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Wednesday 17 October 2018
Prison Employee Guilty of Federal ViolationsRead the Press Release
BEAUMONT, Texas – A 39-year-old Beaumont, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Charleas Artesha Wilkerson pleaded guilty to charges of public official accepting a bribe today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, in April 2018, while serving in her official capacity as an employee of the Bureau of Prisons, Wilkerson agreed to accept $1,000 in exchange for smuggling suboxone and cell phones to a federal inmate housed at the U.S. Penitentiary in Beaumont, Texas. Federal agents observed Wilkerson retrieve money associated with the smuggling of contraband items. Wilkerson was later arrested as she retrieved a box that she believed to have contained the contraband items. Wilkerson was indicted by a federal grand jury on July 12, 2018.
Under federal statutes, Wilkerson faces up to 15 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Russell E. James.
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Poultney Man Sentenced to 24 Months’ Imprisonment for Hosting Out-of-State Drug Dealers at His ResidenceRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Wayne Oddo, 54, of Poultney, was sentenced to 24 months’ imprisonment by Chief United States District Court Judge Geoffrey W. Crawford sitting in Rutland, Vermont. Chief Judge Crawford also sentenced Oddo to a three-year period of supervised release by the U.S. Probation Office, which will begin when Oddo is released from prison.
Oddo previously pled guilty to a violation of a federal law that prohibits making a residence, or other place, available for the purpose of manufacturing, storing, distributing, or using any controlled substance. This statute imposes a maximum sentence of twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release.
According to court records, from about December 2016 to March 2017, Oddo housed two out-of-state drug dealers who sold heroin and crack cocaine in Rutland County. These two drug dealers, Richard Torruellas (a.k.a. “Scoob”), 23, and Franseco Escribano (a.k.a. “Brisco”), 35, were known as the “Jersey Boys,” as they were from the Jersey City, New Jersey area. Both previously pled guilty to conspiring to distribute heroin and cocaine base and each received sentences of 54 months’ imprisonment.
According to the government, Torruellas and Escribano often stayed overnight at Oddo’s residence on Morse Hollow Road in Poultney with their supply of drugs. During the day, they would go into Rutland and use local addicts to sell most of their drugs. In exchange for letting them stay at his residence, Torruellas and Escribano gave Oddo small, personal use amounts of drugs and paid some of his bills. Oddo also allowed Torruellas and Escribano to target shoot with his guns in his backyard.
During the execution of a search warrant at his residence on March 15, 2017, Oddo admitted that he moved the body of Alexandra Rooker, 26, who had fatally overdosed a week earlier at Oddo’s residence. Specifically, Oddo stated that he had moved her body to his shed because of the smell and had not reported her death to anyone.
Several months before the discovery of Rooker’s body, there was another drug related-death at Oddo’s home, and in that situation too, Oddo never called for help. In light of these facts, in its sentencing memorandum, the government argued that a significant sentence of imprisonment was appropriate:
It is astonishing that over a six-month period there were two-drug related deaths at his residence and, in both instances, the defendant appeared to lack the basic decency to notify law enforcement. Most people, even those battling the demons of addiction, know instinctively that there is a line below which it is simply immoral to descend. Hiding the body of a deceased person falls well below that line. The defendant appears to have had no qualms about descending to that dark place.
U.S. Attorney Christina Nolan stated:
“In light of the defendant’s disregard for the dignity of deceased persons, a significant sentence was warranted. This tragic case also shows how destructive and corrosive the opioid crisis is in the State of Vermont.”
“The opioid crisis in Vermont requires a multi-faceted law enforcement approach aimed at reducing supply, which will complement statewide efforts to reduce demand by making drug treatment more accessible to addicts. As part of our continued vigorous prosecutions of large-scale drug dealers, it is necessary to also target those lower-level residents who enable larger out-of-state dealers by providing them with a places to stay, store their product, and conduct drug trafficking activities. Prosecuting these individuals and shutting down these safe houses is necessary because oftentimes these facilitators will host a succession of out-of-state drug dealers. In appropriate cases, such as when the owner of the property is aware of the drug dealing and fails to take reasonable and safe steps to stop it, such as by contacting law enforcement, we will consider utilizing federal forfeiture law to seize and forfeit the property.”
Rutland County State’s Attorney Rosemary Kennedy stated:
“I want to thank the US Attorney’s Office for all their work on this case. The State looks forward to prosecuting the matter in State court.”
This case was investigated by the Vermont State Police Drug Task Force, the Rutland City Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella prosecuted the case on behalf of the United States. Wayne Oddo is represented by Steven Barth, Esq., of the Federal Public Defenders Office.
Political Consultant Pleads Guilty to Conspiring to Defraud the United States and Making False Statements to Federal InvestigatorsRead the Press Release
SAN FRANCISCO – Derf Butler, owner and president of San Francisco-based Butler Enterprises, pleaded guilty today to conspiracy to defraud the United States in connection with a federal construction contract, and making false statements to federal investigators, announced United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and the Department of Energy (DOE) Office of Inspector General Special Agent in Charge James Breckenridge. The plea was accepted by the Honorable Charles R. Breyer, U.S. District Judge.
A federal grand jury indicted Butler, 54, of Vallejo, with the charges on April 6, 2017. In pleading guilty to the charges without a plea agreement, Butler has admitted that he conspired with others to knowingly and intentionally defraud the DOE. Specifically, Butler admitted that beginning no later than July 17, 2013, he was involved with others in an illegal scheme to obtain a contract with the DOE to renovate a building on the campus of the Lawrence Berkeley National Laboratory (LBNL).
Contractors seeking construction work with the DOE are legally required to obtain work through a competitive bidding process. In this case, Butler and others agreed to submit, or participate in the submission of, fraudulent and non-competitive bids to perform the renovation of LBNL Building 84. Specifically, Butler agreed to take steps to ensure that a particular “developer” won the contract by ensuring the developer’s bid on the renovation project was the lowest bid. Butler also helped to orchestrate the submission of bids by other contractors in amounts dictated by the developer. Butler also admitted he understood the bids he arranged for submission by other contractors were not genuine bids and were intended to be higher than the bid submitted to the DOE by the developer.
In addition, Butler admitted meeting with the developer in July of 2013, at which time Butler agreed to locate contractors to submit bids for the DOE contract in amounts higher than the contractor’s bid. During the meeting, the developer gave Butler $2,000 in cash. At the same meeting, Butler proposed that, instead of paying the contractors for submitting the bids, the developer could give the bidders sub-contracting work once the developer won the contract. Later that same month, Butler met with the developer other contractors. All agreed that the contractors would submit separate bids and none of the bids would be lower than the $5.7 million bid to be submitted by the developer. Within the next three months, the contractors’ additional, higher bids were submitted to the DOE and Butler received two additional cash payments of $4,000 and $9,000.
Butler also admitted facts related to making fraudulent statements to investigators. On March 26, 2014, agents from the Federal Bureau of Investigation interviewed Butler about his dealings with the developer. Butler told the agents he had never received money from and that he had no financial relationship with the developer. In truth, Butler already had received $15,000, he had requested an additional $15,000, and he had multiple conversations with the developer about the financial benefits he expected to receive once the DOE contract for the renovation project was awarded.
The grand jury charged Butler with one count of conspiracy to defraud the United States, in violation of 18 U.S.C. § 371, and one count of making a false statement, in violation of 18 U.S.C. § 1001(a)(2). Pursuant to today’s plea agreement, he pleaded guilty to both counts. Judge Breyer scheduled Butler’s sentencing for January 23, 2019.
Butler faces a maximum penalty of five years imprisonment, a three-year term of supervised release and a $250,000 fine for the conspiracy charge. In addition, Butler faces a maximum penalty of ten years imprisonment, a three-year term of supervised release, and a $250,000 fine for the false statement count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
On March 9, 2018, Anton Kalafati, 34, of San Francisco, President of B Side Inc. in San Francisco, pleaded guilty to his role in the scheme. Kalafati admitted to being one of the contractors who submitted a sham bid for the LBNL Building 84 renovation contract. There is currently no date scheduled for Kalafati’s sentencing hearing.
The investigation that led to the charges in the indictment arose out of the FBI’s 2012-2014 public corruption investigation of San Francisco political consultant Keith Jackson and then-State Senator Leland Yee, and the related organized crime investigation of Raymond “Shrimp Boy” Chow. The FBI source who was posing as the developer and acting undercover in connection with the CalVet and DOE contracts described above was also involved in the investigation of Jackson and Yee. Jackson and Yee were convicted of corruption charges in 2015.
Assistant United States Attorneys Cynthia Frey, William Frentzen, and David Countryman are prosecuting the case with the assistance of Rosario Calderon and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and United States Department of Energy, Office of Inspector General. Additional assistance was provided by the California Department of Veteran’s Affairs.
Pittsburgh Man Pleads Guilty to Possessing Heroin and FentanylRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Troy Cole, Jr., age 27, pleaded guilty to two counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on or about January 6, 2017,Cole, Jr. possessed with the intent to distribute and distributed a quantity of heroin, a Schedule I controlled substance, and on or about August 23, 2017, Cole possessed with the intent to distribute fentanyl, a Schedule II controlled substance.
Judge Conti scheduled sentencing for February 5, 2019 at 3:30 p.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Monroeville Police Department, and Pennsylvania’s Office of Attorney General conducted the investigation that led to the prosecution of Cole, Jr.
Ohio Man Pleads Guilty to Child Sex Charges Involving Minors in Multiple StatesRead the Press Release
ROCK ISLAND, Ill. – Sentencing is scheduled for Feb. 14, 2019, for Andrew J. Stone, 33, of Rocky River, Ohio, who entered pleas of guilty today to charges of transportation of a minor for unlawful sexual activity and production of child pornography. Stone appeared before U.S District Judge Sara Darrow in Rock Island.
According to court documents and admissions made in connection with his guilty pleas, Stone engaged in internet communications with a 15-year old girl who lived in Illinois. In December 2016, Stone traveled from Ohio to Illinois to meet the girl and then drove her to Iowa, where he and the girl engaged in sexual activity and Stone created video of the sexually explicit conduct. In addition, Stone admitted to illegal sexual activity with other minor girls in Illinois, Missouri, and Ohio. Further, Stone admitted that he caused the girls in those states and other girls in Iowa, Virginia, and Pennsylvania to create videos of themselves engaged in sexually explicit conduct and to send the videos to Stone.
Stone was arrested in Ohio on July 28, 2017, and charged in a federal criminal complaint filed in the Central District of Illinois. The grand jury returned an indictment in August 2017. Subsequent investigation revealed the additional illegal sexual activity that Stone admitted in court today.
Stone has agreed to serve a sentence of 35 years (425 months) in prison recommended by the government, according to the plea agreement filed today.
The charges were investigated by the U.S. Secret Service, the Moline Police Department, Illinois State Police, and the Ohio Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney Don Allegro.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Notorious Pedophile Committed to Federal Custody as a Sexually Dangerous PersonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr., announced that Chief United States District Judge Terrence W. Boyle committed KELLY GERALD CROSBY, 35, to the custody of the Attorney General as a sexually dangerous person under the Adam Walsh Child Protection and Safety Act of 2006.
CROSBY has a history of sexually molesting children and engaging in threatening behavior. CROSBY admitted that he sexually molested 15 minors ages 2-13 years old. He also persuaded a 13-year-girl to email him nude photographs. During his incarceration for a probation violation related to that offense, CROSBY wrote to the victim, threatening to rape her. In a separate letter to his sentencing judge, CROSBY threatened to rape the judge’s wife as the judge watched and then kill the judge himself. CROSBY also wrote to a female probation officer and threatened to rape her, too.
CROSBY was prosecuted federally for those threatening letters and ultimately sentenced to additional imprisonment in a federal institution. In March 2018, and while CROSBY was serving that federal sentence, the United States certified him as a sexually dangerous person under the Adam Walsh Child Protection and Safety Act of 2006. Congress passed that Act in 2006 to provide another powerful legal mechanism for protecting the public from some of the most dangerous sexual offenders. The Act allows the United States to seek civil commitment of sexually dangerous persons who, because of a serious mental illness, abmnormality, or disorder, would have serious difficulty refraining from sexually violent conduct or child molestation.
CROSBY admitted to his sexual misconduct and sexually violent threats in writing during his civil commitment proceeding. Reviewing those facts and other aspects of this case, four independent psychologists – including CROSBY’s own selected examiner – agreed that he met the criteria for civil commitment as a sexually dangerous person. CROSBY’s stipulated facts and the experts’ reports were provided to Chief Judge Boyle who, on October 16, 2018, committed CROSBY to the custody of the Attorney General.
“Kelly Crosby’s record of child molestation and sexually violent threats is undeniably heinous,” said U.S. Attorney Higdon. “He is a dangerous predator who exemplifies the need for the Adam Walsh Act. This Office will continue to vigorously pursue civil commitment of sexually dangerous persons like Crosby. Our communities, our families, and our children deserve nothing less.”
The United States Attorney’s Office for the Eastern District of North Carolina litigates all Adam Walsh Act cases for the entire country. All sexually dangerous persons who are committed to federal custody are housed in a federal facility in that district, where intensive, residential treatment is offered to them. CROSBY is the eighty-first sexually dangerous person committed under the Adam Walsh Act.
Assistant United States Attorneys Michael Gordon James and Dennis Duffy represented the government in this case.
Northwest Ambulance Services Owner Charged with 11 Count IndictmentRead the Press Release
HAMMOND – Basil N. Ubanwa, 60 years old, of Crown Point, Indiana, was indicted by a federal grand jury for 11 counts of health care fraud and one count of conspiracy to commit health care fraud, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Health care fraud is a serious crime that drives up the cost of healthcare for all honest Americans. Medicare and Medicaid are not bottomless funds from which theft goes unnoticed or unpunished. Taxpayers are the victims of these crimes. We, with our law enforcement partners, will continue to investigate and aggressively prosecute perpetrators of these fraudulent schemes.”
The indictment alleges that between 2011 and 2018, Ubanwa executed a scheme to obtain hundreds of thousands of dollars by submitting fraudulent claims to Medicare and Medicaid for ambulance services. From 2007 to 2018, Ubanwa was the owner and manager of Northwest Ambulance Services, located in Crown Point, Indiana. Northwest’s primary source of revenue was transporting patients to and from kidney dialysis appointments. According to the indictment, Ubanwa and others directed Northwest employees to transport patients by ambulance who did not qualify for ambulance transportation and who were not eligible to receive such services under Medicare reimbursement rules. Ubanwa and others instructed Northwest employees to bill Medicare and Medicaid for ambulance services that were not medically necessary.
The United States is seeking criminal forfeiture of the proceeds of the alleged crimes including, but not limited to, the over $1.9 million from bank accounts associated with Northwest Ambulance and Ubanwa that are listed in the forfeiture count of the indictment.
The United States Attorney's Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI, Health and Human Services, Office of Inspector General and the Indiana Attorney General’s Medicaid Fraud Control Unit, and is being prosecuted by Assistant United States Attorneys Diane Berkowitz and Abizer Zanzi.
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Northshore Contractor Pleads Guilty to Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The U.S. Attorney’s Office, Eastern District of Louisiana announced that JEFFREY DUNLAP, age 44, a resident of Slidell, Louisiana and owner of Phoenix Civil Contractors (“Phoenix”) pleaded guilty today to one count of conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the Bill of Information, from March 2009 through April 2017, Phoenix and DUNLAP had a banking relationship with First NBC Bank. During that timeframe, Bank President A acted as the loan officer for Phoenix and DUNLAP, reviewing and approving new loans, lines of credit, and advances and incremental increases. The largest Phoenix loan was a revolving line of credit secured by eighty-percent of Phoenix’s accounts receivable. At the direction of Bank President A, DUNLAP submitted false financial statements and inflated accounts receivable for Phoenix to justify incremental increases on the line of credit. Bank President A caused these false supporting documents to be placed in First NBC Bank’s records.
As alleged in the Bill of Information, the purpose of the conspiracy was for the defendant, DUNLAP, Bank President A, and others to unjustly enrich themselves, disguise Phoenix’s true financial status, and conceal the accurate performance of Phoenix’s line of credit. The defendant, DUNLAP, Bank President A, and others sought to obtain money from First NBC Bank, in part, so that Bank President A and Owner B could continue using Phoenix on projects involving Company A, which was co-owned by Bank President A and Owner B. As a result, Bank President A and Owner B benefited by not having to use their own funds to pay Phoenix for work involving Company A.
The false and fraudulent financial statements, accounts receivable, and other documents submitted by DUNLAP disguised Phoenix’s true financial condition from First NBC Bank, bank regulators, investors, and others. By April 28, 2017, First NBC Bank had advanced approximately $22 million to Phoenix on the line of credit, based on these false statements.
DUNLAP could face up to 30 years imprisonment, a fine of more than $1 million, five years of supervised release, and a special assessment of $100.
This case is being investigated by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation, Office of Inspector General, and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman and Matthew R. Payne, Nicholas D. Moses and Ryan McLaren are in charge of the prosecution.
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Niagara Falls Man Pleads Guilty to Selling HeroinRead 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 Michael Mitchell, 37, of Niagara Falls, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder to conspiracy to possess with intent to distribute 100 grams or more of heroin. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan Tokash, who is handling the case, stated that between June 2013 and September 2015, the defendant conspired with others sell heroin, fentanyl, and cocaine. Mitchell received heroin, cocaine, and crack cocaine base from co-defendant Troy Gillon for distribution to other dealers in the Lockport and Niagara Falls area.The defendant was intercepted, pursuant to court-authorized wiretaps, on his cellular telephone. Mitchell’s intercepted calls related to drug transactions, in which he arranged for sales of controlled substances and included discussions in which he discussed price, quantity, and location of sales. In addition, the defendant made several narcotic sales to an individual working with the Drug Enforcement Administration. Mitchell utilized a residence at 1154 LaSalle in Lockport to store the drugs he received from Troy Gillon for distribution.
Charges remain pending against Troy Gillon. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.
Sentencing will be scheduled at a later date.
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New York Man Charged with Possessing with Intent to Distribute More Than Two Kilograms of Heroin and More Than One Kilogram of Fentanyl PrecursorRead the Press Release
TRENTON, N.J. – A New York man who was arrested in Mercer County, New Jersey, with more than a kilogram of the fentanyl precursor ANPP, and possessing more than two kilograms of heroin in his New York apartment, made his initial appearance in Trenton federal court, U.S. Attorney Craig Carpenito announced today.
David Valle Campos, 45, of Spring Valley, New York, is charged by complaint with one count of possessing with intent to distribute approximately two kilograms of heroin, and one count of possessing with intent to distribute more than a kilogram of 4-Anilino-N-phenethyl-4-piperidine (ANPP), a Schedule II controlled substance used in the manufacture of fentanyl. He appeared Oct. 16, 2018, before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained without bail.
According to the complaint:
On Oct. 15, 2018, law enforcement officers learned that Campos planned to sell a substantial quantity of either heroin, fentanyl or both to a buyer in the Trenton area. The officers set up surveillance in the Hamilton Township, New Jersey, parking lot where they expected the transaction to occur. They observed Campos meet with another individual and return to his vehicle. Officers stopped the vehicle and discovered approximately 1.2 kilograms of a substance that tested positive for ANPP. A subsequent search of Campos’s Spring Valley, New York, apartment resulted in the seizure of approximately 2.1 kilograms of a substance that tested positive for heroin.
Campos faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Brian Michael of HSI Newark, with the investigation leading to the charges. He also thanked the Rockland County Sheriff’s Office; the Rockland County Intelligence Center; the Drug Enforcement Administration; the N.J. State Police; the Village of Spring Valley, New York, Police Department; and the Customs and Border Protection Air Unit, New York, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the Criminal Division in Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York City Man Admits He Brought Heroin to Western Pennsylvania for DistributionRead the Press Release
PITTSBURGH - A resident of New York, NY, pleaded guilty in federal court to a charge of conspiracy to distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
William Rosario, age 25, pleaded guilty yesterday to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around November 2016 through in and around February 2017, Rosario conspired with his codefendants, David Francis and Jose Ortega, to possess with intent to distribute and distribute 100 grams or more of heroin, which he transported from New York to the Western District of Pennsylvania.
Chief Judge Conti scheduled sentencing for February 5, 2019 at 2:30 p.m. The law provides for a total sentence of not less than five and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Monroeville Police Department, Stowe Township Police Department, Ingram Borough Police Department, Pennsylvania State Police, and Monaca Police Department conducted the investigation that led to the prosecution of Rosario.
New Haven Man Pleads Guilty to Drug Charges Stemming from East Haven Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DEVELL CONLEY, 32, of New Haven, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to narcotics distribution offenses.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 5, 2017, the East Haven Police Department responded to a report of an untimely death of a 27-year-old female at a residence in East Haven. At the scene, officers seized drug and non-drug evidence, including three small bags that contained a substance that tested positive for the presence of fentanyl. Investigators also seized the victim’s cellphone.
The investigation revealed that CONLEY had provided drugs to the victim shortly before her death. He also had distributed heroin and crack cocaine to several drug users between July 2016 and May 2017.
CONLEY has been detained since his arrest on May 18, 2017.
CONLEY pleaded guilty to one count of possession with intent to distribute, and distribution of heroin and fentanyl, and one count of possession with intent to distribute, and distribution of heroin and cocaine base (“crack”). Judge Hall scheduled sentencing for January 9, 2019, at which time CONLEY faces a maximum term of imprisonment of 20 years on each count.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the East Haven and New Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Patrick F. Caruso.
New Haven Man Charged with Multiple Bank Robbery OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on September 18, 2018, a federal grand jury in New Haven returned an indictment charging VINCENT JONES, 50, of New Haven with two counts of bank robbery and one count of attempted bank robbery.
JONES appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charges. He has been detained since August 9, 2018, when he was arrested on related state charges.
The indictment alleges that JONES attempted to rob the Key Bank located at 245 Main Street in East Haven on July 31, 2017; robbed the Webster Bank located at 247 Boston Post Road in Orange of $5,469 on July 31, 2017, and robbed the Bank of America located at 1331 Boston Post Road in Milford of $6,578 on August 8, 2018.
If convicted, JONES faces a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Orange, Milford, New Haven and Waterbury Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Navajo Man from Shiprock Sentenced to Prison for Firearms Offenses, Including Discharging Weapon Near a SchoolRead the Press Release
ALBUQUERQUE – Eric Multine, 33, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 60 months in prison for unlawfully possessing a firearm and ammunition, and discharging a firearm near a school. Multine will be on supervised release for three years after completing his prison sentence.
The FBI arrested Multine on Dec. 26, 2017, on a criminal complaint charging him with being a felon in possession of a firearm on Dec. 20, 2017, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, officers of the Navajo Nation Division of Public Safety (NNDPS) responded to a shots fired call for service near an elementary school on the Navajo Indian Reservation on Dec. 20, 2017. The NNDPS officers arrested Multine on tribal charges and found a firearm in his pocket incident to the arrest. Multine was federally charged after it was determined that he was prohibited from possessing a firearm or ammunition because of his prior conviction for possessing a firearm during and in relation to a crime of violence.
On March 16, 2018, Multine pled guilty to a two-count felony information charging him with being a felon in possession of a firearm and ammunition and with discharging a firearm in a school zone. In entering the guilty plea, Multine admitted being unlawfully in possession of a firearm and ammunition on Dec. 20, 2017, despite his status as a convicted felon. Multine also admitted discharging the firearm within 1,000 feet of an elementary school.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the NNDPS. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Mount Holly Woman Convicted of Bank Fraud Conspiracy and Other Charges for $1 Million Fake Car Loan SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte returned a guilty verdict late yesterday against Kimberlie L. Flemings, 49, of Mt. Holly, N.C. for her role in a $1 million fake car loan scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The jury found Flemings guilty of conspiracy to commit wire and bank fraud; wire fraud affecting financial institutions; and multiple counts of financial institution fraud. U.S. District Judge Robert J. Conrad presided over the trial.
Two of Flemings’ co-conspirators, Stanley Reginald Barron, 38 of Cornelius, N.C. and Brian Lyles, 46, formerly of Jersey City, New Jersey, previously pleaded guilty to conspiracy to commit wire and bank fraud. Lyles also pleaded guilty to bank fraud. They are currently awaiting sentencings.
According to evidence presented at trial, witness testimony and filed court documents, from at least 2012 to 2015, Flemings, Barron, Lyles and others submitted dozens of fraudulent automobile and personal loan applications in their names, and the names of at least 30 other individuals they had recruited to participate in the scheme, to at least 19 banks and credit unions. As a result of the fraudulent applications, the co-conspirators obtained more than $1 million in fraudulent loan proceeds. To facilitate the fraud, the co-conspirators created fake automobile dealerships that purported to be the sellers of vehicles purchased with the fraudulent loans. The co-conspirators also set up bank accounts, websites, and addresses associated with these fake automobile dealerships, and created fictitious purchase orders which were submitted to the financial institutions as part of the loan application.
Flemings, Barron and Lyles deposited the fraudulently-obtained checks from the financial institutions into accounts Barron controlled. After keeping a portion of the fraudulent loan proceeds, Barron distributed the rest to Flemings, Lyles, and others. According to court records, the majority of the loans defaulted, causing losses to the impacted financial institutions. To cover up the fraud, Barron and others made false statements to the defrauded banks and credit unions that attempted to collect on the debts, including that borrowers had been the victims of identity theft and that they had not authorized the loans.
Flemings is currently released on bond. Each of the charges the defendant was convicted of carries a maximum sentence of 30 years in prison and a $1,000,000 fine. A sentencing date has not been set.
In making today’s announcement U.S. Attorney Murray thanked the Postal Inspection Service (USPIS) and the Office of Inspector General of the Federal Housing Finance Agency for their investigation of the case, and recognized the North Carolina Division of Motor Vehicles for their assistance.
Assistant U.S. Attorneys Daniel Ryan and Taylor J. Philips of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Moscow Man Sent to Prison on Federal Child Pornography ChargeRead the Press Release
COEUR D’ALENE – Jacob Anthony Lincoln, 28, of Moscow, was sentenced yesterday in U.S. District Court to 63 months in prison, followed by three years of supervised release, for obscene visual representations, U.S. Attorney Bart M. Davis announced. Lincoln pleaded guilty on March 19, 2018.
According court records, in 2016, law enforcement officers observed that a computer in the Moscow area was making child pornography available on the internet. This information, and other evidence, resulted in a state search warrant for Lincoln’s Moscow residence. During the subsequent search, officers seized a computer from Lincoln’s bedroom. When examined, the computer had 2,590 files depicting child pornography, including images of children being sexually abused.
U.S. District Court Judge David C. Nye, also ordered Lincoln to forfeit the hard drive he used during the commission of the crime and to pay $2,000 to a child whose image Lincoln possessed. Lincoln will be required to register as a sex offender because of his conviction.
This case was investigated by the Moscow Police Department, Latah County Sheriff’s Office with the assistance of the Federal Bureau of Investigation. These agencies are members of the Idaho Internet Crimes Against Children Task Force, a coalition of federal, state, and local law enforcement agencies who investigate and prosecute individuals who use the internet to criminally exploit children.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Montana Woman Pleads Guilty to Stealing from Forest Service Fee-TubesRead the Press Release
COEUR D’ALENE – Michaeleen Rae Herron, 45, of Lolo, Montana, pleaded guilty yesterday to theft of public money, U.S. Attorney Bart M. Davis announced. Herron was indicted by a federal grand jury in Coeur d’Alene on May 15, 2018, and has remained in federal custody since her arrest on September 19, 2018.
According to statements made in court, on October 20, 2016, Herron went into United States Forest campgrounds, maintained by the United States Forest Service, and stole money from campground fee-tubes. Herron admitted that she fished money through deposit slots and pried fee-tubes open to take the money. Herron admitted that she stole $500.
Herron’s sentencing is set for December 18, 2018 before Chief U.S. District Court Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene. Herron faces up to one year in prison, and a $100,000 fine for her crime.
This case was investigated by law enforcement officers with the United States Forest Service.
# # #Mobile County Man Receives 46 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Deanthony T. Murphy, a 24 year old resident of Theodore, Alabama was sentenced to 46 months incarceration for possession of a firearm after being convicted of a felony Assault, Second Degree.
On June 12, 2018, according to a factual statement Murphy signed in connection with his guilty plea to being a felon in possession of a firearm, on about February 23, 2018, Murphy was speeding while driving a red Pontiac Firebird on Highway 90 in Mobile County, Alabama. Based on this traffic violation, a Mobile County Sheriff’s deputy executed a traffic stop. The deputy asked for and received Murphy’s driver’s license. A records check revealed that Murphy had active misdemeanor arrest warrants. He was arrested and the vehicle was set to be towed. During an inventory search of the vehicle, a loaded firearm was located lodged between the driver’s seat and the center console. The firearm is described as a Jimenez Arms, 9mm pistol. Murphy admitted that he possessed the firearm. Also found during the search was approximately 525 grams of marijuana, a set of digital scales, and an open box of sandwich baggies.
At that time, Murphy had been convicted of at least one felony, namely, Assault Second Degree, on March 25, 2014, in the Circuit Court of Mobile County, Alabama, case number CC-2013-004639.
Special Agents of the Department of Homeland Security/ICE along with deputies of the Mobile, County, Alabama Sheriff’s office investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Catarino Vargas-Moreno, age 42, and a citizen of Mexico, was sentenced today to time served (32 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Vargas-Moreno was removed from the United States to Mexico on September 14, 2009, following an illegal entry into the United States. On September 15, 2018, he was arrested at a Border Patrol checkpoint on New York State Route 9 near North Hudson, New York. Vargas-Moreno was a passenger in a vehicle that pulled into the checkpoint. Following a fingerprint check, Vargas-Moreno admitted that he returned to the United States without permission following the 2009 removal.
Following the sentencing, Vargas-Moreno was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mescalero Apache Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Timothy Gregg Enjady, 54, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 18 months in prison for his conviction on an assault charge. Enjady will be on supervised release for two years after completing his prison sentence.
The BIA arrested Enjady in Aug. 2017, on a criminal complaint charging him with assaulting a Mescalero Apache woman on June 7, 2017, on the Mescalero Apache Indian Reservation in Otero County, N.M. According to the complaint, Enjady assaulted the woman by hitting her in the face with his fist, hitting her with an object, and placing his thumb in her eye.
Enjady was indicted on Jan. 17, 2018, and was charged with assault with a dangerous weapon, an aluminum crutch, with intent to do bodily harm.
On May 1, 2018, Enjady pled guilty to the indictment, and admitted that on June 7, 2017, he assaulted the victim by striking her in the face and head with an aluminum crutch. Enjady further admitted that the victim suffered facial contusions, head lacerations, and a corneal abrasion as the result of the assault.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Meridian Man Pleads Guilty to Importation of Chemicals to Manufacture Synthetic Cannabinoid and Illegal Possession of FirearmsRead the Press Release
Jackson, Miss. – Bilal Hamid Love, 35, of Meridian, pled guilty yesterday before Senior U.S. District Judge William H. Barbour III to importing the controlled substance AB-PINACA and possessing firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
"We will remain vigilant in order to capture this poison being sent through our mail system before it hits our streets and harms our citizens. I commend our Postal agents, Homeland Security agents and prosecutor for being proactive and catching this criminal before he hurt our community even more," said U.S. Attorney Hurst.
On March 22, 2015, agents with Homeland Security Investigations and the United States Postal Inspection Service found two packages that were coming from Hong Kong to a resident in Meridian, Mississippi. Inside the packages was AB-PINACA, a powder that is used in making synthetic cannabinoid. Love lives in Meridian and was also the manager at a local sporting goods store in Meridian. Agents searched the sporting goods store and found 3 firearms and numerous packages of synthetic cannabinoid for sale. Agents also searched Love’s home and found numerous items that are used in making synthetic cannabinoid, such as sprayers, AB-PINACA, flavoring, and dryers. Agents also found more firearms, cocaine and marijuana plants. Love was charged in a multi-count federal indictment on March 7, 2018.
"Homeland Security Investigations is highly focused on identifying illegal cross-border shipments as one of its highest priorities," said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. "The boldness of this criminal effort to import illegal drugs into the U.S. through the mail seriously underestimated the dedication of HSI and its federal partners to identify and seek prosecution of those engaged in this brazen criminal activity."
Love faces a maximum sentence of life in prison and a $1 million fine. A sentencing date will be determined by the Court.
This case was a joint investigation by U.S. Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the East Mississippi Drug Task Force, the Mississippi State Crime Laboratory, and the United States Marshal Service. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Massachusetts Man Pleads Guilty to Sending Threatening Letters, Some Containing Suspicious White PowderRead the Press Release
BOSTON – A Beverly man pleaded guilty today in connection with mailing threatening letters containing suspicious white powder to high-profile individuals, law enforcement officials and others.
Daniel Frisiello, 25, pleaded guilty to 13 counts of mailing a threat to injure the person of another and six counts of false information and hoaxes. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 16, 2019. Frisiello was arrested and charged on March 1, 2018, and has been in home detention since.
Frisiello mailed five high-profile individuals around the country an envelope that contained suspicious white powder and a note indicating that the powder was dangerous and intended to cause harm. There were notable commonalities among the envelopes, including a Boston postmark. Further investigation revealed that one victim had also received a “glitter bomb,” that is, an envelope containing glitter sent to an unsuspecting individual that, when opened, spills out onto the recipient. Law enforcement traced financial records to Frisiello, who had ordered and paid for the glitter bomb to be delivered to the victim. Furthermore, trash recovered from Frisiello’s residence contained remnants of the cut-out computer-printed messages that Frisiello sent to some victims.
More specifically, in 2015, Frisiello sent two letters that threatened the manager of a Massachusetts company that had recently terminated one of Frisiello’s family members. During the 2016 presidential campaign, Frisiello sent a white-powder letter to family members of then-presidential candidate Donald Trump, which caused a significant hazardous material response by law enforcement. The letter promised that if Trump did not drop out of the race, the next letter would not be a fake. In 2016, Frisiello also sent letters to the heads of four law enforcement agencies in Connecticut and Rhode Island, warning them to drop an investigation into Nathan Carman, who allegedly killed his mother and grandfather, threatening that one police chief would join Carman’s mother “at the bottom of the sea” and that a state police colonel would not only drown, but also receive “a bullet in [his] brain.” In 2017, Frisiello sent a letter threatening to shoot the assistant district attorney who was prosecuting Michelle Carter for involuntary manslaughter and to also shoot the judge who was hearing the case. In 2018, Frisiello sent white powder letters to another member of the First Family, a United States Attorney, United States Senator Deborah Stabenow, a Stanford law professor, and a candidate for the United States House of Representatives.
Frisiello was tied to the threatening letters through fingerprints and further investigation.
The charge of mailing a threat to injure the person of another provides for a sentence of no greater than five years in prison, or 10 years in prison for threats addressed to a federal official, three years of supervised release and a fine of $250,000. The charge of false information and hoaxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Stephen Marks, Special Agent in Charge of the U.S. Secret Service Boston Field Office; and Beverly Police Chief John G. LeLacheur made the announcement today. The investigation was led by the FBI Boston Division’s Joint Terrorism Task Force. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting the case.
Man Sentenced to Eight Years in Prison for Bank Fraud and Witness TamperingRead the Press Release
SAN JUAN, P.R. - United States District Court Judge Aida Delgado-Colón sentenced José Andrés Colón-Santos to eight years in prison followed by five years of supervised release for bank fraud and tampering with a witness by intimidation, threats, corrupt persuasion, or misleading conduct, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Court also ordered the defendant to make restitution payments to 12 victims in a total amount of $73,727.82.
On May 2, 2018, Colón-Santos plead guilty to committing bank fraud and tampering with a witness by intimidation, threats, corrupt persuasion or misleading conduct, in a case where he targeted elderly victims. Colón-Santos admitted to having unlawfully enriched himself by obtaining bank account information and personal identifying information (social security number, date of birth, address as well as credit/debit card and PIN numbers) from victims whose ages ranged from 69 to 83 years old. According to his guilty plea, Colón-Santos would obtain the name and number of his elderly victims from a telephone book. He would then call them and procure their personal identifying information by impersonating a bank officer. After obtaining their personal identifying information, he would take control of the victims’ bank accounts by calling the bank to change the addresses in the account and request replacement cards. He would use the newly issued ATM cards to withdraw funds for his personal use and benefit. Whenever the bank account owner was a female, co-defendant Erika Rosado-Matías would impersonate the bank account owner to request the change of address and replacement cards. The scheme caused substantial financial hardship to more than 12 victims.
Colón-Santos was also sentenced for intimidating and threatening a 75-year old female by threatening her with physical harm if she in any manner provided information or testimony to law enforcement agents involved in the investigation of his fraudulent scheme. Judge Delgado-Colón indicated that this conduct was significantly reprehensible and warranted the severity of the sentence imposed.
“The prosecution of this case and the severity of this sentence should serve to reassure the public that we are paying close attention to the well-being of our elders, and that we will spare no expense to take fraudsters off the streets. Law enforcement will not stand by as criminals attempt to fleece a very vulnerable group of our community. These criminals are disrupting their lives by stealing their savings and destroying their credit through calculated and pervasive fraud schemes,” stated U.S. Attorney Rosa Emilia Rodríguez-Vélez. “I urge everyone to take steps to protect their personally identifiable information (PII) from criminals who seek illicit profits through fraudulent schemes.”
The criminal prosecution was handled by Assistant U.S. Attorney Dennise N. Longo-Quiñones. The investigation was conducted by the United States Postal Inspection Service with the assistance of Puerto Rico Police Department and Homeland Security Investigations.
Co-defendant Erika Yazmin Rosado-Matías plead guilty on July 31, 2018 and her sentencing is scheduled for October 22, 2108 before United States District Court Judge Aida Delgado-Colón.
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License Plate Reader Helped Identify Robbery SuspectRead the Press Release
TOPEKA, KAN. – A Topeka man was indicted in federal court Wednesday on a charge of robbing a Walgreens store, U.S. Attorney Stephen McAllister said.
Bill Oliver Chavez, 42, Topeka, Kan., is charged with one count of robbing a commercial business. The indictment alleges that on Sept. 13, 2018, Chavez robbed a Walgreens store at 3696 S.W. Topeka, Blvd.
Documents filed in court allege the lifted his shirt and showed the cashier what appeared to be the butt of a gun. The cashier emptied the register and the robber left the store with the money.
Surveillance video showed the robber was driving a four-door Nissan Maxima with a sunroof. An investigator used data from a license plate reader to help narrow the search for cars of the type in the video and owners who fit the description of the robber.
If convicted, Chavez faces a penalty of up to 20 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Lamar Ray Steele, 28, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The indictment alleges that on Sept. 29, 2018, Steele possessed a 9 mm handgun.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
John Wesley Towner, Jr., 30, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The indictment alleges that on Jan. 23, 2018, he possessed a 9 mm handgun.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Last Four Defendants Convicted in Multi-State Dog Fighting CaseRead the Press Release
A federal jury in Trenton, New Jersey convicted four defendants yesterday of violating the animal fighting prohibitions of the federal Animal Welfare Act. The jury deliberated six hours following a nearly four-week long trial before U.S. District Judge Peter G. Sheridan. The four defendants convicted yesterday are the last to be adjudicated in this case, which is part of Operation Grand Champion, an ongoing multi-state dog fighting investigation. The defendants are Justin Love of Sewell, New Jersey; Robert A. Elliott, Sr. of Millville, New Jersey; Dajwan Ware of Fort Wayne, Indiana; and Robert Arellano of Albuquerque, New Mexico.
Each count of conviction carries a maximum of five years in prison and a criminal fine of up to $250,000. The defendants will be sentenced on Feb. 20, 2019. Five other defendants in the case previously pleaded guilty to dog fighting and firearms charges and were sentenced to a total of 153 months in prison.
The jury convicted four defendants of engaging in a conspiracy to sponsor and exhibit dogs in animal fighting ventures and to buy, sell, possess, train, transport, deliver and receive dogs for purposes of having the dogs participate in animal fighting ventures. They also found defendants Love and Arellano guilty of unlawfully trafficking in fighting dogs and defendants Love and Elliott of unlawfully possessing fighting dogs.
The evidence at trial established that Arellano sold and shipped two fighting dogs to Love and co-conspirator Anthony “Monte” Gaines by air cargo in December 2014. One of those dogs was subsequently fought in a “roll” or test fight the following day, and sustained a serious injury. Gaines also transported a fighting dog named “Bubbles” to Dajwan Ware in order to hide her from law enforcement after local authorities in New Jersey located Gaines’s dog fighting yard. For his part, Elliott, Sr., housed a fighting dog named “Fancy” on behalf of Gaines and co-conspirator Frank Nichols, and possessed twelve fighting dogs of his own.
“Under the leadership of Attorney General Sessions, our Division is aggressively pursuing those who engage in the cruel and brutal practice of dog fighting, which is often linked with many forms of violent and organized criminal activity,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “Yesterday’s four convictions demonstrate our firm commitment to fight back against those who would abuse these animals, in clear violation of federal law, to satiate bloodthirsty spectators and gamblers. I applaud the law enforcement officers and prosecutors who worked tirelessly to deliver justice in these cases.”
“Dog fighting is vicious and cruel. And beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” said U.S. Attorney Carpenito. “The message from these convictions is simple: if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“This is a great example of interagency cooperation — in this case USDA and Cherry Hill HSI — stopping a barbaric practice that permanently damages and often kills dogs,” said Brian Michael, Special Agent in Charge, HSI Newark. “Those who engage in this heinous activity should know that they face serious legal consequences.”
The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 123 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The case was prosecuted by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General; Homeland Security Investigations, Cherry Hill Office; and the Federal Bureau of Investigation.
Las Vegas Man Sentenced for Disorderly Conduct at Federal CourthouseRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident who created multiple disturbances at the Lloyd D. George Federal Courthouse after he refused to follow Court Security Officer orders was found guilty and sentenced Tuesday, announced U.S. Attorney Dayle Elieson for the District of Nevada and U.S. Marshal Gary Schofield for the District of Nevada.
Following a bench trial, Joshua Martinez, 30, was found guilty of one count of creating a disturbance on federal property and he was immediately sentenced by U.S. Magistrate Judge George Foley Jr. to a one year stay away order from the Courthouse, a $500 fine, and two days of credit for time he spent in custody.
Between February 2017 and August 2018, Martinez created disturbances at the Federal Courthouse located in Downtown Las Vegas on multiple occasions. Martinez had previously been arrested at the Courthouse on two occasions because of his disruptive behavior. He was also told to leave the premises two times prior for failing to comply with Courthouse regulations. During these incidents, he created a disturbance by loitering, shouting at Court Security Officers, filming inside the Courthouse, obstructing use of the Courthouse entrance, and impeding and disrupting the performance of official duties by Government employees. Filming inside the Courthouse is prohibited per a Court Order. On August 1, 2018, Martinez attempted to gain access to the Courthouse. He was asked to leave due to his prior disruptive behavior. Martinez refused to comply with the Courthouse Security Officers’ orders and yelled derogatory terms at the officers. His actions disrupted Courthouse personnel duties, and ultimately led to his arrest and conviction.
The case was investigated by the U.S. Marshals Service. Assistant U.S. Attorneys Kilby Macfadden and Chad McHenry prosecuted the case.
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Las Vegas Man Convicted of Production of Child Pornography and Possession of Hundreds of Images and Videos of Child PornographyRead the Press Release
LAS VEGAS, Nev. – Following a three-day trial, Lonny Joseph DiTirro Jr. was found guilty of sexually exploiting children by producing child pornography and possessing hundreds of images and videos of child pornography, including infants and toddlers, announced U.S. Attorney Dayle Elieson for the District of Nevada.
A jury convicted DiTirro, 36, of Las Vegas, of four counts of sexual exploitation of children by producing child pornography and one count of possession of child pornography. United States District Judge Kent J. Dawson presided over the jury trial and scheduled sentencing for February 6, 2019.
According to evidence presented at trial, on September 10, 2015, Las Vegas Metropolitan Police Department Officers received a concerned citizen’s report of possible child exploitation. The responding officers conducted an interview with the concerned citizen who stated she found a SD card belonging to DiTirro that contained child pornography. Law enforcement later executed a search warrant on the SD card. A forensic examination of the SD card revealed 254 images and 42 videos of child pornography, depicting infants, toddlers, and sadomasochism/violence.
The SD Card also contained over 50 folders bearing the names and ages of minor females that contained nude photos and videos of the minors. Law enforcement identified several victims who all testified that they met DiTirro on a social media/dating application called MeetMe when they were under the age of 16. The victims further testified that DiTirro lied to the victims about his age, claiming he was a teenager or in his 20s, and went as far as falsifying his birth certificate in an effort to coerce, entice, and induce the victims into various sexual activities. Evidence presented at trial showed that DiTirro recorded sex acts with the minor victims, and that he created screenshots of sexually explicit Skype video chats of the victims. DiTirro catalogued these videos and screenshots on the SD Card.
The maximum possible statutory penalty is 140 years imprisonment.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Christopher Burton are prosecuting the case.
Investigation concerning other potential victims in this case is ongoing. If you have information about DiTirro or believe you or someone you know may have been a victim, you are encouraged to contact the nearest FBI field office, local law enforcement, or the National Center for Missing & Exploited Children’s (NCMEC) CyberTipline at www.cybertipline.org.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Las Cruces Man Arrested for High-Speed Flight from U.S. Border Patrol CheckpointRead the Press Release
ALBUQUERQUE – Cody Payton, 25, of Las Cruces, N.M., made his initial appearance today in federal court on a criminal complaint charging him with fleeing from a U.S. Border Patrol checkpoint at a high rate of speed. Payton remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for Oct. 22, 2018.
Border Patrol agents arrested Payton in the early hours of Oct. 15, 2018, after he entered and allegedly fled from the U.S. Border Patrol checkpoint on Interstate 25 in Doña Ana County, N.M. According to the criminal complaint, after Payton drove into the checkpoint, Border Patrol agents directed him to a secondary inspection area based on Payton’s allegedly unusual behavior and hesitant responses while in the checkpoint’s primary inspection area. Payton allegedly disregarded agents’ directions and allegedly drove away from the checkpoint, leading agents in a high-speed pursuit. Agents arrested Payton approximately an hour after he allegedly fled from the immigration checkpoint.
The statutory penalty for a conviction on a high-speed flight from an immigration checkpoint charge is a maximum of five years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorney Nicole Hammond of the U.S. Attorney’s Las Cruces Branch Office.
Justice Department Smashes Records for Violent Crime, Gun Crime, Illegal Immigration Prosecutions; Increases Drug and White Collar Crime ProsecutionsRead the Press Release
U.S. Attorney Trent Shores announced today that the Northern District of Oklahoma increased prosecution of violent crime and firearms defendants by more than 100 percent in Fiscal Year (FY) 2018 when compared to FY 2017. The increased prosecutions have shown promising results across Tulsa, with 36 fewer homicides in FY 2018 when compared to FY 2017. Across the nation, under the leadership of Attorney General Jeff Sessions, the Department of Justice charged the largest number of violent crime and firearm defendants in its history in Fiscal Year (FY) 2018.
“President Donald Trump is a law-and-order President—and this is a law-and-order administration,” said Attorney General Jeff Sessions. “The Department of Justice is breaking law enforcement records and doing so by significant margins. When I took office as Attorney General, I ordered federal prosecutors and agents to take illegal guns off of our streets, to prosecute crimes aggressively, to protect our nation’s borders, and to target white collar fraud. With support from our state and local partners, our federal prosecutors and agents have delivered—and I am grateful to them and the fabulous state and local officers who worked so hard to make these achievements possible. And we are seeing results. Violent crime and homicides, which jumped in 2015 and 2016, both dropped in 2017 and will drop again in 2018. There can be no doubt that good law enforcement policies can make our communities safer.”
“The men and women of the United States Attorney’s Office are working diligently to protect the citizens of the Northern District of Oklahoma. We are specifically focused on targeted crime reduction, not simply increasing prosecution numbers. We are partnering with state, local, and tribal law enforcement officials to target those criminals posing the greatest threats to our community,” stated U.S. Attorney Trent Shores. “Collaborative law enforcement is good law enforcement. That includes participation of citizens in community policing as well as community engagement by justice officials. Whether violent crime, drug trafficking, or white collar crime, federal prosecutors in northeastern Oklahoma stand ready to act. I am proud of the selfless efforts of all the public servants who work in law enforcement and the justice arena. Criminals should be on notice that we will hold them accountable when they run afoul of the law in northeastern Oklahoma.”
According to data from the Executive Office of United States Attorneys (EOUSA), the number of defendants charged with criminal felony offenses increased by nearly 15 percent from more than 71,200 defendants in FY 2017 to more than 81,800 in FY 2018.
In FY 2018, the Justice Department charged the largest number of violent crime defendants since EOUSA started to track this category more than 25 years ago (more than 16,800)—surpassing by nearly 15 percent the previous record set just last year.
In FY 2018, the Justice Department charged more than 15,300 defendants with federal firearms offenses, which is 17 percent more than the previous record.
In FY 2018, over 23,400 defendants were charged with felony illegal re-entry, an increase of more than 38 percent from FY 2017.
In FY 2018, over 23,600 defendants were charged with drug-related offenses, an increase of more than six percent from FY 2017.
Also in FY 2018, the Justice Department increased white-collar prosecutions by more than three percent, charging more than 6,500 defendants.
Finally, in FY 2018, more than 68,400 defendants were charged with misdemeanor illegal entry. This is the highest number of such defendants charged since EOUSA started to track this category and an almost 86 percent increase from the previous year. This total is also more than 4 percent higher than the previous record of over 65,500 defendants set in FY 2013
Justice Department Smashes Records for Violent Crime, Gun Crime, Illegal Immigration Prosecutions, Increases Drug and White Collar ProsecutionsRead the Press Release
Under the leadership of Attorney General Jeff Sessions, the Department of Justice charged the largest number of violent crime and firearm defendants in its history in Fiscal Year (FY) 2018.
“President Donald Trump is a law-and-order President—and this is a law-and-order administration,” said Attorney General Jeff Sessions. “The Department of Justice is breaking law enforcement records and doing so by significant margins. When I took office as Attorney General, I ordered federal prosecutors and agents to take illegal guns off of our streets, to prosecute crimes aggressively, to protect our nation’s borders, and to target white collar fraud. With support from our state and local partners, our federal prosecutors and agents have delivered—and I am grateful to them and the fabulous state and local officers who worked so hard to make these achievements possible. And we are seeing results. Violent crime and homicides, which jumped in 2015 and 2016, both dropped in 2017 and will drop again in 2018. There can be no doubt that good law enforcement policies can make our communities safer.”
According to data from the Executive Office for United States Attorneys (EOUSA), the number of defendants charged with criminal felony offenses increased by nearly 15 percent from more than 71,200 defendants in FY 2017 to more than 81,800 in FY 2018.
In FY 2018, the Justice Department charged the largest number of violent crime defendants since EOUSA started to track this category more than 25 years ago (more than 16,800)—surpassing by nearly 15 percent the previous record set just last year.
In FY 2018, the Justice Department charged more than 15,300 defendants with federal firearms offenses, which is 17 percent more than the previous record.
In FY 2018, over 23,400 defendants were charged with felony illegal re-entry, an increase of more than 38 percent from FY 2017.
In FY 2018, over 23,600 defendants were charged with drug-related offenses, an increase of more than six percent from FY 2017.
Also in FY 2018, the Justice Department increased white-collar prosecutions by more than three percent, charging more than 6,500 defendants.
Finally, in FY 2018, more than 68,400 defendants were charged with misdemeanor illegal entry. This is the highest number of such defendants charged since EOUSA started to track this category and an almost 86 percent increase from the previous year. This total is also more than 4 percent higher than the previous record of over 65,500 defendants set in FY 2013.
Jackson Man Sentenced to over 16 Years Under Project EJECT for Illegally Possessing a Firearm as a Prior Convicted FelonRead the Press Release
Jackson, Miss. – Deonte Terrell Proctor, 33, of Jackson, was sentenced by Senior U.S. District Judge William H. Barbour, Jr., to 195-months in federal prison, followed by 3 years of supervised release, for illegal possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On December 2, 2016, members of the Jackson Police Department served a search warrant on Archer Avenue in Jackson. During the execution of the search warrant, Deonte Terrell Proctor attempted to flee in his car, nearly running over a JPD detective. Proctor then crashed into a ditch and attempted to flee on foot. Proctor threw a firearm into some bushes, but it was later recovered. Proctor subsequently admitted to police that the firearm was his.
Proctor is a convicted felon, having been previously convicted in the Circuit Court of Hinds County for the following felony offenses: receiving stolen goods, felon with firearm, and multiple felony offenses for possession of cocaine and the sale of cocaine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Mississippi Bureau of Narcotics, and the Jackson Police Department. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Jackson County Gang Member Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – James Edward Hays, 34, of Vancleave, entered a guilty plea yesterday, before U.S. District Judge Sul Ozerden, to possession of a firearm by a felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hays, a Simon City Royal gang member, faces a maximum of 10 years in prison on the charge. He further faces a fine of $250,000 along with 3 years of supervised release. Sentencing is set for January 18, 2019, at 9:00 a.m.
On April 25, 2018, the Jackson County Sheriff’s Office responded to a call of a person passed out behind the wheel of a running car at a gas station. Deputies found Hays, a three-time convicted felon, with methamphetamine, heroin and a loaded gun.
The Jackson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is prosecuted by Assistant United States Attorney Annette Williams.
Inmate Charged with Possession of A WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Peter Mastin, age 26, an inmate at the Federal Correctional Institute at Schuylkill, Pennsylvania, was indicted by a federal grand jury for possession of a weapon.
According to United States Attorney David J. Freed, the indictment alleges that on June 24, 2018, Mastin possessed a seven-inch metal weapon sharpened to a point, commonly known as a “shank.”
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigations (FBI). Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
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.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Illegal Alien Who Used Another Person’s Social Security Number Sentenced to PrisonRead the Press Release
A woman who used another person’s Social Security number to get a job was sentenced today to almost two months in federal prison.
Glenda Alvarado, age 30, a citizen of El Salvador illegally present in the United States and living in Waterloo, Iowa, received the prison term after a September 4, 2018, guilty plea to one count of misuse of a social security number.
In a plea agreement, Alvarado admitted she illegally entered the United States in July 2016, and on October 13, 2016, she used another person’s Social Security number when she completed a W-4 tax form and other employment documents at a business in Waterloo, Iowa. She also used a fraudulent permanent resident card, also known as a “green card,” when she completed the employment forms. The Alien Registration number on the “green card” had been issued to another person.
Alvarado was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Alvarado was sentenced to 55 days’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Alvarado is being held in the United States Marshal’s custody until she can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2044-CJW. Follow us on Twitter @USAO_NDIA.
ICE most wanted illegal alien living in Church Point arrested for re-entering country after deportationRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that Jose Melchor Martinez, 48, a resident of Church Point and a citizen of Mexico, has been arrested after being charged by a federal criminal complaint in U.S. District Court with re-entry of a removed alien.
According to the criminal complaint filed on October 12, 2018, Martinez illegally re-entered the United States after being deported on September 6, 2003, and had not received permission from the U.S. Attorney General or the Secretary of the Department of Homeland Security to re-enter. According to U.S. Immigrations and Customs Enforcement, Martinez is considered to be one of their most wanted fugitives. For more information, see www.ice.gov/most-wanted/martinez-jose-melchor.
The defendant faces up to 20 years in prison, a $250,000 fine, and up to three years of supervised release if convicted.
The case was investigated by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant United States Attorney David J. Ayo.
This matter will proceed in United States District Court in Lafayette, where the complaint is currently pending. A complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal grand jury within 30 days. Once a grand jury returns an indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
Hogansburg Man Sentenced for Possession of Contraband CigarettesRead 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 Ian Tarbell, 46, of Hogansburg, NY, who was convicted of possession of contraband cigarettes, was sentenced to 15 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant was arrested on February 18, 2016, in Pembroke, NY, following a traffic stop by the Genesee County Sheriff’s Office. Tarbell was driving a truck that was pulling a trailer loaded with untaxed and unstamped cigarettes. In total, the defendant was transporting more than 900,000 unstamped and untaxed cigarettes. The New York State and Federal taxes imposed on such cigarettes would have totaled more than $300,000.
Today’s sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict; the Genesee County Sheriff’s Office, under the direction of William A. Sheron, Jr.; and the New York State Department of Taxation and Finance, under the direction of Commissioner Thomas Mattox.
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Hedge Fund Manager Pleads Guilty to Operating Multi-Million Dollar Ponzi SchemeRead the Press Release
BOSTON – A Boston-area hedge fund manager pleaded guilty today in federal court in Boston to running a multi-million dollar Ponzi scheme.
Raymond K. Montoya, 70, of Allston, pleaded guilty to three counts of wire fraud, five counts of mail fraud, and two counts of conducting an unlawful monetary transaction. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 22, 2019. Montoya was charged by a criminal complaint and arrested in August 2017.
Between 2009 and June 2017, Montoya ran a pooled investment hedge fund in Boston called RMA Strategic Opportunity Fund, LLC. Montoya falsely told his investors—including his family, friends, and acquaintances who resided in Massachusetts, Ohio, and California—that the fund was earning substantial returns, when in fact, by 2014, the RMA Fund was sustaining substantial losses. The investors transferred millions of dollars of their personal savings and 401(k) retirement plans to Montoya and the RMA Fund. Montoya told the investors that he would invest their money in stocks and bonds, but he actually invested only a portion of their money, while diverting the rest—totaling millions of dollars—to business and personal bank accounts. Montoya used the diverted money for personal expenses such as luxury vehicles and the mortgage on his son’s residence.
Montoya was previously charged with securities fraud in a civil complaint by the Massachusetts Securities Division.
The charges of mail fraud and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or gross loss from the offense, restitution and forfeiture. The charge of conducting unlawful monetary transactions provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. 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. The Massachusetts Securities Division provided valuable assistance. Assistant U.S. Attorney Neil J. Gallagher Jr. of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Hartford Man Sentenced to 37 Months in Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAFAEL GARCIA, 28, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matters stems from a DEA Hartford Task Force investigation of a heroin trafficking organization that was operating in Connecticut, Massachusetts, New York and the Dominican Republic. The investigation, which included court-authorized wiretaps, revealed that members of the organization distributed heroin and fentanyl from the Katty Grocery store located at 584 Franklin Avenue in Hartford. The investigation also revealed that certain members of the organization stored a significant amount of narcotics in a house on Whitmore Street in Hartford’s South End. Investigators identified GARCIA as a narcotics distributor who obtained large quantities of heroin/fentanyl from members of the organization.
On January 20, 2017, investigators stopped GARCIA’s car as he drove away from the Whitmore Street stash house. During the stop, investigators seized a bag containing approximately 20 grams of fentanyl. GARCIA was arrested on state charges at that time.
On April 27, 2017, a grand jury returned an indictment charging GARCIA and nine other individuals with various heroin trafficking offenses. GARCIA was arrested federally on May 10, 2017. On May 30, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RASCELL LEGGETT, 31, Hartford, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of possession of firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on June 22, 2011, Leggett was sentenced in New Haven federal court to 60 months of imprisonment, followed by three years of supervised release, for distributing marijuana and crack cocaine in Hartford. He was released from federal prison in February 2015. Leggett subsequently violated the conditions of his supervised release and, in June 2016, was sentenced to an additional four months of imprisonment, followed by two years and eight months of imprisonment. He was released from federal prison in November 2016.
In August 2017, Leggett was arrested by Hartford Police and charged with illegal operation of a motor vehicle while under the influence of alcohol and illegal operation of a motor vehicle under suspension. Leggett subsequently failed to appear for a federal supervised release violation hearing on November 6, 2017.
On December 18, 2017, investigators arrested Leggett after they stopped a vehicle he was operating on Albany Avenue in Hartford. A search of the car revealed 148 bags of heroin, a Ruger 9mm pistol loaded with 14 rounds of ammunition, and $655 in cash. A search of Leggett’s person revealed approximately four grams of crack cocaine. At the time of his arrest, Leggett also had an active Hartford Police arrest warrant for attempted first degree assault with a firearm, criminal possession of a weapon, and risk if injury to a minor.
Leggett has been detained since his arrest.
Judge Hall scheduled sentencing for January 10, 2019, at which time Leggett faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life. Leggett also faces supervised release violation proceedings.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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 neighborhoods safer for everyone.
Habitual Domestic Violence Offender Sentenced to Federal Prison for AssaultRead the Press Release
DURANGO – Bryan Ace Ponzo, age 36, from the Ute Mountain Ute Indian Reservation surrounding Towaoc, was recently sentenced to serve 129 months in federal prison by Senior U.S. District Court Judge Robert E. Blackburn for assault with a dangerous weapon, U.S. Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers and the U.S. Bureau of Indian Affairs announced. In addition to pleading guilty to witness tampering, Judge West found Ponzo guilty beyond a reasonable of six contempt charges, ordering an additional 24 months imprisonment. In total, Ponzo will serve 153 months imprisonment. Ponzo and his victim are enrolled members of the Ute Mountain Ute Indian Tribe. According to the public record, Ponzo has an extensive state and tribal criminal history, including numerous assault and domestic violence related offenses.
Ponzo was indicted by a federal grand jury on October 6, 2017. The indictment was superseded by an Information on March 15, 2018. He pled guilty before Judge Blackburn on that same date. He was sentenced on October 9, 2018.
According to the stipulated facts contained in the plea agreement, Ponzo and his wife resided on the Ute Mountain Ute Reservation. On the morning of November 2, 2016, Ponzo and his wife had an argument. He had looked through her Facebook account and questioned her about male friends. During this time, Ponzo grabbed his wife from the couch and forced her to shower. Ponzo then sexually assaulted her on the bed. After Ponzo sexually assaulted his wife, he pulled her off the bed and she hit her head on the floor. Ponzo then went to the closet, grabbed brass knuckles, and threatened his wife with the brass knuckles. Law enforcement accompanied the wife to a hospital in Utah that afternoon, where her injuries were diagnosed and documented.
During the case, Magistrate Judge West issued a No Contact Order holding that Ponzo could not contact his victim directly or indirectly. While in pre-trial custody at La Plata County Detention Facility, Ponzo dialed his wife’s number at least 1,749 times in an attempt to influence her trial testimony. In these recorded calls, Ponzo repeatedly blamed his wife and instructed her to “fix it.”
This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation. The defendant was prosecuted by Assistant U.S. Attorneys Jason St. Julien and Jeffrey Graves.
Gun Crime Draws Hard Time for Convicted FelonRead the Press Release
SAVANNAH, GA: A career criminal with a violent history will spend nearly nine years in federal prison after sentencing this week for carrying a stolen pistol.
U.S. District Court Judge Lisa Godbey Wood sentenced Joseph Price, 33, to 105 months in federal prison after being convicted of Possession of a Stolen Firearm, said Southern District U.S. Attorney Bobby L. Christine. After completion of his sentence, Price will serve three additional years of supervised release. There is no parole in the federal system.
Price was a passenger in a vehicle stopped for speeding in January 2017. While a Savannah police officer spoke to the driver outside the vehicle, Price attempted to drive away. When Price refused to stop, the officer used a Taser to subdue him. A firearm discovered during a search of the vehicle was determined to have been stolen, and Price, a convicted felon, admitted he had purchased the weapon.
Price has a criminal history dating back more than 15 years, including a previous traffic stop involving a stolen firearm, participating in a prison riot, and drug convictions.
“Working with law enforcement and other prosecutors through the U.S. Justice Department’s Project Safe Neighborhood’s program, our office will continue to remove violent felons from our community,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Career criminals who carry guns are a threat to the safety of our neighborhoods, and they will get hard time in federal prison.”
The Savannah Police Department conducted the traffic stop and subsequent investigation. Assistant United States Attorneys Greg Gilluly, Tania D. Groover, and Matt Josephson represented the United States in the prosecution.
For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.
Guatemalan Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Mario Navarijo Orantes, age 52, and a citizen of Guatemala, was sentenced today to time served (133 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Navarijo Orantes was removed from the United States to Guatemala on November 27, 1991 and again on October 5, 1999. On June 6, 2018, he was arrested by a Border Patrol Agent near Champlain, New York, after he illegally entered the United States from Canada by walking across the border approximately one mile east of the Overton Corners Port of Entry. Navarijo Orantes admitted that he returned to the United States without permission following the prior removals. Navarijo Orantes claimed to have been residing in Bethlehem, Pennsylvania, since 2000.
Following the sentencing, Navarijo Orantes was remanded to the custody of the Department of Homeland Security, for removal proceedings.
In a related case, on October 5, 2018, Carlos Figueroa Rivas, of Allentown, Pennsylvania, pled guilty to the felony offense of encouraging and inducing the illegal entry of an alien (Mario Navarijo Orantes). He is scheduled to be sentenced on February 6, 2019.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Gang Leader Convicted of Racketeering and Related Offenses, Including Attempted Murder in Subway StationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL WHITE, a leader of two violent street gangs, “MBG,” and the “Young Gunnaz,” was convicted of racketeering conspiracy, attempted murder and assault with a deadly weapon in aid of racketeering, and a firearms offense. WHITE was convicted following a two-week trial before U.S. District Judge Robert W. Sweet.
U.S. Attorney Geoffrey S. Berman said: “Michael White, a leader of two gangs, committed a spree of shootings in and around New York City Housing Authority’s Mill Brook Houses. He shot rival gang members in front of a public school, in a community center, and in a subway station. Now he stands convicted for his crimes. We thank the New York City Police Department and the Drug Enforcement Administration for their tireless efforts to secure this important conviction.”
According to the evidence presented in court during the trial:
From 2007 through October 2017, WHITE was a member of MBG, also known as “Money Bitches Guns,” a local gang based in the Mill Brook Houses. From 2010 through October 2017, WHITE was a member of the Young Gunnaz set of the YGz gang also based in the Mill Brook Houses. As part of his membership in both gangs, WHITE shot seven people. Specifically, on January 25, 2010, WHITE shot and injured a 16-year-old rival on a street corner in the Mill Brook Houses. On January 31, 2010, WHITE shot and injured an 18-year-old rival at a baby shower. Later on January 31, 2010, WHITE shot a rival gang member near a building in the Mill Brook Houses, causing the individual to suffer life threatening injuries. On February 12, 2010, WHITE shot and injured an 18-year-old rival outside a public school. On October 28, 2012, WHITE shot and injured three individuals in the Cypress Avenue Subway Station.
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WHITE, 30, of the Bronx, New York, was convicted of two counts of racketeering conspiracy, each of which carries a maximum sentence of 20 years in prison; one count of violent crime in aid of racketeering, which carries a maximum sentence of 20 years in prison; and one count of use of a firearm during a violent crime, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the New York City Police Department and the Drug Enforcement Administration.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Gina Castellano, and Alexandra Rothman are in charge of the prosecution.
Fourteen indicted on drug distribution and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Fourteen West Virginia, Maryland, and Virginia residents are facing multiple drug and firearms charges after being indicted by a federal grand jury sitting in Wheeling on October 3, 2018, United States Attorney Bill Powell announced.
The 28-count indictment alleges a conspiracy to distribute methamphetamine in Mineral, Hardy, Hampshire Counties, and elsewhere from August 2017 to June 2018, as well as multiple firearms offenses. Those named in the indictment are:
• Nathan E. Carpenter, age 28, of Elk Garden, West Virginia
• Michael Corey Alt, age 34, of Elk Garden, West Virginia
• Corey Bircher, age 25, of Elk Garden, West Virginia
• Tyler Allen Whitacre, age 25, of Elk Garden, West Virginia
• Michael Lee Gray, II, age 287, of Marshall, Virginia
• Brittany Baker, age 22, of Elk Garden, West Virginia
• Phillip Ryan Williams, age 24, of McCool, Maryland
• Levi Doman, age 31, of Keyser, West Virginia
• Joseph Nathaniel Hagan, 35, of Petersburg, West Virginia
• Gypsy Rene Winkler, 19, of Keyser, West Virginia
• Michael Dwayne Cosner, 39, of Elk Garden, West Virginia
• Bryan Keith Presgraves, II, 20, of Luray, Virginia
• Steve William Gray, age 38, of Luray, Virginia
• Chance Allen Good, age 25, of Stanley, VirginiaDuring the investigation, more than $14,000 was seized, along with four firearms, a set of brass knuckles, a money counter, a security system, a street bike, and a piece of property on Elk Garden Highway in Elk Garden, West Virginia.
“Every day, we see individuals who apparently still believe that they are above the law. They are not, and my office will relentlessly pursue and prosecute them. Firearms are often involved with these criminal activities, and our law enforcement partners and citizens are consequently at even greater risk. We will use all of our resources to prosecute those who continue to pose a danger to law enforcement and our communities,” said Powell.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Defendants Convicted in Multi-State Dog Fighting Case After Three-Week Jury TrialRead the Press Release
New Jersey, New Mexico, and Indiana Defendants Convicted As Part of Operation Grand Champion
TRENTON, N.J. – Four men were convicted at trial in connection with their respective roles in a multi-state dog fighting operation, U.S. Attorney Craig Carpenito and Assistant Attorney General Jeffrey Clark of the Justice Department’s Environment and Natural Resources Division announced today.
Justin Love, 38, of Sewell, New Jersey; Robert A. Elliott Sr., 49, of Millville, New Jersey; Dajwan Ware, 45, of Fort Wayne, Indiana; and Robert Arellano, 64, of Albuquerque, New Mexico, were convicted Oct. 16, 2018, of engaging in a conspiracy to sponsor and exhibit dogs in animal fighting ventures and to buy, sell, possess, train, transport, deliver and receive dogs for purposes of having the dogs participate in animal fighting ventures. The jury also found Love and Arellano guilty of unlawfully trafficking in fighting dogs and defendants Love and Elliott of unlawfully possessing fighting dogs. The jury deliberated six hours following a three-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The four defendants convicted today are the last to be adjudicated in this case, which is part of Operation Grand Champion, an ongoing multi-state dog fighting investigation.
“Dog fighting is vicious and cruel. And beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “The message from these convictions is simple: if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Under the leadership of Attorney General Sessions, our Division is aggressively pursuing those who engage in the cruel and brutal practice of dog fighting, which is often linked with many forms of violent and organized criminal activity,” Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division said. “Yesterday’s four convictions demonstrate our firm commitment to fight back against those who would abuse these animals, in clear violation of federal law, to satiate bloodthirsty spectators and gamblers. I applaud the law enforcement officers and prosecutors who worked tirelessly to deliver justice in these cases.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures,” Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“This is a great example of interagency cooperation—in this case USDA and Cherry Hill HSI—stopping a barbaric practice that permanently damages and often kills dogs,” said Brian Michael, Special Agent in Charge, HSI Newark. “Those who engage in this heinous activity should know that they face serious legal consequences.”
According to documents filed in this case and the evidence at trial:Arellano sold and shipped two fighting dogs to Love and conspirator Anthony “Monte” Gaines by air cargo in December 2014. One of those dogs was subsequently fought in a “roll” or test fight the following day, and sustained a serious injury. Gaines also transported a fighting dog named “Bubbles” to Dajwan Ware in order to hide her from law enforcement after local authorities in New Jersey located Gaines’s dog fighting yard. Elliott Sr. housed a fighting dog named “Fancy” on behalf of Gaines and conspirator Frank Nichols, and possessed 12 fighting dogs of his own.
The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 123 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government.
Each conviction carries a maximum of five years in prison and a criminal fine of up to $250,000. Five other defendants in the case previously pleaded guilty to dog fighting and firearms charges and have been sentenced. Sentencing is scheduled for Feb. 20, 2019.
U.S. Attorney Carpenito and Assistant Attorney General Clark credited special agents of the U.S. Department of Agriculture – Office of Inspector General; the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the U.S. Attorney’s Office in Newark and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.
Defense counsel:
Arellano: Samuel Bregman Esq., Albuquerque, New Mexico
Elliott: Ronald Thompson Esq., Sicklerville, New Jersey
Love: Wayne Powell Esq., Cherry Hill, New Jersey
Ware: Thomas Ambrosio Esq., Lyndhurst, New JerseyFormer Southaven Alderman Sentenced for Transportation of Child PornographyRead the Press Release
Oxford, Miss. – Ronald W. Hale, a former Alderman for the City of Southaven was sentenced Wednesday morning to 85 months imprisonment for transportation of child pornography, announced U.S. Attorney for the Northern District of Mississippi William C. Lamar, Special Agent in Charge of the FBI in Mississippi Christopher Freeze, and DeSoto County Sheriff Bill Rasco.
Hale pled guilty on April 2, 2018, to knowingly using a means of interstate or foreign commerce to transport or ship a visual depiction involving a minor engaged in sexually explicit conduct in violation of Title 18, United States Code, Sections 2252(1)(a). In sentencing Hale on Wednesday, Chief U.S. District Judge Sharion Aycock also ordered Hale to serve 5 years of supervised release following the term of imprisonment, and to pay $3,500 in restitution to a victim of the crime.
Following the sentencing hearing, U.S. Attorney Lamar noted, “There is sometimes a misconception that child pornography is a victimless crime and that no one is injured by those who merely view or exchange it. This could not be further from the truth. Every day, there are children in our country who are victimized and tortured by those individuals who use them to produce, record and distribute graphic sexual images as a means of pleasure or entertainment. Individuals who choose to view and transport those images provide a market for these unconscionable and illegal acts, and re-victimize those children each time it is shared or viewed. We must continue to protect these vulnerable child victims by holding accountable those who produce, distribute or view child pornography.”
The case was investigated by the FBI Jackson Division’s Southaven Resident Agency and DeSoto County Sheriff’s Department, with assistance from the Southaven Police Department. The case was prosecuted by AUSA Paul Roberts in the U.S. Attorney’s Office for the Northern District of Mississippi.
Former Porterville Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
FRESNO, Calif. —Leticia Bedolla, 39, of Porterville, pleaded guilty today to aiding and assisting in the preparation and presentation of a false and fraudulent tax return, United States Attorney McGregor W. Scott announced.
According to court documents, Bedolla operated a tax preparation service called Leticia Tax Service, located in Porterville, California. Bedolla prepared and electronically filed tax returns with the Internal Revenue Service (IRS) on behalf of her customers. In finalizing the customers' federal income tax returns for electronic filing, Bedolla would sometimes fabricate amounts of deductions and deductible expenses without informing her customers she was doing so. In other instances, Bedolla would ask a general question about a customer's personal expenses and then mischaracterize the information on the customer's federal income tax return to improperly claim a deduction or tax credit. As a result of Bedolla's preparation and submission to the IRS of false and fraudulent federal income tax returns, Bedolla caused her customers to claim tax deductions and credits to which the customers were not entitled. This resulted in the IRS paying out excessive refunds to Bedolla's customers or not collecting additional tax that would have been due and owing from Bedolla's customers. Bedolla's conduct resulted in a tax loss to the IRS of approximately $105,747.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigations Division. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Bedolla is scheduled to be sentenced by Judge Dale A. Drozd on February 4, 2019. Bedolla faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Owner of Plastics Recycling Company Sentenced to Four Years in Prison for Tax Evasion SchemeRead the Press Release
WASHINGTON – Michael Sang Han, 47, formerly of Palm Beach, Fla., was sentenced today to four years in prison following his conviction in a multi-million dollar tax evasion scheme.
The announcement was made by U.S. Attorney Jessie K. Liu, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Matthew J. DeSarno Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Acting Special Agent in Charge Kelly R Jackson of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Han was found guilty by a jury on May 9, 2018, of two counts of tax evasion for evading paying millions of dollars in taxes in 2010 and 2011. The verdict followed a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. In addition to the prison term, Han was ordered to pay $4,954,027 to the IRS. Following his prison term, he will be placed on three years of supervised release.
According to the evidence introduced at trial and statements made in court, Han owned and operated Envion, a company that he claimed held the patents on technology used to convert plastics into fuel oil. Beginning as early as 2004, Han convinced two individuals to invest nearly $40 million in his company, then used more than $17 million of that money to fund a lavish personal lifestyle. Between 2004 and 2011, Han used millions of dollars of investors’ money for personal expenditures, including flying in private jets, enjoying lavish meals and adult entertainment, and purchasing luxury cars. Specifically, in 2010 and 2011, Han used $3 million to purchase a West Palm Beach home, paid $2 million for extravagant renovations and internal decorations, and spent over $440,000 on multiple luxury cars, including BMWs, a Range Rover, and a Ferrari. Han also used millions of dollars of the investors’ money to replace money he took from Envion in previous years.
According to the government’s evidence at trial, Han also took steps to conceal his personal use of the investors’ money from his bookkeepers and tax preparers. As a result, he did not report any of the money he converted for his personal use on his 2010 and 2011 income tax returns, thereby evading more than $4 million in tax liability.
U.S. Attorney Liu, Principal Deputy Assistant Attorney General Zuckerman, Special Agent in Charge DeSarno, and Acting Special Agent in Charge Jackson commended the work of those who investigated the case from IRS Criminal Investigation and the FBI’s Washington Field Office. They also expressed appreciation for the work of Assistant U.S. Attorneys Derrick Williams and Denise Simmonds, of the U.S. Attorney’s Office for the District of Columbia, and Tax Division Trial Attorney Sarah Ranney, who prosecuted the case, as well as Paralegal Specialist Brittany Phillips, who provided assistance during the trial.
Former Omaha Tribal Chairman and Council Members SentencedRead the Press Release
United States Attorney Joseph P. Kelly announced today that former Omaha Tribal Council Chairman Amen Sheridan (age 57), and former Omaha Tribal Council members Mitchell Parker (age 70) and Jeff Miller (age 54) were sentenced on October 16, 2018, by United States District Court Judge Robert F. Rossiter, Jr. for their convictions of one count of conversion and misapplication of funds of a health care benefit program in violation of Title 18, United States Code, Section 669. Each of these defendants was sentenced to five years of probation and ordered to perform 200 hours of community service. In addition, these defendants were to pay restitution in the amount they each received. Amen Sheridan and Mitchell Parker were ordered to pay $13,404.44 apiece. Jeff Miller was ordered to pay $40,213.32.
According to the Indictment and Plea Agreements, the Omaha Tribe of Nebraska had filed Contract Disputes Act claims against the Indian Health Service, an agency of the United States Department of Health and Human Services. These claims were filed in 2005 and 2012, and concerned unpaid contract support costs covering the period of 1995-2011. The total amount of the claims was approximately $8.9 million. The Indictment alleges that the defendants converted and misapplied funds of a health care benefit program by paying and causing to be paid bonuses or incentives to themselves and several other tribal employees on account of the claim filings. These bonuses or incentives were paid in October of 2012 even though the claims against the Indian Health Service were not resolved and paid until late 2015. Funds used to pay the bonuses came from carryover funds from the fiscal year 2012 contract with IHS. These funds were supposed to be used for providing health care to members of the Omaha Tribe of Nebraska through the Carl T. Curtis Health Education Center.
Previously, five other former tribal council members and tribal employees were sentenced for their roles in this offense. Additionally, Doran Morris, Jr. has pleaded guilty and will be sentenced later in October.
This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General for the Department of Health and Human Services.
Former Microsoft Director of Sports Marketing Indicted for Five Counts of Wire FraudRead the Press Release
The former Director of Sports Marketing and Alliances at Microsoft was indicted today by a federal grand jury for five counts of wire fraud for his scheme to profit by stealing from Microsoft, announced U.S. Attorney Annette L. Hayes. JEFF TRAN, a/k/a TRUNG TRAN, 45 of Seattle, is alleged to have used his position at Microsoft to attempt to steal more than $1.5 million through the creation and submission of fraudulent invoices and the unauthorized use of other Microsoft assets. TRAN will be arraigned on the charges in U.S. District Court in Seattle in the next ten days.
According to the allegations in the indictment, TRAN oversaw Microsoft’s promotional relationship with the National Football League (NFL). The indictment alleges that in March 2017, TRAN caused a fraudulent $775,000 invoice to be issued to Microsoft, supposedly for services related to the 2017 Super Bowl. Tran caused the $775,000 payment from Microsoft to be routed through two Microsoft vendors and then to Tran’s personal bank account. Tran then attempted to cause Microsoft to make a second payment for $670,000, based on another fraudulent invoice. Tran intended to route that payment to a company Tran controlled. When Microsoft vendors became suspicious of Tran’s activity and reported the conduct to Microsoft, Tran destroyed electronic communications and told the vendors to lie to Microsoft about the $775,000 payment. After Microsoft confronted Tran, Tran returned the $775,000.
The indictment also alleges that Tran stole blocks of Super Bowl tickets belonging to Microsoft. Because of his position, Tran was responsible for determining which Microsoft employees would receive Microsoft Super Bowl tickets. However, instead of distributing all of the tickets to Microsoft employees, TRAN sold over 60 of the tickets through a ticket broker and pocketed more than $200,000.
Wire Fraud is punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.