation, Cherokee County Sheriff's Office, Texas Department of Public Safety, and Jacksonville Police Department.
Dunkirk Man Sentenced for Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Fred Santiago, 30, of Dunkirk, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine, was sentenced to serve 70 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between July 2016 and May 2, 2017, the defendant conspired with co-defendant Michael Pacheco to distribute kilogram quantities of cocaine in and around the Western District of New York. Santiago obtained the cocaine from a source of supply in New York City for sale and distribution to others.
On May 2, 2017, a state search warrant was executed at the defendant’s residence on Lincoln Avenue in Dunkirk. Approximately 640 grams of cocaine was seized from a safe, and approximately 39 grams of marijuana was seized from the kitchen counter. In addition, law enforcement officers seized four drug scales, $44,000 in cash, $2,000 in money orders, a heat sealer, plastic bags, and a metal kilo drug press.
Michael Pacheco was previously convicted and sentenced to serve 18 months in prison.
Today’s sentencing is the culmination of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Evans Police Department, under the direction of Chief Douglas Czora; the Dunkirk Police Department, under the direction of Chief David Ortolano; and the Chautauqua County Drug Task Force, under the direction of Sheriff Joseph Gerace.
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Duffield Man Sentenced for Manufacturing Marijuana, Felon in Possession of a FirearmRead the Press Release
Abingdon, VIRGINIA – A federal judge yesterday sentenced a Duffield man, who was on supervised release for a previous federal conviction after serving a lengthy state prison sentence for arson, to a total of 14 years in federal prison for marijuana and illegal firearms charges, United States Attorney Thomas T. Cullen announced today.
Claude Gene Sloan, 76, pleaded guilty in August 2018 to one count of manufacturing and possessing with the intent to distribute more than 100 marijuana plants, one count of distribution of marijuana, and one count of being a previously convicted felon illegally in possession of a firearm. In 2000, Sloan was convicted of manufacturing marijuana. He was released from federal prison in 2014 and was on federal supervised release at the time of these offenses.
“As this case illustrates, we are committed to working with our federal, state, and local partners to target violent and recidivist offenders within specific communities and send them to federal prison,” U.S. Attorney Cullen said today. “We are particularly grateful for the hard work of the Scott County Sheriff’s Office and the Southwest Drug Task Force in making their community safer.”
Evidence was presented at sentencing that Sloan began growing and selling marijuana within two years of his last release from prison. In addition, an audio recording was introduced in which Sloan asked another person to burn down Sloan’s neighbor’s home.
United States District Court Judge James P. Jones imposed a sentence of imprisonment for a term of 12 years on the instant charges to be followed by an additional two-year term of imprisonment for Sloan’s violation of his terms of supervised release.
The investigation of the case was conducted by the Scott County Sheriff’s Office, Southwest Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Dual/Iranian Canadian National Sentenced for International Money LaunderingRead the Press Release
BOSTON – A dual citizen of Iran and Canada was sentenced yesterday in federal court in Boston for international money laundering.
Omid Mashinchi, 35, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison, one year of supervised release, ordered to pay a $20,000 fine, and a personal money judgment of approximately $7,616. In July 2018, Mashinchi pleaded guilty to five counts of international money laundering. He was charged in a sealed indictment in January 2018 and arrested in April 2018, when he flew to the United States; he has been in federal custody since.
On five occasions in 2017, Mashinchi transferred funds from a bank in Vancouver, British Columbia, Canada, to a bank in Boston knowing that the money was derived from drug trafficking. On Jan. 28, Mashinchi transferred $37,794; on July 28 he made two transfers, one for $49,915 and another for $49,445; and on Aug. 3, he made two more transfers, one for $49,930 and another in the amount of $49,645.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Doctor and Former Employee Indicted for Conspiring to Distribute AdderallRead the Press Release
BOSTON – An Uxbridge doctor and her former employee were arrested today and charged in federal court in Boston in connection with a federal drug conspiracy involving the amphetamine Adderall.
Leslie Caraceni M.D., 56, of Uxbridge, was indicted on one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall. Rene Ruliera, 51, of Southborough, was indicted on one count of conspiracy to distribute and to possess with intent to distribute Adderall, and four counts of distributing and possessing with intent to distribute Adderall. Caraceni and Ruliera were arrested today and will appear in federal court in Boston this afternoon.
According to the indictment unsealed today, between March 2016 and February 2018, Caraceni and Ruliera conspired with one another and others to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice.
Each charge provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Kenneth Paulhus made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit Doctor, Office Manager and Patient Recruiter Charged with Illegal Distribution of Prescription DrugsRead the Press Release
An indictment was unsealed today charging Dr. Otis Leon Crawford, D.O., and two other individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Timothy Plancon of the Drug Enforcement Administration, Detroit Division and Special Agent in Charge Lamont Pugh, of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Charged in the indictment are:
Otis Leon Crawford, 80, of Detroit
Debbie Ann Taylor, 37, of Detroit
Earnie Ronnie-Jaew Taylor, 49, of River Rouge
The indictment alleges that in July of 2016, Dr. Crawford and Debbie Ann Taylor opened a medical clinic called Doctors Creative Care, located at 16125 Mack Avenue in Detroit. Dr. Crawford was the only doctor associated with the clinic and Debbie Ann Taylor was the office manager. Debbie Taylor scheduled appointments, collected payments, and accompanied patients into the examination room with Dr. Crawford. Although she had no medical license or training, she recommended that particular patients be prescribed particular controlled substances, in particular dosage units. With little or no medical examination, Dr. Crawford wrote and signed prescriptions for various opioids, as well as other drugs with substantial street value, such as Xanax, Soma, Valium and Promethazine/codeine cough syrup. It is further alleged that Debbie Taylor’s brother, Earnie Ronnie-Jaew Taylor, recruited fake patients from his neighborhood in River Rouge who would visit Dr. Crawford and receive unnecessary prescriptions for opioids and other controlled substances. Once the prescriptions were filled, Earnie Taylor took possession of the controlled substances for future illegal distribution. According to the Indictment, the top ten prescribed controlled substances prescribed by Dr. Crawford, from June 2015 to date, had a conservative street value in excess of $2,556,550.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents of the DEA and HHS. The case is being prosecuted by Assistant U.S. Attorney John Engstrom.
Defendant Pleads Guilty to Importing over 20,000 Fentanyl Pills at the San Ysidro Port of EntryRead the Press Release
Believed To Be Largest Single Port Seizure Of Fentanyl Pills
Across the Southwest Border of the U.S.
NEWS RELEASE SUMMARY – November 15, 2018
SAN DIEGO – Today, Fernando Jesus Peraza, age 39, pleaded guilty before federal Magistrate Judge Jill Burkhardt to importing over 20,000 fentanyl pills. Peraza was arrested at the San Ysidro Port of Entry on August 8, 2018. Peraza, a United States citizen, resided in Tijuana at the time of the offense but worked at a local trash collection service in the United States.
According to court records, Peraza was the driver and sole occupant of his vehicle. U.S. Customs and Border Protection (“CBP”) officers initially contacted Peraza in the pre-primary inspection area; he was referred to secondary inspection, where officers found four packages concealed in the passenger side rear quarter panel. The counterfeit pills, which were designed to resemble M30s or oxycodone, contained fentanyl.
Defendant admitted today that he imported approximately 20,000 pills containing fentanyl in his vehicle and knew that his vehicle contained fentanyl, or some other prohibited drug. He faces a minimum mandatory sentence of 10 years in custody.
“Counterfeit pills are especially dangerous because users often don’t know they are ingesting fentanyl,” said U.S. Attorney Adam Braverman. “With overdoses taking a life every 8 minutes, federal law enforcement agencies are prioritizing prosecution of every individual who smuggles and distributes this deadly substance. Thanks to the vigilance of CBP, these deadly pills will not see the streets of our communities.”
Defendant is scheduled for sentencing on February 1, 2019, before United States District Court Judge Gonzalo P. Curiel.
This case is being prosecuted by Assistant United States Attorney Sherri Hobson.
DEFENDANT Case Number 18CR3908GPC
Fernando Jesus Peraza Age: 38 Tijuana, Mexico
SUMMARY OF CHARGE
Importation of Controlled Substances
Maximum penalty: 10 years minimum to life; $10,000,000 fine; supervised release; $100 special assessment)
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Customs & Border Protection (CBP)
Cottage Grove Man Pleads Guilty to Federal Drug Charges After Hash Oil ExplosionRead the Press Release
EUGENE, Ore. – Eric L. Scully, 35, of Cottage Grove, Oregon, pleaded guilty today to endangering human life and illegally possessing and manufacturing marijuana after a November 2017 butane honey oil (BHO) explosion in Cottage Grove.
“Manufacturing hash oil is extremely dangerous and poses a grave risk of injury or death to producers and unknowing, innocent victims. Federal authorities will continue targeting BHO producers and the illicit distribution networks providing them with butane gas. Together with our local partners, we will put an end to this severe public safety threat,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“This investigation highlights the significant dangers that these extraction operations pose,” stated Keith Weis, DEA Special Agent in Charge of the Pacific Northwest Region. He further added, “This explosive event in Cottage Grove’s community was caused by highly reckless criminal activities surrounding butane honey oil (BHO) production, this time we were very lucky that lives were not lost.”
According to court documents, on November 16, 2017, the Cottage Grove Police and Fire Departments responded to an explosion at a storage facility in Cottage Grove. Officers found Scully at a local hospital where he was being treated for serious burn injuries. Investigators later learned that, at the time of the explosion, at least three other individuals were inside the facility.
Two days later, Cottage Grove Police and U.S. Drug Enforcement Administration (DEA) agents executed a search warrant at the storage facility. Inside, they found a large, sophisticated, and unlicensed BHO extraction lab. BHO is a concentrated form of marijuana extracted using highly flammable or combustible solvents. During the search, agents found more than 1,900 pounds of marijuana bud and shake, 728 marijuana plants and over 80 pounds of marijuana extract. Each plant was either mature or had leaves and readily observable root formation.
The investigation determined that while manufacturing BHO, one of Scully’s machines, located in a room containing combustibles, caught fire. The machine and combustibles exploded, injuring Scully and placing the other individuals present at substantial risk of harm.
Scully faces up to 40 years in prison with a five-year mandatory minimum sentence, a $5 million fine and a mandatory four-year term of supervised release. The U.S. Attorney’s Office and defense counsel are jointly recommending a non-binding, 87-month sentence for Scully who will be sentenced on February 21, 2019 before U.S. District Court Judge Michael J. McShane.
As part of the plea agreement, Scully agrees to pay restitution to each victim as determined by the court, including payments for property damage, physical injuries caused by the explosion and the reimbursement of insurance companies. Scully also agreed to forfeit $25,980 in criminal proceeds and a pickup truck and trailer used to facilitate his crimes.
This case was investigated by DEA and the Cottage Grove Police Department. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Columbia Resident Sentenced to Federal Prison for Second Child Pornography ConvictionRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that Dennis Michael Martin, 53, of Columbia, South Carolina, was sentenced to over 15 years in federal prison for distributing child pornography.
Evidence presented to the court showed that the National Center for Missing and Exploited Children received a report through its CyberTipline that an email address was being used to upload child pornography to the internet on April 16, 2016. Further investigation revealed the email address belonged to Martin, who was a registered sex offender already under supervision by the United States Probation Office for a prior federal conviction for possession of child pornography. Martin also has a prior state conviction for Child Molestation in the Second Degree.
A search of Martin’s residence revealed that he had secretly purchased cell phones to access the internet to collect and distribute child pornography. The cell phones contained 26 videos and 2,544 images of child pornography.
United States District Judge J. Michelle Childs sentenced Martin to 188 months in federal prison. There is no parole in the federal system. Following his release, Martin will remain under court-ordered supervision for life. He will be required to register as a sex offender, attend sex offender treatment, submit to computer monitoring, refrain from any unsupervised contact with minors, and submit to random polygraph examinations.
Agents of the Department of Homeland Security investigated this case, which was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov. Assistant United States Attorney William E. Day, II, of the Columbia office prosecuted the case.
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Columbia Man Sentenced for Armed Bank RobberyRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who robbed a bank and led law enforcement officers on a high-speed chase while carrying an infant in the back seat of his get-away car was sentenced in federal court today.
Larome Demetrius Humphrey, 28, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On July 26, 2018, Humphrey pleaded guilty to one count of armed bank robbery and one count of brandishing a firearm during a crime of violence.
According to court documents, Humphrey and two other men stole $2,588 from Callaway Bank, 5600 Bull Run Dr., Columbia, at gunpoint on April 27, 2017. Humphrey and another man entered the bank with pistols at approximately 1:44 p.m., while a third man waited in the getaway vehicle. They jumped the teller counter, put their pistols to a teller’s head and demanded money. The money was placed in a plastic bag, then they left the bank.
Witnesses saw the thieves run from the bank and get into a 2007 Chevrolet Impala. Missouri State Highway Patrol troopers spotted the vehicle just east of the bank on I-70 in the area of Kingdom City, Mo. A vehicle pursuit ensued with speeds over 100 m.p.h. Troopers deployed stop sticks, and eventually the Impala left the roadway and struck a fence. All three of the thieves fled on foot but were apprehended by law enforcement officers.
When troopers searched the vehicle, they found a 1-year-old child who had been in the back seat of the Impala during the bank robbery and vehicle pursuit. The infant is the son of Humphrey’s girlfriend, who owns the car used in the robbery.
At the time of Humphrey’s arrest, a large sum of cash was discovered concealed in his underwear.
Humphrey has an extensive and violent criminal history, according to court documents. At age 18, Humphrey was convicted of aggravated assault, after he shot an individual during a robbery. At age 19, Humphrey was convicted of two charges of possession of marijuana. In 2011, Humphrey was convicted of felony facilitation of a sale of Alprazolam. In 2012, Humphrey was convicted of possession of marijuana and in 2014 he was convicted of attempted possession of marijuana.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Columbia, Mo., Police Department, the Missouri State Highway Patrol and the FBI.
Columbia Man Sentenced for $1.1 Million Investment Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today for a $1.1 million investment fraud scheme.
Billings Chapman, 79, was sentenced by U.S. District Judge Stephen R. Bough to one year and six months in federal prison without parole. The court also ordered Chapman to pay $1,123,814 in restitution to his victims.
On April 30, 2018, Chapman pleaded guilty to one count of mail fraud and one count of money laundering. Chapman was partial owner of CheckmarcUSA, LLC, a company formed to provide bad check collection services to banks. He also owned Federal Financial Services, LLC (FFS), which he used to solicit investors.
Chapman admitted that he engaged in a scheme from May 26, 2011, to April 30, 2014, to defraud investors by making materially false representations and using investment funds for his own personal benefit. Chapman guaranteed monthly payments to investors and misrepresented to investors his financial condition and the financial condition of FFS. Chapman falsely claimed that large numbers of banks had signed up for CheckmarcUSA’s services and that FFS was accruing substantial income as a result.
Chapman did not tell investors that he had been barred from engaging in the securities industry in 1970 by the National Association of Securities Dealers, or that he had been issued cease and desist orders in 1991 and in 2004 from the Missouri Commissioner of Securities for engaging in fraudulent or illegal practices in the securities business. Chapman, who was not registered to sell securities in Missouri, used investor money for his own personal gain and to make payments to prior investors.
According to court documents, the loss to Chapman’s victims totaled $1,123,814. A number of the victims were devastated financially by their loss. For example, one victim lost all of his retirement savings and had to suspend his retirement and resume working. Another victim, a single mother of two, invested her entire savings with Chapman and FFS, and her loss caused her to be unable to pay her bills.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI.
Cleveland man twice convicted of domestic violence indicted for having a gunRead the Press Release
A Cleveland man twice convicted of domestic violence was indicted for having a gun.
Joshua Hych, 24, was indicted in federal court on one count of possession of a firearm after misdemeanor crime of domestic violence.
Hych on Sept. 26 possessed a Taurus 9mm handgun, despite convictions for domestic violence in 2012 and 2015 Parma Municipal Court.
This case was investigated by the Cleveland Division of Police and Bureau of Alcohol, Tobacco, Firearms and Explosivs. It is being prosecuted by Assistant U.S. Attorney James Lewis.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Citizen of Honduras Sentenced to 29 Months in Federal Prison for Reentering the U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FRANKLIN OMAR RODRIGUEZ, 37, a citizen of Honduras last residing in Norwalk, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 29 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in December 2005, Rodriguez was convicted in Carroll County, Georgia, of statutory rape and was sentenced to time served and three years of probation. In February 2009, he was convicted, in Carroll County, of failure to register as a sex offender and two counts of false identification documents, and was sentenced to 10 years of incarceration, execution suspended after two years. In July 2009, he was convicted in Douglas County, Georgia, for possessing drugs, driving under the influence and driving with a suspended license, and was sentenced to 18 months of incarceration. Rodriguez used aliases when he was arrested for these offenses.
In February 2011, Rodriguez was deported from the U.S. to Honduras.
Rodriguez illegally reentered the U.S. and, on January 13, 2017, was arrested by Stamford Police for the sale of illegal drugs, possession of narcotics with intent to sell, and interfering/resisting arrest.
On December 8, 2017, Rodriguez pleaded guilty in federal court to one count of reentry of a removed alien.
The state case is pending in Stamford Superior Court, where Rodriguez is scheduled to be sentenced on November 21.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chief Executive Officer and Associates Indicted for Orchestrating Multi-Million Dollar Stock Manipulation Scheme Involving a Publicly Traded CompanyRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Christian Romandetti, Sr., the Chief Executive Officer of First Choice Healthcare Solutions, Inc (FCHS), a publicly traded company based in Melbourne, Florida, and his associates Frank Sarro, Jeffrey Miller and Mark Burnett, with conducting a pump and dump scheme in coordination with Elite Stock Research (ESR), a boiler room, to defraud investors in FCHS that operated in Plainview, New York. The charges include conspiracies to commit securities fraud, wire fraud and money laundering, and substantive securities fraud.
Miller and Burnett will be arraigned this afternoon before Magistrate Judge Anne Y. Shields, at the federal courthouse in Central Islip. Romandetti’s and Sarro’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the federal courthouse in Orlando, Florida.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the defendants conducted a classic pump and dump scheme designed to defraud the investing public, many of whom were senior citizens, by pressuring them to purchase shares of the manipulated stock,” stated United States Attorney Donoghue. “Today’s arrests show our continuing commitment to protect investors and hold accountable those who abuse our financial markets in order to line their own pockets.” Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission for their significant cooperation and assistance in the investigation.
As alleged in the indictment, between May 2013 and June 2016, the defendants, together with others, engaged in a multi-million dollar scheme to defraud investors in FCHS, many of whom were elderly, by artificially controlling the price and volume of traded shares in the FCHS by artificially generating price movements and trading volume in the shares, and by including material misrepresentations and omissions in their communications with victim investors about FCHS stock. The defendants promoted the stocks primarily through cold-call campaigns and circulation of a newsletter. The defendants fraudulently concealed their control of FCHS shares by holding them in brokerage accounts in the names of other individuals or entities. The defendants then laundered over $3 million in proceeds of the foregoing stock manipulation scheme.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendants:
CHRISTIAN ROMANDETTI, SR.
Age: 58
Indialantic, FloridaFRANK SARRO
Age: 63
Palm Bay, FloridaJEFFREY MILLER
Age: 63
Bellmore, New YorkMARK BURNETT
Age: 59
Roslyn, New YorkE.D.N.Y. Docket No. 18-CR-614 (SJF)
Chicago Man Sentenced to More Than 8 Years in Prison for Assaulting Federal Agent After Armed RobberyRead the Press Release
CHICAGO — A Chicago man who pointed a loaded gun at a federal agent after an armed robbery on the South Side has been sentenced to more than eight years in federal prison.
After an armed robbery in Chicago’s South Deering neighborhood on Dec. 19, 2017, NICHOLAS HERMON pointed a loaded handgun at an agent from the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Hermon was later arrested.
Hermon, 24, of Chicago, pleaded guilty in August to one count of assault of a federal agent, and one count of brandishing a firearm during a crime of violence. U.S. District Judge Matthew F. Kennelly on Tuesday sentenced Hermon to eight years and three months in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the ATF; and Eddie Johnson, Superintendent of the Chicago Police Department.
“The defendant’s firearm was loaded with 15 rounds of ammunition with one round in the chamber ready to be fired,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “The defendant and his associates are incredibly fortunate that there was no loss of life in this case.”
According to evidence in the case, Hermon participated in the robbery of two individuals who sought to illegally purchase an assault rifle from Hermon and an associate, JOSHUA GENTRY. Unbeknownst to Hermon and Gentry, one of the buyers was a confidential source working at the direction of the ATF, and agents were conducting surveillance of the deal in the 10100 block of South Oglesby Avenue. After the confidential source handed Gentry $1,800 in cash, Hermon, who had been hiding out of sight, appeared and pointed the handgun at the confidential source. The source and the other buyer ran off, and ATF agents appeared, announced themselves, and commanded Hermon and Gentry to surrender. Hermon and Gentry ignored the command and fled through a nearby yard. During the pursuit, Hermon turned and pointed the handgun at the agent. Hermon was later arrested.
Officers also pursued Gentry, who at one point aimed the loaded assault rifle at one of the officers giving chase. Gentry was later taken into custody. Gentry, 22, pleaded guilty to one count of robbery of government funds, and one count of using a firearm during a crime of violence. Last week, Judge Kennelly sentenced Gentry to seven years and one day in federal prison.
Chester County Man Indicted for Production, Receipt, and Possession of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Robert Dean Caesar, 56, of Oxford, Pennsylvania, was charged today by Indictment with production, receipt, and possession of child pornography.
The Indictment alleges that on or about each of two separate dates (September 16, 2017 and December 30, 2017), Caesar manufactured child pornography. The Indictment further alleges that Caesar received child pornography on December 20, 2017, and possessed child pornography on January 18, 2018.
If convicted as charged, the defendant faces a maximum possible sentence of 100 years’ imprisonment, a mandatory minimum term of 15 years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,000,000 dollar fine, mandatory restitution, and up to $20,400 in special assessments.
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.
The case was investigated by the Pennsylvania State Police – Avondale Barracks and Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
Carmichael Man Indicted for Identity and Mail Theft and Illegally Possessing a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 10-count indictment today against Manuel Campos Rodriguez, 41, of Carmichael, charging him with bank fraud, aggravated identity theft, possession of credit and debit card making equipment, possession of stolen mail, unlawfully possessing 15 or more credit or debit cards, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Rodriguez stole mail and obtained and stored for use credit and debit cards, credit card numbers, social security numbers, and driver’s license numbers. Rodriguez used the credit cards of one victim to make purchases at stores, such as Home Depot and Macy’s. Rodriguez also created fake driver’s licenses for victims, which had Rodriguez’s picture on them but the victim’s actual driver’s license number. When arrested, Rodriguez was found in possession of a firearm and ammunition.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Folsom Police Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as a part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department of Justice’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Calhoun woman sentenced to a year in prison for theft of more than $100,000 in government fundsRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a Calhoun woman was sentenced last week to a year in prison for stealing more than $100,000 of government money, to which she was not entitled, from her deceased mother’s account.
Megan Elliott Wilson, 43, of Calhoun, Louisiana, was sentenced on November 7, 2018 by U.S. District Judge Terry Doughty on one count of theft of government funds. She was also sentenced to three years of supervised release and ordered to pay $102,604.75 in restitution. According to the October 31, 2017 guilty plea, Anne Elliott, a U.S. Department of Veterans Affairs (VA) and Social Security Administration (SSA) program beneficiary, died in August of 2009. The government agencies were initially unaware of Elliott’s death and paid $77,942.75 in VA benefits and $24,662 in SSA benefits via direct deposit to a bank account in Elliott’s name. Upon learning of Elliott’s death, the agencies attempted to reclaim the funds, but the funds had been fraudulently withdrawn from the account by Elliott’s daughter, Megan Elliott Wilson, who accessed the funds online and forged checks on the account converting the funds to her own use. The total loss to the government is $102,604.75.
The U.S. Department of Veterans Affairs - Office of Inspector General and the Social Security Administration - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Brooklyn Businessman Pleads Guilty to Defrauding Investors through Two Initial Coin OfferingsRead the Press Release
Earlier today, in federal court in Brooklyn, Maksim Zaslavskiy pleaded guilty before United States Magistrate Judge Ramon E. Reyes, Jr., to conspiracy to commit securities fraud in connection with two Initial Coin Offerings (ICOs) – REcoin Group Foundation, LLC (REcoin) and DRC World, Inc., also known as Diamond Reserve Club (Diamond).
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“The calculated lies of Zaslavskiy and others led unsuspecting investors who thought they were purchasing cryptocurrency securities to buy worthless certificates,” stated United States Attorney Donoghue. “This Office will continue to aggressively prosecute those who exploit and defraud investors, whether through traditional means of securities fraud, or new forms – such as the use of purported cryptocurrency offerings and blockchain technology.” Mr. Donoghue extended his grateful appreciation to the Securities and Exchange Commission (SEC), New York Regional Office, for their assistance in this case.
“Criminals who manipulate and defraud the public for their own personal financial gain undermine the stability and security of our investment markets,” stated FBI Assistant Director-in-Charge Sweeney. “Investing often involves risk, but nobody should be at risk of being preyed upon by unscrupulous individuals. Zaslavskiy and his associates cloaked old-fashioned criminal schemes in the language of new currency in order to take advantage of investors, and as today’s conviction demonstrates, the FBI will continue to pursue any individual who seeks to profit by exploiting others.”
As he admitted at his guilty plea and as detailed in court documents, Zaslavskiy fraudulently marketed RECoin as “The First Ever Cryptocurrency Backed by Real Estate,” and subsequently touted Diamond as an “exclusive and tokenized membership pool” hedged by diamonds. In reality, Zaslavskiy bought neither real estate nor diamonds, and the certificates he sent to investors were not backed by the promised blockchain technology. In furtherance of his scheme, Zaslavskiy falsely advertised that REcoin had a “team of lawyers, professionals, brokers and accountants” who would invest the proceeds from the REcoin ICO into real estate, that 2.8 million REcoin tokens had been sold (only about 1,000 investors paid for REcoin tokens) and that the investment in Diamond tokens was “hedged by physical diamonds.”
Earlier this year, United States District Court Judge Raymond J. Dearie denied Zaslavskiy’s motion to dismiss the indictment. Zaslavskiy asserted that the securities laws did not apply to cryptocurrency offerings and were unconstitutionally vague. The court upheld the validity of the laws, noting that “there can be no serious debate” that the indictment was sufficient. The court further held that a jury was entitled to decide if REcoin and Diamond tokens were securities. “Stripped of the 21st-century jargon,” the court wrote, referring to Zaslavskiy’s ICO marketing solicitations, the indictment described a “scam, replete with common characteristics of many financial frauds.” The court added, “simply labeling an investment opportunity as ‘virtual currency’ or ‘cryptocurrency’ does not transform an investment contract—a security—into a currency,” and does not, therefore, remove the offerings from the ambit of securities law.
When sentenced, Zaslavskiy faces up to five years’ imprisonment. In addition to the criminal charges filed by this Office, the SEC has filed civil charges against Zaslavskiy. The civil case was stayed pending resolution of the criminal matter.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Julia Nestor and Andrey Spektor are in charge of the prosecution.
The Defendant:
MAKSIM ZASLAVSKIY
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-647 (S-1) (RJD)
Bronx Man Charged with 2014 MurderRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the return of a superseding indictment charging ALEXANDER MELENDEZ, a/k/a “Kiki,” with the murder of Shaquille Malcolm. MELENDEZ, who is already in federal custody on other charges, will be arraigned on the superseding indictment on December 29, 2018, before United States District Judge Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendant murdered 20-year-old Shaquille Malcolm in the Bronx in 2014. Now, thanks to the outstanding work of the FBI and NYPD, the defendant has been charged with this terrible crime. We will continue to work with our partners in law enforcement to hold violent criminals responsible for their actions.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “As demonstrated by the addition of murder charges to Melendez’s alleged crimes, the illegal drug trade often leads to additional violent criminal activity that threatens the safety and security of our communities. This individual believed himself to be above the law, and now he will face justice for his alleged crimes. The FBI and our law enforcement partners will continue to root out these violent criminals and ensure they are held accountable to the fullest extent of the law.”
According to the Superseding Indictment[1]:
In early 2014, MELENDEZ was a member of a conspiracy to distribute crack cocaine in the Allerton section of the Bronx, New York. On January 2, 2014, as part of this conspiracy, MELENDEZ and others shot Shaquille Malcolm multiple times in the stairwell of an apartment building located at 2818 Bronx Park East in the Bronx. Malcolm died at the scene.
* * *
MELENDEZ, 23, is charged with one count of conspiring to distribute 280 grams and more of crack cocaine, which carries a mandatory minimum of 10 years in prison and maximum of life in prison; one count of using, carrying, and possessing firearms during and in relation, and in furtherance of, a drug trafficking crime and aiding and abetting the same, which carries a mandatory consecutive 10 year sentence in prison and a maximum sentence of life in prison; one count of use of a firearm to commit murder in furtherance of a drug trafficking crime and aiding and abetting the same, which carries a maximum sentence of life in prison or death; and one count of murder while engaged in a conspiracy to distribute 280 grams and more of crack cocaine and aiding and abetting the same, which carries a maximum sentence of life in prison or death. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jessica K. Fender, Michael K. Krouse, and Danielle R. Sassoon are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Blythewood Woman Sentenced to Federal Prison for Fraudulent Use of Husband’s VA BenefitsRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that Tammy L. Yoho, a/k/a “Tammy Louise Black,” 54, of Blythewood, South Carolina, was sentenced to over three years in federal prison for theft of government funds.
Evidence presented to the court showed that in 2002, Yoho entered an agreement with the Department of Veterans Affairs (VA) to act as the fiduciary for her husband after he was diagnosed with brain cancer. In 2011, Yoho began a relationship with another man, whom she began living with in 2013. Yoho used her husband’s VA benefits for personal expenses, including spending large amounts at a casino in Las Vegas. In 2014, she forged her husband’s name on a power of attorney form so she could obtain a VA loan to purchase a large house in Blythewood, South Carolina. In October 2015, her husband was found dead in their marital home in North Carolina. The utilities had been shut off and the residence was in foreclosure for lack of payments. Yoho—who was still living with another man in Blythewood—subsequently filed for additional VA benefits claiming to have continuously lived with her husband until he died.
United States District Judge Mary Geiger Lewis sentenced Yoho to 37 months in federal prison, to be followed by three years of court-ordered supervision and payment of $47,730.34 in restitution to the Department of Veterans affairs.
The case was investigated by agents of the Department of Veterans Affairs, Office of Investigation. Assistant United States Attorney William E. Day, II, of the Columbia office prosecuted the case.
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Berlin Man Arrested for Accepting Bribes from Inmates and Providing Contraband in PrisonRead the Press Release
CONCORD – Joseph Buenviaje, 53, of Berlin, New Hampshire, was arrested and appeared in federal court today on charges of bribery of a public official and providing contraband in prison, United States Attorney Scott W. Murray and Guido Modano, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General’s New York Field Office announced.
According to court documents, Buenviaje, while employed as a Chaplain at the Federal Correctional Institution in Berlin, New Hampshire, provided cellular telephones, tobacco, marijuana, Suboxone, and other contraband to inmates, in exchange for money. During a search of Buenviaje’s office at FCI Berlin, investigators seized Suboxone strips, tobacco, and over $5,000 in proceeds.
“Public employees are expected to act with integrity,” said U.S. Attorney Murray. “We will always be alert to instances of criminal misconduct by federal employees. In order to ensure that the public has confidence in its public servants, federal employees who violate the public trust by breaking the law will be investigated and prosecuted.”
This U.S. Department of Justice Office of the Inspector General investigated the case, with support from FCI Berlin’s Office of the Special Investigative Supervisor. The case is being prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter and Assistant U.S. Attorney Anna Z. Krasinski.
A federal criminal complaint is only an allegation, and the defendant is presumed innocent unless and until proven guilty.
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Atrium Health Agrees to Settle Antitrust Lawsuit and Eliminate Anticompetitive Steering RestrictionsRead the Press Release
The Department of Justice announced today that it has reached a settlement with Atrium Health, formerly known as Carolinas HealthCare System (“Atrium”). The settlement prohibits Atrium from using anticompetitive steering restrictions in contracts between commercial health insurers and its providers in the Charlotte, North Carolina metropolitan area. If approved by the Court, today’s settlement resolves over two years of civil antitrust litigation challenging Atrium’s use of steering restrictions that prevent health insurers from promoting innovative health benefit plans and more cost-effective healthcare services to consumers.
“With healthcare costs rising, vigilant antitrust enforcement is an essential tool for protecting consumers,” said Assistant Attorney General Makan Delrahim. “By eliminating restrictions that curb comparison shopping and interfere with competition among healthcare providers, today’s resolution of our antitrust action allows consumers in the Charlotte area to benefit from competition when making critically important healthcare choices.”
In June 2016, the Department filed a civil antitrust lawsuit against Atrium challenging provisions that prohibit steering in the hospital system’s contracts with major health insurers. Steering is a method used by insurers to offer consumers options to reduce some of their healthcare expenses. As alleged in the complaint, insurers are increasingly designing health benefit plans that give patients financial incentives to choose more cost-effective hospitals and physicians. Increased consumer access to these health benefit plans invigorates competition between providers to offer lower premiums and better overall healthcare services.
The Department alleged that Atrium, the dominant hospital system in the Charlotte area, used its market power to restrict health insurers from encouraging consumers to choose healthcare providers that offer better overall value. The restrictions also constrained insurers from providing consumers and employers with information regarding the cost and quality of alternative health benefit plans.
“Competition encourages healthcare providers to reduce costs, lower prices, and increase quality,” said Assistant Attorney General Makan Delrahim. “Atrium’s steering restrictions interfered with the competitive process, resulting in fewer choices and higher costs for consumers.”
“The resolution of this antitrust enforcement action gives Charlotte-area consumers what they did not have before: the ability to receive the appropriate, high-quality treatment they need, from a healthcare provider they choose, at a fair price,” said U.S. Attorney for the Western District of North Carolina, R. Andrew Murray. “Today’s enforcement action will restore competition in the Charlotte area, resulting in lower healthcare costs and increased healthcare access for consumers and their families.”
The proposed settlement, in which the U.S. Department of Justice was joined by the North Carolina Attorney General’s Office, was filed today in the U.S. District Court for the Western District of North Carolina. The proposed settlement prevents Atrium from enforcing steering restrictions in its contracts with health insurers. It also bars Atrium from seeking contract terms or taking actions that would prohibit, prevent, or penalize steering by insurers in the future.
Atrium is North Carolina’s largest healthcare system and one of the largest not-for-profit healthcare systems in the United States. Atrium’s flagship facility is Carolinas Medical Center, the largest hospital in North Carolina. Atrium also operates eight other general acute-care hospitals in the Charlotte area and owns, manages, or has strategic affiliations with more than 40 hospitals in the Carolinas. Atrium provides healthcare services throughout the Carolinas, including in freestanding emergency departments, urgent care centers, physician practices, outpatient surgery centers, imaging centers, nursing homes, and laboratories. In 2017, Atrium’s owned, managed, and affiliated hospitals and other healthcare providers earned net operating revenue of close to $10 billion.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Peter J. Mucchetti, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Western District of North Carolina may enter the proposed consent decree upon finding that it serves the public interest.
Atrium Health Agrees to Settle Antitrust Lawsuit and Eliminate Anticompetitive Steering RestrictionsRead the Press Release
CHARLOTTE, N.C. – The Department of Justice announced today that it has reached a settlement with Atrium Health, formerly known as Carolinas HealthCare System (“Atrium”). The settlement prohibits Atrium from using anticompetitive steering restrictions in contracts between commercial health insurers and its providers in the Charlotte, North Carolina metropolitan area. If approved by the Court, today’s settlement resolves over two years of civil antitrust litigation challenging Atrium’s use of steering restrictions that prevent health insurers from promoting innovative health benefit plans and more cost-effective healthcare services to consumers.
“With healthcare costs rising, vigilant antitrust enforcement is an essential tool for protecting consumers,” said Assistant Attorney General Makan Delrahim. “By eliminating restrictions that curb comparison shopping and interfere with competition among healthcare providers, today’s resolution of our antitrust action allows consumers in the Charlotte area to benefit from competition when making critically important healthcare choices.”
In June 2016, the Department filed a civil antitrust lawsuit against Atrium challenging provisions that prohibit steering in the hospital system’s contracts with major health insurers. Steering is a method used by insurers to offer consumers options to reduce some of their healthcare expenses. As alleged in the complaint, insurers are increasingly designing health benefit plans that give patients financial incentives to choose more cost-effective hospitals and physicians. Increased consumer access to these health benefit plans invigorates competition between providers to offer lower premiums and better overall healthcare services.
The Department alleged that Atrium, the dominant hospital system in the Charlotte area, used its market power to restrict health insurers from encouraging consumers to choose healthcare providers that offer better overall value. The restrictions also constrained insurers from providing consumers and employers with information regarding the cost and quality of alternative health benefit plans.
“Competition encourages healthcare providers to reduce costs, lower prices, and increase quality,” said Assistant Attorney General Makan Delrahim. “Atrium’s steering restrictions interfered with the competitive process, resulting in fewer choices and higher costs for consumers.”
“The resolution of this antitrust enforcement action gives Charlotte-area consumers what they did not have before: the ability to receive the appropriate, high-quality treatment they need, from a healthcare provider they choose, at a fair price,” said U.S. Attorney for the Western District of North Carolina, Andrew Murray. “Today’s enforcement action will restore competition in the Charlotte area, resulting in lower healthcare costs and increased healthcare access for consumers and their families.”
The proposed settlement, in which the U.S. Department of Justice was joined by the North Carolina Attorney General’s Office, was filed today in the U.S. District Court for the Western District of North Carolina. The proposed settlement prevents Atrium from enforcing steering restrictions in its contracts with health insurers. It also bars Atrium from seeking contract terms or taking actions that would prohibit, prevent, or penalize steering by insurers in the future.
Atrium is North Carolina’s largest healthcare system and one of the largest not-for-profit healthcare systems in the United States. Atrium’s flagship facility is Carolinas Medical Center, the largest hospital in North Carolina. Atrium also operates eight other general acute-care hospitals in the Charlotte area and owns, manages, or has strategic affiliations with more than 40 hospitals in the Carolinas. Atrium provides healthcare services throughout the Carolinas, including in freestanding emergency departments, urgent care centers, physician practices, outpatient surgery centers, imaging centers, nursing homes, and laboratories. In 2017, Atrium’s owned, managed, and affiliated hospitals and other healthcare providers earned net operating revenue of close to $10 billion.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Peter J. Mucchetti, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Western District of North Carolina may enter the proposed consent decree upon finding that it serves the public interest.
Artesia Man Sentenced to 75 Months for Federal Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Timothy Caleb Martinez, 28, of Artesia, N.M., was sentenced today in Las Cruces, N.M., to 75 months in prison for his conviction on methamphetamine trafficking and firearms charges. Martinez will be on supervised release for five year after completing his prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives charged Martinez in a criminal complaint filed on Aug. 4, 2017, with possession of methamphetamine and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR). According to the complaint, law enforcement officers seized approximately 48.73 grams of pure methamphetamine, a firearm and ammunition while executing a search warrant at Martinez’s residence on Nov. 18, 2014, in Eddy County, N.M.
On June 20, 2018, Martinez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and possession of an unregistered short-barreled shotgun. Martinez entered the guilty plea without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Eddy County Sheriff’s Office, the Carlsbad Police Department, and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Clara N. Cobos of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Anchorage Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been indicted on federal drug trafficking charges, arising from the seizure of over 16 pounds of heroin in Anchorage.
Don Deviet Frye Sr., 53, of Anchorage, was named in the indictment charging him with attempted possession of a controlled substance with intent to distribute, and possession of a controlled substance with intent to distribute. Frye’s arraignment hearing has been set for Friday, Nov. 16, 2018, at 3:00 p.m.
According to the criminal complaint, a suspicious package was intercepted on Nov. 6, 2018, originating from “David Johnson” in California, to be delivered to “Robert Johnson” in Anchorage. The package weighed approximately 27 pounds and was postmarked with $168.95 in postage. A trained narcotics detector dog examined the package and subsequently indicated the presence of controlled substances. A search warrant was obtained and executed on the package, and located inside were two “Christmas-themed” cardboard boxes that contained approximately 7,638.94 grams of heroin.
On Nov. 7, 2018, law enforcement officers conducted a controlled delivery of the package to the intended address, and observed Frye receive and take the package inside the residence. Once law enforcement received indication that the package had been opened, officers converged on and secured the residence, where Frye was the sole occupant at the time. At the time of his arrest, Frye was in possession of a torn plastic baggie, a glass pipe, and a knife.
If convicted, Frye faces a mandatory minimum sentence of 10 years, and a maximum of up to life in prison, as well as a fine of up to $10 million, for the most serious charges alleged in the indictment. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The U.S. Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), the Alaska Wildlife Trooper Aircraft Section and air asset, HELO3, and the State of Alaska Department of Corrections K-9 conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Christina M. Sherman.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Wednesday 14 November 2018
Wisconsin Man Pleads Guilty to Threatening Jewish Community CenterRead the Press Release
WASHINGTON – Chadwick Grubbs, who is currently in state custody on separate cases, pleaded guilty today to federal charges related to threatening letters he wrote on three separate dates in May to the Harry and Rose Samson Family Jewish Community Center (JCC) in Whitefish Bay. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin, and Special Agent-in-Charge Justin Tolomeo of the FBI’s Milwaukee Division made the announcement.
Grubbs, 33, pleaded guilty to two counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive. Information presented during the plea hearing established that Grubbs sent three letters to the JCC in which he threatened to use firearms to cause “maximum carnage” and threatened to use explosives to destroy the JCC. In his letters, Grubbs used numbers and symbols associated with white supremacist ideology.
“Mr. Grubbs’ violent threats against the Whitefish Bay Jewish community attempted to undermine the safety and security of all community members,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to prosecute these cases vigorously so that all people, no matter their religious beliefs, can live their lives freely and without fear.”
“The freedom of religion is among our most cherished rights,” said U.S. Attorney Krueger. “No one should be afraid to exercise his or her religious beliefs in this country. The Department of Justice is committed to prosecuting anyone who threatens harm to someone because of their faith.”
“Protecting civil rights is one of the highest priorities of the FBI,” said SAC Justin Tolomeo. “We will vigorously investigate those who seek to intimidate with threats of violence motivated on bias against race, religion, disability, sexual orientation, ethnicity, gender, or gender identity, and bring them to justice.”
Acting Attorney General Matthew Whitaker released a statement on the FBI’s 2017 Hate Crimes Statistics report, published this morning. The Acting Attorney General’s full statement reflects on the troubling increase in anti-Semitic religious hate crimes in 2017, outlined in the report.
Last month, the Justice Department launched a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. More information on the website and an update on Justice Department hate crimes prosecutions can be found here.
Grubbs faces a maximum statutory penalty of ten years in prison and a $250,000 fine for the explosives threat charge and a penalty of five years in prison and a $250,000 fine for each of the mailed threats charges.
The FBI is leading the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting this case.
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Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Harrison, of Pine Grove, West Virginia, was sentenced today to 15 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Harrison, age 48, pled guilty to one count of “Felon in Possession of a Firearm and Ammunition” in August 2018. Harrison, having previously been convicted of a felony, is accused of having a .22 caliber revolver, and rounds of ammunition for the firearm in October 2017 in Wetzel County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Office of the Attorney General has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wetzel County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Man Indicted on Charges of Conspiring to Distribute and Possess with Intent to Distribute Large Amounts of Meth and CocaineRead the Press Release
PITTSBURGH, Pa. - A West Virginia man has been indicted by a federal grand jury in Pittsburgh, after having first been charged by complaint, on charges of conspiracy to distribute and possession with intent to distribute large quantities of methamphetamine and cocaine, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on November 13, named Durell Anthony Jones, 33, of Fairmont, West Virginia, as the sole defendant.
According to the criminal complaint presented to the court, at 5:30 a.m. on October 21, 2018, Jones was observed by law enforcement officers parking near a tractor trailer with California tags in the back of a gas station in Portersville, Pennsylvania. After opening his trunk and making movements to the rear of his vehicle, he drove a Kia Sedan onto Interstate 79, southbound. A trooper from the Pennsylvania State Police stopped the Kia for a violation of the Pennsylvania motor vehicle laws as it was traveling South on Interstate 79. Jones provided his name and date of birth, and State Police were able to determine that Jones had an active warrant in Michigan.
According to the complaint, a search of the Kia revealed approximately 55.5 kilograms (122 pounds) of methamphetamine and approximately 4.58 kilograms (10 pounds) of cocaine. The meth and cocaine were located in the trunk of the vehicle in four separate duffle-type bags.
The law provides for a maximum total sentence of not more than 25 years in prison, a fine of not more than $25,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Troy Rivetti and Jeffrey R. Bengel are prosecuting this case on behalf of the government.
U.S. Attorney Brady commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the indictment of Jones.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.