Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 16 October 2018
New York Man Posed as Teen Girl Online, Tricked Children into Sending Him Nude PhotosRead the Press Release
JEFFERSON CITY, Mo. – A Binghamton, N.Y., man who posed online as a teenage girl pleaded guilty in federal court today to attempting to produce child pornography by tricking children – including three victims in Sedalia, Mo. – into sending him nude images of themselves.
Brandon David Cuddihe, 31, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to two counts of attempting to produce child pornography.
By pleading guilty today, Cuddihe admitted that he posed on Facebook as a 14-year-old girl named “Hannah Richards.” Using that false identity, he conversed with more than 150 people, many of whom were between 11 and 15 years of age. Three minors, including two 10-year-olds and a teenager, are from the Sedalia, Mo., area. The mother of one of those victims contacted the Sedalia Police Department when she learned that her 10-year-old daughter had sent nude photos and videos via Facebook Messenger.
Using the “Hannah Richards” Facebook account, Cuddihe told investigators, he would pick a random individual to befriend. Cuddihe would go through all of their friends and add a bunch of their friends to his friends list. If an individual accepted his friend request, then he would begin chatting with them through Facebook Messenger.
Under federal statutes, Cuddihe is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Sedalia, Mo., Police Department, the Binghamton, N.Y., Police Department, and the Broome County, N.Y., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
New York Man Pleads Guilty to Heroin, Fentanyl and Crack Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jamie Betances, a/k/a “Booger,” “Booga,” Buga,” “Ice,” 30, of Rochester, New York, pled guilty today in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Betances conspired with others to acquire heroin, fentanyl and crack in Rochester and to distribute it in Central Maine. The defendant was sent to Central Maine to distribute the drugs while residing with several Central Maine residents who were paid in heroin and crack for their participation.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life on supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Haven Man Sentenced to 10 Years in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTONIO GONZALEZ, 47, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Gonzalez and his brother, Bienvenido Gonzalez. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors in New Haven and elsewhere. The investigation resulted in federal charges against 23 individuals, including four other brothers of Antonio and Bienvenido Gonzalez.
Antonio Gonzalez, Bienvenido Gonzalez and several co-defendants were arrested on March 15, 2017. On that date, investigators seized a kilogram of heroin from a vehicle that a co-defendant had driven to a stash house used by Bienvenido Gonzalez, and more than 400 grams of heroin and $10,000 in cash from the stash house itself. Investigators also seized $1,500 from Antonio Gonzalez, and approximately $119,000 from a bank account in Puerto Rico connected to Antonio Gonzalez.
The investigation revealed that Bienvenido Gonzalez used the proceeds from the heroin trafficking enterprise to purchase a New Haven barbershop, fund a drag racing team, purchase roosters for cockfighting, gamble, and travel.
Antonio Gonzalez has been detained since his arrest. On January 18, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, one kilogram or more of heroin
Bienvenido Gonzalez pleaded guilty to the same charge and, on March 28, 2018, he was sentenced to 144 months of imprisonment.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Middle Georgia's U.S. Attorney Will Accompany Vice President Pence During Visit to Hurricane Damaged CommunitiesRead the Press Release
Albany, GA— The U.S. Attorney for the Middle District of Georgia, Charles Peeler, will join Vice President Michael Pence during his visit to Southwest Georgia on Tuesday, October 16. The Vice President is traveling to Georgia following Hurricane Michael, a historic storm that swept across the region on October 10-11. This comes a day after President Donald Trump visited the Middle District after declaring a federal State of Emergency in Georgia on October 11, opening up direct federal aid for communities. Both Macon and Albany, home to several key United States Department of Justice offices and courthouses serving the Middle District of Georgia, sustained varying levels of storm damage. There remains power outages and water boil alerts in the Middle District, hundreds of homes and businesses have structural damage, and state agricultural leaders are reporting extensive crop loss.
“My thoughts and prayers are with those people affected by Hurricane Michael,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “Southwest Georgia endured significant natural disasters in 2017, and it is another challenging road for us as we rebuild again. I am grateful to President Trump and Vice President Pence for supporting our recovery efforts quickly and decisively.”
“I want to applaud the efforts of our region’s first responders during this unprecedented hurricane. I also want to thank the line workers from various electric companies near and far that are restoring power, and a sense of normalcy, to our citizens. We are grateful,” said Peeler.
The United States Attorney’s Office for the Middle District of Georgia has staffed offices in Macon, Columbus and Albany. Following Hurricane Michael, all three offices were shut down for storm damage assessments and employee safety. The Macon and Columbus offices reopened Friday, October 12. The Albany office reopened Monday, October 15.
Questions regarding the U.S. Attorney’s Office can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362. All questions regarding Vice President Pence should be directed to the White House Press Office.
Mexican Woman Pleads Guilty to Immigration Document FraudRead the Press Release
Gulfport, Miss. – Beatriz Martinez-Villasana, 29, a citizen of Mexico and a Legal Permanent Resident living in Georgia, pled guilty yesterday before U.S. District Judge Sul Ozerden to the crime of Fraud Regarding Visas, Permits, or Other Immigration Document, announced U.S. Attorney Mike Hurst and Gregory A. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Martinez-Villasana is scheduled to be sentenced by Judge Ozerden on January 11, 2019 at 9:00 a.m. She faces a maximum penalty of 10 years in federal prison followed by 3 years of supervised release and a maximum $250,000 fine. She also will face Department of Homeland Security removal proceedings.
On July 12, 2018, a Border Patrol agent was observing Interstate 10 as part of the South Mississippi Metro Enforcement Team, an interagency task force in Jackson County. Around 11:10 p.m., a Toyota Corolla that had been identified in Border Patrol intelligence data passed his position on I-10 eastbound. As he neared the vehicle, the agent noticed two occupants slumping down, and he thereafter conducted a traffic stop.
The driver, Martinez-Villasana, was arrested for transporting illegal aliens, and both passengers were arrested for being in the United States illegally. Both passengers pled guilty earlier this month of the felony offense of Illegal Return of an Alien after Removal. Both are awaiting sentencing in U.S. District Court in January 2019.
Also found in Martinez-Villasana’s possession was a fraudulent Legally Admitted Permanent Resident Alien Identification Card and a fraudulent Social Security Card. Both cards were in the name of an illegal alien to the United States who was incarcerated in the State of Georgia on state offenses. Both cards included identification numbers that had been stolen from two victims for whom the numbers had been lawfully assigned by the United States Government. Ms. Martinez-Villasana admitted that she knew the documents were false and that she had been helping the illegal alien named on the cards, who was her friend. She also admitted to unlawfully transporting her two illegal alien passengers and all of her relevant conduct may be used in determining her sentence in federal court.
U.S. Attorney Hurst commended the work of the United States Border Patrol and the South Mississippi Metro Enforcement Team Interagency Task Force. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Methamphetamine Trafficking Ring Allegedly Shipped Drugs to Hawaii Disguised as Aztec Calendars and StatuesRead the Press Release
SANTA ANA, California – Federal authorities this morning arrested eight defendants named in a grand jury indictment that alleges a scheme to send methamphetamine to Hawaii, including nearly 12 kilograms of narcotics made to look like decorative Aztec calendars and statues.
Today’s arrests follow the filing of a seven-count indictment on October 10. A ninth defendant charged in the indictment was already in federal custody on an unrelated case.
The indictment alleges a conspiracy to distribute methamphetamine, including an attempted shipment on July 17 of 11.7 kilograms of pure methamphetamine from a post office in Garden Grove. Those drugs were part of a nearly 90-pound shipment that appeared to be colorful, decorative Mexican items, including replicas of the 500-year-old Aztec calendar stone.
The indictment also alleges that members of the conspiracy, over the past year, sent to Hawaii a package containing about two pounds of methamphetamine and another with nearly five pounds of the drug.
All three of the narcotic shipments alleged in the indictment were intercepted by law enforcement.
The nine defendants named in the indictment are:
-
Felix Salgado, 28, of Perris, who allegedly obtained wholesale quantities of methamphetamine on behalf of the conspiracy;
-
Vaimanino Lee Pomele, 49, of Garden Grove, who allegedly orchestrated the drug shipments to Hawaii;
-
German Bastidas Nunez, also known as “Cheque,” 46, of Moreno Valley, who allegedly supplied narcotics to Salgado and who was already in custody;
-
Fernando Caballero Rascon, 42, of Garden Grove, who allegedly purchased methamphetamine from Pomele;
-
James Arnold Borbon, also known as “Dino,” 58, of Garden Grove, an alleged customer of the drug ring;
-
Moises Rey Avina, 39, of Santa Ana, who allegedly purchased methamphetamine from Pomele;
-
Gary Wayne Minter, 55, of Victorville, who allegedly used his residence as a stash house;
-
Alejandra Pomele, who is Vaimanino’s wife; 44, also of Garden Grove, who allegedly delivered narcotics to a customer on at least one occasion; and
-
Stephen Dgewell Martin, 30, of Anaheim, who allegedly dropped off the shipment containing the methamphetamine disguised as Aztec calendars and statues at the post office.
The eight defendants taken into custody this morning are expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the charges in the indictment, each defendant would face a mandatory minimum sentence of at least five years in federal prison, and each potentially could be sentenced to decades in prison.
The matter is being is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration and the Cypress Police Department.
This case is being prosecuted by Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office.
-
Meriden Man Sentenced to More Than 15 Years in Federal Prison for Sex Trafficking of 3 TeensRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLEN DAVIS, 37, of Meriden, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 188 months of imprisonment, followed by 15 years of supervised release, for sex trafficking three teenage girls, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in 2015 and 2016, Davis recruited harbored and transported three females, who at the time were 14, 15 and 16 years old, to engage in commercial sex acts. Davis used the website Backpage to advertise the minor victims’ services, and he transported the girls to various Connecticut hotels, including hotels in Meriden, Milford and Hamden, where they worked in prostitution for Davis.
On December 9, 2016, Davis was arrested on related state charges. He has been detained since his arrest and the state charges are pending.
On August 17, 2017, Davis pleaded guilty in federal court to one count of sex trafficking of a minor.
In September 2006, Davis was sentenced in New Haven federal court to 150 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine. Due to changes in the federal crack cocaine sentencing guidelines, Davis had his sentence reduced in December 2013 to 130 months of imprisonment. He was released from federal prison in June 2014.
Judge Shea sentenced Davis to a concurrent 60-month prison term for violating the conditions of his supervised release.
This matter was investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Meriden Police Department. The case was prosecuted by Assistant U.S. Attorneys Anastasia E. King and Sarala V. Nagala.
Medical Director for Bridgeville Suboxone Clinic Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
PITTSBURGH, PA - A resident of Wexford, Pa. pleaded guilty in federal court to charges of unlawfully distributing controlled substances, United States Attorney Scott W. Brady announced today.
Mark R. Foster, 71, pleaded guilty to three counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that co-defendant Terry Brown owned and operated Cherry Way, a Suboxone clinic, located in Bridgeville, PA, and Foster was a medical director at Cherry Way. Brown and Foster conspired together to create and submit unlawful prescriptions for Suboxone, Adderall and Percocet, and then unlawfully dispensed those controlled substances to Brown and others.
Judge Fischer scheduled sentencing for March 14, 2019 at 11 a.m. The law provides for a total sentence of 50 years in prison, a fine of $2,500,000, 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 Robert S. Cessar is prosecuting this case on behalf of the government.
This investigation was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General -Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
Media Advisory: Press Conference to Announce Sentences in Cases Involving Opioid Related DeathsRead the Press Release
CEDAR RAPIDS, IA – Opioids kill hundreds of Iowans every year. Opioid abuse remains at an all-time high and these dangerous drugs wreak havoc on lives and communities. Unfortunately, all too often, the use of an opioid ends with death because people do not know what they have or how dangerous it is.
On October 18, 2018, at 10:00 a.m., United States Attorney Peter Deegan will hold a press conference to announce sentences in recent cases where the distribution of opioids ended in the tragic loss of life. He will also highlight the danger these drugs pose to our communities, whether purchased on the street, online, or by some other means. DEA Resident Agent-in-Charge Russ Coulter, FBI Supervisory Senior Resident Agent Tom Reinwart, Assistant Chief of Police Jeremy Jensen with the Dubuque Police Department, and Chief Deputy Dave Riniker of the Dubuque County Sheriff’s Office will join US Attorney Deegan.
Event DetailsWhen: October 18, 2018
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 7th Ave. SE
Time: 10:00 a.m.
A press release will be provided and interview opportunities will be available. Please RSVP to Tony Morfitt at [email protected] if you plan to attend.
Follow us on Twitter @USAO_NDIA.
Massachusetts Man Sentenced to Two Years for Conspiracy to Steal Mail and Cash Counterfeit ChecksRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Nicholas Veelenturf, 31, of Dorchester, Massachusetts, was sentenced today in U.S. District Court by Senior Judge George Z. Singal to two years in prison and three years of supervised release for conspiring with others to steal checks from the mail in Maine and to cash counterfeit versions of those checks at banks in Massachusetts. He was also ordered to pay $15,710.33 in restitution. Veelenturf pled guilty on June 19, 2018.
According to court records, in September 2016, two business checks were stolen from the mail in Scarborough, Maine. The intended recipients of these checks were businesses located in an industrial park in Scarborough. About two weeks later, the defendant and another person cashed or attempted to cash counterfeit versions of the two checks at several TD Bank branch locations in Massachusetts. The routing and account numbers for each business had been printed on different check stock, the check amounts had been significantly increased, and the names of the payees had been altered to either the defendant’s or the other person’s name.
This case was investigated by the U.S. Postal Inspection Service.
Massachusetts Man Sentenced to over 10 Years for Fentanyl Trafficking ConspiracyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Wender Santos, a/k/a “Carlos,” 24, of Lawrence, Massachusetts, was sentenced today in U.S. District Court by Judge Jon D. Levy to 130 months in prison and three years of supervised release for conspiracy to distribute, and possess with intent to distribute, fentanyl, and aiding and abetting the possession with intent to distribute fentanyl. The defendant pled guilty on April 3.
Court records reveal that in 2016, Santos conspired with Rafael Buli and others to distribute fentanyl in the Lawrence area. Maine drug customers contacted Santos, who they knew only as “Carlos,” to place orders for distributable quantities of fentanyl. Santos then directed his drug couriers, including Buli, to meet with his Maine customers to consummate the drug transactions. On September 1, 2016, federal and state agents stopped a Maine customer after Santos and Buli sold the customer about 400 grams of fentanyl. The agents located the fentanyl inside a “trap” compartment of a vehicle that Santos furnished to the customer. Agents identified Santos, learned that he had an apartment in Tewksbury, Massachusetts, searched the apartment on December 12, 2016 pursuant to a warrant, and seized about $14,000, cell phones and a money counter.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Maine State Police and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Macon Man Sentenced for Possession of Child PornographyRead the Press Release
MACON-- United States Attorney for the Middle District of Georgia, Charles E. Peeler, announced Tuesday that 26-year-old Robert Murphy of Macon was sentenced by United States District Judge Marc T. Treadwell on October 15, 2018, to 36 months imprisonment, followed by 25 years of supervised release and $3,000 restitution to three separate victims for possession of child pornography.
Law enforcement found 109 images of minors engaged in sexually explicit conduct on Mr. Murphy’s computer, according to facts listed in the plea agreement. In April 2016, a federal law enforcement agent discovered child pornography files available for sharing through an internet connection associated with Mr. Murphy’s residence. Following a federal search warrant, Mr. Murphy was found at the residence and admitted to searching for and downloading child pornography using peer-to-peer programs. He also admitted to looking for child pornography, downloading, watching, and later deleting the files.
“Possession of child pornography is not a victimless crime. When people download or view these horrific images of real children being subjected to unspeakable acts, those children are once again made victims and suffer real harm,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “My office will continue to vigorously prosecute these cases.”
“We are grateful for the work of Homeland Security, the Georgia Bureau of Investigation and the Jones County Sheriff’s Office for their assistance with this case,” said Mr. Peeler.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Robert D. McCullers prosecuted the case for the Government.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
LaSalle County Physician Sentenced to 12 Years in Prison for Illegally Dispensing Prescription OpioidsRead the Press Release
CHICAGO — A LaSalle County physician was sentenced today to 12 years in federal prison for illegally dispensing prescription medications, including opioids, in exchange for cash or sex.
CONSTANTINO PERALES, M.D., illegally prescribed Oxycodone and Xanax to a patient, ANDREW STRANDELL, knowing that Strandell would sell the pills on the black market and then kick back some of the profits to Dr. Perales. Dr. Perales also admitted in a plea agreement that from 2011 to 2013 he illegally dispensed opioids and other controlled substances to three opioid-dependent patients in exchange for sex. Dr. Perales required the individuals to have sex with him in order to continue receiving the medications, the plea agreement states. Dr. Perales knew the patients were addicted to the pills, yet he dispensed them without performing a medical examination or ordering any diagnostic tests to manage their conditions, the plea agreement states.
Perales, 67, of Peru, Ill., pleaded guilty last year to conspiracy to possess a controlled substance with the intent to distribute. U.S. District Judge Amy J. St. Eve imposed the 12-year sentence in federal court in Chicago.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the Peru, Ill., Police Department, and the LaSalle County State’s Attorney’s Office.
“Few cases provide such a troubling example of a brazen and pathological abuse of power, influence, and trust in order to manipulate the pain and suffering of others to one’s personal advantage,” Assistant U.S. Attorneys Katherine A. Sawyer and Kathryn E. Malizia argued in the government’s sentencing memorandum. “The evidence in this case demonstrates that Constantino Perales is a predator who abused his power and cloaked himself in the authority conferred by his white coat to manipulate vulnerable patients for his own gratification and profit.”
“This case exposes a doctor behaving in direct contradiction to his Hippocratic Oath, placing his greed and personal desires above the well-being of his patients," said FBI SAC Sallet. "This sentence sends a clear message that such behavior is unacceptable and will be prosecuted to the fullest extent of the law. I commend the efforts of our state, local, and federal partners in bringing both of these individuals to justice.”
“This announcement sends a clear message that medical professionals who exploit their power, prey on the vulnerable, and violate controlled substance laws will be investigated and held accountable to the fullest extent,” said DEA SAC McKnight. “It also highlights the significance of federal law enforcement and prosecutors working together.”
Dr. Perales’ Illinois medical license was suspended and he surrendered his DEA Registration Certificate after law enforcement executed a search warrant at his office in Peru, Ill., in August 2013.
Strandell, of Sandwich, Ill., pleaded guilty to the same conspiracy charge as Perales. Judge St. Eve in August sentenced Strandell to 30 months in prison.
Kayenta Man Sentenced to 6 Years in Prison for Sexual Abuse of a MinorRead the Press Release
PHOENIX – This week, Ronnie Haycock, 42, of Kayenta, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to six years’ imprisonment, to be followed by fifteen years of supervised release. Haycock, an enrolled member of the Navajo Nation, had previously pleaded guilty to sexual abuse of a minor.
During the summer of 2017, Haycock worked as a tour guide in the Monument Valley area of the Navajo Nation. On the night of July 5, 2017, Haycock led an overnight camping tour in the area. While camped out that night, Haycock sexually abused a juvenile female who was on the tour.
The investigation in this case was conducted by the Federal Bureau of Investigation and Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08238-PCT-DLR
RELEASE NUMBER: 2018-131_Haycock
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Kankakee Man Sentenced to 15 Years in Prison for Role in Armed Robbery of Champaign BusinessRead the Press Release
URBANA, Ill. – U.S. District Judge Sara Darrow has sentenced Randy Williams, 29, of the 300 block of North Rosewood, Kankakee, Ill., to 15 years in federal prison for his role in the armed robbery of a Champaign, Ill., Sprint store. Williams was sentenced on Oct. 15, 2018. In addition, Williams was ordered to pay restitution in the amount of $32, 121.81, to the Sprint Store on North Prospect in Champaign, the victim of the offense. Williams has remained in the custody of the U.S. Marshals Service since September 2017, when he was indicted by a federal grand jury. Williams will be transferred to the federal Bureau of Prisons to serve his sentence.
On June 14, 2018, Williams was convicted by a jury for his role as the getaway driver in the armed robbery of a Sprint Store, at 2706 N. Prospect Ave., in Champaign. At trial, the government presented evidence that a group of five robbers traveled to Champaign on July 28, 2016, held two customers and two employees at gun point while robbing the North Prospect Sprint store of its cellphones. The victims were bound by their wrists and ankles with zip-ties. According to trial testimony, Williams waited in the getaway vehicle while his two co-conspirators, Thomas James, and Andre Nunn went into the store.
On Dec. 28, 2017, U.S. District Judge Colin S. Bruce sentenced James to 19 years in prison for his role in the Champaign robbery and the robbery of a Circle K at 581 S. Indiana Ave., in Kankakee on Aug. 6, 2016. Another co-defendant, Jaevontae Williams, was sentenced to seven years (86 months) on July 28, 2018. Nunn is scheduled to be sentenced on Nov. 30, 2018.
Assistant U.S. Attorneys Elly Peirson and Ryan Finlen prosecuted the case against Williams. The charges were investigated by the Federal Bureau of Investigation, the Champaign Police Department, Kankakee Police Department, and Illinois State Police.
KC Man Sentenced to 23 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a meth-trafficking conspiracy that resulted in a fatal shooting.
James P. Roberts, 27, was sentenced by U.S. Chief District judge Greg Kays to 23 years and six months in federal prison without parole.
Roberts pleaded guilty on Feb. 1, 2018, to conspiracy to distribute methamphetamine. Co-defendant Marcell Shavers, 28, of Kansas City, was sentenced on Aug. 15, 2018, to 40 years in federal prison without parole. Shavers was convicted at trial of participating in a conspiracy to possess methamphetamine with the intent to distribute.
On Jan. 1, 2014, Kansas City, Mo., police officers responded to a reported shooting. Upon arrival, they discovered the body of Jose Medellin, who had been fatally shot. They also found several shell casings at the scene as well as two plastic bags containing more than 55 grams of methamphetamine in Medellin’s possession. Roberts admitted that, while he possessed a handgun during the drug transaction, he never fired at Medellin. There was forensic evidence that Roberts never fired his gun that night.
The person who reported the shooting had gone to Discount Smokes on Independence Avenue to obtain some cigarettes. While at the store, he was approached by Roberts, who asked about obtaining methamphetamine. He replied that he knew a source and would set up a meeting.
The witness contacted Medellin, then picked up Roberts at Discount Smokes and they drove to Medellin’s apartment building. He told Medellin that Roberts wanted to buy $1,000 of methamphetamine, and Medellin told him to bring Roberts inside the apartment building. The three men met in the laundry room on the ground floor, but when a car alarm went off, the witness went out to shut it off. He could not re-enter the laundry because it locked automatically and could only be opened from the inside.
Although he could not reenter the building, the witness could see through the windows and saw Roberts with an unknown man, later identified as Shavers. He witnessed Medellin being shot. Medellin tried to run from the shooter but was unable to escape. Medellin was shot in the abdomen, turned to run, was shot in the right buttock, fell to the ground and was shot in the back while on the ground. After Medellin fell, the witness ran to a nearby Quik Trip and called the police.
This case was prosecuted by Assistant U.S. Attorneys Jeffrey Valenti and Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice, Treasury, and State Departments Announce Coordinated Enforcement Efforts Against Cartel Jalisco Nueva GeneracionRead the Press Release
The United States of America, through its Departments of Justice, Treasury, and State announced today a series of measures to target and dismantle the Cartel Jalisco Nueva Generacion (CJNG) – one of the largest, most dangerous drug cartels currently operating in Mexico. These measures include the unsealing of 15 indictments, the State Department’s approval of large rewards, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designations, and the establishment of a citizen tip-line.
CJNG is one of the most powerful cartels in Mexico and the Department of Justice considers it to be one of the five most dangerous transnational criminal organizations in the world, responsible for trafficking many tons of cocaine, methamphetamine and fentanyl-laced heroin into the United States, as well as for violence and significant loss of life in Mexico.
Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), FBI Deputy Director David L. Bowdich, Director Andrea Gacki of OFAC, Assistant Secretary for International Narcotics and Law Enforcement Affairs Kirsten D. Madison of the U.S. Department of State, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Executive Associate Director Derek Benner and Chief Don Fort of IRS Criminal Investigation (IRS-CI), made the announcement.
Background
Founded in 2011, CJNG has grown in size and strength rapidly since its inception. Today, the DEA estimates the CJNG exerts influence in 23 of 31 (75 percent) of Mexican states, including key drug production and transportation corridors. CJNG is a powerful drug cartel in Mexico as a result of the organization’s disciplined command and control, sophisticated money laundering techniques, efficient drug transportation routes, and extreme violence. The cartel has also expanded globally, with significant presence and illicit business not only throughout the United States and Mexico, but also Europe, Asia, and Australia.
“We will continue to hammer transnational criminal organizations like the Cartel de San Jalisco Nueva Generacion, or CJNG,” said Attorney General Sessions. “The DEA has said for three years in a row that Mexican drug cartels are the single gravest drug threat that this country faces. President Trump recognizes this, and the day I was sworn in as Attorney General, he ordered me to dismantle transnational criminal organizations, including the cartels. We have been faithful to that order. Today, I am announcing 15 indictments returned against the leaders of CJNG. These indictments are our next steps—but not our last. We will continue following President Trump’s order.”
“DEA has a strong partnership with the Government of Mexico that is demonstrated in the relentless pursuit of the violent leadership of the CJNG cartel,” said Acting Administrator Dhillon. “We will continue to work closely with our international partners to bring Nemiso Cervantes aka El Mencho to justice and dismantle drug cartels like CJNG.”
Unsealing of Indictments
Today, the Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section, U.S. Attorney’s Office in the Southern District of California, the Northern District of Illinois, the Southern District of Mississippi, and the Eastern District of Virginia are announcing 15 indictments, some recently unsealed, against the following CJNG leaders, financiers, transporters, and sources of drug supply:
Nemesio Oseguera Cervantes, aka “Mencho”: Oseguera Cervantes, 52, is the lead defendant in a three-count superseding indictment returned in the District of Columbia in 2017 alleging that he is the leader of a Continuing Criminal Enterprise, conspired to distribute significant quantities of narcotics for illegal importation into the United States, and has used a firearm during and in relation to these drug trafficking crimes. In addition to the indictment in the District of Columbia, Oseguera Cervantes has also been charged with drug trafficking offenses in the Southern District of Mississippi (SDMS). He is currently a fugitive and was designated as a “Kingpin” under the Foreign Narcotics Kingpin Designation Act by the Department of the Treasury in April 2015.
Ruben Oseguera Gonzalez, aka, “Menchito”: Oseguera Gonzalez, 28, Oseguera Cervantes’ son, served as the CJNG’s second in command until the time of his arrest by Mexican authorities in June 2015. Oseguera Gonzalez is charged in a two-count indictment returned in the District of Columbia in 2017 alleging that between 2007 and February 2017, Oseguera Gonzalez engaged a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States and that Oseguera Gonzalez engaged in the use of a firearm during and in relation to one or more drug trafficking crimes. Oseguera Gonzalez remains in Mexican custody and is currently pending extradition to the United States.
Abigael Gonzalez Valencia: Gonzalez Valencia, 45, the head of the “Cuinis” organization, is charged in a three-count indictment returned in the District of Columbia in 2014 alleging that he was a leader in a Continuing Criminal Enterprise, conspired to distribute significant quantities of narcotics for illegal importation into the United States, and used a firearm during and in relation to one or more drug trafficking crimes. The CJNG has flourished in significant part because of its close affiliation with the Cuinis organization, which is the primary financial support network of the CJNG drug trafficking efforts. The Cuinis organization is composed of multiple members of the Gonzalez Valencia family. The relationship between the Cuinis organization and the CJNG is cemented through both intertwined drug trafficking and money laundering dealings as well as familial relationships, including the marriage of one member of the Gonzalez Valencia family to CJNG leader Nemesio Oseguera Cervantes. Gonzalez Valencia was designated as a “Kingpin” under the Foreign Narcotics Kingpin Designation Act by the Department of the Treasury in April 2015. Gonzalez Valencia was arrested by Mexican authorities in February 2015 pursuant to his charges in the United States and is awaiting extradition.
Jesus Contreras Arceo, aka “Canasto”: Contreras Arceo, 41, is charged in a two-count indictment returned in the Eastern District of Virginia in 2017 alleging that between 2011 until March 2017, Contreras Arceo engaged in a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States and that Contreras Arceo engaged in a conspiracy to commit money laundering. Contreras Arceo was arrested by Mexican authorities in July 2018 pursuant to his charges in the United States and is awaiting extradition.
Erick Valencia Salazar, aka “El 85”: Valencia Salazar, 41, is charged in a one-count indictment returned in the District of Columbia in 2018 alleging that between 2003 until August 2018, Valencia Salazar engaged in a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States. Valencia Salazar is currently a fugitive and is believed to be in Mexico.
Juan Perez-Vargas, aka, “Piolin”: Perez-Vargas, 37, is charged in a two-count indictment returned in the Southern District of California in 2017 alleging that Perez-Vargas engaged in a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States. Perez-Vargas was arrested by Mexican authorities in September 2017 pursuant to his charges in the United States and is awaiting extradition.
Diego Pineda Sanchez, aka “Botas” and Carlos Parra-Pedroza: Pineda Sanchez, 33, and Parra-Pedroza, 35, are charged with 28 others in a 63-count indictment returned in the Northern District of Illinois in 2015, alleging that between 2011 and September 2014, Pineda Sanchez and Parra-Pedroza led a Mexico-based conspiracy to launder more than $100 million in narcotics proceeds belonging to Mexico-based drug traffickers, through the purchase and resale of gold. The evidence in the case established that Pineda Sanchez and Parra-Pedroza laundered most of these narcotics proceeds on behalf of CJNG and its leader, Nemesio Oseguera Cervantes aka “Mencho.” Pineda Sanchez and Parra-Pedroza have pleaded guilty to the money laundering conspiracy charges, and are facing a statutory maximum sentence of 20 years in prison. On Oct. 5, Pineda Sanchez was sentenced to serve 15 years in prison by the U.S. District Court in Chicago. The Court will set a sentencing date for Parra-Pedroza at a status hearing on Nov. 1. All other charged and arrested members of the conspiracy have pleaded guilty and have either been sentenced or are awaiting sentencing.
The following individuals linked to the CJNG have also been indicted as a result of the coordinated efforts against the cartel:
- Oswaldo de Jesus Miramontes-Diaz, 44, was charged in the Central District of California in 2015. Miramontes-Diaz is currently serving a sentence pursuant to the charges in the United States;
- Gerardo Gonzalez Valencia, aka, “Lalo,” 41, was charged in the District of Columbia in 2016. He was arrested by Uruguayan authorities in April 2016 on these charges, and is awaiting extradition;
- Jose Gonzalez Valencia, aka, “Chepa,” 42, was charged in the District of Columbia in 2016. He was arrested by Brazilian authorities in December 2017 on these charges, and is awaiting extradition;
- Ulises Yovany Mora-Tapia, aka, “Yiyo,” 33, was charged in the District of Columbia in 2016. Mora-Tapia is currently a fugitive and is believed to be in Mexico;
- Jorge Manuel Cobian-Gonzalez, 43, was charged in the Eastern District of Virginia in 2017. Cobian-Gonzalez is currently awaiting trial;
- Juan Manuel Abouzaid El Bayeh aka, “El Escorpion,” 45, was charged in the District of Columbia in 2017. Abouzaid El Bayeh is currently a fugitive and is believed to be in Mexico; and
- Alfredo Galindo-Salazar aka, “Tucan,” 47, was charged in the District of Columbia in 2018. Galindo-Salazar is currently a fugitive and is believed to be in Mexico.
Treasury OFAC Designations
Since April 2015, OFAC has announced nine designation actions totaling 63 separate individuals and entities in Mexico tied to the CJNG and the Cuinis organization. In the initial 2015 designation action, both Nemesio Oseguera Cervantes and Abigael Gonzalez Valencia were designated by OFAC as Specially Designated Narcotics Traffickers under the Foreign Narcotics Kingpin Designation Act. These Kingpin Act designation actions targeting the CJNG and the Cuinis organization are among the most aggressive and targeted in OFAC’s history against Mexican drug trafficking organizations. Based upon this series of OFAC designations, Mexican authorities were able to seize the Hotelito Desconocido, an exclusive boutique hotel on the Pacific coast of Mexico, which was controlled by members of Los Cuinis organization. OFAC designations have allowed U.S. and Mexican government officials to follow the money of the CJNG and the Cuinis organization in an effort to disrupt their money laundering activities.
“Treasury has strategically targeted leaders of CJNG and the Cuinis organizations, as well as complicit family members, criminal operatives, and businesses under their control,” said OFAC Director Gacki. “Our goal is to disrupt the cartels’ finances, which are overwhelmingly generated from drug sales that occur in the United States, and deny them access to the U.S. financial system. OFAC is committed to working with the Department of Justice and Mexican counterparts in order to apply economic pressure on CJNG and the Cuinis organizations until they are effectively dismantled.”
State Department Award and DEA Tip-Line
As part of continuing efforts to cripple the operations of the CJNG, the U.S. Department of State has previously issued a number of rewards through the Narcotics Rewards Program for information leading to the arrest of critical CJNG operatives. Previously, the Department of State issued rewards through the Narcotics Rewards Program for up to the amount of $5 million for information leading to the arrests of Nemesio Oseguera Cervantes, Abigael Gonzalez Valencia, and Jose Gonzalez Valencia. Effective immediately, the Department of State is announcing an increase to the Narcotics Rewards Program reward for information leading to the arrest of the leader of the CJNG, Nemesio Oseguera Cervantes aka, “El Mencho.” Now $10 million, the reward is one of the largest ever approved for the Narcotics Rewards Program. Additionally, the Department of State is announding a Narcotics Rewards Program reward for information leading to the arrest of high ranking CJNG member Erick Valencia Salazar, aka, “El 85,” in the amount of $5 million. Individuals with information about this organization should contact law enforcement authorities by calling 1-213-237-9990, via email at [email protected], or via Twitter by contacting the handle, @DEALosAngeles.
“The $10 million reward for information leading to the arrest of “El Mencho” is among the highest the Narcotics Rewards Program currently offers,” said Assistant Secretary for International Narcotics and Law Enforcement Affairs Madison. “This reflects the U.S. government’s strong commitment to bringing Oseguera Cervantes to justice.”
Acknowledgments
These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), and were significantly aided by coordination and support from the multi-agency Special Operations Division (SOD) near Washington, D.C. OCDETF is a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
These cases are being prosecuted by the Criminal Division’s Narcotic and Dangerous Drug Section in conjunction with DEA Los Angeles Field Division, DEA Mexico City, DEA Guadalajara, DEA Chicago, FBI New York, FBI’s Legal Attaché Office in Mexico City, Homeland Security Investigations (HSI) Chicago and HSI Riverside; the Southern District of California in conjunction with DEA San Diego, DEA Guadalajara and HSI San Ysidro; the Northern District of Illinois in conjunction with the IRS-CI Chicago; the Bureau of Alcohol, Tobacco, Firearms, and Explosives Chicago and HSI Chicago; the SDMS in conjunction with DEA Gulfport and the Eastern District of Virginia in conjunction with the DEA Bilateral Investigations Unit.
The United States would like to acknowledge the significant contributions of the Government of Mexico in their bilateral efforts to target and dismantle the CJNG. The daily coordination between the Government of Mexico with the U.S. Department of Justice, Treasury and State to target this violent drug cartel has a direct impact on the lives and livelihood of millions of citizens in the United States and Mexico.
Relevant Court documents and visuals can be found at: https://www.justice.gov/opa/documents-and-resources-october-16-2018-press-conference?utm_medium=email&utm_source=govdelivery.
Johnstown Man Charged with Possessing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The indictment named Anthony E. Gray, 22, as the sole defendant.
According to the indictment presented to the court, on July 10, 2018, Gray possessed with the intent to distribute more than 28 grams of cocaine base, commonly known as "crack."
The law provides for a maximum sentence of 40 years in prison and a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Arnold P. Bernard, Jr is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Cambria County Drug Task Force and the Johnstown Police Department conducted the investigation that led to the prosecution of Gray.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Man Charged with Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The indictment named Bobby Washington, Jr., 34, as the sole defendant.
According to the indictment presented to the court, on March 17, 2018, Washington distributed less than 28 grams of cocaine base, commonly known as "crack," and on April 24, 2018, he possessed with intent to distribute 28 grams or more of cocaine base, commonly known as "crack."
The law provides for a maximum sentence of 60 years in prison and a fine of $6,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Washington.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Investment Advisor Pleads Guilty to $6.1 Million Ponzi SchemeRead the Press Release
NORFOLK, Va. – A Chesterfield man who owned and operated an investment firm in Virginia Beach pleaded guilty today to mail fraud and engaging in monetary transactions in criminally derived property.
According to court documents, Edward Lee Moody, Jr., 47, was a registered investment adviser and the sole owner and operator of CM Capital Management LLC, an investment firm with its principal office located in Virginia Beach. Moody solicited investors on the basis of his representation that he would profitably invest their assets in securities on their behalf and manage those investments on an ongoing basis. In reality, he ran a Ponzi scheme over a 13-year period, during which he solicited and collected approximately $6.1 million from 53 investors, at least 13 of whom were elderly persons who liquidated assets from their existing, legitimate retirement accounts in order to provide funds to him that they expected he would invest on their behalf. In most instances, Moody did not manage the accounts of the investors or buy or sell securities on their behalf, and did not even open individual brokerage accounts for them. Instead, Moody diverted investor monies for his own personal benefit and to enrich himself, using at least $1.4 million for business expenses, to purchase a home, make car loan payments, shop, travel to Las Vegas and other destinations. He also used approximately $885,000 of investor monies to buy and sell securities on his own behalf. Moody perpetuated the scheme by using approximately $1.5 million that he received from new investors to make periodic lulling payments to earlier investors, and he provided investors with fraudulent monthly account statements that falsely indicated that the investors’ funds had been invested in securities and had earned returns.
Moody faces 20 years in prison on the mail fraud charge and 10 years for engaging in monetary transactions in criminally derived property when sentenced on Feb. 5, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-154.
Husband and Wife Sentenced for Roles in Conspiracy to Import and Traffic Counterfeit Electronic ProductsRead the Press Release
NEWARK, N.J. – A husband and wife were sentenced today for their roles in a scheme to smuggle counterfeit electronics, including Apple iPhones, iPads and iPods, from China for sale in the United States, U.S. Attorney Craig Carpenito announced.
Roberto Volpe, 36, an Italian national, was sentenced to 22 months in prison, and his wife, Andreina Becerra, 33, a Venezuelan national, was sentenced to three years of probation, including six months of house arrest. A third co-defendant, Rosario La Marca, 55, an Italian national and resident of Naples, Italy, was sentenced July 21, 2017, to 37 months in prison.
The three defendants previously pleaded guilty before U.S. District Court Judge Kevin McNulty to Count One of an indictment, charging conspiracy to traffic in counterfeit goods, to smuggle goods into the United States, and to structure financial transactions, and Count Two, charging trafficking in counterfeit goods. Judge McNulty imposed the sentences on Volpe and Becerra today in Newark federal court.
The three defendants were originally charged in an eight-count indictment returned in April 2015 with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks, and fake camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.
According to the documents filed in this case and statements made in court:
From July 2009 through February 2014, the defendants conspired to smuggle into the United States from China more than 40,000 electronic devices and accessories. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were shipped separately from the labels bearing counterfeit trademarks in order to avoid detection by U.S. Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.
The defendants then re-shipped the devices to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Hong Kong to facilitate their criminal activity.
In addition to the prison terms, Judge McNulty sentenced the defendants to Volpe to two years of supervised release and fined him $25,000. Becerra was fined $20,000. As part of their plea agreements, Volpe and Becerra agreed to forfeit their interest in 10 bank accounts, three Florida condominiums, and approximately $167,000 in cash.
Jianhua Li, a Chinese national currently residing in California, pleaded guilty in Feb. 2, 2018, and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Newark Seaport Investigations Group, under the direction of Special Agent in Charge Brian Michael; and the Bergen County Prosecutor’s Office, under the direction of Acting Bergen County Prosecutor Dennis Calo, with the investigation leading to today’s sentencings. He also thanked Europol and Italy’s Guardia di Finanza for their assistance.
The government is represented by Senior Trial Counsel Leslie Schwartz and Assistant U.S. Attorney Sarah Devlin of the District of New Jersey, and Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.
Hartford Man Guilty of Sex Trafficking Minors, Child Pornography OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut announced that a federal jury in Bridgeport has found CHRISTOPHER HAMLETT, also known as “Cadi” and “Cadillac Black,” 25, of Hartford, with multiple federal offenses related to the sex trafficking of minors.
A trial before U.S. District Judge Victor A. Bolden began on October 9 and the jury returned guilty verdicts on all counts of a nine-count indictment this morning.
When he is sentenced, HAMLETT faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life. A sentencing date is not scheduled.
According to the evidence at trial, between August and November 2017, HAMLETT recruited and enticed two minor female victims to engage in prostitution at hotels in Hartford and Wethersfield. In order to solicit clients for the minors, HAMLETT took sexually explicit photographs of each minor and submitted them to the website Backpage.
HAMLETT began to recruit a 17-year-old minor into prostitution during their first meeting. HAMLETT agreed that the minor victim could keep 60 percent of the money she made from prostitution customers, and he would take 40 percent. The minor victim saw customers for approximately three months. The evidence at trial included text messages between HAMLETT and prostitution clients, and text messages from HAMLETT to the minor victim. In the text messages to the minor victim, HAMLETT told the victim how much to charge, and threatened the victim when he thought she had not given him his full share of the money.
The trial evidence also showed that HAMLETT facilitated the prostitution of a second minor victim who was then 16 years old, using Facebook Messenger to send her clients and explain particular sexual acts.
HAMLETT also posted Backpage advertisements for an adult woman who worked for him in prostitution.
The jury found HAMLETT guilty of two counts of sex trafficking of a minor, five counts of using a facility of interstate commerce to promote commercial sex, and two counts of production of child pornography.
HAMLETT has been detained since his arrest on February 8, 2018.
This matter was investigated by the Hartford Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Sarala V. Nagala.
Hampton Man Indicted for Armed Bank Robbery and Multiple Bomb HoaxesRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment today charging a Hampton man with making multiple bomb threats in Hampton and Newport News in an effort to divert authorities away from his armed robbery of the Virginia Educators Credit Union (VECU).
According to allegations in the indictment, Oscar Von Alston II, 31, made a series of bomb threats to public facilities in both Hampton and Newport News including two courthouses, two hotels, and a YMCA. During the evacuations of the threatened locations where both local police and firemen were dispatched, Alston robbed the VECU at gunpoint. Alston was apprehended less than 20 minutes after the robbery with over $22,000 from the VECU.
Alston is charged with five counts of making a threat with explosives, five counts of false information and hoax, bank robbery, and brandishing a firearm in furtherance of a crime of violence. If convicted, he faces a mandatory minimum of seven years and maximum of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Terry L. Sult, Chief of Hampton Police Division, and Steve R. Drew, Chief of Newport News Police, made the announcement. Assistant U.S. Attorney Peter Osyf is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-79.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Grape Street Crips Member Indicted for Murder of Bystander at 2010 Summer CookoutRead the Press Release
NEWARK, N.J. – A member of the Grape Street Crips gang was indicted today on additional charges in connection with the murder of a bystander at a summer cookout in 2010, U.S. Attorney Craig Carpenito announced today.
Khalil Stafford, a/k/a “Stod,” 34, of Newark, was indicted today on additional charges in a seventh superseding indictment, including RICO conspiracy, murder in aid of racketeering, and using a firearm during a crime of violence, in connection with a June 19, 2010, shooting that left a woman dead and two other people wounded. Stafford was previously acquitted of the murder following a trial in Essex County Superior Court.
Stafford – along with Hanee Cureton, a/k/a “City,” a/k/a “Fat Boy,” 33, of Newark, and 12 other defendants – was previously charged with RICO conspiracy, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. Twelve of the 14 defendants charged in the indictment have been convicted. Stafford and Cureton are awaiting trial.
Another 66 members and associates of the Grape Street Crips who were arrested along in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation, and all have been convicted.
According to the indictment and statements made in court:
On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford confronted an individual about money he claimed the individual owed him. Stafford and several other gang-members left the cookout to retrieve firearms and later returned. They fired numerous shots at the person Stafford had originally confronted. Three people were struck – including a woman who was not involved in the confrontation, but was merely standing on a nearby porch, and was killed – and two other people who were wounded and survived.
Stafford and Cureton were involved in the distribution of heroin from 2003 through 2015. Cureton was a major supplier of heroin to members of the Grape Street Crips at the James Baxter Terrace housing complex from 2003 until Baxter Terrace was demolished in 2009. Stafford distributed both heroin and cocaine at Baxter Terrace.
After Baxter Terrace was torn down, Cureton and Stafford continued to distribute heroin. On Nov. 12, 2013, agents with the DEA searched one of Cureton’s heroin mills, seizing more than a kilogram of heroin, cutting agents, and packaging material. In 2014, Cureton and Stafford sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.
Stafford faces a mandatory life sentence in connection with the murder in aid of racketeering and conspiracy to distribute one kilogram of more of heroin. For using a firearm during a crime of violence, he faces a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison. For the RICO conspiracy, Stafford faces a maximum term of life in prison.
Cureton faces a mandatory minimum term of 20 years and a maximum sentence of life in prison for the charge of conspiracy to distribute one kilogram or more of heroin. For the RICO conspiracy, Cureton faces a maximum sentence of life in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, and investigators from the U.S. Attorney’s Office with the investigation leading to today’s indictment. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for their assistance with the investigation.
The government is represented by Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Former State Street Executive Sentenced for Scheme to Defraud Clients through Secret Trading CommissionsRead the Press Release
A former executive vice president of State Street Corporation was sentenced today in federal court in Boston, Massachusetts, in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, and Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Office, made the announcement.
Ross McLellan, 47, of Hingham, Massachusetts, was sentenced by U.S. District Court Judge Leo T. Sorokin to 18 months in prison and two years of supervised release. In June 2018, McLellan was convicted by a federal jury of one count of conspiring to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud.
In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer unit, and Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa, were indicted. In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on Nov. 6. Also in June 2017, Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt was sentenced in July 2018 to one year of probation.
According to the evidence presented at trial, between February 2010 and September 2011, McLellan, Pennings, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees that the clients had agreed to pay to the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. McLellan, Pennings, and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports. For example, in a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.”
The evidence at trial demonstrated that in June 2010 McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities that the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention. In March 2011 McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01 percent) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.
The evidence at trial further showed that, in June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged. Later, at McLellan’s direction, Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe. McLellan and Pennings sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.
The case was investigated by the FBI. Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs.
Trial Attorney William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen E. Frank of the District of Massachusetts prosecuted the case.
Former State Street Executive Sentenced for Scheme to Defraud Clients Through Secret Trading CommissionsRead the Press Release
BOSTON – A former executive vice president of State Street Corporation was sentenced today in federal court in Boston in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Ross McLellan, 47, of Hingham, was sentenced by U.S. District Court Judge Leo T. Sorokin to 18 months in prison and two years of supervised release. In June 2018, McLellan was convicted by a federal jury of one count of conspiring to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud.
In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer unit, and Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa, were indicted. In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on Nov. 6, 2018. Also in June 2017, Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt was sentenced in July 2018 to one year of probation.
Between February 2010 and September 2011, McLellan, Pennings, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees that the clients had agreed to pay to the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. McLellan, Pennings, and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports.
For example,
- In a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.”
- In June 2010, McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities that the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention.
- In March 2011, McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01%) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.
In June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged. Later, at McLellan’s direction, Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe. McLellan and Pennings sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney William Johnston of the Criminal Division’s Fraud Section prosecuted the case.
Former PCAOB Inspections Leader and KPMG Executive Director Pleads Guilty to Scheme to Steal Confidential PCAOB Information in Order to Fraudulently Improve KPMG’s PCAOB Inspection ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CYNTHIA HOLDER, a former Public Company Accounting Oversight Board (“PCAOB”) Inspections Leader and KPMG Executive Director, pled guilty today to participating in a scheme to defraud the Securities and Exchange Commission (the “SEC”) and the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections, the results of which were shared with, and utilized by, the SEC in carrying out its governmental functions. HOLDER pled guilty before the U.S. District Court Judge J. Paul Oetken.
Manhattan U.S. Attorney Geoffrey S. Berman said: “In the wake of the accounting fraud scandals of the early 2000s, Congress passed important laws to ensure the quality and accuracy of auditing work performed on publicly traded companies so that investors could have confidence in the reported financial results of those companies. The SEC was vested with the responsibility and authority of executing these laws and the PCAOB was created to play a key role: To audit the auditors. HOLDER undermined the work of the SEC and the PCAOB by stealing confidential inspection information from her former employer, the PCAOB, and helping insiders at her new employer, KPMG, to cheat the regulatory system put in place to protect the investing public. This was a revolving door tainted by fraud and today we hold the defendant accountable for her conduct.”
According to the allegations contained in the Indictment filed against HOLDER, along with her co-conspirators, David Middendorf, David Britt, Thomas Whittle, and Jeffrey Wada, and statements made in related court filings and proceedings:[1]
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”). The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally. The PCAOB transmits these Inspection Reports to the SEC, which utilizes them in carrying out its agency functions.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections and in 2014 received approximately twice as many comments as its competitor firms. By 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel such as HOLDER and HOLDER’s co-conspirator, Brian Sweet.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, HOLDER, Middendorf, Whittle, Britt, Wada, and Sweet worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected, in an effort to game the system and improve inspection results. For example, after Sweet began employment at KPMG, but while HOLDER was still employed by the PCAOB, HOLDER fed Sweet confidential PCAOB information about certain pending inspections. HOLDER did so while simultaneously seeking employment at KPMG. During the pendency of her efforts to obtain employment at KPMG, HOLDER – in violation of PCAOB rules – continued to work on KPMG inspections at the PCAOB. Once she secured a job at KPMG, HOLDER stole valuable confidential information on her way out of the PCAOB and then passed it on to Sweet, her new boss at KPMG.
In March 2016, HOLDER obtained the PCAOB’s confidential 2016 inspection selections for KPMG from Wada, who was still working at the PCAOB but who had recently been passed over for a promotion. Wada – who was not responsible for KPMG inspections at the PCAOB – accessed and stole valuable confidential information from the PCAOB and passed it on to HOLDER. HOLDER, in turn, provided the 2016 inspection selections to Sweet, who passed them to Middendorf, Whittle, and Britt. Middendorf, Whittle, Britt, and Sweet then agreed to launch a stealth program to “re-review” the audits that had been selected. In order to cover up their illicit conduct, Britt gave other KPMG engagement partners a false explanation for the re-reviews. The stealth re-review program allowed KPMG to double-check its audit work, strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.
In January 2017, Wada, who had again been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to HOLDER. At the same time, Wada provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG. Sweet shared the preliminary inspection selections provided by Wada with Whittle and Britt, while noting that the information was only preliminary. Whittle’s response was to ask Sweet to confirm that they would get the final list as well.
In February 2017, Wada texted HOLDER saying, “I have the grocery list. . . . All the things you’ll need for this year.” Wada then spoke to HOLDER and provided her with the full confidential 2017 final inspection selections. HOLDER again shared the stolen information with Sweet, who shared it with Middendorf, Whittle, and Britt. Middendorf, Whittle, Britt and Sweet agreed to inform engagement partners on the list so that extra attention could be paid to these audits in light of the forthcoming PCAOB inspections.
In 2017, a KPMG partner who received early notice that his/her engagement was on the confidential 2017 inspection list reported the matter, as a result of which KPMG’s Office of General Counsel launched an internal investigation. Thereafter, HOLDER and Sweet took a number of steps to destroy or fabricate evidence relevant to the investigation. For example, HOLDER deleted a number of relevant text messages, emails, and documents, and said she was going to purchase a “burner phone” so her conversations could not be monitored. Similarly, Sweet burned evidence of the 2017 inspection list and provided a falsified version of the list to KPMG counsel.
* * *
HOLDER, 52, pled guilty to one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and two counts of wire fraud, which each carry a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for April 5, 2019 at 10:30 a.m.
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.
Trial against the remaining defendants is scheduled to begin on February 11, 2019, before the Honorable J. Paul Oetken.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission, which has brought an administrative proceeding against the defendants.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Amanda Kramer, and Jessica Greenwood are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Mayes County Deputy Sheriff Surrenders to Authorities for Stealing Drug EvidenceRead the Press Release
Former Mayes County Deputy Sheriff Brett Mull, 47, of Pryor, surrendered to the Mayes County Sheriff’s Office on Monday in response to a Criminal Complaint filed in U.S. District Court alleging he misused his position to obtain methamphetamine that had been collected as evidence during drug investigations.
Mull was charged with tampering or obstruction of an official investigation or proceeding. According to the complaint, investigators discovered Oklahoma State Bureau of Investigation evidence submittal envelopes during a search of his residence, on July 3, 2018. The envelopes appeared to have previously contained methamphetamine seized during Mayes County law enforcement operations. The complaint alleges that Mull admitted to officers that he had removed the evidence from the Criminal Investigations Unit, which he supervised, for his own personal use.
“This case demonstrates the destructive lure of methamphetamine,” said U.S. Attorney Trent Shores. “More importantly, Mr. Mull has allegedly violated the public’s trust and abused his position as a deputy sheriff. Those serving in law enforcement must maintain a justice system that fosters trust among the people of this nation who count on these men and women. The U.S. Attorney’s Office will seek to hold Mr. Mull accountable in a court of law.”
This matter will proceed in United States District Court in Tulsa, where the Criminal Complaint is currently pending. A Criminal 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.
Former Equifax manager sentenced for insider tradingRead the Press Release
ATLANTA - Sudhakar Reddy Bonthu, a former manager at Equifax, was sentenced today after pleading guilty to insider trading. Bonthu bought and sold Equifax stock options before Equifax’s data breach was publicly announced, while working as a member of the team assembled to respond to the company’s massive data breach in 2017.
“Bonthu intentionally took advantage of information entrusted to him in order to make a quick profit,” said U.S. Attorney Byung J. “BJay” Pak. “The integrity of the stock markets and the confidence of investors are impaired by those who use nonpublic information for personal gain.”
“If we don’t hold company insiders to the same rules that govern regular investors, the public’s confidence in the stock market erodes,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will do everything in its power to hold accountable those who choose to take advantage of their inside knowledge.”
According to U.S. Attorney Pak, the charges and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta. During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million consumers. Sudhakar Reddy Bonthu was a software product development manager for Equifax’s Global Consumer Services team in August 2017. He was asked to assist in developing data breach remediation applications for an unnamed company and was further told that the project was a high priority with a short deadline because the company intended to announce the breach publicly on September 6, 2017. Among other tasks, his primary role was to help develop an online user interface that would allow consumers to determine whether they were impacted by the breach. Although he was never directly told it was actually Equifax that had been breached, he was entrusted with information that led him to that conclusion. For example, he knew that around 100 million individuals’ information was exposed as part of the breach and that the available information included names and Social Security numbers.
On September 1, 2017, Bonthu bought 86 “put” options in Equifax stock that expired on September 15, 2017. Those options allowed him to profit if the value of Equifax stock dropped within that two-week period. These trades also violated company policy, which did not allow employees to purchase option contracts in Equifax common stock. Equifax publicly disclosed the data breach on September 7, 2017, and its stock fell the next day. Bonthu then exercised his put options, making a profit of more than $75,000.
Sudhakar Reddy Bonthu, 44, of Atlanta, Georgia, was sentenced to eight months of home confinement by U.S. District Court Judge Amy Totenberg. He was fined $50,000 and he was also ordered to forfeit $75,979.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Lynsey M. Barron prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Energy Company Executive Sentenced in Connection with the Bribery Scheme of Former Executive Deputy Secretary to the Governor of New YorkRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PETER GALBRAITH KELLY JR., a former executive at Competitive Power Ventures (“CPV”), was sentenced to 14 months in prison for defrauding CPV by misrepresenting that the former Executive Deputy Secretary to the Governor, Joseph Percoco, had obtained state ethics approval for his wife to work at CPV. Co-defendants Percoco and Steven Aiello were convicted of charges relating to bribery on March 13, 2018, after an eight-week jury trial. The jury was deadlocked on the charges against KELLY. Joseph Gerardi, who was acquitted of all charges at the trial with Percoco, was convicted of all charges in a related trial earlier this year. KELLY pled guilty on May 11, 2018, to one count of conspiracy to commit wire fraud before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.
U.S. Attorney Geoffrey Berman said: “Braith Kelly admitted to giving the spouse of one of the most powerful men in Albany, Joseph Percoco, a low-show job at his company in order to ingratiate himself and his company with Percoco. Many consider this type of behavior to be ‘the way things are done’ in government. But our Office does not, and neither does the court.”
In imposing today’s sentence, Judge Caproni stated: “I hope the sentence will be heard in government affairs offices everywhere…you have to play by the rules.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
KELLY hired Percoco’s wife to a low-show job at CPV, and ran monthly payments to Percoco and his wife through a consultant who worked for CPV in order to disguise the source of the payments. KELLY also made sure that Percoco’s wife’s photograph and full name were not included in promotional materials for CPV, and he falsely told his superiors at CPV – on two separate occasions – that Percoco had obtained an ethics opinion from the Governor’s Office approving of Percoco’s wife’s employment with CPV, when in fact no such opinion existed.
* * *
In addition to the prison term, KELLY, 55, of Canterbury, Connecticut, was sentenced to three years of supervised release. He was also ordered to pay $247,000 in restitution to CPV.
On September 20, 2018, Judge Caproni sentenced Percoco to six years in prison. Aiello is scheduled to be sentenced on November 29, 2018. Gerardi is scheduled to be sentenced on December 6, 2018.
U.S. Attorney Berman praised the work of the Buffalo Field Office of the Federal Bureau of Investigation and New York Office of the Internal Revenue Service-Criminal Investigation, which jointly conducted this investigation with special agents from the U.S. Attorney’s Office.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Janis Echenberg, Robert Boone, David Zhou, and Matthew Podolsky are in charge of the prosecution.
Former Anne Arundel County Sheriff’s Office Employee Pleads Guilty to Providing Information to the Target of a Drug Trafficking InvestigationRead the Press Release
Baltimore, Maryland – Chanel Holland, age 36, of Glen Burnie, Maryland, pleaded guilty today to obstructing an official proceeding arising from Holland providing information regarding law enforcement activity, including sealed indictments and investigative information, to the target of a drug trafficking investigation. At the time, Holland was employed as the Human Resource Administrator in the Anne Arundel County Sheriff’s Department.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Anne Arundel County Police Chief Tim Altomare; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Anne Arundel County State’s Attorney Wes Adams; and Maryland State Prosecutor Emmet C. Davitt.
“Law enforcement officers fight every day to keep our streets safe from drug dealers and other criminals who endanger our communities. Chanel Holland betrayed the trust of those officers and the citizens of Maryland,” said United States Attorney Robert K. Hur. “In doing so, she not only broke the law, but also put lives at risk. This prosecution holds her accountable for those actions.”
According to Holland’s plea agreement, as a result of an investigation into a violent drug trafficking organization, on June 8, 2018, sealed indictments were returned for 10 individuals, including Traymont Wiley (a/k/a “Whamp”), who was believed to be the leader of the organization. The organization operated in Anne Arundel County and elsewhere, and was believed to be associated with several murders in Anne Arundel County. Sealed arrest warrants and search warrants for several locations were also authorized.
On Monday, June 11, 2018, a conversation between Traymont Wiley and another individual was intercepted on the wiretap that was authorized as part of the investigation. Wiley stated that he had been told that he was going to be arrested on drug and gang-related charges. Wiley’s call led to a flurry of conversations monitored on the intercepted lines between targets of the investigation. During the conversations, it was revealed that the person who provided Wiley the information about the sealed criminal charges was a female named “Chanel.” During the conversations, the targets were reading portions of the sealed indictment out loud, including the names of other co-defendants named in the sealed indictment. Wiley also read his charges, using the exact legal wording of the crimes as stated in the sealed indictment. Further, on June 12, 2018, an attorney hired by one of the co-defendants made a motion to the court citing the specific court case number on the sealed indictment and requesting the court to unseal and quash a pending sealed arrest warrant. All of this occurred before the indictment and arrest warrants were unsealed, and prior to the execution of the sealed search warrants.
A subsequent audit of Maryland Judiciary Secure Case Search revealed that Holland’s Secure Case Search account was the only account to conduct a search of all four names heard during the interception of the target lines. Secure Case Search is not available to the public and is restricted to law enforcement and other related entities. Holland’s duties as Human Resource Administrator did not include running searches for individuals through Secure Case Search. Holland’s cell phone records revealed that she had 96 contacts (message and voice) with Wiley on June 11, 2018. Surveillance video at the Anne Arundel County Circuit Court showed that on Monday, June 11, 2018, Holland had entered and exited the administration offices where her Secure Case Search account was accessed from her assigned computer.
On June 20, 2018, a search warrant was executed at Holland’s residence and her phone was recovered. A search of the phone messages revealed that Holland had been providing information to Wiley and others for several months, beginning as early as April 2018. On June 11, 2018, Holland sent a photograph of the sealed indictment to Wiley’s phone and stated, “Here’s a list of your charges.” Holland then had a series of phone calls with Wiley’s phone in which she provided additional information about the sealed warrants and the nature of the charges. Holland attempted to find out if a cooperating source had provided information to law enforcement which led to the charges against Wiley and the other co-conspirators, and she conveyed information about suspected cooperating sources to Wiley and others, including photos of those individuals and information about the status of their court cases.
Holland admitted that she did not want Wiley and his co-conspirators to get any additional charges, so she alerted them about the outstanding warrants and indictment. Holland further admitted that she knew her actions were likely to affect the federal grand jury proceeding.
Holland faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for March 26, 2019 at 3:00 p.m.
United States Attorney Robert K. Hur commended HSI Baltimore, the Anne Arundel County Police Department, the Maryland State Police, and the FBI for their work in the investigation, and thanked the Anne Arundel County State’s Attorney’s Office and the Office of the State Prosecutor for their assistance in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorney Derek E. Hines, who is prosecuting the case.
Final Defendants Convicted in Large-Scale Wilmington Drug ConspiracyRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Robert Shepherd III, 42, of Philadelphia, PA, pled guilty to conspiracy to distribute cocaine. Shepherd was the final defendant to be convicted in “Operation French Connection,” an FBI investigation that led to the prosecution of seven defendants in federal court. Just four weeks ago, Defendants Brian Wilson, a/k/a “Fudayl Wakim” and Mark Bower, a/k/a Kenneth Flowers, were convicted of similar charges after a week-long jury trial. Shepherd, Wilson, and Flowers are expected to be sentenced in early 2019.
The convictions are the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the FBI Delaware Violent Crime Safe Streets Taskforce. Investigators seized four firearms, over five kilograms of cocaine, and roughly 150 grams of heroin as part of the case.
U.S. Attorney Weiss stated, “A significant drug distribution network has been removed from the streets of Wilmington. The conviction of these three defendants is a result of the tremendous cooperation between the FBI, the Wilmington Police Department, and our HIDTA partners.
The FBI Delaware Violent Crime Safe Streets Taskforce is a part of the New Castle County HIDTA, comprised of the Delaware State Police, Delaware Department of Probation and Parole, New Castle County Police Department, University of Delaware Police Department, and Wilmington Police Department. The Delaware Department of Justice also assisted in this case. The case is being prosecuted by Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe and Assistant U.S. Attorney Alexander S. Mackler.
Farmville Man Sentenced to 90 Months for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced JAMES ANTRON DILDY, 38, of Farmville, North Carolina to 90 months imprisonment, followed by 6 years of supervised release.
DILDY was named in an Indictment filed on May 10, 2017 charging him with conspiracy to distribute and possess with the intent to distribute a quantity of cocaine. On October 4, 2017, DILDY pled guilty to that charge.
According to the investigation, DILDY conspired with others in Greenville, North Carolina and distributed over 190 grams of cocaine from December 30, 2015 to February 3, 2016.
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Winterville Police Department, East Carolina University Police Department, and North Carolina’s State Bureau of Investigation. Assistant United States Attorney Dena King represented the government.
Farmington Man Sentenced to 45 Months in Prison for Fentanyl TraffickingRead the Press Release
CONCORD - Kyle Leavy, 32, of Farmington, was sentenced to 45 months in federal prison for fentanyl trafficking charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the fall of 2017, Leavy sold fentanyl to an individual who was cooperating with the FBI on three separate occasions at locations in and around Rochester, New Hampshire. During the third drug deal, Leavy sold more than 40 grams of fentanyl.
Leavy previously pleaded guilty on June 29, 2018, to three counts of methamphetamine distribution.
“Fentanyl is a deadly drug that has caused great harm to the citizens of our state,” said U.S. Attorney Murray. “In order to protect our community, we are working closely with all of our law enforcement partners to identify and prosecute those who seek to profit from selling fentanyl and other dangerous drugs. I commend the work of the investigators in this case whose efforts stopped this drug dealer from doing business on our streets.”
“We simply cannot and will not allow drug dealers like Mr. Leavy to peddle this poison on the streets of our cities. They’re flooding our neighborhoods with these dangerous narcotics, making themselves rich while others suffer,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI’s Safe Streets Gang Task Force will continue to work with our law enforcement partners to stem the flow of drugs, and reduce crime.”
This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force. The Task Force is comprised of the FBI, the Federal Protective Service, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Portsmouth, Manchester, and Nashua. The case was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
###
Driver of Ridesharing Service Charged in White Plains Federal Court with Kidnapping and Wire FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging HARBIR PARMAR with kidnapping and wire fraud. PARMAR will be presented in White Plains federal court this afternoon before United States Magistrate Judge Judith C. McCarthy.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Harbir Parmar was hired to transport a woman from Manhattan to her home in White Plains. Instead, Parmar kidnapped, terrorized, and assaulted the woman before dumping her on the side of an interstate. No one – man or woman – should fear such an attack when they simply hire a car service.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The victim in this case utilized a ride sharing service trusting that her driver would provide a safe ride home. Instead, as we allege today, Harbir Parmar made an outrageous choice, deciding to unlawfully take advantage of his passenger at a moment of vulnerability for his own selfish motives. This kind of behavior should never be tolerated, and the FBI will continue to work tirelessly with our partners to bring justice to those who would shamelessly and illegally take advantage of others.”
Commissioner James P. O’Neill said: “The criminal acts outlined in this complaint are reprehensible. This individual’s behavior goes far beyond ridesharing companies’ efforts to revise their ethics codes and put stronger emphasis on background checks for their drivers. The people we serve deserve much better. These charges are appalling, and such behavior will never be tolerated by the NYPD or any of our local, state, or federal law enforcement partners.”
According to the allegations in the Complaint unsealed today:[1]
On February 21, 2018, an individual (“Victim-1”) ordered a vehicle through a ridesharing company (“Company-1”) to pick her up in Manhattan, New York, and take her to White Plains, New York, where she resided at the time. At approximately 11:30 p.m., Victim-1 entered a vehicle driven by PARMAR, who was licensed to use Company-1’s software as a driver. Victim-1 fell asleep in the vehicle. PARMAR changed Victim-1’s destination in Company-1’s mobile application to an address in Boston, Massachusetts and proceeded to drive toward Massachusetts. When Victim-1 awoke, the vehicle was on the side of the road and PARMAR was in the backseat of the vehicle with her, with his hand under her shirt touching the top of her breast. Upon Victim-1 waking up, PARMAR got back into the driver’s seat and continued driving. Victim-1 requested that she be taken to White Plains or to the police station but PARMAR refused. PARMAR instead dropped Victim-1 off on the side of I-95 in Branford, Connecticut. Victim-1 went to a nearby convenience store where she sought assistance.
In addition, from December 2016 through February 2018, PARMAR, sent allegedly false information about the destinations of Company-1’s customers through Company-1’s mobile application on at least 11 occasions. He also sent false information about the application of a cleaning fee to be applied to the accounts of Company-1’s customers on at least three occasions. In these instances, customers of Company-1 filed complaints with Company-1 about being overcharged for their rides. These instances have resulted in over $3,600 in improper charges to the accounts of Company-1’s customers.
* * *
PARMAR, 24, of Howard Beach, New York, is charged with one count of kidnapping, which carries a maximum sentence of life in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
There may be more victims of this alleged conduct. If you have information to report, contact the FBI’s Westchester Resident Agency at (914) 925-3888.
Mr. Berman praised the outstanding investigative work of FBI’s Westchester County Safe Streets Task Force, which is comprised of investigators from the FBI, U.S. Probation Office, New York State police, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, the New York City Police Department, Yonkers Police Department, Greenburgh Police Department, Mount Vernon Police Department and the Peekskill Police Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jamie Bagliebter is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Doctor sentenced for over $2 million in tax fraudRead the Press Release
ATLANTA – Dr. Michael Jon Kell, was sentenced to federal prison after a two-decade scheme to funnel millions of dollars in assets through a church he created to evade filing federal taxes.
“Despite earning millions of dollars and living a lavish lifestyle, Dr. Kell failed to file tax returns for several years when he falsely asserted that he was a minister under a vow of poverty,” said U.S. Attorney Byung J. “BJay” Pak. “The defendant will now be held accountable for evading his tax obligations.”
“Kell thought he could outsmart the IRS and avoid paying his fair share of taxes to the government by hiding his personal wealth behind the doors of a church he created and controlled in an effort to thwart the IRS while living a lavish lifestyle,“ said Thomas J. Holloman, Special Agent in Charge, Internal Revenue Service, Criminal Investigation. “Taxpayer’s who go to these lengths to evade paying their taxes will be investigated to the fullest extent and referred for prosecution to the Department of Justice in hopes of bringing individuals into compliance with the IRS.”
According to U.S. Attorney Pak, the charges and other information presented in court: Dr. Kell developed numerous patented technologies and worked as a consultant, which generated millions of dollars in income over the years. To hide this income, he founded and was the “pastor” of the First Meliorite Church, which he claimed to be a branch of the Universal Life Church. Dr. Kell directed his substantial income and assets into bank accounts belonging to the church—all of which were under Dr. Kell’s exclusive control. He used these accounts to cover all of his personal expenses—including overseas vacations, dining out, high-end clothing purchases, online dating services, and private school tuition for his children. Dr. Kell also transferred ownership of his multi-million dollar residence in Vinings several times over the years to various entities he created and controlled, in an effort to protect the property from creditors, including the Internal Revenue Service.
Dr. Michael Jon Kell, 68, of Powder Springs, Georgia, was sentenced by U.S. District Court Judge Eleanor L. Ross to one year, six months in prison. He was also ordered to pay $321,878.40 in restitution to the Internal Revenue Service.
This case was investigated by the Internal Revenue Service - Criminal Investigation and Special Enforcement Program.
Assistant U.S. Attorney Lynsey M. Barron prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Dallas Physicians and Nurses Sentenced to Prison for Role in $11 Million Medicare Fraud SchemeRead the Press Release
Two Dallas doctors and three nurses were sentenced yesterday in an $11.3 million Medicare fraud scheme involving false and fraudulent claims for home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office, and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), made the announcement
Patience Okoroji, 60, of Dallas County, Texas, was sentenced by U.S. District Judge Reed O’Connor of the Northern District of Texas to serve 120 months in prison for her role in the fraudulent scheme as a part-owner of Timely Home Health Services Inc. (Timely) and a Licensed Vocational Nurse (LVN). Kelly Robinett, M.D., 69, of Denton County, Texas, who was a former part-owner and supervising physician at Boomer House Calls (Boomer) of Frisco, Texas, was sentenced to serve 42 months in prison; Joy Ogwuegbu, 42, of Collin County, Texas, the former Director of Nursing at Timely, was sentenced to serve 42 months in prison and Kingsley Nwanguma, 48, of Dallas County, an LVN at Timely, was sentenced to serve 42 months in prison. Angel Claudio, M.D., 61, of Hidalgo County was sentenced to serve six months in prison.
On June 22, following a five-day trial before Judge O’Connor, Robinett and Nwanguma were each convicted of one count of conspiracy to commit health care fraud. In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Ogwuegbu was convicted of four counts of health care fraud. Claudio; Okoroji; Usani Ewah, 60, of Dallas County, a part-owner of Timely and a registered nurse (RN); and Shawn Chamberlain, 49, of Collin County, a part-owner of Boomer and a physician’s assistant, all pleaded guilty. Chamberlain and Ewah are awaiting sentencing.
According to evidence presented at trial, from 2007 through 2015, Okoroji, Ewah, Nwanguma, Ogwuegbu, Claudio, Robinett, and Chamberlain engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely, a home health agency, and Boomer, a physician house call company. The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided. The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.
Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed. Court documents also show that Robinett’s company, Boomer, billed Medicare over $1.6 million for medically unnecessary home health certifications and services and physician’s home visits.
This case was investigated by the HHS-OIG, FBI, and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
DRUG CARTEL LEADER CHARGED_Juan Perez-Vargas, aka Piolin, Indicted as Part of Coordinated Nationwide Enforcement Efforts Against Cartel Jalisco Nueva GeneracionRead the Press Release
NEWS RELEASE SUMMARY – October 16, 2018
SAN DIEGO – The Department of Justice announced today a series of measures to target and dismantle the Cartel Jalisco Nueva Generacion (CJNG) – one of the largest, most dangerous drug cartels currently operating in Mexico. As part of those measures, the U.S. Attorney’s Office for the Southern District of California, announces the indictment of CJNG leader, Juan Perez-Vargas, aka Piolin.
A federal grand jury in San Diego returned a sealed indictment on January 27, 2017, charging Perez-Vargas, with Conspiracy to Distribute Controlled Substances Intended for Importation, and Conspiracy to Import Controlled Substances. On January 30, 2017, the Clerk of the Court issued a sealed warrant for his arrest. On September 20, 2017, Perez-Vargas was arrested in Guadalajara, Mexico pursuant to these charges in the United States and is currently awaiting extradition to San Diego.
CJNG is one of the most powerful cartels in Mexico and the Department of Justice considers it to be one of the five most dangerous transnational criminal organizations in the world, responsible for trafficking numerous tons of cocaine, methamphetamine and fentanyl-laced heroin into the United States. Founded in 2011, CJNG has grown in size and strength rapidly since its inception. Today, the DEA estimates the CJNG exerts influence in 23 of 31 (75 percent) of Mexican states, including key drug production and transportation corridors. CJNG is also responsible for significant amounts of violence and loss of life in Mexico. CJNG gained its power in Mexico as a result of the organization’s disciplined command and control, sophisticated money laundering techniques, efficient drug transportation routes, and extreme violence. The cartel has also expanded globally, with significant presence and illicit business not only throughout the United States and Mexico, but also Europe, Asia, and Australia.
The unsealed indictment marks the conclusion of the initial phase of a multi-year OCDETF investigation. This joint Homeland Security Investigations (HSI) and Drug Enforcement Administration (DEA) investigation targeted the leadership elements, lieutenants, associates, and money launderers connected with CJNG, the Rafael Caro-Quintero (RCQ) DTO and Beltran Leyva Organization (BLO).
“With today’s announcement, the Attorney General has made clear the Department’s focus on dismantling transnational criminal organizations,” said U.S. Attorney Adam L. Braverman. “This indictment proves yet again that the Southern District of California will take the lead to relentlessly target and bring to justice the most significant drug kingpins no matter where they operate.”
U.S. Attorney Braverman also praised the outstanding work of the federal team from HSI Calexico / DEA Imperial County in the culmination of this investigation. U.S. Attorney Braverman also thanked Customs and Border Protection, the U.S. Marshals Service, the U.S. Department of Justice’s Office of Enforcement Operations and the Office of International Affairs for their ongoing assistance in this investigation.
“Today’s Indictment is an example of the dedicated and collaborative efforts by HSI Calexico and DEA Special Agents,” said David Shaw, Special Agent in Charge for HSI San Diego. “This joint effort allowed for the opportunity to narrow the investigation, identify more high level targets and significantly impact the cartel leadership structure. HSI agents remain committed to working with our partners and prosecutors in bringing additional members of this transnational criminal organization to justice.”
“Together with our law enforcement partners, DEA continues to target and take down some of the highest-level drug traffickers in the world,” said DEA San Diego Special Agent in Charge Karen Flowers. “CJNG is in our crosshairs and this indictment reflects that we will ensure that drug traffickers pay a very high price for their crimes.”
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number 17CR219-CAB
Juan Perez-Vargas, aka Piolin Age: 37 Guadalajara, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Customs and Border Protection, Office of Field Operations
United States Marshals Service
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
Customs and Border Protection, Office of Border Patrol
Immigration and Customs Enforcement, Enforcement and Removal Operations
El Centro Police Department
Brawley Police Department
Imperial County District Attorney’s Office
Imperial Valley, Law Enforcement Coordination Center
*An indictment or complaint is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Columbia Men Sentenced to Lengthy Prison Terms After Federal Convictions for Large Scale Heroin ConspiracyRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated that Michael Glover, a/k/a “Glove,” a/k/a “G,” a/k/a “HG,” age 48, and Jihad Salahadeen Pollard, age 44, both formerly of Columbia, South Carolina, were sentenced to lengthy sentences yesterday in federal court. Glover was sentenced to 324 months (27 years) imprisonment, which will be followed by 8 years of supervised release. Pollard was sentenced to 121 months (10.08 years) imprisonment, which will be followed by 4 years of supervised release.
Glover and Pollard each plead guilty last year to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Glover also plead guilty to a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, imposed the sentences.
Glover and Pollard were two of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining large amounts of heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. After those packages were intercepted, Glover and Pollard, along with their co-defendants, obtained heroin from suppliers in New York and transported it back to Columbia to stash houses and later distributed to street level dealers. The New York heroin suppliers were charged and convicted in the Eastern District of New York for their role in the heroin conspiracy.
Glover and Pollard were fugitives until their arrests in the summer of 2017 in San Antonio, Texas, where they were residing under false identities. Pollard was located after being arrested by Texas authorities for selling heroin. While in a Texas jail, a check of Pollard’s fingerprints determined that he was using a fake identity and wanted in South Carolina. The following month, the United States Marshals Service located Glover in Texas using a false identity and brought him back to South Carolina. Glover, who has prior North Carolina state convictions for sale of cocaine and possession with intent to distribute marijuana, was deemed a career offender by the court.
Six of their co-defendants were arrested in 2014 and plead guilty to their role in the drug conspiracy here in South Carolina and were sentenced in 2015 as follows: Eric Shawn Bradley, a/k/a “E,” age 50, of Columbia, was sentenced to 210 months imprisonment with 8 years of supervised release; Kenneth Crawford, age 44, of Washington, D.C., and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release; Charles Bradley, age 35, of Columbia, was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 43, of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release to follow; Larry Bookman, age 64, of Columbia, was sentenced to 70 months imprisonment with 6 years of supervised release; and Jessany Lyons, age 27, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Two other co-defendants charged in the indictment remain fugitives and are innocent until and unless proven guilty.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, United States Secret Service, Federal Bureau of Investigation, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, and the Orangeburg County Sheriff’s Department. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
#####
Colombian money launderers sentencedRead the Press Release
ATLANTA - Fernando Vidal-Gonzalez and Jhon Jimenez-Guzman, a former professional soccer player who played with Colombian Team America, have been sentenced for their roles in an international money laundering organization responsible for collecting over $1 million from drug trafficking in the United States. The defendants laundered the funds by filtering them through a network of bank accounts destined for Colombia. Vidal-Gonzalez and Jimenez-Guzman operated out of Cali, Colombia, and were extradited to face charges in the United States following the dismantling of their organization.
“International money launderers function as the financiers of criminal organizations, enabling the victimization of our communities while hiding behind a shield of anonymity built through a maze of bank accounts and business transactions,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue bring those who operate sophisticated money laundering networks to justice, even if they are operating in other countries.”
“Transnational criminal organizations who commit crimes against the United States face accountability for their actions regardless of where they may be physically located,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case shows HSI is committed to using its unique cross-border authority to hold accountable persons who commit serious crimes, and it reflects the excellent partnership between HSI, the Colombian government, and our federal partners.”
According to U.S. Attorney Pak, the charges and other information presented in court: In Cali, Colombia, Vidal-Gonzalez worked with Jimenez-Guzman, as part of a money laundering organization that functioned as a type of “Black Market Peso Exchange” (BMPE). A BMPE is a complex money laundering scheme in which drug proceeds or other illegal profits are layered into the financial system through numerous structured cash deposits with subsequent transfers into bank accounts held by various individuals and businesses (which may be legitimate or shell entities). The funds are also sometimes used to pay for exported goods. The end result is that the illegal funds are transferred to another country – in this case Colombia – in a manner that disguises the true source and owners of the funds, while evading currency exchange and income reporting requirements, taxes, and fees.
While the defendants were in Cali, Colombia, they directed an individual in the United States to open multiple bank accounts. Vidal-Gonzalez and Jimenez-Guzman then arranged for couriers to hand off large bags of cash from drug sales (as much as $108,040 at a time) to the individual at locations such as a park, a gas station, or a nightclub. The individual was told to deposit the money into bank accounts in small increments, and then transfer the funds out by numerous wires to other accounts and businesses located throughout the United States, Mexico, Colombia, and China. The ultimate goal was to transfer the funds back to Colombia. Law enforcement identified over $889,000 that Vidal-Gonzalez and Jimenez-Guzman laundered in this manner between May 2011 and August 2012.
Fernando Vidal-Gonzalez, 56, of Cali, Colombia, was sentenced on October 15, 2018, to eight years, one month in prison, with credit for 10 months served prior to extradition from Colombia, to be followed by three years of supervised release. Vidal-Gonzalez was convicted of conspiracy to commit money laundering after entering a guilty plea on July 6, 2018.
Jhon Jimenez-Guzman, 46, of Cali, Colombia, was sentenced on September 27, 2018, to six years, six months in prison, with credit for 10 months served prior to extradition from Colombia, to be followed by three years of supervised release. Jimenez-Guzman was convicted of conspiracy to commit money laundering after entering a guilty plea on June 19, 2018.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in partnership with the Colombian National Police.
Assistant U.S. Attorneys Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section; Lisa W. Tarvin, Deputy Chief of the General Crimes Section; and Garrett L. Bradford prosecuted the case. The Department of Justice’s Office of International Affairs assisted in securing the extradition of the defendants to the United States.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Coachella Valley-Based Conman Sentenced to 10 Years in Federal Prison in Fraud Schemes that Cost Victims Nearly $2 MillionRead the Press Release
RIVERSIDE, California – A La Quinta man with a criminal history going back nearly five decades has been sentenced to 120 months in federal prison for masterminding a series of fraud schemes that cost victims nearly $2 million.
Jerome Arthur Whittington, 68, received the 10-year sentence late Monday from United States District Judge Jesus G. Bernal, who said the defendant had “ruined the lives of some of the victims.”
Whittington was sentenced after pleading guilty in May 2016 to 33 counts of conspiracy, wire fraud and passport fraud.
Whittington orchestrated a series of fraud schemes in which he posed as various figures, including a former federal prosecutor, a successful attorney, a special agent with the FBI, and a wealthy real estate investor.
“Whittington’s criminal conduct was exceptional – the sheer volume and breadth of his fraudulent conduct is unlike anything I’ve seen from the bench,” Judge Bernal said on Monday.
In one of the schemes, Whittington posed as an attorney and falsely promised a victim that he could help the victim recover losses suffered after investing in two bogus companies. Whittington claimed he was able to seize assets from the two fraudulent companies, but the victim needed to provide money that would be used to “post bonds” that were required prior to seizing the assets. After Whittington falsely claimed that he had obtained a $4 million judgment, Whittington told the victim that representatives from the companies and other victims were very angry and that he should leave the country to avoid confrontations and harassment.
As a result of this “reloading” scheme, the victim paid Whittington approximately $290,000 to recover the losses – but Whittington simply spent the money on personal expenses, which included making payments to other victims of his schemes.
During the sentencing hearing, the victim told Judge Bernal that Whittington “ruined” his life by stealing retirement savings he had built up during a 40-year career.
In imposing the sentence, Judge Bernal said: “Whittington’s criminal history of defrauding people spanned from 1971 – 47 years. Most people recidivate less when they become older. But Whittington started the [latest] schemes while he was in the sixties.”
Once he completes the prison, Whittington will be on supervised release for seven years.
Judge Bernal also ordered that Whittington is responsible for paying nearly $1.7 million in restitution to the victims.
Two criminal cases against Whittington were part of an investigation conducted by the Federal Bureau of Investigation and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
This matter was handled by Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.
Co-Founder of Investment Fund Charged in Manhattan Federal Court for Participating in Multi-Million Dollar Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney, Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that JASON RHODES was arrested this morning on conspiracy, securities fraud, wire fraud, and investment adviser fraud charges stemming from his participation in a scheme to defraud investors by lying to investors in his hedge fund (the “Hedge Fund”) and using investor funds for his own personal use and to make repayments to earlier investors in a Ponzi-like manner.
RHODES is expected to be presented today in Magistrate Court before the Honorable Gabriel W. Gorenstein.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Rhodes participated in a scheme to solicit investors’ money by promising to use it for a stated purpose — to invest in securities — instead, he used it to line his own pockets. In typical Ponzi-like fashion, Rhodes allegedly kept his scheme operating by using investor funds to make payments to other investors who were demanding their money. Jason Rhodes now faces serious time in federal prison for his deceitful conduct.”
FBI Assistant Director-in-Charge William F. Sweeney, Jr. said: “Time and time again, we see Ponzi-like investment schemes fail and their perpetrators brought to justice. As we allege today, Jason Rhodes is just the latest example of someone who allowed greed to guide his actions as he defrauded investors of more than $19 million. The FBI will continue to aggressively investigate these cases as long as misguided individuals continue to foolishly pursue these fraudulent schemes.”
According to the Complaint[1]:
Beginning in at least November 2013 and through in or about December 2016, RHODES, together with his co-conspirators, solicited investments in the Hedge Fund by falsely representing to investors that their funds would be used for legitimate, specified, investment purposes, namely purchasing securities. In fact, RHODES failed to invest the investor monies as promised, but rather diverted investor funds to his own personal use and the personal use of his co-conspirators and to make repayments to other investors who were demanding their money. Through this scheme, RHODES and his co-conspirators defrauded approximately 25 investors out of a total of approximately $19.6 million.
Among other fraudulent acts, RHODES and a co-conspirator falsified an investor account statement using a computer software program to conceal the fact that most of the $4.2 million the investor had sent to the Hedge Fund had been misappropriated, including through transfers of the funds to, among other places, the personal bank accounts of RHODES and a co-conspirator, and to previous investors. After this investor discovered the fraudulent nature of the account statement, RHODES, working with others, obtained funds from yet another investor in order to make payments to this previous investor.
* * *
RHODES, 46, of Rowayton, Connecticut, was arrested this morning. RHODES is charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, one count of wire fraud, and one count of investment adviser fraud. The conspiracy count carries a maximum sentence of 5 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The investment adviser fraud count carries a maximum sentence of 5 years in prison and a maximum fine of $10,000. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the FBI. He also thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha J. Kobre and Jared Lenow are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Clearfield County Woman Charged with Stealing Mail Packages, ContentsRead the Press Release
JOHNSTOWN, Pa. – A Clearfield County resident was indicted today by a federal grand jury in Johnstown on a charge of theft of mail matter, United States Attorney Scott W. Brady announced today.
The indictment named Susan B. Koontz, 20, of Morrisdale, Pa., as the sole defendant.
According to the indictment presented to the court, from August 1, 2016, to December 11, 2016, Koontz stole and removed from the Morrisdale Post Office approximately 20 parcel packages and the items contained therein, for a total estimated value of $1,036.00.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Carbon County Man Sentenced to over 22 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Keiser, age 27, of Lehighton, Pennsylvania, was sentenced on October 9, 2018, to 270 months’ imprisonment and 20 years’ supervised release by United States District Court Judge Malachy E. Mannion for sexual exploitation of children. Judge Mannion also ordered that Keiser be required to comply with the Sexual Offender and Registration Notification Act (SORNA), a national system for the registration of sex offenders.
According to United States Attorney David J. Freed, in May 2017, Keiser produced videos and visual depictions of minors under the age of 12 engaged in sexually explicit conduct.
The charges stemmed from a federal law enforcement investigation, in which investigators executed search warrants that resulted in the discovery of a very large collection of child pornography on Keiser’s electronic devices, including child pornography images and videos created by Keiser. Keiser also shared child pornography with others via social media applications.
Keiser was indicted by a federal grand jury on August 22, 2017, after an investigation conducted by United States Homeland Security Investigations – Philadelphia Division. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
# # #
Broken Arrow Man Sentenced to 60 Months for ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew Evan Smith, age 37, of Broken Arrow, Oklahoma, was sentenced to 60 months imprisonment and 3 years supervised release for Arson, in violation of Title 18, United States Code, Sections 844(i) and 2. The charges arose from an investigation by the Tahlequah Police and Fire Departments, the Broken Arrow Police Department, the Oklahoma State Fire Marshal, the Cherokee County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Indictment alleged that on or about April 26, 2017, within the Eastern District of Oklahoma, the defendant, maliciously damaged, and attempted to damage and destroy, by means of fire, the Sherwin-Williams Paint Store located in Tahlequah, Oklahoma, which was used in an activity affecting interstate commerce.
During the early morning hours of April 26, 2017 the Tahlequah Fire Department responded to a fire at Sherwin Williams. When firefighters arrived the building and its contents had already suffered extensive fire damage. Firefighters discovered the electric meter had been removed from the building prior to their arrival, a safety measure generally taken by firefighters immediately upon arrival on a fire scene. The investigation that ensued showed there were multiple origins for the fire and the fire was determined to be arson. An inventory of the contents of Sherwin Williams revealed that several items, including ladders and paint sprayers, had been stolen from the store sometime just before the fire was started. Several of these items were pawned by Matthew Evan Smith within days after the fire.
United States Attorney Brian J. Kuester said, “Arson investigations are difficult and time-consuming. It takes determination, diligence and sometimes patience to solve and successfully prosecute people who commit arson. Those virtues were evident in the law enforcement professionals that brought this investigation to its just conclusion with the defendant being sentenced to the Bureau of Prisons.”
“Utilizing arson to mask another crime is an act of violence,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “The augmented financial loss and potential of harm to the public and emergency responders is particularly troubling in this case given Mr. Smith is a former firefighter.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Brockway, Pa.Woman Charged with Defrauding Social Security AdministrationRead the Press Release
JOHNSTOWN, Pa. - A resident of Brockway, Pa., has been indicted by a federal grand jury in Johnstown on a charge of conversion of government funds, United States Attorney Scott W. Brady announced today.
The indictment named Megan M. Pearce, 34, as the sole defendant.
According to the indictment presented to the court, from July 31, 2015, to March 1, 2016, Pearce did receive and convert falsely to her own use a total of $11,728, which represents approximately 16 separate Social Security Administration benefit payments made to her as representative payee for her sons, to which she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Boston Auto Body Shop Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a Hyde Park auto body shop pleaded guilty yesterday in federal court in Boston in connection with preparing false tax returns for his company, Automotive Specialties Inc.
Richard Poillucci, 62, of Easton, pleaded guilty to three counts of aiding the preparation of false tax returns. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 22, 2019. In July 2018, Poillucci was charged by an Information.
Poillucci was the owner of Automotive Specialties Inc. (ASI), an auto body shop specializing in repairing high-end vehicles. Between Sept. 30, 2012 and Sept. 30, 2015, Poillucci cashed millions of dollars of checks from the business at check cashing establishments in Massachusetts and Rhode Island and willfully failed to report that income, or expenses that he paid for in cash with the proceeds from those checks, on ASI’s tax returns. As a result, Poillucci failed to report approximately $569,367 to the IRS, thereby avoiding the payment of approximately $215,552 in federal income taxes.
Each of the counts of aiding the preparation of false tax returns provides for a sentence of no greater than three years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
Baltimore Man Pleads Guilty to Attempting to Rob Undercover ATF Special Agents at GunpointRead the Press Release
Baltimore, Maryland – Menard Hazelwood, age 29, of Baltimore, pleaded guilty today to assault of a federal officer and brandishing a firearm in the course of a crime of violence, in connection with the May 26, 2017, assault on two undercover Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Rob Cekada of the ATF Baltimore Field Division.
“This case demonstrates how drug trafficking can lead to violence. The defendants thought they were robbing drug customers. Unfortunately, this occurs all too often in Baltimore. These agents, like all law enforcement officers, put their lives on the line every day to identify and disrupt the drug dealers that bring violence to our streets,” said United States Attorney Robert K. Hur. “We are grateful for their service and sacrifice.”
“ATF focuses our efforts in Baltimore on drug trafficking crews that use firearms to maintain and expand their turf. ATF agents risk their personal safety each time they infiltrate a criminal organization, yet they do this because they know the importance of their mission to protect the community from these violent criminals,” said ATF Baltimore Special Agent in Charge Cekada. “We are grateful every day that our dedicated Special Agents were unharmed and have been able to fully resume their duties as law enforcement officers.”
According to his plea agreement, on May 26, 2017, during an ATF undercover operation, Hazelwood and a co-defendant attempted to rob two ATF undercover Special Agents (UCs). A confidential informant (CI) made arrangements to purchase $2,000 worth of heroin. The UCs had driven the CI to pick up the heroin dealer, with one UC driving and the other UC in the front passenger seat. They picked up the dealer and drove to a location in West Baltimore to meet with the dealer’s supplier. When they arrived at the location, the dealer got out of the car and told the CI and the UCs to wait. Hazelwood and his co-defendant immediately walked up to the vehicle. The co-defendant asked the UCs for a light. Hazelwood took advantage of the distraction and pointed a gun at the UC in the passenger seat, while the co-defendant pointed a silver revolver at the other UC. Hazelwood and his co-defendant demanded money. The UCs told Hazelwood and his co-defendant, who continued to hold them at gunpoint, that there was cash in the vehicle. The UCs then gave the distress signal to the covert ATF team that was monitoring the operation.
As the covert team arrived on the scene, the agents saw Hazelwood and his co-defendant pointing handguns at the UCs in the vehicle, and ordered them to put their hands up. Hazelwood’s co-defendant fled, and the responding ATF Special Agents fired their service weapons, striking the co-defendant. Hazelwood also broke away and ran to a nearby car, but was not able to get into the car. Special Agents arrested him at the scene.
Agents recovered the .44-caliber revolver brandished by Hazelwood’s co-defendant during the robbery, but did not recover the gun used by Hazelwood. Hazelwood admitted that he participated in the robbery, but that he did not know that the undercover Special Agents were federal agents at the time of the robbery.
Hazelwood, and the government have agreed that if the Court accepts the plea agreement, Hazelwood will be sentenced to between seven and 15 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for March 29, 2019 at 2:00 p.m.
Hazelwood’s co-defendant, Donte Smith, age 33, of Baltimore, is scheduled for a rearraignment on Friday, October 19, 2018 at 2:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting the case.
Baltimore Heroin Dealer Linked to 27 Overdoses—9 of Them Fatal—Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Karon Elijah Peoples, age 24, of Baltimore, Maryland, today to 10 years in federal prison, followed by five years of supervised release, for a heroin distribution conspiracy. Peoples admitted that during his participation in the conspiracy, he was responsible for distributing, or facilitating the distribution of, between nine and 10 kilograms of heroin. In addition, Peoples admitted that nine fatal overdose victims and 18 overdose survivors had contacted Peoples’ phones prior to their overdose—either by phone call or text message—in order to arrange for the purchase of heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Harford County Sheriff Jeffrey Gahler and the other members of the Harford County Narcotics Task Force--Harford County State’s Attorney Joseph I. Cassilly, Colonel William M. Pallozzi, Superintendent of the Maryland State Police, Chief Henry Trabert of the Aberdeen Police Department, Chief Charles Moore of the Bel Air Police Department, and Chief Teresa Walter of the Havre de Grace Police Department; and Director Tom Carr of the Washington/Baltimore High Intensity Drug Trafficking Area (HIDTA).
“Heroin dealers like Karon Peoples sell death and despair. Heroin is one of the leading causes of death in Maryland—and many victims are teenagers,” said Maryland U.S. Attorney Robert K. Hur. “We will continue to work with our local, state, and federal partners to attack this problem from all sides to reduce overdose deaths. Federal defendants, like Karon Peoples, face stiff federal sentences, and there is no parole in the federal system.”
According to Peoples’ plea agreement, during the fall of 2017, law enforcement began conducting an investigation of Peoples after learning that he was supplying significant quantities of heroin to customers throughout Maryland who traveled to Baltimore City to obtain the heroin. As part of the investigation, law enforcement conducted controlled purchases and undercover purchases of heroin from Peoples.
On December 7, 2017, search warrants were executed at Peoples’ residence, at a stash location on West Lexington Street in Baltimore, and on his vehicle. Law enforcement recovered 900 grams of heroin; $405,156 in cash stored in a blue checkered Louis Vuitton bag; a Rolex watch; a money counter; and digital scales and other drug paraphernalia from the stash location. Law enforcement also recovered 68 grams of heroin from the vehicle.
On December 7, 2017, and on January 9, 2018, when Peoples was arrested as the result of a federal arrest warrant, law enforcement seized a total of 49 cellular phones from Peoples and the search locations. A court-authorized search of the phones revealed hundreds of text messages between Peoples, his co-conspirator, and his customers arranging for the acquisition, purchase, and sale of heroin. The text messages also established that Peoples was part of the conspiracy from no later than May 2015 until his arrest in January 2018.
The Harford County Narcotics Task Force and DEA coordinated with other federal, state, and local law enforcement agencies through the assistance of the HIDTA Investigative Support Center to collect information about customers of Peoples who were heroin overdose victims. After running searches for the 49 cellular telephones possessed by Peoples, law enforcement found links between cases involving a total of 27 overdose victims—nine who died as a result of the overdose and 18 who survived. The victims, who resided in Maryland, Pennsylvania, and West Virginia, had contacted Peoples’ drug phones prior to their overdoses in order to arrange for the purchase of heroin.
United States Attorney Robert K. Hur commended the DEA, the Harford County Narcotics Task Force, comprised of members of the Harford County Sheriff's Office, Maryland State Police, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department and the Harford County State’s Attorney’s Office, and the Washington/Baltimore HIDTA for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Derek E. Hines, who prosecuted the case.
Bailey Boys Gang Leader Sentenced to 40 Years in Federal Prison for His Involvement in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a Kenneth Pettway, Jr., 34, of Buffalo, NY, who was convicted by a federal jury of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of crack cocaine, and possession with intent to distribute heroin and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm, was sentenced to serve 40 years in prison by U.S. District Judge Thomas J. McAvoy.
Assistant U.S. Attorneys Michael P. Felicetta and Seth T. Molisani, who handled the prosecution of the case, stated that the defendant was a leader of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. The gang is believed to be responsible for multiple acts of violence, including assaults, shootings, murders, and armed robberies.
As a leader of the Bailey Boys Gang, the defendant supplied illegal narcotics, including crack cocaine, heroin and marijuana, to members and associates of the gang for further distribution in the City of Buffalo. Pettway also provided multiple firearms to members and associates to be used for protection of gang territory, drugs and drug proceeds.
The evidence presented by the government during trial included a rap video entitled “Picked up in a Raid,” which the defendant created and posted to his You Tube account. The video, which purports to be based on a true story, contains images and lyrics related to the defendant’s drug distribution, the silencing of snitches, and the execution of a search warrant by law enforcement officers.
On January 18, 2012, a search warrant was executed at the residence of Demetrius Black residence on Roosevelt Avenue. Officers seized two firearms, heroin, cocaine, marijuana, scales, baggies, and other drug paraphernalia.
“Those who sell drugs and participate in violence on the streets of Buffalo should be on notice that my Office, with our federal, state, and local partners, are doubling down,” said U.S. Attorney Kennedy. “Last Friday, this defendant’s younger brother, Collins, was convicted of drug charges following a trial in a separate case in federal court. Kenneth has now learned that the next 40 years of his life will be spent in federal prison. Young men such as the Pettways, who insist on breaking the law, need to recognize that by engaging in this sort of criminal behavior, you are not only destroying your community, you are destroying your own families, and your own lives.”
Pettway is one of 15 Bailey Boys Gang leaders, members, and associates charged in this case. To date, 14 have been convicted.
Kenneth Pettway’s sentencing is the result of an ongoing investigation into the activities of the Bailey Boys Gang and other criminal gangs that is being conducted by the United States Attorney’s office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John J. Flynn; and in conjunction with the Buffalo Police Department, under the direction of Police Commissioner Byron Lockwood; the Federal Bureau of Investigation Safe Streets Task Force, under the Direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.# # # #