Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 November 2018
Los Angeles Woman Pleads Guilty to Federal Sex Trafficking ChargeRead the Press Release
LOS ANGELES – A South Los Angeles woman who called herself “The Most Hated Hoe in L.A.” on social media pleaded guilty today to a federal sex trafficking offense and admitted she used the Internet to solicit minors to engage in commercial sex acts.
Melanie Denae Williams, 23, who used the moniker “Pretty Hoe” on social media platforms, pleaded guilty to sex trafficking by force, fraud or coercion. She entered her plea before United States District Judge George H. Wu.
As a result of today’s guilty plea, Williams faces a mandatory minimum sentence of 15 years in federal prison and will be required to pay restitution to her victims.
According to her plea agreement, Williams abused a woman she had recruited through social media to work as a prostitute. In one incident detailed in court documents, Williams ordered the victim to strip off her clothes, then Williams threw bleach on her and beat her with her hands and a broomstick. Williams also forced the victim to get Williams’ name tattooed on her face, confiscated the victim’s belongings and identity documents, and continually threatened to kill the victim if she left Williams, according to an affidavit filed in this case.
Williams also posted social media videos of her physically beating and using firearms to threaten young women, the affidavit states.
Williams also admitted in the plea agreement to using the Internet to recruit two minors to engage in commercial sex acts. Williams would then retain the proceeds from the minors’ sex acts for her own benefit.
Judge Wu scheduled a sentencing hearing for January 28.
The investigation into Williams was conducted by the Los Angeles Regional Human Trafficking Task Force, which included agents with the Federal Bureau of Investigation and deputies with the Los Angeles County Sheriff’s Department. The Los Angeles Police Department and the Los Angeles District Attorney’s Office provided substantial assistance in the investigation and prosecution.
This case is being prosecuted by Assistant United States Attorneys Lana Morton-Owens and Joseph Axelrad of the Violent and Organized Crime Section.
Long Island Gang Leader Sentenced to 15 Years’ Imprisonment for Shooting Two Rivals in HempsteadRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Alton Gore, also known as “A-Murder,” the leader of the Outlaws street gang, was sentenced by United States District Judge Joseph F. Bianco to 15 years’ imprisonment following his April 6, 2018 guilty plea to assault in aid of racketeering and discharging a firearm in connection with a crime of violence.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Gore earned today’s sentence by blindly shooting into a house, permanently disabling one man and injuring another,” stated United States Attorney Donoghue. “Violence in the name of a street gang jeopardizes the safety of the entire community and will not be tolerated. We will continue working tirelessly with our law enforcement partners to rid Long Island of the Outlaws and every other street gang.”
“Violent street gangs endanger public safety and paralyze communities through fear and intimidation,” stated FBI Assistant Director-in-Charge Sweeney. “Gore showed a flagrant disregard for the safety of others in opening fire on that home – two rival gang members were shot, one gravely injured, and his reckless actions could have endangered the lives of many others. The FBI’s Long Island Safe Streets Gang Task Force will continue to pursue justice for gang members who act outside the boundaries of the law.”
“The sentence of Defendant Gore is a clear example of how these violent crimes will not be tolerated in Nassau County,” stated NCPD Commissioner Ryder. “These street rival gangs exiting their violence place our residents and communities in harm’s way and injured two others. It is a testament of the hard work of dedicated professionals that the combined effort of law enforcement was able to bring this defendant to justice to further show that he will be punished for his actions.”
On September 11, 2013, Outlaws gang member Pedro Merchant shot and killed 17-year-old Dante Quinones in Hempstead over gang allegiances. Following Quinones’ murder, Gore led Outlaws members in a year-long gang war between the Outlaws and the Bloods, which included multiple shootings. On September 14, 2014, Gore and two Outlaws members staked out a house in Hempstead where Bloods members were watching a boxing match. Gore and his co-conspirators opened fire into the house, hitting one gang member in the leg and a second gang member in the head, causing him to lose an eye.
This Office has prosecuted six members and associates of the Outlaws and six members of the Bloods for their participation in this violent gang war. To date, the following individuals have been sentenced or pled guilty:
- Pedro Merchant, a member of the Outlaws in Hempstead, was sentenced to 20 years’ imprisonment for the September 11, 2013 firearm-related murder of Dante Quinones.
- Everett Brown, an associate of the Outlaws, was sentenced to 10 years’ imprisonment following his guilty plea to discharging a firearm during a crime of violence for his role in one of three shootings of rivals’ homes committed by the gang on August 19, 2014.
- Philip Saunders, a member of the Bloods, was sentenced to 12 years’ imprisonment following his guilty plea to discharging a firearm during a crime of violence for his role in a May 9, 2014 assault of a rival gang member.
- Khalil Brown and Naree Barnes, members of the Bloods, were each sentenced to 10 years’ imprisonment following their guilty pleas to discharging firearms during a crime of violence for shooting at a rival gang member on October 21, 2014.
- Billy McLen, a member of the Bloods, pled guilty to attempted murder in-aid-of racketeering and discharging a firearm during a crime of violence and is awaiting sentence. When sentenced, McLen faces a minimum of 10 years in prison and a maximum term of life.
- Jonathan Mayzick, a member of the Bloods charged with racketeering, conspiracy to murder and assault rival gang members with dangerous weapons and attempted murder and attempted assault with dangerous weapons, is awaiting trial.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Christopher Caffarone and Michael Maffei are in charge of the prosecution.
The Defendants: ALTON GORE (also known as “A-Murder”)
Age: 27
Hempstead, New YorkE.D.N.Y. Docket No. 16-CR-322 (S-1) (JFB)
Lee's Summit Couple Among 13 Indicted for $62 Million Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Lee’s Summit, Mo., couple are among 13 defendants who have been indicted by a federal grand jury for their roles in a $62 million conspiracy to distribute more than 2,000 kilograms of cocaine, and a money laundering conspiracy.
Howard Christian Walters, also known as “Chris,” 41, and his wife, Nina Walter, 37, both of Lee’s Summit; Louis Walker, 47, of Richmond, Mo.; Jose Luis Armendariz-Rascon, also known as “Uncle” or “Rambo,” 38, and Jesus Salvador Campoy-Estrada, also known as “Chava” or “Chavita,” 24, both citizens of Mexico residing in Kansas City, Kan.; Franciso Gastelum-Valdez, 51, of Overland Park, Kan.; Miguel Armendariz-Rascon, 30, a citizen of Mexico residing in Olathe, Kan.; Mark High, 52, and Antonio Starks-Fewell, 33, both of Springfield, Mo.; Otilio Zaragoza-Navarrette, 62, a Mexican national and lawful permanent resident, and Pamela Salais, 30, and her sister, Luisa Maria Salais, 28, all of El Paso, Texas; Armando Rosales, Jr., 29, of San Elizario, Texas; were charged in a 20-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Nov. 15, 2018. That indictment was unsealed and made public today upon the arrests and initial court appearances of most of the defendants.
Howard Walters is the owner of L & H Auto Sales in Kansas City, Mo.
The federal indictment alleges that Howard Walters, Jose Armendariz-Rascon, Campoy-Estrada, High, Starks-Fewell, Miguel Armendariz-Rascon, Zaragoza-Navarrett, Rosales, Pamela Salais and Luisa Salais participated in a conspiracy to distribute cocaine from October 2013 to Nov. 15, 2018.
In addition to the conspiracy, Howard Walters is charged with seven counts of distributing cocaine. Howard Walters also is charged with Campoy-Estrada, High and Starks-Fewell in one count of aiding and abetting the possession of cocaine with the intent to distribute and in one count of aiding and abetting the possession of marijuana with the intent to distribute.
The federal indictment alleges that Howard and Nina Walters, Campoy-Estrada, Gastelum-Valdez and Walker participated in a money-laundering conspiracy during the same timeframe, from October 2013 to Nov. 15, 2018.
In addition to the money-laundering conspiracy, Howard Walters is charged with three counts of money laundering for allegedly purchasing a 2017 Dodge Ram pickup truck and a 2013 Suzuki motorcycle, and the lease of a 2017 Mercedes-Benz GLS550, with the proceeds of drug trafficking. Howard Walters and Walker also are charged together in one count of money laundering for allegedly purchasing a 2011 Porsche Panamera with the proceeds of drug trafficking.
Campoy-Estrada is also charged with two counts of money laundering for the alleged purchase of a residence and of a 2011 Cadillac Escalade with the proceeds of drug trafficking.
Howard and Nina Walters also are charged together in one count of money laundering. Nina Walters is also charged with one count of money laundering.
Gastelum-Valdez is also charged with two counts of money laundering related to the alleged purchase of a residential property with the proceeds of drug trafficking.
The indictment also contains forfeiture allegations, which would require Jose Armendariz-Rascon to forfeit at least $62.4 million, which was received in exchange for the unlawful distribution of cocaine (based on a sale price of $30,000 per kilogram of cocaine and distribution of no less than 10 kilograms of cocaine per week for a period of at least four years).
Several defendants would also be required to forfeit to the government four residential properties, including Howard and Nina Walters’s residence in Lee’s Summit and Campoy-Estrada’s residence in Kansas City. Howard Walters, Campoy-Estrada, High, Starks-Fewell, Miguel Armendariz-Rascon, Zaragoza-Navarrett, Rosales, Pamela Salais and Luisa Salais would be required to forfeit to the government a money judgment in the amount of the proceeds received in exchange for the unlawful distribution of cocaine.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.
Lancaster Man Pleads to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Jamarcus Dontaye Patterson, age 35, of Lancaster, plead guilty in federal court to being a felon in possession of a firearm and ammunition. Chief United States District Judge Terry L. Wooten of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on July 13, 2018, deputies with the Lancaster County Sheriff’s Office responded to the area of Plyler and Duke Streets after receiving a call that Jarmarcus Patterson had pointed a firearm at someone. Deputies observed Patterson, who had outstanding state warrants at the time, walking down Plyler Street. When deputies approached, Patterson fled on foot, was apprehended shortly thereafter and deputies recovered a loaded Hi-Point .40 caliber pistol. Patterson was arrested on state charges and thereafter, a federal arrest warrant and complaint was issued.
Patterson is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions. Patterson has the following prior convictions: 2002 conviction for assault and battery with intent to kill, wherein he shot someone in the leg; 2013 conviction for burglary 2nd degree, where he and a co-defendant allegedly were armed during a burglary in which a two-month old child was held at gunpoint; 2013 conviction for attempted strong arm robbery; and 2013 conviction for accessory before the fact to a felony. At the time of the current offense, Patterson was on state bond for a December 24, 2017, weapon charge.
Patterson faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lancaster County Sheriff’s Office. 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 Stacey D. Haynes of the Columbia office handled the case.
#####
Kingston Springs Man Indicted for Mid-State Pharmacy RobberiesRead the Press Release
NASHVILLE, Tenn. – November 19, 2018 – Gary Ginnings, 44, of Kingston Springs, Tennessee, was indicted last week by a federal grand jury and charged with two counts of Hobbs Act Robbery, one attempted Hobbs Act Robbery and two counts of brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Ginnings was arrested this morning by FBI agents and officers from the Metro Nashville Police Department and the Dickson County Sheriff’s Department. He will appear before a U.S. Magistrate Judge later today.
According to the indictment, on April 12, 2018, Ginnings attempted to rob the Bridgestone Pharmacy in Antioch, Tennessee while brandishing a firearm. On the same day, Ginnings robbed the Good Shepard Pharmacy in Antioch and took bottles of hydroxychloroquine, a prescription medication.
The indictment also alleges that on April 18, 2018, Ginnings, while armed with a firearm, robbed the pharmacist at Fred’s Pharmacy in Whitebluff, Tennessee. During this robbery, Ginnings obtained 3,280 oxycodone pills.
If convicted, Ginnings faces up to life in prison.
This case was investigated by the FBI; the Nashville Metropolitan Police Department; and the White Bluff Police Department. Assistant U.S. Attorneys Joseph Montminy and Van Vincent are prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Kansas Business Owner Sentenced for Making False Statement on Tax ReturnRead the Press Release
KANSAS CITY, KAN. – A man who owned businesses in Topeka, Olathe and Kansas City, Kan., was sentenced today to 12 months and a day for falsifying a tax return, U.S. Attorney Stephen McAllister said. In addition, he was ordered to pay a $3,000 fine.
Fernando Tapia, 47, Eudora, Kan., pleaded guilty to one count of making a false statement on a tax return. Tapia owned meat markets in Topeka, Olathe and at two locations in Kansas City, Kan., as well as two more in Missouri. In a tax return for 2010, Tapia reported receiving $1,991 in income from a category of income that included partnership income. In fact, he received approximately $120,000 in income from that category.
McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Leon Patton for their work on the case.
Hammond Man Sentenced to 28 Years in Prison for Latin King Racketeering Conspiracy Including Murder of Innocent VictimRead the Press Release
HAMMOND- Anton James, Jr., 22, of Hammond, Indiana, was sentenced by Judge Simon to 28 years imprisonment following his guilty plea to conspiracy to commit racketeering activity for his role and participation in the Latin Kings street gang, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Mr. James, through his gang activities, terrorized the streets of Northwest Indiana. The 28 year sentence reflects the seriousness of these crimes. We will continue to work with our law enforcement partners and the community to investigate and prosecute gangs.”
At sentencing, James was found to have committed the October 28, 2014, murder of Martin Hurtado, Sr., of Hammond, Indiana, in furtherance of the Latin Kings. Hurtado, an innocent victim who was not a gang member, was outside his residence working on his car when he was gunned down by James in an effort to further James’ standing and prestige in the Latin King street gang. According to documents in this case, James was involved with the Latin Kings from approximately 2011 - 2015. During his involvement with the Latin Kings, he conspired to distribute between 5 and 15 kilograms of cocaine. He patrolled Latin King controlled territory in Hammond, Indiana, in furtherance of the gang while armed with a firearm with an extended magazine. On another occasion, he shot an entire magazine worth of bullets at a residence of a rival Latin Counts member. On another occasion, James shot at rival Spanish Gangster Disciples members outside of a convenience store in Hammond.
Enforcement actions and partnerships related to violent gangs are part of our Project Safe Neighborhoods (PSN) program. The program brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office and the U.S. Attorney’s Office, Northern District of Illinois, has also provided assistance. The Latin King case is being prosecuted by Northern District of Indiana Assistant U.S. Attorneys David J. Nozick, Dean R. Lanter, and Joseph A. Cooley, formerly of the Criminal Division’s Organized Crime and Gang Section.
Guatemalan Man Charged with Transfer of False Identification DocumentRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that MARIO ARGUETA-CHUN, age 40, a native of Guatemala, was charged Friday, November 16, 2018 in a one-count bill of information with unlawfully transferring a false identification document, in violation of Title 18, United States Code, Section 1028(a)(2).
According to court documents, on July 6, 2018, ARGUETA-CHUN knowingly transferred a fraudulent Social Security card that appeared to have been issued by the United States.
If convicted, ARGUETA-CHUN faces a maximum term of imprisonment of 15 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
* * *
Grand Ledge Man Pleads Guilty to Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — Kevin Scott Konen, 52, of Grand Ledge, Michigan, pleaded guilty to sexual exploitation and attempted sexual exploitation of children, and possession of child pornography, U.S. Attorney Andrew Birge announced today. Sentencing before U.S. District Judge Gordon J. Quist has yet to be scheduled. At sentencing, Konen will face a mandatory minimum of 15 years’ imprisonment and a combined maximum of 40 years’ imprisonment, restitution, fines, and other penalties.
Konen used various persona and schemes on social media to cause and attempt to cause minors to take sexually explicit images of themselves. Konen used the alias "Jenny Mays" on Facebook and other social media and pretended to be a high school girl and befriended girls and boys. Using the "Jenny Mays" alias, Konen manipulated minors and then encouraged them to take sexually explicit images of themselves. Konen also used the alias of "Alyssa Pietrzak" to contact minors. Using this persona, Konen aggressively extorted minors and demanded that they send him sexual images or "Alyssa Pietrzak" would send compromising pictures to the victim’s family and friends. Another ruse involved directing the victims to contact "Denny Ha" who could help the victims remove their pictures from internet websites, but to do so "Denny Ha" needed user names and passwords for their accounts. Once he had access to the accounts, Konen would search the victims’ accounts for compromising pictures.
Konen operated this scheme from 2011 to 2018 and had communications with numerous minors in Eaton County, Michigan, and others outside the state. Persons who believe that they or someone they know may have been a victim of this scheme should call the FBI at (313) 965- 4540.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), federal, tribal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
This case is being investigated by the FBI, Michigan State Police, and the Grand Ledge Police Department and prosecuted by Assistant U.S. Attorney Daniel Mekaru.
END
Georgia Man Charged with Social Security and Wire FraudRead the Press Release
BOSTON – A Georgia man will appear in federal court in Springfield today to face charges connected with his submission of a fraudulent application for employment at a Western Massachusetts hospital.
Fabrizio I. Pluchino, a/k/a “Fabrizio Pulchino,” 55, of Atlanta, Georgia, was indicted by a federal grand jury in Springfield on Oct. 25, 2018, on one count of using a falsely obtained Social Security number and one count of wire fraud. Pluchino will appear in federal court in Springfield today at 2:00 p.m.
According to the indictment that was unsealed today, Pluchino was assigned a Social Security number in 1988 and subsequently falsely obtained two additional Social Security numbers in 1991 and 2000, respectively. Around November 2013, Pluchino used one of his falsely obtained Social Security numbers on pre-employment documents when he applied to be a Cardiac Surgical Technologist at a Western Massachusetts hospital. He also falsely represented his work history and provided two false employment references. As a result, the hospital hired Pluchino for the position and paid Pluchino more than $190,000 in wages during his employment.
The charge of use of a falsely obtained Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a $250,000 fine. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
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.
Fourth Defendant Convicted in June by a St. Croix Federal Jury is Sentenced to 10 Years for Conspiracy and Attempted Possession of CocaineRead the Press Release
St. Croix, USVI – Jean Carlos Vega-Arizmendi, age 27, of Puerto Rico, was sentenced on Friday to 120 months in prison for conspiracy to possess cocaine with intent to distribute and attempted possession of cocaine with intent to distribute, by District Court Judge Wilma A. Lewis, announced United States Attorney Gretchen C.F. Shappert. Judge Lewis also sentenced Vega-Arizmendi to five years of supervised release, and ordered him to pay a fine of $2,000.000 and a special assessment of $300.00.
On June 26, 2018, a federal jury convicted Vega-Arizmendi along with five co-defendants on cocaine-related charges. Evidence at trial revealed that the organization planned for the retrieval of over 300 kilograms of cocaine during the period of the conspiracy. Approximately 223 kilograms of cocaine were actually distributed by the drug organization. Law enforcement efforts to interdict the drug shipments were successful, beginning in 2015. Between December 13 and 15, 2014, Vega-Arizmendi assisted others in attempts to retrieve 30 kilograms of cocaine mid-sea. Vega-Arizmendi functioned as a boat operator. In May 2015, he bought a gas tank for a boat in St. Croix that was to be used to retrieve a load of cocaine. The boat flipped and was never taken out to sea. During the summer of 2015, Vega-Arizmendi and others also attempted to retrieve a 70 kilogram load of cocaine and transport it into Culebra. Vega-Arizmendi functioned as the look-out person during that episode.
Fourteen individuals were originally charged as part of the drug trafficking organization. Prior to trial, six defendants entered guilty pleas and were sentenced. Of the six that were convicted on June 26, 2018, four have been sentenced and two are awaiting sentence.
The case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorneys Alphonso G. Andrews, Jr. and Everard E. Potter.
Fort Worth Man Sentenced to 10 Years in Hulen Mall ArsonRead the Press Release
A Fort Worth Man was sentenced today to 10 years in prison for the May 2018 Hulen Mall arson, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In July, Craig Michael Tezeno, 46, of Fort Worth, Texas, pleaded guilty to igniting several Molotov cocktails inside two department stores in Fort Worth’s Hulen Mall.
According to court documents, Tezeno admits he lit a rag stuffed into a glass bottle filled with gasoline and placed it on the floor of Dillard’s department store on May 11. Later that same day, he lit a similar device inside a Sears. He returned to the same Sears a week later and ignited a third device, hoping to start a fire and damage the store.
The Federal Bureau of Investigation and the Fort Worth Police Department investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Fort Worth Fire Department’s Arson Investigations Unit, the Tarrant County District Attorney’s Office, and FBI Task Force Officers from the Tarrant County Sherriff’s Office, the Arlington Police Department, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety. Assistant U.S. Attorney Jay Weimer prosecuted the case.
Former Norwalk Resident Sentenced to Prison for Illegally Reentering U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIGUEL ANGEL ARCOS-VASQUEZ, also known as “Dimas Fernando Herrarte,” 27, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment for illegally reentering the U.S. after being deported. Arcos-Vasquez is a citizen of Guatemala last residing in Norwalk.
According to court documents and statements made in court, in November 2011, Arcos-Vasquez attempted to enter the U.S. at the Mexican border using the identity of a Mexican citizen. He was denied entry into the U.S. and returned by foot to Mexico.
In March 2014, Arcos-Vasquez was arrested by the Stratford Police Department for a burglary offense. In April 2014, he also was charged with failure to appear. He was not encountered by U.S. Immigration and Customs Enforcement at this time.
In approximately 2015, Arcos-Vasquez returned to Guatemala voluntarily. In January 2016, he attempted to enter the U.S. three times through Texas, but was removed to Mexico after each attempt.
On January 24, 2017, Arcos-Vasquez was arrested by the Stamford Police Department on charges of threatening in the first degree. On January 27, 2017, under the name of Dimas Herrarte-Ramirez, he was charged by the Norwalk Police Department with sale of a hallucinogen/narcotic and criminal possession of a firearm. He has been detained since that time, and U.S. Immigration and Customs Enforcement was notified.
On October 19, 2017, Arcos-Vasquez was sentenced in state court to five years of incarceration, execution suspended after two years. His state prison term is scheduled to expire in January 2019.
Judge Hall ordered Arcos-Vasquez to begin serving his federal sentence upon his release from state prison.
On August 17, 2018, Arcos-Vasquez pleaded guilty in federal court to illegally reentering the U.S. after being deported.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Former L.A. County Deputy Sheriff Sentenced to 17½ Years in Prison for Scheming to Escort Large Amounts of Narcotics for $250,000Read the Press Release
LOS ANGELES – A former Los Angeles County Sheriff’s deputy was sentenced today to 210 months in federal prison for participating in an interstate drug trafficking conspiracy in which the deputy agreed to use his role as a law enforcement officer to ensure that narcotics were successfully transported.
Kenneth Collins, 51, of Chino, was sentenced by United States District Judge Otis D. Wright II, who also ordered the defendant to pay $38,000 in restitution.
In August, Collins pleaded guilty to conspiracy to distribute methamphetamine, cocaine and marijuana. Collins, who separated from the Los Angeles County Sheriff’s Department in late February, admitted to conspiring with at least two other individuals to accept cash payments in exchange for distributing large amounts of controlled substances. Collins also admitted to actively preventing the legitimate efforts of state and local law enforcement in exchange for cash payments up to $250,000.
“For years, former deputy Collins abused the trust of the people of Los Angeles County as a corrupt law enforcement officer motivated by greed,” said United States Attorney Nick Hanna. “In public, he was sworn to uphold the law, but in private he was a gun-for-hire willing to help drug smugglers in exchange for getting his cut of the dirty profits.”
“Today’s sentencing is a sober warning that those in a position of public trust will not be allowed to abuse their authority as a law enforcement officer,” said Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office. “Former deputy Collins betrayed the public’s trust by placing a higher priority on satisfying his personal greed rather than ensuring the safety of our communities he was sworn to protect.”
As part of an undercover operation, FBI special agents arrested Collins and his two co-defendants in January after they arrived in Pasadena to provide security to transport nearly 45 pounds of cocaine and more than 13 pounds of methamphetamine to Las Vegas. Previously, Collins had negotiated a cash payment of $250,000 for his escort services. What Collins didn’t know at the time was that he had entered into an agreement with an undercover FBI agent posing as the partner of a wealthy investor financing a drug trafficking operation.
Collins admitted that he and his co-defendants provided security in November 2017 for a Pasadena-to-Las Vegas shipment of what he believed was six kilograms methamphetamine, as well as marijuana and counterfeit cigarettes. Collins received $25,000 in cash for his team’s security services that day.
Collins justified the high fees for his services by telling the undercover agent “we’re cops” and “all of our transports make it through.” During one meeting with the undercover agent, Collins displayed his Sheriff’s Department badge and firearm as proof that he was a law enforcement officer, thereby rendering his services more valuable to drug traffickers.
The undercover agent bought two pounds of marijuana from Collins for $6,000 in October 2017 as a “test run.” If the “test run” sale went well, Collins offered to sell up to $4 million of marijuana every month to the undercover agent, claiming he had a “connection” through which he could secure up to one ton of marijuana every month, according to court documents.
In recorded negotiations with the undercover agent, Collins also offered to intimidate and physically assault people in exchange for cash, court documents said. “I fix problems,” Collins bragged. “I make a lot of things go away.” Collins even claimed to have recently set someone’s “$85,000 Cadillac truck on fire” for one of his other criminal “clients.”
When he pleaded guilty, Collins also admitted that, in an entirely separate encounter, where he again corruptly used his law enforcement position, he illegally seized approximately $160,000 in cash from a vehicle after conducting an unlawful traffic stop. Prior to the stop, Collins was aware there would be a large amount of cash in the vehicle and never reported the stop or the cash seizure to the LASD.
In his plea agreement, Collins further acknowledged that he used to be an instructor at the Emerging Leaders Academy, a life-skills class where LASD deputies were supposed to mentor adult ex-offenders to help them reintegrate into society. It was through the academy that Collins first met his co-defendant Grant Valencia, a student at the time.
Two co-defendants in this case – David Easter and Grant Valencia – each pleaded guilty to one count of conspiracy to distribute controlled substances. Valencia has been sentenced. Easter’s sentencing hearing is scheduled for January 8.
The case against Collins and his co-defendants was investigated by the FBI, with cooperation from the Los Angeles County Sheriff’s Department.
This case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Former Chief Executive Officer of New York Credit Union Pleads Guilty in Manhattan Federal Court to Multimillion-Dollar EmbezzlementRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that KAM WONG, the former chief executive officer (“CEO”) and president of the oldest New York credit union (the “Credit Union”), a non-profit financial institution, pled guilty in Manhattan federal court today to embezzling millions of dollars from the Credit Union. WONG pled guilty before U.S. District Judge John G. Koeltl.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Kam Wong, the former CEO and president of New York’s oldest credit union, abused his position of trust as a guardian of municipal, state, and federal workers’ financial accounts to enrich himself. In so doing, Wong stole money from the credit union that could have gone to the credit union’s members, and tried to cover up what he had done by making false statements to federal investigators and creating false and misleading documents. I commend the Special Agents of the U.S. Attorney’s Office, and our law enforcement partners, for their tireless efforts in this ongoing investigation.”
According to the Complaint, the Information, statements made in court and publicly available documents:
WONG was the CEO and president of the Credit Union, a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration Board. The Credit Union is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 425,000 members, including municipal, state, and federal workers in New York City. The Credit Union’s earnings are intended to be directed back to its members in the form of more favorable rates and fewer and lower fees for products and services.
From 2013 through January 2018, WONG engaged in a long-running multi-faceted scheme to obtain money from the Credit Union to which he knew he was not entitled, and took steps to seek to conceal what he had done. Among other things, WONG embezzled from and defrauded the Credit Union by submitting sham invoices for dental work never performed on him or paid by him, and, as a result, fraudulently obtained reimbursement for hundreds of thousands of dollars of such nonexistent dental work. In addition, WONG fraudulently caused the Credit Union to pay him additional monies that he knew he was not entitled to receive, including millions of dollars of payments in lieu of purported long-term disability insurance, and for purported taxes owed on these and other employment benefits.
WONG also misapplied money and other things of value from the Credit Union, with respect to, among other things, reimbursement payments for repairs to luxury vehicles the Credit Union leased to WONG, which repair work was already covered by the Credit Union’s insurance; cash advances to which he was not entitled; educational, housing, and living expenses for two of WONG’s friend’s relatives; payments for his leave days that did not comply with and exceeded what was provided for under his employment contract; the purchase of a Mercedes-Benz automobile that was not provided for under his employment contract; the leasing of multiple luxury vehicles at the same time; electronic devices (including, iPhones, iPads, and laptops) for personal use by WONG and others; and reimbursement, as business expenses, of personal expenses, including hotel stays. In addition, WONG obtained controlled substances, for personal use, from a former Credit Union Supervisory Committee member.
In January 2018, after WONG learned about the investigation, WONG sought to obstruct justice by making false statements to federal investigators and creating false and misleading documents to try, after the fact, to explain and justify some of these payments.
* * *
WONG, 62, of Valley Stream, Long Island, pled guilty to one count of embezzlement from a federally insured credit union, which carries a maximum penalty of 30 years in prison. As a condition of his plea, WONG also agreed to forfeit at least $9,890,375 and to pay at least $9,890,375 in restitution to the Credit Union.
WONG is scheduled to be sentenced by Judge Koeltl on April 5, 2019, at 10:00 a.m.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the sentencing of WONG will be determined by the judge.
U.S. Attorney Berman praised the outstanding work of the Special Agents of the United States Attorney’s Office. Mr. Berman also thanked the New York County District Attorney’s Office, the New York State Department of Financial Services, and the National Credit Union Administration.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark and Daniel C. Richenthal are in charge of the prosecution, with assistance from Special Assistant U.S. Attorney Alona Katz from the New York County District Attorney’s Office.
Final Defendant Sentenced in Operation Chasing OxyRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 10 years in prison for his leadership role in a nine-member conspiracy to fraudulently obtain and sell approximately 9,000 Oxycodone pills in Hampton Roads.
According to court documents, from February to September 2017, Deonte Farrow, who was sentenced today to 10 years, and Quentia Fields led a conspiracy to fraudulently obtain Oxycodone pills from various pharmacies in the Hampton Roads area for the purpose of selling the pills on the streets for a profit. Farrow and Fields manufactured and drafted prescriptions for Oxycodone pills from their home computers and printers, using the name and DEA registration numbers of real physicians, without the physician’s knowledge. Farrow and Fields then worked with co-conspirators, Harvey Williams, Lucion Liles and Quanisha Platt, to recruit individuals to serve as runners, such as Tynasia Smith, Travis Smith, Juan Ramirez, and Tykeiah Benn, who would take the prescriptions to various pharmacies in the Tidewater area to be filled. Platt, who had worked in several pharmacies, knew how to draft a prescription so that it looked legitimate to a pharmacy. The runners either were paid in money or given a quantity of the Oxycodone pills for their services. The listed patient on the written prescriptions were either the name of a co-conspirator or the name of some other real person, sometimes without that person’s knowledge. In total, approximately 20 physicians’ names and DEA registration numbers were used on the fraudulent prescriptions without the doctor’s knowledge.
This investigation was conducted by the Richmond Tactical Diversion Squad, in cooperation with the Chesapeake, Norfolk and Virginia Beach Police Departments, and the Virginia State Police.
Name, Age
Hometown
Convictions
Sentence
Deonte Farrow, 28
Norfolk
Conspiracy to Obtain and Distribute Oxycodone
120 months
Quentia Fields, 27
Norfolk
Conspiracy to Obtain and Distribute Oxycodone
46 months
Harvey Williams, 27
Chesapeake
Conspiracy to Obtain and Distribute Oxycodone
51 months
Lucion Liles, 28
Norfolk
Conspiracy to Obtain and Distribute Oxycodone
41 months
Quanisha Platt, 24
Norfolk
Conspiracy to Obtain and Distribute Oxycodone
37 months
Tykeiah Benn, 27
Norfolk
Conspiracy to Obtain and Distribute Oxycodone
24 months
Travis Smith, 31
Norfolk
Conspiracy to Obtain and Distribute Oxycodone
16 months
Juan Ramirez, 31
Norfolk
Conspiracy to Obtain and Distribute Oxycodone
10 months
Tynasia Smith, 22
Chesapeake
Conspiracy to Obtain and Distribute Oxycodone
7 months
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division], made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William Muhr prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-15-1.
Federal Prisoner Sentenced to over 14 Years for Assaulting Two Victims with a ShankRead the Press Release
Jackson, Miss. – Valentino Gonzalez, 47, of Texas, a federal inmate in the United States Penitentiary in Yazoo City, Mississippi, was sentenced Friday, by Chief United States District Judge Daniel P. Jordan III, to 170 months in federal prison followed by three years of supervised release for two counts of assault, announced U.S. Attorney Mike Hurst.
In 2005, Valentino Gonzalez was convicted and sentenced to more than 24 years in federal prison for conspiracy to murder. He was serving that sentence in the United States Penitentiary in Yazoo City, Mississippi, when in September 2017, Gonzalez attacked another prisoner with a long, metal shank stabbing him repeatedly. When a correctional officer attempted to intervene, Gonzalez stabbed the officer. Both victims sustained serious injuries.
U.S. Attorney Hurst commended the work of the Federal Bureau of Prisons in the investigation of this case.
Federal Jury Convicts Navajo Man on Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict today finding Brian Adrian Sloan guilty on aggravated child sexual abuse charges following a five-day trial. The guilty verdict was announced by U.S. Attorney John C. Anderson and Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division.
The FBI arrested Sloan, 33, an enrolled member of the Navajo Nation who resides in Newcomb, N.M., in Aug. 2016, on an indictment filed on Aug. 23, 2016, alleging child sexual abuse offenses. The indictment was superseded on Jan. 24, 2017, and charged Sloan with sexually abusing a child under the age of 12 years on two occasions between May 2007 and Dec. 2007, and between May 2008 and Aug. 2008, and sexually abusing a second child under the age of 12 years between June 2003 and Aug. 2003. According to the superseding indictment, Sloan committed the crimes on the Navajo Indian Reservation in McKinley County, N.M.
Trial on the superseding indictment commenced on Nov. 13, 2018, and concluded this morning when the jury returned a guilty verdict against Sloan on all four counts of the superseding indictment.
Testimony at trial established that Sloan began sexually abusing the victim referenced in Counts 1, 2 and 3 of the superseding indictment during the summer of 2007. The victim, who was 11-years old when the sexual abuse began, testified being repeatedly sexually abused by Sloan from the beginning of the summer of 2007 through at least Aug. 2008. According to testimony, Sloan would find the victim alone at home and sexually abuse the victim while threatening and being physically abusive.
The victim referenced in Count 4 testified that the victim stayed at a relative’s house on a night during the summer of 2003, on the Navajo Indian Reservation, and during a night hide and seek game, the victim entered a dark bedroom where Sloan was hiding and Sloan grabbed and sexually molested the victim.
The jury deliberated approximately three hours before returning a guilty verdict.
At sentencing, Sloan faces a statutory mandatory minimum penalty of 30 years and a maximum of life in federal prison, a $250,000 fine, and will be required to register as a sex offender. Sloan remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI. Assistant U.S. Attorneys Novaline D. Wilson and Elisa C. Dimas are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Federal Grand Jury Returns Ten-Count Indictment against Driver Illegally Transporting Nine Undocumented AliensRead the Press Release
Memphis, TN – An undocumented Mexican national has been charged with illegally transporting undocumented aliens. U.S. Attorney D. Michael Dunavant announced the indictment today.
In a ten-count indictment, a federal grand jury has charged an undocumented Mexican national with illegally transporting undocumented aliens through the Western District of Tennessee and with illegal reentry into the United States after deportation.
According to the information presented in the indictment, Rufino Valldovinos-Ramirez, 41, was charged with illegally transporting nine undocumented aliens, in violation of Title 8, United States Code, § 1324(a)(1)(A)(ii). The grand jury charged that Valldovinos-Ramirez knew and disregarded the fact that his nine passengers were illegally present in the United States, and transported them in furtherance of their violation of law, for the purpose of his own financial gain.
Valldovinos-Ramirez was also charged with illegal reentry into the United States, in violation of Title 8, United States Code, § 1326(a).
U.S. Attorney D. Michael Dunavant said, "Because the Department of Justice is the only agency that can prosecute violations of our sovereign immigration laws, it is critical that our work focus on criminal cases that deter and reduce illegality while promoting lawfulness in our immigration system. This is a high priority for the U.S. Attorney’s Office, and we will aggressively prosecute any persons who engage in unlawful smuggling, transportation, or harboring of multiple undocumented aliens to illegally enter the United States."
"Criminal networks who engage in illegal cross-border smuggling pose a security vulnerability to the U.S.," said Homeland Security Investigations New Orleans Special Agent in Charge Jere T. Miles. "Further, these groups routinely place profit over the well-being of their human cargo, which often has tragic results for those taking this dangerous, illegal path. HSI is committed to working with its federal, state and local partners to investigate and prosecute those who flagrantly violate U.S. law."
If convicted, Valldovinos-Ramirez faces up to five years in federal prison for each 1324 count; up to two years for the 1326 count and/or a $250,000 fine.
This case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations.
Assistant U.S. Attorneys Lauren Delery and Stephen Hall are prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
###
Federal Court Holds Mississippi Tax Return Preparer in ContemptRead the Press Release
A federal court in Jackson, Mississippi, held that Kavivah Branson, aka Kavivah Bradley, has violated a permanent injunction entered against her on July 3, 2014, which barred her from preparing tax returns for others.
Branson admitted, in documents filed with the court, that she had violated the injunction by directly or indirectly preparing returns for others. She also agreed to pay the United States a total of $55,000 as reimbursement of its investigation expenses and disgorgement of fees she received from refunds claimed on returns she prepared in violation of the injunction. That investigation was undertaken by the Tax Division as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns, and hold those who have continued to do so accountable for violating that ban.
The U.S. District Court for the Southern District of Mississippi ordered Branson to pay these amounts. Also, the court barred her from working at or maintaining any interest in any entity that offers tax preparation services.
The injunction barring Branson from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor her compliance with its orders.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County, New Jersey, Woman Charged with Role in $2 Million Moving Company Fraud ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was arrested and charged today with managing a variety of moving companies in New Jersey that systematically defrauded hundreds of customers, U.S. Attorney Craig Carpenito announced.
Farah Al-Ibrahim, a/k/a “Farah Alhomsi,” a/k/a “Farah Adam,” a/k/a “Farah Adams,” a/k/a “Sara Adams,” 38, is charged by complaint with one count of conspiracy to commit wire fraud. She made her initial court appearance today before U.S. Magistrate Judge Cathy L. Waldor and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Al-Ibrahim and her conspirators operated numerous moving companies that quoted customers “low-ball” price estimates for moves and then raised prices on the day of the move, after the goods were loaded and the customers were subject to the conspirators’ demands. Al-Ibrahim and her conspirators consistently, over a number of years and hundreds of moves, raised final prices for moves above the allowed increase from initial estimates as provided by federal regulations, including increases as high as 400 percent on the day of the move. The collective difference between the estimates and the final balances for the customers’ moves was approximately $2 million.
The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison, and a fine of $250,000, or twice the gross gain to the defendant or twice the gross loss to others, whichever is greater.
U.S. Attorney Craig Carpenito credited special agents of the Department of Transportation-Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Angel Melendez, New York Field Office, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Erie Man Pleads Guilty to Sex Trafficking Two Minor VictimsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of sex trafficking of a child and conspiracy to commit sex trafficking, United States Attorney Scott W. Brady announced today.
Thomas Patrick Petoff, 31, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from March 2015 to October 2015, Petoff and a co-defendant, Devonte Lucas, knowingly recruited, enticed, harbored, transported, provided, advertised and maintained two minor victims who engaged in commercial sex acts at the behest of Petoff and Lucas. Petoff’s illegal activity was ultimately stopped when members of the Millcreek Police Department observed Lucas transport a minor female to a Millcreek motel after the Millcreek officers, acting in an undercover capacity, had set up a meeting at the motel with the victim via an Internet advertisement that had been placed by Petoff.
Judge Cercone scheduled sentencing for April 8, 2019 at 3:00 p.m.. The law provides for a total sentence of life in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. As part of his plea, Petoff has agreed to a sentence of fourteen years in jail to be followed by ten years of supervised release.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Millcreek Police Department conducted the investigation that led to the prosecution of Petoff.
Erie Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Nathan Richard Kosmatine, 31, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Kosmatine distributed, received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for March 18, 2019 at 3:00 p.m. The law provides for a total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Kosmatine on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Kosmatine.
Erie County Man Sentenced to 12 Years in Prison for Child Pornography OffensesRead the Press Release
ERIE, Pa. - A former resident of North East, Pennsylvania, has been sentenced in federal court to 12 years in jail and 10 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Wesley Chase, 34.
According to information presented to the court, Chase distributed, received and possessed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana County District Attorney’s Office for the investigation leading to the successful prosecution of Chase.
Elkins man admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Oscar Willard Thomas, of Elkins, West Virginia, has admitted to a methamphetamine distribution charge, United States Attorney Bill Powell announced.
Thomas, also known as “Will Thomas,” age 46, pled guilty to one count of “Distribution of Methamphetamine.” Thomas admitted to selling methamphetamine in September 2016 in Randolph County.
Thomas faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crime Drug Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Dolores Diana M.B. Westfall Sentenced to Prison in Drug Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant DOLORES DIANA M.B. WESTFALL, age 37, from Yona, was sentenced in District Court to serve a 77-month term of imprisonment for Attempted Possession with Intent to Distribute Fifty Grams or More of Methamphetamine, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered five years of supervised release following imprisonment and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On July 27, 2017, the U.S. Postal Inspector, agents and task force officers with Drug Enforcement Administration intercepted a package in the mail. They discovered approximately 222.6 net grams of methamphetamine hydrochloride (“ice”) in the package. Westfall was also in possession of a methamphetamine pipe and a small Ziploc baggie. The evidence revealed that Westfall attempted to possess the drug with the intent to distribute it to another person. Westfall used her post office box to receive the ice. She expected to receive some of the drug as payment from the supplier.
U.S. Attorney Anderson stated, “I applaud law enforcement for their actions in combating sources of illegal drugs. This case demonstrates the benefits of effective partnerships by our federal and local agencies. Our office will continue to vigorously enforce drug laws in an effort to pare back the availability of drugs to users or potential users.”
This prosecution was the result of a joint investigation by the U.S. Postal Service and Drug Enforcement Administration. Assistant United States Attorney Rosetta San Nicolas prosecuted this case for the United States Attorney’s Office.
District Man Pleads Guilty to Federal Firearms Charge Following Gun Trafficking InvestigationRead the Press Release
WASHINGTON – Isaiah Green, 28, of Washington, D.C., pled guilty today to a federal charge stemming from an investigation into a gun trafficking scheme in the District of Columbia, announced U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Green pled guilty in the U.S. District Court for the District of Columbia to a charge of interstate travel in connection with engaging in the business of illegally dealing in firearms. The charge carries a statutory maximum of 10 years in prison. The Honorable Amit P. Mehta scheduled sentencing for Feb. 14, 2019.
The guilty plea followed an investigation by ATF, MPD, and the Virginia State Police into Green’s role in the purchase of significant quantities of firearms during the summer of 2018. Green and another individual were arrested on July 27, 2018, in the District of Columbia after allegedly purchasing four firearms at the Dulles Gun Show in Chantilly, Virginia. According to the government’s evidence, an additional five firearms, all with obliterated serial numbers, were recovered from an apartment where Green was living at the time.
According to the government’s evidence, beginning in or around June 27, 2018, Green and the other individual began accepting orders for firearms purchases from people residing within the District of Columbia. To fulfill the orders, the two traveled to various gun stores and pawn shops throughout Virginia. The other individual would fill out ATF forms and falsely assert that she was the intended owner of the firearm. Green could not purchase the firearms himself because he is prohibited under federal law from possessing firearms due to a prior domestic violence conviction.
After purchasing the firearms, the two traveled back to an apartment in Southeast Washington, where Green used a sanding tool to remove the serial numbers from the firearms so that the firearms could not be traced back to them after they were sold. The two would then illegally sell the firearms for a profit within the District of Columbia.
As part of the plea agreement, Green admitted that he and his co-defendant purchased 31 firearms for illegal resale in a one-month time period in 2018.
This case is being investigated by the ATF and MPD with the assistance of the Virginia State Police. It is being prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Defendant Pleads Guilty to Defrauding Investors in Binary Options and Cryptocurrency Scheme and Admits to Obstructing JusticeRead the Press Release
Earlier today in federal court in Central Islip, Blake Kantor, who formerly operated a binary options company known as Blue Bit Banc and Blue Bit Analytics (“BBB”), pleaded guilty to conspiracy to commit wire fraud. As part of his plea agreement, Kantor admitted to obstructing an investigation into his fraudulent scheme. When he is sentenced, Kantor faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The guilty plea was entered before United States Magistrate Judge Gary R. Brown.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the guilty plea.
“Kantor defrauded investors to enrich himself and then tried to cover his tracks by lying to the federal agents investigating the scheme,” stated United States Attorney Donoghue. “We will continue to protect the integrity of the financial marketplace by prosecuting to the fullest extent those who deceive the investing public and obstruct the pursuit of justice.”
According to court filings and facts presented at the guilty plea proceeding, in March 2014, Kantor established BBB, which sold binary options, a type of investment in which investors are promised an opportunity to be paid predetermined amounts based upon the price of securities, commodities or other investments at particular points in time. From approximately 2014 to 2017, Kantor and others solicited and took in approximately $1.5 million from more than 700 investors in BBB’s binary options. Kantor told investors that they could place binary option trades, or a BBB representative could do so for them, and that the predetermined profits promised them would be based on the actual prices of securities, currencies and other investments at particular points in time. However, Kantor did not inform the investors that a computer software program of BBB’s fraudulently altered data associated with binary options investments so that the probability of investors earning a profit favored BBB and disadvantaged investors. To further his scheme, Kantor directed that bank accounts—including one in the island nation of St. Kitts and Nevis—be opened using aliases and identifying information of others, making it more difficult to trace the funds that Kantor fraudulently took from investors. Kantor also converted BBB investments into ATM Coin, a worthless cryptocurrency that he misleadingly told investors was worth substantial sums of money.
In October 2017, after FBI agents informed Kantor that they were investigating his involvement in binary options, Kantor directed a co-conspirator to alter BBB customer lists. When interviewed by the FBI, Kantor falsely stated that he had not been involved in binary options since August 2013.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
BLAKE KANTOR (also known as “Bill Gordon”)
Age: 42
Fort Lee, New JerseyE.D.N.Y. Docket No. 18-CR-177 (SJF)
Counter-Protester Charged for Assaulting Police OfficerRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Brian Glantz, 23, of Glenside, Pennsylvania, was charged on Saturday by complaint with one count of assault on an officer in the performance of official duties, in violation of 18 U.S.C. § 111(a)(1), and the assimilated Commonwealth of Pennsylvania crime of aggravated assault on an officer in the performance of official duties, in violation of 18 U.S.C. § 13 and 18 Pa.C.S. § 2702(a)(3).
On November 17, 2018, a group identified as “We the People” received a permit and held a rally in Independence National Park. According to the complaint, approximately 50 people attended the event, and the group waved flags and made speeches. The complaint alleges that approximately 500 counter-protesters gathered at the event, yelling obscenities at both the permitted group and at state, local, and federal law enforcement officers. The complaint details that numerous law enforcement officers worked together to position themselves between the two groups to prevent a potentially violent confrontation. The complaint charges that the defendant pushed back at the officers and, while on Park property, punched a Philadelphia Police Department officer in the side of his face as he was in the performance of his duties; the defendant continued to resist the officers’ efforts to arrest him, kicking his legs and wrestling with the officers and park rangers.
“Assaulting a law enforcement agent – whether a federal, state, or local officer – is a crime that I take very seriously,” said U.S. Attorney McSwain. “There is no excuse for it. No matter who you are, if you assault an officer and there is federal jurisdiction, I will bring the full weight of my Office down upon you.”
The defendant has been held at the Federal Detention Center since Saturday. On Monday, the defendant appeared in United States Magistrate Court before the Honorable Elizabeth T. Hey and was released on a $15,000 bond with travel restrictions.
The case was investigated by the National Park Service with assistance from the Philadelphia Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Christopher Diviny.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Corrections Officer Arrested for Scheme to Smuggle Opioids into MCI-NorfolkRead the Press Release
BOSTON – A corrections officer at the Massachusetts Correctional Institute facility in Norfolk (MCI-Norfolk) was arrested today and charged in connection with conspiracy to smuggle Suboxone strips into the facility for an inmate.
Steven J. Frazer, 29, of Cumberland, R.I., was arrested today and charged in a criminal complaint with one count of conspiracy to possess a controlled substance with intent to distribute. Frazer, an employee of the Massachusetts Department of Correction, will appear this afternoon before Magistrate Judge Donald L. Cabell.
Beginning around Nov. 14, 2018, it is alleged that Frazer began arranging with a cooperating witness to smuggle Suboxone strips into MCI-Norfolk to sell to inmates. Suboxone is a Class III controlled substance used to treat heroin addiction, but some addicts abuse it to get high. It is coveted as contraband in prisons across the nation and particularly in New England.
According to court documents, around midnight on Sunday, Nov. 18, 2018, the cooperating witness met Frazer in a South Attleboro parking lot and provided him with 40 Suboxone strips, 24 pages of K2 (a synthetic cannabinoid, which is more powerful and more dangerous than marijuana), and $2,500 in cash. After the meeting – which was audio and video recorded by law enforcement – federal agents arrested Frazer.
The charge of conspiracy to possess a controlled substance with intent to distribute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Thomas A. Turco III of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions 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 the court of law.
Convicted Felon Sentenced to 15 Years for Possessing a FirearmRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 15 years in prison for felon in possession of a firearm.
“Keeping firearms out of the hands of convicted felons is a top priority,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This is a public safety and law enforcement safety issue that I am 100 percent committed to. We will continue to aggressively pursue these cases and work with our partners at the ATF to remove violent criminals like Mitchell from our communities.”
According to court documents, Sean Gregory Mitchell, 45, unlawfully possessed a firearm in June 2016, when Newport News police officers were on bike patrol at Mitchell’s apartment complex and detected the odor of marijuana. Officers subsequently obtained a search warrant for the apartment, and located a semi-automatic handgun with a loaded magazine, a small bag of marijuana, a scale, and three small bags of cocaine base.
This is Mitchell’s third federal conviction. He was previously convicted of felon in possession of a firearm in 1997, and distribution of cocaine base and use of a communication facility in the distribution of cocaine base in 2003 in federal court. Mitchell’s prior state convictions include assault and battery, trespassing, unlawful wounding, and possession of marijuana.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Megan Cowles prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-82.
Confederated Salish and Kootenai Tribes' Pharmacy settles claimsRead the Press Release
MISSOULA – The Confederated Salish and Kootenai Tribes’ Pharmacy and the U.S. Attorney’s Office have reached an agreement settling alleged pharmacy violations in which the pharmacy will pay a $95,520 civil penalty and take other steps to ensure compliance with federal law and Drug Enforcement Administration regulations, U.S. Attorney Kurt Alme announced.
The settlement agreement is the result of an inspection by the DEA for activity from March 2017 to March 2018. The DEA has the responsibility to inspect pharmacies or medical providers that dispense controlled substances to ensure they are complying with federal regulations. The regulations are designed to prevent the theft or diversion of controlled substances to unauthorized users.
The DEA conducted the inspection after it learned that approximately 2,500 oxycodone pills had been stolen or unaccounted for from the Tribes’ pharmacy in St. Ignatius, on the Flathead Indian Reservation. During the investigation, the DEA discovered significant violations of the regulations, including failing to adequately track records of the controlled substances in the pharmacy and failing to report the missing oxycodone pills to the DEA.
In addition to the $95,520 penalty, the pharmacy also must take numerous measures to ensure compliance in the future. The pharmacy must conduct annual evaluations of its compliance for three years and certify to the DEA that it is meeting all regulatory requirements. If it has future violations, the pharmacy will be subject to a judgment for the full potential penalty of $240,640 for the alleged violations.
“This settlement is an important step toward ensuring that opioids are properly controlled in the CSKT Pharmacy,” said U.S. Attorney Alme. “For the safety of the community, we need to ensure that the pharmacy is managed responsibly in the future. The penalty puts every pharmacy in Montana on notice that the U.S. Attorney’s Office and DEA will vigorously enforce controlled substance regulations to prevent diversion of the prescription opioids that are harming our communities.”
“We appreciate the Confederated Salish & Kootenai Tribes taking this issue seriously. It is our hope that this settlement and the tribe’s plan to bring the pharmacy into compliance with the Code of Federal Regulations requirements will prevent future diversion of controlled substances,” said Stacy Zinn-Brittain, DEA regional agent in charge for Montana.
Assistant U.S. Attorney Megan Dishong worked on the settlement agreement. The DEA’s Western Montana Tactical Diversion Squad investigated the case.
XXX
Colorado Man Sentenced for Driving Seven Pounds of Meth to KansasRead the Press Release
WICHITA, KAN. – A Colorado man was sentenced today to 108 months in federal prison for driving seven pounds of methamphetamine to Kansas, U.S. Attorney Steven McAllister said.
Hector Manuel Aguirre, 21, Edwards, Colo., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted that in February 2018 the Kansas Highway Patrol stopped his car in Ellis County. Investigators found more than seven pounds of methamphetamine in the car. Aguirre was transporting the drugs from California to Wichita.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Kimberly Rodebaugh for their work on the case.
Chinese national sentenced to nearly six years in prison for distributing opioids and other drugs that were shipped from China to the U.S. and ultimately to OhioRead the Press Release
A Chinese national who had been living in Massachusetts was sentenced to nearly six years in prison for distributing opioids and other drugs that were shipped from China to the United States and ultimately to Ohio.
Bin Wang, 43, was sentenced to 71 months in prison. He previously pleaded guilty to 10 counts, including drug conspiracy, conspiracy to import a controlled substance and drug distribution.
Wang operated Cambridge Chemicals, Wonda Science, and other companies from a warehouse in Woburn, Massachusetts.
Law enforcement began investigating shipments of carfentanil, fentanyl and other opioids in August 2016, after a series of fatal overdoses in Northeast Ohio, according to court documents.
That investigation led them to several Chinese web sites, which they learned were selling kilogram amounts of fentanyl and fentanyl analogues, which were shipped via private carriers such as FedEx. One of the web sites was used to purchase acetylfentanyl that caused the overdose deaths of two Summit County residents in 2015, according to court documents.
Beginning in November 2016, undercover agents began ordering opioids and other drugs from a Chinese drug trafficking organization. The agents wired money to China using Western Union or MoneyGram. Investigators learned the Chinese drug trafficking organization sent the drugs Wang in Massachusetts, who in turn mailed the drugs domestically, including to locations in Northeast Ohio, according to court documents.
Court documents detail numerous sales and shipments of drugs from China to Massachusetts to Ohio from November 2016 through July 2017.
The leaders of the Chinese drug organization, Fujing Zheng, aka Gordon Jin, and his father Guanghua Zheng, both reside in Shanghai, China. They have been charged with conspiracy to manufacture and distribute controlled substances, conspiracy to import controlled substances into the United States, operating a continued criminal enterprise, money laundering and other crimes.
“Wang was responsible for receiving shipments of deadly opioids and other drugs from China and then sending them to Ohio and throughout the United States,” said U.S. Attorney Justin Herdman. “We will continue to work with law enforcement to stop the steady stream of drugs from overseas that is killing our friends and neighbors.”
DEA Special Agent in Charge Timothy J. Plancon said: “The importation of opioids and other synthetic drugs from China has played a significant role in America’s current drug use epidemic. Over 60,000 people a year die from drug overdoses in this country, and halting all methods of drug trafficking, including by way of the Internet is a top priority of the DEA. This investigation makes clear that geographic and technological hurdles will not stop DEA and our partners from bringing to justice those responsible for the illegal distribution of drugs in the U.S.”
“As opioids and other dangerous drugs continue to plague our communities in Ohio, a unified law enforcement community is the only way to stem the tide of this dangerous and deadly epidemic,” said Homeland Security Investigations Special Agent in Charge Steve Francis. “In order to have a significant impact, these organizations must be attacked from the street-level dealer to the wholesale distributor.”
“This investigation is a great example of a collaborative effort of federal agencies and a local drug task force working together to identify and track down people and organizations that are responsible for the ever-increasing shipments of very powerful synthetic opiates into Ohio,” said Don Hall, director of the MEDWAY Drug Enforcement Agency.
This case is being prosecuted by Assistant U.S. Attorney Matthew J. Cronin following an investigation by the DEA, Homeland Security Investigations and the Medway Drug Enforcement Agency, a drug task force serving Wayne County.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking, money laundering and violent criminal organizations operating domestically and internationally. The principle mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, money laundering and violent criminal organizations and those primarily responsible for the nation’s drug supply.
Canadian Man Admits Attempted Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Ali Haider Pasha, age 23, of Cornwall, Ontario, Canada, pled guilty today to attempted illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert Dwyer, Customs and Border Protection (CBP) Port Director for the Massena, New York, Port of Entry.
Pasha, a citizen of Canada, was removed from the United States to Canada on May 10, 2018 following his November 2017 conviction for the felony offense of evidence tampering, in Clinton County, New York. When Pasha was removed from the United States, he was advised that he was prohibited from seeking to return to the United States for a period of 10 years. On September 8, 2018, Pasha was arrested by CBP Officers as he tried to enter the United States as a passenger in a vehicle at the Massena Port of Entry. A fingerprint check of Pasha resulted in the discovery of the prior removal. Pasha admitted that he attempted to enter the United States without permission following the May 2018 removal.
As a result of his conviction, Pasha faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Thomas J. McAvoy on March 7, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
California Resident Pleads Guilty to Filing False Tax Returns Which Failed to Report Secret German and Israeli AccountsRead the Press Release
A Beverly Hills, California, resident pleaded guilty today to filing false tax returns which did not report his offshore accounts in Germany and Israel and did not report the income earned on those accounts, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Nicola T. Hanna of the Central District of California.
According to the plea agreement and related court documents, Teymour Khoubian pleaded guilty to filing false tax returns for tax years 2009 and 2010 that failed to report foreign financial accounts in Germany and Israel, and failed to report income earned on those accounts. Between 2005 and 2012, Khoubian jointly owned multiple accounts at Bank Leumi in Israel with his mother that held between $15 million and $20 million. Additionally, since at least 2005, Khoubian also owned a foreign account at Commerzbank AG in Germany. Despite his ownership interest in these accounts and a legal requirement to declare all offshore accounts containing $10,000 or more, Khoubian prepared false tax returns for tax years 2005 through 2011 that did not fully disclose his foreign accounts, nor report all the interest income earned on those accounts. For instance, Khoubian’s Bank Leumi accounts generated interest income in excess of $4 million between 2005 and 2010, none of which was reported to the Internal Revenue Service (IRS). The total tax loss associated with the Bank Leumi accounts is approximately $ 1.2 million.
At least since 2009, Khoubian was aware of the IRS’s Offshore Voluntary Disclosure Program (the OVDP). The OVDP allowed U.S. taxpayers to voluntarily disclose their previously unreported foreign accounts and pay a reduced penalty to resolve their civil liability for not declaring foreign accounts to U.S. authorities. During 2011 and 2012, Bank Leumi requested that Khoubian sign a Form W-9 for U.S. tax reporting purposes. In an August 13, 2012, recorded telephone conversation with a banker at Bank Leumi, Khoubian stated that the reason he did not want to sign a Form W-9, was "because you have to pay half of it."
In 2012 and 2014, Khoubian knowingly made multiple false statements to IRS special agents investigating his foreign accounts, including falsely stating that the Bank Leumi accounts were not in his name, that he did not own a bank account in Germany from 2005 to 2010, that he closed his German bank account and moved all of that money to the United States, and that none of the money in his German bank account was moved to Israel.
As part of the plea agreement, Khoubian agreed to the entry of a civil judgment against him for an FBAR penalty in the amount of $7,686,004. Khoubian further agreed to pay an additional $612,310 in restitution to the IRS.
Khoubian faces a maximum of three years in prison for each of the tax counts to which he pleaded guilty, as well as monetary penalties and a period of supervised release.
This case is being prosecuted by Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci of the Justice Department’s Tax Division, with the assistance of Assistant United States Attorney Robert Conte of the U.S. Attorney’s Office for the Central District of California, and was investigated by the Internal Revenue Service-Criminal Investigation.
Buffalo Man, Convicted by A Federal Jury, Sentenced on Gun and Drug ChargesRead 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 Larry Willis, 33, of Buffalo, NY, who was convicted following a jury trial of possessing crack cocaine with intent to distribute, maintaining a drug involved premises, possessing firearms in furtherance of drug trafficking activities, and being a felon-in-possession of firearms and explosives, was sentenced to serve 210 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Laura A. Higgins and Paul E. Bonanno, who handled the trial of the case, stated that between November 2016 and December 1, 2016, Willis and co-defendant Isiah Pierce utilized two apartments inside 70 Henrietta Avenue, Buffalo, New York, to manufacture, package, and store quantities of crack cocaine, heroin, cocaine, fentanyl, and butyryl fentanyl, along with the proceeds from the sale of such substances. To protect their product and their proceeds, the defendants maintained multiple firearms and ammunition within each of the apartments.
During the execution of a search warrant in the lower apartment at 70 Henrietta Avenue, officers recovered crack cocaine, three firearms and ammunition, a digital scale with drug residue, packaging material, whisks, spoons, and cutting agents. A subsequent search of the upper apartment uncovered additional amounts of crack cocaine, a mixture of heroin and butyryl fentanyl, three handguns, and numerous rounds of ammunition.
The sentencing is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
Isiah Pierce is awaiting sentencing.
# # # #
Bridgeport Man Sentenced to Federal Prison for Illegally Possessing FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYESHON KING, 31, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by two years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on March 24, 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department conducted a court-authorized search of King’s Bridgeport residence and seized a loaded 9mm semi-automatic pistol and a loaded .40 caliber semi-automatic pistol that had been reported stolen in Bridgeport in 2015. Investigators also seized items used to process and package narcotics for street sale.
King’s criminal history includes a state conviction in May 2007 for attempted assault in the first degree. He received a sentence of 15 years of incarceration, suspended after three years, on that conviction.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
King has been detained since his federal arrest on July 13, 2017. On August 30, 2018, he pleaded guilty to one count of possession of firearms and ammunition by a convicted felon.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Dave Vatti.
Biloxi Man Gets 17 ½ Years in Prison for Possession with Intent to Distribute Methamphetamine and Possession of FirearmRead the Press Release
Gulfport, Miss – Julio Chantello Williams, 35, of Biloxi, was sentenced today by U.S. District Judge Sul Ozerden to a total of 211 months in prison followed by 5 years of supervised release, announced U. S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Williams received the maximum of 120 months in prison for being a felon in possession of a firearm and 211 months in prison for possession with intent to distribute methamphetamine. The sentences will run concurrently. Williams was also ordered to pay fines totaling $8,000.
In August 2017, Gulfport Police foot patrol checked a parked car with loud music to find Williams with a handgun and marijuana in his lap. Three months later in November 2017, Williams was hit by a car while walking. Biloxi Police found a handgun on the windshield of the car and 16 grams of methamphetamine in Williams’s pocket. Later in November and December of 2017, Mississippi Bureau of Narcotics and Homeland Security Investigations made undercover buys of methamphetamine from Williams.
Williams has prior state convictions for auto burglary, possession of controlled substances and 2 counts of transfer of controlled substances.
The Bureau of Alcohol Tobacco and Firearms, Homeland Security Investigations, Gulfport Police, Biloxi Police and the Mississippi Bureau of Narcotics investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Bayonne, New Jersey, Police Officer Sentenced to 42 Months in Prison for Using Excessive Force During Arrest, Filing False ReportRead the Press Release
Also Had Role in Fraudulent $20,000 Home Rehabilitation Loan Scheme
NEWARK, N.J. – A former Bayonne, New Jersey, police officer was sentenced today to 42 months in prison for using excessive force during an arrest, falsifying records in an attempt to conceal his conduct and helping a relative fraudulently obtain a home rehabilitation loan, U.S. Attorney Craig Carpenito announced.
Domenico Lillo, 48, of Bayonne, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with one count of deprivation of civil rights under color of law and one count of falsifying records to impede a civil rights investigation. Lillo also pleaded guilty to an information charging him with assisting in the filing of a false report to the U.S. Department of Housing and Urban Development (HUD) in connection with a federally funded home rehabilitation loan worth $20,000.
According to documents filed in this case and statements made in court:
On the early evening of Dec. 27, 2013, Lillo and other police officers from the Bayonne Police Department went to an address in Bayonne to arrest a man on a warrant from Sussex County. Lillo admitted that he struck the individual they were arresting in the head with a flashlight while the individual was handcuffed and not resisting arrest, injuring him. Lillo also admitted that he falsified a Bayonne Police Department Use of Force Report related to the arrest with the intent to impede an investigation into the case.
Lillo also admitted that on May 10, 2012, he aided a relative in preparing and submitted a fraudulent HUD application to get a federally funded rehabilitation loan on a home Lillo co-owned.
In addition to the prison term, Judge McNulty sentenced Lillo to three years of supervised release and ordered him to pay restitution of $20,000 to the City of Bayonne.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre of the U.S. Attorney’s Office Special Prosecutions Division, Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division, and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
Defense counsel: Frank Arleo Esq. and Thomas Cammarata Esq., West Orange, New Jersey
Anchorage Man Charged with Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a federal grand jury returned an indictment against Stuart Gregory Ravn, 30, of Anchorage, charging him with one count of sexual exploitation of a child – possession of child pornography. Ravn was arraigned this morning before Chief U.S. Magistrate Judge Deborah M. Smith, and was ordered detained pending trial.
The indictment alleges that on Oct. 23, 2018, Ravn knowingly possessed or accessed with intent to view, by means and facility of interstate and foreign commerce, matter that contained visual depictions of minors engaging in sexually explicit conduct, located on a computer or digital device. It is further alleged that the visual depictions of such conduct were of minors under the age of 12.
If the public has any further information or concerns about the activities of Ravn, please contact the FBI at (907) 276-4441.
If convicted, Ravn faces a statutory minimum of 10 years in prison 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 offense and the prior criminal history, if any, of the defendant. Ravn has a previous conviction with the State of Alaska for possession and distribution of child pornography.
The Anchorage Police Department (APD), the Federal Bureau of Investigation (FBI) and the State of Alaska Department of Corrections, Anchorage Adult Probations conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorneys Adam Alexander and Anne Veldhuis.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched 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 combines 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 www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alleged Mexican Drug Dealer Extradited to Southern District of IllinoisRead the Press Release
ST. LOUIS, Mo., – On Wednesday, November 7, 2018 Armando Medina-Hernandez was extradited from Mexico to the United States by DEA Special Agents and U.S. Marshals to face federal drug trafficking charges in the Southern District of Illinois.
According to the Superseding Indictment unsealed on November 16, 2018, Medina has been charged by a federal grand jury with conspiracy to distribute and possess with intent to distribute controlled substances. Medina is accused of conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 5 kilograms or more of a mixture or substances containing a detectable amount of cocaine to the Southern District of Illinois and elsewhere.
"This extradition is further evidence of the partnership between U.S. and Mexican law enforcement officials to bring narcotic traffickers to face the American justice system," according to DEA St. Louis Division Special Agent in Charge William Callahan. SAC Callahan and United States Attorney Steven D. Weinhoeft recently met with high-level Mexican Government counterparts in Chicago to discuss efforts to combat Mexican drug trafficking organizations supplying the Greater St. Louis Metropolitan area and Southern Illinois. "This extradition is the result of an international partnership where U.S. and Mexican law enforcement officials are a unified force committed to combat international drug trafficking," U.S. Attorney for the Southern District of Illinois Steven D. Weinhoeft said. "The US Attorney’s Office is committed to identifying and prosecuting offenders who directly impact the St. Louis Metropolitan area and Southern Illinois, even when we have to cross international borders to apprehend them."
SAC Callahan and US Attorney Weinhoeft credit the DEA agents and prosecutors who tracked the source of supply of the drugs to Mexico. "We are seeing record heroin and fentanyl deaths throughout the St. Louis Metro region and methamphetamine continues to plague the Midwest," explained SAC Callahan. "In this case, our investigation tracked the source of this poison to Mexico, so that is where we went to begin to infiltrate this specific organization. The extradition of Medina back to the Southern District of Illinois is the first step in that direction."
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
A Federal Grand Jury Returns a 10-Count Indictment on Local Man who Robbed Six Mid-South BusinessesRead the Press Release
Memphis, TN – A local man has been indicted for six counts of Hobbs Act robbery and four counts of brandishing a firearm during and in relation to a crime of violence. U.S. Attorney D. Michael Dunavant announced the indictment today.
On November 15, 2018, a federal grand jury returned a ten-count indictment against Brandon Albonetti, 23, for the robberies and attempted robberies of several CVS stores and one Burger King during the summer of 2018.
The robberies occurred in Memphis, between June 21, 2018 and August 14, 2018. In a majority of these robberies, Albonetti entered the respective stores armed with a pistol, taking cash and other items from the registers and safes. In two robberies, Albonetti displayed a knife, as he demanded cash. The defendant robbed the CVS located at 786 North Germantown Parkway twice and the CVS at 5055 Stage Road, three times during this time period.
On August 14, 2018, Memphis Police officers quickly responded and apprehended Albonetti as he tried to flee the scene of the CVS on Stage Road, which he had just robbed. The defendant used his vehicle to strike two patrol cars as authorities positioned their vehicles to keep the suspect from escaping.
U.S. Attorney D. Michael Dunavant said, "We must make it painfully clear that violent crimes committed with firearms have severe consequences, and this indictment does just that. For his repeated and brazen criminal conduct, this violent offender faces up to life in federal prison. We are FED UP with gun crime in Memphis."
If convicted, the defendant faces up to 20 years imprisonment on each robbery count. If convicted of the firearms charges, the defendant faces up to life imprisonment.
This case was investigated by the FBI Safe Streets Task Force; Memphis Police Department and the Shelby County District Attorney General’s Office.
Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
###
2nd SKS Associates Doctor Pleads Guilty to Unlawfully Dispensing Controlled Substances, Health Care FraudRead the Press Release
PITTSBURGH, PA - A prescribing physician with SKS Associates, an opioid treatment facility located in Johnstown, Pa., waived indictment and pleaded guilty in federal court to charges of distribution of controlled substances, conspiracy to distribute controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Ruth D. Jones, 57, of Bedford, Pa., pleaded guilty to three counts before Chief United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Jones illegally distributed prescriptions for buprenorphine, a Schedule III controlled substance. She also pleaded guilty to a conspiracy with co-defendant Dr. Michael Cash to create and distribute illegal prescriptions for buprenorphine. In addition, Jones pleaded guilty to health care fraud for allegedly submitting fraudulent claims to Medicare, for payments to cover the costs of the unlawfully prescribed buprenorphine.
According to the government, Jones and Cash saw on average 43 patients every day for periods lasting no more than three to five minutes. Moreover, the government advised the court that upon execution of a search warrant, investigators located more than 2,000 blank, pre-signed prescriptions with Jones’ or Cash’s signatures.
Judge Bissoon scheduled sentencing for March 20, 2019 at 10 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court placed Jones on bond.
Assistant United States Attorneys Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
18 November 2018
Wayne County Man Sentenced to Prison for Sexually Abusing a Minor in International WatersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that on November 15, 2018, United States District Court Judge Joseph R. Goodwin sentenced Joshua Morrison, 21, of Wayne County, to 37 months in prison for sexually abusing a minor while aboard a cruise ship in international waters. Morrison was ordered to serve 10 years on federal supervised release after completion of his prison term and will also be required to register as a sex offender.
“Egregious crime,” said United States Attorney Mike Stuart. “Child sex offenders belong behind bars and that’s where Morrison is headed.”
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Emily Wasserman is handling the prosecution.
This case was prosecuted as part of the Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
16 November 2018
Wright State University Agrees to Pay Government $1 Million for Visa FraudRead the Press Release
DAYTON – Wright State University’s Board of Trustees has accepted responsibility for visa fraud offenses on behalf of the university and agreed to pay the federal government $1 million.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), and James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of the Inspector General, announced the agreement entered into today.
According to the agreement, between 2010 and 2013, Wright State entered into several sponsored research contracts with Webyoga, Inc., a privately held, Dayton-based software company. As part of the contracts, Wright State would employ software engineers, obtain H-1B visas for the employees, and pay their respective salary and benefits as employees of the university.
The H-1B visa program allows companies in the United States to temporarily employ foreign workers in occupations that require highly specialized knowledge and a bachelor’s or higher degree in a specific specialty. As an institute of higher learning, Wright State was “ cap exempt” from limits on the number of H-1B visas it could obtain, unlike other types of organizations.
Wright State University employed 24 foreign employees – who were selected and approved by Webyoga – through H-1B visas. The university used its “cap exempt” status to apply for the visas. In doing so, Wright State submitted a signed employment offer letter from the university indicating the visa employee would be working for the university and under the supervision of university employees.
Wright State did not disclose in the visa applications that it knew the employees would actually be working for Webyoga. In fact, the university further specified the visa employees would not be working offsite, but would be physically working on the school’s campus in Fairborn.
Rather than develop the software programs named in the contracts, the visa employees worked as consultants on behalf of Webyoga in various cities throughout the country, including Atlanta, Orlando and New York City.
Over the course of the contracts, Wright State invoiced Webyoga for more than $1.8 million for the fees associated with the employees’ visas, the employees’ salaries and benefits, and administrative costs for the university.
Between 2010 and 2015, Wright State also entered into similar arrangements with other companies wherein it would apply for H-1B visas for individuals, knowing the individuals were going to work on a routine basis for another company that would then reimburse the school.
“Visa fraud in higher education undermines the integrity of our immigration laws,” said U.S. Attorney Glassman. “Today’s agreement ensures that will not happen again at Wright State. It also serves as a warning to other institutions that participate in the H-1B visa program that fraud in the administration of the program leads to consequences.”
“The federal agreement ordering Wright State University to admit to H1-B visa fraud violations and pay a $1 million dollar fine is the largest sanction imposed by HSI in Ohio relating to a visa-fraud investigation,” said Steve Francis, special agent in charge for HSI in Michigan and Ohio. “This outcome should serve as a warning to entities who may be seeking to exploit the U.S. Visa process.”
“Wright State University’s agreement to pay $1 million to the Government is a result of a visa fraud investigation that found the university grossly misused the H1-B visa cap exemption. We will continue to work with our law enforcement partners to vigorously pursue those who defraud worker visa programs for their own personal gain,” stated James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Wright State University acknowledges that the placement of H-1B visa employees with other companies and in locations other than Fairborn violated the terms of their visa applications. As a result, the companies who were subject to the numerical H-1B visa limitation were able to use H-1B employees through their contracts with Wright State.
Upon being notified by the U.S. Attorney’s Office of the federal investigation, the school’s Board of Trustees immediately addressed the H-1B visa employment issues by removing the faculty and employees responsible for the contracts. This included restructuring key departments such as the General Counsel’s Office and the Department of Compliance in order to insure all existing and future H-1B employee applications comply with all federal laws and regulations.
Glassman added: “Several factors were important in the decision to resolve the matter with Wright State by agreement, rather than prosecution. These factors include Wright State’s immediate cooperation upon being notified by federal authorities of the investigation, the removal or demotion of the responsible employees, Wright State’s remedial measures, including the university’s commitment to audit and compliance, and consideration of the Wright State student body’s wellbeing as part of the public interest.”
The University will pay the federal government $1 million in three installments. The first of those installments is due within 60 days and the second is due within 12 months. The final installment must be paid within 12 months of the second payment.
# # #
Woman Behind Dixon, Vallejo Movie Studio Scams Sentenced to 6.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Carissa Carpenter, 55, formerly of Malibu, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six years and six months in prison and ordered to pay $3,642,755 in restitution in connection with her conviction for mail fraud and lying to a federal agent, U.S. Attorney McGregor W. Scott announced.
According to court documents, from 1997 until October 24, 2014, Carpenter represented to investors and others that she had a project to build a movie studio in Northern California. As a result of the scheme, investors, firms who did work for Carpenter, and municipalities collectively lost millions on the project.
According to her plea agreement, Carpenter claimed that her projected movie studio complex was supported by well-connected people in the entertainment industry and that she had invested hundreds of millions of dollars of her own money in the project. She also claimed that she had arranged financing for the project but needed investment or bridge loans until the alleged financing was complete. The purported locations of the project varied: El Dorado Hills, north of the Sacramento International Airport in Sutter County, Lathrop, the former naval base on Mare Island in Vallejo, and Dixon, among other places. Additionally, Carpenter represented that reputable architecture, construction, design, and public relations firms were involved in the project, and that she had or was in the process of finalizing the purchase of the land where the studio would be built. As a result, investors gave Carpenter millions of dollars to invest in her studio project.
In fact, Carpenter used investor money to fund her personal expenses and extravagant lifestyle. Contrary to her claims, the Hollywood people were not involved in the project at all or had little involvement. Similarly, the architecture, construction, design, and public relations firms were not involved or had done only preliminary work on the project. Carpenter also did not own or purchase property for the studio.
Further, during the investigation in July 2013, Carpenter told an FBI agent that she told investors that she was going to use their money for personal expenses and that she had used 50 to 75 percent of investor money for the project. These statements were false.
This case was the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust prosecuted the case.
Wilmington Man Sentenced to 252 Months in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that United States District Judge James C. Dever III sentenced JOAQUIN R. ORTEGA, 36, of Graham, North Carolina, to 252 months imprisonment followed by 60 months of supervised release.
ORTEGA was charged in a five-count Indictment that was issued by the grand jury for the Eastern District of North Carolina on January 12, 2017. The indictment charged him with multiple drug trafficking counts relating to the distribution of crystal methamphetamine and with firearms charges relating to drug trafficking.
In 2015 and 2016, United States Drug Enforcement Administration (DEA) investigated a drug trafficking organization (DTO) that primarily operated in Virginia and North Carolina. The DTO was known to distribute large quantities of crystal methamphetamine through multiple distribution points in both Virginia and North Carolina. On September 22, 2016, the DEA and local law enforcement ordered five (5) pounds of crystal methamphetamine from a member of the DTO who lived in Alamance County, North Carolina. When the ordered methamphetamine was being delivered, law enforcement observed ORTEGA and four (4) other individuals in separate vehicles meet the undercover informant in a parking lot before completing the deal. Law enforcement arrested ORTEGA and the other four individuals with whom ORTEGA was working with to make the delivery.
At sentencing, the Court found that ORTEGA was the leader of the DTO who was responsible for supplying and distributing large quantities of crystal methamphetamine throughout the Southeastern United States.
This case was brought by the United States Attorney’s Office through partnership with the Clayton Police Department, Alamance County Sheriff’s Office and the United States Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Brad Knott.
Wilmington Man Sentenced to 190 Months in Prison for Drug Trafficking OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Chief United States District Judge Terrence W. Boyle sentenced TALIH RIK ANTHONY REEVES, 36, of Wilmington, North Carolina, to 190 months imprisonment, followed by 48 months of supervised release.
REEVES was charged in a ten-count Indictment that was issued by the grand jury for the Eastern District of North Carolina on February 22, 2018. The indictment charged him with multiple drug trafficking counts relating to the distribution of heroin, powder cocaine, and cocaine base crack. All of the charged crimes took place in Wilmington, North Carolina.
In early 2017, the Drug Enforcement Administration (DEA) and Wilmington Police Department conducted multiple controlled purchases of cocaine and cocaine base crack from REEVES and individuals who worked with REEVES. After these controlled purchases and many hours of surveillance, law enforcement took down the REEVES organization on May 25, 2017. In the take down, law enforcement made multiple arrests at two residences, and recovered significant quantities of heroin, cocaine, firearms and cash. REEVES was arrested at a Wilmington Motel where agents recovered over 14,000 bindles of heroin, nearly 700 grams of cocaine, and $19,500.00 in U.S. currency.
This case was brought by the United States Attorney’s Office through partnership with the Wilmington Police Department and the United States Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Brad Knott.
Whitinsville Woman Charged with Conspiring to Distribute AdderallRead the Press Release
BOSTON – A Whitinsville woman was charged in federal court in Boston with multiple drug offenses relating to a conspiracy to distribute the amphetamine Adderall.
Meghan Giacomuzzi, 36, was charged by Information with one count of conspiracy to distribute and to possess with intent to distribute Adderall and six counts of distributing and dispensing Adderall.
According to court documents, Giacomuzzi conspired with others between approximately October 2016 and February 2018 to distribute Adderall, an amphetamine, for uses other than a legitimate medical purpose and not in the usual course of medical practice.
The charge of conspiracy to distribute, dispense, and possess with intent to distribute Adderall carries a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. The charge of distributing, dispensing, and possessing with the intent of distributing Adderall also carries a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.