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1 November 2018
Malaysian Financier Low Taek Jho, AKA “Jho Low,” and Former Banker Ng Chong Hwa, AKA “Roger Ng,” Indicted for Conspiring to Launder Billions of Dollars in Illegal Proceeds and to Pay Hundreds of Millions of Dollars in Bribes in Connection with 1MDB FundRead the Press Release
BROOKLYN, NY – A three-count criminal indictment was unsealed today in federal court in the Eastern District of New York charging Low Taek Jho, also known as “Jho Low,” and Ng Chong Hwa, also known as “Roger Ng,” with conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to various Malaysian and Abu Dhabi officials. As part of the three-count indictment, Ng is also charged with conspiring to violate the FCPA by circumventing the internal accounting controls of a major New York-headquartered financial institution (Financial Institution), which underwrote more than $6 billion in bonds issued by 1MDB in three separate bond offerings in 2012 and 2013, while Ng was employed at the Financial Institution as a managing director. Ng was arrested earlier today in Malaysia, pursuant to a provisional arrest warrant issued at the request of the United States. Low remains at large.
Also unsealed today in federal court in the Eastern District of New York was the guilty plea of Tim Leissner, the former Southeast Asia Chairman and participating managing director of the Financial Institution, to a two-count criminal information charging Leissner with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of the Financial Institution while he was employed by it. According to court filings, Leissner has been ordered to forfeit $43,700,000 as a result of his crimes.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Principal Deputy Assistant Attorney General of the Department of Justice’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and R. Damon Rowe, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Los Angeles Field Office, announced the charges.
The Criminal Scheme
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people. As alleged in court filings, between approximately 2009 and 2014, as 1MDB raised money to fund its projects, billions of dollars were misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions that it executed with the Financial Institution. As part of the scheme, and as alleged in court filings, Low, Ng, Leissner and others conspired to bribe government officials in Malaysia, including at 1MDB, and Abu Dhabi to obtain and retain lucrative business for the Financial Institution, including the 2012 and 2013 bond deals. They also allegedly conspired to launder the proceeds of their criminal conduct through the U.S. financial system by purchasing, among other things, luxury residential real estate in New York City and elsewhere, and artwork from a New York-based auction house, and by funding major Hollywood films.
As alleged, Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi were central to the scheme. Ng, Leissner, and others at the Financial Institution allegedly knew Low was close to these government officials, including a high-ranking Malaysian government official who had authority to approve 1MDB business decisions (Malaysian Official #1). According to allegations in court filings, beginning in approximately 2009 and continuing through 2014, Low, Ng, Leissner and the other co-conspirators used Low’s relationships to obtain and retain business for the Financial Institution through the promise and payment of hundreds of millions of dollars in bribes, including to ensure 1MDB awarded the Financial Institution a role on three bond transactions known internally at the Financial Institution as “Project Magnolia,” “Project Maximus” and “Project Catalyze.” As a result of its work for 1MDB during that time, the Financial Institution allegedly received approximately $600 million in fees and revenues along with increased reputational prestige. At the same time, Ng, Leissner and others allegedly received large bonuses and enhanced their own reputations at the Financial Institution. In total, according to allegations in court filings, more than $2.7 billion was misappropriated from 1MDB and Low, Ng, Leissner and others conspired to launder this money through the U.S. financial system to pay bribes to foreign officials and for the personal benefit of themselves and their relatives.
Project Magnolia
In early 2012, according to allegations in court filings, following a series of meetings in Malaysia and the United Kingdom, Low, Leissner, Ng and the co-conspirators agreed that, with the assistance of the Financial Institution, 1MDB would issue $1.75 billion in bonds guaranteed by an entity wholly owned and controlled by the government of Abu Dhabi. Low allegedly explained to Ng, Leissner and others at the time that, to complete the transaction, bribes would need to be paid to officials in Malaysia and Abu Dhabi and, as alleged, hundreds of millions of dollars were actually paid to officials in these countries. Low, Ng, Leissner and other co-conspirators also knew that Low intended to use funds misappropriated from the bond transaction to bribe and influence the officials to obtain the necessary approvals and any additional assistance needed to execute Project Magnolia for the Financial Institution and to pay kickbacks to Ng, Leissner and others.
In or around March 2012, 1MDB allegedly selected the Financial Institution to be the sole bookrunner and arranger for Project Magnolia. As part of the scheme, Low and other co-conspirators enlisted the assistance of 1MDB officials, promising to pay them bribes and kickbacks. In one instance, as alleged in court filings, in connection with Project Magnolia, Low told one 1MDB official that he would “[g]ive [the official a] big present” when the transaction closed. According to allegations in court documents, the fact that bribes and kickbacks were being paid in connection with Project Magnolia was known to Ng, Leissner and other employees of the Financial Institution.
After Project Magnolia closed on or about May 21, 2012, more than $500 million of the bond proceeds were misappropriated and diverted from 1MDB through numerous wire transfers to bank accounts in the name of shell companies beneficially owned and controlled by Low, Leissner, Ng and other co-conspirators, including a high-level official at the Abu Dhabi entity that guaranteed the Project Magnolia bonds and a close relative of Malaysian Official #1. As alleged, the bond proceeds transferred to Malaysian Official #1’s close relative were later used by the relative’s U.S. motion picture company to assist in the production of the film “The Wolf of Wall Street,” a movie based on a previous Eastern District of New York prosecution.
Project Maximus and Project Catalyze
Court filings further allege that from May 2012 and continuing through 2013, Low, Ng, Leissner and their co-conspirators continued to work to ensure that the Financial Institution obtained and retained additional 1MDB business, including the bond transactions known as “Project Maximus” and “Project Catalyze,” which transactions generated substantial fees and revenues for the Financial Institution. As alleged, although both transactions were designed to raise more than $4 billion for 1MDB’s investment and development projects, Low, Ng, Leissner and other co-conspirators allegedly used the transactions to further the criminal scheme, ultimately laundering hundreds of millions of dollars of diverted funds from these transactions into bank accounts beneficially owned and controlled by, among others, the co-conspirators, including Low, Leissner and officials in Malaysia and Abu Dhabi. As alleged in court filings, throughout this time, Ng, Leissner, and at least one other employee of the Financial Institution knew that Low would and did pay bribes to influence officials in Malaysia and Abu Dhabi to obtain the necessary approvals to execute Project Maximus and Project Catalyze. Low, Ng, Leissner and others allegedly knew that large portions of the bond proceeds would be illegally diverted to themselves and others, including to foreign government officials.
As part of the scheme alleged in court filings, Low, Ng, Leissner and other co-conspirators again used a series of wire transfers to launder billions of dollars of misappropriated and fraudulently diverted funds from Project Maximus and Project Catalyze. As alleged, following the close of Project Maximus, approximately $790 million of the bond proceeds was transferred through a series of shell company accounts beneficially owned and controlled by Low, Leissner and others, including accounts of officials in Malaysia and Abu Dhabi. In particular, Leissner and Ng caused millions of dollars of these funds to be transferred to accounts of 1MDB officials or relatives of such officials in exchange for their assistance in obtaining and retaining business for the Financial Institution. Over $35 million of the bond proceeds also allegedly was used by a co-conspirator to help acquire a condominium in New York, New York beneficially owned by Low.
Similarly, according to allegations in court filings, after Project Catalyze closed in March 2013, more than $1 billion dollars of diverted funds, traceable to the transaction, were laundered, at Low’s direction, to bank accounts in the name of entities beneficially owned and controlled by Low, Leissner and others, including 1MDB officials. As alleged, more than $4 million of the funds were transferred to a bank account beneficially owned by a relative of Ng. Additionally, as part of the scheme, Low used a shell company account to receive more than $1 billion of the Project Catalyze bond proceeds and spent approximately $137 million of these funds to purchase works of art at a high-end art auction house in New York, New York.
Post-Catalyze 1MDB Transactions at the Financial Institution
The Financial Institution continued to seek business from 1MDB after Project Catalyze. As alleged, Leissner and others were particularly focused on securing a role for the Financial Institution on a proposed initial public offering (“IPO”) of 1MDB’s energy assets. To influence certain officials to award the Financial Institution a role in the proposed IPO, Low and Leissner allegedly continued to pay bribes to certain officials at 1MDB.
For example, as alleged, in an online chat between Low and Leissner in June 2014, Low and Leissner discussed the need to “suck up to” a 1MDB official and to send “cakes” to a person believed to be the wife of Malaysian Official #1. A few months after this chat, a bank account owned and controlled by Leissner and his relative was used to transfer approximately $4.1 million to a high-end New York jeweler, in part, to pay for gold jewelry for the wife of Malaysian Official #1.
The charges in the indictment as to Low and Ng are allegations, and those defendants are presumed innocent unless and until proven guilty.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis and Drew Rolle and Trial Attorneys Jennifer E. Ambuehl, Woo S. Lee, Mary Ann McCarthy, Katherine A. Nielsen and Nikhila Raj are prosecuting the case. Additional Criminal Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Eastern District of New York and Central District of California have provided valuable assistance with various aspects of this investigation, including with civil and criminal forfeitures.
The Criminal Division’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendants:
LOW TAEK JHO
Age: 36NG CHONG HWA
Age: 51E.D.N.Y. Docket No. 18-CR-538 (MKB)
TIM LEISSNER
Age: 48E.D.N.Y. Docket No. 18-CR-439 (MKB)
MS-13 Member Sentenced for RICO Conspiracy and Unlawful Possession of a FirearmRead the Press Release
BOSTON – An MS-13 member was sentenced today in federal court in Boston for RICO conspiracy and unlawful possession of a firearm and ammunition by an illegal alien.
Manuel Landaverde, a/k/a “Scooby,” 26, a Salvadoran national, was sentenced by U.S. District Court Judge William G. Young to 21 months in prison and three years of supervised release. Landaverde will face deportation proceedings upon completion of his sentence. In July 2018, Landaverde pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy, and being an alien in possession of a firearm and ammunition.
The investigation revealed that Landaverde was a member of MS-13 and conspired with other MS-13 members to commit acts of violence, including murder and attempted murder, in Massachusetts. Landaverde, who is unlawfully present in the United States, also possessed and sold a firearm and ammunition knowing it would be used in connection with the racketeering conspiracy.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney John P. Pappas; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.
MPLX LP to Cut Harmful Air Pollution at Natural Gas Processing Facilities Improving Air Quality for Communities in Six StatesRead the Press Release
Today, the U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA), the State of Oklahoma, the Pennsylvania Department of Environmental Protection, and the State of West Virginia announced a settlement agreement with MPLX LP (MPLX) and 11 of its subsidiaries that will strengthen air pollution controls at 20 natural gas processing plants located in Pennsylvania, Ohio, West Virginia, Kentucky, Texas and Oklahoma.
The settlement addresses alleged violations of federal and state clean air laws governing the control of emissions from equipment leaks, pressure relief devices, storage tanks, truck and railcar loading, combustion devices, and process heaters. As part of the settlement, MPLX will also perform Supplemental Environmental Projects (SEPs), install equipment to control volatile organic compound (VOC) emissions from truck loading operations at two natural gas compressor stations, and pay a $925,000 penalty.
“This agreement will eliminate harmful air pollutants and create cleaner air for communities in six states,” said EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine. “By improving air pollution control at 20 of their gas processing facilities, MPLX will reduce VOC emissions by more than 1,500 tons a year.”
Under the terms of the settlement, MPLX is expected to spend approximately $2.78 million to install and operate new technologies as well as improve and expand existing control techniques that minimize VOC emissions at its natural gas processing plants. Certain provisions of the consent decree also include measures to ensure MPLX’s compliance with nitrogen oxide (NOx) emission limits applicable to process heaters at MPLX’s facilities. In addition, MPLX will implement a mitigation project to reduce VOC emissions at two natural gas compressor stations in Pennsylvania and Ohio, respectively, through the installation of new technology to capture and control VOC emissions during truck loading operations, which is expected to cost at least $700,000. MPLX will also implement SEPs involving the installation and operation of ambient air monitoring stations adjacent to four natural gas processing plants located in Pennsylvania, West Virginia, Kentucky, and Texas, respectively, at a cost of $2.5 million. Finally, MPLX will implement a SEP involving the study of the effectiveness of computer predictive modeling of fugitive leaks as a potential emission reduction tool, at a cost of $75,000.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone, which is not emitted directly into the air, but is created by chemical reactions between NOx and VOCs in the presence of sunlight. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems. Besides ground level ozone, NOx emissions also contribute to acid rain, particulate matter, water quality deterioration, and visual impairment.
The consent decree has been lodged with the U.S. District Court for the Northern District of Ohio and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information on the settlement, please visit: https://www.epa.gov/enforcement/mplx-lp-clean-air-act-settlement-information-sheet.
Luzerne County Individuals Convicted of Heroin Trafficking, Firearms, and C-4 Plastic Explosives OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Roberto Torner, age 45, Liza Robles, age 34, both of Freeland, Pennsylvania, and David Alzugaray-Lugones, age 49, of Weatherly, Pennsylvania, were convicted on October 31, 2018, of heroin trafficking, firearms, and stolen military C-4 explosives offenses. The 12-day trial was held before United States District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney David J. Freed, the jury returned the guilty verdict on all counts charged in the superseding indictment after approximately three hours of deliberation. Torner was convicted of one count each of conspiring to distribute heroin, distributing heroin, conspiring to be a felon in possession of firearms and ammunition, being a felon in possession of firearms and ammunition, possessing stolen explosives, and being a felon in possession of explosives.
Robles was convicted of one count each of conspiring to distribute heroin, distributing heroin, conspiring to have a felon possess firearms and ammunition, and one count of providing firearms and ammunition to a felon. Alzugaray-Lugones was convicted of one count of conspiring to distribute heroin, and one count of distributing heroin.
The evidence presented at trial showed that in June 2015, Torner, Robles, and Alzugaray-Lugones worked together to sell approximately five grams of heroin (which is approximately 200 individual doses of heroin) to a confidential informant. The United States also presented evidence that over the course of nearly a decade, Robles purchased numerous handguns, assault rifles, a shotgun, a rifle, and ammunition that she made available to her fiancé, Torner, who was prohibited from possessing firearms and ammunition as a three-time convicted felon.
After the defendants were charged in an initial indictment for the heroin trafficking and firearms offenses, Torner was released on pretrial supervision. The evidence at trial showed that while on pretrial supervision, he planted a brick of stolen U.S. military C-4 plastic explosives on one of his rental properties, last inhabited by Alzugaray-Lugones. Law enforcement officials recovered 1.5 lbs. of stolen C-4, which resulted in additional explosives charges being filed against Torner.
The United States forfeited approximately 1,500 rounds of ammunition, and several firearms seized during the investigation. The firearms are:
- Magnum Research 1911U .45acp;
- Hi-Point JHP .45acp;
- Stag Arms STAG-15, .223 cal. (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Mossberg 500 12-gauge shotgun; and
- Norinco MAC90 (a semiautomatic firearm that is capable of accepting a large capacity magazine); and a
- Tikka T3, 30.06 rifle.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Weatherly Police Department, the Luzerne County Drug Task Force, the Pennsylvania State Police, and other federal, state, and local law enforcement agencies. Assistant United States Attorneys Phillip Caraballo and Todd Hinkley prosecuted 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.
The case also 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.
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 combined maximum penalty under federal law for Torner is up to life imprisonment, for Robles up to 20 years of imprisonment, and for Alzugaray up to 20 years of imprisonment. There is also 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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Local physician placed under supervision and will pay restitutionRead the Press Release
WHEELING, WEST VIRGINIA – Dr. Roland F. Chalifoux, Jr., a physician associated with a pain management clinic in McMechen, West Virginia, will pay more than $28,000 in restitution as a part of an agreement, United States Attorney Bill Powell announced.
The United States filed a pre-trial diversion agreement as a part of a motion to dismiss charges against Chalifoux. Chalifoux, age 59, of St. Clairsville, Ohio, has agreed to pay restitution in the amount of $28,606.75, be under supervision by the United States Probation Office, and abide by all conditions set forth in the agreement for 12 months. If at any time, any violations are made, the United States can rescind the agreement and pursue said charges.
Chalifoux has agreed to pay the following: • Centers for Medicare & Medicaid Services - $2,320.62
• WV Medicaid Fraud Control Unit - $9,860.95
• The Health Plan of the Upper Ohio Valley - $11,339.71
• Blue Cross Blue Shield - $5,085.47The Motion to Dismiss and the Pre-Trial Diversion Agreement were filed earlier this week.
Lewiston Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Tony Leonard, a/k/a “Tom Cat,” 49, of Lewiston, Maine, pled guilty today in U.S. District Court to being a felon in possession of a firearm.
According to court records, on August 17, 2017, the Lewiston Police Department executed a search warrant at Leonard’s Lewiston residence and seized a Glock .40 caliber handgun and a loaded magazine concealed inside of his jacket located in a bedroom. Leonard was prohibited from possessing the handgun because of prior felony convictions for drug trafficking, forgery, and aggravated assault.
The defendant faces up to ten years in prison, a $250,000 fine, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Lewiston Police Department, with assistance provided by the U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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.
Kentucky Resident Sentenced to More Than Three Years in Prison for Wire Fraud Conspiracy and Money Laundering SchemeRead the Press Release
SAN FRANCISCO – Bradley Howell was sentenced to 46 months in prison for conspiracy to commit wire fraud and money laundering, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Susan Illston, United States District Judge.
Howell, 34, of Louisville, Ky., pleaded guilty to the charges on July 18, 2018. According to his plea agreement, from about April 2013 through March 2014, Howell and a co-conspirator devised a scheme in which they convinced potential investors the co-conspirators could help them receive millions of dollars’ worth of financial instruments (bank guarantees and standby letters of credit) in exchange for a much smaller down payment. Howell’s co-conspirator was an attorney licensed to practice in California. Howell and his co-conspirator told the investors that the co-conspirator would serve as an escrow agent in the transactions and that after the investors wired money to an attorney-client trust account, the co-conspirator would notify them when the bank had issued a bank guarantee or standby letter of credit. Howell admitted he was aware the investors’ money was not being held in escrow and that the co-conspirator did not obtain any of the financial instruments they promised the investors they would help them obtain. Howell further admitted that he and his co- conspirator used the investors’ money for their own personal expenses.
In his plea agreement, Howell described several instances in which he and his co- conspirator obtained hundreds of thousands of dollars from would-be investors in California. For example, in July of 2013, the co-conspirator convinced an investor to wire $100,000 to the attorney trust account, supposedly to secure a $2,000,000 bond; by August of 2013, the co-conspirator convinced another three victims to provide $250,000, ostensibly to obtain a $4,000,000 financial instrument; and in February of 2014, the co-conspirator tricked three more victims into wiring $300,000, supposedly to finance a $20,000,000 project. In sum, between May 2013 and February 2014, Howell admitted receiving over a $1 million from his co-conspirator pursuant to the scheme.
In addition, Howell admitted in his plea agreement that he was engaged in a money laundering scheme in Kentucky. Specifically, Howell admitted that in 2012, he defrauded a steel company of $500,000, and in 2015, he defrauded a married couple of $100,000.On September 17, 2015, federal grand jury in the Northern District of California indicted Howell, charging him with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and nine counts of wire fraud, in violation of 18 U.S.C. § 1343. In addition, on March 8, 2017, a federal grand jury in the Western District of Kentucky indicted Howell, charging him with two counts of wire fraud and two counts of money laundering, in violation of 18 U.S.C. § 1957. Based on the consent of both districts, the Kentucky proceedings were transferred to the Northern District of California. Pursuant to his plea agreement, Howell pleaded guilty to the conspiracy charge and one of the Kentucky money laundering counts.
In addition to the prison term, Judge Illston sentenced the defendant to a three-year period of supervised release and ordered him to pay $1,591,895 in restitution. Judge also ordered forfeiture of four parcels of real property, a Lamborghini automobile and a Campagna T Rex motorcycle. Howell has been in custody since May of 2018, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Robin Harris and Chinhayi Cadet are prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI and the Internal Revenue Service, Criminal Investigation.
Jamaican National Residing in New York Pleads Guilty to Passport Fraud OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NEVILLE S. NICHOLSON, 60, formerly of the Bronx, New York, pleaded guilty today in Hartford federal court to passport fraud offenses.
According to court documents and statements made in court, in June 2014, Nicholson submitted an application for a U.S. passport, in the name of another individual, at the Ferguson Library in Stamford, Connecticut. With his application, Nicholson provided the passport acceptance agent with a false birth certificate, a fraudulent New York State driver’s license, and his photograph for inclusion in the passport. Nicholson then signed under oath claiming to be the other individual. The U.S. Department of State subsequently issued a passport to Nicholson.
Nicholson used the fraudulent passport to travel between New York and Jamaica in 2014 and 2016.
Nicholson pleaded guilty to one count of making a false statement in a passport application, and two counts of using a passport secured by false statement. Each offense carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on January 24, 2019.
Nicholson has been detained since his arrest on related New York state charges on September 1, 2017.
This case has been investigated by the U.S. Department of State, Diplomatic Security Service, with assistance from the New York City Police Department. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Justice Department Reports Major Increases in Victim Reporting and Number of Lawsuits Filed in One Year Since Launch of Initiative to Combat Sexual Harassment in HousingRead the Press Release
SIOUX FALLS – United States Attorney Ron Parsons and the Justice Department today announced the one-year anniversary of its initiative to combat sexual harassment in housing. Since its launch in October 2017 and nationwide expansion in April 2018, the Department has seen a major upswing in both reporting and enforcement. Over the past year, the Department has:
- Opened 34 new sexual harassment matters. This is more than any previous year and nearly five times the number of matters opened in the prior year.
- Filed six pattern-or-practice lawsuits challenging alleged sexual harassment in housing. This is more than the Department has filed in any previous year.
- Western District of Michigan - United States v. Tjoelker,
- District of Kansas - United States v. Cao Properties and Rentals,
- Southern District of Ohio - United States v. Klosterman,
- Northern District of New York - United States v. Waterbury,
- Northern District of Alabama - United States v. Hames,
- Western District of Oklahoma - United States v. Pelfrey.
“For landlords or property managers to try to use the power they have over tenants to extort sexual favors, or even commit assaults, is beyond reprehensible,” said U.S. Attorney Parsons. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Our District hosted a roundtable discussion in April regarding sexual harassment in housing, and we are dedicated to uncovering such violations wherever they exist and vigorously enforcing the law.”
“This important initiative is giving a voice to victims of sexual harassment in housing. It also sends the strong message that the Department is listening to victims and taking action against landlords and managers who attempt to prey on vulnerable individuals all over the country,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “The Justice Department remains committed to our goal to make more people aware that no one should have to choose between a home and the right to be free from sexual harassment.”
“A home can never be a place of peace and comfort for individuals who are subjected to sexual harassment,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “We still have work to do, but the initiative has taken tremendous steps this past year toward addressing this unlawful behavior and the Justice Department and HUD remain committed to doing even more to inform the public about their housing rights.”
The Department took several steps this past year to drive an increase in reporting and enforcement.
First, the Department held 20 roundtables about sexual harassment in housing at U.S. Attorneys’ Offices across the country. At these events, the Department creates opportunities for collaboration with local community partners, including engaging local law enforcement officers, legal aid offices, fair housing organizations, universities, civil rights organizations, and other groups.
U.S. Attorney Roundtables Hosted this Year:
Central District of California
District of Colorado
Middle District of Florida
Northern District of Georgia
Northern District of Iowa
District of Maryland
District of Massachusetts
Eastern District of Michigan
District of Minnesota
District of New Jersey (2)
Eastern & Southern Districts of New York (joint)
Northern District of Ohio
Eastern District of Pennsylvania
District of South Dakota
Northern District of Texas
District of Vermont
Western District of Virginia (2)
Second, the Department created an outreach toolkit designed to leverage the nationwide network of U.S. Attorney’s Offices and boost local outreach about sexual harassment in housing.
Third, the Department released a Public Service Announcement (PSA), in conjunction with the U.S. Department of Housing and Urban Development (HUD), featuring three women who were identified as victims of sexual harassment in DOJ lawsuits. The Department developed a 60-second video featuring three women who were injured parties in sexual harassment lawsuits brought by the Department under the Fair Housing Act. In the PSA, the women, in their own words, share the stories of how they were harassed and the impact the experience has on their lives. The PSA is posted on the Department’s YouTube channel.
Fourth, the Department launched a webpage on sexual harassment in housing. It is available in both English and Spanish. The webpage has resources available to download. This includes a partnership toolkit, flyers in 11 languages (English, Spanish, Arabic, Chinese (simplified), Chinese (traditional), Haitian Creole, Hindi, Korean, Tagalog, Urdu, and Vietnamese), palm cards in English and Spanish, and information sheets for advocates in English and Spanish.
Finally, the Department and HUD launched a new Task Force to Combat Sexual Harassment in Housing. It is focused on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies. The Task Force has facilitated collaboration between DOJ and HUD in drawing attention to the national PSA, including distributing it to public housing authorities, on HUD’s YouTube channel, and through social media.
More information about the Civil Rights Division and the civil rights laws it enforces is available at justice.gov/crt. If you believe you may be a victim of sexual harassment in housing, you should:
- call the Justice Department at 1-844-380-6178,
- send an e-mail to [email protected], or
- contact HUD at 1-800-669-9777.
If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Inmate Sentenced to 13 Months’ Imprisonment for Assaulting Correctional OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daryl Johnson, age 33, formerly of Washington, D.C., was sentenced on October 30, 2018, by United States District Court Judge A. Richard Caputo to 13 months’ imprisonment and three years’ supervised release for assaulting a federal employee.
According to United States Attorney David J. Freed, Johnson, then serving a sentence for armed robbery, kicked a correctional officer in the face during an altercation at the United States Penitentiary at Canaan in September 2016. The correctional officer suffered minor injuries.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
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Individual Arrested on Sex Trafficking and Other Offenses in Connection with Missing Person Corinna SlusserRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that ISHI WONEY was charged with sex trafficking and other offenses involving the sexual exploitation of young women. WONEY was arrested yesterday in New Jersey and will be presented today before U.S. Magistrate Judge Sarah Netburn in federal court in Manhattan this afternoon.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Ishi Woney engaged in a vile form of exploitation, using force and other coercion to compel young women to engage in paid sex for his enrichment. We will continue to work with the FBI and NYPD to protect prospective victims of human trafficking and arrest and prosecute their predators.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As alleged, Woney compelled his victim to engage in prostitution through force and coercion, and he used both this victim and Corinna Slusser, who has been missing since September 2017, in online advertisements promoting prostitution. Human trafficking is a top priority for the FBI, and, as today’s charges demonstrate, we will continue to aggressively pursue justice for the victims of these heinous crimes. Ms. Slusser was last seen in Queens, New York, and we ask anyone with information concerning her whereabouts to contact us as 1-800-CALL-FBI or online at tips.fbi.gov.”
NYPD Commissioner James P. O’Neill said: “Today’s charges further affirm the NYPD’s unwavering commitment to protecting the victims of sex trafficking in and around the five boroughs of New York City. This crime is among the most heinous in society, and it is our job – and the job of all of our local, state, and federal law enforcement partners – to ensure that anyone who would seek to profit through the abuse and exploitation of another human being be brought to justice swiftly and successfully. I thank and commend the U.S. Attorney’s Office for the Southern District and the FBI for collaborating with us on this critical case. And we urge anyone who has any information related to this case, or any other, to contact law enforcement. Together, we will continue to make the safest large city in the nation even safer.”
According to the allegations in the Complaint sworn out in Manhattan federal court:[1]
Between approximately September 2017 and the present, WONEY engaged in sex trafficking by using force, fraud, and coercion to compel at least one female victim (“Victim-1”) to engage in sex acts in the Bronx and other locations in exchange for money. WONEY also transported Victim-1 to multiple states, including New York, to engage in prostitution, and purchased online advertisements promoting prostitution, some of which featured Victim-1 and Corinna Slusser, who has been a missing person since September 20, 2017, and was last seen in Queens, New York.
If you have any information related to the whereabouts of Corinna Slusser, please contact the FBI at 1-800-CALL-FBI or online at tips.fbi.gov, or the NYPD at 800-577-TIPS.
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The charges in the Complaint against WONEY, 23, of New York, New York, are included in the chart below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of FBI and NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel H. Wolf is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Count
Charge
Mandatory Minimum Prison Term
Maximum Prison Term
One
Use of an Interstate Facility to Promote, Manage, and Carry on Prostitution
N/A
5 Years
Two
Mann Act
N/A
10 Years
Three
Sex Trafficking by Means of Force, Threats, Fraud, and Coercion
15 Years
Life
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Huntingdon County Man Sentenced to 70 Year’s Imprisonment for Exploitation of MinorsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jay Eugene Reed, age 58, of Three Springs, Pennsylvania was sentenced on October 30, 2018, by United States District Court Judge Yvette Kane to 70 years’ imprisonment followed by a lifetime term of supervised release for exploitation of minors.
According to United States Attorney David J. Freed, the Pennsylvania State Police initially charged Reed in July 2015 with rape and sexual assault charges relating to a number of minors. During the investigation, the Pennsylvania State Police seized a cell phone, a computer, and other electronic devices belonging to Reed from his residence. On February 2, 2017, Reed pleaded guilty to all counts of the September 2015 federal indictment and admitted to both producing and possessing images of child pornography that were found on several of the seized devices. Reed also pleaded guilty to obstruction of justice for the letters he wrote to a minor victim and a family member asking that they not talk about what he had done.
Before the Court imposed the 70-year sentence, the defense offered testimony from defense expert Dr. Joseph Silverman, a psychiatrist. Dr. Silverman opined dementia, sleep apnea or brain dysfunction may have caused Reed to rape and molest the four minor victims when they were between the ages of 9 and 13, photograph their naked genitals approximately 200 times, collect 300 pornographic images of prepubescent children from the internet and then write letters trying to convince the witnesses not to talk about what he did. Judge Kane rejected the defense’s request to impose only the mandatory minimum of 15 years, describing Dr. Silverman’s testimony as “fanciful” and “not based in science.”
Reed also pleaded guilty to three counts of rape in the Court of Common Pleas of Huntingdon County on May 4, 2018. A sentencing date has not yet been scheduled.
This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the Huntingdon County District Attorney’s Office. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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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Honduran National Man Pleads Guilty to Immigration CrimeRead the Press Release
Defendant had two prior deportations to Honduras
BECKLEY, W.Va. – A Honduran national man entered a guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Wilfredo Artiaga-Mejia faces up to two years of incarceration when he is scheduled to be sentenced on February 20, 2019. Artiaga-Mejia is also subject to deportation proceedings at the conclusion of any sentence. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE).
“My office is serious about prosecuting those who enter the United States illegally,” said United States Attorney Mike Stuart. “And we will continue to do so.”
On August 29, 2018, Artiaga-Mejia was found in Maxwelton, Greenbrier County, West Virginia by members of ICE after receiving a tip that individuals were in the country illegally and working in the area. Pursuant to this investigation, ICE agents approached Artiaga-Mejia and he surrendered to them. Agents immediately confirmed that Artiaga-Mejia was not in the United States legally, and took him into federal custody.
Artiaga-Mejia’s fingerprints matched him to two prior encounters where he was found in the United States illegally and deported from the United States to Honduras. He was also previously convicted of illegally entering the United States on December 4, 2012 in the Western District of Texas. Artiaga-Mejia-Chigo illegally reentered the United States prior to his capture in 2018. Artiaga-Mejia had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Artiaga-Mejia also admitted to ICE agents that he was a Honduran citizen.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Irene Berger presided over the hearing.
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Guatemalan Drug Trafficker Who Coordinated Maritime Cocaine Loads on High Seas Pleads GuiltyRead the Press Release
For Further Information, Contact: Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
SAN DIEGO – Defendant Luis Carlos Melgar-Morales, aka Aquaman, pled guilty today in a San Diego federal district court to international conspiracy to distribute over 10,000 kilograms of cocaine, knowing that the cocaine would be distributed in the United States, in violation of Title 21, United States Code, Sections 959, 960 and 963. He also admitted to criminal forfeiture in the amount of $1,000,000.
Melgar-Morales, 28, admitted engaging in a two-year conspiracy to import and distribute cocaine in the United States and conceded he was a manager and leader of the responsible drug trafficking organization. In furtherance of the charged conspiracy, and at direction of Willian Lemus, Melgar-Morales arranged for multiple go-fast vessels to travel in international waters on many occasions to transport bulk cocaine from Colombia and Ecuador, known source countries for the cocaine, to Costa Rica and Guatemala, and from there the drugs would be transported to Mexico and smuggled into the United States.
Melgar-Morales also facilitated and coordinated the points of travel of the cocaine-laden go fast vessels as they met with refueling vessels on the high seas and communicated to the transportation network about the vessels’ status as they journeyed north. In addition, he facilitated and coordinated the successful delivery of cocaine vessels from Columbia and Ecuador to Costa Rica and Guatemala.
Melgar-Morales admitted that the international conspiracy involved the distribution of over 10,000 kilograms of cocaine during the two-year period from January 2016 to January 2018. Melgar-Morales was also involved in multiple events that resulted in law enforcement seizures including the following: May 19, 2017 (810 kilograms of cocaine); May 23, 2017 (980 kilograms of cocaine); November 9, 2017 (750 kilograms of cocaine); December 16, 2017 (1,082 kilograms of cocaine); and January 27, 2018 (601 kilograms of cocaine).
Homeland Security Investigation (HSI) Special Agents and Customs and Border Protection officers arrested Melgar-Morales at the Los Angeles airport on January 26, 2018, as he was returning to Guatemala, where he resided. Melgar-Morales’ associate, Willian Lemus-Lara, charged in a separate indictment, was arrested in Guatemala pursuant to an outstanding arrest warrant from the Southern District of California in June 2018, identified in United States v. Willian Lemus-Lara, 18CR0390DMS. Willian Lemus-Lara is currently in extradition proceedings.
“Federal law enforcement officials worked together in three countries to successfully disrupt a dangerous drug trafficking ring that sought to smuggle 10,000 kilos of cocaine (with a retail value of $600 million) into the U.S.,” said U.S. Attorney Adam Braverman. “Through effective partnerships and excellent intelligence gathering tools, we intercepted significant loads of this highly addictive stimulant, stripped traffickers of drug profits, and helped to safeguard our communities.”
“Today’s guilty plea highlights the success of collaborative efforts by HSI San Diego, DEA, Customs and Border Protection and other agency partners, as well as our HSI counterparts overseas. This joint effort has resulted in significant seizures of narcotics, firearms and other contraband and has helped law enforcement identify high ranking targets of this criminal organization,” said David Shaw, Special Agent in Charge for HSI San Diego. “HSI will remain committed in our investigative efforts to bring additional members to justice.”
“This case is an excellent example of the whole government approach set forth by the OCDETF Task Forces throughout our country,” said Drug Enforcement Administration Acting Special Agent in Charge Nathan Jones. “It is a testament to the outstanding men and women in federal law enforcement who work tirelessly day in and day out to identify, target, and bring to justice the drug trafficking and transnational organized crime groups that seek to import illicit drugs into the United States and undermine the very fabric of our nation.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Melgar-Morales’ sentencing date is scheduled for January 18, 2019 at 9:00 a.m. before the Honorable Dana M. Sabraw, United States District Court Judge.
DEFENDANT Case Number 18CR0391DMS
Luis Carlos Melgar-Morales, aka Aquaman Age: 28 Guatemala
SUMMARY OF CHARGES
International Conspiracy To Distribute 10,000 kilograms of cocaine into the United States
Maximum penalty: 10 years minimum to life; $1,000,000 fine; supervised release; $100 special assessment)
INVESTIGATING AGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Joint Task Force Investigations (JTF-I)
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Joint Interagency Task Force-South (JIATF-S)
Four Alleged Members of the Aryan Circle Gang Charged with Aggravated Assault in Aid of RacketeeringRead the Press Release
Four alleged members or associates of the Aryan Circle (AC) have been indicted and three arrested for their alleged roles in a Nov. 9, 2013 aggravated assault in Jefferson County, Missouri.
The indictments were announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Jeffrey B. Jensen of the Eastern District of Missouri.
Thomas B. Wilson, 43, of Villa Ridge, Missouri; Daniel B. Jerome, 31, of Wentzville, Missouri; Thomas Tisher, 34, of St Louis, Missouri; and Dustin M. Haney, 28, of Hermann, Missouri are charged in an indictment, returned by a federal grand jury on Oct. 31, and unsealed today, with aggravated assault in aid of racketeering. Daniel B. Jerome remains at large.
“These four defendants are alleged to have brutally assaulted their victim in order to establish or maintain their own status in the Aryan Circle gang,” said Assistant Attorney General Benczkowski. “Gangs like the Aryan Circle threaten the safety and security of all Americans, and the Criminal Division will target and aggressively prosecute any individual who commits acts of violence on behalf of a gang.”
According to the indictment, the AC is a powerful race-based, multi-state organization that operates inside and outside of state and federal prisons throughout the United States, and particularly in Missouri, Texas, Oklahoma and Louisiana. The AC was established in the mid-1980s within the Texas prison system (TDCJ). Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Missouri, Texas, and Louisiana. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT). The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.
The indictment further alleges that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and often, associates, are required to follow the orders of higher-ranking members without question.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by an Organized Crime Drug Enforcement Task Force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; FBI; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Montgomery County (TX) Precinct 1 Constable’s Office; Louisiana State Police; Indiana State Police; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office and the Tarrant County (TX) Sheriff’s Office.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Angie Danis of the Eastern District of Missouri, in cooperation with the U.S. Attorney’s Office of the Western District of Louisiana and the U.S. Attorney’s Office of the Eastern District of Texas.
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Four Alleged Members of the Aryan Circle Gang Charged with Aggravated Assault in Aid of RacketeeringRead the Press Release
Four alleged members or associates of the Aryan Circle (AC) have been indicted and three arrested for their alleged roles in a Nov. 9, 2013 aggravated assault in Jefferson County, Missouri.
The indictments were announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Jeffrey B. Jensen of the Eastern District of Missouri.
Thomas B. Wilson, 43, of Villa Ridge, Missouri; Daniel B. Jerome, 31, of Wentzville, Missouri; Thomas Tisher, 34, of St Louis, Missouri; and Dustin M. Haney, 28, of Hermann, Missouri are charged in an indictment, returned by a federal grand jury on Oct. 31, and unsealed today, with aggravated assault in aid of racketeering. Daniel B. Jerome remains at large.
“These four defendants are alleged to have brutally assaulted their victim in order to establish or maintain their own status in the Aryan Circle gang,” said Assistant Attorney General Benczkowski. “Gangs like the Aryan Circle threaten the safety and security of all Americans, and the Criminal Division will target and aggressively prosecute any individual who commits acts of violence on behalf of a gang.”
According to the indictment, the AC is a powerful race-based, multi-state organization that operates inside and outside of state and federal prisons throughout the United States, and particularly in Missouri, Texas, Oklahoma and Louisiana. The AC was established in the mid-1980s within the Texas prison system (TDCJ). Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Missouri, Texas, and Louisiana. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT). The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.
The indictment further alleges that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and often, associates, are required to follow the orders of higher-ranking members without question.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by an Organized Crime Drug Enforcement Task Force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; FBI; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Montgomery County (TX) Precinct 1 Constable’s Office; Louisiana State Police; Indiana State Police; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office and the Tarrant County (TX) Sheriff’s Office.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Angie Danis of the Eastern District of Missouri, in cooperation with the U.S. Attorney’s Office of the Western District of Louisiana and the U.S. Attorney’s Office of the Eastern District of Texas.
Former Reality Television Series “Bad Girl” Pleads Guilty to FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SHANNADE CLERMONT pled guilty to one felony count of wire fraud for making and attempting more than $20,000 in fraudulent charges using the stolen debit card information of a deceased man she had visited for a prostitution date. CLERMONT pled guilty before U.S. District Judge Naomi Reice Buchwald.
U.S. Attorney Geoffrey S. Berman said: “Former reality TV ‘Bad Girl’ Shannade Clermont stole debit card information from a man she visited for a prostitution date in his Manhattan apartment. When he died of an overdose, Clermont used the deceased man’s identity to make tens of thousands of dollars in fraudulent purchases. She has now pled guilty to fraud and faces time in federal prison. This case demonstrates that in reality, those who commit debit card fraud will be prosecuted to the fullest extent of the law.”
According to the allegations contained in the Complaint and Indictment to which CLERMONT pled guilty:
The NYPD and the United States Attorney’s Office for the Southern District of New York have been investigating the overdose death of a male individual (the “Victim”), who was found dead on the morning of February 1, 2017, in his apartment at 250 East 53rd Street in Manhattan, New York (the “Victim Apartment”). During the course of that investigation, law enforcement learned that CLERMONT visited the Victim for a prostitution date at the Victim Apartment the previous evening (January 31, 2017), and stole two debit cards from his wallet. CLERMONT then used the stolen debit card information to make or attempt to make more than $20,000 in fraudulent purchases during the months following the Victim’s death, including to pay her rent and phone bills, purchase flights, and make several online purchases of thousands of dollars of clothing and other merchandise.
CLERMONT also created and used a fake email account in the Victim’s name to falsely represent to third parties that she was the Victim, in order to commit fraud using the Victim’s identity. Specifically, on or about April 3, 2017, approximately two months after the Victim’s death, the fake email account was used to register an account with Western Union in the name of the Victim, which was used to initiate a fraudulent money transfer of $1,000 from the Victim to CLERMONT.
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CLERMONT, 24, of Georgia, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years. Sentencing before Judge Buchwald is scheduled for February 13, 2019 at 2:30pm.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Former Philadelphia Police Officer Pleads Guilty to Conspiring with Former Baltimore Police GTTF Detective to Distribute Heroin and Other NarcoticsRead the Press Release
Baltimore, Maryland –Former Philadelphia Police officer Eric Troy Snell, age 34, of Philadelphia, Pennsylvania, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin and cocaine. Snell admitted that he conspired with former Baltimore Police Gun Trace Task Force (GTTF) Detective Jemell Rayam and others to sell heroin and cocaine seized by GTTF members. Snell pleaded guilty on the fourth day of his trial, which began on October 29, 2018.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
“The community needs to know that when we have evidence of wrongdoing, we will follow that evidence and prosecute you--whether you wear a badge or not,” said Maryland U.S. Attorney Robert K. Hur. “Prosecuting law enforcement officers is painful, but necessary if we are to restore the public’s trust in our justice system. No one is above the law.”
“Law enforcement officers are given incredible power to enforce the law and ensure justice. Thwarting abuse of this authority is necessary to protect the rights of our citizens and uphold confidence in law enforcement. Anyone who takes advantage of their position for personal gain or in persistence of criminal misconduct must and will be held accountable,” said Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office.
According to court documents and statements at his plea hearing today, Snell is a former Baltimore Police Department (BPD) Officer, who received his training at the Baltimore Police Academy with Jemell Rayam, a former Detective with the BPD Gun Trace Task Force. Snell left the BPD in March 2008, and became an officer in the Philadelphia Police Department on September 29, 2014.
Snell admitted that from at least October 2016 through June 26, 2017, he conspired with Rayam and others to sell heroin and cocaine seized by members of the BPD in Maryland. On October 3, 2016, GTTF Sergeant Wayne Jenkins, Rayam, and other detectives, engaged in a high-speed police chase of G.H. G.H. threw nine ounces of cocaine out of the window of his vehicle before crashing near Mondawmin Mall in Baltimore. The BPD officers retrieved the cocaine and Jenkins told Rayam to sell most of the cocaine and give Jenkins the proceeds of the sale, which Rayam agreed to do.
On October 18, 2016, after learning about the cocaine from Rayam, Snell asked Rayam to give him the cocaine that was stolen from G.H. and not submitted as evidence to BPD. Rayam agreed and on October 20, 2016, traveled to Philadelphia to meet Snell at his residence. Ryam provided the cocaine to Snell, who made arrangements to meet with Snell’s brother, who would sell the cocaine for Snell and Rayam. Later that day. Snell, Rayam, and Snell’s brother met and discussed: the sale of the cocaine; the price the cocaine should be sold for; the amount of money that Snell’s brother would pay Snell after the sale of the cocaine; and the amount of money that Snell would pay Rayam after the sale of the cocaine. On October 23, 2018, Rayam and Snell agreed that Rayam would provide Snell with heroin for Snell to sell and distribute.
Snell admitted that he communicated with Rayam on October 27, 2016, to advised that Snell had received “2K” ($2,000) from the sale of illegal drugs and subsequently deposited $1,000 into Rayam’s bank account. Snell met Rayam several other times to coordinate the drug trafficking and exchange drugs and cash. Snell admitted that he paid Rayam on subsequent occasions for drug proceeds, including making a $2,500 deposit into Rayam’s bank account.
Following Rayam’s arrest on June 26, 2017, Snell spoke with Rayam on the recorded phone system in place at the jail where Rayam was detained. Snell instructed Rayam to “say less” on the recorded jail phones so that law enforcement would not detect their illegal drug trafficking.
On November 14, 2017, Snell was arrested and transported to Baltimore for his initial appearance. During the transport, Snell admitted that he lied to FBI agents when he told them that the payments he made to Rayam were for the repayment of a gambling debt, when in fact, the payments were for drugs he received from Rayam.
During a search of Snell’s residence on November 14, 2017, law enforcement recovered a box in which Snell stored items containing cocaine residue, next to a package of razor blades that were used to cut and process narcotics for distribution, as well as .40-caliber and 9 mm handgun ammunition. From the master bedroom, law enforcement recovered Snell’s Philadelphia Police Department service weapon, a 9 mm handgun, as well as a 40-caliber handgun, and two unregistered short-barrel assault rifles.
Snell admits that the amount of narcotics reasonably foreseeable to him in furtherance of the conspiracy is the equivalent of at least 100 kilograms of marijuana.
Snell faces a maximum sentence of 20 years in prison. United States District Judge Catherine C. Blake has scheduled sentencing for January 30, 2019, at 2:15 p.m.
Jemell Lamar Rayam, age 38, of Owings Mills, Maryland, previously pleaded guilty to one count of racketeering conspiracy including multiple robberies, and overtime fraud, and is awaiting sentencing.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
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Former O'Fallon Resident Pleads Guilty to Receiving Child PornographyRead the Press Release
Christopher R. Buse, 42, formerly of O’Fallon, Illinois, has been convicted of knowingly receiving child pornography over the internet, the U.S. Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Buse pleaded guilty to a one-count federal indictment without a plea agreement. He faces a prison sentence of 5 to 20 years on the charge.
Facts elicited at the plea hearing established that, from January to November 2016, Buse had been offering child pornography files to share over the internet through a peer-to-peer file sharing application. Undercover officers downloaded some of the illicit files and were able to track the IP address back to an address in O’Fallon, where Buse was living at the time.
As investigators were preparing to execute a federal search warrant on Buse’s apartment, they discovered that he had moved to Staunton, Illinois, which is in the Central District of Illinois, and that he was still sharing child pornography from his new location. A second search warrant was obtained and executed at his Staunton home on May 10, 2017. Items seized during the search were found to contain more child pornography files.
Sentencing is set for February 6, 2019, at the federal courthouse in East St. Louis.
The prosecution is the result of an investigation by the Federal Bureau of Investigation’s Violent Crimes against Children Task Force, the United States Secret Service’s Springfield Electronic Crime Unit-Southern Illinois Cyber Group, the O’Fallon Illinois Police Department, and the Calhoun County Sheriff’s Department. The United States Attorney’s Office for the Central District of Illinois and the Staunton Illinois Police Department also assisted in the investigation. The case is being prosecuted by Assistant United States Attorney James G. Piper, Jr.
Former Investigator with District Attorney’s Office for the 22nd Judicial District Pleads Guilty to Making False Statements to Federal AuthoritiesRead the Press Release
U.S. Attorney Peter G. Strasser announced that JEFFERY B. MONTALBANO, age 58, a resident of Mandeville, Louisiana, pleaded guilty before United States District Judge Susie Morgan to a one-count bill of information with making false statements to federal authorities, in violation of 18 U.S.C. ' 1001(a)(2).
According to court documents, MONTALBANO was the president of an entity called “JBM OIL SALES” and from about February 2013 to April 2018 worked for the Office of the District Attorney for the 22nd Judicial District as an investigator in the domestic violence unit. While employed as an investigator, MONTALBANO was responsible for collecting and preparing evidence in domestic violence investigations and trials and coordinating witness and victim testimony.
On January 23, 2018, MONTALBANO met with a special agent with the Federal Bureau of Investigation at 3601 Highway 190, Mandeville, Louisiana, within the Eastern District of Louisiana. This meeting was part of an investigation the FBI was conducting into approximately $20,000 paid by a defendant in a criminal matter pending in the 22nd Judicial District (“Defendant A”) to MONTALBANO’S associate (“Person 1”). The investigation concerned the nature of the payment and whether MONTALBANO took official action to benefit Defendant A in an ongoing criminal matter in exchange for receiving the payment.
During the interview, MONTALBANO made numerous materially false statements and omissions related to the investigation in response to questions posed to him by FBI Special Agents. In particular, MONTALBANO said that neither he nor Person 1 had ever received money from Defendant A. He also said that he had no idea federal agents visited the Office of the District Attorney for the 22nd Judicial District to investigate the allegations that MONTALBANO had received money from Defendant A in exchange for using his influence to benefit Defendant A. In truth, however, MONTALBANO knew that Defendant A gave Person 1 two checks in the amount of $10,000 each on November 22, 2013 and December 30, 2013, that Person 1 gave MONTALBANO checks for half the money he received from Defendant A on November 26, 2013, and December 30, 2013, and that FBI Special Agents had interviewed MONTALBANO’s colleagues on October 8, 2015. The false statements impeded FBI Special Agents from determining whether (1) payments from Defendant A were in exchange for beneficial action for Defendant A and whether (2) MONTALBANO communicated truthfully with his supervisors.
“Former St. Tammany Parish DA Investigator Jeff Montalbano lied multiple times to FBI Agents who were seeking to learn why he accepted $10,000, through an intermediary, from a criminal defendant who was facing sentencing in a case brought by Mr. Montalbano's own office. Mr. Montalbano's conviction sends a clear message that the FBI and the US Attorney's Office will not permit criminal investigations to be impeded by false statements, especially by those we entrust to uphold and enforce the law,” said FBI Special Agent in Charge Eric J. Rommal.
MONTALBANO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Morgan was scheduled for February 6, 2019.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Former Fifth Circuit Director of Communications Pleads Guilty in Federal Court to FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced that Nicole Halliett Holland, 49, former Director of Communications for the Fifth Circuit Solicitor’s Office and a resident of Columbia, pled guilty in federal court today to two fraud counts, one Wire Fraud and the other Mail Fraud. Senior United States District Court Judge Cameron McGowan Currie presided. Sentencing has been set for February 26, 2019.
Facts presented in court established that from 2011 to March 2018, Holland was employed by Daniel Edward Johnson at the Fifth Circuit Solicitor’s Office. During her time of employment, Nicole Holland used Solicitor’s Office funds to pay for personal expenses.
Using a Solicitor’s Office credit card issued to her to pay for office-related expenses, she made the following unauthorized purchases:
• In May 2017, various hotel stays at the Hampton Inn and Suites in Hopkinsville, KY, totaling over $2,700. These charges correlate to Count 11, which is the wire fraud for the August 7, 2017, payment covering these personal expenses.
• In March 2017, a $1,020 expense for a family member’s orthodontics treatment that Holland labelled as “tournament sponsorship.” This charge correlates to Count 19, the mailing and receipt of the Bank of America statement ending on March 8, 2017, which contained this expense.
Holland faces up to twenty years in federal prison, with a potential fine up to $250,000.
The Federal Bureau of Investigation (FBI) and South Carolina Law Enforcement Division (SLED) investigated the case. Assistant United States Attorneys Winston D. Holliday, Jr., Alyssa Leigh Richardson, and William C. Lewis of the Columbia office are prosecuting the case.
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Former Drexel University Student Sentenced for Cyberstalking ClassmateRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Jacob Waitze, 23, of Southbury, Connecticut, was sentenced today to 24 months’ imprisonment, followed by 3 years’ supervised release. Waitze previously pleaded guilty to cyberstalking in violation of 18 U.S.C. § 2261A(2)(b).
During the 2015-16 school year, Waitze, a former Drexel University student, used a computer and the Internet to engage in a campaign of harassment and intimidation against a Drexel student following a personal dispute with the student. Waitze impersonated the victim in a variety of Internet forums, suggesting that the victim was either a pedophile who needed help or someone interested in receiving child pornography material. In doing so, the communications and statements Waitze made typically included the victim’s true name, the victim’s actual e-mail address, photographs of the victim, and/or actual personal details concerning the victim, such as the victim’s status as a Drexel student. As a result, the victim received multiple unwanted emails, both from persons who were offended by the posts and from persons who wanted to engage the victim in conversations related to child pornography.
“In taking on the victim’s persona online, Waitze used the Internet as a weapon to carry out his personal vendetta,” said U.S. Attorney McSwain. “By giving others the impression that this victim was interested in child exploitation, Waitze caused the victim a great deal of harm. Today’s sentence demonstrates that my Office will hold cyberstalkers accountable when they misuse technology in this manner.”
“HSI is hopeful that today’s sentencing provides the victim in this case a sense of relief after the months of abuse and harassment they endured at the hands of Mr. Waitze,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “HSI takes these crimes seriously and will continue to work with our law enforcement partners to hold accountable cyberstalkers who cause long-lasting damage to the reputations of their victims for their own selfish gain.”
The case was investigated by Homeland Security Investigations, the Philadelphia Police Department, and the Drexel University Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
Federal Inmate Pleads Guilty to Weapon ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that a federal inmate pled guilty to a weapon charge. The case was investigated by the Federal Bureau of Prisons.
“Another inmate with a shank,” said United States Attorney Mike Stuart. “The result will be another extended prison stay.”
Dave Berrios-Hernandez, 24, an inmate at the Federal Correctional Institution at Beckley, pled guilty to possessing a handcrafted weapon commonly known as a “shank” at the prison on September 5, 2017. A staff member observed Berrios-Hernandez throw the weapon down. Berrios-Hernandez faces up to five years in prison, consecutive to the sentence he is now serving, when he is sentenced on February 20, 2019.
Assistant United States Attorney John File is handling the prosecution. United States District Judge Irene C. Berger presided at the plea hearing.
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Federal Grand Jury Indicts Four Members of White Supremacy Group on Charges Stemming from Attacks at Political RalliesRead the Press Release
LOS ANGELES – A federal grand jury this afternoon returned a two-count indictment that charges four Southern California men linked to a white supremacy extremist group with planning and engaging in riots at political rallies across California.
The four defendants – all of whom are in federal custody, currently being held without bond – are charged with conspiracy for their activities in connection with the white supremacist organization known as the Rise Above Movement, or RAM. “RAM represented itself publicly as a combat-ready, militant group of a new nationalist white supremacy and identity movement,” according to the indictment.
The four defendants named in the indictment are:
Robert Rundo, 28, of Huntington Beach, allegedly a founding member of RAM;
Robert Boman, 25, of Torrance;
Tyler Laube, 22, of Redondo Beach; and
Aaron Eason, 38, who resides in the Riverside County community of Anza.
All four defendants are charged with one count of conspiracy. Rundo, Boman and Eason are additionally charged with one count of rioting
The four defendants are scheduled to be arraigned on the indictment later this month, starting with Rundo on November 9.
According to the indictment, the four men participated the conspiracy in varying ways, including by engaging in recruitment of RAM members, coordinating and participating in hand-to-hand and other combat training, traveling to political rallies to attack protesters and other persons, and publishing photographs and videos of violent acts to recruit other members for future events.
The indictment alleges that various members of the conspiracy directly participated in attacks at political rallies in Huntington Beach on March 25, 2017; in Berkeley on April 15, 2017; and in San Bernardino on June 10, 2017. In the months following these events, the defendants allegedly trained for future events and celebrated their assaults, which included online posts with photos of RAM members assaulting people.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Both the conspiracy and riots charges in the indictment carry statutory maximum sentences of five years in federal prison.
This case is being investigated by the FBI’s Joint Terrorism Task Force.
This matter is being prosecuted by Assistant United States Attorney David T. Ryan of the Terrorism and Export Crimes Section in the National Security Division of the United States Attorney’s Office.
Today’s indictment follows the filing of an indictment in United States District Court in Charlottesville, Virginia that charges four other California RAM members with violating the riots statute during violent altercations in Charlottesville in August 2017.
Federal Circuit Court of Appeals Upholds Denial of Sunoco’s One Billion Dollar Tax ExpenseRead the Press Release
The Federal Circuit Court of Appeals issued a precedential opinion today affirming the Court of Federal Claims decision that federal corporate taxpayers may not deduct as a cost of goods sold expense an excise tax expense that was never actually incurred or paid, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Travis A. Greaves of the Justice Department’s Tax Division.
In Sunoco, Inc. v. United States, No. 2017-1402, the Federal Circuit Court of Appeals affirmed the decision of the Court of Federal Claims and the position of the United States. Sunoco, Inc., a petroleum and petrochemical company, claimed approximately $1 billion in alcohol fuel mixture credits on its federal excise tax returns thereby reducing its federal fuel excise tax liability by the same amount. By including the $1 billion in excise tax expenses in its cost of goods sold, Sunoco, Inc. sought to reduce its federal corporate income taxes with an excise tax expense that was never paid. The Federal Circuit held that the plain language of the Internal Revenue Code precluded Sunoco, Inc.’s attempt to obtain a $300 million dollar “windfall” reduction in tax. The court also stated, “We have already established that Congress does not generally allow taxpayers to receive a tax benefit twice.”
Principal Deputy Assistant Attorney General Zuckerman thanked Tax Division attorneys Judith Hagley, Gilbert Rothenberg, and Richard Farber, who handled the case on appeal for the government.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Four Alleged Members of the Aryan Circle Gang Charged with Aggravated Assault in Aid of RacketeeringRead the Press Release
Four alleged members or associates of the Aryan Circle (AC) have been indicted and three arrested for their alleged roles in a Nov. 9, 2013 aggravated assault in Jefferson County, Missouri.
The indictments were announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Jeffrey B. Jensen of the Eastern District of Missouri.
Thomas B. Wilson, 43, of Villa Ridge, Missouri; Daniel B. Jerome, 31, of Wentzville, Missouri; Thomas Tisher, 34, of St Louis, Missouri; and Dustin M. Haney, 28, of Hermann, Missouri are charged in an indictment, returned by a federal grand jury on Oct. 31, and unsealed today, with aggravated assault in aid of racketeering. Daniel B. Jerome remains at large.
“These four defendants are alleged to have brutally assaulted their victim in order to establish or maintain their own status in the Aryan Circle gang,” said Assistant Attorney General Benczkowski. “Gangs like the Aryan Circle threaten the safety and security of all Americans, and the Criminal Division will target and aggressively prosecute any individual who commits acts of violence on behalf of a gang.”
According to the indictment, the AC is a powerful race-based, multi-state organization that operates inside and outside of state and federal prisons throughout the United States, and particularly in Missouri, Texas, Oklahoma and Louisiana. The AC was established in the mid-1980s within the Texas prison system (TDCJ). Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Missouri, Texas, and Louisiana. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT). The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.
The indictment further alleges that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and often, associates, are required to follow the orders of higher-ranking members without question.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by an Organized Crime Drug Enforcement Task Force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; FBI; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Montgomery County (TX) Precinct 1 Constable’s Office; Louisiana State Police; Indiana State Police; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office and the Tarrant County (TX) Sheriff’s Office.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Angie Danis of the Eastern District of Missouri, in cooperation with the U.S. Attorney’s Office of the Western District of Louisiana and the U.S. Attorney’s Office of the Eastern District of Texas.
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Etcher Family Farms, LLC, Owner, and Employee Plead Guilty to Clean Water Act ViolationsRead the Press Release
DAVENPORT, Iowa – Etcher Family Farms, LLC; owner Scott Allen Etcher; and Etcher Farms’ employee Benjamin Allen McFarland, pleaded guilty on October 25, 2018, to criminal violations of the Clean Water Act, announced United States Attorney Marc Krickbaum.
All Defendants pleaded guilty to a United States Attorney Information. Etcher Family Farms, LLC, pleaded guilty to knowing discharge of a pollutant from a point source into a water of the United States without a permit, in violation of Title 33, United States Code §§ 1311(a) and 1319(c)(2)(A). Scott Etcher and McFarland pleaded guilty to negligent discharge of a pollutant from a point source into a water of the United States without a permit, in violation of Title 33, United States Code §§ 1311(a) and 1319(c)(1)(A). This investigation was undertaken by the Environmental Protection Agency – Criminal Investigations as a result of information provided by the Iowa Department of Natural Resources (IDNR) and witnesses who observed the acts. The Information alleged that employees of Etcher Family Farms, LLC, illegally disposed of liquid manure into waters of the United States via a drainage tile system. The investigation revealed that employees of Etcher Farms discharged liquid manure via a hose attached to a lawn tractor next to and upon tile intakes, which discharged directly into an adjacent creek (waters of the United States). IDNR documented the illegal acts and collected samples to verify such impact to jurisdictional waters.
“When illegally discharged into streams and rivers, animal wastes can result in environmental and human health risks, such as water quality impairment, fish kills, algal blooms, and contamination of drinking water sources,” said EPA Special Agent in Charge Jeffrey Martinez. “The guilty pleas demonstrate that EPA and our law enforcement partners will hold accountable those who violate laws designed to protect the environment and our communities.”
“The plea agreement requires Etcher Family Farms, LLC, to institute a robust program to ensure they comply with federal law,” stated U.S. Attorney Krickbaum. “Our office will continue to aggressively enforce these important environmental laws to protect our waterways from pollution.”
Etcher Family Farms, LLC, Scott Etcher, and McFarland are scheduled to be sentenced by United States District Court Judge Stephanie M. Rose on February 26, 2019, at 1 p.m.
This matter was investigated by the EPA-Criminal Investigation and the IDNR. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Election Officers Designated in Central District of IllinoisRead the Press Release
SPRINGFIELD, Ill. – U.S. Attorney John C. Milhiser announced today the appointment of District Election Officers in the Central District of Illinois in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. Assistant U.S. Attorneys appointed to serve as election officers in each of the district’s four divisions include: Gregory M. Gilmore in the Springfield headquarters office; David H. Hoff in the Urbana branch office; Darilynn J. Knauss in Peoria; and, John K. Mehochko in Rock Island. District election officers are responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters.
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.
To respond to complaints of election fraud or voting rights abuses on Nov. 6, 2018, and to ensure such complaints are directed to the appropriate authorities, designated election officers will be available in each of the district’s four offices on Nov. 6, while the polls are open. Election officers may be reached by the public at the following telephone numbers:
Springfield: Assistant U.S. Attorney Gregory M. Gilmore, 217-492-4450;
Urbana: Assistant U.S. Attorney David H. Hoff, 217-373-5875;
Peoria: Assistant U.S. Attorney Darilynn J. Knauss, 309-671-7050; and,
Rock Island: Assistant U.S. Attorney John K. Mehochko, 309-793-5884.
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 local FBI office in the Central District of Illinois can be reached by the public at 217-522-9675.
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.
Election Fraud and Voting Rights Abuse Hotlines EstablishedRead the Press Release
PROVIDENCE - United States Attorney Stephen G. Dambruch announced today that Assistant United States Attorney (AUSA) Terrence P. Donnelly will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Donnelly has been appointed to serve as the District Election Officer (DEO) for the District of Rhode Island, and in that capacity 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.
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, United States Attorney Dambruch stated that AUSA/DEO Donnelly will be on duty in this District while the polls are open. AUSA Donnelly can be reached by the public at (401) 709-5068.
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 local FBI field office can be reached by the public at (401) 272-8310.
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
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Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Miguel Guillen Percel, 43, a Dominican national formerly residing in Boston and New York, was sentenced by U.S. District Court Judge William G. Young to 21 months in prison and three years of supervised release. Percel will be subject to deportation proceedings upon completion of his sentence. In March 2018, Percel pleaded guilty to one count of unlawful reentry of a deported alien.
In 2002, Percel was convicted in federal court in Rhode Island of cocaine distribution and sentenced to 121 months in prison. After completing his sentence, Percel was deported to the Dominican Republic in October 2009.
In July 2017, Percel was arrested in Massachusetts for various motor vehicle infractions. Percel posted bail and was later released.
In November 2017, Percel was arrested in New York City and charged in state court with drug distribution. While in New York City, he was subsequently arrested on a federal arrest warrant having been charged in federal court in Boston with illegal reentry of a deported alien.
United States Attorney Andrew E. Lelling; Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican Citizen Pleads Guilty to Aggravated Identity TheftRead the Press Release
CONCORD - Grency Junior Nunez Barrera, 32, a citizen of the Dominican Republic residing in Lawrence, Massachusetts, pleaded guilty in federal court on Tuesday to aggravated identity theft, social security fraud, and making false statements, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, Nunez Barrera illegally entered the United States in 2009 and obtained identification documents of an American citizen from Puerto Rico, including a forged birth certificate and social security card. From 2009 through 2018, Nunez Barrera assumed that person’s identity. During that time, among other things, Nunez Barrera worked and was charged with other crimes using the victim’s identity. In 2010, Nunez Barrera used the victim’s identity to obtain a New Hampshire driver’s license. He later used the victim’s information to obtain a social security number.
In 2015, Nunez Barrera was arrested while using the victim’s identity to renew the New Hampshire driver’s license he obtained in 2010. In February 2018, Nunez Barrera again traveled to the Division of Motor Vehicles in Concord, New Hampshire and applied for a replacement driver’s license using the victim’s name, date of birth, and social security number. The DMV flagged the application and Nunez Barrera was subsequently arrested. Upon his arrest for federal charges, Nunez Barrera again falsely identified himself as the victim to the U.S. Marshals and, as proof, provided the victim’s social security number.
Nunez Barrera is scheduled to be sentenced on February 11, 2019. He faces possible deportation to the Dominican Republic following the completion of his sentence.
“Identity theft is a serious crime that can cause substantial harm to its victims,” said U.S. Attorney Murray. “It can often be very challenging for victims of identity theft and clear up financial or criminal issues that result from this crime. We will continue to work with our law enforcement partners to identify and prosecute those who commit identity theft or obtain false identification documents.”
Scott Antolik, Special Agent-in-Charge of the Boston Field Division for the Social Security Administration’s Office of the Inspector General said, “Nunez Barrera misused the social security number of an innocent person and caused that individual considerable damage. I thank the New Hampshire State Police and the U.S. Immigration and Custom Enforcement, Manchester, NH Office for their assistance in bringing Barrera to justice and keeping our communities safe. For more information, check out the OIG’s Identity Theft page. The Department of Justice estimates 17 million people each year become victims of identity theft. We hope you aren’t one of them, but if you are, this information should help.”
This matter was investigated by the Social Security Administration Office of the Inspector General, the New Hampshire State Police, and U.S. Immigration and Custom Enforcement. The case is being prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter.
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Dog-Fighter Damiane Buehrer Gets 46 Months in Federal PrisonRead the Press Release
Buehrer, A West Michigan Resident, Continued to Participate in Underground Pit Bull Terrier Fighting Even After Serving State Prison Time for Dog-Fighting Offense
GRAND RAPIDS, MICHIGAN - Damiane Buehrer, 40, of Jonesville, Michigan, was sentenced yesterday to serve 46 months in the Federal Bureau of Prisons for participating in a dog-fighting conspiracy between November 2016 and December 2017. The Justice Department’s Environment and Natural Resources Division and U.S. Attorney Andrew B. Birge of the Western District of Michigan made the announcement.
Buehrer and four co-defendants were indicted on April 18, 2018, for conspiracy and for unlawfully possessing animals to use in dog fighting, along with equipment to train and condition them for fighting. The remaining co-defendants, including Charles Joseph Miller, Kian Maliak Miller, Charles Deon Davis, Jr., and Jarvis Jason-Roy Askew, have pled guilty and are awaiting sentencing. Buehrer was convicted in State court in 2010, under Michigan’s animal-fighting statute.
Between November 14, 2016, and December 7, 2017, as part of the conspiracy, Buehrer—who had just been released from the Michigan Department of Corrections in August 2015 after serving a five-year-sentence for the same activity—acquired and possessed four dogs for the purposes of breeding, training, conditioning, and developing them to fight other dogs for prize money in underground and illegal contests that routinely result in dogs being wounded, maimed, and killed. Buehrer’s dogs, along with 33 other dogs owned by his co-conspirators, were rescued by Federal and state law-enforcement agencies as part of the investigation. Buehrer also possessed medical equipment used to treat dogs that were wounded during such fights, as well as equipment for training the dogs, including treadmills, weighted chains, "break sticks," and a "jenny mill" apparatus that forces dogs to run for extended periods of time to build fighting endurance. The co-defendants regularly exchanged interstate electronic communications for the purpose of sharing information about training and conditioning dogs for fighting, breeding fighting dogs, contracting for and sponsoring dog fights, collecting forfeited funds when a contracted dog fight resulted in a forfeit, and sharing results of dog fights.
In imposing the sentence, U.S. District Judge Paul Maloney characterized dog fighting as "disgusting," and observed that "the depravity of training animals to fight is difficult to understand, to say the least."
"Damiane Buehrer and his codefendants participated in a sick and brutal underground activity that, because of its interstate and international nature, is subject to Federal criminal jurisdiction" stated U.S. Attorney Birge. "Because of the uniquely barbarous and cruel nature of this activity, my Office, along with the rest of the West Michigan law-enforcement community, is committed to investigating, punishing and deterring criminals like Buehrer and his coconspirators."
USDA-OIG Special Agent-in-Charge, Anthony Mohatt added, "The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling. Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures."
"Today’s sentence sends a message that there are serious consequences for participating in violent, organized criminal activity," said Special Agent in Charge Timothy R. Slater, Detroit Division of the FBI. "The FBI will continue to work alongside our federal, state and local partners to bring to justice those who engage in this type of behavior for the sake of entertainment and illegal gambling."
"The Michigan State Police (MSP) appreciates the strong working relationships with its federal law enforcement partners in bringing criminals to justice" stated First District Public Information Officer, Lt. Darren Green. "In regards to MSP personnel involved in this particular investigation, D./Sgt. Cyndee Gochanour worked tirelessly on this case. Her strong work ethic and dedication were instrumental in bringing this case to its conclusion."
The United States is represented by Assistant U.S. Attorneys Kate Zell and Hagen W. Frank, and Senior Trial Attorney Jennifer Blackwell of the Justice Department’s Environmental Crimes Section. The case was investigated by the U.S. Department of Agriculture—Office of Inspector General, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, and Firearms, the Michigan State Police, and the Ingham County Animal Control Office. The ASPCA assisted with the care and rehabilitation of the dogs rescued by federal law enforcement.
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District Election Officer on Duty for November 2018 ElectionsRead the Press Release
Harrisburg - United States Attorney David J. Freed announced today that Assistant United States Attorney (AUSA) Eric Pfisterer will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Pfisterer has been appointed to serve as the District Election Officer (DEO) for the Middle District of Pennsylvania, and in that capacity 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.
United States Attorney Freed said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice 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, United States Attorney Freed stated that AUSA/DEO Pfisterer will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 717-221-4482.
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 local FBI field office can be reached by the public at 215-418-4000.
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.
United States Attorney Freed said, “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 my Office, the FBI, or the Civil Rights Division.”
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Department of Justice Announces New Active Shooter Training Grant for First RespondersRead the Press Release
Principal Deputy Associate Attorney General Jesse Panuccio, Director Phil Keith of the Department of Justice’s Office of Community Oriented Policing Services (COPS Office), and Dr. Pete Blair, Executive Director of the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University today announced an $8.7 million grant to provide multi-disciplinary, scenario-based active shooter training to first responders across the country.
Today’s announcement took place during the ALERRT Active Shooter Integrated Response Conference, where emergency personnel heard from subject matter experts on best practices and lessons learned from some of the nation’s most tragic and horrific mass casualty events. ALERRT is part of Texas State University, which has trained approximately 130,000 first responders since its inception in 2002.
“Training for first responders to take swift and effective action in active shooting situations is critically important,” said Principal Deputy Associate Attorney General Jesse Panuccio. “We can mitigate the loss of life in these horrific incidents by providing resources to better equip first responders and prepare community members, local law enforcement, and local government leaders. The Department of Justice fully supports the brave first responders who risk their own lives to protect the safety of our children, colleagues, and community members.”
“The funding announced here today comes at a critical time for our country,” said COPS Office Director Keith. “As the demands placed on our nation’s first responders continue to grow with these violent mass casualty incidents, I believe it is our responsibility to make sure they have the tools, resources and training to properly respond to these attacks.”
“This COPS funding will allow ALERRT to provide the training needed to prepare police, fire, and EMS services across the country to save as many lives as possible when these horrific attacks occur,” said Dr. Pete Blair, Executive Director of the ALERRT Center at Texas State University.
Physician stakeholders working in the fields of emergency medicine, trauma surgery, anesthesia, blood bank, critical care and blood collection center directors will join law enforcement, fire services, EMS, emergency communications and emergency management for the first time during this year’s ALERRT conference. ALERRT’s multi-disciplinary approach is recognized as one of the nation’s leading training models, and the Department of Justice is pleased to announce additional funding for this effort.
The 2018 investment from the Department of Justice for ALERRT will provide in-person training to an estimated 15,000 first responders, in addition to the 9,000 individuals that received the training in 2017. ALERRT and the COPS Office are currently developing an online civilian training program, which will reach tens of thousands of citizens – helping to prepare them to take effective actions if they should find themselves in an attack.
The ALERRT Center at Texas State University was created as a partnership between Texas State University, the San Marcos (TX) Police Department, and the Hays County (TX) Sheriff’s Office to address the need for active shooter response training for first responders. In 2013, ALERRT was named the National Standard in Active Shooter Response Training by the FBI.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
Department of Justice and United States Attorney’s Office to Oversee November 2018 ElectionsRead the Press Release
KNOXVILLE, Tenn. – U.S. Attorney J. Douglas Overbey announced today that Assistant U.S. Attorney (AUSA) Perry Piper will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections. AUSA Piper has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Tennessee, and in that capacity 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.
“Every United States citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said U.S. Attorney Overbey. “Aggressive and prompt action will be taken by the Department of Justice 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 make their own ballot or to be assisted by a person of their choice.
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 8, 2018, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Overbey stated that AUSA/DEO Piper will be on duty in this district while the polls are open. He can be reached by the public at 423-385-1332.
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 local FBI field office can be reached by the public at 865-544-0751.
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.
U.S. Attorney Overbey added, “To ensure free and fair elections it is imperative that those who have specific information about discrimination or election fraud make that information available immediately to the U.S. Attorney’s office, FBI, or Department of Justice Civil Rights Division.”
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Defendant Sentenced to 51 Months’ Imprisonment for Defrauding Elderly Victims in Lottery and Sweepstakes ScamsRead the Press Release
Earlier today, in federal court in Brooklyn, Lorindo Powell was sentenced by United States District Judge Margo K. Brodie to 51 months’ imprisonment and ordered to pay $770,632.50 in restitution following Powell’s guilty plea to one count of conspiracy to commit wire and bank fraud and one count of access device fraud for her schemes to defraud elderly victims over the course of more than a decade. In total, Powell stole at least $770,632.50 from her victims. Powell pleaded guilty to the charges in May 2018. A co-defendant, Tavoy Malcolm, pleaded guilty in August 2017 and is awaiting sentencing.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, announced the sentence.
“Powell has now been held to account for targeting vulnerable victims, gaining their trust and stealing their savings,” stated United States Attorney Donoghue. “Elder fraud enforcement is a Department of Justice priority, and this Office will continue to investigate and prosecute criminals who prey on senior citizens.”
“Powell’s actions were shameful as she preyed on the susceptibilities of the elderly, including a couple with dementia and another who was left homeless,” stated HSI Special Agent-in-Charge Melendez. “Elder fraud is of serious concern and law enforcement will continue to investigate, arrest and prosecute those who choose to take advantage of our aging population rather than take care of them.”
In 2009, Powell contacted Jane Doe #1, a 79-year-old teacher in Brooklyn, with a purported opportunity to claim lottery winnings. Powell induced Jane Doe #1 to skip her mortgage payments and make payments to her instead. Powell also persuaded Jane Doe #1 to cash and hand over her paychecks for years. As a result, Jane Doe #1 was evicted from her home in 2011. Powell took control of Jane Doe #1’s retirement account, changing the email address to Powell’s own and impersonating Jane Doe #1 in order to make withdrawals. Jane Doe #1 lost at least $589,000 as a result of Powell’s actions.
Beginning in 2011, Powell induced Jane Doe #3 and her husband, a Maryland couple suffering from dementia, to wire money to Powell and others, purportedly to claim lottery winnings. In total, the two victims lost at least $119,476.50.
In October 2016, Powell defrauded John Doe #1, an 89-year-old man living in Florida, of approximately $23,000 after contacting him about purported sweepstakes winnings.
In between December 2016 and April 2017, Powell obtained Jane Doe #2’s personal identification information by posing as a bank representative and stole over $38,000 by making withdrawals from her checking account and charging purchases to her credit card. At the time, Jane Doe #2, a woman in her 90s, was residing in a New Jersey retirement home.
The government’s case is being prosecuted by Assistant United States Attorney Alexander Mindlin.
The Defendant:
LORINDO POWELL
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-311 (MKB)
Court Appoints Receivers to Inventory and Distribute Client Files of Lawyer Involved in Largest Social Security Fraud Scheme in HistoryRead the Press Release
Former fugitive and social security disability lawyer Eric Christopher Conn, 58, of Pikeville, Kentucky, was sentenced in September to a total of 27 years in prison for his role in retaliating against an informant, fleeing from the United States, and defrauding the U.S. Social Security Administration (SSA) of more than $550 million. When he went to prison, however, approximately 6,000 to 7,000 client files relating to claims for social security benefits remained in his former Kentucky law office. The building and land was forfeited to the United States and will be sold. Before the building can be sold, the client files had to be removed and ultimately distributed to his former clients – a daunting task made even more difficult by the fact that they are attorney-client privileged materials.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director Timothy Virtue of the U.S. Marshals Service’s Asset Forfeiture Division announced today that two Receivers were selected by Judge Danny C. Reeves of the Eastern District of Kentucky on Oct. 12, and that the Receivers have now successfully removed the files from the law office property to begin their inventory and distribution. The files were located in the property that formerly housed Conn’s law practice at 9420 US Highway 23 South, Stanville, Kentucky.
Judge Reeves appointed veteran attorneys Cary B. Howard and Barry Stilz, of the law firm Kinkead & Stilz, in Lexington, Kentucky, as the Court’s Receivers after the Kentucky State Bar refused to take on the project. The Court directed the Receivers to collect, inventory, and to the extent possible, distribute the files to Conn’s former clients.
Former clients of Eric Conn, or their counsel, should contact the Receivers if they wish to obtain their files. The Receivers can be contacted at (859) 226-7580, or by e-mail at [email protected]
The case was investigated by the SSA Office of Inspector General, FBI, IRS Criminal Investigation and U.S. Department of Health and Human Services, Office of Inspector General. Deputy Chief Darrin L. McCullough and Trial Attorney Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section are handling the forfeiture portion of the case, with previous forfeiture co-counsel including Assistant U.S. Attorneys Ann Marie Blaylock of the Western District of Kentucky, Elizabeth G. Wright of the District of Maryland, and Trey Alford of the Western District of Missouri, as well as Investigative Counsel Kristen M. Warden of the U.S. Department of Justice Office of the Inspector General. Lead counsel on the criminal case was Trial Attorney Dustin M. Davis of the Department of Justice’s Fraud Section
Columbia, Kentucky Man Sentenced to 30 Years for Arson and Insurance FraudRead the Press Release
BOWLING GREEN, Ky. – A Columbia, Kentucky man was sentenced today in United States District Court by Judge Greg Stivers to 360 months of imprisonment on charges of arson and insurance fraud. Steve Allen “Boo” Pritchard, 44, started a fire that completely destroyed his rental home to collect on a recently purchased $50,000 rental insurance policy. Columbia/Adair County Fire Department Assistant Chief Charles Sparks died fighting the fire.
“While this 30 year sentence does not return a devoted public servant, friend, and family member to the Adair County community, it should give crystal clear notice to those who would engage in arson for profit that the United States Attorney’s Office will seek significant punishment for such conduct,” stated U.S. Attorney Russell M. Coleman.
Brandi Pritchard, Steve Pritchard’s co-defendant and then girlfriend, purchased a $50,000 renter’s insurance policy on June 24, 2011. Shortly thereafter Steve Pritchard, of Columbia, Kentucky, hatched a plan to set fire to their Columbia rental home, and the fire was set during the early morning hours of June 30, 2011. The Columbia/Adair County Fire Department arrived on scene at approximately 3:12 a.m. Assistant Chief Charles Sparks suffered cardiac arrest while fighting the fire on the second floor of the home. He was rushed to the hospital but never regained consciousness and died eight days later, on July 8, 2011, at the age of 49. In addition to his volunteer fire fighting, Sparks was also a longtime Kentucky State Fire Marshall. Mr. Sparks was survived by both of his parents, his wife, and his son.
At his July 2018 trial, Pritchard provided an alibi that he was in Louisville delivering glass for his employer during the fire. However, his alibi was disproved by cell phone location data obtained by the FBI. Several witnesses also testified that Pritchard had bragged about starting the fire to collect on the insurance policy. It was also established at trial that Pritchard was involved in setting four previous fires to collect insurance proceeds, including two other residences and two cars. The jury found Pritchard guilty as charged after a four day trial.
At Pritchard’s sentencing, Sparks’ mother, Mrs. Helen Sparks, told Judge Stivers, “Our lives have never been the same since the early hours of June 30, 2011.” Judge Stivers called Pritchard’s crime a “dastardly and depraved act” before imposing Pritchard’s 30-year term of imprisonment.
Pritchard’s co-defendant, Brandi Pritchard, who remains free on bond, has already pled guilty to arson and wire fraud and will be sentenced by Judge Stivers in Bowling Green on November 13, 2018.
This case was prosecuted by Assistant United States Attorneys David Weiser and Nute Bonner and was investigated by the Federal Bureau of Investigation and the Kentucky State Police.
Cleveland man sentenced to more than six years in prison for illegally having ammunition stemming from shootout that left two people deadRead the Press Release
A Cleveland man was sentenced to more than six years in prison for illegally having ammunition stemming from a shootout last year in which two people were killed.
Jesus Bey, 25, was sentenced to 78 months in prison. A jury convicted Bey earlier this year of being a felon in possession of ammunition following a weeklong trial.
Bey possessed 12 rounds of .40 caliber ammunition on Jan. 25, 2017, despite prior convictions that made it illegal for him to have ammunition, including felonious assault with a firearm specification, having weapon under disability and attempted felonious assault, according to court documents.
“This defendant has demonstrated that he walks around our streets carrying guns and ammunition the way a painter carries a ladder or a doctor carries a stethoscope. They are the tools of his trade,” said U.S. Attorney Justin Herdman. “People who prey on others will be sent to prison and this case is an example of that.”
According to trial exhibits and testimony:
Bey was outside Harvard Wine and Grill on Jan. 25, 2017, when a shootout began at the intersection of East 142nd Street and Harvard Avenue. When the shootout was over, two men (one wearing a ski mask) were dead and at least 60 shell casings were recovered at the scene.
Bey was previously sentenced to prison for a 2013 shooting in a bar in Cleveland Heights, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Scott Zarzycki following an investigation by the Cleveland Division of Police’s Gang Impact Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Cuyahoga County Prosecutor’s Office.
CUNY Medgar Evers College Lecturer Sentenced for Selling Fake College CertificatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MAMDOUH ABDEL-SAYED, a former full-time lecturer at the City University of New York’s Medgar Evers College (“Medgar Evers College” or the “College”), was sentenced to six months in prison for selling sham Medgar Evers College certificates that purported to represent the completion of health care courses at the College. ABDEL-SAYED pled guilty on May 30, 2018, before U.S. District Judge Vernon S. Broderick, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Mamdouh Abdel-Sayed put his greed before the public’s health when he provided fake healthcare program certificates to students – certificates that allowed people with little to no relevant education to work in the healthcare field. Thankfully Abdel-Sayed’s money-making scheme was discovered and he will serve time in federal prison for his misdeeds.”
According to the allegations contained in the Complaint, the Indictment, and statements made in court and publicly available documents:
MAMDOUH ABDEL-SAYED was a full-time lecturer in the Biology Department at Medgar Evers College. From at least 2013 through 2017, without authorization from Medgar Evers College, ABDEL-SAYED purported to teach health care courses at the College on topics such as Electrocardiograms, Phlebotomy, and Sonography, and provided students with sham certificates of completion for the courses, in exchange for which ABDEL-SAYED charged fees of up to $1,000 per certificate, which money he kept for himself. ABDEL-SAYED attempted to avoid scrutiny from the College’s security guards in conducting the unauthorized courses.
In addition to charging fees for the unauthorized courses and sham certificates, ABDEL-SAYED encouraged students to use the certificates in obtaining employment in the health care field, including at New York City-area hospitals. When asked by employment agencies to verify the authenticity of the certificates, ABDEL-SAYED falsely informed the agencies that the certificates were issued by Medgar Evers College. In fact, ABDEL-SAYED created the sham certificates himself, and provided them to students even if the students did not attend his unauthorized courses, so long as the students paid ABDEL-SAYED for the certificates. In addition, ABDEL-SAYED distributed copies of purported national certification examinations – which he informed students on a recorded conversation it was “illegal” for them to possess – in order to assist the students in passing licensing examinations supposedly administered by the State for certain medical techniques.
After ABDEL-SAYED became aware of the investigation, he instructed an undercover law enforcement investigator, who had posed as a student and purchased several unauthorized certificates from him, to provide false information to federal law enforcement agents and to conceal those certificates from the agents. ABDEL-SAYED has been on administrative leave from the College since his arrest.
* * *
In addition to the prison term, ABDEL-SAYED, 69, of Kearny, New Jersey, was sentenced to six months of home confinement, two years of supervised release, and ordered to pay $20,000 in restitution and $20,000 forfeiture.
Mr. Berman praised the investigative work of the New York State Inspector General’s Office and the U.S. Department of Education - Office of Inspector General.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
Buffalo Man Sentenced for His Role in Cross Country Drug ConspiracyRead 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 Jabriel Crews, 35, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, 500 grams or more of cocaine, was sentenced to 96 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between January 2014 and June 1, 2016, the defendant purchased multi-kilo quantities of cocaine from a source in Houston, Texas. Co-defendant Mark Ramos, an associate of the Houston source-of-supply, would mail the cocaine to addresses in Buffalo provided by Crews. The defendant would then receive those parcels and process and repackage the cocaine for distribution. In exchange, Crews would make payment to his source in Texas using some combination of a courier and U.S. mail parcels mailed to P.O. boxes set up in the Houston, Texas area.
On June 1, 2016, a search warrant was executed at 236 Katherine Street. Law enforcement officers recovered a scale with powder residue, packaging materials including bags and a vacuum sealer, identification cards, and one live bullet.
Mark Ramos was previously convicted and sentenced on federal charges. Charles Gonzalez was charged and convicted in state court.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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Brothers Operating Import/Export Business Plead Guilty to International Drug TraffickingRead the Press Release
For Further Information, Contact: Assistant U. S. Attorney Benjamin Katz (619) 546-9604
SAN DIEGO –Nathan Dulley and Andrew Dulley, brothers from Los Angeles, California, pleaded guilty today for their role in trafficking drugs for former USC football player Owen Hanson’s “ODOG” Enterprise, an international drug trafficking, money laundering and illegal gambling syndicate that operated in the United States, Central and South America, and Australia from 2012 to 2016.
According to court records, the ODOG Enterprise trafficked thousands of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), and other drugs, routinely distributing controlled substances at wholesale and retail levels around the world. The Dulley brothers, who imported and exported fine chocolate, played an integral role in the ODOG Enterprise by shipping large quantities of cocaine from the United States to Australia. Upon receipt of cocaine from Hanson or his associates – usually in quantities of tens of kilograms or more – the Dulleys would intermix and package the cocaine with legitimate merchandise, so as to disguise the true contents from the shipper and customs authorities. Using their established import/export routes, the Dulleys would then send the cocaine to Australia, where it was distributed and sold by other members of the ODOG Enterprise.
“Transnational racketeering organizations represent a clear and present danger to the safety and security of our communities. Those who assist such criminal enterprises by allowing the corruption of their otherwise legitimate businesses will be held accountable for the harm wrought on our communities,” said U.S. Attorney Adam Braverman.
So far, all 22 other defendants charged in connection with this case have pleaded guilty, including:
- Owen Hanson, the founder of the ODOG Enterprise. Hanson was sentenced to more than 21 years in prison and ordered to pay a criminal forfeiture in the amount of $5,000,000, including $100,000 in gold and silver coins, a Porsche Panamera, two Range Rovers, luxury watches, homes in Costa Rica, Peru, and Cabo San Lucas, a sailboat, and interests in several businesses.
- Giovanni (“Tank”) Brandolino, Hanson’s second in command. Brandolino was sentenced in February 2018 to 87 months in prison, followed by three years of supervised release.
- Luke Fairfield, a San Diego based Certified Public Accountant who assisted Hanson with laundering the proceeds of his various illegal endeavors by setting up shell corporations and advising members of the Enterprise on how to structure bank transactions to avoid law enforcement. On October 2, 2018, Fairfield was sentenced to 21 months in prison.
- Derek Loville, a former professional football player, who pleaded guilty to distributing retail quantities of drugs for the ODOG Enterprise in Arizona. In July 2017, Loville was sentenced to 15 months in prison and a $5,000 fine.
- Daniel Portley-Hanks, a Los Angeles-based private investigator who assisted Hanson with tracking down delinquent gamblers and other individuals who owed the enterprise money. Portley-Hanks pleaded guilty and was sentenced to 16 months in prison.
- Jack Rissell, an “enforcer” who, in one instance, travelled from Southern California to Minneapolis to attack a delinquent gambler in front of his family was sentenced to 24 months in prison.
Sentencing for both Nathan Dulley and Andrew Dulley is set for January 22, 2019, before District Judge William Q. Hayes.
The case arose out of a joint investigation by FBI, DEA, and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Assistant U.S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case.
DEFENDANT Case Number: 18CR4207-WQH
Nathan Dulley Age: 36
Andrew Dulley Age: 34
SUMMARY OF CHARGES
Count 1
Conspiracy to Distribute Cocaine, 21 U.S.C. § 846, 841(a)(1)
Maximum penalty: 20 years’ prison, $1,000,000 fine, lifetime of supervised release.
AGENCY
Federal Bureau of Investigation – San Diego Field Office
U.S. Drug Enforcement Agency
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
Bernalillo County Man Sentenced to Prison for Federal Fraud, Identity Theft and Theft of Mail ConvictionRead the Press Release
ALBUQUERQUE – Jesse Tucker, 36, of Tijeras, N.M., was sentenced today in federal court in Albuquerque, N.M., to 48 months in prison for his conviction on fraud, identity theft, and theft of mail charges. Tucker will be on supervised release for two years after completing his prison sentence. Tucker also was ordered to pay $42,600.42 in restitution to the victims of his crimes.
Tucker was charged in an indictment filed on Feb. 14, 2018, with eight counts of bank fraud, six counts of aggravated identity theft, and one count of theft or receipt of stolen mail. The bank fraud counts alleged that between Nov. 2016 and May 2017, Tucker fraudulently obtained almost $70,000 through a scheme to defraud that involved the use of stolen personal identifiers, checks, and other financial instruments obtained from stolen mail. The aggravated identity theft counts alleged that Tucker used the identities of others without lawful authority between Nov. 2016 and May 2017, and the theft or receipt of stolen mail count alleged that in June 2017, Tucker unlawfully possessed stolen mail, including checks and financial instruments, taken from a U.S. Postal depository in June 2017. The indictment charged Tucker with committing these crimes in Bernalillo and Valencia Counties, N.M.
On June 20, 2018, Tucker pled guilty to the eight bank fraud charges, two of the aggravated identity theft charges, and the theft or receipt of stolen mail charge. In entering the guilty plea, Tucker admitted that between Nov. 2016 and May 2017, he used the personal identifiers of nine individuals, which he obtained from stolen mail, to create and obtain counterfeit identification cards and drivers’ licenses that but bore his photograph. Tucker then used the fraudulent identification cards and licenses to falsify checks, complete credit applications, and apply for loans from financial institutions. Tucker also admitted using the personal identifiers of others in his efforts fraudulently to obtain loans while knowing that they belonged to real people. Tucker also acknowledged that on June 6, 2017, law enforcement found a large volume of stolen mail belonging to other individuals in his residence.
The U.S. Postal Inspection Service investigated this case and it was prosecuted by Assistant U.S. Attorney Holland S. Kastrin.
2-Month Operation Nets 36 Defendants, Takes 40 Guns Off N. Alabama StreetsRead the Press Release
BIRMINGHAM – A 2-month operation focused on reducing violent crime in Tuscaloosa resulted in federal charges against 36 defendants, with 40 guns seized, announced U.S. Attorney Jay E. Town, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson, Tuscaloosa Police Chief Steven Anderson, Tuscaloosa County Sheriff Ron Abernathy and Tuscaloosa District Attorney Hays Webb.
The U.S. Attorney’s Office and ATF joined with local law enforcement in Tuscaloosa County, Alabama Attorney General’s Office, Alabama Law Enforcement Agency, University of Alabama Police Department, Northport Police Department, 17th Judicial Drug Task Force, and the West Alabama Narcotics Task Force in an intense effort in September and October to charge violent offenders and take guns off the streets.
“These indictments represent the hard work of our federal, state and local law enforcement partners and our continued efforts to work together to remove these criminals from our streets with severe punishment, and return our communities back to their rightful owners…the law abiding citizens,” Town said. “We have bed space in federal prison for these folks and we will fill it.”
“These arrests represent use of ATF’s Crime Gun Intelligence partnership with law enforcement and the community to ultimately disrupt the shooting cycle that negatively impact Tuscaloosa County,” Watson said. “The arrests are part of Operation Focused Remedy which leverages technology and partnerships statewide to provide a safe environment to our neighborhoods.”
“The Tuscaloosa Police Department is extremely delighted to have the assistance of the ATF in removing dangerous criminals, who commit gun crimes, from our City,” Anderson said. “We are grateful for their assistance in reducing gun violence and making Tuscaloosa a safer place.”
“This is a great example of federal and local agencies working together here in Tuscaloosa,” Abernathy said.
The majority of the 36 defendants facing current gun charges have at least 3 prior felony convictions. The total number of prior convictions tops 122. Among these arrests for violent offenses, include charges such as domestic violence, assault and attempted murder, rape and sodomy. Of the 36, there are 2 individuals that have 11 felony convictions each and 1 individual that has 10 felony convictions. Among the 40 firearms seized, 12 were identified as stolen, according to the ATF.
These cases are part of Project Safe Neighborhoods, 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.
31 October 2018
Windsor Locks Woman Sentenced to 30 Months in Federal Prison for Trafficking Heroin and Prescription PillsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTY MILES, 34, of Windsor Locks, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing heroin and various prescription medications.
According to court documents and statements made in court, in 2016, members of the North Central Narcotics Task Force and the Drug Enforcement Administration began investigating Christy Miles’ mother, Christine Miles, for distributing prescription narcotics and other controlled substances. Miles is a retired nurse. The investigation revealed that Christy Miles was assisting her mother’s drug trafficking enterprise.
On March 30, 2016, investigators conducted a controlled purchase of five bags of heroin and six Vicodin tablets from Christy Miles at Christine Miles’ home at 350 North Street in Windsor Locks. Investigators subsequently made two controlled purchases of prescription drugs from Christine Miles at her residence.
On August 4, 2016, investigators conducted a court-authorized search of 350 North Street and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. Christine Miles and her husband, Oscar Montoya, were arrested on state charges after the search.
Christy Miles, Christine Miles and Montoya were arrested on federal charges on November 16, 2017, and have been detained since their arrests. On February 2, 2018, another court-authorized search of the North Street residence revealed additional drug evidence and $41,904 in cash.
On May 22, 2018, Christy Miles pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam.
On May 15, 2018, Christine Miles pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000. On October 1, 2018, she was sentenced to 60 months of imprisonment.
Montoya pleaded guilty to the same charges and, on September 4, 2018, was sentenced to 36 months of imprisonment.
As part of this case, Christine Miles and Montoya agreed to forfeit their Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
This matter was investigated by the Drug Enforcement Administration’s Hartford Resident Office and the U.S. Marshals Service, with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor and Manchester Police Departments. The case was prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Wilmington Man Sentenced for Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, ANTHONY TYRONE GREENE, 34, of Wilmington, was sentenced by United States Senior District Judge W. Earl Britt for possession of a firearm by felon. Judge Britt sentenced GREENE to 78 months imprisonment followed by 3 years of supervised release.
GREENE was charged in a one-count indictment on February 15, 2018, and pleaded guilty on April 30, 2018.
One June 10, 2017, a female employee of GoGas in Wilmington, North Carolina, had just locked up the gas station and was walking towards her vehicle. GREENE approached her, pointed a gun in her face, and demanded her purse. After she handed over her purse and bag, GREENE pushed her to the ground and fled.
Shortly after the robbery, the Wilmington Police Department used a phone application to locate the victim’s stolen iPhone. Officers traced the phone to an apartment where GREENE lived. After searching the residence, officers found the victim’s iPhone, wallet, identification, and other personal effects. They also recovered a stolen, loaded 9mm Taurus handgun.
In 2008 GREENE pleaded guilty to accessory after the fact to first-degree murder in the slaying of Lynn Rubei in Wilmington.
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, locally-based strategies to reduce violent crime.
The investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Erin Blondel handled the prosecution of this case for the government.
Waterbury Man Admits Committing Multiple Violent Armed RobberiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JEFFREY STOKARSKI, 44, of Waterbury, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to federal robbery and firearm charges stemming from a violent armed robbery spree in Connecticut in late 2017 and early 2018.
According to court documents and statements made in court:
On December 27, 2017, Stokarski entered the Henny Penny located at 273 Meriden Waterbury Turnpike in Southington, pushed the sales clerk into the counter and verbally instructed her not to touch or say anything. Stokarski opened the cash register with a screwdriver and stole approximately $289 in cash.
Also on December 27, Stokarski approached a vehicle in the parking lot of the Country Cloverleaf Shell at 237 Route 81 in Killingworth, opened the driver’s door and punched the driver repeatedly in the face while demanding the driver’s wallet. During the robbery, Stokarski took from the driver an electronic cigarette worth approximately $110, a cell phone worth approximately $50, and the driver’s wallet containing approximately $90 in cash and gift cards.
Also on December 27, Stokarski entered the Krauszer’s Food Store located at 459 Madison Road in Durham, placed the store clerk in a headlock, pulled out a knife and placed it on the clerk’s back, dragged the clerk over to the register and then stole approximately $3,264 in cash and store items.
On December 31, 2017, Stokarski again entered the Henny Penny located at 273 Meriden Waterbury Turnpike in Southington, and demanded cash from the register. The clerk complied and gave Stokarski approximately $161 in cash from the register.
On January 1, 2018, Stokarski entered the Citgo Gas Station at 199 West Street in Litchfield, grabbed the clerk, pulled out a knife and placed the knife across the clerk’s neck area while demanding that the clerk give up all the money. The clerk complied and provided Stokarski with approximately $2,084 in cash. Stokarski also stole several store items worth approximately $49.
Also on January 1, Stokarski entered the Dunkin Donuts located at 220 Main Street in New Hartford, pulled out a knife, jumped over the counter and while grabbing the clerk, yelled for the clerk to open the registers. The clerk complied and gave Stokarski all of the cash from within the registers.
On January 3, 2018, Stokarski entered the Rayon Market located at 214 Edgewood Avenue in New Haven, and stole $1,400 in cash and a handgun from the clerk at knifepoint. Later that day, Stokarski entered the Cumberland Farms gas station located at 69 Rubber Avenue in Naugatuck, walked behind the counter and demanded money. He then pulled the stolen handgun from his waist area to show the clerk that he had a gun. The clerk complied with Stokarski’s demand and opened the registers. Stokarski then stole approximately $132 in cash and approximately $536 worth of cigarettes and fled in a vehicle driven by Stacy Borowy.
On January 6, 2018, Stokarski entered the Food Land grocery store located at 250 South Colon Road in Wallingford, pulled out a knife, dragged the clerk to the register and ultimately stole approximately $2,254 in cash, while injuring the clerk in the process.
Also on January 6, Stokarski and another man entered the Mobil gas station located at 385 Watertown Avenue in Waterbury and approached the register. Stokarski went behind the register, pulled out a knife and told the cashier to get back while Stokarski pried open the register, ultimately stealing approximately $727 in cash and several cartons of cigarettes.
On January 7, 2018, Stokarski entered the Valero Fas Mart gas station located at 384 Main Street in Durham, grabbed the clerk’s arm, and demanded that she open the register. He then pulled out a knife in an attempt to pry open the register himself. The clerk ultimately complied with Stokarski’s demand to open the register and Stokarski removed approximately $130 in cash.
On January 9, 2018, Stokarski entered Food Bag located at 960 Meriden Waterbury Turnpike in Southington, approached the register, pulled out a knife and began to pry open the register. He then removed approximately $100 from the register and about $500 in cigarettes.
Stokarski has been detained since his arrest on January 9, 2018.
Stokarski pleaded guilty to one count of Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of using or carrying a firearm during and in relation to a crime of violence, and offense that carries a mandatory consecutive term of imprisonment of at least five years.
Judge Meyer scheduled sentencing for January 24, 2019.
Borowy pleaded guilty on September 20, 2018, to aiding and abetting an armed robbery. She awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Connecticut State Police, and the Naugatuck, Southington, New Hartford, New Haven, Wallingford and Waterbury Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Lauren C. Clark.
Washington Man Sentenced to 30 Months in Prison for Credit Card Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ELIJAH CHIN, 28, of Federal Way, Washington, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by two years of supervised release, for fraud and identity theft offenses stemming from a credit card fraud scheme.
According to court documents and statements made in court, between approximately December 2016 and February 2017, Chin was involved in a scheme in which credit card accounts were opened electronically using personal identifying information from Connecticut residents. After the credit card issuers mailed credit cards to the victims’ home addresses, Chin took the cards directly from the victims’ mailboxes. Chin then used the credit cards to purchase gift cards, prepaid cards and other items totaling $63,941.60 at various retail establishments in Connecticut.
The Wilton Police Department arrested Chin on related state charges on February 22, 2017. At the time of his arrest, Chin possessed numerous fraudulently issued credit cards, prepaid cards purchased with the fraudulently obtained credit cards, and mail addressed to Connecticut residents.
Judge Shea ordered Chin to pay full restitution.
On April 30, 2018, Chin pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
Chin, who is released on bond, was ordered to report to prison on December 28.
This investigation was conducted by the U.S. Postal Inspection Service, Wilton Police Department and Ridgefield Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Virginia Man Sentenced to 30 Years in Prison for Enticement, Receipt, and Possession of Child PornographyRead the Press Release
A Roanoke, Virginia man was sentenced to 360 months in prison today, to be followed by a lifetime of supervised release, for enticement of a minor, receipt or attempted receipt of child pornography, and possession of child pornography. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia made the announcement.
Scott Curtiss Pieritz, 57, pleaded guilty on June 19, before Chief U.S. District Judge Michael F. Urbanski of the Western District of Virginia to one count of enticement of a minor, one count of receipt or attempted receipt of child pornography and one count of possession of child pornography.
According to court documents, in July 2017, law enforcement agents were notified that Pieritz, who had a duty to register as a sex offender as a result of three prior child pornography convictions, was using social media applications to communicate with minors and ask them for nude images of themselves. Forensic examination of Pieritz’s electronic devices seized pursuant to a search warrant confirmed that he was in possession of numerous images and videos of child pornography, had used applications such as Omegle and Musical.ly to entice minors to produce and send him child pornography, and had posed as a minor online. At times, Pieritz also exchanged money and gifts for child pornography images from minors. At the time of his arrest, Pieritz was employed as a cashier and dishwasher at K&W Cafeteria, in Roanoke.
The case was investigated by the Virginia State Police. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Nancy Healey of the Western District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Attorney Thomas T. Cullen Appoints Dedicated Official to Answer Western District of Virginia Election ComplaintsRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen announced today that Assistant United States Attorney Matthew Miller will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018 general election. AUSA Miller has been appointed to serve as the District Election Officer (DEO) for the Western District of Virginia, and in that capacity 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.
“The right to vote in free and fair elections is the bedrock of our democratic system of government,” U.S. Attorney Cullen stated. “The Department of Justice and this U.S. attorney’s office will not tolerate efforts, by any individuals or groups, to infringe on or interfere with this fundamental right through intimidation, voter-suppression tactics, or fraud. Our District Election Officer and the FBI will be standing by in the coming days to respond to any credible complaints of unlawful activity.”
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 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, 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).
Assistant United States Attorney Matthew Miller will be on duty in the Western District while the polls are open. He can be reached by the public at the following telephone number: 540-857-2914.
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 abuses on Election Day. The local FBI field offices can be reached by the public at 540-344-3912.
Complaints about violations of federal voting rights 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 at [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.