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Thursday 8 November 2018
Jury Convicts Moroccan Man of Assault on Federal OfficersRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Moroccan man yesterday on charges of assaulting federal law enforcement officers and failure to depart the United States.
“These ICE officers were carrying out a lawful judicial order to deport a convicted felon,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This verdict shows that we will not tolerate this kind of violent attack on law enforcement officers. The United States Attorney’s Office will protect those who are sworn to protect us.”
According to court records and evidence presented at trial, Zakaria Taoufik, 40, a citizen of Morocco, was being deported from Dulles International Airport pursuant to a valid final order of removal issued by a U.S. immigration judge because of a prior aggravated felony conviction. Three ICE deportation officers were assigned to accompany Taoufik back to Morocco. Taoufik told the airline pilot that he would not let himself be deported, and that he would fight and make the flight uncomfortable for everyone. Once on the aircraft, Taoufik screamed that he could not be deported, that he would not allow himself to be taken back to Morocco, issued threats against the officers, and took violent and aggressive actions to prevent his deportation, including shattering the entertainment screen on the seatback in front of him by slamming his head into the screen, attempting to head-butt two of the officers, attempting to bite an officer, and deliberately spitting in the face of an officer. Because of his disruptive actions, Taoufik and the ICE officers were ordered off the aircraft. This was Taoufik’s second successful attempt to prevent his deportation, as he had foiled an earlier attempt to deport him from Atlanta in October 2017.
Taoufik faces a maximum penalty of 10 years in prison when sentenced on Jan. 25, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Special Assistant U.S. Attorney Matthew Reilly and Assistant U.S. Attorney Grace Hill are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-73.
Jury Convicts Joplin Man of Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man has been convicted by a federal trial jury of leading a conspiracy to distribute methamphetamine in Jasper County, Mo.
Donald B. Loomis, 36, was found guilty on Wednesday, Nov. 7, 2018, of participating in a conspiracy to distribute 500 grams or more of methamphetamine in Jasper County from March 1, 2015, to Sept. 24, 2016.
Law enforcement officers began investigating methamphetamine trafficking in the Joplin area in April 2015, focusing on a violent gang that identified themselves as the Joplin Honkeys. Evidence introduced at trial indicated that Loomis, a member of the Joplin Honkeys, was the leader of a drug-trafficking organization and supplied multiple pounds of methamphetamine per week to distribute to others in the Joplin area.
Loomis is among five defendants convicted in this case. Co-defendants Kelly C. Walker, 46, of Joplin, and Alisha D. Courtney, 48, and Terrance E. Romero, 43, both of Webb City, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy. Romero also pleaded guilty to possessing a firearm in relation to a drug-trafficking crime. Co-defendant Lisa M. Allison, 40, of Neosho, Mo., pleaded guilty to distributing methamphetamine.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge M. Douglas Harpool on Wednesday, Nov. 7, 2018, ending a trial that began Monday, Nov. 5, 2018.
Under federal statutes, Loomis is subject to a mandatory sentence of life in federal prison without parole due to his prior felony convictions. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull, II, and Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Ozarks Drug Enforcement Team, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the Newton County, Mo., Sheriff’s Department, the Jasper County, Mo., Sheriff’s Department, the Jasper County, Mo., Prosecuting Attorney’s Office and the Newton County, Mo., Prosecuting Attorney’s Office.
Judge sentences Great Falls man in counterfeiting schemeRead the Press Release
GREAT FALLS—Great Falls resident Martin Phillip Rose, who was convicted in a counterfeiting scheme, was sentenced on Thursday to 14 months in prison and three years of supervised release, the U.S. Attorney’s Office announced.
U.S. District Judge Brian M. Morris presided at the hearing.
Rose, 44, pleaded guilty in July to aiding and abetting counterfeiting obligations or securities of the United States.
The investigation began in 2017 when a significant amount of counterfeit money began circulating through out Great Falls. In July 2017, Rose passed a fake $50 bill at a local business and was arrested. Following Rose’s arrest, investigators continued receiving information that Rose was making counterfeit $50 bills by taking legitimate $10 bills, washing them with chemicals and re-printing them as $50 bills.
Rose acknowledged to investigators he had run short on money and started making counterfeit bills.
Investigators identified 51 victims of Rose’s counterfeit scheme.
In a sentencing memo, Assistant U.S. Attorney Jessica Betley said Rose was sentenced in 2012 in federal court in Montana on a previous counterfeiting crime.
Betley prosecuted the case, which was investigated by the U.S. Secret Service and the Great Falls Police Department.
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Jefferson County Felon Will Spend 5 Years in Prison for Recruiting Others to Buy Him GunsRead the Press Release
PITTSBURGH, Pa. – A former resident of Jefferson County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of five years, to be followed by three years of supervised release, on his conviction on charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Peter Digiacomo, 32, formerly of Brockway, PA.
According to information presented to the court, on various dates between July 2016 and March 2017, Digiacomo recruited straw purchasers to buy a total of 20 guns, and acquired one additional stolen gun which he later transferred to another individual for drugs and cash. Digiacomo admitted to investigators that since he cannot purchase firearms due to prior convictions, including one for domestic violence, he solicited others to purchase firearms on his behalf. The straw purchasers provided false information on federal forms in order to facilitate the purchase of the firearms. Due to his prior convictions, Digiacomo is prohibited from purchasing or possessing firearms.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with a detective from the Allegheny County Sheriff’s Office, conducted this investigation.
Jackson Man Sentenced to over Six Years in Federal Prison for Trafficking Cocaine, Marijuana, and HydrocodoneRead the Press Release
Jackson, Miss. – Ance Payton, 42, of Jackson, was sentenced today by United States District Judge Tom S. Lee to 79 months in federal prison followed by three years of supervised release for possessing several illegal drugs with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
In 2017, the Jackson Police Department received several complaints from Crime Stoppers and concerned citizens about a home on Plantation Boulevard in Jackson. Law enforcement executed a search warrant at the home and found hundreds of grams of marijuana, powder cocaine, crack cocaine, and hydrocodone pills. They also found a digital scale and other evidence of drug-distribution activities. Payton was indicted on May 15, 2018, and pled guilty on July 19, 2018.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members in the investigation of this case.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Justin A. Sterling, 23, of Jackson, pled guilty today before U.S. District Judge Tom S. Lee to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 1, 2018, officers with the Clinton Police Department stopped a vehicle in which Sterling was a passenger for a traffic violation. Two firearms were found in the vehicle. Sterling, who had a prior felony of robbery, pleaded guilty to possessing the firearms.
Sterling will be sentenced on February 7, 2019 at 9:30 a.m., and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
U.S. Attorney Hurst commended the work of the Clinton Police Department and their cooperation with ATF agents and Project EJECT task force members. AUSA Erin Chalk is prosecuting the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Iranian National Pleads Guilty to Conspiring to Illegally Export Products from the United States to IranRead the Press Release
Arash Sepehri, 38, a citizen of Iran, pleaded guilty on Nov. 7, to a federal charge stemming from his role in a conspiracy to cause the export of controlled goods and technology to Iran, in violation of U.S. Department of Commerce and military controls, as well as in contravention of sanctions imposed against Iran.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Special Agent in Charge Patrick J. Lechleitner of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.
Sepehri pleaded guilty in the U.S. District Court for the District of Columbia, to conspiracy to unlawfully export U.S. goods to Iran in violation of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, and to defraud the United States.
According to court documents filed in this case, Sepehri was an employee and a member of the board of directors of an Iranian company, Tajhiz Sanat Shayan, or Tajhiz Sanat Company (TSS). TSS and other companies involved in the conspiracy were listed by the European Union on May 23, 2011, as entities being sanctioned for their involvement in the procurement of components for the Iranian nuclear program. Through TSS and associated companies, Sepehri and others conspired to obtain high-resolution sonar equipment, data input boards, rugged laptops, acoustic transducers and other controlled technology from the United States without obtaining proper licenses and in violation of economic sanctions.
As stated in the court documents, Sepehri and his co-conspirators sought to evade legal controls through a variety of means, including the use of a variety of aliases, United Arab Emirates (UAE)-based front companies and an intermediary shipping company based in Hong Kong. Payments for the goods were arranged through the UAE.
The conspiracy charge in this case is a felony punishable by a statutory maximum of five years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Honorable Rosemary M. Collyer scheduled sentencing for Jan. 16, 2019.
This investigation was conducted jointly by agents from FBI’s Washington Field Office and HSI Washington, D.C.
The prosecution is being handled by Assistant U.S. Attorney Tejpal S. Chawla and Special Assistant U.S. Attorney Elizabeth Dewar for the District of Columbia, with assistance from Trial Attorney Patrick T. Murphy of the Counterintelligence and Export Control Section of the Justice Department’s National Security Division. Additional assistance was provided by Paralegal Specialist Matthew Ruggiero of the U.S. Attorney’s Office for the District of Columbia.
Iranian National Pleads Guilty to Conspiring to Illegally Export Products from the United States to IranRead the Press Release
WASHINGTON – Arash Sepehri, 38, a citizen of Iran, pleaded guilty on Nov. 7, to a federal charge stemming from his role in a conspiracy to cause the export of controlled goods and technology to Iran, in violation of U.S. Department of Commerce and military controls, as well as in contravention of sanctions imposed against Iran.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Special Agent in Charge Patrick J. Lechleitner of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.
Sepehri pleaded guilty in the U.S. District Court for the District of Columbia, to conspiracy to unlawfully export U.S. goods to Iran in violation of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, and to defraud the United States.
According to court documents filed in this case, Sepehri was an employee and a member of the board of directors of an Iranian company, Tajhiz Sanat Shayan, or Tajhiz Sanat Company (TSS). TSS and other companies involved in the conspiracy were listed by the European Union on May 23, 2011, as entities being sanctioned for their involvement in the procurement of components for the Iranian nuclear program. Through TSS and associated companies, Sepehri and others conspired to obtain high-resolution sonar equipment, data input boards, rugged laptops, acoustic transducers and other controlled technology from the United States without obtaining proper licenses and in violation of economic sanctions.
As stated in the court documents, Sepehri and his co-conspirators sought to evade legal controls through a variety of means, including the use of a variety of aliases, United Arab Emirates (UAE)-based front companies and an intermediary shipping company based in Hong Kong. Payments for the goods were arranged through the UAE.
The conspiracy charge in this case is a felony punishable by a statutory maximum of five years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Honorable Rosemary M. Collyer scheduled sentencing for Jan. 16, 2019.
This investigation was conducted jointly by agents from FBI’s Washington Field Office and HSI Washington, D.C.
The prosecution is being handled by Assistant U.S. Attorney Tejpal S. Chawla and Special Assistant U.S. Attorney Elizabeth Dewar for the District of Columbia, with assistance from Trial Attorney Patrick T. Murphy of the Counterintelligence and Export Control Section of the Justice Department’s National Security Division. Additional assistance was provided by Paralegal Specialist Matthew Ruggiero of the U.S. Attorney’s Office for the District of Columbia.
Indiana Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Mark C. Smith, age 29, of Indianapolis, Indiana was sentenced today to 97 months in federal prison followed by five years of supervised release on one count of Possession with Intent to Distribute Cocaine and one count of Possession with Intent to Distribute Marijuana. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, on May 24, 2016, Smith, while driving a vehicle on Interstate 30 near Malvern, Arkansas, was stopped by a state trooper for a traffic violation. After a K-9 alerted to the presence of a controlled substance, the vehicle was searched and an officer located packaged bundles under the steering column. The substance inside the bundles field tested positive for cocaine and weighed approximately 2,000 grams. Smith possessed $7,849.00 of U.S. currency on his person as well as a Walmart receipt for an I-phone purchased in Dallas on May 22, 2016.
The detectives submitted the drugs seized from Smith's vehicle (in Arkansas) to the Arkansas State Crime Lab, which confirmed that the substance recovered contained cocaine and weighed 1,966.5 grams.
On or about March 16, 2015, near midnight, Smith was stopped in a GMC Yukon after suspicious activity was observed by law enforcement in an industrial area in Evansville, Indiana. A K-9 alerted to the presence of a controlled substance in the vehicle and Smith was arrested for resisting law enforcement and for driving on a suspended driver's license. After obtaining a search warrant, the vehicle was searched and found to contain twenty gray duct taped packages each containing marijuana, weighing a total of 497 pounds (225 kilograms). Also seized were four cellular telephones from the vehicle and $2,082.00 from Smith's pocket.
A federal grand jury indicted Smith in April 2015 (Indiana) and in June 2016 (Arkansas), and he pled guilty in January 2018.
This case was investigated by the Arkansas State Police and the Indiana State Police. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Illegal Alien Who Fired at Officers Sentenced on Federal Drug Trafficking ChargesRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon announced today that Marcos Rodriguez Lopez, 34, a Mexican citizen located in Gaston, South Carolina, was sentenced to nearly 22 years in federal prison for conspiracy to distribute five kilograms or more of cocaine.
According to court documents, Lopez and others conspired to possess with intent to distribute and to distribute multiple kilograms of cocaine. On the morning of January 10, 2017, federal, state, and local authorities executed search warrants at Lopez’s residence and another nearby residence. As officers with the South Carolina Highway Patrol announced their presence and attempted to enter Lopez’s residence, Lopez fired one shot through the door where the officers were located before surrendering. Lopez—who was residing in the United States illegally—was ultimately held accountable for over 12 kilograms of cocaine.
Senior United States District Judge Joseph F. Anderson, Jr., sentenced Lopez to 262 months in federal prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Drug Enforcement Administration (“DEA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), ICE-Homeland Security, the State Law Enforcement Division (“SLED”), Lexington County Sheriff’s Department, Richland County Sheriff’s Department, Sumter County Sheriff’s Department, and Aiken County Sheriff’s Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Hudson County, New Jersey, Woman Admits Conspiracy to Promote Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, woman today admitted her role in a conspiracy to promote a voter bribery scheme, U.S. Attorney Craig Carpenito announced.
Lizaida Camis, 55, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to Count 2 of an indictment charging her with conspiracy to use the mail to promote a voter bribery scheme during the 2013 municipal election in Hoboken.
According to documents filed in this case and statements made in court:
Camis, Dio Braxton, and others, at former Hoboken City Council candidate Frank Raia’s direction, agreed to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Camis and others provided these voters with vote-by-mail applications and then delivered the completed applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis, Braxton and others promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Bank records show that voters who interacted with Camis and Braxton received $50 checks from an entity associated with Raia.
Raia and Braxton were indicted on Oct. 31, 2018, for their roles in the scheme.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2019.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
The charges and allegations against Raia and Braxton are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense Counsel: Brandon D. Minde, Esq., Cranford, New Jersey
Houma Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Peter G. Strasser announced that JACOB HIGGINBOTHAM, age 24, of Houma, was sentenced today after pleading guilty to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana. United States District Judge Susie Morgan sentenced HIGGINBOTHAM to 10 years’ incarceration and 5 years’ supervised release.
HIGGINBOTHAM is one of the eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that HIGGINBOTHAM conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Peter Giandalone, Julien Polk, Paul Melancon, Jeffrey Clines, James Hatch, Angel Renee Vidaure, Eulalio Torres-Cadenas, Delio Alfredo Lopez-Lopez, and Lindsey Lopez. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants Hatch, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages and phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Hot Springs Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Grealin Thomas, age 39, of Hot Springs, Arkansas was sentenced today to 96 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, in March 2017, investigators with the 18th East Drug Task Force and Homeland Security Investigations conducted a controlled purchase of methamphetamine from Thomas. The methamphetamine was later sent to the Arkansas State Crime lab where it tested positive for methamphetamine.
A federal grand jury indicted Thomas in July 2017, and he pled guilty in June 2018.
This case was investigated by the 18th East Drug Task Force and Homeland Security Investigations. Assistant United States Attorney David Harris prosecuted the case for the United States.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Peter G. Strasser announced that CELIO JAVIER JUAREZ-AGUILAR, age 25, a native of Honduras, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Eldon E. Fallon sentenced JUAREZ-AGUILAR to 3 months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on July 15, 2018, JUAREZ-AGUILAR was found in the United States after having been previously deported from the United States on February 25, 2014.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Harrison County man sentenced for his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Michael Lewis Woodyard, of Clarksburg, West Virginia, was sentenced today to five months probation for his participation in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Woodyard, age 27, was sentenced to five years probation. Woodyard pled guilty to one count of “False Statement to Acquire a Firearm” in January 2018. He admitted to making a false statement when purchasing two pistols in Harrison County in March 2017.
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 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 Stephen D. Warner prosecuted the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.U.S. District Judge John Preston Bailey presided.
Georgia Man Sentenced to 27 Months in Prison for Transporting Illegal Aliens Across the CountryRead the Press Release
Jackson, Miss. – Joe Jones, Jr., 24, of Georgia, was sentenced today by United States District Judge Tom S. Lee to 27 months in federal prison followed by two years of supervised release for transporting illegal aliens across the United States, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
In June of 2018, Jones was being paid to drive a minivan full of illegal aliens from Louisiana to Georgia. On his way through Mississippi, a Mississippi Highway Patrol Officer stopped the van and found 10 illegal aliens inside, four of whom were deported from the United States during the past few years.
U.S. Attorney Hurst commended the work of the U.S. Immigration and Customs Enforcement and the Mississippi Highway Patrol in their investigation of this case.
Four Defendants Federally Charged in the State's Largest Methamphetamine SeizureRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging FERNANDO RAMOS-MEZA, 33, PETER MARTIN, 34, JAVIER LOPEZ-LOPEZ, 46, AND JUAN DANIEL VALDEZ-MENDOZA, 23, with multiple drug-trafficking violations. MARTIN is also charged with possession of an unregistered firearm. All four defendants were previously charged via federal complaint on October 5, 2018. The defendants remain in custody.
According to charging documents filed with the court, as a result of law enforcement operations initiated by the Cannon River Drug Task Force, officers executed a search warrant at a North Minneapolis home. During the search of the residence, officers located several items of contraband, a 12-gauge sawed-off pump shotgun, and approximately 191 pounds of methamphetamine (with packaging).
This case is the result of an investigation conducted by the Cannon River Drug Task Force, Homeland Security Investigations, and the Minneapolis Police Department.
Assistant United States Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
FERNANDO RAMOS-MEZA, 33
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
PETER MARTIN, 34
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
- Possession of an unregistered firearm, 1 count
JAVIER LOPEZ-LOPEZ, 46
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
JUAN DANIEL VALDEZ-MENDOZA, 23
Kansas City, Kan.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Fort Dodge Man Sentenced for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm was sentenced November 7, 2018, to twenty years in federal prison.
Carl Douglas Lambert, Jr. 47, from Fort Dodge, Iowa, was convicted of one count of conspiracy to distribute methamphetamine, one count of distribution of methamphetamine and one count of possession of a firearm in furtherance of drug trafficking.
At the plea hearing, Lambert, Jr. admitted that from January 2017 through December 2017 he and others distributed more than 3.5 kilograms of methamphetamine in the Fort Dodge, Iowa area. On November 4, 2017, officers found Lambert, Jr. possessed a .22 caliber pistol in his waistband and over 46 grams of actual (pure) methamphetamine. Lambert, Jr. admitted he intended to distribute the methamphetamine to other person(s) and that he carried the pistol for protection.
Lambert, Jr. was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lambert, Jr. was sentenced to 240 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Lambert, Jr. is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa Division of Narcotics Enforcement and Iowa Department of Criminal Investigations Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3056. Follow us on Twitter @USAO_NDIA.
Former Tesla Employee Charged in Embezzlement Scheme at TeslaRead the Press Release
SAN JOSE – A federal grand jury issued an indictment against Salil Parulekar today, charging him with engaging in an embezzlement scheme, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the indictment, during 2016 and 2017, Parulekar, 32, formerly of San Jose, orchestrated an embezzlement scheme at Tesla Inc. (“Tesla”). At the time, Parulekar was an employee in the Global Supply Management group at Tesla. He was responsible for overseeing Tesla’s relationship with certain suppliers for various parts and services related to Tesla automobiles. Parulekar allegedly used his role to initiate a scheme wherein he diverted money owed to one Tesla supplier and caused it to be paid to another supplier. In sum, Parulekar allegedly embezzled approximately $9.3 million.
According to the indictment, Parulekar learned in January 2017 that Tesla had terminated its supplier relationship with Schwabische Huttenwerke Automotive GmbH (“SHW”). At the time of the termination, SHW had only provided a limited number of sample products, specifically, motor pumps, to Tesla. Parulekar allegedly knew the termination meant that Tesla was withholding future payments to SHW and that Parulekar was not authorized to contravene this decision. Notwithstanding these facts, Parulekar redirected a series of payments intended for another supplier, Hota Industrial Manufacturing Co., Ltd. (“Hota”), and caused them to be paid to SHW.
The indictment alleges Parulekar caused the diversion of payments by falsifying invoices; creating fraudulent accounts payable documents, such as bank account information and wire instructions; and impersonating Hota employees. Specifically, Parulekar allegedly stole the identity of a Hota employee and, by impersonating the employee, deceived Tesla’s Accounts Payable division into switching the bank account information for Hota and SHW.
Parulekar was charged with nine counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum penalty for each count of wire fraud is twenty years’ imprisonment and a $250,000 fine. The maximum sentence for aggravated identity theft, in violation of 18 U.S.C. § 1028A, is two years in prison—to be served consecutively to the underlying felony—and a $250,000 fine. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI.
Former Police Officer Pleads Guilty to Sending Obscene Material to a ChildRead the Press Release
PROVIDENCE - A former Narragansett, RI, police officer pleaded guilty in federal court in Providence today to a charge of transfer of obscene material to a minor, announced United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Appearing before U.S. District Court Judge Chief Judge William E. Smith, Matthew C. Riley, 51, of Narragansett, admitted to the Court that in approximately late 2015 or early 2016, he began communicating with an individual via a website and through text messaging and other messaging communication technologies, such as Snapchat and Kik messenger. Early in their communications, the person with whom Riley was communicating told him that she was 15-years-old and that she was a 9th grade student. On May 9, 2016, in a series of texts with the 15-year-old, Riley discussed what time her high school day ended; that she was in 9th grade; and that she did not turn 16 until October.
During his communications with the 15-year-old, Riley identified himself as “Chris M.” and told her he was 29-years-old, lived in Boston, was in the Navy, and worked as a physical therapist.
Over the course of a few months, at times stopping for days or weeks, and then resuming, Riley’s communications with the 15-year-old included sexually explicit communications, including graphic, sexually explicit pictures of himself and videos of himself committing a sex act.
Riley is scheduled to be sentenced on February 1, 2019.
The transfer of obscene matter to another individual who has not attained the age of 16 years is punishable by statutory penalties of up to 10 years in federal prison, 3 years supervised release, and a fine of $250,000. Additionally, upon conviction, Riley will be required by statute to register as a sex offender.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the FBI and Rhode Island State Police.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Nebraska State Patrol for their continued assistance investigating and preparing this matter for prosecution.
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Former Montgomery Lawyer Receives 37-Month Sentence for Defrauding HUD of over $1 MillionRead the Press Release
Montgomery, Ala. – On Tuesday, November 6, 2018, Christopher B. Pitts, 48 years old and a Georgia resident who was previously a practicing attorney in Montgomery, Alabama, received a 37-month sentence for devising a scheme to commit wire fraud affecting a financial institution. United States District Judge L. Scott Coogler sentenced Pitts after he pleaded guilty to defrauding the United States Department of Housing and Urban Development (HUD).
According to court documents, between 2005 and 2008, Pitts served as a closing attorney for the sales of all homes owned by HUD in northern and central Alabama. As the closing attorney, it was Pitts’ job to receive purchase money, pay closing costs, and transmit to HUD the remaining purchase money. As Pitts admitted when he pleaded guilty, on numerous occasions, he did not actually remit payments to HUD. As a result of Pitts’ fraud, HUD never received the money it was owed for the sale of HUD-owned houses.
At the sentencing hearing, Judge Coogler found that Pitts was responsible for causing a total loss to HUD of $1,090,888.53. The judge ordered that Pitts make full restitution to HUD upon his release from prison.
This case was investigated by HUD’s Office of Inspector General. Assistant U.S. Attorney Jonathan S. Ross prosecuted the case.
Former Major at Angola Prison Convicted of Beating a Handcuffed and Shackled InmateRead the Press Release
Daniel Davis, 41, a former Major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury today in federal court for beating an inmate who was handcuffed, shackled, and not resisting. In a previous trial in January, Major Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath. Four other officers—former Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up. At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.
After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment. The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a bloody gash under his eye, a dislocated shoulder, broken ribs, and a collapsed lung.
“Mr. Davis abused the justice system by beating an inmate, writing false reports, and using his influence and power as a corrections officer to encourage others to lie,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to prosecute correctional officers who violate federal criminal law.”
“Our office is committed to protecting the civil rights of all citizens and ensuring that government employees in positions of authority don’t abuse that authority,” said U.S. Attorney Brandon J. Fremin. “I want to thank the Civil Rights Division of the Department of Justice, the FBI, and the Louisiana Office of Inspector General for their work on this matter. “
"Charged with protecting the civil rights of others, to include those in custody, is a responsibility the FBI takes very seriously,” said Eric J. Rommal, FBI New Orleans Special Agent in Charge. “Law enforcement officers and correctional officers acting under the color of law must ensure a person's civil rights are not violated. The jury's decision today reinforces the FBI's commitment that civil rights and color of law violations will not be tolerated.”
“Corrections officers are given great authority and power in our system because public safety depends on them doing their jobs well,” said Louisiana Inspector General Stephen Street. “When those corrections officers commit crimes by choosing to abuse their power, as defendant Davis did in this case, they must be held accountable, or public trust in the system suffers. The jury’s guilty verdict should send a clear message that we have zero tolerance for it and will continue to aggressively pursue these cases whenever and wherever they may arise. I wish to thank the FBI, United States Attorney Brandon Fremin and the prosecutors from the DOJ Civil Rights Division for their outstanding work on this case.”
No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. The case was tried by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Frederick A. Menner, Jr., of the Middle District of Louisiana.
Former Law Office Manager Sentenced to 21 Months in Federal PrisonRead the Press Release
Memphis, TN – Misty West, 41, of Olive Branch, Mississippi was sentenced to serve 21 months in federal prison for filing false tax returns for calendar years 2013-2015. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to a superseding indictment, returned by the federal grand jury in February of this year, West, the former office manager, bookkeeper and paralegal at the Fowler Law Firm, engaged in a scheme to defraud the law firm and its owner, Charles Wesley Fowler, of more than $400,000 between August 2011 and July 2016.
The superseding indictment also alleged that West filed false tax returns for calendar years 2013-2015 by substantially underreporting her total income for those years. West entered a guilty plea to the tax charges in July.
United States District Judge Thomas L. Parker, also ordered West to pay restitution to the United States in the amount of $80,974 and to the Fowler Estate and its insurer CAN Financial in the total amount of $410,000.
U.S. Attorney D. Michael Dunavant said, "This defendant victimized her employer and defrauded the United States by using her position of trust to commit crimes of dishonesty. Financial fraud does not pay, and this office will aggressively prosecute these cases to hold offenders accountable and provide restitution to the victims and the government."
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations Division.
Assistant U.S. Attorneys Carroll L. Andre´ III and Lorraine Craig prosecuted the case on the government’s behalf.
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Florida Man Sentenced for Cocaine ConspiracyRead the Press Release
U.S. Attorney Peter Strasser announced that MIGUEL GAMEZ, age 32, of Fort Meyers, Florida, was sentenced today for conspiracy to distribute 5 kilograms or more of cocaine hydrochloride and for obstruction of justice.
GAMEZ pled guilty on June 21, 2017, to conspiring with others to distribute more than 5 kilograms of cocaine hydrochloride, and to obstructing justice by attempting to destroy a cellular telephone.
Chief Judge Nannette Jolivette Brown sentenced GAMEZ to 70 months in prison, as well as 3 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating the matter. Assistant U.S. Attorney Jonathan L. Shih is in charge of the prosecution.
Florida Businessman Pleads Guilty to Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Florida businessman pleaded guilty today to conspiracy to commit wire fraud for orchestrating a scheme that caused over $1 million in losses to multiple victims.
According to court documents, Armando Almirall, 37, of Oviedo, was one of the managing principals of a company called Aura Exchange LLC (AURA). Almirall and his co-conspirators, through AURA, promised their clients that they could help obtain funding for a host of business purposes, such as real estate transactions and television projects. Instead, Almirall and his co-conspirators spent large portions of their clients’ funds on personal expenses, cash withdrawals and wire transfers with the clients’ knowledge or consent. In order to induce the victims to provide AURA with money, Almirall and his co-conspirators made a host of fraudulent misrepresentations, including representing to clients that they were guaranteed to receive their initial equity deposits back when, in fact, none of the victims ever received any money from AURA. Almirall claimed that AURA had offices in Zurich, London, and New York when no such offices existed. Almirall also provided clients with fraudulent bank documents showing that AURA could obtain millions (and in one instance, billions) in funds for their clients. In total, the victims suffered losses of at least $1.6 million.
Almirall pleaded guilty to conspiracy and wire fraud and faces a maximum penalty of 20 years in prison when sentenced on Feb. 8, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Jamar K. Walker is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-392.
Five Individuals Connected with Connecticut Energy Cooperative Charged with Misusing FundsRead the Press Release
United States Attorney John H. Durham, Special Agent in Charge Brian C. Turner of the FBI’s New Haven Division, and Special Agent in Charge Kristina O’Connell of IRS Criminal Investigation in New England today announced that, on November 6, 2018, a federal grand jury in New Haven returned two indictments charging a total of five individuals connected with a southeastern Connecticut energy cooperative with offenses related to the theft of federal funds. The indictments were unsealed today.
As alleged in both indictments, the Connecticut Municipal Electric Energy Corporation (“CMEEC”) is a cooperative public corporation that permits municipal electric utilities in Connecticut to join together to furnish electric power in the municipalities’ areas of operation. CMEEC’s members included the City of Norwich, the City of Groton, the Borough of Jewett City, the Second Taxing District of the City of Norwalk, the Third Taxing District of the City of Norwalk, and the Town of Bozrah. As the owners of CMEEC, each member town executed an agreement through its respective municipal electric utility outlining the terms and conditions under which the CMEEC members participated together in CMEEC. The CMEEC membership agreement provides that excess revenues are designated as “CMEEC Margin,” and that the excess revenues are to be returned to the member towns to help keep electricity costs stable for ratepayers.
Between 2010 and 2015, CMEEC received more than $9 million dollars from the U.S. Department of Energy. CMEEC member towns also received funds from federal grants.
Charged in the first indictment are:
- DREW RANKIN, 57, of Columbia. Rankin is the chief executive officer of CMEEC.
- JAMES SULLIVAN, 52, of Norwich. Until October 2015, Sullivan was a City of Norwich representative and the chairperson of the CMEEC Board of Directors.
- JOHN BILDA, 54, of Norwich. Bilda is the City of Norwich representative on the CMEEC Board of Directors and an employee of the City of Norwich.
- EDWARD DeMUZZIO, 77, of Groton. DeMuzzio was a City of Groton representative and the secretary of the CMEEC Board of Directors.
- EDWARD PRYOR, 62, of Groton. Pryor is the chief financial officer of CMEEC.
The first indictment alleges that Rankin, Sullivan, Bilda, DeMuzzio and Pryor planned, organized and directed lavish trips outside of Connecticut, including trips to the Kentucky Derby in 2015 and 2016, and to a luxury golf resort in West Virginia in 2015. These trips did not relate to CMEEC business or CMEEC Member business, but were intended to personally benefit, compensate and reward the co-conspirators, their family members, friends and associates. Costs for the trips, which totaled more than $800,000, included travel expenses, private chartered airfare, first-class hotel accommodations, meals, tickets to sporting events, golf fees, souvenirs and gifts.
It is alleged that the co-conspirators did not seek the approval of the CMEEC Board of Directors for these trips and did not include the costs for the trips as budget expenses in the annual general administrative budgets proposed to and approved by the CMEEC Board of Directors. The co-conspirators directed that the funds used to pay for the trips come from the CMEEC Margin account, without a vote of the CMEEC Board of Directors and without the written consent of the member towns as required by the CMEEC membership agreement. It is further alleged that, in January 2015, without a vote of the CMEEC Board or consent of the member towns, Pryor directed that a new “contra-margin” account be created for the costs of the Kentucky Derby trips to come from the CMEEC Margin account.
The indictment alleges that the CMEEC Board of Directors had committees, including the compensation committee, which was responsible for determining the compensation of Rankin as CMEEC’s chief executive officer. Bilda and DeMuzzio were representatives on the compensation committee. On February 25, 2016, Bilda made a motion at a CMEEC Board of Directors meeting to modify the compensation package of Rankin retroactive to January 1, 2016. The motion was seconded by DeMuzzio. The modification increased Rankin’s overall compensation.
It is further alleged that, in response to reporter inquiries about the Kentucky Derby and golf trips, Rankin underreported the costs of the trips, omitted the names of attendees who were not CMEEC employees or board members, and made other false statements related to how the trips were funded. After the trips were known to the general public, CMEEC canceled a reservation it had made for the 2017 Kentucky Derby, and was refunded only approximately $90,000 of the $298,960 it had prepaid for the trip in May 2016.
The indictment charges each defendant with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years, and three counts of theft concerning a program receiving federal funds, an offense that carries a maximum term of imprisonment of 10 years.
The second indictment charges Rankin and Sullivan with engaging in a conspiracy to pay for Sullivan’s personal expenses with CMEEC funds. It is alleged that Sullivan submitted his personal expenses on a regular basis via “expense reports” that Rankin approved and directed to be paid out of CMEEC funds. Sullivan’s personal expenses were charged to the CMEEC’ account for lobbying expenses, even though Sullivan was not a registered lobbyist for CMEEC. Between January 2012 and August 2015, Rankin authorized the payment of numerous personal expenses for Sullivan, including airfare for dozens of flights Sullivan took, trips for Sullivan and his family members to attend the Kentucky Derby in 2013, 2014, and 2015, and airfare for a flight for Sullivan’s wife to travel to Key West, Florida, in December 2014.
The second indictment charges Rankin and Sullivan with one count of conspiracy and three counts of theft concerning a program receiving federal funds.
“CMEEC has received millions of dollars in grants from the U.S. Department of Energy,” said U.S. Attorney Durham. “Instead of protecting these funds and returning excess revenue to member towns and ratepayers, these defendants are alleged to have used the CMEEC Margin Account as a secret slush fund to pay for lavish junkets for themselves and their family and friends, as well as for other inappropriate expenses. The U.S. Attorney’s Office is committed to working with our federal law enforcement partners to safeguard public funds and prosecute those who steal from the public.”
“At a time when there are Connecticut residents struggling to afford basic necessities such as food, housing and electricity, the FBI and its law enforcement partners will continue to hold public officials, and those with responsibility for public funds, accountable for fraud, waste and abuse of those funds,” said FBI Special Agent in Charge Turner.
“The criminal conduct alleged in the indictment is yet another example of those abusing high-level corporate positions to personally benefit at the expense of others,” said IRS Criminal Investigation Special Agent in Charge O’Connell. “The funds CMEEC allegedly misappropriated for these extravagant trips was motivated by greed, to the detriment of the member towns and ratepayers. IRS will continue to support these important white-collar investigations, working alongside our federal partners and the U.S. Attorney’s Office.”
Each of the five defendants appeared this afternoon before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty to the charges, and was released on a $100,000 bond.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division, with the assistance of the U.S. Department of Energy. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Sarah P. Karwan.
Final Defendant in Staged Automobile Accident Insurance Fraud Conspiracy SentencedRead the Press Release
Marvin David Ramirez Sent to Prison for his Role in the Fraud at the Primary Rehab Center in Wyoming, Michigan
GRAND RAPIDS, MICHIGAN — Marvin David Ramirez, 45, of Grand Rapids, Michigan, was sentenced to prison in federal court yesterday. Ramirez pled guilty in June of this year to conspiracy to commit mail fraud related to a staged automobile accident ring that operated at Primary Rehab Center in Wyoming. United States District Judge Paul L. Maloney sentenced Ramirez to 37 months in prison. When imposing the sentence, Judge Maloney commented that "Michigan residents pay some of the highest auto insurance rates in the country and fraud schemes like the present case contribute significantly to these high premiums." The court also ordered Ramirez to pay restitution of $298,992.29 to the automobile insurance companies that he defrauded.
"Ramirez and his cohorts operated a sophisticated scheme over several years in our community," stated U.S. Attorney Andrew Byerly Birge. "The well-deserved sentence imposed by the court reflects the leadership role played by Ramirez and the fact that he greatly profited from this fraud at the expense of Michigan’s automobile insurance system."
The staged automobile accident ring operated at Primary Rehab from December 2011 to May 2014. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that insurance claims could be made with their automobile insurance companies. The managers of the clinics and others working with them then told the accident participants what symptoms to present to physicians affiliated with the ring so that they would sign a prescription for physical therapy. The accident participants then sought unnecessary therapy treatment at the clinics. Typically, after a few therapy sessions, the accident participants signed blank therapy treatment forms that were later signed by massage therapists to make it appear as if the accident participants obtained treatment when they truly did not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided. The clinic billed automobile insurers over $1,000,000.00, and obtained fraudulent payments in excess of $600,000.00.
"Elaborate insurance fraud schemes like the one perpetrated in this case disrupt the economy and cause law-abiding citizens to pay more for their coverage," said HSI Special Agent in Charge Steve Francis. "HSI is committed to working with our law enforcement partners to bring down organized criminals that have no concern for the law or their affected victims."
"These defendants engaged in conduct that drives up insurance rates and health care costs," said Timothy Slater, Special Agent in Charge, Detroit Division of the FBI. "The FBI remains committed to working alongside our partners at Homeland Security Investigations and the U.S. Attorney’s Office to ensure that individuals who engage in this type of fraudulent conduct are brought to justice."
Three other individuals were also convicted and sentenced in conjunction with the staged auto accident insurance fraud scheme at Primary Rehab Center:
• Maria Del Carmen Ramirez-Rodriguez, 64, Wyoming, Michigan, part-owner of Primary Rehab (40 months’ imprisonment)
• Alder Hernandez, 45, Tampa, Florida, part-owner of Primary Rehab (37 months’ imprisonment)
• Osvaldo Rivas-Martinez, 46, Port Richey, Florida, patient-recruiter for Primary Rehab (3 years’ probation)
The sentencing of Marvin Ramirez completes a multi-year prosecution of individuals in West Michigan engaged in defrauding Michigan automobile insurers. Previously sentenced for their roles at three other clinics, Revive Therapy, Renue Therapy, and H&H Rehab, were:
• Belkis Soca-Fernandez, 58, Tampa, Florida, part-owner of Revive Therapy and Renue Therapy (135 months’ imprisonment)
• David Sosa-Baladron, 43, Tampa, Florida, part-owner of Revive Therapy and Renue Therapy (120 months’ imprisonment)
• Antonio Ramon Martinez-Lopez, 35, Tampa, Florida, manager of Revive Therapy (87 months’ imprisonment)
• Gustavo Acuna-Rosa, 30, Versailles, Kentucky, manager of Renue Therapy (32 months’ imprisonment)
• Yoisler Herrera-Enriquez, 31,Wyoming,Michigan, manager and massage therapist, H&H Rehab (57 months’ imprisonment)
• Eduardo Pardo-Oiz, 35, Nashville, Tennessee, recruiter and accident participant (2months’ imprisonment)
• Dolis Rojas-Lopez, 31, Wyoming, Michigan, recruiter and accident participant (3 years’ probation)
• Yosvany Gonzalez-Duran, 42, Lansing, Michigan, recruiter and accident participant (1 year probation)
The Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, in Grand Rapids, Michigan, conducted the investigation of the case. Assistant United States Attorneys Ronald M. Stella and Timothy VerHey handled the prosecution.
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Fifth Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, De la Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States. He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.
De la Cruz is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.
De la Cruz is the fifth defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Fifth Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, De la Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States. He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.
De la Cruz is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.
De la Cruz is the fifth defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Federal Jury Convicts a Marshall County Man for Distributing MethamphetamineRead the Press Release
BIRMINGHAM – A federal jury Wednesday convicted a Marshall County man for distributing and possessing with the intent to distribute methamphetamine, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp Jr.
The jury returned a guilty verdict against Michael Pedro Andres, 31, after two days of testimony before U.S. District Court Judge Abdul Kallon. A sentencing date has been set for February 19, 2018 at 10:30 a.m. in Birmingham.
The evidence at trial showed that in August 2017, on two separate occasions, Andres unlawfully distributed 36.127 grams of methamphetamine and 49.336 grams of methamphetamine, totaling over a pound of methamphetamine. On August 16, 2017, Andres was arrested for possessing 421.10 grams of methamphetamine with the intent to distribute.
“My office is dedicated to stop the influx of dangerous drugs like methamphetamine into our communities,” Town said. “The fact that more than a pound of this illegal narcotic is off the streets is significant as are the penalties associated with this criminal activity. This defendant faces a potential life sentence for his role in putting this poison on our streets. So to other drug dealers out there, rest assured, we will pursue you and stop you.”
“Drug trafficking is a dangerous business that ruins lives every day,” Sharp said. “Thanks to the guilty verdict handed down today, north Alabama is safer with Anders off the street and unable to carelessly endanger our communities with the poison he was peddling.”
FBI, along with the DeKalb County Drug Task Force and FBI North Alabama Safe Streets Task Force investigated the case, which Assistant U.S. Attorney Laura Hodge prosecuted.
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Federal Jury Convicts Buffalo Man of Drug Distribution Which Resulted in Overdose DeathRead 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 a federal jury has convicted Dontrell Wise, 32, of Buffalo, NY, of conspiracy to possess with intent to distribute heroin, butyryl fentanyl, fentanyl, cocaine, and crack cocaine; possession with intent to distribute butyryl fentanyl; and distribution of fentanyl causing death. As a result of Wise’s criminal history, the “death results” charge carries with it a mandatory sentence of life in prison.
Assistant U.S. Attorneys Michael J. Adler and Brendan T. Cullinane, who handled the prosecution of the case at trial, stated that between mid-November of 2017 and November 23, 2017, the defendant distributed fentanyl which caused the death of a 28 year old female in Cheektowaga, NY. The evidence at trial established that Wise sold approximately 10 grams of a substance containing fentanyl which ultimately was injected by the woman, resulting in her overdose death. Hours later, the Cheektowaga Police Department responded to the scene to find the victim dead, and a wax envelope with fentanyl residue left behind.
Two weeks earlier, on November 9, 2017, the defendant was stopped by Buffalo Police officers in a rental vehicle with heavily tinted windows. Wise was found in possession of over $8,000 in cash, while a co-conspirator, Jerell Weathersby, had a quantity of butyryl fentanyl. The evidence further established that the defendant was a central member of a larger conspiracy crossing state lines, involving the distribution of narcotics in both Buffalo, NY, and Bradford, PA.
Wise was arrested along with co-defendants Lemario Jones and Jerell Weathersby. Jones was convicted of distribution of a controlled substance and is awaiting sentencing. Weathersby was convicted of possession with attempt to distribute butyryl fentanyl and sentenced to 21 months in prison.
Today’s verdict is the result of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert, the Buffalo Police Department, under the direction of Police Commissioner Byron Lockwood, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Cheektowaga Police Department, under the direction of Chief David J. Zack.
Sentencing is scheduled for February 14, 2019, at 3:00 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial of the case.
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Duck Boat Captain Indicted for Misconduct, Negligence Resulting in 17 Deaths at Table Rock LakeRead the Press Release
SPRINGFIELD, Mo. – The captain of the duck boat that sank at Table Rock Lake last summer, resulting in the deaths of 17 people, was indicted by a federal grand jury today.
“Our entire community was shocked and saddened by the loss of 17 lives in this tragic event last summer,” U.S. Attorney Tim Garrison said. “Today’s indictment alleges that the misconduct, negligence and inattention to duty by the ship’s captain caused or contributed to the loss of those lives.
“This remains an active and ongoing investigation,” Garrison added. “To better enable our office in its urgent pursuit of justice through this investigation, we have requested various courts presiding over the related civil lawsuits to allow our intervention and stay certain manners of discovery to prohibit those lawsuits from impeding or jeopardizing our work. Today’s indictment illustrates the urgency our investigative team has shown in its pursuit so as not to unnecessarily burden other legal avenues utilized by victims.”
Kenneth Scott McKee, 51, of Verona, Mo., was charged in a 17-count indictment returned by a federal grand jury in Springfield, Mo. McKee was the captain of Stretch Duck 7, operated by Ripley Entertainment, Inc. The company operated duck boat tours in Branson, Mo., and on Table Rock Lake and Lake Taneycomo.
Today’s indictment charges McKee with misconduct, negligence, or inattention to duty by a ship’s officer, resulting in the death of another person. McKee is charged with one count for each of the 17 passengers (including one crew member) who died when Stretch Duck 7 sank on July 19, 2018.
The federal indictment alleges that McKee committed a number of acts of misconduct, negligence, and inattention to his duties while piloting Stretch Duck 7 both before and during severe weather conditions.
McKee allegedly failed to properly assess incoming weather prior to entering the vessel on the water. At the time McKee drove the vessel into the water, according to the indictment, there was lightning in the area and severe weather approaching. The indictment also alleges that McKee failed to properly assess the nature of the severe weather while the vessel was on the water.
McKee allegedly operated Stretch Duck 7 in violation of the conditions and limitations specified in the vessels’ certificate of inspection. When severe weather (including increased wind speed) arrived at the vessel’s location, the indictment says, McKee failed to instruct passengers to don personal flotation devices. He allegedly also failed to immediately increase speed and head to the nearest shore. He allegedly caused or allowed the vessel’s plastic side curtains to be lowered, which created a barrier over the vessel’s exits in the event of a need to abandon ship.
The first time the vessel’s bilge alarm sounded, the indictment says, McKee failed to raise the side curtains, failed to instruct passengers to don personal flotation devices, and failed to prepare to abandon ship. The second time the vessel’s bilge alarm sounded, the indictment says, McKee again failed to raise the side curtains, failed to instruct passengers to don personal flotation devices, and failed to prepare to abandon ship. McKee allegedly failed to prepare to abandon ship when there was an unacceptable loss of freeboard on the vessel as well. (Freeboard refers to distance from the waterline to the upper deck level; a loss of freeboard is when waves are overtopping the freeboard, thus causing the ship to fill with water.)
The indictment alleges that these acts of misconduct, negligence, and inattention to duty separately and collectively caused the lives of 17 persons on board Stretch Duck 7 to be lost.
Under federal statutes, a conviction for this offense is subject to a sentence of up to 10 years in federal prison without parole on each count of conviction, plus a fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of any convicted defendant is determined by the court based on the advisory sentencing guidelines and other statutory factors.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Coast Guard Investigative Service, the Missouri State Highway Patrol, the Stone County, Mo., Sheriff’s Department, the Taney County, Mo., Sheriff’s Department, the Branson, Mo., Police Department, the Missouri Attorney General’s Office, the Stone County, Mo., Prosecutor’s Office, and the Taney County, Mo., Prosecutor’s Office.
Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Carlos Walker, 43, of Newton, Mississippi, was sentenced on November 6, 2018, for his participation in the possession with intent to distribute two kilograms of cocaine. Walker pled guilty to the charge in June of 2017.
United States District Court Judge William H. Steele imposed a sentence of 24 months’ imprisonment, to be followed by four years of supervised release. The judge ordered that Walker undergo testing and treatment for drug abuse while in prison and during his supervised release. No fine was imposed, but the judge ordered that Walker pay $100 in special mandatory assessments.
The case was investigated by the Mobile Police Department, the Mobile County Street Enforcement Narcotics Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Dominican Republic Man Re-Sentenced to 121 Months in Prison for Drug Charges and Six Months in Prison for Illegal EntryRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez re-sentenced Tomas Liriano Castillo, 44, to 121 months in prison followed by four years of supervised release for conspiracy to possess cocaine with the intent to distribute and possession with intent to distribute cocaine and six months in prison for illegal entry, United States Attorney Gretchen C.F. Shappert announced. Judge Gomez also ordered Castillo to pay a $210 special assessment and complete 300 hours of community service.
According to the evidence presented at trial, on May 9, 2016, Castillo traveled by boat from Tortola to Hull Bay, in St. Thomas with a back pack containing cocaine. After Castillo got off the boat with the back pack, he tried to discard the backpack when he saw agents from the Drug Enforcement Administration (DEA) approaching him. Testimony at trial further established that when the back pack was recovered, it contained approximately 5.8 kilograms of cocaine, and that Castillo was not in the Virgin Islands lawfully. Castillo appealed unsuccessfully to the Third Circuit. Although, the Third Circuit affirmed the convictions, it noted an error in the sentence and remanded for resentencing.
The case was investigated by the DEA and U. S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorneys Sigrid Tejo-Sprotte.
District Court Permanently Enjoins 20 Defendants Connected to a Multi-Million Dollar Mail Fraud SchemeRead the Press Release
A federal court in Las Vegas, Nevada permanently enjoined six individuals and 14 corporate entities from activities related to an alleged mail fraud scheme, the Department of Justice announced today.
In a complaint filed in February, 2018, the United States alleged that the defendants mailed thousands of fraudulent solicitations each week. The solicitations purported to inform recipients that they had won large cash or prize packages, but needed to pay a fee to claim the winnings. The solicitations were styled as individual notices and stressed to recipients that they must return the requested fee quickly. According to the complaint, some of the solicitations contained what appeared to be handwritten notes congratulating the recipients on their good fortune, while others reassured recipients that the letters were not a scam. Individuals who sent the requested fees did not receive the expected prizes. The complaint alleged that the Las Vegas-based scheme defrauded consumers out of more than $10 million.
“Consumers should be able to open their mail without encountering false promises of wealth,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “The Department has and will continue to relentlessly pursue schemes like this one.”
“Some of these defendants constantly changed their schemes in attempts to stay one step ahead of the law,” said Delany DeLeon-Colon, Inspector in Charge for the U.S. Postal Inspection Service. “These results make clear that we will peel back the layers, find the individuals behind these schemes, and hold them to account.”
The complaint alleged that defendant Patti Kern orchestrated the activities of the other individual defendants, all of whom live in the Las Vegas area. The complaint alleged that defendants Edgar Del Rio, Sean O’Connor, and Epifanio Castro printed the solicitations; defendant Andrea Burrow opened and processed victim responses; and defendant Stephen Fennell managed the scheme’s lists of recipients. The solicitations were mailed under a plethora of company names, including 11 of the entities named as corporate defendants in the complaint.
The district court entered a default judgment against 11 defendants today and previously entered consent decrees against the nine other defendants named in the complaint. Those orders prohibit the defendants from mailing solicitations like those identified in the complaint, as well as from engaging in activities related to such mailings, including receiving, handling, or opening any victim mail responding to solicitations and using or benefiting from lists of victims who previously responded to solicitations. Additionally, the orders authorize the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the scheme’s victims.
The matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in coordination with the United States Attorney’s Office for the District of Nevada and the United States Postal Inspection Service. Additional information on the original enforcement actions and Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants.
Department of Justice’s Judicial Studies Institute Celebrates Impact on Mexico’s JudiciaryRead the Press Release
The Department of Justice’s Office of Prosecutorial Development and Training (OPDAT), with the support of the Department of State’s International Narcotics and Law Enforcement Division (INL), celebrated the release of “Reflections on the Accusatory System: Shared Experiences” in the Salón Marqués-Conde of the Hotel Marquis Reforma in Mexico City on the evening of Nov. 7.
This volume, authored by a cohort of judges from the Puerto Rican Judiciary, the Federal Judiciary of the United States, and the Judiciary of Colombia, gathers the insights of OPDAT’s closest judicial partners on the role of judges within Mexico’s new accusatory criminal justice system. These judges have generously volunteered their time and expertise to work with OPDAT’s Judicial Studies Institute (JSI) in Mexico and Puerto Rico since 2016. The Honorable Edgardo Rivera García, Associate Justice of the Supreme Court of Puerto Rico, and the Honorable Gustavo Gelpí, Chief Judge of U.S. District Court for the District of Puerto Rico, have been especially instrumental in supporting OPDAT’s programming. The JSI program, funded by the Merida Initiative, strengthens the effectiveness of hundreds of Mexican federal appellate and amparo judges.
“The exchange among our dear friends at the Puerto Rican Supreme Court and the Puerto Rican federal courts, gave us a completely distinct outlook from the judicial trainings in countries like Chile and Colombia,” said Justice of the First Chamber of the Mexican Supreme Court Justice, the Honorable Jorge Mario Pardo Rebolledo. “The shared experience [of the Mexico-Puerto Rico Judicial Studies Institute] has been and continues to generate the most useful knowledge for Mexico’s new accusatory criminal justice system.”
This event commemorated the commitment of OPDAT and its partners to supporting Mexico’s judicial sector in the face of the challenges presented by transnational organized crime.
Defendant arraigned in phone scam targeting U.S. victimsRead the Press Release
ATLANTA – Mehboob Mansurali Charania was arraigned on charges relating to his involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses. Charania was indicted by a federal grand jury on November 6, 2018.
“Telephone scammers seek to profit by exploiting United States citizens, including the elderly and other vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak. “Citizens should be wary of anyone demanding money over the phone.”
“Since 2013, the Treasury Inspector General for Tax Administration (TIGTA) has investigated numerous instances in which individuals who fraudulently represent themselves as IRS officials in order to extort money from taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We will not back down from our pursuit of these criminals, and will continue to work with our law enforcement partners to bring them to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The indictment alleges that the defendant took part in a sophisticated scheme organized in India, including a network of call centers. Call center operators allegedly telephoned U.S. residents and misled the potential victims into sending money utilizing a number of different confidence scams.
The scams included IRS impersonation scams where the callers pretended to be IRS employees demanding payment of taxes and fees. Other scams included grant scams where callers directed victims to pay upfront fees for fictitious grants, student loan scams where callers threatened victims if they did not pay fictitious taxes and fees associated with student loans, and hacking scams where callers would gain remote access to the victim’s computer, lock the victim out of the computer, and deny access to the computer until the victim provided payment.
If the victims agreed to pay, the call centers allegedly would have the victims send the funds to the attention of fictitious names used by Charania through wire transfers, including through MoneyGram and Western Union. The indictment charges Charania with wire fraud and operating an unlicensed money transmitting business.
Charania, a citizen of India residing in Atlanta, was arraigned on November 7, 2018 before U.S. Magistrate Judge Justin S. Anand. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S Attorney Jolee Porter is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Debra Bluto Pleads Not Guilty to Social Security FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Debra Bluto, 64, of St. Albans Bay, pleaded not guilty today in United States District Court in Burlington to charges that she defrauded the Social Security Administration. U.S. Magistrate Judge John M. Conroy released Bluto on conditions pending trial, which has not been scheduled.
On October 24, a federal grand jury in Rutland returned a four-count indictment charging Bluto with stealing government funds and making false statements to the Social Security Administration. According to the indictment, Bluto’s grandson began receiving Supplemental Security Income benefits from the government in 2001. SSI is a special needs-based benefit program designed to provide financial assistance to aged, blind and disabled persons who have little or no income. The benefits for Bluto’s grandson were paid directly to Debra Bluto as her grandson’s representative payee.
For most of the period between May 2008 and January 2017, Bluto’s grandson was incarcerated following his convictions for serious crimes. By law, Bluto’s grandson was not entitled to receive SSI benefits during any period of incarceration. Nonetheless, Bluto continued to receive her grandson’s SSI benefits for the entire time he was in jail. According to the indictment, in annual reports she had to file with the Social Security Administration, Debra Bluto concealed the fact that her grandson was in prison and falsely claimed that she used all the SSI funds to pay for his care. In fact, the indictment charges, Debra Bluto converted those illegitimate payments – which totaled approximately $50,000 - to her own benefit.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Bluto faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Office of the Inspector General of the Social Security Administration.
Bluto is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Danville Man Sentenced on Federal Drug and Gun ChargesRead the Press Release
Danville, VIRGINIA – A federal court today sentenced Keemo Jonathan Lee, a Danville man who previously pleaded guilty to a series of federal drug and gun charges related to the sale of cocaine, heroin and illegal firearms, to 37 months in federal prison. United States Attorney Thomas T. Cullen made the announcement as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods initiative to reduce violent crime.
Lee, 23, pleaded guilty on August 7, 2018, to three counts of distribution and possession with the intent to distribute cocaine, two counts of distribution and possession with the intent to distribute heroin, and two counts of the sale of a firearm to a prohibited person.
“As this prosecution indicates, we are committed to working with our federal, state, and local law-enforcement partners through our Project Safe Neighborhoods initiative to reduce violent crime in Danville,” U.S. Attorney Cullen stated. “We have made progress towards this goal over the past several months, but will continue our coordinated assault until we achieve a significant and lasting reduction.”
According to a statement of facts read into the record at a previous hearing by Assistant United States Attorney Rachel Swartz, should the matter have gone to trial the United States would have proven beyond a reasonable doubt that on multiple occasions, officers with the Danville Police Department, utilizing a confidential source, made controlled purchases of cocaine, heroin, and illegal firearms from Lee.
One such controlled purchase, on June 29, 2017, was conducted at a gas station 326 feet from Danville Community College and 908 feet from Grove Park Preschool’s playground. During the June 29, 2017 controlled buy, Lee sold a confidential source 3.2 grams of cocaine and a Smith & Wesson M&P .40 Shield handgun, with ammunition, for $500.
On July 25, 2017, during another controlled purchase, Lee sold a confidential source cocaine and a SCCY CPX-1 handgun for $400. After Lee changed locations for the transaction multiple times, the exchange ultimately took place 726 feet from Danville Community College.
The investigation of the case was conducted by the Danville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rachel Swartz prosecuted the case for the United States.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting each community’s most violent criminals. The Department of Justice directed all U.S. Attorney’s Offices to work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
DOJ and DHS Issue New Asylum RuleRead the Press Release
Acting Attorney General Matthew Whitaker and Department of Homeland Security Secretary Kirstjen Nielsen today announced an Interim Final Rule declaring that those aliens who contravene a presidential suspension or limitation on entry into the United States through the southern border with Mexico issued under section 212(f) or 215(a)(1) of the Immigration and Nationality Act (INA) will be rendered ineligible for asylum.
The Acting Attorney General and the Secretary issued the following joint statement:
“Consistent with our immigration laws, the President has the broad authority to suspend or restrict the entry of aliens into the United States if he determines it to be in the national interest to do so. Today's rule applies this important principle to aliens who violate such a suspension or restriction regarding the southern border imposed by the President by invoking an express authority provided by Congress to restrict eligibility for asylum. Our asylum system is overwhelmed with too many meritless asylum claims from aliens who place a tremendous burden on our resources, preventing us from being able to expeditiously grant asylum to those who truly deserve it. Today, we are using the authority granted to us by Congress to bar aliens who violate a Presidential suspension of entry or other restriction from asylum eligibility.”
Section 212(f) of the Immigration and INA states that “[w]henever the President finds that the entry of any aliens or of any class of aliens into the United States would be detrimental to the interests of the United States, he may by proclamation, and for such period as he shall deem necessary, suspend the entry of all aliens or any class of aliens as immigrants or nonimmigrants, or impose on the entry of aliens any restrictions he may deem to be appropriate.”
Further, Section 215(a) of the INA states that it is “unlawful…for any alien to depart from or enter or attempt to depart from or enter the United States except under such reasonable rules, regulations, and orders, and subject to such limitations and exceptions as the President may prescribe.”
In Section 208(d)(5)(B) of the INA, Congress specified that the Attorney General “may provide by regulation for any other conditions or limitations on the consideration of an application for asylum.”
Today’s new rule applies to prospective presidential proclamations, and is not retroactive.
Asylum is a discretionary form of relief granted by the Executive Branch on a discretionary basis to those fleeing persecution on the basis of their race, religion, nationality, membership in a particular social group, or political opinion. The rule does not render such aliens ineligible for withholding of removal under the INA or protection from removal under the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.The Interim Final Rule can be found here.
Czar Entertainment Founder James Rosemond Sentenced to Life in Prison for Ordering the Murder of Lowell FletcherRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JAMES ROSEMOND, a/k/a “Jimmy the Henchman,” was sentenced today to life plus 30 years in prison for ordering the murder of Lowell Fletcher, a/k/a “Lodi Mack.” A jury convicted ROSEMOND of murder-for-hire, conspiracy to commit murder-for-hire, and firearms offenses following a nine-day retrial before United States District Judge Lewis A. Kaplan, who sentenced ROSEMOND.
Manhattan U.S. Attorney Geoffrey S. Berman said: “James Rosemond’s thirst for revenge following the assault of his son left 32-year-old Lowell Fletcher dead on a dark Bronx street. Our Office has fought for justice for Fletcher’s family for more than four years and through three jury trials. Now, Rosemond’s fate has been sealed and he has been sentenced to spend the rest of his life in prison for this crime.”
According to court papers and the evidence at trial:
ROSEMOND, 53, of New York, New York, was the founder of Czar Entertainment, a rap music management company, and also the head of a large-scale cocaine trafficking organization. In March 2007, members and associates of a rival rap music group known as “G-Unit,” including Marvin Bernard, a/k/a “Tony Yayo,” and Lowell Fletcher, a/k/a “Lodi Mack,” assaulted ROSEMOND’s son. ROSEMOND’s son was not seriously injured in the assault, and Fletcher ended up serving prison time for his involvement in the assault. Nevertheless, in 2009, ROSEMOND recruited a crew of men to murder Fletcher upon his release from prison by promising at least $30,000 in payment for killing Fletcher. At ROSEMOND’s direction, members of the murder crew selected a dark and secluded location for the murder in the vicinity of Mount Eden and Jerome Avenues in the Bronx, and lured Fletcher to that spot. When Fletcher arrived there in the evening on September 27, 2009, a member of the murder crew stepped out of the shadows and fired five bullets into Fletcher’s back and arms using ROSEMOND’s .22 caliber handgun with a silencer. Fletcher died later that night. On October 2, 2009, ROSEMOND had a trusted employee of his cocaine organization provide a kilogram of cocaine – worth about $30,000 in street value – to a member of his murder crew as payment for the murder.
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At the conclusion of ROSEMOND’s first trial, in February and March 2014, a mistrial was declared after the jury was unable to reach a unanimous verdict on the counts against ROSEMOND relating to the murder-for-hire of Fletcher. At ROSEMOND’s second trial in December 2014, ROSEMOND was convicted on all counts. On appeal to the United States Court of Appeals for the Second Circuit, ROSEMOND argued in part that his conviction in this murder-for-hire case should be overturned because certain rulings by the trial court effectively barred him from advancing a line of defense that ROSEMOND wanted to pursue – namely, ROSEMOND’s claim that although he ordered hitmen to shoot Fletcher, he did not intend for the shooting to result in Fletcher’s death. In November 2016, the Second Circuit vacated ROSEMOND’s conviction and remanded the case for a new trial, which began November 6, 2017, and ended on November 28, 2017, when a unanimous jury found ROSEMOND guilty of all the charges against him.
Mr. Berman thanked and praised the U.S. Drug Enforcement Administration, the New York City Police Department, the U.S. Department of Homeland Security, and the U.S. Marshals Service for their persistence and outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. The trial was conducted by Assistant U.S. Attorneys Samson Enzer, Drew Skinner, and Elizabeth Hanft.
Council Bluffs Man Arrested for Sex Trafficking of a MinorRead the Press Release
COUNCIL BLUFFS, Iowa – On November 6, 2018, Richard John Massey, age 68, of Council Bluffs, Iowa, was arrested by agents of the Federal Bureau of Investigation on charges of sex trafficking of a minor, coercion and enticement of a minor, and traveling in interstate commerce to facilitate prostitution, announced United States Attorney Marc Krickbaum and FBI Special Agent In Charge Randall C. Thysse. The arrest followed an indictment on these charges returned by a federal grand jury sitting in the Southern District of Iowa on October 30, 2018. These offenses are alleged to have occurred between October 2017 and April 26, 2018.
Massey was arrested at the Dallas-Fort Worth International Airport as he entered the United States on a flight originating from Mexico. On November 7, 2018, Massey made an initial appearance before a United States Magistrate Judge in Dallas, Texas, and was ordered to appear in the Southern District of Iowa on a subsequent date. Massey remains in custody pending proceedings in the Southern District of Iowa.
The public is reminded that an Indictment is merely an accusation, and the defendant is presumed innocent unless he is proven guilty.
This matter is being investigated by the Federal Bureau of Investigation, the Council Bluffs Police Department, and the Omaha Police Department. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Colorado Man Sentenced for Production of Child PornographyRead the Press Release
DENVER – Alexander Isaiah Perez, age 22, of Metro Denver was sentenced today to serve 240 months in federal prison, followed by 20 years on supervised release, for the production of child pornography, U.S. Attorney Jason R. Dunn and HSI Denver Special Agent in Charge Steven Cagen announced. The sentence was handed down by Chief U.S. District Court Judge Marcia S. Krieger. Perez appeared at the sentencing hearing in custody and was remanded at its conclusion.
According to the stipulated facts contained in the defendant’s plea agreement, on May 25, 2017, the Homeland Security Investigations (HSI), Cyber Crime Center (C3), Child Exploitation Investigations Unit (CEIU), received information from the INTERPOL Specialist Group on Crimes Against Children regarding a series of images depicting the sexual exploitation of a minor male, later identified as Minor #1, that had been posted on an Internet bulletin board. HSI C3 CEIU took additional investigative steps and forwarded the investigative information received from INTERPOL and the results of their investigation to HSI Denver.
The information relayed by INTERPOL to HSI C3 CEIU reflects that sexually explicit images depicting Minor #1 had been posted by multiple users on “The Bulletin Board” located on an anonymity network known as “The Onion Router” or Tor. Tor was originally designed, implemented, and deployed as a project of the U.S. Naval Research Laboratory for the primary purpose of protecting government communications. Numerous images of Minor #1 were recovered from The Bulletin Board.
During the investigation agents identified another photograph of the defendant taken by the same digital camera that was used to take images posted on The Bulletin Board. Additional images of the defendant were posted on his social networking accounts. Agents determined from one of the defendant’s Facebook accounts that he took a job as a summer camp counselor in Colorado. A search warrant executed at the camp resulted in the seizure of the digital camera identified during the investigation, as well as a laptop and an iPhone, all belonging to the defendant. The investigation revealed that the defendant both took pictures of and live-streamed his sexual abuse of Minor #1. The sexually explicit conduct occurred in the December 2014 to January 2015 time frame.
This matter was investigated by HSI Denver, as well as INTERPOL. The defendant was prosecuted by Assistant U.S. Attorney Alecia L. Riewerts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Cleveland man pleads guilty after arrest with large amounts of fentanyl, cocaine, PCP and crack cocaineRead the Press Release
A Cleveland man pleaded guilty to drug charges in federal court after he was found to have large amounts of fentanyl, cocaine, PCP and crack cocaine.
Germine Bradley, 35, pleaded guilty to six counts of possession with intent to distribute controlled substances. He is scheduled to be sentenced on Feb. 14
Bradley, on April 26, possessed 17 grams of PCP, 11 grams of cocaine, 10 grams of crack cocaine and four grams of fentanyl, according to court documents.
On May 31, Bradley possessed 41 grams of PCP and 249 grams of cocaine, according to court documents.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Elliot Morrison.
Cincinnati Man Sentenced to 342 Months for Conspiring to Distribute Heroin and Crack CocaineRead the Press Release
COVINGTON, Ky. – Ronald Crittenden, 66, of Cincinnati, was sentenced today to 342 months in federal prison, by United States District Judge David L. Bunning, for conspiring to distribute heroin and crack cocaine. Crittenden was also sentenced to 10 years of supervised release, to be served after completion of his prison term.
Crittenden was convicted of conspiring with others to distribute over 1.4 kilograms of heroin and over 5.8 kilograms of crack cocaine, in 2016 and 2017. He directed the actions of multiple addicted women, who worked as prostitutes and drug couriers for his benefit. Crittenden supplied these addicts with heroin and cocaine, each day, to ensure their continued compliance. Agents seized ten firearms from his residence during the execution of a search warrant. Court documents showed that Crittenden had been convicted of felony drug trafficking offenses on three prior occasions.
Crittenden was indicted in November 2017, along with other members of the conspiracy. All entered guilty pleas. Tiffany Glass was sentenced to 42 months in prison; Kenneth Eva was sentenced to 21 months in prison; and a third Defendant, Susan Page, is set for sentencing on December 20, 2018. Under federal law, each Defendant must serve at least 85 percent of their prison sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly made the announcement. The investigation was conducted by the Drug Enforcement Administration, the Cincinnati Police Department, and the Elsmere Police Department. The United States was represented by Assistant United States Attorney Tony Bracke.
Chesterfield Man Sentenced for Identity Theft and FraudRead the Press Release
St. Louis, MO – William Davidson was sentenced to 15 months in prison for his use of unauthorized access devices. Davidson appeared before Judge Ronnie L. White and is scheduled to have a supervised release revocation hearing before Judge Catherine D. Perry on November 19, 2018 on an unrelated matter. Davidson remains in federal custody pending the hearing.
According to court documents, Davidson obtained employment with a retail establishment in August 2017 while completing a sentence with the Federal Bureau of Prisons. He maintained that employment upon his release from the Bureau of Prisons to the supervision of the United States Probation Office in August 2017.
During a review of store surveillance tapes in December 2017, fraud investigators realized that Davidson was fraudulently obtaining store gift cards by pretending to conduct merchandise returns for non-existent customers. He used a fictitious employee number as well as the employee number of a co-worker in order to initiate the fraudulent returns. The majority of the returns were obtained between August 16th and September 28th, 2017.
Davidson admitted that he used the fraudulent obtained gift cards to purchase items for friends and family members in the St. Louis Metropolitan area and in other states. The total intended loss is approximately $6,500.
Davidson, 63, of Chesterfield, pleaded guilty on August 2, 2018 to one count of access device fraud.
This case was investigated by the U.S. Secret Service and the City of Des Peres Police Department. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney's Office.
Cape Cod Resident Pleads Guilty to Trafficking MethRead the Press Release
PROVIDENCE – A Provincetown, MA, man found passed out in a vehicle in Warwick, RI, by police, and to be in possession of more than 230 grams of methamphetamine, pleaded guilty today in U.S. District Court in Providence to possession with the intent to distribute methamphetamine.
Gregory Lee, 49, was arrested by Warwick Police on August 4, 2017, after they discovered two large plastic bags that contained methamphetamine inside of Lee’s vehicle.
According to information presented to the Court, on August 4, 2017, at approximately 8:30AM, officers responded to a 911 call of a person passed out inside a vehicle. After several attempts, officers were able to roust Lee who nervously began looking around his vehicle, under his body and legs, and grabbing at various items within the vehicle. Lee was ordered by police to exit the vehicle.
After exiting the vehicle, Lee was observed by police to be sweating profusely, fidgety, shaking uncontrollably, and unable to stand still. After denying he was in possession of any illegal narcotics, Lee agreed to allow the officers to search his vehicle. From inside a backpack located on the front seat, officers seized two large plastic bags that tested positive for methamphetamine. The bags of methamphetamine weighed 115.9 and 115.6 grams respectively.
Lee’s guilty plea before U.S. District Court Chief Judge William E. Smith to possession with intent to distribute methamphetamine is announced by United States Attorney Stephen G. Dambruch and Warwick Police Chief Colonel Stephen M. McCartney.
Lee, who was released on $100,000 bond with surety one day following his initial appearance in U.S. District Court on August 7, 2017, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on February 9, 2019.
Possession with intent to distribute methamphetamine is punishable by statutory penalties of a minimum mandatory 10 years up to life in federal prison, up to lifetime supervised release, and a fine of up to $10,000,000.
The case is being prosecuted by Assistant U.S. Attorneys Richard W. Rose and Ly T. Chin.
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California Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
PITTSBURGH, PA. - A resident of Newberry Springs, Calif., pleaded guilty in federal court to charges of distributing methamphetamine in violation of federal drug trafficking laws, United States Attorney Scott W. Brady announced today.
Richard Sperry, 53, pleaded guilty to two counts before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Sperry distributed five grams or more of methamphetamine on two occasions, February 4 to 7, 2017, and April 7 to 10, 2017.
Judge Ambrose scheduled sentencing for March 21, 2018 at 10 a.m. The law provides for a total sentence of five to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Richard Sperry.
Blaine Man Sentenced to 25 Years in Prison for Production and Possession of Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of SCOTT FRANCIS FORTIER, 39, to 25 years in prison for producing and possessing video files containing child pornography. FORTIER, who was convicted by a federal jury on January 25, 2018, on one count of production of child pornography and one count of possession of child pornography, was sentenced on November 7, 2018, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. In addressing the defendant’s conduct, Judge Schiltz referred to FORTIER and the campers at Circle R Ranch as, “a wolf let loose in a field of sheep,” and further described FORTIER’S dishonest testimony at trial as so preposterous as to be embarrassing.
“Scott Fortier is a serial predator and rapist who victimized underage girls whom he met at a summer camp where he frequented,” said U.S. Attorney MacDonald. “I am grateful that the Court recognized the severity of this type of predatory conduct and I commend the diligent work of the investigators and prosecutors in bringing this defendant to justice.”
"The defendant used his position in the camp to prey on his victims and then further victimized them by producing child pornography and we are satisfied that he will now have to pay for his crimes,” said Special Agent in Charge Jill Sanborn. “We have no greater duty than to protect the most vulnerable among us, and the men and women of the FBI will continue to relentlessly pursue those who seek to harm our children.”
As proven at trial, FORTIER was associated for many years with Circle R Ranch (“the Camp”), a co-ed horseback riding summer camp located in Todd County, Minn. Through his involvement with the Camp, FORTIER met a 17-year-old minor (Minor Victim #1). On September 9, 2016, FORTIER invited Minor Victim #1 and her 15-year-old friend (Minor Victim #2) to his house in Blaine, Minnesota, where he gave them both alcohol and subsequently used each minor to engage in sexually explicit conduct. FORTIER used his cell phone to produce multiple videos of himself engaging in the sexually explicit conduct with Minor Victim #1 and Minor Victim #2. Following an execution of a search warrant, law enforcement discovered that FORTIER also possessed videos of children under the age of 12 engaging is sexually explicit conduct, along with thousands of other images of child pornography.
At the sentencing hearing, the Government introduced statements by Minor Victim #1 and Minor Victim #2, as well as statements by a number of other victims detailing years of sexual misconduct and rapes committed by FORTIER against underage girls at the Circle R Ranch.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was the result of an investigation conducted by the FBI, the Anoka County Sheriff’s Office, the Todd County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Carol M. Kayser and Special Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Defendant Information:
SCOTT FRANCIS FORTIER, 39
Blaine, Minn.
Convicted:
- Production of child pornography, 1 count
- Possession of child pornography, 1 count
Sentenced:
- 300 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Baton Rouge Man Indicted for International Money Laundering in Furtherance of International Drug Conspiracy, Operating an Unlicensed Money Transmitting Business, and Related ChargesRead the Press Release
A federal grand jury recently returned a five-count indictment charging DONOVAN J. BARKER, age 59, of Baton Rouge, Louisiana, with aiding and abetting a conspiracy to distribute tramadol and carisoprodol, international money laundering, unlawful money transmitting, and possession of tramadol. On October 25, 2018, BARKER made his initial appearance in court and pled not guilty to the pending charges.
According to the indictment, BARKER owned and operated several businesses, including Quantum Information Technologies, Caring Partners 1, LLC, Don Western Sky, LLC, Life Positive Services, LLC, and Healthy Life 1, LLC. The indictment alleges that although BARKER represented that his businesses sold and distributed green tea extracts and herbal supplements, he was actually working with others to import Schedule IV controlled substances into the United States, to re-package and distribute the controlled substances to individuals within the United States who had purchased the substances online, to accept payments from the individual buyers, and to transmit funds from the sales to others operating outside the United States. In addition to charging BARKER with aiding and abetting a conspiracy to distribute controlled substances, the indictment charges BARKER with engaging in international financial transactions to promote the conspiracy, by wiring funds from his business bank accounts in Baton Rouge to India.
The indictment also charges BARKER with illegally operating an unlicensed money transmitting business. According to the indictment, from October 2012 through February 2016, BARKER received more than $4.6 million in payments—including payments by money order, personal check, and credit card —from individuals all across the United States who had purchased controlled substances and other substances over the internet and who directed their payments to BARKER. As BARKER received the funds, he wired the majority of the funds out to other individuals and businesses, including, on more than two hundred (200) different occasions, to foreign bank accounts in the Philippines, India, China, and Canada. Through this pattern of activity, according to the indictment, BARKER was operating a money transmitting business without an appropriate state license and without complying with the applicable federal registration requirements.
Finally, the indictment alleges that on May 24, 2016, BARKER knowingly and intentionally possessed tramadol, a controlled substance, in violation of federal law.
U.S. Attorney Brandon J. Fremin stated, “This indictment demonstrates the lengths to which international drug traffickers will go to deliver drugs and the efforts my office will make to stop them. We are committed to eliminating the international financial network used by drug dealers to bring drugs to our country and launder their illegal proceeds. I want to thank our prosecutors and our federal, state, and local partners for their extraordinary efforts in this case.”
“The Special Agents of IRS – Criminal Investigation are an integral part of drug investigations that involve the laundering of money through sophisticated means such as those implemented by Donovan Barker,” stated Thomas J. Holloman, III, Special Agent in Charge of IRS – Criminal Investigation. “More and more often individuals are using the internet and access to international banks to keep their misdeeds hidden from the eyes of law enforcement. However, the dissection of international money laundering schemes is an area of expertise in which IRS- CI excels. It is our hope that Barker’s drug distribution and money laundering conspiracy was thwarted by his indictment, and now we will continue working to ensure that Barker receives justice for what we believe are his illegal actions.”
“The DEA is committed to arresting and bringing to justice those who divert and traffic prescription drugs,” said Acting Special Agent in Charge Michael Arnett. “Opiate abuse is a major problem in the Baton Rouge area and throughout the nation. The diversion of prescription pain killers contributes to the widespread abuse of opiates, which is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in this area and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone that illicitly distributes these drugs.”
This matter is being investigated by the Internal Revenue Service-Criminal Investigations, the Drug Enforcement Administration, and the U.S. Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief within the Criminal Division. The investigation received valuable assistance from the Iberia Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, Plaquemine Police Department, East Baton Rouge Parish Sheriff’s Office, Baton Rouge Police Department, U.S. Immigration and Customs Enforcement—Homeland Security Investigations, the Louisiana Office of Financial Institutions, and the Louisiana State Police.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.