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20 November 2018
Mexican Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Mexican man who illegally returned to the United States after being deported was sentenced today to four months in federal prison.
Pedro Macias-Torres, age 38, a citizen of Mexico illegally present in the United States and residing in Postville, Iowa, received the prison term after an August 21, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Macias-Torres admitted he had previously been deported from the United States in April 2002 and illegally reentered the United States without the permission of the United States government. Macias-Torres was found by immigration agents at the Fayette County, Iowa, jail in July 2018 after Macias-Torres was arrested for traffic violations. Macias-Torres has prior convictions for operating while intoxicated in Des Moines County, Iowa in 2002, and Allamakee County, Iowa in 2007.
Macias-Torres was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Macias-Torres was sentenced to 121 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Macias-Torres is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2037-CJW. Follow us on Twitter @USAO_NDIA.
Mercer County, New Jersey, Man Sentenced to Four Years in Prison for Armed Robbery Spree of Electronics Stores in New Jersey and PennsylvaniaRead the Press Release
CAMDEN, N.J. – A Trenton, New Jersey, man was sentenced today to 48 months in prison for robbing Metro PCS stores in Willingboro, New Jersey, Lumberton, New Jersey, and Levittown, Pennsylvania, in September and October 2016, U.S. Attorney Craig Carpenito announced.
Zeldrick Nance, 31, of Trenton, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to commit Hobbs Act robberies. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Sept. 29, 2016, Nance, Rodney Day, 27, of Trenton, and Lisa Anderson, 35, of Griffithville, Arkansas, drove to the Willingboro Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped the store occupants and placed them into a store bathroom. Meanwhile, Anderson stole cellular telephones and money from the cash registers. During the robbery, Day demanded the keys to a car owned by one of the victims. Day, Nance, and Anderson fled with the stolen cellular telephones and money in that stolen car.
On Oct. 7, 2016, Day, Nance, and Anderson drove to the Lumberton Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped a store occupant, put that victim in a storage room, and took the victim’s wallet and keys. Meanwhile, Anderson stole cellular telephones and money from the cash registers.
On Oct. 12, 2016, Day, Nance, and Anderson drove to the Levittown Metro PCS Store. Day once again brandished what appeared to be a firearm while Nance duct taped the victims inside the store and put them in a store bathroom. Anderson subsequently entered the store and stole cellular telephones and money from the cash registers.
In addition to the prison term, Judge Rodriguez sentenced Nance to three years of supervised release and ordered him to pay restitution of $26,307.
Day previously pleaded guilty and was sentenced Nov. 1, 2018, to 100 months in prison. Anderson has previously pleaded guilty to her role in the robberies and is currently scheduled for sentencing on Dec. 6, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Willingboro, Lumberton, and Levittown police departments, as well as the Burlington and Mercer County Prosecutor’s Offices for their assistance in this case.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Peter A. Levin Esq., Philadelphia
Men from Mansfield and Curtice indicted for child pornography crimesRead the Press Release
Two Ohio men were indicted on charges related to child pornography crimes.
Terry Gutshall, 41, of Mansfield, was charged with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child pornography.
John R. Garrett, III, 39, of Curtice, was charged with receiving and distributing visual depictions of minors engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
Both cases were investigated by the Federal Bureau of Investigation. The Gutshall case is being prosecuted by Assistant U.S. Attorney Danielle Angeli while the Garrett case is being prosecuted by Assistant U.S. Attorney Tracey Tangeman Ballard.
An indictment is only a charge 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.
Massachusetts Man Arrested for Obstructing Investigation into Mishandling of National Defense InformationRead the Press Release
BOSTON – A Sharon, Mass., man was arrested today and charged with trying to obstruct an investigation involving time-card fraud and the potential mishandling of classified information.
Ahmedelhadi Yassin Serageldin, 65, an Egyptian-born nationalized U.S. citizen, was arrested this morning and charged with one count of misleading conduct with intent to hinder, delay, or prevent communications to a law enforcement officer relating to the commission or possible commission of a federal offense. Serageldin was detained following an initial appearance this afternoon in federal court in Boston. A detention hearing is scheduled for Nov. 21, 2018 at 1:00 p.m.
The indictment alleges that Serageldin was a systems engineer at Raytheon Company in Massachusetts from August 1997 until he was terminated in May 2017. Serageldin had a secret-level security clearance in order to complete his assignments on several defense contracts for the U.S. government involving military radar technology.
According to court documents, in 2017, Raytheon investigated Serageldin for time-card fraud, as he was suspected of taking off every Friday from January to the end of March 2017, yet claiming on his time card that he worked on those dates. By doing so, Serageldin caused Raytheon to overcharge the federal government on the contracts he was assigned to.
The time-card fraud investigation allegedly led Raytheon to uncover evidence that Serageldin had downloaded a substantial number of files from Raytheon’s computer network and had connected removable electronic storage devices to the network in violation of Raytheon’s security policy. During the company’s internal investigation, the indictment alleges that Serageldin engaged in misleading conduct to hinder, delay, or prevent Raytheon employees from communicating with law enforcement about his time-card fraud and his potential mishandling and retention of classified information and national defense information. The indictment alleges that Serageldin did this by:
- Claiming that he was working on company business at home and that he was authorized to do so;
- Misrepresenting why and when he had downloaded files from Raytheon’s network;
- Falsely denying that he possessed an external hard drive or thumb drive and then later, making fraudulent and misleading statements about how he had used an external hard drive (a Western Digital external hard drive);
- Falsely denying that he possessed any Raytheon records or classified documents at his residence;
- Delaying the production of his Western Digital external hard drive and a personal laptop computer to Raytheon investigators, which both contained information pertaining to his work at Raytheon on U.S. military programs;
- Accessing the files on, and changing the content of, his Maxell thumb drive despite having been instructed not to do so; and
- Delaying delivery of his personal laptop computer to Raytheon so he could conduct research on how to wipe his personal laptop clean.
The charge of misleading conduct with intent to hinder, delay, and prevent the communication to a law enforcement officer relating to the commission and possible commission of a federal offense provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, whichever is greatest, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office, made the announcement today. Assistance with the investigation was provided by Defense Criminal Investigative Service, Air Force Office of Special Investigations, and Internal Revenue Service’s Criminal Investigations in Boston. Raytheon Company has cooperated with the investigation, which was launched after they notified federal authorities about the suspicious conduct. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting this case with assistance of Trial Attorney Scott Claffee of the Justice Department’s Counterintelligence and Export Control Section of the National Security Division.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Subject to Victim Protection Order to Serve Two Years in Prison for Unlawful Possession of FirearmRead the Press Release
OKLAHOMA CITY – IVAN MACHADO-SALDIVAR, 34, of Oklahoma City, has been sentenced to 24 months in federal prison for possessing a firearm while subject to a victim protection order, announced Robert J. Troester of the U.S. Attorney’s Office.
According to an affidavit in support of a complaint filed on April 4, 2018, Del City police officers responded to a domestic dispute on March 22, 2018. The victim alleged Machado-Saldivar, her "boyfriend/common law husband," had kicked in her front door and assaulted her with a firearm. According to the affidavit, she later explained he had told her he would hurt both of them if she called the police. Near the victim’s residence, officers arrested Machado-Saldivar in a silver Lexus. A pat-down revealed he was wearing an empty plastic firearm holster on his right hip. An inventory search of the car yielded a 9mm pistol and fifteen rounds of ammunition.
The affidavit explains that officers determined Machado-Saldivar was subject to an Oklahoma County victim protection order entered on January 29, 2018. Although he had no felony convictions, the victim protection order made his possession of a firearm a felony under federal law.
Machado-Saldivar has been in the custody of the U.S. Marshals Service since April. On May 15, 2018, a federal grand jury indicted him for being in unlawful possession of a firearm while subject to a victim protection order. He pleaded guilty on July 2, 2018.
At his sentencing hearing yesterday, United States District Judge Charles Goodwin sentenced Machado-Saldivar to 24 months in prison, the top of the advisory range under the U.S. Sentencing Guidelines. The court also ordered him to serve one year of supervised release after imprisonment.
This sentence is the result of an investigation by the Del City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorney Jessica Cárdenas, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to public filings for further information.
MS-13 Member Sentenced to More Than Seven Years in Prison for Racketeering Related ChargesRead the Press Release
A resident of Hyattsville, Maryland was sentenced to serve 90 months in prison followed by three years of supervised release for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks and Montgomery County State’s Attorney John McCarthy made the announcement.
Jeffrey Rodriguez, aka Jefry Francisco Portillo Corvera, or “Hyper,” 22, had previously pleaded guilty before the Honorable Judge Paula Xinis in the District of Maryland to conspiracy to participate in a racketeering enterprise.
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Rodriguez admitted that from sometime before in or about August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on Aug. 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, Rodriguez admitted that on Aug. 9, 2016, Rodriguez and a MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims. During the struggle, the victims sustained serious bodily injuries including gunshot and stab wounds. In addition, both Rodriguez and his co-conspirator sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.
Eight of Rodriguez’s co-defendants remain charged in the sixth superseding indictment with various racketeering violations, drug trafficking conspiracy, and extortion conspiracy. The trial of the eight remaining defendants is scheduled to commence on March 12, 2019.
An indictment is merely an allegation. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office investigated this case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner of the District of Maryland are prosecuting this case.
MS-13 Member Sentenced to 90 Months in Prison for Racketeeting Related ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jeffrey Rodriguez, aka Jefry Francisco Portillo Corvera, or “Hyper,” 22, a citizen of El Salvador illegally residing in Hyattsville, Maryland, today to 90 months in prison, followed by 3 years of supervised release, for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks, and Montgomery County State’s Attorney John McCarthy.
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
As detailed in his plea agreement, Rodriguez admitted that from about August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on August 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, Rodriguez admitted that on August 9, 2016, Rodriguez and an MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims, who sustained serious injuries, including gunshot and stab wounds. Rodriguez and his co-conspirator also sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski praised HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner, and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
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MS-13 Gang Member Sentenced to 90 Months in Federal Prison for Gang-Related CrimesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jeffrey Rodriguez, a/k/a Jefry Francisco Portillo Corvera, or “Hyper,” age 22, a citizen of El Salvador residing in Hyattsville, Maryland, today to 90 months in prison, followed by 3 years of supervised release, for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13. Rodriguez is expected to be deported following completion of his federal prison sentence.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the City of Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks, and Montgomery County State’s Attorney John McCarthy.
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
As detailed in his plea agreement, Rodriguez admitted that from about August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on August 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, Rodriguez admitted that on August 9, 2016, Rodriguez and an MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims, who sustained serious injuries, including gunshot and stab wounds. Rodriguez and his co-conspirator also sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski praised HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the City of Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner, and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
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Louisiana Doctor Pleads Guilty to Conspiring to Receive Health Care Kickback PaymentsRead the Press Release
A Baton Rouge, Louisiana-based doctor pleaded guilty today for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
Gray Wesley Barrow, M.D., 58, of Baton Rouge, pleaded guilty to an information charging him with one count of conspiracy to pay and receive health care kickbacks. He is scheduled to be sentenced on March 1, 2019 by U.S. District Judge Brian A. Jackson of the Middle District of Louisiana, who accepted his plea today.
Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to admissions made as part of his guilty plea, Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for a percentage of the reimbursements paid to the laboratory by health care benefit programs, including Medicare. As part of his plea, Barrow admitted that from approximately April 2014 through July 2016, he sent specimens collected from his patients to the drug testing laboratory and received approximately $336,000 in disbursements from the laboratory associated with testing for Medicare beneficiaries.
HHS-OIG and FBI investigated the case. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Lincoln County Man Sentenced to Prison for Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Lincoln County man caught with fentanyl, methamphetamine, and a firearm in January 2018 was sentenced yesterday to 78 months in federal prison, announced United States Attorney Mike Stuart. Chad Anthony Wilson, 27, of West Hamlin, previously pled guilty to possession with intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of a drug crime. Stuart commended the investigative efforts of the Hurricane Police Department and the Drug Enforcement Administration.
“Fentanyl. Meth. Firearm. Dangerous and deadly,” said United States Attorney Mike Stuart. “If you are a drug dealer like Wilson, look over your shoulder, our law enforcement partners will find you. And if you are carrying a firearm during your drug crimes, expect significant prison time.”
Wilson admitted that late at night on January 8, 2018, he was sitting in his Chevy Impala, which was parked across all the dividers in the parking lot of American Inn in Hurricane. A Hurricane police officer approached the car, introduced himself, and saw a bag containing a crystal substance consistent with methamphetamine in the center console of the vehicle. When the officer asked if there were any weapons in the car, Wilson told the officer that he had a gun in the passenger seat, though he refused to hand over the weapon. A backup officer arrived shortly after and secured the gun, later identified as a Taurus, Millennium PT111, 9mm pistol.
Once the weapon was secure, officers asked Wilson if there were any more weapons or narcotics in the vehicle. Wilson told the officer about the bag in the center console. During a search of the vehicle, officers recovered that bag of suspected methamphetamine, as well as another bag containing 18.57 grams of a substance that was analyzed by a Drug Enforcement Administration laboratory and confirmed to be fentanyl.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
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Lakeville Man Sentenced to 88 Months in Prison for Precious Metals Investment SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of DAVID THOMAS ROUGIER, 46, to 88 months in prison for one count of wire fraud. ROUGIER, who pleaded guilty on July 18, 2018, was sentenced on November 19, 2018, before Chief Judge John R. Tunheim, in U.S. District Court in Minneapolis, Minnesota.
"The defendant callously preyed on several victims who were at or nearing retirement age – a population that not only lives on a tight budget, but is also trusting of those who claim to help them live out their golden years with security. David Rougier abused that trust and we are satisfied that today's sentence ensures that he will not only pay for his crimes, but will not be able to harm again," said FBI Special Agent in Charge Jill Sanborn. "The men and women of the FBI will continue doggedly go after those who lie, cheat and swindle their way into stealing the hard earned savings of our senior citizens."
According to the defendant’s guilty plea and documents filed in court, between November 2010 and June 2017, more than a dozen individuals paid ROUGIER approximately $835,000 based upon his promises that he was using their money to buy gold and silver and, in some cases, that their investments were protected through guaranteed buyback contracts. ROUGIER promised his victim-investors that precious metals would be a safe investment and that the value would increase every year. Instead of purchasing the gold and silver, ROUGIER spent hundreds of thousands of dollars of victims’ money on shopping trips, entertainment, travel, strip clubs and other personal expenses.
According to the defendant’s guilty plea and documents filed in court, ROUGIER also collected yearly fees for “storage” and “management” from his victim-investors, purportedly to store and manage the gold and silver he claimed to have purchased on their behalf. Additionally, between 2013 and 2014, ROUGIER began telling his victim-investors that he had found a company, which he identified as “TAUG Limited” (“TAUG”) that would guarantee to purchase their gold and silver for a set price on a designated future date, making their investment virtually risk free. ROUGIER presented some of his victim-investors with a purported contract between them and TAUG, under which they were charged between $1,000 and $2,000 in order to avail themselves of this guaranteed future purchase price. These funds were paid directly to ROUGIER, who spent them on personal expenditures.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
Defendant information:
DAVID THOMAS ROUGIER, 46
Lakeville, Minn.
Convicted:
- Wire Fraud, 1 count
Sentenced:
- 88 months in prison
- 3 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Justice Department Files Statement of Interest in First Amendment CaseRead the Press Release
The Justice Department today filed a Statement of Interest in U.S. District Court in South Carolina supporting a church’s claim that the Town of Edisto Beach violated its rights under the First Amendment when the town barred it from renting space at the Town’s Civic Center.
"The Constitution protects the right of individuals and groups to exercise their religion without discrimination because of their religion,” said Acting Attorney General Matthew Whitaker. “The First Amendment requires that religious individuals and groups have the same opportunity to rent public facilities as other members of the community. The Department of Justice is committed to protecting the First Amendment rights of Americans, including fostering the religious expression of members of all faiths.”
The case, Redeemer Fellowship of Edisto Island v. Town of Edisto Beach, involves a small Christian congregation that sought to rent space for Sunday worship in the Civic Center, which is available for rental by community groups to hold events and activities. The town responded by enacting a policy barring worship services at the Civic Center, citing separation of church and state concerns. The town claimed that it wanted to avoid appearing as though they endorsed a religious group. As a result, the church filed a First Amendment lawsuit to allow it to rent space at the facility.
The Constitution requires that churches be allowed to rent facilities on an equal basis with other community groups. The Supreme Court held in the landmark case of Widmar v. Vincent (1981), that a university could not “discriminate against student groups and speakers based on their desire to use a generally open forum to engage in religious worship and discussion.” The United States’ Statement of Interest argues that allowing equal access to all groups, including the church, is required by the First Amendment. Allowing equal access, the United States argues, ensures the government neutrality toward religious expression that the Constitution requires.
Johnson County Man Sentenced, Banned from BankingRead the Press Release
KANSAS CITY, KAN. – A former banker who lives in Johnson County was sentenced today to 3 years probation and banned from working as a banker, U.S. Attorney Stephen McAllister said.
Michael W. Yancey, 59, Olathe, Kan., pleaded guilty to one count of conspiracy to make false statements on a loan application. In his plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., in Overland Park. Farmers Bank is headquartered in Great Bend, Kan.
Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kan. He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.
McAllister commended SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor - Office of the Inspector General, the U.S. Department of Labor - Employee Benefits Security Administration and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Jefferson County man indicted for bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Byers, Jr., of Charles Town, West Virginia, was indicted today by a federal grand jury for bank robbery, United States Attorney Bill Powell announced.
Byers, age 48, is charged with one count of “Bank Robbery.” Byers is accused of robbing the Bank of Charles Town in Charles Town, West Virginia, on May 19, 2018. Byers allegedly got away with $7,048.
Byers faces up to 20 years incarceration and a fine of up to $250,000. 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.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jamestown Woman Pleads Guilty for Her Role in Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Searcy E. Fields pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and to distribute, five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorneys Patricia Astorga and Emmanuel Ulubiyo, who are handling the case, stated that the defendant pleaded guilty for her role in a Jamestown methamphetamine conspiracy. On May 22, 2018, Fields sold 15 grams of methamphetamine to an individual working with law enforcement. In a recorded conversation, the individual asked the defendant for half an ounce of methamphetamine. Fields responded that she had “a little H” (heroin) but did not have “that much ice.” The defendant then called and got the methamphetamine from co-defendant Destiny Hare and Andrew Bennett.
Fields was indicted along with 14 other defendants including: Destiny Hare; Zackiel Fields, Jr.; Ernest Cauley, Jr., a/k/a L.A., a/k/a Ernie; Jamell Trapp, a/k/a K.S.; Ramael Fields; Stephanie L. Harrison; Marcus Martin Bowman; Danny W. Michael, Ill; Alexis V. Hall; Destiny J. Hare; Andrew C. Bennett; Jacob A. Motherwell; Michael A. Davis; and Stacie N. Yancer. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. Fields is the first defendant to be convicted.
During the execution of search warrants throughout the investigation, law enforcement officers recovered 10 firearms and multiple rounds of ammunition, over 20 cellular telephones, drug paraphernalia, and U.S. currency.
In a related case, a detention hearing was held this morning for Bobby Hunt, Jr. and Amy Dean. Although not charged in the drug case, Hunt and Dean were charged with conspiracy to retaliate against witnesses, witness retaliation, and taking action harmful to a witness, after they threatened someone they believed to be a cooperating with the government in its case against the Jamestown methamphetamine conspiracy. U.S. Magistrate Judge H. Kenneth Schroeder ordered the defendants detained.
In seeking to have Hunt and Dean detained, the Government presented a series of threatening social media posts and voicemail messages, and information regarding the assault of a woman the defendants believed to be cooperating with law enforcement in the investigation. As a result of that assault, the woman suffered a miscarriage.
Today’s plea and the charges against Hunt and Dean are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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Jacksonville Man Sentenced to More Than Eight Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Craig Harry Lipinski (50, Jacksonville) to eight years and one month in federal prison for knowingly receiving images and videos depicting the sexual abuse of children from the internet. Lipinski was also sentenced to serve a seven-year term of supervised release and ordered to register as a sex offender.
Lipinski had pleaded guilty on June 5, 2018.
According to court documents and testimony, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted an undercover child exploitation investigation and determined that a host computer connected to Lipinski’s residence was using a file-sharing program to share videos of child pornography over the internet. On January 30, 2018, law enforcement executed a federal search warrant at Lipinski’s Jacksonville residence and made contact with him. At that time, agents observed that a computer at the residence was actively downloading files using the same program. Some of the files contained the terms “teen” and “young” in their titles.
During an interview with law enforcement, Lipinski stated that he had downloaded movies from the file-sharing program, and that he “probably downloaded some miscellaneous, some inappropriate stuff.” A forensic examination of Lipinski’s computer media revealed that it contained at least 206 videos and 8,755 images depicting children being sexually abused. At sentencing, Lipinski admitted that he viewed child pornography because of “sexual curiosity” and for his own “sexual gratification.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts San Diego Executive and Broker of $50 Million Real Estate FraudRead the Press Release
NEWS RELEASE SUMMARY – November 20, 2018
SAN DIEGO – Following a two-week trial, a jury returned guilty verdicts on all counts against finance executive Peter Cash Doye and notary public and real estate broker Raquel Reid for their roles in a massive real estate fraud scheme that generated nearly $50 million in fraudulently-obtained loan proceeds.
The evidence presented at trial demonstrated that Doye and Reid defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off so they could obtain additional loans from new lenders who believed the mansions were owned “free and clear.”
Doye, a senior executive at the real estate investment firms Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans. To pull of the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, complicating the chain of title for these homes. Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic.
Doye’s business partner Courtland Gettel and Arizona attorney Jeffrey Greenberg previously pleaded guilty to participating in the scheme, and are serving sentences of 135 and 81 months, respectively. Gettel and Greenberg were also ordered to pay more than $43 million in restitution to victims, and to forfeit the proceeds of the crime. Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.
During trial, the government proved that Gettel, Greenberg, and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off. Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off and helping to close the fraudulent deals.
In late 2014, the lenders began to uncover the fraud and learn that their secured interests in the properties were worthless. In response to questions from these lenders, Doye, Reid and Gettel denied knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that her book had been lost.
“These defendants attempted to use their significant real estate experience to pull off an egregious fraud that created serious consequences for lenders and title owners,” said U.S. Attorney Adam Braverman. “As this case demonstrates, federal prosecutors are fully committed to protecting the integrity of our lending system by holding such criminals accountable.”
“The FBI will pursue each criminal participant in these sophisticated, multi-million dollar fraud schemes until final justice is served.” said FBI Special Agent in Charge John Brown. “Today, Peter Doye and Raquel Reid join co-conspirators Courtland Gettel and Jeffrey Greenberg as convicted felons for their roles in this massive loan fraud scheme.”
United States District Judge William Q. Hayes remanded both Doye and Reid into custody following the guilty verdicts, and set their sentencing hearings for March 4, 2019, at 9:00 am.
This case is being prosecuted by Assistant United States Attorneys Emily Allen and Andrew Young.
DEFENDANTS
Peter Cash Doye Age: 41 San Diego, CA
Raquel Reid Age: 38 San Diego, CA
CHARGES
Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.
Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED
Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH Age: 67 Tucson, AZ
Courtland Gettel, 16CR1099-WQH Age: 43 Coronado, CA
AGENCY
Federal Bureau of Investigation
Intercept Corp., Payment Processor for Illegal Payday Loans is Ordered to Forfeit Nearly $6 MillionRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Intercept Corporation, d/b/a “Intercept EFT” (“Intercept”), was placed on two years’ probation and ordered to forfeit $5,928,893 in criminal proceeds after pleading guilty to one count of operating an illegal money transmitting business. Intercept was also fined an additional $500,000 to be paid to the Court. The conviction stems from Intercept’s processing of illegal short-term, high-interest consumer loans commonly known as “payday loans.”
Intercept is a North Dakota-based company that processes electronic funds transfers for its clients through the Automated Clearing House (“ACH”) system. The ACH system is an electronic payments network that processes financial transactions without using paper checks.
During Intercept’s guilty plea hearing, Intercept’s president, Bryan Smith, admitted that from May 2008 through August 2013, Intercept knowingly helped certain clients collect unlawful payday loans. Smith later testified at the racketeering and fraud trials of former client Charles M. Hallinan and Hallinan’s attorney, Wheeler K. Neff. Smith told the jury that Intercept helped Hallinan’s payday lending companies collect more than $490 million from borrowers living across the United States. The jury eventually convicted Hallinan and Neff of all charges.
United States District Judge Eduardo C. Robreno sentenced Hallinan to 14 years’ imprisonment and Neff to 8 years’ imprisonment. Another former Intercept client, Scott Tucker, was convicted of similar crimes in New York and sentenced to 200 months’ imprisonment.
Intercept’s role within the illegal payday lending networks was essential. Without Intercept’s use of the ACH system, the payday lenders would not have been able to collect nearly as much money from their usurious loans. Most of the loans involved in the scheme had annual interest rates exceeding 780 percent.
“Charles Hallinan, the so-called ‘Godfather of Payday Lending,’ made millions by preying on vulnerable victims, and Hallinan’s financial success was due, in large part, to Intercept’s willing participation in the scheme,” said U.S. Attorney McSwain. “The substantial forfeiture order the Court entered today sends a powerful message to companies who profit from doing business with criminals like Hallinan and Neff: my Office will use every law enforcement tool we have to hold you accountable under federal law.”
“Today's sentencing is a direct result of the excellent partnership we have with our law enforcement partners and the U.S. Attorney’s office,” said IRS-Criminal Investigation Special Agent in Charge Guy Ficco. “We will continue to be relentless in our mission to dismantle these types of illicit schemes and bring the criminals who run them to justice.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Inmate Pleads Guilty to Escaping from Federal Camp at AldersonRead the Press Release
CHARLESTON, W.Va. -- Cheryl McGrath, 51, pled guilty to escaping from the Federal Prison Camp at Alderson, announced United States Attorney Mike Stuart. Stuart commended the investigation by the Federal Bureau of Prisons, the United States Marshals Service and the West Virginia State Police.
“As the saying goes, if you do the crime, you have got to do the time,” said United States Attorney Mike Stuart. “Escaping will only land you back in prison with an even longer sentence.”
McGrath admitted that on July 26, 2018, she was an inmate at that prison, when she left without authorization. She was captured the next day, several miles from the prison.
McGrath faces up to five years in prison when she is sentenced on March 6, 2019. Assistant United States Attorney John File is handling the prosecution. United States District Court Judge Irene Berger presided over the hearing.
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Indictment Unsealed Charging Las Vegas Man in Connection with Direct Mail Fraud SchemeRead the Press Release
SALT LAKE CITY – A federal indictment unsealed Friday charges Daron Howell Fordham, age 49, of Las Vegas with six counts of mail fraud in connection with what the indictment alleges was a direct mail fraud scheme that defrauded hundreds of investors across the country, including many elderly and disabled individuals.
According to the indictment, Fordham, aka Southboy, Daron Destiny, Paul Park, James Parker, Daron Howell and Darren Fordham, set up a mailbox at a UPS Store in Park City using the name Park Publishers and Distributors. He paid a printing service in California to send out hundreds of mailers soliciting people to invest in his direct mail program which had several variations. The mailers offered an opportunity to make money through a “direct partner program” called “Paul Park’s Profit Program,” listing a Park City address as the company address for responses.
The indictment alleges Fordham’s mailer induced individual investors to send money to the address with fraudulent claims and guarantees, including telling individuals they could make a 976 percent return (or more) in less than 90 days without doing any work. “All you have to do is invest in the printing and mailing of our hot-selling FREE CRUISE FOR TWO VOUCHERS (like the one included with this letter) that are used by businesses all across the country. WE DO ALL THE WORK! You decide how many Mailing Spots you want now and you’ll receive your Principal Check sand PROFIT Check in less than 90 days. Trust me. You’ll be upset if you miss this one.”
He told investors, the indictment alleges, they could invest $500 and get a “whopping gross return of $5,570 with $5,070 of it being PURE PROFIT FOR You.”
The indictment further alleges that between January and November 2014, Fordham negotiated or caused to be negotiated at least $1,596,642.14 in checks and money orders related to eight fraudulent promotional schemes, including at least $203,866.25 through the Park Publishers fraudulent promotional mailer scheme.
When investors requested refunds or on the date of the promised dividend payment, Fordham provided customers a previously unmentioned gift card voucher equal to the investment, which could only be used toward an additional business venture by Park Publishers or its affiliate partners. He also provided a full credit refund certificate, which investors could not redeem for any monetary value, good or service. Eventually, Fordham closed the Park City mailbox so that victims’ letters requesting a refund or inquiring about their promised return on their investment were returned as undeliverable. An 800-number was also disconnected, leaving victims unable to contact Fordham, the indictment alleges.
Fordham is charged with six counts of mail fraud in the indictment. He was arrested in Las Vegas where he had an initial appearance on the charges and was released on conditions. Fordham was arraigned on the charges Tuesday morning in federal court in Salt Lake City. Chief Magistrate Judge Paul M. Warner presided at the hearing. He entered a plea of not guilty to the six counts in the indictment. Trial was set for Jan. 28, 2019.
Federal prosecutors are seeking detention in the case and are asking U.S. District Judge Dee Benson to review the Nevada magistrate’s decision to release Fordham. Judge Benson will hear the appeal Tuesday at 2 p.m.
Each count of mail fraud carries a potential 20-year sentence.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Illegal alien indicted on reentry chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Naun Romero, of Honduras, was indicted today by a federal grand jury on a reentry charge, United States Attorney Bill Powell announced.
Romero, also known as Santos Coello, age 33, is charged with one count of “Reentry of a Removed Alien.” Romero, having previously been removed from the United States, is accused of being in Randolph County illegally in October 2018.
Romero faces up to two years incarceration and a fine of up to $250,000. 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.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the cases on behalf of the government. The Department of Homeland Security Immigration and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Smuggler Sentenced to Ten Years in Federal PrisonRead the Press Release
In Del Rio yesterday afternoon, U.S. District Judge Alia Moses sentenced 43–year–old citizen of Mexico Hector Aguilar-Portugal to ten years imprisonment for his role in an illegal alien smuggling operation that resulted in death, announced U.S. Attorney John F. Bash; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, U.S. Border Patrol Agent in Charge Felix Chavez, Del Rio Sector.
On August 10, 2017, Aguilar pleaded guilty to one count of conspiracy to transport illegal aliens. According to court records, in October 2014, Aguilar led three other illegal aliens into the U.S. north of Eagle Pass, Texas. Among the group was a former inmate Aguilar-Portugal had met while in prison in Pecos, TX, in 2012, as well as the man’s nephew. During their journey, the four were intercepted by U.S. Border Patrol agents. As they fled from the agents, the defendant and the others crossed a canal. During the crossing, the nephew drowned. Following the drowning, the uncle separated from the defendant and the other illegal alien. The uncle eventually made it to a highway where he surrendered to Border Patrol agents and told them of the drowning. Agents were able to recover the body of the deceased. Agents were also able to arrest the defendant and the other illegal alien. While at the Eagle Pass South Border Patrol station, the uncle saw Aguilar-Portugal being escorted into the processing area. The uncle identified Aguilar-Portugal as the individual he paid a $500 smuggling fee up front and an agreed $3,000 upon arrival in the U.S.
On December 15, 2015, the uncle was sentenced to 21 months in federal prison for illegal re-entry into the U.S. The other illegal alien pleaded guilty to illegal entry into the U.S., was sentenced to time served and deported back to Mexico.
HSI conducted this investigation. Assistant U.S. Attorney Todd Keagle prosecuted this case on behalf of the Government.
Hudson County Man Charged with Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was arrested and appeared in federal court today for allegedly distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Nader Ahmed, 29, is charged by complaint with one count of distribution of child pornography. He made his initial appearance today in Newark federal court before U.S. Magistrate Judge Cathy L. Waldor and was detained without bail.
According to documents filed in this case and statements made in court:
In January 2018, Ahmed uploaded two videos depicting the sexual abuse of children onto a child pornography website. Computer equipment seized from Ahmed’s residence revealed hundreds of files titled with names indicative of images of child sexual abuse.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office Public Protection Unit in Newark.
Henderson Woman Pleads Guilty to Distribution of Fentanyl Resulting in the Death of A PersonRead the Press Release
LAS VEGAS, Nev. – A Henderson woman pleaded guilty today to distributing fentanyl that resulted in the overdose death of a person in 2017, announced U.S. Attorney Dayle Elieson for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the DEA.
Tianna Christina Cordova, 35, pleaded guilty to one count of distribution of a controlled substance. She was charged by a superseding indictment in August, along with co-defendant Robert James Thornburg.
On June 21, 2018, law enforcement executed a search warrant at Cordova and Thornburg’s residence in Henderson. Law enforcement found varied amounts of oxycodone, hydrocodone, alprazolam, four firearms, and cash. She and Thornburg, neither of whom are doctors, conspired with each other to distribute oxycodone and amphetamine (Adderall) to individuals. Often Cordova would sell narcotics to individuals who contacted her via the internet, where she would post ads for sale using coded language for the availability of certain drugs. Cordova admitted that, on March 14, 2017, she unlawfully distributed a controlled substance in the form of prescription pills that contained fentanyl to an individual. That person ingested the pills which resulted in her death from multiple drug intoxication, namely from an overdose of fentanyl, acetyl fentanyl, and citalopram.
United States District Judge Richard F. Boulware II accepted the guilty plea and set a sentencing hearing for February 21, 2019. The maximum penalty is 20 years and a $1,000,000 fine.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine and 50 times stronger than heroin. Street names include “China Girl,” “King Ivory,” and “Murder 8.” Fentanyl is added to heroin to increase its potency, or be disguised as highly potent heroin. Many users believe that they are purchasing heroin and actually don’t know that they are purchasing fentanyl – which often results in overdose deaths.
The case was investigated by the DEA, with assistance from the Clark County Coroner’s Office. Assistant U.S. Attorney Brandon C. Jaroch is prosecuting the case.
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Hattiesburg Man Sentenced to 22 Years in Prison for Drug PossessionRead the Press Release
Hattiesburg, Miss – Brandon Easterling, 35, of Hattiesburg, Mississippi, was sentenced by U.S. District Judge Keith Starrett, to serve 264 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA). Easterling was also ordered to pay a $5,000 fine.
On June 24, 2014, DEA agents utilized an undercover agent to purchase 28.02 grams of methamphetamine from Easterling for $1,800. Easterling pled guilty to possession with intent to distribute methamphetamine on August 9, 2018.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.
Guilty Plea for Carbondale Man Who Threatened to Blow up a U.S. Military Recruiting CenterRead the Press Release
George Rita II, 42, of Carbondale, Illinois, pleaded guilty today to making a false threat to blow up a military recruiting center in Carbondale. Rita had been named in a one-count indictment returned on July 11, 2018, charging him with intentionally conveying false information about a bomb threat, which is a federal offense. According to the indictment, on June 28, 2018, Rita sent a threatening anonymous message to an FBI tip line in Clarksburg, West Virginia, claiming that he was heading to a recruitment center to blow it up and that no one could stop him.
Although no location was originally given for the threatened recruitment center, the FBI was able to determine that the message had come from Southern Illinois and ultimately tracked the source of the message to an IP address assigned to Rita’s apartment, which is in close proximity to the U.S. Army Recruiting Office in Carbondale. During his plea hearing, the defendant admitted sending the threatening message and confirmed the information discovered during the FBI’s rapid response and investigation.
Sentencing is scheduled for December 27, 2018. Rita, who is currently being held without bond, faces up to five years imprisonment, three years of supervised release, and a maximum fine of $250,000.
Information leading to the charges against Rita was obtained in an investigation conducted by the Federal Bureau of Investigation, with assistance from the Carbondale, Illinois Police Department and the United States Marshals Service.
Grand Jury Indicts Hawthorne Man on 14 Federal Charges for Allegedly Collecting Life Insurance after Killing His Two ChildrenRead the Press Release
LOS ANGELES – A federal grand jury today named a Hawthorne man in a 14-count indictment that alleges he intentionally drove his family into the water at the Port of Los Angeles in a scheme to collect proceeds of life insurance policies he had purchased on their lives.
Ali F. Elmezayen, 44, was charged with four counts of mail fraud, four counts of wire fraud, one count of aggravated identity theft and five counts of money laundering. Elmezayen remains in federal custody after being arrested on November 7 by the FBI.
The indictment alleges that Elmezayen purchased several life and accidental death insurance policies providing coverage on himself, his domestic partner and their three children in 2012 and 2013. Elmezayen then drove a car with his partner and two youngest children off a wharf at the Port of Los Angeles on April 9, 2015. Elmezayen swam out the open driver’s side window of the car. Elmezayen’s partner, who did not know how to swim, escaped the vehicle and survived when a nearby fisherman threw her a flotation device. The two children, who were 8 and 13, drowned in the car.
Elmezayen then collected more than $260,000 in insurance proceeds from Mutual of Omaha Life Insurance and American General Life Insurance on the accidental death insurance policies he had taken out on the children’s lives, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Elmezayen is scheduled to be arraigned on the indictment on November 29 in United States District Court.
If he were to be convicted of all the charges contained in the indictment, Elmezayen would face a statutory maximum sentence of 212 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The federal investigators received substantial assistance from the Los Angeles Police Department, the Los Angeles Port Police and the Los Angeles City Attorney’s Office.
The case is being prosecuted by Assistant United States Attorneys Alex Wyman and David Ryan.
Georgia Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Georgia man pled guilty yesterday to a federal drug charge, announced United States Attorney Mike Stuart. Jahrius Whitehead, 26, entered a guilty plea to an indictment charging him with possession with the intent to distribute cocaine and marijuana.
“Every traffic stop is a potentially dangerous situation for law enforcement,” said United States Attorney Mike Stuart. “Whitehead certainly presented a dangerous situation for everyone around him, but our law enforcement partners continue to make every effort to keep our highways safe and stop the deadly flow of drugs into West Virginia.”
Whitehead admitted that on September 5, 2018, he was pulled over on I-64 for speeding. Whitehead fled the traffic stop. Officers pursued him on I-64. Whitehead wrecked his vehicle and ran from his vehicle on foot. Officers found him a short distance from the interstate. After he gave officers consent to search his vehicle, officers located approximately 151 grams of cocaine and approximately 392 grams of marijuana. He admitted to officers that he had traveled to Huntington to sell the cocaine and marijuana.
Whitehead faces up to twenty years in federal prison when he is sentenced on February 25, 2019.
The Kenova Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Fugitive in Stock Manipulation Conspiracy Charged with Bail JumpingRead the Press Release
BOSTON – A convicted fraudster who was apprehended last week after repeatedly failing to appear for his sentencing hearing was indicted today for bail jumping.
David J. Aubel, 60, of Matthews, N.C., was indicted today on one count of failure to appear.
In November 2017, Aubel pleaded guilty to one count of conspiracy to commit securities and wire fraud, one count of securities fraud, and three counts of wire fraud in connection with his role in a stock manipulation scheme. Aubel had been released by the Court pending sentencing.
According to court documents, in September and October 2018, Aubel repeatedly failed to appear for scheduled, and repeatedly re-scheduled, sentencing hearings. Each time, Aubel informed the Court by phone or through counsel that his father was in poor health and that he was at his bedside. U.S. District Court Chief Judge Patti B. Saris rescheduled Aubel’s sentencing hearing for Oct. 18, 2018; however, Aubel once again failed to appear at that hearing – informing the Court through counsel that he had been hospitalized the night before. Aubel’s sentencing was then rescheduled for Nov. 5, 2018. Again, Aubel failed to appear for his sentencing on that day. Subsequently, the Court issued a warrant for his arrest and on Nov. 16, 2018, Aubel was arrested as he exited a hotel in Charlotte, NC.
The charge of failure to appear provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; John Gibbons, U.S. Marshal for the District of Massachusetts; Gregory Allyn Forest, U.S. Marshal of the Western District of North Carolina; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Edward Man Sentenced to 292 Months for Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – James Mattison, age 47, of Fort Edward, New York, was sentenced today to 292 months in prison for sexually exploiting a child.
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.
As part of his guilty plea, Mattison admitted that in October 2016, he exchanged more than 7,100 text messages with a 13-year-old boy whom he had met online using the Live.me phone application. Mattison claimed to be a teenage girl named Megan Mattison, and coerced the victim into taking and sending sexually explicit photographs of himself by threatening to commit suicide if the victim refused.
Senior United States District Judge Gary L. Sharpe also imposed a life term of supervised release, to begin after Mattison is released from prison. Mattison will also have to register as a sex offender when he is released from prison.
This case was investigated by the FBI, with assistance from the New York State Police and Washington County Probation Department, and was prosecuted by Assistant U.S. Attorney Alicia G. Suarez.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former Tribal Official Convicted of 15 Counts of Sexual Abuse Crimes Involving Children, Fear & ForceRead the Press Release
United States Attorney Ron Parsons announced that Quentin P. Bruguier, Jr., a/k/a “JB,” of Lake Andes, South Dakota, was convicted by a federal jury of fifteen counts of sexual abuse offenses involving children, fear, and force. The jury returned the verdict on November 16, 2018.
According to the evidence presented at trial, between 1992 and 2016, Bruguier, who was a former Yankton Sioux Tribal Official, engaged in sexual acts with children. Bruguier used fear, force, or both when perpetrating the sexual assaults.
For the most serious offenses, the maximum penalty upon conviction is up to life imprisonment, a $250,000 fine, or both, 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. For five of the counts of conviction, Bruguier faces a mandatory minimum of 30 years of imprisonment for each count. Restitution may also be ordered.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Bruguier, age 55, is currently detained pending sentencing. A sentencing date has been set for February 11, 2019.
Former Memphis Police Officer Sentenced to 10 Years in Federal PrisonRead the Press Release
Memphis, TN – Former Memphis Police Officer, Kevin Coleman, 41, has been sentenced to 10 years imprisonment for narcotics and extortion offenses committed while on duty. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in early 2018, FBI and MPD-OCU initiated a joint investigation into possible criminal activity by Coleman. As part of an undercover operation, on March 7, 2018, Coleman was provided with identifying information on a vehicle operated by an undercover officer (UC), who Coleman believed to be a drug dealer. Coleman, while on duty, conducted a targeted traffic stop. During the traffic stop, Coleman placed the UC in handcuffs and directed him/her to the back seat of his MPD patrol vehicle. Coleman then searched the vehicle operated by the UC and removed $5000 in undercover funds from the vehicle.
On March 15, 2018, Coleman was given identifying information on a vehicle operated by another undercover officer, who Coleman believed to be a drug dealer. Coleman, again while on duty, conducted a targeted traffic stop. During the traffic stop, Coleman searched the vehicle and removed $8,000 in undercover funds, which had been placed in the center console prior to the traffic stop.
U.S. Attorney D. Michael Dunavant said, "Official misconduct and corruption by law enforcement officers strikes at the very heart of the criminal justice system, and damages the trust and confidence of citizens in proper police authority. When police officers use their badges to become drug dealers and highway robbers, it is our duty to expose their corruption, hold them accountable, and protect society from their dishonesty. This sentence will hopefully deter other corrupt police behavior, restore the public’s faith in honest officers, and send a message that nobody is above the law."
In April of 2018, Coleman agreed, together with MPD officer Terrion Bryson, 26, to escort approximately 2.5 kilograms of heroin to a storage facility in Memphis. Coleman was on duty, in his squad car at the time of the escort. Bryson, armed with a handgun, accompanied the driver, an undercover MPD officer, in the car with the heroin. Both Coleman and Bryson were arrested shortly thereafter.
"Former officer Coleman swore to be a public servant and abide by the law. He has pled to some very despicable charges. His actions are contrary to the dedication and sacrifice of the men and women of who loyally serve the citizens of this city. As Director, I will take swift action to remove anyone who fails to adhere to and uphold the high standards set forth in our law enforcement code of ethics," said Michael T. Rallings, Director, Memphis Police Department.
This sentencing sends a message that no one is above the law, especially those who have sworn an oath to uphold the law," said Jeremy N. Baker, Acting Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "Public corruption investigations such as this continue to be a priority for the FBI due to the immeasurable harm corruption causes in our communities and to the reputations of all law enforcement officers, the majority of which are honest, hardworking men and women who serve with honor and integrity."
On November 19, 2018, U.S. District Court Judge John T. Fowlkes Jr., sentenced Coleman to 120 months imprisonment followed by 5 years of supervised release. Bryson has entered a guilty plea and is currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation and Memphis Police Department.
Assistant U.S. Attorney David Pritchard prosecuted this case on the government’s behalf.
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Former Green Bay Resident Pleads Guilty to Wire Fraud, Filing False Tax Returns and Aggravated Identity TheftRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Alma Ramirez (age: 40) formerly of Green Bay, Wisconsin, appeared in federal court in Green Bay and pleaded guilty to wire fraud, assisting in the filing false tax returns seeking fraudulent tax refunds, and aggravated identity theft.
As part of her plea, Ms. Ramirez, acknowledged that, during the period from March 2013 through May 2016, she and others working with her and at her direction, prepared and electronically filed with the IRS more than 60 false federal income tax returns that fraudulently sought the refund of more than $300,000 in federal income taxes.
In addition, Ms. Ramirez acknowledged that, as part of her scheme, she stole the identity of third parties and used those identities fraudulently by falsely claiming the stolen identities as dependents on tax returns.
Ms. Ramirez faces a minimum, mandatory sentence of two years in prison on the aggravated identity theft, and up to 20 years in prison on the wire fraud charge. She has also agreed to pay restitution to the IRS in the amount of $301,000. She is scheduled to be sentenced on February 19, 2019.
This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Florence Man Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Chadrick Letran James, 29, of Florence, South Carolina, pled guilty in federal court to possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
Evidence presented to the court showed that on September 1, 2017, a corporal with the Florence Police Department conducted a traffic stop of the vehicle James was driving. The corporal could smell an odor of marijuana coming from both James and the vehicle. James admitted to smoking marijuana and having marijuana in the vehicle’s cup holder. A search of the vehicle also revealed a plastic bag in the driver’s side door believed to be used to package narcotics and a book bag that contained several bags of marijuana, a bottle of crack cocaine, a bag of cocaine, a set of digital scales, and a Smith and Wesson, model SW40VE, .40 caliber pistol loaded with 14 rounds of .40 caliber ammunition.
James faces a maximum penalty of life in federal prison. United States District Judge R. Bryan Harwell accepted the guilty plea and will sentence James after receiving and reviewing a presentence report prepared by the United States Probation Office.
The charges against James were the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Florence Police Department. This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part 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 Lauren Hummel of the Florence office is prosecuting the case.
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Five Drug-Traffickers Sentenced for Roles in Multi-Year ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that five individuals were sentenced by United States District Judge William K. Sessions for their roles in a multi-year conspiracy to distribute heroin, cocaine base, and cocaine. On November 19, 2018, Robbull Bryant was sentenced to a 90-month term of imprisonment, Elijah Ealey was sentenced to a 33-month term of imprisonment, and Jason Bunch was sentenced to an 18-month term of imprisonment. Earlier this year, Earl Brown was sentenced to a 48-month term of imprisonment and Alfred Spellman was sentenced to a 25-month term of imprisonment.
According to court filings, from late 2014 through August 26, 2016, the defendants conspired together to distribute large quantities of heroin, cocaine base, and cocaine in Brattleboro, Vermont and surrounding areas. With the assistance of confidential informants, law enforcement conducted 11 separate controlled purchases of heroin, cocaine base, and cocaine from the members of the conspiracy. On August 26, 2016, an argument over a drug debt led to a shootout between Bryant and another individual in which Bryant fired multiple rounds from a Ruger .40 caliber semiautomatic handgun in a residential neighborhood in Putney, Vermont.
Bryant was additionally convicted of being a felon in possession of a firearm. For his crimes he faced a 5-year mandatory minimum sentence and a statutory maximum term of 40 years in prison. The remaining defendants faced a statutory maximum term of 20 years in prison. In imposing the sentences, Judge Sessions considered a number of factors, including the severity of the offense, the harm controlled substances have caused to Vermont communities, and the defendants’ criminal records.
United States Attorney Christina E. Nolan commended the efforts of the Federal Bureau of Investigation, Department of Homeland Security, Bureau of Alcohol Tobacco and Firearms, and the Vermont State Police for their work on this investigation.
The prosecution was handled by U.S. Attorney Nolan, and Assistant U.S. Attorneys Nate Burris, and Paul Van de Graff. Bryant was represented by Attorney Michelle Barth, Ealey was represented by Attorney Richard Bothfeld, Bunch was represented by Attorney Robert Sussman, Brown was represented by Attorney Chandler Matson, and Spellman was represented by Attorney Craig Nolan.
Federal Prison Sentences Handed Down for “Crack” Cocaine and Methamphetamine Trafficking Operation in and Around Taylor, TXRead the Press Release
In Austin today, a federal judge sentenced 17 individuals, including ringleader Horace Lee Caruther, for their alleged roles in a narcotics distribution ring operating in and around the Taylor, TX, area announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
U.S. District Judge Lee Yeakel sentenced:
- Horace Lee Caruther, age 43 of Round Rock, TX, to 210 months in federal prison;
- William Collins (aka “Bugs”), age 62 of Taylor, TX, to 87 months in federal prison;
- Trevor Deshaun Hunt, age 26 of Taylor, to 57 months in federal prison;
- Gregory Bean, Jr., age 45 of Pflugerville, TX, to 15 months in federal prison;
- Robert Carl White, age 39 of Temple, TX, to 77 months in federal prison;
- Angel Amado Rodriguez, age 24 of Austin, to 188 months in federal prison;
- Kenneth Xavier Garza, age 23 of Austin, to 60 months in federal prison;
- Esmerelda Rodriguez, age 23 of Austin, to three years probation;
- Salomon Orozco-Benitez (aka “Viejito”), age 34 of Austin, to 168 months in federal prison;
- Elias Montiel, age 27 of Sanford, NC, to 46 months in federal prison;
- Federico Alvarez-Mendoza, age 37 of Cameron, NC, to 30 months in federal prison;
- David Ibarra, age 26 of Broadway, NC, to 30 months in federal prison;
- Miguel Benitez-Benitez (aka “Daniel Sanchez Benitez”), age 39 of Pflugerville, to 262 months in federal prison;
- Sandra Parra-Velez (aka “La Coyota”), age 34 of Austin, to 70 months in federal prison;
- Jose Parra-Martinez (aka “Vitaminas”), age 36 of Austin, to 60 months in federal prison;
- Maria Loreto Bustamonte, age 53 of Laredo, TX, to time served (approx. 14 months incarceration); and,
- Ana Patricia Gonzalez, age 48 of Laredo, to three years probation.
Previously, Garza and Parra-Martinez pleaded guilty to possession of a firearm during a drug trafficking crime and Esmerelda Rodriguez pleaded guilty to one count of misprision of felony. The remaining defendants mentioned above pleaded guilty to either conspiracy to distribute five kilograms or more of cocaine or possession with intent to distribute cocaine.
Co-defendant James Wilbert McNeil, age 71 of Round Rock, was sentenced on August 27, 2018, to time served (approx. 9 months incarceration) after pleading guilty to one count of misprision of felony. Also, co-defendant Jesus Parra-Martinez (aka “Chuy”), age 24 of Austin, was sentenced on October 26, 2018, to 87 months in federal prison after pleading guilty to one count of conspiracy to distribute five kilograms or more of cocaine.
According to court records, from July 2016 to October 2017, members of this organization were responsible for the distribution of large amounts of cocaine, methamphetamine and diverted pharmaceutical narcotics. The narcotics would be transported from Laredo to Central Texas and ultimately to areas across the U.S., including North Carolina, for further distribution. Defendants would also collect, transport and launder cash proceeds derived from the sale of narcotics. To date, this investigation has resulted in the arrests and conviction of 20 defendants; and, the seizure of $161,020 in U.S. Currency, six kilograms of cocaine, two ounces of “crack” cocaine, 42 pounds of marijuana and, three guns.
The DEA Austin High Intensity Drug Trafficking Area (HIDTA) Task Force investigated this case. The Austin Police Department, Cedar Park Police Department, Georgetown Police Department, Lakeway Police Department, Texas Department of Public Safety, Williamson County Sheriff’s Office, Travis County Sheriff’s Office, Hays County Sheriff’s Office, Bastrop County Sheriff’s Office, FBI, Homeland Security Investigations (HSI), and U.S. Immigration and Customs Enforcement (ICE) are participating agencies in the HIDTA Task Force.
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Eureka Man Sentenced to 12½ Years in Prison for Possessing Child PornographyRead the Press Release
SAN FRANCISCO – Richard Rood was sentenced today to 150 months in prison for possession of child pornography, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John Bennett. The sentence was handed down by the Honorable William H. Alsup, United States District Judge.
Rood, 74, of Eureka, pleaded guilty to the charge on September 4, 2018. According to the plea agreement, Rood admitted he used publicly available computers at the Humboldt County Library to locate, view, and save images and videos depicting minors engaged in sexually explicit conduct. Rood saved the images and videos to his personal email accounts and he also emailed the images and videos to his cellular phone. Using email, Rood also traded images and videos of minors engaged in sexually explicit conduct with others. He admitted that he possessed 230 images and 10 videos of minors engaged in sexually explicit conduct. Some of the images and videos, Rood admitted, depicted sadistic or masochistic portrayals of minors as young as 5 years of age. Further, Rood admitted he obtained and sent images to minors by email.
A federal grand jury indicted Rood on May 31, 2018, charging him with one count each of distribution, receipt and possession of child pornography, in violation of 18 U.S.C §§ 2252(a)(2) and 2252(a)(4)(B). Pursuant to his plea agreement, Rood pleaded guilty to the possession charge and the remaining charges were dismissed. The possession charge, in light of Rood’s history, carried a mandatory minimum sentence of 120 months in prison.
In addition to the prison term, Judge Alsup sentenced the defendant to a 10-year period of supervised release. Rood already is a registered sex offender. The defendant has been in custody since his arrest in July of 2018 and will begin serving his sentence immediately.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Humboldt County Sheriff’s Office.
Euclid woman sentenced to more than five years in prison for $200,000 college student aid fraud and identity theftRead the Press Release
A Euclid woman was sentenced to more than five years in prison for a college student aid scam in which she fraudulently obtained more than $205,000.
Elizabeth Westmoreland, 69, was sentenced to 66 months in federal prison. She previously pleaded guilty to multiple counts of wire fraud, mail fraud, theft of government property and aggravated identity theft.
“This money was supposed to be used to help legitimate students pay for tuition and cover the cost of books and supplies,” U.S. Attorney Justin Herdman said. “This defendant got hundreds of thousands of dollars because she is a scammer. This prison sentence is deserved.”
Westmoreland, from 2013 through 2017, recruited “students” whose identities she could use to fraudulently enroll them at several community colleges, including Lakeland Community College, Owens Community College, University of Rio Grande and Edison State Community College. At least one “student” was incarcerated while he purported to attend Lakeland, according to court documents.
Westmoreland applied for financial aid using the fraudulent students. This aid covered the cost of tuition and other fees, which were sent directly to the schools, but also additional expenses, such as money for books, supplies, transportation and other fees. This money was sent from the U.S. Department of Education directly to the students, according to court documents.
As part of the conspiracy, Westmoreland and the fraudulent students split the proceeds of the student aid money. Westmoreland arranged for and/or personally completed the coursework online so the students continued to receive aid, according to court documents.
The checks were mailed to addresses controlled by Westmoreland, then she and other would transport the recruited fraudulent students to various locations to cash the checks and split the proceeds, according to court documents.
The U.S. Department of Education was defrauded approximately $178,476 and the Social Security Administration was defrauded approximately $27,267 as part of the conspiracy, according to court documents.
This case was investigated by the Social Security Administration -- Office of Inspector General, U.S. Department of Education -- Office of Inspector General, Postal Inspection Service and Department of Housing and Urban Development – Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Robert Kern and Danielle Angeli.
Erie Man Sentenced to Prison for Preparing more than 1,000 False Income Tax ReturnsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 12 months and 1 day in jail and ordered to make restitution in the amount of $324,817.00 on his conviction of violating federal income tax laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Roderick M. Jones, 54.
According to information presented to the court, Jones prepared and presented approximately 1,015 false and fraudulent individual income tax returns to the Internal Revenue Service. On each return, Jones falsely claimed the individual earned household help income which qualified them for the Earned Income Tax Credit and other credits increasing the refund paid to the individuals. Jones was paid $1,000 for his services and electronically filed the false returns with the IRS.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service, Criminal Investigation Division for the investigation leading to the successful prosecution of Jones.
Erie Man Sentenced in Cocaine Trafficking ConspiracyRead the Press Release
ERIE, Pa. - A local man has been sentenced in federal court to six months probation and six months home detention on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Jason Edward Moyer, 33, of Erie, Pennsylvania.
According to information presented to the court, Moyer conspired with four co-defendants to possess with intent to distribute and distributed less than five hundred grams of cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the Immigration and Customs Enforcement, Homeland Security Investigations, the Pennsylvania State Police, and the Coshocton County, Ohio Sheriff’s Office for the investigation leading to the successful prosecution of Moyer.
Enforcer of a Drug Trafficking Organization is Sentenced to 35 years in PrisonRead the Press Release
St. Louis, MO –Terrance Wilson, a/k/a “Mutt,” 30, of St. Louis, was sentenced today to 35 years in prison for conspiracy to distribute controlled substances and use of a firearm in furtherance of drug trafficking offense resulting in death.
On April 24, 2018, Terrance Wilson, a/k/a “Mutt,” entered pleas to drug conspiracy and a firearms charges. According to the plea agreement, defendant Wilson also served as an enforcer for the Donald White Drug Trafficking Organization and participated in the murders of Ronald James, Michael McGill, and Darrion Williams, Jr.
According to Wilson’s plea agreement he participated in several murders. On July 28, 2009, Wilson participated in the murder of Ronald James in front of Dismas House. The Donald White Organization enlisted Wilson and another to gun down James as part of an ongoing drug war. On March 26, 2010, Michael McGill was lured to the 5100 block of Maffitt, where he was murdered by members of the White Organization, including Wilson, who acted as a shooter. On July 23, 2010, Darrion Williams, Jr. was lured to an alley behind the 5100 block of Maffitt for a purported drug deal where he was gunned down by members of the White Organization. As part of his plea agreement, Wilson also admitted to his involvement in the murder of Damon Walker on April 30, 2010.
In May 2018, a jury convicted Donald Stewart, Wilson’s codefendant, of conspiracy to distribute narcotics and firearms charges related to the murders of Michael McGill and Darrion Williams, Jr. Stewart’s sentencing is set in January 2019.
The case was investigated by the St. Louis Metropolitan Police Department’s Intelligence and Homicide Divisions, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation.
Eight Individuals arrested on Drug Conspiracy ChargesRead the Press Release
Eight defendants are in federal custody following their arrests in October and November 2018 on federal drug conspiracy charges, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
The defendants -- Lea Lea Bills, of Stephenville, Texas, Jeanne Butler, of Stephenville, Texas, Shauna Michelle Campbell, of Morgan Mill, Texas, Edward Martin Carranza, of Dublin, Texas, Michael Tyler Davidson, of Stephenville, Texas, David Wayne Green, of Lipan, Texas, Brad Keith, of Stephenville, Texas, and Michaela Danese Moncrief, of Dublin, Texas -- were all charged with one count of conspiracy to possess with the intent to distribute a controlled substance, and made their initial appearance before U.S. Magistrate Judge Jeffrey Cureton.
According to a Complaint filed last month, from about July 2017 through August 30, the defendants conspired together, and with others, to possess with the intent to distribute 50 grams or more of methamphetamine throughout the Northern District of Texas and elsewhere.
Members of the conspiracy had a fluid hierarchy that evolved over time. Some of the money derived from the sale and distribution of the methamphetamine was used to purchase additional quantities of methamphetamine.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty through due process of law.
If convicted, defendants face up to 40 years in federal prison and a $5,000,000 fine.
The Drug Enforcement Administration and Stephenville Police Department are in charge of the investigation. Assistant U.S. Attorney Shawn Smith is prosecuting the case.
Edmond Nurse Agrees to Pay $130,000 for Allegedly Engaging in an Illegal Kickback SchemeRead the Press Release
A nurse from Edmond, Oklahoma, has agreed to pay the United States $130,000 for allegedly accepting illegal kickback payments from OK Compounding.
United States Attorney Trent Shores announced today that his office has entered into a settlement agreement with V. Erin Files, an Advanced Practice Registered Nurse, in order to recoup losses to the United States resulting from the illegal kickbacks. This civil settlement resulted from an investigation into numerous healthcare providers writing prescriptions for pain creams compounded and sold by OK Compounding.
In 2013, Files prescribed these pain creams for her patients, facilitating the sale and distribution of the creams. As compensation for her services, OK Compounding, paid Files what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Files received from the company were, in actuality, “kickbacks.” Because some of her patients were insured by TRICARE, the health care program of the U.S. Department of Defense Military Health System for military service members and retirees, the kickbacks were in violation of the False Claims Act. It is illegal to pay or receive kickbacks in conjunction with federal healthcare insurance.
Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
“Unfortunately, abuse and exploitation of federal healthcare programs happens. The False Claims Act is one of the tools we use to hold accountable individuals, health care providers, and companies who illegally take money from the coffers of our federal healthcare system,” said U.S. Attorney Trent Shores. “It is unacceptable that Ms. Files received kickbacks as part of her work with a federal healthcare program that supports our military service men and women and their families. This U.S. Attorney’s Office is committed to working with our state and federal partners to investigate those abusing the system. I appreciate the dedicated work of the investigators and attorneys from my Affirmative Civil Enforcement team who brought this case.”
The agreement resolves allegations that Ms. Files had an illegal financial relationship with OK Compounding, concerning pain creams in 2013.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle and is the product of a collaborative investigation by the FBI, the U.S. Department of Health & Human Services- Office of Inspector General, the Department of Defense- Defense Criminal Investigative Service, the Drug Enforcement Administration, the United States Postal Inspection Service, the Oklahoma Attorney General’s Office, the Oklahoma State Board of Pharmacy, the Oklahoma State Board of Medical Licensure and Supervision and the Food and Drug Administration- Office of Criminal Investigation. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Dominican National Pleads Guilty to Fentanyl, Heroin ConspiracyRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to her role in a widespread heroin and fentanyl conspiracy.
Isis Y Lugo-Guerrero, 46, a Dominican national residing in Dorchester, pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine. U.S. District Court Judge Indira Talwani scheduled sentencing for March 6, 2019. Lugo-Guerrero was arrested on Feb. 14, 2017, and released from custody on March 2, 2017, on $10,000 unsecured bond. The first day of her week-long trial was scheduled to begin on Sept. 10, 2018, but she failed to appear in court, and a warrant was issued for her arrest. She was arrested on Oct. 3, 2018.
Lugo-Guerrero is the sister of Jose Antonio Lugo-Guerrero, the convicted leader of a Boston-based heroin and fentanyl trafficking organization. Isis Lugo-Guerrero conspired with her brother and others by regularly obtaining heroin and cocaine from him and by supplying him with substances to cut his drugs to make additional profit.
Jose Antonio Lugo-Guerrero pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, more than 400 grams of fentanyl, and more than five kilograms of cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime. He faces a mandatory minimum sentence of 15 years and up to life in prison. He is scheduled to be sentenced on Nov. 27, 2018.
The charge of conspiring to distribute heroin, fentanyl, and cocaine provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William Gross; Bridgewater Police Chief Christopher Delmonte; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
District Man Found Guilty of First-Degree Murder While Armed in Slaying Outside Convenience Store in Northeast WashingtonRead the Press Release
WASHINGTON – Kenneth Adams, 20, of Washington, D.C., has been found guilty by a jury of first-degree murder while armed and related charges stemming from a killing that took place in 2016 in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
In addition to the murder charge, Adams was found guilty of a weapons offense related to the murder, as well as a robbery charge involving an earlier incident. The verdict was returned on Nov. 19, 2018, and followed a trial in the Superior Court of the District of Columbia. The Honorable Judith Bartnoff scheduled sentencing for Feb. 28, 2019.
According to the government’s evidence, on the night of Feb. 15, 2016, Adams and two others robbed a woman near the intersection of 21st Street and Maryland Avenue NE and threatened that her brother would be next. The woman told her brother what happened, and he confronted Adams and the others.
Then, on Feb. 19, 2016, at approximately 9:40 p.m., Adams armed himself with a .40-caliber revolver and walked a short distance from 21st and Maryland to the area of 19th Street and Benning Road NE. He was backed by several others from the neighborhood. He walked to the center of a parking lot, raised his left arm, and pointed his firearm at the woman’s brother, firing multiple times. The man was in a group that included Dante Kinard. The gunfire did not hit the intended target, but did hit Mr. Kinard, 21, who was standing in front of a convenience store at the time. He was shot in the back and right thigh and died a short time later.
Adams was arrested on June 15, 2016, and has been in custody ever since.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by U.S. Marshals Service, the U.S. Park Police, the FBI, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Chrisellen Kolb, Daniel Lenerz, John Mannarino, David Misler, Rizwan Qureshi, and Thomas Saunders; Paralegal Specialists Debra Joyner, Alesha Matthews, Lornce Applewhite, Meridith McGarrity, and Sharon Newman; Investigative Analyst Zachary McMenamin; Litigation Technology Specialists Leif Hickling, Anisha Bhatia, and Thomas “Ron” Royal; Victim/Witness Advocate Diana Lim; Victim/Witness Security Specialists Lesley Slade and M. LaVerne Perry, and Intern Tia Kerkhof.
Finally, they commended the work of Assistant U.S. Attorneys Ahmed Baset and Monica Trigoso, who investigated and prosecuted the case.
District Court Enters Temporary Restraining Order Blocking Three Elder Fraud Schemes from Sending Fraudulent LettersRead the Press Release
A federal court in Central Islip, New York entered a temporary injunction today against individuals and corporations allegedly responsible for operating three international mail fraud schemes, the Department of Justice announced. These cases are part of the Department of Justice’s Elder Justice Initiative.
In a complaint filed today, the United States alleged that the 15 defendants mailed, or facilitated the mailing of, fraudulent solicitations related to three mail fraud schemes that primarily victimized the elderly or vulnerable. The solicitations purported to be personalized notices informing recipients that they had won a large cash prize but needed urgently to pay a fee to claim their winnings. The solicitations targeted victims throughout the world, and victims returned their payments to mailboxes located in the United States. Although victims sent in the requested fees by cash, check, or credit card, they did not receive large cash prizes in return. The complaint further alleges that the defendants were aware that the mailings deceived consumers into paying a fee and believing they had already won a valuable prize. The complaint alleges that victims sent thousands of dollars each week in response to the defendants’ fraudulent solicitations. The complaint alleged that in the last year, the three mail fraud schemes collectively mailed over half a million fraudulent letters, grossing an estimated $4.8 million in fraudulent proceeds.
Along with the complaint, the United States sought a temporary restraining order against the defendants to prevent them from continuing to send fraudulent solicitations during the pendency of the action. The district court found probable cause to believe that those defendants are engaged in mail fraud and entered the order. A preliminary injunction hearing is scheduled for December 3, 2018.
“We will not tolerate fraud, and we will not allow the U.S. Mail to be used as a conduit for fraudulent conduct,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Illegal schemes that prey on people’s hopes are reprehensible, and we will continue to vigorously pursue the operators of such schemes.”
“These fraudulent solicitation schemes target elderly and vulnerable residents in our district, around the country and around the world with a promise of cash prizes that never arrive,” stated Richard P. Donoghue, United States Attorney for the Eastern District of New York. “We are committed to protecting our residents, and victims everywhere, from these cruel schemes.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Delany De Leon-Colon for the U.S. Postal Inspection Service’s Criminal Investigations Group. “Deceptive solicitations take advantage of the American public with promises of easy money, when in reality, the scammers are the only ones making money. Investigations like this one let the American public – especially our vulnerable population – know that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail.”
The complaint alleged that defendants Charles Kafeiti of Phoenix, Arizona; Anthony Kafeiti of Port Jefferson, New York; and Steven Diaz of Mt. Sinai, New York, operate fraud schemes that lead victims to believe a large cash awards awaits them. The three schemes were assisted by Drew Wilson, a resident of Vancouver, Canada, who provided logistical support. Other named defendants, Dennis Hunsaker, a resident of Las Vegas Nevada, and his company, Digital Matrix International Inc., assisted the direct mailers with online tools to manage their mailings, lists of recipients, lists of respondents, and fulfillments. Carmine Maietta and Elizabeth Maietta, residents of Westbury, New York, opened and processed victim returns. The suit also named a German corporation that processed victim payments for the scheme, SixEvolution GmbH, and its operator, David Anthony.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, The Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past February the Attorney General announced the largest elder fraud enforcement action in American history, charging more than 200 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Last week, the Department of Justice and the Department of Agriculture hosted an inaugural Rural and Tribal Elder Justice Summit in Des Moines, Iowa. The Summit focused on supporting the efforts of elder justice professionals to combat elder abuse and financial exploitation in rural and tribal communities, and included remarks from Acting Attorney General Matthew Whitaker.
In the matter filed today, the government is represented by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Seth Eichenholtz and John Vagelatos of the U.S. Attorney’s Office for the Eastern District of New York. The United States Postal Inspection Service provided investigative support.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government must prove to receive a determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at www.justice.gov/usao-edny. Information about the Department of Justice’s Elder Fraud Imitative is available at www.justice.gov/elderjustice.
District Court Enters Temporary Restraining Order to Shut Down Three Elder Fraud SchemesRead the Press Release
CENTRAL ISLIP – A federal court in Central Islip, New York, entered a temporary injunction yesterday against 15 individuals and corporations allegedly responsible for operating three international mail fraud schemes, the Department of Justice announced. The Department of Justice alleges that, in 2018 alone, the three schemes collectively mailed over half a million fraudulent letters and grossed an estimated $4.8 million in fraudulent proceeds. The case is part of the Department of Justice’s Elder Fraud Initiative.
In a complaint filed yesterday, the United States alleged that defendants mailed, or facilitated the mailing of, fraudulent solicitations related to three mail fraud schemes that primarily victimized the elderly or vulnerable. The solicitations purported to be personalized notices informing recipients that they had won multi-million dollar cash prizes but needed urgently to pay a fee to claim their winnings. The solicitations targeted victims throughout the world, and victims returned their payments to mailboxes located in the United States, primarily on Long Island. Although victims sent in the requested fees by cash, check or credit card, they did not receive large cash prizes in return. The complaint further alleges that the defendants were aware that the mailings deceived consumers into paying a fee and believing they had already won a valuable prize. The complaint alleges that victims sent thousands of dollars each week in response to the defendants’ fraudulent solicitations.
Along with the complaint, the United States sought a temporary restraining order against the defendants to prevent them from continuing to send fraudulent solicitations during the pendency of the action. The District Court found probable cause to believe that the defendants are engaged in mail fraud and entered the order. A preliminary injunction hearing is scheduled for December 3, 2018.
“These fraudulent solicitation schemes target elderly and vulnerable residents in our district, around the country and around the world with a promise of cash prizes that never arrive,” stated Richard P. Donoghue, United States Attorney for the Eastern District of New York. “We are committed to protecting our residents, and victims everywhere, from these cruel schemes.”
“We will not allow the U.S. Mail to be used as a conduit for fraud,” stated Joseph H. Hunt, Assistant Attorney General for the Department of Justice’s Civil Division. “Schemes that prey on people’s hopes are reprehensible. We will continue to pursue the operators of such schemes.”
“These individuals thought they would get away with a crime targeting the elderly and vulnerable who in many cases gave away money needed for day to day necessities. The victims were told they had won the lottery and needed to pay fees to receive their winnings,” stated Philip R. Bartlett, Inspector-in-Charge of the United States Postal Inspection Service, New York Division. “Postal Inspectors remind consumers that paying to play a lottery is a telltale sign it’s a scam. If you prey on the elderly and vulnerable, you will be brought to justice for your crimes.”
According to the complaint, Charles Kafeiti of Scottsdale, Arizona; Anthony Kafeiti of Port Jefferson, New York; and Steven Diaz of Mt. Sinai, New York, operate fraud schemes that lead victims to believe that large cash awards await them. Those defendants were assisted by Drew Wilson, a resident of Vancouver, Canada, who provided logistical support. Other named defendants, Dennis Hunsaker, a resident of Las Vegas Nevada, and his company, Digital Matrix International Inc., assisted the direct mailers with online tools to manage their mailings, lists of recipients, lists of respondents and fulfillments. Carmine Maietta and Elizabeth Maietta, both residents of Westbury opened and processed victim returns. The lawsuit also named a German corporation, SixEvolution GmbH and its operator, David Anthony, that processed victim payments for the scheme.
The government is represented by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Seth Eichenholtz and John Vagelatos of the U.S. Attorney’s Office for the Eastern District of New York. The United States Postal Inspection Service provided investigative support.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at www.justice.gov/usao-edny. Information about the Department of Justice’s Elder Fraud Imitative is available at www.justice.gov/elderjustice.
E.D.N.Y. Docket No. 18-CV-6581 (JMA)
Dean Jones Sentenced in Manhattan Federal Court to 26 Years in Prison in Connection with Violent Armed Robbery and Narcotics TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that DEAN JONES, a/k/a “Kurupt,” was sentenced today in Manhattan federal court to 26 years in prison for robbing a restaurant in 2012, during which JONES shot an innocent customer, as well as for JONES’s participation in a wide-ranging conspiracy to distribute crack cocaine, heroin, and other drugs. JONES was convicted of robbery-related and narcotics-related offenses at separate jury trials in April and December 2017 before United States District Judge Vernon S. Broderick.
U.S. Attorney Geoffrey S. Berman said: “While robbing a restaurant, Dean Jones shot and badly injured an innocent civilian. What is more, Jones committed this robbery during the same time that he was selling large amounts of crack, heroin, and other drugs. Thanks to the exceptional work of the ATF, Jones will now spend decades in prison. Today’s sentence sends a strong message that this kind of violent and destructive behavior will not be tolerated.”
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In addition to the prison term, JONES, 37, of Bronx, New York, was sentenced to five years of supervised release. Of the 10 defendants charged in connection to this case, all 10 have pled guilty or been convicted at trial.
Mr. Berman thanked and praised the Bureau of Alcohol, Tobacco, Firearms, and Explosives for its outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Christopher Clore, Jessica Feinstein, Thomas McKay, and Hagan Scotten are in charge of the prosecution.
Claremore Man Convicted of Sexually Exploiting a ChildRead the Press Release
A Claremore man entered a guilty plea on Tuesday to sexual exploitation of a child, announced U.S. Attorney Trent Shores.
Zachary Newberry, 25, admitted that he coerced the minor victim into performing sexual acts with him and recorded the encounter on his cell phone.
On July 30, the Tulsa Police Department received Newberry’s phone in an anonymous package, which was accompanied by a note stating the phone contained child pornography. Detectives from the police department’s Cyber Crimes Unit forensically examined the phone and discovered that it had been used to film a single video of child pornography. Other information recovered from the phone led detectives to Newberry, who eventually confessed to filming himself sexually abusing the adolescent victim.
"Newberry’s heinous crimes involving the exploitation of a child were discovered because someone sent to law enforcement a package containing his cell phone. Inside the package, this anonymous tipster left a note that child pornography would be found on the phone. I don’t know the identity of the tipster, but I thank him or her for helping us. The anonymous package was vital in bringing Newberry’s despicable, criminal offenses to light,” said U.S. Attorney Trent Shores. “We as a society must band together to stop the proliferation of child pornography. We must stop those creating and supplying it, as well as those who sickeningly demand it. Tulsa’s Cyber Crimes detectives are at the forefront of this battle. They deftly take up the charge to locate and apprehend these perpetrators. The Tulsa Police Department acted swiftly and with urgency to track down this perpetrator. Their efforts also resulted in our identifying and rescuing a child victim from further sexual abuse.”
U.S. District Judge John E. Dowdell set Newberry’s sentencing for Feb. 25, 2019. Newberry faces a minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison along with a $250,000 fine.
The Tulsa Police Department investigated the crime. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Champaign Man Pleads Guilty to Charges of Attempted Possession with Intent to Distribute Fentanyl and Heroin in RockfordRead the Press Release
ROCKFORD — A Champaign man pleaded guilty today in federal court in Rockford before U.S. District Judge Frederick J. Kapala to two drug trafficking charges.
SETH LASHAWN HUNTER, 46, pleaded guilty to one count of attempted possession with intent to distribute 100 grams or more of heroin, and one count of attempted possession with intent to distribute fentanyl.
Hunter has been in federal custody since his arrest on Nov. 8, 2018. Sentencing is set for May 10, 2019, at 9:30 a.m., before U.S. District Judge Phillip G. Reinhard in Rockford.
According to the written plea agreement, on June 20, 2018, Hunter arranged for an individual in Long Beach, Calif., to ship two packages containing narcotics to Hunter at the residences of two of Hunter’s family members in Rockford. One package contained approximately 250 grams of heroin, and the other package contained approximately 998 pills that were designed to look like pharmaceutically manufactured oxycodone but contained amounts of fentanyl and acetyl fentanyl. Hunter arranged for the packages to be delivered to fictitious persons at Hunter’s family members’ residences in Rockford via the U.S. Postal Service. Hunter admitted that he traveled to Rockford over the weekend of June 22-24, 2018, to retrieve the packages of narcotics, and that he intended to distribute the heroin and the pills containing fentanyl and acetyl fentanyl after he received the packages. Law enforcement officers, however, intercepted the narcotics before the two packages were delivered.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Department of Homeland Security – Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Talia Bucci.
Attempted possession of 100 grams or more of heroin with intent to distribute carries a mandatory minimum penalty of five years in prison, a maximum penalty of up to 40 years in prison, a period of supervised release after imprisonment of at least four years, and a fine of up to $5 million. Attempted possession of a detectable amount of fentanyl carries a maximum penalty of 20 years in prison, a period of supervised release after imprisonment of at least three years, and a maximum penalty of $1 million. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.