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Friday 5 October 2018
Sturbridge Woman Indicted for Government Theft and False StatementRead the Press Release
BOSTON – A Sturbridge woman was indicted by a federal grand jury in Worcester yesterday in connection with receiving government funds for a disabled child who was no longer in her custody.
Tanya Chobot, 32, was indicted on one count of government theft and one count of making a false statement to the Social Security Administration. She was charged by criminal complaint and arrested on Sept. 7, 2018, and has been detained since that time.
According to the charging documents, Chobot accepted more than $23,000 in Social Security disability payments on behalf of her biological child, but did not have custody or provide care to the child. On multiple occasions between 2011 and 2017, Chobot made materially false and fraudulent statements to Social Security to facilitate her continued receipt of the funds. For example, in October 2013, Chobot submitted a report to Social Security that falsely indicated that the child lived with her and that she had used money from Social Security for the support of the child. Chobot did not, in fact, use the Social Security payments made on behalf of the child for that child’s benefit.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison and the charge of making a false statement provides for a sentence of no greater than five years in prison. Each charge provides for up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Plead Guilty to a Multi-State Conspiracy to Commit Mail, Wire, and Bank FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Derrick Nelson, age 42, of Timmonsville, South Carolina, Whitney Magazine, age 25, of Jacksonville, Florida, Brittany Duncan, age 25, Tanisha Bynoe, age 30, and Errol Mack, age 29, of Brooklyn, New York, have entered guilty pleas in federal court in Columbia, to conspiring to commit mail, wire and bank fraud involving counterfeit American Express Travelers Checks, a violation of 8 U.S.C. § 1349. Eric Wilson, age 48 of Bishopville, South Carolina, plead guilty to the same charge on March 29, 2018. United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty pleas and will impose sentence after she has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
Evidence was presented at the change of plea hearings to establish that the investigation of this case began when the Secret Service received a report that Eric Wilson was selling counterfeit travelers checks while he was living in Florence, South Carolina. Further investigation revealed that the checks were related to an investigation into counterfeit traveler’s checks that the Secret Service had begun in New York in 2007 that had caused losses to American Express of more than twenty million dollars. The defendants and others were selling, purchasing, spending, and mailing counterfeit travelers checks throughout the United States. All of the defendants were caught in Columbia, South Carolina, and elsewhere, passing counterfeit travelers checks. U.S. Attorney Lydon stated the maximum penalty for Conspiracy to Commit Mail, Wire, or Bank Fraud is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Six Men Indicted for Stalking, Kidnapping that Resulted in a Death, and Grave Injury to Six-Year-OldRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that a federal grand jury returned a four-count indictment charging six Delaware men with violent acts that led to the death of an individual identified in the Indictment as “Victim 1,” and grave injury to a Wilmington six-year-old last June.
According to the Indictment, the defendants— Ryan Bacon, Dontae Sykes, Dion Oliver, Maurice Cooper, Michael Pritchett, and Teres Tinnin—stalked an enemy of theirs from May 6 onward. On June 6, several members of the group waited outside their target’s apartment. They ultimately followed and kidnapped Victim 1, the target’s partner, and used her phone to lure the target out of the apartment. They shot at the target, missing him, with Victim 1 in the trunk of one of their cars. The group then transferred Victim 1 from the trunk of one car to another, and two defendants—Bacon and Sykes—drove Victim 1 to Elkton, Maryland, where Victim 1 was shot five times and killed.
The Indictment describes that the group subsequently realized their target was still alive and proceeded to Wilmington. Three of the defendants—Pritchett, Oliver, and Cooper—followed their target into Wilmington, located him near the corner of 6th and Spruce Streets, and shot at him multiple times, again missing him. One shot hit a six-year-old, who was in a nearby car, in the head. The child remains permanently and seriously injured.
If convicted of kidnapping as charged in the Indictment, the defendants face a mandatory term of life imprisonment. If convicted of stalking, the defendants face a maximum of 10 years in prison.
U.S. Attorney Weiss said, “This case is the product of an unprecedented degree of cooperation between the USAO, the Delaware Attorney General’s Office, and federal, state, and local law enforcement. The teamwork exhibited by the prosecutors and law enforcement agencies that led to this Indictment is emblematic of the U.S. Department of Justice’s PSN Initiative.
One year ago, Attorney General Sessions recommitted the Department of Justice to Project Safe Neighborhoods, PSN, and directed United States Attorneys to work with federal, state and local law enforcement and community partners to reduce violent crime and to make our communities safer. These partnerships lie at the heart of PSN. When effective, they allow law enforcement to formulate a comprehensive, coordinated approach to violent crime, targeting the most violent offenders and the most dangerous communities.
In 2018, our PSN efforts in Delaware have focused in Wilmington, in particular West Center City. Crime throughout the city of Wilmington is down in virtually each key violent crime metric.
Shootings are down by 60%. Shooting homicides are down by 44%. Rape is down 75%, Robbery is down 11%, and the homicide-clearance rate is about 62%, up from a clearance rate of 11% several years ago. In West Center City, we have achieved similar results. For example, last year at this time there were 20 shooting victims in West Center City. This year, there have been four.”
Criminal indictments are only allegations and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
The case is being prosecuted by First Assistant United States Attorney Shannon Hanson, Assistant United States Attorneys Alexander Mackler, Adrienne Dedjinou, and Maureen McCartney, and Special Assistant United States Attorney Mark Denney.
Settlement with Martin Enterprises, Inc. and Its Surety for Submitting False Claims for Demolition Work under the U.S. Treasury’s Blight Elimination ProgramRead the Press Release
FORT WAYNE - United States Attorney Thomas L. Kirsch II announced today a pre-suit settlement under the False Claims Act for fraudulently submitted claims payable with federal Blight Elimination Program funds for demolition work not performed properly.
During 2008, the United States Department of the Treasury (Treasury) created the Troubled Asset Relief Program (TARP) to stabilize the economy during the financial crisis. During 2010, Treasury created the Hardest Hit Fund, Blight Elimination Program (BEP), one of several TARP programs, which funded the demolition of abandoned and blighted residential properties in designated cities. The Special Inspector General for TARP (SIGTARP) is responsible for investigating fraud, waste, and abuse in the BEP. The State of Indiana, through the Indiana Housing and Community Development Authority, administered the BEP program in Indiana using federal BEP funds. The City of Fort Wayne, Indiana (Fort Wayne) was a BEP program partner that awarded contracts to Martin Enterprises, Inc. (Martin) to demolish houses on blighted properties using federal BEP funds.
Martin and its surety, Philadelphia Indemnity Insurance Company, have agreed to pay $61,016 to resolve the United States’ claims under the False Claims Act for fraudulently submitting claims for federal BEP funds for demolition and fill work done in Fort Wayne from February-September 2017. Specifically, after demolition, instead of filling the excavation sites with clean fill as required by the contract, Martin filled the excavation sites with construction debris and then falsely billed and received payments from the federal BEP program as if they had used clean fill. Under the settlement, Martin repays the $30,508 of federal BEP funds that Martin received for the fraudulently billed claims, and also pays a civil penalty of $30,508.
“We will not tolerate dishonest contractors who seek to enrich themselves at the expense of federal taxpayers,” said United States Attorney Thomas L. Kirsch II. “My Office’s Affirmative Civil Enforcement Unit will continue to require contractors who submit fraudulent claims for federal government funds to reimburse the government for their ill-gotten gains and also pay civil penalties under the False Claims Act.”
“Dumping of potentially contaminated building material on blighted properties by the only Hardest Hit Fund-paid demolition contractor in Fort Wayne put residents and communities at risk while fleecing taxpayers,” said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program. “I thank U.S. Attorney Kirsch and his Office’s Affirmative Civil Enforcement Unit for standing with SIGTARP in the fight against fraud in TARP’s Blight Elimination Program.”
This settlement was reached as a result of an investigation by the United States Attorney’s Office for the Northern District of Indiana and the Special Inspector General for the Troubled Asset Relief Program of the United States Department of the Treasury. Assistant United States Attorney Wayne T. Ault handled the settlement negotiations.
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Serial Armed Robber Sentenced to 9 Years in Federal Prison for Committing Five Armed Robberies of Convenience StoresRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Kione Anthony Banks, age 21, of Washington, D.C., to nine years in federal prison, followed by three years of supervised release, on federal charges of robbery, and using, carrying, and brandishing a firearm during a crime of violence. The federal charges arose from a series of armed robberies of 7-Eleven convenience stores.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Anne Arundel County Police Chief Tim Altomare; and Interim Chief Amal Awad of the Hyattsville Police Department.
According Banks’ plea agreement, from May 17, 2017 through June 16, 2017, Banks conspired with Tyrone Jason Murphy, Leighton Cordell Williams, and Banks’ brother, Khiry Delonte Banks to commit five armed robberies of 7-Eleven convenience stores. The defendants wore clothing to partially conceal their faces. In four of the robberies Kione Banks brandished a firearm during the robbery and ordered the store employees to open their cash registers at gunpoint. In the fifth robbery, Murphy and Williams brandished firearms.
Specifically, Banks admitted committing robberies in Gaithersburg and Derwood, Maryland, on May 17, 2017, with Murphy and Williams. Banks committed three additional robberies on June 16, 2017, in Glen Burnie, Millersville, and Morningside, Maryland, with all three of his co-defendants. In the June 16th robberies, Murphy drove his co-defendants in a vehicle registered in the name of an associate. After the robbery in Morningside, Murphy drove onto Suitland Parkway and Prince George’s County Police officers executed a traffic stop on the vehicle. A subsequent search of the vehicle recovered two firearms, cash, and cigarettes stolen during the robberies.
Khiry Banks, age 29; Murphy, age 27; and Williams, age 32, all of Washington, D.C., pleaded guilty to the same federal charges in relation to their participation in the 7-Eleven robberies. A total of ten 7-Elevens throughout Maryland were robbed by members of this group.
Khiry Banks, Murphy, and Williams each face a maximum of 20 years in prison for robbery and a mandatory minimum sentence of seven years, and up to life in prison, consecutive to any other sentence imposed, for using, carrying and brandishing a firearm. Judge Chuang has scheduled sentencing for Murphy on October 23, 2018 at 9:30 a.m. No sentencing date has been set for Khiry Banks or Williams.
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.
United States Attorney Robert K. Hur commended the FBI Cross Border Task Force, the Anne Arundel, Montgomery, and Prince George’s County Police Departments, and the City of Hyattsville Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Timothy F. Hagan, who is prosecuting the case.
Saint Paul Felon Charged with Attempted Robbery of A Pharmacy, Drug-Trafficking and Firearms ViolationsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging MICHAEL CORTEZ REED, 25, with the attempted robbery of a Walgreens pharmacy, as well as drug-trafficking and firearms violations.[1] REED was arraigned yesterday afternoon before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
According to the indictment, on August 27, 2017, REED used force, violence, and fear of injury in an attempt to steal controlled substances from a Walgreens pharmacy located in St. Paul, Minnesota. Between September 13, 2017 and September 5, 2018, REED was found to be in possession of five or more grams of methamphetamine and three firearms, including a Ruger model P95DC nine-millimeter semi-automatic firearm, a Phoenix Arms model Raven 25 .25-caliber semi-automatic pistol, and a Kahr Arms model P380 .380-caliber semi-automatic pistol.
Because he is a felon, REED is prohibited under federal law from possessing any type of firearm at any time.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit robberies of businesses engaged in interstate commerce. If convicted, REED faces potential maximum penalties of 10 years to life in prison.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Assistant United States Attorneys Thomas Calhoun-Lopez and Benjamin Bejar are prosecuting the case.
Defendant Information:
MICHAEL CORTEZ REED, a/k/a “Hyphy,” 25
St. Paul, Minn.
Charges:
- Attempted interference with commerce by robbery, 1 count
- Felon in possession of a firearm, 3 counts
- Possession with intent to distribute methamphetamine, 1 count
- Carrying a firearm during and in relation to a drug trafficking crime, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ring Leader and Last of 52 Defendants Sentenced to 360 Months in Prison for Drug TraffickingRead the Press Release
St. Louis, MO – Israel Angeles-Moctezuma, a/k/a “Amigo,” 41, of Stockton, CA, was sentenced to 30 years’ imprisonment for conspiring to distribute more than 50 grams of actual methamphetamine. Moctezuma appeared before Judge Catherine D. Perry in United States District Court today.
This investigation resulted in the seizure of nearly 200 pounds of methamphetamine, most of which was nearly 100% pure. The Drug Enforcement Administration seized at least 18 firearms and over $300,000 in cash, all of which has been forfeited to the United States. In April 2016, 56 pounds of methamphetamine was recovered – the largest single seizure of methamphetamine in the history of the Eastern District of Missouri. Moctezuma directed a vast network of co-conspirators, whom he recruited to transport methamphetamine to St. Louis, where it was distributed through a second network of people acting at his direction. Moctezuma admitted to being response for hundreds of pounds of methamphetamine, as well as hundreds of kilograms of marijuana and heroin, all of which was smuggled into the United States from Mexico by his network.
Each of the 52 defendants indicted as a result of this investigation entered guilty pleas, including Moctezuma.
The case was investigated by the Drug Enforcement Administration – St. Louis Field Division, and the U.S. Marshals Service.
Repeat Child Sex Offender Pleads Guilty to Possessing Child PornRead the Press Release
LOUISVILLE, Ky. – A convicted child sex offender pleaded guilty before United States District Court Judge Greg N. Stivers, to possessing child pornography, announced United States Attorney Russell M. Coleman.
Lawrence William Taylor, 68, was indicted on one count of possession of child pornography on July 25, 2018.
According to the plea agreement, Taylor in 2004 pleaded guilty to online enticement of a minor in Georgia, and was sentenced to 168 months of imprisonment followed by 5 years of supervised release. Upon his release from prison in 2016, Taylor moved to Big Clifty, Kentucky. During an unannounced visit to his home on January 11, 2018, Taylor was found to have a female and an 11-year-old child living with him – a violation of his supervised release. During a follow-up meeting, a United States Probation Officer obtained consent for a search of Taylor's cell phone. The United States Secret Service conducted a forensic examination of the cell phone. That examination revealed the presence of child pornography, adult pornography, and sexually explicit images of children in cartoon format. Taylor obtained the images from the internet.
Taylor faces a minimum 10 year term of imprisonment, a maximum 20 years of imprisonment, a maximum fine of $250,000, and supervised release of at least 5 years and up to life.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The United States Probation Office with assistance from the United States Secret Service investigated the case.
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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.
Prescriber notification initiative for opioidsRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia has identified approximately 30 medical professionals who are prescribing opioids in significantly higher quantities or doses than their peers or to patients who may pose a high risk of abuse or diversion. The U.S. Attorney will provide these prescribers with specific information about their prescription patterns and will refer them to educational materials, such as the Centers for Disease Control and Prevention (CDC) Guidelines for Prescribing Opioids for Chronic Pain, related to safe opioid prescription practices.
“Medical professionals have an obligation to the safety and well-being of their patients,” said U.S. Attorney Byung J. “BJay” Pak. “Many opioid prescribers may not realize that they are overprescribing opioids. We aim to make these medical prescribers - who are outliers - aware of their atypical practices, so that they can make informed decisions about whether their opioid prescriptions are for a legitimate medical purpose. We will also continue to monitor prescribing habits.”
According to the CDC, more than 140 Americans die from an opioid overdose every day. This epidemic was created, in part, by the widespread over-prescription of opioids by medical professionals during previous years. It is our plan to strategically reduce the impact of this crisis within our community by notifying outlier prescribers that their opioid prescribing habits are not in conformity with accepted standards or the prescribing habits of their peers. Through this initiative and others, it is the goal of the Department of Justice to reduce opioid prescriptions by one-third over the next three years.
The Department of Justice has made no determination, at this time, that prescribers who receive these letters have violated the law. We have a duty, however, to protect the lives and safety of our citizens, and making information available to prescribers within the District has the potential to save lives.
This prescriber notification message is part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl, have on our neighborhoods.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pennsylvania Man Admits Helping Illegal Alien Enter the United StatesRead the Press Release
ALBANY, NEW YORK – Carlos Figueroa Rivas, age 58, of Allentown, Pennsylvania, pled guilty today to encouraging and inducing an illegal alien to enter the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, Area Port Director, United States Custom and Border Protection (CBP).
Figueroa Rivas admitted that on June 6, 2018, he drove from Montreal to a remote spot in Quebec along the border and dropped off an illegal alien from Guatemala named Mario Navarijo Orantes. Figueroa Rivas intended to enter the United States alone while Navarijo Orantes walked across the border and avoided immigration inspection.
After dropping off Navarijo Orantes, Figueroa Rivas drove to the Champlain Port of Entry and attempted to enter the United States alone driving a car registered to a third person. CBP refused to admit the car that Figueroa Rivas was driving and he returned to Canada. Border Patrol Agents arrested Navarijo Orantes in Rouses Point, New York, and determined that he intended to meet Figueroa Rivas.
Figueroa Rivas admitted that he intended to pick up Navarijo Orantes near Rouses Point and take him to Pennsylvania.
Figueroa Rivas faces up to 5 years in prison and a fine of up to $250,000 when he is sentenced by United States District Judge Mae A. D’Agostino on February 6, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Navarijo Orantes, age 52, pled guilty to the felony offense of illegal re-entry of a removed alien and is scheduled to be sentenced on October 17.
This case was investigated by CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Pelham Man Sentenced to 120 Months in Federal Prison on Illegal Drug ChargesRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announced that on Thursday, October 4, 2018, United States District Court Judge Leslie Abrams sentenced 33-year-old Joshua Griffin of Pelham, Georgia, to a total of 120 months imprisonment for the offenses of Possession with Intent to Distribute Methamphetamine (120 months), Possession with Intent to Distribute Marijuana (120 months concurrent), and Possession of Cocaine (24 months concurrent). All sentences will run concurrently. Mr. Griffin received an enhanced sentence due to a previous conviction. There is no parole in the federal system.
Mr. Griffin was found guilty on July 17, 2018, following a two-day jury trial. Evidence presented at trial showed that officers from the Pelham Police Department lawfully searched Mr. Griffin’s residence on January 11, 2017. Their search revealed marijuana in a plastic container, cocaine in a Crown Royal bag, methamphetamine, a digital scale, a razor blade with a white residue and plastic baggies.
“Our community is not turning a blind eye to the destruction caused by methamphetamine and other illegal drugs,” said U.S. Attorney Charles Peeler. “Mr. Griffin’s jury trial and stiff sentencing sends a strong message that the illegal drug trade will not be tolerated. I want to thank the Pelham Police Department for their efforts investigating this case.”
The case was investigated by agents of the Pelham Police Department and was prosecuted by Assistant United States Attorney Leah McEwen.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Pea Ridge Arkansas Man Sentenced to 6 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that John R. Gosney, IV, age 29, of Pea Ridge, Arkansas, was sentenced today to 72 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Gosney. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from Gosney. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 53.8 grams of actual methamphetamine.
Gosney was indicted by a federal grand jury in March 2018 and entered a guilty plea in May 2018.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Passaic County, New Jersey, Private Pilot Convicted of Conspiracy to Distribute Cocaine, Money Laundering, and StructuringRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man has been convicted of conspiracy to distribute cocaine, money laundering, structuring monetary instruments, and conspiracy to commit money laundering and structuring, U.S. Attorney Craig Carpenito announced today.
Khamraj Lall, 51, of Ringwood, New Jersey, was convicted Oct. 4, 2018, on all eight counts of a superseding indictment following an eight-day trial before U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in the case and the evidence at trial:
From April 2011 through November 2014, Lall, a private pilot, smuggled hundreds of kilograms of cocaine from Guyana to New Jersey and New York on his privately owned jet aircraft and then laundered the proceeds.
Lall, who owed a private jet charter business called Exec Jet Club in Gainesville, Florida, used the proceeds of his cocaine empire to purchase jet planes, houses, and cars. He also paid more than $2 million in cash stuffed in suitcases to a Florida contractor to build an airplane hangar in Guyana.Over a 3 ½ year period, Lall also made (or had others make) 1,287 cash deposits totaling approximately $7.5 million into more than 20 different bank accounts in New Jersey and New York, much of it in $20 bills. In order to avoid detection and circumvent bank reporting laws, all 1,287 deposits were for amounts less than $10,000.
In November 2014, Lall was flying one of his jets from the United States to Guyana and stopped in Puerto Rico to refuel. An outbound search of the plane discovered $470,000 in cash stuffed into a suitcase hidden in the tail of the plane, and another $150,000 in cash hidden under a seat.
The conspiracy to distribute cocaine carries a minimum penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. The counts for money laundering and conspiracy to launder money each carry a potential penalty of 20 years in prison. The counts of structuring and conspiracy to structure cash carry a potential penalty of 10 years in prison.
U.S. Attorney Carpenito credited special agents and task force officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; the Morristown, New Jersey, police department, under the direction of Chief Peter Demnitz; special agents and staff of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Brian Michael; the Drug Enforcement Administration-Rochester, New York, under the direction of Special Agent in Charge James J. Hunt; the Federal Aviation Administration, Law Enforcement Assistance Program; and U.S. Customs and Border Protection Air and Marine Operations Center under the direction of Richard T. Booth, with the investigation leading to the conviction.The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and Thomas S. Kearney of the Criminal Division in Newark.
Defense Counsel: Michael D’Alessio Jr. Esq. West Orange, New Jersey, and Tama Beth Kudman Esq., West Palm Beach, Florida
Pascagoula Man Sentenced for Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Byron Ratliff, Jr., 21, of Pascagoula, was sentenced yesterday by U.S. District Judge Sul Ozerden to 2 years in prison, followed by 3 years of supervised release, for illegally possessing a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Ratliff was also ordered to pay a $3,000 fine.
On April 5, 2018, officers with the Pascagoula Police Department responded to a shots fired report. Based on witness descriptions of the car involved, police identified Ratliff as the shooter, who along with two others in the car, were in possession of marijuana and two firearms. Both guns were stolen from Long Beach, Mississippi, just a few hours before the shooting incident. Ratliff admitted to officers that he had been smoking marijuana every day for several years.
Pascagoula Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Pair Sentenced for Cocaine ChargesRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Ronnie Jones a/k/a “Dank,” age 37, of Boston, Georgia and Gina Curry, age 35, of Pavo, Georgia, were sentenced for Possession with Intent to Distribute Cocaine by Senior U.S. District Court Judge Hugh Lawson in Macon, Georgia on October 5, 2018. Mr. Jones was sentenced to serve 70 months in federal prison. Ms. Curry received a sentence of 40 months in federal prison. There is no parole in the federal system.
Mr. Jones and Ms. Curry were indicted on the charge on February 14, 2018, and each entered a separate guilty plea on July 12, 2018. At the change of plea hearings, the Government established that on calls monitored by a court-authorized wiretap on Mr. Jones’ phone, Thomas County Vice Squad agents heard information regarding Mr. Jones’ storing cocaine at Ms. Curry’s residence. On other monitored calls, agents heard information regarding Ms. Curry delivering drugs to Mr. Jones or to his customers. A subsequent search at Mr. Jones’ residence revealed $11,818.00, 51.5 grams of crack cocaine, 273.8 grams of powder cocaine, and items indicating that crack cocaine had been manufactured inside the residence and packaged for resale.
“Participating in the drug trade leads to federal prison, not riches,” said U.S. Attorney Charles E. Peeler. “I thank the Thomas County Vice Squad for its hard work in this case.”
The case was investigated by the Thomas County Vice Squad and was prosecuted by Assistant United States Attorney Leah McEwen.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Operation High Rollers Completed with 11 Drug Traffickers Sent to Federal PrisonRead the Press Release
SAVANNAH, GA: Eleven members of a drug-trafficking organization face long federal prison sentences after the successful completion of Operation High Rollers, a multi-year investigation by the U.S. Attorney’s Office for the Southern District of Georgia and the Organized Crime Drug Enforcement Task Forces (OCDETF) into the multi-state drug distribution and money-laundering conspiracy.
More than $135,000 and a significant amount of marijuana was seized during the investigation.
The 11 defendants were part of a cartel that purchased marijuana in Texas and California and shipped it to Savannah, Statesboro and other parts of the country for sale. To conduct their illicit transactions, the drug trafficking organization laundered more than $8 million in illegal proceeds through multiple banks using deposits and withdrawals structured to conceal them from detection.
Since their indictments in December 2016 on charges of conspiracy to possess and distribute marijuana and conspiracy to engage in money laundering, all 11 have pled guilty and have now been sentenced by U.S. District Court Judge William T. Moore Jr. Sentenced in the operation are:
- Lametheus Terence Douglas, sentenced to 188 months in prison;
- Kai Jacobie Bolden, sentenced to 120 months in prison;
- Deshawn Binah Reilley, sentenced to 200 months in prison;
- Larry Turner Douglas Jr., sentenced to 30 months in prison;
- Curel Taylor Reilley, sentenced to 24 months in prison;
- Samory Toure Williams, sentenced to 87 months in prison;
- Jovan Antuan Myrick, sentenced to 30 months in prison;
- Delmus Lockhart Jr., sentenced to 37 months in prison;
- Brian Donivan Ulmer, sentenced to 46 months in prison;
- Vicobri Roykiam Miller, sentenced to 78 months in prison; and,
- Darvin Esquire Strand Jr., sentenced to 60 months in prison.
In addition, Judge Moore also sentenced each defendant to three to five years of supervised release following completion of their prison terms. There is no parole in the federal prison system.
“This was a far-reaching, complex conspiracy to spread illegal drugs across the nation, and this operation to dismantle the conspiracy demonstrates the dedication and determination of our law enforcement officers and prosecutors,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “But no matter how hard these drug traffickers try to hide their activities, we will find them, shut them down and put them in prison.”
Personnel participating in Operation High Rollers included those from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the Drug Enforcement Administration.
“Removing dangerous drugs from the streets and hitting drug traffickers in their pockets are both integral parts of dismantling sophisticated drug distribution networks, as was the case in this investigation,” said Robert J. Murphy, the Special Agent in Charge of DEA’s Atlanta Field Division. “Their money is their lifeline and without it, their drug distribution activities cannot survive. This investigation was a success because of the fine police work conducted by a collection of federal, state and local law enforcement agencies and the subsequent prosecution by the U.S. Attorney’s Office.”
Assistant United States Attorneys Karl I. Knoche and Matthew Josephson represented the United States in this investigation and prosecution.
For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422
North Dakota Man Sentenced for Enticement of a MinorRead the Press Release
United States Attorney Joe Kelly announced that Nicollas Troy Johnson, 25, formerly of Harwood, North Dakota, was sentenced today in Lincoln, Nebraska, to 7 years in prison by United States District Judge John M. Gerrard, for coercion and enticement of a minor. In addition to his prison sentence, Johnson will be required to register as a sex offender and serve 60 months on supervised release.
In July, 2017 the Beatrice Police Department received a report that a 14-year-old girl had left a note at her home stating that she was running away. The minor’s father also informed the police that his daughter had been messaging someone known as “Nico Johnson” via FaceTime. After interviewing friends of the victim, police determined that on the morning of July 10, 2017, a dark blue SUV arrived in the area driven by an older looking male, and the minor entered the vehicle and departed the area. The friends did not know the identity of the male. Through a review of the minor’s Facebook account, as well as open source databases, Beatrice Police investigators determined “Nico Johnson” to be the Nicollas Johnson, residing in Harwood, North Dakota.
Johnson was contacted at his residence in Harwood, North Dakota, and acknowledged being friends with the minor, but denied that the minor was at or had ever been to the residence. A search of his residence was conducted, and the minor was not located. Later that evening, the minor was located and contacted at a Super 8 Hotel in Fargo, North Dakota. The minor initially provided false and conflicting information about her identify and the reason she was in North Dakota, but eventually acknowledged her true identity and indicated that Johnson had picked her up in Nebraska and driven her to his home in North Dakota. Johnson was subsequently arrested and admitted to his relationship with the minor.
This case was investigated by the Beatrice Police Department of Nebraska, along with the Grand Forks Police Department and Cass County Sheriff’s Office of Grand Forks, North Dakota.
Ninth and Tenth Conspirators Sentenced to Prison in Identity Theft and Credit Fraud Scam at Sams Club and Walmart StoresRead the Press Release
Raleigh - United States Attorney Robert J. Higdon, Jr. announced that today in federal court United States District Judge Terrence W. Boyle sentenced two additional defendants to federal prison for their participation in an identity theft and credit card scam carried out at various Walmart and Sams Club stores. The Court also directed that each of the defendants serve terms of supervised release, and the forfeiture of the proceeds of their crimes.
In November of 2015, a grand jury issued a true bill of indictment charging ten defendants with engaging in a complicated scheme involving the use of stolen credit information. The indictment alleged that the defendants acquired stolen credit information from overseas hackers, and then encoded the stolen credit information onto plastic gift cards. Members of the conspiracy then took the counterfeit gift cards to Walmart locations in various states and used them to buy genuine Walmart gift cards. After acquiring genuine gift cards, the conspirators took them to Sams Club stores (who accept Walmart gift cards as tender) where they used them to purchase more than $1 Million in cigarettes. The conspirators then sold off the cigarettes for cash to various black market vendors.
SALIFU JALLOW, 33, of Sugarhill, GA, who previously pleaded guilty, was sentenced to 60 months in prison on charges of Conspiracy to Commit Money Laundering and Aggravated Identity Theft. JALLOW was also ordered to serve a three year term of supervision upon release from prison.
ABDOULAIE FRANCIS LOWE NICOLAS, 30, of Raleigh, NC, who previously pleaded guilty, was sentenced to 24 months in prison on the charge of Conspiracy to Commit Money Laundering. NICOLAS was also ordered to serve a three year term of supervision upon release from prison.
Investigation of this case was conducted by the United States Secret Service, with the assistance of the Wake Count Sheriff’s Office, the Durham Police Department, and the Fuquay Varina Police Department. The Defense Criminal Investigative Service also assisted in the prosecution of the case. Assistant United States Attorney William M. Gilmore represented the United States.
New York Man Sentenced for Traveling to Pennsylvania for Sex with a MinorRead the Press Release
PITTSBURGH, Pa. - A resident of Jamestown, New York, has been sentenced in federal court to four years and nine months imprisonment, 25 months supervised release and a $5,000 special assessment under the Justice for Victims of Trafficking Act (18 U.S.C. § 3014(a)) on his conviction of travel with intent to engage in illicit sexual conduct, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Andrew Michael Dubois, age 32, of Jamestown, NY.
According to information presented to the court, on December 7, 2017, Dubois knowingly traveled in interstate commerce from New York to Pennsylvania for the purpose of engaging in illicit sexual conduct with a minor.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
United States Attorney Brady commended the Department of Homeland Security, Homeland Security Investigations (HSI) and the North Strabane Police Department for the investigation leading to the successful prosecution of Dubois.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Haven Man Pleads Guilty to Heroin and Crack Cocaine Charges, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAVON MOORNING, 39, of New Haven, pleaded guilty today in New Haven federal court to one count of possession with intent to distribute, and distribution of, heroin and crack cocaine. MOORNING also admitted that he violated the conditions of his supervised release from a prior federal convictiion.
According to court documents and statements made in court, on July 15, 2011, MOORNING was sentenced in New Haven federal court to 100 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine. In December 2014, the sentencing judge reduced MOORNING’s sentence to 84 months of imprisonment to give MOORNING credit for time that he had served in state custody on related charges. MOORNING was released from federal prison on June 1, 2018.
On June 15, 2018, MOORNING sold heroin and crack cocaine to an individual working with law enforcement. On July 9, 2018, MOORNING sold heroin to the same individual. When officers arrested MOORNING on July 24, 2018, he possessed additional amounts of heroin and crack cocaine.
MOORNING is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on January 9, 2019, at which time he faces a maximum term of imprisonment of 20 years on the new charges, and up to two years of imprisonment for violating the terms of his supervised release.
MOORNING has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Nevada U.S. Attorney's Office Announces Progress in Making Communities Safer Through Project Safe Neighborhoods ProgramRead the Press Release
LAS VEGAS, Nev. – One year ago today, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“The goal of Project Safe Neighborhoods in Nevada is to decrease violent crime and therefore decrease victimization,” said U.S. Attorney Dayle Elieson for the District of Nevada. “Reducing violent offenders’ access and control of weapons, including illegal firearms and illegal ammunition, will lead to fewer opportunities for contributing citizens to become victims. The District of Nevada has always had a robust PSN program and strong partnerships with law enforcement. As we celebrate the one-year anniversary of the revitalized program, we are grateful to not only our communities’ dedicated law enforcement men and women, but also to our community partners for their commitment to prevention and reentry. Safety is a priority in our schools, parks, and neighborhoods; PSN is a valuable resource to achieving that goal.”
Coming in January 2019, the U.S. Attorney’s Office will host a Project Safe Neighborhoods Summit. The Summit will bring together law enforcement and community partners to discuss gang and youth violence prevention. Some of the topics will include: developing positive community relationships in neighborhoods, proven practices in gang prevention and intervention, social media as it relates to gang activity and recruitment, and discussions of potential approaches and solutions.
The Department of Justice, through the Bureau of Justice Assistance, has awarded grant money to help the Nevada PSN program. The grant furthers the PSN task force goal of increased enforcement, prevention, and outreach efforts, targeting two specifically-designated high need areas in the Las Vegas Valley. The grant award, for over $400,000, was funded on Wednesday. The PSN task force will get to work in the near future to solicit requests for sub-awards to help accomplish the PSN mission.
Las Vegas has recently created its Crime Gun Intelligence Center (CGIC), operated and housed at Las Vegas Metropolitan Police Department (LVMPD) who is a PSN partner. The CGIC, also funded by the DOJ’s Bureau of Justice Assistance, is run in connection with ATF. The Crime Gun Intelligence Center is a multidisciplinary team designed to prevent violent crime by identifying perpetrators, linking criminal activities, and identifying sources of crime guns for immediate disruption, investigation, and prosecution. There are fewer than a dozen CGICs in the United States. Southern Nevada is fortunate to have such a powerful scientific facility as a resource. The CGIC is a critical addition to Nevada’s strengthened PSN team.
The PSN program and its associated partners have contributed to the 27% reduction in violent crime in Las Vegas, according to the LVMPD annual report. There have also been reductions in violent crime in the northern part of Nevada, specifically a 4% decrease in the number of assaults and about a 3% decrease in the number of robberies, according to the Reno Police Department annual report. Nationwide, the violent crime rate has been reduced by 1%.
There is still work to be done. Gratefully, this community has great partnerships and relationships. Working together, we can help current victims and prevent new ones.
To learn more about the Department of Justice’s PSN program, visit https://www.justice.gov/psn.
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Morris County Man Convicted on Child Porn ChargesRead the Press Release
TOPEKA, KAN. - A federal jury Thursday found a Morris County man guilty of downloading child pornography from the internet, U.S. Attorney Stephen McAllister said.
Wesley Wagner, 54, White City, Kan., was convicted of one count of receiving child pornography and one count of possessing child pornography. During trial, the prosecutor presented evidence that the FBI seized a server belonging to a now-defunct website called Playpen that provided users access to child pornography. The FBI used computer forensics to identify the site’s users, including Wagner. Based on that information, the FBI obtained a warrant to search the defendant’s home.
Sentencing is set for Jan. 7. Wagner faces a penalty of not less than five years and not more than 20 years in federal prison on the charge of receiving child pornography, and up to 10 years on possession charge.
McAllister commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Missouri Man Sentenced for Disabling an Amtrak Train in NebraskaRead the Press Release
United States Attorney Joe Kelly announced that Taylor Michael Wilson, 26, of St. Charles, Missouri, was sentenced today in federal court in Lincoln for violence against a transportation system and possession of an unregistered short barrel rifle. The Honorable John Gerrard sentenced Wilson to 168 months imprisonment. There is no parole in the federal system. After his release from prison, Wilson will be on a five-year term of supervised release. Wilson was further ordered to make restitution to Amtrak in the amount of $9,350.
Wilson boarded an Amtrak train in California on October 19, 2017. He remained on the train as it traveled into Nebraska. Near Furnas County, Nebraska, Wilson, armed with a handgun, broke into the engine compartment of the train. He cut the lights to the passenger compartment and disabled the train. Some passengers panicked and attempted to escape through the windows.
Train conductors subdued Wilson. During the struggle, Wilson declared that he was the conductor. He stated that he was “trying to save the train from black people.” Wilson was restrained until law enforcement arrived, confiscated his gun and took him into custody.
Wilson claims membership in the Nationalist Socialist Movement. A search of his residence in Missouri recovered the unregistered short barrel rifle, a copy of Mein Kampf and a play Wilson wrote about taking over America.
At sentencing the government produced evidence that Wilson participated in the riots at Charlottesville, Virginia.
When imposing sentence, Judge Gerrard stated about the day that Wilson disabled the Amtrak train, “On that day, October 21, 2017, you were a gun-toting, angry…white supremacist.” and that “Fortunately for Wilson and for others, Wilson was caught while committing this particularly senseless and violent act.”
United States Attorney Joe Kelly stated that today’s sentence sends an important message. Racially motivated crimes will not be tolerated. Hate crimes such as this will be aggressively pursued to the full extent permitted by the law. He commended the Federal Bureau of Investigation, the Furnas and Harlan County Sheriff’s Offices and Assistant United States Attorney Lesley Woods for their hard work.
“The FBI remains steadfast in our commitment to keep our country and its people safe. This is the perfect example of what a unified partnership between different agencies and the U.S. Attorney’s Office should look like,” FBI Omaha Special Agent in Charge Randall Thysse said.
Milwaukee Man Sentenced to 40 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on October 3, 2018, Oscar Chaves (55 years old) of Milwaukee, Wisconsin, was sentenced in Federal Court to 40 months in prison after pleading guilty to possessing child pornography contrary to Title 18, United States Code, Sections 2252A(a)(5). After his release from prison, Chaves will spend 5 years on supervised release.
Chaves used the Gigatribe computer program to access and download child pornography, as well as to engage in highly sexualized chats with other users about their affinities for child pornography. Gigatribe is a peer-to-peer file-sharing network that establishes private network connections between users. FBI agents investigating child pornography crimes on Gigatribe obtained and executed a search warrant at Chaves’s residence in Milwaukee. During the search, FBI agents found computers, removable hard drives, and DVDs that together contained more than 6,000 images and videos of child pornography.
While handing down the sentence, United States District Judge Pamela Pepper emphasized the seriousness of the offense and the importance of protecting children from sexual exploitation. Judge Pepper noted that victims of child sexual abuse continue to suffer knowing that people like Chaves actively seek out and collect images of their abuse.
This case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Benjamin W. Proctor.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Michael ‘The Situation’ Sorrentino, Marc Sorrentino Sentenced to Federal Prison on Tax ChargesRead the Press Release
Television personality Michael “The Situation” Sorrentino was sentenced to eight months in prison, and his brother, Marc Sorrentino, was sentenced to 24 months in prison for violating federal tax laws. Principal Deputy Assistant Attorney General Richard E. Zuckerman of the U.S. Department of Justice’s Tax Division, U.S. Attorney Craig Carpenito for District of New Jersey, and IRS Special Agent in Charge John R. Tafur made the announcement.
Tax evasion charges were originally brought against Michael Sorrentino, 37, and his brother, Marc Sorrentino, 39, in September 2014, and a superseding indictment returned in April 2017 added additional charges. Michael previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count 13 of a superseding indictment, which charged him with tax evasion. Marc pleaded guilty to Count 5, which charged him with aiding in the preparation of a false and fraudulent tax return. Judge Wigenton imposed the sentences today in Newark federal court.
“Lying to and defrauding the federal government is a very serious crime, regardless of a defendant’s celebrity status,” said Principal Deputy Assistant Attorney General Zuckerman. “The Sorrentino brothers chose to use Michael’s fame to benefit themselves at the expense of the American taxpayer, and with the help of our federal partners, they were held accountable.”
“The law requires all Americans to pay our fair share of taxes. These defendants deliberately flouted this requirement, acting as though fame and celebrity status placed them above the law. They are not," said U.S. Attorney Carpenito. Tax fraud is as serious as any other form of theft from the government, and the sentences imposed today should make that abundantly clear.”
“Tax crimes, plain and simple, are an outright theft from the hardworking American public,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “The courts recognize the severity of these crimes and now Michael and Marc Sorrentino are convicted felons with prison sentences to serve for intentionally disregarding their tax obligations to our country.”
According to documents filed in this case and statements made in court, Michael Sorrentino was a reality television personality who gained fame on “The Jersey Shore,” which first appeared on the MTV network. He and his brother, Marc, created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael’s celebrity status.
Michael Sorrentino admitted that in tax year 2011, he earned taxable income, including some that was paid in cash, and that he took certain actions to conceal some of his income to avoid paying the full amount of taxes he owed. He made cash deposits into bank accounts in amounts less than $10,000 each so that these deposits would not come to the attention of the IRS.
Marc Sorrentino admitted that during tax years 2010, 2011 and 2012, he earned taxable income and that he assisted his accountants in preparing his personal tax return for those years, willfully providing them with false information. His personal tax returns under-reported his total income and taxable income.
In addition to the terms of imprisonment, Judge Wigenton ordered Michael Sorrentino to serve two years of supervised release and pay $123,913 in restitution and a criminal fine of $10,000. Marc Sorrentino was ordered to serve one year of supervised release and pay a criminal fine of $7,500.
Principal Deputy Attorney General Zuckerman and U.S. Attorney Carpenito credited special agents of the IRS, under the direction of Special Agent in Charge Tafur, with the investigation leading to today’s sentencings.
The government is represented by Trial Attorneys Yael T. Epstein and Jeffrey B. Bender of the Tax Division of the U.S. Department of Justice and Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Sentenced to Federal Prison on Tax ChargesRead the Press Release
NEWARK, N.J. – Television personality Michael “The Situation” Sorrentino was sentenced today to eight months in prison and his brother, Marc Sorrentino, to 24 months in prison for violating federal tax laws, U.S. Attorney Craig Carpenito, District of New Jersey; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the U.S. Department of Justice’s Tax Division; and IRS Special Agent in Charge John R. Tafur announced.
Michael Sorrentino, 37, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count 13 of a superseding indictment, which charged him with tax evasion. Marc Sorrentino, 39, pleaded guilty to Count 5, which charged him with aiding in the preparation of a false and fraudulent tax return. Judge Wigenton imposed the sentences today in Newark federal court.
“The law requires all Americans to pay our fair share of taxes,” U.S. Attorney Carpenito said. “These defendants deliberately flouted this requirement, acting as though fame and celebrity status placed them above the law. They are not. Tax fraud is as serious as any other form of theft from the government, and the sentences imposed today should make that abundantly clear.”
“Lying to and defrauding the federal government is a very serious crime, regardless of a defendant’s celebrity status,” said Principal Deputy Assistant Attorney General Zuckerman. “The Sorrentino brothers chose to use Michael’s fame to benefit themselves at the expense of the American taxpayer, and with the help of our federal partners, they were held accountable.”
“Tax crimes, plain and simple, are an outright theft from the hardworking American public,” Special Agent in Charge Tafur, IRS Criminal Investigation, Newark Field Office, said. “The courts recognize the severity of these crimes and now Michael and Marc Sorrentino are convicted felons with prison sentences to serve for intentionally disregarding their tax obligations to our country.”
According to documents filed in this case and statements made in court:
Michael Sorrentino was a reality television personality who gained fame on “The Jersey Shore,” which first appeared on the MTV network. He and his brother, Marc, created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael’s celebrity status.
Michael Sorrentino admitted that in tax year 2011, he earned taxable income, including some that was paid in cash, and that he took certain actions to conceal some of his income to avoid paying the full amount of taxes he owed. He made cash deposits into bank accounts in amounts less than $10,000 each so that these deposits would not come to the attention of the IRS.
Marc Sorrentino admitted that during tax years 2010, 2011 and 2012, he earned taxable income and that he assisted his accountants in preparing his personal tax return for those years, willfully providing them with false information. His personal tax returns under-reported his total income and taxable income.
In addition to the prison terms, Judge Wigenton sentenced Michael Sorrentino to two years of supervised release, 500 hours of community service, $123,000 in restitution (which has already been paid) and fined him $10,000. Marc Sorrentino was sentenced to one year of supervised release, and fined $7,500, with restitution to be determined at a later date.
U.S. Attorney Carpenito and Principal Deputy Attorney General Zuckerman credited special agents of the IRS, under the direction of Special Agent in Charge Tafur, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark; Trial Attorneys Yael T. Epstein and Jeffrey B. Bender of the Tax Division of the U.S. Department of Justice.
Defense counsel:
Michael Sorrentino: Henry E. Klingeman Esq. and Kristen Santillo Esq., Newark
Marc Sorrentino: Michael D’Alessio Jr. Esq., West Orange, New JerseyMaryland Man Sentenced to 82 Months in Prison for Robbing Teenager at Gunpoint in Northwest WashingtonRead the Press Release
WASHINGTON – Steven Sanchez, 20, of Silver Spring, Md., was sentenced today to an 82-month prison term for robbing a teenager at gunpoint last fall in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Sanchez was found guilty by a jury in July 2018 of charges of armed robbery, first-degree theft, fleeing law enforcement, destruction of property, and a related firearms offense. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Jennifer A. Di Toro. Following completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 3, 2017, at about 10 p.m., the 17-year-old victim was attacked as he walked in the area of 14th and Farragut Streets NW. Sanchez and an accomplice shoved the victim to the ground, stuck a gun to his neck, and robbed him. Sanchez and his accomplice – who were both wearing masks - took the victim’s backpack, laptop, iPhone and wallet, and fled. The victim called 911, and the Metropolitan Police Department (MPD) quickly located Sanchez and his accomplice in a car parked in an alley behind 14th Street and Ortiz Place NW. Police found some of the victim’s belongings in a nearby dumpster and the victim’s iPhone case was underneath the car.
Detectives arrived a short time later and attempted to question Sanchez. Sanchez, however, backed up his car and almost hit officers. He hit a parked car, damaging its bumper. He then exited the alley at top speed and got away. An investigation led to Sanchez’s arrest in March 2018, and he has remained in custody ever since. No others have been arrested in the case.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the Montgomery County, Md. Police Department. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Veronica Sanchez, Paralegal Specialists Debra McPherson and Richard Cheatham, Litigation Technology Specialist Anisha Bhatia, and Interns Shelby Rampolo and Chad Hansen. Finally, she commended the work of Assistant U.S. Attorneys Nurudeen Elias and Alissa Kempler, who investigated and prosecuted the case.
Man Sentenced to Prison for Drug and Gun CrimesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to over 17 years in prison for distribution of crack cocaine, possession of a firearm after a felony conviction, and violations of supervised release.
“Firearms in the hands of drug distributors, especially those who have been previously convicted of a felony, are a deadly combination,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to aggressively pursue those who have forfeited their Second Amendment rights because of felony conviction, as well as those who represent the greatest danger to the community by pedaling poison and doing so while armed. It is not only reasonably foreseeable, but highly likely that guns in the hands of drug dealers result in deadly violence. I want to thank our investigative partners at ATF for their terrific work on this important case.”
According to court documents, in January 2017, Kevin A. Brown, 31, was the passenger in a vehicle stopped by Richmond Police officers. During a consensual search, the officers recovered a distributable quantity of crack cocaine from Brown. He subsequently admitted to the officers that he was selling the crack, and that on two occasions in October 2017, Brown sold quantities of crack cocaine in Richmond to a confidential informant working with the Richmond Police Department. Officers stopped Brown as he was leaving the second drug deal, and recovered the buy money for the crack deal, an additional quantity of crack, a quantity of heroin, and a .45 caliber revolver. Brown had previously been convicted of a felony, and was not legally permitted to possess the firearm.
“This is another good example of law enforcement working together to keep our communities safe,” said Thomas Chittum, ATF Special Agent in Charge, Washington Field Division. “Drug dealers who carry firearms are making a poor choice. This should serve as a warning to others who might do the same. We will work with our partners throughout Virginia to catch you and put you behind bars where you belong.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Stephen W. Miller and Special Assistant U.S. Attorney Holli R. Wood 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-50.
Major Drug Traffickers Convicted at TrialRead the Press Release
United States Attorney Brandon J. Fremin announced today that a federal jury has convicted two members of a drug trafficking network operating in the Baton Rouge area. OSCAR MACHADO-GALEANA, age 31, of Baton Rouge, Louisiana, allegedly tied to the Sinaloan Cartel in Mexico, was convicted of drug trafficking, money laundering, and firearm violation. Late afternoon, October 4, 2018, after a 9 day trial, the jury unanimously returned guilty verdicts of guilty of conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine; possession with intent to distribute methamphetamine and marijuana; and possession of a firearm in furtherance of a drug trafficking crime. The jury convicted his co-defendant, ROY MARTIN HERRARA-ROMERO of possession with the intent to distribute marijuana.
As the evidence at trial demonstrated, MACHADO-GALEANA obtained pounds of methamphetamine as well as a quantity of heroin from a source operating in Lafayette, Louisiana, as well as pounds of marijuana from a source in northern California. Machado-Galeana, with the assistance of Alexander P. Nava, distributed methamphetamine, heroin, and marijuana to various dealers in the Baton Rouge and Laplace, Louisiana areas. Machado-Galeana used a nominee to purchase cashier’s checks and forward those to his marijuana supplier in California. In some instances, Nava and Machado-Galeana carried firearms with them when delivering methamphetamine to dealers and picking up the payments for those controlled substances. On March 18, 2015, during the execution of a search warrant at a storage unit at 13822 Florida Blvd., Baton Rouge, LA, near the premises where HERRARA-ROMERO resided, law enforcement officers seized approximately 18 pounds of high-grade methamphetamine. Law enforcement agents executed a search warrant that day also upon Herrera-Romero’s residence at 13822 Florida Blvd., Baton Rouge, Louisiana, where they found triple beam and digital scales, a. 45 caliber semi-automatic pistol, and an amount of marijuana. That same morning, officers executed a search warrant at Machado-Galeana’s residence at 11634 W. Sherwood Avenue, Baton Rouge, Louisiana, where they seized a number of firearms, methamphetamine, and marijuana.
MACHADO-GALEANA faces a sentence of not less than fifteen years and up to life imprisonment. HERRERA-ROMERO faces a penalty of up to five years imprisonment.
United States Attorney Brandon J. Fremin stated, “These convictions are another step in fulfilling our commitment to stand up to the threat of drug dealers and drug trafficking organizations who deal dangerous substances on our streets. As our Nation continues this fight we will work in lock step with our federal, state and local law enforcement partners to ensure drug dealers, like those convicted in this case, are taken out of our communities and sent to federal prison. This indictment and conviction should send a message to those who commit crime in our district… We will be patient. We will be methodical - and we will be successful.” U.S. Attorney Fremin also said, “This was truly a collaborative effort. I am extremely proud of the outstanding work by our prosecutors and staff and the many federal, state and local partners who made the investigation, prosecution and conviction possible.”
“The successful prosecution of the members of this drug trafficking organization should be a warning to others who engage in this type of activity,” stated DEA Acting Assistant Special Agent in Charge Michael Arnett. “By removing these criminals from the streets, they can no longer distribute this toxic poison to our communities. This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs and bring them to justice. This investigation is a compelling example of that success."
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the East Baton Rouge Parish Sheriff’s Office, the Internal Revenue Service-Criminal Investigations (IRS-CI), the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Robert W. Piedrahita, Peter Smyczek and Elizabeth White.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Madison County Man Sentenced to 100 Months for Robbery of a Local StoreRead the Press Release
Jackson, TN – A Madison County man has been sentenced to over eight years in federal prison for robbing a local business with a firearm. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the sentence today.
According to the information presented in court, on September 9, 2017, deputies with the Madison County Sheriff’s Office responded to a robbery call at the Five Points Country Store at 844 Ozier Road in Pinson, TN. During the investigation, deputies learned that Dakota Allen Vann approached the counter, ordered a slice of pizza, and then left the store. Vann returned to the store fifteen minutes later and handed the clerk a note stating "Empty the register all the cash I have a gun!" At the same time, Vann displayed a black semi-automatic pistol located at his waistband.
Deputies collected evidence including surveillance footage of the robbery. Vann was taken into custody on September 12, 2017. He admitted his involvement in the robbery and told deputy jailers "if I’d of known all of this I’d robbed an [expletive] bank instead."
U.S. Attorney D. Michael Dunavant said, "Violent crime affects and endangers all communities in West Tennessee, both urban and rural. This violent offender has no remorse for his brazen armed robbery of a small country store, and has no understanding of the harm that his violence inflicted on the victim store owner. Now he will have plenty of time in federal prison to suffer with the consequences of his criminal conduct, and the citizens of Madison County will be safer for it."
On October 4, 2018, U.S. District Court Judge J. Daniel Breen sentenced Porter to a total of 100 months in federal prison for brandishing a firearm during a crime of violence. The period of incarceration will be followed by a 3-year period of supervised release. Vann will also be required to pay restitution.
The Madison County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on October 4, 2018, Bryant Omonttez Williams, 38 of Lincoln, was sentenced to 21 years and 10 months (262 months) in prison for conspiracy to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual methamphetamine between July of 2016 and September of 2017. Following the prison term, Williams will serve five years on supervised release.
Information provided to law enforcement indicated that Williams was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture and at least 150 grams (over five ounces) of actual/pure methamphetamine. In January of 2017, Williams was a passenger in a vehicle that was stopped by the Lincoln Police Department. When Williams got out of the vehicle, he threw a baggie containing approximately three grams of methamphetamine on the ground and tried to spread it over the pavement with his foot. In March of 2017, officers saw Williams engaged in what appeared to be a drug transaction. He ran when officers tried to contact him but left a baggie containing approximately three grams of methamphetamine on the seat of the car he had been driving. In August of 2017, Williams’s co-defendant, Nicole Kemp, was arrested for driving on a suspended license. Her car was searched. A safe containing 528 grams of methamphetamine mixture, including at least 460 grams of actual methamphetamine, was found in the car. Kemp said the safe belonged to Williams and said she did not know there were drugs in her car. In September of 2017, Williams sold methamphetamine twice to a confidential informant for a total of approximately seven grams and was found in possession of an additional three grams.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Kenmore Police Chief Arrested, Charged with Possession of HydrocodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Peter Breitnauer, of Kenmore, NY, was arrested and charged by criminal complaint with possession of hydrocodone. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
According to the complaint, on October 5, 2018, FBI Special Agents asked the defendant about allegations that he had been diverting prescription pills from the NYS Medication Drop Box located at the Kenmore Police Station. Breitnauer admitted that he is addicted to hydrocodone, a Schedule II controlled substance, and had been taking hydrocodones from the box for his personal use. The defendant guided agents to a closet in his office, where he had stashed more than 100 hydrocodone pills that he had diverted from the drop box.
“It’s a sad day,” stated U.S. Attorney Kennedy. “Chief Breitenauer has enjoyed a long and distinguished career as a respected member of Western New York’s law enforcement community. Today’s events certainly do not erase all the good that the Chief has done during his tenure. Rather, they highlight the devastating and destructive power of opioids and underscore the fact that anyone can become ensnared in their allure. There is absolutely no evidence suggesting that the Chief ever distributed any of the drugs he is alleged to have diverted.”
The defendant made an initial appearance today before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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KC Fire Captain Charged with Illegally Selling Firearms to FelonsRead the Press Release
KANSAS CITY, Mo. – A captain in the Kansas City, Mo., Fire Department was charged in federal court today after selling dozens of firearms through straw buyers to convicted felons, some of whom used the firearms to commit other crimes. One of the firearms was used to commit a murder that is being prosecuted in the Circuit Court of Jackson County, Mo.
“Those who supply dangerous firearms to violent criminals are as much a threat to the safety of our community as the criminals themselves,” Garrison said. “We will aggressively prosecute not only those who illegally possess firearms, but also the suppliers whose criminal conduct enables them to arm themselves with these weapons.”
“At the center of ATF’s mission of reducing firearms-related violence is investigating and bringing to justice those supplying firearms to the violent, criminal elements of our communities,” said Special Agent in Charge George Lauder of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “Stopping this flow of firearms will continue to be our focus as we work to make our neighborhoods safer places to live.”
James Samuels, 52, of Kansas City, Mo., was charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Monday, Oct. 1, 2018. That complaint, which was unsealed today following Samuels’s arrest and initial court appearance, charges him with one count of selling a firearm and ammunition to a prohibited person and one count of transferring a firearm for use in a violent crime.
Samuels was arrested on Thursday, Oct. 4, 2018, following an undercover operation in which he sold a .38-caliber revolver to a confidential informant whom he knew to be a felon through an undercover federal agent posing as a straw buyer. Samuels remains in federal custody pending a detention hearing on Thursday, Oct. 11, 2018.
According to an affidavit filed in support of today’s federal criminal complaint, Samuels purchased 77 firearms, including 57 Jimenez pistols. Of the 77 firearms Samuels has purchased, 47 of them were transferred to third parties, including 43 Jimenez pistols. Six of those pistols have been involved in other crimes. Samuels does not have a federal license to legally sell firearms.
The affidavit cites eight specific transactions in which Samuels purchased firearms then transferred ownership to a straw buyer, identified in court documents as “Co-Conspirator #1,” who later reported the firearms had been stolen or lost when in fact they were possessed by persons who are prohibited from ownership by federal law.
For example, on April 7, 2016, Samuels purchased two Jimenez .380-caliber pistols (along with multiple other firearms) and transferred ownership of the pistols to the co-conspirator. According to the affidavit, one of the pistols was recovered during a homicide investigation on July 5, 2016. It was determined the recovered firearm was used to murder Alvino D. Crawford. As a result of that investigation, Devon Davis, 18, of Kansas City, Mo., was indicted by a Jackson County grand jury for first degree murder and armed criminal action.
On March 27, 2017, the co-conspirator reported that the second Jimenez .380-caliber pistol had been lost on a city bus. According to the affidavit, the firearm was recovered on March 31, 2017, in a vehicle with four adults and a juvenile, a total of three firearms, crack cocaine and $775.
Samuels purchased a Jimenez 9mm pistol on Nov. 22, 2013, and transferred ownership to the co-conspirator on July 7, 2014. The co-conspirator reported the firearm was stolen on July 23, 2014. The firearm was recovered in Chicago, Ill. The firearm was seized, along with crack cocaine and marijuana, when law enforcement officers in Chicago executed a search warrant during a criminal investigation.
On Nov. 13, 2013, Samuels purchased a Jimenez .380-caliber pistol then transferred ownership to the co-conspirator, who later reported it stolen. The firearm was recovered in the possession of Noel Zavala, 23, of Kansas City, Mo., who was convicted in a separate case of being a felon in possession of a firearm (for the very same Jimenez pistol).
In addition to those eight purchases, the affidavit reports that on Dec. 23, 2013, Samuels purchased three Jimenez pistols, one of which was transferred to another individual identified as “Party #1.” The firearm was recovered from Party #1 during service of an ex-parte order, wherein the petitioner stated that Party #1 threatened over the phone to kill her.
The affidavit also cites several controlled purchases by confidential informants, whom Samuels knew to be felons who could not legally possess firearms or ammunition, who told him they planned to use the firearms to commit homicides.
According to the affidavit, a confidential informant purchased a Winchester 12-gauge shotgun and a box of shotgun shells from Samuels on June 29, 2018, for $350. The confidential informant allegedly told Samuels he/she was going to use the shotgun to shoot people. Samuels also sold a Jimenez Arms 9mm handgun and ammunition for $290 to a confidential informant whom he knew to be a felon on July 19, 2018. An undercover ATF agent served as the straw buyer for the transaction.
On Sept. 5, 2018, Samuels allegedly sold an American Tactical Imports Omni-Hybrid AR-15 rifle, an American Tactical Imports Omni-Hybrid AR-15 pistol and ammunition to a confidential informant whom he knew was a convicted felon. The confidential informant told Samuels he was going to use the firearms to shoot four people later that day. The confidential informant, who claimed he was getting revenge after being attacked, also told Samuels he was going to burn down a residence and asked for his expertise as a firefighter. Samuels allegedly offered several suggestions about how to commit arson without being detected.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Irish Man Who Helped Run the “Silk Road” Website Pleads Guilty in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GARY DAVIS, a/k/a “Libertas,” pled guilty today to conspiring to distribute massive quantities of narcotics, a charge arising out of his role as a member of the small administrative staff of “Silk Road.” During its operation from 2011 until 2013, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute illegal drugs and other illicit goods and services to more than 100,000 buyers, and to launder hundreds of millions of dollars derived from those unlawful transactions. DAVIS pled guilty before United States District Judge Jesse M. Furman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Silk Road was a secret online marketplace for illegal drugs, hacking services, and a whole host of other criminal activity. As he admitted today, Gary Davis served as an administrator who helped run the Silk Road marketplace. Davis’s arrest, extradition from Ireland, and conviction should send a clear message: the purported anonymity of the dark web is not a protective shield from prosecution.”
According to the allegations in the Superseding Indictment, court filings, statements made in court, and evidence presented during the 2015 trial of Ross Ulbricht, Silk Road’s founder:
From January 2011, up to October 2, 2013, the “Silk Road” website hosted a sprawling black-market bazaar on the Internet, where illegal drugs and other illicit goods and services were regularly bought and sold by the site’s users. During its more than two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars derived from these unlawful transactions.
The owner and operator of Silk Road, Ross William Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” ran the website with the assistance of a small support staff, including both site administrators and forum moderators. The site administrators were responsible for, among other things, monitoring user activity on Silk Road for problems, responding to customer service inquiries, and resolving disputes between buyers and vendors. The forum moderators were responsible for, among other things, monitoring user activity on discussion forums associated with the site, providing guidance to forum users concerning how to conduct business on Silk Road, and reporting any significant problems discussed on the forums to the site administrators and to Ulbricht.
From May 2013 up to June 2013, DAVIS served as a forum moderator for Silk Road. From June 2013 up to October 2, 2013, DAVIS worked as a site administrator on Silk Road. In his role as a site administrator, DAVIS’s responsibilities included (1) responding to customer support requests from Silk Road users who needed assistance with their buyer or seller accounts on the marketplace; (2) serving as an arbitrator by resolving disputes that arose between drug dealers and buyers on the site; and (3) enforcing the rules for doing business on Silk Road, which had been set by Ulbricht. For instance, there was a rule against “out of escrow” sales—i.e., sellers and buyers arranging payments off the site to avoid paying Silk Road commissions. When violations of this rule were discovered, DAVIS could terminate the vendor’s account, demote the vendor, or otherwise restrict the vendor’s privileges, and he typically reported such incidents to Ulbricht. DAVIS was paid a weekly salary for his work as a site administrator.
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DAVIS, 30, of Wicklow, Ireland, pled guilty to one count of conspiracy to distribute narcotics, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. DAVIS is scheduled to be sentenced by Judge Furman on January 17, 2019 at 3:30 p.m.
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Mr. Berman praised the outstanding joint efforts of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations—Chicago-O’Hare, the Drug Enforcement Administration’s New York Field Division, and the Internal Revenue Service—Criminal Investigation’s New York Field Office. Mr. Berman also thanked the Irish Republic’s Computer Crime Investigation Unit of the An Garda Siochana for its valuable assistance and support. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their support and assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff, Eun Young Choi, and Timothy T. Howard are in charge of the prosecution.
Indictment Unsealed Charging Sacramento Man with International Money Laundering and Indoor Marijuana Grows in Amador and Sacramento CountiesRead the Press Release
SACRAMENTO, Calif. — A 10-count indictment was unsealed today charging Daniel Zhu, 38, of Sacramento, with conspiracy to commit international money laundering, substantive counts of international money laundering, and conspiracy to manufacture and manufacturing of marijuana, U.S. Attorney McGregor W. Scott announced.
This is the second indictment stemming from Operation Lights Out—an operation that has already resulted in federal forfeiture actions against over 100 homes in the Sacramento area earlier this year.
According to court documents, Zhu conspired with others to grow marijuana, and Zhu grew marijuana plants at three locations in Sacramento and Amador Counties. Moreover, Zhu is charged in two separate money laundering conspiracies that entailed international wires from China being used to purchase real estate in California that was subsequently turned into a marijuana cultivation site. Zhu is also charged with substantive money laundering counts for several wires from China to the United States to convert residences in Elk Grove and Fiddletown into indoor marijuana grow sites.
This case is the product of an investigation by Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations (HSI), and IRS Criminal Investigation. Assistant U.S. Attorneys Roger Yang, Matthew M. Yelovich, and Kevin C. Khasigian are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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.
If convicted, Zhu faces a maximum statutory penalty of 40 years in prison and a $5 million fine for each of the marijuana-related counts and a maximum penalty of 20 years in prison and $500,000 fine, or twice the value of the monetary instrument or funds involved, whichever is greater, for each of the money laundering-related counts. 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Illegal Alien, Previously Convicted Sex Offender, and Two Others Plead Guilty to or are Sentenced on Federal Charges Related to the Possession, Receipt, or Distribution of Child PornographyRead the Press Release
Baltimore and Greenbelt, Maryland – In U.S. District Court in Maryland today, two defendants—one a previously deported alien—were sentenced to federal prison for distribution and possession of child pornography, respectively. Two other defendants—one a previously convicted sex offender—each pleaded guilty to possession of child pornography.
The sentences and guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Calvert County Sheriff Mike Evans; Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
BALTIMORE
U.S. District Judge George L. Russell, III sentenced Jeffrey Roger Forwood, age 49, of Bel Air, Maryland, to six years in prison, followed by 15 years of supervised release, for distribution of child pornography. Forwood admitted to using a file-sharing program to distribute 38 videos depicting minors, including prepubescent minors, engaged in sexually explicit conduct to an undercover law enforcement officer. On October 25, 2017, law enforcement executed a search warrant at Forwood’s residence. Forwood admitted to searching for, downloading, and watching child pornography using anonymizing software, and a file-sharing program. Forwood further admitted that he used wiping software to delete child pornography from his home computer in order to avoid detection by law enforcement. A forensic examination of Forwood’s computer revealed more than 200 images of child pornography, a log showing downloads of child pornography videos, three separate wiping programs, and other files indicating the existence of the file-sharing program and anonymizing web browser. United States Attorney Robert K. Hur commended HSI-Baltimore, and the Maryland State Police, for their work in this investigation and thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case.
Gary Keith Pinkowski, Jr., age 33, of Catonsville, Maryland, who has prior sex offense convictions in Maryland and Delaware, pleaded guilty to possession of child pornography, which he obtained using public computers at a library. On October 22, 2017, Pinkowski attempted to produce two images of child pornography. A six-year-old boy and his father had been swimming at a recreational facility and went into the locker room to shower. Pinkowski admitted that he reached under a partition between shower stalls and took a photo of the boy, who was showering in that stall. The boy reported this to his father, who notified the facility. Although he had not seen the person in the stall next to the boy, the father noticed a pair of black and green plaid swim trunks hanging over the shower stall. Pinkowski had already left the facility on his bicycle, but staff members recognized the description of the swim trunks as belonging to Pinkowski and provided his description and contact information to Baltimore County Police officers. Officers found Pinkowski near the men’s shelter where he lived and recovered a digital camera containing an SD memory card, a second SD memory card, and multiple USB drives. One of the SD cards contained the photos of the boy, who was showering in his swim trunks, as well as child pornography. Pinkowski admitted that he used one of the USB drives to access child pornography using the public computers at a library. The USB drive contained a file that ran software that permits anonymous communication on the web. Since the library computer would not permit downloads, Pinkowski used his digital camera to take videos or pictures of the computer screen. Pinkowski and the government have agreed that, if the Court accepts the plea, Pinkowski will be sentenced to 24 years in federal prison. Judge Russell scheduled sentencing for Pinkowski on February 15, 2019, at 9:30 a.m. United States Attorney Robert K. Hur commended the FBI, HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in this investigation and thanked Assistant U.S. Attorneys Jeffrey J. Izant and Sandra Wilkinson, who are prosecuting the case.
GREENBELT
U.S. District Judge Peter J. Messitte sentenced Jimmy Orlando Varela-Reyes, age 25, an illegal alien residing in Aspen Hill, Maryland, to two years in prison, followed by six years of supervised release, for possession of child pornography. Varela-Reyes is a Honduran national who was previously deported on July 9, 2012 and illegally re-entered the United States prior to July 2017. As part of his plea agreement, Varela-Reyes also acknowledged that he is in the United States illegally and that he will be deported upon the completion of his sentence. According to his plea agreement, the National Center for Missing and Exploited Children (NCMEC) received a cybertip from Facebook in July 2017 that Varela-Reyes’ Facebook account had been used to entice a female to produce and send sexually explicit images via private message. Investigation showed that Varela-Reyes enticed and coerced a 13-year-old girl to send him the sexually explicit images. After obtaining search warrants, law enforcement determined the location of Varela’s cellular telephone to be a particular apartment in Aspen Hill, Maryland. A federal search warrant was executed at the apartment and Varela-Reyes was present. His cellular telephone was seized and a preview of the phone revealed the photographs provided in the Facebook cybertip. United States Attorney Robert K. Hur commended HSI-Baltimore for its work in this investigation and thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the case.
Frank Crawford III, age 32, formerly of Virginia, pleaded guilty to receipt of child pornography in which he enticed a minor victim to send him sexually explicit photos of herself. Specifically, on May 4, 2017, Crawford communicated with a minor female who resided in Maryland, and persuaded the victim to send him sexually explicit images of herself. Crawford admitted that he and the victim used an interactive live chat service to engage in sexually explicit conduct. Crawford admitted that he knew the victim was a minor. Crawford and the government have agreed that, if the Court accepts the plea, Crawford will be sentenced to between eight and 15 years in federal prison. U.S. District Judge Theodore D. Chuang scheduled sentencing for Crawford on February 4, 2019, at 2:00 p.m. United States Attorney Robert K. Hur commended the FBI and the Calvert County Sheriff’s Office for their work in this investigation and thanked Assistant U.S. Attorney Joseph R. Baldwin, who is prosecuting the case.
As a result of their convictions, all four of these defendants will be required to register as a sex offenders in the places where they reside, where they are employed, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
These cases were all 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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Illegal Alien Pleads Guilty to Unlawfully Reentering United States After RemovalRead the Press Release
Gulfport, Miss. – Donai Villafuerte-Martinez, 28, an illegal alien from Guatemala, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr., to the federal crime of Unlawful Reentry by an Alien after Removal, announced U.S. Attorney Mike Hurst and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Villafuerte-Martinez is scheduled to be sentenced by Judge Guirola on January 3, 2019. He faces a potential maximum penalty of 2 years in prison, followed by 1 year of supervised release, a maximum $250,000 fine, and Department of Homeland Security removal proceedings after completion of any prison sentence.
On August 6, 2018, a South Mississippi Metro Enforcement Team Agent, who also is a City of Gautier Police Officer, stopped a 2015 Toyota Corolla with a fraudulent Texas license paper tag along Interstate 10 East in Jackson County. Based on his training and experience as an interdiction agent, the officer believed he had interrupted an alien smuggling event in progress and he called the U.S. Border Patrol. Two Border Patrol agents, including a fluent Spanish speaker, responded to the scene and determined that the driver had been a passenger in a vehicle that had been recently stopped by agents on I-10, although no arrests had been made.
Agents also noted multiple indicators that alien smuggling was taking place. Ultimately, the driver was arrested for transporting illegal aliens. His five passengers, including Villafuerte-Martinez, were arrested for being illegally present in the United States, and all were transported to the Gulfport Border Patrol Station for processing. At the Border Patrol Station, two of the five illegal alien passengers, including Villafuerte-Martinez, were identified as having been lawfully removed from the United States.
Agents determined that Villafuerte-Martinez was born in Guatemala in 1990, is a citizen of Guatemala, and is an illegal alien who had been lawfully removed from the United States in 2017. Finally, agents determined that Villafuerte-Martinez had not received permission to reenter the United States when he illegally returned in 2018.
U.S. Attorney Hurst praised the coordinated work of the United States Border Patrol, the South Mississippi Metro Enforcement Team and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Huntsville Man Sentenced to 17½ Years in Prison as Armed Career CriminalRead the Press Release
HUNTSVILLE – A Huntsville man who shot at police in 2015 when they came to his home to serve a search warrant received a federal prison sentence Thursday of more than 17 years, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Sharon Lovelace Blackburn sentenced CEDRIN FARODD CARTER, 35, to 17½ years in prison for illegal possession of marijuana and for being a convicted felon in possession of a firearm. Carter’s felon in possession conviction carried a mandatory minimum sentence of 15 years and a maximum life sentence because the judge determined he is an armed career criminal.
“Society needs protection from dangerous criminals like this defendant, and the U.S. Attorney’s Office and our law enforcement partners are providing it,” Town said. “Carter is an armed career criminal with a string of prior drug offenses. He was dealing drugs, carrying a gun and fired it at police in September 2015. The judge sentenced Carter to 17½ years in federal prison, which ensures that he will be unable to further threaten society during this time.”
“The sentencing represents the direct impact by ATFs Crime Gun Intelligence for those who choose to cause harm to law enforcement and the public,” Watson said.
In sentencing Carter, Judge Blackburn found that he committed perjury when he testified in his own defense at his 2018 trial. According to the government’s sentencing memorandum, Carter’s perjury included “outlandish allegations that law enforcement staged a crime scene, fabricated evidence, and coerced him into signing a Miranda waiver form. He plainly obstructed justice and failed to accept responsibility for his crimes.”
ATF investigated the case, which Assistant U.S. Attorneys Michael Royster and Mohammad Khatib prosecuted.
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Harrison County man admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy Smith, of Clarksburg, West Virginia, has admitted to a child pornography charge, United States Attorney Bill Powell announced.
Smith, age 37, pled guilty to one count of “Possession of Child Pornography.” Smith admitted to possessing images of a child under the age of 12 in March 2018 in Harrison County.
Smith faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Davis J. Perri is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan Cocaine Transporter Sentenced for Drug TraffickingRead the Press Release
RICHMOND, Va. – A Guatemalan man was sentenced today to over 17 years in prison for his role in transporting 1,107 kilograms of cocaine for a large-scale Guatemalan drug trafficking organization (DTO) operating in Central America, as part of a coordinated international law enforcement investigation codenamed Operation Go Explorers.
According to court documents, Paulo Cesar Montenegro-Arevalo, 41, conspired to distribute over 1,000 kilograms or more of cocaine, knowing and intending that it would be unlawfully imported into the United States from 2015 to 2016. Montenegro, who was extradited to the United States on March 14, 2018, served as the DTO’s logistical coordinator for Guatemalan trafficking operations. In this role, Montenegro supervised a transportation team, tested the purity of the cocaine purchased by the DTO, organized transportation efforts, and directed the movement of cocaine loads. Operating primarily within Guatemala, Montenegro and his team knowingly orchestrated the movement of 1,107 kilograms of cocaine to the Guatemalan-Mexican border on behalf of the DTO. In May 2016, Montenegro, along with other co-conspirators, participated in a search and rescue recovery effort of approximately 500 kilograms of cocaine lost at sea by the DTO off the Pacific coast of Guatemala.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert, Peter S. Duffey, and Heather H. Mansfield prosecuted the case.
Operation Go Explorers was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). 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.
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. 3:16-cr-67.
Grayson County Physician Guilty of Federal Drug ChargesRead the Press Release
SHERMAN, Texas – A 57-year-old Sherman, Texas doctor has pleaded guilty to federal drug distribution and fraud violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Howard Gregg Diamond pleaded guilty to conspiracy to possess with intent to distribute controlled substances and health care fraud and aiding and abetting today before U.S. Magistrate Judge Christine Nowak.
According to information presented in court, beginning in 2010, Diamond wrote prescriptions for substances such as hydrocodone, oxymorphine, methadone, fentanyl, morphine, oxycodone, alprazolam, and zolpidem, without a legitimate medical purpose. Specifically, on July 15, 2014, Diamond distributed or dispensed morphine, oxycodone, alprazolam and zolpidem to an individual that resulted in that individual’s death on July 25, 2014. Additionally, Diamond had a claim for reimbursement for services submitted to Medicare claiming he treated a Medicare patient on Sep. 29, 2015, although he was in another state at that time. Diamond was indicted by a federal grand jury on July 6, 2017.
"Physicians like Dr. Diamond have been fueling the opioid crisis in this country," said U.S. Attorney Joseph D. Brown. "The number of pills that he was putting out on the street was shocking. And in this case, death was linked to those pills. Undoubtedly, others' addictions were worsened, and families suffered as a result. To reduce the impact of opioids, doctors have to take their obligations seriously, and if they don't, there will be more prosecutions like this."
This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
At the plea hearing, Diamond agreed to a sentence of 20 years in federal prison, waived his right to appeal and forfeited his DEA registration number. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Drug Enforcement Administration, Department of Health and Human Services, Internal Revenue Service, the Federal Bureau of Investigation, the Sherman Police Department, the Ellis County Sheriff’s Office, and the Texas Office of the Attorney General. This case is being prosecuted by Assistant U.S. Attorneys Heather Rattan and Maureen Smith.
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Georgia Man Sentenced to 120 Months for Attempted Enticement and Traveling to Have Sex with a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Frantisek Pribyl, 49, of Snellville, Georgia, was sentenced to 120 months in prison today, after being convicted on May 23 of attempted enticement of a minor and travel with intent to engage in illicit sexual conduct. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2017, undercover investigators conducted “Operation Cupid’s Arrow” to identify individuals seeking to engage in sexual activity with minors. Pribyl responded to a Craigslist advertisement in which an undercover officer posed as the mother of a 14-year-old girl and then as the daughter. Over two days, Pribyl continued his conversation with the “girl” via e-mail, discussed sexual activity with her over e-mail and during a controlled telephone call, and traveled more than 250 miles to Tallahassee to meet her to have sex. Pribyl was arrested after arriving at the designated meeting location.
United States Attorney Canova said: “Together with our law enforcement partners, we will continue to investigate and prosecute child predators through online undercover operations to protect innocent children and keep our communities safe.”
“Like the other suspects in Operation Cupid’s Arrow, Frantisek Pribyl had a strong desire to have sexual relations with children,” said Tallahassee Special Agent in Charge Mark Perez. “We will continue to investigate and arrest criminals who want to hurt our children.”
“While this predator thought he was going to victimize a young girl, he found law enforcement officers instead,” said HSI Tampa Special Agent in Charge James C. Spero. “This case highlights the importance of the North Florida Internet Crimes Against Children Task Force and our role in keeping our communities safer.”
The case was investigated by the Florida Department of Law Enforcement, the Panama City Police Department, the United States Immigration and Customs Enforcement Homeland Security Investigations, the U.S. Marshals Service, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
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.
Former correctional officer charged with smuggling narcotics into Hays State PrisonRead the Press Release
ROME, Ga. - Mark Edward Jeffery, a former Georgia Department of Corrections (GDC) officer, who allegedly brought alcohol, drugs, and contraband cellphones into Hays State Prison, was arraigned on federal charges of possession with the intent to distribute methamphetamine.
“Jeffery failed to uphold his duty as a correctional officer when he allegedly smuggled illegal contraband into prison,” said U.S. Attorney Byung J. “BJay” Pak. “Correctional officers who smuggle contraband into prisons not only betray the institutions they protect, but also jeopardize the safety of fellow correctional officers and inmates.”
“It is imperative that our correctional facilities are safe for both inmates and staff,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “When contraband is brought into prisons it jeopardizes that safety. And when it is a corrections officer who brings in that contraband, violating his or her sworn duty, it is our job to vigorously investigate and hold them accountable.”
“We are committed to ridding our prisons of individuals who bring discredit to the badge, and we are proud of those officers who work with integrity and vigilance in stopping the introduction of contraband into our facilities,” said GDC Commissioner Gregory C. Dozier. “Our appreciation for the continued support of our federal law enforcement partners and the U.S. Attorney’s Office is steadfast, as they help ensure that justice is served on those who choose a path of dishonor.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On February 7, 2018, Jeffery worked as a correctional officer at Hays State Prison in Trion, Georgia. One of Jeffery’s fellow correctional officers observed a large rectangular object, wrapped in black electrical tape, hidden in Jeffery’s beverage container. The fellow officer notified a supervisor about possible contraband.
Later that day, the prison’s chief of security searched Jeffery’s person and belongings, where he found one glass pipe, four cellular phone chargers, four smartphones, two bags containing 190 suspected ecstasy pills, a plastic bag with methamphetamine, and a water bottle with alcohol.
Mark Edward Jeffery, 33, of Fairmount, Georgia, was indicted by a federal grand jury on October 2, 2018. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Corrections.
Assistant U.S. Attorney C. Brock Brockington is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Senior VP of Demolition Company Admits Taking $340,000 in Bribes to Steer Contracts to Cinelli Iron & Metal Co.Read the Press Release
NEWARK, N.J. – A former senior vice president of a national demolition company today admitted accepting $341,052 from the chief executive officer and from the president of a scrap metal company to steer business to them, U.S. Attorney Craig Carpenito announced.
Frank Aiello, 53, of Wyckoff, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Aiello worked as a senior vice president at Corporate Victim 1, a demolition and remediation services company with offices throughout the United States, including New Jersey.
Cinelli Iron & Metal Co. Inc. purchased scrap metal for resale. Cinelli was headquartered in Secaucus, New Jersey, and operated three scrap metal recycling facilities in New Jersey. Co-Conspirator 1 (CC-1) was a co-owner of Cinelli. Co-Conspirator 2 (CC-2) was the President and co-owner of Cinelli.
From 2013 through 2016 Aiello participated in a conspiracy with CC-1 and CC-2 to defraud Corporate Victim 1 of its right to his honest services in the performance of his duties. The principal goal of the conspiracy was for Aiello to use his position to enrich himself by soliciting and accepting gifts, payments, and other things of value from the two Cinelli conspirators in exchange for actions favorable to their business, and for the Cinelli officials to enrich themselves by secretly obtaining favorable action through corrupt means.
The wire fraud conspiracy count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 15, 2019.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.
The government is represented by Senior Litigation Counsel Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: John Azzarello Esq., Morristown, New Jersey
Florida man pleads guilty to trafficking cocaine in Calcasieu ParishRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Florida man pleaded guilty this week to trafficking nearly 10 kilograms of cocaine.
Kavin Grandison, 46, of Pensacola, Florida, pleaded guilty Wednesday before U.S. Magistrate Judge Kathleen Kay to one count of possession with intent to distribute a controlled substance. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, a law enforcement officer conducted a traffic stop on Grandison’s vehicle on February 22, 2018 in Calcasieu Parish. After a search of the vehicle, the officer discovered sealed plastic bags in the gas tank, which contained powder cocaine. The substance was tested, weighed and found to be 4.972 kilograms of cocaine. During an earlier arrest, officers had stopped Grandison’s vehicle on November 8, 2017 in Jackson County, Mississippi, and conducted a search of his vehicle. They found six sealed packages in a detergent box that later tested to be 4.384 kilograms of cocaine. Grandison was found with a total of 9.356 kilograms of cocaine confiscated from both vehicle stops.
Grandison faces up to 40 years in prison, five years of supervised release and a $5 million fine. The court set the sentencing date for December 17, 2018.
Homeland Security Investigations and the Calcasieu Anti-Drug Team conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Federal Prosecutors Bring Child Pornography and Other Exploitation Cases as Part of Ongoing Efforts to Combat Victimization of ChildrenRead the Press Release
LOS ANGELES – United States Attorney Nick Hanna and FBI Assistant Director in Charge Paul D. Delacourt today announced a series of child exploitation cases involving the victimization of minors through crimes that include the production of child pornography.
FBI agents on Thursday arrested two defendants as part of a multi-agency sweep that led to eight defendants being taken into custody over the past 10 days. Several of the cases involved agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). These cases are part of Project Safe Childhood, which is the Justice Department’s ongoing initiative to combat the growing epidemic of child exploitation crimes.
The internet has dramatically increased the availability of child pornography, and digital equipment has made it relatively easy to create, distribute and collect these disturbing images. But underlying each case in which an individual uses technology, there is a young victim who was abused, molested or coerced to engage in sexual activity to fulfill the deviant interests of a perpetrator. Every child exploitation prosecution is designed to end this horrific behavior, to stop the cycle of abuse, and to bring offenders to justice.
“These cases involve acts of depravity against vulnerable young people, many of whom will continue to be victimized as photos documenting their abuse spread across the internet,” said United States Attorney Nick Hanna. “These cases are a reminder that child predators cannot hide behind the perceived anonymity of the internet. Those who engage in the child pornography industry – whether they create new images or collect videos – can and will be caught as a result of the concerted efforts of local, state and federal law enforcement authorities. Our aggressive investigators and prosecutors will continue to diligently work to protect innocent children and to seek justice for those who are victimized.”
“The cases being announced today range from individuals who continuously feed the demand for child pornography by sharing it, to those who document the sexual abuse of children through images and video, and others who travel abroad for the purpose of molesting children. In each case, a voiceless child is victimized for life,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners have a clear mission that includes rescuing these precious victims from this unspeakable abuse and delivering some justice by putting their abusers in prison.”
The two defendants arrested Thursday by the FBI are:
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Nestor Ramirez, 36, of South Los Angeles, who is charged with production, distribution and possession of child pornography. The production charge relates to images that Ramirez allegedly created, and he allegedly distributed videos over a peer-to-peer network on at least two occasions. During his arraignment Thursday afternoon, Ramirez pleaded not guilty to the charges in a four-count indictment and was ordered to stand trial on November 27. Ramirez was detained – meaning held without bond – pending trial.
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Victor Manuel Diaz Romo, 53, of Lawndale, who is named in an indictment alleging receipt of child pornography over a peer-to-peer network and five counts of possession of child pornography. During his arraignment on Thursday, Romo pleaded not guilty and was ordered to stand trial on November 27. Romo was ordered detained pending trial.
The FBI-led sweep resulted in the arrest of six other defendants last week. Each of those defendants has entered not guilty pleas and are facing trials later this year. Those arrested on September 26 and 27 pursuant to grand jury indictments are:
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Christopher Norman Strinden, 57, of Long Beach, who is charged with three counts of possession of child pornography he obtained from a now-defunct website called Playpen, which was operating on the dark web. Many of the more than 17,000 images in this case allegedly involve minors under the age of 12, including toddlers.
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Kenneth Rudy Smith, 31, of Lawndale, who is charged with one count of possession of child pornography involving victims under the age of 12 that was found during a search of his residence.
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Justin Schobey, 19, of Canyon Country, who is charged with production, distribution and possession of child pornography. Schobey allegedly used text messages to coerce a boy in another state to produce child pornography.
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Jorge De Los Santos, 31, of South Los Angeles, who is charged with two counts of receipt of child pornography and one count of possession. De Los Santos allegedly used an online peer-to-peer network to obtain sexually explicit videos depicting young males.
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Fernando Vazquez Garcia, 30, of South Los Angeles, who is charged with receipt of child pornography, as well as possessing videos he allegedly obtained over a file-sharing network.
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Nathan Pham, 27, of Long Beach, who is charged with both receipt and possession of child pornography obtained through a peer-to-peer network. The possession count alleges images involving minors under the age of 12.
“No crime impacts us as law enforcement agents and as parents more deeply as the abuse of an innocent child,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “As these cases vividly illustrate, the internet has left our children vulnerable to exploitation by sexual predators not just around the corner, but around the globe. The staggering number of arrests achieved through interagency cooperation is a testament to our combined passion to prevent future harm to innocent children."
In recent weeks, federal prosecutors have filed cases against additional defendants who allegedly committed child exploitation offenses. Those case include:
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A former music teach from Ventura – John Zeretzke, 60– who is charged with production of child pornography, attempted enticement of a minor, and traveling to the Philippines with the intent to engage in illicit sexual conduct. This case is being investigated by the United States Postal Inspection Service.
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Members of the Los Angeles Regional Human Trafficking Task Force arrested a Long Beach man on charges of coercing a minor to produce child pornography and travelling to Mexico to engage in illicit sexual conduct. Jonathan Sandoval-Lepe, 31, was taken into custody by deputies with the Los Angeles County Sheriff’s Department and FBI agents pursuant to a five-count indictment.
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Israel Sanchez, 52, of Sylmar, who was arrested on August 30 pursuant to an indictment that charges him with 13 counts of production of child pornography and one count of possession. Sanchez was arrested after he was released from state custody on child molestation charges involving one of the very young victims in the child pornography case.
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Alex Primitibo Campos, 25, of Palmdale, who was arrested on September 5 on charges of distributing child pornography and three counts of possession. The distribution charge relates to videos depicting children as young as approximately 7 that Campos allegedly made available to others via download from a peer-to-peer network.
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Joseph Natale, 24, of Lancaster, who was indicted on September 18 on two counts of distributing child pornography and two counts of possession. This case stems from an undercover FBI investigation in which agents downloaded images that Natale allegedly made available via a peer-to-peer network.
There have been developments recently in other child exploitation cases being prosecuted by the United States Attorney’s Office. Those cases involve:
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Michael Joseph Farber, 50, of West Los Angeles, who pleaded guilty on September 14 to one count of possession of child pornography. Farber specifically admitted that he possessed videos showing a child under the age of 12 engaged in sexually explicit conduct. Farber is scheduled to be sentenced on December 10.
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Richard Celestino, 48, of Green Valley (on the eastern edge of the Antelope Valley), who pleaded guilty on July 30 to possession of child pornography, admitting that he used a peer-to-peer file-sharing network to distribute and possess child pornography, including images depicting children under the age of 2. Celestino’s sentencing hearing is now scheduled for November 19.
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Edward Anthony Contes, 36, of San Pedro, is scheduled to be tried on January 29 on charges of traveling to Mexico for the purpose of engaging in illicit sexual conduct with minor boys, use of the internet in an attempt to entice a minor to engage in prostitution, and attempted sex trafficking of two boys in the Los Angeles area. Contes was arrested in June after allegedly traveling to Tijuana in May and making contact on the internet with a person he thought was a child sex trafficker, but who in fact was an undercover law enforcement agent. In addition to seeking a boy in Mexico, Contes allegedly made arrangements with the undercover agent to pay to have sex with a 7-year-old and a 9-year-old at a hotel in Long Beach. This investigation is being conducted by HSI’s Long Beach Child Exploitation Investigation Group and the FBI’s Long Beach Resident Agency.
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An elementary school teacher from Burbank, Sean David Sigler, is scheduled to be tried on April 11, 2019, on charges related to the sexual exploitation of a 15-year-old student. Sigler has been in custody since his arrest in May.
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Daniel Patrick Diaz, 34, of Wilmington, was arrested in July pursuant to a six-count indictment that alleges the production, distribution, receipt and possession of child pornography. Diaz is currently scheduled for trial on January 22.
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Charles Patrick Miller, 49, of Lancaster, was sentenced on August 13 to nine years in federal prison for distributing child pornography on a peer-to-peer network. Miller admitted possessing tens of thousands of images and videos depicting child pornography, and his distribution of child pornography continued even after the FBI served a search warrant at his residence. Once he completes his prison sentence, Miller will be on supervised release for the rest of his life.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of producing child pornography carries a mandatory minimum sentence of 15 years in federal prison and a statutory maximum penalty of 30 years in prison.
The charges of distributing and receiving child pornography carry a five-year mandatory minimum sentence and a statutory maximum penalty of 20 years in prison.
Possession of child pornography does not carry a mandatory minimum sentence, but a conviction on this charge can bring a sentence of up to 20 years in federal prison.
The recent arrests are the product of investigations by the Federal Bureau of Investigation, often working in conjunction with the Internet Crimes Against Children Task Force, as well as U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Los Angeles County Sheriff’s Department participated in several of the investigations.
Assistant United States Attorney Devon Myers of the Violent and Organized Crimes Section is the office’s Project Safe Childhood Coordinator. In addition to the cases she is prosecuting, some of the cases being announced today are being handled by Assistant United States Attorneys Jeffrey C. Chemerinsky, Shawn R. Andrews, Wilson Park, Lana Morton Owens, Joey L. Blanch, Damaris Diaz, Joanna M. Curtis, Joseph D. Axelrad, Bruce K. Riordan and Scott M. Lara of the Violent and Organized Crime Section. Assistant United States Attorney Robyn K. Bacon of the Cyber and Intellectual Property Crimes Section, Assistant United States Attorney Kathy Yu of the Organized Crime and Drug Enforcement Task Force Section, and Assistant United States Attorney MiRi Song of the General Crimes Section are also handling cases.
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Federal Grand Jury Returns Indictment Against Former Vermont Correctional Officer and Inmate for Drug-Related CrimesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on October 4, 2018, a federal grand jury returned an indictment charging Grant Vance and Gregory Paradis with drug-related crimes. The indictment alleges that between early 2018 and June 28 of 2018, Vance and Paradis conspired to distribute buprenorphine, and that on June 28, 2018, Vance possessed with intent to distribute buprenorphine.
According to court records, Vance was employed as a Correctional Officer at the Northern State Correctional Facility in Newport, Vermont, where Paradis was an inmate. Informants provided law enforcement with information regarding Vance’s introduction of buprenorphine into the correctional facility and subsequent distribution to Paradis. Court records also show that a federal search warrant for Vance’s person and vehicle was executed on June 28, 2018. A magic marker containing suspected buprenorphine was located as a result of the search.
If convicted, the defendants’ sentences will be advised by the federal sentencing guidelines. The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendants are presumed innocent unless and until they are proved guilty.
United States Attorney Christina E. Nolan commended the efforts of the Federal Bureau of Investigation, the Vermont State Police, and the Vermont Department of Corrections.
The United States is represented by Assistant U.S. Attorney Nate Burris. Vance is represented by Assistant Federal Public Defender David McColgin.
Federal Court Orders Tax Scheme Promoters to Disgorge $50 Million in Gains from Fraudulent Solar Energy Tax SchemeRead the Press Release
A federal court in Salt Lake City, Utah, ordered R. Gregory Shepard and Neldon Johnson and Utah companies RaPower-3 LLC, and International Automated Systems, Inc., to disgorge over $50 million in gross receipts from facilitating and promoting an abusive tax scheme involving false tax deductions and solar energy credits.
The court also barred defendants from promoting and marketing the scheme and ordered them to take steps to ensure that the public is not further harmed by their actions.
“We are gratified by the court’s decision, which mitigates the harm to the United States Treasury caused by defendants’ unlawful tax scheme,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “As the court’s decision recognizes, a business model that is based on false and fraudulent conduct cannot be allowed to retain its income.”
Based upon evidence the government submitted to the court during a 12-day bench trial, the court found that the defendants engaged in a “massive fraud.” The court stated that the defendants “each knew, or had reason to know, that their statements about the tax benefits purportedly related to buying solar lenses were false or fraudulent.”
The court stated that “[b]ecause of the manner in which Defendants promoted the scheme, the court concludes that $50,025,480 in gross receipts from the solar energy scheme came from money that rightfully belonged to the U.S. Treasury.” The court found that the defendants “obstructed discovery about their gross receipts and other topics involving their finances.”
The court stated that the United States showed a “reasonable approximation” of the total gross receipts from lens sales. In addition, the court held that defendants would not be allowed any credit of operating expenses because such credits “are not consistent with principles of equitable disgorgement.”
According to the opinion, defendant Neldon Johnson claimed to have invented purported solar energy technology involving solar thermal lenses placed in arrays on towers. The court found that to “make money from this purported solar energy technology, Johnson decided to sell a component of the purported technology: the solar lenses.”
Under the proper circumstances, the Internal Revenue Code allows a taxpayer engaged in a trade or business certain tax deductions for expenses the taxpayer incurs while generating income. Likewise, if all of the requirements are met, the tax law allows an “energy credit” for certain “energy property.”
However, in this case, the court concluded that the defendants “knew, or had reason to know, that their customers were not in a trade or business of leasing out solar lenses and, therefore, that their customers were not allowed the depreciation deduction or solar energy tax credit.”
The opinion also concluded that the defendants made “gross valuation overstatements” when they sold lenses to customers. The court found that the defendants sold each lens for a total purported price of $3,500. The court stated that the evidence showed that the raw cost of each supposed “lens” was very low and found that “[d]efendants’ technology does not work, and is not likely to work to produce commercially viable electricity or solar process heat. Therefore, each ‘lens’ is just one component of an inoperable system. It is not a piece of sophisticated technology such that premium pricing is appropriate for it.”
The court also barred defendants from promoting and marketing the scheme. The court stated that the defendants sold lenses using a multi-level marketing approach, and encouraged distributors to “bring still more people in to the multi-level marketing system and build an extensive ‘downline.’” The court concluded that, in this case, “[t]he toxic combination of multi-level marketing and misleading information creates an urgent need [for] an injunction.”
The injunction requires, among other things, that the defendants stop making statements that a person who buys a lens is in a trade or business with respect to that lens; may lawfully claim a depreciation deduction or any other business expense deduction related to a solar lens; and may lawfully claim a solar energy credit related to a lens.
Further, the court ordered that the defendants disclose, in their marketing materials for lenses that the court “has determined that the solar energy technology of RaPower-3 in place from 2005 to 2018 is without scientific validation or substance and ineligible for tax credits or depreciation by individual purchasers of lenses.”
Principal Deputy Assistant Attorney General Zuckerman thanked Trial Attorneys Erin Healy Gallagher, Erin R. Hines, and Christopher R. Moran who litigated the case. He also thanked the many IRS attorneys and agents who participated in the investigation.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fayetteville Man Arrested for Receipt of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Alan Longmore, age 66, of Fayetteville, New York, appeared yesterday in federal court on charges that he received child pornography over the internet.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the federal criminal complaint, Longmore, received images of child pornography through a Peer-to-Peer file sharing program. An initial forensic review of his laptop computer revealed that it contained numerous video files depicting child pornography. After being confronted about these charges, Longmore admitted to engaging in this criminal conduct for the past 6 years. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Longmore appeared yesterday before United States Magistrate Judge Andrew T. Baxter, who ordered him detained pending a hearing scheduled for October 10, 2018.
If convicted, Longmore faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000.00 A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. If convicted, Longmore will be required to register as a sex offender.
This case is being investigated by Homeland Security Investigations (HSI) Syracuse with assistance from the New York State Police Computer Crimes Unit and the Town of Manlius Police Department, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Fairfax Man Arrested for $16 Million Securities Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Fairfax man surrendered to the FBI on an outstanding arrest warrant today in connection with being charged with having committed securities fraud.
According to court documents, Todd Elliott Hitt, 53, is alleged to have committed securities fraud in connection with his ownership and operation of Kiddar Capital, a self-described asset management firm based in Falls Church. According to the allegations, Hitt falsely claimed that Kiddar Capital managed $1.4 billion in assets and had offices located in Houston, Palm Springs, and London. The complaint further alleges that Hitt raised more than $16 million from investors by misrepresenting that Hitt would invest $6 million as a general partner as part of a planned $33 million purchase of a Herndon building adjacent to a future stop on the Silver Line of the Washington, D.C., Metro. According to the complaint, Hitt further failed to disclose to investors his extravagant spending, which included the leasing of private jets and the purchase of sports tickets and jewelry, among other things.
Hitt, who will make his initial appearance today at 2 p.m. at the federal courthouse in Alexandria, is charged with securities fraud, and faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the charges were unsealed. Assistant U.S. Attorney Mark D. Lytle is prosecuting the case.
The case is being investigated by the FBI’s Washington Field Office, with significant assistance provided by the U.S. Securities and Exchange Commission.
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. 1:18-cr-480.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.