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Wednesday 7 November 2018
Lockport Man Pleads Guilty to Attempting to Retrieve Cocaine Mailed from Puerto Rico in an Oatmeal ContainerRead 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 Juan M. Serrano Acevedo, also known as Juan Acevedo-Serrano, 36, of Lockport, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute at least 500 grams of cocaine. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that in late October of 2015, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Lockport. During the execution of a search warrant on the package, law enforcement officers discovered two pounds of cocaine hidden inside an oatmeal canister. At that time, the USPIS removed the cocaine from the package.
On December 30, 2015, Serrano Acevedo went to the Lockport Post Office to sign for and accept the package addressed to him. After exiting the post office, the defendant was arrested. Following the arrest, Serrano Acevedo admitted that he ordered the cocaine, that he had previously received a package that contained cocaine, and that he sold cocaine.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Sentencing is scheduled for February 14, 2019, at 10:30 a.m. before Judge Geraci.
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Katy Woman Sentenced in Health Care Fraud and Kickback SchemesRead the Press Release
HOUSTON - The owner of three Houston area clinics has been ordered to federal prison following her conviction of conspiracy to commit health care fraud, announced U.S. Attorney Ryan K. Patrick. Joy Aneke, 51, of Katy, entered her plea on May 16, 2018.
Today, U.S. District Judge Kenneth M. Hoyt handed Aneke a 36-month sentence to be immediately followed by three years of supervised release. Aneke was also ordered to pay $2,760,464.57 in restitution to the Medicare program.
Aneke was the owner of Jadac Unique Health Services, Almeda Physicians Clinic and the home health agency Community Joyful Home Health in Harris and Fort Bend Counties. Aneke previously admitted to causing others to submit false and fraudulent claims to Medicare for medical services that were not provided and/or were not authorized by a physician. Specifically, the clinics billed for medical services that were not performed, including services such as allergy testing, complex cystometrograms and anal/urinary muscle studies. The clinics did not have the equipment to provide such services.
As part of her plea, Aneke admitted she directed co-defendant Maureen Henshall, 62, of Highland, to falsify patient records at the clinic by adding tests and procedures that were not performed and/or were not medically necessary in order to increase the reimbursements that the clinics received from Medicare. Aneke instructed others to create false patient records, knowing the records would be used in support of claims billed to Medicare for tests and procedures which were not rendered, not medically necessary and not ordered by a licensed medical professional. Aneke also admitted she instructed Henshall to pay illegal kickbacks to patients to visit the clinics through others known as “recruiters” or marketers.”
Aneke previously admitted she employed Teodoro Seminario, 51, of Houston, who acted as the medical professional for the Jadac clinic, without any proper licensing. Seminario examined, assessed and/or treated patients without the assistance or supervision of any licensed medical professional. Seminario was not a licensed medical professional in the state of Texas. Aneke subsequently caused others to bill for the services Seminario provided as if he was a qualified, licensed medical professional. Seminario and Henshall were sentenced Oct. 29 to three years of supervised release and six months of home confinement for their roles in the scheme.
Aneke and her three clinics billed approximately $5,963,675.88 for medical diagnostic services that were not provided and/or were not authorized by a physician. As a result of the false or fraudulent billings, Medicare paid approximately $2,760,646.57.
Previously released on bond, Aneke was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Department of Health and Human Services-Office of Inspector General and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Justice Department Settles Immigration-Related Discrimination Claim Against New York HotelRead the Press Release
The Justice Department today announced that it has reached a settlement with MJFT Hotels of Flushing LLC (MJFT), the management company operating the Hyatt Place Hotel -- Flushing/Laguardia Airport in Queens, New York. The settlement resolves a complaint that the company discriminated against a work-authorized immigrant in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA).
The Department’s investigation, initiated based on a worker’s complaint, concluded that MJFT engaged in citizenship status discrimination against an asylee by removing him from the hiring process for a job at the hotel because he was not a lawful permanent resident or U.S. citizen. Asylees have permanent work authorization, like U.S. citizens, U.S. nationals, refugees, and lawful permanent residents, and employers may not discriminate against them in hiring unless they have a specific legal justification for doing so.
Under the settlement agreement, MJFT will pay a civil penalty, train its staff, and be subject to departmental monitoring and reporting requirements for three years.
“In general, employers may not restrict the employment opportunities of asylees because of their citizenship or immigration status,” said Principal Deputy Assistant Attorney General John Gore of the Civil Rights Division. “The Department is committed to enforcing workplace laws that prohibit discrimination to ensure that individuals have an opportunity to be fully and fairly evaluated based on their merits when they apply for jobs.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Johnstown Man Indicted on Drug Charge following Investigation by FBI and Cambria County Drug Task ForceRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The indictment named Shawn R. Kmecak, 37, of Johnstown, Pa.
According to the indictment presented to the court, on March 15, 2018, Kmecak possessed with the intent to distribute less than 100 grams of heroin.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Kmecak.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jury Returns Conviction on Assault on Federal Officer ChargeRead the Press Release
SAN DIEGO, CA – On Tuesday, November 6, 2018, a jury found defendant John Leland Combs guilty of assault on a federal officer, in violation of 18 U.S.C. § 111, and high speed flight from a checkpoint, in violation of 18 U.S.C. § 758.
According to the evidence presented at trial, the assault occurred during the early morning hours of September 2, 2017. U.S. Border Patrol Agent Norberto M. Ribac was assigned to the Brown Field Border Patrol Station All-Terrain Vehicle (ATV) Unit patrolling in the area of Tecate, California. At approximately 5:40 a.m., Agent Ribac discovered northbound shoeprints in the sand approximately 300 yards west of the Tecate Port of Entry. Agent Ribac followed the footprints to Industrial Road, where he discovered a single white male, later identified as Defendant John Leland Combs, standing next to his car (a stolen Hyundai Genesis) and talking on his cell phone, mere yards north of the border fence in Tecate.
Agent Ribac approached Defendant and asked him if there was anything or anybody in the vehicle with him. Defendant stated he was alone and voluntarily opened the trunk of the vehicle for Agent Ribac to inspect. As Agent Ribac attempted to request a registration and records checks, he noticed Defendant walking towards the vehicle’s driver side door. Defendant then entered the vehicle in an attempt to leave the area. When Agent Ribac reached into the vehicle through the driver’s side window to turn the engine off, Combs started to drive the Hyundai Genesis with Agent Ribac’s upper body still inside the vehicle. While Agent Ribac was attempting to free himself from the moving vehicle, the vehicle struck him on his right elbow and on the right side of his head, breaking his ATV helmet.
In an attempt to flee the State Route 94 Checkpoint, Combs hit speeds over 70 mph while swerving in and out of traffic on a windy two-lane highway. As Combs veered over the cone lane and into the eastbound lane of the checkpoint, video footage showed the agents successfully deploying spike strips. As one of the agents threw the spike in front of defendant’s car, Combs delivered an obscene gesture before eventually losing control of the car and swerving into a residential driveway. He attempted to flee on foot, but was quickly arrested.
“This office will vigorously prosecute those who assault dedicated U.S. Border Patrol agents and endanger the public with dangerous escape maneuvers,” said U.S. Attorney Adam L. Braverman. “We will not tolerate disrespect for law enforcement and cavalier disregard for community safety.”
“A Border Patrol agent was assaulted by this defendant, who then placed multiple innocent drivers and other agents at serious risk by driving recklessly through east San Diego County,” said Chief Patrol Agent Rodney S. Scott. “I’m proud of my agents who did not allow this criminal to escape arrest, and I am grateful to the United States Attorney’s Office for their hard work and dedication to bring him to justice.”
Combs will be sentenced on February 8, 2019 by U.S. District Court Judge Cathy Bencivengo.
The case was prosecuted by Assistant United States Attorneys Mark Conover, Ryan Sausedo and Katherine McGrath.
DEFENDANT Case No. 17cr3026-CAB
John Leland Combs
AGENCIES
Department of Homeland Security, Border Patrol Intelligence
U.S. Border Patrol
Illegal Charter Operator Pleads Guilty to Violating Coast Guard OrderRead the Press Release
Seth Alan Gissen pled guilty yesterday to knowingly and willfully violating a Captain of the Port Order, in violation of Title 33, United States Code, Section 1232(b)(1).
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region made the announcement.
According to the court record, Gissen is the registered owner of the motor yacht NO RULES II. On October 26, 2017, during a routine law enforcement boarding, the Coast Guard discovered the yacht NO RULES II operating illegally as a charter vessel. Illegal charters can cause accidents resulting in property damage, injuries, and death.
On October 30, 2017, the Coast Guard issued a Captain of the Port Order to Gissen. This Order required Gissen to immediately cease operating NO RULES II as a passenger vessel until he was in compliance with federal laws and regulations.
On or about August 4, 2018, on Biscayne Bay, a Coast Guard team observed that the yacht NO RULES II appeared to be overloaded and so initiated a law enforcement boarding. An investigation revealed that Gissen was again illegally operating as a commercial charter, in violation of the Captain of the Port Order.
Gissen is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 10, 2018, at 10 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS in this matter. This case is being prosecuted by Coast Guard Special Assistant U.S. Attorney Philip Jones.
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.
Houston, Pa. Residents Indicted on Drug and Gun Charges as Part of Operation Synthetic Opioid SurgeRead the Press Release
PITTSBURGH –A federal grand jury returned an indictment charging two residents of Washington County, Pennsylvania, with violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The six-count indictment, returned under seal on October 9, named Vashaun Lasalle Wright, 29, and Alyssa Ashley Adkins, 29, both of Houston, Pa., as the defendants.
According to the indictment, on March 23, 2018, in the Western District of Pennsylvania, Wright and Adkins possessed with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine. The indictment further charges the defendants with conspiring to distribute 40 grams or more of fentanyl between March 7, 2018, and March 23, 2018. The defendants, both of whom have prior convictions that prohibit them from possessing firearms and ammunition under federal law, are charged with unlawfully possessing three firearms and ammunition on March 23, 2018, and with possessing those firearms in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence for each defendant of not less than 10 years and up to life in prison, a fine of up to $11,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of each defendant.
Assistant United States Attorney Jerome A. Moschetta and Special Assistant United States Attorney Rachel Wheeler of the Washington County District Attorney’s Office are prosecuting this case on behalf of the government.
The Washington County District Attorney’s Office Drug Task Force, Pennsylvania State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the indictment in this case.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.). On July 12, 2018, Attorney General Jeff Sessions selected the Western District of Pennsylvania as one of ten districts from across the country to implement the program. All cases involving the illegal distribution of synthetic opioids, such as fentanyl, arising in Washington County, Pennsylvania will be systematically prosecuted in federal court. The surge in federal resources has the twin goals of reducing the number of overdose fatalities and eliminating drug trafficking in synthetic opioids. The United States Attorney’s Office and the Drug Enforcement Administration, along with the Washington County District Attorney’s Office, the Pennsylvania State Police, and local Washington County Police Departments, are leading Operation Synthetic Opioid Surge (S.O.S.).
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houma Man Sentenced in Conspiracy to Traffic MethamphetamineRead the Press Release
U.S. Attorney Peter G. Strasser announced that DAMIEN JACKSON, age 37, of Houma, LA, was sentenced today after having pled guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of a mixture containing methamphetamine.
United States District Judge Martin L.C. Feldman sentenced JACKSON to 125 months’ imprisonment and a supervised release period of 4 years.
According to court documents, on July 5, 2016, law enforcement arrested JACKSON shortly after JACKSON took possession of a U.S. mail parcel containing approximately 455 grams of methamphetamine. JACKSON admitted that he intended to sell a portion of the methamphetamine to his codefendant, James Siglar. For his part, Siglar was later arrested, pled guilty, and was sentenced to 37 months’ incarceration.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, the Houma Police Department, and the Terrebonne Parish Sheriff’s Office. Assistant U.S. Attorneys James S.C. Baehr and Brandon S. Long are in charge of the prosecution.
Hot Springs Man Sentenced to over 17 Years in Federal Prison for Online Enticement of A Minor and Ammunition PossessionRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Todd McDonald, age 35, of Hot Springs, Arkansas, was sentenced today to 210 months in federal prison followed by ten years of supervised release on one count each of Online Enticement of a Minor and Unlawful Possession of Ammunition. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November, 2016 agents with the Federal Bureau of Investigation were contacted by the mother of a 12 year old girl who resides in Hot Springs, Arkansas regarding sexually explicit text messages sent by an apparent 30 year old adult male. F.B.I. agents viewed messages sent by a person using the user name “Mr. Nobody”, later identified as Todd McDonald to the 12 year old girl via Instagram. The messages included statements from McDonald stating he wanted to take sexually explicit pictures and videos of the girl. Upon questioning, McDonald admitted to sending those messages. On January 4, 2017, FBI agents executed a search warrant of McDonald’s Hot Springs residence where they located, among other contraband, .38 special ammunition, which McDonald was prohibited from possessing based on his criminal history.
A federal grand jury indicted McDonald in April 2017, and he pleaded guilty in October of 2017.
This case was investigated by the FBI. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Heroin Supplier Convicted After Jury Trial in White Plains Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LEIBYS MERCEDES was found guilty today of conspiring to distribute heroin. A unanimous jury convicted MERCEDES after a four-day trial before United States District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “As proven at trial, Leibys Mercedes contributed to the rising tide of heroin that is plaguing Westchester County and its vicinity. The verdict should send a message to criminals who seek to profit by flooding our community’s streets with lethal drugs.”
According to court documents and the evidence at trial:
From January 2017 up to July 2017, LEIBYS MERCEDES, a/k/a “Celly,” conspired to distribute 100 grams and more of heroin. MERCEDES supplied heroin to other dealers in the Yonkers area.
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MERCEDES, 37, of the Bronx, New York, was convicted of conspiracy to distribute heroin, which carries a maximum sentence of 40 years in prison, and a mandatory minimum terms of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
MERCEDES is scheduled to be sentenced on April 9, 2018, before Judge Karas.
Mr. Berman praised the outstanding work of the Drug Enforcement Administration’s Westchester Resident Office and the Narcotics Unit of the City of Yonkers Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Samuel L. Raymond, Daniel M. Loss, Celia Cohen, and Michael D. Maimin are in charge of the prosecution.
Hartford Felon Charged with Possessing Loaded GunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury sitting in Hartford returned an indictment yesterday charging JOSE TORRES, 32, of Hartford, with one count of unlawful possession of a firearm and ammunition by a convicted felon.
The indictment alleges that, on September 7, 2018, TORRES unlawfully possessed a loaded Hi-Point Model JHP .45 caliber pistol in Hartford.
It is further alleged that TORRES’s criminal history includes felony convictions in March 2008 for possession with intent to distribute narcotics and first-degree robbery and, in March 2013, for second-degree robbery.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, TORRES faces a maximum term of imprisonment of 10 years.
TORRES has been detained in state custody since his arrest on September 7.
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 case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Harrisburg Man Convicted of Firearms Offenses and Three Armed RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Maurice L. Ross, age 35, of Harrisburg, Pennsylvania, was convicted on November 6, 2018, for unlawful possession of a firearm as a convicted felon and three armed robberies after a two-day jury trial before United States District Court Judge Yvette Kane.
According to United States Attorney David J. Freed, the jury returned the verdict after approximately two hours of deliberations and convicted Ross of three counts of a felon in possession of a firearm (a Charter Arms .38 caliber revolver), three counts of interference with commerce by threats or violence, and three counts of carrying and brandishing a firearm in furtherance of a crime of violence.
Ross robbed the Brookwood Mart, located in Harrisburg, by gunpoint on three separate occasions on December 8, 17, and 22, 2016. Each time, he stole hundreds of dollars of cash from the store registers. Two of the three times, he also stole dozens of instant lottery tickets.
There was surveillance footage from the robberies, but Ross was heavily hooded and masked, so identification was a significant issue, but Ross cashed some of the stolen lottery tickets the morning after one of the robberies at another convenience store, before the tickets could even be reported stolen. The PA Lottery provided the location, date and time of the cashings, and Harrisburg detectives were able to review in-store surveillance videos at the store where the tickets were cashed. That surveillance footage revealed a license plate that led detectives to Ross’ residence where a search warrant was executed. Detectives found the very distinctive gun Ross used in all three robberies, a shirt tied like a mask, a pair of black boots, a black knit hat and a flat-brimmed hat seen in surveillance footage.
The case was investigated by the Harrisburg Police Department. Assistant United States Attorneys James T. Clancy and Carl Marchioli prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the unlawful possession of firearm charges is 10 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each of the armed robbery charges is 20 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each charge of brandishing a firearm during a crime of violence is life in prison; each of those charges carries a mandatory consecutive 25-year sentence. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenville Man Sentenced for Firearm ChargeRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DANIEL LEE WADE, JR., 24, of Greenville, North Carolina to 120 months of imprisonment followed by 3 years of supervised release.
WADE was named in an Indictment filed on December 20, 2017. On March 12, 2018, WADE pleaded guilty to one-count of Possession of a Firearm and Ammunition by a Felon.
On July 16, 2017, two females drove to talk to WADE at his apartment building in Greenville. One of the females and WADE were talking outside when WADE’S mother came out and began arguing with the female. As the argument escalated, WADE’ mother insisted that the female victim stay. The driver urged her friend to get in the vehicle, which she did. WADE’S mother then stepped in front of the vehicle in an apparent effort to block them in. As the vehicle was attempting to drive away, WADE began shooting at it. After realizing her friend had been hit, the driver tried driving to the hospital, but was stopped less than a mile away due to a flat tire, and called 911. The Greenville Police Department (GPD) subsequently responded to a parking lot in Greenville, where the two females were located. The passenger had sustained a gunshot wound to the right hip area and was bleeding significantly. She was transported to the hospital for medical treatment. The victim provided a brief statement wherein she advised that WADE had struck her with a gun just prior to shooting her. Upon examination of the vehicle involved in the shooting, GPD observed a total of nine bullet holes, along with one that pierced the rear tire. Police searched the area in front of WADE’S apartment where they located 7 .40 caliber shell casings. A State arrest warrant was subsequently issued charging WADE with Assault With a Deadly Weapon With Intent to Kill or Inflict Serious Injury and Discharging a Firearm Into Occupied Property Inflicting Serious Injury.
On July 20, 2017, GPD located WADE sitting in the front passenger seat of a vehicle in Greenville. The driver of the vehicle told authorities that a firearm was inside the glove box. A .40 caliber pistol was found loaded with 13 rounds of ammunition. WADE was taken into custody on the outstanding warrant and was also charged with Possession of a Firearm by a Felon. Ballistic testing determined that the firearm matched the casings recovered from the previously mentioned shooting on July 16, 2017. ATF records revealed that driver was the registered owner of the gun; however, forensic analysis later confirmed that WADE’S DNA was present on the firearm and magazine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Wayne County Sheriff’s Office, and the Greenville Police Department Gun Violence Reduction Unit conducted the criminal investigation of this case. Assistant United States Attorney James J. Kurosad handled the prosecution of this case for the government.
Grand Jury Adds Wildlife Charges to Murder-For-Hire Allegations Against "Joe Exotic"Read the Press Release
OKLAHOMA CITY – JOSEPH MALDONADO-PASSAGE, also known as Joseph Allen Maldonado, Joseph Allen Schreibvogel, and "Joe Exotic," 55, formerly of Wynnewood, Oklahoma, has been charged in a 21-count superseding indictment that includes the two previously charged murder-for-hire counts and also alleges nineteen wildlife crimes, including the alleged killing of five tigers and the illegal sale of tiger cubs, in violation of the Endangered Species Act and Lacey Act, announced Robert J. Troester of the U.S. Attorney’s Office for the Western District of Oklahoma.
On September 5, 2018, a federal grand jury returned an indictment that accuses Maldonado-Passage of hiring an unnamed person in November 2017 to murder "Jane Doe" in Florida. According to the indictment, Maldonado-Passage gave the unnamed person $3,000 to travel from Oklahoma to South Carolina and then to Florida to carry out the murder. He allegedly agreed to pay thousands more after the deed. The indictment alleges Maldonado-Passage caused the person to travel to Dallas to get fake identification for use in the plot. According to the indictment, the person traveled from Oklahoma to South Carolina on November 26, 2017.
In a second count, the September 5 indictment alleges that beginning in July 2016, Maldonado-Passage repeatedly asked a different unnamed person to find someone to murder Jane Doe in exchange for money. The second person put Maldonado-Passage in contact with an undercover FBI agent. Maldonado-Passage met with the undercover agent on December 8, 2017, to discuss details of murdering Jane Doe.
The U.S. Marshals Service arrested Maldonado-Passage in Gulf Breeze, Florida, on September 7, 2018. He has been ordered detained in the Marshals’ custody pending trial.
According to the superseding indictment handed down today, Maldonado-Passage shot and killed five tigers in October 2017 to make room for cage space for other big cats. Because tigers are an endangered species, these alleged killings violated the Endangered Species Act. He is also charged with violating the Endangered Species Act by selling and offering to sell tiger cubs in interstate commerce. These crimes are alleged to have taken place from November 16, 2016, to March 6, 2018.
The remaining wildlife counts allege violations of the Lacey Act, which makes it a crime to falsify records of wildlife transactions in interstate commerce. According to these counts, Maldonado-Passage designated on delivery forms and Certificates of Veterinary Inspection that tigers, lions, and a baby lemur were being donated to the recipient or transported for exhibition only, when he knew that they were being sold in interstate commerce. One count alleges that Maldonado-Passage sold in interstate commerce a two-week-old lion cub.
If Maldonado-Passage is found guilty of murder-for-hire, he could be imprisoned on each count up to ten years. He would also be subject to up to three years of supervised release and a fine of up to $250,000 per count. If convicted of a violation of the Endangered Species Act, he could be sentenced on each count to one year in prison, a fine of $100,000, and one year of supervised release. Each Lacey Act violation could carry a prison term of five years, a fine of $250,000, and three years of supervised release.
"The investigation of murder-for-hire and wildlife allegations has required close coordination among law enforcement," said Mr. Troester. "We will work hard to protect people as well as wildlife and deter these sorts of crimes."
"The U.S. Fish and Wildlife Service is committed to combating illegal wildlife trafficking and protecting our wildlife resources for the benefit of future generations," said Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace. "We thank our partners at the FBI, U.S. Marshals Service, Oklahoma Department of Wildlife Conservation, and the Department of Justice for their help in this case. Together we will continue to investigate and prosecute those who engage in unlawful wildlife trafficking for monetary gain."
Oklahoma City FBI Special Agent-in-Charge Kathryn Peterson said: "The FBI appreciates our law enforcement partners and the combined efforts which thwarted this murder-for-hire plot and uncovered these serious wildlife crimes."
This case is the result of an investigation by the U.S. Fish and Wildlife Service Office of Law Enforcement, the FBI, and the Oklahoma Department of Wildlife Conservation, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Amanda Green and Charles W. Brown are prosecuting the case.
The public is reminded that these charges are merely allegations and that Maldonado-Passage is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Former U.S. Congressman Sentenced to 120 Months for Extensive Fraud, Tax and Election Crimes SchemeRead the Press Release
HOUSTON – A former U.S. Congressman was sentenced today to 120 months in prison and ordered to pay $1,014,718.51 in restitution, to be followed by three years of supervised release, for orchestrating a four-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly to funnel the proceeds to pay for personal expenses and to illegally finance his campaigns for public office.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (CI) Houston Field Office made the announcement.
“At trial, the government proved to the jury that former congressman stockman ran his campaign and fraudulent charities to simply enrich himself and defrauded well-meaning donors,” said Patrick. “This type of corruption by public officials gives our entire democratic system a black eye.”
“Former Representative Stockman stole hundreds of thousands of dollars from charities, then used the money to pay personal expenses and fund his political campaigns,” said Benczkowski. “As this case demonstrates, the Justice Department and our law enforcement partners will aggressively pursue corrupt public officials, including those who seek to corrupt our elections for personal gain.”
Former U.S. Representative Stephen E. Stockman, 61, was convicted by a federal jury in Houston on April 12 of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the FEC, making excessive coordinated campaign contributions, money laundering and filing a false tax return. Two of Stockman’s former congressional staffers previously pleaded guilty in the case. Thomas Dodd, 39, of Houston, pleaded guilty March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty Oct. 11, 2017, to one count of mail fraud, one count of wire fraud,and one count of money laundering.
“Former Congressman Stockman was entrusted by his constituents to serve in their best interest,” said DeSarno. “Instead, Stockman used his position in a series of schemes for personal gain at the expense of the public. Today’s sentence should send a clear message that the laws of the land apply to everyone, regardless of position or power. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives. Public officials who abuse their position will be investigated, prosecuted, and subjected to the full punishment of the law for their actions.”
“Congressman Stockman used his position to defraud charitable foundations to advance his political career and pay for personal expenses,” said Goss. “His actions and failure to pay taxes on these illicit funds not only undermines the American tax system, but cultivates a lack of trust in our elected officials. Today’s sentencing demonstrates IRS-CI’s commitment to bring justice to those public officials who believe they are above the law.”
According to the evidence presented at trial, from May 2010 to February 2014, Stockman and his co-defendants solicited $1,250,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was used for a variety of personal and campaign expenses.
Specifically, the evidence established that in 2010, Stockman and Dodd solicited an elderly donor in Baltimore, Maryland, for $285,000 to be used for legitimate charitable and educational purposes. Stockman and Dodd used a sham charity named the Ross Center to funnel the money to be used for a variety of personal expenses. The evidence further established that, in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations from the Baltimore donor, much of which Stockman used illegally to finance his 2012 congressional campaign.
The trial evidence also showed that shortly after Stockman took office as a Member of the U.S. House of Representatives in 2013, he and Dodd used the name of another sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation, to be used to create an educational center called the Freedom House. Stockman, Dodd and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent, an in-patient alcoholism treatment for a female associate and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, the evidence established that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. The evidence showed that the purportedly independent expenditure was in fact secretly controlled by Stockman who directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
Finally, the evidence at trial demonstrated Stockman failed to pay taxes on any of the $1,250,571.65 in fraudulently acquired donations. In addition, during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for two and a half years so that Posey could not be questioned by law enforcement.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former U.S. Congressman Sentenced to 10 Years in Prison for Extensive Fraud, Tax, and Election Crimes SchemeRead the Press Release
Former U.S. Congressman Stephen E. Stockman was sentenced today to serve 120 months in prison and ordered to pay $1,014,718.51 in restitution, to be followed by three years of supervised release, for orchestrating a four-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly to funnel the proceeds to pay for personal expenses and to illegally finance his campaigns for public office.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (IRS-CI) Houston Field Office, made the announcement.
“Former Representative Stockman stole hundreds of thousands of dollars from charities, then used the money to pay personal expenses and fund his political campaigns,” said Assistant Attorney General Benczkowski. “As this case demonstrates, the Justice Department and our law enforcement partners will aggressively pursue corrupt public officials, including those who seek to corrupt our elections for personal gain.”
“At trial, the government proved to the jury that former Congressman Stockman ran his campaign and fraudulent charities to simply enrich himself and defrauded well-meaning donors,” said U.S. Attorney Patrick. “This type of corruption by public officials gives our entire democratic system a black eye.”
Former U.S. Representative Stephen E. Stockman, 61, was convicted by a federal jury in Houston on April 12, of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission, making false statements to the Federal Election Commission, making excessive coordinated campaign contributions, money laundering, and filing a false tax return. Two of Stockman’s former congressional staffers previously pleaded guilty in the case. Thomas Dodd, 39, of Houston, Texas, pleaded guilty on March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty on Oct. 11, 2017, to one count of mail fraud, one count of wire fraud, and one count of money laundering.
“Former Congressman Stockman was entrusted by his constituents to serve in their best interest,” said FBI Special Agent in Charge DeSarno. “Instead, Stockman used his position in a series of schemes for personal gain at the expense of the public. Today’s sentence should send a clear message that the laws of the land apply to everyone, regardless of position or power. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives. Public officials who abuse their position will be investigated, prosecuted, and subjected to the full punishment of the law for their actions.”
“Congressman Stockman used his position to defraud charitable foundations to advance his political career and pay for personal expenses,” said IRS-CI Special Agent in Charge Goss. “His actions and failure to pay taxes on these illicit funds not only undermines the American tax system, but cultivates a lack of trust in our elected officials. Today’s sentencing demonstrates IRS-Criminal Investigation’s commitment to bring justice to those public officials who believe they are above the law.”
According to the evidence presented at trial, from May 2010 to February 2014, Stockman and his co-defendants solicited $1,250,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was used for a variety of personal and campaign expenses.
Specifically, the evidence established that in 2010, Stockman and Dodd solicited an elderly donor in Baltimore, Maryland for $285,000 to be used for legitimate charitable and educational purposes. Stockman and Dodd used a sham charity named the Ross Center to funnel the money to be used for a variety of personal expenses. The evidence further established that, in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations from the Baltimore donor, much of which Stockman used illegally to finance his 2012 congressional campaign.
The trial evidence also showed that shortly after Stockman took office as a Member of the U.S. House of Representatives in 2013, he and Dodd used the name of another sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation, to be used to create an educational center called the Freedom House. Stockman, Dodd, and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent, an in-patient alcoholism treatment for a female associate, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, the evidence established that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. The evidence showed that the purportedly independent expenditure was in fact secretly controlled by Stockman, who directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
Finally, the evidence at trial demonstrated that Stockman failed to pay taxes on any of the $1,250,571.65 in fraudulently acquired donations. In addition, during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for two and a half years so that Posey could not be questioned by law enforcement.
The FBI and IRS-CI investigated the case. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.
Former Recruiter of U.S. Military Language Interpreters Indicted for Alleged Scheme That Resulted in Unqualified Language Interpreters Being Deployed with U.S. Combat Forces in AfghanistanRead the Press Release
A former recruiter of U.S. military language interpreters was charged in an indictment filed today for his role in an alleged scheme to recruit unqualified language interpreters to be deployed with U.S. combat forces in Afghanistan in 2011 and 2012, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Inspector General for Afghanistan Reconstruction John F. Sopko.
Abdul Aman, 34, of Fairfax, Virginia, was charged in the District of Maryland with one count of conspiracy to commit mail fraud and wire fraud and one count of major fraud against the United States. Aman will be arraigned on the charges on Nov. 8.
The indictment alleges that Aman, while working as a recruiter for a U.S. government contractor, circumvented procedures designed to ensure that candidates for jobs as language interpreters for the U.S. military met minimum proficiency standards, which resulted in unqualified language interpreters being hired and later deployed alongside U.S. combat forces in Afghanistan. Aman’s employer was a subcontractor on a multimillion-dollar Defense Department contract to supply qualified language interpreters to support U.S. military operations around the world. To carry out the fraud, the indictment alleges, Aman arranged for a close associate to take language tests for candidates who Aman knew did not meet minimum proficiency standards. Aman allegedly obtained financial bonuses from his employer based on the number of candidates whom his employer hired through his efforts.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction and the U.S. Army’s Criminal Investigation Command. The case is being prosecuted by Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section.
Former Owner and CEO of Wind Energy Company Charged in Million Dollar Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced a federal indictment charging KERRY DALE KISSLINGER, 58, former owner and CEO of a wind energy company, with five counts of wire fraud in a $1 million fraud scheme.
According to the indictment, KISSLINGER was the owner and CEO of ES Windpower, Inc., a Minnesota corporation that sold wind turbines to farmers, ranchers, and others in Minnesota and throughout the Midwest. KISSLINGER marketed the wind turbines as a way for customers to save money by reducing or even eliminating their energy expenses. Beginning in 2012 until 2015, KISSLINGER devised and executed a scheme to defraud ES Windpower customers by falsely representing that in exchange for payment, KISSLINGER and his company would deliver and install a wind turbine on the customers’ farms or land.
As alleged in the indictment, ES Windpower had a distribution agreement with a North Dakota-based wind turbine manufacturer (“Company A”). The terms of the distribution agreement required ES Windpower to provide Company A with a purchase order, contract, and 30 percent down payment for each new order. The balance of the purchase price was due when Company A delivered the product to ES Windpower. Oftentimes, KISSLINGER failed to send the down payment to Company A and other manufacturers to purchase the wind turbines or otherwise complete any work on the project. On other occasions, KISSLINGER remitted some of the down payment to the manufacturer, but did not complete the ordering process.
As alleged in the indictment, KISSLINGER regularly used some or all of the customers’ payments for personal use and benefit, including to make a $45,000 down payment on the purchase of a lakefront home in Emmons, Minnesota, and to purchase Minnesota Timberwolves season tickets. KISSLINGER at times solicited a second payment from his customers by falsely representing that all or part of their wind turbine was ready to be shipped and installed, despite knowing that he had not placed the orders or made the down payments to the manufacturer. KISSLINGER also falsely represented to some of his customers that each turbine ordered would be protected by a $100,000 bond, which would be used to refund their money if ES Windpower was unable to complete the delivery and installation. KISSLINGER falsely told customers that his failure to deliver and install their wind turbines was due to manufacturing delays. In reality, KISSLINGER knew the delays were caused by his own failure to complete the ordering process and remit his customers’ down payments to the manufacturers. In total, KISSLINGER fraudulently solicited and received more than $1 million in payments from customers.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
KERRY DALE KISSLINGER, 58
Humble, Texas
Charges:
- Wire fraud, 5 counts
###
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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 defendant is presumed innocent unless and until proven guilty.
Former LMPD Officer Indicted for Enticing Minors, Distribution, and Possession of Child PornRead the Press Release
LOUISVILLE, Ky. – A former Louisville Metro Police Department officer has been indicted by a federal grand jury for enticement, attempted enticement, possession of child pornography, transfer of obscene materials to a minor and distribution of child pornography.
“No person is above the law; especially one entrusted with the authority of a police officer, who then abuses that authority to prey on the vulnerable,” stated U.S. Attorney Russell M. Coleman. “Today’s multi-count indictment of Mr. Betts is a testament to that notion in the Western District of Kentucky”
“Today’s indictment is the first for Louisville’s Public Corruption Civil Rights Task Force, where we have combined local, state and federal resources to work together to investigate allegations of corruption or color of law violations,” said FBI SAC James Robert Brown Jr. “It is an example of the process working, and there will be others. The people of Louisville deserve to have confidence in their elected and law enforcement officials. This indictment serves as a reminder the Task Force will root out those who choose to violate this trust.”
The seven count Indictment charges Kenneth R. Betts, 34, of Shelbyville, Kentucky, with one count of distribution of child pornography, one count of possession of child pornography, three counts of enticement of an individual under the age of 18 years to engage in sexual activity, one count of transfer of obscene materials to an individual under the age of 16, and one count of attempted enticement of an individual under the age of 18.
According to the Indictment: Betts enticed John Doe 1, an individual who was not yet 18 years old, between February 2006 and February 2008, to engage in sexual activity; Betts enticed John Doe 2, an individual who was not yet 18 years old, between May 2010 and May 2014, to engage in sexual activity; Betts enticed Jane Doe 1, an individual who was not yet 18 years old, between June 2013 and July 2013, to engage in sexual activity; and Betts attempted to entice John Doe 3, an individual who was not yet 18 years old, between September and November of 2014, to engage in sexual activity.
If convicted Betts faces no less than five years and no more than 20 years in prison for distribution of child pornography, no more than 10 years for possession of child pornography, no less than 10 years for each count of enticement and attempted enticement, and no more than 10 years for transfer of obscene material to a minor. The charges also carry a potential term of supervised release of no less than 5 years up to a term of life.
Assistant United States Attorney Jo E. Lawless is prosecuting the case, and it is being investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department Public Integrity Unit.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Former Correctional Officer Guilty of Abusive Sexual Contact with InmateRead the Press Release
PHOENIX – Darrell E. McCoy, 51, formerly of Scottsdale, Ariz., was found guilty by a federal jury in Phoenix of two counts of abusive sexual contact with an inmate under his supervision. The case was tried before U.S. District Judge Douglas L. Rayes last week. Sentencing is set for Feb. 25, 2019.
The evidence at trial showed that in late 2016, while acting as the foreman of a crew of female inmates, Correctional Officer McCoy began a relationship with an inmate under his supervision. Between September and December 2016, McCoy had sexual contact with the inmate in different locations on the prison grounds. McCoy also gave “love notes” to the inmate prior to her release from the facility, and they continued the relationship and exchanged many text messages over four months following her release.
“McCoy abused his position of authority when he engaged in sexual conduct with an inmate under his supervision,” said First Assistant U.S. Attorney Elizabeth A. Strange. “The U.S. Attorney’s Office is committed to prosecuting all illegal abuses of power wherever they occur.”
“Darrell McCoy’s duty was to protect the inmates at the prison where he worked, but instead he abused his power by engaging in sexual conduct with one of those inmates. Today’s verdict sends a clear message: such abuse will not be tolerated,” stated Special Agent In Charge Sandra D. Barnes of the U.S. Department of Justice Office of the Inspector General’s Denver Field Office.
The investigation in this case was conducted by the Department of Justice-Office of the Inspector General. The prosecution was handled by Gayle Helart and Monica N. Edelstein, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01410-PHX-DLR
RELEASE NUMBER: 2018-146_McCoy
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Former Commodities Trading Executive Arrested for Scheme to Defraud Employer by Hiding Trading LossesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging DAVID SMOTHERMON with wire fraud, in connection with a scheme to hide from his employer trading losses he incurred, by causing false entries to be made in the employer’s accounting system. SMOTHERMON was arrested yesterday in Houston, Texas, and is expected to be presented in federal court in Houston today.
U.S. Attorney Geoffrey Berman said: “As alleged, David Smothermon lied to his employer to conceal trading losses. He allegedly caused others to make false entries in his company’s accounting system to cover up the losses and reap substantial compensation. Smothermon’s actions allegedly caused his employer significant financial harm. Thanks to the FBI, David Smothermon has been apprehended and awaiting prosecution for his alleged self-dealing.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As alleged, after incurring significant trading losses, Smothermon took advantage of his position and manipulated the system to hide those losses from his employer and save his own skin. As a direct result of his selfish and criminal actions, the company lost millions of dollars, and other workers lost their livelihoods. We don’t take these crimes lightly, and we will continue to investigate and bring to justice any individual who criminally misuses his or her position for personal gain.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
From 2005 through early September 2016, SMOTHERMON worked for a privately owned firm, headquartered in Manhattan, engaged in the international marketing, distribution, and trading of commodities products (the “Company”). SMOTHERMON ran a subsidiary of the Company, based in Houston, Texas, specializing in the trading of liquefied petroleum gas or “LPG” (the “Subsidiary”). The Subsidiary engaged in two forms of LPG trading: entering into and executing contracts for the purchase and sale of barrels of LPG, and trading financial derivative products related to LPG in an over-the-counter market.
From December 2015 up to and September 2016, SMOTHERMON caused false entries to be entered into an electronic accounting system used by the Company in an effort to hide substantial trading losses generated by the Subsidiary’s derivatives trading. SMOTHERMON repeatedly caused others working for the Subsidiary to make false entries in the accounting systems. For example, in or about August 2016, SMOTHERMAN instructed an employee to make a change in the accounting system to make it appear that a contract for the purchase of LPG entitled the Subsidiary to purchase twice as much LPG as was in fact contracted for, at the same price, essentially doubling the Subsidiary’s profits.
SMOTHERMON caused these false entries to be made in an effort to retain his job and the significant compensation due to him in connection with his employment, including a bonus of more than $14 million awarded to him in May 2016. As a result of the false entries made at SMOTHERMON’s direction, the Company overestimated the Subsidiary’s potential profits by in excess of approximately $35 million.
In the face of an upcoming audit of the Subsidiary by the Company, SMOTHERMAN resigned in or about September 2016. In part as a result of the false entries discovered by the Company in the period that followed, the Company liquidated the derivatives positions held by the Subsidiary at a substantial loss and laid off workers.
* * *
SMOTHERMON, 48, of Houston, Texas, is charged in the Complaint with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former City of Plymouth Official Sentenced to 24 Months in Prison for Illegal Bribery and Kickback SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RONNIE EUGENE TAGGART, 51, to 24 months in prison for soliciting and receiving bribes and kickbacks in exchange for awarding City of Plymouth contracts. TAGGART pleaded guilty on May 1, 2018, to one count of wire fraud and was sentenced earlier today before Senior Judge Michael J. Davis in United States District Court in Minneapolis, Minnesota.
United States Attorney MacDonald thanked the Special Agents with the FBI for their hard work and expertise in investigating public corruption cases such as this.
“The public trusts that their government officials are honest and will always work in the best interest of the citizens they represent. The defendant took advantage of that trust and used it for his own gain and we believe today’s sentence will serve as an appropriate punishment for his crimes,” said FBI Special Agent in Charge Jill Sanborn. “I want to commend the work of the investigative team on this matter, as their work on this case shows that the FBI will continue to ensure that the public’s faith in their leaders is protected.”
According to the defendant’s guilty plea and documents filed in court, from approximately October 2012 through November 2016, TAGGART was the Facilities Supervisor for the City of Plymouth, Minnesota. In his position, TAGGART was responsible for the maintenance of all buildings owned and operated by the City of Plymouth, including the authority to award contracts for City projects such as building maintenance and cleaning, landscaping, and snow removal.
According to the defendant’s guilty plea and documents filed in court, from approximately 2014 through November 2016, TAGGART devised a scheme to defraud the City of Plymouth by soliciting and receiving bribes and kickbacks in exchange for awarding City contracts to various contractors outside of the competitive bidding process mandated by Minnesota state law and City of Plymouth procurement policy. TAGGART solicited and received cash kickbacks based on the total value of certain contracts. On other contracts, TAGGART received a flat cash kickback amount from the contractor. TAGGART also solicited and received non-cash bribes from certain City contractors, including items and services for TAGGART’S home, such as thousands of dollars in kitchen appliances, installation of new carpet, a concrete driveway, a garage door, a yard irrigation and sprinkler system, and extensive landscaping and electrical work. All of these items and services were provided to TAGGART at no cost.
According to the defendant’s guilty plea and documents filed in court, in order to conceal his failure to comply with the competitive bidding requirements, TAGGART instructed the bribe- and kickback-paying contractors to submit a second, fake quotation to give the false appearance that TAGGART had complied with the state statute and City policy. TAGGART also encouraged the bribe- and kickback-paying contractors to inflate the amount of their bids to cover the cost of the kickbacks and bribes. In total, TAGGART solicited and received bribes and kickbacks worth approximately $58,532.
This case was the result of an investigation conducted by the FBI.
Assistant United States Attorney Joseph H. Thompson prosecuted the case.
Defendant Information:
RONNIE EUGENE TAGGART, 51
Golden Valley, Minn.
Convicted:
- Wire fraud, 1 count
Sentenced:
- 24 months in prison
- Two years of supervised release
- $58,352 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Felon Sentenced for Stockpiling Firearms and Attempting to Obstruct JusticeRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to more than eight years in prison for being a felon in possession of more than a dozen firearms and attempting to obstruct justice.
According to court documents, Richard Allen Patterson, 47, a previously convicted felon, conspired with his wife to stockpile in their home at least 23 rifles, shotguns, and handguns and hundreds of rounds of ammunition. Once they learned that ATF was investigating them, they attempted to cover up their crimes by lying to federal authorities, tampering with witnesses, including their own teenage daughters, hiding evidence, and attempting to fabricate evidence to exonerate Patterson. One egregious obstruction example was when Patterson had his wife change the registered address of their business weeks after ATF executed a search warrant for the property and then moved to suppress the warrant because ATF included the “wrong” address in it.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-114.
Felon Convicted at Trial for Federal Cocaine Distribution Conspiracy and Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – A federal jury today convicted James Ronnell Davis, a/k/a Twin, Slim and Slick, age 41, of Springfield, Virginia, for a cocaine distribution conspiracy, two counts of possession with intent to distribute cocaine, and for being a felon in possession of a firearm.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration, Washington Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and St. Mary’s County Sheriff Timothy K. Cameron.
According to the evidence presented at Davis’s ten-day trial, from 2009 through at least 2017, Davis conspired with Adrian Carlos Washington, a/k/a AD; Jamila Kibibi Hargrove, a/k/a Ms. Bossy; Lonnell Staton, a/k/a Papi Chulo, and others to distribute hundreds of kilograms of cocaine. Specifically, the evidence showed that Davis ran the drug conspiracy from his solely owned business, Shades, Suds and Sounds LLC (SS&S), initially located in Temple Hills, Maryland, which relocated to Capitol Heights, Maryland. SS&S provided services including car detailing, window tinting services, and audio/alarm installations, among other things, as well as purchasing vehicles from auto auctions for resale.
The evidence showed that during the course of the conspiracy, Davis used SS&S as a front to distribute cocaine, receiving deliveries of kilograms of cocaine at the business from his source of supply, and providing that cocaine to customers at SS&S and elsewhere. Davis and his co-defendants used disposable, prepaid cellular telephones, commonly referred to as “burner phones,” and frequently switched phones in an effort to thwart law enforcement. During the investigation, law enforcement intercepted and monitored telephone calls and text messages to and from phones used by Davis and his co-conspirators.
Search warrants executed at Davis’s business and residence and those of his co-conspirators resulted in the seizure of numerous cellular telephones, over $200,000 in cash, and 40 kilograms of cocaine, as well as packaging material, digital scales, and other drug paraphernalia.
Co-defendants Adrian Carlos Washington, a/k/a AD, age 43, of Oxon Hill, Maryland; Jamila Kibibi Hargrove, a/k/a Ms. Bossy, age 42, of Washington, D.C.; and Lonnell Staton, a/k/a Papi Chulo, age 38, of Washington, D.C., previously pleaded guilty to their roles in the conspiracy. Washington is scheduled to be sentenced on November 29, 2018, at 3:00 p.m.; and Hargrove and Staton are scheduled to be sentenced on January 7, 2019, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
United States Attorney Robert K. Hur commended the FBI, the DEA, the Prince George’s County Police Department, and the St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Catherine K. Dick, who are prosecuting the case.
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Federal Jury Convicts Simpsonville Man of Possessing over 500 Grams or More of Methamphetamine with the Intent to Distribute - Faces Life Sentence in Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Quirino Hernandez, 31; Adam Stone, 28; and Luis Rodriguez, 29, were sentenced in federal court after pleading guilty to participating in a drug conspiracy involving methamphetamine. Hernandez, Stone, and Rodriguez received sentences of 17 years, 13 years, and 5 years in federal prison, respectively. There is no parole in the federal system.
Andy Moorman, Head of the Narcotics Unit at the U.S. Attorney’s Office, told the Court during the sentencing hearings that Hernandez, located in Gainesville, Georgia, was the source of supply for kilograms of methamphetamine. Hernandez, with the help of Rodriguez, a runner, would meet drug dealers from Anderson, South Carolina, at a carwash in Gainesville, Georgia. While at the carwash, Hernandez would sell kilograms of methamphetamine to these drug dealers for tens of thousands of dollars, and they would return to the Upstate of South Carolina to sell the methamphetamine to their customers.
According to Moorman, Adam Stone was a courier for another leader in the organization, Joshua Peace. Peace sent Stone to the Atlanta, Georgia, area on multiple occasions to buy kilograms of methamphetamine at his request. After buying the methamphetamine, Stone would bring it to Peace in South Carolina, where Peace and other members of the organization would sell it locally.
Peace, Hernandez, Stone, Rodriguez, and others in this drug trafficking organization were responsible for the distribution of over $1 million worth of methamphetamine in the Upstate of South Carolina and elsewhere. During the course of the investigation and prosecution, federal agents and local law enforcement seized over $600,000 in U.S. Currency, seven automobiles, and other property that conspirators bought with drug proceeds.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, and the Franklin County (GA) Sheriff’s Office investigated the case.
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Federal Inmate Charged with Possessing ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named David Smeltzer, 37.
According to the indictment presented to the court, on August 5, 2018, Smeltzer possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Special Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Smeltzer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
FCI-Loretto Inmate Charged with Illegally Possessing Controlled SubstanceRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Samuel Vargas, 32.
According to the indictment presented to the court, on August 21, 2018, Vargas possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Special Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Vargas.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Elder Home Caregivers Charged with Defrauding 91-Year-Old Homebound VictimRead the Press Release
TUCSON, Ariz. – On Oct. 31, 2018, a federal grand jury returned a 72-count indictment charging Margaret Arlene Gastelum, 59, of San Manuel, Ariz. and Mona Lisa Rodriguez, 36, of Tucson, Ariz., with an eldercare fraud scheme. The indictment charged both defendants with conspiracy, bank fraud, wire fraud and aggravated identity theft. The arraignment is scheduled for Nov. 16, 2018.
The indictment alleges that Gastelum and Rodriguez provided home care assistance for a 91-year-old victim from 2015 through 2017. The defendants gained access to the victim’s banking information and fraudulently transferred/and or used funds from the victim’s bank accounts. Additionally, the defendants fraudulently used the victim’s credit cards and obtained credit cards without the victim’s full knowledge and consent. The indictment also alleges that the defendants overcharged the victim for the services without the victim’s knowledge. As a result of the defendants’ scheme to defraud, the victim suffered a loss of approximately $184,000.
A conviction for the charged conspiracy carries a maximum penalty of five years in prison, a $250,000 fine, or both. A conviction for bank fraud carries a maximum penalty of thirty years in prison, a $1,000,000 fine, or both. A conviction for wire fraud carries a maximum penalty of 20 years in prison, a $250,000 fine or both. A conviction for aggravated identity theft carries a minimum mandatory sentence of two years in prison that must be served consecutively to the ultimate sentence imposed relating to the other charges in this case.
An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation in this case was conducted by the United States Secret Service and the Tucson Police Department. The prosecution was handled by Assistant U.S. Attorney Wallace Kleindienst for the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR-02219-RM-LAB
RELEASE NUMBER: 2018-148_Gastellum et al
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
District Woman Sentenced for Distributing Synthetic MarijuanaRead the Press Release
WASHINGTON – Briana Barnes, 20, of Washington, D.C., has been sentenced to six months of incarceration on a charge stemming from an investigation into the sales of synthetic cannabinoids in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Barnes pled guilty in August 2018, in the U.S. District Court for the District of Columbia, to a charge of unlawful possession with intent to distribute a controlled substance, a District of Columbia offense. She was sentenced on Nov. 6, 2018 by the Honorable Ketanji Brown Jackson. Following her jail term, she will be placed on two years of supervised release.
According to the government's evidence, on Saturday Dec. 31, 2016, at about 3:30 p.m., members of MPD’s Narcotics Enforcement Unit were observing the 2200 Block of S Street NE, looking for narcotics transactions in the area. An undercover MPD officer, while parked in front of 2210 Adams Place NE, observed a black four-door Mercedes sedan bearing the State of Virginia tags with a male in the driver’s seat and Barnes seated on the passenger side.
The officer observed both people making what appeared to be illegal drug transactions from the driver and passenger-side windows of the vehicle. In addition, the officer witnessed, on several occasions, an unknown amount of currency exchanged between pedestrians and the people in the car; in return, Barnes and the man would hand those persons a black unknown package out of both sides of the vehicle’s windows. The undercover officer broadcast an in-depth lookout for the vehicle and driver to the MPD arrest team and gave a signal for the team to move in and stop the vehicle. At that point, the man fled the scene at a high rate of speed and sped past traffic stop signs or posted speed limits. He and Barnes were subsequently caught in the rear of a building in the 2200 block of Rand Place NE and taken into custody.
Recovered from the vehicle on the rear floorboard, behind the front passenger seat, was a large black garbage bag containing 64 black pouches and a large metric scale. Contained within each black pouch was plant material consistent with a synthetic cannabinoid product. The contents of the pouches collectively totaled approximately 2,949.5 grams of a synthetic cannabinoid, FUB-AMB, also commonly called synthetic marijuana.
In her plea, Barnes admitted that she voluntarily and purposely possessed the controlled substance and did so with the intent to distribute the controlled substance to others. The case against the man remains pending in the U.S. District Court.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the efforts of those who worked in the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Legal Intern Nikeesha D. Nath. Finally, they commended the work of Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
District Man Pleads Guilty to Federal Gun and Drug Charges After Being Observed Engaging in Sale of NarcoticsRead the Press Release
WASHINGTON – Austin Boykins, 35, of Washington, D.C., pled guilty today to possessing a firearm in furtherance of a drug trafficking offense, after law enforcement discovered a loaded firearm and packaged narcotics in his vehicle following a street sale of drugs during an undercover operation, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Boykins pled guilty before the Honorable Ellen S. Huvelle in the U.S. District Court for the District of Columbia. He faces a mandatory minimum sentence of five years of incarceration and up to life imprisonment. Judge Huvelle scheduled sentencing for Jan. 23, 2019.
According to the government’s evidence, on July 10, 2018, members of MPD’s Narcotics and Special Investigations Unit were conducting undercover operations in the 1200 to 1300 block of Rock Creek Ford Road NW. During the operation, a plainclothes undercover officer observed Boykins engage in a hand-to-hand drug transaction. Arrest teams moved in and obtained crack cocaine from the purchaser and stopped Boykins, who had $587.48 in cash on his person and a key to a Porsche that was only a few feet away from him. After obtaining a search warrant for the vehicle, law enforcement recovered the defendant’s wallet, which had two photo identifications from two separate jurisdictions, 14 grams of crack cocaine, and a loaded firearm. The firearm was subsequently found to contain his DNA.
Boykins has prior convictions in the Superior Court of the District of Columbia for firearms and narcotics offenses.
In announcing the plea, U.S. Attorney Liu and Chief Newsham, commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Christopher Macchiaroli, Paralegal Specialist Candace Battle, and Legal Assistant Aiesha Bynum.
Deputy Attorney General Names U.S. Attorney Williams Chair of National Marijuana Working GroupRead the Press Release
WASHINGTON—Deputy Attorney General Rod J. Rosenstein today named Billy J. Williams, U.S. Attorney for the District of Oregon, chair of the Attorney General’s Marijuana Working Group. The working group is part of the Attorney General Advisory Committee’s (AGAC) Controlled Substances Subcommittee.
“I am honored to be named chair of the Marijuana Working Group and look forward to working with Attorney General Sessions, Deputy Attorney General Rosenstein and my fellow U.S. Attorneys on this important policy area,” said U.S. Attorney Williams. “From our statewide summit in February to the release of our district enforcement strategy this summer, we’ve learned a lot from stakeholders representing many diverse interests. There is one thing everyone agrees on: a broad need for stronger regulation. This working group provides a valuable forum for sharing ideas and learning from the experiences of others in an effort to develop innovative, multi-district enforcement strategies to address the many impacts of a nascent industry.”
The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. The AGAC represents the nation’s U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
Corpus Man Sent to Prison for Dealing Drugs, Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison following his conviction of possessing with intent to distribute methamphetamine and illegally possessing a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick. A federal jury convicted Juan Dedios Delagarza Aug. 14, 2018, following two days of trial and less than two hours of deliberation.
Today, U.S. District Judge Nelva Gonzales Ramos, who presided over the trial, handed Delagarza a 96-month sentence to be immediately followed by three years of supervised release.
During trial, jurors heard testimony that authorities executed a search warrant in the early morning hours of Sept. 28, 2013, at Delagarza’s Corpus Christi residence. He was there along with his five juvenile children and their mothers, among others.
Officers searched the residence and found more than 10 grams of methamphetamine, as well as numerous drug ledgers, scales, baggies, pipes and other drug paraphernalia. Also found was a loaded, stolen firearm and other ammunition. Officers and agents provided testimony about Delagarza’s prior felony conviction, the origin of the firearm and ammunition and the analysis of the narcotics recovered.
The jury also heard that Delagarza had previously admitted he knew of the methamphetamine.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Department of Public Safety; Nueces County Sheriff’s Office; and Corpus Christi Police Department all assisted in the joint investigation. Assistant U.S. Attorney Michael Hess is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Convicted Felon Pleads Guilty to Firearms and Counterfeit Currency OffensesRead the Press Release
ALEXANDRIA, Va. – A man from the Washington, D.C. area pleaded guilty today to possessing multiple firearms as a convicted felon and passing counterfeit Federal Reserve Notes.
According to court documents, Kevin Bushrod, 31, purchased two AR-15 semiautomatic rifles in June from an individual who was unaware that Bushrod had previously been convicted of numerous felony offenses. Bushrod used an alias during the transaction, which occurred in Alexandria, and paid for the firearms using, in part, counterfeit Federal Reserve Notes.
Less than one week later, on June 14, the Leesburg Police Department conducted a traffic stop of Bushrod’s Mercedes Benz vehicle in Leesburg. Bushrod fled in his vehicle while an officer was speaking on the phone with Bushrod’s federal Probation Officer. While being pursued by law enforcement, Bushrod began driving in an aggressive and dangerous manner, and his reckless driving forced other vehicles to take evasive actions to keep from being struck. Bushrod then jumped out of his vehicle without turning it off and continued to flee on foot, to include scaling a fence and falling 25 to 30 feet into a wooded area. Bushrod was finally apprehended near an abandoned outbuilding deep within the wooded area, where law enforcement officers and a K-9 established a security perimeter.
Following a court-authorized search of Bushrod’s Mercedes Benz vehicle, law enforcement located a Smith & Wesson AR-15 semiautomatic rifle that Bushrod previously purchased with counterfeit currency, and a loaded FNX-9 9mm semiautomatic pistol. Bushrod’s vehicle also contained, among other items, a stash of counterfeit Federal Reserve Notes, additional ammunition, a knife, multiple baggies containing suspected cocaine, digital scales, and five cell phones.
Bushrod faces a maximum penalty of 20 years in prison on the counterfeit currency charge and 10 years in prison on the firearms charge 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, Gregory C. Brown, Chief of Leesburg Police, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Significant investigative assistance was provided by the FBI’s Washington Field Office’s Safe Streets/HIDTA Task Force. Assistant U.S. Attorney Raj Parekh 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-395.
Convicted Felon Heads to Prison for Firearms ViolationRead the Press Release
McALLEN, Texas – A 32-year-old Donna man has been sentenced in federal court for being a felon unlawfully in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Joaquin Ramos De La Cruz pleaded guilty Sept. 1, 2017.
Today, U.S. District Judge Randy Crane handed De La Cruz a sentence of 204 months in federal prison to be immediately followed by three years of supervised release. De La Cruz had previously been convicted for numerous criminal offenses, including aggravated robbery, aggravated assault and attempted murder. The court found him to be an armed career criminal. In handing down the sentence, Judge Crane considered De La Cruz’s disregard for human life displayed in his prior criminal conduct in which he discharged firearms at multiple individuals in separate criminal episodes. The court also considered several jail calls the defendant made in which he threatened others with death while awaiting sentencing.
On Jan. 17, 2017, the U.S. Marshals Service (USMS) and the Law Enforcement Emergency Regional Response Team (LEERT) attempted to execute an arrest warrant for De La Cruz at a residence in Donna. While authorities entered the residence, De La Cruz discharged multiple rounds from a Ruger, Model P95, 9mm pistol in an attempt to exit through a locked rear door to the residence. De La Cruz eventually exited, but was promptly apprehended. Agents recovered the Ruger 9mm pistol at the scene.
As a convicted felon, he is prohibited by federal law of possessing any firearm or ammunition.
In federal custody since his arrest, De La Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the USMS and LEERT. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Co-Owners of Miami Pain Management Clinic and Patient Recruiter Sentenced to Prison for Scheme to Distribute Medically Unnecessary Opioid PrescriptionsRead the Press Release
The husband and wife co-owners of a Miami, Florida pain management clinic and a patient recruiter who doubled as a drug diverter were sentenced to prison today for their participation in a scheme to unlawfully distribute thousands of pills of oxycodone.
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, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
David Bosch, 46, and Tania Sanchez, 47, both of Hialeah, Florida, and Odalys Abreu, 45, of Miami, were sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida. Bosch, Sanchez and Abreu were sentenced to serve 108, 97 and 57 months in prison followed by three years of supervised release, respectively. In addition to the prison term, U.S. District Court Judge Moore ordered Abreu to pay a forfeiture money judgment of $75,000 and ordered Bosch and Sanchez to pay a forfeiture money judgment in the amount of $131,250, jointly and severally. Each of the defendants pleaded guilty in August 2018 to one count of conspiracy to distribute controlled substances.
“The three defendants sentenced today ran a pill mill masquerading as a cash-only ‘pain clinic’ that issued medically unnecessary prescriptions for thousands of tablets of oxycodone,” said Assistant Attorney General Benczkowski. “The Department of Justice will use every tool at its disposal to aggressively pursue the pill mills—and their owners and operators—flooding our communities with illicit opioids that kill tens of thousands of Americans every year.”
“We are committed to investigating healthcare providers who illegally distribute opioids like common drug dealers,” said HHS-OIG Special Agent in Charge Richmond. “We will continue to work closely with our law enforcement partners to hold accountable those who are fueling the deadly opioid epidemic.”
According to admissions made as part of their plea agreements, Bosch and Sanchez owned and operated East Medical Office Inc. (East), purportedly a pain management clinic, located at 3778 West 12th Avenue, in Hialeah. Bosch incorporated the cash-only clinic in April 2017 and ran it with Sanchez until their arrests on May 3, 2018. Bosch and Sanchez hired a physician to be the purported medical doctor of East because they knew the physician would write prescriptions for oxycodone without regard to medical necessity, they admitted. They paid the physician $125 for each prescription. They also admittedly conspired with patient recruiters and drug diverters to distribute oxycodone. Bosch introduced a purported patient recruiter to Abreu and informed the recruiter that the recruiter could make money by obtaining oxycodone pills from medically unnecessary prescriptions from East and then selling the pills, Bosh admitted. Additionally, Sanchez filled out fraudulent medical paperwork for purported patients, she admitted.
According to admissions made as part of her plea agreement, Abreu recruited her own patients to visit East. Abreu brought to East at least 18 individuals who paid approximately $250 for each purported “medical consultation” in order to receive controlled substances, especially oxycodone, that were not medically necessary. Abreu’s recruits received prescriptions for at least 5,000 tablets of oxycodone 30 mg. Abreu also offered to purchase pills from another individual whom she believed was a patient recruiter at East, she admitted.
Ledif Acanda Machado, 39, of Miami, Florida, who was charged in this conspiracy, remains a fugitive.
This case was investigated by the FBI, HHS-OIG, USSS and the DEA. Trial Attorney Adam Yoffie of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 14 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Cincinnati Man Sentenced to Life in Prison for Causing a Fatal OverdoseRead the Press Release
COVINGTON, Ky. – Johnny L. Shelton, 41, of Cincinnati, was sentenced today to life in prison, by United States District Judge David L. Bunning, for conspiring to distribute carfentanil resulting in death.
Shelton was convicted in June 2018, following a five-day jury trial. According to testimony at trial, Shelton led a conspiracy to smuggle carfentanil, an extremely powerful opioid, into the Boone County Jail Work Camp, on or about October 15, 2016. Evidence revealed that Timothy Marcum, a fellow inmate, consumed some of the carfentanil and died. Jailers found Marcum’s body, in the work camp, during the early morning hours of October 16, 2016.
Under federal law, Shelton will not be eligible for release from prison. The life sentence was mandated because Shelton’s conduct caused death and he had a prior conviction for drug trafficking. Court documents showed that Shelton was convicted of felony drug trafficking offenses on five prior occasions in Ohio. Other members of the conspiracy have been previously sentenced. Chad Prodoehl was tried, convicted, and sentenced to 300 months in prison, in May 2018. Gordon Wanser pled guilty and was sentenced to 43 months in prison, in July 2018.
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 United States was represented by Assistant United States Attorneys Tony Bracke and Wade Napier.
Charter Owner Pleads Guilty to Misconduct or Neglect that Resulted in DeathRead the Press Release
Laurent Marc-Antoine Jean Maubert-Cayla pled guilty on November 5, 2018, to misconduct or neglect of a charter owner that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.
According to the court record, including the agreed upon factual proffer, Maubert-Cayla, originally of France, was a part owner of the MIAMI VICE, a 91-foot performance yacht. Maubert-Cayla offered the yacht for charters on a website, and employed Captain Mauricio Alvarez to drive the yacht during charters from approximately November of 2017 until April of 2018. The MIAMI VICE charter operation was illegal because, among other reasons, Alvarez did not have a valid United States Coast Guard license. In fact, Alvarez received a ticket from the United States Coast Guard in March of 2018 for operating a charter on board the MIAMI VICE without an appropriate Coast Guard license. In addition, Maubert-Cayla knew that Alvarez was heavily using cocaine and alcohol during the period he served as captain on board the MIAMI VICE, and had filmed Alvarez using cocaine as recently as March 29, 2018.
On April 1, 2018, Maubert-Cayla chartered the MIAMI VICE to a group of individuals, who met and paid Maubert-Cayla at the Sea Isle Marina. The MIAMI VICE then left the Sea Isle Marina with Alvarez acting as captain. Alvarez drove the yacht at a high rate of speed and beached it on Monument Island, where the charter patrons, including victim R.M.P., began to swim. Alvarez then decided to leave the Island, but did not ensure that everybody was on board the yacht before doing so. Alvarez started the yacht’s 4500 horsepower engines and accelerated them in reverse, directly to where victim R.M.P. was swimming. R.M.P. was caught in the MIAMI VICE’s propellers and killed.
Maubert-Cayla is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 20, 2019, at 9:30 a.m.
Mauricio Alvarez pled guilty for his misconduct or neglect as a ship officer (yacht captain) that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115 (Case No. 18-CR-20314). He is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on November 28, 2018, at 9:00 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS and FWC in this matter. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorneys Philip Jones and Emily Rose.
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.
Central Valley Drug Trafficker Sentenced to More Than A Decade in PrisonRead the Press Release
SAN FRANCISCO – Daniel Jimenez was sentenced today to 10 years and 8 months in prison for his involvement in a cocaine and methamphetamine trafficking conspiracy, announced United States Attorney Alex G. Tse and Drug Enforcement Administration Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Jimenez, 48, of Ballico, Calif., pleaded guilty to the charges on December 5, 2017. As part of his plea agreement, Jimenez acknowledged that he participated in a conspiracy to traffic cocaine and methamphetamine. Jimenez admitted that he facilitated the storage of controlled substances intended for distribution. He also admitted to assisting his co-defendants in receiving cocaine and methamphetamine and exchanging the cash proceeds of drug sales.
Jimenez was arrested on October 13, 2015. As part of his plea agreement, he admitted that on the day before his arrest, October 12, 2015, one of his co-conspirators came to his home to deliver cocaine and methamphetamine. On the day of his arrest, law enforcement authorities executed a search warrant at Jimenez’s residence in Ballico. Authorities found approximately 14.3 kilograms of cocaine inside a hidden compartment in a Nissan Versa sedan parked in Jimenez’s garage, as well as digital scales, a money counter, packaging materials, and two handguns in Jimenez’s garage. Authorities found approximately 1.3 kilograms of methamphetamine and $369,040 in U.S. currency inside of a hidden compartment in a Chevrolet SUV parked on Jimenez’s yard. Authorities located approximately $2,589 in U.S. currency in Jimenez’s bedroom.
On November 19, 2015, a federal grand jury indicted Jimenez, charging him and twelve co-defendants with, among other charges, conspiracy to distribute and possess with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 846 & 841(a)(1). Pursuant to his plea agreement, Jimenez pleaded guilty to that charge. In addition to the 128-month prison term, Judge Donato sentenced Jimenez to a 5-year term of supervised release and 400 hours of community service. The defendant has been in custody since his arrest.
Jimenez’s sentence brings to ten the number of defendants sentenced as part of the conspiracy to distribute and possess with intent to distribute controlled substances in this case. All twelve of Jimenez’s co-defendants have pleaded guilty. The defendants are as follows:
Defendant
Age/
Residence
Charges
Status
Jesus Guadalupe Rojas
32/
Turlock
Distribution of methamphetamine, 21 U.S.C. §§ 841(a)(1)
Sentenced on June 14, 2017, to 24 months in prison and 3 years supervised release.
Jose Armando Mendoza Linares
42/
Turlock
Conspiracy to distribute and possess with intent to distribute methamphetamine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on October 25, 2017, to 60 months in prison and 5 years supervised release.
Gabriel Estrada
41/
Compton
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on December 13, 2017, to 70 months in prison and 3 years supervised release
Vanessa Valdez
31/
Chula Vista
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on December 13, 2017, to 22 months in prison and 3 years supervised release.
Elias Dominguez
46/
Patterson
Conspiracy to distribute and possess with intent to distribute methamphetamine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on January 24, 2018, to 55 months in prison and 5 years supervised release.
Carlos Martinez
26/
Hayward
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on February 21, 2018, to 30 months in prison and 3 years supervised release.
Ismael Mendoza Rodriguez
37/
Turlock
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Possession of a firearm in furtherance of drug trafficking, 18 U.S.C. § 924(c)
Sentenced on February 21, 2018, to 200 months in prison and 5 years supervised release.
Michael Sherman
48/
Lathrop
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on February 28, 2018, to 32 months in prison and 3 years supervised release.
Ruben Franco Lopez
48/
Turlock
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on March 7, 2018, to 37 months in prison and 3 years supervised release.
Manuel Lara Andrade
64/
Delhi
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced March 14, 2018, to 140 months in prison and 5 years supervised release.
Manuel Gonzalez Chavez
42/
Stockton
Conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Possession of a firearm in furtherance of drug trafficking, 18 U.S.C. § 924(c)
To be sentenced December 5, 2018.
Maximum sentence:
Conspiracy-
Life in prison (mandatory minimum 10 years in prison)
Firearm charge-
Life in prison
(mandatory minimum 25 years in prison)
Carlos Olivares Hernandez
52/
Turlock
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
To be sentenced on January 9, 2019.
Maximum sentence: Life in prison (mandatory minimum 10 years in prison)
During the course of this investigation, law enforcement seized more than 40 pounds of methamphetamine, more than 65 pounds of cocaine, more than 11 pounds of heroin, more than $1,200,000 in cash drug proceeds, and approximately twelve firearms.
Assistant U.S. Attorneys Christiaan Highsmith, Sheila Armbrust, Katie Burroughs Medearis, and Gregg Lowder are prosecuting the case with the assistance of Theresa Benitez, Ana Guerra, and Michelle Alter Eck. The prosecution is the result of an investigation by the DEA, the Concord Police Department, and the IRS Criminal Investigations. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Carmichaels Woman Sentenced for Defrauding Social Security AdministrationRead the Press Release
PITTSBURGH, PA - A Greene County resident has been sentenced in federal court to four years of probation, together with twelve months of home detention, and restitution of $115,597.94 on her conviction of Social Security fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Cindy Hancheck, 62, of Carmichaels, Pennsylvania.
According to information presented to the court, from 1999 to 2002, Hancheck made a series of false statements to the Social Security Administration, such as falsely claiming that her husband had left her home and that she did not know his whereabouts. Between 1999 and 2016, Hancheck failed to disclose to the Social Security Administration her husband’s continued presence in her household and his continued financial support of her, with the intent fraudulently to secure Supplemental Security Income benefits. From January 2000 to February 2016, Hancheck received and converted $115,597.94 in Supplemental Security Income benefits to which she knew she was not entitled.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the Social Security Administration – Office of Inspector General for the investigation leading to the successful prosecution of Cindy Hancheck.
Canaan Man Pleads Guilty to Transporting and Possessing Child PornographyRead the Press Release
CONCORD - Zachary A. C. Benoit, 28, of Canaan, pleaded guilty in federal court to transportation and possession of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the summer of 2017, the Grafton County Sheriff’s Department was conducting an online investigation into individuals involved in the trading of illegal images of child pornography. Benoit was identified after he uploaded numerous images of child sexual abuse, which were intercepted by law enforcement. Forensic examinations of several of Benoit’s electronic devices revealed thousands of images and videos depicting the sexual assaults of children including babies and toddlers.
Benoit is scheduled to be sentenced on March 6, 2019. He is subject to a minimum mandatory sentence of 5 years.
“Among the most important roles of law enforcement is to protect innocent children,” said U.S. Attorney Murray. “We work closely with our colleagues to investigate and prosecute crimes involving child pornography and child exploitation. Those who commit these crimes should understand that they will be prosecuted aggressively.”
“We are very glad to see justice done in this disturbing case,” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston. “This case would not have been successful without the critical support from our local and state partners. Considering the repulsive nature of the crimes committed against the most innocent of victims in this case, we look forward to the sentencing phase in this investigation.”
This matter was investigated by the Grafton County Sheriff's Department, Lebanon Police Department, Nashua Police Department, and members of the Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney Helen W. Fitzgibbon with assistance from the Department of Homeland Security.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Camp Verde Man Sentenced to 27 Months in Prison for Burglary of Tribal EntityRead the Press Release
PHOENIX – Earlier this week, Francisco Joseph Doungeva, 44, of Camp Verde, Ariz., was sentenced by United States District Judge Douglas L. Rayes to 27 months in federal prison, followed by one year of supervised release. On Aug. 6, 2018, Doungeva had previously pleaded guilty to one count of burglary.
On Jan. 6, 2018, Doungeva, an enrolled member of the Yavapai-Apache Nation, burglarized Cloverleaf Ranch, a property owned and operated by the Yavapai-Apache Nation Department of Agriculture. Doungeva, who stole farming equipment and a vehicle, is a former employee of the ranch.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8158-PCT-DLR
RELEASE NUMBER: 2018-147_ Doungeva
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Man Pleads Guilty to Lying to Federal AgentsRead the Press Release
Abingdon, VIRGINIA – A California man, who made threats of violence against Virginia Congressman Tom Garrett, pleaded guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to one count of lying to federal agents, United States Attorney Thomas T. Cullen announced.
Eun Soo Lee, 24, of Cypress, California, waived his right to be indicted and pleaded guilty yesterday to a one-count felony Information charging him with lying to a federal agent.
“We must not mistake threats of violence for free speech,” United States Attorney Cullen stated today. “Although the First Amendment protects the right to express political views, its protections do not extend to communications that threaten the safety and well-being of any person, elected official or otherwise.”
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Randy Ramseyer, in May of 2017, Lee, using a fake Facebook account and virtual private network to hide his identity, made threats against Congressman Garrett.
Those threats included, but were not limited to:
“You’re dead if I ever meet you in real life, fu****. I’ll fu***** kill you.”
When questioned by law enforcement, Lee denied having a Facebook account, denied ever using a fake Facebook accounts, and denied ever sending messages to Congressman Garrett. Notwithstanding Lee’s efforts to hide his identity, investigators traced the messages to Lee, who eventually admitted to sending the threats.
United States District Judge James P. Jones will sentence Lee on January 30, 2019 at 2:30 p.m.
The investigation of the case was conducted by the United States Capitol Police, with the assistance of the Federal Bureau of Investigation and Orange County (CA) Sheriff’s Office. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Brooklyn Center Man Sentenced to 92 Months in Prison for Tax Fraud and Identity TheftRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ELLIS ALANCE BANKS, 53, to 68 months for conspiracy to defraud the United States, and 24 months for aggravated identity theft, to be served consecutively. He was sentenced on November 7, 2018, by Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. Judge Doty also ordered more than one million dollars in restitution.
ELLIS ALANCE BANKS, pleaded guilty on May 24, 2018. According to documents filed in court including BANKS’ guilty plea, from at least January 31, 2013 to at least May 28, 2016, BANKS defrauded the United States by filing over 250 false tax returns seeking $1.5 million in fraudulent tax refunds. Additionally, he obtained social security numbers, dates of birth, and other personal identifying information of individuals to use to file fraudulent income tax returns.
“Millions of hardworking Americans pay their taxes expecting that money to be used to fund the essential needs of Government,” stated IRS Criminal Investigation Special Agent in Charge Gabe Grchan. “Ellis Banks stole more than one million dollars from the pockets of our citizens and this sentence illustrates that there are consequences for exploiting others through fraud and deceit to steal from the United States Treasury.”
This case was the result of an investigation conducted by the Internal Revenue Service.
Assistant U.S. Attorney Michelle Jones prosecuted the case.
Defendant Information:
ELLIS ALANCE BANKS, 53
Brooklyn Center, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- Aggravated identity theft, 1 count
Sentenced:
- 92 months in prison
- Three years supervised release
- $1,001,999.49 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Boise Man Sentenced to 15 Years in Prison for Distribution of Child PornographyRead the Press Release
BOISE – Neal G. Tilton, 40, of Boise, was sentenced yesterday in U.S. District Court to 180 months in prison followed by 10 years supervised release, for distribution of child pornography, U.S. Attorney Bart M. Davis announced. The sentence was imposed by Senior U.S. District Court Judge Edward J. Lodge. Tilton pleaded guilty on April 12, 2018.
According to court records, in August 2017, an investigator in Texas was monitoring a chat room where images of child pornography were being traded. An individual from Idaho, later identified as Tilton, posted a link to an online storage account containing images of child pornography. The investigation was referred to the Boise Police Department (BPD). U.S. Magistrate Judge Candy W. Dale signed a search warrant for the online storage account and an associated e-mail account, and the BPD detective identified the accounts as belonging to Tilton and containing child pornography. The e-mail account also contained evidence that Tilton was acting as the administrator of the chat room, had created rules for access and involvement in the child pornography trading chat room, and was trading images of child pornography via e-mail.
The BPD detective also discovered that Tilton had recently been arrested for leaving the scene of an accident and driving under the influence. Tilton had left his wallet and his cell phone in the vehicle after fleeing the scene of the accident. Judge Dale signed a search warrant for the cell phone, and the BPD detective discovered the phone contained additional evidence of the distribution of child pornography, including numerous images of child pornography.
The case was investigated by the Boise Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Benton Man Charged with Illegal Machinegun PossessionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Jacob Hasay, age 21, of Benton, Pennsylvania, was charged in a criminal information with the illegal possession of a machinegun.
According to United States Attorney David J. Freed, the information alleges that Hasay possessed a Glock 19 9mm bearing an auto sear from October 22, 2017 through August 23, 2018. Law enforcement identified Hasay after he posted content in online forums espousing racist, white supremacist, and Nazi ideologies, and threatened to commit a hate crime.
The information also seeks forfeiture of several firearms, ammunition, and firearms components, including:
- Glock 19 9mm bearing an auto sear;
- CAA Model G3, Micro Roni pistol carbine conversion bearing a scope;
- IWI Model MP Uzi bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- GSG Model 522 bearing a shortened barrel and a Black and Brown optic (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Charter Arms Model AR-7 Explorer bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Mossberg Model 500A bearing a shortened barrel;
- I.O. Inc. Sporter bearing a suppressor (a semiautomatic firearm that is capable of accepting a large capacity magazine); and
- two suppressors.
Hasay has remained in detention since his arrest on August 23, 2018.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Bakersfield Trucker Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. — Darrell Leon Jennings, 51, of Bakersfield, pleaded guilty today to conspiring to distribute and possess with intent to distribute heroin and cocaine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jennings, a trucker doing business in Moreno Valley as Jennings Transportation, assisted Mario Alvarez-Muniz, 50, of Taft, in transporting 6 kilograms of heroin and 11 kilograms of cocaine destined for Chicago. After Alvarez-Muniz arranged for the shipment of the drugs from Mexico to Mira Loma, Jennings picked up the drugs and drove back to Bakersfield where he was stopped by agents. A police dog located the drugs in a customized hidden compartment in Jennings’ truck.
Jennings is scheduled for sentencing on January 28, 2019, by Chief U.S. District Judge Lawrence J. O’Neill. Jennings faces a mandatory minimum statutory penalty of 10 years in prison and a maximum penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Co-defendant Alvarez-Muniz previously pleaded guilty and was sentenced to 10 years and one month in prison.
This case is the product of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation by the U.S. Drug Enforcement Administration, California Highway Patrol, Bakersfield Police Department, and Kern County Probation Office. OCDETF is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and related criminal enterprises. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Assistant U.S. Attorney Brandon Hale Receives Professionalism AwardRead the Press Release
OKLAHOMA CITY – Assistant U.S. Attorney Brandon Hale has been named the prosecutorial Professional Advocate of the Year by the Criminal Law Section of the Oklahoma Bar Association, announced Robert J. Troester of the U.S. Attorney’s Office. Mr. Hale received the award today at the Section’s luncheon at the Oklahoma Bar Association’s Annual Meeting in Tulsa. Each year, the Criminal Law Section recognizes a prosecutor and a defense attorney who exhibit superior advocacy skills before the court and consistently show professionalism, courtesy, and respect to opposing counsel in the spirit of the adversarial system.
Since Mr. Hale became an Assistant U.S. Attorney in 2008, his practice has focused on Project Safe Childhood, a long-standing Department initiative to prosecute child pornography and other child exploitation offenses. A graduate of the University of Oklahoma College of Law, he serves as the Professional Responsibility Officer for the U.S. Attorney’s Office’s Criminal Division. In addition to his role at the Department of Justice, he serves as an officer in the Navy JAG Corps.
Anchorage Man Found Guilty of September 2018 Bank RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man was found guilty of one count of credit union robbery, in connection with the September 2018 robbery of Alaska USA Federal Credit Union, located at 500 West 36th Avenue in Anchorage.
Eyob Eric Stewart Imlach, 23, of Anchorage, was convicted by U.S. District Judge Sharon L. Gleason after a bench trial lasting a little over one day. As a result of his conviction, Imlach faces a maximum penalty of up to twenty years in prison, and a fine of up to $250,000. The sentencing hearing is set for Feb. 4, 2019.
According to evidence presented at trial, on Sept. 6, 2018, Imlach entered Alaska USA at approximately 12:24 pm, wearing a dark parka with the hood pulled over his head and carrying a backpack. After entering the credit union, Imlach approached a teller and wrote a note on the back of a check that had his name and address, which read “Give me all the $.” The teller did not immediately give cash to Imlach, so he passed the note to a second teller. Imlach received approximately $1,778 from the second teller, and then left the credit union with the money.
After the robbery, an Alaska USA employee observed Imlach walk across the parking lot along W. 36th Avenue and enter the Qupqugiag Inn. Within minutes, APD officers surrounded the Inn and entered the building. Imlach tried to flee by opening a window and climbing out onto a deck; however, officers positioned on that side of the building immediately detained him. Officers recovered Imlach’s backpack, which was located in a black garbage bag inside the Inn and near the window he climbed out of. Also recovered were numerous bills in different denominations of U.S. currency scattered around common areas of the Inn, including inside a small refrigerator.
FBI agents searched Imlach’s backpack and recovered the note used to commit the robbery, clothing worn during the robbery, and U.S. currency. The investigation further revealed that, about an hour before the robbery, Imlach had drawn attention inside the ASRC building located near Alaska USA, after trying to seek access to suites on the floors above the main lobby. Imlach was denied access but refused to leave the building. APD was called, and they subsequently escorted Imlach out of the building.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Stephen Corso and Charisse Arce.
Alleged Kidnapper Charged with Making False Statements to Hide Identity and Receive Federal BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned a seven-count indictment today charging ALLAN MANN, JR., also known as “Hailee Randolph DeSouza” and Hailey R. DeSouza,” 66, with false statement offenses related to his living in the U.S. under an assumed name for approximately 30 years.
As alleged in court documents, Allan Mann abducted his 21-month-old son, Jermaine Allan Mann, on June 24, 1987, during a court-ordered visit in Toronto, Canada. Allan Mann, who is a Canadian citizen, and his son subsequently entered the U.S. Allan Mann changed his name to Hailee Randolph DeSouza, changed the name of his son, and acquired counterfeit birth certificates for him and his son. Allan Mann has never applied for nor received citizenship status in the U.S.
The indictment alleges that, in June 1990, Mann, using the name Hailee Randolph DeSouza, applied for and received a Social Security Number. In support of this application, Mann presented his counterfeit birth certificate. In May 2018, Mann, using his alias, applied for a replacement Social Security card.
It is further alleged that Mann has participated in the U.S. Department of Housing and Urban Development (“HUD”) Section 8 subsidized housing program at various times since 2004. Mann most recently resided in Section 8 subsidized housing in Vernon, Connecticut. Mann has made multiple false statements on HUD forms he signed in connection with his participation in the Section 8 program. HUD has paid tens of thousands of dollars in housing assistance payments on Mann’s behalf.
The indictment alleges that Mann also made multiple false statements on applications to participate in the State of Connecticut’s Medicaid program. Since January 2014, Medicaid has paid tens of thousands of dollars for Mann’s medical expenses.
The indictment charges Mann with four counts of making a false statement, and three counts of making a false statement in a healthcare matter. Each charge carries a maximum term of imprisonment of five years.
Mann has been detained since October 26, 2018, when he was arrested on a criminal complaint.
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 U.S. Marshals Service, U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Department of Health and Human Services –Office of the Inspector General, U.S. Department of State – Bureau of Diplomatic Security, Social Security Administration – Office of Inspector General, Toronto Police Service, Royal Canadian Mounted Police and the Vernon Police Department. The Missing Children Society of Canada and the National Center for Missing and Exploited Children have provided critical assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Hal Chen.
Alien Sentenced for Unlawful Possession of a Firearm and Judicially Ordered Deported to EgyptRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that TAMER AHMED QAID SAID RABEH, age 37, of Egypt, illegally present in the United States and residing in Pender County, North Carolina, was sentenced today to 18 months imprisonment, after an August 7, 2018, guilty plea to illegal and unlawful alien in possession of a firearm. According to court records, RABEH overstayed his visitor visa and was encountered by the Pender County Sheriff’s Office in possession of a stolen firearm during a residential breaking and entering investigation.
RABEH was sentenced in Greenville by Senior United States District Court Judge Malcolm J. Howard who in addition to the term of incarceration also issued a judicial order of deportation ordering the defendant’s prompt removal from the United States to Egypt upon release from federal custody.
The case was investigated by Homeland Security Investigations and the Pender County Sheriff’s Office.