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20 November 2018
Wilmington Man Sentenced to 10 Years for Heroin DistributionRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Chief United States District Judge Terrence W. Boyle sentenced JOHN MICKEY HARRIS, JR., 30, of Wilmington, North Carolina to 120 months of imprisonment followed by 5 years of supervised release.
On March 19, 2018, HARRIS entered a plea of guilty to conspiracy to distribute and possess with intent to distribute a quantity of heroin, and felon in possession of a firearm.
A joint investigation between the Wilmington Police Department Gang Unit and the Federal Bureau of Investigation (FBI) Safe Streets Unit revealed that between October 2016 and January 2017, HARRIS and others were responsible for the distribution of significant amounts of heroin in the Wilmington, NC area.
From October 2016 through January of 2017, at the direction of law enforcement, several undercover purchases of heroin were made from HARRIS.
On April 11, 2017, law enforcement stopped a car in which HARRIS was a passenger and found a small quantity of heroin. Law enforcement then searched a residence associated with HARRIS in Wilmington, where they found 16 grams of heroin and ammunition. During the course of this investigation, the FBI discovered that following his arrest on these charges, HARRIS directed someone to dispose of a 9mm handgun in the retention pond at the Campus Edge Apartments near the campus of The University of North Carolina Wilmington.
The New Hanover County Fire and Rescue dive team subsequently located the handgun in the retention pond with the aid of a large magnet. Ballistic testing confirmed that the gun had been used in other crimes. At the time he possessed this firearm, HARRIS had a prior federal conviction for possession of a firearm by a convicted felon.
This case is part of the Take Back North Carolina Initiative implemented by United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This investigation was conducted by the Wilmington Police Department Gang Unit, the Federal Bureau of Investigation’s Safe Streets Task Force and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy M. Severo handled the prosecution of this case for the government.
Weiser Man Sentenced to 15 Years in Prison for Attempted Sexual Exploitation of ChildrenRead the Press Release
BOISE – Jerry Lynn Moore, 43, of Weiser, Idaho, was sentenced yesterday in U.S. District Court to 180 months in prison followed by 10 years supervised release, for attempted sexual exploitation of children, U.S. Attorney Bart M. Davis announced. Moore was sentenced by U.S. District Court Judge David C. Nye. Moore pleaded guilty on August 14, 2018.
According to the plea agreement, in December 2017, Moore posted a Craigslist advertisement seeking an individual to have sexual contact with “Daddy.” A detective with the Idaho Internet Crimes Against Children (ICAC) task force responded to the ad in an undercover capacity, posing as a 15- year-old girl. Between December 4, 2017 and March 15, 2018, Moore communicated with the undercover officer using the Google voice text application and voicemails. During the online communications, Moore sent numerous messages attempting to persuade, induce, and entice the person he believed to be a 15-year-old child to meet him for the purpose of engaging in sexual activity. Moore also requested the 15-year-old produce and send him videos and images of the child engaged in sexually explicit conduct. On three occasions, Moore sent explicit images of his genitalia to the undercover detective.
On March 18, 2018, the undercover agreed to meet Moore for sexual activity and gave him the address of a residence where she was located. Moore arrived at the location and was arrested by law enforcement. Moore admitted he had arrived at the location to meet up with the 15-year-old for sexual contact, but claimed he could not recall her age.
At sentencing, Judge Nye also ordered Moore to forfeit the desktop computer, cell phone, and tablet used in the commission of the offense. As a result of his conviction, Moore will be required to register as a sex offender.
This case was investigated by the Idaho Internet Crimes Against Children (ICAC) Task Force, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Washington County Man Sentenced to Prison for Armed Bank RobberyRead the Press Release
PITTSBURGH, Pa. – A former resident of Washington County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of three years and five months, to be followed by three years of supervised release, on his conviction on a charge of armed bank robbery, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Gary White, 21, formerly of Fredericktown, Pa.
According to information presented to the court, on September 20, 2017, White robbed the PNC Bank on Saw Mill Run Blvd with a knife. White instructed one of the two tellers to open the glass partition separating the tellers from the public. When the teller could not remove the glass, White removed the window. He then climbed through the window and ordered the tellers to open several safes located behind the teller counter. He also advised the tellers that he had a gun while motioning towards his hip. The tellers backed away and White removed piles of cash from each safe and placed them into a red drawstring bag that he was carrying. He took $111,409 before fleeing the bank in his vehicle. Authorities were able to identify White from surveillance video as well as his vehicle’s registration. Law enforcement executed search warrants on his apartment and car. The search warrant on the car revealed the red Under Armour bag, containing $103,309, as well as the clothing worn during the robbery and the knife. White turned himself in a few days later and confessed to the robbery.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, along with the Allegheny County Police and Brentwood Police Departments, conducted the investigation leading to the prosecution of this case.
Virginia Couple Pleads Guilty to Operating Interstate Prostitution RingRead the Press Release
BOSTON – A Virginia husband and wife pleaded guilty today in federal court in Boston to their roles in operating a long-running interstate prostitution ring.
Yoon I. Kim, 36, and Taehee Kim, a/k/a “Hyunsook Kim,” 46, both of Haymarket, Va., each pleaded guilty in separate hearings to one count of conspiracy to persuade, induce, entice, or coerce individuals to travel in interstate commerce to engage in prostitution, and one count of conspiracy to engage in money laundering. U.S. District Court Judge William G. Young scheduled Yoon Kim’s sentencing for Feb. 12, 2019, and U.S. Senior District Court Judge Douglas P. Woodlock also scheduled Taehee Kim’s sentencing for Feb. 12, 2019.
Co-conspirators Jineok Kim, 38, of Watertown, Mass., and Susan Bashir, a/k/a “Susan Redmon,” a/k/a “Susan Redmond,” 41, of Stone Mountain, Ga., previously pleaded guilty to the same charges. Kyung Song, 52, of Lexington, Mass., pleaded guilty to conspiracy to engage in money laundering. Bashir is scheduled to be sentenced on Dec. 11, 2018; Jineok Kim on Jan. 9, 2019; and Song on Jan. 29, 2019.
From at least 2013 until March 2018 when they were arrested, the defendants operated an interstate prostitution network with multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia. They advertised appointments with Asian women primarily on three websites: www.bostonasiandolls.com, www.exoticasiansatlanta.com, and www.redhotflowers69.com. The women advertised on the websites were moved from city to city within the network, at Taehee Kim’s direction, working as prostitutes for the organization. Co-conspirators collected the cash earnings from the women working at the brothels and funneled the money into accounts controlled by Yoon and Taehee Kim. Co-conspirators also used U.S. Postal money orders and the U.S. Mail to transport proceeds around the prostitution network. Yoon Kim rented several of the brothel locations, including multiple apartments in and around Cambridge.
The charge of conspiracy to persuade, induce, entice, or coerce women to travel in interstate commerce to engage in prostitution provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. The charge of conspiracy to engage in money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering transactions, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Civil Rights Enforcement Team are prosecuting the case.
Venezuelan Billionaire News Network Owner, Former Venezuelan National Treasurer and Former Owner of Dominican Republic Bank Charged in Money Laundering Conspiracy Involving over $1 Billion in BribesRead the Press Release
A Venezuelan billionaire who owns Globovision news network was charged in an indictment unsealed yesterday for his role in a billion-dollar currency exchange and money laundering scheme. A former Venezuelan national treasurer and a former owner of Banco Peravia bank in the Dominican Republic each pleaded guilty in proceedings unsealed today for their roles in the 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, Special Agent in Charge Peter C. Fitzhugh and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
Raul Gorrin Belisario (Gorrin), 50, a Venezuelan citizen with a residence in Miami, Florida, was charged in an indictment filed on Aug. 16, 2018 in the Southern District of Florida with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit money laundering and nine counts of money laundering. The case has been assigned to U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, pleaded guilty under seal on Dec. 22, 2017 before U.S. District Judge Robin L. Rosenberg of the Southern District of Florida to one count of conspiracy to commit money laundering. Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, pleaded guilty under seal on March 20, 2018 in the Southern District of Florida before Judge Rosenberg to one count of conspiracy to commit money laundering. Charges against Andrade and Jimenez were unsealed today.
The indictment alleges that Gorrin paid millions of dollars in bribes to two high-level Venezuelan officials, including Andrade, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government. In addition to wiring money to and for the officials, Gorrin allegedly purchased and paid expenses for them related to private jets, yachts, homes, champion horses, high-end watches and a fashion line. To conceal the bribe payments, Gorrin made payments through multiple shell companies. Gorrin allegedly partnered with Jimenez to acquire Banco Peravia, a bank in the Dominican Republic, to launder bribes paid to Venezuelan officials and proceeds of the scheme.
As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions for the Venezuelan government. 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. His sentencing is scheduled for Nov. 27.
As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with Gorrin and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds. His sentencing is scheduled for Nov. 29.
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.
Venezuelan Billionaire News Network Owner, Former Venezuelan National Treasurer and Former Owner of Dominican Republic Bank Charged in Money Laundering Conspiracy Involving over $1 Billion in BribesRead the Press Release
A Venezuelan billionaire who owns Globovision news network was charged in an indictment unsealed yesterday for his role in a billion-dollar currency exchange and money laundering scheme. A former Venezuelan national treasurer and a former owner of Banco Peravia bank in the Dominican Republic each pleaded guilty in proceedings unsealed today for their roles in the 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 Peter C. Fitzhugh of HSI Boston 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.
Raul Gorrin Belisario (Gorrin), 50, a Venezuelan citizen with a residence in Miami, Florida, was charged in an indictment filed on Aug. 16, 2017 in the Southern District of Florida with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit money laundering and nine counts of money laundering. The case has been assigned to U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, pleaded guilty under seal on Dec. 22, 2017 before U.S. District Judge Robin L. Rosenberg of the Southern District of Florida to one count of conspiracy to commit money laundering. Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, pleaded guilty under seal on March 20, 2018 in the Southern District of Florida before Judge Rosenberg to one count of conspiracy to commit money laundering. Charges against Andrade and Jimenez were unsealed today.
The indictment alleges that Gorrin paid millions of dollars in bribes to two high-level Venezuelan officials, including Andrade, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government. In addition to wiring money to and for the officials, Gorrin allegedly purchased and paid expenses for them related to private jets, yachts, homes, champion horses, high-end watches and a fashion line. To conceal the bribe payments, Gorrin made payments through multiple shell companies. Gorrin allegedly partnered with Jimenez to acquire Banco Peravia, a bank in the Dominican Republic, to launder bribes paid to Venezuelan officials and proceeds of the scheme.
As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions for the Venezuelan government. 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. His sentencing is scheduled for Nov. 27.
As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with Gorrin and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds. His sentencing is scheduled for Nov. 29.
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.
Unity Man Sentenced to 51 Months in Prison for Firearm CrimeRead the Press Release
CONCORD – Lucas MacLean, 27, formerly of Unity, was sentenced to serve 51 months in prison for federal firearms crimes, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, MacLean induced Jacob Perra, 28, of Goshen to purchase a handgun for him from a firearms dealer in New Hampshire on April 30, 2014. MacLean financed the purchase and later took possession of the gun. Maclean was a convicted felon and was prohibited from possessing firearms.
MacLean pleaded guilty on July 27, 2018.
Perra previously was convicted for his role in the offense.
“Federal firearms laws are designed to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “In order to reduce violent crime, those laws must be strictly enforced. We will continue to work closely with our law enforcement partners to investigate and prosecute those who obtain firearms illegally, as well as those who help felons to obtain guns.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Newport Police Department. The case was prosecuted by Assistant U.S. Attorney Arnold H. Huftalen.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Two Women Sentenced for Roles in Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE - Sara Beth Cummings, 36, of Boise, Idaho, and Candelaria Sanchez, 43, of Las Vegas, Nevada, were sentenced today in U.S. District Court for their roles in a drug trafficking conspiracy, U.S. Attorney Bart M. Davis announced. Senior U.S. District Court Judge Edward J. Lodge sentenced Cummings to 21 months, and Sanchez to 84 months, in prison. Judge Lodge also ordered that both serve a period of supervised release after their prison sentences.
According to court records, between February and March 2018, Sanchez worked with others to distribute large quantities of methamphetamine in the Boise area. Investigators learned that Sanchez was driving large loads of methamphetamine from Las Vegas to Boise, where she delivered it to a dealer who was living with Cummings. On March 15, 2018, investigators stopped Sanchez outside of Cummings’ home, seizing 13 pounds of methamphetamine from her vehicle. In Cummings’ home, officers found more methamphetamine and over $40,000 in cash. Investigators determined that Cummings allowed her home to be used to conceal the drug trafficking conspiracy.
In July of this year, Sanchez pled guilty to conspiracy to distribute methamphetamine. In September of this year, Cummings pled guilty to misprision of a felony.
The case was the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service. Along with the Drug Enforcement Administration, the Nampa Police Department, Boise Police Department, Ada County Sheriff’s Office, and Meridian Police Department investigated the case.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada and Canyon County.
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Two Plead Guilty to Federal Drug ChargesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that two defendants pled guilty to federal drug charges before United States District Judge Irene C. Berger. Darla Reed, 39, of Alderson, pled guilty to possession with intent to distribute a quantity of methamphetamine. Jacqueline Pauley, 29, of Sophia, pled guilty to aiding and abetting the distribution of methamphetamine. Stuart commended the investigation conducted by the Greenbrier Valley Drug and Violent Crime Task Force.
“Unfortunately, meth seems to be the drug of choice throughout much of southern West Virginia,” said United States Attorney Mike Stuart. “Drug task forces are working closely with us to get meth dealers off the streets.”
Reed admitted that on June 13, 2018, she used text messages to arrange to purchase an ounce of methamphetamine from Jacqueline Pauley and another person. Later, Pauley and the other person met Reed in Sam Black Church in Greenbrier County, where Pauley distributed about an ounce of methamphetamine to Reed. Reed was immediately stopped by police and admitted that she intended to sell some of the methamphetamine that she had just purchased from Pauley. Pauley admitted that she had helped set up and complete the deal with Reed.
Each defendant faces up to 20 years in prison when sentenced on March 6, 2019. Assistant United States Attorney John File is handling the prosecution.
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Two Men Sentenced for Carjacking and Firing at Law EnforcementRead the Press Release
A federal judge sentenced two men today in U.S. District Court for conspiring to brandish a firearm during a Dec. 26, 2017, carjacking, and for firing at a Tulsa police officer during the resulting pursuit, announced U.S. Attorney Trent Shores.
U.S. District Judge John E. Dowdell sentenced Brandon Mendinghall, 24, of Stillwater, to 16 years in federal prison. As part of his guilty plea on Aug. 20, Mendinghall admitted to conspiring to rob a woman at gun point, steal the car she was driving and assist his co-conspirator during a police pursuit.
At a separate hearing, Judge Dowdell sentenced his co-conspirator, Michael Newlin, 19, of Owasso, to 32 years in federal prison for multiple charges, including conspiracy to carry, brandish and use a firearm during a crime of violence; carjacking; brandishing a firearm in furtherance of a crime of violence, obstruction of justice by attempting to kill a witness; and discharging a firearm at an officer.
On Aug. 9, Newlin pleaded guilty to the charges, admitting that he brandished the firearm during the carjacking and fired at the officer while evading arrest.
“Project Safe Neighborhoods was designed to prosecute violent criminals like Newlin and Mendinghall. These two defendants bought a ticket to federal prison the moment they decided to carjack the victims and then shoot at a police officer,” said U.S. Attorney Trent Shores. “The facts of this case are a stark reminder of the frequent dangers encountered by police officers as they risk their lives to protect our community. Tulsa is a safer place with these two behind bars. Thanks to the joint local-federal investigations and prosecutions in this case, these defendants will face serious consequences for their acts.”
Both men have been and will remain in custody until transferred to a U.S. Bureau of Prison’s facility.
The FBI, Tulsa Police Department, and Tulsa County Sheriff’s Office were the investigative agencies. Assistant U.S. Attorneys Ryan M. Roberts and Christopher J. Nassar represented the United States in this prosecution. Law enforcement, the U.S. Attorney’s Office and the Tulsa County District Attorney’s Office partnered in this case as part of the Justice Department’s Project Safe Neighborhoods.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Two Hunterdon County, New Jersey, Women Sentenced to Federal Prison Terms for Conspiracy to Distribute OxycodoneRead the Press Release
TRENTON, N.J. – Two Hunterdon County, New Jersey, women were sentenced today to federal prison terms for their respective roles in an oxycodone distribution conspiracy in Flemington, New Jersey, U.S. Attorney Craig Carpenito announced.
Michele Call, 63, of Flemington, New Jersey, was sentenced to 54 months in prison and Nelida Rios, 55, also of Flemington, was sentenced to 48 months in prison. Both defendants previously pleaded guilty before U.S. District Judge Freda Wolfson to informations charging them each with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Wolfson imposed the sentences today in Trenton federal court.
According to the documents filed in the case and statements made in Court:
From April 2016 through December 2017, Rios, Call and Call’s daughter, Alicia Balaban, 35, of Wellington, Florida, worked together to secure prescriptions for oxycodone, fill them at pharmacies in Flemington, and then distribute the pills to Marie DeJulia, 42, of Lodi, New Jersey, from Call’s and Rios’ Flemington residences for resale. The conspirators distributed thousands of 30 mg oxycodone pills.
In addition to the prison terms, Judge Wolfson sentenced both women to three years of supervised release, and fined them each $1,000. She ordered forfeiture of $40,000 from Call and $42,000 from Rios.
Balaban and DeJulia have also pleaded guilty and are scheduled to be sentenced next week.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: DeJulia: John Azzarello Esq., Morristown, New Jersey
Balaban: Clifford Lazzaro Esq., Elizabeth, New Jersey
Call: Jason LeBoeuf Esq., Newark
Rios: Michael Pedicini Esq., Chatham, New JerseyTwo Defendants Sentenced to Prison for Roles in Alien Harboring Scheme Involving Labor Exploitation of Domestic ServantRead the Press Release
Defendants Michael Wood, 54, and Mary Wood, 46, of Mullica Hill, New Jersey, were sentenced yesterday in federal court to 20 months in prison and ordered to pay $46,320 in restitution to the victim in this case. A jury convicted both defendants of harboring an alien for financial gain and conspiracy to harbor an alien on June 6, 2017. Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division and Special Agent in Charge Marlon V. Miller of Homeland Security Investigations (HSI) Philadelphia announced the sentences.
According to evidence presented in court and other court documents, in August 2005, the defendants recruited a young Kenyan woman to care for their minor children in New Jersey and arranged for her to enter the United States illegally using a fraudulent British passport. The defendants required the victim to perform domestic work and childcare at their home seven days a week, paying her a mere $200 a month. To conceal the victim’s immigration status from authorities, the defendants prohibited her from leaving their house, except to walk the children to school, and instructed her not to talk to anyone outside of the house and defendants’ family. In June 2006, members of defendant Mary Wood’s family moved the victim to their homes, where they continued to harbor her and exploit her domestic labor, until the victim managed to leave in 2011.
“The defendants exploited the domestic labor of a young Kenyan woman, for minimal pay, circumventing immigration law,” said Assistant Attorney General Eric Dreiband. “Today’s sentences demonstrate the Department of Justice’s commitment to seeking justice for vulnerable individuals across the country and holding defendants who commit these despicable and unconscionable crimes accountable.”
“The sentencing of Mr. and Mrs. Wood emphasizes the severity of crimes that oppress victims of unconscionable domestic labor practices,” said Special Agent in Charge Marlon V. Miller, HSI Philadelphia. “Homeland Security Investigations vigorously pursues those who take advantage of vulnerable victims of forced servitude for their own personal gain. This case again underscores the importance of educating the public on these schemes, seeking justice for victims and holding violators accountable.”
Six additional defendants, including members of defendant Mary Wood’s family who harbored the victim from 2006 to 2011, previously pleaded guilty in the Eastern District of Pennsylvania and were sentenced for their roles in the continuing alien harboring and labor exploitation scheme. The defendants were also ordered to pay more than $233,000 in combined restitution to the victim.
The case was investigated by ICE Homeland Security Investigations Philadelphia and prosecuted by Trial Attorneys Anita Channapati and Shan Patel of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit.
Two Arrested on Enticement & Child Pornography ChargesRead the Press Release
PROVIDENCE - Two Cranston men have been arrested after separate investigations revealed they allegedly communicated with minors in other states via the Internet, attempting to entice them to engage in sexual activity. Their communications allegedly included the transmission of sexually explicit photographs.
On Friday, Homeland Security Investigations, with the assistance of members of the Rhode Island State Police Internet Crimes Against Children Task Force and Cranston Police, arrested Raymond Gliottone, 35, in his basement apartment on charges of attempted enticement of a minor to engage in prohibited sexual activity and access with intent to view child pornography. It is alleged that Gliottone attempted to entice a 15-year-old girl in Maine. The communications allegedly included sexually explicit conversations, images of his genitalia, and encouraging the minor to run away with him.
Gliottone was ordered detained on Monday following an initial appearance before U.S. District Court Magistrate Judge Lincoln D. Almond.
In a separate investigation, FBI agents, assisted by the Rhode Island State Police Internet Crimes Against Children Task Force, Cranston Police, and Warwick Police, today arrested Paul Stabile, Jr., 38, on charges of transfer of obscene material to a minor under the age of 16, and possession and access with intent to view child pornography. It is alleged that Stabile, while purporting be a young woman a named “Cindy Mennillo,” communicated via the Internet and attempted to entice a 14-year-old boy in Nevada. The communications allegedly included sexually explicit conversations and the transmission of sexually explicit photographs purporting to be “Cindy Mennillo.”
During today’s arrest, law enforcement executed a court-authorized search of Stabile’s basement apartment and seized several digital storage devices.
Stabile was ordered detained in home confinement by U.S. District Court Magistrate Judge Patricia A. Sullivan following an initial appearance in U.S. District Court.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Topeka Man Pleads Guilty to Robbing Credit UnionRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty today to robbing a local credit union, U.S. Attorney Stephen McAllister said.
Robert Charles Frazier, 63, Topeka, Kan., pleaded guilty to one count of robbery. In his plea, he admitted that on Aug. 20, 2018, he robbed the Azura Credit Union at 1129 S. Kansas Avenue in Topeka. He told a teller, “This is a robbery. Give me your twenties, fifties and hundreds.” After receiving the money, he left the building and sat down on a nearby wall. An off-duty Topeka police officer working security arrested him.
Sentencing is set for Feb. 26. Both parties have agreed to recommend a sentence of five years in federal prison. McAllister commended the Topeka Police Department and the FBI for their work on the case.
Todd County Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Todd County, South Dakota, man has been indicted by a federal grand jury for Assault by Striking, Beating and Wounding.
Franklin Jones, age 37, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 16, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 1 year in federal prison and/or a $100,000 fine, 1 year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 1, 2018, Jones unlawfully and repeatedly assaulted two individuals.
The charges are merely accusations and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Jones was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Three men from Northeast Ohio, including two former U.S. Postal Service employees, were sentenced to prison for their roles in the armed robbery of postal carrierRead the Press Release
Three men from Northeast Ohio, including two former U.S. Postal Service employees, were sentenced to prison for their roles in the armed robbery of a postal carrier in which they were trying to steal packages containing marijuana.
Cortez Anderson, 29, of Oakwood Village, was sentenced to more than nine years in prison. Jabar Hogan, 34, of Cleveland, and Roy Malone, 34, of Bedford Heights, were both sentenced to nearly two years in prison.
A juvenile who was also involved in the robbery was sentenced to three years in a juvenile detention facility.
According to court documents:
The juvenile pointed a gun at the letter carrier on Oct. 30, 2017 in Euclid, when he told the carrier to “start walking” and retrieved a parcel addressed to a nearby apartment complex from the rear of a postal vehicle.
Security video nearby had images of a gray Dodge Charger that the juvenile drove in. A search of police databases revealed the vehicle was owned by Hogan, who worked at the Postal Service’s Processing and Distribution Center on Orange Avenue in Cleveland.
Further investigation revealed that Anderson paid Hogan with cash or marijuana for information about parcels fitting the profile of packages believed to contain marijuana. Hogan sent Anderson tracking numbers of the packages in order for Anderson to intercept the package either at its destination or, as in this case, straight from the postal truck. Anderson sold marijuana and was believed to be affiliated with the Heartless Felons gang.
Monitored phone calls between members of the group revealed that Malone – also an employee at the Orange Avenue Processing and Distribution Center -- was the driver of the vehicle, while the juvenile used a firearm during the robbery and Anderson was in the car at the time of the robbery.
“These defendants put the letter carrier and public at risk with this armed robbery,” U.S. Attorney Justin Herdman said.
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely stated: “The vast majority of the 600,000 postal employees nationwide are hard-working, trustworthy individuals. However, a few of them decide to violate that trust and use their positions for personal gain. In this case, these individuals will have several years in federal prison to think about their terrible decision. They have lost their careers, pension, and freedom for a few dollars. Postal employees need to realize when they steal drug parcels from the mail, the put their fellow employees at risk. USPS OIG special agents and postal inspectors will aggressively investigate those using the postal system to traffic narcotics, and those employees who are involved. To report postal employee criminal activity or drugs being sent in the mail, please contact www.uspsoig.gov or 888-USPS-OIG.”
This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison and Scott Zarzycki following an investigation by the U.S. Postal Service Office of Inspector General and the U.S. Postal Inspection Service.
Three individuals arrested, charged with conspiracy to kidnap and kill business associate in MexicoRead the Press Release
NEWS RELEASE SUMMARY – November 20, 2018
SAN DIEGO – Yesterday, federal authorities charged Salam Razuki, Sylvia Gonzales and Elizabeth Juarez with offenses related to a conspiracy to kidnap and kill a business associate over a dispute involving real estate investment properties, most of which were leased to marijuana dispensaries. All three defendants were arrested last week.
According to the complaint, in October 2018, Salam Razuki and Sylvia Gonzales met with a Confidential Human Source and asked the source to arrange to kill one of their business associates, N.M. (name redacted for privacy reasons). Razuki and Gonzales stated that they had invested in multiple properties and business ventures with N.M. and were now involved in a civil dispute over their assets. They wanted the source to “shoot him in the face,” “to take him to Mexico and have him whacked,” or kill him in some other way. Razuki and Gonzales provided the source with a picture of N.M.
In subsequent conversations earlier this month, defendants Razuki and Gonzales, eventually joined by Elizabeth Juarez, reiterated their desire to have N.M., who they nicknamed “the midget,” taken to Mexico and killed, with Gonzales and Juarez stating they wanted to “put the turkey up to roast before Thanksgiving.” Defendants offered to pay the source $2,000, with $1,000 to be paid immediately. Defendant Gonzales went to the Goldn Bloom Dispensary and returned with $1,000 cash, which defendants provided to the source along with two addresses for N.M.
The complaint further states that on or about November 13, 2018, Gonzales called the source and indicated that she and Razuki would be with N.M. in court at the Hall of Justice at 330 West Broadway in San Diego. Gonzales asked the source to join them in order to see N.M. in person. The source declined going into the courtroom, but agreed to stand outside the building and wait for N.M. to exit. While inside the Hall of Justice, Gonzales took a picture of N.M. with her phone, sent it to the source and then called the source to describe what N.M. was wearing. Gonzales left the Hall of Justice and met with the source to further describe N.M. During this meeting, Gonzales identified the locations of two businesses N.M. manages and stated “if they take him now, it’s gunna be good.” Gonzales went back into the courthouse and provided updates as N.M. was departing the Hall of Justice, to ensure the source observed N.M. as he left.
According to the complaint, on November 15, 2018, the source met with Razuki and stated, “I took care of it.” Razuki replied, “So he will take care of it, or it’s done?” The source replied, “Done.” Razuki quickly changed the subject to discuss other business investments and pending loans. Later in the conversation, the source asked whether Razuki wanted to see proof. Razuki replied, “No, I'm ok with it. I don't want to see it.” The source then requested the remainder of the agreed-upon payment and Razuki indicated Gonzales would handle this.
The complaint reflects that defendants’ business dispute with N.M. involved approximately $40 million. In an interview with FBI, N.M. advised that he had invested in real estate with Razuki in order to lease buildings to various entities, which were primarily marijuana dispensaries.
Detention hearings for defendants Salam Razuki and Elizabeth Juarez are scheduled to occur on Tuesday, November 27, 2018 at 1:30 p.m. before U.S. Magistrate Judge Mitchell Dembin.
This case is being prosecuted by Assistant United States Attorney Fred Sheppard.
*The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT Case Number 18MJ5915
Salam Razuki
Sylvia Gonzales
Elizabeth Juarez
SUMMARY OF CHARGES
Title 18, United States Code, Section 956 - Conspiracy to kill, kidnap, maim an individual
Title 18, United States Code, Section 1201(c) - Conspiracy to kidnap
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Thompsontown Man Pleads Guilty to Defrauding Disabled Veteran of $316,360Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Ehrhart, age 48, of Thompsontown, Pennsylvania, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner for defrauding a disabled Veteran, the Department of Veteran’s Affairs (VA), and the Social Security Administration (SSA) out of $316,360.
According to United States Attorney David J. Freed, Jason Ehrhart was charged by way of a criminal information on October 29, 2018, with one count of health care fraud. Jason’s former wife, Laurie Ehrhart, age 48, of Newport, Pennsylvania, was indicted on October 24, 2018, with one count of health care fraud and one count of conspiracy to commit health care fraud. The charges against the couple relate to their misappropriation of a veteran’s disability benefits.
In 1985 while serving in the U.S. Army, a veteran who was a former resident of Perry County, Pennsylvania, was diagnosed with multiple sclerosis. In 1998 the veteran began receiving disability benefits from the (VA and in 2006 began receiving disability benefits from the SSA. The veteran was eventually hospitalized on a permanent basis at the VA hospital in Lebanon, Pennsylvania in November of 2004.
In August of 2006, the veteran was deemed by the VA to be incompetent to handle his own financial affairs. As a result, on October 2, 2006, Jason Ehrhart applied to serve as the veteran’s VA Fiduciary and Legal Custodian. Under the terms of a Fiduciary Agreement, Jason Ehrhart agreed to use all of the veteran’s VA disability benefits exclusively for the veteran’s benefit. The agreement warned him that the funds were not for his personal use. The Fiduciary Agreement also required Jason Ehrhart to submit an annual accounting to the VA with respect to the amount of money spent on the veteran’s behalf.
While Jason Ehrhart served as the veteran’s VA Fiduciary and Legal Custodian, all of the veteran’s VA benefits, plus most of his Social Security disability checks, were deposited into a checking account Jason opened at The Orrstown Bank. Altogether, $476,260 in federal benefits ($422,828 in VA disability, $48,187 in Social Security disability, and $5,244 in VA clothing allowance) were deposited into the account between January 2009 and August 2016.
According to Jason Ehrhart’s criminal information and Laurie Ehrhart’s indictment, at least $316,360 of the $476,260 was misappropriated by Jason and Laurie Ehrhart and converted to their own use between October 2006 and August 2016. Checks totaling $218,832 ($96,202 payable to Jason Ehrhart and $122,630 payable to Laurie Ehrhart), were drawn against the account. Of the $218,832, $157,742 was deposited into Jason and Laurie Ehrhart’s joint checking account at the Juniata Valley Bank (JVB) and at least $23,496 was converted to cash. Thereafter, the funds in the joint JVB account were employed by Jason and Laurie Ehrhart to pay their personal expenses.
Another $7,174 in checks were made payable to Jason and Laurie Ehrhart’s two minor children. According to the charges Jason Ehrhart instructed the children to take the checks to the bank, cash them, and to surrender the cash to him.
Another $19,890 in checks were made payable to another couple who were Jason and Laurie Ehrhart’s best friends. According to the charges Jason Ehrhart regularly treated the couple and their children to dinners out and at least two, all-expense paid vacations to Disney World in Florida, purchased two automobiles for the family, and paid for the wife’s dental work.
To conceal his embezzlements, Jason Ehrhart submitted eight false annual accountings to the VA in which he falsely claimed he spent $402,408 on the veteran’s behalf between October 2006 and October 2015. The itemized expenditures in the accountings were grossly inflated. For example, Jason Ehrhart claimed he paid the mortgage on the veteran’s residence ($1,631 per month) plus the veteran’s share of the mortgage on his mother’s residence ($881) after she died in May 2011. However, the lenders against both properties obtained judgments and they were eventually foreclosed and sold.
Jason Ehrhart also falsely claimed in the annual accountings that he spent thousands on miscellaneous expenditures for the veteran, including storage unit rentals, vehicle maintenance bills, state and local taxes, life and auto insurance, and credit card bills. However, in 2016 the veteran’s specially equipped wheelchair van, for which Jason Ehrhart claimed he spent approximately $32,395 for vehicle maintenance, was found broken down and abandoned along a Perry County roadside.
The veteran died at the Lebanon VA Medical Center on July 30, 2018.
Jason Ehrhart agreed to make full restitution of the monies owed to the veteran’s estate. No date was set by Chief Judge Conner for Jason Ehrhart’s sentencing pending preparation of a presentence report. Laurie Ehrhart is currently scheduled for trial on January 8, 2019.
The Department of Veteran Affairs, the Office of Inspector General, the Pennsylvania State Police, and the Social Security Administration’s Office of Inspector General investigated the case. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Springfield Man Pleads Guilty to Federal Drug Charge After Shipping Marijuana in Styrofoam Rocks Out of StateRead the Press Release
EUGENE, Ore.—Curran Millican Manzer, 37, of Springfield, Oregon, pleaded guilty today to a single count of possession with intent to the distribute marijuana after repeatedly shipping marijuana out of state.
“Illegal export continues to plague Oregon’s under regulated and insufficiently enforced state laws governing state-licensed marijuana. The extreme overproduction of marijuana in Oregon has prompted many individuals to seek out-of-state distribution opportunities to recoup the costs of both illegal and legal in-state production. Disrupting these interstate distribution channels remains a priority of our office,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
According to court documents, in September 2017, the Springfield Police Department began an investigation after being contacted by United Parcel Service (UPS) regarding several packages Manzer shipped to Oklahoma City, Oklahoma that had a strong marijuana odor. UPS later confirmed that, in October 2017, Manzer sent several additional packages next day air to Oklahoma City also believed to contain marijuana. During the same time period, several packages containing numerous stacks of cash bound in $1,000 increments were sent to Manzer’s home address in Springfield.
In November 2017, Springfield Police obtained a search warrant for all packages sent or received by Manzer via UPS. Shortly thereafter, an officer was conducting surveillance at a UPS store in Springfield when he saw Manzer arrive in a pickup truck with “Curran’s Taxidermy” written on the side. The officer observed Manzer bringing six packages into the store, which he dropped off for next day shipment to Oklahoma. A Springfield Police canine unit responded to the scene and the canine alerted to the packages.
The Springfield Police officer executed a search warrant on the packages and located six large Styrofoam rocks containing 143 pounds of marijuana.
Manzer faces a maximum sentence of 20 years in prison, a $1 million fine and a three-year term of supervised release. He will be sentenced on February 26, 2019 before U.S. District Court Judge Ann Aiken.
As part of the plea agreement, Manzer agrees to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.
This case was investigated by the Springfield Police Department and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
South Florida Doctor Pleads Guilty to Tax Evasion and Disability FraudRead the Press Release
A South Florida doctor residing in Hobe Sound, Florida, pleaded guilty today to tax evasion, wire fraud, and Social Security disability fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and information provided to the court, Arthur John Kranz was a doctor specializing in psychiatry. Beginning in 2002, Kranz made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. In December 2003, Kranz submitted an application to the Social Security Administration (SSA) for disability benefits, which was later approved. Kranz then began receiving SSA disability payments in addition to the private disability insurance payments. Kranz was required to notify his insurance company and the SSA if he returned to work.
From January 2006 to March 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income. Kranz did not report his employment to either the SSA or his insurance company. Rather, in order to continue collecting disability benefits, Kranz took steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS). He directed that his income be paid to nominee individuals and corporations. Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist.
Kranz also submitted fraudulent documentation to his insurance company that falsely stated that he was not working.
Sentencing is scheduled for February 6, 2019. Kranz faces a maximum sentence of five years in prison for tax evasion, 20 years in prison for wire fraud, and five years in prison for Social Security fraud. Kranz also faces a period of supervised release, restitution of $451,026 to SSA, $341,032 to his insurance company, and an amount to the IRS to be determined by the court, as well as monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the SSA Office of Inspector General, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr., Michael C. Boteler, and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South Bend Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Kevin Pope, 32 years old, of South Bend, IN, was sentenced by U.S. District Court Judge Robert Miller, Jr., after pleading guilty to possessing heroin with the intent to distribute, announced U.S. Attorney Kirsch.
Pope was sentenced to 60 months imprisonment and 4 years supervised release when released from prison.
According to documents in the case, on or about April 5, 2017, Pope was in possession with intent to distribute over 100 grams of heroin.
This case was investigated by the ATF with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
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Sexual predator from Williams County sentenced to nearly two years in prison after traveling to Asia without permission and failing to register as a sex offenderRead the Press Release
A sexual predator from Williams County was sentenced to nearly two years in prison after traveling to Asia without permission and failing to register as a sex offender.
Mark Timothy Schafer, 49, of Bryan, was sentenced to 21 months in federal prison after previously pleading guilty to one count of failing to register as a sex offender and one count of failure to notify of international travel.
“This defendant ignored the law when he failed to register as a sex offender and traveled abroad to teach children,” U.S. Attorney Justin Herdman said. “Our community is safer with this man behind bars.”
Schafer was convicted of gross sexual imposition in 2004 in the Defiance County Court of Common Pleas. He was classified as a Tier III sex offender – meaning he had to register his address every 90 days – because his crime involved a victim under the age of 13, according to court documents.
Schafer registered as a sex offender following his release from state prison. He updated his registration, which changes to employment and address, multiple times in 2017, most recently with the Williams County Sheriff’s Office.
In 2017, Schafer applied for a U.S. passport, but failed to notify the Williams County Sheriff’s Office that he planned to travel abroad. Schafer applied for a Chinese visa and for a job to teach English in Shenyang, China. Schafer arrived in China on Nov. 21, 2017 and taught English to children there.
His employment was terminated in China in January 2018 and he returned to the U.S. via Detroit, according to court documents.
This case was investigated by the U.S. Marshal’s Service, Department of State, Customs and Border Protection and Department of Homeland Security. It was prosecuted by Assistant U.S. Attorneys Alissa K. Sterling and Jody L. King.
Serial Robbers Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Shaun Michael Cook, 31, of Lansing, Michigan, was sentenced to 102 months in federal prison for his role in a series of Lansing area robberies, U.S. Attorney Andrew Birge announced today. Cook and his codefendants, Donald Charles Westmoreland and Shackeem Louis Jones, committed a series of armed robberies of various businesses in the Lansing metropolitan area from November 2016 through May 2017. Cook, Jones and Westmoreland each pleaded guilty earlier this year to interference with commerce by robbery and brandishing a firearm. United States District Judge Janet T. Neff, who sentenced Cook, sentenced Westmoreland to 87 months in prison and Jones to 96 months. She ordered Cook to pay $2,139.21 in restitution and Jones and Westmoreland to pay $4,739.21.
"Reducing violent crime rates is a priority for this office as well as the Department of Justice," said U.S. Attorney Andrew Birge. "Repeated violent behavior involving firearms will be met with increased law enforcement attention, swift justice, and severe punishment."
During most of these robberies, two of the men would enter a business, point a gun at the employees and customers, demand money, and order everyone to the ground. During some of the robberies, the men destroyed the businesses’ telephones or stole cell phones from employees in order to prevent calls for help. At sentencing, Judge Neff attributed the following robberies to this group (all occurred in the Lansing area unless otherwise indicated):
• November 16, 2016: Cook and Jones robbed a Subway restaurant on Saginaw Highway;
• December 18, 2016: Cook, Jones, and Westmoreland robbed a Subway restaurant on Larch Street;
• December 24, 2016: Cook and Jones robbed a Subway restaurant on Grand River Avenue;
• December 27, 2016: Cook, Jones, and Westmoreland robbed a Beauty Max beauty supply store on West Saginaw Highway;
• December 27, 2016: Cook, Jones, and Westmoreland robbed a Citgo Gas Station near Wildwood Avenue in the Jackson, Michigan area;
• December 28, 2016: Cook, Jones, and Westmoreland robbed a Subway on East Saginaw Highway;
• December 29, 2016: Jones and Westmoreland robbed a Biggby coffee shop on Elmwood Road;
• January 10, 2017: Jones and Westmoreland robbed a Subway on East Lake Lansing Road;
• January 23, 2018: Jones and Westmoreland robbed a Family Dollar store on South Pennsylvania Avenue;
• March 13, 2017: Jones and Westmoreland robbed an Admiral gas station on West Saginaw Highway;
• March 15, 2017: Jones and Westmoreland robbed a Quality Dairy convenience store on Waverly Road;
• March 27, 2017: Jones and Westmoreland robbed a Little Caesars pizzeria on East Grand River;
• April 27, 2017: Jones robbed a Jimmy John’s restaurant on East Grand River Avenue; and
• May 1, 2017: Jones robbed a Little Caesar’s pizzeria on East Grand River Avenue.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Eaton County Sheriff’s Office, the Lansing Police Department, the Lansing Township Police Department, the Meridian Township Police Department, and the Michigan State Police. Assistant U.S. Attorney Alexis M. Sanford handled the prosecution.
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Schools Maintenance Worker Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – An Cape May County, New Jersey, man today admitted defrauding New Jersey state health benefits programs and other insurers out of more than $4 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
James Wildman, 44, of Marmora, New Jersey, a former maintenance worker for the Ocean County school system, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through February 2016, Wildman served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Wildman and conspirators working under him recruited public employees covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. Wildman secured insurance information from the individuals and passed it along to a conspirator, who had a doctor sign prescriptions without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of Wildman’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Wildman and other members of the conspiracy. Wildman paid individuals cash to reward them for obtaining prescriptions. Wildman himself received compounded medications he did not need in order to financially benefit a conspirator.
The Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $4,879,776 for prescriptions submitted by Wildman and his cohorts. Wildman received $657,040 for his role in the scheme.
Wildman faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 25, 2019. As part of his plea agreement, Wildman must forfeit $657,040 in criminal proceeds and pay restitution of at least $4,879,776.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Greg W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Mark E. Roddy Esq., Pleasantville, New Jersey
Schenectady Man Sentenced to 180 Months for Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – William L. Hale, a/k/a “Man,” age 44, of Schenectady, New York, was sentenced today to 180 months for distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Gary L. Sharpe also imposed a 15-year term of supervised release, to begin after Hale is released from prison.
As part of his guilty plea, Hale admitted that he distributed more than 28 grams of cocaine base (a/k/a crack cocaine) on November 18, 2016. This is Hale’s fifth drug felony conviction.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department. This case was prosecuted by Assistant U.S. Attorney Michael Barnett.
Salvadoran National Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A Salvadoran national pleaded guilty today in federal court in Boston to failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).
Melvin Velasquez, 34, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Feb. 28, 2019. Velasquez was charged by complaint in August 2018 and has been in custody since.
In 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in jail. Velasquez was subsequently required to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was determined to be illegally present in the United States, was sentenced on the rape charge, and, upon completion of his sentence in 2008, deported to El Salvador.
Sometime thereafter, Velasquez returned to the United States and assumed a false identity. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his A-file and from his 2007 New York rape conviction. Law enforcement then queried the Massachusetts Sex Offender Registry Board and determined that Velasquez had not registered, as required by law, in Massachusetts.
The charge of failure to register provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 fine. Velasquez will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; United States Marshal John Gibbons of the District of Massachusetts; and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Rochester Man Pleads Guilty to Smuggling Counterfeit Cialis and Viagra into the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Samuel McFarland, 55, of Rochester, NY, pleaded guilty to two counts of smuggling goods into the United States before U.S. District Judge David G. Larimer. The charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that on April 10, 2017, Customs and Border Protection officers at the John F. Kennedy International Airport intercepted a package coming from Hong Kong that was addressed to the defendant. The package contained 3,012 counterfeit Viagra pills and 190 counterfeit Cialis pills. The pills were determined to be counterfeit.
On January 8, 2018, CBP officers at the Rochester International Airport intercepted a package coming from China that was also addressed to McFarland’s residence. That package contained 100 bottles which included 30 counterfeit Cialis pills in each. The manifest for the package of 3000 counterfeit pills falsely listed the contents as “free trade sample” and claimed the package contained 50 plastic bottles valued at $1.00 each.
On January 25, 2018, Homeland Security Investigations conducted a controlled delivery at the defendant’s residence of the package intercepted on January 8, 2018. McFarland answered the door and signed for the package. Federal agents then approached the house and executed a federal search warrant. During the search, agents recovered the package, as well McFarland’s cellular phone.
The defendant admitted to agents that he ordered both the April 2017 package and the January 2018 package, knowing that they contained counterfeit pills. An analysis of McFarland’s cellular phone revealed several searches for “fake Viagra,” related searches for pictures of real and counterfeit Viagra pills, searches for terms such as “package us customs detainment,” and photos that were cached from websites including “how to get Viagra for $1.”
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; and the Food and Drug Administration, Office of Criminal Investigations, under the direction of Special Agent-in-Charge Jeffrey Ebersole, New York Field Office.
Sentencing is scheduled for May 23, 2019, at 10:00 a.m. before Judge Larimer.
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Robbery Getaway Driver Sentenced to 4 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY VITO, 28, formerly of Stoughton, Massachusetts, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by four years of supervised release, for serving as the getaway driver for an armed bank robbery and two commercial robberies in December 2017.
According to court documents and statements made in court, on December 8, 2017, Vito drove Anthony Provost to the Mobil Gas Station and Dunkin Donuts located at 750 Straits Turnpike in Middlebury. Provost first threatened the cashier at the Mobil station with what appeared to be a firearm, and instructed her to open the cash register and provide her with all of its contents. The cashier complied and provided him with $578. The cashier also complied with Provost’s demand that she give him cigarettes valued at approximately $131. Provost then went to the cashier at the Dunkin Donuts, lifted his shirt to display what appeared to be a firearm and demanded money. During the robbery, when a customer entered the premises, Provost pointed the firearm at her and told her to keep her hands out of her pocketbook. The cashier gave Provost approximately $350. Provost then fled the premises in the vehicle driven by Vito.
Vito then drove Provost to the Thomaston Savings Bank located at 508 South Main Street in Thomaston. At the bank, Provost handed the teller a note stating “Robbery 20’s, 50’s, 100’s, quiet.” Provost also displayed what appeared to be a firearm. After the teller gave him money, Provost told her to get money from the other teller. The teller complied, and Provost left the bank with $1,471. Provost and Vito then fled the scene.
On December 9, 2017, Provost was arrested by Waterbury Police officers in a motel room that was occupied by Vito and another individual. At the scene, officers recovered a silver and beige handled CO-2 powered BB gun, a black ski mask, a gray ski mask, $542 in cash, and multiple packs of cigarettes. Officers also seized a red Ford Explorer that had been used during several of the robberies. Vito was arrested shortly thereafter.
Provost and Vito have been detained since their arrests.
On June 8, 2018, Vito pleaded guilty to one count of aiding and abetting an armed bank robbery.
On April 26, 2018, Provost pleaded guilty to one count of armed bank robbery and admitted that he committed these robberies and several others in Connecticut, Massachusetts and New Hampshire late last year. On July 19, 2018, he was sentenced to 96 months of imprisonment.
This investigation was conducted by the Federal Bureau of Investigation and the Waterbury, Southington, Thomaston, Putnam, Avon, Middlebury, Shrewsbury (Mass.) and Nashua (N.H.) Police Departments. This case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Raleigh Man Sentenced to 48 Months for Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, LYCURTIS QUAMAE LEON THOMPSON, 25, of Raleigh, was sentenced by United States District Judge James C. Dever, III for felon in possession of a firearm. Judge Dever sentenced THOMPSON to 48 months’ imprisonment followed by 3 years of supervised release.
THOMPSON was charged in a one-count Indictment on June 6, 2018, and pleaded guilty on August 23, 2018, to felon in possession of a firearm.
On December 28, 2017, officers of the Raleigh Police Department conducted a traffic stop on a vehicle that THOMPSON was driving. After observing THOMPSON making quick movements in the vehicle, officers searched him and found a loaded magazine, a digital scale, and money. Inside the vehicle’s glove box officers found a .45 caliber handgun and a jar containing marijuana and cocaine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Raleigh Man Sentenced for Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, WOODIE LAMONT HERRING, 47, of Raleigh, was sentenced by United States District Judge James C. Dever, III for felon in possession of a firearm. Judge Dever sentenced HERRING to 120 months imprisonment followed by 3 years of supervised release.
HERRING was charged in a two-count Superseding Indictment on April 19, 2018, and pleaded guilty on July 23, 2018, to felon in possession of a firearm.
On November 20, 2017, officers of the Raleigh Police Department (RPD) conducted a traffic stop on a vehicle that HERRING was driving. A firearm sat on the passenger’s seat. HERRING initially reached for the gun; however, after officers told him to move away from the gun, HERRING complied. HERRING later was released on bond on state charges, and federal charges were then filed against him.
On April 20, 2018, RPD officers again conducted a traffic stop on a vehicle that HERRING was driving. During the stop, officers learned that HERRING had an active federal warrant and attempted to arrest HERRING. HERRING fled. Officers caught up to HERRING, who resisted arrest, fought with officers, and tried to pull a firearm out of his waistband. HERRING ignored repeated commands to stop resisting, and eventually it took numerous officers to arrest HERRING.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and is targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Raleigh Man Convicted of Federal Drug and Firearms Charges Sentenced to 20 Years in PrisonRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever III sentenced ANDREW HARGETT, JR. 46, to 240 months imprisonment followed by 8 years of supervised release. HARGETT was also fined $10,000.00. HARGETT was convicted by a federal jury on August 22, 2018 of possession with the intent to distribute 500 grams or more of cocaine, possession with the intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
The evidence presented at trial established that HARGETT regularly traveled to Atlanta, Georgia to obtain kilogram quantities of cocaine and transported the drugs back to Raleigh, North Carolina in rental vehicles for distribution. The investigation resulted in the seizure of over 2 ½ kilograms of cocaine, crack cocaine, $142,000.00, and a firearm that were recovered from his residence, two vehicles, and two storage lockers. This prosecution resulted in helping to choke the supply line of cocaine into the Metropolitan Raleigh area.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Nash County Sheriff’s Office, Wilson Police Department, Raleigh Police Department, and the Rocky Mount Police Department. Assistant United States Attorney James Kurosad prosecuted the case on behalf of the United States.
Previously Convicted Sex Offender from Albuquerque Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Christopher Raymond Lopez, 53, of Albuquerque, N.M., a previously convicted sex offender, pleaded guilty this morning in federal court to an indictment charging him with possessing child pornography. Lopez entered the guilty plea without the benefit of a plea agreement.
Homeland Security Investigations and the Albuquerque Police Department arrested Lopez on Feb. 22, 2018, on the three-count indictment, which was filed on Feb. 14, 2018, and charged him with possessing visual depictions of minors engaged in sexually explicit conduct on a hard drive, a computer and a thumb drive. According to the indictment, Lopez committed the crimes on June 29, 2016, in Bernalillo County, N.M.
Lopez remains in custody pending a sentencing hearing which has yet to be scheduled. At sentencing, Lopez faces a statutory maximum penalty of 20 years in federal prison. Lopez will also be required to register as a sex offender because of his felony convictions.
This case was investigated by Homeland Security Investigations and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Postal Employee Pleads Guilty to Stealing MailRead 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 Thomas Cyphert, 65, of Angola, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to theft of mail matter by a postal employee. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Douglas A. Penrose, who is handling the case, stated that on October 10, 2018, personnel at the Hamburg, NY Post Office observed what appeared to be undelivered mail in the personal vehicle of the defendant, who was employed as a postal carrier at the time. Investigators subsequently recovered 14 tubs of undelivered mail, including First Class mail, standard letter mail, and non-profit/bulk mail from the Cyphert’s vehicle. A subsequent search of the defendant’s home resulted in the recovery of an additional 27 tubs of undelivered mail. In total, investigators recovered over 1,500 pieces of First Class mail.
The plea is the result of an investigation by Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely; Town of Evans Police Department Chief Douglas Czora; and Special Agents from Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for March 11, 2019, at 12:30 p.m. before Judge Arcara.
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Portland Man Pleads Guilty to Federal Bribery Charge for Attempting to Bribe ICE Deportation OfficerRead the Press Release
PORTLAND, Ore. – Antonio Oswaldo Burgos, 48, of Portland, pleaded guilty today to one count of bribery of a public official after attempting to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer.
“Attempting to bribe a federal law enforcement officer is a serious crime and will be met with equally-serious consequences,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I commend the ICE officer involved in this case for responding to Burgos’ criminal proposition with the utmost level of professionalism and resolve.”
“We rely upon our officers to perform their duties with integrity,” said Brad Bench, Special Agent in Charge for HSI Seattle. “Because of the deportation officer’s actions, Burgos is being brought to justice. This case should send a strong message that those who attempt to coerce a public official will be punished.”
According to court documents, on May 24, 2018, Burgos followed an ICE deportation officer in his vehicle from the ICE office in Portland until the officer stopped in a parking lot in Vancouver, Washington. The defendant offered the officer money to deport his wife who he had met in El Salvador and was in the process of divorcing. The officer declined Burgos’ offer and reported the event to the ICE Office of Professional Responsibility (OPR).
On May 31, 2018, the officer made a recorded call to Burgos with the assistance of an OPR investigation team. Burgos offered to the pay the officer $3,000 to remove his wife from the U.S. On June 5, 2018, the officer and OPR team made a second recorded call on which Burgos again offered to pay the officer for his wife’s removal. Burgos and the officer proceeded to discuss logistics for an in-person meeting.
On June 6, 2018, Burgos met the officer in a pre-determined location and offered to pay $4,000 for the removal of his wife and his wife’s minor child from a previous relationship. Burgos was arrested on June 29, 2018.
Burgos faces a maximum sentence of 15 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on May 6, 2019 before U.S. District Court Judge Michael H. Simon.
This case was jointly investigated by ICE OPR and Homeland Security Investigations. It is being prosecuted by Rachel K. Sowray and Claire M. Fay, Assistant U.S. Attorneys for the District of Oregon.
Orleans Investment Adviser Pleads Guilty to Multi-Million Dollar Fraud and Identity TheftRead the Press Release
BOSTON – An Orleans investment adviser pleaded guilty yesterday in federal court in Boston to defrauding her clients of more than $3 million and using those funds for her own expenses.
Kimberly Kitts, 51, pleaded guilty to an Information charging her with one count of investment adviser fraud, four counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 20, 2019.
Beginning in 2011, Kitts engaged in various schemes to misappropriate her clients’ assets in order to pay her personal expenses. In one scheme, she directed client assets to a bank account for Marquis Consulting, an entity she controlled. In another scheme, Kitts used her position as an investment adviser to divert her clients’ funds to her own account and then took the funds for her own personal use. This included cashing her clients’ annuities, transferring funds out of her clients’ brokerage accounts and directing distributions from her clients’ Individual Retirement Accounts. In total, Kitts misappropriated approximately $3,085,939 from her clients.
The charge of investment adviser fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $10,000. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison, which must be served consecutive to any other sentence imposed by the court. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and 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 provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Orient Man Sentenced for Federal Crop Insurance FraudRead the Press Release
DES MOINES, IA – On November 16, 2018, Carl Jeffrey Campbell, age 71, of Orient, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to three years of supervised release, with four months of home confinement for making a false statement in connection with federal crop insurance, announced United States Attorney Marc Krickbaum. Campbell was ordered to pay a $5,000 fine, $100 to the Crime Victims’ Fund, and $32,440 to the United States Department of Agriculture (“USDA”) as restitution. Campbell was also ordered to serve 160 hours of community service.
Campbell pleaded guilty to the offense on July 6, 2018. In 2014, Campbell obtained crop insurance for two farms from an insurance company that was insured by the Federal Crop Insurance Corporation. The Federal Reinsured Crop Program is administered by the Risk Management Agency, which is an agency of the United States Department of Agriculture, and the Federal Crop Insurance Corporation, which is a wholly-owned government corporation. The Federal Crop Insurance Corporation reimburses insurance companies for the indemnity payments made to policyholders under the Federal Reinsured Crop Program.
Crop shifting occurs when a farmer underreports production in a field in order to reach the percentage of loss required to receive an indemnity from their crop insurance policy. Campbell “shifted” production from one farm to another by reporting that several thousand bushels of grain were harvested from one farm when he knew that those bushels were in fact harvested from the other farm. By reporting the bushels of grain from the incorrect farm, or shifting the production, Defendant received insurance indemnities to which he was not entitled. Defendant also “hid” production by not reporting to the USDA or Federal Crop Insurance Corporation several thousand bushels of corn sold in his son’s name. By failing to report the bushels of grain sold in his son’s name, Defendant received insurance indemnities to which he was not entitled.
This matter was investigated by the United States Department of Agriculture Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Orchard Park Man Sentenced for Assaulting A Woman During an American Airlines FlightRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Hildebrand, 50, of Orchard Park, NY, who was convicted of assault within the special aircraft jurisdiction of the United States, was sentenced to one year probation by U.S. Magistrate Judge Michael J. Roemer.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that on December 20, 2017, the defendant was a passenger on a United Airlines flight from Newark, NJ to Buffalo, NY. During the flight, Hildebrand assaulted a woman by grabbing the victim’s groin area without consent.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.
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Newberry Man Pleads Guilty to Federal Firearm Charge Stemming from Vista ShootingRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Maleik Houseal, 23, of Newberry, South Carolina, pled guilty in federal court to being a felon in possession of a firearm in relation to a September 2017 Columbia shooting.
Evidence presented in court established that at approximately 2:12 am on September 16, 2017, a shooting between a group of individuals from Newberry occurred outside the Empire Supper Club in the Vista entertainment district of Columbia. It was a college football weekend and the Vista area was full of people. All total, eight individuals, including Houseal, were shot.
The investigation showed that when the club closed at 2:00 am, as people spilled out onto the sidewalks, Houseal went to the parking lot and retrieved a firearm from a car. Houseal returned to the sidewalk area outside of the club, where he remained. As another group of individuals from Newberry left the club parking lot, they fired weapons from their cars in Houseal’s direction, striking Houseal and others. Houseal fired back and ran after the cars, firing his weapon. He then discarded his 9mm handgun in a pile of chairs outside the club, where authorities later recovered it.
Houseal and the other individuals in the vehicles were all charged with various state charges stemming from the incident. Those state charges remain pending, and they are considered innocent unless and until proven guilty.
Federal law prohibits Houseal from possessing firearms and ammunition based upon his prior state convictions. Houseal has the following prior convictions: burglary 2nd degree, carrying a firearm in a public building/adjacent area, carrying an unlawful weapon (two separate convictions), burglary 3rd degree, obstruction of justice, and possession with intent to distribute marijuana. At the time of the September 2017 shooting, Houseal was both on state probation and on state bonds for incidents that occurred after his release from the South Carolina Department of Corrections in May 2017.
Houseal faces a maximum sentence of 10 years in federal prison, a fine of $250,000, and 3 years of supervised release. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has received and reviewed a presentence report prepared by the United States Probation Office.
The case was investigated by the Federal Bureau of Investigation (FBI), the Columbia Police Department, and the Richland County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state, and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001 that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Turning the tide of rising violent crime in America is a top priority for the Department of Justice, which has reinstituted PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy. Assistant United States Attorney Stacey D. Haynes of the Columbia office is prosecuting the case.
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Newark Man Sentenced to 7 Years in Prison for Heroin TraffickingRead the Press Release
PITTSBURGH, Pa. – A former New Jersey resident has been sentenced in federal court to a term of imprisonment of seven years, to be followed by five years of supervised release on his conviction on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Shawn Robinson, 36, formerly of Newark, NJ.
According to information presented to the court, on October 14, 2015, one of Robinson’s co-conspirators made arrangements to sell 100 bricks of heroin for $14,500 to another individual. Robinson’s co-conspirator also agreed to advance an additional 50 bricks of heroin. Robinson and another of his co-conspirators arrived at the Hyatt Place in Robinson Township to deliver the heroin. When they arrived, Robinson was carrying a black plastic shopping bag. Inside of the shopping bag, officers recovered a clear plastic vacuum-sealed bag containing 150 bricks of heroin, weighing 185.92 grams.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Robinson.
New York Man Pleads Guilty to Heroin, Fentanyl and Crack Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Frankie Dejesus, 28, of Rochester, New York, pled guilty in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Dejesus conspired with others to acquire heroin, fentanyl and crack in Rochester and to distribute it in Central Maine. The defendant was sent to Central Maine to distribute the drugs while residing with several Central Maine residents who were paid in heroin and crack for their participation.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life on supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Madrid County Man and Farm Indicted on Illegally Applying Dicamba on CropsRead the Press Release
Cape Girardeau – Bobby David Lowrey, 51, of Parma, MO, and Lowrey & Lowrey Inc. were indicted on November 13, 2018 for illegally applying Dicamba to crops.
According to the indictment, Bobby David Lowrey owned and operated Lowrey Farms. In the calendar year 2016, Lowrey Farms, under the management of Bobby David Lowrey, engaged in the cultivation of cotton and soybean crops on approximately 6,700 acres over numerous fields and plots located in the Eastern District of Missouri. The soybean and cotton crops planted on Lowrey Farms in 2016 were genetically modified to be resistant to the pesticide dicamba. Dicamba is a broadleaf herbicide used to kill unwanted weeds. The dicamba-based pesticide product was not approved for post-planting application to cotton crops and had limitations on its soybean application.
On multiple occasions in 2016, under the direction of Bobby David Lowrey, dicamba-based pesticides were applied at Lowrey Farms post-planting to cotton and to non-mature soybean crops prior to the approved preharvest application interval. Multiple farmers with crops growing in the vicinity of soybean and cotton fields or plots cultivated by Lowrey Farms reported damage to their crops in May and June of 2016 consistent with drift from the use of dicamba-based pesticides applied on Lowrey Farms. In response to numerous reports of crop damage in the vicinity of Lowrey Farms, Missouri Department of Agriculture responded to the area in late June 2016. Investigators with MDA requested to meet with Bobby David Lowrey and asked Lowrey Farms to provide current spray application records for cotton and soybean crops.
On several dates in 2016, Bobby David Lowrey made false statements to investigators and provided fraudulent documentation to investigators certifying that dicamba-based products had only been applied during burndown applications. In truth, Bobby David Lowrey knew he had provided altered documents to investigators to hide the fact that dicamba-based products had been used at Lowrey Farms outside of the application guidelines.
If convicted, Bobby David Lowrey faces up to 20 years’ imprisonment and a fine up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. The Indictment alleges forty-nine instances of misapplication of a pesticide, a false statement and three acts of obstruction of justice.
“Although weed killers like Dicamba have been around for decades, it is critical that applicators follow manufacturer instructions when applying them,” said EPA Special Agent in Charge Jeffrey Martinez. “The misuse of this product has resulted in significant crop damage at neighboring farms. Yesterday’s indictment shows that EPA and its law enforcement partners will do what it takes to ensure the safe and legal use of herbicides.”
The case was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, the Missouri Department of Natural Resources and the Missouri Department of Agricultural. Assistant U.S. Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
New Haven Man Sentenced to More Than 9 Years in Federal Prison for Robbery and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SHAQUILLE RICHARDSON, 25, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 117 months of imprisonment, followed by five years of supervised release, for robbery and firearm offenses.
According to court documents and statements made in court, on June 30, 2016, at approximately 1:41 a.m., New Haven Police officers were dispatched to Ferry Street after a report that a person had been shot. At the scene, officers found two victims. One victim had been shot in the left elbow and was bleeding heavily, and the other victim was bleeding from the nose.
The investigation, which has included witness interviews, DNA evidence, ballistics evidence and footage from a surveillance video, revealed that Richardson and Thomas Johnson attacked the two victims after they exited a convenience store in an attempt to steal marijuana and money from the victims. Johnson shot one of the victims in his elbow and Richardson struck the other victim in the face with a gun.
Officers apprehended Richardson near the scene of the robbery. When Richardson was found, he was bleeding from a gash to his hand where one of the victims had slashed him with a knife in self-defense. Johnson was arrested on July 28, 2016, during a motor vehicle stop. At the time of his arrest, Johnson possessed the firearm he used during the robbery.
Richardson has been detained since his arrest. On January 31, 2018, he pleaded guilty to one count of Hobbs Act Robbery and one count of carrying a firearm in furtherance of a crime of violence.
Johnson, of New Haven, pleaded guilty to related charges on April 4, 2018. On October 11, 2018, he was sentenced to 156 months of imprisonment.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The case was prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
Monmouth County, New Jersey, Investment Adviser Sentenced to 102 Months in Prison for Investment Fraud Scheme, Aggravated Identity Theft, and Preparing Phony Tax ReturnsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 102 months in prison for perpetrating a long-running scheme to defraud investment clients out of millions of dollars, forging an attorney’s signature without authorization in connection with that scheme, and preparing false tax returns for his clients, U.S. Attorney Craig Carpenito announced.
Scott Newsholme, 43, Farmingdale, New Jersey previously pleaded guilty before U.S. District Judge Anne E. Thompson to a three-count information charging him with wire fraud, aggravated identity theft, and preparing fraudulent tax returns. Judge Thompson imposed the sentence today in Trenton federal court.
In September 2017, Newsholme was charged by criminal complaint with mail fraud, wire fraud, and securities fraud, and was released on bail. In October 2017, after law enforcement discovered that Newsholme continued his fraudulent scheme while out on bail, he was charged in an amended criminal complaint with mail fraud, wire fraud, securities fraud, and aggravated identity theft. Newsholme’s bail was revoked and he was detained pending trial.
According to documents filed in this case and statements made in court:
Since 2002, Newsholme owned and operated at least three different financial advisory and tax return preparation businesses. Between 2007 and 2017, Newsholme recommended to multiple clients that they invest their money with him, which he would use on their behalf to invest in various securities and other investments, including bond instruments issued by a private New Jersey country club, a bond investment in a video-game production company, and investments in the production of a movie.
Newsholme also represented to clients for whom he would invest their money in more traditional securities, including mutual funds, annuities, life insurance policies, college education accounts, money market funds, and an escrow account for the purchase of a house. Newsholme directed his investment clients to write checks to him or one of his companies so that he could execute the investments on their behalf.
Rather than invest the money as he represented, Newsome cashed or deposited the checks and used the funds for personal expenses, including multiple vehicles, bedroom furniture, debits at casinos, bank transfers to Newsholme’s personal bank accounts, and ATM withdrawals.
Newsholme concealed his scheme by diverting incoming investment funds to pay other clients who had requested to withdraw funds from their investment portfolios. Newsholme also provided his clients phony account statements, security instruments, and other documentation that falsely represented to the clients the status of their investments.
In October 2017, Newsholme provided a letter to one of his investment clients from whom he had misappropriated approximately $62,000. The letter, which Newsholme represented had been prepared by an attorney, stated that the client’s funds were held safely in an escrow account established by the attorney. However, Newsholme fabricated the letter and forged the attorney’s signature without the attorney’s authorization in order to conceal his misappropriation of the funds.
Newsholme misappropriated more than $3.1 million from his investment clients, resulting in net investment losses of more than $1.8 million.
In addition to the wire fraud and aggravated identity theft charges, Newsholme also admitted preparing fraudulent tax returns on behalf of his clients. The fraudulent returns that Newsholme prepared claimed inflated deductions for unreimbursed employee business expenses, charitable donations, and medical expenses to which his clients were not entitled.
In addition to the prison term, Judge Thompson sentenced Newsholme to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation. He also thanked the SEC’s New York Regional Office, under the direction of Director Mark P. Berger, and the N.J. Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, for their assistance with the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Mitchell Man Charged with Methamphetamine and Firearm OffensesRead the Press Release
United States Attorney Ron Parsons announced that a Mitchell, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Possession of an Unregistered Firearm, Possession of a Firearm with an Obliterated Serial Number, and Possession of a Firearm by a Prohibited Person.
Eli Erickson, age 31, was indicted on November 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 20, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than January 1, 2016, and continuing through the date the Indictment was filed, Erickson combined, conspired, confederated and agreed with persons to knowingly distribute and possess with the intent to distribute 500 grams of more of methamphetamine. The Indictment also alleges that during this time, Erickson possessed multiple firearms in furtherance of a drug trafficking crime. One of the firearms Erickson possessed was a short-barreled shotgun not registered to him in the National Firearms Registration and Transfer Record, and another had the serial number obliterated.
The charges are merely accusations and Erickson is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Erickson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mississippi County Sheriff Pleads Guilty to Fraud and Identity Theft, Agrees to ResignRead the Press Release
St. Louis, MO – Cory Hutcheson, 35, of East Prairie, MO, pled guilty to wire fraud and to illegally possessing and transferring the means of identification of others, in this case mobile telephone numbers, without lawful authority, and in connection with the commission of the state felony crime of Forgery. Sentencing has been set for February 28, 2019.
In his plea, Hutcheson admitted from April of 2014 through March 2017, he devised a scheme to obtain hundreds of individual’s location data. The defendant submitted thousands of Securus LBS requests and obtained the location data of individual phone subscribers without valid legal authorization, and, often, without the consent or even knowledge of the targeted individual. The defendant obtained the location data of mobile telephone users, including law enforcement officers, personal associates and friends, as well as a judge, without required legal process or authorization. He would routinely upload false and fraudulent documents to the Securus LBS platform. The location information request was submitted using wire communications transmitted in interstate.
Hutcheson faces a maximum penalty of 20 years and a fine of $250,000 on the wire fraud charge and not more than 5 years and a fine of $250,000 on the transfer of identification information charge. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. As part of the plea, Hutcheson agreed to resign as Sheriff not later than November 24, 2018.
“Sheriff Hutcheson simply misused an important law enforcement tool for his own purposes and, as a result, invaded the privacy of hundreds without the appropriate legal process,” said U.S. Attorney Jeff Jensen.
This case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol and was prosecuted in cooperation with the Missouri Attorney General’s Office. Assistant United States Attorneys Gwen Carroll and Lindsey McClure-Hartman are handling the case for the U.S. Attorney’s Office.
Minnesota Man Found Alive After Allegedly Faking His Death for Insurance ClaimRead the Press Release
United States Attorney Erica H. MacDonald today announced the arrest and extradition of IGOR VOROTINOV, 54. The defendant made his initial appearance on November 19, 2018, before United States Magistrate Judge Kate Menendez, in U.S. District Court, in Minneapolis, Minnesota. IGOR VOROTINOV was federally indicted on February 19, 2015, on one count of mail fraud. [1] He was arrested on November 14, 2018 in the Republic of Moldova, and extradited to the United States, arriving on United States soil on November 17, 2018.
According to the indictment and documents filed in court, in March 2010, IGOR VOROTINOV obtained a $2 million life insurance policy on his own life from Mutual of Omaha Insurance Company (Mutual of Omaha), and designated his wife, IRINA VOROTINOV, as the primary beneficiary.
According to the indictment and documents filed in court, on October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as IGOR VOROTINOV. IRINA VOROTINOV traveled to Moldova to identify the body. After positively identifying the corpse as IGOR, IRINA obtained a death certificate from Moldovan authorities and had the corpse cremated. Returning to the United States with the death certificate and an urn with ashes claiming to be that of IGOR’s remains, IRINA submitted the death claim to Mutual of Omaha for the $2 million policy. A funeral was held where the urn was placed in a niche at Lakewood Cemetery in Minneapolis.
According to the indictment and documents filed in court, on March 23, 2012, Mutual of Omaha sent a proceeds check in the amount of $2,048,414.09, via United States mail, to IRINA’S home in Maple Grove, Minnesota.
According to documents filed in court, IRINA recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at U.S. Bank in the name of her son, ALKON VOROTINOV. Between March 29, 2012 and January 2015, more than $1.5 million of the life insurance proceeds were transferred to accounts located in Switzerland and Moldova.
According to documents filed in court, on November 27, 2013, ALKON was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of IGOR VOROTINOV taken on April 19, 2013 and on May 12, 2013, in which IGOR is alive.
On May 16, 2016, IRINA VOROTINOV pleaded guilty to one count of mail fraud and one count of engaging in a monetary transaction in criminally derived property. On November 15, 2016, IRINA VOROTINOV was sentenced to 37 months in federal prison, by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis. She is currently serving her sentence.
ALKON VOROTINOV pleaded guilty on March 24, 2015, to one count of misprision of a felony. On September 27, 2016, ALKON was sentenced to three years of probation and $2,056,554.09 in restitution (to be paid jointly) by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs handled the extradition in this matter.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
Igor Vorotinov, 54
No Known Address
Charged:
- Mail Fraud, 1 count
Irina Vorotinov, 51
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Engaging in a Monetary Transaction in Criminally Derived Property, 1 count
Sentenced:
- Mail Fraud, 37 months (served concurrently)
- Engaging in a Monetary Transaction in Criminally Derived Property, 37 months (served concurrently)
- 2 years each, supervised release (served concurrently)
- $2,056,554 in restitution to be paid jointly
Alkon Vorotinov, 28
Plymouth, Minn.
Convicted:
- Misprision of a Felony, 1 count
Sentenced:
- 2 years of probation
- $2,056,554 in restitution to be paid jointly
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mineral County residents indicted on drug distribution and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Phillip Arnold Bennett and Erica Lucinda Taylor, both of Piedmont, West Virginia, were indicted today by a federal grand jury on drug distribution and firearms charges, United States Attorney Bill Powell announced.
Bennett, age 30, is charged with one count of “Conspiracy to Distribute Heroin, Fentanyl, and Methamphetamine,” one count of “Unlawful Possession of a Firearm,” one count of “Distribution of Methamphetamine,” three counts of “Distribution of Heroin,” one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl,” two counts of “Aiding and Abetting Possession with Intent to Distribute Heroin,” one count of “Aiding and Abetting Distribution of Heroin,” one count of “Aiding and Abetting Distribution of Fentanyl,” one count of “Possession with Intent to Distribute Fentanyl,” and one count of “Possession with Intent to Distribute Heroin.” Bennett is accused of distributing heroin, fentanyl, and methamphetamine in Mineral County and elsewhere from September 2017 to August 2018. He is also accused of illegally possessing a .380 caliber pistol.
Taylor, age 30, is charged with one count of “Conspiracy to Distribute Heroin, Fentanyl, and Methamphetamine,” one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl,” two counts of “Aiding and Abetting Possession with Intent to Distribute Heroin,” two counts of “Distribution of Heroin,” one count of “Aiding and Abetting Distribution of Fentanyl,” and one count of “Possession with Intent to Distribute Heroin.”
Bennett faces up to 20 years incarceration and a fine of up to $1,000,000 for each drug count and up to 10 years incarceration and a fine of up to $250,000 for the firearms count. Taylor faces up to up to 20 years incarceration and a fine of up to $1,000,000 for each drug count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), 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 Attorney General’s Office 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 Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the cases on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Middletown Man Pleads Guilty to Stealing from Law Firm and Family MemberRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN T. GIONFRIDDO, 68, of Middletown, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to fraud charges stemming from a scheme in which he embezzled more than $500,000 from his former employer, and then stole nearly $400,000 from his brother to pay back his employer.
According to court documents and statements made in court, Gionfriddo was hired by a Rocky Hill law firm as a paralegal in approximately August 2013. Beginning in approximately December 2013, Gionfriddo caused the firm’s bookkeeper to prepare checks payable to various of Gionfriddo’s creditors by misrepresenting that the funds were needed to pay client expenses. Gionfriddo also intercepted numerous checks payable to the law firm or to the firm’s clients, endorsed the checks over to himself, and then deposited the checks into his personal bank account for his own use.
In July 2017, Gionfriddo forged the signature of one of the firm’s partners on a Notice of Certificate Maturity in order to cancel a certificate of deposit (CD) in the name of one of the firm’s clients, and then mailed the form. When the $112,748.21 distribution check representing the proceeds of the client’s CD was mailed to the firm, Gionfriddo intercepted it, forged the signature of the payee, and converted it to his own use.
Through this scheme, Gionfriddo stole $543,372.21 from the law firm and its clients.
In late September 2017, the principals at the law firm confronted Gionfriddo about the theft of funds, and Gionfriddo promised to repay the firm. On October 3, 2017, Gionfriddo called the Thrift Savings Plan (“TSP”), a defined contribution plan for federal employees, and impersonated his brother, who had worked for the federal government and maintains a TSP account. During the call, Gionfriddo obtained information about how to effect a hardship withdrawal of money from the account and have it sent to a bank account he controlled. Gionfriddo also was advised on that call that TSP would issue a Form 1099 in January as a result of the hardship withdrawal.
On October 4, 2017, Gionfriddo faxed a form requesting a withdrawal of $195,000 from his brother’s TSP account for “medical expenses.” Gionfriddo directed the TSP to deposit the funds into a bank account that he controlled.
In an effort to conceal this scheme from his brother, Gionfriddo contacted the U.S. Postal Service and had his brother’s mail held for the entire month of January.
Gionfriddo also stole from his brother’s bank and investment accounts in the total amount of $201,518.
Gionfriddo was arrested on a criminal complaint on June 12, 2018.
Gionfriddo pleaded guilty to one count of mail fraud and one count of wire fraud. Judge Meyer scheduled sentencing for February 12, 2019, at which time Gionfriddo faces a maximum term of imprisonment of 20 years on each count.
Gionfriddo was convicted of federal wire fraud and mail fraud offenses in 2006 for embezzling more than $633,000 from clients while acting as their attorney.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Mexican National Sentenced for Conspiracy to Manufacture and Possess with Intent to Distribute MarijuanaRead the Press Release
DENVER – Margarito Yepez-Sanchez, age 25, a Mexican national who is in the United States illegally, was sentenced last week by U.S. District Court Judge R. Brooke Jackson to serve 36 months in federal prison, followed by three years of supervised release for conspiracy to manufacture and possess with intent to distribute 100 or more marijuana plants, U.S. Attorney Jason R. Dunn, U.S. Forest Service Special Agent in Charge Kent Delbon, and Homeland Security Investigations Special Agent in Charge Steven W. Cagen announced. The defendant appeared at the sentencing in custody and was remanded at the hearing’s conclusion.
Yepez-Sanchez was first charged by criminal complaint on September 21, 2017. He was indicted by a federal grand jury on October 11, 2017. His guilty plea to conspiracy to manufacture and possess with intent to distribute marijuana was accepted by Judge Jackson on August 10, 2018. Yepez-Sanchez was sentenced on November 15, 2018.
According to the stipulated facts contained in the plea agreement, in August 2017, federal agents discovered an illegal marijuana grow in the San Isabel National Forest. On September 20, 2017, agents and officers from multiple agencies executed a federal search warrant on the marijuana grow site. The grow consisted of approximately 13,800 marijuana plants and at least 120 pounds of processed marijuana. About twelve acres of federal lands were affected.
At the site law enforcement discovered two sleeping areas constructed of cut pine timber as well as two kitchen areas, additional sleeping areas, multiple marijuana-drying areas, and a man-made reservoir. Among other items, law enforcement found bottles of insecticide, rodenticide, and fertilizer. After law enforcement announced their presence the defendant fled uphill wearing socks but no shoes. A foot chase ensued resulting in the defendant being caught after law enforcement deployed a Taser. The defendant led the agents and officers to his sleeping area in the marijuana grow location.
This case was investigated by the U.S. Forest Service and Homeland Security Investigations. The following additional agencies assisted with the execution of the search and arrest warrants: U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, the Custer County Sheriff’s Office, and the Colorado National Guard.
The defendant was prosecuted by Assistant U.S. Attorney Emily May.
Mexican National Pleads Guilty to Reentering the U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOSE LUIS MERINO HERNANDEZ, also known as “Jose Mendez,” 50, pleaded guilty yesterday in Hartford federal court to one count of reentry of removed alien. Merino Hernandez is a citizen of Mexico last residing in Waterbury.
According to court documents and statements made in court, in January 2005, Merino Hernandez was removed from the U.S. to Mexico after he sustained convictions in New York. He illegally reentered the U.S. and was encountered by ICE while he was incarcerated in New York in November 2010. He was removed to Mexico in January 2011.
U.S. Customs and Border Patrol agents encountered Merino Hernandez in Tucson, Arizona, three times in May and June 2011. After the third encounter, Merino Hernandez was charged in the District of Arizona with illegal reentry. He was convicted of the offense, sentenced to 120 days of imprisonment, and removed to Mexico in October 2011.
On June 9, 2018, Merino Hernandez was arrested in Waterbury and charged with four counts of risk of injury of a minor, one count of interfering/resisting arrest, one count of breach of peace and one count of assault 3rd degree. He has been detained since his arrest. On September 10, 2018, he pleaded guilty in state court to one count of reckless endangerment in the first degree.
Merino Hernandez is scheduled to be sentenced in Hartford federal court on February 11, 2019, at which time he faces a maximum term of imprisonment of two years.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), with the assistance of the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.