Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 December 2018
Browning woman admits embezzlement of Blackfeet Tribe’s Head Start programRead the Press Release
GREAT FALLS—Browning resident Denise L. Sharp, 60, who worked for the Blackfeet Tribe’s Head Start Program, admitted in federal court on Tuesday to stealing money through an overall scheme involving others in which an estimated $232,000 was fraudulently claimed as overtime pay, U.S. Attorney Kurt G. Alme said.
U.S. Magistrate Judge John T. Johnston presided at the hearing and will recommend Sharp’s plea be accepted by U.S. District Judge Brian M. Morris, who is assigned to the case. Sentencing is set for March 20, 2019. Sharp is released.
Sharp faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. She also faces restitution and an additional monetary judgment of $38,711 as the amount she claimed in overtime pay.
If the case had gone to trial, the government would have presented the following information as evidence:
The Blackfeet Tribe operates the Head Start Program with funding from the U.S. Department of Health and Human Services. Head Start provides early childhood education and other services for low-income children and their families.
During a 15-month period, starting in April 2013, Sharp and others falsely claimed 7,800 hours of overtime and received more than $232,000 in overtime pay from the Head Start program. When the fraud was uncovered, two different firms audited the Blackfeet Head Start program. Both audits questioned the overtime claims, identifying them as “beyond necessary and reasonable” and lacking any supporting documentation.
The Blackfeet Tribe did its own internal review, agreed it could not justify the overtime claims and repaid HHS $250,620.29 for disallowed costs and other expenses.
After an on-site review of the program by government authorities from Washington, D.C., Sharp along with co-defendants and others met in a conference room. Despite not actually working the hours, everyone present in the room agreed to continue claiming overtime.
Other Head Start workers told investigators they never saw Blackfeet Head Start personnel working late nights or on weekends. The program’s board chairman was unaware of the overtime claims, identified budget cuts that were necessary during the time period of the fraud and was unaware of any needs that would have justified the overtime claims by the defendants.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI and HHS.
XXX
Box Elder man admits domestic abuseRead the Press Release
GREAT FALLS – A Box Elder resident admitted in federal court on Dec. 10 to domestic abuse charges for repeatedly assaulting the victim, U.S. Attorney Kurt G. Alme said.
Cole Young Bad Hawk, 24, pleaded guilty to domestic abuse by an habitual offender.
U.S. District Judge Brian M. Morris presided at the hearing. Judge Morris set sentencing for March 21, 2019. Bad Hawk is detained.
Bad Hawk faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
If the case had gone to trial, the government would have provided the following information as evidence:
On March 23, 2016 in Box Elder, on the Rocky Boy’s Indian Reservation, Bad Hawk assaulted the victim after becoming angry when he saw her messaging other people on her phone and thought she may be cheating on him. Bad Hawk called the victim names and punched her in the face with his fist, knocking her down. While the victim was down, Bad Hawk picked her up with one hand holding her hair and his other hand holding one leg and repeatedly body slammed her onto the floor.
Bad Hawk then dragged the victim into a bedroom where he continued calling her names. The victim ran into the bathroom and locked the door, but Bad Hawk kicked the door open and assaulted the victim while she was on the floor. From the bathroom, Bad Hawk took the victim back to the bedroom and squeezed her by neck with his hand, impeding her ability to breathe.
Bad Hawk has two prior domestic assault convictions involving the same victim in Chippewa Cree Tribal Court.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI.
XXX
Bogalusa Church Pastor Sentenced for Theft of over $90,000 in Social Security Disability FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced yesterday that JERRY R. NEWTON, age 54 of Slidell, Louisiana was sentenced after pleading guilty to a one count Bill of Information charging Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in court, NEWTON applied for Social Security disability benefits under Title II of the Social Security Act. A person receiving disability benefits must truthfully disclose to the Social Security Administration any employment or income while getting the government money. In forms submitted to the SSA, NEWTON failed to disclose that he was the paid pastor of Bogalusa Baptist Church since May of 2007 and that he owned two businesses, Still Dreaming Graphics, LLC and Kclean Sweep, a cleaning service. Due to his concealment of his salary and income produced from his businesses, NEWTON received a total of $95,316 in disability benefits to which he was not entitled.
NEWTON was sentenced by United States District Judge Barry Ashe to 3 years probation, 1 year home confinement and restitution of $95,315.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General. The case is handled by Assistant United States Attorney Carter K.D. Guice Jr.
* * *
Billings man sentenced to 10 years in meth caseRead the Press Release
BILLINGS--Billings resident Gregory Adam Kilwein, 50, was sentenced on Thursday to 10 years in federal prison and five years of supervised release for conviction in a drug investigation in which agents found four pounds of methamphetamine in his apartment, U.S. Attorney Kurt G. Alme said.
Kilwein also forfeited the $30,350 seized in case. Kilwein pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided at the sentencing.
In March, a Billings Police officer saw Kilwein riding a bicycle on a downtown sidewalk in violation of a city ordinance. In addition, Kilwein was acting suspiciously by watching the officer and then trying to avoid him by going around the block. When the officer pulled behind Kilwein in an alley, Kilwein dropped his bicycle and took off running. While fleeing, he threw a bag he was carrying over a fence.
The officer caught Kilwein after a brief chase and recovered the bag. Lying near the bag in the snow was a package covered in tape that had fallen from the bag. When the officer picked up the bag, he could see a similar taped package and white envelope containing money.
Kilwein was on state probation, and his probation officer authorized a search of Kilwein, his bag and his residence. The bag contained $12,450 and each taped package weighed about 500 grams, or a little more than one pound, of meth. Kilwein was arrested and while being booked at the jail, detention staff found a bag with about four ounces of meth in his underwear.
In monitored jail calls, a drug task force officer listened to Kilwein instruct relatives to clean out his apartment, specifically telling them to get rid of stuff and that there was cash hidden in his apartment and other locations. At Kilwein’s apartment, officers seized an additional four pounds of meth and $3,900 located in a safe. Four pounds of meth is the equivalent of about 14,496 individual doses. Relatives consented to a search and voluntarily turned over $14,000. In addition, a search of Kilwein’s phone seized at his arrest showed messages to a Mexican phone number belonging to another person under investigation and who was living in Mexico.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI task force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Billings man admits drug conspiracy, firearms chargesRead the Press Release
BILLINGS—Billings resident Nathan Thomas Trujillo, 41, admitted on Dec. 11 in federal court to drug trafficking and firearms charges in a conspiracy that brought methamphetamine from Denver, Colo., to the community, U.S. Attorney Kurt G. Alme said.
Trujillo pleaded guilty to conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime.
U.S. Magistrate Judge Timothy J. Cavan presided and will recommend Trujillo’s plea be accepted by U.S. District Judge Dana L. Christensen, who is assigned to the case.
Sentencing is set for April 24, 2019. Trujillo is detained.
Trujillo faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release on the drug counts. He also faces a minimum mandatory five years to life in prison consecutive to any other sentence on the firearms count.
If the case had gone to trial, the government would have presented the following information as evidence:
In August, drug task force agents began investigating a Billings area meth dealer, later identified as Trujillo, but who was living under a stolen identity to avoid arrest on an outstanding warrant. Agents conducted multiple drug buys with a co-conspirator of Trujillo’s and bought a total of about 13 ounces of meth.
Agents also learned that Trujillo traveled to Denver to obtain pound quantities of meth for re-distribution in the Billings area and got a court-authorized GPS tracking device for a vehicle Trujillo used. Information from the tracker indicated that Trujillo traveled to Denver on Aug. 31. Trujillo returned to Montana on Sept.7 and the Montana Highway Patrol arrested him at a gas station in Hardin.
Agents executed search warrants on Trujillo’s vehicle and apartment. From the vehicle, agents seized about 429 grams, or about 15 ounces, of meth, a 9mm pistol, a digital scale and plastic baggies. The 429 grams of meth is the equivalent of about 3,432 individual doses. Also found were additional firearms, illegal drugs and drug paraphernalia. From Trujillo’s apartment, agents seized another firearm and more drug paraphernalia.
Assistant U.S. Attorney Colin Rubich is prosecuting the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI task force.
The case is being brought as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Bergen County, New Jersey, Insurance Broker Admits Health Care FraudRead the Press Release
TRENTON, N.J. – An insurance broker with an office in Fort Lee, New Jersey, today admitted defrauding Horizon Blue Cross Blue Shield, U.S. Attorney Craig Carpenito announced.
Lawrence Ackerman, 54, a resident of Old Tappan, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of health care fraud.
According to documents filed in this case and statements made in court:
Ackerman was the chief operating officer of Atlantic Business Associates (ABA) and Atlantic Medical Associates (AMA), two “shell” companies through which he marketed health insurance nationally to people who were not his employees and therefore ineligible for health coverage. During the month of January 2011, he delivered $481,500 in health care benefits to ineligible participants.
The count of health care fraud to which Ackerman pleaded guilty is punishable by a maximum penalty of 10 years in prison and a fine of $250,000. Ackerman was originally charged in a two-count indictment with conspiracy to defraud Horizon Blue Cross Blue Shield of $5.6 million and the welfare fund of Local 2326 of $1 million in fraudulent health care claims. Under terms of the plea agreement, Ackerman will be responsible for making full restitution to Horizon and to the union’s benefit plan for their losses. Sentencing is scheduled for March 20, 2019.
U.S. Attorney Carpenito credited special agents of the Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Michael Mikulka; agents of the Office of Employee Benefit Security Act (EBSA), under the direction of Regional Director Darren Cohen; and agents of the Office of Labor Management Standards (OLMS), under the supervision of Regional Director Andriana Vamvakas.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit and Assistant U.S. Attorney Sammi Malek of the Narcotics/OCDETF unit in Newark.
Bay Area CPA Sentenced to 8 Months in PrisonRead the Press Release
Marc Howard Berger was sentenced today to 8 months in prison for aiding and assisting in the filing of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, United States Attorney Alex G. Tse, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation (IRS-CI) Special Agent in Charge Tara Sullivan.
On July 18, after a three-week jury trial, Berger was found guilty of willfully assisting in the preparation of three false Forms 1040 for codefendant G. Steven Burrill for the 2011, 2012, and 2013 tax years. Evidence at trial showed that Berger, 68, of Walnut Creek, California, was a Certified Public Accountant and partner with a regional tax preparation firm, Burr Pilger Mayer. Berger’s client, Burrill, was the owner and CEO of Burrill & Company, Burrill Capital, and a number of related entities. Through those entities, Burrill managed venture capital funds, including Burrill Life Sciences Capital Fund III L.P. (the Fund), a $283 million investment fund focused on the life sciences industry. Between Dec. 2007 and Sept. 2013, Burrill transferred more than $18 million from the Fund to his management companies, a sum in excess of the management fees that were due and allowable under the agreements that governed the Fund. Berger intentionally prepared and filed false income tax returns for Burrill that failed to report more than $18 million in income, resulting in unpaid taxes of more than $4.7 million. With Berger’s assistance, Burrill did not pay individual income taxes for the years 2009 through 2013.
Berger was indicted by a federal grand jury on Sept. 14, 2017. Berger was charged with three counts of willfully aiding and assisting in the preparation of three false Forms 1040 for Burrill for 2011, 2012, and 2013.
The sentence was handed down by The Honorable Richard Seeborg, U.S. District Court Judge. Judge Seeborg also sentenced the defendant to one year of supervised release and a $20,000 fine. The defendant will begin serving the sentence on July 8, 2019.
Burrill pleaded guilty on Dec. 7, 2017, to one count of investment-adviser fraud, in violation of 15 U.S.C. §§ 80b-6 & 80b-17, 18 U.S.C. § 2, and 17 C.F.R. § 275.206(4)-8, and one count of filing a false income tax return, in violation of 26 U.S.C. § 7206(1). He was sentenced to 30 months in prison on December 4, 2018.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Tse thanked special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant U.S. Attorney Robert S. Leach and Trial Attorney Lori A. Hendrickson of the Tax Division, who prosecuted the case.
Bay Area CPA Sentenced to Eight Months in PrisonRead the Press Release
SAN FRANCISCO – Marc Howard Berger was sentenced today to eight months in prison for aiding and assisting in the filing of false tax returns, announced United States Attorney Alex G. Tse, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation (IRS-CI) Special Agent in Charge Tara Sullivan. The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge.
On July 18, 2018, Berger, 68, of Walnut Creek, Calif., was found guilty, after a three-week jury trial, of willfully assisting in the preparation of three false Form 1040s for codefendant G. Steven Burrill. The Form 1040s were filed for tax years 2011, 2012, and 2013. Evidence at trial showed that Berger was a Certified Public Accountant and partner with a regional tax preparation firm, Burr Pilger Mayer. Berger’s client, Burrill, was the owner and CEO of Burrill & Company, Burrill Capital, and a number of related entities. Through the entities, Burrill managed venture capital funds, including Burrill Life Sciences Capital Fund III, L.P. (the Fund), a $283 million investment fund focused on the life sciences industry. Between December 2007 and September 2013, Burrill transferred more than $18 million from the Fund to his management companies in excess of the management fees that were due and allowable under the agreements that governed the Fund. Berger intentionally prepared and filed false income tax returns for Burrill that failed to report more than $18 million in income, resulting in unpaid taxes of more than $4.7 million. With Berger’s assistance, Burrill paid no individual income taxes for the years 2009 through 2013.
Berger was indicted by a federal grand jury on September 14, 2017. Berger was charged with three counts of willfully aiding and assisting in the preparation of three false Form 1040s for Burrill for 2011, 2012, and 2013.
In addition to the prison term, Judge Seeborg sentenced the defendant to one year of supervised release and a $20,000 fine. The defendant will begin serving the sentence on July 8, 2019.
Burrill pleaded guilty on December 7, 2017, to one count of investment-adviser fraud, in violation of 15 U.S.C. §§ 80b-6 & 80b-17, 18 U.S.C. § 2, and 17 C.F.R. § 275.206(4)-8, and one count of filing a false tax return, in violation of 26 U.S.C. § 7206(1). He was sentenced to 30 months in prison on December 4, 2018.
Assistant U.S. Attorney Robert S. Leach and Trial Attorney Lori Hendrickson of the U.S. Department of Justice Tax Division are prosecuting the case with the assistance of Maryam Beros, Larry Garland, and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
Baltimore Man Sentenced to 10 Years in Federal Prison for Distribution, Transportation, and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Adam Robert Miller, age 29, of Baltimore, Maryland, today to 10 years in prison, followed by 25 years of supervised release, for possession, receipt, and distribution of child pornography. Miller also took sexually explicit images and videos of a minor female beginning when she was 15 years old. Judge Blake also ordered that, upon his release from prison, Miller will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the indictment and the facts presented to the Court as part of his guilty plea, in July 2017, Homeland Security Investigations-Baltimore received information from Canadian authorities regarding a user of the KIK secure-messaging application, “amiller89,” who was distributing visual depictions of minors engaged in sexually explicit conduct in KIK chatrooms. Canadian authorities learned about the account in the course of a larger investigation of child pornography trafficking by KIK users. Subscriber information obtained for the IP address used to access the account was identified as belonging to Miller’s father, at the home where they both resided.
On September 13, 2017, a search warrant was executed at Miller’s residence. Miller waived his rights and spoke with law enforcement, admitting that “amiller89” was his account. Miller admitted that between May 13, 2015 and September 13, 2017, he uploaded and stored images and videos depicting minors engaged in sexually explicit conduct in his Dropbox accounts. A search of Miller’s Dropbox accounts revealed that they contained over 300 videos of child pornography. Data stored on devices seized during the search of Miller’s residence included hundreds of videos and images of minors engaged in sexually explicit activity, including a prepubescent girl being subjected to sexual bondage.
In addition, Miller admitted taking sexually explicit images and videos of Jane Doe, whom the defendant met when Jane Doe was 14 years old. The images and videos produced by Miller were uncovered on Miller’s devices and were taken when Jane Doe was 15, 16, and 17 years old. On July 16, 2017, Miller used an encrypted chat application to communicate with another user. During those communications, Miller sent the other user three images of Jane Doe engaged in sexually explicit activity.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the federal case.
# # #
Bailey Boys Associate Member Sentenced to 20 Years in Federal Prison for MurderRead 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 Raymel Weeden, 25, of Buffalo, NY, who was convicted of discharge of a firearm causing death, was sentenced to serve 20 years in prison by Senior U.S. District Judge William M. Skretny. The sentence will be served consecutive to a 10 year state sentence the defendant is currently serving for Robbery in the First Degree.
Assistant U.S. Attorneys Michael P. Felicetta and Joseph M. Tripi, who handled the case, stated that on February 9, 2012, the defendant, a Bailey Boys Gang associate, along with Bailey Boys Gang member Rayshod Washington, attempted to rob Fred Rozier of drugs and money. During the course of the attempted robbery, when Fred Rozier resisted the robbery attempt, Weeden shot and killed Rozier.
The Bailey Boys Gang is a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street.
Rayshod Washington was previously convicted and sentenced to serve 144 months in prison.Today’s sentencing is the result of an ongoing investigation on the part of the U.S. Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Buffalo Police Department, under direction of Police Commissioner Byron Lockwood; the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Raymond P. Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division.
# # # #
Aryan Circle Gang Member Sentenced to Prison for Being an Accessory-After-The-Fact to Racketeering MurderRead the Press Release
ALEXANDRIA, La. – A gang member of the Aryan Circle (AC) was sentenced today for being an accessory-after-the-fact to racketeering murder, announced U.S. Attorney David C. Joseph of the Western District of Louisiana and Assistant Attorney General Bryan A. Benczkowski of the Justice Department’s Criminal Division.
United States District Judge Dee D. Drell sentenced Leland Edward Hamm, 44, of Tulsa, Oklahoma, to 130 months in prison and three years of supervised release for being an accessory-after-the-fact in the violent crimes in aid of the racketeering murder of Clifton Hallmark.
On August 22, 2018, Hamm pleaded guilty to the charge of accessory-after-the-fact to racketeering murder of Clifton Hallmark. According to the plea agreement, the Aryan Circle (AC) is a race-based, multi-state organization that operates inside and outside of state and federal prisons throughout Texas, Louisiana, and the United States. The AC was established in the mid-1980s within the Texas prison system (TDCJ). Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Texas, Louisiana, and Missouri. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT). The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.
The plea agreement further alleges that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes, associates, are required to follow the orders of higher-ranking members without question.
In pleading guilty to the accessory charge, Hamm admitted to being an accessory to the murder of Hallmark on or around July 1, 2016, when a fellow AC member shot Hallmark in the side of his head at point blank range at an AC "church" meeting in Turkey Creek, Louisiana. Hamm admitted to being a member of the AC criminal enterprise.
This case is being investigated by an Organized Crime Drug Enforcement Task Force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Louisiana State Police; Evangeline Parish, (LA) Sheriff’s Office; Evangeline Parish District Attorney’s Office; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Montgomery County (TX) Precinct 1 Constable’s Office; Indiana State Police; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office and the Tarrant County (TX) Sheriff’s Office.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Dominic Rossetti of the Western District of Louisiana.
Appeals Court Upholds Scientists’ Fraud ConvictionsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the convictions for two Belleair Beach scientists, Mahmoud Aldissi (a/k/a Matt) and his wife Anastassia Bogomolova (a/k/a Anastasia), for conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and falsification of records. The Court’s opinion describes how Aldissi and Bogomolova lied about their facilities, equipment, and employees, fabricated price quotes, and forged endorsements from respected scientists to obtain $10.5 million in small-business research funding from the National Aeronautics and Space Administration and other government agencies. When government officials began investigating, the defendants submitted falsified business records for their companies, Fractal Systems, Inc. and Smart Polymers Research Corp., to cover up the fraud.
The Eleventh Circuit explained that had Congress established the programs that Aldissi and Bogomolova defrauded in order to provide qualified small businesses with research-and-development support to turn research into actual commercial products and services. In a highly competitive process, researchers submit detailed proposals outlining their research, a panel of experts selects winners, and the winning proposals become contracts between the researchers and the government for the research.
On appeal, the defendants had admitted that their proposals were faked and that, “under the terms of the bid contracts, they were not eligible for any of the contracts or grants for which they applied.” They nonetheless claimed that their convictions should be overturned because they had performed research and published the results in scientific journals. However, after hearing oral argument, the Court of Appeals rejected all of their arguments, stating, “These are not job programs for unemployed scientists and do not fund research merely for the sake of research.” Because the defendants’ “lies, forgeries, and fabricated price quotes” related to key ingredients for commercialization, their frauds deprived the government of what it actually was paying for and of the money that should have been awarded to other researchers.
The Court also affirmed the defendants’ sentences, which were based in part on the $24.5 million that they sought from their fraudulent proposals. Aldissi is serving 15 years in prison, and Bogomolova is serving 13 years in prison. And both have been ordered to repay as restitution the $10.5 million that they obtained from the government.
“The Defense Criminal Investigative Service investigation into these fraud crimes uncovered and documented clear evidence of egregious violations of the law, leading to the conviction of these defendants,” said Special Agent in Charge John F. Khin, Southeast Field Office. “That these convictions were upheld on appeal is a testament to the compelling results of the thorough and detailed investigation pursued by DCIS and our partners.”
“We concur and appreciate today's affirmation of sentence from the 11th Circuit U.S. Court of Appeals,” said the Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Frank Robey. “Regardless of the extraordinary plots that people create to attempt to corrupt the system and satisfy their own greed, we will root them out and sooner or later unravel their criminal schemes. Along with the DOJ and our other law enforcement partners, we will continue to tirelessly work shoulder-to-shoulder to protect the integrity of the DOD contracting system,” Robey said.
“In affirming the district court, the Eleventh Circuit has recognized that defendants thwarted the important purpose behind the SBIR and STTR programs, to promote the progress of science by increasing opportunities for small businesses to commercialize cutting-edge scientific research,” said Allison Lerner, Inspector General for the National Science Foundation. “This decision is an important step in protecting the integrity of this program. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
The appeal was handled by Assistant United States Attorney Roberta J. Bodnar, and the underlying criminal case—including an 18-day trial—was prosecuted by Assistant United States Attorney Thomas N. Palermo. It was investigated by the Defense Criminal Investigative Service, the National Aeronautics and Space Administration’s Office of the Inspector General, the Major Procurement Fraud Unit of the United States Army Criminal Investigation Division, the National Science Foundation’s Office of the Inspector General, the Environmental Protection Agency’s Office of the Inspector General, the Department of Energy’s Office of the Inspector General, and the Department of Homeland Security’s Office of the Inspector General.
Anchorage Man Charged with Distribution and Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a federal grand jury returned an indictment against Michael John Collier, 32, of Anchorage, charging him with one count of distribution of child pornography, and one count of possession of child pornography. Collier is in custody and is currently awaiting to be arraigned before a U.S. Magistrate Judge on these charges.
The indictment alleges that in February 2018, Collier knowingly distributed, by means and facility of interstate and foreign commerce, visual depictions of minors engaging in sexually explicit conduct. It is further alleged that, on March 28, 2018, Collier knowingly possessed visual depictions of minors engaging in sexually explicit conduct, located on multiple computer or digital devices. According to the indictment, the visual depictions of such conduct were of minors under the age of 12.
If the public has any further information or concerns about the activities of Collier, please contact the Anchorage Police Department at (907) 786-2677.
If convicted, Collier faces a statutory minimum of five years in prison and guideline sentence of the statuary maximum of 40 years in prison, for the most serious charges alleged in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Anchorage Police Department (APD) and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. The Alaska Internet Crimes Against Children (ICAC) Task Force is made up of local, state, and federal agencies who develop effective responses to cyber enticement and child sexual exploitation cases. This support encompasses forensic and investigative components, training and technical assistance, victim services, prevention and community education. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander.
The investigation is 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 U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alleged Fraudster Indicted in Ticket Investment SchemeRead the Press Release
SAN FRANCISCO – Patrick Ayson was indicted on charges related to an alleged $3.3 million investment fraud scheme, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. In an indictment filed yesterday and unsealed this morning, a federal grand jury charged Ayson with inducing investors to hand over money based on false promises that the funds would be used to purchase tickets for special events that would then be resold for a profit.
According to the indictment, between June of 2015 and November of 2017, Ayson, 32, formerly of San Francisco, induced at least 15 potential investors from California, New York, and Washington State, to provide millions of dollars in funds on the promise that their investment would result in profits ranging from 10% to 35%. Ayson misrepresented that he would purchase tickets to sporting events, plays, and concerts at discounted prices and that he would then resell the tickets for a profit to investors. In reality, Ayson spent most of the funds on personal purchases, such as rent, and on extravagant expenditures such as gambling, travel, and shopping at Louis Vuitton. In total, Ayson is alleged to have defrauded investors of at least $3.3 million.
The indictment charges Ayson with six counts of wire fraud, in violation of 18 U.S.C. § 1343. He was arrested this morning in San Francisco and made his initial appearance before Sallie Kim, United States Magistrate Judge. Ayson’s next appearance is scheduled for December 20, 2018, before Magistrate Judge Kim for issues related to pretrial detention or release.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison on each count in the indictment. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Neal C. Hong is prosecuting this case with the assistance of Margoth Turcios. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Aliquippa Woman Played Role in Fentanyl Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA – A resident of Aliquippa, PA, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Ashley Miller, 33, pleaded guilty on Dec. 12 to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Miller conspired with others to distribute and possess with intent to distribute 40 grams or more of fentanyl.
Judge Hornak scheduled sentencing for April 4, 2019 at 9:30 a.m. The law provides for a total sentence of not less than five years, to a maximum of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
This prosecution is part of a long-term investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United States Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department. The Department of Homeland Security Investigators also assisted in the investigation leading to the Superseding Indictment in this case.
This investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Alameda County Resident Sentenced to 15 Months of Confinement for Scheme to Defraud Networking Equipment ManufacturerRead the Press Release
SAN JOSE - Ferdinand Pasion Arafiles, a/k/a Dennis Arafiles, was sentenced today to 10 months in prison, 5 months of home confinement, and ordered to pay $100,000 in restitution for his role in scheme to defraud a Bay Area manufacturer and seller of networking equipment, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
Arafiles, 50, of Alameda County, pleaded guilty on December 11, 2017, to wire fraud. Arafiles was an employee of a Bay Area public school district. According to his plea agreement, Arafiles admitted that beginning October of 2009 until February 2016, he devised a plan to take advantage of the relationship between the school district and a leading networking equipment and services corporation (the “Corporation”). Specifically, Arafiles maintained access to the Corporation’s warranty contract and service program for the school district and used that access to order, receive, and then sell, replacement computer parts to which he was not entitled.
In the plea agreement, Arafiles acknowledged he created multiple email accounts, including variations on the name of the school district that employed him, and used those email accounts to create user accounts with the Corporation. He then made service requests on the Corporation’s customer support website. Using those email accounts and fraudulent identities, Arafiles instructed the Corporation to send “replacement” parts to designated addresses, including Arafiles’s personal residence in Alameda County. Arafiles understood that the Corporation required the return of failed or defective parts, so he returned bogus parts that contained forged or altered serial number labels. Arafiles also posted for sale and sold on internet market places some of the parts he fraudulently obtained from the Corporation.
A federal grand jury indicted Arafiles on June 23, 2016. In sum, Arafiles was charged with five counts each of wire fraud, in violation of 18 U.S.C. § 1343; interstate transportation of stolen property, in violation of 18 U.S.C. § 2314; and mail fraud, in violation of 18 U.S.C. § 1341.
In addition to the prison term, Judge Davila sentenced the defendant to a three-year period of supervised release and $100,000 in restitution. The defendant will begin serving his prison term on March 13, 2019.
Assistant U.S. Attorney Jeff Schenk is prosecuting the case with the assistance of Laurie Worthen and Tong Zhang. The prosecution was the result of an investigation by the FBI.
Abbeville Man Sentenced to 63 Months in Prison for Marijuana Shipping SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an Abbeville man was sentenced last week to 63 months in prison for accepting marijuana packages from California.
Jabori Huntsberry, 36, of Abbeville, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of conspiracy to possess with intent to distribute marijuana, one count of unlawful use of a communication facility, one count of possession with intent to distribute marijuana, and one count of possession of a firearm by a convicted felon. He was also sentenced to two years of supervised release.
Evidence admitted at trial, which started August 27 and ended August 29, 2018, revealed that the defendant conspired to receive packages of marijuana from a California source using the U.S. postal service from October 2011 to February 2014. United States Postal Inspectors discovered that, at multiple times and using different addresses and names, Huntsberry shipped marijuana to himself. He also wired approximately $300,000 to the California contact for payment of the drug packages. Law enforcement agents conducted a controlled delivery of one of the packages on February 14, 2014, to a residence next to Huntsberry’s home in Abbeville. After an occupant took the package, agents searched both homes. A search of Huntsberry’s home produced a handwritten notebook detailing the drug activity, along with U.S. Postal Service mail labels for drug packages, money wire transfer receipts, and two firearms.
The ATF, U.S. Postal Inspection Service and Vermilion Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and John Luke Walker prosecuted the case.
A New York man found guilty of firearms conspiracy and drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amanze Antoine, of Mt. Vernon, New York, was found guilty this week of three counts involving illegal firearms sales and cocaine distribution, United States Attorney Bill Powell announced.
After a three-day trial, a federal jury found Antoine, age 37, guilty of one count of “Conspiracy to Violate Federal Firearms Laws” one count of “Conspiracy to Distribute Cocaine Base,” and one count of “Unlawful Possession of a Firearm.” Antoine recruited a group of individuals in Morgantown, West Virginia and elsewhere to create false documentation to purchase firearms, transported and sold the illegally obtained firearms from West Virginia to New York. He also distributed cocaine in Morgantown in May 2017. Antoine was previously convicted of two crimes in New York, prohibiting him from possessing a firearm.
“When firearms are combined with illegal drug distribution it is recipe for disaster. Thanks to the jury, our excellent prosecution team and law enforcement partners our communities are now safer with this verdict,” said Powell.
Antoine faces up to five years incarceration and a fine of up to $250,000 for the firearms conspiracy charge, up to 20 years incarceration and a fine of up to $1,000,000 for the cocaine charge, and up to 10 years incarceration and fine of up to $250,000 for the illegal possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
45-Count Indictment Charges Clarksville, Tennessee Physician with Massive Opioid Distribution and Healthcare Fraud SchemeRead the Press Release
NASHVILLE, Tenn. – December 14, 2018 – A 45-count federal indictment was unsealed yesterday, charging Dr. Samson Orusa, 56, of Clarksville, Tennessee with maintaining a drug-involved premises; 22 counts of unlawful distribution of a controlled substance outside the bounds of professional medical practice; 13 counts of healthcare fraud; and nine counts of money laundering, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Orusa was arrested by federal agents yesterday and appeared before a U.S. Magistrate Judge late in the afternoon.
“Physicians who prey upon an already addicted population; steal from public healthcare programs; and engage in such reckless disregard for patient safety, as alleged here, will face a vigorous prosecution by this office,” said U.S. Attorney Cochran. “Anyone who contributes to the opioid epidemic plaguing this nation should expect to be targeted by our law enforcement partners and held accountable.”
According to the indictment, as early as January 2014, Orusa opened and maintained his medical practice at 261 Stone Crossing Drive in Clarksville, Tennessee for the purpose of distributing Schedule II controlled substances, including oxycodone, not for legitimate medical purposes and beyond the bounds of medical practice. The indictment alleges a pattern of conduct by Orusa whereby patients were prescribed oxycodone and other Schedule II controlled substances without obtaining the patient’s prior medical history; performing a credible physical examination or performing a diagnostic workup.
In one such instance, the indictment alleges that in February 2015, Orusa diagnosed a patient with Chronic Pain Syndrome without performing a specific examination and prescribed oxymorphone (an opioid), Soma (carisoprodol, a muscle relaxer), and alprazolam (benzodiazepine, an anti-anxiety drug). This regimen is commonly referred to as “The Holy Trinity,” and is considered to be a potentially deadly drug cocktail. On February 24, 2015, this patient died as a result of ingesting a like combination of drugs. The indictment also alleges that on April 17, 2018, a patient suffered a heroin overdose in the waiting room of Orusa’s medical office after Orusa prescribed oxycodone and other Schedule II controlled substances, without conducting proper examinations or checking the patient’s medical history. Other patterns of conduct alleged in the indictment include Orusa prescribing oxycodone to patients identified as high risk and to patients with questionable and falsified drug screens. Between July 1, 2018, and August 21, 2018, the indictment alleges that Orusa wrote approximately 2,494 prescriptions for Schedule II controlled substances.
The indictment further alleges that on September 14, 2018, the State of Tennessee permanently revoked Orusa’s Pain Management Certificate and on that same day, Orusa wrote 164 individual prescriptions for approximately 12,754 Schedule II controlled substance pills. Beginning in 2014, several pharmacies in Montgomery County, Tennessee refused to honor prescriptions for Schedule II controlled substances written by Orusa.
The indictment also alleges that beginning in 2014, Orusa devised and participated in a scheme to defraud health insurance benefit providers, including Medicare, by submitting upcoded reimbursement claims to Medicare, indicating a higher level of service than actually performed; submitting false and fraudulent claims to Medicare for services that were medically unnecessary; causing claims to be submitted to Medicare for prescriptions that were issued in violation of law or otherwise outside the bounds of accepted medical practice; and diverting proceeds of the fraud.
The allegations include as part of the scheme, that Orusa would accept or see 50-60 patients or more in a single day; require insurance patients, including Medicare beneficiaries, to visit his office approximately four to six times in a single month in order to increase and inflate reimbursement claims, while cash paying patients were only required to visit Orusa’s office twice per month; and required insurance patients, including Medicare beneficiaries, to accept injections, in order to increase and inflate reimbursement claims. Orusa threatened to withhold pain management prescriptions from insurance patients who refused the injections. Cash paying patients, however, generally were not required to accept injections in order to receive pain management prescriptions.
Finally, the indictment alleges that Orusa conducted financial transactions designed to disguise the nature of the unlawful activity and that he transferred or caused to be transferred, proceeds of the unlawful activity to foreign bank accounts; used clinic proceeds to make a $12,451.00 down payment on a 2017 Mercedez-Benz; and wrote a check for the purchase of $100,000 in securities.
“The arrest of Dr. Orusa should serve as a warning to all doctors who fail to practice medicine in an ethical and responsible manner,” said D. Christopher Evans, Special Agent In Charge of DEA’s Louisville Field Division, which oversees DEA activity throughout Kentucky, Tennessee and West Virginia. “The men and women of DEA are committed to using every available resource to stop the flow of drugs into our communities, especially when the drug dealer is a physician,” Evans added.
“The opioid epidemic impacts families in every community,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Physicians who overprescribe opioids should recognize they are contributing to the cycle of abuse, addiction and overdose that too often ends in death.”
“Illegally prescribing narcotics for profit is a serious offense,” stated Matthew D. Line, Special Agent in Charge of the IRS-Criminal Investigation. “This investigation should send a message to operators of these illegal pill mills that this activity will be investigated and prosecuted. IRS Criminal Investigation is proud to work with our law enforcement partners to stop the flow of these illegal drugs into our communities.”
The indictment also contains a forfeiture allegation and seeks to forfeit any proceeds and property derived from the criminal activity and any and all property used to facilitate the unlawful activity, if convicted.
If convicted, Orusa faces up to 20 years in prison on each drug-related count and up to 10 years in prison on each healthcare fraud and money laundering count.
This case was investigated by the U.S. Drug Enforcement Administration; the U.S. Department of Health & Human Services Office of Inspector General; the IRS-Criminal Investigation; the Tennessee Bureau of Investigation; the Clarksville Police Department; and the 19th Judicial District Drug Task Force. Assistant U.S. Attorneys Stephanie N. Toussaint and Miller Bushong are prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
"Boss of Bosses" Sentenced in International Drug Trafficking OperationRead the Press Release
PROVIDENCE – Juan Valdez, 51, of Milton, Mass., identified in court as the “boss of bosses” of a large scale international drug trafficking operation that repeatedly imported multiple kilograms of heroin and cocaine from Mexico that was distributed to mid-level and street dealers in Rhode Island, Massachusetts, and Connecticut, was sentenced today to 20 years in federal prison, announced United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
Juan Valdez, and his brothers Claudio Valdez, 46, and Hector Valdez 45, of Woonsocket, R.I., organized and directed a drug trafficking organization that arranged for numerous multi-kilogram shipments of heroin and cocaine from Mexico to drug stash houses in Cranston and Woonsocket, R.I. The drugs were then supplied under the Valdez brothers’ direction to mid-level drug dealers and street dealers in the greater Providence and Boston areas and in Hartford, Conn.
According to information presented to the Court, Juan Valdez was the direct point of contact with the main drug supplier for the Valdez Drug Trafficking Organization, a Dominican drug supplier referred to as The Maestro. Valdez spent most days at the organization’s primary stash house in Cranston. He largely controlled the organization’s finances.
At sentencing today, U.S. District Court Judge John J. McConnell, Jr., sentenced Juan Valdez to 240 months in federal prison to be followed by 5 years supervised release.
Claudio Valdez was sentenced to 20 years in prison on November 28, 2018. Hector Valdez is scheduled to be sentenced on January 18, 2019.
The Valdez brothers, all Dominican nationals, reentered the country illegally after having been previously convicted of felony drug crimes and deported. Juan Valdez reentered the country illegally on at least four occasions. Immigration detainers have been lodged against all three.
In April 2017, based on information developed by the FBI Safe Streets Task Force during an investigation dubbed “Operation Triple Play,” a reference to the three Valdez brothers, the FBI, assisted by federal, state, and local law enforcement agents and officers in three states, executed 16 federal arrest warrants and 13 federal search warrants.
Court-authorized search warrants executed at the Cranston stash house resulted in the seizure of multiple kilograms of controlled substances, primarily fentanyl; several pounds of cutting agents; and more than $351,000 in cash. The drugs and most of the cash were located in sophisticated, electronically-actuated hides constructed under the flooring of the apartment. Law enforcement also seized more than $8,500 from Juan Valdez’s Milton, Mass., residence.
During the course of Operation Triple Play, which the FBI Safe Streets Task Force launched in September 2016, the investigation into the Valdez Drug Trafficking Operation resulted in the purchases or seizures of laboratory tested and confirmed controlled substances totaling approximately 142g of crack cocaine, 1,654g of cocaine, 3,836g of heroin (of which 2,183.3g contained fentanyl), 3,493g of fentanyl, and more than 137 lbs. (62 kilograms) of cutting agents.
The cases are being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan, with the assistance of Assistant U.S. Attorneys William J. Ferland, Ronald A. Gendron, and Richard W. Rose.
Operation Triple Play is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation included the Drug Enforcement Administration (Providence and Boston Resident Agencies), Immigration and Customs Enforcement, Rhode Island State Police, Providence Police Department, Woonsocket Police Department, Central Falls Police Department, Cranston Police Department, Warwick Police Department, and the Rhode Island Department of Corrections.
###
13 December 2018
York Man Charged with Armed Robbery and Firearms OffenseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ernesto Watkins, age 21, of York, Pennsylvania, was indicted yesterday by a federal grand jury for armed robbery and a firearms offense.
According to United States Attorney David J. Freed, the indictment alleges that Watkins robbed a Turkey Hill Minit Market in downtown York on July 1, 2018. The indictment also alleges that Watkins brandished an Imez 9mm Makarov handgun during and in relation to that robbery.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. The case is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli.
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.
Indictments 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 imprisonment for life, 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.
# # #
Whiting Man Convicted After 4-Day Jury TrialRead the Press Release
HAMMOND – Kenneth R. Morrison, age 68, of Whiting, Indiana was convicted of interstate transportation of stolen goods after a 4-day jury trial before U.S. District Court Judge Philip P. Simon, announced U.S. Attorney Kirsch.
According to records in the case, between December 2014 and January 2015, without authority the defendant dismantled the Monon Bridge in Hammond, Indiana, and transported pieces of the bridge to Burnham, Illinois where he sold the scrap for $18,000. He also sold parts of the bridge to a scrap dealer in East Chicago, Indiana. CFX Railroad gifted the Monon Bridge to the City of Hammond in 1987. The bridge, built in 1910, spanned the Grand Calumet River near Marble Street in Hammond.
Morrison’s sentencing date is scheduled for March 21, 2019.
This case was investigated by the U.S. Environmental Protection Agency-Criminal Investigation Division, U.S. Environmental Protection Agency-Office of Inspector General, and the U.S. Coast Guard Investigative Services with assistance from the Indiana Department of Natural Resources, Indiana Department of Environmental Management and other members of the Environmental Crimes Task Force and was prosecuted by the U.S. Department of Justice, Environmental Natural Resource Division, Environmental Crimes Section Trial Attorney Richard J. Powers and Assistant United States Attorney Toi Denise Houston of the Northern District of Indiana.
###
Wheeling Island woman sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Carla Webb Daniels, of Wheeling Island, West Virginia, has been sentenced to 12 months and one day incarceration to be followed by six years supervised release for distributing heroin near an Ohio County school, United States Attorney Bill Powell announced.
Daniels, age 57, pled guilty to one count of “Distribution of Heroin Within 1,000 Feet of a Protected Location” in April 2018. Daniels admitted to distributing heroin in close proximity to Wheeling Central Catholic High School in Wheeling on February 16, 2017.
Daniels was also ordered to forfeit a 2005 food trailer and $5,547.26 seized on March 8, 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force and the Marshall County Drug & Violent Crime Task Force, HIDTA-funded initiatives, investigated.
U.S. District Judge John Preston Bailey presided.
Westfield Man Charged with 17 Counts of Fraud and Money LaunderingRead the Press Release
BOSTON - A Westfield man was charged in federal court in Springfield today in connection with a scheme to obtain bank loans and money for projects in Saudi Arabia.
Hanibal Tayeh, 58, was charged in a superseding indictment with two counts of bank fraud, 10 counts of wire fraud, four counts of money laundering, and one count of making a false bankruptcy declaration. Tayeh was originally charged and arrested in July 2018 and released on personal recognizance.
According to the charging documents, Tayeh is alleged to have used fake documents, misrepresentations, and a number of corporate entities to obtain a $9.1 million loan package, and later a $400,000 extension of credit, from a bank. A number of the fake documents and misrepresentations pertained to a business venture Tayeh was pursuing in Saudi Arabia. It is further alleged that Tayeh financially defrauded three individuals by providing them with fake documents and by making misrepresentations about construction projects he was pursuing in Saudi Arabia. Tayeh is accused of laundering the proceeds of his fraud schemes through payments made to third parties for his personal obligations. Finally, Tayeh was charged with making a false statement during a bankruptcy proceeding when he allegedly denied knowledge of a fake letter of credit that he created.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a $1 million fine. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a $250,000 fine. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine. The charge of false bankruptcy declaration provides for a sentence of no greater than five years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Suburban Sex Trafficker Sentenced to 21 Years in Federal PrisonRead the Press Release
CHICAGO — An Oak Park man has been sentenced to 21 years in federal prison for sex trafficking several children in the Chicago area.
ALLEN YOUNG trafficked and facilitated the prostitution of four young girls in the Chicago area, and he attempted to traffic a fifth. Young took photographs of the victims and posted them in online advertisements offering commercial sex. He then drove the minors to meet with individuals who responded to the ads. After the encounters, Young took some of the money paid to his victims and required some of them to have sex with him.
A jury earlier this year convicted Young, 53, on five sex trafficking counts and one attempted sex trafficking count. U.S. District Judge Edmond E. Chang on Monday imposed the 21-year prison sentence and ordered Young to pay $37,750 in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The case was investigated by the FBI Chicago Child Exploitation Task Force, with special assistance from the Chicago Police Department. The government was represented by Assistant U.S. Attorneys Andrianna Kastanek and Christine O’Neill.
Evidence in the case revealed that Young trafficked the victims at various times in 2014, 2015 and 2016. Some of the girls were as young as 15 years old when Young began facilitating the prostitution. Several of the victims testified at trial about their ordeals.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
West Mifflin Cocaine Distributor Sentenced to 12 years in PrisonRead the Press Release
PITTSBURGH - A resident of West Mifflin, Pennsylvania, has been sentenced in federal court to 12 years’ imprisonment followed by 8 years supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Diop Fitzgerald, 41.
According to information presented to the court, from in and around September 2016, and continuing thereafter to November 30, 2017, Fitzgerald conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine, a Schedule II controlled substance.
Assistant United States Attorneys Rebecca L. Silinski and Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) for the investigation leading to the successful prosecution of Diop Fitzgerald. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Update: 43 Arrested in Multi-State International Drug Trafficking OrganizationRead the Press Release
An 18-month law enforcement operation resulted in 43 arrests and significant seizures over December 5-7, 2018, announced U.S. Attorney Annette L. Hayes. Hundreds of law enforcement officers were involved in making arrests and serving search warrants targeting a multi-state drug trafficking network led by drug cartel members in Mexico. The drug trafficking organization distributing heroin, fentanyl, cocaine, and methamphetamine was active in Washington State, New York, Arizona, Oregon, California, Tennessee, and Utah. One of the local high-level managers of the drug trafficking group, CARLOS EDUARDO LOPEZ HERNANDEZ, 22, of Kent, Washington is in federal custody.
“Drug rings that peddle dangerous drugs–especially fentanyl masquerading as oxycodone pills–are a real and present danger in our communities,” said U.S. Attorney Annette L. Hayes. “When these rings are operated by cartels in Mexico, we will bring federal resources to bear every day of the week. I commend the hard work of all our federal, state, local, and tribal law enforcement partners who banded together to take decisive action and protect our western Washington cities and towns.”
Before the recent law enforcement actions, as part of the investigation, agents and officers had seized 7 kilos of heroin, 1.5 kilos of products containing fentanyl, methamphetamine and $164,000 in cash. On December 5 through 7, 2018, law enforcement seized more than 40 pounds of heroin, 10,000 fake oxycodone pills containing fentanyl, 8 pounds of suspected fentanyl powder, 6.5 pounds of methamphetamine, 3 pounds of cocaine, 39 firearms, and more than $435,000 in cash.
In Western Washington the group distributed drugs in Pierce, Kitsap, King, Skagit, and Snohomish Counties. Over the course of the investigation law enforcement seized thousands of counterfeit oxycodone pills tainted with fentanyl, a powerful and potentially deadly opioid. Following one seizure from a vehicle, Washington State Patrol troopers were hospitalized for their accidental exposure during the investigation.
“The dangerous pills containing fentanyl flowing through this pipeline operated by this Western Washington distribution network has been shut down,” said DEA Special Agent in Charge Keith Weis. “Those profiting from pushing illicit opioids such as fentanyl and heroin into our most vulnerable communities will be met with a significant law enforcement response.”
The investigation began 18 months ago with drug seizures by the Bremerton Police Department. More recently, on November 28, 2018, law enforcement seized more than 13 pounds of heroin from the engine compartment of a semi-truck driven by a frequent smuggler for the ring. In addition to coded cell phone conversations, many of the members of the ring also communicated via Facebook messenger.
“An agency the size of Bremerton can impact crime on a larger scale when it is able to partner with agencies like the DEA,” said Bremerton Chief of Police James Burchett. “I am very proud of the hard work and dedication of all the officers and agents that made this operation a reality.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was conducted by the DEA Tacoma Resident Office and the Bremerton Police Department, with significant assistance from the Tahoma Narcotics Enforcement Team (TNET), Special Operations Division, Chantilly, Virginia, and Northwest High Intensity Drug Trafficking Area (HIDTA).
The multi-agency takedown operation was supported by DEA Seattle; DEA Los Angeles; DEA San Diego, DEA San Francisco, and DEA Phoenix; as well as Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms & Explosives; Federal Bureau of Investigation; U.S. Marshals Service; West Sound Narcotics Enforcement Team; Joint Narcotics Enforcement Team; Grays Harbor Drug Task Force; Snohomish County Regional Drug Task Force; Valley Narcotics Enforcement Team; Skagit County Inter-local Drug Enforcement Unit; Thurston County Narcotics Enforcement Team; Lewis County Joint Narcotics Enforcement Team; Pierce County Sheriff’s Department; King County Sheriff’s Department; Kitsap County Sheriff’s Office; Snohomish County Sheriff’s Office; Aberdeen Police Department; Auburn Police Department; Bothell Police Department; Bremerton Police Department; Burlington Police Department; Fife Police Department, Seattle Police Department; Tacoma Police Department; Lakewood Police Department; Bonney Lake Police Department; Kent Police Department; Everett Police Department; Mill Creek Police Department; Quinault Nation Police Department; Hoquiam Police Department; Washington State Department of Corrections; Washington State Patrol; Mount Vernon Police Department; Oregon State Police; and Washington and Oregon National Guard.
Tactical operations were conducted by DEA’s Special Response Teams (SRT) from Seattle and San Francisco. Additional support was provided by Bremerton Special Operations Group; Lakewood Special Operations; FBI SWAT; King County SWAT; Kitsap County SWAT; Mount Vernon SWAT; North Sound Metro SWAT, Pierce County Metro SWAT; Pierce County SWAT; Seattle PD SWAT; Snohomish County SWAT; Washington State Patrol SWAT; Skagit County HRT; Valley SWAT; and the U.S. Marshal’s Pacific Northwest Violent Offender Task Force.
The cases are being prosecuted by Assistant United States Attorneys Marci Ellsworth and Karyn Johnson.
University of New Hampshire Employee Pleads Guilty to Stealing Government FundsRead the Press Release
CONCORD, N.H. Jichun Zhang, 46, of Durham, pleaded guilty today to stealing money from federal research grants, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, Zhang was a former Research Associate Professor at the University of New Hampshire’s Institute for the Study of Earth, Oceans and Space (EOS). Zhang was authorized to use a credit card provided by UNH to pay for expenses covered by federal research grants that were awarded to UNH by the National Aeronautics and Space Administration (NASA).
On 31 separate occasions from January 2016 to December 2017, Zhang used the credit card to purchase items totaling more than $6,900 from Amazon.com, e-Bay, and Apple, Inc., for his personal benefit. For each such transaction, Zhang submitted a fictitious receipt and a fraudulent written justification for the expense to UNH. The bogus documents caused the University System of New Hampshire to make payments on the credit card and obtain reimbursement for the unauthorized expenses from the NASA grants.
Zhang will be sentenced on March 27, 2019.
“The conduct involved in this case is particularly serious because it involved a professional educator who stole money that should have been used to pursue the important scientific goals of the federal grants,” said U.S. Attorney Murray. “I want to thank the University of New Hampshire and the University System of New Hampshire. Their immediate response and sustained cooperation with law enforcement demonstrated a forceful determination to protect the integrity of the federal grant process.”
“I am grateful for the daily due diligence of the University of New Hampshire and University System employees who alerted the police to this criminal activity.” said UNH Police Chief Paul H Dean. “The complex joint investigation was a success due to the strong collaboration of federal and campus law enforcement and I believe it sends a clear message to anyone contemplating similar criminal activity in the research community.”
“Mr. Zhang has now accepted responsibility for misusing taxpayer money that was entrusted to him to pay for expenses covered by federal research grants. Not only did he mishandle those funds for his own personal gain, but he betrayed the trust of his colleagues at the University,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to work with our law enforcement partners to identify others like Mr. Zhang who fraudulently misuse government money for their own self-enrichment.”
“This investigation exposed an individual that used federal funds to advance his own personal gain,” said Curtis W. Vaughn, Special Agent in Charge, of the Office of Investigations of NASA’s Office of Inspector General. “I commend the outstanding efforts of our agents, the University, and other law enforcement agencies involved in protecting the integrity of federal research grants and contracts.”
The case was investigated by the UNH Police Department, the Federal Bureau of Investigation, and the National Aeronautics and Space Administration, Office of Inspector General, with assistance from the Police Departments in Durham, Nottingham, and Newmarket, New Hampshire. It is being prosecuted by Assistant United States Attorney Robert M. Kinsella.
###
University City Man Sentenced for Fatal Fentanyl OverdoseRead the Press Release
St. Louis, MO – Jonathan Jamar Dickerson, a/k/a “Los,” 29, of University City, Missouri, was sentenced to 240 months in prison for distributing fentanyl to another person, resulting in a fatal overdose.
According to court documents, on January 28, 2017, 21-year-old “D.M.” was discovered unresponsive in her bedroom in a family residence in Maryland Heights, MO. She was pronounced deceased. D.M. had been last seen by her sister the previous evening. Next to D.M.’s body on the nightstand was a line of white powder which was neatly prepared. There were empty gelatin capsules located in D.M.’s trash can. The Office of the St. Louis county Medical Examiner determined that D.M. died of fentanyl intoxication.
A search of D.M.’s phone revealed text messages between her and a person named “Los.” The text exchange occurred between 3:30 p.m. and 4:30 p.m. on January 27, 2017. In the text message, D.M. asked “Los” whether she could “get 2?,” to which “Los” responded, “Yea.” D.M. indicated “Okay omw.” At 4:27 pm, D.M. advised “Los” via text, “Here.” Five days after D.M. died, Dickerson continued to send text messages to others advertising fentanyl.
During a search of Dickerson’s apartment, police located numerous items consistent with the distribution of heroin and fentanyl. They also located dozens of gelatin capsules that were identical to the ones located in D.M.’s trash. Police later discovered video footage of the parking lot of the Overland apartment complex at which Dickerson had been living. The video clearly showed Dickerson and D.M. meeting in the parking lot on the afternoon of D.M.’s death.
Dickerson was arrested on February 3, 2017. Laboratory tests on the line of white powder revealed it to be a combination of heroin and fentanyl.
Dickerson pled guilty in August to one felony count of distribution of fentanyl resulting in death, and appeared today for sentencing before United States District Judge Ronnie L. White. In his comments to the Court, Dickerson claimed that he was the victim of an unfair prosecution. “Dickerson is not a victim and thanks to the Maryland Heights police department he will spend a mandatory minimum 20 year sentence in federal prison,” said U.S. Attorney Jeff Jensen.
This case was investigated by the Maryland Heights Police Department.
USAO NDTX Roundup -- 12/13/18Read the Press Release
SENTENCING – Israel Vasquez, 46
Israel Vasquez, a 46 year old citizen of Mexico, was sentenced to life in prison after pleading guilty to drug and money laundering charges in June. Vasquez’s methamphetamine distribution network stretched from Michoacan, Mexico, through the southern border, and into Texas and Louisiana, and collected hundreds of thousands of dollars in drug proceeds wired to Vaszquez’s alias, Adan Perez. According to law enforcement agents, in 2013, Vasquez was kidnapped by a cartel and tortured due to a drug debt; as soon as his family raised money to release him, he returned to dealing. He was apprehended weeks after he ditched a stash of meth and fled the scene of a planned undercover drug buy. The FBI, Dallas Police Department, and IRS - Criminal Investigation led the investigation.ARREST – Drug traffickers
Thirteen people tied to Mexican cartels were arrested on federal drug conspiracy charges after an FBI-led bust on Dec. 12. Investigators say the individuals — who they say are connected to Mexico's Los Zetas and New Generation Jalisco cartels — have conspired to distribute methamphetamine, cocaine and heroin since March 2014. The criminal complaints were unsealed Wednesday afternoon. The DEA and Texas Department of Public Safety investigated. Release here.PLEA -- Ramon Hernandez, 41
On Dec. 11, Ramon Hernandez pleaded guilty to conspiracy to commit wire fraud. Hernandez admits that at the direction of a coworker, he stole medical equipment from his employer, made fraudulent entries in their database concerning the shipment of the equipment, and manipulated the devices’ electronic serial plates to conceal the theft. He now faces 5 years in prison. The FBI and FDA Office of Inspector General investigated.SENTENCING – Eddie Contreraz, 49
On Dec. 10, Eddie Contreraz of Frisco, TX was sentenced to more than 14 years in federal prison and ordered to pay $12,949,309 in restitution for his role as the ring leader of a $29 million bank fraud scheme. He and six co-defendants admit they used falsified income and employment information to complete at least 2300 fraudulent loan packages at 10 banks. The FBI’s Fort Worth Office conducted the investigation.SENTENCING – Jesus Chaparro, 26
On Dec. 7, Jesus Florencio Chaparro-Sanchez, a 26-year-old citizen of Mexico, was sentenced to 14 ¼ years in federal prison after authorities caught him transporting fentanyl, a powerful narcotic 50 times more potent than heroin. After a traffic stop, he admitted to investigators that a man in Mexico had offered him a job transporting drugs. He claimed he thought he was transporting cocaine. DEA testing revealed that the substance was actually about four kilograms of Tramadol plus about five kilograms of fentanyl. The DEA and the Texas Department of Public Safety investigated. Release here.- - -
AAG Visits Dallas
On Dec. 12, the Northern District of Texas welcomed Acting Attorney General Matt Whitaker, along with Solicitor General Noel Francisco and Assistant Attorney General Brian Benczkowski of DOJ’s Criminal Division, to discuss our Project Safe Neighborhoods program, which diminished violent crime in Dallas’ PSN hotspot by 19.9 percent from Q1 to Q3. “Our goal is to reduce violent crime. Thanks in large part to people in this room, we are achieving that goal,” Whitaker told law enforcement gathered at the Dallas Police Department’s NE Division. “That is why the Department of Justice is proud to invest in you.” Whitaker remarks here. Photos here.
U.S. Customs and Border Protection Officer Indicted on Charges of Theft and False StatementsRead the Press Release
A federal grand jury sitting in the Southern District of Texas returned an indictment on Dec. 12 charging a U.S. Customs and Border Protection (CBP) officer with converting federal funds to his own use, with concealing material facts from CBP, and with making false representations to CBP, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced.
Daniel Lerchbacker, 35, of Conroe, Texas, was charged with three counts of theft for allegedly failing to pay three Canadian entities for expenses that the United States had already provided the funds to cover and for collecting federal funds to which he knew he was not entitled. Lerchbacker was also charged with two counts of false statements for allegedly submitting to CBP copies of checks as proof of payment, despite knowing that such payments had not, in fact, been made. Lerchbacker will be arraigned on the charges today at 2 p.m. CST before U.S. Magistrate Judge Christina A. Bryan in U.S. District Court in the Southern District of Texas in Houston.
According to the indictment, Lerchbacker, while stationed in Canada as a CBP officer between December 2015 and December 2017, allegedly received from the U.S. foreign monetary allowances for the lease of his family’s residence and private school education expenses for his children. During this time, Lerchbacker received the full amount of federal funds that he requested for these expenses, but Lerchbacker allegedly failed to pay a property management company and two private schools a total of approximately $54,460.99 CAD. Additionally, Lerchbacker allegedly requested, collected, and retained from the United States approximately $24,230.50 CAD in advance funds for educational expenses for his children while knowing that he was to leave Canada before the end of the school year.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Department of Homeland Security Office of Inspector General and is being prosecuted by Trial Attorney Rebecca Moses of the Criminal Division’s Public Integrity Section.
U.S. Attorney Reaches Settlement with Bronx Developer to Increase Accessibility for People with Disabilities at Rental Complexes in Bronx and Orange CountiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States has settled its federal Fair Housing Act (“FHA”) lawsuit against WEBSTER AV MANAGEMENT LLC (“WEBSTER”). Under the settlement, WEBSTER has agreed to make retrofits to the Riverdale Parc rental complex in the Bronx and the Bluestone Commons rental complex in Maybrook, New York, which together contain more than 120 apartments, in order to make those apartments more accessible to individuals with disabilities. WEBSTER also has agreed to establish procedures to ensure that its future residential development projects will comply with the accessibility requirements of the FHA. Additionally, the settlement requires WEBSTER to provide up to $105,000 to compensate aggrieved persons and to pay a civil penalty of $37,500. The resolution of this lawsuit was approved yesterday by U.S. District Judge Paul G. Gardephe. Previously, on January 26, 2017, the United States obtained a court-ordered preliminary injunction on consent in this lawsuit that requires WEBSTER to ensure accessibility at two other rental complexes currently under development in the Bronx.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The Fair Housing Act’s accessibility provisions protect people with disabilities wherever they live. Today’s settlement is part of the Office’s long-standing effort to fulfill the FHA’s promise of accessibility throughout the counties in the Southern District of New York.”
The FHA’s accessible design and construction provisions require new multifamily housing complexes constructed after 1991 to have basic features accessible to persons with disabilities. According to the allegations in the complaint and the factual admissions in the settlement stipulation, the Riverdale Parc and Bluestone Commons rental complexes, which WEBSTER designed and constructed, have a number of inaccessible features, including bedroom, bathroom, and balcony doors that are not wide enough to accommodate people in wheelchairs, excessively high thresholds within individual units, thermostats and light switches located too high above the floor, and common area bathrooms that lack grab bars.
Pursuant to the settlement, WEBSTER agreed to make retrofits to both the public and common use areas and the individual units to ensure that Riverdale Parc and Bluestone Commons are accessible. The settlement also requires WEBSTER to establish procedures to ensure FHA compliance at its future development projects, including to retain an FHA compliance consultant to assess the design documents and conduct site visits to identify non-compliant conditions. In addition, WEBSTER agreed to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements.
The settlement requires WEBSTER to provide up to $105,000 to compensate aggrieved persons. Aggrieved persons may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who:
- Were discouraged from living at Riverdale Parc or Bluestone Commons because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at Riverdale Parc or Bluestone Commons;
- Paid to have an apartment at Riverdale Parc or Bluestone Commons made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at Riverdale Parc or Bluestone Commons as a result of inaccessible design and construction.
Any individual who may be entitled to compensation can file a claim by using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or by sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
Finally, WEBSTER also agreed to pay a civil penalty of $37,500.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Natasha W. Teleanu, Li Yu, and Jacob Lillywhite are in charge of the case.
U.S. Attorney Announces Charges Against 19 Defendants for the Sex Trafficking of Minor Girls and Young Women in New York State’s Child Welfare SystemRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of five indictments and three superseding indictments charging a total of 19 with participating in the sex trafficking of minor girls and young women. As alleged, the defendants trafficked or recruited to engage in prostitution at least 15 minor girls in the child welfare system, including at least nine minors who resided at a particular non-incarceratory residential treatment facility located in Westchester County (“Facility-1”). Facility-1 provided housing for at-risk and troubled children and adolescents on behalf of departments of social welfare for certain counties in New York State.
Eight of the 19 charged defendants were arrested yesterday, two are in state custody on unrelated charges, and eight other defendants were previously charged. One remains at large. These defendants were identified as part of an ongoing criminal investigation into the sex trafficking of minor victims, some of whom were as young as 13 years old, in the social welfare system. As detailed below, the charges are set forth in a total of eight separate indictments.
In each of these eight indicted cases, victims of the charged conduct included one or more minors who resided at Facility-1 and were in the New York State’s social welfare system. The conduct charged in the eight cases occurred, as detailed below, between the years of 2010 and 2018.
U.S. Attorney Geoffrey S. Berman stated: “Children in the child welfare system are among the most vulnerable in our society. As alleged in today’s charges, the defendants and their conspirators callously recruited girls as young as 13 from a residential treatment facility for at-risk youth, then sexually trafficked and prostituted them for financial profit. Together with our partners in the FBI, we will work tirelessly to ensure that anyone who sexually traffics a minor is subject to the full force of the law.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Sex traffickers routinely prey on young people and those in our communities who are the most defenseless. As alleged, the defendants targeted vulnerable women and girls, including residents of a facility for at-risk children and adolescents, knowing that the victims would be more susceptible to their claims. The FBI Human Trafficking and Child Exploitation Task Force and our law enforcement partners will aggressively pursue and hold accountable anyone who exploits others for their own profit.”
The 11 newly charged defendants are CARLTON VANIER, RUBEN MORCIGLIO, SAEED NORRIS, LLOYD KIDD, LUIDI BENJAMIN, LAWRENCE WALSH, CIMMIE WRIGHT, ADRIENNE ROBERTS, CHRISTOPHER BULLOCK, DARIEL BRAHAM, and STEVEN LESANE. These defendants and the defendants already in federal custody were presented yesterday in the Southern District of New York.
In addition to the charges against the new defendants, Superseding Indictments were unsealed against HUBERT DUPIGNY, HENSLEY DUPIGNY, NAZEER VICKERS, SEAN MERCHANT, REUBEN SANDS, MARTIQUE MCGRIFF, JERMAINE MYRIE, and JABARI KENNEDY, who were first charged in the summer of 2018 for their participation in the trafficking of minor victims and young women.
* * *
If you believe you are a victim of a similar crime, or if you have information concerning the exploitation of children, contact the Federal Bureau of Investigation at (212) 384-1000 or https://tips.fbi.gov/.
A chart outlining the charges and maximum prison sentences for each of the defendants is below. The maximum potential sentences and the mandatory minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman praised the outstanding investigative work of the FBI, the NYPD, and, in particular, the New York Child Exploitation and Human Trafficking Task Force. Mr. Berman also thanked the New York City Department of Corrections and the Human Resources Administration for their assistance. The prosecutions of these cases are being handled by the Office’s General Crimes and Public Corruption Units. Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, and Alex Rossmiller are in charge of the prosecutions.
U.S. v. Merchant, et al., 18 Cr. 527 (KMW)
COUNT
CHARGE
DEFENDANTS/AGES
MAX SENTENCE
1
Conspiracy to commit sex trafficking between January 2016 and June 2018
(18 U.S.C. § 1594(c))
Sean Merchant (31)
Martique Mcgriff (30)
Jermaine Myrie (34)
Reuben Sands (59)
Steven Lesane (31)
Life in prison
2
Sex trafficking of a minor under the age of 14 (18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2)
Sean Merchant (31)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
3
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2) and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1) and 2)
Sean Merchant (31)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
4
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Sean Merchant (31)
Life in prison; mandatory minimum sentence of 15 years in prison
5
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Jermaine Myrie (34)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
6
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Martique Mcgriff (30)
Life in prison; mandatory minimum sentence of 15 years in prison
7
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Steven Lesane (31)
Life in prison; mandatory minimum sentence of 15 years in prison
U.S. v. Hubert Dupigny, et al., 18 Cr. 528 (JMF)
COUNT
CHARGE
DEFENDANTS/AGES
MAX. PENALTIES
1
Conspiracy to commit sex trafficking between August 2016 to May 2017 (18 U.S.C. § 1594(c))
Hubert Dupigny (34)
Hensley Dupigny (29)
Dariel Braham (45)
Christopher Bullock (36)
Adrienne Roberts (59)
Life in prison
2
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Hubert Dupigny (34)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
3
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Hubert Dupigny (34)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
4
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Hubert Dupigny (34)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
5
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Hensley Dupigny (34)
Life in prison; mandatory minimum of 10 years in prison
U.S. v. Luidji Benjamin et al., 18 Cr. 874
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to commit sex trafficking in the Fall of 2015 (18 U.S.C. § 1594(c))
Luidji Benjamin (22)
Lawrence Walsh (25
Life in prison
2
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Luidji Benjamin (22)
Life in prison; mandatory minimum sentence of 10 years in prison
U.S. v. Jabari Kennedy et al, 18 Cr. 529 (JFK)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to commit sex trafficking between January 2017 to May 2018 (18 U.S.C. § 1594(c))
Jabari Kennedy (26)
Cimmie Wright (24)
Life in prison
2
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Jabari Kennedy (26)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
3
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Jabari Kennedy (26)
Life in prison; mandatory minimum sentence of 15 years in prison
4
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Cimmie Wright (24)
Life; mandatory minimum sentence of ten years
U.S. v. Nazeer Vickers, 18 Cr. 530 (LGS)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to commit sex trafficking between June 2017 and August 2017 (18 U.S.C. § 1594(c))
Nazeer Vickers (36)
Life in prison
2
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Nazeer Vickers (36)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
3
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Nazeer Vickers (36)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
U.S. v. Saeed Malik Thomas Norris, 18 Cr. 871
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to commit sex trafficking between July 2016 and August 2016 (18 U.S.C. § 1594(c))
Saeed Malik Thomas Norris (24)
Life in prison
2
Sex trafficking of a minor (18 U.S.C. §§1591(a), (b)(2), and 2)
Saeed Malik Thomas Norris (24)
Life in prison; mandatory minimum sentence of 10 years in prison
U.S. v. Ruben Morciglio and Carlton Vanier, 18 Cr. 873
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Conspiracy to commit sex trafficking between 2011 and October 2018 (18 U.S.C. §1 594(c))
Ruben Morciglio (31)
Carlton Vanier (26)
Life in prison
2
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Ruben Morciglio (31)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
3.
Sex trafficking of a minor (18 U.S.C. §§1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Carlton Vanier (26)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
4.
Sex trafficking of a minor (18 U.S.C. §§1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Ruben Morciglio (31)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
5.
Sex trafficking of a minor (18 U.S.C. §§1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Carlton Vanier (26)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
U.S. v. Lloyd Kidd, 18 Cr. 872
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Sex trafficking by force, threats of force, fraud, and coercion (18 U.S.C. §§ 1591(a), (b)(1), and 2)
Lloyd Kidd (28)
Life in prison; mandatory minimum sentence of 10 years in prison (under 18 U.S.C. § 1591(b)(2)); and mandatory minimum sentence of 15 years in prison (under 18 U.S.C. § 1591(b)(1))
2
Sex trafficking of a minor (18 U.S.C. §§ 1591(a), (b)(2), and 2)
Lloyd Kidd (28)
Life in prison; mandatory minimum sentence of 10 years in prisons
Two Men Appear in Federal Court for Roles in Methamphetamine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Two men who took part in a conspiracy resulting in the distribution of large quantities of methamphetamine across several counties in West Virginia appeared in federal court yesterday, announced United States Attorney Mike Stuart. Marquis Edward Henderson, 32, of Bronx, New York entered guilty pleas to conspiracy to distribute 50 grams or more of methamphetamine and prohibited possession of firearms by convicted felon. Rigoberto Fernandez, Jr., 29, of Scottsdale, Arizona was sentenced to 60 months in federal prison after previously pleading guilty to conspiracy to distribute 50 grams or more of methamphetamine. United States Attorney Stuart commended the work of the Huntington FBI Drug Task Force and the United States Postal Inspection Service.
“This investigation shut down another dangerous, multi-state drug trafficking network that was bringing a significant amount of meth into our communities,” said United States Attorney Mike Stuart. “Our law enforcement partners are working tirelessly with my team of prosecutors to dismantle drug trafficking organizations peddling their poisons in West Virginia.”
From at least February of 2016 to June of 2017, Henderson and others obtained quantities of methamphetamine and heroin from California which were mailed to the Huntington and Cross Lanes areas. Henderson and others would then distribute the drugs to customers in Cabell, Putnam, and Kanawha counties. Henderson admitted that during the conspiracy, he and others utilized a residence and a storage unit in Cross Lanes to store, prepare and distribute drugs. Henderson also employed others to distribute drugs by providing large quantities of drugs on credit and receiving payment for the drugs after they were sold.
On March 10, 2017, Fernandez assisted Henderson by shipping methamphetamine from California to West Virginia after Henderson arranged to distribute the methamphetamine to a confidential informant in Huntington. The informant was instructed by Henderson to transfer payment for the drugs to Fernandez in California. The informant also provided Fernandez an address where the drugs were to be shipped. After receiving the payment, Fernandez mailed the drugs from the United States Post Office in Carson, California to the address provided by the informant. Agents seized the package on March 13, 2017, and it was found to contain over 440 grams of methamphetamine. A forensic chemist later analyzed the methamphetamine and found it to be 98% pure.
On June 1, 2017, agents executed search warrants at the residence and storage unit in Cross Lanes. During the search, agents seized multiple firearms, ammunition, and over 3 kilograms of methamphetamine that was found to be 98% pure after testing by a forensic chemist. Henderson admitted he was previously convicted of a felony offense and thus, was prohibited from possessing firearms. As part of his plea, Henderson also admitted that he was responsible for the distribution of up to 4.5 kilograms of methamphetamine during the conspiracy.
Henderson faces a mandatory minimum 10 years and up to life in federal prison when he is sentenced on March 18, 2019.
Assistant United States Attorney Joseph F. Adams is responsible for the prosecutions. The hearings were held before United States District Judge Robert C. Chambers.
Follow us on Twitter: SDWVNews
###
Transnational Drug Trafficker Sentenced to 25 Years for Conspiracy to Distribute Fentanyl, Heroin, Methamphetamine, and Cocaine and for Money LaunderingRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Jese Carillo Casillas, age 33, based out of Kennewick, Washington, was sentenced after having pleaded guilty on August 24, 2018 to Conspiracy to Distribute Fentanyl, Heroin, Methamphetamine, and Cocaine, as well as Conspiracy Launder Money. Senior United States District Judge Edward F. Shea sentenced Casillas to a 25-year term of imprisonment for his role in the drug conspiracy, to run concurrent to a 15-year term of imprisonment for Casillas’ role in the money laundering conspiracy, to be followed by a 5-year term of court supervision after he is released from federal prison. Upon completion of his sentence, Casillas will be deported because he is not a citizen of the United States.
According to information disclosed during court proceedings, this case arose from a joint investigation into the Ivan Calvillo Transnational Drug Trafficking Organization that has had a distribution cell rooted in the Eastern District of Washington since 2010. The investigation culminated in the arrest and indictment of 16 members of the organization for various drug trafficking and money laundering offenses. After Ivan Calvillo was murdered in Mexico in December 2015, Casillas took over operations for the organization, including the importation and distribution of Fentanyl, Heroin, Methamphetamine, and Cocaine. Casillas reported directly to the head of the transnational trafficking organization in Mexico. The organization was responsible for the monthly distribution of 50 to 100 kilograms of narcotics into the United States and Canada. From early 2015 until his arrest in August of 2016, this distribution network was organized, facilitated, and controlled by Casillas out of Kennewick, Washington.
This organization was known for its ability to import large quantities of these narcotics through designated half-way points in the Los Angeles and Riverside California areas into Vancouver, British Columbia, Canada, and to various locations throughout the Midwest and East Coast to include North and South Dakota, Minneapolis, Chicago, Kentucky, and New York for distribution.
In partnering with the Royal Canadian Mounted Police Federal Serious and Organized Crime Unit in Vancouver British Columbia and DEA Financial Crimes Task Force in Boston, Massachusetts, a large part of the investigation also involved the tracking of the organization’s drug cash proceeds. A DEA undercover officer, posing as a person who could launder the organization’s money, was in direct communication with Calvillo and later Casillas, who arranged for over two dozen cash money pick-ups of drug proceeds. The undercover agent would agree to pick up the cash drug proceeds and then took direction from Calvillo and Casillas as to where the laundered drug money should be wired. During this process, investigators were able to identify the scope of the organization as well as other members within this district. Calvillo and Casillas arranged for over $1.6 million dollars in cash drug proceeds to be picked up by the undercover operatives.
Joseph H. Harrington said, “This case highlights the joint commitment, dedication, and partnership between our state and federal partners as well as our international partners, in combatting this problem and the accompanying violence associated with trafficking such dangerous drugs into our community. I commend their outstanding work. This investigation made a substantial mark upon a large-scale organization operating throughout the world that had chosen our district as a point of operation. It is these types of investigations that bring into focus the dangers drug trafficking organization pose to our communities.”
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force in Tri-Cities Washington, the Drug Enforcement Administration in Boston, Seattle, Mexico City and Vancouver; the Royal Canadian Mounted Police Federal Serious and Organized Crime Unit in Vancouver British Columbia, Canada; Kennewick Police Department, Richland Police Department, Pasco Police Department, Benton County Sheriff’s Office, and Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter and Caitlin Baunsgard, Assistant United States Attorneys for the Eastern District of Washington.
Three Wilson Men Sentenced for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced TRAVIS KWYMAINE RUFFIN, 29, of Wilson, North Carolina to 54 months imprisonment, followed by 3 years of supervised release; MARCUS ANTWAN WILEY, also known as “MARK,” 29, of Elm City, North Carolina to 57 months imprisonment, followed by 3 years of supervised release; and Michael speight, 26, of Elm City, North Carolina to 60 months imprisonment, followed by 3 years of supervised release.
The prosecution of RUFFIN, WILEY, and SPEIGHT was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), announced by the United States Attorney’s Office earlier this summer, which resulted in the arrest of several defendants for outstanding federal and state charges in a coordinated warrant enforcement operation. The investigation focused on heroin and cocaine trafficking in Nash, Edgcombe and Wilson counties.
RUFFIN, WILEY, and SPEIGHT were named in an eleven-count Indictment filed on June 13, 2018 charging them with drug conspiracy running from at least August 1, 2017 until mid-June of 2018. Specifically, RUFFIN was charged with conspiracy to distribute and possess with the intent to distribute a quantity of cocaine base (crack) and a quantity of heroin. On August 23, 2018, RUFFIN pled guilty to the conspiracy charge as well as distribution of a quantity of heroin. WILEY was charged with conspiracy to distribute and possess with the intent to distribute a quantity of heroin. On August 23, 2018, WILEY pled guilty to the conspiracy charge as well as distribution of a quantity of heroin. SPEIGHT was charged with conspiracy to distribute and possess with the intent to distribute a quantity of cocaine base (crack). On August 23, 2018, SPEIGHT pled guilty to the conspiracy charge.
According to the investigation, RUFFIN, WILEY, and SPEIGHT were a part of a drug trafficking organization that distributed cocaine, cocaine base (crack), heroin, and marijuana throughout the Nash, Edgecombe and Wilson counties. As part of the investigation, law enforcement recorded telephone calls where RUFFIN, WILEY, and SPEIGHT each discussed the drug conspiracy, their roles in the crime and made arrangements for further transactions. WILEY and RUFFIN sold 10 bricks of heroin each, which is approximately 1000 individual bags. At the time of the instant offense, WILEY was on supervised release resulting from a 2009 federal conviction of conspiracy to commit armed bank robbery, armed bank robbery, and the use and carrying of a firearm during and in relation to a crime of violence. After WILEY admitted to the criminal activity, his term of supervised release was revoked and he was sentenced to an additional 37 months’ imprisonment to be served at the conclusion of his sentence for the drug conspiracy.
This case is part of the United States Attorney’s Office’s 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.
Investigation of this enforcement operation was conducted by the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), the United States Marshal Service (USMS), United States Probation Office, Nash County Sheriff’s Office, Wilson Police Department, Rocky Mount Police Department, Edgecombe County Sheriff’s Office, Tarboro Police Department, Spring Hope Police Department, Nashville Police Department, North Carolina State Bureau of Investigation, and the North Carolina Department of Public Safety. Assistant United States Attorney Dena King represented the government.
Three New Jersey Police Agencies Receive Grants from U.S. Justice Department for Body-Worn Camera ProgramsRead the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito announced that three New Jersey police agencies were among 75 agencies nationwide to receive federal grant for body-worn camera programs, part of more than $56 million in grants awarded by the Department of Justice’s Office of Justice Programs (OJP) to enhance state and local law enforcement safety and wellness.
The Pemberton Township Police Department, the N.J. State Park Police and the N.J. Department of Law and Public Safety were awarded grants under OJP’s Bureau of Justice Assistance Body-Worn Camera Program. Divided into four categories, these awards provide law enforcement agencies with resources to pilot, establish or enhance comprehensive body-worn camera programs. Funding will enable grantees to improve their capacity to gather evidence and protect the safety of law enforcement officers and citizens.
“Body-worn cameras are just one of the technologies available for our state and local law enforcement partners to better protect members of the public and the officers who are out there doing a dangerous job day in and day out,” U.S. Attorney Carpenito said. “Combined with the most up-to-date training, bulletproof vests, and continuing health and safety research, these grants will help our police in their most important job, which is keeping the public safe.”
Pemberton was awarded a grant of $75,000, the N.J. State Park Police was awarded $132,000, and the N.J. Department of Law and Public Safety was awarded $940,278. The grants were announced recently by Acting Attorney General Matthew Whitaker. OJP’s Bureau of Justice Assistance and National Institute of Justice awarded the grants to law enforcement departments, local jurisdictions, and training, technical assistance and research organizations throughout the United States. The funds will be used to provide services designed to protect officers and improve overall public safety.
The Office of Justice Programs, led by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the BJA; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov
Three Men Indicted in Conspiracy to Kill WhistleblowerRead the Press Release
SAVANNAH, GA – Three men, all illegal alien residents of the United States, have been indicted for plotting the murder of a whistleblower who exposed a scheme to fraudulently employ other illegals.
Brothers Pablo Rangel-Rubio, 49, and Juan Rangel-Rubio, 42, both residents of Rincon, Ga., and Higinio Perez-Bravo, 49, of Savannah, were charged in a federal indictment unsealed today in U.S. District Court in Savannah, announced Southern District of Georgia U.S. Attorney Bobby L. Christine.
Pablo Rangel-Rubio and Juan Rangel-Rubio are charged with Conspiracy to Retaliate Against a Witness; Conspiracy to Kill a Witness; Conspiracy to Conceal, Harbor and Shield Illegal Aliens; and Money Laundering Conspiracy. Pablo Rangel-Rubio and Perez-Bravo are charged with Conspiracy to Commit Murder for Hire. Pablo Rangel-Rubio also is charged with three counts of Money Laundering Transactions Over $10,000.
The investigation began with the Aug. 19, 2017 death of Eliud Montoya, 41, who was found shot to death near his home in Garden City, Ga.. Two days before his death, Montoya, a naturalized United States citizen employed by a Savannah-area tree service, had filed a formal complaint with the federal Equal Employment Opportunity Commission alleging that Pablo Rangel-Rubio ran a scheme to employ illegal aliens at the tree service, profiting from the company while also skimming pay from the illegal workers. Four months earlier, Montoya also had reported the scheme to company officials.
According to the indictment, authorities allege Pablo Rangel-Rubio paid Perez-Bravo to assist Juan Rangel-Rubio in killing Montoya in retaliation for reporting the conspiracy that is believed to have netted the brothers more than $3.5 million during the approximate 10-year period of the scheme.
“Eliud Montoya was a naturalized citizen of the United States who worked hard and raised a family,” said U.S. Attorney Bobby L. Christine. “He went to the proper authorities to report a federal crime and for that he was murdered. Our office is committed to ensuring justice for Eliud Montoya, a man killed for doing the right thing, by those intent on protecting their illegal profits.”
The investigation was led by Homeland Security Investigations (HSI) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the United States Marshals Service, the Georgia Bureau of Investigation (GBI), the Garden City Police Department, the Effingham County Sheriff’s Office, and the Chatham County Sheriff’s Office.
“As Homeland Security Investigations has stated repeatedly – HSI equally focuses its worksite enforcement efforts on those who illegally work in the U.S., as well as the employers who knowingly hire them,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “This case is an extreme, but clear, example of how far certain criminals seeking to illegally exploit the U.S. labor market will go to protect their ill-gotten gains, and illustrates why worksite enforcement will continue to be a major priority for HSI.”
“The FBI is proud to have assisted our fellow federal, state and local law enforcement agencies in making these important arrests,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Citizens who uphold the law and report criminal activity should never have to be afraid of retaliation from those intent on breaking the law.
A criminal indictment contains only charges; defendants are presumed innocent unless and until proven guilty.
Three Defendants in the Federal Trial Held in the Matter of U.S. v Barronette, et al. Facing Federal Indictment for Assaulting Employees of the U.S. Marshals ServiceRead the Press Release
Baltimore, Maryland – Late on December 12, 2018, a federal grand jury returned indictments charging John Lewis Harrison, a/k/a Binky, age 28; Taurus Tillman, age 29, a/k/a Tosh; and Brandon Wilson, a/k/a Ali, age 24, all of Baltimore, Maryland, on the federal charge of assaulting employees of the U.S. Marshals Service (USMS) while they were detained and being transported to and from the courtroom during their trial.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and United States Marshal for the District of Maryland Johnny Hughes.
“The brave men and women of the U.S. Marshals Service are critical to our justice system and we will not tolerate assaults on them,” said United States Attorney Robert K. Hur.
According to their indictments, from September 17, 2018 through October 31, 2018, a criminal trial was held in U.S. District Court in Baltimore, in the matter of U.S. v. Barronette, et al., before U.S. District Judge Catherine C. Blake. Harrison, Tillman, and Wilson were all defendants in the case and were detained before and during the trial. During the trial, members of the USMS were responsible for transporting the defendants, including Harrison, Tillman, and Wilson, to and from the courtroom.
According to their indictment, on September 21, 2018, Harrison and Tillman assaulted two Deputy U.S. Marshals and a U.S. District Court Security Officer as they were being escorted from the courtroom during a break in the trial.
According to his indictment, on October 31, 2018, Wilson assaulted two officers with the Maryland Department of Correction in the Chesapeake Detention Facility as they attempted to search Wilson prior to his being transported to U.S. District Court for the continuation of his trial.
If convicted of these charges, Harrison, Tillman, and Wilson each face a maximum sentence of eight years in prison. The defendants remain detained pending an initial appearance in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the U.S. Marshals Service for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christopher J. Romano, who is prosecuting the case.
# # #
Thirty-Six Defendants Guilty for Their Roles in International Thai Sex Trafficking OrganizationRead the Press Release
Five defendants were convicted yesterday by a federal jury for their roles in operating a massive international sex trafficking organization that was responsible for coercing hundreds of Thai women to engage in commercial sex acts across the United States.
Michael Morris, 65, of Seal Beach, California; Pawinee Unpradit, 46, of Dallas, Texas; Saowapha Thinram, 44, of Hutto, Texas; Thoucharin Ruttanamongkongul, 35, of Chicago Illinois; and Waralee Wanless, 39, of The Colony, Texas, were convicted following a six-week trial before Senior Judge Donovan Frank in U.S. District Court in St. Paul, Minnesota. Thirty-one defendants previously pleaded guilty for their roles in the sex trafficking organization.
The convictions were announced yesterday by U.S. Attorney Erica H. MacDonald for the District of Minnesota, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, Special Agent in Charge Tracy J. Cormier of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) St. Paul, Supervisory Special Agent Todd Strom of IRS Criminal Investigation (IRS-CI) and Directing Attorney Panida Rzonca for the Thai Community Development Center.
“More than two years ago, my office filed the first federal indictment against a criminal organization that relied on the sexual exploitation of women for their own financial gain,” said U.S. Attorney MacDonald. “Since then, our team of prosecutors and investigators systematically dismantled the organization, while seeking justice for every victim of this organization. The process has been long, but today’s guilty verdict represents both a successful and just outcome. While our work combatting human trafficking continues, this case stands as a powerful example of the Department of Justice's commitment to achieving justice for victims. I applaud our law enforcement partners for the remarkable dedication and collaboration they have demonstrated throughout this process.”
“The defendants convicted yesterday participated in a massive yet brutally efficient criminal enterprise that trafficked hundreds of vulnerable Thai women for sexual exploitation and used sophisticated money laundering techniques to conceal and sustain itself,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Criminal Division, through our Money Laundering and Asset Recovery Section, is committed to working with our law enforcement partners to dismantle the financial infrastructure supporting criminal organizations such as these.”
“Sex trafficking is a horrific crime that seeks to erode the human dignity of victims," said Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division. “I want to thank U.S. Attorney Erica H. MacDonald, the District of Minnesota’s Anti-Trafficking Coordination Team, HSI St. Paul, IRS Criminal Investigations, the State Department’s Diplomatic Security Service, and other law enforcement and local partners for their hard work on this case which dismantled an extensive transnational trafficking enterprise. The Department of Justice will bring the full force of the law against perpetrators of sex trafficking crimes.”
“The convictions of these defendants close this chapter for law enforcement, however mark only the beginning of the recovery process for the victims,” said Special Agent in Charge Comier. “I am extremely proud of the work done by HSI’s special agents, and of the teamwork demonstrated by our law enforcement partners in dismantling this criminal organization. Our communities are safer as a result of this investigation.”
“The cruel and illegal actions of the defendants tear at the fabric of our community, causing trauma, fear and anguish both seen and unseen,” said St. Paul Police Chief Axtell. “Thankfully, due to the exceptional work of many law enforcement agencies and their representatives, the guilty will be held accountable for their actions and survivors will get help, support and justice.”
“The guilty verdict of these five individuals received yesterday is the culmination of a large sophisticated international sex trafficking criminal enterprise," said IRS-CI Special Agent in Charge Strom. "This criminal organization exploited women and laundered hundreds of thousands of illicit profits. Pooling the skills of each agency in this complex investigation made a tremendous team including IRS Criminal Investigation who provided the financial expertise to follow the money trail of these criminals. Today’s guilty verdict demonstrates the collective efforts of law enforcement and U.S. Attorney’s Office who brought down an international sex trafficking organization.”
As proven at trial, this criminal organization compelled hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, Seattle and Austin. The trafficking victims were often from impoverished backgrounds and spoke little or no English. They were coerced to participate in the criminal scheme through misleading promises of a better life in the United States and the ability to provide money to their families in Thailand.
Once in the United States, the victims were sent to houses of prostitution where they were forced to have sex with strangers – every day – for up to 12 hours a day, at times having sex with 10 men a day. The victims were isolated from the outside world. They were not allowed to leave the houses of prostitution unless accompanied by a member of the criminal organization. The victims moved around the United States between houses of prostitution in multiple cities. They and their families in Thailand were threatened.
The organization also engaged in widespread visa fraud to facilitate the international transportation of the victims. Traffickers assisted the victims in obtaining fraudulent visas and travel documents by funding false bank accounts, creating fictitious backgrounds and occupations, and instructing the victims to enter into fraudulent marriages to increase the likelihood that their visa applications would be approved. Traffickers also coached the victims as to what to say during their visa interviews. While working to obtain visa documents, traffickers gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who sought to flee the organization in the United States.
The organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. The organization used “funnel accounts” to launder and route cash from cities across the United States to the money launderers in Los Angeles. To date, investigators have been able to recover $1.5 million in cash and $15 million in money judgments secured through plea agreements. During the extensive investigation, law enforcement traced tens of millions of dollars to the organization. Indeed, at trial, there was testimony that more than $40 million was sent to Thailand by one money launderer alone.
The District of Minnesota is one of six districts designated through a nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), an ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. Today’s convictions validate the continued ACTeam mission—to take on and take down the most entrenched and sophisticated human trafficking organizations that seek to profit from human exploitation.
U.S. Attorney MacDonald, Assistant Attorney General Benczkowski and Assistant Attorney General Dreiband commended the multiple agencies that assisted in this investigation over the past three years including: HSI; IRS-CI; the Department of Justice’s Criminal Division’s Money Laundering and Asset Recovery Section; the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit; the St. Paul Police Department; the Bureau of Criminal Apprehension’s Minnesota Human Trafficking Investigators Task Force; the Anoka County Sheriff’s Office; the Cook County (Illinois) Sheriff’s Office; the State Department Diplomatic Security Service; and the International Organized Crime Intelligence and Operations Center (IOC-2). U.S. Attorney MacDonald also thanks the Thai Community Development Center for the support and advocacy they have done on behalf of the victims of this sex trafficking organization.
U.S. Attorney MacDonald, Assistant Attorney General Benczkowski and Assistant Attorney General Dreiband further thanked the trial team led by Assistant U.S. Attorneys Melinda A. Williams and Laura Provinzino, with assistance from HSI Special Agent Tonya Price, IRS-CI Special Agent John Tschida, Senior Investigator Steven Baker of the Justice Department’s Criminal Division’s Money Laundering and Asset Recovery Section, and the Justice Department’s Civil Rights Division’s Human Trafficking Prosecution Unit for their dedication to the pursuit of justice
This case is filed as United States v. Michael Morris, et al., 17-cr-107 (DWF/TNL) and United States v. Sumalee Intarathong, et al., 16-cr-257 (DWF/TNL).
Defendants:
MICHAEL J. MORRIS, 65
Seal Beach, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
PAWINEE UNPRADIT, 46
Dallas, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
SAOWAPHA THINRAM, 44
Hutto, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
THOUCHARIN RUTTANAMONGKONGUL, 35
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
WARALEE WANLESS, 39
The Colony, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
CHATARAK TAUFFLIEB, 52
San Jose, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
PEERACHET THIPBOONNGAM, 58
Los Angeles, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
GREGORY ALLEN KIMMY, 38
Hutto, Texas
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
WILAIWAN PHIMKHALEE, 40
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
KANYARAT CHAIWIRAT, 52
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
PORNTHEP SUKPRASERT, 42
Huntington Beach, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
MULCHULEE CHALERMSAKULRAT, 41
Huntington Beach, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
BHUNNA WIN, 51
San Diego, Calif.
Convicted:
- Unlicensed money transmitting business, 1 count
NATCHANOK YUVASUTA, 50
Los Angeles, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
NATTAYA LEELARUNGRAYAB, 47
Los Angeles, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
PEERASAK GUNTETONG, 61
North Hollywood, CA
Convicted:
- Conspiracy to engage in money laundering, 1 count
VEERAPON GHETTALAE, 57
Lake Elsinore, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
MATTHEW MINTZ, 27
Chicago, Ill.
Convicted:
- Conspiracy to commit alien harboring, 1 count
- Conspiracy to engage in money laundering, 1 count
MOHIT TANDON, 38
Burr Ridge, Ill.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
RICHARD ALEXANDER, 53
DeKalb, Ill.
Convicted:
- Conspiracy to commit marriage fraud, 1 count
- Conspiracy to engage in money laundering, 1 count
TANAKRON PATRATH, 60
Houston, Texas
Convicted:
- Conspiracy to engage in money laundering, 1 count
PANWAD KHOTPRATOOM, 47
Houston, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
CHABAPRAI BOONLUEA, 44
Winder, Ga.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
NOPPAWAN LERSLURCHACHAI, 37
Lomita, Calif.
Convicted:
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to engage in money laundering, 1 count
WATCHARIN LUAMSEEJUN, 48
Unknown
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
PANTILA RODPHOKHA, 33
Mount Prospect, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
SOYSUDA SIANGDANG, 34
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
ANDREW FLANIGAN, 53
Winder, Ga.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
TODD VASSEY, 56
Lahanina, Hawaii
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
THI VU, 50
Atlanta, Ga.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
JOHN ZBRACKI, 61
Lakeville, Minn.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
JOHN NG, 41
Cottage Grove, Minn.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
PATCHARAPORN SAENGKHAM, 43
Los Angeles, Calif.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
CHANANCHIDA SENASU, 42
Dallas, Tex.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
YADAPORN PANNGOEN, 32
Chicago, Ill.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
CHONTHICHA SOICHAISONG, 38
Austin, Tex.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
Thirty-Six Defendants Guilty for Their Roles in International Thai Sex Trafficking OrganizationRead the Press Release
WASHINGTON – Five defendants were convicted yesterday by a federal jury for their roles in operating a massive international sex trafficking organization that was responsible for coercing hundreds of Thai women to engage in commercial sex acts across the United States.
Michael Morris, 65, of Seal Beach, California; Pawinee Unpradit, 46, of Dallas, Texas; Saowapha Thinram, 44, of Hutto, Texas; Thoucharin Ruttanamongkongul, 35, of Chicago Illinois; and Waralee Wanless, 39, of The Colony, Texas, were convicted following a six-week trial before Senior Judge Donovan Frank in U.S. District Court in St. Paul, Minnesota. Thirty-one defendants previously pleaded guilty for their roles in the sex trafficking organization.
The convictions were announced yesterday by U.S. Attorney Erica H. MacDonald for the District of Minnesota, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, Special Agent in Charge Tracy J. Cormier of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) St. Paul, Supervisory Special Agent Todd Strom of IRS Criminal Investigation (IRS-CI) and Directing Attorney Panida Rzonca for the Thai Community Development Center.
“More than two years ago, my office filed the first federal indictment against a criminal organization that relied on the sexual exploitation of women for their own financial gain,” said U.S. Attorney MacDonald. “Since then, our team of prosecutors and investigators systematically dismantled the organization, while seeking justice for every victim of this organization. The process has been long, but today’s guilty verdict represents both a successful and just outcome. While our work combatting human trafficking continues, this case stands as a powerful example of the Department of Justice's commitment to achieving justice for victims. I applaud our law enforcement partners for the remarkable dedication and collaboration they have demonstrated throughout this process.”
“The defendants convicted yesterday participated in a massive yet brutally efficient criminal enterprise that trafficked hundreds of vulnerable Thai women for sexual exploitation and used sophisticated money laundering techniques to conceal and sustain itself,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Criminal Division, through our Money Laundering and Asset Recovery Section, is committed to working with our law enforcement partners to dismantle the financial infrastructure supporting criminal organizations such as these.”
“Sex trafficking is a horrific crime that seeks to erode the human dignity of victims," said Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division. “I want to thank U.S. Attorney Erica H. MacDonald, the District of Minnesota’s Anti-Trafficking Coordination Team, HSI St. Paul, IRS Criminal Investigations, the State Department’s Diplomatic Security Service, and other law enforcement and local partners for their hard work on this case which dismantled an extensive transnational trafficking enterprise. The Department of Justice will bring the full force of the law against perpetrators of sex trafficking crimes.”
“The convictions of these defendants close this chapter for law enforcement, however mark only the beginning of the recovery process for the victims,” said Special Agent in Charge Comier. “I am extremely proud of the work done by HSI’s special agents, and of the teamwork demonstrated by our law enforcement partners in dismantling this criminal organization. Our communities are safer as a result of this investigation.”
“The cruel and illegal actions of the defendants tear at the fabric of our community, causing trauma, fear and anguish both seen and unseen,” said St. Paul Police Chief Axtell. “Thankfully, due to the exceptional work of many law enforcement agencies and their representatives, the guilty will be held accountable for their actions and survivors will get help, support and justice.”
“The guilty verdict of these five individuals received yesterday is the culmination of a large sophisticated international sex trafficking criminal enterprise," said IRS-CI Special Agent in Charge Strom. "This criminal organization exploited women and laundered hundreds of thousands of illicit profits. Pooling the skills of each agency in this complex investigation made a tremendous team including IRS Criminal Investigation who provided the financial expertise to follow the money trail of these criminals. Today’s guilty verdict demonstrates the collective efforts of law enforcement and U.S. Attorney’s Office who brought down an international sex trafficking organization.”
As proven at trial, this criminal organization compelled hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, Seattle and Austin. The trafficking victims were often from impoverished backgrounds and spoke little or no English. They were coerced to participate in the criminal scheme through misleading promises of a better life in the United States and the ability to provide money to their families in Thailand.
Once in the United States, the victims were sent to houses of prostitution where they were forced to have sex with strangers – every day – for up to 12 hours a day, at times having sex with 10 men a day. The victims were isolated from the outside world. They were not allowed to leave the houses of prostitution unless accompanied by a member of the criminal organization. The victims moved around the United States between houses of prostitution in multiple cities. They and their families in Thailand were threatened.
The organization also engaged in widespread visa fraud to facilitate the international transportation of the victims. Traffickers assisted the victims in obtaining fraudulent visas and travel documents by funding false bank accounts, creating fictitious backgrounds and occupations, and instructing the victims to enter into fraudulent marriages to increase the likelihood that their visa applications would be approved. Traffickers also coached the victims as to what to say during their visa interviews. While working to obtain visa documents, traffickers gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who sought to flee the organization in the United States.
The organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. The organization used “funnel accounts” to launder and route cash from cities across the United States to the money launderers in Los Angeles. To date, investigators have been able to recover $1.5 million in cash and $15 million in money judgments secured through plea agreements. During the extensive investigation, law enforcement traced tens of millions of dollars to the organization. Indeed, at trial, there was testimony that more than $40 million was sent to Thailand by one money launderer alone.
The District of Minnesota is one of six districts designated through a nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), an ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. Today’s convictions validate the continued ACTeam mission—to take on and take down the most entrenched and sophisticated human trafficking organizations that seek to profit from human exploitation.
U.S. Attorney MacDonald, Assistant Attorney General Benczkowski and Assistant Attorney General Dreiband commended the multiple agencies that assisted in this investigation over the past three years including: HSI; IRS-CI; the Department of Justice’s Criminal Division’s Money Laundering and Asset Recovery Section; the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit; the St. Paul Police Department; the Bureau of Criminal Apprehension’s Minnesota Human Trafficking Investigators Task Force; the Anoka County Sheriff’s Office; the Cook County (Illinois) Sheriff’s Office; the State Department Diplomatic Security Service; and the International Organized Crime Intelligence and Operations Center (IOC-2). U.S. Attorney MacDonald also thanks the Thai Community Development Center for the support and advocacy they have done on behalf of the victims of this sex trafficking organization.
U.S. Attorney MacDonald, Assistant Attorney General Benczkowski and Assistant Attorney General Dreiband further thanked the trial team led by Assistant U.S. Attorneys Melinda A. Williams and Laura Provinzino, with assistance from HSI Special Agent Tonya Price, IRS-CI Special Agent John Tschida, Senior Investigator Steven Baker of the Justice Department’s Criminal Division’s Money Laundering and Asset Recovery Section, and the Justice Department’s Civil Rights Division’s Human Trafficking Prosecution Unit for their dedication to the pursuit of justice
This case is filed as United States v. Michael Morris, et al., 17-cr-107 (DWF/TNL) and United States v. Sumalee Intarathong, et al., 16-cr-257 (DWF/TNL).
Defendants:
MICHAEL J. MORRIS, 65
Seal Beach, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
PAWINEE UNPRADIT, 46
Dallas, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
SAOWAPHA THINRAM, 44
Hutto, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
THOUCHARIN RUTTANAMONGKONGUL, 35
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
WARALEE WANLESS, 39
The Colony, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
CHATARAK TAUFFLIEB, 52
San Jose, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
PEERACHET THIPBOONNGAM, 58
Los Angeles, Calif.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
GREGORY ALLEN KIMMY, 38
Hutto, Texas
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
WILAIWAN PHIMKHALEE, 40
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
KANYARAT CHAIWIRAT, 52
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
PORNTHEP SUKPRASERT, 42
Huntington Beach, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
MULCHULEE CHALERMSAKULRAT, 41
Huntington Beach, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
BHUNNA WIN, 51
San Diego, Calif.
Convicted:
- Unlicensed money transmitting business, 1 count
NATCHANOK YUVASUTA, 50
Los Angeles, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
NATTAYA LEELARUNGRAYAB, 47
Los Angeles, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
PEERASAK GUNTETONG, 61
North Hollywood, CA
Convicted:
- Conspiracy to engage in money laundering, 1 count
VEERAPON GHETTALAE, 57
Lake Elsinore, Calif.
Convicted:
- Conspiracy to engage in money laundering, 1 count
MATTHEW MINTZ, 27
Chicago, Ill.
Convicted:
- Conspiracy to commit alien harboring, 1 count
- Conspiracy to engage in money laundering, 1 count
MOHIT TANDON, 38
Burr Ridge, Ill.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
RICHARD ALEXANDER, 53
DeKalb, Ill.
Convicted:
- Conspiracy to commit marriage fraud, 1 count
- Conspiracy to engage in money laundering, 1 count
TANAKRON PATRATH, 60
Houston, Texas
Convicted:
- Conspiracy to engage in money laundering, 1 count
PANWAD KHOTPRATOOM, 47
Houston, Texas
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
CHABAPRAI BOONLUEA, 44
Winder, Ga.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
NOPPAWAN LERSLURCHACHAI, 37
Lomita, Calif.
Convicted:
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to engage in money laundering, 1 count
WATCHARIN LUAMSEEJUN, 48
Unknown
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
PANTILA RODPHOKHA, 33
Mount Prospect, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
SOYSUDA SIANGDANG, 34
Chicago, Ill.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
ANDREW FLANIGAN, 53
Winder, Ga.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
TODD VASSEY, 56
Lahanina, Hawaii
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
THI VU, 50
Atlanta, Ga.
Convicted:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to engage in money laundering, 1 count
JOHN ZBRACKI, 61
Lakeville, Minn.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
JOHN NG, 41
Cottage Grove, Minn.
Convicted:
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
PATCHARAPORN SAENGKHAM, 43
Los Angeles, Calif.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
CHANANCHIDA SENASU, 42
Dallas, Tex.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
YADAPORN PANNGOEN, 32
Chicago, Ill.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
CHONTHICHA SOICHAISONG, 38
Austin, Tex.
Convicted:
- Conspiracy to enter the United States by means of misrepresentation and concealment of facts, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Store Owner, Customers Plead Guilty to Food Stamp Fraud in South GeorgiaRead the Press Release
Albany – The former co-owner of a Donalsonville, Georgia grocery store, along with ten other customers, have pled guilty to charges related to defrauding the federal food stamp program, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Garland Alford, 75, of Donalsonville, the former co-owner of Lake Flea Market & FDR Grocery, a convenience/grocery store located south of Donalsonville, pled guilty to two counts of acquiring Supplemental Nutrition Assistance Benefits (food stamp benefits) by fraud on Tuesday, December 11, 2018. Mr. Alford’s plea subjects him to a maximum sentence of ten (10) years in prison and fines of $500,000. In addition, ten customers of the store, all of whom redeemed more than $5,000 in food stamp benefits, have each pled guilty to one count of unlawfully transferring food stamp benefits in violation of law. The customers are Jeanie Sheffield, 34, of Colquitt, GA, Kaneesha Wooten, 23, of Bainbridge, GA, Wendy Mitchell Prickett, 44, of Nashville, TN, and Antonio Gardner, 35, Victoria Henry, 47, Jennifer Johnson, 30, Renee Kimble, 41, Crystal Maxwell, 36, Rosanna Roupe, 33, and Kayla Wallace, 26, all of Donalsonville. Their pleas subject them to maximum sentences of five years in prison and $250,000 in fines. All pleas were entered before the Honorable Leslie J. Abrams, United States District Judge in Albany. Sentencing is scheduled for February 6, 2019.
According to the plea agreements, law enforcement officials opened a criminal investigation after learning that Mr. Alford was giving cash for food stamp benefits and allowing SNAP recipients to purchase ineligible items with their benefits. Numerous undercover transactions confirmed the illegal transactions. The average food stamp transaction at Mr. Alford’s store was $56.13, while the average transaction at similar stores in Georgia was just $7.42. Mr. Alford’s store redeemed more than $437,000 in food stamp benefits during a five-year period. A search warrant executed at the store also revealed that many of the items on the store’s shelves and in the freezers were well past their “sell by” date.
“The purpose of the food stamp program is to feed low-income families, not enrich people,” said Charles “Charlie” Peeler, the U.S. Attorney. “This office will vigorously prosecute both store owners and food stamp recipients who abuse the system, and attempt to defraud the government. I want to commend the efforts of the Department of Agriculture, the Georgia Department of Human Resources and the Seminole County Sheriff’s Office in helping put an end to this illegal activity.”
The case was investigated by the United States Department of Agriculture, Georgia Department of Human Services-Office of Inspector General and the Seminole County Sheriff’s Office. Assistant United States Attorney Alan Dasher is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
St. Petersburg Man Pleads Guilty to Money Laundering Conspiracy Relating to IRS Impersonation ScamsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces that Alejandro Juarez (33, St. Petersburg) has pleaded guilty to conspiracy to commit money laundering. Juarez faces a maximum penalty of 20 years in federal prison. Pursuant to his plea agreement, Juarez has agreed to pay restitution to the victims of the conspiracy in the amount of $143,383.51, and has consented to a forfeiture money judgment in the same amount.
According to the plea agreement, from July 2015 through at least September 2015, Juarez laundered money that had been extorted from U.S. residents by conspirators residing in the United States and overseas. As part of the scheme, conspirators based in India impersonated IRS officers and misled multiple victims to believe that they owed money to the IRS and would be arrested and fined if they did not immediately pay their alleged back taxes. Juarez received payments directly from victims, typically via interstate wire transfers, and then provided the funds to his co-conspirators. Juarez was compensated for conducting the transactions.
On October 11, 2018, three co-conspirators, Nishitkumar Patel, Hemalkumar Shah, and Sharvil Patel, were charged in a related case with conspiracy to commit wire fraud and extortion, and with individual counts alleging wire fraud, extortion, money laundering, and aggravated identity theft for their roles in this scheme. Their trials are scheduled to begin in April 2019.
This case was investigated by the Treasury Inspector General for Tax Administration (TIGTA), the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Seven people from Northeast Ohio indicted for conspiracy to distribute carfentanil, fentanyl, heroin and cocaineRead the Press Release
Seven people from Northeast Ohio were indicted in federal court for their roles in a conspiracy to distribute carfentanil, fentanyl, heroin and cocaine.
Named in the 18-count indictment are: Aaron Reels, 52, of Cleveland; Donnell Bell, 40, of Twinsburg; Henry Williams, 45, of Shaker Heights; William Wheat, Jr., 35, of Cleveland; Andre Thompson, 39, of Brook Park; Otha Short, 66, of Cleveland, and Carl Mileca, 74, of Cleveland.
According to the indictment:
Reels purchased drugs from Bell, Wheat, Williams and others. Reels then sold the drugs for profit to Thompson, Short, Mileca and others.
This took place between September 2017 and April 2018.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Drug Enforcement Administration, Lake County Narcotics Agency, Cuyahoga County Sheriff’s Office, Euclid Police Department, Cleveland Heights Police Department, Ashtabula County Sheriff’s Office, Ohio State Highway Patrol, Cleveland Division of Police and Twinsburg Police Department. It is being prosecuted by Assistant U.S. Attorney Marisa T. Darden.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Seven Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that seven previously deported aliens were indicted separately on December 12, 2018, by a federal grand jury for illegal re-entry into the United States.
According to United States Attorney David J. Freed, Efrain Zepeda-Pena, age 30, of Mexico, was previously deported from the United States to Mexico in March 2016. He is alleged to have illegally re-entered the United States sometime after March 2016, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Zepeda-Pena faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Edwin Noel Diaz-Gamez, age 25, of Honduras, was previously deported from the United States to Honduras in September 2012 and January 2013. He is alleged to have illegally re-entered the United States sometime after January 2013, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Carlos Mata-Carrasco, age 42, of Mexico, was previously deported from the United States to Mexico in November 2009. He is alleged to have illegally re-entered the United States sometime after November 2009, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Jose Rios-Antonio, age 28, of Mexico, was previously deported from the United States to Mexico in February 2016. He is alleged to have illegally re-entered the United States sometime after February 2016, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Eulises Ramirez-Vasquez, age 27, of Mexico, was previously deported from the United States to Mexico in April 2010. He is alleged to have illegally re-entered the United States sometime after April 2010, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Carlos Alfredo Lopez-Perez, age 26, of Mexico, was previously deported from the United States to Mexico in September 2015. He is alleged to have illegally re-entered the United States sometime after September 2015, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Jose Alexander Garcia, age 30, of El Salvador, was previously deported from the United States to El Salvador in June 2010. He is alleged to have illegally re-entered the United States sometime after June 2010, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Diaz-Gamez, Mata-Carrasco, Rios-Antonio, Ramirez-Vasquez, Lopez-Perez, and Garcia face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney James T. Clancy is prosecuting the cases.
Indictments and 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.
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.
# # #
Salem Man Charged with Stealing Multiple Firearms from Dublin Pawn ShopRead the Press Release
Roanoke, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged a Salem man with stealing multiple firearms from a federal firearms licensee in Dublin, Virginia. United States Attorney Thomas T. Cullen and Thomas L. Chittum III, Special Agent in Charge of the ATF Washington Field Division made the announcement.
The federal grand jury has charged DeAngelo Ramsey, 19, with one count of burglary of a federal firearms licensee and one count of possession and concealment of stolen firearms.
“We are committed to working with the ATF and our state and local partners to prosecute individuals who unlawfully obtain, possess, or transfer firearms,” U.S. Attorney Cullen stated today. “Procuring firearms through theft or fraud is a serious offense and one that will result in a federal prison sentence.”
“ATF takes the theft of firearms very seriously. Too often, stolen firearms are used to commit violent crimes, usually in the same community where they were stolen,” said Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division. “Thankfully, the aggressive response from law enforcement lead to recovery of the firearms stolen in this case, before they ended up on the streets or in the hands of other criminals.”
According to the indictment, in the early morning hours of November 24, 2018, Ramsey broke into a retail pizza business adjacent to Dublin Pawn, doing business as E.S. Ramey Firearms, a federal firearms licensee located in Dublin, Va. The defendant gained entry into E.S. Ramey through a common ceiling the two businesses shared. The indictment alleges Ramsey removed one or more ceiling tiles, reached into E.S. Ramey Firearms, and stole two semi-automatic rifles and two shotguns. He is accused of possessing and concealing the stolen firearms from on or about November 24, 2018 to on or about November 29, 2018.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pulaski County Sheriff’s Office, the Pulaski Police Department, the Radford Police Department, the Salem Police Department, and the Dublin Police Department. Assistant United States Attorney Kristin B. Johnson will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Romanian National Sentenced to Federal Prison for ATM Skimming ConspiracyRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced ALEXANDRU-NICUSOR NITA, age 38, a Romanian national residing in New Orleans, Louisiana, to 24 months in federal prison following his conviction of conspiracy to commit bank fraud. The Court also ordered restitution of $149,802.
According to admissions made as part of his guilty plea, NITA and a co-conspirator conspired with others to commit bank fraud. NITA installed ATM skimming devices on ATM machines at several financial institutions around the Baton Rouge area, among other locations in Louisiana. These ATM skimming devices captured the financial information of hundreds of customers using the ATM machines. The stolen bank account information was subsequently encoded onto blank debit cards and gift cards.
NITA also installed overhead cameras on these ATM machines to capture the personal identification numbers (“PIN”) of the customers. The debit cards and gift cards were used by others, in combination with the corresponding PIN access codes, to make unauthorized withdrawals from the victims’ bank accounts, including at financial institutions in the Baton Rouge area.
U.S. Attorney Fremin stated, “The theft of personal financial information is a serious problem which threatens our citizens’ security. Our office will prosecute these matters vigorously to protect innocent victims from this terrible crime. The efforts of our prosecutors, along with federal and local law enforcement, were invaluable in bringing these foreign nationals to justice.”
Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “This case was investigated by members of the United States Secret Service Financial Crimes Task Force.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, East Baton Rouge Parish Sheriff’s Office, Financial Crimes Unit, Gonzales Police Department, and St. John the Baptist Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Brad Casey.
Rochester Hills Man Sentenced on Charge of Sexual Abuse on an AircraftRead the Press Release
A Rochester Hills man was sentenced today to nine years in prison after having been convicted of sexual abuse onboard an aircraft, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Stater, Federal Bureau of Investigation, Detroit Field Division.
Sentenced was Prabhu Ramamoorthy, 35. Ramamoorthy is in the United States on a work visa and will be deported once he has served his sentence.
Ramamoorthy was convicted in August after a five-day trial that was conducted before United States District Judge Terrence Berg. The jury deliberated approximately 3 1/2 hours before returning the guilty verdict.
According to evidence presented at trial, on January 3, 2018, Ramamoorthy engaged in a sexual act with a female, while she was sleeping. During the trial, the government admitted evidence demonstrating that Ramamoorthy digitally penetrated the woman sleeping next to him during an overnight flight from Las Vegas to Detroit. The sexual assault woke her up, she found her pants unbuttoned and unzipped, and she sought help from the flight attendants.
United States Attorney Matthew Schneider stated, ““Everyone has the right to be secure and safe when they travel on airplanes. We will not tolerate the behavior of anyone who takes advantage of victims who are in a vulnerable position. We appreciate the victim in this case for her courage to speak out.”
“The sentence announced today is proof that the safety and security of all aircraft passengers is a priority for the FBI, our local and federal law enforcement partners, and airline personnel,” said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. “If you, or someone you know, is the victim of a crime during air travel, immediately notify a flight crew member, airport security police, and the FBI.”
This case was investigated by the Wayne County Metropolitan Airport Authority, and Special Agents of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Amanda Jawad and Maggie Smith.
Rhode Island Man Sentenced to 10 Years’ Imprisonment for Transporting Six Kilograms of HeroinRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Angel Prado, age 46, of Providence, Rhode Island, was sentenced yesterday to serve 10 years in prison by U.S. District Court Judge Robert D. Mariani for transporting six kilograms of heroin from Chicago to Pennsylvania.
According to United States Attorney David J. Freed, Prado previously pleaded guilty to possession with intent to distribute more than one kilogram of heroin. Six kilograms of heroin is equivalent to approximately 240,000 retail bags of heroin. The heroin were seized from a vehicle Prado was driving on Interstate 80 in Monroe County by members of the Pennsylvania State Police on December 19, 2013.
Judge Mariani also ordered Prado to be placed on five years of supervised release following his prison sentence. Prado also faces possible deportation to the Dominican Republic.
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police. Assistant U.S. Attorneys Francis P. Sempa and Phillip Caraballo prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also 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 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.
# # #
Queen Anne’s County Couple Sentenced to Federal Prison for Multi-State Crime SpreeRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Matthew Dale Bush, age 39, of Grasonville, Maryland, to 110 months in prison, followed by three years of supervised release, for conspiring to commit bank larceny, interstate transportation of stolen goods, and interstate transportation of stolen vehicles, and for bank robbery and illegal possession of a firearm and ammunition. At Bush’s sentencing on December 11, 2018, Judge Bennett noted that Bush’s conduct was “alarmingly egregious,” and that the high-speed chases “grossly endangered” the public and law enforcement. Judge Bennett particularly noted, and Bush agreed, that one of the chases extended for over 40 miles from the Chesapeake Bay Bridge to Delaware and the other occurred in the heart of Baltimore.
Judge Bennett sentenced Crystal French, a/k/a “Crystal Lynn Bush,” age 34, also of Grasonville, to 20 months in prison, followed by three years of supervised release, for conspiring to commit bank larceny, interstate transportation of stolen goods, and interstate transportation of stolen vehicles. Judge Bennett also ordered Bush and French to pay restitution of $10,341.38. Bush was sentenced on December 11, 2018, and French was sentenced December 12, 2018.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Queen Anne’s County Sheriff Gary Hoffman.
According to their respective plea agreements, from September 2017 through October 23, 2017, Bush and French conspired to break into retail businesses in order to steal Automated Teller Machines (ATMs) and the money contained inside. The couple admitted that they used stolen vehicles to travel to and from the scenes of the crimes.
In September and October 2017, the couple stole six ATMs that contained over $38,900, and attempted to steal two other ATMs. As part of the conspiracy, the couple traveled to, and stole from, businesses in: Stevensville, Maryland; Chester, Maryland; Kent County, Delaware; Sterling, Virginia; Broadlands, Virginia; Dover, Delaware; Stevensville, Maryland; and Cambridge, Maryland. Generally, Bush entered the store wearing a mask, attached a chain or rope to the ATM, and pulled the ATM out of the store through the front glass window. Bush and French then transported the ATM and its contents to their home in Grasonville, where they hid the proceeds. Bush and French spent the proceeds of the crimes they committed on personal items, including heroin and other illegal narcotics. Bush and French married on October 14, 2017, during the crime spree.
Law enforcement obtained a state search warrant for Bush and French’s residence. On October 19, 2017, just prior to the execution of the search warrant, the police saw Bush and French leave the residence in a green Mercedes. When Bush and French saw a marked Queen Anne’s County patrol vehicle, they sped away. During the search, police recovered the following evidence: tow straps used to pull the ATM machines from the stores; sledgehammers used to break the glass at the burglaries; masks and clothing worn by the suspects in the surveillance videos at the burglaries; the license plate to one of the stolen pickup trucks, cut into pieces; packaging for “walkie-talkies” used by Bush and French during some of the ATM burglaries; and a van containing several damaged ATM machines. The police also found French’s cell phone, a loaded 12-gauge shotgun near the bed where Bush slept, and additional shotgun ammunition in the garage. Bush is prohibited from possessing a firearm due to previous felony convictions, including 2010 convictions for assault and burglary related to a number of Delaware ATM burglaries.
On October 22, 2017, Bush and French stole a pick-up truck in White Marsh, Maryland, and drove to a gas station in Harford County. Bush entered the gas station and demanded money, but the clerk refused to give Bush the cash. Bush and French then drove to Lancaster County, Pennsylvania, where they left the stolen pick-up truck and stole another pick-up truck. Bush and French then drove the second stolen pick-up truck to a convenience store in Harford County, Maryland. Bush and another person, both wearing masks and hats, broke into the convenience store and stole approximately 86 packs of cigarettes. Later that morning, Bush and French drove to a bank on Bel Air Road in Perry Hall, Maryland. While French remained in the passenger seat of the truck, Bush entered the bank and displayed a note demanding money to the teller, who complied with Bush’s demands. Bush stole $4,820, fled the bank, and drove away in the stolen truck.
Officers spotted Bush and French driving away from the bank and attempted a traffic stop. Bush refused to stop. He drove away in a reckless manner, fled into Baltimore City, finally crashing into another vehicle. Bush then got out of the truck, helped French out of the passenger side, and the two ran away, followed by police officers. Bush and French were caught and arrested. The cigarettes stolen from the convenience store were found in the stolen truck.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the HSI, the Maryland State Police, the Delaware State Police, the Queen Anne’s County Sheriff’s Office, the Harford County Sheriff’s Office, the Baltimore County Police Department, and the Loudoun County, Virginia Sheriff’s Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul Budlow and Sandra Wilkinson, who prosecuted the case.
# # #