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7 November 2018
Convicted Felon Pleads Guilty to Firearms and Counterfeit Currency OffensesRead the Press Release
ALEXANDRIA, Va. – A man from the Washington, D.C. area pleaded guilty today to possessing multiple firearms as a convicted felon and passing counterfeit Federal Reserve Notes.
According to court documents, Kevin Bushrod, 31, purchased two AR-15 semiautomatic rifles in June from an individual who was unaware that Bushrod had previously been convicted of numerous felony offenses. Bushrod used an alias during the transaction, which occurred in Alexandria, and paid for the firearms using, in part, counterfeit Federal Reserve Notes.
Less than one week later, on June 14, the Leesburg Police Department conducted a traffic stop of Bushrod’s Mercedes Benz vehicle in Leesburg. Bushrod fled in his vehicle while an officer was speaking on the phone with Bushrod’s federal Probation Officer. While being pursued by law enforcement, Bushrod began driving in an aggressive and dangerous manner, and his reckless driving forced other vehicles to take evasive actions to keep from being struck. Bushrod then jumped out of his vehicle without turning it off and continued to flee on foot, to include scaling a fence and falling 25 to 30 feet into a wooded area. Bushrod was finally apprehended near an abandoned outbuilding deep within the wooded area, where law enforcement officers and a K-9 established a security perimeter.
Following a court-authorized search of Bushrod’s Mercedes Benz vehicle, law enforcement located a Smith & Wesson AR-15 semiautomatic rifle that Bushrod previously purchased with counterfeit currency, and a loaded FNX-9 9mm semiautomatic pistol. Bushrod’s vehicle also contained, among other items, a stash of counterfeit Federal Reserve Notes, additional ammunition, a knife, multiple baggies containing suspected cocaine, digital scales, and five cell phones.
Bushrod faces a maximum penalty of 20 years in prison on the counterfeit currency charge and 10 years in prison on the firearms charge when sentenced on Jan. 25, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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. The Department of Justice reinvigorated PSN in 2017 as part of a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, Gregory C. Brown, Chief of Leesburg Police, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Significant investigative assistance was provided by the FBI’s Washington Field Office’s Safe Streets/HIDTA Task Force. Assistant U.S. Attorney Raj Parekh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-395.
Convicted Felon Heads to Prison for Firearms ViolationRead the Press Release
McALLEN, Texas – A 32-year-old Donna man has been sentenced in federal court for being a felon unlawfully in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Joaquin Ramos De La Cruz pleaded guilty Sept. 1, 2017.
Today, U.S. District Judge Randy Crane handed De La Cruz a sentence of 204 months in federal prison to be immediately followed by three years of supervised release. De La Cruz had previously been convicted for numerous criminal offenses, including aggravated robbery, aggravated assault and attempted murder. The court found him to be an armed career criminal. In handing down the sentence, Judge Crane considered De La Cruz’s disregard for human life displayed in his prior criminal conduct in which he discharged firearms at multiple individuals in separate criminal episodes. The court also considered several jail calls the defendant made in which he threatened others with death while awaiting sentencing.
On Jan. 17, 2017, the U.S. Marshals Service (USMS) and the Law Enforcement Emergency Regional Response Team (LEERT) attempted to execute an arrest warrant for De La Cruz at a residence in Donna. While authorities entered the residence, De La Cruz discharged multiple rounds from a Ruger, Model P95, 9mm pistol in an attempt to exit through a locked rear door to the residence. De La Cruz eventually exited, but was promptly apprehended. Agents recovered the Ruger 9mm pistol at the scene.
As a convicted felon, he is prohibited by federal law of possessing any firearm or ammunition.
In federal custody since his arrest, De La Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the USMS and LEERT. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Co-Owners of Miami Pain Management Clinic and Patient Recruiter Sentenced to Prison for Scheme to Distribute Medically Unnecessary Opioid PrescriptionsRead the Press Release
The husband and wife co-owners of a Miami, Florida pain management clinic and a patient recruiter who doubled as a drug diverter were sentenced to prison today for their participation in a scheme to unlawfully distribute thousands of pills of oxycodone.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
David Bosch, 46, and Tania Sanchez, 47, both of Hialeah, Florida, and Odalys Abreu, 45, of Miami, were sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida. Bosch, Sanchez and Abreu were sentenced to serve 108, 97 and 57 months in prison followed by three years of supervised release, respectively. In addition to the prison term, U.S. District Court Judge Moore ordered Abreu to pay a forfeiture money judgment of $75,000 and ordered Bosch and Sanchez to pay a forfeiture money judgment in the amount of $131,250, jointly and severally. Each of the defendants pleaded guilty in August 2018 to one count of conspiracy to distribute controlled substances.
“The three defendants sentenced today ran a pill mill masquerading as a cash-only ‘pain clinic’ that issued medically unnecessary prescriptions for thousands of tablets of oxycodone,” said Assistant Attorney General Benczkowski. “The Department of Justice will use every tool at its disposal to aggressively pursue the pill mills—and their owners and operators—flooding our communities with illicit opioids that kill tens of thousands of Americans every year.”
“We are committed to investigating healthcare providers who illegally distribute opioids like common drug dealers,” said HHS-OIG Special Agent in Charge Richmond. “We will continue to work closely with our law enforcement partners to hold accountable those who are fueling the deadly opioid epidemic.”
According to admissions made as part of their plea agreements, Bosch and Sanchez owned and operated East Medical Office Inc. (East), purportedly a pain management clinic, located at 3778 West 12th Avenue, in Hialeah. Bosch incorporated the cash-only clinic in April 2017 and ran it with Sanchez until their arrests on May 3, 2018. Bosch and Sanchez hired a physician to be the purported medical doctor of East because they knew the physician would write prescriptions for oxycodone without regard to medical necessity, they admitted. They paid the physician $125 for each prescription. They also admittedly conspired with patient recruiters and drug diverters to distribute oxycodone. Bosch introduced a purported patient recruiter to Abreu and informed the recruiter that the recruiter could make money by obtaining oxycodone pills from medically unnecessary prescriptions from East and then selling the pills, Bosh admitted. Additionally, Sanchez filled out fraudulent medical paperwork for purported patients, she admitted.
According to admissions made as part of her plea agreement, Abreu recruited her own patients to visit East. Abreu brought to East at least 18 individuals who paid approximately $250 for each purported “medical consultation” in order to receive controlled substances, especially oxycodone, that were not medically necessary. Abreu’s recruits received prescriptions for at least 5,000 tablets of oxycodone 30 mg. Abreu also offered to purchase pills from another individual whom she believed was a patient recruiter at East, she admitted.
Ledif Acanda Machado, 39, of Miami, Florida, who was charged in this conspiracy, remains a fugitive.
This case was investigated by the FBI, HHS-OIG, USSS and the DEA. Trial Attorney Adam Yoffie of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 14 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Cincinnati Man Sentenced to Life in Prison for Causing a Fatal OverdoseRead the Press Release
COVINGTON, Ky. – Johnny L. Shelton, 41, of Cincinnati, was sentenced today to life in prison, by United States District Judge David L. Bunning, for conspiring to distribute carfentanil resulting in death.
Shelton was convicted in June 2018, following a five-day jury trial. According to testimony at trial, Shelton led a conspiracy to smuggle carfentanil, an extremely powerful opioid, into the Boone County Jail Work Camp, on or about October 15, 2016. Evidence revealed that Timothy Marcum, a fellow inmate, consumed some of the carfentanil and died. Jailers found Marcum’s body, in the work camp, during the early morning hours of October 16, 2016.
Under federal law, Shelton will not be eligible for release from prison. The life sentence was mandated because Shelton’s conduct caused death and he had a prior conviction for drug trafficking. Court documents showed that Shelton was convicted of felony drug trafficking offenses on five prior occasions in Ohio. Other members of the conspiracy have been previously sentenced. Chad Prodoehl was tried, convicted, and sentenced to 300 months in prison, in May 2018. Gordon Wanser pled guilty and was sentenced to 43 months in prison, in July 2018.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly made the announcement. The investigation was conducted by the Drug Enforcement Administration. The United States was represented by Assistant United States Attorneys Tony Bracke and Wade Napier.
Charter Owner Pleads Guilty to Misconduct or Neglect that Resulted in DeathRead the Press Release
Laurent Marc-Antoine Jean Maubert-Cayla pled guilty on November 5, 2018, to misconduct or neglect of a charter owner that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.
According to the court record, including the agreed upon factual proffer, Maubert-Cayla, originally of France, was a part owner of the MIAMI VICE, a 91-foot performance yacht. Maubert-Cayla offered the yacht for charters on a website, and employed Captain Mauricio Alvarez to drive the yacht during charters from approximately November of 2017 until April of 2018. The MIAMI VICE charter operation was illegal because, among other reasons, Alvarez did not have a valid United States Coast Guard license. In fact, Alvarez received a ticket from the United States Coast Guard in March of 2018 for operating a charter on board the MIAMI VICE without an appropriate Coast Guard license. In addition, Maubert-Cayla knew that Alvarez was heavily using cocaine and alcohol during the period he served as captain on board the MIAMI VICE, and had filmed Alvarez using cocaine as recently as March 29, 2018.
On April 1, 2018, Maubert-Cayla chartered the MIAMI VICE to a group of individuals, who met and paid Maubert-Cayla at the Sea Isle Marina. The MIAMI VICE then left the Sea Isle Marina with Alvarez acting as captain. Alvarez drove the yacht at a high rate of speed and beached it on Monument Island, where the charter patrons, including victim R.M.P., began to swim. Alvarez then decided to leave the Island, but did not ensure that everybody was on board the yacht before doing so. Alvarez started the yacht’s 4500 horsepower engines and accelerated them in reverse, directly to where victim R.M.P. was swimming. R.M.P. was caught in the MIAMI VICE’s propellers and killed.
Maubert-Cayla is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 20, 2019, at 9:30 a.m.
Mauricio Alvarez pled guilty for his misconduct or neglect as a ship officer (yacht captain) that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115 (Case No. 18-CR-20314). He is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on November 28, 2018, at 9:00 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS and FWC in this matter. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorneys Philip Jones and Emily Rose.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Central Valley Drug Trafficker Sentenced to More Than A Decade in PrisonRead the Press Release
SAN FRANCISCO – Daniel Jimenez was sentenced today to 10 years and 8 months in prison for his involvement in a cocaine and methamphetamine trafficking conspiracy, announced United States Attorney Alex G. Tse and Drug Enforcement Administration Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Jimenez, 48, of Ballico, Calif., pleaded guilty to the charges on December 5, 2017. As part of his plea agreement, Jimenez acknowledged that he participated in a conspiracy to traffic cocaine and methamphetamine. Jimenez admitted that he facilitated the storage of controlled substances intended for distribution. He also admitted to assisting his co-defendants in receiving cocaine and methamphetamine and exchanging the cash proceeds of drug sales.
Jimenez was arrested on October 13, 2015. As part of his plea agreement, he admitted that on the day before his arrest, October 12, 2015, one of his co-conspirators came to his home to deliver cocaine and methamphetamine. On the day of his arrest, law enforcement authorities executed a search warrant at Jimenez’s residence in Ballico. Authorities found approximately 14.3 kilograms of cocaine inside a hidden compartment in a Nissan Versa sedan parked in Jimenez’s garage, as well as digital scales, a money counter, packaging materials, and two handguns in Jimenez’s garage. Authorities found approximately 1.3 kilograms of methamphetamine and $369,040 in U.S. currency inside of a hidden compartment in a Chevrolet SUV parked on Jimenez’s yard. Authorities located approximately $2,589 in U.S. currency in Jimenez’s bedroom.
On November 19, 2015, a federal grand jury indicted Jimenez, charging him and twelve co-defendants with, among other charges, conspiracy to distribute and possess with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 846 & 841(a)(1). Pursuant to his plea agreement, Jimenez pleaded guilty to that charge. In addition to the 128-month prison term, Judge Donato sentenced Jimenez to a 5-year term of supervised release and 400 hours of community service. The defendant has been in custody since his arrest.
Jimenez’s sentence brings to ten the number of defendants sentenced as part of the conspiracy to distribute and possess with intent to distribute controlled substances in this case. All twelve of Jimenez’s co-defendants have pleaded guilty. The defendants are as follows:
Defendant
Age/
Residence
Charges
Status
Jesus Guadalupe Rojas
32/
Turlock
Distribution of methamphetamine, 21 U.S.C. §§ 841(a)(1)
Sentenced on June 14, 2017, to 24 months in prison and 3 years supervised release.
Jose Armando Mendoza Linares
42/
Turlock
Conspiracy to distribute and possess with intent to distribute methamphetamine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on October 25, 2017, to 60 months in prison and 5 years supervised release.
Gabriel Estrada
41/
Compton
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on December 13, 2017, to 70 months in prison and 3 years supervised release
Vanessa Valdez
31/
Chula Vista
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on December 13, 2017, to 22 months in prison and 3 years supervised release.
Elias Dominguez
46/
Patterson
Conspiracy to distribute and possess with intent to distribute methamphetamine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on January 24, 2018, to 55 months in prison and 5 years supervised release.
Carlos Martinez
26/
Hayward
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on February 21, 2018, to 30 months in prison and 3 years supervised release.
Ismael Mendoza Rodriguez
37/
Turlock
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Possession of a firearm in furtherance of drug trafficking, 18 U.S.C. § 924(c)
Sentenced on February 21, 2018, to 200 months in prison and 5 years supervised release.
Michael Sherman
48/
Lathrop
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on February 28, 2018, to 32 months in prison and 3 years supervised release.
Ruben Franco Lopez
48/
Turlock
Conspiracy to distribute and possess with intent to distribute cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on March 7, 2018, to 37 months in prison and 3 years supervised release.
Manuel Lara Andrade
64/
Delhi
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Sentenced March 14, 2018, to 140 months in prison and 5 years supervised release.
Manuel Gonzalez Chavez
42/
Stockton
Conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
Possession of a firearm in furtherance of drug trafficking, 18 U.S.C. § 924(c)
To be sentenced December 5, 2018.
Maximum sentence:
Conspiracy-
Life in prison (mandatory minimum 10 years in prison)
Firearm charge-
Life in prison
(mandatory minimum 25 years in prison)
Carlos Olivares Hernandez
52/
Turlock
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, 21 U.S.C. §§ 846 & 841(a)(1)
To be sentenced on January 9, 2019.
Maximum sentence: Life in prison (mandatory minimum 10 years in prison)
During the course of this investigation, law enforcement seized more than 40 pounds of methamphetamine, more than 65 pounds of cocaine, more than 11 pounds of heroin, more than $1,200,000 in cash drug proceeds, and approximately twelve firearms.
Assistant U.S. Attorneys Christiaan Highsmith, Sheila Armbrust, Katie Burroughs Medearis, and Gregg Lowder are prosecuting the case with the assistance of Theresa Benitez, Ana Guerra, and Michelle Alter Eck. The prosecution is the result of an investigation by the DEA, the Concord Police Department, and the IRS Criminal Investigations. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Carmichaels Woman Sentenced for Defrauding Social Security AdministrationRead the Press Release
PITTSBURGH, PA - A Greene County resident has been sentenced in federal court to four years of probation, together with twelve months of home detention, and restitution of $115,597.94 on her conviction of Social Security fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Cindy Hancheck, 62, of Carmichaels, Pennsylvania.
According to information presented to the court, from 1999 to 2002, Hancheck made a series of false statements to the Social Security Administration, such as falsely claiming that her husband had left her home and that she did not know his whereabouts. Between 1999 and 2016, Hancheck failed to disclose to the Social Security Administration her husband’s continued presence in her household and his continued financial support of her, with the intent fraudulently to secure Supplemental Security Income benefits. From January 2000 to February 2016, Hancheck received and converted $115,597.94 in Supplemental Security Income benefits to which she knew she was not entitled.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the Social Security Administration – Office of Inspector General for the investigation leading to the successful prosecution of Cindy Hancheck.
Canaan Man Pleads Guilty to Transporting and Possessing Child PornographyRead the Press Release
CONCORD - Zachary A. C. Benoit, 28, of Canaan, pleaded guilty in federal court to transportation and possession of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the summer of 2017, the Grafton County Sheriff’s Department was conducting an online investigation into individuals involved in the trading of illegal images of child pornography. Benoit was identified after he uploaded numerous images of child sexual abuse, which were intercepted by law enforcement. Forensic examinations of several of Benoit’s electronic devices revealed thousands of images and videos depicting the sexual assaults of children including babies and toddlers.
Benoit is scheduled to be sentenced on March 6, 2019. He is subject to a minimum mandatory sentence of 5 years.
“Among the most important roles of law enforcement is to protect innocent children,” said U.S. Attorney Murray. “We work closely with our colleagues to investigate and prosecute crimes involving child pornography and child exploitation. Those who commit these crimes should understand that they will be prosecuted aggressively.”
“We are very glad to see justice done in this disturbing case,” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston. “This case would not have been successful without the critical support from our local and state partners. Considering the repulsive nature of the crimes committed against the most innocent of victims in this case, we look forward to the sentencing phase in this investigation.”
This matter was investigated by the Grafton County Sheriff's Department, Lebanon Police Department, Nashua Police Department, and members of the Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney Helen W. Fitzgibbon with assistance from the Department of Homeland Security.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Camp Verde Man Sentenced to 27 Months in Prison for Burglary of Tribal EntityRead the Press Release
PHOENIX – Earlier this week, Francisco Joseph Doungeva, 44, of Camp Verde, Ariz., was sentenced by United States District Judge Douglas L. Rayes to 27 months in federal prison, followed by one year of supervised release. On Aug. 6, 2018, Doungeva had previously pleaded guilty to one count of burglary.
On Jan. 6, 2018, Doungeva, an enrolled member of the Yavapai-Apache Nation, burglarized Cloverleaf Ranch, a property owned and operated by the Yavapai-Apache Nation Department of Agriculture. Doungeva, who stole farming equipment and a vehicle, is a former employee of the ranch.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-8158-PCT-DLR
RELEASE NUMBER: 2018-147_ Doungeva
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Man Pleads Guilty to Lying to Federal AgentsRead the Press Release
Abingdon, VIRGINIA – A California man, who made threats of violence against Virginia Congressman Tom Garrett, pleaded guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to one count of lying to federal agents, United States Attorney Thomas T. Cullen announced.
Eun Soo Lee, 24, of Cypress, California, waived his right to be indicted and pleaded guilty yesterday to a one-count felony Information charging him with lying to a federal agent.
“We must not mistake threats of violence for free speech,” United States Attorney Cullen stated today. “Although the First Amendment protects the right to express political views, its protections do not extend to communications that threaten the safety and well-being of any person, elected official or otherwise.”
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Randy Ramseyer, in May of 2017, Lee, using a fake Facebook account and virtual private network to hide his identity, made threats against Congressman Garrett.
Those threats included, but were not limited to:
“You’re dead if I ever meet you in real life, fu****. I’ll fu***** kill you.”
When questioned by law enforcement, Lee denied having a Facebook account, denied ever using a fake Facebook accounts, and denied ever sending messages to Congressman Garrett. Notwithstanding Lee’s efforts to hide his identity, investigators traced the messages to Lee, who eventually admitted to sending the threats.
United States District Judge James P. Jones will sentence Lee on January 30, 2019 at 2:30 p.m.
The investigation of the case was conducted by the United States Capitol Police, with the assistance of the Federal Bureau of Investigation and Orange County (CA) Sheriff’s Office. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Brooklyn Center Man Sentenced to 92 Months in Prison for Tax Fraud and Identity TheftRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ELLIS ALANCE BANKS, 53, to 68 months for conspiracy to defraud the United States, and 24 months for aggravated identity theft, to be served consecutively. He was sentenced on November 7, 2018, by Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. Judge Doty also ordered more than one million dollars in restitution.
ELLIS ALANCE BANKS, pleaded guilty on May 24, 2018. According to documents filed in court including BANKS’ guilty plea, from at least January 31, 2013 to at least May 28, 2016, BANKS defrauded the United States by filing over 250 false tax returns seeking $1.5 million in fraudulent tax refunds. Additionally, he obtained social security numbers, dates of birth, and other personal identifying information of individuals to use to file fraudulent income tax returns.
“Millions of hardworking Americans pay their taxes expecting that money to be used to fund the essential needs of Government,” stated IRS Criminal Investigation Special Agent in Charge Gabe Grchan. “Ellis Banks stole more than one million dollars from the pockets of our citizens and this sentence illustrates that there are consequences for exploiting others through fraud and deceit to steal from the United States Treasury.”
This case was the result of an investigation conducted by the Internal Revenue Service.
Assistant U.S. Attorney Michelle Jones prosecuted the case.
Defendant Information:
ELLIS ALANCE BANKS, 53
Brooklyn Center, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- Aggravated identity theft, 1 count
Sentenced:
- 92 months in prison
- Three years supervised release
- $1,001,999.49 in restitution
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Boise Man Sentenced to 15 Years in Prison for Distribution of Child PornographyRead the Press Release
BOISE – Neal G. Tilton, 40, of Boise, was sentenced yesterday in U.S. District Court to 180 months in prison followed by 10 years supervised release, for distribution of child pornography, U.S. Attorney Bart M. Davis announced. The sentence was imposed by Senior U.S. District Court Judge Edward J. Lodge. Tilton pleaded guilty on April 12, 2018.
According to court records, in August 2017, an investigator in Texas was monitoring a chat room where images of child pornography were being traded. An individual from Idaho, later identified as Tilton, posted a link to an online storage account containing images of child pornography. The investigation was referred to the Boise Police Department (BPD). U.S. Magistrate Judge Candy W. Dale signed a search warrant for the online storage account and an associated e-mail account, and the BPD detective identified the accounts as belonging to Tilton and containing child pornography. The e-mail account also contained evidence that Tilton was acting as the administrator of the chat room, had created rules for access and involvement in the child pornography trading chat room, and was trading images of child pornography via e-mail.
The BPD detective also discovered that Tilton had recently been arrested for leaving the scene of an accident and driving under the influence. Tilton had left his wallet and his cell phone in the vehicle after fleeing the scene of the accident. Judge Dale signed a search warrant for the cell phone, and the BPD detective discovered the phone contained additional evidence of the distribution of child pornography, including numerous images of child pornography.
The case was investigated by the Boise Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Benton Man Charged with Illegal Machinegun PossessionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Jacob Hasay, age 21, of Benton, Pennsylvania, was charged in a criminal information with the illegal possession of a machinegun.
According to United States Attorney David J. Freed, the information alleges that Hasay possessed a Glock 19 9mm bearing an auto sear from October 22, 2017 through August 23, 2018. Law enforcement identified Hasay after he posted content in online forums espousing racist, white supremacist, and Nazi ideologies, and threatened to commit a hate crime.
The information also seeks forfeiture of several firearms, ammunition, and firearms components, including:
- Glock 19 9mm bearing an auto sear;
- CAA Model G3, Micro Roni pistol carbine conversion bearing a scope;
- IWI Model MP Uzi bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- GSG Model 522 bearing a shortened barrel and a Black and Brown optic (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Charter Arms Model AR-7 Explorer bearing a shortened barrel (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Mossberg Model 500A bearing a shortened barrel;
- I.O. Inc. Sporter bearing a suppressor (a semiautomatic firearm that is capable of accepting a large capacity magazine); and
- two suppressors.
Hasay has remained in detention since his arrest on August 23, 2018.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Phillip J. Caraballo 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Bakersfield Trucker Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. — Darrell Leon Jennings, 51, of Bakersfield, pleaded guilty today to conspiring to distribute and possess with intent to distribute heroin and cocaine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jennings, a trucker doing business in Moreno Valley as Jennings Transportation, assisted Mario Alvarez-Muniz, 50, of Taft, in transporting 6 kilograms of heroin and 11 kilograms of cocaine destined for Chicago. After Alvarez-Muniz arranged for the shipment of the drugs from Mexico to Mira Loma, Jennings picked up the drugs and drove back to Bakersfield where he was stopped by agents. A police dog located the drugs in a customized hidden compartment in Jennings’ truck.
Jennings is scheduled for sentencing on January 28, 2019, by Chief U.S. District Judge Lawrence J. O’Neill. Jennings faces a mandatory minimum statutory penalty of 10 years in prison and a maximum penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Co-defendant Alvarez-Muniz previously pleaded guilty and was sentenced to 10 years and one month in prison.
This case is the product of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation by the U.S. Drug Enforcement Administration, California Highway Patrol, Bakersfield Police Department, and Kern County Probation Office. OCDETF is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and related criminal enterprises. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Assistant U.S. Attorney Brandon Hale Receives Professionalism AwardRead the Press Release
OKLAHOMA CITY – Assistant U.S. Attorney Brandon Hale has been named the prosecutorial Professional Advocate of the Year by the Criminal Law Section of the Oklahoma Bar Association, announced Robert J. Troester of the U.S. Attorney’s Office. Mr. Hale received the award today at the Section’s luncheon at the Oklahoma Bar Association’s Annual Meeting in Tulsa. Each year, the Criminal Law Section recognizes a prosecutor and a defense attorney who exhibit superior advocacy skills before the court and consistently show professionalism, courtesy, and respect to opposing counsel in the spirit of the adversarial system.
Since Mr. Hale became an Assistant U.S. Attorney in 2008, his practice has focused on Project Safe Childhood, a long-standing Department initiative to prosecute child pornography and other child exploitation offenses. A graduate of the University of Oklahoma College of Law, he serves as the Professional Responsibility Officer for the U.S. Attorney’s Office’s Criminal Division. In addition to his role at the Department of Justice, he serves as an officer in the Navy JAG Corps.
Anchorage Man Found Guilty of September 2018 Bank RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man was found guilty of one count of credit union robbery, in connection with the September 2018 robbery of Alaska USA Federal Credit Union, located at 500 West 36th Avenue in Anchorage.
Eyob Eric Stewart Imlach, 23, of Anchorage, was convicted by U.S. District Judge Sharon L. Gleason after a bench trial lasting a little over one day. As a result of his conviction, Imlach faces a maximum penalty of up to twenty years in prison, and a fine of up to $250,000. The sentencing hearing is set for Feb. 4, 2019.
According to evidence presented at trial, on Sept. 6, 2018, Imlach entered Alaska USA at approximately 12:24 pm, wearing a dark parka with the hood pulled over his head and carrying a backpack. After entering the credit union, Imlach approached a teller and wrote a note on the back of a check that had his name and address, which read “Give me all the $.” The teller did not immediately give cash to Imlach, so he passed the note to a second teller. Imlach received approximately $1,778 from the second teller, and then left the credit union with the money.
After the robbery, an Alaska USA employee observed Imlach walk across the parking lot along W. 36th Avenue and enter the Qupqugiag Inn. Within minutes, APD officers surrounded the Inn and entered the building. Imlach tried to flee by opening a window and climbing out onto a deck; however, officers positioned on that side of the building immediately detained him. Officers recovered Imlach’s backpack, which was located in a black garbage bag inside the Inn and near the window he climbed out of. Also recovered were numerous bills in different denominations of U.S. currency scattered around common areas of the Inn, including inside a small refrigerator.
FBI agents searched Imlach’s backpack and recovered the note used to commit the robbery, clothing worn during the robbery, and U.S. currency. The investigation further revealed that, about an hour before the robbery, Imlach had drawn attention inside the ASRC building located near Alaska USA, after trying to seek access to suites on the floors above the main lobby. Imlach was denied access but refused to leave the building. APD was called, and they subsequently escorted Imlach out of the building.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Stephen Corso and Charisse Arce.
Alleged Kidnapper Charged with Making False Statements to Hide Identity and Receive Federal BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned a seven-count indictment today charging ALLAN MANN, JR., also known as “Hailee Randolph DeSouza” and Hailey R. DeSouza,” 66, with false statement offenses related to his living in the U.S. under an assumed name for approximately 30 years.
As alleged in court documents, Allan Mann abducted his 21-month-old son, Jermaine Allan Mann, on June 24, 1987, during a court-ordered visit in Toronto, Canada. Allan Mann, who is a Canadian citizen, and his son subsequently entered the U.S. Allan Mann changed his name to Hailee Randolph DeSouza, changed the name of his son, and acquired counterfeit birth certificates for him and his son. Allan Mann has never applied for nor received citizenship status in the U.S.
The indictment alleges that, in June 1990, Mann, using the name Hailee Randolph DeSouza, applied for and received a Social Security Number. In support of this application, Mann presented his counterfeit birth certificate. In May 2018, Mann, using his alias, applied for a replacement Social Security card.
It is further alleged that Mann has participated in the U.S. Department of Housing and Urban Development (“HUD”) Section 8 subsidized housing program at various times since 2004. Mann most recently resided in Section 8 subsidized housing in Vernon, Connecticut. Mann has made multiple false statements on HUD forms he signed in connection with his participation in the Section 8 program. HUD has paid tens of thousands of dollars in housing assistance payments on Mann’s behalf.
The indictment alleges that Mann also made multiple false statements on applications to participate in the State of Connecticut’s Medicaid program. Since January 2014, Medicaid has paid tens of thousands of dollars for Mann’s medical expenses.
The indictment charges Mann with four counts of making a false statement, and three counts of making a false statement in a healthcare matter. Each charge carries a maximum term of imprisonment of five years.
Mann has been detained since October 26, 2018, when he was arrested on a criminal complaint.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Marshals Service, U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Department of Health and Human Services –Office of the Inspector General, U.S. Department of State – Bureau of Diplomatic Security, Social Security Administration – Office of Inspector General, Toronto Police Service, Royal Canadian Mounted Police and the Vernon Police Department. The Missing Children Society of Canada and the National Center for Missing and Exploited Children have provided critical assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Hal Chen.
Alien Sentenced for Unlawful Possession of a Firearm and Judicially Ordered Deported to EgyptRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that TAMER AHMED QAID SAID RABEH, age 37, of Egypt, illegally present in the United States and residing in Pender County, North Carolina, was sentenced today to 18 months imprisonment, after an August 7, 2018, guilty plea to illegal and unlawful alien in possession of a firearm. According to court records, RABEH overstayed his visitor visa and was encountered by the Pender County Sheriff’s Office in possession of a stolen firearm during a residential breaking and entering investigation.
RABEH was sentenced in Greenville by Senior United States District Court Judge Malcolm J. Howard who in addition to the term of incarceration also issued a judicial order of deportation ordering the defendant’s prompt removal from the United States to Egypt upon release from federal custody.
The case was investigated by Homeland Security Investigations and the Pender County Sheriff’s Office.
12 Charged in Investigation into Drug Trafficking in Butler, Beaver and Allegheny CountiesRead the Press Release
PITTSBURGH, PA – Twelve Western Pennsylvania residents have been charged in a superseding indictment by a federal grand jury in Pittsburgh, Pennsylvania, with violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The eight-count superseding indictment named:
Shawn Hendrix, 42, of Cranberry Township, PA;
Nikia Perkins, 44, of Monaca, PA;
Adrian Jordan, 28, of Braddock, PA;
Leroy George, 49, of Johnstown, PA;
Thomas Hannon, 36, of Aliquippa, PA;
Aleece Bowser, 32, of Monaca, PA;
Ashley Miller, 33, of Aliquippa, PA;
Carlisha Williams, 29, of Aliquippa, PA;
Sheila Alford, 61, of Aliquippa, PA;
Michael Henry, 36, of McKeesport, PA;
Jeremy Fooks, 32, of Pittsburgh, PA; and
Terry Johnson, 34, of McKees Rocks, PA.
According to the superseding indictment, from in and around September 2016, continuing until in and around July 2017, the defendants conspired to distribute and possess with the intent to distribute 400 grams or more of fentanyl, and a quantity of heroin. In addition, on various dates during the course of the conspiracy, defendants Shawn Hendrix, Nikia Perkins, Adrian Jordan, Aleece Bowser, Ashley Miller, Carlisha Williams, and Sheila Alford are charged with the crimes of possession with the intent to distribute fentanyl or carfentanil, and/or attempts to possess with the intent to distribute fentanyl. Defendant Jeremy Fooks is further charged with possession of ammunition by a convicted felon.
For the drug charges, the law provides for a maximum total sentence of not less than 10 and years up to life in prison, a fine of $10,000,000, or both. For the ammunition charge, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
This prosecution is part of a long-term investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United States Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department. The Department of Homeland Security Investigators also assisted in the investigation leading to the Superseding Indictment in this case.
This investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
6 November 2018
Wyoming County Man Charged with Distribution of Fentanyl Resulting in Death and Serious Bodily InjuryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Eugene Rought, age 30, of Tunkhannock, Pennsylvania, was indicted on October 16, 2018, by a federal grand jury for drug distribution resulting in death and serious bodily injury. The case was unsealed following Rought’s initial appearance.
According to United States Attorney David J. Freed, the indictment alleges that on or about August 16, 2018, Rought knowingly and intentionally distributed and possessed with intent to distribute fentanyl, a Schedule II controlled substance, causing the death of one person and serious bodily injury to another.
The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Wyoming County District Attorney’s Office, and the Wyoming County Detectives. United States Attorney Michelle Olshefski is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment. The maximum penalty for possession with intent to distribute a controlled substance is 20 years imprisonment and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Windsor Man Pleads Guilty to Enticing Minor to Engage in SexRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDREW CUNNINGHAM, 38, formerly of Windsor, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of count of enticement of a minor to engage in illegal sexual activity.
According to court documents and statements made in court, in March 2017, Cunningham began communicating with a 13-year-old female on Omegle, a website and mobile application designed to pair strangers for text and video chats. Cunningham first told the minor victim that he was 17, and later stated he was 25. Cunningham and the minor victim then communicated via text messaging and phone calls for approximately one week. During that time, Cunningham enticed the minor victim to send him sexually explicit images of herself, and attempted to lure her to travel to Connecticut.
Cunningham has been in state custody since May 2, 2017, when he was arrested on related state charges. He pleaded guilty in state court to illegal sexual contact with a minor and enticement of a minor, and is currently serving a three-year state sentence.
Cunningham was a registered sex offender and was on probation at the time of the offense. In 2014, Cunningham traveled to Illinois and engaged in sexual activity with a 14-year-old girl. He had told the girl he was 25 years old when, in fact, he was 34 at the time. In 2015, he was convicted in Illinois of aggravated criminal sexual abuse of a minor and was sentenced to five years in prison and two years of mandatory supervised release. He was released from prison in December 2016.
Judge Arterton scheduled sentencing for February 15, 2019, at which time Cunningham faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Webster County Woman Sentenced to Prison for Role in Meth ConspiracyRead the Press Release
CHARLESTON, W.Va. -- A Webster County woman was sentenced to 103 months in prison for her role in a methamphetamine conspiracy, announced United States Attorney Mike Stuart. In June after a two-day trial, a federal jury convicted Jaclyn Burkholder, 30, of conspiring to distribute methamphetamine between January and February 2017. The investigation was conducted by the Metropolitan Drug Enforcement Network Team (MDENT), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Burkholder will now be joining her meth trafficking co-conspirators in federal prison,” said United States Attorney Mike Stuart. “One at a time, we are shutting down these drug networks that have been bringing poisons into our communities.”
Jaclyn Burkholder is the sixth person to be convicted and sentenced for distributing methamphetamine in related cases. Burkholder, along with Quinton Funk, Carl Clark, and Jamie Harmon, brought approximately four kilograms of crystal methamphetamine from Atlanta to Charleston. On January 12, 2017, officers with MDENT executed a search warrant at a hotel room and found over 130 grams of methamphetamine, scales, baggies, and a gun. The methamphetamine was part of the approximately four kilograms Burkholder and others brought back from Atlanta, and it was lab-tested and confirmed to be over 90% pure.
United States District Judge Joseph R. Goodwin presided over the trial and imposed Burkholder’s sentence.
Five other defendants involved in this methamphetamine conspiracy have also been sentenced to federal prison. Quinton Funk, of Webster Springs, was sentenced to 21 years and 10 months in prison for conspiracy to distribute methamphetamine. Carl Clark, of South Charleston, was sentenced to 135 months in prison for distributing methamphetamine. Jamie Harmon, of South Charleston, was sentenced to 8 years for distributing methamphetamine. Christopher Carte, of St. Albans, was sentenced to three years in prison for conspiracy to distribute methamphetamine. Holly Doub, of South Charleston, was sentenced to five days in federal prison for aiding and abetting the distribution of methamphetamine.
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Violent Felon Sentenced for Possession of Firearm with Large Capacity MagazineRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 51 months in prison for possession of a firearm after having been convicted of a felony.
“Toatley is exactly the type of individual who poses a serious danger to the safety of our communities and the law enforcement officers who protect us,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Toatley has a long criminal history which includes aggravated assault for shooting a person, another aggravated assault for forcing a person out of his home at gun-point, drug offenses, and false imprisonment. Along with our federal, state, and local law enforcement partners, we are committed to removing violent individuals like Toatley from our communities.”
According to court documents, police were called to a residence in Richmond by the occupant who said a male was threatening her and her children, the male was on his way to the caller’s home, and the male was known to carry a firearm. When the responding officer arrived, he saw Gerald Toatley, 38, at the door of the residence. Toatley acknowledged a conflict with the resident, but dismissed it as a “misunderstanding.” When the officer asked for identify information, Toatley attempted to flee, but fell to the ground. As the officer tried to assist him, Toatley threw the officer to the ground and ran. During his flight, Toatley hid a 9mm semi-automatic pistol in a barbeque grill in a neighboring yard. Shortly thereafter, the officer arrested Toatley, who resisted being placed in handcuffs. The officer then recovered the firearm, which had Toatley’s DNA on it. The Court enhanced defendant’s sentence because the gun had a large capacity magazine, capable of holding sixteen rounds of ammunition.
“Gun crime is a scourge on our communities and holds good people hostage in their own homes,” said Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “ATF is committed to working with our law enforcement partners to take violent criminals like Gerald Toatley off our streets and put them behind bars where they belong. I hope this serves as a warning to other armed criminals that when they are caught, they will be met with swift, predictable consequences.”
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Special Assistant U.S. Attorney Holli R. Wood and Assistant U.S. Attorney Stephen W. Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-53.
Victoria Man Imprisoned for Defrauding EmployerRead the Press Release
VICTORIA, Texas – A 48-year-old Victoria man has been ordered to federal prison following his convictions on 10 counts of wire fraud, announced U.S. Attorney Ryan K. Patrick. Murray Wade Carson pleaded guilty July 2, 2018.
Today, Senior U.S. District Judge John Rainey handed Carson a 27-month sentence to be immediately followed by three years of supervised release. At the hearing, additional testimony was provided that described how Carson used sophisticated means to cimmit is fraud. In handing down the sentence, the court noted that it was incredible that the crime went on for eight years until an auditor figured it out. “That was the only thing that stopped you,” said Rainey.
At the time of his plea, Carson admitted he devised a scheme to defraud his employer by charging his employer for the purchase non-existent goods and products from the Kirby Taylor Company (KTC). Carson had set up KTC and concealed that information from his employer.
Carson admitted he submitted invoices from KTC for nonexistent goods, which he purchased using his employer issued credit card. He then used his home computer to submit charges for these nonexistent goods.
The scheme lasted from approximately 2007 through June 2015.
Carson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Utah Man Pleads Guilty to Denial-of-Service Computer Hacking AttacksRead the Press Release
NEWS RELEASE SUMMARY – November 6, 2018
SAN DIEGO – Austin Thompson, a Utah resident, pleaded guilty today in federal court in San Diego, admitting that he carried out a series of denial-of-service (“DoS”) computer hacking attacks against multiple victims between 2013 and 2014.
A denial-of-service (DoS) attack occurs when legitimate users are unable to access information systems, devices, or other network resources due to the actions of a malicious cyber threat actor. In such attacks, the hacker floods the targeted host or network with traffic until the target cannot respond or simply crashes, preventing access for legitimate purposes. According to the plea agreement, between December 2013 and January 2014, Thompson’s attacks, which flooded his victims’ servers with enough internet traffic to take them offline, were directed mainly at online gaming companies and servers, including then San Diego-based Sony Online Entertainment. Thompson typically used the Twitter account @DerpTrolling to announce that an attack was imminent and then posted screenshots or other photos showing that victims’ servers had been taken down after the attack. The attacks took down game servers and related computers around the world, often for hours at a time. According to the plea agreement, Thompson’s actions caused at least $95,000 in damages.
“Denial-of-service attacks cost businesses millions of dollars annually,” said U.S. Attorney Adam Braverman. “We are committed to finding and prosecuting those who disrupt businesses, often for nothing more than ego.”
"In today's world, cyber crime is an immense threat that affects private, commercial, and government sectors alike," said FBI Special Agent in Charge John Brown. "The FBI's capacity to respond to cyber incidents is enhanced through collaboration with affected industries and partnerships in the community to prevent and combat these threats. Together, we will thwart those cyber criminals who target our communities' businesses and infrastructure."
Sentencing is set before United States District Judge Jeffrey Miller on March 1, 2019 at 9:00 a.m.
The case, which is being prosecuted by Assistant U.S. Attorneys Benjamin Katz and John Parmley, arose out of an investigation by FBI’s San Diego Field Office.
DEFENDANT Case Number 18cr4775JM
Austin Thompson Age: 23
SUMMARY OF CHARGES
Damage to a Protected Computer, 18 U.S.C. § 1030(a)(5)(A)
Maximum penalty: 10 years prison, $250,000 fine, 3 years supervised release
AGENCY
Federal Bureau of Investigation – San Diego Field Office
U.S. Air Force Office of Special Investigations
UK Man Admits Role in Overseas Investment ScamRead 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 David Cole, 47, of England, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Russell T. Ippolito, Jr. and Paul E. Bonanno, who are handling the case, stated that the defendant participated in a “boiler room” scam that operated in Barcelona, Spain. Members of the conspiracy, working in the Spain boiler room, conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices by telling buyers that they were buying more valuable freely traded shares of stock.
Approximately 250 investors lost more than $2,900,000 to the defendant and a number of other conspirators. A portion of the criminal proceeds were funneled through a bank account in Western New York before being sent to numerous overseas accounts controlled by members of the conspiracy. Cole’s role in the conspiracy was convince individuals to invest in worthless stock by making false representations about the nature of the stock.
A total of 11 defendants involved in the boiler room scam have been convicted. Charges are pending against one other defendant. 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.
The pleas are the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Kevin Kelly, Special Agent-in-Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge.
Sentencing is scheduled for February 14, 2019, at 11:30 a.m. before Judge Wolford.
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U.S. Attorney Names District Election Officer to Oversee the Handling of Complaints of Election Fraud and Voting Rights AbusesRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that Assistant U.S. Attorney Matthew D. Segal will serve as the District Election Officer (DEO) for the Eastern District of California in connection with the Justice Department’s nationwide Election Day Program for the November 6, 2018, general election. The DEO is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
Counties in the Eastern District are: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Fresno, Glenn, Inyo, Kern, Kings, Lassen, Madera, Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba.
U.S. Attorney Scott said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted. Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to our office, the FBI, or the Civil Rights Division of the Department of Justice. We will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, DEO Segal will be on duty in this district while the polls are open. He can be reached by the public at the following telephone numbers: (916) 554-2700 and (916) 554-2708, and by email at [email protected].
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached by the public in the Eastern District of California at (916) 746-7000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Two Traders Plead Guilty to $60 Million Commodities Fraud and Spoofing ConspiracyRead the Press Release
Two former commodities traders of a New York, New York-based financial services firm have pleaded guilty for their participation in a $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets. One of the traders also pleaded guilty for his participation in a second commodities fraud and spoofing conspiracy at another financial services firm based in Chicago, Illinois.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Krishna Mohan, 33, of New York, New York, pleaded guilty today to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 28, 2019 before U.S. District Judge Gray H. Miller of the Southern District of Texas.
Kamaldeep Gandhi, 36, of Chicago, pleaded guilty on Nov. 2 to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 22, 2019 before U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas.
As part of their pleas, Gandhi and Mohan admitted that, from March 2012 to March 2014, they conspired with Yuchun “Bruce” Mao and others at the first firm (Trading Firm A) to mislead the markets for E-Mini S&P 500 and E‑Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME) and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT). Gandhi and Mohan further admitted that they and their co-conspirators placed thousands of orders that they did not intend to execute, or “spoof orders,” in order to obtain executions of other orders, or “primary orders,” at better prices, quantities and/or times than otherwise possible, to the benefit of the co-conspirators and Trading Firm A. Gandhi and Mohan further admitted that the United States has calculated that the scheme resulted in market losses of over $60 million.
Also, as part of Gandhi’s plea, he further admitted that, from May 2014 through October 2014, while employed at the second firm (Trading Firm B), he conspired with others to mislead the markets for E‑Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, hundreds of spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand. Gandhi further admitted that the United States has calculated that the scheme resulted in market losses of over $1.3 million.
The FBI’s Chicago Field Office is investigating the case. Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Lewis of the Southern District of Texas are prosecuting the case. The Commodity Futures Trading Commission’s Division of Enforcement provided substantial assistance in this case and referred this matter to the Department.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Two Traders Plead Guilty to $60 Million Commodities Fraud and Spoofing ConspiracyRead the Press Release
HOUSTON - Two former commodities traders of a New York, New York-based financial services firm have pleaded guilty for their participation in a $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets. One of the traders also pleaded guilty for his participation in a second commodities fraud and spoofing conspiracy at another financial services firm based in Chicago, Illinois.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Krishna Mohan, 33, of New York, pleaded guilty today to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 28, 2019, before U.S. District Judge Gray H. Miller of the Southern District of Texas (SDTX).
Kamaldeep Gandhi, 36, of Chicago, pleaded guilty Nov. 2 to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 22, 2019, before U.S. District Judge Ewing Werlein Jr. of the SDTX.
As part of their pleas, Gandhi and Mohan admitted that from March 2012 to March 2014, they conspired with Yuchun “Bruce” Mao and others at the first firm (Trading Firm A) to mislead the markets for E-Mini S&P 500 and E‑Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME) and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT). Gandhi and Mohan further admitted they and their co-conspirators placed thousands of orders that they did not intend to execute, or “spoof orders,” in order to obtain executions of other orders, or “primary orders,” at better prices, quantities and/or times than otherwise possible to the benefit of the co-conspirators and Trading Firm A. Gandhi and Mohan further admitted the United States has calculated that the scheme resulted in market losses of more than $60 million.
Also, as part of Gandhi’s plea, he further admitted that from May 2014 through October 2014, while employed at the second firm (Trading Firm B), he conspired with others to mislead the markets for E‑Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, hundreds of spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand. Gandhi further admitted the United States has calculated that the scheme resulted in market losses of more than $1.3 million.
The FBI’s Chicago Field Office is conducting the investigation. SDTX Assistant U.S. Attorney John Lewis and Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section are prosecuting the case. The Commodity Futures Trading Commission’s Division of Enforcement provided substantial assistance and referred this matter to the Department.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Two McNairy County Residents Indicted Federally for Being a Felon in Possession of Firearms and Possession of Methamphetamine with Intent to DistributeRead the Press Release
Jackson, TN – A federal grand jury has indicted two McNairy County residents on multiple federal charges. U. S. Attorney D. Michael Dunavant announced the indictments today.
According to the information presented in the indictments, on October 15, 2018, Randall Neilsen was charged with two counts of being a convicted felon in possession of firearms transported in interstate commerce, in violation of Title 18, USC,§ 922 (g)(1). The United States also seeks criminal forfeiture of any proceeds related to the crime. Lisa M. Stacey, 38, was indicted on October 15, 2018, with possession with intent to distribute 50 grams or more of actual methamphetamine, in violation of Title 21, USC § 841 (a)(1).
Because of their significant criminal histories, if convicted on counts 1 and 2, Neilsen faces 10 years in federal prison; $250,000 fine and 3 years supervised release. Stacey faces up to 10 years imprisonment; $10,000,000 fine and 5 years supervised release.
U.S. Attorney D. Michael Dunavant said, "The U.S. Attorney’s Office is a full-service federal prosecution office, and we have the ability and intention to charge any violations of federal law, no matter where they occur in the Western District of Tennessee. These indictments demonstrate our focus on the priority areas of firearms and narcotics cases that impact public safety in our rural communities, and we appreciate the partnerships with our local law enforcement agencies in McNairy County."
These cases are being investigated by the McNairy County Sheriff’s Office; Selmer Police Department; the Drug Enforcement Administration, and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Jim Powell and Jerry Kitchen are prosecuting these cases on the government’s behalf.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Two Leaders in the Black Guerilla Family Gang Plead Guilty to Federal Racketeering Conspiracy Charge, Including Authorizing MurdersRead the Press Release
Baltimore, Maryland – Ricky Evans, a/k/a Dorsey, and Shawn Thomas, a/k/a Bucky, both age 38, of Baltimore, Maryland, pleaded guilty on November 5, 2018, to the federal charge of participating in a racketeering conspiracy, as leaders in the Black Guerilla Family (BGF) gang.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Interim Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to their plea agreements, from prior to 2010 through February 22, 2018, Evans and Thomas were employed by and associated with the BGF gang. BGF is a nationwide gang operating in prisons and in cities throughout the United States, including in Baltimore. BGF is involved in criminal activity including murder, robbery, extortion, drug trafficking, obstruction of justice, and witness intimidation.
BGF organizes its members into “regimes” or “bubbles” corresponding to particular regions or neighborhoods in Baltimore City and other Maryland communities. Each bubble reports to a bush member or bushman, who controls larger swaths of territory on behalf of BGF. Bush members are elder statesman of BGF and maintain inter-bubble discipline and settle disputes among the various bubbles operating in the territory the bush member controls.
Evans and Thomas admitted that they were high-ranking members of BGF, controlling regimes in East Baltimore and the 2700 block of Greenmount Avenue, respectively. During the course of the conspiracy, Evans and Thomas obtained narcotics, including crack cocaine, which they distributed through BGF-controlled open-air drug shops in their territories.
As detailed in Evans’ plea agreement, Evans operated a murder-for-hire scheme during the time of the conspiracy, accepting payments to have violence committed against individuals, then taking other BGF members to commit those acts. In 2010, Evans authorized BGF members to kidnap, extort and/or rob Marcal Walton. During the kidnapping, BGF members shot and killed Walton as he tried to flee from his kidnappers. In that same year, Evans authorized the murder of Darel Alston, a BGF member, for his alleged cooperation with law enforcement regarding the botched kidnapping of Marcal Walton. Evans further admitted that during the period of the conspiracy, he was an employee of Safe Streets, a Baltimore-based anti-violence initiative. Evans worked at the Safe Streets office in the 2300 block of Monument Street in East Baltimore, and used that Safe Streets office to hold BGF meetings, to store and distribute drugs, and to store, and allow to be stored firearms used in other crimes. Evans admitted that he also possessed firearms for his protection and the protection of the enterprise, including a stolen and loaded .223-caliber Bushmaster model which he possessed on March 16, 2016.
As detailed in Thomas’ plea agreement, Thomas collected gang dues for BGF. On December 9, 2016, Thomas ordered another BGF member to murder Keith Ramsey, a Bloods gang member, as part of an ongoing dispute between the two gangs.
Evans and Thomas each face a maximum of life in prison for the racketeering conspiracy. Chief U.S. District Judge James K. Bredar has scheduled sentencing for February 5, 2019 at 10 a.m. for Evans and February 22, 2019 for Thomas.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF, FBI, Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Two Attorneys Plead Guilty on Eve of Tax Fraud TrialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that attorneys Edward Millstein and Susan Halpern, both of Philadelphia, pled guilty to tax offenses. Millstein and Halpern, who are married, were scheduled to begin trial on Monday, November 5, 2018, before U.S. District Court Judge Cynthia M. Rufe.
Millstein pled guilty to tax evasion, in violation of 26 U.S.C. § 7201. Millstein and Halpern owed $444,225 in taxes for the calendar years 2007 through 2011. While the Internal Revenue Service (IRS) was attempting to collect that debt, Millstein hid money in his minor children’s bank accounts to avoid IRS levies. Millstein also lied about obtaining a loan to pay the debt, and he failed to disclose a bank account that he used to deposit the $300,000 annual salary he earned from a local law firm from 2013 through 2015.
Halpern pled guilty to two counts of failure to pay taxes, in violation of 26 U.S.C. § 7203. Millstein and Halpern filed their taxes as a married couple filing jointly. They reported an Adjusted Gross Income of $344,350 in 2010 and $394,030 in 2011. The couple paid no money towards their 2010 or 2011 tax debt. By the time the couple was indicted on April 11, 2017, they owed $143,473.35 in taxes for 2010 and $153,560.69 in taxes for 2011. At trial, the government was prepared to present testimony that Halpern had spent tens of thousands of dollars on clothing, cosmetics, jewelry, salons, private clubs, and trips abroad, but not a penny on the 2010 or 2011 tax debt.
“These defendants intentionally failed to pay taxes, instead choosing to hide their money and spend it on luxuries that they could not afford,” said U.S. Attorney McSwain. “The defendants are both attorneys—they know better. Instead of being law-abiding citizens, they chose to deliberately cheat the system and bankroll their lavish lifestyle. This Office will continue to hold tax cheats accountable for their crimes.”
“The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. "Rest assured that we will continue to protect the integrity of the tax system by ensuring that everyone pays their fair share of taxes."
Millstein faces a maximum sentence of 5 years in prison, 3 years of supervised release, a $100,000 fine, and a $100 special assessment.
Halpern faces a maximum sentence of 2 years in prison, 1 year of supervised release, a $100,000 fine, and $100 special assessment.
Millstein and Halpern will be sentenced on February 25, 2019.
The case was investigated by the Internal Revenue Service, Criminal Investigation Unit. The case is being prosecuted by Assistant United States Attorney Jason P. Bologna.
Time Is up for A Detroit Man Arrested in Connection with Robbery of Rolex Watches During Amherst Jewelry Store HeistRead 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 Davonta Hill, 23, of Detroit, MI, was arrested and charged by criminal complaint with conspiracy to commit Hobbs Act robbery and Hobbs Act robbery. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, on February 2, 2018, at approximately 6:35 p.m., the Reeds-Jenss Jewelry Store, located at 4001 Maple Road in Amherst, NY, was robbed by four males wearing hooded sweatshirts to hide their identities, while a fifth individual waited outside by a vehicle. Three of the males walked directly to the display case containing Rolex watches, while the fourth male placed a block of ice in the automatic doorway to ensure it stayed open. When the ice failed to do so, the fourth male stayed in the doorway holding the door open. Two of the males smashed the glass and removed multiple Rolex watches. The four males exited the store and returned to the waiting vehicle.
The value of the stolen watches totaled approximately $400,000 in retail costs. In addition, $100,000 worth in watches were damaged during the breaking of the case. During the investigation following the robbery, Amherst police recovered one of the hammers used during the robbery. Detectives also recovered high quality surveillance footage during the time of the robbery. The footage showed that one of the suspects was wearing brightly colored orange sneakers and a distinctive brand jacket at the time of the robbery.
On February 14, 2018, the Strongsville, Ohio Police Department (SPD) responded to a call from Sheiban's Jewelers regarding a suspicious situation. Employees reported that two black males wearing gloves entered the store with the hoods of their hooded sweatshirts over their faces. The two males remained for a few minutes and exited the store without making a purchase. The males were seen getting into a tan SUV. A short time later, officers attempted a vehicle and traffic stop with their emergency lights activated but the tan SUV failed to stop and attempted to elude officers at high speeds. During the pursuit, the tan SUV struck four civilian vehicles and three marked SPD cruisers. The tan SUV was eventually stopped and the driver and passenger were taken into custody. The driver was identified as Davonta Hill.
Following the defendant’s arrest, Strongsville Police contacted Amherst Police believing that the two robberies were connected. SPD officers reviewed photographs of the Amherst robbery suspects and indicated that Hill bore a strong resemblance to one of the Amherst suspects. SPD detectives executed a search warrant on the tan SUV and recovered a two hammers; a gym bag containing an orange pair of sneakers; and a locked box. Inside the box were two loaded firearms; a quantity of marijuana; and the title for the tan SUV in the name of Davonta Hill.
The criminal complaint is the result of an investigation by the Amherst Police Department, under the direction of Chief John Askey; the Strongsville, Ohio Police Department, under the direction of Chief Mark Fender; and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Three Western Slope Defendants Sentenced for Various Roles in Methamphetamine and Cocaine Drug TraffickingRead the Press Release
DENVER – Three defendants have been sentenced to serve prison sentences for their respective roles in the distribution of methamphetamine and cocaine, U.S. Attorney Jason R. Dunn and DEA Denver Division Special Agent in Charge William T. McDermott announced. Two remaining defendants have a sentencing hearing pending in January 2019.
Colorado Chief U.S. District Court Judge Marcia S. Krieger, sitting in Grand Junction on November 5, 2018 and November 6, 2018, sentenced
Marco Valdez to serve 120 months in federal prison;
Rigoberto Felix to serve 48 months in federal prison; and,
David Sosa to serve 60 months in federal prison.
According to court documents, in April 2016, the Glenwood Springs branch of the DEA began investigating instances of drug trafficking occurring in Garfield and Mesa Counties. This investigation involved surveillance of targets, controlled purchases of methamphetamine, and wiretaps. The investigation ultimately revealed that the three individuals sentenced this week were part of a larger drug trafficking organization run by Paul Hernandez Contreras – a source of supply of methamphetamine and cocaine from California, and Daniel Tapia-Morales -- a drug distributor who had his own customer base in Colorado. The cases against Contreras and Tapia-Morales are pending.
In addition to drug trafficking, some individuals in this investigation would trade firearms for narcotics. Ultimately, over 3 kilograms of methamphetamine and ½ kilogram of cocaine were seized, as well as firearms and thousands of dollars. The investigation resulted in the indictment of ten individuals, including those mentioned above.
This case was investigated by the DEA Denver Division and TRIDENT, including agents in Mesa and Garfield Counties. TRIDENT is a multi-jurisdictional drug task force funded through Federal, State and Local government funding sources. The defendants were prosecuted by Assistant U.S. Attorney Celeste Rangel.
Three Indian Nationals Indicted for Extortion and Wire Fraud Relating to IRS Impersonation ScamsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Nishitkumar Patel (31, Tampa), Hemalkumar Shah (27, Tampa), and Sharvil Patel (22, Tampa) with conspiracy to commit wire fraud and extortion, and substantive counts of wire fraud and extortion. The indictment also charges Nishitkumar Patel and Hemalkumar Patel with money laundering and aggravated identity theft. Each of the three defendants faces a maximum penalty of 20 years in federal prison on each count of wire fraud conspiracy, extortion conspiracy, wire fraud, and extortion. Nishitkumar Patel and Hemalkumar Patel face an additional penalty of up to 10 years in federal prison for money laundering, and a minimum mandatory consecutive two years in prison for aggravated identity theft. The indictment also notifies the defendants that the United States is seeking a money judgment in the amount of at least $2.27 million, the proceeds of the wire fraud and extortion conspiracies.
According to the
indictment , from 2014 through at least 2016, the defendants conspired with India-based call centers to extort money from U.S. residents by impersonating IRS officers. The defendants misled their victims to believe that they owed money to the IRS and would be arrested and fined if they did not pay their alleged back taxes immediately, so the victims would pay the defendants. The defendants collected the fraud proceeds by (1) withdrawing cash from prepaid cards purchased and funded by victims; (2) hiring other conspirators (runners) to retrieve money wired by the victims to those runners; and/or (3) hiring runners to open bank accounts into which victims deposited fraud proceeds.In order to collect the fraud proceeds, the defendants provided the runners with the victims’ names, locations, and amount paid. The defendants directed the runners to retrieve the fraud proceeds in cash, and remit it to the defendants, often less a payment to the runner for opening the account or conducting the transaction.
On October 23, 2018, law enforcement officers executed a search warrant at the home of Nishitkumar Patel and Hemalkumar Patel. Among other items, they seized approximately $50,000 in cash, hundreds of bank and wire transfer receipts, and 20 electronic devices.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Treasury Inspector General for Tax Administration, the Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Rachel K. Jones.
Three Felons with Guns Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Murray announced today that three felons convicted of illegally possessing firearms have been sentenced to prison, as part of the Western District’s Project Safe Neighborhoods (PSN) strategy to remove guns from the hands of prohibited persons and reduce gun-related violence.
U.S. District Judge Max O. Cogburn, Jr. sentenced Louie Raymond Forney, 27, of Charlotte, to 40 months in prison, for possessing a firearm after being convicted of a felony. According to court records, on or about December 22, 2015, Charlotte-Mecklenburg Police Department (CMPD) officers attempted to conduct a traffic stop of the vehicle Forney was driving. Forney did not stop the vehicle and instead sped away. After crashing the vehicle, Forney jumped out of the car window, dropped a Smith and Wesson, Shield .40 caliber semiautomatic pistol on the ground, and fled on foot. At the time of the incident, Forney had prior felony convictions and was prohibited from possessing a firearm. In addition to the prison term imposed, Judge Cogburn also ordered Forney to serve two years under court supervision after he is released from prison.
Judge Cogburn also sentenced Damarius Derron Massey, 38, of Charlotte, to 33 months in prison and two years of supervised release for being a felon in possession of a firearm. Court records show that on June 16, 2017, over the course of a traffic stop, CMPD officers found Massey to be in possession of a stolen and loaded Taurus PT AFS .40 caliber pistol. Massey was previously convicted of Conspiracy to Commit Armed Robbery and Attempted Trafficking in Cocaine and is prohibited from possessing a firearm or ammunition.
On Monday, Judge Cogburn ordered Joseph Gerell Banks, 27, of Charlotte, to serve 46 months in prison and two years of supervised release for illegally possessing a firearm. According to court records, on April 8, 2017, Banks possessed a Glock, model 36, .45 caliber pistol and a .45 shell casing. Banks was previously convicted of a crime punishable by more than one year in prison and is prohibited from possessing a firearm.
“With each gun prosecution, an illegal firearm has been taken off our streets and, in all likelihood, multiple gun-related crimes have been prevented,” said U.S. Attorney Murray. “My priority as U.S. Attorney is to reduce gun violence across the Western District, and to hold accountable those who carry guns illegally and violate federal gun laws. Guns do not belong in the hands of felons,” Murray added.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charlotte Mecklenburg Police Department for their investigation of each case, and commended Assistant U.S. Attorneys Sanjeev Bhasker for handling the prosecution of Louie Forney; William T. Bozin for handling the prosecution of Damarius Massey; and Erik Lindahl for handling the prosecution of Joseph Banks.
These cases are 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.
Three Defendants Charged in Two Separate Cases with Attempting to Smuggle Marijuana into the United StatesRead 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 Cindy Huang, 23, of Brooklyn, NY, Charles Shu, 25, of Buffalo, NY, and Isaac Danso Ofori, 26, of Columbus, OH, were arrested and charged by criminal complaint with possession and importation of a controlled substance, and smuggling goods into the United States. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, on November 4, 2018, defendant Huang and Chu attempted to enter the United States from Canada at the Lewiston Bridge Port of Entry. They were passengers in a vehicle that included five other individuals. During the primary inspection of the vehicle, a Customs and Border Protection officer discovered two edible packages with a red marijuana leaf marking in the trunk area of the vehicle. The vehicle was then referred for a secondary inspection during which a canine dog alerted officers to the glove compartment area. A search of the glove compartment resulted in the discovery of a plastic bag containing marijuana.In a separate case, also on November 4, 2018, Ofori attempted to enter the United States from Canada at the Peace Bridge Port of Entry. Ofori was one of three occupants in a vehicle that was referred to secondary inspection. Prior to the secondary inspection, Ofori stated that he did not have any drugs, weapons, or prohibited items. During the secondary inspection, a Customs and Border Protection officer found a plastic baggie inside of a light brown colored book bag in the rear of the vehicle containing a green leafy substance. The defendant stated that he purchased the green leafy substance at a shop called "Market Dispensary," in Toronto. The green leafy substance tested positive for marijuana.
“Since recreational marijuana was legalized in Canada on October 17th, we have experienced a significant increase in the number of people apprehended at the border importing marijuana into the United States,” noted U.S. Attorney Kennedy. “Let there be no misunderstanding—it was, is, and will continue to be a federal crime to attempt to bring any quantity of marijuana into the United States from Canada. People must realize that the enduring hardship that they will suffer as the result of a federal criminal conviction will far outlast any high they may be seeking to experience through the ingestion of the marijuana they are illegally importing.”
Huang, Chu, and Ofori made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and were released.
The criminal complaint is the culmination of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Thibodeaux Woman Charged Stealing More Than Half a Million Dollars from Metairie ArchitectRead the Press Release
U.S. Attorney Peter G. Strasser announced the indictment of CHRISTELLE SCHMIDT on Friday, November 2, 2018, age 65 of Thibodeaux, Louisiana for one count of violating Title 18, United States Code, Section 2113(b), Bank larceny. The indictment alleged that SCHMIDT stole more than $550,000 from a local architectural firm while employed therein as a bookkeeper.
The indictment alleged that starting in 2007 and continuing through 2017, through a series of fraudulent activities, SCHMIDT committed the offense. The indictment further alleged that she utilized three different schemes to purloin the funds, which were in the care, custody and control of federally insured banks.
The first scheme involved her forgery of more than 600 checks and then disguising those thefts by falsely disguising the checks in the computer accounting records of the firm as funds spent for legitimate vendors. In fact, the money was used for SCHMIDT’S personal expenses. The indictment further alleged that her second scheme involved charging personal expenses on company credit cards. The third scheme involved SCHMIDT’S payment of the credit cards using the automated clearing house (ACH) accounts of the firm.
If convicted, SCHMIDT faces up to 10 years incarceration, a $250,000 fine and restitution and 3 years supervised release. U.S. Attorney Strasser emphasized that an indictment is merely a charge and that to prevail at trial, the government must prove each and every offense alleged beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Secret Service in investigating the matter. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
Texas Man Who Traveled to Tampa to Have Sex with 12-Year-Old Girl Sentenced to 11 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington today sentenced Benjamin Michael Tschirhart (35, Dallas, TX) to 11 years in federal prison and a lifetime of supervised release for attempting to entice a minor to engage in sexual activity.
Tschirhart had pleaded guilty on August 1, 2018.
According to court documents, Tschirhart, using the internet alias “jabberwockysuperfly,” contacted an undercover agent who was posing as a woman that was looking for a man to train her notional 12-year old daughter for sex. Over the course of one month, Tschirhart discussed his sexual desires and preferences for children and made plans to train and groom the “child” for sex.
Toward the end of April 2018, Tschirhart and the undercover agent made plans for Tschirhart to travel to Tampa to have sex with the “child.” On April 30, 2018, Tschirhart disembarked an Amtrak train in Tampa. The next day, Tschirhart arrived at the agreed upon location at the agreed upon time, where he was arrested. He had in his possession condoms and lubrication, as well as Skittles and Airheads—the “child’s” favorite candy.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Frank Murray.
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 United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas Man Sentenced in Cocaine Trafficking CaseRead the Press Release
WICHITA, KAN. – A Texas man was sentenced today to five years in federal prison for driving a load of cocaine to Kansas, U.S. Attorney Stephen McAllister said.
Ricardo Daniel Ruiz, 20, El Paso, Texas, pleaded guilty to one count of interstate travel in furtherance of drug trafficking. In his plea, he admitted that a police officer in Elkhart stopped him for speeding. A search of the vehicle turned up 6.8 kilos (about 15 pounds) of cocaine wrapped in six bundles and hidden beneath the back seat.
McAllister commended the Elkhart Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Alan Metzger for their work on the case.
Texas Man Pleads Guilty to Stealing 650 Firearms from UPS Trailers in SpringfieldRead the Press Release
SPRINGFIELD, Mo. – A Glenn Heights, Texas, man pleaded guilty in federal court today to stealing 650 firearms from United Parcel Service trailers in Springfield, Mo., en route to Bass Pro Shops.
Quinton Haywood, 27, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a Feb. 21, 2018, federal indictment. Haywood has remained in federal custody since his arrest in January 2018.
By pleading guilty today, Haywood admitted that he aided and abetted other individuals to steal firearms that were being shipped across state lines, from Beretta USA in Maryland to the state of Missouri. Haywood also pleaded guilty to aiding and abetting other individuals to possess stolen firearms.
According to an affidavit filed in support of the original federal criminal complaint, Haywood and others stole 650 firearms, along with other cargo, from United Parcel Service (UPS) trailers in Springfield in October 2017.
The firearms were in the process of being shipped from Beretta Firearms in Maryland to Bass Pro Shops in Springfield. The trailers in which the firearms were shipped had been parked in the UPS freight lot in a configuration to prevent access to the trailer doors, by being parked back-to-back, with the roll-up doors facing each other. The trailers were then blocked by longer trailers, which should have acted as a preventative measure from someone backing a truck-tractor to the trailer and pulling it forward.
Sometime between noon on Oct. 28, 2017, and 8:30 a.m. on Oct. 29, 2017, thieves hot-wired two truck-tractors and used them to push and pull various trailers around the lot, allowing the thieves access to the trailer doors. Thieves stole 600 Beretta .380-caliber handguns and 54 Beretta 12-gauge shotguns, as well as an entire pallet of Justin brand boots, numerous power tools and 12 cases of soda. UPS employees discovered the theft on Oct. 29, 2017, and notified law enforcement.
Under federal statutes, Haywood is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Tax Preparer Sentenced to Prison for Theft of Government Funds, Identity FraudRead the Press Release
St. Louis, MO – Omar Jaber, 31, of St. John, Missouri was sentenced to 27 months imprisonment to be followed by three years supervised release and $197,213 in restitution to the IRS. Jaber admitted to stealing government funds while a tax preparer for Rapid Tax Service in St. Louis during 2015 and 2016. Jaber pleaded guilty on May 7, 2018 and appeared for sentencing in St. Louis today before U.S. District Judge Catherine D. Perry.
In his plea, Jaber admitted to stealing the personal identification of forty-two different individuals, filing false tax returns in their names and converting some or all of their purported tax refunds to his own use.
At sentencing, the government pointed out that while the U.S. Treasury is the ultimate victim of Jaber’s malfeasance, many of the individual victims depending on refunds due to the Earned Income Tax Credit. The delay in their receipt of tax refunds was a significant economic hardship to taxpayers who depend on the EITC to supplement their wages.
“Today’s sentence highlights the seriousness of the defendant’s conduct,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office. “Today, Mr. Jaber is being held accountable for his criminal activity.”
“Vigorous prosecution and substantial sentences in cases of tax fraud, especially those involving tax preparers, is essential to our nation’s voluntary tax compliance system,” said U.S. Attorney Jeff Jensen.
This case was investigated by the IRS – Criminal Investigation Bureau. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
Tampa Man Sentenced to Twenty-Seven Months’ Imprisonment for Lying to Avoid RestitutionRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Jason Anthony Martinez (38, Tampa) to an additional three months’ imprisonment for a total of 27 months’ imprisonment for lying to the U.S. Attorney’s Office’s Financial Litigation Unit and U.S. Probation to avoid his restitution obligation. In addition, he was sentenced to an additional two years of supervised release, extending his post-incarceration supervision to a total of five years.
According to the plea agreement, Martinez was previously convicted in a mortgage-related fraud case and ordered to pay $3,008,551.01 in restitution. On October 24, 2017, Martinez signed and submitted a Financial Disclosure Form, upon which he falsely claimed a net income that was approximately half his actual net income and failed to disclose a number of credit accounts. This false information materially and adversely affected the resulting restitution-related payment calculations in his prior case.
The U.S. Attorney’s Office, recognizing the critical importance of recovering restitution for victims, has a Financial Litigation Unit that collects criminal monetary penalties, including restitution, imposed on criminal defendants by the U.S. District Court as part of his or her sentence. One of the tools used by the Unit to collect restitution is the Financial Disclosure Statement, which requires defendants to truthfully disclose, among other things, their income, expenses, assets, and liabilities.
This case was investigated by the U.S. Attorney’s Office’s Economic Crimes Section. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Steroid Distribution Results in Four ConvictionsRead the Press Release
OKLAHOMA CITY – Four defendants have entered guilty pleas to charges stemming from a steroid-distribution ring, announced Robert J. Troester of the U.S. Attorney’s Office. Between October 3 and November 2, CHRISTOPHER THOMAS CAPLINGER, 55, of Edmond, Oklahoma; DONALD RAY VINCENT, JR., 54, of Edmond; DEBORAH ANN CRAWFORD, 47, of Oklahoma City; and MICHAEL BRANDON SCHOTT, 35, of Newport News, Virginia, have been found guilty of a steroid offense or conspiring to launder the proceeds of that offense, announced Robert J. Troester of the U.S. Attorney’s Office. Caplinger and Vincent have pleaded guilty to both manufacturing steroids and money laundering.
On March 20, 2018, a federal grand jury returned a 23-count indictment against all four defendants. In addition to allegations of illegally conspiring to distribute steroids, a Schedule III controlled substance, the indictment charged distribution of steroids to an undercover officer, manufacturing of steroids, maintaining a drug-involved premises, a conspiracy to commit money laundering, and international money laundering. According to the indictment, Capinger, Vincent, and Crawford concealed the proceeds of their illegal activity by depositing money into bank accounts in the names of third parties and storing bulk cash at residences, including approximately $280,000 buried in Caplinger’s back yard. The indictment alleged that from April 2015 until November 2017, Caplinger rented space at 8201 North Classen Boulevard in Oklahoma City for the purpose of manufacturing and distributing steroids. It also alleged that Caplinger and Crawford transferred funds to China to conceal their crimes.
On November 1, U.S. District Judge Scott L. Palk accepted Caplinger’s pleas of guilty to manufacturing anabolic steroids and conspiring to launder the proceeds. Caplinger has agreed that his conduct involved at least 60,000 doses of anabolic steroids. He has also agreed to the forfeiture of $287,743 in currency and a $740,000 money judgment. At sentencing, he faces up to ten years in prison for manufacturing steroids and up to twenty years for conspiring to commit money laundering. He could also be fined up to $500,000 on each count and could be on supervised release for the rest of his life.
The remaining three defendants have also pleaded guilty. On October 3, Vincent admitted in open court that he manufactured anabolic steroids and conspired to commit money laundering. He has agreed to forfeit $99,473 in currency. Crawford entered a guilty plea to the money-laundering conspiracy on October 24. And Schott pleaded guilty on November 2 to conspiring to distribute anabolic steroids. Like Caplinger, each of these defendants faces up to ten years in prison for a steroid offense and up to twenty years in prison for a money-laundering offense. Each also faces a fine of up to $500,000 on each count of conviction, in addition to supervised release. Sentencings will take place in approximately ninety days.
These convictions are the result of an investigation by the Drug Enforcement Agency, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Internal Revenue Service—Criminal Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Michael Eaton, Kerry Blackburn, and David McCrary are prosecuting the case.
Reference is made to public filings for further information.
Statement of U.S. Attorney Geoffrey S. Berman on the Conviction of Akayed Ullah for Detonation of A Bomb in New York CityRead the Press Release
U.S. Attorney Geoffrey S. Berman said: “Late last year, Akayed Ullah detonated a bomb during the bustle of morning rush hour under the Port Authority Bus Terminal. Ullah’s sinister purpose was to harm and terrorize as many innocent people in his path as possible, by using deadly violence to make a political statement. Ullah’s conviction by a unanimous jury of New Yorkers falls on an Election Day, which fittingly underscores the core principles of American democracy and spirit: Americans engage in the political process through votes, not violence. Today, Ullah stands convicted, he faces a potential life sentence, and his purpose failed. New York City remains a shining symbol of freedom and hope.”
Springfield Man Charged with Illegally Possessing Loaded Gun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a grand jury sitting in Hartford returned an indictment today charging WILLIAM SCOTT, 39, of Springfield, Massachusetts, with one count of unlawful possession of a firearm and ammunition by a convicted felon.
The indictment alleges that, on July 2, 2018, Scott unlawfully possessed a loaded Smith and Wesson .380 caliber pistol in Hartford.
It is further alleged that Scott’s criminal history includes felony convictions in Massachusetts in 2003 and 2012 for possession of cocaine with intent to distribute and, in 2012, for unlawful possession of a firearm.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, Scott faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Scott has been detained in state custody since his arrest on July 2, 2018.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Sioux Falls Man Sentenced for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession of an Unregistered Firearm was sentenced on November 5, 2018, by U.S. District Judge Karen E. Schreier.
Christopher Romero, age 42, was sentenced to 120 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Romero was indicted by a federal grand jury on January 9, 2018. He pled guilty on August 14, 2018.
The conviction stems from an incident on or about March 14, 2017, when the Sioux Falls Police Department conducted a traffic stop on a vehicle, in which Romero was a passenger. A search of the vehicle occurred and law enforcement found a Mossberg Maverick Model 88, .12-gauge caliber pump-action shotgun, bearing no visible serial number, with a barrel less than 18 inches long.
A search was conducted in the National Firearms Registration and Transfer Record, and no evidence of Romero’s registration of the shotgun was found.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Romero was immediately turned over to the custody of the U.S. Marshals Service.
Shrewsbury Woman Arrested for Securities Fraud and Money LaunderingRead the Press Release
CONCORD - Jessica M. Teixeira, 41, of Shrewsbury, Massachusetts, was arrested and appeared in federal court today on charges of securities fraud and money laundering, United States Attorney Scott W. Murray announced.
According to the indictment returned on October 31, 2018, between December 2015 and November 2017, defendant Teixeira defrauded two New Hampshire investors by selling them a series of securities that were supposedly guaranteed and would generate high rates of return. According to the indictment, Teixeira represented herself as a solicitor of high-yield investment funds with connections to investment groups raising funds associated with domestic and foreign real estate developments, who solicited financing through private investors rather than banks. In fact, the indictment alleges that Teixeira's claims to be connected to high-level investment groups were false, the investment contracts and notes she sold were worthless and generated no returns, and Teixeira would simply convert the invested funds to her own personal use and benefit, without returning any of the invested funds. In total, the defendant allegedly obtained approximately $296,250 from the two investors.
The Court scheduled a trial in Teixeira’s case for December 11, 2018.
“Even as we work to combat opioid trafficking and violent crime, federal law enforcement officers strive diligently to identify and prosecute those involved in fraud schemes here in New Hampshire,” said U.S. Attorney Murray.
“Today’s arrest serves as a reminder that white-collar criminals often lurk behind overly aggressive high rate-of-return promises,” said Special Agent in Charge Kristina O’Connell, with IRS Criminal Investigation, Boston Field Office. “IRS-CI is proud to bring our financial expertise to these joint investigations to help catch perpetrators and prevent future victims of high-yield investment schemes.”
"This investigation is another example of the FBI’s efforts to protect the integrity and transparency of the financial markets. Working with our law enforcement partners, we will pursue those who are motivated by greed and personal enrichment by defrauding investors, destroying the financial security of hard-working individuals within our communities,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys John Davis and Anna Dronzek.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
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Shreveport man pleads guilty to stealing $27,000 in Social Security benefits meant for his childrenRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Shreveport man pleaded guilty Monday to stealing at least $27,000 of his children’s Social Security benefits.
Dianglo Shawntale Mahoney, 51, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of theft of government property. According to the guilty plea, Mahoney applied for and began receiving Social Security Administration (SSA) disability payments starting in July of 2013. Mahoney also applied for and began receiving auxiliary benefits for his two minor children. The SSA paid Mahoney at least $27,000 for the benefit of his children. Mahoney never gave the children the money, but he kept the money and used it for his himself.
Mahoney faces 10 years in prison, not more than three years of supervised release and a $250,000 fine. The court set the sentencing date for February 7, 2019.
The Social Security Administration conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
Schenectady Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Lance Green, age 37, of Schenectady, New York, pled guilty yesterday to conspiring to distribute crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea, Green admitted that between December 2015 and May 2016, he was a member of a drug trafficking organization that conspired to distribute at least 28 grams of crack cocaine in Schenectady.
Green faces at least 10 years and up to life in prison, and at least 8 years of post-imprisonment supervised release, when United States District Judge Mae A. D’Agostino sentences him on March 5, 2019.
A co-conspirator, Ray A. Perkins, age 31, of Schenectady, pled guilty and was sentenced to 60 months in prison on July 11, 2017.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department and Schenectady County District Attorney’s Office.
This case is being prosecuted by Assistant U.S. Attorneys Megan Kistler and Michael Barnett.