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13 November 2018
Mississippi Man Sentenced in Federal Court on Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Thomas Lee Ruffin, 57, of Meridian, Mississippi, was sentenced to three years’ imprisonment for his participation in the interstate transportation and sale of stolen firearms. Ruffin pled guilty to felon in possession of a firearm and concealing a stolen firearm in July of 2018.
United States District Court Judge Kristi K. Dubose imposed the 36-month sentence on November 9, 2018. Ruffin will serve 3 years on supervised release following the completion of his imprisonment, and the judge ordered that he would undergo testing and treatment for drug abuse while under supervision. The judge did not impose a fine but ordered the imposition of $200 in special mandatory assessments.
The case was investigated by the Lauderdale County (Mississippi) Sheriff’s Office, The Choctaw County Sheriff’s Office, the Alabama Law Enforcement Agency and the Federal Bureau of Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Mexican National Indicted for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Mexican national was indicted by a federal grand jury today for illegally selling more than a dozen firearms and a large amount of methamphetamine and heroin to an undercover federal agent.
Heladio Lezama-Palma, 33, a citizen of Mexico who was residing in Kansas City, Mo., was charged in an eight-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Lezama-Palma on Nov. 8, 2018, and contains additional charges.
The indictment charges Lezama-Palma with two counts of distributing methamphetamine, one count of distributing heroin, two counts of possessing firearms in furtherance of a drug-trafficking crime, two counts of being an illegal alien in possession of firearms, and one count of illegally reentering the United States after having been deported.
According to an affidavit filed in support of the original criminal complaint, Lezama-Palma sold a confidential informant three firearms on July 2, 2018. After the sale, the affidavit says, Lezama-Palma said he currently possessed 20 kilograms of methamphetamine and offered to sell it for $7,500 per kilogram.
On July 31, 2018, Lezama-Palma met the confidential informant and an undercover law enforcement agent. Lezama-Palma allegedly sold the undercover agent one kilogram of methamphetamine.
Lezama-Palma contacted the undercover agent in October, the affidavit says, and told him he had more firearms for sale. Lezama-Palma met the undercover agent and the confidential informant on Oct. 30, 2018, and allegedly sold the agent five firearms (a HiPoint 9mm semi-automatic pistol, an Intratect 9mm semi-automatic pistol, a HiPoint 9mm semi-automatic rifle, and two Spike’s Tactical AR-15 .223 variant rifles), several magazines and 22.7 grams of heroin. Lezama-Palma met the undercover agent again later the same day, the affidavit says, and gave him a Taurus 9mm handgun, which he said he could pay for later.
The next day, on Oct. 31, 2018, Lezama-Palma contacted the undercover agent and allegedly offered to sell seven more firearms for $4,800. The undercover agent asked Lezama-Palma to add two kilograms of methamphetamine to the sale. Lezama-Palma agreed, the affidavit says, and they arranged to meet a few days later.
On Nov. 7, 2018, the undercover agent met Lezama-Palma at a grocery store parking lot, where he was arrested by Kansas City, Mo., police officers. Officers searched the Cadillac Escalade Lezama-Palma was driving and found a black duffel bag that contained approximately two kilograms of methamphetamine and seven firearms (a Taurus 9mm pistol, a Mellennium .40-caliber pistol, a Glock 9mm pistol, a Glock .40-caliber pistol, a Smith & Wesson 9mm pistol, a Mac 90 Sporter 7.62mm rifle, and a DTI-15 5.56mm rifle).
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Kimberlee L. Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Metairie Man Sentenced for Manufacturing and Selling Explosive Devices and Possessing Anabolic Steroids in Federal CaseRead the Press Release
U.S. Attorney Peter G. Strasser announced on Thursday, November 8, 2018, that BRAD MILLIGAN, age 39, of Metairie, has been sentenced to credit for time served and 2 years supervised release by the Honorable Nannette Jolivette Brown for manufacturing and distributing explosive materials without a license and possessing anabolic steroids with the intent to distribute. MILLIGAN did not possess a license to distribute either the explosives or anabolic steroids.
According to court documents, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating the shipment of explosive precursor chemicals which are used to manufacture explosive devices, such as M-type explosive devices. ATF agents learned that MILLIGAN was purchasing large quantities of the precursor materials, all of which were ordered over the internet and delivered to his Metairie residence. A Crimestoppers tipster anonymously provided information to the Jefferson Parish Sheriff’s Office (JPSO) which stated that MILLIGAN was selling explosive devices and anabolic steroids from his residence. Members of the JPSO and the ATF began a joint investigation into the information provided.
U.S. Attorney Peter G. Strasser praised the work of Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed was in charge of the prosecution.
Merriam Restaurant Owner Sentenced for Faking Proof He Was Paying Minimum WageRead the Press Release
KANSAS CITY, KAN. – A Merriam restaurant owner was sentenced Tuesday to 10 months in federal prison for falsifying records he submitted to prove he was paying his workers minimum page, U.S. Attorney Stephen McAllister said.
Yong Lin, 39, Overland Park, Kan., who owned the China Garden restaurant at 5860 Antioch in Merriam, Kan., pleaded guilty to one count of falsifying records submitted to the U.S. Department of Labor.
In his plea, the defendant admitted that a federal investigation determined he was not complying with the Fair Labor Standards Act because he did not pay employees overtime after 40 hours. After he agreed to pay employees back wages, a subsequent investigation revealed he was feigning compliance by paying his servers with paychecks to bring their hourly pay up to minimum wage. In fact, however, he was requiring the servers to cash their payroll checks and turn the money back over to him.
McAllister commended the U.S. Department of Labor’s Wage and Hour Division, Office of Solicitor General, Office of Inspector General and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Members of Venezuelan Crime Syndicate Sentenced for Multistate ATM "Jackpotting" SchemeRead the Press Release
Christian Zerpa-Ruiz and Ragde Pinto-Coronado Stole From Bank and Credit Union ATMs By Infecting Them With Malicious Software That Forced the ATMs to Dispense Cash
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christian Eduardo Zerpa-Ruiz, 32, and Ragde Hussein Pinto-Coronado, 24, both of Venezuela, were sentenced to federal prison for conspiracy to commit bank larceny. Zerpa-Ruiz was sentenced to 51 months in prison, Pinto-Coronado was sentenced to 15 months in prison, and both were ordered to pay restitution. U.S District Judge Janet T. Neff imposed the sentences.
Zerpa-Ruiz and Pinto-Coronado are members of a Venezuelan crime syndicate who, in a sophisticated hacking scheme known as "jackpotting," robbed bank and credit union automated teller machines by infecting their hard drives with malware that allowed them to take command of the machines and force them to dispense all the cash they contained in a relatively short period of time – somewhat like hitting a jackpot on a casino slot machine. This type of crime was first reported in the United States in January 2018.
Zerpa-Ruiz and Pinto-Coronado successfully jackpotted four ATMs in Indiana, Kentucky, and Wisconsin, and stole approximately $125,000 in cash. They were arrested on March 15, 2018, while attempting to jackpot an ATM in St. Joseph, Michigan containing more than $43,000. Pinto- Coronado is in the United States illegally. Zerpa-Ruiz came to the United States on a tourist visa in late January 2018, and began jackpotting in February 2018.
In imposing the sentences, Judge Neff characterized the crime as a "chillingly sophisticated" use of technology that "strikes at the integrity of the financial system of the entire country." She said she was "astounded" and "troubled" that Zerpa-Ruiz and Pinto-Coronado were able to "come into the country and attack the financial system in this way."
"Criminals continue to exploit new types of technology to attack our nation’s financial institutions," Birge said. "But one thing remains the same: they will be caught, and they will go to prison. We will vigorously prosecute these cases, and continue to work with law enforcement to develop countermeasures to prevent these types of crimes in the future."
"Today’s sentencings demonstrate that attempts to attack our nation’s financial systems through technological exploitation will be met by the full force of federal law enforcement," said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. "The FBI and our law enforcement partners will continue to protect the integrity of our banking institutions against schemes to compromise it, and bring to justice those who perpetrate these crimes."
"This case demonstrates the Secret Service’s commitment to ensure the integrity of our nation’s financial infrastructure by collaborating with our local and federal partners to aggressively pursue those who commit these types of crimes," said Steve McMahon, the Resident Agent in Charge of the Secret Service’s Grand Rapids field office.
The case was investigated by the Federal Bureau of Investigation, United States Secret Service, and the St. Joseph Township Police Department. Assistant U.S. Attorney Clay Stiffler handled the prosecution.
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Massachusetts Man Sentenced for Travelling Interstate to Engage in Sex with a MinorRead the Press Release
PROVIDENCE, RI – A Brockton, MA, man was sentenced today to 90 months in federal prison for traveling from Massachusetts into Rhode Island on multiple occasions to engage in illicit sex with a 15-year-old minor he met on the Internet in an online chat forum.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Andy J. Joseph, 26, to serve 10 years supervised release upon completion of his term of incarceration.
Joseph pleaded guilty on April 24, 2018, to two counts of traveling interstate with the intent to engage in illicit sexual conduct.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 63-78 months. As stipulated in a plea agreement filed in this matter, the government and the defendant recommended the Court impose a sentence of 90 months of incarceration.
Joseph’s sentence is announced by United States Attorney Stephen G. Dambruch, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Pawtucket Police Chief Tina Goncalves.
At the time of his guilty plea, Joseph admitted to the Court that in June 2016, after meeting the victim in an online chat forum, he traveled from Massachusetts to Rhode Island on multiple occasions to engage in sex acts with the minor victim, and that he caused her to become engaged in commercial sex acts in Massachusetts and Rhode Island. Joseph posted advertisements for commercial sexual purposes on the website Backpage.com. These ads, paid for by Joseph, contained pictures of the 15 year-old victim and a cell phone number to call for the sexual services. This activity continued until Joseph’s arrest on December 1, 2016.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by Homeland Security Investigations and Pawtucket Police Department.
Man Sentenced in Manhattan Federal Court to More Than 13 Years in Prison for Illegally Trafficking Assault Rifles and Other Firearms, as Well as NarcoticsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ARIEL ACOSTA, a/k/a “A-Loc,” a/k/a “Blue,” a/k/a “True Blue,” was sentenced today to 160 months in prison for firearms and narcotics trafficking. ACOSTA and his co-conspirators sold seven guns, including an AK-47 assault rifle and a SKS assault rifle, a silencer, ammunition, and a bulletproof vest to undercover officers. ACOSTA pled guilty in Manhattan federal court in April 2018 to one count of conspiring to distribute crack cocaine and one count of unlicensed firearms dealing. United States District Judge Kimba M. Wood imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Ariel Acosta sought to put illegal guns and drugs on the streets of New York City. For his crimes he will serve over 13 years in prison. We will continue to work with our law enforcement partners to investigate and prosecute those who would put the people of our city in danger.”
According to the allegations contained in the Indictment and statements made in related court filings and proceedings:
From at least 2016 to August 2017, ACOSTA and other members of a drug trafficking organization sold narcotics near Hughes Avenue and East Tremont Avenue in the Bronx, New York (the “Hughes Avenue DTO”). ACOSTA personally sold crack cocaine to undercover officers on several occasions. Members of the Hughes Avenue DTO are also members and associates of the “Rolling 30s” neighborhood set of the nationwide Crips street gang.
From about October 2016 to May 2017, ACOSTA and two other men, who were both members of the Hughes Avenue DTO, sold firearms to undercover officers. Over the course of six sales, undercover officers purchased seven firearms, including an AK-47 assault rifle, a SKS assault rifle, a shotgun, and several handguns. One of the firearms ACOSTA sold had a defaced serial number. ACOSTA and his co-conspirators also sold a silencer for a gun, ammunition, and a bulletproof vest to the undercover officers.
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In addition to the prison term, ACOSTA, 24, of the Bronx, New York, was sentenced to four years of supervised release. Of the nine members of the Hughes Avenue Crew charged in this case, eight have pled guilty. Charges against one defendant are currently pending before United States District Judge Victor Marerro.
Mr. Berman praised the work of the New York City Police Department and the U.S. Drug Enforcement Administration in this investigation.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Drew Skinner and Anden Chow are in charge of the prosecution.
Laurel Man Pleads Guilty to Committing Five Armed Robberies of Pharmacies in Howard, Anne Arundel, and Prince George’s CountiesRead the Press Release
Baltimore, Maryland – Arthur Raymond Prince, age 19, of Laurel Maryland, pleaded guilty today to aiding and abetting robbery involving controlled substances, and aiding and abetting the brandishing of a firearm during and in relation to a crime of violence, in connection with the armed robberies of five pharmacies.
The guilty plea 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; Annapolis Police Chief Scott Baker; Anne Arundel County Police Chief Tim Altomare; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Gary Gardner of the Howard County Police Department; and Anne Arundel County State’s Attorney Wes Adams.
According to Prince’s plea agreement, between May 5, and November 29, 2017, Prince participated in five armed robberies of pharmacies. In each robbery, Prince’s co-conspirator pointed a gun at the clerk and Prince and the co-conspirator demanded opioid narcotics such as Oxycodone, OxyContin, Percocet, and Codeine. In most of the robberies, Prince and the co-conspirator also stole money from the cash register and/or robbed the clerk.
Specifically, Prince admitted that he robbed: the Howard Pharmacy in Columbia, Maryland on May 5, 2017; the Lorven Pharmacy in Laurel Maryland on June 19, 2017; the Pasadena Pharmacy in Pasadena, Maryland on August 25, 2017; and the Annapolis Professional Pharmacy in Annapolis, Maryland on November 29, 2017. Prince also attempted to rob the Pace Wellness Pharmacy in Pasadena on August 25, 2017, but was not able to steal narcotics when the clerk didn’t know where the drug were located. Instead, Prince and his co-conspirator stole $180 from the cash register and robbed the clerk of her purse, which contained $50 and credit cards, among other things.
In each robbery, cell site records showed that Prince’s phone was in the immediate area of the pharmacy at the time of the robbery, and his fingerprints were found on a stolen vehicle used as a getaway car after the Pasadena robberies. In addition, law enforcement recovered photos and images of Prince handling weapons; photos of Prince, who is unemployed, holding large amounts of money; and text messages between Prince and his co-conspirator.
Prince was arrested after the robbery on November 29, 2017, in Odenton, Maryland, not far from where law enforcement located the stolen narcotics. After his arrest and while he was detained, Prince attempted to obstruct justice. After learning that his girlfriend was scheduled to testify before a federal grand jury, Prince coached her regarding her testimony, telling her in a recorded jail call, “you don’t know nothing, nobody, OK? Get that through your fxxxing skull. Get that through your melon, OK? Nada.”
Prince faces a maximum of 25 years in prison for aiding and abetting robbery involving controlled substances; and a mandatory minimum of seven years and up to life in prison for aiding and abetting the brandishing of a firearm during and in relation to a crime of violence. Chief U.S. District Judge James K. Bredar has scheduled sentencing for April 9, 2018 at 10 a.m.
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, the Prince George’s County Police Department, the Annapolis Police Department, the Anne Arundel County Police Department, the Montgomery County Police Department, the Howard County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul A. Riley and Brandon K. Moore, who are prosecuting the case.
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Kings County Woman Pleads Guilty to Distributing MethamphetamineRead the Press Release
FRESNO, Calif. —Nancy Lopez Perez, 44, of Lemoore, pleaded guilty today to distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Perez obtained and delivered methamphetamine and two assault rifles during an undercover transaction on the side of the road in rural Fresno County. Three additional firearms were seized from Perez’s residence during a follow-up search. As a convicted felon, Perez was prohibited from possessing firearms.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kings County Narcotic Task Force. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case. The mission of the OCDETF Program is to reduce the supply of illegal drugs in the United States and diminish the violence and other criminal activity associated with the drug trade. To accomplish this mission, OCDETF combines the resources and expertise of its federal law enforcement agency members, including the FBI and ATF.
Perez is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on February 4, 2019. Perez faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
KC Man in Skeleton Mask Indicted for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who wore a skeleton mask while disrupting traffic was indicted by a federal grand jury today for illegally possessing a sawed-off shotgun.
Daniel A. Robertson, 54, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Robertson on Oct. 29, 2018.
The indictment charges Robertson with being a felon in possession of a firearm and with possessing an unregistered firearm.
According to an affidavit filed in support of the original criminal complaint, Kansas City, Mo., police officers responded to a call at 152 Highway and N. Indiana on Oct. 28, 2018. A caller had reported a suspicious man (later identified as Robertson) walking on the entrance ramp of the highway wearing a black skeleton mask over his face. The caller said the man walked toward her car, causing her to nearly hit him.
When officers arrived, they contacted Robertson. Robertson allegedly was carrying a loaded sawed-off 12-gauge shotgun concealed in the front of his jacket. He had additional ammunition in his jacket and pants pockets, the affidavit says.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Robertson has prior felony convictions for burglary, possession of a controlled substance, endangering the welfare of a child, child molestation, failure to appear in court, and failure to register as a sex offender.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Requires Six Broadcast Television Companies to Terminate and Refrain from Unlawful Sharing of Competitively Sensitive InformationRead the Press Release
The Department of Justice announced today that it has reached a settlement with six broadcast television companies — Sinclair Broadcast Group Inc.; Raycom Media Inc.; Tribune Media Company; Meredith Corporation; Griffin Communications; and Dreamcatcher Broadcasting LLC — to resolve a Department lawsuit alleging that the companies engaged in unlawful agreements to share non-public competitively sensitive information with their broadcast television competitors.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to challenge the unlawful exchange of competitively sensitive information among these six broadcast television companies, their sales representatives, and other broadcast television groups. At the same time, the Department filed proposed settlements that, if approved by the court, would resolve the lawsuit’s alleged competitive harm alleged in the complaint.
“The unlawful exchange of competitively sensitive information allowed these television broadcast companies to disrupt the normal competitive process of spot advertising in markets across the United States,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Advertisers rely on competition among owners of broadcast television stations to obtain reasonable advertising rates, but this unlawful sharing of information lessened that competition and thereby harmed the local businesses and the consumers they serve.”
According to the complaint, the six broadcast television companies agreed in many metropolitan areas across the United States to exchange revenue pacing information, and certain defendants also engaged in the exchange of other forms of non-public sales information in certain metropolitan areas. Pacing compares a broadcast station’s revenues booked for a certain time period to the revenues booked in the same point in the previous year. Pacing indicates how each station is performing versus the rest of the market and provides insight into each station’s remaining spot advertising for the period.
By exchanging pacing information, the broadcasters were better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices, which in turn helped inform the stations’ own pricing strategies and negotiations with advertisers. As a result, the information exchanges harmed the competitive price–setting process.
The proposed settlement prohibits the direct or indirect sharing of such competitively sensitive information. The Department has determined that prohibiting this conduct would resolve the antitrust concerns raised as a result of the conduct of these defendants. The proposed settlement further requires defendants to cooperate in the department’s ongoing investigation, and to adopt rigorous antitrust compliance and reporting measures to prevent similar anticompetitive conduct in the future. The settlement has a seven year term, and it will continue to apply to stations currently owned by defendants, even if those stations are acquired by another company.
Sinclair Broadcast Group Inc., a Maryland corporation with headquarters in Hunt Valley, Maryland, owns or operates 130 television stations across 87 markets. In 2017, it reported revenue in excess of $2.7 billion.
Tribune Media Company is a Delaware corporation; its headquarters are in Chicago, Illinois. It owns or operates 41 television stations in 31 markets and had over $670 million in revenue in 2017.
Raycom Media Inc., a Delaware corporation, has its principal place of business in Montgomery, Alabama. It owns or operates 55 television stations in 43 markets and had over $670 million in revenue in 2017.
Meredith Corporation, an Iowa corporation, has its principal place of business in Des Moines, Iowa. It owns or operates 17 television stations in 12 markets and had over $1.7 billion in revenue in 2017.
Griffin Communications is an Oklahoma corporation; its principal place of business is in Oklahoma City, Oklahoma. It owns or operates four television stations in two markets and exceeded $60 million in revenue in 2017.
Dreamcatcher Broadcasting, LLC, a Delaware corporation, has its headquarters in Santa Monica, California. It owns or operates three television stations in two markets and had over $50 million in revenue in 2017.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Jamestown Man Pleads Guilty to Being A Felon in Possession of A GunRead 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 Douglas Wood, 38, of Jamestown, NY, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Seth Molisani, who is handling the case, stated that on March 6, 2018, the Jamestown Police Department was actively engaged in a narcotics investigation operation. Investigators conducted video and audio surveillance of the defendant and learned that Wood was in possession of a silver handgun. Investigators maintained surveillance on the defendant and alerted uniformed patrol officers who approached Wood and spoke with him briefly before he attempted to flee. Following a brief struggle, the defendant was restrained and officers recovered a loaded revolver and 14 additional rounds of ammunition.
Wood was previously convicted: in 2000, in the Nottoway County Circuit Court, Nottoway, Virginia, of Grand Larceny, Unlawful Possession or Use of a Sawed-Off Shotgun, and Burglary; in 2001, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; in 2004, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; and in 2007, in Chautauqua County Court, of Robbery in the Third Degree. As a result, the defendant is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for February 13, 2019, before Judge Arcara.
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Hillsborough Resident Sentenced to Nine Years in Prison for Role in Scheme to Illegally Export Components for Production of Night Vision and Thermal Devices and Money LaunderingRead the Press Release
SAN FRANCISCO – Naum Morgovsky was sentenced to 108 months in prison for his role in a conspiracy to illegally export components for the production of night-vision and thermal devices to Russia in violation of the Arms Export Control Act and related crimes. The announcement was made by United States Attorney Alex G. Tse, Assistant Attorney General for National Security John Demers, and Special Agent in Charge John F. Bennett of the Federal Bureau of Investigation (FBI) San Francisco Field Office. The sentence was handed down this morning by the Honorable Vince Chhabria, United States District Judge.
“Export controls keep us safe and prevent dangerous technologies from falling into the wrong hands,” said U.S. Attorney Tse. “The defendant pleaded guilty to knowingly violating the Arms Export Control Act when he tried to make money by shipping night vision and thermal components to Russia. Today’s nine-year sentence should send a clear message to deter others who are tempted by profits to violate the export laws of this country.”
“The FBI will continue to tirelessly investigate those who violate export controls that protect our country's sensitive technologies from American adversaries,” said Special Agent in Charge Bennett. “I would like to thank the dedicated work and collaborative efforts of our Federal partners in this case.”
Morgovsky, 69, of Hillsborough, Calif., pleaded guilty to the charges on June 12, 2018, which was to be the second day of jury selection for the proceedings at which Morgovsky would be tried on the charges. In pleading guilty, Morgovsky, 69, admitted that from at least April 2012 until August 25, 2016, he conspired with his wife, Irina Morgovsky, 67, to export without the necessary license, numerous night and thermal vision components, including image intensifier tubes and lenses. The couple conspired to export the components to a company called Infratech in Moscow, Russia, and used their U.S. business, Hitek International, to purchase the components. They misrepresented to the sellers that the products would not be exported and then shipped the products to Russia using a variety of front companies and shipment methods. Further, Mr. Morgovsky admitted he conspired with another employee of Infratech to export the components. He also admitted he knew the night and thermal vision components they exported were on the U.S. Munitions List and that they therefore were not permitted to export the items without a license from the Department of State, Directorate of Defense Trade Controls, which he never sought.
Judge Chhabria found that, in addition to exporting the components, Mr. Morgovsky had taken steps to conceal his crimes so that the couple could continue to operate the illegal export business undetected, and that Mr. Morgovsky laundered the proceeds of the export crimes. In addition, Mr. Morgovksy used numerous front companies and the identity of at least one deceased person in furtherance of the scheme. In handing down the sentence, Judge Chhabria stated that Mr. Morgovsky committed a “very serious crime” and that “people who export night vision . . . need to know that there is a penalty.”
On April 27, 2017, a federal grand jury issued a superseding indictment charging the Morgovskys for their respective roles in the illegal export scheme. As to Naum Morgovsky, the grand jury charged him for the illegal export scheme with conspiracy to violate the Armed Export Control Act, in violation of 22 U.S.C. § 2778, and with two counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)(i) and (2)(A). He pleaded guilty to all these export-related charges without a written plea agreement.
In addition to the prison term, Judge Chhabria assessed a fine against Mr. Morgovsky of $1 million and ordered forfeiture of $222,929.61 and three Infratech night vision devices seized in connection with the investigation.
For her part in the scheme, the grand jury charged Irina Morgovsky with conspiracy to violate the Armed Export Control Act and with misuse of a passport, in violation of 18 U.S.C. 1544. She pleaded guilty to the conspiracy charge and on October 31, 2018, Judge Chhabria sentenced her to 18 months in prison for her role in the scheme. The passport charge was dismissed pursuant to the plea agreement.
The Court has ordered Naum and Irina Morgovsky to self-surrender on January 4, 2019, to begin serving their respective sentences.
Assistant U.S. Attorneys Colin Sampson and Erin Cornell of the Northern District of California and Trial Attorney Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section of the Department of Justice prosecuted this case. The prosecution is the result of an investigation by the counterintelligence squad of the FBI’s San Francisco Field Office, with assistance from IRS-Criminal Investigation and the Department of Commerce, Bureau of Industry and Security.
Hawthorne Man Charged in Federal Case Alleging Scheme to Collect Insurance Proceeds by Intentionally Killing His Two Autistic ChildrenRead the Press Release
LOS ANGELES – A Hawthorne man is due in court this afternoon after being arrested last week on federal charges that allege he intentionally drove his domestic partner and two severely autistic children off a pier into the ocean to collect proceeds on accidental death insurance policies he had purchased on their lives.
Ali F. Elmezayen, 44, is scheduled to appear before a United States Magistrate Judge, who will consider a motion by prosecutors to have him held in jail without bond.
Elmezayen was arrested on November 7 by special agents with the FBI after being charged with defrauding insurance companies. Elmezayen made his initial appearance on November 8, when he was ordered held without bond pending this afternoon’s detention hearing.
According to a criminal complaint, Elmezayen purchased several accidental death insurance policies providing more than $6 million in coverage on himself, his domestic partner and his children in 2012 and 2013. Elmezayen allegedly paid nearly $6,000 a year for these policies – even though he was earning less than $30,000 a year – and he called at least two of the insurance companies to confirm they would not investigate claims made two years after the policies were purchased.
On April 9, 2015 – two years and 12 days after he bought the last of his insurance policies – Elmezayen drove a car with his partner and two youngest children off a wharf at the Port of Los Angeles. Elmezayen swam out the open driver’s side window of the car. His partner, who did not know how to swim, survived when a nearby fisherman threw her a flotation device. The two children, ages 8 and 13, were unable to escape the car and drowned.
Elmezayen then collected more than $260,000 in insurance proceeds from American General Life Insurance and Mutual of Omaha Life Insurance on the accidental death insurance policies he had taken out on the children’s lives, according to the complaint. In addition to posing as his domestic partner in communications with the insurance companies without her knowledge, Elmezayen allegedly made several false statements, including stating that the cause of his children’s deaths was accidental and that he had no other insurance policies on his children.
“This case alleges a calculated and cold-hearted scheme to profit off the deaths of two helpless children,” said United States Attorney Nick Hanna. “The alleged conduct shocks the conscience, and we will use every tool available to us to ensure that justice is done.”
“The defendant is accused of orchestrating a scheme to defraud insurance companies by taking the lives of his vulnerable young sons,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The defendant faces serious consequences as we seek justice on their behalf.”
“IRS Criminal Investigation is proud to flex our financial fraud expertise in bringing this alleged killer to justice,” stated R. Damon Rowe of IRS Criminal Investigation’s Los Angeles Field Office. “Would-be fraudsters should be warned that it is very difficult to profit from death and steal from life insurance companies with impunity.”
The criminal complaint specifically charges Elmezayen with mail fraud, wire fraud and aggravated identity theft for posing as his domestic partner in calls to the insurance companies.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
During last week’s court hearing, a preliminary hearing was scheduled for November 23, and Elmezayen was ordered to appear for an arraignment on November 29.
If he were to be convicted of the charges in the complaint, Elmezayen would face a statutory maximum sentence of 20 years in federal prison for each of the fraud counts. The charge of aggravated identity theft carries a mandatory consecutive sentence of two years in prison.
This case is being investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The federal investigators received substantial assistance from the Los Angeles Police Department, the Los Angeles Port Police and the Los Angeles City Attorney’s Office.
The case is being prosecuted by Assistant United States Attorneys Alex Wyman and David Ryan.
Assistant United States Attorney Michael Sew Hoy of the Asset Forfeiture Section obtained a seizure warrant that led to the seizure Thursday of approximately $80,000 from an Elmezayen bank account.
Haverhill Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Haverhill man was sentenced to probation today in federal court in Boston for robbing a branch of Santander Bank in Boston. At the time of his arrest, the defendant was on probation for a prior bank robbery conviction in federal court. The Government sought a sentence of more than 12 ½ years in prison.
Gregory Carter, 61, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to five years of probation and ordered to pay $6,129 in restitution. The Government had recommended a sentence of 151 months in prison. In August 2017, Carter pleaded guilty to one count of unarmed bank robbery. Carter was arrested and charged in May 2017. Since 1974, Carter has been sentenced to prison 10 times.
On March 25, 2017, an individual, later determined to be Carter, dressed in a black hat, ski mask, sunglasses, and wearing blue latex gloves entered a branch of the Santander Bank on Commonwealth Avenue in Boston. Once inside the bank, Carter passed a note to a teller indicating that he had a gun and demanded the bank’s money. The teller handed Carter $6,127, and Carter fled the bank.
Law enforcement collected the bank’s various surveillance camera footage and determined that Carter was the individual involved in the robbery. Carter, who, at the time of the robbery was on federal supervised release stemming from a 2003 bank robbery conviction, for which he received a 151 month federal prison sentence, has multiple prior criminal convictions and has been sentenced to prison 10 times since 1974.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Somerville Police Chief David Fallon; Haverhill Police Chief Alan DeNaro; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Harrison County man sentenced for selling methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremiah R. Dodrill, of Spelter, West Virginia, was sentenced today to 36 months incarceration for methamphetamine distribution, United States Attorney Bill Powell announced.
Dodrill, age 37, pled guilty to one count of “Distribution of Methamphetamine” in July 2018. Dodrill admitted to selling methamphetamine in February of 2017 in Harrison County.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harrison County man sentenced for his role in a heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Hunter Queen, of Nutter Fort, West Virginia, was sentenced to 21 months incarceration for his role in a heroin distribution operation, United States Attorney Bill Powell announced.
Queen, age 22, pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Aiding and Abetting the Distribution of Heroin in Proximity to a Protected Location” in July 2018. Queen admitted to distributing heroin from January to May 2016 in various locations in Harrison County, including near Simpson Elementary School.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Guilford Man Pleads Guilty to Failing to Report to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN PAGE, 44, of Guilford, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of failure to surrender for service of his federal sentence.
According to court documents and statements made in court, on October 17, 2017, Judge Thompson sentenced Page to 97 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions. Judge Thompson ordered Page, who was released on a $200,000 bond, to surrender for service of his sentence on November 17, 2017.
Page was subsequently designated by the Bureau of Prisons to the Federal Correctional Institute at Fort Dix, New Jersey.
Page did not surrender to FCI Fort Dix on November 17, 2017. The U.S. Marshals Service located and arrested Page at a hotel in Branford on December 7, 2017.
The charge of failure to surrender for service of a federal sentence carries a maximum term of imprisonment of 10 years, which must be imposed consecutively to the underlying sentence. Judge Thompson scheduled sentencing for February 5, 2019.
Page has been detained since his arrest.
This case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Anthony E. Kaplan.
Guatemalan National Sentenced for Illegal Reentry after DeportationRead the Press Release
BOSTON - A Guatemalan national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Julio Cantoral Monterroso, 39, a Guatemalan national previously residing in Great Falls, R.I., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to seven months in prison. Monterroso will be subject to deportation upon completion of his sentence. In August 2018, Monterroso pleaded guilty today to one count of illegal reentry of a deported alien.
On May 17, 2018, law enforcement officers in Dedham encountered Monterroso and determined him to be illegally present in the United States. Monterroso was previously deported on Aug. 21, 2002, and again on May 12, 2011.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Guatemalan Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Mario Alfredo Morales Espinoza, age 25, and a citizen of Guatemala, was sentenced today to time served (63 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Morales Espinoza admitted that he was removed from the United States to Guatemala on January 20, 2014. On September 11, 2018, he was arrested by an ICE Officer in Walton, Delaware County, New York.
Following his sentencing, Morales Espinoza was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Georgia Man Indicted for Meth, Cocaine Following Highway StopRead the Press Release
KANSAS CITY, Mo. – A Dalton, Ga., man was indicted by a federal grand jury today after a large amount of methamphetamine was found in his vehicle when he was stopped for speeding on Interstate 70 in Lafayette County, Mo.
Ricardo Turrubiartes Amaro, 21, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Turrubiartes Amaro on Oct. 23, 2018.
The indictment charges Turrubiartes Amaro with one count of possessing methamphetamine with the intent to distribute, and one count of possessing cocaine.
According to an affidavit filed in support of the original criminal complaint, a Missouri State Highway Patrol trooper stopped Turrubiartes Amaro, who was driving a rented Hyundai Accent, for speeding on Interstate 70 in Lafayette County, on Oct. 22, 2018. Upon searching the vehicle, the trooper found a dollar bill in the center console that was folded and contained cocaine, the affidavit says, and another folded dollar bill that contained cocaine inside Turrubiartes Amaro’s wallet. Turrubiartes Amaro was arrested and the trooper continued to search the vehicle.
As the trooper searched the trunk of the vehicle, he found a bag that contained four gallon-size zip lock freezer bags with a total of four kilograms of methamphetamine.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration and the Missouri State Highway Patrol.
Fruitland Park Man Pleads Guilty to Sending Interstate ThreatsRead the Press Release
Ocala, Florida – Richard Mel Phillips (36, Fruitland Park) has pleaded guilty to one count of transmitting threatening communications in interstate commerce. Phillips faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, Phillips sent a series of threatening phone calls and voicemails to members of the U.S. Congress. In the most recent of these voicemails, Phillips threatened to travel to a member of Congress’s home district to kill the Congressperson, and threatened to “slaughter” any law enforcement agents that were sent to Phillips’ home. In a subsequent interview with the FBI, Phillips admitted to making the threatening voicemail.
This case was investigated by the FBI (Ocala Resident Agency). It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Former labor union official from Portage County indicted for embezzling nearly $200,000 from the unionRead the Press Release
A former labor union official from Portage County was indicted for embezzling nearly $200,000 from the union.
Terry Doan, 60, of Deerfield, was indicted on one count of embezzlement from an employee benefit plan.
Doan was one of six trustees of the Joint Apprenticeship Training Committee of the Heat and Frost Insulators and Allied Workers, Local 84, headquartered in Kent. The group oversaw the training fund and Doan served as financial secretary/treasurer.
Checks over a certain amount required the signature of two trustees, but Doan had that requirement removed in 2012, according to the indictment.
Doan embezzled $195,147 from the union training fund between 2012 and 2017, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Mark Bennett following an investigation by the U.S. Department of Labor.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former U.S. Navy Captain Pleads Guilty and Former Master Chief Petty Officer Sentenced in Sweeping U.S. Navy Corruption and Fraud ProbeRead the Press Release
A retired U.S. Navy captain pleaded guilty to criminal conflict of interest charges and a former U.S. Navy master chief was sentenced to 17 months in prison today on corruption charges. The defendants are among the latest U.S. Navy officials to plead guilty and be sentenced in the expansive corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Adam L. Braverman of the Southern District of California, Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) and Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Jeffrey Breslau, 52, of Cumming, Georgia, pleaded guilty to one count of criminal conflict of interest before U.S. District Judge Janis Sammartino of the Southern District of California. Breslau was charged in September 2018. Retired Master Chief Ricarte Icmat David, 62, of Concepcion, Tarlac, Philippines, was sentenced by Judge Sammartino, who also ordered him to serve a year of supervised release and pay restitution of $30,000. David was charged in August 2018 and pleaded guilty in September to one count of conspiracy to commit honest services wire fraud.
According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a captain in the U.S. Navy assigned as director of public affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii. As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands. From August 2012 until July 2014, Breslau was assigned to the commanding officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams.
Breslau admitted that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy. These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel. During the course of his consulting agreement with Francis, Breslau authored, reviewed or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel. During the course of this consulting agreement, Francis paid Breslau approximately $65,000 without Breslau disclosing the agreement to the U.S. Navy, Breslau admitted.
As part of his guilty plea, David admitted that he was assigned various logistics positions with the U.S. Navy’s Seventh Fleet, including with the Fleet Industrial Supply Center in Yokosuka, Japan from June 2001 to July 2004; on the USS Essex from July 2004 to August 2007; on the USS Kitty Hawk from September 2007 to August 2008; and on the USS George Washington from September 2008 to July 2010. In these positions, David was responsible for ordering and verifying goods and services for the ships on which he served, including from contractors during port calls. Throughout this period, David received from Francis various things of value, including five star hotel rooms during every port visit, he admitted.
David further admitted that he repeatedly facilitated fraud on the United States by allowing Francis and GDMA to inflate the husbanding invoices to bill for services never rendered. For example, David instructed Francis to inflate invoices for the USS Essex’s anticipated November 2007 port visit to the Philippines. As David transitioned to a new position aboard the nuclear aircraft carrier USS Kitty Hawk, on or about May 8, 2008, Francis’s company paid approximately 84,637.00 Hong Kong Dollars (HKD) for hotel reservations at the Grand Hyatt Hong Kong for U.S. Navy personnel assigned to the USS Kitty Hawk including 10,396 HKD for David’s four-night stay in a Harbor View Room, David admitted.
Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef and Spanish suckling pigs.
So far, 33 defendants have been charged and 22 have pleaded guilty, many admitting to accepting things of value from Francis in exchange for helping the contractor win and maintain contracts and overbill the Navy by millions of dollars.
The case was investigated by DCIS, NCIS and the Defense Contract Audit Agency. The case is being prosecuted by Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher, Patrick Hovakimian and Robert Huie of the Southern District of California.
Former U.S. Navy Captain Pleads Guilty and Former Master Chief Petty Officer Sentenced in Sweeping U.S. Navy Corruption and Fraud ProbeRead the Press Release
NEWS RELEASE SUMMARY – November 13, 2018
SAN DIEGO – Former U.S. Navy Captain Jeffrey Breslau pleaded guilty to criminal conflict of interest charges and former U.S. Navy Master Chief Ricarte Icmat David was sentenced on corruption charges to 17 months in prison, followed by one year of supervised release and $30,000 in restitution. Both appeared before Judge Janis Sammartino of the U.S. District Court for the Southern District of California. Breslau and David are among the latest U.S. Navy officials to plead guilty and be sentenced in the expansive corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).
Breslau, 52, of Cumming, Georgia was charged in September 2018 and pleaded guilty today to one count of criminal conflict of interest, admitting that while he was still employed by the U.S. Navy, he was paid over $60,000 by Francis in return for providing Francis with public relations consulting services. Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef, and Spanish suckling pigs.
According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a Captain in the U.S. Navy assigned as Director of Public Affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii. As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands. From August 2012 until July 2014, Breslau was assigned to the Commanding Officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams.
Breslau admitted that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Leonard Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy. These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel. During the course of his consulting agreement with Francis, Breslau authored, reviewed, or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel. During the course of this consulting agreement, Francis paid Breslau approximately $65,000 without Breslau disclosing the agreement to the U.S. Navy.
Former Master Chief Ricarte David was charged in August 2018, pleaded guilty in September, and was sentenced today on corruption conspiracy charges. As a Master Chief, David was the senior-most enlisted sailor in the U.S. Navy, and as such, he was trusted and respected by officers and enlisted sailors alike.
During this period of the illegal conduct, Master Chief David was assigned various logistics positions with the U.S. Navy’s Seventh Fleet, including with the Fleet Industrial Supply Center in Yokosuka, Japan from June 2001 to July 2004; on the USS Essex, from July 2004 to August 2007; on the USS Kitty Hawk from September 2007 to August 2008; and on the USS George Washington from September 2008 to July 2010. In these positions, David was responsible for ordering and verifying goods and services for the ships on which he served, including from contractors during port calls. Throughout this period, David received from Francis various things of value, including five star hotel rooms during every port visit.
To fuel his half of the corrupt bargain, David repeatedly facilitated fraud on the United States by allowing Francis and GDMA to inflate the husbanding invoices to bill for services never rendered. For example, David instructed Francis to inflate invoices for the USS Essex’s anticipated November 2007 port visit to the Philippines. “Boss, Just in case I’m not on the port visit you can go ahead do your thing[,] put some dollar on the CHT/Water/Trash or Force protection[.] [Y]ou and me are the only one will know[,] just put them on my savings if we can do that . . . more power.” David signed this email “V/r, Bad Boy.” On May 9, 2007, David emailed Francis again reiterating his instruction to inflate the invoices for Francis’s company: “Just in case I’m not on that port visit you can go ahead do your thing put some dollar on the CHT/Water/Trash or Force protection[.] [J]ust you and me are the only one will know[.] [J]ust put them on my savings if we can do that . . . just getting ready for my retirement home in P.I. [M]ore power to you.” In case anything was left in doubt that David was keeping his end of the corrupt bargain, on July 11, 2007, David sent a third email instructing Francis to inflate the invoices during the USS Essex port visit to the Philippines: “Good day to you, just to let you know [I]’m heading to the mighty [USS Kitty Hawk] and the Essex will be there in Subic sometimes in November[.] [T]he one who replace me here in stock control dont have any clue so i’am giving you the permission to do whatever you want to do with the bills…throw extra dollar on the CHT/Water etc… [T]hey w[]ere all [a]utomatic take ups which the ship don’t pay for it… [J]ust don’t forget me please[.] [M]y house in P.I. is not finish yet, ok??
Their corrupt bargain continued as David transitioned to his new position aboard the nuclear aircraft carrier USS Kitty Hawk. On or about May 8, 2008, Francis’s company paid approximately 84,637.00 HKD for hotel reservations at the Grand Hyatt Hong Kong for U.S. Navy personnel assigned to the USS Kitty Hawk including 10,396 HKD for David’s four-night stay in a Harbor View Room.
“Breslau and David selfishly traded on their revered positions of trust in exchange for cash payments and entertainment expenses,” said U.S. Attorney Adam Braverman. “We will vigorously prosecute any public official who puts his own selfish personal interests ahead of the interests of the Navy and our nation.”
“The guilty plea today of U.S. Navy Captain (retired) Jeffrey Breslau and sentencing of U.S. Navy Master Chief Petty Officer (retired) Ricarte David is yet another sad chapter in what is the largest fraud and corruption scandal in the history of the U.S. Navy,” said Dermot F. O’Reilly, Director, Defense Criminal Investigative Service. While the conduct of the vast majority of those in the U.S. Navy is beyond reproach, we will vigorously pursue those individuals who put their own greed above their sworn duty to serve and protect this great nation. The Defense Criminal Investigative Service and our law enforcement partners will continue to investigate any individual, regardless of position, involved in this massive corruption scandal.
"The sentencing of retired Master Chief Petty Officer David and plea by retired Captain Breslau shows service members who defraud the government will be held accountable for their actions," said Naval Criminal Investigative Service Director Andrew Traver. "These service members' actions should serve as a deterrent to anyone trying to defraud the government for personal gain. NCIS will pursue investigations on all cases involving economic crime committed against the Department of the Navy."
So far, 33 defendants have been charged and 22 have pleaded guilty.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Patrick Hovakimian, and Robert Huie of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 18-CR-4208-JLS
Captain (retired) Jeffrey Breslau Age: 52 Cumming, Georgia
SUMMARY OF CHARGES
Conflict of Interest, in violation of 18 U.S.C. § 208(a), 216
Maximum Penalty: 5 years in prison, a $250,000 fine
DEFENDANT Case Number: 18-CR-3655-JLS
Master Chief (retired) Ricarte Icmat David Age: 62 Concepcion, Tarlac, Philippines
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Former Shakopee Superintendent Charged with Corruptly Soliciting A BribeRead the Press Release
United States Attorney Erica H. MacDonald today announced the filing of a felony information charging RODNEY KEITH THOMPSON, 53, with corruptly soliciting a bribe. [1] THOMPSON will make his initial appearance in U.S. District Court at a later date.
As alleged in the felony information, THOMPSON used his position and authority as then Superintendent of the Shakopee School District, to obtain personal benefits from a company interested in being awarded contracts with the Shakopee School District. Namely, THOMPSON solicited home improvement projects, personal travel, and attendance at sporting events in exchange for contracts with the School District.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
RODNEY KEITH THOMPSON, 53
Shakopee, Minn.
Charges:
- Corrupt Solicitation of a Bribe, 1 count
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[1] The charges contained in the information are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Former Columbia, Kentucky Woman Sentenced to 10 Years for Arson Resulting in the Death of A FirefighterRead the Press Release
BOWLING GREEN, Ky. – A former Columbia, Kentucky, woman was sentenced today by United States District Judge Greg Stivers to 121 months of imprisonment on charges of arson and insurance fraud. The arson, which completely destroyed the defendant’s rental home and was set by her then boyfriend in order to collect on a $50,000 rental insurance policy, killed a Columbia/Adair County Volunteer Firefighter who was fighting the fire.
Steve Allen “Boo” Pritchard, 44, of Columbia, Kentucky, was sentenced to 30 years imprisonment on October 31, 2018. Brandi Pritchard, Steve Pritchard’s co-defendant and then girlfriend, purchased a $50,000 renter’s insurance policy on June 24, 2011; shortly thereafter Pritchard hatched a plan with his girlfriend, co-defendant Brandi Pritchard, to set fire to their Columbia rental home during the early morning hours of June 30, 2011. The Adair County Fire Department arrived on scene at approximately 3:12am. While fighting the fire, Volunteer Fireman Charles Sparks suffered cardiac arrest on the second floor of the home. He was rushed to the hospital but never regained consciousness and died eight days later on July 8, 2011, at the age of 49. In addition to serving as a firefighter, Sparks was also a longtime Kentucky State Fire Marshall. Mr. Sparks was survived by both of his parents, his wife, and his son.
At trial, “Boo” Pritchard provided an alibi that he was in Louisville delivering glass for his employer during the fire. However, his alibi was disproved by cell phone location data obtained by the FBI. Several witnesses also testified that Pritchard had bragged about starting the fires to collect on the insurance policy. It was also established at trial that Pritchard had been involved in setting four previous fires to collect insurance proceeds, one of which was Pritchard setting fire to his own car.
Brandi Pritchard pleaded guilty to both charges in a plea agreement on May 2, 2017.
This case was prosecuted by Assistant United States Attorneys David Weiser and Nute Bonner and was investigated by the Federal Bureau of Investigation and the Kentucky State Police.
Former Charity CEO Pleads Guilty to Multi-Million-Dollar Political Corruption SchemeRead the Press Release
SPRINGFIELD, Mo. – The former CEO of a charity headquartered in Springfield, Missouri has pleaded guilty to her role in a multi-million-dollar political corruption scheme that involved bribes and campaign contributions for elected public officials in Missouri and Arkansas, announced U.S. Attorney Tim Garrison of the Western District of Missouri and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Marilyn Luann Nolan, 68, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Nov. 9, to one count of conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
By pleading guilty, Nolan admitted that she conspired with others from 2008 to June 30, 2017, to misapply millions of dollars of the charity’s funds for substantial, undisclosed payments to lobbying firms and political advocates, monetary and in-kind contributions to the campaigns of candidates for public office, and to bribe public officials. Nolan also admitted that she knew her co-conspirators defrauded the charity in order to enrich themselves, and her.
Nolan began working at Alternative Opportunities Inc., in 1992. In 2015, that company merged with Preferred Family Healthcare Inc., after which it continued to be known as Preferred Family Healthcare. Nolan was the chief executive officer and oversaw the charity’s lobbying and governmental affairs activities.
Preferred Family Healthcare and its subsidiaries provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities and medical services.
Political Advocacy, Campaign Contributions, Fund-Raising Events
According to the plea agreement, Nolan and her conspirators caused the charity to misapply its funds to pay for political advocacy, including lobbying, that violated both IRS rules governing tax-exempt organizations, and federal laws and regulations governing recipients of federal grants and contracts. Nolan admitted that she directed and assisted her co-conspirators to direct millions of dollars to lobbyists, including Donald Andrew Jones and Milton Russell Cranford, who previously entered pleas of guilty to federal crimes in related cases. Nolan also directly lobbied legislators.
Under her plea agreement, Nolan also admitted that she and her conspirators:
• Caused the charity to contribute financially to the campaigns of candidates for public office through “straw donors,” including the charity’s lobbyists, who were also reimbursed by way of invoices that were falsely described as “training” and “consulting” expenses;
• Encouraged charity employees to contribute to candidates for public office and caused the charity to reimburse them for those contributions by providing funds falsely described as reimbursement for travel or other expenses the employees had not actually incurred; and
• Caused the charity to provide in-kind contributions to the campaigns of candidates for public office, including in Missouri where they organized fundraisers for several candidates running for seats in the Missouri State Senate, Missouri House of Representatives, and the Greene County Commission and in Arkansas, Nolan and her conspirators organized fundraisers (often at hotels or restaurants) for many candidates running for seats in the Arkansas State Senate and Arkansas House of Representatives.
Nolan also admitted as part of her plea to directing an employee to use the charity’s resources to arrange for catering, liquor, decorations, and other food connected to political fundraisers. This employee used a charity-issued corporate credit card for the purchases, with Nolan’s knowledge.
At all times relevant to Nolan’s plea, the charity was absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of, or in opposition to, any candidate for elective public office. Contributions to political campaign funds violated this prohibition, and could have resulted in denial or revocation of tax-exempt status and the imposition of certain excise taxes.
Bribery of Elected Public Officials
According to the plea agreement, Nolan and her conspirators misapplied some of the charity’s funds to bribe elected public officials in the following manners:
• They gave things of value to numerous public officials, in exchange for their official actions benefitting the charity and themselves personally, including cash, travel and entertainment, premium tickets to sporting events, hotel accommodations, and use of the charity’s luxury/recreational real estate;
• They hired public officials and the family members of public officials as charity employees; and
• Nolan and the conspirators disguised bribes as contract payments for things such as consulting, training, and legal services.
The government believes the schemes Nolan pleaded guilty to totaled approximately $6 million. The parties reserved the right in the plea agreement to litigate the exact amount of that loss, for the purpose of computing the federal sentencing guidelines.
Charity Embezzlement
As part of her plea agreement, Nolan also admitted that over an approximately 12-year period from 2005 to 2017, certain charity executives embezzled millions of dollars from the charity, from which Nolan profited. Nolan admitted that although she did not know the full details of the many embezzlement and misapplication of funds schemes, she knew at the time that the charity bore additional costs from many of those transactions, and willfully blinded herself regarding the details of her conspirators’ schemes and artifices to defraud the charity.
One example referenced in Nolan’s plea agreement consisted of the formation of an LLC that was used as the management company for Alternative Opportunities, identified in court documents as Entity A. In 2006, Entity A was sold to a publicly-traded corporation identified in court documents as Company A, which was also partly owned by Nolan. Nolan admitted that this sale was perpetrated for the primary purpose of enriching charity executives, including herself. Nolan’s share of the proceeds from the sale of Entity A to Company A was $3,769,536.
Nolan further admitted as part of her plea that she also received $361,574 from two LLCs identified as Entity B and Entity C where, immediately prior to the 2006 sale of Entity A to Company A, Entity B acquired title to all real estate formerly held by Entity A and Entity C held the title to the corporation’s headquarters building in Springfield, and duplex homes located in Springfield.
Under the terms of Friday’s plea agreement, Nolan must pay $4,131,111 in restitution to the government, less a credit for taxes she paid on the funds received.
Under federal statutes, Nolan is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich, and Trial Attorney Marco A. Palmieri with the Public Integrity Section of the Department of Justice. It was investigated by IRS-Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, Veterans Affairs, and the Federal Deposit Insurance Corporation (FDIC). This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, and the Public Integrity Section of the Department of Justice.
Former Charity CEO Pleads Guilty to Multi-Million-Dollar Political Corruption SchemeRead the Press Release
The former CEO of a charity headquartered in Springfield, Missouri has pleaded guilty to her role in a multi-million-dollar political corruption scheme that involved bribes and campaign contributions for elected public officials in Missouri and Arkansas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Tim Garrison of the Western District of Missouri.
Marilyn Luann Nolan, 68, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Nov. 9, to one count of conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
By pleading guilty, Nolan admitted that she conspired with others from 2008 to June 30, 2017, to misapply millions of dollars of the charity’s funds for substantial, undisclosed payments to lobbying firms and political advocates, monetary and in-kind contributions to the campaigns of candidates for public office, and to bribe public officials. Nolan also admitted that she knew her co-conspirators defrauded the charity in order to enrich themselves, and her.
Nolan began working at Alternative Opportunities Inc., in 1992. In 2015, that company merged with Preferred Family Healthcare Inc., after which it continued to be known as Preferred Family Healthcare. Nolan was the chief executive officer and oversaw the charity’s lobbying and governmental affairs activities.
Preferred Family Healthcare and its subsidiaries provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities and medical services.
Political Advocacy, Campaign Contributions, Fund-Raising Events
According to the plea agreement, Nolan and her conspirators caused the charity to misapply its funds to pay for political advocacy, including lobbying, that violated both IRS rules governing tax-exempt organizations, and federal laws and regulations governing recipients of federal grants and contracts. Nolan admitted that she directed and assisted her co-conspirators to direct millions of dollars to lobbyists, including Donald Andrew Jones and Milton Russell Cranford, who previously entered pleas of guilty to federal crimes in related cases. Nolan also directly lobbied legislators.
Under her plea agreement, Nolan also admitted that she and her conspirators:
- Caused the charity to contribute financially to the campaigns of candidates for public office through “straw donors,” including the charity’s lobbyists, who were also reimbursed by way of invoices that were falsely described as “training” and “consulting” expenses;
- Encouraged charity employees to contribute to candidates for public office and caused the charity to reimburse them for those contributions by providing funds falsely described as reimbursement for travel or other expenses the employees had not actually incurred; and
- Caused the charity to provide in-kind contributions to the campaigns of candidates for public office, including in Missouri where they organized fundraisers for several candidates running for seats in the Missouri State Senate, Missouri House of Representatives, and the Greene County Commission and in Arkansas, where Nolan and her conspirators organized fundraisers (often at hotels or restaurants) for many candidates running for seats in the Arkansas State Senate and Arkansas House of Representatives.
Nolan also admitted as part of her plea to directing an employee to use the charity’s resources to arrange for catering, liquor, decorations, and other food connected to political fundraisers. This employee used a charity-issued corporate credit card for the purchases, with Nolan’s knowledge.
At all times relevant to Nolan’s plea, the charity was absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of, or in opposition to, any candidate for elective public office. Contributions to political campaign funds violated this prohibition, and could have resulted in denial or revocation of tax-exempt status and the imposition of certain excise taxes.
Bribery of Elected Public Officials
According to the plea agreement, Nolan and her conspirators misapplied some of the charity’s funds to bribe elected public officials in the following manners:
- They gave things of value to numerous public officials, in exchange for their official actions benefitting the charity and themselves personally, including cash, travel and entertainment, premium tickets to sporting events, hotel accommodations, and use of the charity’s luxury/recreational real estate;
- They hired public officials and the family members of public officials as charity employees; and
- Nolan and the conspirators disguised bribes as contract payments for things such as consulting, training, and legal services.
The government believes the schemes Nolan pleaded guilty to totaled approximately $6 million. The parties reserved the right in the plea agreement to litigate the exact amount of that loss, for the purpose of computing the federal sentencing guidelines.
Charity Embezzlement
As part of her plea agreement, Nolan also admitted that over an approximately 12-year period from 2005 to 2017, certain charity executives embezzled millions of dollars from the charity, from which Nolan profited. Nolan admitted that although she did not know the full details of the many embezzlement and misapplication of funds schemes, she knew at the time that the charity bore additional costs from many of those transactions, and willfully blinded herself regarding the details of her conspirators’ schemes and artifices to defraud the charity.
One example referenced in Nolan’s plea agreement consisted of the formation of an LLC that was used as the management company for Alternative Opportunities, identified in court documents as Entity A. In 2006, Entity A was sold to a publicly-traded corporation identified in court documents as Company A, which was also partly owned by Nolan. Nolan admitted that this sale was perpetrated for the primary purpose of enriching charity executives, including herself. Nolan’s share of the proceeds from the sale of Entity A to Company A was $3,769,536.
Nolan further admitted as part of her plea that she also received $361,574 from two LLCs identified as Entity B and Entity C where, immediately prior to the 2006 sale of Entity A to Company A, Entity B acquired title to all real estate formerly held by Entity A and Entity C held the title to the corporation’s headquarters building in Springfield, and duplex homes located in Springfield.
Under the terms of Friday’s plea agreement, Nolan must pay $4,131,111 in restitution to the government, less a credit for taxes she paid on the funds received.
A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by IRS Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, Veterans Affairs, and the Federal Deposit Insurance Corporation (FDIC). This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas and the Public Integrity Section of the Department of Justice. This case is being prosecuted by Trial Attorney Marco A. Palmieri of the Public Integrity Section and Assistant U.S. Attorney Steven M. Mohlhenrichof the Western District of Missouri.
Former Biopharma Statistical Programmer Sentenced for Insider TradingRead the Press Release
BOSTON – An employee of a Cambridge-based biopharmaceutical company was sentenced today in federal court in Boston for engaging in an insider trading scheme.
Songjiang Wang, 54, of Westford, the Director of Statistical Programming at a Cambridge-based biopharmaceutical company, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison and one year of supervised release. Judge Talwani also ordered Wang to pay a $50,000 fine and scheduled a forfeiture and restitution hearing in the matter for Nov. 30, 2018. In July 2018, a federal jury convicted Wang of one count of conspiracy to commit securities fraud and two count of securities fraud. Co-defendant Schultz “Jason” Chan, 54, of Newton, the Director of Biostatistics at a different biopharmaceutical company, was convicted of one count of conspiracy to commit securities fraud and three counts of securities fraud. On Nov. 5, 2018, he was sentenced to three years in prison and one year of supervised release.
From August 2013 to September 2015, Wang and Chan, who were friends, conspired to commit securities fraud by trading insider information regarding successful clinical drug trials at their respective companies. Specifically, Wang traded on inside information Chan provided regarding a clinical study conducted by Chan’s employer. In addition, over a period of several months, Wang tipped Chan of clinical trial results for a drug being developed by his employer. Furthermore, Wang gave Chan cash, which Chan used to purchase stock shares of Wang’s employer. Chan subsequently sold those shares and paid back Wang.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Assistant United States Attorney Kriss Basil, also of the Securities and Financial Fraud Unit, prosecuted the case.
Flatwoods Woman Sentenced to 24 months for Conspiracy to Distribute FentanylRead the Press Release
ASHLAND, Ky. — Haley Nicole Young, 25, of Flatwoods, Kentucky, was sentenced today, to 24 months federal in prison, by United States District Judge David L. Bunning, for conspiracy to distribute fentanyl.
In April 2017, Young was arrested in Ashland, and was found in possession of 209 grams of fentanyl. Young admitted to the transportation of the fentanyl from Detroit, Michigan. The recovered fentanyl was to be distributed in Kentucky and West Virginia. Fentanyl is an extremely powerful opioid, which can be lethal in the two-milligram range.
Under federal law, Young must serve 85 percent of her prison sentence; and upon her release, she will be under the supervision of the United States Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI; Richard Sanders, Commissioner of the Kentucky State Police; Todd Kelley, Chief of the Ashland Police; and Hank Dail, Chief of the Huntington Police, jointly announced the sentence.
The investigation was conducted by the FBI, Kentucky State Police, the Ashland Police Department, and the Huntington Police Department. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
Federal Grand Jury Returns Indictment Charging Monroe ManRead the Press Release
MACON— A federal grand jury returned an indictment on Tuesday, November 13, 2018 charging George Randolph Jeffery, age 58, of Monroe, Georgia. An indictment is only an allegation of criminal conduct. All defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Indictment
George Randolph Jeffery, age 58, of Monroe, Georgia, is charged with the following:
1) Attempted Online Enticement of a Minor
2) Possession of Child Pornography
If convicted on Count 1, Mr. Jeffery faces a mandatory minimum of 10 years up to a maximum of life in prison, a $250,000 fine and a maximum of life supervised release. If convicted on Count 2, Mr. Jeffery faces a maximum 20 year prison sentence, a $250,000 fine and a maximum of life supervised release.
The case was investigated by the Georgia Bureau of Investigation and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Lyndie Freeman and Assistant U.S. Attorney Danial E. Bennett.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362 (cell).
Elk County Man Facing Charges Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Ridgway, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The three-count indictment named Jesse Porter, 41, as the sole defendant.
According to the indictment presented to the court, Porter took sexually explicit photos of a minor victim who was under the age of five. He also distributed and received computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 70 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eight Individuals Charged in Related Schemes to Fraudulently Obtain Unemployment BenefitsRead the Press Release
CHICAGO — Eight defendants schemed to obtain unemployment benefits in the names of hundreds of individuals whose personally identifiable information was used without their knowledge, according to federal indictments unsealed in Chicago.
The indictments describe two related fraud schemes carried out over parts of three years. In one of the schemes, an employee of a health care provider in suburban Oak Lawn allegedly accessed the names, dates of birth and Social Security numbers of patients without their knowledge and provided the information to co-schemers. The patients’ information was then used to file fraudulent claims for unemployment insurance benefits through the Illinois Department of Employment Security, the charges allege.
The two indictments were unsealed last week in U.S. District Court in Chicago.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Substantial assistance was provided by IDES, the Chicago Police Department, and the Matteson Police Department. The government is represented by Assistant U.S. Attorneys Matthew L. Kutcher and Nathalina Hudson.
U.S.A. v. Pitts, et al (18 CR 743)
This indictment charges six defendants with participating in a scheme to file or cause to be filed at least 450 fraudulent unemployment insurance claims in the names of other individuals, including the patients from the Oak Lawn health care provider. The health care provider’s employee, ASHLEY WEATHERSBY, 33, of Blue Island, provided the patients’ information to BRANDON PITTS, 29, of University Park, and COREY LOGSDON, 31, of Los Angeles, Calif., who used it to file for benefits through the IDES website, the indictment states. The claims falsely represented that the applicants were eligible for the benefits because their purported employers had terminated them without fault, according to the charges.
It was further part of the plan that, in exchange for money, three co-schemers – KOREY ISBELL, 31, of Van Nuys, Calif., YOSHIMI HENRY, 29, of South Holland, and KEWAN WATTS, 34, of Dolton – provided addresses to Pitts and Logsdon for the IDES to mail debit cards containing the unemployment funds, the indictment states. From November 2013 to December 2015, the six defendants caused IDES to issue approximately $1 million in fraudulent benefits, the indictment states.
The six defendants are charged with participating in a mail or wire fraud scheme, which is punishable by up to 20 years in prison. The indictment also charges Weathersby, Pitts and Logsdon with aggravated identity theft, which is punishable by a mandatory two-year prison sentence. Pitts, Yoshimi Henry and Watts pleaded not guilty at their arraignments in U.S. District Court in Chicago. Arraignments for the other defendants have not yet been scheduled.
U.S.A. v. Anthony Henry, et al (18 CR 726)
This indictment charges two defendants – ANTHONY HENRY, 28, of Chicago, and JEROME PACE, 34, of Chicago – with scheming to file unemployment insurance claims in the names of individuals without their knowledge and consent. From January 2013 to January 2016, Anthony Henry and Pace obtained the personally identifiable information of hundreds of individuals, including names, addresses, Social Security numbers, and dates of birth, the indictment states. Anthony Henry and Pace allegedly caused the IDES to issue benefit funds via debit cards mailed to addresses in Chicago, Matteson, and Calumet City. The indictment charges Anthony Henry and Pace with participating in a mail fraud scheme, which is punishable by up to 20 years in prison, and knowingly possessing the information of other persons for purposes of committing a felony, which is punishable by up to 15 years in prison.
Pace is also charged individually in the indictment with wire fraud, which is punishable by up to 20 years in prison, for allegedly causing the filing of false federal income tax returns for the tax year 2014. The returns were filed on behalf of various individuals who were unaware that their personal identifying information was being utilized to file income tax returns, the indictment states. The returns fraudulently claimed income tax refunds from the IRS of more than $432,000, the indictment states.
Anthony Henry and Pace pleaded not guilty at arraignments on Nov. 7, 2018, in U.S. District Court in Chicago.
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The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Egg Harbor Township, New Jersey, Man Admits Receiving Child PornographyRead the Press Release
TRENTON, N.J. – An Atlantic County, New Jersey, man today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Matthew Wolny, 40, of Egg Harbor Township, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of receipt of child pornography. Wolny was previously arrested and charged by complaint on June 6, 2018.
According to documents filed in this case and statements made in court:In September 2013, Wolny, who was then living in Jackson, New Jersey, used a peer-to-peer file sharing software, which he had installed on his computer, to download video files containing images of child sexual abuse from the internet to his computer hard drive.
The charge of receiving child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for April 8, 2019.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Molly Lorber of the Criminal Division in Trenton.
Defense counsel: Jack Wenik Esq., Newark
East Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division, and East Hartford Police Chief Scott M. Sansom announced that DANIEL VAZQUEZ, also known as “Chino,” 21, of East Hartford, pleaded guilty today in Hartford federal court to one count of brandishing a firearm in furtherance of a drug trafficking crime.
This matter stems from an investigation headed by the ATF and East Hartford Police Department into drug trafficking and related acts of violence by a group of individuals operating out of the Mayberry Village housing complex in East Hartford.
According to court documents and statements made in court, sometime in or before 2014, Vazquez and others were robbed at gunpoint while they were attempting to purchase marijuana that they intended to redistribute. On July 6, 2016, Vazquez saw the person who had robbed him driving a car at the intersection of Tolland Street and Moore Avenue in East Hartford and shot at him. Vazquez was arrested on that date, and a search of his residence revealed a Ruger LC93 9mm handgun, which he had used in the shooting, and a Taurus 9mm handgun.
The investigation revealed that Courtney Johnson had moved from East Hartford to Minot, North Dakota. In late June 2016, Lawrence Christie, an East Hartford resident who was staying with Johnson in Minot, contacted Vazquez and asked him to drive from Connecticut to North Dakota to assist Christie in purchasing firearms. Vazquez and another associate then drove to North Dakota where they stayed with Johnson. In Minot, Vazquez, Christie, Johnson and others, sometimes using counterfeit currency, purchased firearms from sellers who had advertised the guns for sale on a website. Vazquez and others then transported five firearms from North Dakota to Connecticut. Two of the five guns purchased in North Dakota were found in Vazquez’s residence on July 6.
To date, investigators have traced a total of nine firearms that were obtained in North Dakota and transported to Connecticut. Some of the guns have been used in shootings in the Hartford area. Investigators also purchased and seized quantities of heroin, cocaine and marijuana during the investigation.
Vazquez is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on February 5, 2018, at which time he faces a mandatory minimum term of imprisonment of seven years and a maximum term of imprisonment of life.
Vazquez has been detained since his arrest on July 6, 2016. He previously pleaded guilty in state court to possession of a weapon in a motor vehicle and was sentenced to 18 months of incarceration.
Johnson, 23, and Christie, 28, have pleaded guilty to firearm and drug offenses related to this scheme and await sentencing.
This ongoing investigation is being conducted by the ATF and East Hartford Police Department, with the assistance of the Connecticut Department of Correction and the Minot Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Dominican National Sentenced for Passport FraudRead the Press Release
A Dominican national illegally residing in the United States using false identities was sentenced today in federal court in Boston for passport fraud.
Alejandro Valera, 40, a Dominican national formerly residing in Mattapan, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to nine months in prison. Valera will be subject to deportation upon completion of his sentence. In August 2018, Valera pleaded guilty to knowingly making false statements in applying for a U.S. Passport.
On Nov. 10, 2011, Valera, using the name, date of birth and Social Security number of a U.S. citizen from Puerto Rico, submitted a fraudulent application in which he also falsely stated that he had never used any other names or had ever previously applied for a passport. Valera had previously unsuccessfully applied for a passport in 2002 using the same false identity. According to court records, over the last 20 years, Valera has been convicted of numerous crimes in state court in Massachusetts under various false identities.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Theodore Merritt of Lelling’s Major Crimes Unit prosecuted the case.
Currituck County Man Sentenced to 10 Years in Prison for Distributing Cocaine and CrackRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Chief United States District Judge Terrence W. Boyle, sentenced CHRISTIAN LAVAR BURTON, 38 from Elizabeth City, North Carolina, to 120 months in prison, followed by 3 years of supervised release.
CHRISTIAN LAVAR BURTON, was named in a six-count Indictment filed in the Eastern District of North Carolina on March 21, 2018. On May 7, 2018, pursuant to a written Plea Agreement, BURTON pled guilty to Conspiracy to Distribute and Possession With the Intent to Distribute a Quantity of Cocaine and Cocaine Base (Crack) from April 2016 through February 2018, in violation of 21 U.S.C. § 846.
The Currituck County Sheriff’s Office (CCSO), Maple, North Carolina, initiated an investigation into the narcotics activity of BURTON in May 2016. BURTON had several past arrests for the sale of narcotics. During the course of the investigation, agents utilized an undercover agent and multiple confidential informants. From mid-2016 through early 2018, the CCSO made numerous controlled purchases from BURTON in and around the Elizabeth City area.
On February 1, 2018, BURTON was arrested at his home in Moyock. A search of BURTON’S residence resulted in the seizure of approximately 9 grams of cocaine base (crack), approximately 6 grams of cocaine, approximately 108 grams of marijuana, assorted plastic bag portions used to package marijuana, $1,551 in United States currency, and a set of digital scales.
The case is a federal Organized Crime Drug Enforcement Task Force (OCDETF) criminal matter investigated by the Currituck County Sherrif’s Office Narcotics Unit, the North Carolina State Burea of Investigations and the FederalBureau of Investigations. Assistant United States Attorney Edward Gray prosecuted the case on behalf of the United States.
Colorado Woman Pleads Guilty in New Mexico to Federal Charges Arising Out of Nov. 2017 Crime Spree Resulting in Death of Carjacking VictimRead the Press Release
ALBUQUERQUE – Trista Schlaefli, 33, of Colorado Springs, Colo., pled guilty this afternoon in federal court in Las Cruces, N.M., to charges arising out of a Nov. 27, 2017 crime spree during which Schlaefli and her co-defendant allegedly fled from a U.S. Border Patrol checkpoint, carjacked a vehicle at gunpoint resulting in the death of a victim, and attempted to carjack two other vehicles. U.S. Attorney John C. Anderson, Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division, New Mexico State Police Chief Pete Kassetas and Chief Patrick Gallagher of the Las Cruces Police Department announced the guilty plea.
Schlaefli and her co-defendant Daniel Lowell, 35, of Henderson, Colo., were charged in a nine-count indictment, filed on April 10, 2018, with high speed flight from an immigration checkpoint, carjacking, carjacking resulting in death, attempted carjacking, and possession of at least 15 unauthorized access devices. The indictment also charges Lowell with brandishing a firearm during a crime of violence, attempted carjacking, and being a felon in possession of a firearm and ammunition. It charges Schlaefli with aiding and abetting Lowell in brandishing a firearm during a crime of violence, and with attempted carjacking. According to the indictment, Lowell and Schlaefli committed the crimes on Nov. 27, 2017, in Dona Ana County, N.M.
The New Mexico State Police arrested Lowell and Schlaefli on state charges on Nov. 27, 2017, and the FBI arrested them on the federal indictment on April 25, 2018. The state charges were dismissed in May 2018, in favor of federal prosecution.
During today’s change of plea hearing, Schlaefli pled guilty to high speed flight from an immigration checkpoint, carjacking, carjacking resulting in death, aiding and abetting brandishing a firearm in relation to a crime of violence, attempted carjacking, and possession of unauthorized access devices. In her plea agreement, Schlaefli admitted that on Nov. 27, 2017, she and an accomplice fled from a U.S. Border Patrol checkpoint in Dona Ana County at a high rate of speed in a vehicle they carjacked. Schlaefli initially drove the carjacked vehicle as they continued their flight, and her accomplice took the wheel until the vehicle blew a tire. According to Schlaefli’s plea agreement, the accomplice brandished a firearm as he and Schlaefli carjacked another vehicle from a couple and their two minor children as they continued their flight from law enforcement authorities. Schlaefli and her accomplice continued their high speed flight as they were pursued by law enforcement authorities into Las Cruces, where they crashed into a motorcyclist, who died as the result of injuries sustained during the crash. After the crash, Schlaefli attempted to carjack another vehicle.
In her plea agreement, Schlaefli admitted after she was arrested, law enforcement officers executed a search warrant on a stolen vehicle Schlaefli had been driving and a hotel room where she had been staying and seized 15 drivers’ licenses, nine social security cards, one military identification and 31 credit cards. Schlaefli acknowledged that the identifications cards, social security cards and credit cards were stolen and she intended to use them for fraudulent purposes.
At sentencing, Schlaefli faces the following maximum statutory penalties:
- High-speed flight from an immigration checkpoint – five years of imprisonment and a $250,000 fine.
- Carjacking – 15 years of imprisonment and a $250,000 fine.
- Carjacking resulting in death – life imprisonment and a $250,000 fine.
- Attempted carjacking – 15 years of imprisonment and a $250,000 fine.
- Possession of unauthorized access devices – ten years of imprisonment and a $250,000 fine.
- Aiding and abetting brandishing a firearm during a crime of violence –mandatory minimum of seven years and maximum of life imprisonment to be served consecutive to any other sentence imposed.
Lowell has entered a plea of not guilty to the charges against him and remains in custody pending trial, which currently is scheduled for Jan. 2019. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the FBI, the Las Cruces Police Department and the New Mexico State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Border Patrol, and the 3rd Judicial District Attorney’s Office. Assistant U.S. Attorneys Marisa A. Ong and Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Cleveland man indicted for selling fentanyl and heroinRead the Press Release
A Cleveland man was indicted for selling fentanyl and heroin.
Deonte Ayers, 32, was indicted on two counts of distribution of controlled substances and two counts of use of a communication device to facilitate a felony.
Ayers sold 110 grams of fentanyl on Sept. 20 and 46 grams of a fentanyl and heroin mixture on Oct. 3, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Segev Phillips.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charter Aircraft Company and Its Owner Plead Guilty to Failing to Report Leases to FAARead the Press Release
OKLAHOMA CITY – JAMES PAUL JOHNSON, 66, of Oklahoma City, and Interstate Helicopters, Inc., pleaded guilty today to failing intentionally to report to the Federal Aviation Administration five leases of fixed-wing aircraft from 2014 to 2016, announced Robert J. Troester of the U.S. Attorney’s Office.
According to a misdemeanor information filed on November 2, 2018, Johnson owned and operated Interstate Helicopters, an Oklahoma corporation. Johnson and Interstate Helicopters induced five individuals to lease Cessna Citation aircraft and operated those aircraft for the lessees. No one, however, provided the leases for those flights to the FAA, as required by federal law. The information alleges Johnson and Interstate Helicopters intentionally failed to report leases to the FAA for flights on May 20, 2014; September 25, 2015; January 31, 2016; July 19, 2016; and July 20, 2016. Each of these failures is a federal misdemeanor.
At a plea hearing this afternoon before U.S. Magistrate Judge Gary M. Purcell, Johnson admitted the allegations in the information on his own behalf and on behalf of Interstate Helicopters. Their plea agreements provide that Johnson will pay a fine of $5,000 and Interstate Helicopters will pay a fine of $45,000.
This case is the result of an investigation by the Department of Transportation—Office of Inspector General and is being prosecuted by Assistant U.S. Attorneys William E. Farrior and Charles W. Brown.
Reference is made to court records for further information.
Cesar Altieri Sayoc Charged in 30-Count Indictment with Mailing Improvised Explosive Devices in Connection with Domestic Terrorist AttackRead the Press Release
Sayoc Allegedly Mailed 16 IEDs to 13 Victims Across the United States and Now Faces Charges Including Use of Weapons of Mass Destruction, Interstate Mailing of Explosives, and Use of Destructive Devices During Crimes of Violence
WASHINGTON – Cesar Altieri Sayoc, aka Cesar Randazzo, aka Cesar Altieri, and aka Cesar Altieri Randazzo, 56, was charged today in a 30-count Indictment for offenses relating to his alleged execution of a domestic terrorist attack in October 2018, which involved the mailing of 16 improvised explosive devices (IEDs) to 13 victims throughout the country.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Office, and Police Commissioner James P. O’Neill of the NYPD made the announcement. The case is assigned to U.S. District Judge Jed S. Rakoff.
“According to court filings, Cesar Sayoc mailed 16 IEDs to more than a dozen victims throughout the country, including current and former elected leaders. Less than five days after the first IED was discovered, he was tracked down and arrested, thanks to the outstanding work of the FBI, the U.S. Postal Inspection Service and other law enforcement partners,” said Assistant Attorney General Demers.
“Cesar Sayoc allegedly targeted former high-ranking officials such as President Barack Obama, President Bill Clinton, Vice President Joe Biden, Secretary of State Hillary Clinton, and others, as well as CNN, by sending explosive packages to them through the U.S. Postal Service,” said U.S. Attorney Berman. “Sayoc’s alleged conduct put numerous lives at risk. It was also an assault on a nation that values the rule of law, a free press, and tolerance of differences without rancor or resort to violence. Thanks to the diligent and determined work of our law enforcement partners here and across the country, it took just five days to identify and apprehend Sayoc and end his reign of terror. He now faces justice from a nation of laws.”
“As alleged, Cesar Sayoc deliberately targeted 13 individuals with 16 improvised explosive devices, attempting to create an atmosphere of fear and intimidation from California to the eastern seaboard,” said Assistant Director in Charge Sweeney. “Thanks to the seamless integration of FBI JTTFs across the country, working side-by-side with many other law enforcement agencies and first responders, his campaign of terror was brought to a rapid conclusion just five days after the discovery of the first device. The FBI remains steadfast in our mission to protect the American public, and we will move with speed to bring justice to anyone seeking to harm our communities.”
“I commend everyone involved in investigating and prosecuting this case, particularly the agents and detectives on the FBI’s Joint Terrorism Task Force in New York, which includes 56 agencies and 300 individuals – 113 of them NYPD cops,” said Commissioner O’Neill. “Standing shoulder to shoulder with the FBI, the ATF, the U.S. Marshals, the U.S. Postal Inspection Service, the New York State Police, and others, we said from the outset that we would identify and bring to justice the person allegedly responsible for these acts. We could make that promise because of our proven history of effective partnership. The public’s vigilance also greatly assisted this investigation and helped lead to today’s 30-count indictment. What is clear is that New Yorkers are always resilient in the face of threats – we refuse to back down, and we will never be deterred.”
According to the Indictment, Complaint, other court filings, and statements made during court proceedings[1]:
Between Oct. 22 and Nov. 2, the FBI and the U.S. Postal Service recovered 16 padded manila envelopes containing IEDs allegedly mailed by Sayoc from Florida to addresses in New York, New Jersey, Washington, D.C., Delaware, Atlanta and California. Sayoc’s alleged victims, listed alphabetically, were former Vice President Joseph Biden, Senator Cory Booker, former CIA Director John Brennan, former Director of National Intelligence James Clapper, former Secretary of State Hillary Clinton, CNN, Robert De Niro, Senator Kamala Harris, former Attorney General Eric Holder, former President Barack Obama, George Soros, Thomas Steyer, and Representative Maxine Walters.
Each of the 16 envelopes allegedly mailed by Sayoc had similar features, including the return addressee “Debbie Wasserman Shultz” at an address in “Florids,” six self-adhesive postage stamps bearing the American flag, and address labels printed on white paper with blank ink in similar typeface and font size. Each of the 16 envelopes also contained an IED. The 16 IEDs also had similar features, including approximately six inches of PVC pipe packed with explosive material, a small clock, and wiring. Some of the IEDs also contained shards of glass.
Preliminary analysis by the FBI has revealed forensic evidence linking 11 of the 16 mailings to Sayoc. Specifically, latent fingerprints on two of the envelopes have been identified to Sayoc, and there are possible DNA associations between a DNA sample collected from Sayoc prior to his arrest in this case and DNA found on components from 10 of the IEDs (including one of the IEDs that was mailed in an envelope from which a latent fingerprint identified to Sayoc was recovered).
The FBI arrested Sayoc in Plantation, Florida, on Oct. 26 – less than five days after the Oct. 22 recovery of the first IED, which Sayoc allegedly mailed to Soros in New York. The FBI seized a laptop from Sayoc’s van in connection with the arrest that contained lists of physical addresses that match many of the labels on the envelopes that Sayoc allegedly mailed. The lists were saved at a file path on the laptop that includes a variant of Sayoc’s first name: “Users/Ceasar/Documents.” A document from that path, titled “Debbie W.docx” and bearing a creation date of July 26, contained repeated copies of an address for “Debbie W. Schultz” in Sunrise, Florida, that is nearly identical, except for typographical errors, to the return address that Sayoc allegedly used on the packages. Similar documents bearing file titles that include the name “Debbie,” and creation dates of Sept. 22, contain exact matches of the return address allegedly used by Sayoc on the 16 envelopes.
Sayoc possessed a cellphone at the time of his arrest, and the FBI’s ongoing forensic analysis of the device has revealed additional evidence. For example, Sayoc allegedly used the phone to conduct the following Internet searches, among others, on the dates indicated:
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July 15: “hilary Clinton hime address”
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July 26: “address Debbie wauserman Shultz”
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Sept. 19: “address kamila harrias”
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Sept. 26: “address for barack Obama”
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Sept. 26: “michelle obama mailing address”
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Sept. 26: “joseph biden jr”
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Oct. 1: “address cory booker new jersey”
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Oct. 20: “tom steyers mailing address”
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Oct. 23: “address kamala harris”
Sayoc’s phone also contained photographs of some of the victims.
Sayoc, a U.S. citizen, is charged in the Indictment with 30 counts: one count of six different offenses for each of the five IEDs that he allegedly mailed to Clinton, Brennan, Clapper, Soros and De Niro in the Southern District of New York. In aggregate, the 30 counts in the Indictment carry a potential maximum penalty of life imprisonment, and a mandatory minimum penalty of life imprisonment. A chart providing more information regarding the charges and potential penalties is set forth below. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Counts
Charge
Penalties Per Count
1 – 5
Using a weapon of mass destruction
Maximum per count: life
6 – 10
Interstate transportation of an explosive
Maximum per count: 20 years
11 – 15
Conveying a threat in interstate commerce
Maximum per count: 5 years
16 – 20
Unlawful use of mails
Maximum per count: 10 years
21 – 25
Carrying an explosive during the commission of a felony
Minimum for first conviction: 10 years
Minimum for additional convictions: 20 years
26 – 30
Using and carrying a destructive device in furtherance of a crime of violence
Maximum per count: life
Minimum for first conviction: 30 years
Minimum for additional convictions: life
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the U.S. Postal Inspection Service. Mr. Demers and Mr. Berman also thanked the U.S. Attorney’s Office for the Southern District of Florida for its assistance.
Assistant U.S. Attorneys Sam Adelsberg, Emil J. Bove III, Jane Kim, and Jason A. Richman of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorneys David Cora and Kiersten Korczynski of the National Security Division’s Counterterrorism Section.
As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.
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Canton woman indicted for using dead uncle's Social Security fundsRead the Press Release
A Canton woman was indicted today with theft of government funds, said Justin E. Herdman, United States Attorney for the Northern District of Ohio.
JoAnne C. Comstock, 45, fraudulently converted for her own use her uncle’s Title II Retirement Insurance benefits after her uncle passed away. The Social Security Administration was not made aware of the death and continued to pay benefits to a joint account held by Comstock and her late uncle. For nearly four years, Comstock withdrew over $28,000 in federal benefits from the account for which she was not entitled, according to the indictment.
Special Agent Manuel Muniz from the Social Security Administration Office of the Inspector General conducted the investigation. Special Assistant U.S. Attorney Payum Doroodian is prosecuting the case.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Canadian Man Found Guilty of Committing Act of Terrorism Transcending National Boundaries and Other OffensesRead the Press Release
A federal jury in Flint, Michigan, today found Amor M. Ftouhi, 51, of Quebec, Canada, guilty of three crimes, including an act of terrorism transcending national boundaries, in conjunction with an attack on Bishop Airport officer on June 21, 2017, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Assistant Attorney General for National Security John C. Demers and Timothy R. Slater, Special Agent in Charge, Federal Bureau of Investigation.
“Ftouhi conducted research in Canada and entered our country with a plan to obtain a weapon and kill American police officers. With today’s guilty verdict, he will be held accountable for his brutal knife attack on an airport police officer in Flint,” said Assistant Attorney General Demers. “I want to thank the prosecutors and law enforcement partners who made this result possible. The National Security Division remains committed to holding accountable all who seek to carry out terrorist attacks on our soil and target our men and women in uniform.”
“Investigating and prosecuting terrorists remains the Justice Department’s highest priority,” stated United States Attorney Matthew Schneider. “The Assistant United States Attorneys who prosecuted this case to trial, as well as our federal and state law enforcement partners, worked tirelessly to investigate this case and bring this would-be murderer to justice.”
“Protecting our citizens and nation from terrorist attack remains the top priority of the FBI,” said Special Agent in Charge Timothy R. Slater, Detroit Division of the FBI. “Today’s conviction is the result of hard work conducted by the men and women of the FBI, our partner agencies on the FBI Detroit Joint Terrorism Task Force, and our foreign partners in the Royal Canadian Mounted Police. I would also like to acknowledge the heroic actions of civilian and law enforcement officers who were present on the day of the attack and likely saved Lt. Neville’s life.”
According to evidence presented at trial, Mr. Ftouhi entered the United States from Canada on a “mission” for the purpose of killing American police officers in the United States. Before entering the United States on June 16, 2017, while in Canada, Mr. Ftouhi conducted online research of American gun laws and for gun shows in Michigan. Mr. Ftouhi subsequently traveled to Michigan where he was unsuccessful in repeated attempts to purchase a gun and purchased a knife instead. On June 20, 2017, Mr. Ftouhi walked up to the victim, who is a lieutenant with the Flint Bishop Airport police and was in full uniform, and stabbed the police officer in the neck twice with a knife. Mr. Ftouhi referenced killings in Syria, Iraq, and Afghanistan, and yelled “Allahu Akbar.” After his arrest, Mr. Ftouhi told law enforcement that he was a “soldier of Allah,” subscribed to the ideology of Al Qaeda and Usama bin Laden and that his plan had been to kill the victim, steal his gun, and kill other police officers in the airport.
The charges carry a statutory maximum penalty of up to life in prison. Sentencing is scheduled before Matthew F. Leitman for March 7, 2019 at 9:30 a.m.
This investigation was conducted by the Detroit Joint Terrorism Task Force, which is led by the FBI with the assistance of the FBI Flint Resident Agency, the Michigan State Police and the Royal Canadian Mounted Police. Additional assistance has been provided by the Flint Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Genesee County Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorneys Cathleen M. Corken, Jules DePorres and Craig Wininger of the U.S. Attorney’s Office for the Eastern District of Michigan with the assistance of the Counterterrorism Section of the National Security Division of the Department of Justice.
Canadian Man Found Guilty of Committing Act of Terrorism Transcending National Boundaries and Other OffensesRead the Press Release
Amor M. Ftouhi, 51, of Quebec, Canada, was found guilty of three crimes, including an act of terrorism transcending national boundaries, in conjunction with an attack on a Bishop Airport officer in Flint, Michigan on June 21, 2017.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew Schneider for the Eastern District of Michigan, and Special Agent Timothy Slater of the FBI’s Detroit field office.
“Ftouhi conducted research in Canada and entered our country with a plan to obtain a weapon and kill American police officers. With today’s guilty verdict, he will be held accountable for his brutal knife attack on an airport police officer in Flint,” said Assistant Attorney General Demers. “I want to thank the prosecutors and law enforcement partners who made this result possible. The National Security Division remains committed to holding accountable all who seek to carry out terrorist attacks on our soil and target our men and women in uniform.”
“Investigating and prosecuting terrorists remains the Justice Department’s highest priority,” stated U.S. Attorney Schneider. “The Assistant United States Attorneys who prosecuted this case to trial, as well as our federal and state law enforcement partners, worked tirelessly to investigate this case and bring this would-be murderer to justice.”
“Protecting our citizens and nation from terrorist attacks remains the top priority of the FBI,” said Special Agent in Charge Slater. “Today’s conviction is the result of hard work conducted by the men and women of the FBI, our partner agencies on the FBI Detroit Joint Terrorism Task Force, and our foreign partners in the Royal Canadian Mounted Police. I would also like to acknowledge the heroic actions of civilian and law enforcement officers who were present on the day of the attack and likely saved Lt. Neville’s life.”
According to evidence presented at trial, Ftouhi entered the United States from Canada on a “mission” for the purpose of killing American police officers in the United States. Before entering the United States on June 16, 2017, while in Canada, Ftouhi conducted online research of American gun laws and for gun shows in Michigan. Ftouhi subsequently traveled to Michigan where he was unsuccessful in repeated attempts to purchase a gun and purchased a knife instead. On June 20, 2017, Ftouhi walked up to the victim, who is a lieutenant with the Flint Bishop Airport police and was in full uniform, and stabbed the police officer in the neck twice with a knife. Ftouhi referenced killings in Syria, Iraq and Afghanistan, and yelled “Allahu Akbar.” After his arrest, Ftouhi told law enforcement that he was a “soldier of Allah,” subscribed to the ideology of Al Qaeda and Usama bin Laden and that his plan had been to kill the victim, steal his gun, and kill other police officers in the airport.
This investigation was conducted by the Detroit Joint Terrorism Task Force, which is led by the FBI with the assistance of the FBI Flint Resident Agency, the Michigan State Police and the Royal Canadian Mounted Police. Additional assistance was provided by the Flint Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Genesee County Sheriff’s Office in Michigan.
This case is being prosecuted by Assistant U.S. Attorneys Cathleen M. Corken, Jules DePorres and Craig Wininger of the Eastern District of Michigan, with the assistance from the National Security Division’s Counterterrorism Section of the Department of Justice.
California Resident Sentenced to 9 Years in Prison and $1 Million Fine for His Scheme to Illegally Export Components for Production of Night Vision and Thermal Devices and Money LaunderingRead the Press Release
Naum Morgovsky, 69, of Hillsborough, California, was sentenced to 108 months in prison and three years of supervised release for conspiring to illegally export components for the production of night-vision and thermal devices to Russia in violation of the Arms Export Control Act, and for laundering the proceeds of the scheme.
The announcement was made by Assistant Attorney General for National Security John Demers, U.S. Attorney Alex G. Tse for the Northern District of California, and Special Agent in Charge John F. Bennet of the FBI’s San Francisco Field Office. The sentence was handed down by U.S. District Judge Vince Chhabria, who also assessed a fine of $1 million and assessed forfeiture of $222,929.61 and three Infratech night vision devices seized in connection with the investigation. On Oct. 31, Naum Morgovsky’s spouse and codefendant, Irina Morgovsky, 67, was sentenced to 18 months in prison for her role in the export conspiracy.
According to their guilty pleas, which occurred during the second day of jury selection on June 12, Naum Morgovsky and Irina Morgovsky admitted that from at least April 2012 until Aug. 25, 2016, they conspired to export without the necessary license to a company called Infratech in Moscow, Russia, numerous night and thermal vision components, including image intensifier tubes and lenses. The couple used their U.S. business, Hitek International, to purchase these components and misrepresented to the sellers that the products would not be exported. The couple then shipped the products to Russia using a variety of front companies and shipment methods. Further, defendants knew the night and thermal vision components they exported were on the U.S. Munitions List and that they therefore were not permitted to export the items without a license from the Department of State, Directorate of Defense Trade Controls, which they never sought.
In addition to exporting the components, Judge Chhabria found that Naum Morgovsky, a naturalized U.S. citizen originally of Ukraine, had taken steps to conceal his crimes so that the couple could continue to operate the illegal export business undetected, and that Naum Morgovsky laundered the proceeds of the export crimes. As the government alleged, Naum Morgovksy used numerous front companies and the identity of at least one deceased person in furtherance of the scheme. In handing down the sentence, Judge Chhabria noted that this was a “very serious crime” and that “people who export night vision . . . need to know that there is a penalty.”
On April 27, 2017, a federal grand jury issued a superseding indictment charging the Morgovskys for their respective roles in the illegal export scheme. As to Naum Morgovsky, the grand jury charged him for the illegal export scheme with conspiracy to violate the Armed Export Control Act, and with two counts of money laundering. He pleaded guilty to all these export-related charges without a written plea agreement.
For her part in the scheme, the grand jury charged Irina Morgovsky with conspiracy to violate the Armed Export Control Act and with misuse of a passport. She pleaded guilty to the charges and on Oct. 31, Judge Chhabria sentenced her to 18 months in prison for her role in the scheme.
The Court has ordered Naum and Irina Morgovsky to self-surrender on Jan. 4, 2019, to begin serving their respective sentences.
This prosecution is the result of an investigation by the counterintelligence squad of the FBI’s San Francisco field office, with assistance from IRS-Criminal Investigation and the Department of Commerce, Bureau of Industry and Security.
The case was prosecuted by Assistant U.S. Attorneys Colin Sampson and Erin Cornell of the Northern District of California, and Trial Attorney Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section of the Department of Justice.
California Man Sentenced to 160 Months in Federal Prison for Multi-State Methamphetamine TraffickingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Senior United States District Court Judge Callie V.S. Granade sentenced Sebastian Daniel Riso on November 7, 2018 to serve a term of imprisonment of 160 months followed by 5 years of supervised release for Possession with Intent to Distribute Methamphetamine in violation of 21 USC § 841(a)(1). The defendant’s guilty plea was accepted by the Court on February 28, 2018.
Official court documents revealed that Riso was a large scale crystal methamphetamine (ICE) distributor who operated in Hollywood, California and Los Angeles, California and facilitated the shipments of bulk quantities of crystal methamphetamine to the Southern District of Alabama, Central District of California and the District of Hawaii.In October 26, 2017, a cooperating informant (CI) provided information to the Mobile Police Department and the Drug Enforcement Administration in Mobile that he/she met Riso in Hawaii several years ago and has conducted several transactions involving Riso shipping narcotics to him/her in Mobile Alabama. The CI stated that Riso recently contacted the CI and agreed to ship a bulk amount of crystal methamphetamine to the CI in Mobile Alabama.
On October 28, 2017, the CI made several recorded calls to Riso to order methamphetamine. Following the calls, Riso shipped approximately one kilogram of methamphetamine to the CI via Federal Express.
On September 15, 2017, an officer for the Kauai, Hawaii Police Department (“KPD”) conducted a vehicle stop of a subject named Ecolono in Lihue, HI, based upon a warrant for Ecolono’s arrest. The vehicle was subsequently searched pursuant to a Hawaii state court search warrant, and was found to contain a ripped-open postal parcel in the rear seat containing approximately 14.2 grams of heroin, approximately 27.3 grams of methamphetamine and approximately 23 grams of fentanyl.A bag in the cargo area of the vehicle was found to contain (inside multiple vacuum sealed bags) approximately 403.5 grams of heroin and approximately 452.9 grams of methamphetamine. Officers also found approximately $32,000 inside a Louis Vuitton women’s purse in the front seat of the car.
The investigation revealed that Riso was the source of supply for the controlled substances found in Ecolono’s vehicle. The investigation further revealed that Ecolono traveled to California in May of 2017 and stayed with Riso. On that visit, Ecolono agreed to take five pounds of methamphetamine (actual) back to Hawaii to sell. Ecolono agreed to pay $5,000 per pound, and she paid $8,000 up front, and agreed to pay the rest at a later date. Ecolono also agreed to sell heroin for Riso, and she received approximately 125 grams of heroin for $1,500. In payment, Ecolono sent Riso $16,000 in money orders from her sales of the narcotics.
Some time later in the summer of 2017, Ecolono received a parcel from Riso containing four pounds of methamphetamine and one pound of heroin. Ecolono sold the narcotics and sent cash back to Riso in California.
In August 2017, Riso informed Ecolono that a third parcel was on its way. When the parcel did not arrive on time, Riso instructed Ecolono to meet with “T” and receive methamphetamine from “T” to sell. Ecolono did so and received a pound of methamphetamine from “T”. The expected parcel containing one pound of methamphetamine came shortly thereafter, and Ecolono was instructed by Riso to mail $16,000 cash back to Riso.
The September parcel that was found in Ecolono’s vehicle was the fourth package of controlled substances received by her from Riso.
On October 31, 2017, members of the Los Angeles Police Department High Intensity Drug Trafficking Area (LAPD-HIDTA) group conducted surveillance of Riso and observed Riso ship three separate packages, one shipped from Fed Ex and two shipped from UPS. All the packages were shipped to Hawaii. Agents contacted a DEA Task Force Officer (TFO) in Hawaii with the parcel information in order to intercept the packages.On November 2, 2017, a Mobile DEA Agent and Task Force Officer conducted a joint search warrant with LAPD-HIDTA group during the execution of the federal arrest warrant for Riso issued from the Southern District of Alabama. During the search of Riso’s home in the Los Angeles area, agents recovered approximately 8.3 kilograms of methamphetamine, 650 grams of Heroin and 5.4 kilograms of high grade marijuana. Also on November 2, 2017, the DEA TFO in Hawaii intercepted one of the UPS packages in Hawaii that was shipped by Riso and it contained approximately 1000.5 grams of methamphetamine. On November 2, 2017, the DEA TFO intercepted the Fed Ex package in Hawaii that was shipped by Riso and it contained approximately 924.8 grams of methamphetamine.
On November 8, 2017, law enforcement intercepted the other UPS package in Hawaii that was shipped by Riso and it contained approximately 194.1 grams of methamphetamine
The case was investigated by the Drug Enforcement Administration (DEA) in Mobile, the DEA in Hawaii, the Mobile Police Department, the Los Angeles Police Department High Intensity Drug Trafficking Area Task Force, the Los Angeles Police Department, and the Kauai, Hawaii Police Department. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May for the United States Attorney’s Office for the Southern District of Alabama.California Man Receives 30-Month Sentence for Telemarketing SchemeRead the Press Release
Orlando, FL – U.S. District Judge Roy Dalton, Jr. today sentenced Naif Wedad Nazer (39, Laguna Niguel, CA) to two years and six months in federal prison for conspiracy to commit mail and wire fraud. The Court also ordered Nazer to forfeit $811,162.06, the proceeds of the offense.
Nazer had pleaded guilty on June 20, 2018.
According to court documents, between 2011 and 2015, Nazer founded and operated a series of 10 different businesses, each of which engaged in cold-calling timeshare owners across the United States and fraudulently inducing them to pay advance fees for services that the businesses never intended to render. Specifically, Nazer, and others that he recruited for this scheme, made a series of false claims to victims, including that Nazer’s businesses:
- would help the owner market his or her timeshare;
- had identified buyers to purchase the timeshare;
- would facilitate the sale of the timeshare; and
- would refund the advance fee within a prescribed time period if the timeshare sale did not go through.
Victims of this fraud conspiracy were located throughout the United States.
This case was investigated by the U.S. Postal Inspection Service and the Florida Department of Agriculture and Consumer Services, Office of Agricultural Law Enforcement. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
California Man Pleads Guilty in Deadly Wichita Swatting CaseRead the Press Release
WICHITA, KAN. – A California man entered a plea agreement today in federal court in Kansas that would send him to prison for 20 years or more, U.S. Attorney Stephen McAllister said.
Tyler Barriss, 25, Los Angeles, Calif., pleaded guilty to causing a deadly swatting incident in Wichita on Dec. 28, 2017, as well as dozens of similar crimes in which no one was injured. In those cases, Barriss was charged in federal courts in California and the District of Columbia.
In the Wichita case, Barriss entered guilty pleas to count one (making a false report resulting in a death), count two (cyberstalking) and count 12 (conspiracy) of a superseding indictment.
“Without ever stepping foot in Wichita, the defendant created a chaotic situation that quickly turned from dangerous to deadly,” U.S. Attorney Stephen McAllister said. “His reasons were trivial and his disregard for the safety of other people was staggering.”
In the Kansas case, Barriss admitted making hoax calls that resulted in Wichita police surrounding an old house at 1033 W. McCormick. When officers arrived, they believed there was a man inside who had killed his own father and was holding family members hostage. A man who came outside to face police, however, had done nothing wrong and did not know about the swatting call. As he stepped onto the porch, police told him to put up his hands. When he unexpectedly dropped his hands, he was shot and killed.
DISTRICT OF COLUMBIA
In the case from the District of Columbia, Barriss pleaded guilty to making hoax bomb threats in phone calls to the headquarters of the FBI and the Federal Communications Commission in Washington, D.C.
CENTRAL DISTRICT OF CALIFORNIA
In the case from the Central District of California, Barriss pleaded guilty to 46 counts, including making calls with false reports that bombs were planted at high schools, universities, shopping malls and TV stations. He made the calls from Los Angeles to emergency numbers in Ohio, New Hampshire, Nevada, Massachusetts, Illinois, Utah, Virginia, Texas, Arizona, Missouri, Maine, Pennsylvania, New Mexico, New York, Michigan, Florida and Canada.
WICHITA
Two co-defendants in the Wichita case, Casey Viner, 18, North College Hill, Ohio, and Shane Gaskill, 20, Wichita, Kan., are awaiting trial.
In Barriss’ plea, he admitted he got involved with Viner and Gaskill after they had a falling out while playing the game Call of Duty online. As a result, Viner, who was in Ohio, asked Barriss, who was in California, to swat Gaskill, who was in Wichita. Gaskill found out Barriss was stalking him and in messages over the internet he dared Barriss to carry out the swat. Gaskill fooled Barriss, however, by claiming to live at 1033 W. McCormick. In fact, Gaskill no longer lived there.
Sentencing is set for Jan. 30 before U.S. District Court Judge Eric Melgren.
McAllister and Assistant U.S. Attorney Debra Barnett prosecuted the case. In the Kansas case, McAllister commended the FBI, the Sedgwick County Sheriff’s Office and the Wichita Police Department for their work on the case. In the Middle District of California, Assistant U.S. Attorney George Emel Pence, IV, prosecuted. In the District of Columbia, Assistant U.S. Attorney Luke Matthew Jones prosecuted.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
California Man Indicted for Possessing Heroin to DistributeRead the Press Release
KANSAS CITY, Mo. – A Chowchilla, Calif., man was indicted by a federal grand jury today after law enforcement officers found a large amount of heroin in his backpack when he arrived at a local bus station.
Sergio Gonzalez-Bedolla, 20, was charged with possessing heroin with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Gonzalez-Bedolla on Oct. 23, 2018.
According to an affidavit filed in support of the original criminal complaint, a police service canine detected the odor of drugs while checking on a bus that originated in Los Angeles, Calif., after it arrived at a local station. Gonzalez-Bedolla was sitting in the area of the bus where the canine had alerted to the presence of drugs. A Kansas City, Mo., police detective contacted Gonzalez-Bedolla, whom the affidavit says appeared to be extremely nervous, when he got off the bus.
The detective searched Gonzalez-Bedolla’s backpack and found four bundles of heroin that weighed a total of 2.8 kilograms.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Kansas City, Mo., Police Department.