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Thursday 11 October 2018
Mission Man Charged with Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Brandon Jones, age 24, was indicted on August 13, 2018. He appeared before U.S. Magistrate Judge Veronica Duffy on October 10, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 16, 2018, Jones knowingly failed to appear for a scheduled hearing in federal court which he was ordered and required to appear at.
The charge is merely an accusation and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Jones was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Michigan man indicted for attempting to engage in sex acts with a childRead the Press Release
A Michigan man was indicted for attempting to engage in sex acts with a child.
Riley Thomas Griffin, 21, of Monroe, Michigan, was indicted on one count of traveling with intent to engage in sexual conduct with a minor and one count of receiving and distributing child pornography.
Griffin received and distributed numerous images of minors engaged in sexually explicit conduct. This took place in September, according to the indictment.
He also sent the images to an undercover agent and corresponded with this undercover agent about traveling from Michigan to Ohio to engage in sex acts with the undercover agent’s purported 9-year-old daughter, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, in Toledo, Ohio. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican National Sentenced for Meth Trafficking, Illegally Reentering the United StatesRead the Press Release
KANSAS CITY, Mo. – A Mexican national was sentenced in federal court today for methamphetamine trafficking and for illegally reentering the United States after having been deported three times.
Emilio Pena-Castro, 33, a citizen of Mexico residing in Kansas City, Kan., was sentenced by U.S. District Judge Gary A. Fenner to 10 years and one month in federal prison without parole.
On April 24, 2018, Pena-Castro pleaded guilty to possessing methamphetamine with the intent to distribute and to illegally reentering the United States after having been deported.
Pena-Castro was arrested on Sept. 9, 2017, following a traffic stop by a Missouri State Highway Patrol trooper. Pena-Castor, who was driving a 2003 Chevrolet Trailblazer, was stopped for speeding on I-29 near mile marker 58 in Missouri. Pena-Castro had no driver’s license and there was an active felony arrest warrant issued by the Maricopa County, Ariz., Sheriff’s Department.
During a search of the vehicle, officers seized a plastic bag that contained approximately 369.3 grams of methamphetamine concealed in the roof of the Trailblazer.
Pena-Castro was removed from the United States in March 2012 after being arrested in Phoenix, Ariz., for the offenses of aggravated assault, aggravated assault domestic violence – impede breathing, kidnap – apprehension of injury, and unlawful imprisonment. In August 2012 he was arrested in Arizona for offenses including possession/use weapon in drug offense, marijuana- transport and/or sell, and marijuana – possess/use. He was again removed from the United States. In October 2014, Pena-Castro was encountered at a residence in Phoenix in connection with an investigation regarding possible human smuggling activities. Federal agents seized approximately two kilograms of methamphetamine from the residence. Pena-Castro was convicted of illegally reentering the United States and was again removed to Mexico in January 2012.
This case was prosecuted by Special Assistant U.S. Attorney Kim Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Missouri State Highway Patrol.
Member of Large Drug Trafficking Organization Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced JERMAINE CHRISTOPHER PLEASANT a.k.a. “Plat Plat,” age 36, of Donaldsonville, Louisiana, to 80 months in federal prison following his convictions for conspiracy to distribute and possess with the intent to distribute heroin and unlawful use of communications facilities. The Court further sentenced PLEASANT to 5 years of supervised release following his term of imprisonment.
PLEASANT was charged in an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas. The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges. To date, investigative efforts have resulted in the seizure of over one and a half kilograms of heroin, substantial amounts of methamphetamine, crack cocaine, and oxycodone. Authorities have also seized seven firearms, over $314,000 in drug proceeds, and three vehicles allegedly used in the drug trafficking venture: a 2013 Porsche 911, a Mercedes CLS550, and a GMC Hummer.
From September 22, 2015 to April of 2016, PLEASANT conspired with eleven additional members of the drug trafficking organization to distribute in excess of 100 grams of heroin, in the Middle District of Louisiana, as set forth in the Indictment. As part of the conspiracy, Jason Muse purchased kilogram quantities of heroin from sources in Texas and then distributed the heroin to others in Baton Rouge and Ascension Parish. PLEASANT bought heroin from Muse to sell to others in and around Ascension parish.
To further the investigation into the organization’s drug trafficking activities, agents conducted court authorized interceptions of J. Muse’s wire and electronic communications. Through these interceptions, investigators learned that PLEASANT used telephones in furtherance of the conspiracy to distribute and possess with the intent to distribute heroin.
U.S. Attorney Fremin stated, “Thanks to the hard work of my office and our federal, state, and local law enforcement partners, we were able to remove this drug dealer from our streets with a significant jail sentence. We will continue to use our combined resources to keep dangerous drugs and drug dealers out of our communities.”
“Federal and local law enforcement have successfully collaborated in order to put this drug dealer in jail for 80 months as a result of his desire to supply the citizens in and around Ascension Parish with heroin. This successful prosecution should put others who engage in this type of criminal activity on notice: If you sell drugs, you will face federal charges and a lengthy prison sentence,” said DEA Assistant Special Agent in Charge Brad L. Byerley.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper pleaded guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Gary Herman, 45, of Chester, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 17, 2018. Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 months in prison. Herman was arrested on June 27, 2019, and subsequently released on conditions.
Herman was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Herman earned $227,826, which included approximately $63,053 in overtime pay.
Herman was paid for overtime shifts that he did not work at all or from which he left early. Herman concealed his abuse by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts. On multiple occasions Herman fabricated bogus citations, copying the driver information from citations that he had issued months earlier, in order to be paid for overtime that he did not work at all. In total, Herman collected $12,468 for overtime that he did not work.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Herman is the third Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, pleaded guilty, and on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree, pleaded guilty. Three other Troopers have been charged: on June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. On July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was charged.
Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 months in prison. The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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 Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao, Mark Grady, and Neil Gallagher of Lelling’s Criminal Division are prosecuting the case.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manhattan U.S. Attorney Announces Charges Against 5 Doctors and 2 Other Medical Professionals for Illegally Distributing OxycodoneRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), Scott Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), James P. O'Neill, Commissioner of the New York City Police Department (“NYPD”), and Mark G. Peters, Commissioner of the New York City Department of Investigations (“DOI”), announced today the unsealing five Indictments and a criminal Complaint in Manhattan federal court charging a total of 10 defendants with illegally distributing oxycodone.
U.S. Attorney Geoffrey S. Berman said: “These doctors and other health professionals should have been the first line of defense against opioid abuse, but as alleged in today’s charges, instead of caring for their patients, they were drug dealers in white coats. They hid behind their medical licenses to sell addictive, dangerous narcotics. This Office will do everything in its power to bring to justice anyone responsible for fueling the opioid epidemic that has taken so many lives.”
DEA Special Agent-in-Charge James J. Hunt said: “From drug cartels to street distributors, law enforcement is targeting all levels of drug traffickers amidst the worst drug crisis in American history. The worst villains in the fight against drug abuse are doctors whose criminal actions fuel addiction and overdoses. As a result of separate investigations from three DEA offices, five doctors, a pharmacist, a nurse practitioner and three associates have been arrested for their role in distributing millions of unnecessary oxycodone pills, allegedly. SAC Hunt commends the men and women from DEA’s Tactical Diversion Squads, our law enforcement partners and Southern District of New York for their commitment and hard work.”
IRS-CI Special Agent-in-Charge James D. Robnett said: “Medical professionals and others callously placed individuals in harm’s way simply because of greed. It takes a special kind of person to prey on the sick and vulnerable. The special agents of IRS Criminal Investigation will continue their mission to disrupt the flow of ill-gotten gains from these criminals.”
HHS-OIG Special Agent-in-Charge Scott Lampert said: “These individuals allegedly engaged in a greed-fueled scheme that put lives at risk and callously contributed to the opioid epidemic that continues to plague our society. These charges should serve as a warning to medical professionals that act like drug dealers and profit off of the vulnerable individuals they should be helping. Along with our law enforcement partners we are committed to ending the illegal distribution of opioids in this country and protecting the public’s health and welfare.”
NYPD Commissioner James P. O’Neill said: “Our entire country is suffering through an opioid abuse crisis, and we need to do everything we can to save as many lives as possible. We need to help people from falling into a black hole of addiction and fatal overdoses. We have to push New York City and our nation to thrive, and to turn this epidemic around. A good step in that direction is to investigate and put away the criminals who have so clearly betrayed their professional oaths – who have put illegal profits above their own integrity, and above the well-being of their fellow man. I commend each of our law enforcement partners on the Drug Enforcement Task Force, and all the New Yorkers who alert the police when they suspect criminality. This is how each of us – cops, prosecutors, and all the people we serve – are sharing the responsibility for public safety. And this is how we are making our way forward.”
DOI Commissioner Mark G. Peters said: “These joint investigations demonstrate the scourge that opioid abuse has on our community and the emphatic response from law enforcement: Any individual who seeks to promote prescription fraud and drug abuse will be exposed, arrested and prosecuted. DOI stands firmly with its federal partners on this serious issue and we will continue to work together to stop this crime and save lives.”
According to the allegations in the five Indictments and one Complaint unsealed today: [[1]]
DANTE A. CUBANGBANG, JOHN F. GARGAN, MICHAEL KELLERMAN, and LOREN PIQUANT, who together operated a medical clinic in Queens, were arrested yesterday evening and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, CUBANGBANG, a physician, and GARGAN, a nurse practitioner, prescribed over 6 million oxycodone pills to individuals they knew did not need the medication for any legitimate medical reason. CUBANGBANG and GARGAN prescribed more than twice as many oxycodone pills that were paid for by Medicare and Medicaid than the next highest prescriber in New York. CUBANGBANG and GARGAN doled out these prescriptions during office visits that lasted no more than a few minutes and involved little to no physical examination. Together with KELLERMAN and PIQUANT, who worked in the clinic and recruited patients, the defendants collected more than $5 million in all-cash office visit fees, which they laundered and divided amongst themselves.
CARL ANDERSON, a Staten Island physician, and ARTHUR GRANDE were arrested yesterday evening and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, ANDERSON prescribed nearly a million oxycodone pills to patients he knew had no legitimate medical need for the medication, including GRANDE, who sold the pills on the streets of New York. ANDERSON often saw his patients, some of whom displayed visible signs of drug addiction, without appointments and with little notice, in the middle of the night, and required that they pay hundreds of dollars in cash for each prescription. Noisy crowds of pill-seeking patients often gathered outside of ANDERSON’s office and in his waiting room, prompting occasional 911 calls from neighbors. Even after some of ANDERSON’s patients died of drug overdoses, he did not alter his prescribing practices.
ANTHONY PIETROPINTO, a psychiatrist residing in Manhattan, was arrested this morning and will be presented today before Magistrate Judge James L. Cott. According to the allegations in the Complaint unsealed today in Manhattan federal court, PIETROPINTO wrote thousands of medically unnecessary oxycodone prescriptions in exchange for $50 to $100 in cash per visit. PIETROPINTO wrote these prescriptions to drug-addicted individuals, including one patient who overdosed on drugs, and who had previously been prescribed by PIETROPINTO both oxycodone and naloxone, a medication used to block the effects of opioid overdoses, because PIETROPINTO was aware of, but disregarded, that patient’s addiction issues. PIETROPINTO saw these patients in a rented office space after hours, and instructed his patients to not fill prescriptions at large chain pharmacies because pharmacists at those pharmacies would call and question PIETROPINTO about why he wrote prescriptions for large amounts of oxycodone.
NKANGA NKANGA, a Staten Island physician, was arrested this morning and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, in exchange for cash payments, NKANGA wrote thousands of oxycodone prescriptions for patients, some of whom displayed visible signs of drug addiction, without conducting any physical examination, or even seeing them in an examination room. NKANGA also wrote prescriptions in the names of patients who did not even visit his medical office. On one occasion, for instance, NKANGA asked a patient, “how many people are you representing today,” and then wrote prescriptions in the names of people, even though three were not present. NKANGA regularly prescribed over 100 oxycodone pills per patient per month until July 2018 when he reduced all patients’ monthly allotment, telling one patient he was “very worried” about scrutiny from law enforcement.
NADEM J. SAYEGH, a physician with offices in the Bronx and Westchester, was arrested this morning and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, SAYEGH maintained a corrupt relationship with a co-conspirator, issuing oxycodone prescriptions in his name, variations of his name, his family members’ names, and the names of other individuals in exchange for thousands of dollars in cash, expensive dinners, high-end whisky, cruises, and all-expense-paid trips. SAYEGH wrote some of these prescriptions, for which there was no legitimate medical purpose, for individuals who did not visit his medical office, including a patient who was overseas and another patient who was incarcerated.
MARC KLEIN, a pharmacist in White Plains, was arrested this morning and will be presented in Manhattan federal court. According to the allegations in the Indictment unsealed today, KLEIN filled oxycodone prescriptions that he knew were illegitimate, including prescriptions filled by a customer in multiple variations of his name and date of birth, and prescriptions filled in the names of individuals who never were present in the pharmacy. KLEIN filled thousands of these oxycodone prescriptions, “fronted” controlled substances, and made false reports to New York State authorities, in exchange for cash payments and a vacation. KLEIN admitted, in substance, that he and his employees could be called “licensed drug dealers” because “oxy pays the bills” at KLEIN’s pharmacy.
* * *
CUBANGBANG, 50, of Franklin Square, New York, GARGAN, 62, of Manhattan, New York, KELLERMAN, 54, of Queens, New York, and PIQUANT, 37, of Bronx, New York, have been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison. CUBANGBANG, GARGAN, and KELLERMAN are also charged with one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
ANDERSON, 57, of Staten Island, New York, and GRANDE, 53, of Staten Island, New York, have been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison.
PIETROPINTO, 80, of Manhattan, New York, has been charged in a Complaint with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison, and two counts of distribution of controlled substances, each of which carries a maximum sentence of 20 years in prison.
NKANGA, 65, of Staten Island, New York, has been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison, and four counts of distribution of controlled substances, each of which carries a maximum sentence of 20 years in prison.
SAYEGH, 64, of Yonkers, New York, has been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison; one count of distribution of controlled substances, which carries a maximum sentence of 20 years in prison; one count of health care fraud, which carries a maximum sentence of 10 years in prison; making false statements, which carries a maximum sentence of five years in prison; and aggravated identity theft, which carries a two year mandatory minimum prison sentence to be served consecutive to any other term of imprisonment.
KLEIN, 47, of White Plains, New York, has been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison, and 14 counts of distribution of controlled substances, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by their respective judges.
Mr. Berman praised the investigative work of the DEA Tactical Diversion Squads in New York, Long Island and Newark as well as HHS, DOI and IRS. DEA’s Tactical Diversion Squad, New York (Group TDS-NY) comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services and New York City Department of Investigation. DEA’s Long Island Tactical Diversion Squad (LIDO –TDS) comprises agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, Suffolk County Police Department, Port Washington Police Department and Internal Revenue Service. Newark Tactical Diversion Squad (Newark-TDS) comprises agents and officers from the DEA, Elizabeth Police Department, Essex County Sheriff’s Office, Toms River Police Department, Clinton Police Department, West Orange Police Department, Pohatcong Police Department, Long Branch Police Department, and Marlboro Police Department. Assistance was also provided by the Yonkers Police Department and Greenburgh Police Department.
Parts of this cases were conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
These cases are being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Michael Krouse and Louis Pellegrino are in charge of the prosecution in United States v. Cubangbang et al., Assistant U.S. Attorneys Stephanie Lake and Nicolas Roos are in charge of the prosecution in United States v. Pietropinto, and Assistant U.S. Attorney Nicolas Roos is in charge of the prosecutions in United States v. Anderson et al., United States v. Nkanga, United States v. Sayegh, and United States v. Klein.
The charges contained in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and Complaint, and the description of the Indictments and Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced in Connection with Gems and Gold Corner Jewelry Store Armed RobberyRead the Press Release
St. Thomas, USVI – Devon Davis, 28, of St. Thomas, was sentenced today for his role in the armed robbery of the Gems and Gold Corner jewelry store, located on the St. Thomas waterfront, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Curtis V. Gomez sentenced Davis to 61 months in prison for conspiracy to commit Hobbs Act robbery, three years of supervised release, a $100 special assessment, and ordered him to perform 400 hours of community service.
On March 5, 2018, Davis pleaded guilty to conspiring to commit a Hobbs Act robbery of Gems and Gold Corner Jewelry Store on St. Thomas, on September 16, 2013. According to the plea agreement, Davis and others conspired to rob the store and brandish weapons to threaten and intimidate store employees, and four of the individuals fled the store with merchandise. Davis rented a room at a guesthouse for four coconspirators prior to the robbery and drove the getaway car after the robbery.
Davis and coconspirators were ordered to pay restitution in the amount of $31,027.88 to Gems and Gold Corner and $130,322.12 to Dorchester Insurance.
This case is a result of an investigation conducted by the Federal Bureau of Investigation and the Virgin Islands Police Department and was prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
Lima man indicted for child pornography crimesRead the Press Release
A Lima man was indicted on child pornography charges.
Christopher L. Frater, 41, was indicted on one count of receipt and distribution of child pornography. He allegedly received numerous images of child pornography in 2017 and 2018.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
La Plata County Inmate Sentenced for Conspiracy to Commit Bank Fraud and Money LaunderingRead the Press Release
DURANGO –Anthony Ryan Lopez, age 30, was sentenced by U.S. District Court Judge Robert E. Blackburn yesterday to serve 24 months incarceration followed by three years of supervised release and ordered to pay restitution of $98,902.76. Lopez pled guilty on June 28, 2018. The sentence was announced by U.S. Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.
According to the information and plea agreement, Lopez and three co-conspirators, a/k/a The Fraud Squad, routinely committed criminal acts in order to unlawfully obtain credit card numbers and personal identifying information and used that information to fraudulently obtain goods or services.
On October 11, 2015, Durango Police officers arrested Lopez and took him to the La Plata County jail.
Throughout October and November of 2015, each inmate at the jail had an inmate account, which they were able to use for expenses incurred in the jail, such as commissary items and phone calls. The jail also permitted inmates to issue checks drawn against their inmate accounts. Lopez learned that non-inmates could deposit money into inmate accounts using an online kiosk. The kiosk permitted users to deposit funds to an inmate’s account using credit card information.
Between October 12, 2015, and November 23, 2015, Lopez conspired and agreed with his co-conspirators to fraudulently enter stolen personal identifying information and stolen credit card information on the kiosk website in order to deposit funds into Defendant Lopez’s inmate account and other inmates’ accounts. In October and November of 2015, the co-conspirators had possession of at least 36 sets of stolen credit card information.
Lopez knew that, when they entered the required information on the kiosk website, the co-conspirators falsely pretended to be the authorized credit card holders with the authority to direct the requested deposits. In 35 successful transactions, the Fraud Squad fraudulently entered stolen credit card information into the kiosk while pretending to be the authorized credit card holder, which caused banks to deposit a total of $98,902.76 into accounts belonging to Lopez and other inmates.
Lopez used the money from his inmate account for his own purposes, such as purchasing commissary items and making phone calls. In coordination with the other members of the Fraud Squad, Lopez also caused checks to be issued against his inmate account with the intent that the money be used for the benefit of himself and the Fraud Squad.
On November 11, 2015, Lopez willfully caused a check to be issued from his inmate account to a co-conspirator in the amount of $16,000. Lopez knew that these funds were from an illegal source. Lopez willfully caused this check to be issued to a co-conspirator to launder the illegal proceeds. In fact, on November 8, 2015, Lopez told a co-conspirator during a recorded jail call that once money was put into Lopez’s inmate account it was “clean and clear” and that no one could get arrested as a result of that money.
“It’s a special kind of person who sees county jail as a business opportunity for victimizing innocent citizens,” said U.S. Attorney Bob Troyer. “Those special people have proven they qualify for federal prison.”
“Identity theft is a contemptible modern-day menace,” said Steven Osborne, IRS Criminal Investigation Special Agent in Charge. “Law enforcement officers respond to it with every legal resource available. Let this sentence serve as a warning to those who are considering similar conduct.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorneys Pegeen D. Rhyne and Jeffrey Graves.
Justice Department and ATF Name 22 Sites to Receive New National Integrated Ballistic Information Network EquipmentRead the Press Release
Evidence based forensic tool to help solve violent crime
The Department of Justice and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) today announced the deployment of ballistic imaging equipment used by ATF’s National Integrated Ballistic Information Network (NIBIN) to 22 state and local law enforcement agencies.
"Under President Donald Trump, the Department of Justice is prosecuting more firearm offenders than ever before," Attorney General Sessions said. "Ballistics technology has given law enforcement an unprecedented ability to make connections between cases and track down dangerous criminals. Today this Department of Justice is once again investing in the 85 percent of law enforcement officers who serve at the state and local levels and we are equipping them with cutting edge technology that will lead to smarter, targeted prosecutions of the most dangerous people in their communities. I have no doubt that this equipment will help to reduce crime in America."
“Crime Gun Intelligence, including the timely use of the NIBIN network, is the cornerstone of ATF’s violent crime reduction strategy. By deploying equipment to these 22 law enforcement agencies, investigators will now receive investigative leads within 48 hours. They will have new opportunities to disrupt the shooting cycle and make our communities safer,” said ATF Deputy Director Thomas Brandon.
As the only crime gun ballistic network in the United States, NIBIN compares images of cartridge casings recovered at crime scenes and firearms recovered by law enforcement to connect shooting incidents and identify shooters. ATF’s broader Crime Gun Intelligence strategy involves multiple technologies to identify criminal shooters and uses NIBIN as a leads-generator in support of this comprehensive approach. The deployments of this NIBIN equipment will help fill gaps in the intelligence and investigative networks and allow for a more efficient processing of firearm related violent crime evidence.
There are 16 agencies receiving NIBIN equipment for the first time:
- Anchorage, AK PD
- Aurora, IL PD
- Berks County, PA
- Charleston, WV PD
- Cheney, WA State Patrol
- Des Moines, IA PD
- Frederick County, MD Sheriff’s Office
- Ft. Myers, FL PD
- Glendale, AZ PD
- Nassau County, NY Public Safety Center
- Lexington, KY PD
- Miami Gardens, FL PD
- Orange County, NY Intelligence Center
- Pensacola, FL Escambia Co Sheriff
- Richmond, VA PD
- San Bernardino, CA PD
Six agencies are receiving additional equipment to enhance their successful crime gun intelligence programs:
- Baton Rouge, LA State Crime Lab
- Cincinnati, OH PD
- Denver, CO PD
- Detroit, MI PD
- Jacksonville, FL PD
- Philadelphia, PA PD
ATF has 25 Crime Gun Intelligence Centers (CGIC) across the United States in which ATF collaborates with local police departments and federal, state, and local prosecutors. The CGICs utilize cutting-edge technology and dedicated investigative teams to disrupt shooters and identify their source of crime guns before they can commit further criminal acts.
To support local participation in the CGIC approach, the Department recently awarded $5 million under the Local Law Enforcement CGIC Integration Initiative to encourage local jurisdictions to use intelligence, technology, and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes. The Department also awarded more than $30 million to Project Safe Neighborhoods (PSN), the centerpiece of the Department’s crime reduction efforts. Through PSN, the Department is targeting the most violent criminals in the most violent areas by utilizing policing tools like CGICs.
NIBIN is helping cities solve crimes every day. Examples of these NIBIN success stories include:
- In January 2017, an unknown suspect shot a victim at a gas station in Detroit, Michigan. Police recovered cartridge casings and entered them into NIBIN. In April 2017, an unknown suspect fatally shot a limousine driver at a gas station. NIBIN linked the two scenes, and in so doing, provided investigators the intelligence they needed to identify the shooter and remove a murderer from the streets. The shooter was sentenced to life in prison.
- Detectives in New Albany, Indiana, investigated a homicide but had no suspect, one cartridge casing, and information that led them to believe the shooter may have fled to Louisville, Kentucky. A month later, the Louisville Police Department responded to an incident where several shots had been fired inside an apartment. The firearm recovered at that scene was linked by NIBIN to the murder in New Albany. As a result, the shooter was arrested, charged with the homicide, and sentenced to 17 years in prison.
- In 2018, Cincinnati Police investigated a homicide and recovered cartridge casings from the scene, subsequently entering them into NIBIN. A month later, the Cincinnati Police stopped two suspects for driving a stolen car. During the stop, the police recovered two firearms from the car and entered them into NIBIN. NIBIN linked the guns to the murder, and after being prosecuted for the homicide, the two suspects were sentenced to 18 and 50 years in prison.
More information on NIBIN and Crime Gun Intelligence can be found here: NIBIN Fact Sheet and CGIC Fact Sheet.
Jasper County Man Pleads Guilty to Illegally Possessing Unregistered Machine GunRead the Press Release
Hattiesburg, Miss. – James Christopher Varner, 39, of Stringer, Mississippi, entered a guilty plea today before U.S. District Judge Keith Starrett to illegally possessing a machine gun that was not registered, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Varner, 39 of Stringer, faces a maximum of 10 years in prison on the charge. He further faces a fine of $10,000 along with 3 years of supervised release. Sentencing is set for January 3, 2019, at 10:00 a.m.
On January 22, 2018, deputies with the Jasper County Sheriff’s Office responded to a domestic violence call at a home in Stringer, Mississippi. Once there, they found a female who had been injured, along with several firearms. When Deputies tracked down Varner, they found additional firearms, along with controlled substances, a KKK robe, hood and literature. With the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, a total of 46 firearms were seized, including 4 machine guns, 2 sawed-off rifles, multiple silencers, multi-round magazines, machine gun conversion kits, and other weapons.
Hurst commended the incredible work of the Jasper County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives who investigated the case. The case is being prosecuted by Assistant United States Attorney Annette Williams.
Indictment: Retired City Clerk Covered up EmbezzlementRead the Press Release
WICHITA, KAN. – A retired city clerk of Caney, Kan., was indicted today on charges of stealing more than $36,500 from the city, U.S. Attorney Stephen McAllister said.
Carole Sue Coker, 69, Oronogo, Mo., is charged with one count of mail fraud and one count of bank fraud. The indictment alleges that Coker, who served as city clerk for about 40 years, employed a so-called “check for cash” embezzlement scheme to conceal the crimes.
The indictment alleges Coker embezzled a portion of cash payments made to the city. She covered up the crime by recording only a portion of some checks made out to the city. In this way, Coker made the city’s books appear to balance.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000 on the mail fraud count, and up to 30 years and a fine up to $1 million on the bank fraud count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
The former operator of the water system in Garden Plain, Kan., was charged today with falsifying reports on the quality of the city’s drinking water, U.S. Attorney Stephen McAllister said.
Arthur Wolfe, 62, Norwich, Kan., is charged with two counts of making false statements in reports required by the Environmental Protection Agency. The indictment alleges Wolfe certified bacteriological reports in which water samples taken from some locations were represented as samples taken at other locations.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each count. The Environmental Protection Agency investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Martin Urias-Sillas, 43, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 26, 2017, in Wichita, Kan.,
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal alien from Honduras indicted on multiple firearms charges, illegal re-entryRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that an illegal alien from Honduras was indicted on multiple firearms violations and illegally re-entering the country.
Selvin Ponce-Hernandez, 27, of Honduras, was indicted on one count of illegal re-entry of a removed alien, possession of a firearm by a prohibited felon, and possession of a firearm by an illegal alien. According to the indictment, Ponce-Hernandez was arrested on August 9, 2018 in Lafayette Parish. Law enforcement agents found that he was from Honduras and had previously been deported. He was also in possession of a Bersa Thunder .380 Deluxe pistol and ammunition. A review of his criminal record showed that he was also a convicted felon.
Ponce-Hernandez faces up to 10 years in prison for the illegal re-entry count, 10 years in prison for the possession of firearm by a prohibited felon count, and 10 years in prison for the possession of firearm by an illegal alien. He also faces three years of supervised release, a $250,000 fine, and possible deportation.
Homeland Security Investigations, the ATF and the Lafayette Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Hope Mills Man Sentenced on Drug and Gun ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced Tavares Graham, 40, of Hope Mills, to 120 months’ imprisonment followed by 5 years of supervised release.
On April 18, 2018, GRAHAM pled guilty to one count charging possession with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base (crack) and another count charging possession of a firearm in furtherance of a drug trafficking crime.
Officers of the Fayetteville Police Department, with assistance from the Hope Mills Police Department, obtained a search warrant for GRAHAM’s Hope Mills residence based on reports from informants and drug evidence found in GRAHAM’s trash. On May 25, 2016, law enforcement executed the search warrant, finding 720 grams of cocaine and 25 grams of crack cocaine in GRAHAM’s kitchen and garage. In the garage not far from the drugs, officers also found an Amadeo .38 special revolver and a separate magazine loaded with 12 9mm rounds. Other seized evidence included supplies to cook crack cocaine, digital scales, and torn sandwich bags.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation of this case was conducted by the Fayetteville Police Department, Hope Mills Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government in this case.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CELIO JAVIER JUAREZ-AGUILAR, age 42, a native of Honduras, pleaded guilty today to a one-count indictment charging him with illegal entry of a removed alien.
According to the court documents, JUAREZ-AGUILAR was previously removed from the United States on February 25, 2014. He was later found in the Eastern District of Louisiana on July 15, 2018, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
JUAREZ-AGUILAR faces a maximum term of imprisonment of 10 years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee. U.S. District Court Judge Eldon E. Fallon set sentencing for November 8, 2018.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hobbs Man Pleads Guilty to Violating Federal Drug Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Robert Pena, 38, of Hobbs, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal drug trafficking and firearms laws. Pena’s plea agreement recommends a prison sentence of 15 years followed by a term of supervised release to be determined by the court.
Pena was charged with federal drug trafficking and firearms offenses in a federal criminal complaint filed on April 26, 2018, and was arrested on May 8, 2018, after he was transferred from state custody to federal custody. According to the criminal complaint, Hobbs Police Department (HPD) officers arrested Pena in Jan. 2018, after finding a firearm and ammunition, approximately 152 grams (5.3 ounces) of methamphetamine, a small amount of cocaine and marijuana, and drug paraphernalia in Pena’s vehicle while executing a search warrant following a routine traffic stop.
A federal grand jury indicted Pena on July 18, 2018, and charged him with possession of methamphetamine with intent to distribute and possession of a firearm during and in relation to a drug trafficking crime. According to the indictment, Pena committed the offenses on Jan. 25, 2018, in Lea County, N.M.
During today’s proceedings, Pena pled guilty to the indictment and admitted that HPD officers stopped him on Jan. 25, 2018, because of a brake light malfunction on his vehicle, and during a canine sniff search, the narcotics canine alerted to the presence of drugs in his vehicle. Pena further admitted that the HPD officers subsequently found approximately 146.3 grams of pure methamphetamine and a loaded firearm in his vehicle during the execution of a search warrant. Pena admitted that he intended to distribute the methamphetamine to others in exchange for money, and that he carried the loaded firearm to protect himself and the drugs in furtherance of his drug trafficking activities.
Pena has been in custody since his state arrest in Jan. 2018, and will remain in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the DEA, the Hobbs Police Department, and the Lea County Drug Task Force with assistance from the 5th Judicial District Attorney’s Office. Special Assistant U.S. Attorney Joni Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hialeah Check Casher Pleads Guilty to Laundering over $100 million in Healthcare, Mortgage and Identity Theft Tax Refund Fraud ProceedsRead the Press Release
A Hialeah check casher pled guilty yesterday to laundering over $100 million in proceeds of healthcare, mortgage and identity theft tax refund fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Evelio Suarez, 53, of Miramar, pled guilty before U.S. District Judge Robert N. Scola, Jr. to one count of money laundering. Surarez is scheduled to be sentenced by Judge Scola on December 18, 2018, at 8:30 a.m.
According to the agreed upon factual proffer and court documents, from 2013 through 2015 (the “relevant period”), Suarez controlled a number of check-cashing stores located in Hialeah, Florida (the “Suarez Stores”). During this period, the defendant caused the cashing of checks at the Suarez Stores that were the proceeds of fraudulent activity, including identity-theft tax refund fraud, health care fraud, and mortgage fraud. On numerous occasions, Suarez cashed individual fraudulent Medicare checks exceeding $200,000 and individual U.S. Treasury tax refund checks exceeding $150,000. Suarez knew that the checks had been obtained from fraudulent activity and, on occasion, knowingly accepted fake identification documents.
According to the factual proffer, because Suarez knew the funds came from illegal sources, the defendant charged an additional fee on top of the standard fee charged by the check-cashing stores. Suarez charged this as a personal fee that he took in cash from the stores. Suarez also often withheld money from the checks and falsely claimed to the scammers that the money from their checks had been frozen by the banks or the authorities.
According to the factual proffer, during the relevant period, Suarez knowingly cashed at least $100 million in checks that came from either identity-theft tax refund fraud, healthcare fraud or mortgage fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and FBI in this matter. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Yisel Valdes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Groton Man Sentenced to 5 Years in Prison for Child Pornography OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that WILLIAM MILLETT, 28, of Groton, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by five years of supervised release, for a child pornography offense.
According to court documents and statements made in court, an HSI investigation revealed that an internet protocol (IP) address associated with MILLETT was being used to access child pornography. On November 7, 2017, investigators conducted a court-authorized search of MILLETT’s Groton residence and seized several electronic devices, including a thumb drive. Forensic analysis of the thumb drive revealed 198 images and two videos of child pornography, as well as multiple instructional guides related to the sexual abuse of children. An additional 37 images of child pornography were recovered from MILLETT’s email account.
MILLETT has been detained since his arrest on November 9, 2017. On June 20, 2018, he pleaded guilty to one count of receipt of child pornography.
This matter was investigated by Homeland Security Investigations (HSI) with the assistance of the Connecticut State Police and Town of Groton Police Department. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Guilty Plea Involving Drug Loads in the Parking Lot at Local High SchoolRead the Press Release
NEWS RELEASE SUMMARY – October 11, 2018
San Diego, California – Defendant Alejandro Barba pled guilty today to conspiracy to distribute methamphetamine, which carries a 10 year minimum mandatory sentence, before Magistrate Judge Nita Stormes of the U.S. District Court for the Southern District of California.
On May 1, 2018, Barba, who was parked on the grounds of San Ysidro High school, received five kilograms of methamphetamine from a juvenile courier who attended San Ysidro High School. Barba was arrested shortly thereafter by the San Diego Sheriff’s Office Border Suppression Team. Special Agents with Homeland Security Investigation and Drug Enforcement Administration assisted in the investigation.
During his guilty plea today, Barba admitted picking up methamphetamine on multiple occasions at the San Ysidro High School parking lot from juveniles, who smuggled methamphetamine into the United States.
His next court appearance is on January 4, 2019 for sentencing before District Court Judge Anthony Battaglia.
DEFENDANT
Criminal Case No. 18CR2850AJB
Alejandro Barba 27 years old San Diego, California
CHARGE
Conspirary To Distribute Methamphetamine (21 U.S.C. 841 & 846)
10 years minimum to life in custody; $1,000,000 fine
AGENCIES
San Diego County Sheriff’s Department
SDCO’s Border Suppression Team
Homeland Security Investigations
Drug Enforcement Administration
Fugitive Lawyer Pleads Guilty in Connection with $21 Million Fraud SchemeRead the Press Release
Michael R. Casey, 71, a fugitive for over four years, pled guilty today for his participation in a $21 million investment fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Gadyaces S. Serralta, U.S. Marshal, U.S. Marshals Service (USMS), Miami Field Office, made the announcement.
Casey pled guilty before U.S. Magistrate Judge Andrea M. Simonton, to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 12-20630-Cr-Lenard). Casey previously pled guilty to failing to appear in court in 2014 (Case No. 14-20619-Cr-Moreno). Casey is scheduled to be sentenced for both offenses of conviction on November 27, 2018, by Chief U.S. District Judge K. Michael Moore.
According to the court record, Casey, originally of Fort Lauderdale, and co-defendants James C. Howard, III, of Parkland, Patricia S. Saa, of Tampa, and Louis N. Gallo, III, of Parkland, defrauded individuals who invested in Commodities Online LLC (COL). From approximately January 2010 through April 2011, Casey and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 770 investors.
Casey and his co-conspirators used COL to sell: shares of ownership in COL; subscriptions to access the COL website and COL’s investment opportunities; and investments in purported transactions to buy and sell commodities, such as fish, iron ore and sugar. After receiving $2.2 million for the COL ownership shares in early 2010, Howard and Saa diverted $1.3 million of those funds for other purposes. By the summer of 2010, Casey learned that the funds had been diverted for other purposes, and did not disclose it to investors.
In addition to selling COL ownership units, Casey and his co-conspirators offered investors the opportunity to fund purported contracts to buy and sell commodities. Casey and his co-conspirators offered a stated percentage return on investment, such as 10% within 30 days or 20% within 70 days. However, the specific purported contracts – for which investors sent COL money – did not exist as represented to investors. Also, Casey and his co-conspirators represented to investors that COL had a track record of profits on these purported contracts. However, Casey and his co-conspirators knew that COL did not have profits.
Casey and his co-conspirators also made material misrepresentations and omissions about the leaders of COL. Howard, who was initially the President of COL, was arrested for a state fraud offense in March of 2010. As a result, Howard stepped down. Casey, who was initially outside counsel to COL, became the President of COL in May of 2010. From May 2010 to March 2011, Casey and his co-conspirators represented to investors that Howard was no longer managing COL, when in fact, Howard remained the top person in charge. Also, Casey and his co-conspirators did not disclose to investors that both Howard and Gallo had previously been convicted of felonies.
During the time COL was operating, COL paid about $3 million to investors using funds paid by later investors. The investors lost approximately $18,919,995.
On August 30, 2012, Casey was charged by indictment, along with Howard, Saa, and Gallo, with one count of conspiracy to commit mail and wire fraud, and several counts of mail and wire fraud. Howard, Saa, Gallo, and another defendant, Rita Balbirer, were also charged with conspiracy to commit money laundering and various counts of money laundering.
In April of 2014, Casey failed to appear at a status hearing while pending trial. In August of 2014, Casey was indicted for bond jumping.
In September 2013, Howard pled guilty to one count of conspiracy to commit mail and wire fraud. In December 2013, Howard was sentenced to 189 months in prison.
In August of 2014, Gallo pled guilty to one count of conspiracy to commit mail and wire fraud. In October of 2014, Gallo was sentenced to 168 months in prison.
In July of 2014, Balbirer pled guilty to two counts of money laundering. In September of 2015, Balbirer was sentenced to 17 months in prison.
In addition, other co-conspirators in the COL fraud scheme were charged separately with conspiracy to commit mail and wire fraud. In November 2013, three defendants pled guilty for their involvement in the scheme. In February 2015, Timothy Josselson was sentenced to 38 months in prison, in Case No. 13-20730-Cr-Altonaga. In February 2015, Kathryn Josselson was sentenced to 36 months in prison, in Case No. 13-20731-Cr-Moore. In March 2015, Robert Lananna was sentenced to 40 months in prison, in Case No. 13-20732-Cr-Ungaro.
U.S. Attorney Fajardo Orshan commends the investigative efforts of the FBI and USMS in this matter. This case is being prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John Gonsoulin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fresno Man Admits to His Role in Coordinating a Drug DealRead the Press Release
FRESNO, Calif. — Rafael Delatorre, 33, of Fresno, pleaded guilty on Wednesday to using a cellphone to facilitate a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 15, 2016, Delatorre used a cellphone to communicate with a local drug dealer and an out-of-town drug courier to coordinate the transfer of more than 30 pounds of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, the Fresno Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Melanie L. Alsworth and Kimberly Sanchez are prosecuting the case.
Delatorre is scheduled to be sentenced by Judge Dale A. Drozd on January 22, 2019. Delatorre faces a maximum statutory penalty of 4 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Office Manager of Boston Dental Practice Charged with Bank and Tax FraudRead the Press Release
BOSTON – The former office manager of a Boston-based dental practice was charged in an indictment unsealed today in connection with embezzling funds from her former employer.
Yuliya Vaysglus, a/k/a Julia Vaysglus, 35, of Cary, N.C., was charged with eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. Vaysglus will appear today in federal court in Boston.
The indictment alleges that from 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice. Her responsibilities involved tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, it is alleged that Vaysglus misappropriated more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the owner’s signature on the checks, and deposited them into her bank account. In order to conceal the scheme, Vaysglus did not record the insurance payments in the bookkeeping system. The indictment further alleges that Vaysglus failed to report the embezzled funds on her federal tax returns.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former NASA Contractor Pleads Guilty and Admits Computer Hacking and Threats Made to Obtain Nude Photos of Female VictimsRead the Press Release
LOS ANGELES – A Los Angeles man pleaded guilty this afternoon to federal charges of hacking into email and social media accounts to obtain nude photographs of women and then threating to publish the nude photos unless victims provided him with additional explicit pictures.
Richard Gregory Bauer, 28, a former contractor at NASA Armstrong Flight Research Center, pleaded guilty to three charges – stalking, computer hacking and aggravated identity theft.
Bauer, who used aliases that included “Steve Smith,” “John Smith,” and “Garret,” pleaded guilty before United States District Judge John F. Walter, who scheduled a sentencing hearing for December 17.
Bauer, who currently resides in the Mid-Wilshire District of Los Angeles, and who recently lived in the High Desert communities of Palmdale and Lancaster, admitted in court that he obtained unauthorized access to victims’ online accounts and threatened the women starting in early 2015 and continuing through early 2018.
In a plea agreement filed in United States District Court, Bauer acknowledged that he sent victims anonymous online messages threatening to disseminate nude pictures if they did not send additional photographs of themselves. In some cases, but not all, Bauer had explicit photographs in his possession. Bauer knew all of his victims, who were friends, family, acquaintances from high school and college, co-workers, and friends of friends.
Bauer hacked into the victims’ online accounts in two ways. In some cases, Bauer, using his true identity, contacted victims on Facebook and posed a series of questions, purportedly as part of a project he was working on for his “human societies class.” Some of the questions included typical questions used to reset online passwords, such as the name of your first pet or the city where your parents met. Armed with that information, Bauer reset passwords to gain access to his victims’ online accounts, primarily cloud-based iPhone backups, from which he harvested photographs, videos and documents containing passwords for other accounts.
In other instances, again using his true identity, Bauer convinced victims to install malware that he claimed was software that he needed help testing. The malware gave Bauer unauthorized access to the computers, and allowed him, among other things, to capture from the victims’ computers passwords for web sites and e-mail accounts.
As a result of today’s guilty pleas, Bauer faces a statutory maximum sentence of five years in federal prison for the stalking and computer hacking counts. The aggravated identity theft count carries a two-year, consecutive prison term.
This case is the result of an investigation conducted by NASA’s Office of Inspector General.
This matter is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes
Former Hamilton County Sheriff’s Deputy Sentenced for Lying to ATFRead the Press Release
WICHITA, KAN. – A former deputy with the Hamilton County Sheriff’s Department was sentenced Wednesday to a year and a day in federal prison for lying to investigators about a missing machinegun, U.S. Attorney Stephan McAllister said.
Robert W. Doty, 60, Guymon, Okla., pleaded guilty to one count of lying to a federal investigator. In his plea, Doty admitted that in March 2018 he was interviewed by an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The agent was investigating a report by the Hamilton County Sheriff’s Office that an Uzi machinegun was missing from its inventory.
Doty told the agent that he had cleaned the machinegun, taken it to the range to shoot it and then returned it to the Sheriff’s office. In fact, Doty did not return the machinegun. He took it to a third party’s house and left it there.
According to the Kansas Commission on Peace Officers’ Standards and Training, Doty’s certification as a law enforcement officer has been revoked.
McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Former Georgia Department of Corrections officer pleads guilty to smuggling drugs into prisonRead the Press Release
ROME, Ga. – Tiffany Cook, a former Georgia Department of Corrections (GDC) officer, pleaded guilty to being paid by a prison inmate to smuggle methamphetamine and marijuana into Hays State Prison located in Trion, Georgia.
“Georgia correctional officers serve every day, faithfully executing their duties with integrity,” said U.S. Attorney Byung J. “BJay” Pak. “Cook, however, violated the oath of office she swore to uphold and the law when she smuggled drugs into prison. She must now account for her betrayal of trust.”
“It is very troubling that a sworn officer is willing to sell her badge for personal payoff, putting her fellow officers and inmates safety in jeopardy,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Cook not only betrayed the institution she was sworn to protect, she also betrayed every hard working corrections officers who uphold their oaths every day.”
“We are pleased to see that justice has been served on this individual, who chose to violate her oath and put other staff at risk by introducing contraband into our facility,” said Gregory C. Dozier, GDC Commissioner. “Our special agents are to be commended for their work in identifying the individual leading to her prosecution, and we are also proud of our officers for their diligence. The commitment to public safety by all of our law enforcement partners is paramount in maintaining safe and secure prisons, and we appreciate their support.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On May 17, 2010, Cook began working with the GDC as a correctional officer. Beginning in April 2017, Cook served as a correctional officer at Hays State Prison. Hays State Prison is located in Trion, Georgia in Chattooga County. The facility opened in 1990 and currently holds approximately 1,680 male prisoners.
In early July 2018, the GDC received information from an inmate that Cook was being paid to smuggle illegal drugs into the prison. On July 9, 2018, Cook arrived at Hays State Prison to report for her regularly-scheduled shift. As Cook approached the time clock, correctional officers asked Cook to walk into a conference room. Following the request, Cook stated that she felt ill and wanted to leave the prison. Correctional officers detained and ultimately searched Cook.
Pursuant to their search, correctional officers recovered more than 118 grams of actual methamphetamine (with a purity of 90%), and more than 150 grams marijuana from Cook’s vaginal cavity and bra. After seizing the methamphetamine and marijuana, correctional officers placed Cook under arrest.
Sentencing for Tiffany Cook, 34, of Summerville, Georgia, is scheduled for December 21, 2018, at 2:00 p.m. before U.S. District Judge Harold L. Murphy. Cook was charged in a criminal information with one count of possession, with intent to distribute, a controlled substance on October 11, 2018.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Corrections.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former District of Columbia Government Employee Pleads Guilty to Accepting Bribes from ConsultantRead the Press Release
WASHINGTON – A former employee of the District of Columbia Department of Human Resources pled guilty today to a federal bribery charge for accepting more than $140,000 in bribes from a consultant and independent contractor who did business with the government.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Latasha Moore, 38, of Washington, D.C., pled guilty before the Honorable Dabney L. Friedrich in the U.S. District Court for the District of Columbia. The charge of bribery carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Moore faces a possible range of 70 to 87 months in prison and a fine of up to $250,000. A sentencing date has not yet been set.
According to a statement of offense submitted at the plea hearing, Moore started work in 2002 for the D.C. Department of Human Resources; in 2012, she was promoted to the position of resource allocation analyst. In that role, among other duties, she was the main point of contact for a government contractor that had agreements with the District of Columbia Department of Human Resources to provide organizational skills training courses and human resources consulting to various D.C. government agencies.
As noted in the statement of offense, Moore and a consultant employed by the company engaged in a scheme in which Moore agreed to protect the government contracts held by the company and ensure that no complaints about its performance reached others in the District of Columbia government. The scheme began in approximately July 2014 and ran through August 2017. In return for her actions, according to the statement of offense, Moore accepted more than $140,000 from the consultant in checks and a PayPal money transfer.
According to the statement of offense, Moore had suspicions about more than $1 million in invoices that the consultant submitted from March 2015 through June 2017. Nonetheless, in return for the money the consultant paid her, Moore advised other D.C. government officials to approve the invoices for payment. As the scheme continued, according to the statement of offense, the company discovered that the consultant was acting on his own and retaining the profits for himself. Although Moore knew of the company’s concerns, she did not relay them to her supervisors and continued to advise other government officials to approve the consultant’s invoices.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Michael Marando, who is prosecuting the matter.
Former Correctional Officer Sentenced to 14 Months in Prison for Having Sex with an InmateRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of MARK MCSHANE, 37, a former correctional officer, to 14 months in prison for engaging in a sexual relationship with a female inmate. On June 7, 2018, MCSHANE pleaded guilty to a felony information charging him with one count of sexual abuse of a ward. MCSHANE was sentenced earlier today before Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minnesota.
Assistant U.S. Attorney Julie Allyn said, “The sentence handed down today was appropriate for Mr. McShane’s misconduct. When a correctional officer, a person in a position of authority, takes advantage of an inmate, it erodes trust throughout the institution and has a negative impact on every other inmate and employee.”
According to his guilty plea and documents filed in court, MCSHANE was employed as a correctional officer at the Federal Correctional Institution (FCI) in Waseca, Minnesota. From November 2016 through January 2017, MCSHANE engaged in a sexually inappropriate relationship with the inmate while she was incarcerated. Subsequently, in February 2017, MCSHANE became extremely intoxicated during a social outing and admitted to co-workers his sexual misconduct with the inmate.
This case is the result of an investigation conducted by the Department of Justice Office of the Inspector General.
This case was prosecuted by Assistant U.S. Attorney Julie E. Allyn.
Defendant Information:
MARK MCSHANE, 37
Owatonna, Minn.
Convicted:
- Sexual abuse of a ward, 1 count
Sentenced:
- 14 months in prison
- Five years of supervised release
# # #
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Folsom Man Sentenced to over Three and A Half Years for Investment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Jason E. Mininger, 50, of Folsom, CA, was sentenced today by United States District Judge Troy L. Nunley to 46 months in prison and ordered to pay $917,714 in restitution to the victims of the fraud, United States Attorney McGregor W. Scott announced.
According to court documents, Mininger was an investment broker and advisor in Folsom. Beginning in January 2014, and continuing until May 2017, Mininger misrepresented to his clients that he needed to use their previously invested funds as part of a new series of investments to be made or managed by Mininger. In truth, Mininger, after depositing the clients’ funds into his own bank account, used the investors’ money on his personal expenses. Mininger caused at least $917,714 in losses to his clients. Mininger also created false investment account statements and used a sham corporation to conceal his embezzlement of his clients’ funds.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Services-Criminal Investigations. Assistant United States Attorney Todd A. Pickles prosecuted the case.
Firing Nine Shots at an Occupied Building Leads to More Than Two Years in Federal PrisonRead the Press Release
An unlawful user of cocaine and marijuana who unlawfully possessed a loaded handgun he used to shoot at a club in Dubuque was sentenced today to more than two years in federal prison.
Ricardo Sanchez, age 33, from for Forest City, Illinois, received the prison term after a May 15, 2018, guilty plea to one count of possession of a firearm by an unlawful user of controlled substances.
Evidence at a prior detention hearing and information at the sentencing hearing showed that in the early morning hours of November 27, 2017, Sanchez arrived at a club in downtown Dubuque. After entering the club, Sanchez got into an argument with the club owner. He then left the club and returned to his van. Sanchez is then seen on traffic camera video retrieving something from the van. Sanchez returned to outside the club and fired a handgun towards the building multiple times, destroying the front window of the club. There were four people inside the club at the time. Police later recovered nine spent 9mm shell casings from the area of the shooting. After firing the handgun, Sanchez returned to his car and drove from Dubuque into Wisconsin and eventually Illinois. He was arrested later on November 27 in Galena, Illinois. Police recovered the 9mm pistol from along the road outside of Galena.
Sanchez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Sanchez was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sanchez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the Galena Police Department, and the Jo Daviess County Sheriff’s Office.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1003.
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Federal and state prosecutors join the Indiana State Board of Accounts to hold public officials accountableRead the Press Release
15 individuals charged with over $1 million in losses
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today a large-scale initiative bringing federal and state corruption-related charges against 15 individuals working in public service and governmental positions. “Operation Public Accountability” partnered the State Board of Accounts with the FBI, Indiana State Police, county sheriffs, the U.S. Attorney’s Office, and state and local prosecutors filing charges against local fire department officials, school employees and various municipal and county employees from around the state.
“Public officials work for the people not the other way around,” said Minkler. “When the trust we give them is shattered and public officials line their pockets with taxpayer dollars, they should expect the scrutiny of state and federal law enforcement. All citizens deserve better from their public officials and this office intends to hold them accountable.”
The State Board of Accounts is responsible for ensuring financial accountability of state and local governments in their handling and reporting of public funds. This is done by performing periodic financial audits and conducting special investigations based on concerns discovered during regular audits, referrals from law enforcement agencies, reports of misappropriation from local officials, and credible complaints from citizens. In each of the cases highlighted today, the State Board of Accounts collaborated with law enforcement and prosecutors to perform audit procedures to verify misappropriation concerns and assist in gathering evidence to support prosecutions.
Federal cases include:
Kellie Cline, 35, Greenwood, served as the Extra-Curricular Activity (ECA) Treasurer at Greenwood Middle School. She is alleged to have stolen approximately $50,000 from the school’s extra-curricular account.
Sami Dillon, 38, Crawfordsville, served as the Clerk-Treasurer of Cayuga, in Vermillion County and is alleged to have stolen approximately $44,000 by not depositing utility receipts.
Clint Madden, 51, Columbus, served as the Wayne Township Trustee and the Jonesville Volunteer Rural Fire Department Treasurer, in Bartholomew County. He is alleged to have misappropriated over $100,000 from the township and the fire department.
Mathew Mathis, 47, Columbus, served as the Treasurer of the Hope Volunteer Fire Department in Bartholomew County and is alleged to have stolen over $48,000 from the fire department.
Norman Burgess, 44, Danville, served as the Treasurer of the Wayne Township Fire Department in Hamilton County and is alleged to have stolen approximately $140,000 from the fire department.
State cases include:
Angela White, 44, Indianapolis, served as the ECA Treasurer for Robey Elementary School in Wayne Township, in Marion County. She is alleged to have stolen approximately $10,000 from the school. Charges are pending with the Marion County Prosecutors Office.
Rachel Bentz, 44, Portland, served as the Jay County Sheriff’s Department jail matron. She is alleged to have stolen approximately $9,000 by not depositing inmate trustee receipts. This case is pending with the Jay County Prosecutor’s Office.
Dallas Davis, 56, Russellville, served as the Clerk-Treasurer for the Town of Russellville, and is alleged to have stolen approximately $7,600 by not properly depositing utility receipts. This case is pending with the Putnam County Prosecutor’s Office.
David Buzzard, 50, Columbus, served as the trustee for the Rock Creek Township Trustee in Bartholomew County. He is alleged to have overpaid himself and his spouse approximately $27,000. This case is pending in Bartholomew County with a special prosecutor.
Jacqueline Fitzgerald, 54, and Monica Durrett, 56, worked at the Indianapolis Local Public Bond Bank and are alleged to have stolen approximately $400,000. This case is pending with the Marion County Prosecutor’s Office.
Nicole DeMunck, 35, Michigan City, served as the AK Smith Center Treasurer in the Michigan City School System. She is alleged to have stolen approximately $13,000. This case is pending with the LaPorte County Prosecutor’s Office.
Nichole Lowry, 47, Kewanna, served as the Pulaski County EMS Director. She is alleged to have stolen over $12,000 in training funds. This case is pending with the Pulaski County Prosecutor’s Office.
Cheryl Pruitt 50, Gary, served as the former Gary Schools Superintendent, is alleged to have received a $1,256.75 “reimbursement” for funds that she never spent.
Donald G. Minnick, 64, Gosport, served as an Owen County Commissioner. He improperly sold a vehicle to the county with a loss of $7500. He was found guilty in Owen County.
In total, the State Board of Accounts is civilly charging the individuals listed above for repayment of more than $1 million based on the misappropriations identified in these cases.
“These cases address core local government functions that impact the quality of life for residents of these communities - from public safety to after school activities to utility services – and erode public confidence in those trusted with public funds,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “These charges also demonstrate the strength of collaboration with our federal, state and local partners to mitigate the problem of corrupt officials across the state and the impact their greed has on their communities.”
“In recent years, the Board of Accounts has emphasized the importance of effective internal controls that detect and mitigate fraud risks. The vast majority of local units of government have enhanced their procedures to incorporate stronger internal controls,” said Paul Joyce, State Examiner. “Some officials and employees, however, still take advantage of system gaps and succumb to the temptation to use public funds for personal gain. We take those fraud cases seriously. These cases are good illustrations of the importance of our collaboration with law enforcement and prosecutors to hold these individuals accountable for violating the public trust.”
Indiana State Police Supt. Doug Carter said, “To say the least, it’s disheartening when public officials violate the public trust, which is why it is important for the public to know that the FBI, along with the State Board of Accounts and state police detectives worked together building prosecutable cases to hold these public officials accountable for their alleged criminal acts.” Carter concluded, “We appreciate the aggressive manner United States Attorney Minkler has moved forward to prosecute these cases and help restore public faith in their local government officials.”
Assistant United States Attorney Tiffany J. Preston is prosecuting all of the federal cases.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
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Federal Bribery Charges Added to List of Crimes Pending Against Oakland Resident Wing Wo MaRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco filed a Third Superseding indictment today adding bribery to the list of charges pending against Wing Wo Ma, a/k/a Mark Ma, a/k/a Fat Mark, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The new indictment amends drug distribution charges originally brought October 21, 2015, and conspiracy and murder charges filed April 6, 2017.
The third superseding indictment realleges charges brought in the April 6, 2017, superseding indictment that Ma, 52, of Oakland, was involved in a conspiracy to distribute marijuana between January and October of 2013. During the same period, Ma allegedly possessed a firearm in furtherance of the drug conspiracy and used a firearm to cause the death of two people: Jim Tat Kong and Cindy Bao Feng Che. Ma has been charged with one count each of conspiracy to cultivate and distribute and to possess with intent to distribute marijuana, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(B); use of a firearm causing murder, in violation of 18 U.S.C. § 924(j); and use of a firearm during and relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A).
Today’s third superseding indictment adds conspiracy to commit bribery allegations to the charges previously pending against Ma. Specifically, Ma bribed an Alameda County District Attorney’s Office Investigator to protect Ma from prosecution and investigation by law enforcement agencies. As alleged, Ma gave things of value to the now former investigator, including airfare for multiple trips to Las Vegas, free accommodation at high-end suites and hotel rooms at Las Vegas casinos, music concert tickets, and use of a new Mercedes Benz. In addition, Ma told criminal associates that the investigator would be able to protect them from investigations conducted by law enforcement agencies, given Ma’s relationship with the investigator. Ma also collected money from criminal associates for the purpose of bribing the investigator and represented to criminal associates that the investigator was an investor in Ma’s fraudulent investment projects. Furthermore, Ma used the investigator’s name and reputation to attract investors to his own fraudulent schemes.
The indictment charges Ma with one count of conspiracy to commit honest services fraud and bribery, in violation of 18 U.S.C. §§ 371, 666, 1343, and 1346.
All indictments merely allege that crimes have been committed, and all defendants, including Ma, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Ma faces a maximum statutory sentences as follows:
- Conspiracy to cultivate and distribute and to possess with intent to distribute marijuana: Maximum term of forty years imprisonment; maximum fine of $5,00,000; at least four years, but up to lifetime, supervised release. (Mandatory minimum prison term of 5 years.)
- Use of Firearm Causing Murder: maximum lifetime imprisonment, maximum fine of $250,000, maximum three years of supervised release.
- Use of a firearm during and in relation to a drug trafficking crime: maximum life imprisonment, maximum fine of $250,000, maximum five years of supervised release. (Minimum consecutive penalties include the following: 5 years consecutive mandatory minimum, 7 years if the firearm is brandished, and 10 years if the firearm is discharged.)
- Conspiracy to Commit Bribery: maximum penalty of five years imprisonment, maximum $250,000 fine, maximum three years of supervised release.
However, any sentence following a conviction of Ma would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Joseph Alioto and William Frentzen are prosecuting these cases with the assistance of Adria Trigovcich and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Fall River Mayor Arrested for Scheme to Defraud InvestorsRead the Press Release
BOSTON – Jasiel F. Correia II, the Mayor of Fall River, was arrested this morning and charged with wire and tax fraud in connection with a multi-year investment fraud scheme.
Correia, 26, was indicted on nine counts of wire fraud and four counts of filing false tax returns. Correia was arrested this morning and will appear in federal court in Boston this afternoon.
As alleged in the indictment, in 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. In approximately January 2013, Correia began seeking investors who were willing to provide investment money for SnoOwl in return for equity in the company. In order to incentivize potential investors, Correia falsely represented that he was a successful tech entrepreneur who previously sold another app for a large profit, that investment funds would be used to develop the app, and that he would not take a salary or otherwise draw compensation from SnoOwl.
According to the indictment, seven individuals invested a total of $363,690 in SnoOwl. However, rather than using the investment funds to develop the app as Corria certified in signed agreements with investors, it is alleged that Correia used at least $231,447 – approximately 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, the indictment alleges that Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos, and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.
As alleged in the indictment, Correia concealed the theft of funds from investors by providing false positive updates on SnoOwl’s status and refusing to provide the company’s financial records, which would have revealed his fraud. In addition, Correia concealed his ill-gotten gains from the IRS when filing his 2013 and 2014 individual tax returns.
In the spring/summer of 2015, Correia announced his candidacy for mayor of Fall River. Notwithstanding the facts that he had fraudulently taken hundreds of thousands of dollars of investor money and that SnoOwl was floundering, Correia touted his stewardship of SnoOwl to Fall River voters as one of his primary qualifications for mayor.
By May 2017, Correia was aware that SnoOwl was the subject of a federal investigation, and instructed an accountant to file amended 2013 and 2014 personal tax returns. Because the accountant relied on false information from Correia, the amended returns classified SnowOwl as a sole proprietorship, instead of a partnership, a critical distinction for tax purposes. As a result, Correia was not assessed any tax liability for any of the investor money that he took for himself, and he actually received a refund from the IRS in June 2017.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of up to twice the loss involved and restitution. The charge of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. 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; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General, made the announcement. Assistant U.S. Attorneys Zachary Hafer, Chief of Lelling’s Criminal Division, and David Tobin, of Lelling’s Major Crimes Unit, are 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.
Erie Man Charged with Fraud and Identity TheftRead the Press Release
ERIE, Pa. – A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of food stamp fraud, access device fraud and identity theft, United States Attorney Scott W. Brady announced today.
The eight-count indictment named John Alan Vanhouwe, 56, as the sole defendant.
According to the indictment presented to the court, Vanhouwe, who owned and operated a mobile convenience store in Erie, allowed customers to pay credit accounts with food stamps and used a database he created to gain access to customers’ food stamp accounts so he could pay down their credit accounts at his store without their knowledge.
The law provides for a maximum total sentence of 80 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eleven Bay Area Residents Charged in Federal Drug Trafficking, Firearms CrackdownRead the Press Release
SAN JOSE- Federal law enforcement authorities arrested eight Bay Area residents for a broad range of charges involving methamphetamine trafficking and the unlawful possession and sale of firearms, announced United States Attorney Alex G. Tse; Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree; Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen; and U.S. Marshal Don O’Keefe. The arrests were made pursuant to five separate federal indictments handed down between March 8, 2018, and August 23, 2018. In total, the indictments charge eleven defendants, three of whom already were in custody.
The five indictments were unsealed yesterday as the defendants made initial appearances before U.S. Magistrate Judge Virginia DeMarchi. According to the indictments, each defendant engaged in at least one crime related to the distribution of methamphetamine or the illegal possession or sale of firearms.
The eleven defendants and the corresponding charges are as follows:
Defendant
Age
Charges
Maximum Statutory Penalty
ELISEO MARTINEZ
a/k/a Snowman
24
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841(b)(1)(B)
August 2016 through October 7, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(B) October 7, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
DANIEL NOGUEIRA
26
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841 (b)(1)(B)
August 2016 through October 7, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)
October 17, 2016
Lifetime imprisonment (minimum 10 years), $10 million fine, lifetime of supervised release (minimum 5 years)
Felon in Possession of a Firearm / Ammunition (two counts),
18 U.S.C. § 922(g)
November 18, 2016
December 13, 2017
(For each count)
10 years’ imprisonment, $250,000 fine,
3 years supervised release,
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
December 13, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
Lifetime of supervised release (minimum 4 years)
SHAWN MOORE, a/k/a S Mo
51
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841 (b)(1)(B)
January 17, 2017 through
January 23, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine (three counts),
21 U.S.C. 841(a)(1) and 841(b)(1)(B)
January 19, 2017
January 23, 2017
February 8, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
Lifetime of supervised release (minimum 4 years)
Felon in Possession of Ammunition,
18 U.S.C. § 922(g)
February 13, 2017
10 years’ imprisonment, $250,000 fine,
3 years supervised release,
ANTHONY LOPEZ, a/k/a Evil
34
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841 (b)(1)(B)
January 17, 2017 through
January 23, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine (two counts),
21 U.S.C. 841(a)(1) and 841(b)(1)(B)
January 19, 2017
January 23, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
DEREKE HOLDEN a/k/a Dee
22
Sale of Firearm / Ammunition to Felon (four counts),
18 U.S.C. § 922(d)(1)
January 30, 2017
May 30, 2017
June 23, 2017
(For each count)
10 years’ imprisonment,
$250,000 fine,
3 years supervised release
Distribution of Methamphetamine (two counts),
21 U.S.C. 841(a)(1) and 841(b)(1)(B)
September 12, 2017
September 20, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
SALVADOR MORFIN
a/k/a Panda
34
Distribution of Methamphetamine (two counts),
21 U.S.C. §§ 841(a)(1) and 841 (b)(1)(B)
September 20, 2017
October 5, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
COLLIN BLAUDEANDERSON
22
Sale of Firearm / Ammunition to Felon,
18 U.S.C. § 922(d)(1)
May 30, 2017
10 years’ imprisonment,
$250,000 fine,
3 years supervised release
Felon in Possession of Firearm / Ammunition (two counts),
18 U.S.C. § 922(g)(1)
May 30, 2017 and
June 23, 2017
(For each count)
10 years’ imprisonment, $250,000 fine,
3 years supervised release
ZION KORCZYNSKI
a/k/a Cream
25
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and
841(b)(1)(B)
February 13, 2017 through
September 12, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine (two counts),
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)
February 13, 2017
September 12, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
OSCAR MADRIGAL, JR.
a/k/a Oso
22
Sale of Firearm /Ammunition to Felon (two counts),
18 U.S.C. 922(d)(1)
June 23, 2017
October 5, 2017
(For each count)
10 years’ imprisonment,
$250,000 fine,
3 years supervised release
LARRY A. LUNDY
51
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and
841(b)(1)(B)
February 13, 2017 through
September 12, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)
September 12, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
Lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)
September 18, 2017
October 11, 2017
Lifetime imprisonment (minimum 10 years), $10 million fine, lifetime of supervised release (minimum 5 years)
BREANN MANUEL ALONSO
a/k/a Manny
22
Unlicensed Dealing in Firearms,
18 U.S.C. §922(a)(1)(A)
July 5, 2017 through
September 6, 2017
5 years’ imprisonment,
$250,000 fine,
3 years supervised release
Felon in Possession of a Firearm / Ammunition (four counts),
18 U.S.C. § 922(g)
July 31, 2017
August 22, 2017
August 29, 2017
September 6, 2017
(For each count)
10 years’ imprisonment, $250,000 fine,
3 years supervised release,
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
August 29, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Nogueira, Moore, Holden, Blaudeanderson, Madrigal, Alonso, Korczynski, and Lundy were arrested yesterday. Each made his initial appearance before Magistrate Judge DeMarchi and pleaded not guilty to the charged offenses. All the defendants except two are residents of San Jose. Moore is a resident of San Francisco and Blaudeanderson is a resident of Morgan Hill.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney John Bostic is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the ATF. Assisting in the arrest operation were the United States Marshals Service, Drug Enforcement Administration, and Santa Clara County Specialized Enforcement Team.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Christian Marshall, age 27, was indicted on August 13, 2018. Marshall appeared before U.S. Magistrate Judge Mark Moreno on October 10, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 6, 2018, Marshall, James Charger, and Andrew Good Eagle did unlawfully assault an individual, and said assault did result in serious bodily injury to the victim.
The charges are merely accusations and Marshall is presumed innocent until and unless proven guilty. Charger and Good Eagle previously appeared on August 22, 2018, in front of Magistrate Judge William Gerdes and pled not guilty to the Indictment.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date of October 16, 2018, has been set.
Dominican Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Carlos Del Villar, of the Dominican Republic, pleaded guilty in federal court to participating in a drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in August 2018, U.S. Postal Inspectors obtained a search warrant for a suspicious package sent from Arizona to Del Villar’s apartment in Manchester. The package was found to contain approximately 242 grams of fentanyl. Del Villar was arrested after a Postal Inspector conducted a controlled delivery of the package to his apartment.
Del Villar is scheduled to be sentenced on January 17, 2019.
“Fentanyl continues to pose a serious threat to public safety in New Hampshire,” said U.S. Attorney Murray. “Those who bring this deadly drug into New Hampshire will be prosecuted aggressively. We will continue to work with all of our law enforcement partners to stop the flow of opioids into our state.”
This matter was investigated by the United States Postal Inspection Service, with assistance from the DEA and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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Dansville Man Sentenced for His Role in Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Donald McKinney, 53, of Dansville, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of actual methamphetamine, was sentenced to serve 120 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that between January 2017 and April 25, 2017, the defendant conspired with others to ship high purity crystal methamphetamine from suppliers in California into Dansville, NY, where it was then distributed. McKinney regularly communicated with co-conspirators, Thomas Williams and Julie Cota, in California, and arranged for them to ship quantities of crystal methamphetamine to him in Dansville, via parcel service. The defendant paid Williams and Cota $1,000 per ounce and then sold the crystal methamphetamine to another co-conspirator, Kurt Redance, for $1,400 an ounce. In turn, Redance distributed the crystal methamphetamine to others, including sales at The Boneyard, an auto salvage business in Dansville.
McKinney is one of seven defendants charged in this methamphetamine conspiracy. All seven have been convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Eric Laughton.
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Couple Sentenced to Lengthy Prison Terms for $12.7 Million Affinity Investment FraudRead the Press Release
SUNG HONG, 47, and HYUN JOO HONG, 42, of Clyde Hill, Washington were sentenced today in U.S. District Court in Seattle to lengthy prison terms for defrauding more than 55 clients out of $12.7 million, announced U.S. Attorney Annette L. Hayes. SUNG HONG, aka LAURENCE HONG or LAWRENCE HONG, was sentenced to 15 years in prison. His wife, HYUN JOO HONG, aka GRACE HONG, was sentenced to six years in prison. From 2010 until their arrest in June 2017, the couple held themselves out as experienced investment advisors with a track record of performance in order to solicit investor funds for their hedge fund, Pishon Holdings, and for management through separately managed accounts. In fact, SUNG HONG had just completed a 33 month sentence for committing investment fraud when he launched this new scheme in 2010. At the sentencing hearing U.S. District Judge Thomas S. Zilly said, “This scheme was a serious, complex fraud over seven years. You targeted religious victims. You used God as a way to gain trust…. You have emotionally and spiritually damaged these victims and most of them will never recover.”
“Using faith and fraud, this couple stole millions from people whose dreams of a better life have now been shattered,” said U.S. Attorney Annette L. Hayes. “Both repeatedly lied to their investors, all while spending their hard earned money on high-end shopping sprees, luxurious vacations, a yacht and an expensive rental home. Their victims now live paycheck to paycheck with college and retirement funds depleted and a very different financial future than they expected.”
According to records filed in the case, the HONGs recruited investors using religious organizations and shared religious beliefs. The couple claimed that LAURENCE HONG privately invested billions of dollars for wealthy Korean families and that GRACE HONG held a Series 65 securities license and previously worked for a large international investment firm. None of these statements were true. Likewise, the defendants did not disclose LAURENCE HONG’s past criminal conviction for investment fraud. The couple sent potential investors misleading and false investment prospectuses that contained an inaccurate record of their past investment performance and other plagiarized investment outlooks.
Throughout their fraudulent scheme, the HONGs used stolen investor funds for their own benefit, including payments for a 9,000 square foot rental home in Clyde Hill; a 45-foot yacht; multiple high-end vehicles, such as BMWs, a Maserati, an Aston Martin, and a Lamborghini; and numerous expensive vacations to locations such as the Bahamas and Beverly Hills.
One church in California invested $1 million with the HONGs and lost about $300,000 on a single trade. Still, despite the steep losses and a fee arrangement based on investment gains, the HONGs withdrew almost $150,000, ostensibly as advisor fees, from the church’s account. Another couple allowed the HONGs to manage their $180,000 in retirement funds only to lose $100,000 within less than a year. After meeting with the HONGs, that couple then invested their remaining retirement funds in the HONGs’ hedge fund, only for those funds to be redirected into GRACE HONG’s personal account. The HONGs used those funds to pay credit card bills and other personal expenses, including a $16,000 payment to a resort in the Bahamas for a HONG family vacation.
Speaking to LAWRENCE HONG, Judge Zilly noted his prior conviction for a similar fraud: “You clearly did not learn anything from the fact you were convicted and sentenced to prison…. You are one of those con men who will never be able to stop conning people.” Judge Zilly noted that GRACE HONG played “an intricate and important role in the entire scheme. She misrepresented her credentials… she took God’s name – she used that to entice investors to put money in their pockets.”
Judge Zilly ordered the pair to pay more than $12.7 million in restitution. The losses for certain investors represented their entire life or retirement savings.
The case was investigated by the FBI. The United States Attorney’s Office thanks the Commodity Futures Trading Commission (CFTC) for its assistance in the investigation.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Steven Masada.
Convicted Felon Sentenced to 52 Months in Prison for Illegal Gun PossessionRead the Press Release
DAYTON – Thurston Lewis Goodjohn, 34, of Springfield, was sentenced in U.S. District Court to 52 months in prison for illegally possessing a firearm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Clark County Prosecuting Attorney D. Andrew Wilson and North Hampton Police Chief Jarrod Campbell announced the sentence handed down Tuesday by District Judge Walter H. Rice.
According to the Statement of Facts in this case, police stopped Goodjohn while he was driving in the Clark County village of North Hampton on April 8, 2017. The police officer saw a .40 caliber handgun in plain view in the car along with a magazine containing 15 rounds of ammunition. Goodjohn admitted that the gun was his and that he knew he was not allowed to possess a firearm because he had prior felony convictions.
Goodjohn pleaded guilty before Judge Rice on July 9, 2018 to one count of felon in possession of a firearm.
U.S. Attorney Glassman commended the cooperative investigation by ATF and North Hampton Police, as well as Assistant United States Attorney Andrew Hunt and former Special Assistant U.S. Attorney and former Clark County Assistant Prosecutor Andrew Picek, who represented the United States in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Cleveland Woman Pleads Guilty to Hospice FraudRead the Press Release
OXFORD, MS. William C. Lamar, U.S. Attorney for the Northern District of Mississippi, together with Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta and Jim Hood, Attorney General for the State of Mississippi, announced today that a Cleveland, Mississippi woman has pled guilty to defrauding the United States by operating multiple fraudulent hospice programs and submitting fraudulent claims.
Charline Brandon of Cleveland, Mississippi, pled guilty on Wednesday before U.S. District Judge Debra M. Brown, to one count of Conspiracy to Commit Healthcare Fraud for her role in collecting Medicare and Medicaid payments from the U.S. Department of Health and Human Services and the Mississippi State Division of Medicaid for the fraudulent hospice claims.
Evidence submitted at the change of plea hearing showed that Brandon owned and operated a series of Hospice organizations headquartered in Cleveland, Mississippi, including Haven Hospice, North Haven Hospice, Lion Hospice and North Lion Hospice. Brandon admitted that she fraudulently submitted claims to Medicare and Medicaid for hospice services that were not medically necessary or that were not provided to the hospice patients as claimed. Brandon further admitted that she illegally recruited patients who were not hospice eligible. The Government alleged at the change of plea hearing that Brandon submitted more than $11 million in fraudulent claims to Medicare and more than $2 million in fraudulent claims to Medicaid.
“This sham hospice provider exploited the most vulnerable in our society while stealing millions from our health care system,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This is one of the largest and most egregious hospice schemes I have seen in Mississippi. The OIG will continue to identify the individuals committing these crimes and prosecute them to the fullest extent of the law.”
“Hospice is designed for end of life care to care for our most vulnerable people, not for personal gain. Unfortunately, this defendant was billing the taxpayers for patients who were not terminal. It is our duty to make sure our tax dollars are not stolen so there is money available to care for those who are terminally ill.” Attorney General Jim Hood said. “Joint investigations such as this one are key to protecting our healthcare system.”
U.S. Attorney William C. Lamar remarked: “In addition to helping to protect victims and those vulnerable members of our society, another part of our mission and goal is to protect our taxpayer dollars from those who would steal and misuse them. The United States Attorney’s Office will always seek to hold accountable those individuals who victimize our citizens and steal those resources designed to help them.”
This case was investigated by the Department of Health and Human Services, Office of Inspector General and the Mississippi Attorney General’s Office and prosecuted by AUSA Clay Dabbs.
Claypool, Indiana Man Sentenced to 100 Months in PrisonRead the Press Release
SOUTH BEND – Seth Allen, 29 years old, of Claypool, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio, after pleading guilty to possessing a firearm after having been convicted of a felony, announced U.S. Attorney Kirsch.
The Court imposed a sentence of 100 months incarceration and 1 year of supervised release.
According to documents in the case, on January 3, 2018, Allen possessed and sold an Intratec model Tec-DC9, nine-millimeter Luger semi-automatic pistol to another individual. Allen had previously been convicted of a felony and has had multiple other criminal convictions since turning 18 years old.
This case was investigated by ATF with assistance from the Warsaw Police Department, and prosecuted by Assistant United States Attorney Jesse Barrett.
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Buffalo Man Sentenced for Selling Thousands of Bags of HeroinRead 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 Emmanuel Lopez, 27, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, 100 grams or more of heroin, was sentenced to 63 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2016 and December 5, 2017, the defendant sold heroin and fentanyl in the Buffalo area. In October 2017, the ICE-HSI Border Enforcement Security Team (BEST) conducted two controlled purchases from Lopez. During the buys, the defendant turned over 52 small yellow bags, which later tested positive for heroin, fentanyl, and tramadol.
At other times in October and November 2017, HSI agents observed Lopez engage in hand-to-hand transactions with suspected heroin customers. On at least one occasion, one of the customers was stopped by law enforcement and found to be in possession of suspected heroin. During a subsequent interview, the customer admitted to buying heroin from the defendant and the customer’s phone contained the defendant’s cell phone number.
Lopez was arrested on December 5, 2017. HSI agents then executed a federal search warrant at the defendant’s residence on Riverside Avenue in Buffalo. At the time of Lopez’s arrest, agents found $2,556 in cash in the pocket of the defendant’s sweatshirt, and his cellular telephone.A subsequent search of the defendant’s cellular telephone established that during the latter part of 2017, Lopez sold approximately 6,022 bags of heroin.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Team, under the direction of Special Agent-in-Charge Kevin Kelly.
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Bridgeport Man Admits Selling Heroin While Awaiting Sentencing for Selling Heroin to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARRYCK NORRIS, 25, of Bridgeport, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to distributing heroin while released on bond and awaiting sentencing for a prior heroin distribution offense.
According to court documents and statements made in court, at approximately 8:49 p.m. on October 27, 2016, Milford Police and emergency medical personnel responded to a residence in Milford and found an unresponsive 37-year-old male slumped over in the downstairs living area of the residence. Emergency personnel attempted lifesaving measures and administered two doses of the opiate antidote Narcan, which had no effect. The victim was pronounced deceased. Officers searched the immediate area and seized four empty baggies and one full baggy that contained suspected heroin. Each of the bags was stamped with the same brand stamp.
Officers also seized the victim’s iPhone. Analysis of text messages revealed that the victim had ordered heroin from NORRIS earlier that day. Witness interviews and further cellphone analysis revealed that the victim had purchased heroin from NORRIS for several months prior to the victim’s overdose.
On November 1, 2016, members of the DEA and Milford Police Department conducted a controlled purchase of heroin from NORRIS in Bridgeport. The heroin bags purchased were stamped with the same stamp that was found on the bags seized from the overdose victim’s residence.
NORRIS was arrested on a federal criminal complaint on November 3, 2016, and was released on a $50,000 bond. On May 17, 2017, he pleaded guilty to one count of distribution of heroin.
Judge Underhill allowed NORRIS to remain released on bond pending sentencing, and granted NORRIS’s request to attend the U.S. District Court’s Support Court program.
On February 16, 2018, NORRIS was arrested by the Bridgeport Police Department and charged with possession of narcotics with intent to sell, and other offenses. Subsequent investigation revealed that NORRIS had been distributing heroin between approximately December 2017 and his arrest on February 16.
When he is sentenced, NORRIS faces a maximum term of imprisonment of 20 years on each count of distribution of heroin. A sentencing date is not scheduled.
NORRIS is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Task Force, and the Milford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bellaire Man Charged in Ponzi SchemeRead the Press Release
HOUSTON – A 60-year-old resident of Bellaire made his initial appearance on a 13-count indictment charging him with wire fraud, mail fraud and money laundering, announced U.S. Attorney Ryan K. Patrick.
William Andrew Hightower surrendered to federal authorities yesterday.
He was president of Hightower Capital Group (HCG) which he founded it in 2010. There, he held himself out to be an investment advisor.
The 13-count indictment alleges Hightower took money from clients from 2013-2018 and made false promises as to their investments. In reality, according to the charges, he was conducting a Ponzi Scheme.
Hightower would allegedly tell investors their money was being invested in various projects, such as restaurants, movies, insurance contracts, among other things. The indictment alleges Hightower received more than $10 million from investors, many of whom believed Hightower was investing their money in legitimate projects. According to the allegations, Hightower used investor funds to pay earlier investors in a Ponzi Scheme, pay himself and fund his lifestyle.
Hightower also concealed from his clients that the Financial Industry Regulatory Authority (FINRA) had barred him from acting as a broker or otherwise associating with a broker-deal firm in October 2015, according to the indictment.
If convicted, he faces up to 20 years in federal prison for each count as well as a thousands of dollars in possible fines.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty through due process of law.
Batavia Man Charged with Stealing More Than A Dozen Firearms from A Gun Store in Bergen, NYRead 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 Morgan R. Coles, 20, of Batavia, NY, was charged by criminal complaint with stealing from a federal firearm licensee, and possession of a defaced firearm. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, on September 26, 2018, the defendant forcibly entered The Firing Pin, a Federal Firearms Licensee located at 8240 Buffalo Road in Bergen, NY. Coles made entry through a gable vent located on the roof of the building.
On September 27, 2018, an ATF Special Agent reviewed video surveillance, provided by the owner, of the break in. The video shows the defendant entering the retail portion of The Firing Pin from the range area, and is seen removing 14 firearms from the shelf and appears to place them into a bag. The video also shows Coles using a light, possibly from a cell phone, to navigate around the retail area. The surveillance video shows the defendant exiting the store through the range area.
On October 3, 2018, the Genesee County Sheriff’s Office obtained a search warrant for the residence of Coles on Jackson Street in Batavia, as well as another residence and a vehicle associated with the defendant. During the execution of search warrants, officers located 15 handguns at Coles's residence. Fourteen of the handguns had obliterated serial numbers. According to the complaint, the handguns found at the defendant's residence appear to match the descriptions of the handguns stolen from The Firing Pin.
Coles was arrested and charged in City Court of Batavia in Genesee County with Criminal Possession of a Weapon in the First Degree, a Class B felony.The defendant will make an initial appearance on October 17, 2018, before U.S. Magistrate Judge Jeremiah J. McCarthy.
The complaint is the result of an investigation by the Genesee County Sheriff's Office, under the direction of Sheriff William A. Sheron, Jr., and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #Attorney General Jeff Sessions Welcomes Jeffrey Clark as Assistant Attorney General for the Environment and Natural Resources DivisionRead the Press Release
Attorney General Jeff Sessions welcomed the confirmation of Jeffrey Bossert Clark as the Assistant Attorney General of the Department of Justice’s Environment and Natural Resources Division (ENRD) today.
“Jeff Clark is one of the leading environmental litigators in the country, and has been counsel in many of the most significant environmental and natural resource cases of the past two decades, both here at the Department of Justice and in private practice,” said Attorney General Sessions. “Jeff has four years of experience as part of the Environment and Natural Resources Division leadership team, working on virtually every case that the division litigated in the courts of appeals and every environmental case argued before the Supreme Court. He is ready to lead this Division — and it should not have taken us 16 months to get him confirmed. And so today I want to congratulate Jeff and to thank my former colleagues in the Senate for confirming his nomination to this important role.”
ENRD is responsible for litigation in trial and appellate courts on behalf of the United States regarding the prevention and clean-up of pollution, challenges to federal programs and activities, the stewardship of public lands and natural resources, property acquisition to promote national security, wildlife protection, and Indian rights and claims.
Prior to his appointment as Assistant Attorney General, Mr. Clark was a partner with the international law firm of Kirkland & Ellis LLP in its Washington, D.C. office. During his time at the firm, he practiced in diverse areas of law, ranging from environmental to antitrust. Mr. Clark has argued and won numerous cases in multiple U.S. Courts of Appeals. He has deep experience in matters involving the Clean Air Act, the National Environmental Policy Act, the Energy Policy and Conservation Act of 1975, and the Energy Independence and Security Act of 2007.
Before joining the firm, Mr. Clark served as a Deputy Assistant Attorney General within ENRD from 2001 to 2005. In that role, he oversaw ENRD’s Appellate Section and the Indian Resources Section, where he reviewed, edited, and contributed to virtually every brief ENRD filed in the Courts of Appeals, including several cases of exceptional significance that he personally briefed and argued. During his time in ENRD, Mr. Clark also worked on all environmental or natural resource cases argued in front of the Supreme Court.
Mr. Clark received his bachelor’s degree in Economics and History from Harvard University and earned a master’s degree in Urban Affairs and Public Policy from the University of Delaware. He obtained his law degree from the Georgetown University Law Center, where he was an editor for the Georgetown Law Journal.
Attorney General Jeff Sessions Welcomes Eric Dreiband as Assistant Attorney General for the Civil Rights DivisionRead the Press Release
Attorney General Jeff Sessions today welcomed the confirmation of Eric Dreiband as the Department of Justice’s Assistant Attorney General for the Civil Rights Division.
“Eric has distinguished himself as an outstanding lawyer and a committed public servant,” said Attorney General Jeff Sessions. “His previous experience in protecting the civil and constitutional rights of all individuals will enable him to effectively lead the Civil Rights Division.”
Mr. Dreiband’s background spans the public and private sector, and also the issues covered by the Civil Rights Division. He previously served as the General Counsel of the United States Equal Employment Opportunity Commission (EEOC) from 2003-2005. As General Counsel, he led litigation teams on a number of federal employment discrimination enforcement matters, including enforcement of the Civil Rights Act of 1964. Prior to his tenure at the EEOC, Mr. Dreiband served as Deputy Administrator of the Department of Labor’s Wage and Hour Division. In this capacity, he helped lead enforcement efforts for the federal government of the Fair Labor Standards Act, the Family and Medical Leave Act, among other laws.
Prior to his nomination by President Trump to serve as the Assistant Attorney General for the Civil Rights Division, Mr. Dreiband was a partner in the Washington, D.C. office of the law firm of Jones Day. Mr. Dreiband received his J.D., with honors, from Northwestern University Pritzker School of Law, his M.T.S. from Harvard Divinity School, and his A.B. from Princeton University.
Atlantic City Police Officer Charged with Civil Rights and Other OffensesRead the Press Release
CAMDEN, N.J. - A federal grand jury has indicted an Atlantic City police officer for multiple offenses arising from an assault outside the Tropicana Hotel and Casino in June 2013, U.S. Attorney Craig Carpenito announced.
In an indictment returned Oct. 10, 2018, and unsealed today, Sterling Wheaten, 34, of Mays Landing, New Jersey, was charged with one count of violating an individual’s civil rights and one count of falsifying a record for submitting a false police report about the assault. He made his initial appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
On June 15, 2013, Wheaten was working in his official capacity as an Atlantic City Police Department (ACPD) officer with his K-9 partner. That day, four ACPD officers encountered the victim in the area of the Tropicana. After the victim was told to leave the area, the victim walked across Morris Avenue and began yelling threats and obscenities at the police officers. After several minutes, ACPD Officer #1 ran across the street toward him to arrest him.
While ACPD Officer #1 and other officers attempted to grab the victim, the victim pulled away and grabbed ACPD Officer #1 around the waist as the victim was taken to the ground. ACPD Officer #1 fell to the ground with the victim on top of him. Three ACPD Officers, Officers #2 through #4, pulled the victim from on top of ACPD Officer #1. The four officers then delivered knee strikes to the victim’s shoulder and back, punches to the victim’s back, and baton strikes to the victim’s back and legs. Eventually, ACPD Officer #5 arrived and delivered two knee strikes to the victim before successfully handcuffing the victim’s left hand.
During the struggle, which lasted less than two minutes, ACPD Officers radioed for the assistance of a K-9 Officer. Wheaten responded to the call. When he arrived, the victim was laying on his stomach with ACPD Officer #1 kneeling on the victim’s head/neck area and several ACPD Officers were pressing on the victim’s back and legs.
Wheaten immediately took his dog out of the vehicle and ran directly at the victim and the five ACPD Officers. ACPD Officer #5 got off of the victim while still holding the handcuff, which caused the victim’s chest to be exposed to the dog. Without issuing a warning that he would deploy the dog, or allowing the victim a chance to surrender, Wheaten released the dog, and the dog bit the victim in the chest.
The victim pushed the dog off of his chest and rolled to his side. The dog bit the victim on the back of his neck. Wheaten did not immediately remove the dog from the back of the victim’s neck, but instead told the dog to “hold” on the victim’s neck. During his training at the K-9 Academy, Wheaten was trained that the only type of K-9 apprehension that has resulted in the death of a suspect occurred when a K-9 bit a suspect on his neck, and that even though the K-9 was immediately recalled and medical care given, the suspect died.
While the dog was biting the back of the victim’s neck, Wheaten punched the victim twice in the shoulder/neck area. Eventually, the victim was handcuffed and the dog was placed into the police vehicle. ACPD Officer #6 administered first aid to the victim’s head and neck until paramedics arrived. The victim was taken to AtlanticCare Regional Medical Center in Atlantic City in police custody, where he was treated for dog bites to his head, neck and chest.
After the victim was transported to the hospital, Wheaten and ACPD Officers #1 through #5, returned to the police station to prepare their reports. Prior to writing the reports, ACPD Officer #1 obtained Tropicana’s surveillance video of the assault. Wheaten met with ACPD Officers #1 through #4 and they watched the security video from the Tropicana before preparing their police reports.
To justify his actions against the victim, Wheaten prepared and submitted false and fraudulent police reports. He wrote that the victim was “fighting my K9 partner,” “[struck] my partner with his right hand,” “a further violent struggle ensued,” and, in an effort to falsely justify the utilization of the K-9, that the “suspect violently assaulted uniformed law enforcement officer[s] with hands and fists . . . .” As part of the report, Wheaten, in an effort to falsely justify the closed fist punches to the victim, falsely stated that he feared that the victim “was going to get up and retrieve his weapon to injure us or flee the area endangering the public.” As part of the report, Wheaten falsely stated that he provided first aid to the victim’s wound until the ambulance/EMT arrived.
The violation of civil rights count carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden in the criminal case.
The charges and accusations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Pleads Guilty to Federal Bank Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gabriel Stephens, 37, of Albuquerque, N.M., pled guilty today in federal court to bank robbery and firearms charges.
The FBI, with assistance from the Rio Rancho Police Department, arrested Stephens in Feb. 2018, on a criminal complaint charging him with robbing the Mountain America Credit Union located at 9200 Golf Course Rd. NW in Albuquerque on Feb. 7, 2018, and the Rio Grande Credit Union located at 1526 Unser Blvd., in Rio Rancho, N.M., on Feb. 17, 2018. During both robberies, Stephens gave bank tellers a note demanding money and the bank tellers responded by placing money into Stephens’ backpack. During the Feb. 7, 2018, bank robbery, Stephens motioned as though he was holding a firearm inside his backpack, and during the Feb. 17, 2018, bank robbery he showed the bank teller a firearm located inside his backpack.
Stephens was indicted on March 13, 2018, and was charged with armed bank robbery and with using and carrying a firearm during and in relation to a crime of violence. The indictment was superseded on April 24, 2018, and charged Stephens with bank robbery of the Mountain America Credit Union on Feb. 7, 2018, in Bernalillo County, N.M.; armed bank robbery of the Rio Grande Credit Union on Feb. 17, 2018, in Sandoval County, N.M.; and using and carrying a firearm during and in relation to a crime of violence on Feb. 17, 2018, in Sandoval County.
During today’s proceedings, Stephens pled guilty to armed bank robbery and using and carrying a firearm during and in relation to a crime of violence. In entering the guilty plea, Stephens admitted that on Feb. 17, 2018, he entered the Rio Grande Credit Union and gave the teller a note, which demanded money. Stephens further admitted that as the teller was handing him money, Stephens opened his bag so the teller could see the firearm that was inside the bag.
At sentencing, Stephens faces a maximum penalty of 25 years in federal prison on the armed bank robbery charge and a mandatory minimum penalty of five years in federal prison for using and carrying a firearm during and in relation to a crime of violence, which must be served consecutive to the sentence imposed on the bank robbery charge. Stephens remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Rio Rancho Police Department. Assistant U.S. Attorney James D. Tierney is prosecuting the case.
7 Members of New Rochelle Drug Trafficking Organizations and 3 Members of Bridgeport Drug Trafficking Organization Charged in Federal Courts with Narcotics ConspiracyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John H. Durham, United States Attorney for the District of Connecticut, William F. Sweeney, Assistant Director in Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), James J. Hunt, Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Brian D. Boyle, Special Agent in Charge of the New England Division of the DEA, Brian C. Turner, Special Agent in Charge of the FBI, New Haven, and Joseph F. Schaller, the Commissioner of the New Rochelle Police Department, announced the results of a coordinated operation earlier today, in which federal, state, and local law enforcement officers arrested six defendants in Westchester County, New York, and three defendants in Fairfield County, Connecticut.
Ten defendants are charged in two federal indictments, unsealed today. Seven of the defendants were charged in the Southern District of New York with conspiracy to distribute five kilograms and more of cocaine and 50 grams and more of methamphetamine in and around New Rochelle, New York, since at least April 2018. The U.S. Attorney’s Office for the District of Connecticut has charged an additional three defendants with narcotics offenses, including conspiracy to distribute 500 grams and more of cocaine. Those defendants arrested today who are charged in the federal indictment in the Southern District of New York were presented in White Plains federal court today before Magistrate Judge Paul E. Davison.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Our Office is committed to ridding New York neighborhoods of highly addictive and extremely dangerous drugs. And we will continue to help coordinate our efforts with other U.S. Attorney’s Offices and local and federal law enforcement agencies.”
Connecticut U.S. Attorney John H. Durham stated: “We allege that these individuals were responsible for bringing significant amounts of cocaine and methamphetamine into our state. I thank our federal, state and local law enforcement partners for their diligent efforts in these cases, and our counterparts in the Southern District on New York for coordinating with us in these investigations and today’s take down of the most significant members of this organization.”
FBI Assistant Director-in-Charge of the New York Field Office William F. Sweeney stated: “The distribution of illegal narcotics continues to be a scourge on our communities. As alleged, these defendants profited from trafficking cocaine and methamphetamines at the expense of those subjected to all the negatives wrought by these substances. Today’s charges should serve as a reminder that the FBI, through our Westchester County Safe Streets task force, will continue to target these offenders and the impact they are having on our communities.”
FBI Special Agent-in-Charge of the New Haven Office Brian C. Turner stated: “Despite the ongoing battle against the opioid crisis in our communities, this indictment should make it abundantly clear that we at the FBI, along with all of our law enforcement partners, have not lost sight of the other illicit drugs and those that traffic them. Together we will continue to pursue those that seek to pollute our communities.”
DEA New York Special Agent-in-Charge James J. Hunt stated: “Earlier this year, DEA joined forces with FBI and the New Rochelle Police Department to dismantle a drug trafficking organization operating in Westchester and Fairfield Counties. By shutting down this family-run methamphetamine operation, lives will be saved. I applaud the efforts of our law enforcement partners and the US Attorney’s Offices Southern District of New York and District of Connecticut.”
DEA New England Special Agent-in-Charge Brian D. Boyle stated: “DEA is committed to investigating and dismantling large-scale poly drug trafficking organizations like this one operating in the Bridgeport, Connecticut, area. As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, ravages the very foundations of our families and communities. This investigation demonstrates the strength of collaborative local, state, and federal law enforcement efforts to seek and bring to justice anyone who engages in these crimes.”
New Rochelle Police Commissioner Joseph F. Schaller stated: “This is another example of the excellent work being performed by the joint federal, state and local drug enforcement task forces operating in Westchester and Fairfield Counties. The City of New Rochelle and the New Rochelle Police Department thank our law enforcement partners in this operation for their exceptional efforts and invaluable assistance in removing a significant number of dangerous drug traffickers from the streets of our city.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From April 2018 up to October 2018, ULYSSES LOPEZ, VALENTINO LOPEZ, and CHRISTIAN LOPEZ conspired to distribute five kilograms and more of powder cocaine and 50 grams and more of methamphetamine, and FELIPE BARAJAS, a/k/a “Felipe Barajas Gallegos,” JOSE OCEGUERA, a/k/a “Cande,” FELIPE CORTES, and SATURNINO OLIVER FARIAS, a/k/a “Genaro Robles,” conspired to distribute five kilograms and more of powder cocaine.
As alleged in the Indictment unsealed today in New Haven federal court:
From March 2018 through June 26, 2018, RAFAEL LOPEZ-MACIAS, a/k/a “Rafa,” a/k/a “Martin Sanchez,” JAIME LOPEZ, a/k/a “Compa,” and JUAN CARLOS FIGUEROA, a/k/a “Chaito,” conspired to distribute 500 grams or more of powder cocaine. In addition, on June 26, 2018, RAFAEL LOPEZ-MACIAS possessed with intent to distribute 500 grams and more of methamphetamine, and on June 7, 2018, JAIME LOPEZ possessed with intent to distribute a quantity of cocaine.
The defendants charged in White Plains federal court each face a maximum sentence of life imprisonment, and a mandatory minimum term of 10 years in prison. The defendants charged in New Haven federal court each face a maximum sentence of 40 years in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman and Mr. Durham praised the outstanding investigative work of the FBI, DEA, the Connecticut State Police, and the New Rochelle, Norwalk and Stamford Police Departments. Mr. Berman also thanked the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance and the U.S. Attorney’s Office for the District of Connecticut for its ongoing coordination in the case.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
These cases are being prosecuted by Assistant United States Attorneys Emily Deininger and Celia Cohen of Southern District of New York’s White Plains Division, and by Assistant United States Attorneys Anthony Kaplan and Lauren Clark of the District of Connecticut.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.