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8 November 2018
New Orleans Man Pleads Guilty to Narcotics ChargesRead the Press Release
U.S. Attorney Peter G. Strasser announced that MARVIN ARMSTRONG, age 32, of New Orleans, LA, has pleaded guilty to two counts of heroin related charges.
According to court documents, ARMSTRONG conspired with others to distribute a quantity of a mixture or substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and 846, and to distribution of a quantity of a mixture or substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and Title 18, United States Code, Section 2.
The Court set sentencing in this matter for February 7, 2019. As to each count, ARMSTRONG faces a term of imprisonment of up to 20 years, a fine of up to $1 million, and at least three years of supervised release following any term of imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the New Orleans Police Department, and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
New London Woman Sentenced to Federal Prison for Role in Cocaine Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ALBA LORENGIE FILOMENO-GOMEZ, 23, of New London, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 18 months of imprisonment, followed by five years of supervised release, for her role in a cocaine trafficking ring.
This matter stems from a DEA New Haven Task Force and the U.S. Postal Inspection Service-led investigation into a New Britain man who is alleged to have coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut. More than 12 kilograms of cocaine were seized during the investigation.
Filomeno-Gomez, on behalf of the organization, accepted packages containing kilogram quantities of cocaine that had been mailed from Puerto Rico. She also couriered narcotics and narcotics proceeds between Connecticut and a narcotics distributor in Scranton, Pennsylania.
Filomeno-Gomez was arrested on October 25, 2017. On July 17, 2018, she pleaded guilty to one count of conspiracy to possess 500 grams or more of cocaine.
This matter is being investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Nevada District Court Permanently Enjoins 20 Defendants Connected to A Multi-Million Dollar Mail Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A federal court in Las Vegas, Nevada, permanently enjoined six individuals and 14 corporate entities from activities related to an alleged mail fraud scheme, the Department of Justice announced today.
In a complaint filed in February 2018, the United States alleged that the defendants mailed thousands of fraudulent solicitations each week. The solicitations purported to inform recipients that they had won large cash or prize packages, but needed to pay a fee to claim the winnings. The solicitations were styled as individual notices and stressed to recipients that they must return the requested fee quickly. According to the complaint, some of the solicitations contained what appeared to be handwritten notes congratulating the recipients on their good fortune, while others reassured recipients that the letters were not a scam. Individuals who sent the requested fees did not receive the expected prizes. The complaint alleged that the Las Vegas-based scheme defrauded consumers out of more than $10 million.
“Consumers should be able to open their mail without encountering false promises of wealth,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “The Department has and will continue to relentlessly pursue schemes like this one.”
“Some of these defendants constantly changed their schemes in attempts to stay one step ahead of the law,” said Delany DeLeon-Colon, Inspector in Charge for the U.S. Postal Inspection Service. “These results make clear that we will peel back the layers, find the individuals behind these schemes, and hold them to account.”
The complaint alleged that defendant Patti Kern orchestrated the activities of the other individual defendants, all of whom live in the Las Vegas area. The complaint alleged that defendants Edgar Del Rio, Sean O’Connor, and Epifanio Castro printed the solicitations; defendant Andrea Burrow opened and processed victim responses; and defendant Stephen Fennell managed the scheme’s lists of recipients. The solicitations were mailed under a plethora of company names, including 11 of the entities named as corporate defendants in the complaint.
The district court entered a default judgment against 11 defendants today and previously entered consent decrees against the nine other defendants named in the complaint. Those orders prohibit the defendants from mailing solicitations like those identified in the complaint, as well as from engaging in activities related to such mailings, including receiving, handling, or opening any victim mail responding to solicitations and using or benefiting from lists of victims who previously responded to solicitations. Additionally, the orders authorize the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the scheme’s victims.
The matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in coordination with the United States Attorney’s Office for the District of Nevada and the United States Postal Inspection Service. Additional information on the original enforcement actions and Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants.
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Munhall Felon Pleads Guilty to Possessing Heroin, Gun and More than $25K in Cash during Drug Trafficking OperationRead the Press Release
PITTSBURGH, Pa – A former resident of Munhall, Pa., pleaded guilty in federal court to violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Charles Payne, 25, pleaded guilty to one count of possession of firearms by a convicted felon, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime, before United States District Judge Donetta Ambrose.
In connection with the guilty plea, the court was advised that on November 10, 2017, Allegheny County Police assisted by Munhall Police Department executed a search warrant at a home on Martha Street in Munhall, PA. Payne was discovered in the upstairs bedroom with his girlfriend and infant child. In the first floor of the house, investigators found a large garbage bag filled with bricks of heroin, empty brick wrappers, a Pennsylvania state ID for Charles Payne, and approximately $25,000 in cash. Investigators also found two digital scales, three boxes of ammunition, a laser sight, and a loaded stolen silver handgun in the house. Payne had previously been convicted of a state drug trafficking conviction and is prohibited from possessing any firearms.
Judge Ambrose scheduled sentencing for March 23, 2019. The law provides for a maximum total sentence of a mandatory minimum five years in prison to life, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and prior record of the defendant. Payne will continue to be detained pending sentencing.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Turning the tide of rising violent crime in America is a top priority of the Department of Justice.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
The Allegheny County Police – Narcotics Unit conducted the investigation leading to the guilty plea in this case.
MoneyGram International Inc. Agrees to Extend Deferred Prosecution Agreement, Forfeits $125 Million in Settlement with Justice Department and Federal Trade CommissionRead the Press Release
MoneyGram International Inc. (MoneyGram), a global money services business headquartered in Dallas, Texas, has agreed to extend its deferred prosecution agreement and forfeit $125 million due to significant weaknesses in MoneyGram’s anti-fraud and anti-money laundering (AML) program resulting in MoneyGram’s breach of its 2012 deferred prosecution agreement (DPA). In addition to the monetary payment and extension of the deferred prosecution agreement, the company must enhance its anti-fraud and AML compliance programs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David J. Freed of the Middle District of Pennsylvania, Federal Trade Commission (FTC) Chairman Joseph Simons and Postal Inspector-in-Charge Daniel B. Brubaker of the U.S. Postal Inspection Service (USPIS) Philadelphia Division made the announcement.
A two-count felony criminal information was filed on Nov. 9, 2012, in the Middle District of Pennsylvania charging MoneyGram with willfully failing to maintain an effective AML program and aiding and abetting wire fraud. The government agreed to defer prosecution on the information for five years provided MoneyGram complied with the DPA. Today’s amendment to the agreement will extend the term of the DPA for 30 months.
According to court documents filed in 2012, MoneyGram was involved in consumer fraud schemes perpetrated by corrupt MoneyGram agents and others. In the fraud scams, which generally targeted the elderly and other vulnerable groups, perpetrators contacted victims in the United States and falsely posed as victim’s relatives in urgent need of money, falsely promised large cash prizes, or promised items for sale over the internet at deeply discounted prices. The perpetrators required the victims to send funds through MoneyGram’s money transfer system.
According to the joint motion filed today to extend and amend the DPA, MoneyGram breached its 2012 DPA. During the course of the DPA, MoneyGram experienced significant weaknesses in its AML and anti-fraud program, inadequately disclosed these weaknesses to the government, and failed to complete all of the DPA’s required enhanced compliance undertakings. As a result of its failures, MoneyGram processed at least $125 million in additional consumer fraud transactions between April 2015 and October 2016.
Today, as a result of MoneyGram’s breach of the DPA, the government filed a motion to extend all the terms of MoneyGram’s DPA and amend and enhance MoneyGram’s compliance requirements pursuant to the DPA. In addition, MoneyGram agreed to forfeit $125 million, which the department intends to return to victims of fraud through the Justice Department’s Victim Compensation Program. Under the terms of the extension, the government has agreed to continue to defer prosecution for a period of 30 months, after which time the government would seek to dismiss charges if MoneyGram has complied with the agreement.
As part of the amendment to and extension of the DPA, MoneyGram has agreed to additional enhanced compliance obligations, including creating policies or procedures:
- to block certain reported fraud receivers and senders from using MoneyGram’s money transfer system within two days of receiving a complaint identifying those individuals;
- to require individuals worldwide to provide government-issued identification to send or receive money transfers;
- to monitor all money transfers originating in the United States in its anti-fraud program; and
- to terminate, discipline, or restrict agents processing a high volume of transactions related to reported fraud receivers and senders.
In a related case, MoneyGram agreed to settle contempt allegations by the FTC filed today in the U.S. District Court for the Northern District of Illinois, alleging that MoneyGram violated its 2009 order with the FTC. The FTC alleges that MoneyGram failed to implement the comprehensive fraud prevention program mandated by the 2009 order, which requires the company to promptly investigate, restrict, suspend, and terminate high-fraud agents. According to the FTC, MoneyGram was aware for years of the high levels of fraud and suspicious activities involving certain agents, including large chain agents, but failed to promptly conduct required reviews or suspend or terminate agents, as required by the 2009 order.
In resolving the FTC allegations, MoneyGram agreed to a monetary judgment of $125 million and to an expanded and modified order that will supersede the Commission’s 2009 order and apply to money transfers worldwide. The modified order requires, among other things, that the company block the money transfers of known perpetrators of fraud schemes and provide refunds to fraud victims in circumstances where its agents fail to comply with applicable policies and procedures. In addition, the modified order includes enhanced due diligence, investigative, and disciplinary requirements.
The USPIS and the U.S. Attorney’s Office for the Middle District of Pennsylvania have been investigating and prosecuting consumer fraud schemes using MoneyGram’s money transfer system since 2007. To date, the U.S. Attorney’s Office of the Middle District of Pennsylvania has charged 37 MoneyGram agent owners for conspiracy, money laundering and fraud-related violations. Twenty-eight of those charged have been convicted.
USPIS’s Philadelphia Division’s Harrisburg, Pennsylvania Office investigated the case. Senior Trial Attorney Margaret A. Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section’s Bank Integrity Unit and Assistant U.S. Attorney Kim Douglas Daniel of the Middle District of Pennsylvania are prosecuting the case. The department appreciates the significant cooperation and assistance provided by the FTC in this matter.
Persons who believe they were victims of the fraud scheme should visit the Department of Justice’s victim website at MoneyGramRemission.com or call 844-269-2630 for updates on how to request compensation as a result of this action.
The Victim Compensation Program, operated by the Money Laundering and Asset Recovery Section, is composed of a team of experienced professionals, including attorneys, accountants, auditors and claims analysts. In hundreds of cases, the Victim Compensation Program has successfully used its specialized expertise to efficiently convert forfeited assets to victim recoveries.
The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Michigan Home Health Agency Owner Sentenced to Seven Years in Prison for Role in $1.6 Million Health Care Fraud SchemeRead the Press Release
The owner of a Michigan home health agency was sentenced to 84 months in prison today for her role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided.
Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Editha Manzano, 70, of Troy, Michigan, was sentenced by U.S. District Judge Gershwin A. Drain of the Eastern District of Michigan. Judge Drain also ordered Manzano to pay $1,593,804.35 in restitution, jointly and severally with her co-conspirators, and to forfeit $758,407.07. On Dec. 4, 2017, Manzano was convicted after a two-week trial on all counts that were charged in the indictment -- one count of conspiracy to commit health care and wire fraud, one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries, and one count of health care fraud.
According to evidence presented at trial, from 2013 to 2016, Manzano masterminded a scheme to defraud Medicare of approximately $1.6 million by submitting false and fraudulent claims for home health care services in connection with Anointed Care Services (Anointed), a Detroit-area home health care agency. Medicare requires that physical therapy and skilled nursing services in the home be provided only to Medicare beneficiaries who are homebound and need the services. The evidence showed that Manzano paid illegal kickbacks in exchange for recruited beneficiaries’ signatures on blank home health documents. The evidence further showed that Manzano conspired with physicians to admit beneficiaries for home health care with Anointed when they did not qualify for such services. Manzano and her co-conspirators then billed Medicare for home health services that were never provided, the evidence showed. To make it appear that the services were medically necessary and actually provided, Manzano and her co-conspirators fabricated and falsified medical records, the evidence showed.
The evidence further showed that Manzano conspired with physicians to provide medically unnecessary opioids to beneficiaries who signed up for home health care with Anointed. Some of these beneficiaries sold the opioids to drug dealers to be resold on the street; others traded the opioids to drug dealers in exchange for crack cocaine.
Manzano was charged along with Liberty Jaramillo, 68, also of Troy; Roberto Quizon, M.D., 72, of Bloomfield Hills, Michigan; Juan Yrorita, R.N., 64, of Sterling Heights, Michigan, and Victoria Gallardo-Navarra, M.D., 75, also of Bloomfield Hills, in an indictment returned on Sept. 1, 2016. Jaramillo and Quizon pleaded guilty prior to trial and were sentenced to serve 36 months and 18 months in prison, respectively. Gallardo-Navarra was acquitted, and Yrorita pleaded guilty on the fifth day of trial and was sentenced to serve 36 months in prison.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Jacob Foster and Rebecca Yuan of the Fraud Section prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Men Sentenced for Methamphetamine Distribution in Jacksonville, North CarolinaRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge James C. Dever, III sentenced SAMUEL MONSERRATE-GARCIA, 55, of Midway Park, North Carolina and VICTOR RODRIGUEZ, 41, of Jacksonville, North Carolina for their roles in distributing methamphetamine in the Jacksonville area.
On August 7, 2018, MONSERRATE-GARCIA pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute 50 Grams or More of Methamphetamine (Count One) and Possession With Intent to Distribute 50 grams or More of Methamphetamine and Aiding and Abetting (Count Two) and today he was sentenced to 120 months imprisonment followed by 5 years of supervised release. Also on August 7, 2018, RODRIGUEZ pled guilty to Possession With Intent to Distribute 50 Grams or More of Methamphetamine and Aiding and Abetting, and today he was sentenced to 120 months of imprisonment followed by 5 years of supervised release.
MONSERRATE-GARCIA and RODRIGUEZ had been charged by the grand jury for the Eastern District of North Carolina in a Second Superseding Indictment filed on March 28, 2018.
On October 6, 2016, members of the Onslow County Sheriff’s Office determined that MONSERRATE-GARCIA and RODRIGUEZ were attempting to sell crystal methamphetamine from a hotel in Jacksonville, North Carolina.
On October 7, 2016, officers executed a search warrant at the hotel room. Officers seized two bags containing a total of 95.97 grams of 99% pure methamphetamine (“Ice”), as well as marijuana, cocaine, and a digital scale.
An individual indicated that MONSERRATE-GARCIA had agreed to distribute six kilograms of pure methamphetamine (“Ice”) for him.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The Drug Enforcement Administration and the Onslow County Sheriff’s Office conducted the criminal investigation of this case. Assistant United States Attorney Scott A. Lemmon handled the prosecution of this case for the government.
Medicaid Biller Sentenced to Prison for Medicaid FraudRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced RENEE CHRISTINE BORUNDA, 36, of Greensboro, North Carolina, to 37 months in federal prison followed by 3 years of supervised release following her prior guilty plea to Conspiracy to Commit Health Fraud Conspiracy and Aggravated Identity Theft. BORUNDA was also ordered to make restitution of $225,399.08 to the North Carolina Medicaid program.
The Criminal Information to which BORUNDA pleaded guilty, as well as information provided at the sentencing hearing, stated that BORUNDA managed a company that offered behavioral health services to Medicaid recipients in Wilson, North Carolina. In 2013 and 2014, BORUNDA used one of the company’s therapist’s personal information to submit fraudulent electronic claims. The claims were submitted from two different companies. The claims falsely represented that the therapist had provided $225,339.08 worth of behavioral services to over 200 different Medicaid recipients who lived in Beaufort, Edgecombe, Greene, Guilford, Lenoir, Mecklenburg, Pitt, and Wilson Counties, when in fact no such services were rendered. The therapist was unaware that her information was being used to commit the fraud.
United States Attorney Robert J. Higdon, Jr. stated, “Fraud in the behavioral health sector is a plague upon our district and the country at large. This case, like several others prosecuted by this office in the last several years, sends a strong message to those who seek to defraud Medicaid and Medicare - programs essential to the wellbeing of the American people. These individuals will be aggressively prosecuted.”
North Carolina Attorney General Josh Stein said, “Cheating Medicaid wastes tax dollars, and it’s unacceptable. My office will continue our work to protect taxpayers and hold the healthcare providers who commit fraud accountable.”
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation (“SBI”) assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office (“MID”), Financial Investigators with the MID, and the Internal Revenue Service - Criminal Investigation. Assistance was provided by the Office of Compliance and Program Integrity of the North Carolina Division of Health Benefits, EastPointe, Sandhills Center, and Trillium Health Resources. The investigation and prosecution of this matter was handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. SBI Assistant Special Agent in Charge Lolita Howell was the lead investigator. Special Assistant United States Attorneys Mike Heavner and John Parris of the Medicaid Investigations Division of the North Carolina Attorney General’s Office represented the United States.
McNairy County Man Sentenced to Life Imprisonment for Methamphetamine TraffickingRead the Press Release
Jackson, TN. – Michael Jay Harris, 47, of McNairy County, TN was sentenced to life imprisonment for methamphetamine trafficking. D. Michael Dunavant U.S. Attorney for the Western District of Tennessee announced the sentence today.
Proof at trial showed that on February 13, 2017, agents with the McNairy County Narcotics Unit, including officers with the Selmer Police Department and McNairy County Sheriff’s Department, went to the residence of Michael Jay Harris, in the Northwestern corner of McNairy County, in Finger, TN, to arrest Harris on an outstanding warrant. Law enforcement found Harris in possession of a bag containing three and a half ounces of ice methamphetamine and marijuana, as well as digital scales and drug paraphernalia. When the agent found the narcotics, Harris became combative and attempted to fight the officers. A chemist with the Drug Enforcement Administration found the methamphetamine was more than 97 percent pure, and an agent with the Federal Bureau of Investigation testified it could have been distributed to more than a thousand drug users, based on its purity.
Following an August 2018 trial, Harris was convicted by a jury for possession of 98 grams of actual methamphetamine with the intent to distribute. Harris had four previous drug trafficking convictions in the State of Tennessee, and faced a mandatory life sentence as a career drug offender.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine that is trafficked in and through West Tennessee continues to increase in purity, which increases its potential to cause addiction, injury, and death. Harris is a career drug offender who has devoted his life to criminal activity that endangered the citizens of West Tennessee, and this life sentence is well-earned and justified to protect the public. I commend the outstanding investigative work of local law enforcement, and thank AUSA Matt Wilson for his effective prosecution of this important case."
On November 8, 2018, U.S. District Judge J. Daniel Breen sentenced Harris to life imprisonment.
This case was investigated by the Selmer Police Department, McNairy County Sheriff’s Department and the Drug Enforcement Administration.
Assistant U.S. Attorney Matt Wilson prosecuted this case on behalf of the government.
Massachusetts Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Victor Soto, 38, of Dorchester, Massachusetts, pleaded guilty in federal court to possession of over 40 grams of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on May 30, 2018, Manchester police officers acquired reliable information that the defendant would deliver 300 to 400 grams of fentanyl to Manchester later that day. The Manchester police officers shared this information with the New Hampshire State Police. On the evening of May 30, 2018, the New Hampshire State Police located defendant’s black Acura SUV driving north on I-93. The defendant was driving alone. The police followed the defendant to route 293 and then on to South Willow St. in Manchester, where they stopped him. During a subsequent consent search of his vehicle, the officers located approximately 394 grams of fentanyl in the trunk.
Soto is scheduled to be sentenced on February 14, 2019.
“Fentanyl continues to cause tremendous damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect the lives and safety of the public, we will investigate, arrest and prosecute those who choose to distribute this deadly drug in the Granite State. I commend the law enforcement officers whose work prevented this substantial amount of fentanyl from being sold on the streets of Manchester.”
“We’re very pleased that our close coordination with local and state partners in New Hampshire allowed for the successful prosecution of this case,” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “HSI will continue to prioritize investigations to combat this deadly opioid and fentanyl epidemic.”
This matter was investigated by the Manchester Police Department, New Hampshire State Police, and U.S. Immigration and Customs Enforcement's Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney John Davis.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Markham Lynch Sentenced for Marriage FraudRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MARKHAM LYNCH, age 52, from Tamuning, was sentenced today in District Court by Senior District Judge Alex R. Munson for Conspiracy to Commit Marriage Fraud, in violation of Title 18, United States Code, Section 371. Defendant LYNCH was sentenced to 50 hours of community service, two years probation, $8,500 fine, and a $100 special assessment fee.
LYNCH and Jong Yun Kim conspired for LYNCH to illegally marry and petition for Kim’s girlfriend to receive a Permanent Resident Card and remain in the United States. LYNCH would receive $20,000 or more if the plan succeeded. At the time, Kim’s girlfriend was unlawfully present in the United States under the terms of the Guam Visa Waiver Program. LYNCH and Kim’s girlfriend were married in the Superior Court of Guam in 2014. LYNCH informed immigration officials that he and Kim’s girlfriend were living together when, in fact, they were not. Kim’s girlfriend had been residing with Kim since her entry into Guam. LYNCH received $8,500 for the fraudulent marriage. Kim was convicted earlier this year for his part in the scheme.
U.S. Attorney Anderson stated, “The Guam Visa Waiver program allows the entry of certain foreign nationals for not more than 45 days for the limited purposes of business and tourism. The program has the potential to greatly benefit Guam’s economy. However, as demonstrated by this case, those admitted may use the program as a means to commit criminal offenses once on island. Abuse of the waiver system by foreign nationals or United States citizens risks its continued viability. Foreign nationals who are convicted of violating our immigration laws also risk deportation and being barred from future entry. Our office will assist Homeland Security Investigations at every opportunity to enforce federal immigration laws on Guam and the Northern Mariana Islands.”
Special Agents from the Department of Homeland Security, Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorney Stephen F. Leon Guerrero prosecuted the case.
Man Pleads Guilty to $20 Million Tax FraudRead the Press Release
HOUSTON – A man who had owned Stat Source Inc. has admitted he willfully failed to truthfully account for and pay over employment taxes to the IRS, announced U.S. Attorney Ryan K. Patrick.
Jonathan Adam Van Pelt withheld federal income taxes and Social Security and Medicare taxes from the wages of employees for one employment tax quarter. However, he did not timely file the required Employer’s Quarterly Federal Income Tax Return for that quarter reporting the withholdings and did not pay over the withholdings to the IRS.
In the plea agreement filed in the record of the case, Van Pelt admitted the total employment taxes he failed to pay to the IRS for Stat Source Inc., was more than $20 million, the amount owed for 18 employment tax quarters running from the third quarter of 2011 through the fourth quarter of 2015. Van Pelt admitted he spent the money owed on the unpaid employment taxes on various luxury items, such as luxury automobiles, expensive furniture, leather goods, jewelry, an expensive home, lavish vacations and various entertainment venues.
He has agreed to pay $20 million in restitution to the IRS.
U.S. District Judge Alfred H. Bennett accepted the plea today and has set sentencing for Jan. 17, 2019. At that time, Van Pelt faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is investigating the case.
Malvern Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Larry Speakar, age 51, of Malvern, Arkansas was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine . The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, in March 2017, investigators with the Drug Task Force in Garland County and Homeland Security Investigations initiated an investigation into the drug trafficking activity of Speakar. In March and April 2017, agents conducted three controlled purchases of methamphetamine from Speakar. On April 26, 2017, law enforcement officers stopped a vehicle in Hot Springs for speeding. The driver later identified as Speakar was on parole and had a search wavier on file. A search of his vehicle resulted in officers locating 2 plastic bags containing at least 50 grams of a crystalline substance which field tested positive for methamphetamine.
A federal grand jury indicted Speakar in June 2017, and he pled guilty in March 2018.
This case was investigated by the Garland County Drug Task Force and Homeland Security Investigations. Assistant United States Attorney David Harris prosecuted the case for the United States.
Los Angeles Man Pleads Guilty to Defrauding Investors Through an $8.3 Million Binary Options SchemeRead the Press Release
The former CEO of Citrades pleaded guilty today for his role in a scheme to defraud investors out of $8.3 million in the United States and across the world in financial instruments known as “binary options,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office. Citrades was a purported internet-based investment platform.
Jason Benjamin Scharf, 37, of Los Angeles, California, pleaded guilty to one count of conspiracy to commit wire fraud before U.S. District Judge George H. Wu of the Central District of California. Sentencing has been scheduled for Feb. 25, 2019, before Judge Wu.
As part of his guilty plea, Scharf admitted that from February 2013 through December 2015, he oversaw the day-to-day operations of Citrades as the company’s CEO, and that he agreed with his co-conspirators to induce investors to purchase binary options based on materially misleading misrepresentations and omissions. As described in the plea agreement, a binary option is a type of option contract in which the payout depends on the outcome of a discrete event, typically related to whether the price of a particular asset—such as a stock or a commodity—will rise above or fall below a specified amount.
Scharf admitted that representatives of Citrades falsely claimed to be representing the interests of investors in binary options when in reality they were representing the financial interests of Citrades. Scharf further admitted that while Citrades marketed itself as a trading platform through which binary options could be traded, investors were not actually trading with other investors. Instead, they were investing in transactions whose parameters, including the “strike price” associated with the binary option, were set by a separate company that served as a platform provider. Scharf admitted that Citrades operated its binary options business principally out of Israel, but had representatives and co-conspirators working on its behalf in the United States.
Scharf further admitted that after being served with an administrative subpoena, he deleted potentially incriminating emails from an account that he used to conduct Citrades-related business.
This case was investigated by the FBI. Trial Attorney Ankush Khardori of the Criminal Division’s Fraud Section is prosecuting the case. The Criminal Division’s Office of International Affairs and the Israeli National Police also provided assistance.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Leader of Cartel Del Noreste and Nephew of Los Zetas Leaders Z-40 and Z-42 Receives Two Consecutive Life Sentences Plus 20 Years in Federal PrisonRead the Press Release
In Waco today, U.S. District Judge Alia Moses sentenced 38-year-old Juan Francisco “Kiko” Trevino Chavez, nephew of Los Zetas leaders Miguel Angel Trevino Morales (Z-40) and Oscar Omar Trevino Morales (Z-42), to two consecutive life imprisonment sentences plus 20 years in federal prison. In addition to the prison terms, Judge Moses ordered that Trevino pay a $2 Million fine and a $2 Million money judgment.
That announcement was made by U.S. Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio Division; Special Agent in Charge Tamera Cantu, IRS—Criminal Investigation, Dallas Division; Special Agent in Charge Will Glaspy, Drug Enforcement Administration (DEA), Houston Division; Special Agent in Charge Fred Milanowski, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Houston Division; and, Special Agent in Charge Christopher Combs, FBI, San Antonio Division.
On July 24, 2018, a jury convicted the defendant on one count each of conspiracy to possess marijuana with intent to distribute, conspiracy to import marijuana, unlawful distribution of controlled substances (extra-territorial), conspiracy to possess cocaine with intent to distribute, conspiracy to import cocaine, conspiracy to possess firearms in furtherance of drug trafficking, and conspiracy to commit money laundering.
Evidence presented at trial revealed that from 2004 until September 2016, the defendant was a member of the Los Zetas, a transnational drug trafficking organization operating primarily in the Mexican corridors of Nuevo Laredo, Tamaulipas, Ciudad Acuna and Piedras Negras, Coahuila. Evidence further revealed that Kiko Trevino worked with and conspired with the highest level operatives in the criminal organization, including his uncles, Z-40 and Z-42. Evidence also revealed that Kiko Trevino organized the source and distribution of large quantities of narcotics, laundered drug proceeds, and controlled cells of traffickers and a group of armed sicarios in the Nueva Laredo area. The trial evidence showed the defendant participated in the trafficking of more than 250,000 kilos of cocaine, hundreds of thousands of kilos of marijuana, and hundreds of firearms. The evidence further described the laundering of hundreds of millions of dollars in drug proceeds. Finally, trial testimony revealed that after his uncles’ arrests, Los Zetas splintered into two groups and Kiko Trevino took over leadership of one of those two groups, the Cartel Del Noreste (CDN), and in this role, he controlled all of the drug and firearm trafficking, enforcement, and money laundering operations of CDN. Trevino continued in this leadership role until his arrest in 2016.
“Trevino-Chavez, also known as ‘Comandante Kiko,’ is a leader/organizer for a major Transnational Criminal Organization that is responsible for smuggling literally tons of drugs into South Texas. Homeland Security Investigations specializes in complex cross-border conspiracy investigations targeting violent and dangerous individuals who threaten or violate the national security of the United States,” stated HSI Special Agent in Charge Folden.
“As a result of the consistent and exceptional efforts of U.S. law enforcement working together with our international law enforcement partners, a very significant drug trafficker from Mexico has been brought to justice. The Kiko Trevino sentencing serves as an example that there are no borders when it comes to prosecuting international drug traffickers,” stated DEA Special Agent in Charge Glaspy.
“This investigation is a prime example of the fine work done when agencies come together to become a force multiplier,” stated ATF Special Agent in Charge Milanowski.
Kiko Trevino has remained in federal custody since his arrest in Baytown, TX, on September 28, 2016.
This federal prosecution resulted from multiple Organized Crime Drug Enforcement Task Force (OCDETF) operations and investigations, originating out of Waco, SA, DR, Eagle Pass and Dallas area metroplex, conducted by HSI, IRS-Criminal Investigations, DEA-High Intensity Drug Trafficking Area Group, FBI, ATF, U.S. Marshals Service, Texas Rangers, Texas Department of Public Safety, Irving Police Department, Waco Police Department, Laredo Police Department, and Leon Valley Police Department. The U.S. Border Patrol, Customs and Border Protection—Office of Enforcement Operations, and Natalia Police Department also provided support in this case.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Lake Mary Man Convicted of Mail Fraud Involving Scheme to Defraud Ebay and PaypalRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that Brian R. Kucharski (28, Lake Mary) has pleaded guilty to mail fraud. Kucharski faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Kucharski created eBay accounts using stolen and fraudulently obtained personal identifying information, including the names and dates of birth of over 500 individuals. Kucharski negotiated the fraudulent sale of fictitious products, predominantly gift cards, through eBay. The eBay customers paid for the items through fraudulent PayPal accounts that were created by Kucharski. Instead of mailing the purchased items to the customers, Kucharski used the U.S. Postal Service (USPS) to disguise his fraudulent activities by mailing random items to other individuals, and using the USPS tracking numbers to represent to eBay and its customers that he had mailed the purchased items. Ultimately, the victims never received the items and eBay routinely denied their demands for a refund.
Postal customers all over the United States became concerned after they received priority mail packages containing random items of no value. As a result of complaints made to local police departments and post offices, investigators identified Kucharski as the perpetrator of the scheme.
Further, Kucharski used the fraudulently obtained proceeds of his illegal activities to purchase precious metals, which were delivered to him via the U.S. mail.
This case was investigated by U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Justice Department Releases Memorandum on Litigation Guidelines for Civil Consent Decrees and Settlement AgreementsRead the Press Release
Attorney General Jeff Sessions signed a memorandum yesterday providing direction to all civil litigating components and United States Attorneys’ Offices (USAOs) on the principles that should be followed when resolving a civil lawsuit against a state or local governmental entity. State and local governments have unique roles under the Constitution, and the Department is committed to ensuring that its practices in these cases are transparent, impartial, and consistent with fundamental constitutional principles, including democratic control and accountability.
The memo includes guidelines on:
- How civil litigating components and USAOs should handle investigations and reports of allegations;
- The notice, approval, and substantive requirements for consent decrees[1] and settlement agreements, as well as constitutional and policy considerations;
- Use and limits of monitors for state and local governmental entities.
These guidelines are designed to ensure that consent decrees with state and local governments are narrowly tailored to remedy the alleged violations, and are not used to extract greater relief from the state or local government than the Department could obtain through litigation. They are also structured to ensure that, where appropriate, responsibility is returned to democratically accountable state and local institutions. Requirements include, but are not limited to, limits on duration of a consent decree, clear triggers for termination, and prohibitions on using consent decrees to achieve general policy goals. The memo also clarifies the approval process for both consent decrees and settlement agreements, to ensure that they receive appropriate review by the Office of the Deputy Attorney General, the Associate Attorney General, and other senior Department leadership.
The full text of the memo can be found
here .
[1] A consent decree is a negotiated agreement entered as a court order that is enforceable by the court. A settlement agreement is an out-of-court resolution that requires a signed agreement, or memorandum of understanding, and performance by the defendant. Required periodic assessment of compliance or noncompliance is handled by consultation of the parties without involving a court. If there is a breach of contract by the defendant, the government may file a lawsuit to enforce the agreement.
Jury Finds Texas Man Guilty for Role in Complex Nigerian Money Laundering RingRead the Press Release
Tampa, Florida – A federal jury has found Okechuwku Desmond Amadi (39, Garland, TX) guilty of conspiracy to commit money laundering and individual counts of money laundering. Amadi faces a maximum penalty of 60 years in federal prison. His sentencing hearing has not yet been set.
Amadi was indicted on September 19, 2017. He was arrested on September 28, 2017, at John F. Kennedy International Airport, in New York City, after returning from a trip to Nigeria.
According to the evidence presented at trial, Amadi worked with an international criminal organization based in Nigeria that defrauded dozens of victims across the United States and then laundered proceeds of the fraud through a complex network of bank accounts. The criminal organization, known as the Neo Black Movement of Africa, or the Black Axe Group, coordinated fraud and money laundering activity throughout the globe via cells or “zones” in Nigeria, Canada, the United States, and elsewhere.
Black Axe fraud schemes took various forms. Many of the fraud victims were elderly, widowed or divorced women who had developed relationships with fake suitors on dating websites. These victims were convinced to wire money, which often consisted of their retirement savings and cash taken out from their home equity, to bank accounts in the United States as part of a supposed investment opportunity. Other victims included title companies that were defrauded with fake cashier’s checks during phony real estate transactions.
Victims were instructed to wire their money into accounts held by U.S.-based conspirators, known as “money mules,” and the funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records presented at trial indicated that, from 2012 to 2015, several million dollars in wire transfers were laundered. Amadi, a real estate investor and insurance broker in Texas, used his bank accounts to launder more than $833,000 in fraud proceeds that victims had sent to accounts controlled by an associate of his in the Dallas area. Amadi wired much of that money overseas, including to Canada and Nigeria, to promote the conspiracy and conceal the source of the funds.
This case was investigated by the FBI, with assistance from various federal and local law enforcement partners throughout the country, including the Toronto Police Service and the Toronto Strategic Partnership in Ontario, Canada. It is being prosecuted by Assistant United States Attorneys Patrick Scruggs and Diego Novaes.
Jury Convicts Moroccan Man of Assault on Federal OfficersRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Moroccan man yesterday on charges of assaulting federal law enforcement officers and failure to depart the United States.
“These ICE officers were carrying out a lawful judicial order to deport a convicted felon,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This verdict shows that we will not tolerate this kind of violent attack on law enforcement officers. The United States Attorney’s Office will protect those who are sworn to protect us.”
According to court records and evidence presented at trial, Zakaria Taoufik, 40, a citizen of Morocco, was being deported from Dulles International Airport pursuant to a valid final order of removal issued by a U.S. immigration judge because of a prior aggravated felony conviction. Three ICE deportation officers were assigned to accompany Taoufik back to Morocco. Taoufik told the airline pilot that he would not let himself be deported, and that he would fight and make the flight uncomfortable for everyone. Once on the aircraft, Taoufik screamed that he could not be deported, that he would not allow himself to be taken back to Morocco, issued threats against the officers, and took violent and aggressive actions to prevent his deportation, including shattering the entertainment screen on the seatback in front of him by slamming his head into the screen, attempting to head-butt two of the officers, attempting to bite an officer, and deliberately spitting in the face of an officer. Because of his disruptive actions, Taoufik and the ICE officers were ordered off the aircraft. This was Taoufik’s second successful attempt to prevent his deportation, as he had foiled an earlier attempt to deport him from Atlanta in October 2017.
Taoufik faces a maximum penalty of 10 years in prison when sentenced on Jan. 25, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Special Assistant U.S. Attorney Matthew Reilly and Assistant U.S. Attorney Grace Hill are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-73.
Jury Convicts Joplin Man of Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man has been convicted by a federal trial jury of leading a conspiracy to distribute methamphetamine in Jasper County, Mo.
Donald B. Loomis, 36, was found guilty on Wednesday, Nov. 7, 2018, of participating in a conspiracy to distribute 500 grams or more of methamphetamine in Jasper County from March 1, 2015, to Sept. 24, 2016.
Law enforcement officers began investigating methamphetamine trafficking in the Joplin area in April 2015, focusing on a violent gang that identified themselves as the Joplin Honkeys. Evidence introduced at trial indicated that Loomis, a member of the Joplin Honkeys, was the leader of a drug-trafficking organization and supplied multiple pounds of methamphetamine per week to distribute to others in the Joplin area.
Loomis is among five defendants convicted in this case. Co-defendants Kelly C. Walker, 46, of Joplin, and Alisha D. Courtney, 48, and Terrance E. Romero, 43, both of Webb City, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy. Romero also pleaded guilty to possessing a firearm in relation to a drug-trafficking crime. Co-defendant Lisa M. Allison, 40, of Neosho, Mo., pleaded guilty to distributing methamphetamine.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge M. Douglas Harpool on Wednesday, Nov. 7, 2018, ending a trial that began Monday, Nov. 5, 2018.
Under federal statutes, Loomis is subject to a mandatory sentence of life in federal prison without parole due to his prior felony convictions. 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. Attorneys Abram McGull, II, and Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Ozarks Drug Enforcement Team, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the Newton County, Mo., Sheriff’s Department, the Jasper County, Mo., Sheriff’s Department, the Jasper County, Mo., Prosecuting Attorney’s Office and the Newton County, Mo., Prosecuting Attorney’s Office.
Judge sentences Great Falls man in counterfeiting schemeRead the Press Release
GREAT FALLS—Great Falls resident Martin Phillip Rose, who was convicted in a counterfeiting scheme, was sentenced on Thursday to 14 months in prison and three years of supervised release, the U.S. Attorney’s Office announced.
U.S. District Judge Brian M. Morris presided at the hearing.
Rose, 44, pleaded guilty in July to aiding and abetting counterfeiting obligations or securities of the United States.
The investigation began in 2017 when a significant amount of counterfeit money began circulating through out Great Falls. In July 2017, Rose passed a fake $50 bill at a local business and was arrested. Following Rose’s arrest, investigators continued receiving information that Rose was making counterfeit $50 bills by taking legitimate $10 bills, washing them with chemicals and re-printing them as $50 bills.
Rose acknowledged to investigators he had run short on money and started making counterfeit bills.
Investigators identified 51 victims of Rose’s counterfeit scheme.
In a sentencing memo, Assistant U.S. Attorney Jessica Betley said Rose was sentenced in 2012 in federal court in Montana on a previous counterfeiting crime.
Betley prosecuted the case, which was investigated by the U.S. Secret Service and the Great Falls Police Department.
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Jefferson County Felon Will Spend 5 Years in Prison for Recruiting Others to Buy Him GunsRead the Press Release
PITTSBURGH, Pa. – A former resident of Jefferson County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of five years, to be followed by three years of supervised release, on his conviction on charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Peter Digiacomo, 32, formerly of Brockway, PA.
According to information presented to the court, on various dates between July 2016 and March 2017, Digiacomo recruited straw purchasers to buy a total of 20 guns, and acquired one additional stolen gun which he later transferred to another individual for drugs and cash. Digiacomo admitted to investigators that since he cannot purchase firearms due to prior convictions, including one for domestic violence, he solicited others to purchase firearms on his behalf. The straw purchasers provided false information on federal forms in order to facilitate the purchase of the firearms. Due to his prior convictions, Digiacomo is prohibited from purchasing or possessing firearms.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with a detective from the Allegheny County Sheriff’s Office, conducted this investigation.
Jackson Man Sentenced to over Six Years in Federal Prison for Trafficking Cocaine, Marijuana, and HydrocodoneRead the Press Release
Jackson, Miss. – Ance Payton, 42, of Jackson, was sentenced today by United States District Judge Tom S. Lee to 79 months in federal prison followed by three years of supervised release for possessing several illegal drugs with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
In 2017, the Jackson Police Department received several complaints from Crime Stoppers and concerned citizens about a home on Plantation Boulevard in Jackson. Law enforcement executed a search warrant at the home and found hundreds of grams of marijuana, powder cocaine, crack cocaine, and hydrocodone pills. They also found a digital scale and other evidence of drug-distribution activities. Payton was indicted on May 15, 2018, and pled guilty on July 19, 2018.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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. Former 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.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members in the investigation of this case.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Justin A. Sterling, 23, of Jackson, pled guilty today before U.S. District Judge Tom S. Lee to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 1, 2018, officers with the Clinton Police Department stopped a vehicle in which Sterling was a passenger for a traffic violation. Two firearms were found in the vehicle. Sterling, who had a prior felony of robbery, pleaded guilty to possessing the firearms.
Sterling will be sentenced on February 7, 2019 at 9:30 a.m., and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
U.S. Attorney Hurst commended the work of the Clinton Police Department and their cooperation with ATF agents and Project EJECT task force members. AUSA Erin Chalk is prosecuting the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former 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.
Iranian National Pleads Guilty to Conspiring to Illegally Export Products from the United States to IranRead the Press Release
Arash Sepehri, 38, a citizen of Iran, pleaded guilty on Nov. 7, to a federal charge stemming from his role in a conspiracy to cause the export of controlled goods and technology to Iran, in violation of U.S. Department of Commerce and military controls, as well as in contravention of sanctions imposed against Iran.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Special Agent in Charge Patrick J. Lechleitner of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.
Sepehri pleaded guilty in the U.S. District Court for the District of Columbia, to conspiracy to unlawfully export U.S. goods to Iran in violation of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, and to defraud the United States.
According to court documents filed in this case, Sepehri was an employee and a member of the board of directors of an Iranian company, Tajhiz Sanat Shayan, or Tajhiz Sanat Company (TSS). TSS and other companies involved in the conspiracy were listed by the European Union on May 23, 2011, as entities being sanctioned for their involvement in the procurement of components for the Iranian nuclear program. Through TSS and associated companies, Sepehri and others conspired to obtain high-resolution sonar equipment, data input boards, rugged laptops, acoustic transducers and other controlled technology from the United States without obtaining proper licenses and in violation of economic sanctions.
As stated in the court documents, Sepehri and his co-conspirators sought to evade legal controls through a variety of means, including the use of a variety of aliases, United Arab Emirates (UAE)-based front companies and an intermediary shipping company based in Hong Kong. Payments for the goods were arranged through the UAE.
The conspiracy charge in this case is a felony punishable by a statutory maximum of five years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Honorable Rosemary M. Collyer scheduled sentencing for Jan. 16, 2019.
This investigation was conducted jointly by agents from FBI’s Washington Field Office and HSI Washington, D.C.
The prosecution is being handled by Assistant U.S. Attorney Tejpal S. Chawla and Special Assistant U.S. Attorney Elizabeth Dewar for the District of Columbia, with assistance from Trial Attorney Patrick T. Murphy of the Counterintelligence and Export Control Section of the Justice Department’s National Security Division. Additional assistance was provided by Paralegal Specialist Matthew Ruggiero of the U.S. Attorney’s Office for the District of Columbia.
Iranian National Pleads Guilty to Conspiring to Illegally Export Products from the United States to IranRead the Press Release
WASHINGTON – Arash Sepehri, 38, a citizen of Iran, pleaded guilty on Nov. 7, to a federal charge stemming from his role in a conspiracy to cause the export of controlled goods and technology to Iran, in violation of U.S. Department of Commerce and military controls, as well as in contravention of sanctions imposed against Iran.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Special Agent in Charge Patrick J. Lechleitner of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.
Sepehri pleaded guilty in the U.S. District Court for the District of Columbia, to conspiracy to unlawfully export U.S. goods to Iran in violation of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, and to defraud the United States.
According to court documents filed in this case, Sepehri was an employee and a member of the board of directors of an Iranian company, Tajhiz Sanat Shayan, or Tajhiz Sanat Company (TSS). TSS and other companies involved in the conspiracy were listed by the European Union on May 23, 2011, as entities being sanctioned for their involvement in the procurement of components for the Iranian nuclear program. Through TSS and associated companies, Sepehri and others conspired to obtain high-resolution sonar equipment, data input boards, rugged laptops, acoustic transducers and other controlled technology from the United States without obtaining proper licenses and in violation of economic sanctions.
As stated in the court documents, Sepehri and his co-conspirators sought to evade legal controls through a variety of means, including the use of a variety of aliases, United Arab Emirates (UAE)-based front companies and an intermediary shipping company based in Hong Kong. Payments for the goods were arranged through the UAE.
The conspiracy charge in this case is a felony punishable by a statutory maximum of five years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Honorable Rosemary M. Collyer scheduled sentencing for Jan. 16, 2019.
This investigation was conducted jointly by agents from FBI’s Washington Field Office and HSI Washington, D.C.
The prosecution is being handled by Assistant U.S. Attorney Tejpal S. Chawla and Special Assistant U.S. Attorney Elizabeth Dewar for the District of Columbia, with assistance from Trial Attorney Patrick T. Murphy of the Counterintelligence and Export Control Section of the Justice Department’s National Security Division. Additional assistance was provided by Paralegal Specialist Matthew Ruggiero of the U.S. Attorney’s Office for the District of Columbia.
Indiana Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Mark C. Smith, age 29, of Indianapolis, Indiana was sentenced today to 97 months in federal prison followed by five years of supervised release on one count of Possession with Intent to Distribute Cocaine and one count of Possession with Intent to Distribute Marijuana. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, on May 24, 2016, Smith, while driving a vehicle on Interstate 30 near Malvern, Arkansas, was stopped by a state trooper for a traffic violation. After a K-9 alerted to the presence of a controlled substance, the vehicle was searched and an officer located packaged bundles under the steering column. The substance inside the bundles field tested positive for cocaine and weighed approximately 2,000 grams. Smith possessed $7,849.00 of U.S. currency on his person as well as a Walmart receipt for an I-phone purchased in Dallas on May 22, 2016.
The detectives submitted the drugs seized from Smith's vehicle (in Arkansas) to the Arkansas State Crime Lab, which confirmed that the substance recovered contained cocaine and weighed 1,966.5 grams.
On or about March 16, 2015, near midnight, Smith was stopped in a GMC Yukon after suspicious activity was observed by law enforcement in an industrial area in Evansville, Indiana. A K-9 alerted to the presence of a controlled substance in the vehicle and Smith was arrested for resisting law enforcement and for driving on a suspended driver's license. After obtaining a search warrant, the vehicle was searched and found to contain twenty gray duct taped packages each containing marijuana, weighing a total of 497 pounds (225 kilograms). Also seized were four cellular telephones from the vehicle and $2,082.00 from Smith's pocket.
A federal grand jury indicted Smith in April 2015 (Indiana) and in June 2016 (Arkansas), and he pled guilty in January 2018.
This case was investigated by the Arkansas State Police and the Indiana State Police. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Illegal Alien Who Fired at Officers Sentenced on Federal Drug Trafficking ChargesRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon announced today that Marcos Rodriguez Lopez, 34, a Mexican citizen located in Gaston, South Carolina, was sentenced to nearly 22 years in federal prison for conspiracy to distribute five kilograms or more of cocaine.
According to court documents, Lopez and others conspired to possess with intent to distribute and to distribute multiple kilograms of cocaine. On the morning of January 10, 2017, federal, state, and local authorities executed search warrants at Lopez’s residence and another nearby residence. As officers with the South Carolina Highway Patrol announced their presence and attempted to enter Lopez’s residence, Lopez fired one shot through the door where the officers were located before surrendering. Lopez—who was residing in the United States illegally—was ultimately held accountable for over 12 kilograms of cocaine.
Senior United States District Judge Joseph F. Anderson, Jr., sentenced Lopez to 262 months in federal prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Drug Enforcement Administration (“DEA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), ICE-Homeland Security, the State Law Enforcement Division (“SLED”), Lexington County Sheriff’s Department, Richland County Sheriff’s Department, Sumter County Sheriff’s Department, and Aiken County Sheriff’s Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Hudson County, New Jersey, Woman Admits Conspiracy to Promote Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, woman today admitted her role in a conspiracy to promote a voter bribery scheme, U.S. Attorney Craig Carpenito announced.
Lizaida Camis, 55, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to Count 2 of an indictment charging her with conspiracy to use the mail to promote a voter bribery scheme during the 2013 municipal election in Hoboken.
According to documents filed in this case and statements made in court:
Camis, Dio Braxton, and others, at former Hoboken City Council candidate Frank Raia’s direction, agreed to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Camis and others provided these voters with vote-by-mail applications and then delivered the completed applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis, Braxton and others promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Bank records show that voters who interacted with Camis and Braxton received $50 checks from an entity associated with Raia.
Raia and Braxton were indicted on Oct. 31, 2018, for their roles in the scheme.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2019.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
The charges and allegations against Raia and Braxton are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense Counsel: Brandon D. Minde, Esq., Cranford, New Jersey
Houma Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Peter G. Strasser announced that JACOB HIGGINBOTHAM, age 24, of Houma, was sentenced today after pleading guilty to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana. United States District Judge Susie Morgan sentenced HIGGINBOTHAM to 10 years’ incarceration and 5 years’ supervised release.
HIGGINBOTHAM is one of the eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that HIGGINBOTHAM conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Peter Giandalone, Julien Polk, Paul Melancon, Jeffrey Clines, James Hatch, Angel Renee Vidaure, Eulalio Torres-Cadenas, Delio Alfredo Lopez-Lopez, and Lindsey Lopez. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants Hatch, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages and phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Hot Springs Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Grealin Thomas, age 39, of Hot Springs, Arkansas was sentenced today to 96 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, in March 2017, investigators with the 18th East Drug Task Force and Homeland Security Investigations conducted a controlled purchase of methamphetamine from Thomas. The methamphetamine was later sent to the Arkansas State Crime lab where it tested positive for methamphetamine.
A federal grand jury indicted Thomas in July 2017, and he pled guilty in June 2018.
This case was investigated by the 18th East Drug Task Force and Homeland Security Investigations. Assistant United States Attorney David Harris prosecuted the case for the United States.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Peter G. Strasser announced that CELIO JAVIER JUAREZ-AGUILAR, age 25, a native of Honduras, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Eldon E. Fallon sentenced JUAREZ-AGUILAR to 3 months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on July 15, 2018, JUAREZ-AGUILAR was found in the United States after having been previously deported from the United States on February 25, 2014.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Harrison County man sentenced for his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Michael Lewis Woodyard, of Clarksburg, West Virginia, was sentenced today to five months probation for his participation in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Woodyard, age 27, was sentenced to five years probation. Woodyard pled guilty to one count of “False Statement to Acquire a Firearm” in January 2018. He admitted to making a false statement when purchasing two pistols in Harrison County in March 2017.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Office of the Attorney General has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.U.S. District Judge John Preston Bailey presided.
Georgia Man Sentenced to 27 Months in Prison for Transporting Illegal Aliens Across the CountryRead the Press Release
Jackson, Miss. – Joe Jones, Jr., 24, of Georgia, was sentenced today by United States District Judge Tom S. Lee to 27 months in federal prison followed by two years of supervised release for transporting illegal aliens across the United States, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
In June of 2018, Jones was being paid to drive a minivan full of illegal aliens from Louisiana to Georgia. On his way through Mississippi, a Mississippi Highway Patrol Officer stopped the van and found 10 illegal aliens inside, four of whom were deported from the United States during the past few years.
U.S. Attorney Hurst commended the work of the U.S. Immigration and Customs Enforcement and the Mississippi Highway Patrol in their investigation of this case.
Four Defendants Federally Charged in the State's Largest Methamphetamine SeizureRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging FERNANDO RAMOS-MEZA, 33, PETER MARTIN, 34, JAVIER LOPEZ-LOPEZ, 46, AND JUAN DANIEL VALDEZ-MENDOZA, 23, with multiple drug-trafficking violations. MARTIN is also charged with possession of an unregistered firearm. All four defendants were previously charged via federal complaint on October 5, 2018. The defendants remain in custody.
According to charging documents filed with the court, as a result of law enforcement operations initiated by the Cannon River Drug Task Force, officers executed a search warrant at a North Minneapolis home. During the search of the residence, officers located several items of contraband, a 12-gauge sawed-off pump shotgun, and approximately 191 pounds of methamphetamine (with packaging).
This case is the result of an investigation conducted by the Cannon River Drug Task Force, Homeland Security Investigations, and the Minneapolis Police Department.
Assistant United States Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
FERNANDO RAMOS-MEZA, 33
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
PETER MARTIN, 34
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
- Possession of an unregistered firearm, 1 count
JAVIER LOPEZ-LOPEZ, 46
Minneapolis, Minn.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
JUAN DANIEL VALDEZ-MENDOZA, 23
Kansas City, Kan.
Charges:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Fort Dodge Man Sentenced for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm was sentenced November 7, 2018, to twenty years in federal prison.
Carl Douglas Lambert, Jr. 47, from Fort Dodge, Iowa, was convicted of one count of conspiracy to distribute methamphetamine, one count of distribution of methamphetamine and one count of possession of a firearm in furtherance of drug trafficking.
At the plea hearing, Lambert, Jr. admitted that from January 2017 through December 2017 he and others distributed more than 3.5 kilograms of methamphetamine in the Fort Dodge, Iowa area. On November 4, 2017, officers found Lambert, Jr. possessed a .22 caliber pistol in his waistband and over 46 grams of actual (pure) methamphetamine. Lambert, Jr. admitted he intended to distribute the methamphetamine to other person(s) and that he carried the pistol for protection.
Lambert, Jr. was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lambert, Jr. was sentenced to 240 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Lambert, Jr. is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa Division of Narcotics Enforcement and Iowa Department of Criminal Investigations Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3056. Follow us on Twitter @USAO_NDIA.
Former Tesla Employee Charged in Embezzlement Scheme at TeslaRead the Press Release
SAN JOSE – A federal grand jury issued an indictment against Salil Parulekar today, charging him with engaging in an embezzlement scheme, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the indictment, during 2016 and 2017, Parulekar, 32, formerly of San Jose, orchestrated an embezzlement scheme at Tesla Inc. (“Tesla”). At the time, Parulekar was an employee in the Global Supply Management group at Tesla. He was responsible for overseeing Tesla’s relationship with certain suppliers for various parts and services related to Tesla automobiles. Parulekar allegedly used his role to initiate a scheme wherein he diverted money owed to one Tesla supplier and caused it to be paid to another supplier. In sum, Parulekar allegedly embezzled approximately $9.3 million.
According to the indictment, Parulekar learned in January 2017 that Tesla had terminated its supplier relationship with Schwabische Huttenwerke Automotive GmbH (“SHW”). At the time of the termination, SHW had only provided a limited number of sample products, specifically, motor pumps, to Tesla. Parulekar allegedly knew the termination meant that Tesla was withholding future payments to SHW and that Parulekar was not authorized to contravene this decision. Notwithstanding these facts, Parulekar redirected a series of payments intended for another supplier, Hota Industrial Manufacturing Co., Ltd. (“Hota”), and caused them to be paid to SHW.
The indictment alleges Parulekar caused the diversion of payments by falsifying invoices; creating fraudulent accounts payable documents, such as bank account information and wire instructions; and impersonating Hota employees. Specifically, Parulekar allegedly stole the identity of a Hota employee and, by impersonating the employee, deceived Tesla’s Accounts Payable division into switching the bank account information for Hota and SHW.
Parulekar was charged with nine counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum penalty for each count of wire fraud is twenty years’ imprisonment and a $250,000 fine. The maximum sentence for aggravated identity theft, in violation of 18 U.S.C. § 1028A, is two years in prison—to be served consecutively to the underlying felony—and a $250,000 fine. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI.
Former Police Officer Pleads Guilty to Sending Obscene Material to a ChildRead the Press Release
PROVIDENCE - A former Narragansett, RI, police officer pleaded guilty in federal court in Providence today to a charge of transfer of obscene material to a minor, announced United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Appearing before U.S. District Court Judge Chief Judge William E. Smith, Matthew C. Riley, 51, of Narragansett, admitted to the Court that in approximately late 2015 or early 2016, he began communicating with an individual via a website and through text messaging and other messaging communication technologies, such as Snapchat and Kik messenger. Early in their communications, the person with whom Riley was communicating told him that she was 15-years-old and that she was a 9th grade student. On May 9, 2016, in a series of texts with the 15-year-old, Riley discussed what time her high school day ended; that she was in 9th grade; and that she did not turn 16 until October.
During his communications with the 15-year-old, Riley identified himself as “Chris M.” and told her he was 29-years-old, lived in Boston, was in the Navy, and worked as a physical therapist.
Over the course of a few months, at times stopping for days or weeks, and then resuming, Riley’s communications with the 15-year-old included sexually explicit communications, including graphic, sexually explicit pictures of himself and videos of himself committing a sex act.
Riley is scheduled to be sentenced on February 1, 2019.
The transfer of obscene matter to another individual who has not attained the age of 16 years is punishable by statutory penalties of up to 10 years in federal prison, 3 years supervised release, and a fine of $250,000. Additionally, upon conviction, Riley will be required by statute to register as a sex offender.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the FBI and Rhode Island State Police.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Nebraska State Patrol for their continued assistance investigating and preparing this matter for prosecution.
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Former Montgomery Lawyer Receives 37-Month Sentence for Defrauding HUD of over $1 MillionRead the Press Release
Montgomery, Ala. – On Tuesday, November 6, 2018, Christopher B. Pitts, 48 years old and a Georgia resident who was previously a practicing attorney in Montgomery, Alabama, received a 37-month sentence for devising a scheme to commit wire fraud affecting a financial institution. United States District Judge L. Scott Coogler sentenced Pitts after he pleaded guilty to defrauding the United States Department of Housing and Urban Development (HUD).
According to court documents, between 2005 and 2008, Pitts served as a closing attorney for the sales of all homes owned by HUD in northern and central Alabama. As the closing attorney, it was Pitts’ job to receive purchase money, pay closing costs, and transmit to HUD the remaining purchase money. As Pitts admitted when he pleaded guilty, on numerous occasions, he did not actually remit payments to HUD. As a result of Pitts’ fraud, HUD never received the money it was owed for the sale of HUD-owned houses.
At the sentencing hearing, Judge Coogler found that Pitts was responsible for causing a total loss to HUD of $1,090,888.53. The judge ordered that Pitts make full restitution to HUD upon his release from prison.
This case was investigated by HUD’s Office of Inspector General. Assistant U.S. Attorney Jonathan S. Ross prosecuted the case.
Former Major at Angola Prison Convicted of Beating a Handcuffed and Shackled InmateRead the Press Release
Daniel Davis, 41, a former Major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury today in federal court for beating an inmate who was handcuffed, shackled, and not resisting. In a previous trial in January, Major Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath. Four other officers—former Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up. At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.
After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment. The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a bloody gash under his eye, a dislocated shoulder, broken ribs, and a collapsed lung.
“Mr. Davis abused the justice system by beating an inmate, writing false reports, and using his influence and power as a corrections officer to encourage others to lie,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to prosecute correctional officers who violate federal criminal law.”
“Our office is committed to protecting the civil rights of all citizens and ensuring that government employees in positions of authority don’t abuse that authority,” said U.S. Attorney Brandon J. Fremin. “I want to thank the Civil Rights Division of the Department of Justice, the FBI, and the Louisiana Office of Inspector General for their work on this matter. “
"Charged with protecting the civil rights of others, to include those in custody, is a responsibility the FBI takes very seriously,” said Eric J. Rommal, FBI New Orleans Special Agent in Charge. “Law enforcement officers and correctional officers acting under the color of law must ensure a person's civil rights are not violated. The jury's decision today reinforces the FBI's commitment that civil rights and color of law violations will not be tolerated.”
“Corrections officers are given great authority and power in our system because public safety depends on them doing their jobs well,” said Louisiana Inspector General Stephen Street. “When those corrections officers commit crimes by choosing to abuse their power, as defendant Davis did in this case, they must be held accountable, or public trust in the system suffers. The jury’s guilty verdict should send a clear message that we have zero tolerance for it and will continue to aggressively pursue these cases whenever and wherever they may arise. I wish to thank the FBI, United States Attorney Brandon Fremin and the prosecutors from the DOJ Civil Rights Division for their outstanding work on this case.”
No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. The case was tried by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Frederick A. Menner, Jr., of the Middle District of Louisiana.
Former Law Office Manager Sentenced to 21 Months in Federal PrisonRead the Press Release
Memphis, TN – Misty West, 41, of Olive Branch, Mississippi was sentenced to serve 21 months in federal prison for filing false tax returns for calendar years 2013-2015. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to a superseding indictment, returned by the federal grand jury in February of this year, West, the former office manager, bookkeeper and paralegal at the Fowler Law Firm, engaged in a scheme to defraud the law firm and its owner, Charles Wesley Fowler, of more than $400,000 between August 2011 and July 2016.
The superseding indictment also alleged that West filed false tax returns for calendar years 2013-2015 by substantially underreporting her total income for those years. West entered a guilty plea to the tax charges in July.
United States District Judge Thomas L. Parker, also ordered West to pay restitution to the United States in the amount of $80,974 and to the Fowler Estate and its insurer CAN Financial in the total amount of $410,000.
U.S. Attorney D. Michael Dunavant said, "This defendant victimized her employer and defrauded the United States by using her position of trust to commit crimes of dishonesty. Financial fraud does not pay, and this office will aggressively prosecute these cases to hold offenders accountable and provide restitution to the victims and the government."
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations Division.
Assistant U.S. Attorneys Carroll L. Andre´ III and Lorraine Craig prosecuted the case on the government’s behalf.
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Florida Man Sentenced for Cocaine ConspiracyRead the Press Release
U.S. Attorney Peter Strasser announced that MIGUEL GAMEZ, age 32, of Fort Meyers, Florida, was sentenced today for conspiracy to distribute 5 kilograms or more of cocaine hydrochloride and for obstruction of justice.
GAMEZ pled guilty on June 21, 2017, to conspiring with others to distribute more than 5 kilograms of cocaine hydrochloride, and to obstructing justice by attempting to destroy a cellular telephone.
Chief Judge Nannette Jolivette Brown sentenced GAMEZ to 70 months in prison, as well as 3 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating the matter. Assistant U.S. Attorney Jonathan L. Shih is in charge of the prosecution.
Florida Businessman Pleads Guilty to Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Florida businessman pleaded guilty today to conspiracy to commit wire fraud for orchestrating a scheme that caused over $1 million in losses to multiple victims.
According to court documents, Armando Almirall, 37, of Oviedo, was one of the managing principals of a company called Aura Exchange LLC (AURA). Almirall and his co-conspirators, through AURA, promised their clients that they could help obtain funding for a host of business purposes, such as real estate transactions and television projects. Instead, Almirall and his co-conspirators spent large portions of their clients’ funds on personal expenses, cash withdrawals and wire transfers with the clients’ knowledge or consent. In order to induce the victims to provide AURA with money, Almirall and his co-conspirators made a host of fraudulent misrepresentations, including representing to clients that they were guaranteed to receive their initial equity deposits back when, in fact, none of the victims ever received any money from AURA. Almirall claimed that AURA had offices in Zurich, London, and New York when no such offices existed. Almirall also provided clients with fraudulent bank documents showing that AURA could obtain millions (and in one instance, billions) in funds for their clients. In total, the victims suffered losses of at least $1.6 million.
Almirall pleaded guilty to conspiracy and wire fraud and faces a maximum penalty of 20 years in prison when sentenced on Feb. 8, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Jamar K. Walker is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-392.
Five Individuals Connected with Connecticut Energy Cooperative Charged with Misusing FundsRead the Press Release
United States Attorney John H. Durham, Special Agent in Charge Brian C. Turner of the FBI’s New Haven Division, and Special Agent in Charge Kristina O’Connell of IRS Criminal Investigation in New England today announced that, on November 6, 2018, a federal grand jury in New Haven returned two indictments charging a total of five individuals connected with a southeastern Connecticut energy cooperative with offenses related to the theft of federal funds. The indictments were unsealed today.
As alleged in both indictments, the Connecticut Municipal Electric Energy Corporation (“CMEEC”) is a cooperative public corporation that permits municipal electric utilities in Connecticut to join together to furnish electric power in the municipalities’ areas of operation. CMEEC’s members included the City of Norwich, the City of Groton, the Borough of Jewett City, the Second Taxing District of the City of Norwalk, the Third Taxing District of the City of Norwalk, and the Town of Bozrah. As the owners of CMEEC, each member town executed an agreement through its respective municipal electric utility outlining the terms and conditions under which the CMEEC members participated together in CMEEC. The CMEEC membership agreement provides that excess revenues are designated as “CMEEC Margin,” and that the excess revenues are to be returned to the member towns to help keep electricity costs stable for ratepayers.
Between 2010 and 2015, CMEEC received more than $9 million dollars from the U.S. Department of Energy. CMEEC member towns also received funds from federal grants.
Charged in the first indictment are:
- DREW RANKIN, 57, of Columbia. Rankin is the chief executive officer of CMEEC.
- JAMES SULLIVAN, 52, of Norwich. Until October 2015, Sullivan was a City of Norwich representative and the chairperson of the CMEEC Board of Directors.
- JOHN BILDA, 54, of Norwich. Bilda is the City of Norwich representative on the CMEEC Board of Directors and an employee of the City of Norwich.
- EDWARD DeMUZZIO, 77, of Groton. DeMuzzio was a City of Groton representative and the secretary of the CMEEC Board of Directors.
- EDWARD PRYOR, 62, of Groton. Pryor is the chief financial officer of CMEEC.
The first indictment alleges that Rankin, Sullivan, Bilda, DeMuzzio and Pryor planned, organized and directed lavish trips outside of Connecticut, including trips to the Kentucky Derby in 2015 and 2016, and to a luxury golf resort in West Virginia in 2015. These trips did not relate to CMEEC business or CMEEC Member business, but were intended to personally benefit, compensate and reward the co-conspirators, their family members, friends and associates. Costs for the trips, which totaled more than $800,000, included travel expenses, private chartered airfare, first-class hotel accommodations, meals, tickets to sporting events, golf fees, souvenirs and gifts.
It is alleged that the co-conspirators did not seek the approval of the CMEEC Board of Directors for these trips and did not include the costs for the trips as budget expenses in the annual general administrative budgets proposed to and approved by the CMEEC Board of Directors. The co-conspirators directed that the funds used to pay for the trips come from the CMEEC Margin account, without a vote of the CMEEC Board of Directors and without the written consent of the member towns as required by the CMEEC membership agreement. It is further alleged that, in January 2015, without a vote of the CMEEC Board or consent of the member towns, Pryor directed that a new “contra-margin” account be created for the costs of the Kentucky Derby trips to come from the CMEEC Margin account.
The indictment alleges that the CMEEC Board of Directors had committees, including the compensation committee, which was responsible for determining the compensation of Rankin as CMEEC’s chief executive officer. Bilda and DeMuzzio were representatives on the compensation committee. On February 25, 2016, Bilda made a motion at a CMEEC Board of Directors meeting to modify the compensation package of Rankin retroactive to January 1, 2016. The motion was seconded by DeMuzzio. The modification increased Rankin’s overall compensation.
It is further alleged that, in response to reporter inquiries about the Kentucky Derby and golf trips, Rankin underreported the costs of the trips, omitted the names of attendees who were not CMEEC employees or board members, and made other false statements related to how the trips were funded. After the trips were known to the general public, CMEEC canceled a reservation it had made for the 2017 Kentucky Derby, and was refunded only approximately $90,000 of the $298,960 it had prepaid for the trip in May 2016.
The indictment charges each defendant with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years, and three counts of theft concerning a program receiving federal funds, an offense that carries a maximum term of imprisonment of 10 years.
The second indictment charges Rankin and Sullivan with engaging in a conspiracy to pay for Sullivan’s personal expenses with CMEEC funds. It is alleged that Sullivan submitted his personal expenses on a regular basis via “expense reports” that Rankin approved and directed to be paid out of CMEEC funds. Sullivan’s personal expenses were charged to the CMEEC’ account for lobbying expenses, even though Sullivan was not a registered lobbyist for CMEEC. Between January 2012 and August 2015, Rankin authorized the payment of numerous personal expenses for Sullivan, including airfare for dozens of flights Sullivan took, trips for Sullivan and his family members to attend the Kentucky Derby in 2013, 2014, and 2015, and airfare for a flight for Sullivan’s wife to travel to Key West, Florida, in December 2014.
The second indictment charges Rankin and Sullivan with one count of conspiracy and three counts of theft concerning a program receiving federal funds.
“CMEEC has received millions of dollars in grants from the U.S. Department of Energy,” said U.S. Attorney Durham. “Instead of protecting these funds and returning excess revenue to member towns and ratepayers, these defendants are alleged to have used the CMEEC Margin Account as a secret slush fund to pay for lavish junkets for themselves and their family and friends, as well as for other inappropriate expenses. The U.S. Attorney’s Office is committed to working with our federal law enforcement partners to safeguard public funds and prosecute those who steal from the public.”
“At a time when there are Connecticut residents struggling to afford basic necessities such as food, housing and electricity, the FBI and its law enforcement partners will continue to hold public officials, and those with responsibility for public funds, accountable for fraud, waste and abuse of those funds,” said FBI Special Agent in Charge Turner.
“The criminal conduct alleged in the indictment is yet another example of those abusing high-level corporate positions to personally benefit at the expense of others,” said IRS Criminal Investigation Special Agent in Charge O’Connell. “The funds CMEEC allegedly misappropriated for these extravagant trips was motivated by greed, to the detriment of the member towns and ratepayers. IRS will continue to support these important white-collar investigations, working alongside our federal partners and the U.S. Attorney’s Office.”
Each of the five defendants appeared this afternoon before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty to the charges, and was released on a $100,000 bond.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division, with the assistance of the U.S. Department of Energy. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Sarah P. Karwan.
Final Defendant in Staged Automobile Accident Insurance Fraud Conspiracy SentencedRead the Press Release
Marvin David Ramirez Sent to Prison for his Role in the Fraud at the Primary Rehab Center in Wyoming, Michigan
GRAND RAPIDS, MICHIGAN — Marvin David Ramirez, 45, of Grand Rapids, Michigan, was sentenced to prison in federal court yesterday. Ramirez pled guilty in June of this year to conspiracy to commit mail fraud related to a staged automobile accident ring that operated at Primary Rehab Center in Wyoming. United States District Judge Paul L. Maloney sentenced Ramirez to 37 months in prison. When imposing the sentence, Judge Maloney commented that "Michigan residents pay some of the highest auto insurance rates in the country and fraud schemes like the present case contribute significantly to these high premiums." The court also ordered Ramirez to pay restitution of $298,992.29 to the automobile insurance companies that he defrauded.
"Ramirez and his cohorts operated a sophisticated scheme over several years in our community," stated U.S. Attorney Andrew Byerly Birge. "The well-deserved sentence imposed by the court reflects the leadership role played by Ramirez and the fact that he greatly profited from this fraud at the expense of Michigan’s automobile insurance system."
The staged automobile accident ring operated at Primary Rehab from December 2011 to May 2014. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that insurance claims could be made with their automobile insurance companies. The managers of the clinics and others working with them then told the accident participants what symptoms to present to physicians affiliated with the ring so that they would sign a prescription for physical therapy. The accident participants then sought unnecessary therapy treatment at the clinics. Typically, after a few therapy sessions, the accident participants signed blank therapy treatment forms that were later signed by massage therapists to make it appear as if the accident participants obtained treatment when they truly did not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided. The clinic billed automobile insurers over $1,000,000.00, and obtained fraudulent payments in excess of $600,000.00.
"Elaborate insurance fraud schemes like the one perpetrated in this case disrupt the economy and cause law-abiding citizens to pay more for their coverage," said HSI Special Agent in Charge Steve Francis. "HSI is committed to working with our law enforcement partners to bring down organized criminals that have no concern for the law or their affected victims."
"These defendants engaged in conduct that drives up insurance rates and health care costs," said Timothy Slater, Special Agent in Charge, Detroit Division of the FBI. "The FBI remains committed to working alongside our partners at Homeland Security Investigations and the U.S. Attorney’s Office to ensure that individuals who engage in this type of fraudulent conduct are brought to justice."
Three other individuals were also convicted and sentenced in conjunction with the staged auto accident insurance fraud scheme at Primary Rehab Center:
• Maria Del Carmen Ramirez-Rodriguez, 64, Wyoming, Michigan, part-owner of Primary Rehab (40 months’ imprisonment)
• Alder Hernandez, 45, Tampa, Florida, part-owner of Primary Rehab (37 months’ imprisonment)
• Osvaldo Rivas-Martinez, 46, Port Richey, Florida, patient-recruiter for Primary Rehab (3 years’ probation)
The sentencing of Marvin Ramirez completes a multi-year prosecution of individuals in West Michigan engaged in defrauding Michigan automobile insurers. Previously sentenced for their roles at three other clinics, Revive Therapy, Renue Therapy, and H&H Rehab, were:
• Belkis Soca-Fernandez, 58, Tampa, Florida, part-owner of Revive Therapy and Renue Therapy (135 months’ imprisonment)
• David Sosa-Baladron, 43, Tampa, Florida, part-owner of Revive Therapy and Renue Therapy (120 months’ imprisonment)
• Antonio Ramon Martinez-Lopez, 35, Tampa, Florida, manager of Revive Therapy (87 months’ imprisonment)
• Gustavo Acuna-Rosa, 30, Versailles, Kentucky, manager of Renue Therapy (32 months’ imprisonment)
• Yoisler Herrera-Enriquez, 31,Wyoming,Michigan, manager and massage therapist, H&H Rehab (57 months’ imprisonment)
• Eduardo Pardo-Oiz, 35, Nashville, Tennessee, recruiter and accident participant (2months’ imprisonment)
• Dolis Rojas-Lopez, 31, Wyoming, Michigan, recruiter and accident participant (3 years’ probation)
• Yosvany Gonzalez-Duran, 42, Lansing, Michigan, recruiter and accident participant (1 year probation)
The Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, in Grand Rapids, Michigan, conducted the investigation of the case. Assistant United States Attorneys Ronald M. Stella and Timothy VerHey handled the prosecution.
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Fifth Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, De la Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States. He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.
De la Cruz is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.
De la Cruz is the fifth defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Fifth Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, De la Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States. He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.
De la Cruz is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.
De la Cruz is the fifth defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Federal Jury Convicts a Marshall County Man for Distributing MethamphetamineRead the Press Release
BIRMINGHAM – A federal jury Wednesday convicted a Marshall County man for distributing and possessing with the intent to distribute methamphetamine, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp Jr.
The jury returned a guilty verdict against Michael Pedro Andres, 31, after two days of testimony before U.S. District Court Judge Abdul Kallon. A sentencing date has been set for February 19, 2018 at 10:30 a.m. in Birmingham.
The evidence at trial showed that in August 2017, on two separate occasions, Andres unlawfully distributed 36.127 grams of methamphetamine and 49.336 grams of methamphetamine, totaling over a pound of methamphetamine. On August 16, 2017, Andres was arrested for possessing 421.10 grams of methamphetamine with the intent to distribute.
“My office is dedicated to stop the influx of dangerous drugs like methamphetamine into our communities,” Town said. “The fact that more than a pound of this illegal narcotic is off the streets is significant as are the penalties associated with this criminal activity. This defendant faces a potential life sentence for his role in putting this poison on our streets. So to other drug dealers out there, rest assured, we will pursue you and stop you.”
“Drug trafficking is a dangerous business that ruins lives every day,” Sharp said. “Thanks to the guilty verdict handed down today, north Alabama is safer with Anders off the street and unable to carelessly endanger our communities with the poison he was peddling.”
FBI, along with the DeKalb County Drug Task Force and FBI North Alabama Safe Streets Task Force investigated the case, which Assistant U.S. Attorney Laura Hodge prosecuted.
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Federal Jury Convicts Buffalo Man of Drug Distribution Which Resulted in Overdose DeathRead 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 a federal jury has convicted Dontrell Wise, 32, of Buffalo, NY, of conspiracy to possess with intent to distribute heroin, butyryl fentanyl, fentanyl, cocaine, and crack cocaine; possession with intent to distribute butyryl fentanyl; and distribution of fentanyl causing death. As a result of Wise’s criminal history, the “death results” charge carries with it a mandatory sentence of life in prison.
Assistant U.S. Attorneys Michael J. Adler and Brendan T. Cullinane, who handled the prosecution of the case at trial, stated that between mid-November of 2017 and November 23, 2017, the defendant distributed fentanyl which caused the death of a 28 year old female in Cheektowaga, NY. The evidence at trial established that Wise sold approximately 10 grams of a substance containing fentanyl which ultimately was injected by the woman, resulting in her overdose death. Hours later, the Cheektowaga Police Department responded to the scene to find the victim dead, and a wax envelope with fentanyl residue left behind.
Two weeks earlier, on November 9, 2017, the defendant was stopped by Buffalo Police officers in a rental vehicle with heavily tinted windows. Wise was found in possession of over $8,000 in cash, while a co-conspirator, Jerell Weathersby, had a quantity of butyryl fentanyl. The evidence further established that the defendant was a central member of a larger conspiracy crossing state lines, involving the distribution of narcotics in both Buffalo, NY, and Bradford, PA.
Wise was arrested along with co-defendants Lemario Jones and Jerell Weathersby. Jones was convicted of distribution of a controlled substance and is awaiting sentencing. Weathersby was convicted of possession with attempt to distribute butyryl fentanyl and sentenced to 21 months in prison.
Today’s verdict is the result of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert, the Buffalo Police Department, under the direction of Police Commissioner Byron Lockwood, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Cheektowaga Police Department, under the direction of Chief David J. Zack.
Sentencing is scheduled for February 14, 2019, at 3:00 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial of the case.
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Duck Boat Captain Indicted for Misconduct, Negligence Resulting in 17 Deaths at Table Rock LakeRead the Press Release
SPRINGFIELD, Mo. – The captain of the duck boat that sank at Table Rock Lake last summer, resulting in the deaths of 17 people, was indicted by a federal grand jury today.
“Our entire community was shocked and saddened by the loss of 17 lives in this tragic event last summer,” U.S. Attorney Tim Garrison said. “Today’s indictment alleges that the misconduct, negligence and inattention to duty by the ship’s captain caused or contributed to the loss of those lives.
“This remains an active and ongoing investigation,” Garrison added. “To better enable our office in its urgent pursuit of justice through this investigation, we have requested various courts presiding over the related civil lawsuits to allow our intervention and stay certain manners of discovery to prohibit those lawsuits from impeding or jeopardizing our work. Today’s indictment illustrates the urgency our investigative team has shown in its pursuit so as not to unnecessarily burden other legal avenues utilized by victims.”
Kenneth Scott McKee, 51, of Verona, Mo., was charged in a 17-count indictment returned by a federal grand jury in Springfield, Mo. McKee was the captain of Stretch Duck 7, operated by Ripley Entertainment, Inc. The company operated duck boat tours in Branson, Mo., and on Table Rock Lake and Lake Taneycomo.
Today’s indictment charges McKee with misconduct, negligence, or inattention to duty by a ship’s officer, resulting in the death of another person. McKee is charged with one count for each of the 17 passengers (including one crew member) who died when Stretch Duck 7 sank on July 19, 2018.
The federal indictment alleges that McKee committed a number of acts of misconduct, negligence, and inattention to his duties while piloting Stretch Duck 7 both before and during severe weather conditions.
McKee allegedly failed to properly assess incoming weather prior to entering the vessel on the water. At the time McKee drove the vessel into the water, according to the indictment, there was lightning in the area and severe weather approaching. The indictment also alleges that McKee failed to properly assess the nature of the severe weather while the vessel was on the water.
McKee allegedly operated Stretch Duck 7 in violation of the conditions and limitations specified in the vessels’ certificate of inspection. When severe weather (including increased wind speed) arrived at the vessel’s location, the indictment says, McKee failed to instruct passengers to don personal flotation devices. He allegedly also failed to immediately increase speed and head to the nearest shore. He allegedly caused or allowed the vessel’s plastic side curtains to be lowered, which created a barrier over the vessel’s exits in the event of a need to abandon ship.
The first time the vessel’s bilge alarm sounded, the indictment says, McKee failed to raise the side curtains, failed to instruct passengers to don personal flotation devices, and failed to prepare to abandon ship. The second time the vessel’s bilge alarm sounded, the indictment says, McKee again failed to raise the side curtains, failed to instruct passengers to don personal flotation devices, and failed to prepare to abandon ship. McKee allegedly failed to prepare to abandon ship when there was an unacceptable loss of freeboard on the vessel as well. (Freeboard refers to distance from the waterline to the upper deck level; a loss of freeboard is when waves are overtopping the freeboard, thus causing the ship to fill with water.)
The indictment alleges that these acts of misconduct, negligence, and inattention to duty separately and collectively caused the lives of 17 persons on board Stretch Duck 7 to be lost.
Under federal statutes, a conviction for this offense is subject to a sentence of up to 10 years in federal prison without parole on each count of conviction, plus a fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of any convicted defendant is determined by the court based on the advisory sentencing guidelines and other statutory factors.
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 Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Coast Guard Investigative Service, the Missouri State Highway Patrol, the Stone County, Mo., Sheriff’s Department, the Taney County, Mo., Sheriff’s Department, the Branson, Mo., Police Department, the Missouri Attorney General’s Office, the Stone County, Mo., Prosecutor’s Office, and the Taney County, Mo., Prosecutor’s Office.