Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 28 September 2018
Etters Man Indicted for Armed Bank RobberyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brandon Black, age 34, of Etters, Pennsylvania, was indicted on September 26, 2018, by a federal grand jury for armed bank robbery.
According to United States Attorney David J. Freed, the indictment alleges that Black robbed the S&T Bank in Camp Hill, Pennsylvania, with a knife on August 31, 2018, taking approximately $2,823.
The case was investigated by the Federal Bureau of Investigation and the Camp Hill Borough Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for twenty-five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Elma Man Sentenced for Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kevin D. Waczkowski, 34, of Elma, NY, who was convicted of possession of child pornography, was sentenced to 36 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that on April 15, 2016, the Federal Bureau of Investigation’s Violent Crimes Against Children Task Force executed a search warrant at the defendant’s residence and seized several electronic devices. Forensic examination determined that Waczkowski was in possession of thousands of images of child pornography, some of which depicted prepubescent children less than 12 years of age, and some of which depicted images of violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
# # # #EOIR Announces Largest Ever Immigration Judge InvestitureRead the Press Release
The Executive Office for Immigration Review (EOIR) announces the investiture of 46 immigration judges, including two assistant chief immigration judges, marking for the second month in a row the largest class in the agency’s history.
“At this point in history your work is vitally important. The case backlog has reached more than 760,000. Great effort is surely needed,” said Attorney General Jeff Sessions at today’s investiture. “This situation is unacceptable. It cannot continue. Our nation’s chief executive supports you and all who strive to make our immigration system work.”
Attorney General Jeff Sessions appointed these new judges after a thorough application process and welcomed them during a ceremony held Sept. 28, 2018. Chief Immigration Judge MaryBeth Keller presided over the investiture held at the Department of Justice’s Great Hall in Washington, D.C.
“EOIR continues to make great progress in hiring the immigration judges needed to reduce a backlog of more than 760,000 pending immigration court cases,” said James McHenry, Director of EOIR. “Alongside our efforts to improve immigration judge productivity and modernize our information technology systems, growing our immigration judge corps remains a top agency priority.”
In 2017, Attorney General Sessions announced a “streamlined hiring plan” promoting the use of clear deadlines and efficient hiring processes, resulting in a reduction of 74 percent in the time it takes to onboard immigration judges since then. Since the end of January 2017, 128 immigration judges have been sworn in. EOIR anticipates two additional hiring classes this fall which will make for over 100 immigration judges hired during 2018.
“EOIR now has 395 immigration judges, an increase of 30 percent since January 2017,” said McHenry. “While we are pleased to welcome this historic class of judges, we are not done and expect additional hiring before the end of this year.”
The names of each new judge along with their assigned courts and biographical information is found in a notice issued by EOIR here.Duquesne Residents Charged with Violating Drug Laws following Investigation by DEA and Local PoliceRead the Press Release
PITTSBURGH, PA - Two residents of Duquesne, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on September 18 and unsealed today, named Donte Taylor, age 36,and Ericka Smith, age 38, as defendants.
According to the indictment presented to the court, on or about May 10, 2018, Taylor possessed with intent to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance, and quantities of mixtures and substances containing detectable amounts of cocaine, a Schedule II controlled substance, heroin, a Schedule I controlled substance, fentanyl, a Schedule II controlled substance and marijuana, a Schedule I controlled substance. The indictment charges Smith with aiding and abetting Taylor with commission of the offense.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the City of Duquesne Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Sentenced to Prison for his Involvement in National Conspiracy to Sell Identity Documents to Illegal AliensRead the Press Release
A Dominican national was sentenced to prison today for his role in a scheme to sell the identities of Puerto Rican U.S. citizens and corresponding identity documents to individuals illegally residing in the United States. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service Chicago Division made the announcement.
Reynaldo Rodriguez-Canario, aka Reinaldo Rodriguez, Reynaldo Rodriguez, Reinaldo Canario, Jose Almonte, Jose Martinez, Matatan and Ciego, 47, a citizen of the Dominican Republic residing in Puerto Rico, was sentenced to serve 57 months in prison followed by three years of supervised release by U.S. District Judge Aida M. Delgado-Colon of the District of Puerto Rico. Rodriguez-Canario pleaded guilty on Feb. 16, to conspiracy to possess and transfer identification documents, conspiracy to encourage an alien to reside in the United States for financial gain, and aggravated identity theft.
“Rodriguez-Canario and his co-conspirators sold identity documents to illegal aliens knowing that those documents would be used to commit crimes, including Social Security fraud,” said Assistant Attorney General Benczkowski. “The Department of Justice and its law enforcement partners will not tolerate criminal aliens who undermine the integrity of the U.S. immigration system. We will aggressively enforce U.S. immigration laws and seek stiff penalties against those who violate them.”
“Identity theft poses a severe threat to public safety by potentially enabling those with criminal intent to travel to or remain in the United States,” said HSI Executive Associate Director Benner. “HSI will continue to utilize its unique authorities, working closely with our law enforcement counterparts, to combat this crime and ensure justice for the victims.”
“The events of today serve as yet another example of the unending dedication of the Postal Inspection Service and its law enforcement partners to halt the devastating effects of identity theft,” said Inspector in Charge Goldberg. “Those who engage in this type of fraud must learn they cannot escape detection and will be brought to justice. The sentencing of Rodriguez-Canario is a victory for all who suffered financial and emotional distress because of his actions.”
According to admissions in his plea agreement, Rodriguez-Canario obtained identity documents of Puerto Rican U.S. citizens, usually consisting of birth certificates, social security cards and driver’s licenses, and shipped them to co-conspirators in the United States. Further, the plea agreement states that his co-conspirators sold social security cards and corresponding Puerto Rican birth certificates to individuals illegally residing on the mainland United States for prices ranging from $500 to $1,300 per set. The defendant admitted that the co-conspirators used money transfer services and the U.S. mail to complete their illicit transactions. Rodriguez-Canario also admitted that he knew that the customers who purchased the identity documents intended to commit social security fraud and other criminal offenses.
ICE’s Homeland Security Investigations (HSI) Chicago and the U.S. Postal Inspection Service led the investigation with assistance from HSI San Juan, Puerto Rico. The HSI Attaché Office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support, with assistance from ICE and U.S. Postal Inspection Service offices around the country.
Trial Attorneys Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website at: www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at: www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
Colombian Veterinarian Pleads Guilty in Brooklyn Federal Court to Heroin Importation ConspiracyRead the Press Release
Andres Lopez Elorez pleaded guilty today before United States Magistrate Judge Robert M. Levy in federal court in Brooklyn to conspiring to import heroin into the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, announced the guilty plea.
Elorez and his co-conspirators, based in Colombia, smuggled heroin into the United States using various methods to conceal narcotics from law enforcement, including the surgical implantation of liquid heroin into the bellies of puppies. When the puppies arrived in the United States from Colombia, the heroin was surgically removed from their bodies. Between September 8, 2004 and January 1, 2005, Elorez and his co-conspirators imported one kilogram or more of heroin into the United States. Elorez was extradited from Spain to the United States in May 2018.
When sentenced, Elorez faces a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment. Upon completion of his sentence, Elorez faces deportation from the United States.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan D. Reilly and Alicia N. Washington are in charge of the prosecution.
The Defendant:
ANDRES LOPEZ ELOREZ
Age: 39
Country of Birth: ColombiaE.D.N.Y. Docket No. 5-CR-835 (S-1) (SJ)
Buffalo Man Charged with Selling Fentanyl That Caused Serious Bodily InjuryRead 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 grand jury has returned an indictment Julian Beavers, a/k/a Ock, a/k/a Marcel Ceasar, a/k/a BJ, 32, of Buffalo, NY, with possession with intent to distribute and distribution of fentanyl and acetyl fentanyl causing serious bodily injury, conspiracy to possess with intent to distribute heroin, furanyl fentanyl, acetyl fentanyl, and fentanyl, possession with intent to distribute, and distribution of, heroin, fentanyl, and furanyl fentanyl. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorneys Emmanuel O. Ulubiyo and Michael J. Adler, who are handling the case, stated that according to the indictment and a previously filed complaint, the Drug Enforcement Administration and the Cheektowaga Police Department had been conducting an investigation into the narcotics trafficking activities of the defendant, a heroin and fentanyl distributor with a large customer base in the Buffalo
On September 19, 2017, Beavers sold acetyl fentanyl and fentanyl, causing serious bodily injury to an individual identified as E.R.
On November 21 and November 28, 2017, investigators conducted two undercover purchases of heroin from Beavers. The defendant obtains heroin and fentanyl from an unidentified source of supply.
Beavers is scheduled to be arraigned on October 1, 2018 at 10:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Border Patrol Agent Arrested for Firearms OffensesRead the Press Release
TUCSON, Ariz. – On Sept. 25, 2018, Ramon Antonio Monreal-Rodriguez, 37, of Vail, Ariz., a U.S. Border Patrol agent assigned to the Three Points, Ariz. station, was arrested for conspiracy to make false statements in connection with the acquisition of firearms and aiding and abetting the commission of such offenses.
The indictment alleges that Monreal conspired to unlawfully acquire firearms on behalf of other individuals. As part of the conspiracy, Monreal and another co-defendant provided cash and instructions to a third co-defendant to buy firearms from licensed firearms dealers. The purchasing defendant would then make false statements and representations to the firearms dealers. Monreal has been employed as a U.S. Border Patrol agent for approximately ten years, and resigned upon his arrest.
The investigation in this case is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-18-01905-001-TUC-JAS
RELEASE NUMBER: 2018-124_Monreal-Rodriguez
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Amite Woman Pleads Guilty to Conspiring to Obtain Forced Labor from Woman with DisabilitiesRead the Press Release
Bridget Lambert, 21, pleaded guilty on Thursday, Sept. 27 in the Eastern District of Louisiana to one count of a forced labor conspiracy for conspiring with members of her family to obtain forced labor from D.P., a woman with cognitive disabilities.
At the plea hearing, Lambert admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, she conspired with other members of her family to obtain D.P.’s uncompensated household labor and services by a number of means, including by force and threat of force. Lambert admitted that, as part of the conspiracy, she and the other conspirators forced D.P. to live in a locked shed in the backyard and to perform housework and yard work in exchange for food and water. The defendant admitted that the conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure her continued compliance with the family’s orders. The defendant further admitted that, on one occasion, she advanced the conspiracy by striking D.P. in the head with a wooden board, causing D.P. to bleed from her head, and on another occasion advanced the conspiracy by holding D.P.’s arm in place so that a fellow conspirator could punish D.P. by burning her with a cigarette lighter.
“Lambert conspired to brutally coerce a vulnerable victim with disabilities to work long hours in despicable conditions and no monetary compensation,” said Acting Assistant Attorney General John Gore. “The Department of Justice continues to combat human trafficking by forced labor and today’s guilty plea reflects our commitment to seeking justice for victims.”
“Human trafficking is modern day slavery and the U.S. Attorney’s Office is committed to seeking justice on behalf of all victims including vulnerable individuals such as D.P.,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “We will continue to partner with federal, state and local law enforcement to hold these human traffickers accountable for their crimes.”
“FBI New Orleans strives every day to protect the civil rights of all, however we make a concerted effort to defend those who cannot defend themselves,” said Special Agent in Charge Eric J. Rommal for the FBI New Orleans Field Office. “In this case the offender’s actions are inexcusable.”
Lambert will be sentenced on Dec. 20, and faces a maximum sentence of five years in prison.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Amite Woman Pleads Guilty to Conspiring to Obtain Forced Labor from Woman with DisabilitiesRead the Press Release
Bridget Lambert, 21, pleaded guilty on Thursday, Sept. 27 in the Eastern District of Louisiana to one count of a forced labor conspiracy for conspiring with members of her family to obtain forced labor from D.P., a woman with cognitive disabilities.
At the plea hearing, Lambert admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, she conspired with other members of her family to obtain D.P.’s uncompensated household labor and services by a number of means, including by force and threat of force. Lambert admitted that, as part of the conspiracy, she and the other conspirators forced D.P. to live in a locked shed in the backyard and to perform housework and yard work in exchange for food and water. The defendant admitted that the conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure her continued compliance with the family’s orders. The defendant further admitted that, on one occasion, she advanced the conspiracy by striking D.P. in the head with a wooden board, causing D.P. to bleed from her head, and on another occasion advanced the conspiracy by holding D.P.’s arm in place so that a fellow conspirator could punish D.P. by burning her with a cigarette lighter.
“Lambert conspired to brutally coerce a vulnerable victim with disabilities to work long hours in despicable conditions and no monetary compensation,” said Acting Assistant Attorney General John Gore. “The Department of Justice continues to combat human trafficking by forced labor and today’s guilty plea reflects our commitment to seeking justice for victims.”
“Human trafficking is modern day slavery and the U.S. Attorney’s Office is committed to seeking justice on behalf of all victims including vulnerable individuals such as D.P.,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “We will continue to partner with federal, state and local law enforcement to hold these human traffickers accountable for their crimes.”
“FBI New Orleans strives every day to protect the civil rights of all, however we make a concerted effort to defend those who cannot defend themselves,” said Special Agent in Charge Eric J. Rommal for the FBI New Orleans Field Office. “In this case the offender’s actions are inexcusable.”
Lambert will be sentenced on Dec. 20, and faces a maximum sentence of five years in prison.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Abbeville felon sentenced to one year in prison for possessing pistolRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that an Abbeville man was sentenced to 12 months and one day in prison for illegally possessing a pistol.
Carlin Jerrid Montgomery, 38, of Abbeville, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the July 2, 2018 guilty plea, law enforcement agents executed a search warrant at Montgomery’s home on April 28, 2017 and found a .45-caliber pistol and ammunition. The handgun was concealed in the exterior shell of a black metal stereo tuner lying on the floor under Montgomery’s bedroom window. The defendant was convicted on June 11, 2002 for possession of crack cocaine and is prohibited from possessing a firearm.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Homeland Security Investigations, U.S. Customs and Border Protection, and ATF conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
3 New Haven Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that three New Haven men have pleaded guilty in Hartford federal court to various charges related to their roles in a violent street gang.
According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating approximately 40 unsolved shootings in New Haven and Hamden. Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016. The investigation has revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging MILTON WESTLEY, CLIFFORD BRODIE, SEDALE PERVIS, DEJUAN WARD, MICHAEL BELLE, and MICHAEL VIA with racketeering, attempted murder, firearm and narcotics trafficking offenses. The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.
On September 21, 2018, SEDALE PERVIS, also known as “Scope,” 26, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of possession of a firearm in furtherance of a drug trafficking crime. In pleading guilty, Pervis admitted that, on September 2, 2016, he possessed a distribution quantity of marijuana, and also possessed a loaded Ruger model P85, 9mm handgun. During the investigation, law enforcement also recovered a .380 caliber firearm that contained Pervis’s DNA.
Pervis admitted that he knew that other GSB members planned to use the 9mm firearm to shoot an individual on May 27, 2016. Ballistics from both the 9mm and .380 firearm were found at the scene of the shooting on that date. The investigation revealed that the 9mm and .380 caliber firearms also were used in other shootings.
On September 26, 2018, CLIFFORD BRODIE, also known as Cliff G,” 21, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of brandishing of a firearm during and in relation to a crime of violence. In pleading guilty, Brodie admitted that he and other GSB members sold cocaine and heroin. He also admitted that he was present and brandished a firearm at a February 6, 2016, shooting of rival gang members during which a bystander was shot and almost died. He further admitted that, on April 4, 2016, after rival gang members were shot by a fellow GSB member, he drove the assailants home.
On September 27, 2018, MICHAEL BELLE, also known as “MB,” 20, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity. In pleading guilty, BELLE admitted that he was present at the January 23, 2016, shooting at a rival gang member’s house. He also admitted that he and other GSB members agreed to shoot an individual on April 3, 2016, because the individual had information that led to the conviction of a GSB member.
The charge of conspiracy to engage in a pattern of racketeering activity carries a maximum term of imprisonment of 20 years. As to Pervis, the charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory consecutive prison term of five years. As to Brodie, the charge of possession of a firearm during an in relation to a crime of violence carries a mandatory consecutive prison term of seven years.
Milton Westley, also known as “Reese,” and Michael Via, also known as “Mike Live,” previously pleaded guilty to related charges and await sentencing.
All of the defendants who have pleaded guilty are detained pending sentencing.
Dejuan Ward is awaiting trial. As to Ward, U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
This investigation is being conducted by ATF and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.
"Froggy Robber" Indicted in Federal Court on Five ChargesRead the Press Release
PORTLAND, Ore. – Diego Sanchez-Lopez, 23, of Clark County, Washington, known locally as the “Froggy Robber,” made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman.
The court previously unsealed a five-count indictment alleging Sanchez-Lopez robbed five Portland-area banks between November 2017 and April 2018. Sanchez-Lopez faces federal bank robbery charges in violation of 18 U.S.C. §§ 2113(a) and (d) for the following events:
- On November 27, 2017, $9,710 was stolen from the Albina Community Bank located at 2002 NE Martin Luther King Jr. Boulevard in Portland.
- On December 27, 2017, $26,000 was stolen from the Wells Fargo Bank located at 8699 SW Main Street in Wilsonville, Oregon.
- On January 11, 2018, $11,580.99 was stolen from the Wells Fargo Bank located at 6785 Beaverton Hillsdale Highway in Beaverton, Oregon.
- On January 30, 2018, $6,720 was stolen from the U.S. Bank located at 52313 Columbia River Highway in Scappoose, Oregon.
- On April 30, 2018, 33,357 was stolen from the Wells Fargo Bank located at 7200 NE Butler Street in Hillsboro, Oregon.
In each of the above listed events, Sanchez-Lopez is accused of using a knife to facilitate the robbery. In total, he is alleged to have stolen more than $87,000 from banks insured by the Federal Deposit Insurance Corporation (FDIC).
Sanchez-Lopez was detained pending trial. A four-day jury trial is scheduled for November 27, 2018 before U.S. District Court Judge Michael W. Mosman.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Thursday 27 September 2018
“BMB” Street Gang Member Sentenced for Murder of Bronx Teenager and Other Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DONQUE TYRELL, a/k/a “Polo Rell,” a member of a violent street gang in the Bronx called the “Big Money Bosses” (“BMB”), was sentenced today on racketeering, murder, and other charges. TYRELL was sentenced to the mandatory minimum sentence of life plus 55 years in prison for, among other crimes, aiding and abetting the June 22, 2014, murder of 17-year-old Keshon Potterfield. TYRELL was sentenced by United States District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey S. Berman said: “As a result of the BMB gang’s wave of violence, Keshon Potterfield – a teenager, just beginning his life – was senselessly killed. Today, the defendant has been sentenced for his role in this terrible murder. We will continue to work with our law enforcement partners to prevent gang violence and keep our streets safe.”
TYRELL was convicted of murder in aid of racketeering, racketeering conspiracy, and other offenses in connection with his membership in BMB after a six-day jury trial.
According to court documents, as well the evidence at trial and statements made during other public proceedings in this case:
BMB is a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx – including murders, attempted murders, and armed robberies – and sold crack cocaine, marijuana, and oxycodone.
TYRELL was a member of BMB. On June 22, 2014, TYRELL and other members of BMB attended a birthday party in the backyard of a residence on East 232nd Street in the Bronx. TYRELL obtained a gun from an associate at the party, pointed it in Keshon Potterfield’s direction, and then passed it to another BMB member who shot and killed Potterfield in connection with a gang rivalry. TYRELL celebrated Potterfield’s murder in public Facebook postings and in rap music videos posted on YouTube in which he taunted rival gang members and threatened future violence.
In addition to the murder in aid of racketeering conviction, TYRELL was convicted of conspiring to commit racketeering as a result of his membership in BMB, conspiring to sell narcotics, selling narcotics within 1000 feet of schools and playgrounds, using firearms in connection with the gang and drug offenses, an attempted assault with a firearm in connection with his BMB membership, and attempting to rob a livery cab driver in the Bronx by hitting him in the head with a firearm.
* * *
TYRELL was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s (“NYPD”) Bronx Gang Squad, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx.
Mr. Berman praised the outstanding work of the NYPD’s Bronx Homicide Task Force, the NYPD’s 47th Precinct Detective Squad, the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Hagan Scotten, Jessica Feinstein, Drew Skinner, and Allison Nichols are in charge of the prosecution.
Woman Pleads Guilty to Embezzling from her Tulsa EmployerRead the Press Release
United States Attorney Trent Shores announced that Kristiana P. Collins, 44, formerly of Tulsa, pleaded guilty Thursday to wire fraud and to signing a false tax return.
In a plea hearing, Collins admitted to embezzling funds from her former employer between 2008 and 2014, when she responsible for paying the credit card accounts and handling bookkeeping operations at a company in west Tulsa.
“Kristiana Collins fraudulently took thousands of dollars from her employer. Embezzlement schemes like this cause serious financial consequences to local businesses,” said U.S. Attorney Trent Shores. “And the damage often isn’t limited to financial injury. When a trusted employee steals from company coffers, it collaterally impacts the firm's culture, morale and trust. My office strives to protect the integrity of the workplace by ensuring there is an accounting for criminals who embezzle from businesses in northeastern Oklahoma.”
While working in her position, Collins secretly obtained two Visa cards for herself under the company’s account, which was supposed to be used by various approved employees for company purposes. As part of her scheme, Collins made purchases for her own personal gain on both credit cards and later used company funds to pay the billed charges.
The plea agreement focused on a $4, 971.24 wire transfer, caused by Collins in 2013, made from the company’s bank account to the credit card company. Collins admitted that some of the purchases on the credit card statement were made fraudulently. She further agreed that she signed her 2013 tax return knowing it did not disclose the material income she had obtained through the use of her employer’s credit card.
Collins will be sentenced on January 7, 2019, at 10:30 a.m., by United States District Court Judge Claire V. Eagan. She faces a maximum sentence of 20 years in prison and three years supervised release for wire fraud as well as three years in prison and one year supervised release for knowingly signing a false tax return.
Investigative agencies involved in this case include the Creek County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Treasury, Internal Revenue Service—Criminal Investigation Division. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Washington Man Sentenced to over 12 Years in Prison for Meth OffenseRead the Press Release
MISSOULA - Salomon Mejia Preciado, a 36-year-old resident of Yakima, Washington, was sentenced today to 151 months in prison to be followed by 5 years of supervised release. Preciado pleaded guilty to conspiracy to distribute methamphetamine. Preciado is a former Federal felon and was prosecuted in the Eastern District of Washington and sentenced in 2003 to ten years in prison. U.S. District Judge Donald W. Molloy handed down the sentence.
In early September of 2017, law enforcement set up an undercover operation in which they purchased one pound of methamphetamine from Preciado in Missoula, Montana. Later in September, Preciado was apprehended in his vehicle with six pounds of methamphetamine while traveling back to Missoula for another deal. The methamphetamine totaled more than 3,000, grams which is the equivalent of more than 24,000 doses which would have otherwise reached users in Montana.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Missoula Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Virginia Man Pleads Guilty to Production of Child PornographyRead the Press Release
A Woodbridge, Virginia man pleaded guilty today to one count of production of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, made the announcement.
David Edward De Vere, 53, a former Equal Employment Specialist at the U.S. Patent and Trademark Office, pleaded guilty today before U.S. District Judge Liam O’Grady of the Eastern District of Virginia to production of child pornography. According to admissions made in connection with his plea, in March 2017, De Vere met and began communicating online with a 16-year-old minor living in Colorado. During the course of these communications, De Vere induced the minor to take and send him images of the minor engaging in sexually explicit conduct. Additionally, in April 2017, De Vere travelled from Virginia to Colorado in an attempt to engage in sexual activity with the minor, but failed to make contact with the minor.
De Vere is scheduled to be sentenced on Jan. 11, 2019.
The case is being investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is comprised of agents of the FBI, U.S. Marshals Service, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorney William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kellen S. Dwyer are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Violent Bank Robber Sentenced to 30 Years in Federal PrisonRead the Press Release
CHICAGO — A Chicago man has been sentenced to 30 years in federal prison for robbing a North Side bank at gunpoint.
JON GILES, 39, robbed a North Community Bank branch in Chicago’s Lincoln Park neighborhood on March 20, 2009. After casing the building from the outside, Giles entered the bank and pointed a loaded gun at a female employee who was sitting at a desk. He then forced a teller to fill a Ziploc bag with cash, screaming, “Give me the money or I will shoot her right now!” The teller complied and filled the bag with approximately $1,153. Giles then ordered the employee and the teller to lie face down on the floor while he fled the bank.
Giles was arrested in June 2009 on unrelated armed robbery charges and he has remained in custody. A federal jury earlier this year convicted him on bank robbery and firearm charges. U.S. District Judge Ronald A. Guzman on Wednesday imposed a 360-month sentence and ordered that Giles receive credit for time already served.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by the Chicago Police Department.
“The defendant is a manipulative, violent, career criminal who appears unable to stop harming other members of society by committing violent crimes,” Assistant U.S. Attorneys Christopher V. Parente and Elizabeth Pozolo argued in the government’s sentencing memorandum.
Both the bank employee and the teller testified about their ordeals at trial. The employee described how terrified she felt when Giles pressed the gun into her side and threatened to kill her. She recalled thinking that she would never see her children again.
Evidence at trial revealed that authorities matched Giles’s DNA to a glove he wore during the bank robbery.
USAO NDTX Weekly Roundup -- 9/27/18Read the Press Release
INDICTMENT* – James Maraia, 70
On Sept. 25, a federal grand jury indicted James Lawrence Maraia of Cedar Hill on child pornography charges. He allegedly used a peer-to-peer computer program to share and collect child pornography over a five year period. If convicted, Mr. Maraia faces up to 20 years for each count. The FBI investigated.INDICTMENT* - Larry Rider & Kevin Harris
On September 25, in two seperate cases, a federal jury indicted Larry Rider and Kevin Harris, both Dallas residents, for felon in possession of a firearm. If convicted, both men face up to 10 years in federal prison. The Dallas Police Department and FBI investigated the case.
INDICTMENT* – David Stallworth, 36
On Sept. 26, a federal grand jury indicted Aaron David Stallworth, aka “Ace,” for attempted carjacking. He allegedly used violence and intimidation to steal a 2010 Chevrolet Traverse. If convicted, Mr. Stallworth faces up to 45 years in federal prison. This case was brought as part of the U.S. Attorney’s Project Safe Neighborhood initiative, which brings together federal and local law enforcement to target the community’s most pressing crime problems. The Texas Rangers investigated.INDICTMENT* – Jesus Gonzales, 18
On Sept. 26, a federal grand jury indicted Jesus Antonio Gonzalez of Irving on drug trafficking and firearms charges. On August 20, Mr. Gonzales -- who was allegedly dealing cocaine and marijuana out of a Park Square apartment -- fired an AR-15 during his trafficking. Four days later, he was discovered carrying an AK-47 while engaged in drug trafficking. If convicted, Mr. Gonzalez faces up to life in federal prison. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Irving Police Department investigated the case.PLEA – Madison Brekke, 21
On Sept. 27, Madison Elizabeth Brekke of Coppell plead guilty to possession of a firearm by an unlawful user of a controlled substance. An admitted addict, Ms. Brekke confirms that in early August, she was using heroin, a Schedule I controlled substance. At that time, she admitted, she possessed a Sig Sauer SP2022 handgun. She now faces up to 10 years in federal prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Coppell Police Department investigated.PLEA – Kenntorro Armstrong, 24
On Sept. 27, Kenntorro Armstrong of Fort Worth pleaded guilty to delay or destruction of mail. Armstrong admits that while a postal employee, he detained a first-class envelope addressed to a customer in Fort Worth. He now faces up to 5 years in prison and a fine of up to $250,000. The USPS - Office of Inspector General investigated.* An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two Gresham Men Sentenced to Federal Prison for Defrauding Investors of $2.5 MillionRead the Press Release
PORTLAND, Ore. – Theodore B. Holbrook, 37, and George J. Arauz, Jr., 45, both of Gresham, Oregon, were sentenced today to 36 months in federal prison for defrauding 50 investors of nearly $2.5 million using a sham energy technology start-up company. Holbrook and Arauz were also ordered to pay more than $2.3 million each in restitution and will be on supervised release for three years after completing their prison sentences.
According to court documents, between 2008 and 2015, Holbrook and Arauz used their companies, Prisidio Capital, LLC, Altius Capital Management, LLC and Altius Capital Opportunities Fund, L.P., to solicit investments to develop energy technologies via a start-up company. In return, they gave investors Prisidio stock certificates and promised to convert these shares into the start-up company’s shares when it went public. In addition to funding the start-up company, Holbrook and Arauz told investors that their money would be invested in other emerging technology companies or the stock market directly.
Instead of using investor money as promised, Holbrook and Arauz diverted it for their own personal use, funding living expenses, travel, cars, credit card bills, medical bills, lulling payments and other expenses to keep the scheme going. The pair did not disclose this diversion of funds to their investors and, instead, actively took steps to conceal it. Holbrook and Arauz sent investors promotional and investment materials to falsely represent the nature and status of their investment.
Holbrook and Arauz both previously pleaded guilty to one count each of wire fraud and money laundering on March 7, 2018 and October 31, 2017, respectively.
This case was investigated by IRS Criminal Investigation. It was prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.
Two Bell Garden Locos Street Gang Members Sentenced for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced the sentencings of Grandview, Washington residents, Fidel Gonzalez-Molina, Jr., age 24, and Edvin Daniel Osorio, age 21, following their pleas of guilty to being previously convicted felons in possession of ammunition and a firearm. Gonzalez-Molina and Osorio are members of the “Bell Garden Locos” street gang. United States District Judge Salvador Mendoza, Jr. sentenced Gonzalez-Molina for unlawfully possessing ammunition to a 15-month term of imprisonment, to be followed by a 3-year term of court supervision following release from Federal prison. United States District Judge Stanley A. Bastian sentenced Osorio for illegally possessing a firearm to a 6-month term of home confinement, followed by a 3-year term of probation.
According to information disclosed during court proceedings, a Sunnyside Police Department officer initiated a stop on a vehicle with four occupants after receiving reports that someone in the vehicle was target shooting at street signs near Harrison and Sheller Road. The driver, Gonzalez-Molina, told officers he was a former member of the “Bell Garden Locos” street gang. Osorio, the front-seat passenger, was known by law enforcement to be a member of the same gang. During the stop, officers observed a plastic shopping bag fly from the passenger compartment. Officers retrieved it and found a sales receipt from a local sporting goods store for the recent purchase of .357 caliber ammunition. After obtaining consent to search the vehicle, officers found a Smith and Wesson .357 caliber revolver wrapped in a blue bandana inside the glove compartment. Officers then contacted the sporting goods store and reviewed its security video as it related to the time stamp on the sales receipt. The store’s video revealed Gonzalez-Molina and Osorio were involved in purchasing the ammunition.
Joseph H. Harrington said, “Convicted felons have no right to possess firearms and ammunition. If someone chooses to violate federal law, they will be prosecuted. I commend the outstanding work of the FBI, ATF, and Sunnyside Police Department in investigating this case.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Sunnyside Police Department, the Yakima Resident Office of the Federal Bureau of Investigation, and the Yakima Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
Two Armed Defendants Charged in Connection with Marijuana Manufacturing Grow Site in Mendocino National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Gregorio Moreno-Valencia, 26, and Alexandro Ayala-Acosta, 45, charging them in connection with a marijuana grow operation in the Mendocino National Forest in Tehama County, possession of firearms in furtherance of drug trafficking crimes, and the depredation of United States property, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement personnel arrested both defendants on August 27, 2018. Moreno-Valencia was armed with a Colt .22 caliber semi-automatic pistol and Ayala-Acosta was armed with a Mossberg short-barrel 12 gauge pump shotgun.
This case is the product of an investigation by the U.S. Forest Service, Tehama County Sheriff’s Department, California Department of Fish & Wildlife, California National Guard, and California Department of Justice.
If convicted of the marijuana counts, each defendant faces a mandatory minimum penalty of 10 years up to a maximum of life in prison and a $10 million fine. The maximum penalty for possession of a firearm in furtherance of drug trafficking crimes is a mandatory consecutive five years to life in prison and a fine of $250,000. The maximum penalty for possession of a short-barrel shotgun in furtherance of drug trafficking crimes is a mandatory consecutive 10 years to life sentence and a fine of $250,000. If convicted of depredation against United States property, each defendant faces a maximum 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twenty-Six Count Indictment Charges Convicted Sex Offender with Computer Hacking, Producing Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging BARTON GEORGE SCOTT, 35, with child pornography and computer hacking offenses. SCOTT made his initial appearance on September 25, 2018, before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota.
As alleged in the indictment, between April 30 and August 8, 2017, SCOTT gained unauthorized access to the Snapchat accounts of 25 victims. In several cases, SCOTT used extortionate tactics in an attempt to obtain sexually explicit images and videos from the victims, many of whom were minors.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the FBI at (763) 569-8000. Callers may remain anonymous.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, the Carver County Sheriff’s Office, the Stillwater Police Department, the Washington County Sheriff’s Office, the St. Croix County Sheriff’s Office, New Richmond Police Department, and the Anne Arundel County Sheriff’s Office.
Assistant U.S. Attorney Katharine T. Buzicky is prosecuting the case.
Defendant Information:
BARTON GEORGE SCOTT, 35
City of residence unknown
Charges:
- Production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
- Attempted production of child pornography, 6 counts
- Fraud and related activity in connection with computers 18 U.S.C. § 1030(a)(7)(B), 6 counts
- Fraud and related activity in connection with computers 18 U.S.C. § 1030(a)(2)(C), 12 counts
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Three Mexican Nationals Indicted for Trafficking Methamphetamine and Heroin in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Miguel Alverez Cervantes, 53, Maria Cervantes-Echevarria, 34, and Marta Jiminez Lopez, 26, all Mexican nationals living in Los Molinos, charging them with conspiracy to distribute methamphetamine and possessing methamphetamine and heroin for distribution, U.S. Attorney McGregor W. Scott announced. The indictment also charges Cervantes-Echevarria and Lopez with possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Maria Cervantes-Echevarria and Marta Lopez used their home in Los Molinos as a stash location for narcotics, firearms, and cash. Court records allege that in January 2018, the two women delivered a spare tire to a third party that was later found to contain approximately 22 pounds of methamphetamine. In addition, an undercover agent purchased over three pounds of methamphetamine from Miguel Cervantes during three controlled buys in August and September 2018. When agents searched Cervantes-Echevarria and Lopez’s home on September 17, 2018, they found three handguns and over $44,000 in cash in the master bedroom. Agents found over 34 pounds of methamphetamine, three pounds of heroin, and an AR-15-style rifle elsewhere on the property.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Land Management, the Tehama Interagency Drug Enforcement (TIDE) task force, the Shasta Interagency Narcotics Task Force (SINTF), and the Siskiyou Unified Major Investigations Team (SUMIT), with special assistance from the Federal Bureau of Investigation and the California Highway Patrol.
If convicted of the conspiracy charge or any of the narcotics charges, each defendant faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of possessing a firearm in furtherance of a drug‑trafficking crime, Cervantes-Echevarria and Lopez each face a mandatory five-year term in prison, which would run consecutive to any other sentence imposed in this case. Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Taylor County woman admits to bank fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Karen Kinsley, of Grafton, West Virginia, has admitted to taking out loans and opening accounts in bank customers’ names without their knowledge, United States Attorney Bill Powell announced.
Kinsley, age 46, pled guilty to one count of “Bank Fraud.” Kinsley admitted to originating several loans in bank customers’ names without their consent or knowledge, reopening closed checking and saving accounts without the customers’ knowledge, and used some of the loan proceeds for personal use and some for payments on other fraudulent loans. Kinsley committed the crime while she was a branch manager of the Clear Mountain Bank inside the Kroger store in Sabraton, Monongalia County from June 2014 to September 2017.
The government is seeking a money judgement in the amount of $170,219.19.
Kinsley faces up to 30 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Monongalia County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Statement of Jonathan D. Brightbill, Deputy Assistant Attorney General, Environment and Natural Resources Division, Before the House Oversight and Government Reform Subcommittee on the Interior, Energy, and EnvironmentRead the Press Release
Remarks as Prepared for Delivery
Chairman Gianforte, Ranking Member Plaskett, and Members of the Subcommittee, thank you for the opportunity to discuss this important topic. I also would like to recognize and thank Chairman Gowdy and/or Ranking Member Cummings.
I have the great privilege to serve as a Deputy Assistant Attorney General in the Environment and Natural Resources Division in the Department of Justice. The Division has broad responsibilities: enforcing the nation’s civil and criminal pollution control laws; representing the United States in matters concerning the stewardship of the nation’s environment and natural resources, wildlife, and public lands; and litigating cases concerning the resources and rights of Indian tribes and their members.
I personally supervise a stellar team of lawyers and other staff responsible for defending rulemakings and policies arising under a broad range of pollution control statutes and for acquiring property on behalf of the federal government.
The Division routinely handles attorney’s fee claims. Congress has authorized private-party litigation against federal agencies and has generally established two avenues by which opposing parties may seek the payment of attorney’s fees through taxpayer dollars in our cases.
First, the citizen suit and judicial review provisions in most environmental protection and some natural resources laws expressly provide for recovery of attorney’s fees against the United States.
Second, attorney’s fees may be payable under the Equal Access to Justice Act (known as “EAJA”) when not available under these statutes.
Under the leadership of Attorney General Sessions, ENRD is strongly committed to the rule of law and takes seriously the solemn obligation to protect taxpayer dollars. We closely scrutinize all demands for attorney’s fees to ensure that they are lawful, justified, and reasonable.
The Division does not, however, and cannot, challenge the payment of attorney’s fees in all cases. Some fee applications may be substantially justified and reasonable. But where it is appropriate to contest a claim of fees, my written statement chronicles some of our recent efforts in controlling their costs.
I would like to highlight five recurrent challenges the Division faces in handling attorney’s fee claims. Each is discussed in more detail in my written statement.
In some areas, it seems fee litigation and recoveries may have moved beyond Congress’s original intentions for providing reasonable access to the courts, without encouraging excessive litigation and enriching lawyers. Federal courts also are not consistent in their standards for awarding fees across the country.
(1) First, ineffective limits on hourly fee rates. Because most attorney-fee provisions do not contain a maximum hourly rate, we frequently see lawyers seek taxpayer-funded fee payments with exorbitant hourly rates. While EAJA does contain a presumptive cap on attorney’s fee payments of $125 per hour (plus inflation adjustment), it is subject to enhancement based on special factors.
In our experience, courts routinely award EAJA fees at more than $500 per hour to as high as $700 per hour.
(2) Second, no case cap. Most statutes under which ENRD litigates do not contain a maximum amount of fees the United States will subsidize on a matter. The Division has paid a number of multi-million dollar attorney fee awards in the past ten years.
(3) Third, low eligibility requirements. Under EAJA, large tax-exempt organizations with net worth exceeding $200 million can be eligible for—and have received—taxpayer-funded fees. And there are no qualification requirements at all under the environmental protection and natural resource statutes noted in my written statement.
As the D.C. Circuit has recognized, “Congress did not intend to subsidize the purchase of legal services by large entities easily able to afford legal services.” Yet many organizations are funded by outside contributions, and don’t require taxpayer subsidies.
(4) Fourth, fees on fees. Because parties can recover attorney’s fees for seeking payment of attorney’s fees, there is incentive for parties to claim exorbitant fees and then litigate the issue. In deciding whether to challenge a claim for attorney’s fees, the Division must weigh the cost and risk of the prospect of “fees on fees” if it is not entirely successful opposing.
(5) Fifth, inconsistent burden of proof. The United States is frequently successful defending litigation. However, courts have inconsistently interpreted the facially-neutral language of attorney’s fee provisions to more-readily permit attorney’s fee payments to prevailing plaintiffs than the United States.
Addressing these challenges would enhance the consistency, predictability, transparency, and efficiency of fee awards under the environmental statutes.
I would be happy to answer your questions concerning these challenges.
Sophia Monique Zayas Sentenced to 15 Years for Conviction on Child Abuse Resulting in Great Bodily Harm Charge That Resulted in the Death of Her Two-Month InfantRead the Press Release
ALBUQUERQUE – Senior U.S. District Judge Robert C. Brack sentenced Sophia Monique Zayas, 36, this afternoon in federal court in Las Cruces, N.M., to 15 years of imprisonment followed by five years of supervised release for her conviction on a child abuse resulting in great bodily harm charge. Sophia Zayas’ conviction arose out of conduct occurring on October 21 and 22, 2007, that resulted in the death of her two-month-old daughter. Judge Brack sentenced Sophia Zayas based on a guilty plea entered on Feb. 24, 2014.
U.S. Attorney John C. Anderson, Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division, and Special Agent in Charge Nicholas J. Dorval of the Air Force Office of Special Investigations, Detachment 814, announced Sophia Zayas’ sentence.
The FBI and the Air Force Office of Special Investigations arrested Sophia Zayas, 32, and her husband Peter John Zayas, 33, in April 2012 on charges that between Oct. 21, 2007 and Oct. 22, 2007, the couple caused the death of their two-month-old infant daughter. In Nov. 2012, a 16-count superseding indictment was filed charging the couple with second-degree murder, child abuse resulting in death, child abuse resulting in great bodily harm, and other child abuse-related offenses. At the time of the offenses alleged in the superseding indictment, Peter Zayas was a sergeant with the U.S. Air Force and was stationed at Holloman Air Force Base.
On Feb. 24, 2014, Sophia Zayas pleaded guilty to child abuse resulting in great bodily harm and admitted that from Aug. 16, 2007 through Oct. 22, 2007, she placed her daughter in a situation, which endangered the infant’s life. In her plea agreement, Sophia Zayas admitted that the infant suffered posterior transverse skull fractures, rib fractures, and radius and ulna fractures as a result of her conduct. The infant died of her injuries on Oct. 22, 2007.
Peter Zayas pleaded guilty to negligent child abuse five-days earlier, on Feb. 19, 2014. In his plea agreement, Peter Zayas admitted that from Aug. 16, 2007 through Oct. 22, 2007, he permitted his infant to be in a situation that endangered her life knowing that there was a foreseeable risk that she would be physically harmed or killed by leaving her in Sophia Zayas’ care knowing that Sophia Zayas had a history of alcohol abuse. Peter Zayas acknowledged that the infant died on Oct. 22, 2007, as a result of his negligence because it was foreseeable to him that leaving the infant in Sophia Zayas’ care could lead to harm given her alcohol consumption and binge drinking during the Oct. 14, 2007 through Oct. 22, 2007.
Sophia Zayas and Peter Zayas have been in federal custody since their arrests. Peter Zayas is scheduled for sentencing on Oct. 2, 2018.
This case was investigated by the FBI and the Air Force Office of Special Investigations and is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and John A. Balla of the U.S. Attorney’s Las Cruces Branch Office.
Seven Selma Residents Enter Guilty Pleas in Separate Cases to Being in Possession of Firearms After Felony ConvictionsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that seven residents of Selma, Alabama entered guilty pleas to violating Title 18 United States Code, Section 922(g)(1) – the felon in possession of a firearm statute.
On September 14, 2018, Daryl Dewayne Struggs pled guilty to possession of two Smith & Wesson, 9mm pistols found in his possession on March 28, 2017. Prior to March 2017, Struggs had been convicted of three felonies in Dallas County, Alabama Circuit Court, namely, Unlawful Possession of Marijuana, 1st Degree; Burglary 3rd Degree; and Robbery 3rd Degree. Struggs’ sentencing is set for December 11, 2018, before the Honorable William H. Steele. The Assistant U. S. Attorney Assigned to the case is Sinan Kalayoglu.
On September 17, 2018, Octavius Tyrone Peace pled guilty to possession of a Taurus, .38 caliber revolver found in his possession on May 20, 2018. Prior to May 2018, Peace had been convicted of two felonies in the United States District Court for the Western District of Kentucky, namely Bank Fraud; and Passing, Uttering, Presenting, Offering, Brokering Issuing or Selling False or Fictitious Instruments with the Intent to Defraud. Peace’s sentencing is set for December 14, 2018, before the Honorable Kristi K. Dubose. The Assistant U. S. Attorney assigned to the case is Alex Lankford.
On September 17, 2018, Antonio Demond Butler pled guilty to possession of a Taurus, 9mm pistol found in his possession on May 8, 2018. Prior to May 2018, Butler had been convicted of a felony, namely Unlawful Possession of a Controlled Substance in the Circuit Court of Tuscaloosa County, Alabama. Butler’s sentencing is set for December 14, 2018, before the Honorable Kristi K. Dubose. The Assistant U. S. Attorney assigned to the case is Michele O’Brien.
On September 19, 2018, Jimmy Lee Woods pled guilty to possession of a Phoenix Arms, .25 caliber, semi-automatic pistol found in his possession on May 16, 2018. Prior to May 2018, Woods had been convicted of a felony, namely, Burglary 3rd Degree in the Circuit Court of Perry County, Alabama. Woods sentencing is set for December 19, 2018, before the Honorable Callie V. S. Granade. The Assistant U. S. Attorney assigned to the case is Gloria Bedwell.On September 19, 2018, Willie James Collins, Jr. pled guilty to possession of three firearms, namely, a Glock, .45 caliber pistol; an ATI, .556 caliber rifle; and a Mossberg, .22 caliber pistol, found in his possession on December 8, 2017. Prior to December 2017, Collins had been convicted of a felony, namely Receiving Stolen Property 3rd Degree in the Circuit Court of Marengo County, Alabama. Collins sentencing is set for December 11, 2018, before the Honorable William H. Steele. The Assistant U. S. Attorney assigned to the case is Michele O’Brien.
On September 26, 2018, Dwight Contrell Tanker pled guilty to possession a Taurus, .380 caliber pistol found in his possession on April 26, 2018. Prior to April 2018, Tanker had been convicted of a felony, namely, Possession of Marijuana 1st Degree in the Circuit Court of Tuscaloosa County, Alabama. Tanker’s sentencing is set for January 9, 2019, before the Honorable Callie V. S. Granade. The Assistant U. S. Attorney assigned to the case is Michele O’Brien.
On September 26, 2018, Brandon Dejuan Ward pled guilty to possession of a High Point, 9mm pistol found in his possession on September 14, 2017. Prior to September 2017, Ward had been convicted of three felonies in Dallas County, Alabama Circuit Court, namely, Burglary 1st Degree; Receiving Stolen Property, 1st Degree; and Discharging a Firearm Into an Occupied Building. Ward’s sentencing is set for January 9, 2019, before the Honorable Callie V. S. Granade. The Assistant U. S. Attorney assigned to the case is Vicki Davis.
All of these cases were investigated collectively by officers of the Selma, Alabama Police Department, special agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, investigators of the Fourth Judicial Task Force, officers of the Alabama Law Enforcement Agency and investigators with the Alabama Attorney General’s Office.
Sentencings for September 18 - September 25, 2018Read the Press Release
STETSON LANE PIERCE, 21, of Evanston, Wyoming was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 25, 2018 for possession of a stolen firearm and being a felon in possession of a firearm. Pierce was arrested in Uinta County, Wyoming. He received forty-one months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $400.00 fine and a $200.00 special assessment. The Evanston Police Department, West Jordan Utah Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
KYMBER MORGAN TIERNAN, 33, of Cheyenne, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on September 21, 2018 for conspiracy to distribute methamphetamine. Tiernan was arrested in Cheyenne, Wyoming. Tiernan received sixty-three months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay restitution in the amount of $500.00. The Wyoming Division of Criminal Investigation, Northern Colorado Drug Task Force, DEA, and Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
KAREN KAY STROBACH-ROBLES (a/k/a KAREN ROBLES, a/k/a KAREN STROBACH), 55, of Highland, California was sentenced by Federal District Court Judge Alan B. Johnson on September 18, 2018 for conspiracy to distribute methamphetamine. Strobach-Robles was arrested in Riverside, California. She received sixty months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay restitution in the amount of $500.00. The Wyoming Division of Criminal Investigation investigated this case.
STARR DANA MILLER, 25, of Arapahoe, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on September 25, 2018 for escape from custody. Miller was arrested in Casper, Wyoming. He received eighteen months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Lander Police Department, Natrona County Sheriff’s Office, BIA, and United States Marshalls Service investigated this case.
Sacramento Man Sentenced to Six Years in Prison for Fraud in Connection with Arson SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Brian J. Stone, 60, of Sacramento, to six years in prison and to pay over $243,000 in restitution and a $12,500 fine for his convictions on 13 counts of wire and mail fraud, U.S. Attorney McGregor W. Scott announced. After sentencing, Stone was remanded into custody.
Stone was formerly a California attorney but was disbarred in 2001. According to evidence presented at a four-day trial and at sentencing, Stone participated with co-defendant Jamal Shehadeh in a multiyear fraud scheme involving several fraudulent fire insurance claims in the Sacramento area that spanned from 2009 through 2013, often utilizing his legal skills in the process. Jamal Shehadeh separately pleaded guilty to arson and admitted to setting or causing to be set fires as a part of the fraud scheme. Among other things, Stone assisted Shehadeh with insurance claims after fires at 511 Broadway in June 2010, 5725 Marconi Avenue in September 2012, and at 2764 Fulton Avenue in June 2013.
In late 2012, co-defendant Jamal Shehadeh had rented space at that location in the name of a supposed auto parts supply business. Stone had been helping Shehadeh unsuccessfully fight an eviction action during the months prior to the fire. On the night the eviction took effect, the fire occurred at 2764 Fulton, and the supposed auto parts business later filed an insurance claim with State Farm. While helping with the insurance claim, Stone recruited a local contractor to create a fake invoice and lie to State Farm regarding debris removal work performed after the fire. In a series of emails, Stone directed the local contractor to keep 10 percent of the money that they would get from State Farm from this fraud, and send the other 90 percent to Stone in a cashier’s check.
The scheme was uncovered when the local contractor reported it to State Farm. The FBI later executed search warrants of Stone’s office and email account, finding copies of documents outlining the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales are prosecuting the case.
Two other defendants were charged in the case. Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony on February 10, 2018, and was sentenced to 30 years in prison. Saber Shehadeh was convicted of three counts of mail fraud on June 4, 2018, after a seven-day jury trial, and is scheduled to be sentenced on October 18, 2018.
River Ridge Man Sentenced After Previously Pleading Guilty to Stealing over $1,000,000 from EmployerRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DON MANUEL ZEMO, JR., age 55, a resident of River Ridge, Louisiana, was sentenced yesterday by United States District Judge Ivan L.R. Lemelle to 15 months imprisonment and supervised release after any term of imprisonment of 2 years after previously pleading guilty to conspiracy to commit mail fraud, in violation of 18 U.S.C. ' 371, for his role in stealing over $1,000,000 from his employer, a privately owned and operated company that provided portside services as a terminal operator and stevedore at the Port of New Orleans. ZEMO was also ordered to pay restitution to the victim in the amount of at least $1,033,639.54, subject to increase for inclusion of additional costs and fees incurred by the defendant, to be determined by December 11, 2018.
According to court documents, Company A hired ZEMO in 1999. Between 2003 and 2015, he served as the General Manager of Port Operations and earned in excess of $100,000 per year for his employment. As General Manager, ZEMO oversaw and managed Company A’s day-to-day operations at Company A’s terminal at the Port of New Orleans, including handling all financial documentation, personnel decisions, job scheduling, implementing of Company A’s policies at Company A’s Port of New Orleans terminal, and facilitating the billing of Company A’s customers.
In about August 2009, U.S. Gulf Trade, Inc. (“USGT”) was formed. Although ZEMO was not explicitly affiliated with USGT, he was involved in its day-to-day operations. Between January 29, 2012, and July 7, 2015, ZEMO and his co-conspirator, who was involved with the formation of USGT, diverted approximately $1,033,639.54 over the course of eighty (80) transactions from Company A to themselves and USGT. ZEMO did so by representing to Company A’s customers that USGT, and not Company A, had provided certain services and material to the customer when, in fact, Company A’s equipment, employees, and material was used to provide the services and directing customers to transmit payments to USGT, not Company A, for the services rendered and material provided, without Company A’s knowledge or authorization. Among the fraudulent transactions ZEMO caused was one on May 22, 2015, in which ZEMO caused a shipping company to send a check via U.S. Mail to USGT in the amount $49,498.49, when such funds should have been made payable to, and actually transmitted to, Company A.
U.S. Attorney Strasser praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
* * *
Registered Sex Offender on Lifetime Federal Supervised Release Admits to Possessing Child PornographyRead the Press Release
PROVIDENCE, RI – A registered sex offender serving lifetime federal supervised release, having been convicted in 2012 and sentenced to 84 months in federal prison for possessing and receiving child pornography, pleaded guilty in federal court today to possessing child pornography.
Robert L. MacGregor, 55, of Providence, was arrested on February 7, 2018, by Homeland Security Investigations (HSI) agents and members of the Rhode Island State Police Internet Crimes Against Children (RI ICAC) task force, following an investigation that determined that MacGregor was in possession of approximately 100 images of child pornography.
According to court documents, during a routine home visit on January 24, 2018, a United States Probation Officer allegedly observed inappropriate materials on MacGregor’s cell phone. A subsequent forensic examination of the phone by members of the RI ICAC task force revealed approximately 100 images of child pornography.
On January 27, 2012, MacGregor was convicted in federal court in Providence on one count of possession of child pornography and two counts of receipt of child pornography. He was sentenced to 84 months imprisonment and a term of lifetime supervised release.
MacGregor’s guilty plea is announced by United States Attorney Stephen G. Dambruch; Peter C. Fitzhugh, Special Agent in Charge of HSI for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
MacGregor is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 19, 2019.
Possession of child pornography in this matter (2nd offense) is punishable by statutory penalties of a mandatory minimum of 10 years in prison, with a maximum penalty of 20 years of incarceration; lifetime supervised release; and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
###
Redby Man Sentenced to 30 Years in Prison for the Violent Beating Death of 23-Month-Old SonRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of GARY WAYNE JACKSON, JR., 26, to 30 years in prison for second-degree murder in the beating death of his 23-month-old son. JACKSON, who pleaded guilty on June 20, 2018, was sentenced today before U.S. District Judge Ann D. Montgomery in U.S. District Court in Bemidji, Minnesota.
According to his guilty plea and documents filed in court, on January 2, 2018, JACKSON, in a fit of rage, repeatedly punched his 23-month-old son, resulting in the child’s death. Following the assault, JACKSON failed to seek appropriate medical care for his son. The final autopsy report revealed the cause of death as blunt force trauma to the head and torso.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, and the Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
GARY WAYNE JACKSON, JR., 26
Redby, Minn.
Convicted:
- Murder in the Second Degree, 1 count
Sentenced:
- 30 years in prison
- Five years of supervised release
# # #
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
President of Park Avenue Art Gallery Sentenced to 18 Months in Prison for Defrauding Art Dealers and Collectors of Millions of Dollars of ArtworkRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EZRA CHOWAIKI was sentenced to 18 months in prison for his role in an elaborate scheme to defraud art dealers and collectors of millions of dollars. CHOWAIKI fleeced his victims by entering into fraudulent agreements with dealers and collectors to buy or sell artwork through a private art gallery located on Park Avenue in New York, New York (the “Gallery”), and by using these dealers’ and collectors’ funds and artwork for unauthorized purposes, such as to repay other dealers to whom CHOWAIKI had outstanding debts. CHOWAIKI pled guilty on May 3, 2018, before United States District Judge Jed S. Rakoff, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Ezra Chowaiki ran a multimillion-dollar fraud on art dealers and collectors around the country. He sold clients’ artwork without authorization, and he took clients’ money for the purchase of artwork he never purchased. Chowaiki has now been sentenced to prison, and ordered to forfeit the spoils of his scheme and make restitution to his victims.”
According to the allegations contained in the Information and other documents filed in court, as well as statements made in public court proceedings:
Until November 2017, EZRA CHOWAIKI was the president and the minority owner of the Gallery. CHOWAIKI founded the Gallery in 2004 and thereafter used the Gallery to facilitate the purchase, sale, and consignment of works of fine art, as well as for hosting various art exhibitions featuring works of art and sculptures by well-known artists such as Pablo Picasso, Alexander Calder, Marc Chagall, Edgar Degas, and others. CHOWAIKI lost control of the Gallery in November 2017 when the Gallery filed for bankruptcy and was taken over by a trustee to oversee its liquidation.
Between 2015 and 2017, through the Gallery, CHOWAIKI engaged in a scheme to deceive other dealers and collectors of fine artwork into sending him money or valuable artwork under the false pretenses that CHOWAIKI would engage in legitimate transactions such as the purchase, sale, or consignment of these and other artworks. In truth, however, CHOWAIKI did not, and often could not, conduct the transactions as promised, and instead kept funds and artwork for himself and the Gallery, or sold or consigned them to others both in and outside the United States, without authorization. Through these fraudulent transactions, CHOWAIKI fraudulently transferred millions of dollars’ worth of artwork.
* * *
In addition to the prison term, CHOWAIKI, 49, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit his interest in more than 20 works of art that had been fraudulently transferred, including works by Picasso, Degas, and Calder. Restitution amount was deferred to a later date.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation. To date, the FBI has seized millions of dollars of artwork that was fraudulently transferred through CHOWAIKI’s scheme. Any person who believes he/she is a victim of this crime is encouraged to send an email to [email protected]. Mr. Berman also thanked the Chapter 7 trustee and his attorneys at Togut, Segal & Segal LLP for their assistance.
The case is being prosecuted by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Daniel M. Tracer is in charge of the prosecution.
Petróleo Brasileiro S.A. – Petrobras Agrees to Pay More Than $850 Million for FCPA ViolationsRead the Press Release
Petróleo Brasileiro S.A. – Petrobras (Petrobras), a Brazilian state-owned and state-controlled energy company, entered into agreements with U.S. and Brazilian authorities and agreed to pay a combined total of $853.2 million in penalties to resolve the U.S. government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) in connection with Petrobras’s role in facilitating payments to politicians and political parties in Brazil, as well as a related Brazilian investigation.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division made the announcement.
“Executives at the highest levels of Petrobras—including members of its Executive Board and Board of Directors—facilitated the payment of hundreds of millions of dollars in bribes to Brazilian politicians and political parties and then cooked the books to conceal the bribe payments from investors and regulators,” said Assistant Attorney General Benczkowski. “The Criminal Division’s Fraud Section—together with our partners in the Eastern District of Virginia, the SEC, and the FBI—are grateful for the assistance provided by our Brazilian law enforcement counterparts. This case is just the most recent example of our ability to work with our foreign counterparts to investigate companies and other criminal actors whose conduct spans multiple international jurisdictions.”
“Protecting the integrity of U.S. financial markets is one of the highest priorities of this Administration,” said U.S. Attorney Terwilliger. “Those who choose to access our capital markets while failing to disclose the corrupt activities of company executives will be held accountable. I want to thank our law enforcement partners for their diligence and dedication in pursing this important case.”
“Today’s global resolution demonstrates the FBI’s commitment to thoroughly investigating and holding accountable those international companies who seek to take advantage of our financial system while also facilitating bribes and fraud in other countries,” said FBI Assistant Director Johnson. “The hefty $853.2 million criminal penalty should act as a deterrent to anyone seeking to perpetrate this kind of fraud in the future. This case proves that no company is above the law and that corruption that spans borders will not be tolerated by the United States. I want to thank the agents, analysts, and prosecutors who investigated this case in parallel with Brazilian authorities. We will continue to pursue any and all companies and individuals throughout the world who disregard the rule of law and threaten our fair and competitive marketplace for their personal gain.”
“Today’s substantial resolution demonstrates the FBI’s continued commitment to working with U.S. and international partners to investigate corruption no matter where it occurs,” said Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division. “We remain committed to holding companies and executives who violate the Foreign Corrupt Practices Act accountable for their activity, and we will continue to work diligently to uphold the integrity of an increasingly global marketplace."
According to Petrobras’s admissions, while the company’s American Depository Shares traded on the New York Stock Exchange, members of the Petrobras Executive Board were involved in facilitating and directing millions of dollars in corrupt payments to politicians and political parties in Brazil, and members of Petrobras’s Board of Directors were also involved in facilitating bribes that a major Petrobras contractor was paying to Brazilian politicians. During this period, for example, a Petrobras executive directed the payment of illicit funds to stop a parliamentary inquiry into Petrobras contracts, and the executive also directed payments received from Petrobras contractors to be corruptly used to pay millions of dollars to the campaign of a Brazilian politician who had oversight over the location where one of Petrobras’s refineries was being built.
Petrobras admitted that it failed to make and keep books, records and accounts that accurately and fairly reflected the company’s capitalization of property, plant and equipment as a result of the bribes being generated by the company’s contractors with the cooperation of certain Petrobras executives, and that certain Petrobras executives signed false Sarbanes-Oxley (SOX) 302 sub-certifications while they were involved in, and were aware that other executives at Petrobras were involved in, obtaining and facilitating the payment of millions of dollars in bribes to Brazilian politicians, to Brazilian political parties and to themselves. Petrobras also admitted that certain executives failed to implement internal financial and accounting controls in order to continue to facilitate bribe payments to Brazilian politicians and Brazilian political parties.
Petrobras entered into a non-prosecution agreement and agreed to pay a criminal penalty of $853.2 million to resolve the matter. This reflects a 25 percent discount off the low end of the applicable U.S. Sentencing Guidelines fine range for the company’s full cooperation and remediation. In related proceedings, Petrobras reached a settlement with the U.S. Securities and Exchange Commission (SEC) and Petrobras entered into an agreement to reach a settlement with the Ministerio Publico Federal in Brazil. Under the non-prosecution agreement, the United States will credit the amount that Petrobras pays to the SEC and Brazil under their respective agreements, with the Department of Justice and the SEC receiving 10 percent ($85,320,000) each and Brazil receiving the remaining 80 percent ($682,560,000). As part of the agreement, Petrobras has agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to report to the Department on the implementation of its enhanced compliance program.
The Department reached this resolution based on a number of unique factors presented by this case, including that Petrobras is a Brazilian-owned company that entered into a resolution with Brazilian authorities and is subject to oversight by Brazilian authorities, and that, in addition to the significant misconduct engaged in by Petrobras, a number of executives of the company engaged in an embezzlement scheme that victimized the company and its shareholders. In addition, the company did not voluntarily disclose the conduct, but did notify the government of its intent to fully cooperate after learning of the allegations of misconduct; Petrobras fully cooperated in the investigation and fully remediated. Petrobras’s cooperation included conducting a thorough internal investigation, proactively sharing in real time facts discovered during the internal investigation and sharing information that would not have been otherwise available to the Department, making regular factual presentations to the Department, facilitating interviews of and information from foreign witnesses, and voluntarily collecting, analyzing and organizing voluminous evidence and information for the Department in response to requests, including translating key documents. Petrobras also took extensive remedial measures, including replacing the Board of Directors and the Executive Board (the company’s high-level managers) and implementing governance reforms, as well as disciplining employees and ensuring that the company no longer employs or is affiliated with any of the individuals known to the company to be implicated in the conduct at issue in the case.
In the related SEC matter, Petrobras also agreed to pay to the SEC disgorgement and prejudgment interest totaling $933,473,797, which shall be reduced by the amount of any payment Petrobras makes to the class action Settlement Fund in the matter of In re Petrobras Securities Litigation, No. 14-cv-9662 (S.D.N.Y.).
The FBI’s International Corruption Squad in Washington, D.C. investigated the case. Assistant Chiefs Christopher Cestaro and Lorinda Laryea and Trial Attorney Derek Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grace Hill of the Eastern District of Virginia prosecuted the case.
The Department appreciates the significant cooperation provided by the SEC and the Criminal Division’s Office of International Affairs in this case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Owner of Medical Technology Company Pleads Guilty to Evading over $6.3 Million in Income TaxesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LEWIS STAHL, the owner of a Manhattan medical technology company, pled guilty to tax evasion based on his failure to report over $21 million in business income to the IRS, and his evasion of over $6.3 million in income taxes. STAHL pled guilty before U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lewis Stahl, the owner of a successful medical technology company, earned over $21 million in profit. However, despite amassing personal wealth in the tens of millions, Stahl grossly underreported his income to the IRS, reporting income as low as less than $10,000 for the 2011 tax year. Stahl has now pled guilty to tax evasion and faces serious time in federal prison. This case is a prime example that attempting to conceal earned income is far costlier than paying your fare share like honest taxpayers.”
According to the Information to which STAHL pled guilty, and statements made during the proceedings today:
Since at least in or about 2010, STAHL has owned and operated a medical technology company located in New York, New York (the “Medical Technology Company”), a limited liability company that develops and sells medical software applications. The Medical Technology Company holds itself out as a provider of “computer ready” and “fully mobile” applications, which allow physicians to prescribe medications and to order and view diagnostic information, lab results, and cardiology/radiology images.
Between in or about 2010 and in or about 2014, the Medical Technology Company earned over $32 million in gross income. These earnings resulted in over $21 million in business income to STAHL, which he accessed by using business bank accounts and business credit cards. STAHL used this money to fund the purchase of personal items for himself such as clothing, jewelry, watches, real estate rentals, country club benefits, and a firearms collection. Prior to 2015, despite earning this business income from the Medical Technology Company, STAHL failed to file individual tax returns reporting any of the income to the IRS. The Medical Technology Company, likewise, failed to file partnership or corporate tax returns reporting any of the income to the IRS.
In or around March of 2015, an IRS revenue agent (the “IRS Revenue Agent”) contacted STAHL regarding his failure to file for the tax years 2010 through 2014, and asked STAHL to address the situation by filing delinquent Form 1040s for those years (the “Delinquent Returns”). Shortly thereafter, STAHL retained a certified public accountant (the “Accountant”) to file the Delinquent Returns for STAHL. STAHL, however, falsely stated to his Accountant, in sum and substance, and in part, that he was a “W-2” employee only of the Medical Technology Company, that his W-2 income was his only income, and that he had no ownership interest in the Medical Technology Company. In truth and in fact, STAHL had an ownership interest in the Medical Technology Company, and had earned over $21 million in business income from the company, well beyond the income reported on his W-2s.
The Accountant subsequently filed the Delinquent Returns for STAHL, which, as a result of the lies that STAHL told the Accountant, were false and fraudulent. Specifically, the Delinquent Returns falsely claimed that STAHL’s total income was $38,652 in 2010; $7,115 in 2011; $84,615 in 2012; $100,000 in 2013; and $100,000 in 2014. The Delinquent Returns further falsely reported that STAHL did not receive any business income in any of these years, and failed to include a Schedule C detailing the significant amount of business income that STAHL earned from the Medical Technology Company. STAHL’s failure to report over $21 million in business income to the IRS – first by failing to file returns, and then by causing the false Delinquent Returns to be filed by the Accountant – resulted in a loss to the IRS of over $6.3 million in taxes due and owing.
* * *
STAHL, 62, of Florida, pled guilty to one count of attempt to evade or defeat tax, which carries a maximum sentence of five years in prison. STAHL has agreed to pay restitution to the IRS, representing the additional tax due and owing as a result of STAHL’s conduct, in the amount of at least $6,349,689. Sentencing before Judge Abrams is scheduled for January 25, 2019, at 2:30.
The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentence imposed on the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of IRS-CI in this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul and Jennifer L. Beidel are in charge of the prosecution.
Operator of Fall River Glass Company Charged with Failing to Pay Required Employee TaxesRead the Press Release
BOSTON – The owner of a Fall River-based glass company was charged in an indictment in connection with failing to pay the IRS taxes he withheld from his company’s employees.
Moses Rapoza, 83, of Lakeville, was charged in an indictment unsealed today with one count of filing a false tax return and eleven counts of failing to pay over to the IRS the taxes he withheld from employee wages. Rapoza’s whereabouts are currently unknown.
According to the indictment, Rapoza was the owner and operator of Global Specialty Glass Contractors, Inc., a glass installation business located in Fall River. From 2011 through 2014, Rapoza allegedly withheld income taxes and Federal Insurance Contributions Act (FICA) taxes from wages he paid to his employees, but failed to pay the taxes to the IRS on behalf of the employees. Rapoza allegedly filed a false Form 941 tax return with the IRS, knowing that it understated the amount of wages paid to employees, and that – although he had withheld more than $170,000 in taxes from employee wages – he failed to pay those taxes over to the IRS.
The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. The charge of failure to pay over taxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ogleva Charles Mowell Sentenced to 70 Months for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn. - On September 27, 2018, Ogleva Charles Mowell, of LaFollette, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 70 months in federal prison for distributing and possessing child pornography. Following his release from prison, Mowell will be supervised by the U.S. Probation Office for five years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
In April 2018, Mowell pleaded guilty to federal charges stemming from an undercover investigation into the distribution of child pornography over the Internet. A search warrant was issued for Mowell’s residence and his computer was seized. A forensic examination of his computer revealed that Mowell had searched for child pornography on the Internet and saved images of child pornography on his computer. Mowell made his collection of child pornography available to others to download through the use of peer-to-peer software.
“The distribution of child pornography is a serious crime that perpetuates the victimization of children and fuels the demand for the production of more child pornography,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. “Our office will continue to work with investigative agencies to build cases for successful prosecution of the offenders.”
This investigation was conducted by the Knoxville Police Department’s Internet Crimes Against Children Unit and the U.S. Department of Homeland Security, Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
###
Officials from U.S. and European Commission Participate in Bilateral Meetings in Washington D.C. to Discuss Antitrust EnforcementRead the Press Release
Antitrust agency heads from the United States and the European Union met today at the Department of Justice in Washington D.C., to discuss current competition policy issues and increased cooperation in enforcement and policy matters.
The meeting included Assistant Attorney General Makan Delrahim of the U.S Department of Justice’s Antitrust Division, Chairman Joseph Simons of the U.S. Federal Trade Commission, and Commissioner Margrethe Vestager of the European Commission.
The discussions covered a wide range of topics, including digital markets, the proposed Multilateral Framework on Procedures, two-sided markets and platforms, data protection rules and cooperation, vertical mergers, and merger cooperation issues.
“Robust cooperation, convergence around sound economic principles, and leadership regarding the use of fair procedures in enforcement are key international priorities for the Antitrust Division,” said Assistant Attorney General Makan Delrahim. “We are always pleased to meet with our counterparts from Brussels, and to have an opportunity to discuss these important issues. Our working relationship with the European Commission’s DG Competition is essential to ensuring competitive markets in the increasingly interconnected global economy.”
“Our high-level engagement with our European colleagues enables us to deepen mutual understanding of our enforcement policies, facilitating greater convergence and efficiency in the review of trans-Atlantic transactions and conduct,” said Chairman Simons. “Our discussions also contribute to the FTC’s consideration of our approaches to key competition issues that we are evaluating through our current hearings on Competition and Consumer Protection in the 21st Century.”
The U.S. and EU competition agencies have met regularly at the most senior level to promote cooperation and convergence and enhance their close relationship enshrined in the 1991 U.S.-EU agreement on the application of their competition laws.
Notice of Court Proceedings - United States v. Daniel Edward Johnson & Nicole Halliett HollandRead the Press Release
COLUMBIA, SOUTH CAROLINA -- United States Attorney Sherri A. Lydon stated today that an arraignment has been scheduled in the case of United States v. Daniel Edward Johnson and Nicole Halliett Holland, Case No. 3:18-863. Magistrate Judge Shiva V. Hodges will preside.
WHEN: Tuesday, October 2, 2018, 10 a.m.
WHERE: Matthew J. Perry Courthouse
901 Richland Street, Courtroom # 8, Columbia, SC
# # # # #
Nicaraguan Man Charged with Illegal ReentryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that CARLOS PAIZ-CARDENAS, age 28, a native of Nicaragua, was charged today in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, PAIZ-CARDENAS was previously removed from the United States on June 14, 2013. He was later found in the Eastern District of Louisiana on August 21, 2018 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, PAIZ-CARDENAS faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
* * *
New York Heroin Supplier Sentenced to 12 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Luis Miguel Mendez-Rivera, a/k/a El Flaco, age 34, of the Bronx, New York, today to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, from December 2017 through March 6, 2018, Mendez-Rivera conspired with others to distribute between three and 10 kilograms of heroin. In December 2017, a man residing in the Dominican Republic directed Mendez-Rivera to contact a confidential source who was working with law enforcement to provide the source with narcotics. Mendez-Rivera had numerous telephone conversations with the source and agreed to provide the source with a kilogram of heroin on consignment. During the calls, Mendez-Rivera advised the source that his co-conspirator, Milciades D. Pena-Zapata, would deliver the heroin to the source and complete the transaction.
On February 22, 2018, Mendez-Rivera sent his co-conspirator and drug courier, Pena-Zapata, from New York to Maryland to deliver heroin to the source. Pena-Zapata met the source at a previously agreed upon location and they completed the drug transaction in the source’s car. The source and Mendez-Rivera arranged a second transaction for three kilograms of heroin in exchange for $100,000 and three handguns. On March 6, 2018, Pena-Zapata again traveled from New York to Maryland to meet the source. Pena-Zapata got into the source’s car and they drove to a more secluded location where Pena-Zapata removed a large quantity of heroin from his backpack and placed it in the trunk of the source’s car. Pena-Zapata inspected the contents of the suitcase containing three handguns and approximately $100,000. Pena-Zapata was arrested a short time later.
Laboratory analysis confirmed that a total of 3,998.54 grams of heroin was delivered to Maryland by Pena-Zapata on behalf of Mendez-Rivera.
Pena-Zapata, age 35, of Lawrence, Alabama, pleaded guilty to his role in the conspiracy and was sentenced to five years in prison.
United States Attorney Robert K. Hur praised HSI Baltimore, the Montgomery County Police Department and the Prince George’s County Police Department for their work in the investigation, and thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Ray D. McKenzie, who prosecuted the case.
New Orleans Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KEITH A. JAMES, age 28, of New Orleans, was sentenced yesterday to 188 months imprisonment to be followed by a 5 year term of supervised release, by U.S. District Judge Martin L.C. Feldman after being convicted of possession of a firearm by a felon.
According to court documents, JAMES pleaded guilty to being in possession of a firearm on July 11, 2017, having previously been convicted in 2008 for three counts of armed robbery and three counts of purse snatching in the Criminal District Court for the Parish of Orleans.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime-reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco and Firearms and Louisiana Probation & Parole. Assistant United States Attorney Michael McMahon is in charge of the prosecution.
* * *
New Jersey Man Pleads Guilty to Participation in Ticket Investment SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MICHAEL WRIGHT pled guilty in Manhattan federal court to his participation in a scheme to defraud investors who invested millions of dollars based on false representations that their funds would be used to purchase tickets to various live events for re-sale at a profit on the secondary market. WRIGHT pled guilty before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Geoffrey S. Berman said: “Michael Wright admitted today that he and his partners in crime conducted an elaborate ticket-buying scheme to defraud investors of millions of dollars. From creating phony contracts to outright lies, Wright and his cohorts ensured that the money his backers thought they were investing actually went directly into his and his co-defendant’s pockets. Now, Wright has pled guilty to his audacious crimes and faces time in prison for his misdeeds.”
According to allegations in an Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:
WRIGHT participated in a scheme along with Craig Carton and Joseph Meli to induce investors to provide them with millions of dollars, based on representations that the investor funds would be used to purchase blocks of tickets to concerts and other live events, which would then be re-sold on the secondary market. Carton and Meli purportedly had access to those blocks of tickets based on agreements that Meli had with a company that promotes live music and entertainment events (the “Concert Promotion Company”) and that Carton had with a company that operates two arenas in the New York metropolitan area (the “Sports and Entertainment Company”). In fact, neither the Concert Promotion Company nor the Sports and Entertainment Company had any such agreement with Carton, Wright, or Meli, or any entity associated with them. After receiving the investor funds, Carton, Wright, and Meli misappropriated those funds, using them to, among other things, pay personal debts and repay prior investors as part of a Ponzi-like scheme.
For example, on December 8, 2016, a New York-based hedge fund (the “Hedge Fund”) and Carton executed a revolving loan agreement (the “Revolving Loan Agreement”), under which the Hedge Fund agreed to provide Carton with up to $10 million, for the purpose of funding investments in the purchase of tickets of events. The Revolving Loan Agreement provided, in sum and substance, that the proceeds of the loan would be used only to purchase tickets pursuant to agreements for the acquisition of tickets and for limited business expenses. The Hedge Fund would receive a share of the profits from the resale of the tickets.
The Hedge Fund then sent $700,000 to an entity controlled by Meli (the “Meli Entity”) to finance the purchase of tickets. Meli, however, then sent this money to a bank account controlled by WRIGHT, who then, on December 12, 2016, sent $200,000 to Carton’s personal bank account (the “Carton Bank Account”), which Carton then wired to a casino. Also on December 12, WRIGHT sent another $500,000 to an individual who had previously lent Carton $500,000, which was due to be repaid that day.
Later in December 2016, Carton induced the Hedge Fund to wire $2 million to the Sports and Entertainment Company, based purportedly on an agreement he had with the Sports and Entertainment Company (the “Sports and Entertainment Company Agreement”). The Sports and Entertainment Company Agreement gave an entity controlled by Carton (the “Carton Entity”) the right to purchase $2 million of tickets to concerts at one of the venues operated by the Sports and Entertainment Company. Carton, among other things, sent the Hedge Fund a copy of the Sports and Entertainment Company Agreement that purportedly had been signed by the chief executive officer of the Sports and Entertainment Company. However, this agreement was fraudulent and had never been entered into by the Sports and Entertainment Company or signed by the chief executive officer.
On December 20, 2016, when the Hedge Fund wired the $2 million to the Sports and Entertainment Company, Carton contacted the Sports and Entertainment Company and told them, in sum and substance, that the wire had been sent in error and should be sent to the bank account for an entity operated by Carton and WRIGHT, for which WRIGHT is the signatory. After the money was rewired to that account, WRIGHT wired $966,000 to WRIGHT’s personal bank account and $700,000 to the Carton Bank Account. Carton then wired approximately $188,000 from the Carton Bank Account, including at least $133,000 in wires to several casinos.
* * *
WRIGHT, 42, of Upper Saddle River, New Jersey, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Carton is scheduled for trial on October 29, 2018, before the U.S. District Court Judge Colleen McMahon. The pending charges against Carton are merely accusations, and he is presumed innocent unless and until proven guilty.
Meli pled guilty to securities fraud in October 2017 and is currently serving a 78-month sentence imposed by U.S. District Court Judge Kimba M. Wood in April 2018.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the Boston Regional Office of the U.S. Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brendan F. Quigley and Elisha J. Kobre are in charge of the prosecution.
Nearly 100 Arrested on Federal and States Charges -- Multi-State Poly-Drug Network Operating from South Carolina to New Jersey DismantledRead the Press Release
MAJOR TAKEDOWN BY OVER 100 LAW ENFORCEMENT OFFICERS
Over 600 Grams of Heroin, Fentanyl and Nearly a Kilo of Meth Seized
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced a major takedown today of drug traffickers resulting in the dismantling of a multi-state Drug Trafficking Organization (DTO) responsible for distributing over 600 grams of heroin, fentanyl and almost a kilogram of methamphetamine, cocaine and oxycodone. Joining United States Attorney Stuart in the announcement were Drug Enforcement Administration (DEA) Assistant Special Agent in Charge (ASAC) David Gourley, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Resident Agent in Charge (RAC) Adam Black, West Virginia State Police Captain Jason Davis, West Virginia National Guard Lieutenant Colonel William Annie, Fayette County Prosecuting Attorney Larry Harrah, Fayette County Sheriff Mike Fridley, Oak Hill Police Chief Michael Whisman, Fayetteville Police Chief David Kinzer, Nicholas County Sheriff William Nunley, Summersville Police Chief John Nowak, National Park Service Chief Ranger Duane Michael, United States Marshal Michael Baylous, as well as representatives from the Beckley Police Department, Beckley/Raleigh County Drug and Violent Crime Task Force, and the Southern Regional Drug and Violent Crime Task Force. The DEA and ATF offices in Newark, New Jersey also provided valuable assistance in this investigation.
"Today we are taking further steps to tackle the drug crisis which is especially hurting the people of West Virginia," Attorney General Jeff Sessions said. "President Trump has made ending this crisis a top priority for this administration and under his leadership the Department of Justice has taken historic new steps to put drug traffickers in jail. Today we announce the dismantling of a drug trafficking organization that spread addiction and death from West Virginia to New Jersey. As part of this operation, law enforcement has charged around 40 defendants, seized multiple pounds of addictive drugs – including heroin, fentanyl, and oxycodone -- and hundreds of thousands of dollars of allegedly ill-gotten gains. And so I want to thank U.S. Attorney Mike Stuart, DEA, ATF, the Marshals Service, and especially our fabulous state and local partners. By taking drug traffickers off of our streets, they are helping to keep the American people safe."
The takedown today was the result of a long-term investigation led by DEA and the Central West Virginia Drug Task Force (CWVDTF), dubbed “Operation Mountaineer Highway.” A total of 38 individuals have been charged in federal and state court. The long-term investigation which stretched from West Virginia to New Jersey resulted in the seizure of large quantities of controlled substances, over 65 illegally possessed firearms, and over $360,000 in United States currency, which represents proceeds of the DTO’s drug trafficking operations.
The first strike occurred in October 2017 when members of the DEA Charleston Heroin Enforcement Group and Tactical Diversion Squad, and investigators with the CWVDTF arrested a Fayette County drug dealer for selling heroin and methamphetamine. During a post arrest debrief, a drug dealer identified two of his primary drug suppliers. The identified drug suppliers were known to law enforcement in Fayette County, West Virginia, but had eluded investigators. Through their investigation, law enforcement officers were led to a DTO in Newark, New Jersey. Over the course of nine months, investigators conducted an exhaustive investigation linking the local DTO to sources in South Carolina and ultimately to sources in New Jersey.
While this investigation is ongoing, investigators have been able to dismantle a DTO operating across multiple states and responsible for distributing large quantities of methamphetamine, heroin, oxycodone pills, and cocaine. The heroin examined by the DEA lab has been found to contain heroin and fentanyl. The distribution of these drugs occurred in a rural region of West Virginia with a population of less than 10,000 that has been plagued by record high levels of overdose deaths for the past several years. It is believed that the dismantling of this DTO will significantly curtail the opioid scourge in Fayette County and the surrounding area.
The arrests and seizures relating to Operation Mountaineer Highway break down as follows:
- 12 individuals have been charged in four federal indictments in the Southern District of West Virginia with conspiracy to distribute, possession with intent to distribute, and the distribution of heroin and fentanyl, methamphetamine, cocaine, and oxycodone;
- Two defendants have been charged with being a felon in possession of a firearm;
- 26 individuals are facing state charges filed by the Fayette County Prosecuting Attorney;
- Over 1000 oxycodone pills were seized;
- Over 600 grams of Heroin/Fentanyl were seized;
- Almost a kilo of methamphetamine was seized;
- Over $360,000 in United States Currency was seized; and
- Several vehicles were seized that were used to transport controlled substances.
As part of today’s law enforcement actions, nearly 100 individuals are being arrested. In addition to the 38 individuals facing federal and state charges in connection with Operation Mountaineer Highway, an additional 54 individuals are being arrested on state charges in unrelated cases. Over 100 federal, state and local law enforcement officers took part in today’s takedown effort. The West Virginia National Guard also provided a number of personnel in a support function to the operation.
“Today was a major takedown of a major drug trafficking organization but, more important, today was a major takeback – of our streets, towns, and communities,” said United States Mike Stuart. “This is an important day for the people of southern West Virginia. As a result of the remarkable work of multiple law enforcement agencies, a significant drug trafficking organization has been shut down. We have been incredibly aggressive in our efforts to hold drug traffickers accountable, and we will continue our aggressive efforts until the poison peddlers and drug dealers are out of business. This case is a testament to what can be accomplished when federal, state and local law enforcement work so well together towards a common goal.”
Today’s actions would not have been possible without the seamless collaboration of federal, state, and local law enforcement agencies. The investigation was led by the DEA and the Central West Virginia Drug Task Force, with assistance and support from the West Virginia State Police, ATF, the Fayette County Sheriff’s Department, the Nicholas County Sheriff’s Department, the Summersville Police Department, the Oak Hill Police Department, the Beckley Police Department, the Beckley/Raleigh County Drug and Violent Crime Task Force, the Southern Regional Drug and Violent Crime Task Force, and the West Virginia National Guard. The U.S. Attorney’s Office for the Southern District of West Virginia and the Fayette County Prosecuting Attorney’s Office, are working together hand-in-hand to remove these dangerous drug traffickers from our streets.
“These arrests today should send a clear message to anyone wanting to distribute illicit drugs in this community,” said D. Christopher Evans, Special Agent In Charge of DEA’s Louisville Field Division, which oversees operations in West Virginia. “We will find you and we will shut down your operation, wherever you are,” Evans added.
“Today is a monumental day for Fayette County and the State of West Virginia,” said Fayette County Prosecuting Attorney Larry Harrah. “Today was made possible by many hours of great work by all of the law enforcement agencies involved in this historic investigation. I am so proud of the teamwork demonstrated by our dedicated officers. Because of their efforts the drug trade in Fayette County has taken a significant hit and the work continues.”
“When federal, state and local agencies come together to work joint investigations, the cases have substantial impact on communities,” said Captain Jason E. Davis, West Virginia State Police, Bureau of Criminal Investigations. “This case illustrates the benefits of multi-agency collaboration.”
"A project of this scale will have a measurable impact on this area," said Fayette County Sheriff Mike Fridley. "These operations are not just targeting simple street level dealers, the project's goal is to ultimately cut the heads off of many snakes as possible."
"Today we see the results of a long term, multi-agency investigation into the illegal drug trafficking of multiple suspects in and around the City of Oak Hill,” said Oak Hill Police Chief Michael Whisman. “I hope this sends a clear message to others who are involved in this type of illegal activity."
The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
SDWVNews and USAttyStuart
###
NGL Crude Logistics LLC Agrees to Pay $25 Million Civil Penalty and to Retire $10 Million in Renewable Fuel Production Credits Under Settlement with United StatesRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with NGL Crude Logistics, LLC that requires the company to retire 36 million renewable fuel credits and pay a $25 million civil penalty under the settlement to resolve violations of the Renewable Fuel Standard (RFS) program. The cost of the RIN retirement is approximately $10 million.
The Department of Justice and EPA alleged that NGL entered into a series of transactions with Western Dubuque Biodiesel, LLC in 2011 that resulted in the generation of an extra set of renewable fuel credits for approximately 24 million gallons of biodiesel. NGL’s scheme generated approximately 36 million additional credits, known as Renewable Identification Numbers or RINs. RINs are created when a company produces qualifying renewable fuel and can be traded or sold to refineries and importers to use for compliance with renewable fuel production requirements. On July 3, 2018, the United States District Court for the Northern District of Iowa found NGL liable for: (1) failing to retire RINs when it designated and sold biodiesel to Western Dubuque as “feedstock” for the production of biodiesel, (2) causing Western Dubuque to generate invalid RINs and commit other prohibited acts under the RFS program, and (3) transferring approximately 36 million invalid RINs to other entities.
“Enforcement actions such as the one we announce today are essential to ensuring the integrity of government programs,” said Principal Deputy Associate Attorney General Jesse Panuccio. “Fraud in the RFS market will not be tolerated. I applaud the work of the EPA and DOJ enforcement team who achieved today’s excellent result for the taxpayers.”
“A strong enforcement program is essential to maintaining the integrity of the RIN market,” said Assistant Administrator of the Office of Enforcement and Compliance Assurance (OECA) Susan Bodine. “Through this settlement EPA and DOJ are holding NGL accountable for its violations of the RFS program.”
“The Renewable Fuel Standards program is important to Iowa’s agricultural community,” said U.S. Attorney for the Northern District of Iowa Peter Deegan. “Our office is committed to protecting the integrity of the Renewable Fuel Standards program and ensuring a level playing field for Iowa businesses.”
The United States’ complaint alleged that in 2011, NGL purchased millions of gallons of biodiesel on the open market, and that approximately 36 million RINs had been assigned to the biodiesel. NGL sold most of the RINs to other entities. NGL then sold the biodiesel to Western Dubuque, but designated it as a “feedstock.” Western Dubuque reprocessed the biodiesel provided by NGL and generated a second set of RINs for the same fuel. Western Dubuque sold the reprocessed biodiesel and the second set of RINs back to NGL. NGL then sold most of these RINs to other entities. Western Dubuque resolved its alleged violations of the RFS program in a 2016 settlement with the United States.
EPA discovered the violations through a tip from RFS program participants, an inspection, and extensive investigation into the NGL transactions.
EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The RFS program was created under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007.
NGL is a midstream energy provider headquartered in Tulsa, Oklahoma that transports crude oil, and markets and supplies refined products, natural gas liquids, and other products. NGL was known as Gavilon, LLC at the time of the violations.
The proposed settlement, lodged today in the U.S. District Court for the Northern District of Iowa, is subject to a 30-day public comment period and final court approval. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
For more information on the settlement and for information on how to submit a comment, visit www.epa.gov/enforcement/ngl-crude-logistics-llc-clean-air-act-settlement.
Mississippi Nurse Practitioner and Clinic Owner Sentenced to Prison for Role in Compounding Pharmacy Scheme to Defraud TricareRead the Press Release
A Mississippi-based nurse practitioner and former owner of a family health clinic was sentenced to 42 months in prison today for her role in a scheme to defraud health care benefit programs including TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division; Acting Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Susan K. Perry, 58, of Grand Bay, Alabama, was sentenced by U.S. District Judge Keith Starrett of the Southern District of Mississippi, who also ordered Perry to serve three years of supervised release following her prison sentence and pay $1,375,692 in restitution. Perry pleaded guilty on June 15 to one count of conspiracy to commit health care fraud. She was charged in October 2017 in a 13-count indictment.
As part of her plea, Perry admitted her role in a scheme to defraud health care benefit programs by prescribing medically unnecessary compounded medications to individuals who did not need the medications, sometimes without first examining those individuals. Perry admitted that she knew that Advantage Pharmacy, based in Hattiesburg, Mississippi, would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions she signed, and she further expected that the health care benefit programs would pay the claims. From approximately January 2014 through April 2015, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy approximately $1,375,692 based on the claims submitted by Advantage Pharmacy in connection with the compounded medications that Perry prescribed.
The FBI, IRS-CI, DCIS, the Mississippi Bureau of Narcotics and other government agencies investigated the case. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
Mississippi Nurse Practitioner and Clinic Owner Sentenced to Prison for Role in Compounding Pharmacy Scheme to Defraud TricareRead the Press Release
A Mississippi-based nurse practitioner and former owner of a family health clinic was sentenced to 42 months in prison today for her role in a scheme to defraud health care benefit programs including TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division; Acting Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Susan K. Perry, 58, of Grand Bay, Alabama, was sentenced by U.S. District Judge Keith Starrett of the Southern District of Mississippi, who also ordered Perry to serve three years of supervised release following her prison sentence and pay $1,375,692 in restitution. Perry pleaded guilty on June 15 to one count of conspiracy to commit health care fraud. She was charged in October 2017 in a 13-count indictment.
As part of her plea, Perry admitted her role in a scheme to defraud health care benefit programs by prescribing medically unnecessary compounded medications to individuals who did not need the medications, sometimes without first examining those individuals. Perry admitted that she knew that Advantage Pharmacy, based in Hattiesburg, Mississippi, would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions she signed, and she further expected that the health care benefit programs would pay the claims. From approximately January 2014 through April 2015, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy approximately $1,375,692 based on the claims submitted by Advantage Pharmacy in connection with the compounded medications that Perry prescribed.
The FBI, IRS-CI, DCIS, the Mississippi Bureau of Narcotics and other government agencies investigated the case. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
Mexican National Indicted for Growing Marijuana in Shasta Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gilberto Garcia-Garcia, 26, of Mexico, charging him with conspiring to manufacture and manufacturing at least 1,000 marijuana plants and depredation of public lands and resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers who were conducting aerial surveillance spotted two large marijuana cultivation sites near the Big French Creek Road in the Shasta-Trinity National Forest, in Trinity County. Law enforcement hiked into the area and observed Garcia-Garcia and another man for approximately 50 minutes as they tended marijuana plants and harvested marijuana. The two men fled when they saw the officers; only Garcia-Garcia was apprehended. Officers counted 11,223 marijuana plants at the cultivation site. The plants were covered in a white powder that appeared to be carbofuran, an insecticide that is highly toxic to both humans and wildlife.
This case is the product of an investigation by the Bureau of Land Management, California Department of Fish and Wildlife, and Trinity County Sheriff’s Department. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, Garcia-Garcia faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine for each of the marijuana cultivation counts. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the depredation of public lands and resources count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
McKeesport Woman Charged with Misusing Social Security Benefit FundsRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of Social Security representative payee misuse, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on September 26, named Season Fuehrer, 43, as the sole defendant.
According to the indictment, from in and around January 2017, and continuing thereafter to in and around December 2017, Fuehrer, having filed an application for Social Security disability insurance benefits on behalf of a minor child, received and converted $16,094.00 in benefits to her own use.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.