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27 November 2018
Fort Dodge Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty November 26, 2018, in federal court in Sioux City.
Craig Eugene Essing, 59, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Essing admitted that from June 2015 through September 2017, he and others in the conspiracy distributed over 100 pounds of methamphetamine in the Fort Dodge area. Essing was obtaining methamphetamine from sources in Des Moines, Iowa for redistribution in the Fort Dodge area. During a search warrant at Essing’s residence on September 8, 2017, law enforcement seized approximately fourteen ounces of methamphetamine, eleven firearms, numerous rounds of ammunition, approximately $4,900, three digital scales, packaging material, and other drug paraphernalia.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Essing remains in custody of the United States Marshal pending sentencing. Essing faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ajay Alexander and Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, DCI Criminalist Laboratory, Iowa State Patrol, Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Dodge Police Department and the Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3047. Follow us on Twitter @USAO_NDIA.
Former Venezuelan National Treasurer Sentenced to 10 years in Prison for Money Laundering Conspiracy Involving over $1 Billion in BribesRead the Press Release
A former Venezuelan national treasurer was sentenced today for his role in a billion-dollar currency exchange and money laundering scheme.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, was sentenced today to 10 years in prison by U.S. District Judge Robin L. Rosenberg of the Southern District of Florida. Andrade pleaded guilty under seal on Dec. 22, 2017 to one count of conspiracy to commit money laundering. As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Raul Gorrin Belisario, 50, and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government. Andrade received cash as well as private jets, yachts, cars, homes, champion horses, and high-end watches from his co-conspirators. As part of his plea agreement, Andrade agreed to a forfeiture money judgment of $1 billion and forfeiture of all assets involved in the corrupt scheme, including real estate, vehicles, horses, watches, aircraft and bank accounts.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC D.C. investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida’s Criminal Division and Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Venezuelan National Treasurer Sentenced to 10 Years in Prison for Money Laundering Conspiracy Involving over $1 Billion in BribesRead the Press Release
A former Venezuelan national treasurer was sentenced today for his role in a billion-dollar currency exchange and money laundering scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, was sentenced today to 10 years in prison by U.S. District Judge Robin L. Rosenberg of the Southern District of Florida. Andrade pleaded guilty under seal on Dec. 22, 2017 to one count of conspiracy to commit money laundering. As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Raul Gorrin Belisario, 50, and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government. Andrade received cash as well as private jets, yachts, cars, homes, champion horses, and high-end watches from his co-conspirators. As part of his plea agreement, Andrade agreed to a forfeiture money judgment of $1 billion and forfeiture of all assets involved in the corrupt scheme, including real estate, vehicles, horses, watches, aircraft and bank accounts.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC D.C. investigated this case. This case is being prosecuted by Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida’s Criminal Division. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former VA Employee Indicted for Allegedly Stealing Government Vehicles and Charging over $15,000 on Federal Gas CardsRead the Press Release
LOS ANGELES – A federal grand jury today named an Inglewood man in a three-count indictment that accuses him of stealing two government vehicles and illegally charging more than $15,000 on U.S. government gas cards for gas that he sold to friends at a discount.
Kyle Sidney Freedman Flournoy, 34, was charged in the indictment with conspiracy and two counts of retaining stolen government property.
Flournoy was arrested on November 6 by federal authorities pursuant to a criminal complaint filed in August.
At the time of the alleged criminal conduct in 2013, Flournoy was employed by the U.S. Department of Veterans Affairs. According to court documents, Flournoy stole a VA vehicle and rented it out to associates – including gang members – for $30. Flournoy is also charged with stealing a second VA vehicle in late 2013.
The indictment also charges Flournoy with unlawfully using more than 10 different federal government gas cards over the course of several weeks to charge more than $15,000 in gas. Flournoy allegedly gave the gas to others who paid him approximately 60 cents on the dollar.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted on all three charges in the indictment, Flournoy would face a statutory maximum sentence of 25 years in federal prison.
Flournoy is scheduled to be arraigned on the indictment on December 3.
This case is being investigated by the United States General Services Administration, Office of the Inspector General, and the United States Department of Veterans Affairs, Office of the Inspector General, Criminal Investigations Division.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
Former Las Cruces U.S. Customs and Border Protection Officer Sentenced to 12 Months in Prison for Obstruction of JusticeRead the Press Release
ALBUQUERQUE – Christopher Holbrook, 32, a former U.S. Customs and Border Protection (CBP) officer, was sentenced today in federal court in Las Cruces, New Mexico, to 12 months and a day in prison followed by two years of supervised release for obstruction of justice, announced Eric Dreiband, Assistant Attorney General of the Justice Department’s Civil Rights Division, U.S. Attorney John C. Anderson of the District of New Mexico, and Hector Mancha, CBP Director of Field Operation, El Paso.
According to the defendant’s guilty plea, Holbrook falsified an official report regarding his use of force against an individual, referred to as R.A.M., on March 23, 2015. Holbrook’s report falsely claimed that he used the minimum amount of force necessary to control R.A.M.; in pleading guilty, Holbrook admitted that he intentionally swept R.A.M.’s legs out from under him and caused R.A.M.’s head to hit the floor. At the time of the incident, Holbrook was working as a CBP officer in Las Cruces.
“The defendant’s intentional falsification of a report to cover up his misconduct undermines the oath that all federal law enforcement take to uphold and fairly enforce the law,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to prosecute such violations vigorously.”
“We depend on law enforcement officers to carry out their duties in a way that respects their positions of authority, the law and the communities they serve,” said U.S. Attorney John C. Anderson. “When those who are sworn to uphold the law and protect others instead abuse their power and position, they undermine the public’s confidence in the justice system and our government institutions. We cannot and will not tolerate such abuses.”
“The vast majority of CBP officers embody our core values, perform their duties with integrity, treat travelers with dignity and respect, and are dedicated to our mission of securing our borders while facilitating legitimate trade and travel,” said Hector Mancha, CBP Director of Field Operation, El Paso. “U.S. Customs and Border Protection stresses professionalism, honor and integrity in every aspect of our mission and does not tolerate actions by any employee that would tarnish the reputation of our agency.”
This case was investigated by CBP’s Office of Professional Responsibility. Assistant U.S. Attorney Marisa Ong of District of New Mexico U.S. Attorney’s Law Cruces Branch Office and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice are prosecuting the case.
Former Las Cruces U.S. Customs and Border Protection Officer Sentenced to 12 Months in Prison for Obstruction of JusticeRead the Press Release
Christopher Holbrook, 32, a former U.S. Customs and Border Protection (CBP) officer, was sentenced today in federal court in Las Cruces, New Mexico, to 12 months and a day in prison followed by two years of supervised release for obstruction of justice, announced Eric Dreiband, Assistant Attorney General of the Justice Department’s Civil Rights Division, U.S. Attorney John C. Anderson of the District of New Mexico, and Hector Mancha, CBP Director of Field Operation, El Paso.
According to the defendant’s guilty plea, Holbrook falsified an official report regarding his use of force against an individual, referred to as R.A.M., on March 23, 2015. Holbrook’s report falsely claimed that he used the minimum amount of force necessary to control R.A.M.; in pleading guilty, Holbrook admitted that he intentionally swept R.A.M.’s legs out from under him and caused R.A.M.’s head to hit the floor. At the time of the incident, Holbrook was working as a CBP officer in Las Cruces.
“The defendant’s intentional falsification of a report to cover up his misconduct undermines the oath that all federal law enforcement take to uphold and fairly enforce the law,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to prosecute such violations vigorously.”
“We depend on law enforcement officers to carry out their duties in a way that respects their positions of authority, the law and the communities they serve,” said U.S. Attorney John C. Anderson. “When those who are sworn to uphold the law and protect others instead abuse their power and position, they undermine the public’s confidence in the justice system and our government institutions. We cannot and will not tolerate such abuses.”
“The vast majority of CBP officers embody our core values, perform their duties with integrity, treat travelers with dignity and respect, and are dedicated to our mission of securing our borders while facilitating legitimate trade and travel,” said Hector Mancha, CBP Director of Field Operation, El Paso. “U.S. Customs and Border Protection stresses professionalism, honor and integrity in every aspect of our mission and does not tolerate actions by any employee that would tarnish the reputation of our agency.”
This case was investigated by CBP’s Office of Professional Responsibility. Assistant U.S. Attorney Marisa Ong of District of New Mexico U.S. Attorney’s Law Cruces Branch Office and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice are prosecuting the case.
Former EMT and Volunteer Firefighter Sentenced to 135 Months in Prison for Enticing Child to Produce Sexually Explicit ImagesRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man who worked as an emergency medical technician and volunteer firefighter was sentenced today to 135 months in prison for enticing a child to produce sexually explicit images, U.S. Attorney Craig Carpenito announced.
Zachary Motta, 24, of Iselin, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of online enticement of a minor to engage in criminal sexual activity. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Beginning in October 2016, Motta communicated with a boy who told Motta he was 12 years old. Motta used a computer and internet connection to ask the victim to send a picture of himself nude, which he did.
In addition to the prison term, Judge Wolfson sentenced Motta to five years of supervised release and ordered him to pay a $5,000 Justice for Victims of Trafficking Act assessment.U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Newark Special Agent in Charge Gregory W. Ehrie, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael Policastro Esq., Milltown, New Jersey
Former Biscayne Park Police Chief Sentenced for Conspiracy to Deprive Persons of Civil Rights by Ordering Officers to Make False ArrestsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Katherine Fernandez Rundle, Miami-Dade State Attorney, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Chief Raimundo Atesiano was sentenced to 36 months incarceration for conspiracy to deprive individuals of their civil rights.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered former officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. According to court filings, Chief Atesiano intentionally encouraged those officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries. This created a fictitious 100% clearance rate for that category of crime.
“The U.S. Attorney’s Office is committed to holding those individuals accountable who abuse their positions of power to strip others of their civil rights,” stated U.S. Attorney Fajardo Orshan. “Today, former Police Chief Raimundo Atesiano stood before the court to answer for his crimes and the federal prison sentence that was imposed is one step toward justice for the victims and our South Florida community.”
“For his own professional benefit, Chief Atesiano corruptly and disgracefully abused his authority and the power of his office to create fictitious clearance statistics by falsely arresting individuals,” said Assistant Attorney General Eric Dreiband. “This kind of abuse of power has no place in our nation and is contrary to American ideals, the rule of law, and fundamental fairness. The Department will continue to hold accountable officers who violate individual rights and betray the communities that they have been entrusted to serve and protect.”
“Every day, thousands of dedicated, able and honorable law enforcement officers take to the streets to protect communities throughout South Florida,” said George L. Piro, Special Agent in Charge, FBI Miami. “It is on their behalf that the FBI seeks to root out police officers, and other government officials, who violate the civil rights of our citizens.”
“Putting an arrest statistic above the rights of an innocent man instead of working to protect all our citizens undermines the safety goals of every Miami-Dade police department,” said State Attorney Katherine Fernandez Rundle. “Miami-Dade’s residents deserve honesty and integrity, qualities that Raimundo Atesiano deliberately failed to deliver.”
“Atesiano’s self-serving actions are contrary to the law enforcement values that officers are sworn to uphold and deplorable to the citizens of Biscayne Park and the men and women in law enforcement who put their lives in harm’s way to keep us safe,” said FDLE Miami Special Agent in Charge Troy Walker.
According to previous court filings, at Chief Atesiano’s direction, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In court filings related to his guilty plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions.
In a prior hearing, it was disclosed that Chief Atesiano also instructed former officers Dayoub and Fernandez to unlawfully arrest and falsely charge “T.D.,” a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting T.D., a 16-year old juvenile. Former officer Guillermo Ravelo was sentenced to 27 months incarceration for his role in conspiring to deprive persons of civil rights and, in a separate incident, depriving a motorist of civil rights under color law by using excessive force.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Biscayne Park Police Chief Sentenced for Conspiracy to Deprive Persons of Civil Rights by Ordering Officers to Make False ArrestsRead the Press Release
WASHINGTON – Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Chief Raimundo Atesiano was sentenced to 36 months incarceration for conspiracy to deprive individuals of their civil rights.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered former officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. According to court filings, Chief Atesiano intentionally encouraged those officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries. This created a fictitious 100% clearance rate for that category of crime.
“For his own professional benefit, Chief Atesiano corruptly and disgracefully abused his authority and the power of his office to create fictitious clearance statistics by falsely arresting individuals,” said Assistant Attorney General Eric Dreiband. “This kind of abuse of power has no place in our nation and is contrary to American ideals, the rule of law, and fundamental fairness. The Department will continue to hold accountable officers who violate individual rights and betray the communities that they have been entrusted to serve and protect.”
“The U.S. Attorney’s Office is committed to holding those individuals accountable who abuse their positions of power to strip others of their civil rights,” stated U.S. Attorney Fajardo Orshan. “Today, former Police Chief Raimundo Atesiano stood before the court to answer for his crimes and the federal prison sentence that was imposed is one step toward justice for the victims and our South Florida community.”
“Every day, thousands of dedicated, able and honorable law enforcement officers take to the streets to protect communities throughout South Florida,” said George L. Piro, Special Agent in Charge, FBI Miami. “It is on their behalf that the FBI seeks to root out police officers, and other government officials, who violate the civil rights of our citizens.”
“Putting an arrest statistic above the rights of an innocent man instead of working to protect all our citizens undermines the safety goals of every Miami-Dade police department,” said State Attorney Katherine Fernandez Rundle. “Miami-Dade’s residents deserve honesty and integrity, qualities that Raimundo Atesiano deliberately failed to deliver.”
“Atesiano’s self-serving actions are contrary to the law enforcement values that officers are sworn to uphold and deplorable to the citizens of Biscayne Park and the men and women in law enforcement who put their lives in harm’s way to keep us safe,” said FDLE Miami Special Agent in Charge Troy Walker.
According to previous court filings, at Chief Atesiano’s direction, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In court filings related to his guilty plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions.
In a prior hearing, it was disclosed that Chief Atesiano also instructed former officers Dayoub and Fernandez to unlawfully arrest and falsely charge “T.D.,” a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting T.D., a 16-year old juvenile. Former officer Guillermo Ravelo was sentenced to 27 months incarceration for his role in conspiring to deprive persons of civil rights and, in a separate incident, depriving a motorist of civil rights under color law by using excessive force.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
Former Attorney Charged with Defrauding Investors in a Fantasy Football Lottery LeagueRead the Press Release
ATLANTA –Timothy Cobb, 53, of Atlanta, was arraigned before U.S. Magistrate John K. Larkins III on wire and tax fraud charges for duping investors in a fantasy football lottery league.
“This defendant allegedly defrauded investors who believed he would run a fantasy football lottery league through the Georgia Lottery,” said U. S. Attorney Byung J. Pak. “Cobb gambled on getting away with his scheme, but he lost.”
“Cobb is no longer engaging in fantasy but reality,” said Thomas J. Holloman, Special Agent in Charge, IRS- Criminal Investigation. “Today’s indictment represents the government’s effort to throw a penalty flag against Cobb’s illegal activity to defraud investors in his startup of a fantasy league football lottery. Working these types of cases should show the taxpayer’s that everyone has a responsibility to report ‘all’ income on their tax returns.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Cobb is a former attorney who started a company named Skyboxx Sports, LLC. Through Skyboxx, Cobb allegedly collected $500,000 from investors to start a fantasy football lottery league with the Georgia Lottery Corporation. Instead of using the proceeds from investors for business development, Cobb allegedly spent the money on himself for trips to Barbados and Mexico City, dining in restaurants in Atlanta, Miami Beach and New York, and other personal items. Cobb allegedly then filed false federal income tax returns that deliberately omitted the information he stole from his investors.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Allentown Finance Director Sentenced in Former Mayor Edwin Pawlowski’s Pay-to-Play SchemeRead the Press Release
PHILADELPHIA – Deputy United States Attorney Louis D. Lappen announced that Garret Strathearn, former Allentown Finance Director, was sentenced today for his role in a pay-to-play bidding scheme involving former Allentown Mayor Edwin Pawlowski. United States District Judge Juan Sanchez sentenced Strathearn to 5 years’ probation, the first six months of which will be home confinement with electronic monitoring. He was also ordered to pay a $5,000 fine and a $100 special assessment.
Strathearn pleaded guilty in December 2016 to conspiracy to commit mail and wire fraud and later testified at Pawlowski’s trial in January 2018. Strathearn admitted to playing a critical role in steering the city’s delinquent real estate tax collection contract to Pawlowski’s preferred vendor, Northeast Revenue, in contravention of the standard process employed by the city to award contracts. In return for the contract, Northeast Revenue made political contributions to Pawlowski’s failed campaigns for Pennsylvania Governor and United States Senate.
In addition to Pawlowski, who was convicted at trial and sentenced to 15 years’ imprisonment, Strathearn’s co-conspirators included the following individuals: Michael Fleck, a campaign consultant; James Hickey, a business consultant; Francis Dougherty, the Allentown Managing Director; and Dale Wiles; an Allentown Assistant City Solicitor. These defendants all have pleaded guilty and similarly admitted to steering contracts to Pawlowski’s preferred vendors
“Strathearn’s criminal conduct contributed to Ed Pawlowski’s pay-to-play business model, which Pawlowski brazenly operated out of the Allentown City Hall,” said Deputy U.S. Attorney Lappen. “Taxpayers have a right to expect that public officials have the interests of the entire city in mind, not just the interests of their political cronies. And businesses have a right to expect that when they submit contract proposals, they will be judged on the merits rather than on the size of their campaign contributions.”
“The pay-to-play culture took root at Allentown City Hall,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Garrett Strathearn admitted to subverting the city’s contracting process—put in place to ensure fairness—at Edwin Pawlowski’s direction. The FBI is determined to bring to justice corrupt officials willing to break the law to further their own interests.”
“The sentence handed down today underscores our collective efforts to enforce the law and ensure public trust,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Those contemplating similar conduct should stop in their tracks and simply consider the consequences of taking the next step.”
This case was investigated by the FBI and IRS Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Anthony J. Wzorek and Michelle L. Morgan.
Felon from Albuquerque Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Adam Sadlowski, 40, of Albuquerque, N.M., was sentenced today in federal court to 51 months in prison for being a felon in possession of firearms and ammunition. Sadlowski will be on supervised release for three years after completing his prison sentence.
Bernalillo County Sheriff’s Office (BCSO) deputies arrested Sadlowski at his home on Feb. 22, 2016. According to court records, they found 13 firearms at Sadlowski’s residence, including two previously reported stolen. Deputies also found assorted ammunition. Sadlowski was prohibited from possession any firearms or ammunition at this time because of his previous criminal convictions for trafficking a controlled substance, receiving or transferring a stolen vehicle, and tampering with evidence.
Sadlowski pled guilty to the indictment on April 5, 2018. He admitted possessing two handguns and ammunition despite being a convicted felon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with the BCSO. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case under Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Felon Sentenced to 37 Months for Possessing 21 Firearms and 22,000 Rounds of AmmunitionRead the Press Release
PHOENIX – Last week, Timothy Jason Wells, 31, of Kingman, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 37 months’ imprisonment, to be followed by three years of supervised release. Wells had previously pleaded guilty to one count of felon in possession of a firearm.
From June through December 2016, Wells posted photographs of himself with a firearm on Facebook and wrote posts about possessing and shooting firearms. Agents executed a search warrant at Wells’ home on July 18, 2017, and found a loaded firearm in his bedroom, twenty additional firearms inside a gun safe, and approximately 22,000 rounds of ammunition and high-capacity magazines in the garage. Wells had a previous felony conviction for unlawful sexual intercourse with a minor.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Lisa E. Jennis, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR 17-01114-PHX-DLR
RELEASE NUMBER: 2018-158_Wells
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
PHOENIX – Last week, Timothy Jason Wells, 31, of Kingman, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 37 months’ imprisonment, to be followed by three years of supervised release. Wells had previously pleaded guilty to one count of felon in possession of a firearm.
From June through December 2016, Wells posted photographs of himself with a firearm on Facebook and wrote posts about possessing and shooting firearms. Agents executed a search warrant at Wells’ home on July 18, 2017, and found a loaded firearm in his bedroom, twenty additional firearms inside a gun safe, and approximately 22,000 rounds of ammunition and high-capacity magazines in the garage. Wells had a previous felony conviction for unlawful sexual intercourse with a minor.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Lisa E. Jennis, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR 17-01114-PHX-DLR
RELEASE NUMBER: 2018-158_Wells
# # #
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.
Federal Court in Illinois Bars Tax Return Preparer and Business from Preparing Tax ReturnsRead the Press Release
A federal court in Chicago, Illinois, entered a permanent injunction against Leticia Rodriguez and Rodriguez Tax Services, barring them from preparing federal tax returns for others and owning a preparation business, the Justice Department announced today.
The court also ordered Rodriguez to disgorge $33,660, which it stated was "a reasonable approximation of the fees she earned for fraudulently reporting Child Care Expense claims on 187 of her clients' tax returns."
In its order, the court found that Rodriguez had continually and repeatedly prepared tax returns in violation of the Internal Revenue Code. Rodriguez prepared fraudulent federal tax returns for her customers by fabricating itemized deductions, falsifying self-reported income, and falsely claiming Child Care Expenses, according to the complaint filed by the United States in this case.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Father and Son Sentenced to Five Years in Prison for Selling Fentanyl and Oxycodone on the Dark WebRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL LUCIANO and PHILIP LUCIANO, a father and son, were sentenced today to five years in prison for selling fentanyl and oxycodone over the “dark web,” including on the dark web marketplace AlphaBay. The LUCIANOS also sold fentanyl that substantially contributed to a victim’s non-fatal overdose in 2015. Today’s sentences were imposed by U.S. District Judge Lewis A. Kaplan.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendants’ dangerous fentanyl distribution contributed to a victim’s overdose. Fortunately, the victim survived. After this overdose, the defendants continued to deal drugs, using the dark web – a place where some criminals think they can hide – to sell fentanyl and oxycodone, two highly addictive and potentially lethal opioids. For their criminal conduct, this father-son duo has now been sentenced to federal prison.”
According to the allegations in the Complaint and the Indictment to which the LUCIANOS pled guilty, as well as statements made in court:
From at least in or about January 2015 through July 2017, MICHAEL LUCIANO and PHILIP LUCIANO conspired to distribute fentanyl, butyryl fentanyl (a fentanyl analogue), and oxycodone. They sold narcotics both in person and – from at least February 2016 through July 2017 – over the dark web. In March 2015, the LUCIANOS sold fentanyl to a repeat customer who overdosed, was administered naloxone, taken to the hospital, and survived. The overdose victim sent text messages to PHILIP LUCIANO from the hospital, stating, “I called you / Your dad at the house and saw him / I got back home and shot some. I thought it might have been too much, especially considering my last dose of sub was Saturday. I became unresponsive and my friend called an ambulance. They gave me narcan and I’m at the hospital now / Can I settle up and get 60 more tomorrow?” PHILIP LUCIANO replied, “Give me a call when u can.”
Despite this overdose in 2015, the LUCIANOS continued to sell drugs, including over the dark web in 2016 and 2017. On AlphaBay, they sold narcotics using the vendor name “Zane61.” AlphaBay customers repeatedly provided positive feedback for fentanyl and oxycodone they purchased from Zane61. One of the LUCIANOS’ AlphaBay customers wrote, for example: “Great stealth, fast shipping, legit product. Perfect 10/10.” In July 2017, MICHAEL LUCIANO gave a confession to agents from the U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”). He admitted, among other things, that PHILIP LUCIANO had handled the technological aspects of their drug transactions over the dark web, PHILIP had reported to MICHAEL drug orders they had received online, and MICHAEL had shipped the narcotics, via the United States Postal Service, to the LUCIANOS’ customers.
* * *
In addition to their prison terms, MICHAEL LUCIANO, 59, and PHILIP LUCIANO, 30, both of Staten Island, were each sentenced to four years of supervised release and forfeiture money judgments of $15,953 along with certain property, such as more than 2.5 Bitcoin.
Mr. Berman praised HSI for its outstanding investigative work. Mr. Berman also thanked the U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the New York City Police Department for their valuable assistance.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Eldon Man Pleads Guilty to Child Sexual ExploitationRead the Press Release
JEFFERSON CITY, Mo. – An Eldon, Mo., man pleaded guilty in federal court today to traveling to North Carolina on five occasions to engage in illicit sexual activity with a child victim over a two-year period.
James Anthony Guthrie, III, 37, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of attempted coercion and enticement of a minor.
By pleading guilty today, Guthrie admitted that he traveled to North Carolina on five occasions for work and, while there, met the 15-year-old child victim at various hotels for sex. Guthrie admitted that he picked up the child victim from school or at her house; once, the victim’s father brought her to the hotel.
Guthrie also admitted that he communicated about sexual matters with the child victim and received pornographic images and videos from her. He bought her clothes, food, and paid her cell phone bill.
Investigators examined Guthrie’s laptop, hard drive and DVD-R disks, which contained images of child pornography.
Under federal statutes, Guthrie is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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 Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Lebanon, Mo., Police Department and the Lake Area ICAC Task Force.
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."
Drug Dealer Sent to Prison as a Result of Operation Alpha ArrestRead the Press Release
A Tulsa man, identified by law enforcement and prosecutors as being a “Top Ten” Alpha criminal, was sentenced today for participating in a methamphetamine and heroin distribution conspiracy and for possession of methamphetamine and heroin with intent to distribute, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Dannie Dee Dill, 47, to 10 years in federal prison to be followed by four years of supervised release.
On Sept. 5, Dill pleaded guilty to the charges of drug conspiracy, possession of a firearm in furtherance of a drug trafficking crime, and removal of property to prevent seizure. The latter charge resulted from Dill removing $15,000 from co-conspirator Darowe Jones’ residence in an effort to hide the drug proceeds from investigators.
“Danny Dill’s drug dealing venture is now closed for business. No longer will he be able to distribute deadly narcotics like methamphetamine and black tar heroin,” said U.S. Attorney Trent Shores. “Thanks to the efforts of the Tulsa Police Department partnering with federal agents, this conspiracy has been shut down.”
From August 2017 to April 2018, Dill and his co-conspirators participated in a scheme to distribute illegal narcotics, including heroin and methamphetamine, in the greater Tulsa area. As part of the scheme, Dill stored narcotics and drug proceeds at two different houses, one in Broken Arrow and one in Tulsa. His narcotics source of supply sent illegal drug shipments for distribution from outside of the state of Oklahoma to the Broken Arrow location. To further his drug trafficking activities, Dill stored a loaded Glock handgun in the Broken Arrow home.
Dill and his accomplices were arrested as part of Operation Alpha, a Project Safe Neighborhoods’ initiative that sought northern Oklahoma’s most dangerous criminals. Phase One of the Operation Alpha initiative utilized crime mapping technology to target areas with high rates of crime and focused on the area surrounding 21st Street and Garnett Road in Tulsa. Phase one operations took place from mid-April through mid-June 2018 and resulted in 174 felony arrests and seizure of 106 firearms.
Dill’s co-conspirators included Cherie Michelle Kelley, 36, Cynthia Santagata, 32, and Darowe Junior Jones, 39, all of Tulsa. Jones, also labeled a “Top Ten” Alpha criminal, was a one-stop shop for the distribution of methamphetamine, black-tar heroin, cocaine, ecstasy, marijuana, and Xanax. On Oct. 24, a jury convicted Jones of conspiring to distribute more than 50 grams of methamphetamine and more than 100 grams of heroin. He is scheduled to be sentenced Jan. 28. Kelley pleaded guilty to the conspiracy charges and will be sentenced Dec.18. Santagata also pleaded guilty to conspiracy charges and will be sentenced Jan. 8.
Dill remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
Law enforcement agencies involved in the coordinated effort to bring Dill into custody included the Tulsa Police Department, FBI, U.S. Marshals Service, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joel-lyn A. McCormick and Thomas E. Duncombe prosecuted the case.
Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders in an effort to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
District Man Sentenced to Nine Years in Prison for Two Armed Robberies in Southeast WashingtonRead the Press Release
WASHINGTON – Ridge Jackson, 24, of Washington, D.C., was sentenced today to a nine-year prison term for a pair of armed robberies he committed within a 24-hour period last spring in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Jackson pled guilty in July 2018, in the Superior Court of the District of Columbia, to two counts of robbery and two counts of attempted possession of a prohibited weapon. He was sentenced by the Honorable Robert A. Salerno. Following his prison term, Jackson will be placed on five years of supervised release.
According to the government’s evidence, the first armed robbery took place on April 27, 2018, at approximately 10:30 p.m. The victim reported that he had met a woman on a dating app and that she told him to meet her in a building in the 2600 block of Wade Road SE. Once he got there, he called the woman, who said she would be arriving shortly. Instead, Jackson and another individual came into the hallway. Jackson, who was armed, told the man to empty his pockets. He took the victim’s cellphone, a laptop bag containing a machete-style knife, and jacket.
The second armed robbery occurred on April 28, 2018, at approximately 4:30 p.m. This time, another victim reported that he met a woman on a dating app and that she had invited him to meet her in a building in the 2600 block of Wade Road SE. Once again, Jackson entered the building, this time with two other individuals. Jackson approached the victim with a machete-style knife before robbing him of his iPhone, wallet, cash, and headphones.
Jackson was arrested on May 5, 2018, following an investigation by the Metropolitan Police Department (MPD). He has been in custody ever since. At the time of the robberies, he was on supervised release for a 2016 conviction of attempted assault with a dangerous weapon.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Vivien Cockburn, who investigated and prosecuted the matter.
Defendant Sentenced for ATM Skimming FraudRead the Press Release
ATLANTA - Gogut Serban was sentenced to federal prison for access device fraud and aggravated identity theft for stealing bank debit card numbers and personal identification numbers (PINs) of individuals in Georgia by using automated teller machines (ATMs) skimming devices.
“Identity theft is a continuing problem that damages the credit of too many unsuspecting Georgians,” said U.S. Attorney Byung J. “BJay” Pak. “Citizens are encouraged to visually and physically inspect ATMs for any obvious signs of tampering prior to using their debit or credit cards.”
“This investigation and subsequent conviction demonstrates the commitment the Secret Service and our law enforcement partners have in aggressively pursuing those who commit access device fraud and identity theft,” said Kimberly A. Cheatle, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing is another great example of the law enforcement community working together to combat crime.”
“The Lawrenceville Police Department is extremely grateful for the assistance provided by our partners in the U.S. Secret Service during this seven-month investigation,” said Lawrenceville Police Chief Tim Wallis. “The continued cooperation of local and federal law enforcement agencies led to a successful conclusion of a complex case spread over several jurisdictions.”
According to U.S. Attorney Pak, the charges and other information presented in court: Serban and his co-conspirators used illegal skimming devices to steal over $80,000 from credit union customers by installing the devices at Associated Credit Union automated teller machines in Atlanta, Lawrenceville, Norcross and other locations in Georgia. When a customer used an ATM with a skimming device installed, the device electronically recorded the customer’s debit card number and a small camera in the device video recorded the ATM keyboard as the customer entered their PIN. Serban and others then encoded new cards with the stolen account information and used the altered cards at ATMs, draining money from over 70 victims’ bank accounts. The other co-conspirators in the scheme were charged in South Carolina.
Gogut Serban, 35, of Romania, was sentenced to two years, two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $84,760.50. Serban was convicted of access device fraud and aggravated identity theft on August 28, 2018, after he pleaded guilty.
This case was investigated by the U.S. Secret Service and the Lawrenceville Police Department.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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
Convictions Upheld for Former Deputy Executive Director of Port Authority and Deputy Chief of Staff for Then-Gov. ChristieRead the Press Release
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today affirmed five of seven convictions each for a former top official of the Port Authority of New York and New Jersey (PA) and a former member of then-Gov. Christopher J. Christie’s senior staff for their roles in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing PA resources to cause traffic problems in the borough, Mark Coyne, Attorney for the United States, announced.
William E. Baroni Jr., 46, and Bridget Anne Kelly, 46 — formerly the deputy executive director of the Port Authority and the deputy chief of staff for legislative and intergovernmental affairs in the Governor’s office, respectively — were each convicted on Nov. 4, 2016, of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. Baroni was sentenced to 24 months in prison and Kelly was sentenced to 18 months in prison.
In a unanimous, precedential opinion by Senior U.S. Circuit Judge Anthony J. Scirica Sr., the court upheld all but the civil rights counts of conviction and remanded the case to U.S. District Judge Susan D. Wigenton for resentencing.
All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes to the upper level of the George Washington Bridge and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing then-Gov. Christie’s re-election bid. The evidence at trial showed that Fort Lee suffered hours of gridlock on four successive days during the first week of the school year because of the scheme.
The Court of Appeals found sufficient evidence of wire fraud and wire fraud conspiracy, rejecting the defendants’ argument that Baroni had unilateral authority to control traffic patterns at “the world’s busiest motor vehicle bridge.” The court found that he lacked such authority and that he and Kelly had deprived the PA of property by devoting PA resources to a sham traffic study. The court said the United States “has an especially significant interest in protecting the Port Authority’s . . . operational integrity” against fraud.
The court concluded that the defendants intentionally misapplied PA property and conspired to do so. The court held that the applicable statue covers more than just bribery and theft, and that Baroni’s and Kelly’s “conduct in this case falls squarely within the statute’s purpose.
The court rejected the defendants’ argument that the United States was improperly using federal criminal statutes to police state and local officials in the conduct of their official duties. “Congress has a uniquely significant interest in safeguarding the Port Authority, an interstate agency created by its consent,” the court said. The court confirmed that the defendants’ motive in defrauding the Port Authority was “not a required element of any of the charged offenses.
The court also held, however, that the constitutional right of intrastate travel on public roadways was not sufficiently developed nationwide to warrant prosecution under the federal civil rights statutes. The court therefore reversed and vacated Baroni’s and Kelly’s convictions for criminal civil rights violations.
The government is represented in the appeals by Assistant U.S. Attorney and Special Counsel to the U.S. Attorney Bruce P. Keller of the U.S. Attorney’s Office in Newark. Assistant U.S. Attorneys Lee M. Cortes Jr., David W. Feder and Vikas Khanna represented the United States at trial. The case is being overseen by Attorney for the United States Mark Coyne, Chief of the Appeals Division, because of the recusals of U.S. Attorney Craig Carpenito and First Assistant U.S. Attorney Rachael Honig.
Convicted Felon Pleads Guilty to Possessing 11 Firearms and Dealing Crack Cocaine, Cocaine and HeroinRead the Press Release
NEWS RELEASE SUMMARY – November 27, 2018
SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, pleaded guilty today in federal court before U.S. Magistrate Judge Nita L. Stormes to a two Count Superseding Information charging him with knowingly and intentionally possessing with intent to distribute cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that admittedly included semi-automatic weapons, shotguns, rifles and .357 Magnum revolvers.
Through his plea agreement, Jordan, a San Diego resident, admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) officer attempted to conduct a traffic stop. Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights. While attempting to evade the officer, Jordan threw a bag from the window that was subsequently recovered by SDPD. Jordan admitted in his plea agreement that the bag contained approximately two kilograms of cocaine. After the vehicle was stopped and Jordan arrested, officers recovered more than $6,900 in cash that was admittedly the proceeds of narcotics trafficking.
On September 18, 2018, law enforcement also executed follow-up search warrants at two locations associated with Jordan in San Diego. Those searches yielded eleven firearms; $36,499 in cash that was also admittedly the proceeds of narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin. Jordan admitted that he illegally possessed the eleven firearms identified in the plea agreement as well as the drugs, which he intended to further distribute. Due to his prior drug felony conviction, Jordan is prohibited from possessing a firearm or ammunition under federal law. The plea arrangement also includes forfeiture of each of the eleven firearms and associated ammunition; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of the narcotics proceeds were located.
The federal narcotics charge to which Jordan has pleaded guilty carries a mandatory minimum ten year sentence and a maximum life sentence and the firearms-related charge carries a maximum 10 year sentence. Jordan is scheduled to be sentenced on February 15, 2019 before U.S. District Judge Gonzalo P. Curiel in San Diego.
This case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCEDTF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCEDTF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
This matter is being prosecuted by Assistant U. S. Attorney Larry Casper.
DEFENDANTS Criminal Case Number 18-cr-4496
Dwight Wayne Jordan Age: 60 San Diego, California
SUMMARY OF CHARGES TO WHICH GUILTY PLEAS ENTERED
Count 1:
Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)
Maximum penalty: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; and at least five years’ supervised release up to life
Count 2:
Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)
Maximum penalty: 10 years custody $250,000 fine and 3 years supervised release
INVESTIGATING AGENCIES
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Police Department
Columbia Man Pleads Guilty to Illegal Firearm Following Street ShootingRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who was arrested following a street shootout in a residential neighborhood pleaded guilty in federal court today to illegally possessing a firearm.
Richard Sterling Jones, 25, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a drug user in possession of a firearm.
According to today’s plea agreement, Columbia police officers were dispatched to the 4600 block of Rice Road at approximately 10:19 p.m. on June 24, 2018, in response to shots fired. When the officers arrived, they located numerous 9mm and .223-caliber spent shell casings along Rice Road. Officers spoke to numerous residents along Rice Road, who reported their residences and vehicles had been struck by gunfire.
Witnesses told police officers they saw a silver Pontiac Grand Prix, which they believed was involved in the shooting, quickly leave the area. Officers located Jones, who was sitting in a silver Grand Prix, shortly afterward, and he was detained. Officers searched his vehicle and found a bag of marijuana and drug paraphernalia.
Jones admitted that he fired several rounds from his AR-15 style rifle into the air in front of a residence on Rice Road. Jones drove to another residence and hid the firearm under a mattress in one of the bedrooms. Jones also admitted to using and selling marijuana. Officers executed a search warrant at the residence and found a loaded SOTA Arms multi-caliber rifle where Jones had hidden it.
Under federal statutes, Jones is subject to a sentence of up to 10 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 Special Assistant U.S. Attorney Aaron M. Jolly. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Colorado Springs Man Sentenced for Wire Fraud and SecuritiesRead the Press Release
DENVER – Daniel Coddington, age 64, of Colorado Springs, Colorado, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 120 months (10 years) in federal prison for wire and securities fraud, U.S. Attorney Jason R. Dunn and FBI Denver Division Special Agent in Charge Dean Phillips announced. After serving his prison sentence, Coddington was ordered to spend 3 years on supervised release. He was also ordered to pay $18,021,669.74 in restitution. The defendant appeared at the hearing free on bond, and was ordered to report to a facility designated by the Bureau of Prisons. A co-defendant, Jesse W. Erwin, Jr., was previously sentenced for wire and securities fraud to serve 58 months in federal prison, followed by 3 years on supervised release.
Coddington and Erwin were indicted by a federal grand jury in Denver on October 5, 2015. Erwin pled guilty on April 25, 2017, and was sentenced on October 12, 2018. Coddington was found guilty following a jury trial on July 26, 2018. He was sentenced today, November 27, 2018.
According to court documents and evidence presented during the Coddington trial, from at least early 2010 through late 2011, Coddington held himself out to investors and intermediaries to be the principal and owner of a company called Golden Summit Investors Group Ltd. (“Golden Summit”). He operated Golden Summit from Colorado Springs, Colorado. From at least early 2010 through at least late 2011, he described to investors and intermediaries a program through which investor money would be used to purchase collateralized mortgage obligations or CMOs -- an investment consisting of a pool of mortgages organized by maturity and risk. Coddington told investors that the CMOs had face values exponentially larger than their purchase price and market value. According to the defendant, the CMOs would then be “hypothecated” to obtain loans in the amount of a percentage of the face value of the CMO. The amount of these loans would still be exponentially larger than the purchase price and market value of the CMOs (known as the “CMO Trade Program”).
Coddington told most of the investors that, from the proceeds of the loans, the investors would receive pre-trade distributions and that the remainder of the loan proceeds would be placed into an investment program that would yield high returns. From at least 2010 through late 2011, the defendant described to investors and intermediaries that investors who owned CMOs could transfer their CMOs to Golden Summit for the purpose of participating in the CMO Trade Program. In approximately April 2011, the defendant told an investor, who ultimately invested $9,000,000 dollars with Golden Summit that $60,000,000 of the loan proceeds obtained from “monetizing” the CMOs purchased with the investor’s money would be provided to the investor in the form of two non-recourse loans in the amount of $30,000,000 each (known as the “CMO Loan Program”).
Coddington falsely represented to investors and intermediaries that he had the experience and contacts necessary to successfully conduct and complete the CMO Trade Program and the CMO Loan Program. From at least 2010 through at least mid-2011, Coddington falsely told investors and intermediaries that all of the money provided by investors would be used to purchase CMOs that would be used in the CMO Trade Program and the CMO Loan Program. He also falsely told investors and intermediaries that any fees, commissions, compensation, and payments to Golden Summit and its affiliates would be taken only from the profits of the CMO Trade Program and CMO Loan Program and not from investor money placed into the CMO Trade Program and CMO Loan Program.
From at least November of 2010 through at least June of 2011, the defendant diverted substantial amounts of investor money placed into the CMO Trade Program and the CMO Loan Program for his own personal use and for purposes other than for purchasing CMOs. Further, the defendant did not successfully “hypothecate” or “monetize” any CMOs to obtain loans for either the CMO Trade Program or the CMO Loan Program.
From at least October 2010 through April of 2011, Coddington obtained from investors more than $17,000,000 for the CMO Trade Program and the CMO Loan Program. Despite his failure to successfully complete either the CMO Trade Program or the CMO Loan Program, the defendant did not return most of the investors’ money or any CMO purchased with the investors’ money.
From at least early 2010 through late 2011, the defendant also received CMOs from several investors for purposes of participating in the CMO Trade Program. Coddington kept most of the monthly interest that was paid out on those CMOs while the CMOs were in his and Golden Summit’s possession. For purposes of executing the Scheme, the defendant used, and caused to be used, a number of interstate wires, including emails and money transfers.
“Thanks to the hard work of the FBI, and with the cooperation of crime victims, my office was able to prosecute Coddington for devastating people’s lives by stealing their life savings,” said U.S. Attorney Jason R. Dunn. “Coddington has 10 years to contemplate his crime and think of the people he hurt.”
“The FBI is committed to investigating complex white-collar fraud schemes, and we will continue to pursue those who misuse their position of trust to exploit innocent investors.” said FBI Denver Special Agent in Charge Dean Phillips. “Today’s sentence of Daniel Coddington should send a clear message that exploitation of investors for personal gain will be vigorously investigated and prosecuted.”
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendant was prosecuted by Assistant U.S. Attorneys Pegeen Rhyne and Anna Edgar.
Career Robber Sentenced for Robbery of Ice Cream Store in Central West EndRead the Press Release
St. Louis, MO – Rodney Gardner, 52, St. Louis, was sentenced to 84 months in prison for robbing Jeni’s Splendid Ice Creams. He appeared in federal court this morning before U.S. District Judge E. Richard Webber.
According to court documents, on March 6, 2018, Gardner entered the Central West End ice cream shop and posed as a customer before he demanded that employees hand over money from the cash register. Gardner punched one employee multiple times in the face, breaking her nose, grabbed the cash register, and ran from the store. Police officers arrested him after a brief foot chase.
Gardner pled guilty on June 12, 2018 to one felony count of Hobbs Act robbery.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Jennifer J. Roy is handling the case for the U.S. Attorney's Office.
California Woman Pleads Guilty to Federal Methamphetamine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Gwendolyn Alcazar, 36, of Pasadena, Calif., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
The Drug Enforcement Administration arrested Alcazar on Feb. 8, 2018, on an indictment charging her with possession of methamphetamine with intent to distribute. According to the indictment, Alcazar committed the crime on July 11, 2017, in Bernalillo County, N.M.
During today’s proceedings, Alcazar admitted that she received a one-way train ticket from Los Angeles to Atlanta. She boarded the train with approximately 900.4 grams (1.99 pounds) of methamphetamine concealed in her luggage. Alcazar intended to transport the methamphetamine to Atlanta and expected to receive payment at the end of her trip. However, law enforcement officers confronted her in Albuquerque. Alcazar gave them a false name and tried to abandon her luggage and flee before the officers arrested her.
At sentencing, Alcazar faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. She remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Niki Tapia-Brito and Eva Fontanez.
California Man Sentenced to More Than Five Years in Prison for His Role in Multimillion-Dollar Fraud on Film InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that STEVEN BROWN was sentenced today to 63 months in prison for defrauding victims of over $12.5 million by participating in a fraudulent scheme to solicit investments in feature-length films and documentaries based on misrepresentations and fraudulent documents. BROWN previously pled guilty before U.S. Magistrate Judge Henry B. Pitman, and was sentenced today by U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Steven Brown perpetrated a multimillion-dollar fraud by convincing victims to invest in Hollywood films and documentaries with false promises and fraudulent documents. He continued the scheme even after he was arrested, luring another investor with the same lies. Now Brown has been sentenced for his crimes.”
According to allegations in an Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
From at least 2009 through 2017, STEVEN BROWN participated in a scheme in which BROWN, along with co-conspirators, solicited investments in the marketing and production of feature-length films and documentaries from investors, including by furnishing them with fraudulent documents and by promising guaranteed returns, which never materialized.
In order to solicit these investments, BROWN and others made material misrepresentations about, among other things, their own investments in the films for which they were soliciting money, as well as investments that they claimed to have received from other investors. To support their claims, BROWN and his co-conspirators at times sent the victims falsified financial records that reflected investments in the films that had never actually been made. BROWN and his co-conspirators also told certain victims that their investments would be guaranteed by a fictitious entity, and provided falsified documents in support of these purported guarantees. On one occasion, Brown sent an email to a victim attaching what purported to be a current bank statement for an account held by the fictitious entity, as well as an email from an executive at the fictitious entity guaranteeing the victim’s investment. In fact, neither the account nor the executive actually existed.
BROWN continued to solicit investments in film projects based on misrepresentations even after being arrested on the criminal charges brought in this case. In 2017, BROWN solicited an investment from a victim of the scheme in a film production and distribution company with which BROWN was purportedly involved by promising the victim a 50 percent return on the investment. The victim’s funds were never returned and were, in part, used to pay expenses unrelated to any film projects.
In total, BROWN and his co-conspirators solicited millions of dollars from their victims, allegedly to be used for either marketing or production costs associated with the various films. In reality, however, the money that was received from these investors was primarily used to fund other projects, to pay back previously defrauded investors, and to pay the personal expenses of BROWN and his co-conspirators, including, among other things, the purchase of a condominium for BROWN.
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In addition to the prison sentence, BROWN, 48, of Los Angeles, California, was sentenced to three years of supervised release and ordered to forfeit his ownership interest in a California property and $673,028.93 in criminal proceeds. Judge Wood will impose restitution at a later date.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Katherine Reilly, Noah Solowiejczyk, and Ryan Finkel are in charge of the prosecution.
Bronx Man Sentenced to 20 Years in Prison for Possession and Distribution of Child Pornography and His Attempt to Entice A MinorRead 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 Division of the Federal Bureau of Investigation (“FBI”), announced that MARK IRIZARRY was sentenced yesterday in Manhattan federal court to 20 years in prison for attempted enticement of a minor to engage in sexual activity and possession and distribution of child pornography. IRIZARRY pled guilty to these charges on June 15, 2018. United States District Court Judge Valerie E. Caproni imposed yesterday’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Mark Irizarry admitted to the unconscionable crime of attempting to entice a nine-year-old child to have sex with him. He will now serve 20 years in prison, where he will be unable to harm children.”
FBI Assistant Director William F. Sweeney Jr. said: “Child predators like Mark Irizarry are among our society’s most heinous offenders, and the conduct in which he attempted to engage almost defies comprehension. Irizzary’s sentence insures he will be locked away in a place where he will be unable to harm children. The FBI, though our Child Exploitation and Human Trafficking Task Force, will continue to work tirelessly to protect our nation’s children.”
According to the Indictment and other filings in Manhattan federal court:
Between November 2017 and December 2017, IRIZARRY used an online social media application to send undercover law enforcement officers more than 80 unique image and video files known to contain child pornography. The child pornography sent by IRIZARRY included depictions of prepubescent children, including infants and toddlers, engaged in sexual activity with other children or adults. During these conversations with one of the undercover officers, IRIZARRY stated that he wanted to have sex with the undercover officer’s nine-year-old child and that he wanted to film the act on his cellphone. IRIZARRY and the undercover officer planned a meeting time and location to carry out IRIZARRY’s plan; IRIZARRY was arrested on the date and at the location that he said he would meet the undercover law officer. When he was arrested, IRIZARRY possessed several bags of candy and condoms. After his arrest, law enforcement officers recovered approximately 18,000 uniquely named image files and 2,700 uniquely named video files, mostly consistent with child pornography, on remote computing platform accounts that IRIZARRY created.
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In addition to his prison term, IRIZARRY, 28, of the Bronx, New York, was sentenced to 10 years of supervised release and restitution in amount to be determined by the Court at a later date.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, and thanked the New York City Police Department for their assistance.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Nicholas W. Chiuchiolo is in charge of the prosecution.
Brewer Man Pleads Guilty to Charge of Lying to Federal Firearms DealerRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Floyd Chase, 48, of Brewer, Maine, pled guilty in U.S. District Court to conspiracy to make false statements to a federal firearms licensee.
According to court records, in February 2018, the Brewer Police Department seized a .380 caliber handgun while executing a narcotics trafficking search warrant in Brewer. A trace of the firearm revealed that it had been purchased about ten days earlier at an area firearms dealer. Further investigation revealed that the defendant, and others came up with a plan for one of them to falsely claim that she was buying the gun for herself, when in fact, the actual buyer was another individual. The defendant accompanied the two others to the firearms dealer and then directed the woman to purchase the firearm.
The defendant faces up to five years in prison, a $250,000 fine, and up to three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brewer Police Department, with assistance provided by the Penobscot County Sheriff’s Office.
Boston-Area Investment Adviser Sentenced for FraudRead the Press Release
BOSTON – A Boston-area investment adviser was sentenced today in federal court in Boston for using his clients’ funds to make his own investments and to pay personal expenses.
James Polese, 52, of Wenham, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to five years in prison, three years of supervised release, and ordered to pay a fine of $30,000 and restititution in the amount of $462,000. In April 2018, Polese pleaded guilty to one count of conspiracy and investment adviser fraud, eight counts of bank fraud, and one count of aggravated identity theft. In June 2018, co-conspirator Cornelius Peterson, 29, of Newton, was sentenced to 20 months in prison, two years of supervised release and ordered to pay restitution in the amount of $462,000.
From approximately 2014 to June 2017, Polese and Peterson misappropriated approximately half a million dollars from their clients by transferring funds out of their clients’ accounts without their knowledge or consent. Specifically, on Aug. 20, 2014, Polese and Peterson used $100,000 from a client’s account to invest in a wind farm project despite the fact that it was not an investment opportunity authorized by their company. On May 15, 2015, Polese and Peterson used $400,000 from another client’s account to back a letter of credit in support of the wind farm project. On multiple occasions in 2017, Polese transferred funds from a client’s account to pay personal expenses, including college tuition payments and credit card bills. Polese and Peterson were terminated from the company in June 2017.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities & Exchange Commission also provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Bhutan Citizen Pleads Guilty to Receiving Sexually Explicit Images of a Minor Under 12Read the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court to receipt of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Mukesh Khawas, 31, pleaded guilty to one count before United States District Judge Cathy Bissoon. In connection with the guilty plea, the court was advised that from June 14, 2016, to June 15, 2016, Khawas engaged in online chat conversations with a minor female via the social networking/dating application Skout.com, and during the conversation requested and received sexually explicit images, knowing the minor victim had not yet attained 12 years of age. In addition to the guilty plea, Khawas acknowledged his responsibility for the production and possession of material depicting the sexual exploitation of a minor.
Judge Bissoon scheduled sentencing for March 19, 2019. The law provides for a maximum sentence of 20 years’ imprisonment, a fine of $250,000.00, and a term of up to a lifetime of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Khawas, who is a citizen of Bhutan but a lawful permanent resident of the United States, has also agreed to be deported to Bhutan upon the conclusion of his sentence without the ability to appeal or reenter the United States. Khawas remains detained pending the sentencing hearing.
Assistant United States Attorneys Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the West Virginia State Police conducted the investigation leading to the prosecution of Khawas.
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.justice.gov/psc.
Albuquerque Man Sentenced to Five Years in Prison for Possessing Firearm while Trafficking FentanylRead the Press Release
ALBUQUERQUE – Jeremy Brown, 27, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for possessing a firearm while trafficking fentanyl. Brown will be on supervised release for three years after completing his prison sentence.
On July 16, 2018, Brown pled guilty to possessing a firearm in furtherance of a drug trafficking crime. In entering his guilty plea, Brown admitted that on May 1, 2017, he arranged a meeting to sell fentanyl pills to a customer. DEA agents arrested Brown during this meeting and searched his truck, where they found a canister of fentanyl pills and a .45 caliber pistol in the center console. Brown admitted that he intended to sell these pills and possessed the pistol to protect himself while selling drugs.
Brown’s co-defendant, Crystal Campos, 34, also of Albuquerque, pled guilty on Oct. 4, 2018, to charges of conspiracy and distribution of a controlled substance.
This case was investigated by the Albuquerque office of the DEA and prosecuted by Assistant U.S. Attorney Peter J. Eicker as part of the Department of Justice’s commitment, in partnership with other law enforcement agencies, to combat the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids and to establish new programs to provide services to victims of the opioid crisis.
Alaska Woman Pleads Guilty to Defrauding Anchorage Medical PracticeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Alaska woman pleaded guilty in federal court for devising multiple schemes to defraud an Anchorage medical practice through various means.
Jill Diane Applebury, aka: “Jill Wetzsteon,” 53, d/b/a Applebury Accounting Services, of Anchorage, pleaded guilty today before Chief U.S. District Judge Timothy M. Burgess to four counts of bank fraud, one count of wire fraud, and one count of fraudulent transactions with an access device. The sentencing hearing has been scheduled for March 29, 2019, at 9:00 a.m.
According to court documents, from the mid-1990’s until March 2013, Jill Applebury was an independent contractor who performed bookkeeping services for an Anchorage medical practice, which was owned and operated by an Anchorage physician. From at least 2004 until March 22, 2013, Jill Applebury defrauded the Anchorage medical practice in several ways.
According to admissions made in connection with her guilty plea, one such scheme stems from May 2008 to January 2010, when Jill Applebury used the medical practice’s funds to pay her Federal Income Tax Withholding without authority. Specifically, Jill Applebury executed unauthorized and fraudulent transactions from the medical practice’s business bank account to the IRS, thereby having the medical practice pay her IRS individual income tax account.
Another scheme involved the medical practice’s profit-sharing plan. Employees of the medical practice were eligible to participate in its profit-sharing plan, which was overseen by a third-party administrator. Independent contractors did not qualify for the plan; however, Jill Applebury falsely represented to the third-party administrator that she had become a full-time employee of the medical practice in 2009, making her eligible to participate in the profit-sharing plan beginning in 2010. In all, Jill Applebury fraudulently caused the physician to unknowingly allocate $62,722.90 to her in unauthorized profit-sharing plan contributions for the years 2010 and 2011.
In April and May 2011, Jill Applebury devised a scheme to defraud the medical practice by fraudulently transferring funds from the medical practice’s business bank account to pay for charges on her personal credit card, which she shared with her husband Darin Applebury, including charges for travel and dining. Additionally, between 2004 and March 22, 2013, Jill and Darin Applebury used the medical practice’s business credit card to pay for items for their own personal and/or business benefit. The unauthorized charges included cell phone service for the Appleburys and members of their family, internet service for their residence, business licenses for businesses owned by Jill and Darin Applebury, automobile insurance for their personal vehicles, and other personal items.
The investigation also revealed that in October 2012, Jill Applebury fraudulently used the medical practice’s business credit card to purchase nearly $3,000 of medical products for her husband’s business, Rapid Recovery Medical Service, Inc. The fraudulent credit card purchases were made using the physician’s name and address without the knowledge and permission of the Anchorage physician.
Jill Applebury faces a maximum sentence of up to 30 years in prison, as well as a period of supervised release, restitution, and monetary penalties. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any of the defendant.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Retta-Rae Randall.
Alabama Man Pretending to be College Softball Coach Pleads Guilty in South Florida to Producing Child PornographyRead the Press Release
On November 20, 2018, Jason Ford, a former teaching assistant and travel softball coach, pled guilty in South Florida to attempting to produce child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami, Florida Field Office, Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville, Florida Field Office, James E. Jewell, Special Agent in Charge of the FBI Mobile, Alabama Field Office, and Alphonso Norris, Special Agent in Charge of the FBI Columbia, South Carolina Field Office made the announcement.
Ford, 42, of Dothan, Alabama, is scheduled to be sentenced by U.S. District Judge Beth Bloom on February 1, 2019, in Fort Lauderdale, Florida (Case No. 18-cr-60117). He faces a mandatory minimum sentence of 15 years in prison.
According to the court docket, including the agreed upon factual proffer Ford was a teaching assistant and travel softball coach, working out of Dothan, Alabama. However, Ford falsely represented himself to be a University of North Florida and University of South Carolina softball coach, in order to have contact with female high school softball players. Ford engaged in a calculated scheme to gain the trust of minor females who aspired to earn college athletic scholarships. Ford engaged in inappropriate conversations with teen softball players in Florida, Alabama and Tennessee. Ultimately, Ford made contact online with an undercover agent he believed to be a 15-year-old female softball player. Ford was arrested after he sent the teen (who in fact was an undercover agent) currency for a sexually explicit video.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami, Florida; Jacksonville, Florida; Mobile, Alabama; and Columbia, South Carolina Field Offices in this matter. She also thanked the Dothan Police Department for their assistance. The case is being prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
26 November 2018
“Car Hopping” Lands Felon in Federal Prison for over Seven Years for Possessing a Stolen GunRead the Press Release
A convicted felon who went “car hopping” with others in Alburnett, Iowa, and possessed a stolen gun was sentenced today to more than seven years in federal prison.
Sejuan Walker, age 22, from Marion, Iowa, received the prison term after a July 25, 2018, guilty plea to being a felon in possession of a firearm.
Information from the sentencing hearing showed that on January 28, 2018, Walker and two others went “car hopping” in Alburnett, a town in rural Linn County, Iowa. Their “car hopping” involved going from parked car to parked car to see which cars were unlocked. After finding an unlocked car, the three searched the car to find any valuables. One of the three found a handgun in a pickup truck and stole it and a wallet from the truck. Walker later used a debit card from that wallet to make purchases at the Wal-Mart in Anamosa.
Law enforcement officers located Walker at an apartment building in Coralville, Iowa, on February 1, 2018. As officers were approaching him, Walker went into the apartment building and then out a back door. Officers later located the handgun stolen from Alburnett in a clothes dryer located in the common area of the apartment building. At his plea hearing, Walker admitted he possessed that handgun on February 1.
Walker was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Walker was sentenced to 87 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department of Justice announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Walker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-55.
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Worcester Man Pleads Guilty to Fentanyl, Cocaine and Firearm ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to drug and firearm charges.
Cleon Riley, 36, pleaded guilty to one count of being a felon in possession of firearms and ammunition, one count of distributing cocaine, and one count of possessing fentanyl with intent to distribute. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 26, 2019. Riley has been detained since his arrest in May 2018.
On multiple occasions in 2018, Riley sold cocaine to a confidential source in Worcester. On one occasion in February 2018, Riley sold powder cocaine, crack cocaine, and a .9mm Beretta handgun, which had previously been reported as stolen, to the same source.
Riley was arrested by local police in May 2018. At the time of his arrest, he was in possession of seven bags of fentanyl and 20 bags of cocaine. Law enforcement also located additional quantities of fentanyl and cocaine in a car used by Riley, as well as a large quantity of fentanyl, digital scales, cutting agents, and packaging materials in an apartment that Riley used.
The drug charges carry sentences of no greater than 30 years in prison, at least six years and up to a lifetime of supervised release, and a $2 million fine. The firearm charge provides for a sentence of no greater than 10 years in prison, three years of supervised release and a $250,000 fine. Riley will face enhanced penalties if he is found to be in violation of the Armed Career Criminal Act. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Worcester County District Attorney’s Office and the Worcester Police Department. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
Wetzel County man sentenced in connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Todd Jones, of New Martinsville, West Virginia, was sentenced today to eight months incarceration for his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Jones, age 55, pled guilty to “Aiding and Abetting the Distribution of Methamphetamine” in August 2018. Jones admitted to selling methamphetamine in March 2017 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
U.S. Attorney Mike Hurst issued the following statement in response to nooses and hate signs found this morning outside the Mississippi State Capitol:Read the Press Release
"With our law enforcement partners, we are actively looking into these acts of hate and intimidation. Let me be perfectly clear - there is absolutely no place in our state for these unacceptable symbols or tactics to intimidate others. If we find evidence beyond a reasonable doubt that a federal crime has occurred, these criminals will be swiftly prosecuted and held accountable. Let us all respond to these despicable acts by voting, working, raising our families, practicing our faith, and pursuing the American dream here in our great state without fear or trepidation and in harmony with our fellow citizens."
U.S. Attorney Liu Announces Initiative to Combat Elder Abuse and Financial ExploitationRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is launching an Elder Abuse and Financial Exploitation Initiative to expand its response to criminal and civil violations targeting older adults, U.S. Attorney Jessie K. Liu announced today.
The establishment of this initiative will enable the U.S. Attorney’s Office to further develop and coordinate its prosecution of these cases and enhance its overall support of older victims. The team will consist of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions as well as the Victim Witness Assistance Unit. The work coordinated through this initiative will reach victims of both local and federal offenses in the District of Columbia and across the country who have been affected by elder abuse, neglect, and financial exploitation. This initiative is part of a larger effort by the Department of Justice to combat elder abuse and financial exploitation.
“We must do everything we can to protect our older citizens from those predators who target them for physical, emotional and financial harm,” said U.S. Attorney Liu. “This initiative sharpens our focus on this important mission. By bringing together all of those in our office who work on these issues in court and in the community, we hope to identify ways that we can better serve our vulnerable older adults and prevent them from becoming victims of crimes and abuse.”
The initiative will coordinate and combine the work that is already being done throughout the Office on behalf of older victims. Many components of the Office work on such matters, and each will designate a representative to support the initiative’s mission to develop uniform strategies and best practices, track data and cases, share resources, enhance support of older victims, and facilitate further outreach with community and agency partners.
Nationally, the 2017 Elder Abuse Prevention and Prosecution Act mandated that each U.S. Attorney designate an Elder Justice Coordinator to serve as legal counsel on matters relating to elder abuse, assist with prosecution of elder abuse cases, conduct public outreach relating to elder abuse, and coordinate data collection. U.S. Attorney Liu has selected Sarah McClellan, a senior prosecutor and the chief of the Office’s Victim Witness Assistance Unit, to serve in that position for the U.S. Attorney’s Office for the District of Columbia.
The U.S. Attorney’s Office works with the Metropolitan Police Department, District of Columbia Office of the Inspector General, the FBI’s Washington Field Office, and other law enforcement partners on investigations of crimes targeting older victims. In launching the initiative, the Office hopes to build on its work successfully prosecuting such cases.
In one recent matter, for example, a former personal banker pled guilty to stealing money from an 88-year-old woman by ordering a debit card for his own use and linking it to her account. He made 17 unauthorized transactions, totaling more than $4,000. In a similar case, another bank manager pled guilty to stealing more than $9,000 from the bank accounts of customers, including senior citizens, by issuing debit cards or changing PIN numbers linked to their bank accounts. In a third case, a woman pled guilty to using a stolen debit card to steal more than $25,000 from the checking and savings account of a 70-year-old man who was in failing health. All three defendants were ordered by the Court to pay full restitution as part of their sentences.
In another case last year, the office’s Sex Offense and Domestic Violence Section prosecuted a woman who carried out a pair of attacks against her 64-year-old ex-boyfriend, including one with a knife and one with sulfuric acid. The defendant pled guilty to charges and was sentenced to 12 years in prison. The victim suffered devastating injuries, including lifelong disfigurement – and spent nearly a month in a hospital burn unit.
The Office’s Civil Division will pursue cases related to nursing home fraud and abuse, including quality of care cases and all forms of billing abuses. The Civil Division will collaborate with D.C. government agencies associated with elder care and oversight and the D.C. Medicaid Fraud Control Unit (MFCU). In addition, the Civil Division plans to work with the Social Security Administration (SSA) to identify elder financial abuse.
In addition, the Office will continue its extensive community outreach efforts in hopes of increasing awareness to protect seniors. The Office regularly offers two important but distinctly different senior seminars in partnership with other agencies: “Financial Crimes Against Seniors” and “Elder Abuse and Exploitation of the Elderly.” Prosecutors and community outreach specialists present these seminars in senior dwellings and at senior programs throughout the District of Columbia. Participants are provided with resources about where they can find help in the event they become victims of financial scams, exploitation, or abuse.
These efforts are part of the Department of Justice’s Elder Justice Initiative, a multi-faceted nationwide program to combat elder abuse, neglect and financial fraud and scams that target senior citizens. According to the Justice Department, each year, an estimated $3 billion is stolen or defrauded from millions of American seniors. Through “grandparent scams,” fake prizes, romance scams, fraudulent IRS refunds, and even outright extortion, criminals try to exploit some of the most vulnerable Americans and steal their life’s savings.
With approximately 10,000 Americans turning 65 each day, the population of potential targets continues to grow. The U.S. Census Bureau projects that the population of Americans over 65 years of age will increase to 83.7 million in 2050, nearly double the estimated population of 43.1 million as of the most recent census.
More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice
Two Waverly Men Sentenced to Federal Prison for “Dark Web” Counterfeit Carfentanil PillsRead the Press Release
Two men who possessed and sold counterfeit carfentanil pills were sentenced today to a total of more than 11 years in federal prison.
Cameron James Lensmeyer, age 20, and Evan Paul Sage, age 20, both from Waverly, Iowa, received the prison terms after their May 2018 guilty pleas. Lensmeyer pled guilty to possession with intent to distribute carfentanil and marijuana. Sage pled guilty to possession with intent to distribute carfentanil, cocaine, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Lensmeyer admitted that he and Sage purchased hundreds of purported prescription pills, including purported oxycodone and alprazolam pills, through a “dark web” marketplace. Evidence at an earlier hearing showed that, during a search of Lensmeyer’s and Sage’s shared Cedar Falls residence in June 2017, investigators seized over 800 blue pills that appeared to be prescription oxycodone pills (depicted below), over $20,000 in cash, over 30 grams of cocaine, over 600 grams of marijuana, and a loaded .32 caliber handgun. Later testing determined that most of the blue pills contained carfentanil, while a smaller amount contained another synthetic fentanyl called cyclopropyl fentanyl. Carfentanil is a powerful narcotic that is 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is not approved for use by humans, but is used as an elephant tranquilizer.
Lensmeyer and Sage were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lensmeyer was sentenced to 52 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. Sage was sentenced to 85 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Both men are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was investigated by the Tri-County Drug Enforcement Task Force and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2004-LRR.
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Three Armed Bank Robbers Sentenced to at Least Seven Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced bank robbers Donald Marcel Rivers, Jr., age 30; Ashley Nicole Collier, age 31; and Timothy Mclain, age 29; all of Hagerstown, Maryland, to 14 years, 90 months, and 84 months and one day in prison, respectively, each followed by five years, five years, and three years of supervised release, for armed bank robbery and related firearms charges. Collier and Mclain were sentenced today and Rivers was sentenced on November 19, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office, Chief Paul J. Kifer of the Hagerstown Police Department; and Washington County Sheriff Douglas W. Mullendore.
According to their plea agreements, Rivers and his girlfriend, Collier, planned to rob a bank and enlisted Collier’s brother, Mclain. Specifically, on January 9, 2018, the conspirators robbed a bank located in the 1300 block of Salem Avenue in Hagerstown. The three arrived at the bank in a gray Jeep Cherokee. Rivers and Mclain, both wearing black face masks, entered the bank while Collier remained in the Jeep as the getaway driver. Rivers was armed with a loaded 9mm handgun, which he pointed at bank employees and customers inside the bank. Both men yelled and demanded “hundreds and fifties” from the tellers. Mclain held a duffle bag for the tellers to put the cash in, while Rivers approached several bank employees and a customer and pointed the firearm at them. After the tellers put the cash in Mclain’s duffle bag, the two men ran from the bank and jumped into the back seat of the Jeep while Collier sped away. The robbers stole approximately $6,567 from the bank.
Approximately 20 minutes later, police saw the gray Jeep near the road that runs along the Maryland and Pennsylvania state line. As the police attempted to stop the Jeep, the passenger side door swung open while the Jeep was in motion. As the Jeep came to a stop, Rivers jumped out and fled into a nearby cornfield, while the Jeep sped away. Police caught Rivers, who had $2,860.00 in his pocket.
A short time later, police saw the Jeep again parked in a nearby church parking lot. About 100 yards away, police saw Mclain and Collier walking on the road and arrested both of them. Mclain had $2,660.00 and a black face mask in his pocket. Collier had a 9mm handgun loaded with nine live 9mm rounds of ammunition and $1,070 in her purse. The 9mm handgun was the same handgun used in the bank robbery, and had previously been reported stolen from the owner in West Virginia.
A search warrant was authorized for the gray Jeep, which was registered to Rivers’ mother. Inside the Jeep, police located clothing worn by the robbers during the robbery, a black ski mask worn by Rivers during the robbery, a black duffle bag, and plastic cards belonging to Rivers and Collier, including a shooting range badge with Rivers’ name and photograph printed on the front of the card.
According to witnesses and records from the shooting range, on November 6, 2017, Rivers was in possession of firearms and ammunition at the shooting range. Rivers had a previous felony conviction and was therefore prohibited from possessing firearms or ammunition.
Donald Rivers’ mother, Dianne Rivers, pled guilty to felony obstruction of justice after she destroyed a phone her son used after the robbery. The grand jury had subpoenaed the phone during the robbery investigation. On November 9, 2018, Judge Chasanow sentenced Dianne Rivers to 3 months in prison.
United States Attorney Robert K. Hur praised the FBI – Frederick, the Hagerstown Police Department, and the Washington County’s Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Duey and Sandra Wilkinson, who prosecuted the case.
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Project Huntington Update: Two Huntington Men Sentenced to Prison for Their Roles in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men were sentenced to prison for their roles in the Peterson drug trafficking organization (DTO), announced United States Attorney Mike Stuart. The Operation Saigon Sunset investigation was conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Fentanyl and heroin have caused so many of our citizens to die of overdose,” said United States Attorney Mike Stuart. “To put drug peddlers like Sykes and Graves behind bars is a big win for the people of Huntington.”
Lawrence Sykes, Jr., also known as “Boog,” 26, who was caught selling fentanyl in November 2017, was sentenced to 33 months in prison. Sykes previously pled guilty to an indictment charging him with conspiracy to distribute heroin and fentanyl. Sykes admitted that between August 2017 and April 2018 he conspired with Manget Peterson to sell heroin in the Huntington, West Virginia area. As part of the plea agreement, Sykes admitted to distributing approximately 28 grams of fentanyl to a confidential informant in November 2017.
Charles Graves, also known as “Bo,” 46, who was caught selling heroin in February 2018, was sentenced to 18 months in prison. Graves previously pled guilty to an indictment charging him with conspiracy to distribute heroin. Graves admitted that in January and February 2018 he conspired with Manget Peterson to sell heroin in the Huntington, West Virginia area. As part of the plea agreement, Graves admitted to distributing heroin to a confidential informant in February 2018.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorney Stephanie S. Taylor handled the prosecutions.
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Polo Man Sentenced to 25 Years in Prison for $4.3 Million Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Polo, Mo., man was sentenced in federal court today for his role in a $4.3 million conspiracy to distribute large quantities of methamphetamine and heroin throughout Clay, Ray, Clinton and Buchanan counties.
Joshua K. Bowers, 34, was sentenced by U.S. Chief District Judge Greg Kays to 25 years and 10 months in federal prison without parole. The court also ordered Bowers to forfeit to the government $11,319, which was seized by law enforcement officers, and to pay a money judgment of $525,600, which represents the proceeds received from illegal drug trafficking. Bowers is the final defendant among 26 defendants in this case to be sentenced after pleading guilty.
On June 9, 2017, Bowers pleaded guilty to participating in a conspiracy to distribute methamphetamine, to participating in a conspiracy to distribute heroin, and to possessing a firearm in furtherance of a drug-trafficking crime.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Bowers admitted that he was responsible for the distribution of more than five kilograms of methamphetamine and more than one kilogram of heroin. Bowers also admitted that he was in possession of a Springfield Armory .40-caliber semi-automatic handgun, a New England 12-gauge shotgun and various other firearms during the drug-trafficking conspiracy.
Law enforcement officers executed a search warrant at Bowers’s resident on Jan. 13, 2015, and seized approximately one kilogram of methamphetamine, heroin, firearms, drug paraphernalia, drug sale proceeds and a drug ledger.
This case was prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
Philadelphia-Area Restauranteur Sentenced to Prison for Tax FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Giuseppe “Pino” DiMeo, 51, of Eagleville, Pennsylvania, was sentenced to 24 months’ imprisonment and ordered to pay $463,738 in restitution to the Internal Revenue Service (“IRS”), for conspiring to defraud the IRS and filing false tax returns. In addition, DiMeo was also sentenced to serve three years of supervised release and ordered to pay a special assessment of $1,100.
DiMeo and his business partners at restaurants defrauded the IRS of income taxes and payroll taxes. From 2008 through 2014, DiMeo took cash from his restaurants and paid many of his employees in cash under the table, then hid his “cash skim” and the cash payroll payments from his accountant and from the IRS in order to evade payment of income and payroll taxes. In total, DiMeo failed to report to the IRS approximately $2,000,000 in gross receipts from his stores.
DiMeo’s cash skim and cash payroll payments occurred at DiMeo’s Pizza of Lafayette Hill, Pennsylvania (closed); Pizzeria DiMeo’s of Philadelphia, Pennsylvania (now sold); Allegro Pizza of Philadelphia, Pennsylvania (closed); and DiMeo’s Pizzaiuoli Napulitani of Wilmington, Delaware.
“For years, DiMeo maintained that his businesses were barely profitable, all the while living a lavish lifestyle bankrolled by the money he owed the IRS,” said U.S. Attorney McSwain. “His actions reveal a deliberate disregard for the law. Today’s sentence sends a powerful message to those who cheat the tax system: you will not get away with it.”
“Not only did Giuseppe DiMeo skirt his income tax obligations, he also failed to withhold and remit, to the IRS, income taxes for his employees,” said IRS Criminal Investigation Special Agent in Chart Guy Ficco. “This sentence should serve as a reminder that IRS Criminal Investigation and the Department of Justice have no tolerance for such criminal behavior.”
The case was investigated by the Internal Revenue Service, Criminal Investigations, and was prosecuted by Assistant United States Attorneys Maria M. Carrillo and Tiwana L. Wright
Ohio Tax Attorney Pleads Guilty to Obstructing the IRSRead the Press Release
WASHINGTON - A Columbus, Ohio, attorney pleaded guilty today to corruptly endeavoring to impede and obstruct the due administration of the Internal Revenue Service, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio.
According to documents and information provided to the court, Marcus “Marc” Dunn has been a licensed attorney in Ohio since the late 1990s. Starting in 2007, Dunn advised and assisted the late Dr. Kevin Lake in various legal matters, primarily related to Dr. Lake’s operation of Columbus Southern Medical Clinic in Columbus, Ohio. Dunn’s specialty during this time was tax law.
In 2009 and 2010, the IRS audited a number of corporate entities controlled by Dr. Lake. When the IRS Revenue Agent conducting the audits requested documents supporting certain tax positions taken by Dr. Lake regarding the clinic’s equipment, Dunn provided the Revenue Agent with “bills of sale” appearing to support the false depreciation deductions that Dr. Lake’s entities had claimed. The IRS determined that these “bills of sale” were false, in that they inflated the value of the clinic’s equipment. At the same time, Dunn supplied these documents to the IRS, he had provided contrary information regarding the true value of the clinic equipment to third parties.
In 2011, Dunn filed petitions in U.S. Tax Court in an effort to challenge the IRS’s determination that some of the audited entities owed additional taxes. In 2014, the case was settled with an agreed amount of $608,583.20 due. On September 9, 2014, Dunn was contacted by an IRS Revenue Officer trying to collect the settlement amount from the Lake entities. Dunn knowingly provided false and purposely misleading information to the Revenue Officer about two of the three Lake entities by telling her that: (1) the entities at issue were closed; (2) he had no idea who the officers of the entities were; (3) the entities had no assets; (4) an IRS Form 433-B, Collection Information Statement for Businesses seeking information relating to property held, would be all “zeros”; and (5) he did not know where the entities banked. At least partially due to Dunn’s statements, the Revenue Officer closed the collection cases because she believed the entities were defunct with no assets.
The parties agree that Dunn is responsible for a tax loss of $507,198.00. The tax loss has since been paid to the IRS using funds seized from Dr. Lake, who pleaded guilty in January 2017 to drug, tax, and fraud charges. Dr. Lake died before sentencing in that case.
Sentencing will be scheduled at a later date before U.S. District Court Judge Michael H. Watson. Dunn faces a maximum sentence of three years in prison, a period of supervised release, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Glassman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Richard M. Rolwing and Carl F. Brooker of the Tax Division, who are prosecuting the case.
Niagara Falls Man Pleads Guilty to Sex Trafficking Charge Involving 17 Year Old VictimRead 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 Marcellus Overton, 43, of Niagara Falls, NY, pleaded guilty to conspiracy to commit sex trafficking of a minor before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that in December 2012, the defendant met Victim 1 in Olean, NY, through a friend of Victim 1. Overton transported Victim 1, who was 17 years old, and a friend to Niagara Falls. Between late December 2012 and March 2013, the defendant conspired to have advertisements posted online at Backpage.com soliciting prostitution appointments for Victim 1. Overton transported or arranged for the transportation of Victim 1 to prostitution appointments scheduled as a result of the Backpage.com advertisements. The defendant also rented or arranged for the rental of hotel rooms at which Victim 1’s prostitution appointments took place. Overton received a share of Victim 1’s earnings from the prostitution appointments.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly, and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for March 20, 2019, at 11:00 a.m. before Judge Skretny.# # # #
New York Woman Pleads Guilty to Providing Material Support to ISISRead the Press Release
Zoobia Shahnaz, 27, of Brentwood, New York, pleaded guilty to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. for the FBI’s New York Field Office, and Commissioner James P. O’Neill for the NYPD announced the guilty plea. The guilty plea was entered before U.S. District Judge Joanna Seybert.
According to court filings and facts presented at the plea hearing, between March 2017 and the date of her attempted travel to Syria on July 31, 2017, the defendant engaged in a scheme to defraud numerous financial institutions. Specifically, Shahnaz obtained a loan for approximately $22,500 by way of materially false pretenses, representations and promises. She also fraudulently applied for and used over a dozen credit cards, which she used to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online. She then engaged in a pattern of financial activity, culminating in several wire transactions totaling over $150,000 to individuals and shell entities in Pakistan, China and Turkey that were fronts for ISIS.
During the time she was committing bank fraud and laundering money overseas, the defendant was accessing ISIS propaganda online, including violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers. Additionally, the defendant conducted numerous internet searches for information that would facilitate her entry into Syria, but ultimately was intercepted by the Joint Terrorism Task Force (JTTF) at John F. Kennedy International Airport (JFK) in Queens, New York, while attempting to board a flight with a multi-day layover in Istanbul, Turkey – a common point of entry for individuals travelling from Western countries to join ISIS in Syria.
As part of her plea agreement with the government, Shahnaz admitted to defrauding numerous financial institutions and laundering the stolen proceeds out of the country with the intent to support a specified unlawful activity, namely the provision of material support to ISIS, after which she attempted to leave the United States and travel to Syria.
When she is sentenced, Shahnaz faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Mr. Demers and Mr. Donoghue extended their grateful appreciation to the FBI’s JTTF, which comprises a number of federal, state and local agencies from the region.
The government’s case is being handled by Assistant U.S. Attorney Artie McConnell of the Eastern District of New York and Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.
Nevada Cardiologist Pleads Guilty to Unlawful Distribution of Oxycodone and HydrocodoneRead the Press Release
RENO, Nev. – A northern Nevada cardiologist pleaded guilty today to distributing highly addictive prescription drugs Oxycodone and Hydrocodone to patients without a medical purpose, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 59, of Elko, who owns and operates Northeastern Nevada Cardiology, was indicted by a grand jury in December 2017. United States District Judge Larry R. Hicks accepted the guilty plea.
The investigation revealed Patel contributed to the opioid epidemic by unlawfully prescribing opioids and other prescription narcotics to patients for financial gain. As part of his plea, Patel admitted that, between September 2015 and February 2016, he prescribed Oxycodone (such as OxyContin) and Hydrocodone (such as Norco) to patients without a legitimate medical purpose and outside the usual course of professional practice. These prescriptions were in direct violation of his duty as a long-term licensed medical doctor. His license was suspended upon his arrest in December 2017. Patel’s prescribing practices allowed him to see a high volume of patients and easily prescribe and sell the opioids, while not addressing any legitimate medical concerns of his patients.
Sentencing is scheduled for March 18, 2019. The statutory maximum penalty is 20 years in prison and a $1,000,000 fine.
The case was investigated by the FBI, DEA, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, the Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff’s Office, and the Nevada Department of Public Safety. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.
According to the CDC, approximately 115 Americans die every day of an opioid-related overdose. In 2016, there were 408 opioid-related deaths in Nevada, according to the Nevada Department of Health and Human Services. In 2016, Nevada’s per capita prescription rate for opioids was 87/100 residents. Nevada ranked as the sixth highest state for the number of milligrams of opioids distributed per adult, according to a DEA study. From 2010 to 2016, opioid-related hospitalizations have increased by 136% in emergency room encounters and 84% in in-patient admissions. During this time-period, 85% of all opioid-related deaths in Nevada were deemed accidents, according to the National Institute on Drug Abuse Study for Nevada.
The Opioid Fraud and Abuse Detection unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens, and www.GetSmartAboutDrugs.com for parents, educators and caregivers. To report suspected opioid-related crimes, the public is encouraged to contact the DEA at www.deadiversion.usdoj.gov/tips_online.htm or the FBI at tips.fbi.gov.
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Neenah Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on November 20, 2018, a federal indictment was issued against Jeffrey Melgar (age: 33) of Neenah, Wisconsin.
The indictment alleges that Jeffrey Melgar possessed in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute the controlled substance in violation of Title 21, United States Code, Section 841(a) and (b)(1)(A). If convicted of the charges alleged, Melgar faces a mandatory 10 year prison sentence and up to a life sentence. Melgar will be arraigned on November 27, 2018, in Green Bay federal court.
This case was investigated by the U.S. Postal Inspection Service, the U.S. Drug Enforcement Administration, and the Lake Winnebago Area Metropolitan Enforcement Group. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Modesto Man Sentenced to Prison and Another Pleads Guilty to Burglarizing Fresno Firearms StoreRead the Press Release
FRESNO, Calif. — Johnny Sanchez, 22, of Modesto, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 11 years and eight months in prison for stealing 50 firearms from a Fresno gun store last year, U.S. Attorney McGregor W. Scott announced. Co‑defendant Nathan Creel, 22, also of Modesto, pleaded guilty today to conspiring with Sanchez and three others in connection with the burglary of the firearms store.
According to court documents, on October 20, 2017, Sanchez, Creel, and co-defendants James Britt, David Avina, and Luis Galvan broke into the Fresno firearms store by cutting a chain and lock with bolt cutters and prying open the door. The defendants stole 50 firearms, including numerous foreign and domestic rifles. After the theft, the defendants sold most of the firearms to others.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the case.
Creel is scheduled to be sentenced by Judge O’Neill on February 11, 2019. Creel faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
James Britt pleaded guilty and is scheduled to be sentenced on March 25, 2019. Charges are pending against David Avina and Luis Galvan. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Miami Beach Residents Charged with Wire Fraud in Connection with Fraudulent Online Car Sales WebsiteRead the Press Release
Merkourios Alexopoulos, 46, and Sabrina Schnekker, 32, of Miami Beach, were arrested on an indictment charging them with conspiracy to commit wire fraud and wire fraud in connection with a fraudulent online car sales website.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office and Daniel Oates, Chief, Miami Beach Police Department (MBPD) made the announcement.
According to the allegations contained in the indictment, from in or around August 2013, through May 2018, Alexopoulos and Schnekker operated Salvageworldauctions.com as an online retailer purporting to sell salvaged vehicles. Potential buyers would pay a $500 entrance fee to bid on the vehicles purportedly for sale.
Once a bid was accepted, Alexopoulos would allegedly discuss the final terms for the payment and delivery of the vehicles with the individual purchasers and instructed the victims to send the purchase monies via wire transfer or money orders to the various bank accounts controlled by Alexopoulos and Schnekker and maintained at City National Bank, Citi Bank, PNC Bank, Wells Fargo, Regions Bank, BB&T, Suntrust Bank, and Chase Bank, among others. After the victims transferred the purchase monies to the bank accounts controlled by Alexopoulos and Schnekker, the conspirators would use those monies to pay their personal expenses and to further the fraudulent scheme.
The indictment further alleges that Alexopoulos and Schnekker never delivered, nor did the victims receive, the vehicles ordered and paid for by the victim purchasers from Alexopoulos and Schnekker through Salvageworldauctions.com. In total, the investigation has revealed approximately 51 victims, with an approximately loss amount of $1.2 million.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS and MBPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.