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16 November 2018
Bank Executive and Husband Sentenced after Embezzling $2.7 MillionRead the Press Release
BOSTON – A former Senior Vice President at Bank of America and her husband were sentenced in federal court in Boston for embezzling more than $2.7 million from the bank using fraudulent donations to non-profit organizations.
Palestine Ace, a/k/a Pam Ace, 45, a former Senior Vice President of Bank of America’s Global Wealth & Investment Management Division, was sentenced on Nov. 14, 2018, by U.S. District Court Judge Allison D. Burroughs to one year and one day in prison, two years of supervised release and ordered to pay restitution of $2,778,000. Her husband, Jonathan R. Ace, 46, was sentenced yesterday by Judge Burroughs to two years in prison, two years of supervised release and ordered to pay restitution of $1,855,000. In February 2018, Palestine Ace pleaded guilty to one count of conspiracy to commit bank fraud, five counts of wire fraud, and 12 counts of bank fraud; Jonathan Ace pleaded guilty to one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of engaging in an unlawful monetary transaction.
From approximately October 2010 to April 2015, the couple engaged in an embezzlement and kickback scheme to defraud Bank of America of approximately $2.7 million using fraudulent donations to non-profit organizations. As part of the scheme, Palestine Ace used her position as a Senior Vice President at Bank of America to misappropriate funds from a marketing budget and transfer the money to non-profit organizations. Specifically, Palestine Ace authorized 75 transactions, each under $50,000, to non-profit organizations in Boston and Atlanta. Then, the couple, either directly or indirectly, informed the non-profit organizations that a substantial portion of the donated funds had to be returned in order to ensure that Bank of America would continue to fund the organization. The non-profit organizations either wrote a check to Jonathan Ace or a co-conspirator, or they returned funds to a Bank of America account, to which the couple had access. On various occasions, Jonathan Ace pressured the recipients of the donated funds to return a higher percentage of the funds to him, by using intimidation and threats of public humiliation.
Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Gross; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Neil J. Gallagher of Lelling’s Securities and Financial Fraud Crimes Unit prosecuted the case.
Austin Man Sentenced to Federal Prison for Firearms Smuggling SchemeRead the Press Release
In Austin today, U.S. District Judge Robert Pitman sentenced 28–year–old Austin resident Tyler Carlson to 70 months imprisonment followed by two years of supervised release for his role in a firearms smuggling scheme involving machineguns and assault weapons, announced U.S. Attorney John F. Bash; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, U.S. Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division.
On April 23, 2018, Carlson pleaded guilty to one count of conspiracy to violate multiple U.S. laws, including illegal exportation of munitions and unlawful possession and transfer of machineguns. Carlson also pleaded guilty to one count of possession of a machinegun.
According to court documents, Carlson conspired with others to violate multiple federal firearms laws, including possessing and transferring unregistered machineguns and unlawfully exporting firearms to Mexico. Carlson worked with others to acquire and unlawfully smuggle 200 firearms, including .50 caliber rifles, and hundreds of thousands of rounds of ammunition to Mexico.
Court documents also reflect that Carlson worked with 69–year–old former law enforcement officer and federal firearms licensee Michael Fox of Georgetown, TX, to illegally acquire multiple M-134G Minigun machineguns. The M-134G is a six-barrel rotary machine gun that can fire between 2,000 and 6,000 rounds of ammunition per minute. Fox, a co-defendant, contacted 63–year–old Tracy Garwood, another co-defendant and owner of the M-134G manufacturer Garwood Industries in Arizona, who agreed to help with the construction and supply Fox with M-134G parts. Records indicated that Garwood did not know the M-134Gs were to be smuggled illegally to Mexico. However, Garwood submitted false paperwork to the ATF claiming he had destroyed multiple M-134G rotor housings—a key component of the M-134G that must be serialized and registered with the ATF. Instead, Garwood unlawfully transferred possession of those rotor housings to Fox.
On February 8, 2017, authorities recovered three M134G rotor housings while executing a search warrant at Fox’s residence. Two of the rotor housings were ones that Garwood told ATF were destroyed. Court records indicate that multiple M-134Gs were successfully smuggled into Mexico by Carlson and coconspirators who were prosecuted in the Southern District of Texas. Through efforts by U.S. and Mexican law enforcement, one of those M-134Gs was recovered by law enforcement in Mexico.
On September 7, 2018, Judge Pitman sentenced Garwood to two years probation and ordered him to pay a $50,000 fine after he pleaded guilty to the conspiracy charge in May 2018. Garwood agreed to divest himself from ownership of his company. As a convicted felon, he can no longer possess firearms.
Fox, who faces up to five years in federal prison after pleading guilty to the conspiracy charge in July 2018, is scheduled for sentencing on January 11, 2019, in Austin before Judge Pitman.
“Firearms trafficking is a priority for ATF because of the increased potential for those guns to be acquired by the criminal element,” said ATF Special Agent in Charge Fred Milanowski.
“This investigation is example of a transnational criminal organization conspiring with individuals in the United States to straw purchase weapons and munitions for the purpose of illegal export. HSI works around the clock with its foreign law enforcement partners to arrest and prosecute these criminals,” said HSI Special Agent in Charge Folden.
“We remain steadfast in our resolve to seek justice to the end and defend the nation’s mail service from illegal use. This goal is achieved through collaborative investigative efforts with other law enforcement agencies,” stated USPIS Inspector in Charge Adrian Gonzalez.
The ATF, HSI, and USPIS conducted this investigation. The U.S. Marshal Service assisted with the deportation of Carlson from Mexico in October 2017. The U.S. Attorney’s Offices for the Southern District of Texas and the District of Arizona provided assistance during this investigation. Assistant U.S. Attorney Michael C. Galdo is prosecuting this case on behalf of the Government.
Arnaudville man sentenced to 90 years in prison for producing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that an Arnaudville man was sentenced to 90 years in prison for producing child pornography.
Joseph Martin, 35, of Arnaudville, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on three counts of production of child pornography. He was also sentenced to 20 years of supervised release if he is ever released and must register as a sex offender. According to the June 4, 2018 guilty plea, law enforcement agents executed a search warrant at Martin’s property and found electronic storage devices in a shed on the property. Upon review of the electronic storage devices, agents found numerous videos of child pornography that Martin had made. Some of the child pornography depicted a child of approximately 4 years old and others depicted a child of approximately 10 months old. The images dated back to 2015.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 262-2164.
The FBI conducted the investigation. Assistant U.S. Attorney Robert A. Abendroth prosecuted the case.
Arms Trafficker Found Guilty of Conspiring to Supply and Use Anti-Aircraft Missiles after Pleading Guilty to other Arms OffensesRead the Press Release
LOS ANGELES – A federal jury has convicted a black-market arms dealer of conspiring to acquire, transfer and use missiles designed to shoot down aircraft.
Rami Najm Asad-Ghanem, 52, who was commonly known as Rami Ghanem, a naturalized United States citizen who was living in Egypt at the time of the offenses, was found guilty of the missile conspiracy charge late Thursday afternoon in United States District Court. The jury returned the verdict at the conclusion of a nine-day trial.
The evidence at trial showed that Ghanem conspired to transfer a wide array of different surface-to-air missile systems to customers around the world, including clients in Libya, the United Arab Emirates, Iraq and other countries. During the trial, prosecutors presented evidence – which included Ghanem’s electronic communications, his recorded statements, and the corroborating testimony of co-conspirators taken abroad – that demonstrated he conspired to use Russian-made Igla and Strela surface-to-air missile systems by brokering the services of mercenary missile operators to a militant faction in Libya in 2015. Among other actions, Ghanem negotiated the salaries and terms of service of the mercenary missile operators, coordinated their payment, facilitated their travel to Libya, and offered them a $50,000 bonus if they were successful in their mission of shooting down airplanes flown by the internationally recognized government of Libya.
“With the wide range of weapons being offered for sale, this case demonstrates the dangers of underground arms trafficking to the international community and to the security of U.S. forces operating abroad,” said United States Attorney Nick Hanna. “This complicated case was successfully prosecuted as a result of the diligent efforts of federal law enforcement authorities conducting international operations, obtaining evidence from foreign nations and piecing together illicit arms deals in several nations. The successful conclusion of this case is a clear message to arms dealers that there will be severe consequences for providing weapons of war through the black market.”
“Safeguarding our military equipment and technology is vital to our nation’s defense, the protection of our war fighters and a top enforcement priority for HSI,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “The successful outcome of this case is a direct result of the steadfast efforts of our domestic and international law enforcement partners to keep dangerous weapons out of the hands of transnational criminal organizations and foreign enemies that would do us harm. HSI will continue to aggressively target individuals who seek to illegally procure and sell items aimed at causing serious harm to the security of our nation.”
On October 29, Ghanem pleaded guilty to six other federal crimes arising from a variety of arms-trafficking activities, including the unlicensed export of weapons and ammunition, smuggling, money laundering and unlicensed arms brokering.
The investigation into Ghanem started in mid-2014, when a Los Angeles-based supplier of military supplies alerted the U.S. government that it had been solicited to provide equipment to Ghanem. During an undercover operation, an HSI agent developed a relationship with Ghanem, who was seeking to procure a number of armaments – including sniper rifles and night-vision optics – but Ghanem affirmed that the transactions had to be “under the table.” During subsequent meetings with the undercover operative in Athens, Ghanem expressed an interest in purchasing helicopters and fighter jets on behalf of Iranian clients, and Ghanem said he had relationships with Hezbollah in Iraq.
Over the course of several months in 2015, Ghanem discussed his interest in purchasing numerous weapons, and in August 2015 placed an order for $220,000 worth of sniper rifles, pistols, silencers, laser sights, ammunition, night-vision goggles and other items that were to be shipped to Libya. After making two down payments, Ghanem was arrested on December 8, 2015, in Athens. He was extradited to the United States in April 2016 to face prosecution in this case and has remained in custody without bond since the time of his arrest.
After his arrests, authorities seized numerous digital devices that Ghanem had in his possession. Searches of those devices revealed evidence of other large-scale arms brokering activities, including millions of rounds of ammunition, anti-tank missiles, and the scheme to transfer and use anti-aircraft missiles.
“The guilty verdict in the trial of Ghanem demonstrates the Defense Criminal Investigative Service’s unwavering commitment to protect our country from those who seek to inflict harm on it,” said Chris Hendrickson, Special Agent in Charge, DCIS Western Field Office. “DCIS, along with our federal law enforcement partners, will relentlessly pursue those who put our military and our foreign military partners at risk by illegally obtaining and exporting protected U.S. military assets for use against our military and our foreign military partners.”
“This guilty verdict is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to combat the illegal shipment of sophisticated technology. We will continue to aggressively pursue violators wherever they may be,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
United States District Judge S. James Otero, who presided over Ghanem’s trial, has scheduled a sentencing hearing for March 4, 2019.
As a result of Thursday’s guilty verdict on the missile-trafficking charge, Ghanem will face a mandatory minimum sentence of 25 years in federal prison and a statutory maximum sentence of life imprisonment.
Last month, Ghanem pleaded guilty to attempted exportation of defense articles without a license, smuggling, two counts of money laundering, conspiracy to illegally broker a wide range of weapons and illegal arms brokering. In relation to the charges to which he pleaded guilty, Ghanem faces a statutory maximum sentence of 20 years for each of the weapons exportation, arms brokering and money laundering counts. On the smuggling count, Ghanem faces a statutory maximum sentence of 10 years in prison. On the conspiracy count, he faces a statutory maximum sentence of 5 years in prison.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Department of Defense’s Criminal Investigative Service; and the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant support in the investigation and securing the defendant’s extradition from Greece.
The case is being prosecuted by Assistant United States Attorneys Melissa Mills and George E. Pence IV of the United States Attorney’s Office’s Terrorism and Export Crimes Section, and by Trial Attorney Christian E. Ford of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Acting Attorney General Whitaker Statement on the 25th Anniversary of the Religious Freedom Restoration ActRead the Press Release
Acting Attorney General Matthew Whitaker today released the following statement:
“Today marks the 25th anniversary of the Religious Freedom Restoration Act (RFRA), an important law protecting one of our most fundamental freedoms. RFRA was approved by Congress with overwhelming bipartisan support, passing the House unanimously and approved 97 to 3 in the Senate, and signed into law by President Clinton.
“RFRA ensures that our foundational freedom of religious liberty is protected: the right to believe, worship, and practice our faiths according to the dictates of our consciences.
“RFRA requires that whenever actions by the federal government would impose a substantial burden on a person’s religious exercise, the government must give reasons for doing so. And unless the government has a compelling reason, and the government action burdens religion no more than is necessary, RFRA requires that the government accommodate religious freedom.
“It is a remarkable thing for any government to impose such restraints on itself. It is much easier for a government to operate in a manner it believes to be most effective and disregard the costs on individual liberty and conscience. The enactment of RFRA was a bold affirmation that religious freedom and freedom of conscience are precious and deserving of protection, even if this may make things harder for the government.
“The enactment of RFRA was also a re-affirmation of America’s promise to protect religious minorities, which stretches back to George Washington’s promise to the Jewish Congregation in Newport that they would find not only tolerance but equal rights in America, and President Lincoln’s granting of conscientious objector status to Quakers during the Civil War. Minority faiths have been protected by RFRA over the past 25 years.
“Today we celebrate the anniversary of this law and renew our commitment to protecting the freedom of all Americans to exercise their religious convictions openly, in speech and actions. Under President Donald Trump, the Department of Justice will continue defend the rights of people of faith.”
40 Year Sentence Imposed by Federal Judge in Child Exploitation CaseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that today the Honorable Christopher C. Conner sentenced Mason David Powell, age 30, a resident of Biglerville, Pennsylvania to 40 years in federal prison following a three hour sentencing hearing.
According to United States Attorney David J. Freed, officers from the Cumberland Township Police Department initially arrested Powell in Biglerville, PA on October 17, 2015. This arrest followed a concerned parent’s report to the local police that Powell was inappropriately chatting with her minor son. With consent from this parent to assume the minor’s online identity, law enforcement set up a meeting with Powell, who continued to believe he chatted with a minor. Powell arrived at the arranged location to meet the 13 year-old he had been chatting with online and brought two other minors with him. Officers greeted Powell and took him into custody at that time. The Adams County District Attorney’s Office charged Powell with child exploitation offenses relating to a number of minors.
During the investigation, the FBI and the local authorities located online messages Powell exchanged with several minors soliciting naked images of their genitals or attempting to coerce the minors to meet with Powell to engage in sex acts. Powell confessed to soliciting at least 20 minors in this manner. Law enforcement also discovered over 1,000 images of commercially downloaded child pornography of minors as young as infants on Powell’s phone.
On October 28, 2016, Powell pleaded guilty to all counts of the federal indictment and admitted to both producing and possessing images of child pornography that were found on Powell’s phone and in the online chats. In addition, Powell also pleaded guilty to attempting to coerce a minor victim to engage in sexual activity with him.
Before the Court imposed the 40 year sentence, the defense offered testimony from defense expert Dr. Frank Dattilio, a psychologist. Dr. Dattilio opined Powell is predatory, manipulative and on the high end of moderate risk to reoffend without treatment based on Powell’s abuse of numerous minors in the local Adams County community and his collection of pornographic images of prepubescent children from the internet.
Chief Judge Conner rejected the defense’s request to impose only the mandatory minimum of 15 years, stating Powell is “clearly a sexual predator” and a “serious danger to the community” and imposed a 40 year sentence, to be followed by lifetime supervised release.
This case was investigated by the Federal Bureau of Investigation, the Adams County District Attorney’s Office and the Cumberland Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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15 November 2018
Youngstown Doctor Failed to Pay IRS Nearly $900K in Employment and Income TaxesRead the Press Release
PITTSBURGH – A resident of Wexford, Pennsylvania, pleaded guilty in federal court to a charge of willful failure to pay over taxes, United States Attorney Scott W. Brady announced today.
William L. Houser, Jr., 58, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Houser, a licensed medical doctor and practitioner in Youngstown, Ohio, was required to withhold monies from the paychecks of his employees to cover their individual income, Social Security, and Medicare tax obligations, referred to as trust fund monies, and to remit the trust fund monies to the Internal Revenue Service (IRS) on a quarterly basis. He was also required to pay over to the IRS matching contributions for Social Security and Medicare, commonly known as employment taxes. Houser failed to pay over both employment and trust fund taxes during the period September 2009 through December 2014. He pleaded guilty to one count charging him with failing to pay over to the IRS trust fund taxes totaling $7,057.75, due by January 31, 2014, and agreed to pay the IRS restitution totaling $899,269 for both employment and income taxes that he failed to pay.
Judge Conti scheduled sentencing for March 7, 2019 at 3:30 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Houser was released on an unsecured bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation that led to the prosecution of Houser.
Wood County Woman Sentenced for embezzling $1.8 million from California CompaniesRead the Press Release
TYLER, Texas – A 49-year-old, Hawkins, Texas, woman has been sentenced to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Lina Su, also known as Lina Perkins, pleaded guilty on June 7, 2018, to two counts of wire fraud and one count of money laundering and was sentenced to 80 months in federal prison today by U.S. District Judge Thad Heartfield. Su was also ordered to pay restitution in the amount of $1,815,765.96.
Su, a naturalized citizen from Taiwan, was a financial controller splitting time between living in Hawkins, Texas and Los Angeles. According to information presented in court, in March of 2017, Su made several unauthorized wire transfers from VIG Furniture bank accounts into an account she controlled at City National Bank in Sulphur Springs, Texas. In 2015 and 2016, she also made unauthorized transfers from Airport Van Rental and ACE Medical Transport bank accounts into her personal checking account. In addition, Su used funds from those companies’ accounts to make personal credit card payments, purchase land for herself, and pay contractors constructing her home in Wood County, Texas. Altogether, Su embezzled and transferred over $1.8 million dollars from the California companies she was working for during the time period. Su was indicted by a federal grand jury on Dec. 13, 2017.
Su ultimately cooperated with investigators and entered into an Asset Preservation Agreement with the United States Attorney’s Office which required her to begin paying restitution to her victims by liquidating her assets and turning over those proceeds for restitution for the victims. As part of her plea agreement, Su agreed to forfeit all of her right, title and interest to real property and vehicles.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Jim Noble with the assistance of Assistant U.S. Attorney Robert Wells.
Winslow Man Sentenced over 10 Years Federal Prison for Sexual Offense Against A MinorRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Joseph Snow, age 25, of Winslow, Arkansas, was sentenced today to 124 months without the possibility of parole followed by twenty years of supervised release on one count of Transportation of a Minor with the intent to Engage in Criminal Activity. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in late January of 2018, the father of a fourteen year old female reported to the Washington County Sheriff’s Office that his daughter was missing from her home and was suspected to be with Snow. During the course of the investigation, it was determined that both the minor and Snow had been engaging in sexual activity. Law enforcement subsequently obtained location services on Snow’s cellular phone, reflecting that it was in or near the Roaring River State Park in Missouri. Consequently, Missouri law enforcement was notified. During a subsequent search of the area, law enforcement located both Snow and the minor. Snow later admitted to engaging in sexual intercourse with the minor while in the Missouri State Park.
A federal grand jury indicted Snow in March 2018, and he pleaded guilty in July of 2018.
This case was investigated by the Washington County Sheriff’s Office, the Northwest Arkansas Internet Crimes Against Children Taskforce, Homeland Security Investigations, and the Barry County Sheriff’s Office. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Wetzel County man sentenced to more than 15 years for his connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Doug William Matthews, of New Martinsville, West Virginia, was sentenced today to 188 months incarceration for his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Matthews, age 32, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location” in August 2018. Matthews admitted selling methamphetamine near Magnolia High School in March 2018 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Wells Fargo Personal Banker Indicted for Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY – November 15, 2018
SAN DIEGO – Luis Fernando Figueroa, a former Wells Fargo personal banker, was arrested yesterday by FBI agents and made his initial court appearance today on charges of participating in an international money laundering conspiracy. Figueroa’s apprehension marks the latest in a string of indictments and arrests tied to an international money laundering organization based in Tijuana, Mexico that operated primarily in San Diego, California. Between January and March of 2018, seven leaders of this organization were charged and arrested in San Diego. To date, five of the charged leaders have pleaded guilty.
According to the indictment and other public records, the international money laundering organization laundered approximately $19.6 million dollars in narcotics proceeds on behalf of Mexican-based drug trafficking organizations, including the Sinaloa Cartel, between 2014 and 2016.
The money laundering organization recruited individuals to serve as “funnel account holders” and open personal bank accounts at Wells Fargo Bank and other banking institutions. Other members of the money laundering organization, known as “couriers,” travelled to San Diego, Los Angeles, the East Coast, and other U.S. cities, where they picked up and transported amounts of bulk cash ranging from thousands to hundreds of thousands of dollars in narcotics proceeds.
Once in possession of the money, the couriers deposited the money into the funnel bank accounts controlled by the money laundering organization. These funnel bank accounts were maintained at Wells Fargo Bank, as well as other domestic financial institutions. Subsequently, the funds were transferred from these United States-based accounts via international wire transfers to a series of Mexico-based shell companies operated by the money laundering organization. Once in Mexico, the funds were transferred to representatives of the Sinaloa Cartel.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. 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.
This case is being prosecuted by Assistant U.S. Attorneys Blanca Quintero and Jose Castillo.
DEFENDANT
Name Age Hometown
Luis Fernando Figueroa 30 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments (18 U.S.C. § 1956(h)).
Conspiracy (18 U.S.C. § 371).
Operation of an Unlicensed Money Transmitting Business (18 U.S.C. § 1960(a))
Maximum Penalties: Term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 5 years of supervised release.
*The charges and allegations contained in an indictment, information, or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
INVESTIGATIVE AGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Warrensville Heights man indicted on fentanyl, cocaine, firearms and food stamp fraud chargesRead the Press Release
A Warrensville Heights man was indicted on federal drug, firearms and food stamp fraud charges.
Brandon M. Ojikutu, 26, possessed fentanyl, cocaine, a Ruger 9 mm handgun and ammunition on May 26. Ojikutu used the firearm as part of his drug trafficking but was prohibited from having a firearm and ammunition because of prior drug convictions, according to the indictment.
Ojikutu also possessed an EBT card in another person’s name, according to the indictment.
This case was investigated by the Ohio Investigative Unit and Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney James Lewis.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Vaughn woman sentenced for carjackingRead the Press Release
HELENA—A Vaughn woman who admitted to pulling a gun on a driver, who had given her a ride, and ordering the victim and two others out of the vehicle, was sentenced to 14 years prison on Tuesday in U.S. District Court, U.S. Attorney Kurt G. Alme said.
Senior U.S. District Judge Charles C. Lovell sentenced Sidney Rae Aimsback, 30, to seven years in prison for conviction on carjacking and to seven more years for brandishing a firearm in furtherance of a crime of violence.
Aimsback pleaded guilty to the two crimes in May.
The investigation determined that on Nov. 28, 2017 in Helena, Aimsback approached three people, borrowed a cell phone and asked for a ride to a restaurant near Interstate 15. The victim drove her Mitsubishi Outlander, while Aimsback sat in the front passenger seat and the victim’s two friends sat in the back seat. Aimsback persuaded the victim to drive to a nearby housing development, saying her sister lived there.
While stopped at an intersection near the housing development, Aimsback pulled out a gun from near her waistband, pointed it at the victim and told her and the two other passengers to get out of the vehicle. The victim and passengers complied. The three ran up to a carpenter at a building site.
Law enforcement officers arrested Aimsback near Three Forks. The victim consented to a search of the vehicle, and officers found a 9 mm pistol and two magazines of ammunition.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the FBI, Lewis and Clark and Gallatin County sheriff’s offices, the Helena Police Department and the Montana Highway Patrol.
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Vacaville Man Indicted for Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Matthew Michael Fraticelli, 39, of Vacaville, charging him with possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, on September 30, 2018, Vacaville police stopped Fraticelli for various traffic violations. As the officer approached Fraticelli’s car, the officer noticed what he believed to be an ammunition magazine near the driver’s side floorboard. Police searched Fraticelli’s car and located two pistols and a high-capacity drum magazine loaded with 31 rounds of ammunition. Fraticelli cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense.
This case is the product of an investigation by the Vacaville Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
If convicted, Fraticelli faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as a 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. PSN was reinvigorated in 2017 as part of the Department of Justice’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.
Vacaville Man Indicted for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Christian Henry Dorsch Jr., 49, of Vacaville, charging him with possessing methamphetamine for distribution and possession of a controlled substance, U.S. Attorney McGregor W. Scott announced.
According to court documents, on September 6, 2018, law enforcement officers stopped Dorsch while he was driving in Vacaville and had a warrant to search Dorsch, his home, and his cars for evidence of drug trafficking. When the officers searched Dorsch’s car, they found approximately one-half pound of methamphetamine in the center console, as well as a small amount of cocaine elsewhere in the vehicle. When the officers searched Dorsch’s home later that day, they found a small amount of methamphetamine in his bedroom.
This case is the product of an investigation by the Vacaville Police Department with special assistance from the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, and the Solano County District Attorney’s Office.
If convicted of the most significant charge, Dorsch faces a mandatory minimum penalty of five years in prison, and a maximum penalty of 40 years in prison and a $5 million fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney's Office hosts roundtable on sexual harassment in housingRead the Press Release
HELENA – The U.S. Attorney’s Office and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Kurt G. Alme announced.
The event, held at the U.S. Attorney’s Office, included legal aid offices, fair housing organizations, and shelters and transitional housing providers. Those organizations were invited because they often work with vulnerable populations who are most likely to become victims of sexual harassment in housing.
“Sexual harassment in housing is an egregious violation of a person’s right to fair housing,” U.S. Attorney Kurt Alme said. “Landlords using the power they have over tenants to extort sexual favors, or even commit assaults, is intolerable. Our office is dedicated to uncovering such violations where they exist and vigorously enforcing the law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment in Housing Initiative, an effort to combat sexual harassment in housing.
On April 12, 2018, then-Attorney General Jeff Sessions announced the nationwide expansion of that initiative and the formation of a joint task force with the Department of Housing and Urban Development to address this issue.
The initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the department’s enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
In the first year of the initiative’s launch, the Justice Department has opened 34 new sexual harassment matters, which is more than any previous year and nearly five times the number of matters opened in the prior year. In addition, the department has filed six lawsuits in alleged sexual harassment in housing cases, which is more than the department has filed in any previous year.
The U.S. Attorney’s Office is working closely with the Civil Rights Division to spread the word in Montana about options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past.
Roundtable discussions like the one that U.S. Attorney Alme hosted today are one way to increase awareness and build strong partnerships in the community to combat this problem together.
Community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers, can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division and the U.S. Attorney’s Office. In addition, local police departments or legal aid offices may be able to help victims, if the behavior is a crime or if there is an imminent eviction.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing, and the Fair Housing Act prohibits it. The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 1 (844) 380-6178 or emailing [email protected]. For more information, visit https://www.justice.gov/opa/pr/justice-department-reports-major-increases-victim-reporting-and-number-lawsuits-filed-one.
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at United States Attorney’s Office, 2601 Second Avenue N., Suite 3200, Billings, MT 59101 c/o AUSA Brendan McCarthy, or contact AUSA McCarthy by phone – 406-247-4656 or email – [email protected]. Individuals also my contact the FBI.
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Two Spartanburg Brothers Among Five Men Sentenced in Federal Court for Roles in Methamphetamine, Marijuana, and Money Laundering ConspiraciesRead the Press Release
Anderson, South Carolina – United States Attorney Sherri A. Lydon announced today that brothers Soeuth Ath, 46, and Sean Ath, 54, both of Spartanburg, South Carolina, were among five men sentenced to federal prison for their roles in bi-coastal methamphetamine, marijuana, and money laundering conspiracies.
United States District Judge Timothy M. Cain sentenced Soeuth Ath to life in federal prison and Sean Ath to 151 months in federal prison, followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The Ath brothers were convicted by a federal jury after a week-long trial in January. Evidence showed that in 2016, a number of mail packages containing methamphetamine shipped from California to Spartanburg were intercepted by the United States Postal Inspector. A law enforcement investigation revealed that a group of individuals in the Spartanburg area with ties to Fresno and Bakersfield, California, were obtaining large amounts of methamphetamine and marijuana from sources in California via the U.S. Mail. During the course of the conspiracy, the defendants received over 22 kilograms of high purity methamphetamine and at least 15 kilograms of marijuana for distribution in the Upstate of South Carolina. From April 2016 through January 2017, the defendants laundered at least $196,500 in drug trafficking proceeds from South Carolina to California.
Five additional co-conspirators pled guilty to federal drug and money laundering charges. Virig Chheng, 30, of Spartanburg, was sentenced to 328 months in federal prison, followed by five years of court-ordered supervision. Raymond Soeng, 33, of Boiling Springs, was sentenced to 46 months in federal prison, followed by three years of court-ordered supervision. Vilay Phabmisay, 25, of Bakersfield, California, was sentenced to 84 months in federal prison, followed by five years of court-ordered supervision. Two defendants, Anthony Pan, 23, of Bakersfield, and Junior Choeun, 24, of Spartanburg, await sentencing.
The convictions are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) Program. The OCDETF Program is a partnership between federal, state, and local law enforcement agencies. Its principal mission is to identify, disrupt, and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Federal Bureau of Investigation with the assistance and cooperation of the United States Postal Inspection Service, the Spartanburg City Police Department, and the Spartanburg County Sheriff’s Office. Assistant United States Attorneys Leesa Washington and Jeanne Howard of the Greenville office are prosecuting the case.
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Two Indicted for Arranging the Shipment of over 400 Pounds of Marijuana to Kansas City, MissouriRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Patrick Maldonado, 42, of Madera, and Elias Zambrano Jr., 43, of Fresno, charging them with conspiring to distribute and possess with intent to distribute cocaine and marijuana and being felons in possession of firearms, U.S. Attorney McGregor W. Scott announced. Maldonado is also charged with possessing cocaine with the intent to distribute.
According to court documents, Maldonado and Zambrano coordinated the shipment of over 400 pounds of marijuana to Kansas City, Missouri. Following the seizure of one load in Kansas City and a second in Arizona, agents executed search warrants at Maldonado’s residence in Madera and Zambrano’s residence in Fresno. At Maldonado’s residence, agents found four kilograms of cocaine, a firearm, and $45,281 in cash. Processed marijuana was located throughout Maldonado’s residence. At Zambrano’s residence, agents found two loaded firearms and packaged bags of processed marijuana. Because Maldonado and Zambrano were previously convicted of felony offenses, they are prohibited from possessing firearms.
This case was the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force consisting of agents from the Drug Enforcement Administration, Homeland Security Investigations, Federal Bureau of Investigation, the Sheriff’s Offices of Tulare, Kings, and Fresno Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted of the drug conspiracy, Maldonado and Zambrano face a maximum statutory penalty of 40 years in prison, a minimum statutory penalty of five years in prison, and up to a $5 million fine. Maldonado faces the same penalty if convicted of possessing cocaine with the intent to distribute. If convicted of being a felon in possession of firearms, both defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Cuban nationals indicted for using skimmers to steal identities and make fake credit cards, which they used to make purchases at stores in Mentor, Canton, Cleveland, Cuyahoga Falls and Oakwood VillageRead the Press Release
Two Cuban nationals from Miami were indicted for using credit card skimmers to steal identities and make fake credit cards, which they used to make purchases at Sam’s Club stores in Mentor, Canton, Cleveland, Cuyahoga Falls, Oakwood Village and elsewhere.
Silvio Leon, 45, and Pablo Arrechavaleta, 41, were indicted for conspiracy to commit access device (credit card) fraud, access device fraud and aggravated identity theft.
Leon, Arrechavaleta and others covertly installed credit card skimmers on gas station pumps in Ohio, Pennsylvania, West Virginia, Colorado, Iowa and elsewhere between May 2016 and June 2018. They then downloaded the stolen credit card information and stored it on flash drives, according to the indictment.
Leon, Arrechavaleta and others then re-encoded the stolen account information and other data onto counterfeit credit cards, which they used to make purchases at Sam’s Club stores in Mentor, Canton, Cuyahoga Falls, Cleveland, Oakwood Village and elsewhere, according to the indictment.
They had information for nearly 5,000 credit card accounts when they were arrested, according to court documents.
This case was investigated by the FBI and Mentor Police Department. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tucson Resident Sentenced to Prison for Tax FraudRead the Press Release
TUCSON, Ariz. – Today, Clariece Burden-Stelly, 33, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to a term of 21 months’ imprisonment and a 36-month term of supervised release following her incarceration, for her role in a tax fraud scheme. As part of her sentence, she was also ordered to pay over $19,000 in restitution to the U.S. Treasury. Burden-Stelly had previously pleaded guilty to false claims and wire fraud.
Under the scheme, Burden-Stelly filed false federal income tax returns for tax years 2012 through 2014. Burden-Stelly caused the filing of false federal tax returns under her name and the names and social security numbers of others to obtain fraudulent federal income tax refunds. Burden-Stelly fraudulently used the IRS Employer Identification Numbers (EIN’s) of her former employers to report false wage and withholding information. The fraudulent tax refunds were disbursed on pre-paid cards or by check.
The investigation in this case was conducted by IRS-Criminal Investigation. The prosecution was handled by Jane L. Westby, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-18-00129
RELEASE NUMBER: 2018-153_Burden-Stelly
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Virginia Drug Traffickers Sentenced for ConspiracyRead the Press Release
RICHMOND, Va. – Three drug traffickers have been sentenced to a combined 17 years in prison for participating in a lengthy and extensive drug trafficking conspiracy.
According to court documents, Devin McCoy Rawls, 28, of Portsmouth, along with Robert William Little III, 70, and Cynthia Mosley Fox, 51, both of Emporia, were members of a drug trafficking organization which operated in Emporia and the surrounding area dating back to 2013. During the conspiracy, these defendants along with several other co-conspirators, distributed large amounts of crack cocaine, powder cocaine, heroin and marijuana to hundreds of customers in Southeast Virginia.
Rawls and Little were sentenced on Tuesday to over seven years, and five years, respectively, and Fox was sentenced today to over four years in prison.
The case was investigated by the FBI as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Bulls Eye. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-22.
Three Aliens Indicted on Illegal Reentry ChargesRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Greenville has returned indictments charging RAMIRO CORTEZ-RODRIGUEZ, age 39, of Mexico, JOSE PEREZ-GOMEZ, age 45, of Mexico, and ALAN VILLA-MARTINEZ, age 24 of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, CORTEZ-RODRIGUEZ, previously deported five times and found in Johnston County, PEREZ-GOMEZ, found in Wayne County, and VILLA-MARTINEZ, found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Thirty-Nine “Unforgiven” and “United Aryan Brotherhood” Gang Members and Associates Indicted for Arms and Drug Trafficking in Pasco CountyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the culmination of a long-term investigation, dubbed “Operation Blackjack,” into arms and narcotics trafficking activities, centered in Pasco County, Florida. As a result, 39 individuals have been charged with various federal firearms and drug violations. (Please see chart for details). The indictments also notify the defendants that the United States intends to forfeit the firearms used in these offenses and any proceeds traceable to the offenses.
“We will continue to use every tool at our disposal to prosecute those who persist in purveying violent crime and drug trafficking on our streets,” said U.S. Attorney Chapa Lopez. “We are committed to working with our partners to render our communities safe for our citizens in the Middle District of Florida.”
“ATF’s primary focus is protecting the public by reducing violent crime,” said Special Agent in Charge Daryl McCrary. “ATF continues to aggressively pursue violent offenders and will work with our law enforcement partners to protect and serve our communities.”
"The Pasco Sheriff's Office is proud of the partnership it has with the Department of Justice,” said Sheriff Chris Nocco. “Taking illegally possessed guns and criminals off the street will have a positive impact on the safety of our community."
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Operation Blackjack arose out of a partnership between the United States Attorney’s Office, the State Attorney’s Office for the Sixth Judicial Circuit, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pasco Sheriff’s Office. The cases will be prosecuted by the United States Attorney’s Office’s Violent Crimes and Narcotics Section.
These cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This investigation is also the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. 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 drug supply.
Defendant (Age)
Charges Maximum PenaltiesMichael Baun (29)
Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Jade Blair (25)
Spring Hill, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Nicholas Bollman (24)
Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Jonathan Budowski* (47)
Bushnell, FL
- Possessing with intent to distribute methamphetamine;
- Possessing a firearm as a convicted felon;
- Possessing a firearm in furtherance of a drug-trafficking crime.
- Maximum term of 20 years' imprisonment;
- Maximum term of 10 years' imprisonment;
- Minimum mandatory term of imprisonment of 5 years, and up to life imprisonment, to run consecutively to any other sentence of imprisonment.
Bradley Cox (31)
Palmetto, FL
- Conspiring to possess with intent to distribute heroin;
- Possessing with the intent to distribute fentanyl;
- Possessing with the intent to distribute fentanyl.
Maximum term of 20 years' imprisonment, per count.
Crystal Davis (26)
Tampa, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Donald Dussell, a/k/a “Dino” (41)
Hudson, FL
- Possessing a firearm as a convicted felon (8 counts);
- Distributing heroin;
- Distributing 5 grams or more of methamphetamine.
- Maximum term of 10 years' imprisonment, per count;
- Maximum term of 20 years' imprisonment;
- Minimum mandatory term of 5 years’ imprisonment, and up to life imprisonment.
Kurt Gell* (39)
Bartow, FL
Pleaded guilty to possessing with the intent to distribute 5 grams or more of methamphetamine.
Sentenced to 5 years’ imprisonment.
Melissa James (33)
New Port Richey, FL
Possessing with the intent to distribute 5 grams or more of methamphetamine.
Minimum mandatory term of 5 years’ imprisonment, and up to 40 years’ imprisonment.
Breanna Knights (21)
New Port Richey, FL
- Distributing heroin;
- Distributing crack cocaine.
Maximum term of 20 years' imprisonment, per count.
Jerry Koezeno* (30)
New Port Richey, FL
- Possessing a firearm as a convicted felon;
- Distributing 5 grams or more of methamphetamine (2 counts).
Pleaded guilty on October 3, 2018.
Sentencing set for January 3, 2019.
- Maximum term of 10 years' imprisonment.
- Minimum mandatory of 5 years’ imprisonment, and up to 40 years’ imprisonment, per count.
Joshua Koezeno (25)
New Port Richey, FL
Possessing with the intent to distribute 50 grams or more of methamphetamine.
Minimum mandatory term of 20 years’ imprisonment, and up to life imprisonment.
James Thomas Lang, III (32)
Tampa, FL
- Conspiring to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin and 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine;
- Distributing heroin and fentanyl (two counts);
- Distributing methamphetamine;
- Distributing heroin (two counts)
- Minimum Mandatory of 10 years’ imprisonment, and up to life imprisonment.
As to remaining counts, maximum term of 30 years' imprisonment, per count.
James Laughery (44)
New Port Richey, FLPossessing a firearm as a convicted felon (4 counts).
Maximum term of 10 years' imprisonment, per count.
Stephen Kenneth Lore* (48)
Hudson, FL
Pleaded guilty to possessing with intent to distribute 50 grams or more of methamphetamine.
Sentenced to 15 years and 8 months’ imprisonment.
Jamie Manz (40)
Port Richey, FL
Possessing a firearm as a convicted felon (2 counts).
Maximum term of 10 years' imprisonment, per count.
Andre Maytum (34)
Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Chastity McBride (35)
New Port Richey, FL
- Conspiring to distribute 50 grams or more of methamphetamine;
- Distributing 50 grams or more of methamphetamine;
- Distributing 50 grams or more of methamphetamine.
Mandatory minimum term of 20 years’ imprisonment, and up to life imprisonment, per count.
Stephanie McDonald* (35)
New Port Richey, FL
Pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime.
Sentencing scheduled for 12/18/2018.
Minimum mandatory term of imprisonment of 5 years, and up to life imprisonment.
Skyler McMillion (33)
Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Jacob Montgomery (25)
New Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Richard Morman (31)
New Port Richey, FL
- Possessing a firearm as a convicted felon;
- Possessing a pipe bomb;
- Possessing pipe bombs.
Maximum term of 10 years' imprisonment, per count.
Arnold Gerard Nelson, Jr. (32)
Tampa, FL
- Conspiring to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, and 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine;
- Distributing heroin and fentanyl (three counts);
- Distributing methamphetamine;
- Distributing heroin (2 counts).
- Minimum mandatory term of 5 years’ imprisonment, and up to 40 years’ imprisonment;
All other counts:
Maximum term of 20 years' imprisonment, per count.
William Ohrmund (43), a/k/a “Billy the Kid”*
Port Richey, FL
Pleaded guilty to possessing with intent to distribute methamphetamine.
Sentenced to 10 years’ imprisonment.
Bobby Osborne (33)
Hudson, FL
- Conspiring to distribute 100 grams or more of heroin and 50 grams or more of methamphetamine;
- Distributing 50 grams or more of methamphetamine;
- Distributing 50 grams or more of methamphetamine.
Minimum mandatory term of 20 years’ imprisonment, and up to life imprisonment, per count.
Chad Michael Overend (37)
Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Ryan Perrin (32)
Palm Harbor, FL
Possessing a firearm as a convicted felon (2 counts).
Maximum term of 10 years' imprisonment, per count.
Randi Potter (44)
New Port Richey, FL
1. Possessing with intent to distribute 5 grams or more of methamphetamine;
2. Possessing with intent to distribute 5 grams or more of methamphetamine;
3. Possessing with intent to distribute 50 grams or more of methamphetamine;
4. Possessing with intent to distribute cocaine base (“crack cocaine”).
As to counts 1 and 2 : Minimum Mandatory term of 10 years’ imprisonment, and up to life imprisonment;
- Minimum mandatory term of 20 years’ imprisonment, and up to life imprisonment;
4. Maximum term of 30 years’ imprisonment.
John Christopher Roberts* (35)
Orlando, FL
Pleaded guilty to:
- Conspiring to possess with intent to distribute 50 grams or more of methamphetamine;
- Possessing a firearm in furtherance of a drug trafficking crime
Sentencing set for 1/6/2019.
- Maximum term of 20 years' imprisonment;
- Minimum mandatory term of 5 years’ imprisonment, and up to life imprisonment.
Justin Ruth (28)
New Port Richey, FL
Possessing a firearm as a convicted felon (2 counts).
Maximum term of 10 years' imprisonment, per count.
Anthony Steve* (37)
Port Richey, FL
Pleaded guilty to possessing a firearm as a convicted felon.
Sentenced to 27 months’ imprisonment.
Keith Jason Stewart (29)
Hudson, FL
- Distributing 50 grams or more of methamphetamine (2 counts);
- Possessing firearms and ammunition as a convicted felon.
- Minimum mandatory term of 20 years’ imprisonment, and up to life imprisonment, per count;
- Maximum term of 10 years' imprisonment.
George Susick* (29)
Spring Hill, FL
Pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime.
Sentenced to 5 years’ imprisonment.
Joseph Ward* (46)
New Port Richey, FL
Found guilty of possessing a firearm and ammunition as a convicted felon.
Sentenced to 4 years and 3 months’ imprisonment.
David Weyde* (30)
Port Richey, FL
Pleaded guilty to possessing a firearm as a convicted felon and to possessing an unregistered sawed-off shotgun.
Sentenced to 4 years and 3 months’ imprisonment.
Gary Webb, a/k/a “Superman” (40)
Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
Larry Dean Wilson, Jr. (41)
Land O’Lakes, FL
- Distributing 50 grams or more of methamphetamine (2 counts);
- Distributing marijuana;
- Mandatory minimum term of 20 years’ imprisonment, and up to life imprisonment, per count;
- Maximum term of imprisonment of 5 years;
Michael Wilson* (45)
Spring Hill, FL
Convicted at trial of possessing a firearm and ammunition as a convicted felon.
Sentenced to 10 years’ imprisonment.
Andrew Windsor (34)
Port Richey, FL
Possessing a firearm as a convicted felon.
Maximum term of 10 years' imprisonment.
* Charged prior to takedown operation.Texas Man Convicted of Money Laundering Conspiracy and Tax CrimesRead the Press Release
A Houston, Texas man was convicted by a federal jury yesterday in the U.S. District Court for the Southern District of Texas of two conspiracies and tax crimes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
In total, Kenneth J. Coleman, 51, was convicted of nine counts, including conspiracy to commit money laundering, conspiracy to structure currency transactions, corporate tax evasion, filing false tax returns with the IRS and failing to file a tax return with the Internal Revenue Service (IRS). U.S. District Court Senior Judge David Hittner set Coleman’s sentencing for February 2, 2019. Coleman’s co-conspirator, Marcus Weathersby, formerly of Houston, Texas, pleaded guilty to conspiracy to commit money laundering and was sentenced in June 2018 to 58 months in prison. He testified at trial.
The evidence at trial established that Coleman participated in a scheme to facilitate the fraudulent sale of second-hand prescription medications to Utah-based Green Valley Medical Distributors, LLC (Green Valley). Coleman, owned Acacia Pharma Distributors, Inc. (Acacia) and Four Corner Suppliers, Inc. (Four Corner), which purchased bottles of prescription medications from illegitimate sources and then sold the medications to Green Valley, which then sold the medications to pharmacies as new.
Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and others acting at his direction created false pedigrees and provided the false documents to Green Valley. Evidence at trial showed that Green Valley would withhold payment to Coleman until it received these false pedigrees.
Coleman and Weathersby deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. At trial, the government proved that Weathersby and others acting at Coleman’s direction laundered more than $36 million of illicit funds, including over $2 million in more than 230 cash withdrawals made in amounts less than $10,000 in order to evade bank-reporting requirements.
The evidence at trial also established that Coleman evaded assessment and payment of Acacia’s and Four Corner’s income tax liabilities, and that he failed to file an individual tax return for tax year 2011, and filed false individual income tax returns for tax years 2012 and 2013 with the IRS.
Coleman now faces a maximum sentence of 20 years in prison for the money laundering conspiracy and a maximum sentence of five years for the conspiracy to structure currency transactions. Coleman also faces a five-year maximum sentence for each count of tax evasion and a maximum sentence of three years in prison for each count of filing a false tax return. Coleman also faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Federal Department of Agriculture, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Statement from United States Attorney Jay E. Town on the Shooting of Marengo County District Attorney Greg GriggersRead the Press Release
“Our thoughts and prayers are with Greg and his family. District Attorney Griggers is a dedicated public servant and an honorable man. This serves as yet another reminder of the perils and dangers that law enforcement at every level face daily.”
St. Louis Man Sentnced While on Parole for Two Bank RobberiesRead the Press Release
St. Louis, MO – David Thelix McGee was sentenced to 115 months in prison for committing bank robberies.
According to court documents, on April 17, 2017, McGee entered the Great Southern Bank in Ferguson and slid a piece of paper to the teller stating that she should give him some money. McGee wanted large bills and provided a plastic bag for the teller to put the money in. The teller grabbed a large stack of U.S. Currency and asked if that was enough to which McGee responded yes and left the bank.
On May 8, 2017, McGee entered the Bank of America in St. Charles and handed a teller a plastic bag and a note, which read that he needed straps of $100s, $50s and $20s. The teller gave him the U.S. Currency and McGee left the bank. McGee was on supervised release for a bank robbery in Illinois.
McGee, 48, of St. Louis, pleaded guilty on July 27, 2018, to two counts of committing bank robberies. He appeared in federal court this morning before U.S. District Judge Audrey G. Fleissig.
This case was investigated by the Federal Bureau of Investigation and Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Smith County Man Guilty of Multiple Firearms ViolationsRead the Press Release
TYLER, Texas – A 25-year-old Tyler, Texas man has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Heon Jong Yoo, a/k/a “Hank Yoo,” was found guilty today of seven counts of false statements made in connection with firearms transactions and one count of unlawful possession by a prohibited person. The three-day jury trial occurred before U.S. District Judge Robert W. Schroeder, III.
According to information presented in court, Yoo was an undergraduate student at the University of Texas-Tyler. A lawful permanent resident from South Korea, Yoo falsely represented that he was a United States citizen with respect to seven different firearms transactions, some of which involved semiautomatic weapons. He did so after having been involuntarily committed to a mental institution in the state of New Jersey in 2013 and again in 2015. At the time of his arrest, Yoo was in possession of multiple firearms, ammunition, and firearms accessories. Yoo was indicted by a federal grand jury on Apr. 18, 2018.
“This case was a great example of federal, state, and local law enforcement working together to stop a threat that really could have had tragic results,” said U.S. Attorney Joseph D. Brown. “Yoo was becoming increasingly aggressive in his behavior, and there were multiple schools where people were extremely concerned about what he was going to do. In addition, he had weapons and a history of mental health problems. These situations often end badly, and it was good that law enforcement worked together to get him off the streets as soon as they did.”
Under federal statutes, Yoo faces a maximum of 5 years in federal prison for each false statement charge and up to 10 years on the unlawful possession count at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; the Texas Department of Public Safety-Texas Rangers Division; the Smith County Sheriff’s Office; the Tyler Police Department; and the University of Texas-Tyler Police Department. Assistance was also provided by the Department of Homeland Security, the Dallas Police Department, the Plano Police Department, the Prosper Police Department, the Collin College Police Department, the Dallas County Community College District Police Department, the Rutgers University Police Department, and the University of Connecticut Police Department. The case was prosecuted by Assistant U.S. Attorneys Frank Coan, Lucas Machicek, and Ryan Locker.
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Six people from Northeast Ohio indicted on federal firearms chargesRead the Press Release
Six people were indicted on federal firearms charges.
Indicted are: Eric J. Allen, 31, of Akron; Lyjesta Jerry Agee, 31, of Cleveland; Howard T. Duncan, 26, of Cleveland; Dwaine Rucker, Jr., 25, Cleveland; Christopher Brenick, 23, of Valley View, and Eric Reynolds, 20, of Valley View.
All are charged with being felons in possession of firearms, except Brenick and Reynolds, who are charged with making false statements in the acquisition of a firearm.
Allen was found to have a Hi-Point 9mm rifle and 20 rounds of 9mm caliber ammunition on Aug. 6. Allen was previously convicted of sexual battery.
Agee was found to have a Springfield .45-caliber pistol and ammunition on Oct. 26, despite previous convictions for drug trafficking.
Duncan was found to be in possession of a Springfield .45-caliber pistol and ammunition on Oct. 4 despite previous convictions for child endangering, drug trafficking and carrying a concealed weapons.
Rucker was found to be in possession of a Smith & Wesson 9 mm pistol and ammunition on Sept. 26 despite a previous conviction for abduction.
Brenick falsely stated on April 19 that he was the true purchaser of a Sig Sauer .45-caliber pistol from Stonewall Gun Shop in Brecksville, when Reynolds was the actual buyer of the firearm, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The Allen case is being prosecuted by Assistant U.S. Attorney Christopher J. Joyce following an investigation by the Ohio Adult Parole Authority and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Agee case is being prosecuted by Assistant U.S. Attorney Danielle Angeli following an investigation by the Cleveland Division of Police and ATF. The Duncan case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the Cleveland Division of Police and ATF. The Rucker case is being prosecuted by Assistant U.S. Attorney Brian Deckert following an investigation by the Cleveland Division of Police and ATF. The Brenick and Reynolds case is being prosecuted by Assistant U.S Attorney Brian Deckert following an investigation by the ATF.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Seven Previously Deported Aliens Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that seven previously deported aliens were indicted separately on November 14, 2018, by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the District including Cumberland, Dauphin, Lackawanna, and York.
According to United States Attorney David J. Freed, Esterlindo Torres-Varela, age 34, of Honduras, was previously deported from the United States to Honduras in January 2016. He is alleged to have illegally reentered the United States sometime after January 2016, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Torres-Varela faces a maximum penalty of twenty years of imprisonment, a term of supervised release following imprisonment, and a fine.
Manuel Rodriguez-Martinez, age 30, of Honduras, was previously deported from the United States to Honduras in August 2011. He is alleged to have illegally reentered the United States sometime after August 2011, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Miguel Morales-Ayala, age 28, of Mexico, was previously deported from the United States to Mexico in June 2016. He is alleged to have illegally reentered the United States sometime after June 2016, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Rigoberto Balbuena-Guzman, age 46, of Mexico, was previously deported from the United States to Mexico in April 2012. He is alleged to have illegally reentered the United States sometime after April 2012, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Maximiliano Santiz-Jimenez, age 32, of Mexico, was previously deported from the United States to Mexico in March 2010. He is alleged to have illegally reentered the United States sometime after March 2010, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Constantino Pascual-Velasco, age 37, of Mexico, was previously deported from the United States to Mexico in November 2014. He is alleged to have illegally reentered the United States sometime after November 2014, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Victor Vazquez-Beristain, age 46, of Mexico, was previously deported from the United States to Mexico in June 2011. He is alleged to have illegally reentered the United States sometime after June 2011, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Rodriguez-Martinez, Morales-Ayala, Balbuena-Guzman, Santiz-Jimenez, Pascual-Velasco, and Vazquez-Beristain face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney James T. Clancy is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Seven Owners and Employees of Import-Export Companies Arrested for Conspiracy to Launder Drug Trafficking Proceeds and Related CrimesRead the Press Release
A six-count indictment was unsealed today in federal court in Central Islip charging Enayatullah Khwaja, Abdulrahman Khwaja, Rani Rahimi, Shikeba Rhamatzada, Roberto Saenz, Maynor Melendez-Mendoza and Naseem Bokhari with conspiracy to commit money laundering, operation of an unlicensed money transmitting business, failure to file currency transaction reports and IRS forms 8300, structuring monetary deposits, and interstate and foreign travel and transportation in aid of a racketeering enterprise. The defendants, all owners and employees of import-export businesses located on Long Island and in Miami, were arrested this morning.
Enayatullah Khwaja, Abdulrahman Khwaja, Rahimi and Rhamatzada will be arraigned this afternoon in Central Islip before United States District Judge Joseph F. Bianco. Saenz, Melendez-Mendoza and Bokhari, who were arrested in Florida, will be arraigned at the federal courthouse in Miami, and the government will seek their removal to the Eastern District of New York.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“Money laundering is the lifeblood of international narcotics trafficking organizations and with today’s arrests the defendants’ ability to profit from illicit proceeds has been crippled,” stated United States Attorney Donoghue. “I commend our prosecutors and the Special Agents in this case for their relentless work following the money trail here and abroad in order to disrupt this criminal scheme.”
“Those arrested today allegedly employed an international money laundering scheme relying on the complexities of global trade, and the use of their businesses here in New York and in Florida, to launder millions of dollars for transnational drug traffickers and other bad actors,” stated HSI Special Agent-in-Charge Melendez. “This investigation exemplifies HSI’s efforts in securing the integrity of our country’s trade and financial systems, and the importance of law enforcement partnerships here and abroad.”
“Special Agents of IRS-CI are experts in identifying and uncovering criminal violations with a financial aspect whether committed at home or abroad as alleged in the indictment,” stated IRS-CI Special Agent-in-Charge Robnett.
As alleged in the indictment and other court documents, family-owned businesses operated by the defendants on Long Island and in Miami were used to launder millions of dollars in illegal drug proceeds between the United States and South America. Enayatullah Khwaja was the owner and manager of Tronix Telecom Corp., an electronics and mobile phone import-export company with an office in Miami. Enayatullah Khwaja managed the company from his home in Farmingdale. The defendants took in bulk cash deliveries from drug dealers and disguised the transfer of money through the actual and purported purchase and export of mobile phones. The government’s investigation included extensive court-ordered wiretaps of the defendants, as well as undercover federal agents posing as drug dealers.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Divisions. Assistant U.S. Attorneys Charles P. Kelly, Burton T. Ryan, Jr. and Madeline O’Connor are in charge of the prosecution.
The Defendants:
ENAYATULLAH KHWAJA (also known as “Nat”)
Age: 45
Farmingdale, N.Y.ABDULRAHMAN KHWAJA
Age: 62
Syosset, N.Y.RANA RAHIMI
Age: 48
Farmingdale, N.Y.SHIKEBA RHAMATZADA
Age: 45
Farmingdale, N.Y.ROBERTO SAENZ
Age: 36
Miami, FloridaMAYNOR MELENDEZ-MENDOZA
Age: 33
Miami, FloridaNASEEM BOKHARI (also known as “Sammy”)
Age: 59
Miami, FloridaE.D.N.Y. Docket No. 18-CR-607(JFB)
Sentencings for November 14, 2018Read the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced SEVERIANO DIAZ-CAZARES, 42, of Las Vegas, Nevada on November 14, 2018 for illegal re-entry of a previously deported alien into the United States and illegal alien in possession of a firearm. Diaz-Cazares was arrested in Riverton, Wyoming. He received twenty-four months of imprisonment, to be followed by twelve months of supervised release, and ordered to pay a $200.00 special assessment. The Fremont County Sheriff’s Office, Wyoming Division of Criminal Investigation, and the US. Department of Homeland Security Investigations investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced JEREMY OBERMUELLER, 35, of Craig, Colorado on November 14, 2018 for being a felon and unlawful user of a controlled substance in possession of a firearm. Obermueller was arrested in Lander, Wyoming. He received fifty-eight months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $1,900.00 fine, and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Sentencings for November 14, 2018Read the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced SEVERIANO DIAZ-CAZARES, 42, of Las Vegas, Nevada on November 14, 2018 for illegal re-entry of a previously deported alien into the United States and illegal alien in possession of a firearm. Diaz-Cazares was arrested in Riverton, Wyoming. He received twenty-four months of imprisonment, to be followed by twelve months of supervised release, and ordered to pay a $200.00 special assessment. The Fremont County Sheriff’s Office, Wyoming Division of Criminal Investigation, and the US. Department of Homeland Security Investigations investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced JEREMY OBERMUELLER, 35, of Craig, Colorado on November 14, 2018 for being a felon and unlawful user of a controlled substance in possession of a firearm. Obermueller was arrested in Lander, Wyoming. He received fifty-eight months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $1,900.00 fine, and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Salvadoran National Charged with Distribution of FentanylRead the Press Release
BOSTON – A Salvadoran national was charged in federal court in Boston in connection with a law enforcement seizure of 15 kilos of fentanyl discarded on the side of a road in Sturbridge.
Nelson Garcia Martinez, 37, a Salvadoran national residing in Stockton, Calif., was charged with one count of distribution of 400 grams or more of fentanyl. Garcia Martinez is in custody pending a detention and probable cause hearing.
According to the charging document, Garcia Martinez was arrested on Nov. 13, 2018, after federal agents conducting surveillance at a rest stop in Sturbridge allegedly observed Garcia Martinez meet with two unidentified individuals outside of Garcia Martinez’s tractor trailer. When the two unidentified individuals left the area, law enforcement attempted to stop their vehicle, but they fled. When they did finally pull to the side of the road, the passenger exited the car and discarded a vacuum sealed garment bag and then fled into the surrounding woods, while the driver of the car left the scene at high speed. The garment bag burst open on the ground, and agents recovered 15 kilograms of a substance that tested positive for fentanyl. Garcia Martinez consented to a search of his tractor trailer, where vacuum sealed bags matching the one discarded on the side of the road were recovered.
Law enforcement were led to Garcia Martinez after discovering a phone number, allegedly later determined to be associated with Garcia Martinez, that was believed to be used by a drug transporter related to an October 2018 seizure of 32 kilos of fentanyl in Methuen.
Garcia Martinez faces a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $10 million. He will also be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Somerville, Medford, Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Salem Woman Sentenced to Five Months in Prison for Illegally Purchasing Firearms for Massachusetts ResidentRead the Press Release
CONCORD - Angelina Keenan, 24, formerly of Salem, New Hampshire, was sentenced to five months in federal prison for illegally purchasing firearms for a Massachusetts resident, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on two occasions in December 2016, Keenan purchased guns from federally licensed firearms dealers in Hooksett and Pelham. During each purchase, Keenan filled out an ATF Form 4473, a form that all federally licensed firearms dealers are legally required to complete for over-the-counter firearms sales. In filling out the form, Keenan falsely stated that she was purchasing the firearms for herself, when in fact, she was purchasing the guns for a Massachusetts man who could not legally purchase them for himself in New Hampshire. In addition, Keenan represented on the purchase forms that she was not an unlawful drug user, when in fact she was addicted to heroin.
Keenan previously pleaded guilty on August 1, 2018 to two counts of making a material false statement in connection with the acquisition of a firearm.
“In order to safeguard the public, it is imperative to ensure that guns do not fall into the wrong hands,” said U.S. Attorney Murray. “Straw purchasing of firearms is a serious crime that often makes guns available to drug dealers or violent criminals. We will continue to aggressively enforce federal gun laws in order to prevent drug traffickers from arming themselves and reduce the occurrence of violent crime.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Shane B. Kelbley and Anna Z. Krasinski.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Pensacola Registered Sex Offender Guilty of New Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA – Christopher M. Arguelles, 34, of Pensacola, pleaded guilty today in the U.S. District Court in Pensacola to possession and access with intent to view child pornography. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2018, while a telecommunications provider was assisting Arguelles with his slow running cellular telephone, they observed a large amount of pornography on the phone, including a folder titled “underage.” Several days later, Arguelles, a sex offender, was arrested for failure to register a change in his residence, and his cellular telephone was seized. A forensic review of the device revealed images and videos of child pornography both on the phone and on the memory card. Examples of subfolder titles were “Sammy 14 yo,” “15yo Jen,” and “14 year old Erin.” Some of the child pornography involved females under age 12. Arguelles also maintained a cloud storage account with similar illicit materials.
For possession and access with intent to view child pornography, Arguelles faces a mandatory minimum of 10 years and a maximum of 20 years in prison. The sentencing hearing is scheduled for January 25, 2019, at 9:00 a.m. at the U.S. Courthouse in Pensacola.
The case is being investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, the State Attorney’s Office – First Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Oxford Man Indicted for Trafficking in Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Jose Carrillo, 27, of Oxford, PA was indicted by a federal grand jury and charged with two counts of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography.
The federal indictment charges him with trafficking in and possessing more than 37,000 images and videos of pornographic images of children, toddlers, and infants on the Internet. The indictment charges the defendant with committing these crimes as recently as October 18, 2018.
If convicted, Carrillo faces a statutory maximum sentence of 80 years’ incarceration, a 5-year mandatory minimum sentence of imprisonment, 5 years up to a lifetime of supervised release, a $1,000,000 fine, a $400 special assessment, and, if found not to be indigent, an additional $20,000 special assessment.
The case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Online Distributor of Child Pornography Is Sentenced to 16.5 YearsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Jose Antonio Hendricks, 60, of Charlotte, to 198 months in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Conrad ordered Hendricks to serve 20 years under court supervision, and to register as sex offender upon his release from custody. A federal jury convicted Hendricks on February 21, 2018, of possession, receipt and transportation of child pornography. He has been in custody since February 2018.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
According filed court documents, trial evidence and witness testimony, on October 14, 2014, law enforcement determined that Hendricks was using a peer-to-peer network to distribute and to view child pornography online. Trial evidence established that between October 2014 and February 2015, law enforcement connected to Hendricks’ IP address approximately 70 times. During a vast majority of these sessions, law enforcement were able to confirm that Hendricks was sharing either child pornography or child erotica. According to evidence presented at trial, on March 12, 2015, a search of Hendricks’ home resulted in the seizure of a tablet and the tablet’s SD card. A forensic examination of the items revealed that they contained numerous images of child pornography. There was also evidence that Hendricks was accessing numerous child pornography websites that include sadistic or masochistic images of children being sexually abused.
In making today’s announcement, U.S. Attorney Murray commended the work of the FBI’s Crimes Against Children Squad, which investigated the case. Assistant U.S. Attorneys Cortney Randall and William Stetzer, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ohio Man Sentenced for Conspiring to Pass Counterfeit $100 Bills at Western PA StoresRead the Press Release
PITTSBURGH, PA – An Ohio resident has been sentenced in federal court to time served plus one day, approximately two months incarceration, and three years supervised release with the immediate condition of residency in an inpatient drug treatment up to twelve months, on his conviction of conspiracy to utter and pass counterfeit Federal Reserve notes, United States Attorney Scott W. Brady announced today.
Chief United States District Court Judge Joy Flowers Conti imposed sentence on Joshua Kinney, 29, of Columbus, Ohio.
In connection with the sentencing, the court was advised that it was a part of the conspiracy that Kinney and his co-conspirators obtained counterfeit Federal Reserve notes in the denomination of $100 dollars in Ohio and transported the counterfeit Federal Reserve notes into the Western District of Pennsylvania. It was further a part of the conspiracy that on numerous occasions Kinney and his co-conspirators passed, and attempted to pass, counterfeit $100 bills at various retail store locations in the Western District of Pennsylvania and received legitimate currency as change.
Assistant United States Attorney Mary McKeen Houghton prosecuted the case on behalf of the government.
The United States Secret Service, the Scott Township Police Department, the North Fayette Police Department, and the Bethel Park Police Department conducted the investigation leading to the conviction in this case.
Ohio County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Quavonte Pugh, of Wheeling, West Virginia, was sentenced today to 18 months incarceration for a drug charge, United States Attorney Bill Powell announced.
Pugh, also known as “Q,” age 22, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location” in August 2018. Pugh admitted to selling cocaine base near Jenson Playground in January 2018 in Ohio County
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.North Haven Man Sentenced to 54 Months in Prison for Role in Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PAUL WILLIAM MUZYKA, 49, of North Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by two years of supervised release, for his role in a large-scale fencing operation.
According to court documents and statements made in court, Muzyka and George J. Connelly, Jr., operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. At Ace Amusements, Muzyka and Connelly knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Home Depot, Target, CVS, and Lowe’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices. Muzyka and Connelly then resold the stolen goods at Ace Amusements, and also online at websites such as eBay. Muzyka and Connelly also sold property to resellers, who then resold the property online using online websites.
The investigation revealed that individuals who purchased stolen items at Ace Amusements made at least $1.5 million in sales on eBay from 2007 to 2016.
Judge Shea ordered Muzyka to forfeit $73,143.91 that was seized from him during the investigation.
On March 16, 2016, Muzyka pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property. He was ordered to report to prison on February 4, 2019.
On May 23, 2018, Connelly was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and two counts of interstate transport of stolen property. On October 1, he was sentenced to 78 months of imprisonment and was ordered to forfeit an interest of $86,220.85 in a house he owns on Tuttle Drive in New Haven, $10,338.68 that was seized from his and Ace Amusements’ bank accounts, and $13,078.67 in cash that was seized from his person and from various locations inside Ace Amusements on January 25, 2016.
This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.
North Branford Man Admits Enticing Girls to Engage in Sexual Activity Through Online AppsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANIEL FLEISCHAUER, 32, of North Branford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to enticing a minor to engage in sexual activity.
According to court documents and statements made in court, between approximately 2013 and 2017, Fleischauer communicated with minor females on internet applications, including Kik and Cypher. At times, the communications involved sexual topics. During these communications, Fleischauer sent sexually explicit images of himself to minor females, and he requested, and received, images and videos of minor females engaged in sexually explicit conduct. Fleischauer believed that one of the minors with whom he engaged in this conduct was under the age of 12.
Fleischauer has been detained since his arrest on December 13, 2017.
Judge Hall scheduled sentencing for February 7, 2019, at which time Fleischauer faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
This matter is being investigated by the Connecticut Human Trafficking Task Force and Homeland Security Investigations, with the assistance of Kik Interactive. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Nine illegal aliens sentenced for illegally re-entering the United StatesRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that nine illegal aliens pleaded guilty and were sentenced to prison for re-entering the United States after being previously removed.
The defendants were sentenced to a term of imprisonment spanning the time of their incarceration to sentencing. They were then remanded to the custody of U.S. Immigrations and Customs Enforcement for deportation proceedings.
According to the guilty pleas on October 15, 2018, Louisiana State Police arrested the defendants on June 15, 2018 near Lake Charles, Louisiana: Edgar Escobar-Perez, 19, Rosa Garcia-Aguilar, 26, Manuel Lopez-Lopez, 24, Adan Baten-Perez, 35, Migdalia Baten-Perez, 32, Oscar Chavajay-Lopez, 21, Enericto Lopez-Baten, 38, and Eddy Siney-Sajquiy, 24, all of Guatemala, and Julio Cesar Juarez-Nieves, 27, of Mexico.
Manuel Lopez-Lopez has been previously removed to Guatemala three times. He was first arrested on January 29, 2015 near Rio Grande City, Texas, and removed February 3, 2015. After that, he was arrested on January 20, 2018 near Laredo, Texas, and removed on January 30, 2018, and again arrested on April 3, 2018 near Rio Grande City, Texas, and removed on April 12, 2018;
Julio Juarez-Nieves has been previously removed to Mexico twice. He was first arrested on April 7, 2011 and removed to Mexico on April 11, 2011. After that, he was arrested once more on May 29, 2018 near Brownsville, Texas, and removed again on May 31, 2018;
Edgar Escobar-Perez has been previously removed to Guatemala twice. He was removed on January 31, 2018 after being arrested on November 28, 2017 near Laredo, Texas, and on May 11, 2018 after being arrested on March 22, 2018 near Harlingen, Texas;
Eddy Siney-Sajquiy has been previously removed on February 27, 2015 after being arrested on February 24, 2015, near Hidalgo, Texas;
Enericto Lopez-Baten has been previously removed to Guatemala on March 19, 2012 after being arrested on March 5, 2012 near Rio Grande City, Texas;
Rosa Garcia-Aguilar has been previously removed to Guatemala on January 23, 2018 after being arrested on November 17, 2017 near Laredo, Texas;
Adan Baten-Perez and Migdalia Baten-Perez have been previously removed to Guatemala on April 12, 2018 after being arrested on April 3, 2018 in Rio Grande City, Texas; and
Oscar Chavajay-Lopez has been previously removed to Guatemala on April 25, 2018 after being arrested on March 27, 2018 in Casa Grande, Arizona.
The U.S. Border Patrol and Louisiana State Police conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
New Orleans Resident Sentenced to 78 Months Imprisonment after Previously Pleading Guilty to Possessing Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that DAMIAN BARBARITO ROMERO, age 38, from New Orleans, Louisiana, was sentenced to 78 months imprisonment by United States District Judge Sarah S. Vance after previously pleading guilty to a one-count Indictment charging him with possession of child pornography involving children under the age of twelve, in violation of Title 18, United States Code, Section 2252(a)(4)(B). ROMERO was also sentenced to a period of 5 years of supervised release after his term of imprisonment. Judge Vance also ordered ROMERO to pay restitution in the amount of $7,000.00.
According to court documents, special agents with the Federal Bureau of Investigation executed a search warrant at ROMERO’S residence in February 2017. During the execution of the warrant, agents seized dozens of electronic devices, including laptop computers, “thumb” drives, external storage devices, and DVDs, that contained images and videos depicting the sexual victimization of children. A subsequent forensic review revealed that ROMERO had downloaded and saved approximately 3,984 unique images and 1,258 videos depicting the sexual victimization of children, including children as young as two (2) years old being forced to engage in violent sexually explicit conduct. The forensic review also determined that ROMERO attempted unsuccessfully to encrypt and hide his collection by using a sophisticated twenty-two character password.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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National President of the Devils Diciples Motorcycle Gang Sentenced to Life Imprisonment in Connection with Racketeering and Drug-Trafficking ChargesRead the Press Release
The former National President of the Devils Diciples Motorcycle Club (DDMC), Jeff Garvin Smith, aka “Fat Dog,” 64, of Mt. Clemens, Michigan was sentenced November 13, 2018, to life in prison by the Honorable Judge Robert H. Cleland in Detroit, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Field Office.
Smith’s sentencing arises out of his having been convicted of several offenses after a six-month jury trial in 2014-2015 in federal court in the Eastern District of Michigan. Following a second, four-month trial in 2015, additional members of the Devils Diciples were convicted. In total, eight members of the Devils Diciples Motorcycle Club were convicted during two trials, including the national president (Smith), the national vice president and national warlord, and three others, for their participation in various criminal acts, including RICO, violent crimes in aid of racketeering, methamphetamine production and trafficking, illegal firearms offenses, obstruction of justice, subornation of perjury and other federal offenses.
“This brings to a close, in part, the years’ long effort of the federal government to bring down the leadership of a dangerous organized crime biker gang that terrorized innocent victims throughout the United States. For over three decades, the Devils Diciples spread fear, violence and their poisonous drugs throughout Michigan and the country,” said United States Attorney Matthew Schneider. “The extent of the crimes committed by members of this outlaw motorcycle gang is staggering, and they avoided prosecution over the years through witness intimidation and obstruction of justice at all levels. Very appropriately, the National President of the Devils Diciples will spend the rest of his life in federal prison. These sentencings help secure justice for the communities and all the individuals they harmed.”
“The life sentence imposed on this Defendant is a clear indication of the seriousness of the violence he engaged in and how committed the law enforcement community is to stop this kind of organized violence,” said Special Agent in Charge Timothy R. Slater, Detroit Division of the FBI. “The FBI, our state and local partners and the US Attorney’s offices across the region will not rest until all who would harm the peace and safety of our residents are brought to justice, regardless of where those threats originate.“
In addition to Smith, Devils Diciples National Warlord Cary Dale Vandiver, a/k/a “Gun Control,” 59, of Sand Mountain, Alabama, was sentenced to life imprisonment on November 1, 2018, methamphetamine cook Patrick Michael McKeoun, a/k/a “Magoo,” 59, of Birmingham, Alabama, was sentenced to 372 months on November 8, 2018, and Alabama leader, Michael Rich, a/k/a “Tatu,” 62 of Anniston, Alabama was sentenced to 360 months imprisonment on October 26, 2018.
Awaiting sentencing are four remaining defendants who were found guilty by a jury of engaging in a RICO conspiracy, methamphetamine trafficking conspiracy, conspiracy to obstruct justice, violent crimes in aid of racketeering and various substantive charges. Those individuals include: National Vice President Paul Anthony Darrah, aka “Pauli,” 54, of Macomb Township, Michigan; and “West Cost Boss” Vincent John Witort, a/k/a “Holiday,” 68, of Fontana, California. Victor Castano, 46, of St. Clair Shores, Michigan and David Randy Drozdowski, a/k/a “D,” 42, of Fair Haven, Michigan, were also found guilty in a second trial in late 2015 of engaging in a RICO conspiracy and methamphetamine trafficking conspiracy. Drozdowski was separately found guilty by a jury of committing violent crimes in aid of racketeering and being a felon in possession of ammunition, while Castano was separately found guilty of obstruction of justice and subornation of perjury. The remaining sentencings have been set at later dates before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.
According to evidence presented at these trials, the Devils Diciples (which is intentionally misspelled) is a motorcycle gang with its national headquarters in Clinton Township, Michigan. For decades, the Devils Diciples operated regional chapters in cities throughout Michigan, Alabama, Arizona, California, Illinois, Indiana, Ohio and elsewhere, and engaged in criminal activities to protect the enterprise and for financial gain.
Evidence presented at trial demonstrated that membership in the Devils Diciples is based in part on successful compleion of a probationary period, followed by formal approval by one or more members or leaders. Members, commonly referred to as “full patched members,” are required to own Harley Davidson motorcycles and are required to follow orders from the gang’s leadership, including orders to assault, threaten and intimidate others, to transport and distribute drugs, to lie to law enforcement and to hide or destroy evidence. Members are also required to follow the Devils Diciples by-laws and attend regular meetings referred to as “church.”
According to evidence presented at trial, Smith was the National President and Darrah was the National Vice President of the gang. In those roles, they were responsible for overall management of the activities of the other Devils Diciples members and chapters, including giving final approval to any activity generally affecting the gang as a whole. Vandiver was the National Warlord – or enforcer – of the gang. With other gang members, the leaders also participated directly in criminal activities both for financial gain on behalf of the Devils Diciples, and to protect the gang and its members.
Specifically, the evidence showed that at Smith’s direction, individuals including members and associates of the gang were beaten and robbed, and that Smith also participated in this activity directly. For instance, in late 1998, Smith shot a Devils Diciples member who failed to abide by the gang’s rules. And, in August 2008, Smith brutally assaulted the girlfriend of another Devils Diciples member because he believed she disrespected him and the gang.
Additionally, the evidence showed that Smith possessed state and federal law enforcement manuals regarding outlaw motorcycle gangs marked “For Official Use Only” and “Law Enforcement Sensitive,” and numerous documents related to criminal matters involving members of the Devils Diciples, including police reports, search warrants, affidavits, indictments and witness interview transcripts. The evidence showed that the documents were used for the purposes of counter-surveillance and to identify suspected informants. Suspected informants or members who failed to follow the gang’s rules were frequently thrown out of the gang, or “run down the road.” The evidence showed that when a member was stripped of his membership, the gang seized the member’s property and motorcycle, by violent means if necessary. For instance, the evidence at trial showed that in the mid-1990s, members of the gang murdered a former member for retaking motorcycle after the gang had “run him down the road” and seized his motorcycle.
The other defendants were also full patched members of the gang, who committed several other acts of violence.
For example, in August 2003, Witort and other gang members traveled from California and elsewhere to Arizona where they robbed, kidnapped and attempted to murder members of the gang’s Arizona Chapter for violating the gang’s rules. Inside the Arizona clubhouse, the victims were bound with duct tape and zip ties, and severely beaten with baseball bats, firearms, tasers, knives, and other weapons. The victims’ were stripped of personal possessions, such as phones, wallets, and shoes. They were then loaded into the bed of a pick-up truck, driven out into the desert, beaten further, and dumped into ravines, and left to die. The evidence showed that the beatings were planned by the national leaders, including Witort, and that Smith later congratulated participants, telling him in a letter that the Devils Diciples were “all proud of you.”
Additionally, the evidence demonstrated that in 2012, at a bar in Chesterfield Township, Michigan, Drozdowski and another Devils Diciples member assaulted a man who they mistaken believed to be a rival motorcycle gang member for being present in Devils Diciples territory. The victim was knocked unconscious and suffered multiple fractures to his face and jaw. Drozdowski and the other Devils Diciples member then ripped the leather vest off of the unconscious victim.
In addition to the four trial defendants sentenced recently, over 50 members and associates of the Devil’s Diciples have pleaded guilty to various crimes as result of this investigation. The investigation further resulted in the seizure of more than 60 firearms and more than 6,000 rounds of ammunition and the dismantling of eight methamphetamine manufacturing laboratories across the country.
The case was investigated by the FBI, the Michigan State Police, the Macomb County Sheriff’s Office and the County of Macomb Enforcement Team (COMET), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Office. The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Michigan, and the Criminal Division’s Organized Crime and Gang Section
Monroe County Man Guilty of Distributing HeroinRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Emmanuel Delcastillo, age 26, of Tobyhanna, pleaded guilty on November 14, 2018, before U.S. Magistrate Judge Karoline Mehalchick to distributing heroin in July 2014.
According to United States Attorney David J. Freed, Delcastillo admitted to distributing 100 bags of heroin to a confidential informant on July 1, 2014, in Tobyhanna.
Judge Mehalchick ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Delcastillo was indicted by a federal grand jury in October 2014, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, and Pocono Mountain Regional Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican Prosecutors visit Federal Prosecutors in Eastern District of TexasRead the Press Release
PLANO, Texas - U.S. Attorney Joseph D. Brown announced today that 20 Mexican prosecutors will be in the Eastern District of Texas this week observing and learning about the United States federal judicial system while visiting the U.S. Attorney’s Office and the federal courthouse in Plano. The visit is in coordination with the Department of Justice’s Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) and reflects U.S. Attorney Brown’s commitment to help fight organized crime at its source.
“The fight against crime requires that prosecutors and law-enforcement on both sides of the border be able to reach across international lines,” said U.S. Attorney Joseph D. Brown. “We hope to improve relationships, share intelligence, and make sure we are firing on all cylinders as we work to keep the public safe.”
Established in 1991, OPDAT builds strong foreign partnerships that can work with the United States to enhance cooperation in transnational cases and to fight crime before it reaches our shores. OPDAT provides expert assistance to foreign counterparts to help develop justice systems that can effectively combat transnational crime, corruption, and terrorism in furtherance of United States national security. Drawing primarily upon federal prosecutors from the Department of Justice and United States Attorney’s Offices, as of April 2017, OPDAT had 58 Resident Legal Advisors and Intermittent Legal Advisors posted in 47 countries. In helping to keep Americans safe from violent crime, OPDAT works closely with components throughout the Department of Justice, and partners globally with the International Criminal Investigative Training Assistance Program and with federal law enforcement agencies, including ATF, DEA, FBI, and United States Marshals.
The United States and Mexico have identified key criminal activities that are linked to organized crime, such as narcotics trafficking, money laundering, public corruption, and human trafficking. These criminal activities endanger the security and prosperity of the United States and Mexico. Accordingly, the United States and Mexico are working to strengthen their cooperation to effectively combat these international criminal organizations.
In this regard, the United States and Mexico plan to develop and share strategies to effectively combat and dismantle organized criminal structures.. This includes:
- Streamlining the exchange of information in real time among investigative bodies by utilizing law enforcement channels of communication whenever possible;
- Prioritizing and collaborating in the interdiction of shipments of narcotics and its illicit proceeds;
- Engaging in investigative strategies, where possible, to more effectively dismantle transnational criminal organizations;
- Increasing the exchange of best practices to more effectively investigative and prosecute transnational criminal organizations; and
- Developing joint capacity building and training programs for public sector actors responsible for criminal investigations and prosecutions, with a particular focus on organized crime, narcotics trafficking, money laundering, asset forfeiture, and public corruption.
The Eastern District of Texas looks forward to welcoming these visiting prosecutors on Nov. 14-15, 2018 knowing that the visit will advance the goals of this collaborative effort between the United States and Mexico.
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- Streamlining the exchange of information in real time among investigative bodies by utilizing law enforcement channels of communication whenever possible;
Mexican National Indicted for Murder Aboard Fishing Vessel 55 Miles Off Massachusetts CoastRead the Press Release
BOSTON – A federal grand jury has indicted a Mexican national in connection with a murder aboard a fishing vessel off the coast of Massachusetts.
Franklin Freddy Meave Vazquez, 27, was indicted today on one count of murder in the second degree, one count of attempted murder, and one count of assault with a dangerous weapon. Meave Vazquez was arrested and charged by complaint on Sept. 24, 2018, and has been detained since.
On Sept. 23, 2018, the fishing vessel, Captain Billy Haver, was sailing approximately 55 miles off the coast of Massachusetts with seven crew members aboard, including Meave Vazquez. It is alleged that at some point in the afternoon, Meave Vazquez assaulted a crew member on board with a hammer in one hand and a knife in the other. The victim then saw that another crew member was lying on the deck bleeding. Meave Vazquez then struck a third crew member with the hammer. It is further alleged that Meave Vazquez then climbed up the mast of the ship as the others onboard tried to capture him.
The captain of the ship placed a call on the distress channel, to which a German cruise ship, the Mein Schiff 6, responded. Two of the wounded were taken aboard the cruise ship, where one victim was pronounced dead by the ship’s doctor.
According to court documents, Meave Vazquez is illegally present in the United States. On March 9, 2018, he was arrested in Newport News, Va., for abduction by force, intimidation, or deception, and released on bond.
The charge of second degree murder provides for a sentence of up to life in prison, five years of supervised release, and a fine of $250,000. The charge of attempted murder provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of assault with a dangerous weapon provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Vazquez will be subject to deportation proceedings upon completion of any sentence imposed. 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; Richard D. Cox, Special Agent in Charge of the U.S Coast Guard Investigative Services Northeast Region; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Christine Wichers and Laura J. Kaplan of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
Israel Birman pleaded guilty yesterday in U.S. District Court for the Central District of California to filing a false federal tax return on which he failed to report interest income he earned from bank accounts at Bank Leumi Le-Israel B.M., announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, between 2006 and 2014, Israel Birman held offshore bank accounts in Israel at Bank Leumi and Israel Discount Bank. The accounts had balances over $10,000 each year, which required the filing of Reports of Foreign Bank and Financial Accounts (FBARs) with the Department of the Treasury. In 2013, Israel Birman’s bank accounts at Israel Discount Bank had a total value of over $3.4 million. Israel Birman did not file FBARs for 2006-2014. Israel Birman instructed Bank Leumi to hold bank mail from delivery to the United States, and obtained access to his offshore funds through the use of “back-to-back” loans from Bank Leumi USA collateralized by his undeclared Bank Leumi offshore funds. In 2009 and 2010, Israel Birman earned taxable interest income on his Bank Leumi bank accounts totaling over $187,000. He failed to report that interest income on his 2009 and 2010 federal tax returns.
“The Department of Justice continues to vigorously investigate and prosecute offshore account holders who maintain undeclared accounts and willfully ignore their U.S. reporting and tax obligations,” said Principal Deputy Assistant Attorney General Zuckerman.
In December 2014, Bank Leumi entered into a deferred prosecution agreementafter the bank admitted to conspiring from at least 2000 until early 2011 to aid and assist U.S. taxpayers to prepare and present false tax returns by hiding income and assets in offshore bank accounts in Israel and other locations around the world. Under the terms of the deferred prosecution agreement, Bank Leumi paid the United States a total of $270 million and continues to cooperate with respect to civil and criminal tax investigations.
U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file an FBAR each year disclosing the account.
Sentencing is scheduled for January 28, 2019. Birman faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties. As part of the plea agreement, Israel Birman has agreed to pay a civil penalty of not less than $1,709,883, representing fifty percent of the balance in his Israel Discount Bank account in 2013.
Principal Deputy Assistant Attorney General Zuckerman commended special agents from IRS-Criminal Investigation, who are investigating the case, and Tax Division Trial Attorneys Leslie Goemaat and Melissa Schraibman Grinberg, who are prosecuting the case. The Tax Division thanks the U.S. Attorney’s Office of the Central District of California for its assistance. Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mahoning County judge indicted for stealing at least $100,000 from a former clientRead the Press Release
A Mahoning County judge was indicted in federal court for stealing at least $100,000 from a former client, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Diane Vettori-Caraballo, 50 of Youngstown, was charged with one count of mail fraud, one count of structuring cash deposits, and one count of making false statements to law enforcement.
Vettori-Carabllo and her husband Ismael Caraballo, 60, were also charged with one count of filing a false tax return.
Vettori-Caraballo stole between $100,200 and $328,000 in cash that was in the home of a client when that client died in March 2016, according to the indictment.
Vettori-Caraballo was elected to position of judge in Mahoning County Court #3 – Sebring Court in 2002, with jurisdiction over misdemeanor criminal and traffic charges and other matters in Sebring and Beloit Villages and Berlin, Green, Goshen,, Ellsworth, Smith and Washingtonville Townships. She was reelected in 2006 and 2012, according to the indictment.
She also provided estate planning services to Robert Sampson, including drafting his will. On Nov. 20, 2015, Vettori-Caraballo filed an application in Mahoning County Probate Court to administer Sampson’s estate. The application stated Sampson died without a will. The probate court, unaware of Sampson’s will, appointed Falgiani as the administrator three days later, according to the indictment.
Sampson died in 2015 and his closest living relative was his sister, Dolores Falgiani. Vettori-Caraballo prepared Falgiani will on Nov. 3, 2015. The will made 16 specific bequests to relatives and friends and bequeathed the rest of the estate to Animal Charity Human Society of Boardman and the Angels for Animal Charity in Canfield, according to the indictment.
Sometime in October or November 2015, Falgiani stated she was in possession of several shoeboxes of cash stored at her residence. Falgiani was found dead in her home on March 10, 2016, according to the indictment.
Vettori-Caraballo filed an application in Mahoning County Probate Court to probate Falgiani’s estate on March 24, 2016. On May 2, she reported having found cash in the residence and depositing the $20,000 into the estate, according to the indictment.
Vettori-Caraballo filed a notice of newly discovered assets with the court on several subsequent occasions in 2016 and 2017. Each time, she failed to disclose the cash she had stolen, according to the indictment.
The indictment also charged Vettori-Caraballo with structuring 22 deposits of the cash she stole into five different banks within four weeks to avoid regulations that require banks to report cash transactions over $10,000 to the IRS. In addition, the information charges that Vettori-Caraballo lied to the FBI when she was confronted about the theft and the structuring of cash deposits.
This case was investigated by the Fedearl Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Alex Abreu
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines, which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
An indictment is a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
MS-13 Leader Sentenced to 16 Years in Prison for RICO ConspiracyRead the Press Release
BOSTON – The leader of MS-13’s Eastside Loco Salvatrucha (ESLS) clique was sentenced today in federal court in Boston for RICO conspiracy.
Edwin Guzman, a/k/a “Playa,” 32, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 16 years in prison and three years of supervised release. In February 2018, Guzman and two other MS-13 members, Herzzon Sandoval, a/k/a “Casper,” 36, and Erick Argueta Larios, a/k/a “Lobo,” 33, were convicted by a federal jury of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. A fourth MS-13 member, Cesar Martinez, a/k/a “Cheche,” 37, was convicted at the same trial of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence, specifically against rival gang members, to gain membership in and be promoted within the gang. Guzman and Sandoval were the leaders, also known as the “first word,” and “second word,” of the ESLS clique in Massachusetts.
On Sept. 20, 2015, Joel Martinez, a/k/a “Animal,” murdered a 15-year-old boy in East Boston. On Jan. 8, 2016, as a reward for the 2015 murder, Joel Martinez was promoted by the gang to “homeboy” status with a 13-second beat-in by other MS-13 members at an ESLS meeting that Guzman, Sandoval, Martinez and Argueta Larios attended.
In May 2018, Joel Martinez was sentenced to 40 years in prison and two years of supervised release after pleading guilty to RICO conspiracy involving murder. In October 2018, Sandoval was sentenced to 20 years in prison and two years of supervised release. Argueta Larios and Martinez are scheduled to be sentenced on Nov. 19, 2018, and Nov. 28, 2018, respectively.
Guzman was one of 49 defendants convicted as part of this case. All nine defendants who went to trial were convicted and 40 others pleaded guilty. In all, 16 defendants, including Joel Martinez, were found to have committed or knowingly participated in murders.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney John P. Pappas; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.