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29 October 2018
McKean, Pa. Man Pleads Guilty to Charges Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of McKean, Pennsylvania, pleaded guilty in federal court to charges of charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Nathan Mark Williams, 37, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Williams distributed, received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for March 18, 2019 at 3:00 p.m. The law provides for a total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Williams on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Williams.
Marshall County Woman Indicted for Producing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Marshall County woman for producing child pornography, announced U.S. Attorney Jay E. Town and ICE Homeland Security Investigations Assistant Special Agent in Charge for Alabama James G. Hernandez.
An indictment filed in U.S. District Court charges ANNA MARIE GOMEZ, 31, with two counts of persuading a minor child to engage in sexually explicit conduct to produce an image of that conduct and transmit it across state lines. Gomez took sexually explicit pictures of a five-year old girl and sent them to a person in Florida.
“These crimes are detestable and our investigators and prosecutors will remain ever vigilant in protecting victims”, Town said. “Those who violate these laws can expect to find themselves facing a federal charge in federal court and, if convicted, a federal prison bed.”
The penalty for producing child pornography is 15 to 30 years in prison and a maximum $250,000 fine.
Immigration and Custom Enforcement’s HSI investigated the cases, which the Assistant United States Attorney Robert Becher, Sr. is prosecuting.
An indictment contains only charges. A Greene is presumed innocent unless and until proven guilty.
Man who Brought Ice Methamphetamine to Iowa from California Sentenced to over Seven Years in Federal PrisonRead the Press Release
A man who got ice methamphetamine from California and then resold it in Iowa was sentenced on October 25, 2018, to more than seven years in federal prison.
Jeffery Westberg, age 50, from Dike, Iowa, received the prison term after an April 25, 2018, guilty plea to conspiracy to distribute at least 500 grams of methamphetamine.
At the guilty plea, Westberg admitted that between the summer of 2013 and August 2015, he distributed methamphetamine throughout northern Iowa. Westberg obtained methamphetamine from multiple sources, including an individual in California, and then sold it to a number of people in northern Iowa. Overall, Westberg was responsible for distributing nearly ten pounds of methamphetamine.
Westberg was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Westberg was sentenced to 87 months’ imprisonment. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Westberg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department), Mid Iowa Drug Task Force (Marshalltown Police Department; Marshall County Sheriff’s Office; Tama County), and Dubuque Drug Task Force (Dubuque Police Department; Dubuque County Sheriff’s Office).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2084.
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Maine Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Donald Fillmore, 42, of Exeter, Maine, pleaded guilty in federal court to possessing over 400 grams of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 14, 2017, members of the New Hampshire State Police conducted a routine traffic stop and encountered Fillmore. Pursuant to a consent search, the troopers recovered approximately 714 grams of fentanyl, which Fillmore admitted belonged to him.
Fillmore is scheduled to be sentenced on February 4, 2019.
“Fentanyl trafficking exposes the citizens of our state to grave risks with regard to their health and well-being” said U.S. Attorney Murray. “I am grateful to the State Police for their work in this case, which prevented a large amount of this dangerous drug from being distributed. By stopping drug traffickers from distributing fentanyl and other opioids, we are improving public safety and saving lives.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Cam T. Le.
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Long Island MS-13 Gang Members Plead Guilty to Racketeering and Other ChargesRead the Press Release
Earlier today, in federal court in Central Islip, Ronald Catalan, a former leader of the Brentwood Locos Salvatruchas (BLS) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, and Jerlin Villalta, a member of the Freeport Locos Salvatruchas (FLS) clique of the MS-13, pleaded guilty to racketeering charges relating to their participation in crimes of gang-related violence on Long Island. Catalan pleaded guilty to three attempted murders and a conspiracy to distribute cocaine and marijuana as predicate racketeering acts, as well as illegally using firearms in connection with crimes of violence. Villalta pleaded guilty to the June 3, 2016 murder of Jose Pena and conspiracy to distribute marijuana as predicate racketeering acts. The guilty pleas were entered in separate proceedings before United States District Judge Joseph F. Bianco. When sentenced, each defendant faces up to life imprisonment, and Villalta faces deportation.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty pleas.
“The defendants have admitted carrying out numerous MS-13 attacks on Long Island, including murder and attempted murders, as part of the gang’s campaign of wanton violence,” stated United States Attorney Donoghue. “Working with our partners on the Federal Bureau of Investigation’s Long Island Gang Task Force, we will not rest until MS-13 and the threat this transnational criminal enterprise presents to our communities is eliminated.” Mr. Donoghue thanked the Task Force for their invaluable assistance during the investigation.
According to the superseding indictment and statements made in court, on June 23, 2009, Catalan and two other MS-13 members, all of whom were new members of the BLS clique, armed themselves with handguns and drove through Brentwood, hunting for rival gang members to attack and kill in order to increase their standing in the gang. They observed a group of males on Barleau Street, whom they believed to be members of the rival Bloods street gang. The MS-13 members exited the car, approached the group and started firing. John Doe #1 was struck in the armpit and back as he tried to run; he underwent surgery and ultimately survived.
Catalan also admitted to participating in the October 21, 2015 attempted murders of two men on Bancroft Road in North Bay Shore. Catalan, who was the leader of the BLS clique from 2015 until his arrest in July 2017, and other MS-13 members retaliated against suspected members of the rival Latin Kings gang for the assault of an MS-13 member earlier that day. Armed with two .38 caliber revolvers, the MS-13 gang members drove around Brentwood and Bay Shore and observed a group of people they believed to be Latin Kings. Catalan directed two newer MS-13 members to carry out the shooting and gave them the .38 caliber revolvers. The MS-13 members approached the group and fired multiple shots before fleeing the scene. Two victims were struck by gunfire, but survived their wounds.
Villalta admitted that he and several co-conspirators murdered Jose Pena, a member of the MS-13, because he was suspected of cooperating with law enforcement and being homosexual. After consulting with MS-13 leadership in El Salvador, Villalta and the other MS-13 members obtained weapons and a vehicle to be used in the murder. On June 3, 2016, they lured Pena into the car and drove to a secluded wooded area in Brentwood, where they stabbed and slashed him with knives until he was dead. Pena’s body was not discovered for four months.
Both Catalan and Villalta pleaded guilty to participating in drug conspiracies with the BLS and FLS cliques, respectively.
Today’s guilty pleas are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Suffolk County Police Department, Nassau County Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Office, Rockville Centre Police Department and the New York State Police.
The government’s cases are being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Raymond A. Tierney and Michael T. Keilty are in charge of the prosecution.
The Defendants:
RONALD CATALAN (also known as “Stranger” and “Extrano”)
Age: 27
Brentwood, New YorkJERLIN VILLALTA (also known as “Sonic”)
Age: 21
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (S-6) (JFB)
Leawood Attorney Sentenced to Prison for Federal Tax EvasionRead the Press Release
KANSAS CITY, KAN. – A Leawood attorney was sentenced today to 18 months in federal prison for concealing his assets and income in an effort to keep the Internal Revenue Service from collecting more than $132,000 in taxes he owed, U.S. Attorney Stephen McAllister said. The defendant also was ordered to pay restitution of slightly more than $202,000, which includes penalties and interest.
David B. Mandelbaum, 58, Leawood, Kan., pleaded guilty to one count of tax evasion. In his plea, he admitted he owed more than $132,000 from the 2005, 2006, 2007, 2009 and 2010 tax years. He concealed his assets and income from the IRS by setting up bank accounts under other identities and making false statements. He also kept personal money in a trust account that was supposed to include only funds belonging to clients, in order to hide that money from the IRS.
McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Leon Patton for their work on the case.
Leader of International Drug Trafficking Organization SentencedRead the Press Release
RICHMOND, Va. – A Guatemalan man was sentenced today to over 23 years in prison for his leadership role in operating a large-scale Guatemalan drug trafficking organization (DTO) that moved 3,739 kilograms of cocaine throughout Central America, as part of a coordinated international law enforcement investigation codenamed Operation Go Explorers.
According to court documents, Max Alberto Estrada-Linares, 36, who was extradited to the United States in December 2017, served as the head of the DTO. In this leadership role, Estrada organized cocaine transportation networks, directed others to buy and sell cocaine on behalf of the DTO, initiated the construction of a semi-self-propelled semi-submersible vessel to transport cocaine, directed the movement of cocaine loads, and served as the overall leader of the DTO.
Operating throughout Central America, Estrada’s DTO knowingly orchestrated the movement of over 3,000 kilograms of cocaine from Costa Rica to the Guatemalan-Mexican border. In May 2016, Estrada directed the use of violence against co-conspirators in an effort to locate approximately 500 kilograms of cocaine suspected to be stolen from the DTO off the Pacific coast of Guatemala. In September 2016, Guatemalan law enforcement authorities seized the self-propelled semi-submersible vessel under construction by Quinonez and the DTO in Guatemala.
Operation Go Explorers was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert, Peter S. Duffey, and Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-67.
Justice Department Releases Update on Hate Crimes Prosecutions and Announces Launch of New Hate Crimes WebsiteRead the Press Release
The Department today released an update on hate crimes and announced the launch of a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all of the Department components working on hate crimes.
In recent years, the Department has ramped up its hate crimes prosecution program and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible. The Department of Justice Law Enforcement Roundtable on Improving the Identification and Reporting of Hate Crimes being conducted today and tomorrow through the Department’s Hate Crimes Enforcement and Prevention Initiative is an example of ongoing efforts to spur communication and cohesion among those in the field working on hate crimes.
Over the past 10 years, the Department of Justice has charged more than 300 defendants with hate crimes offenses, including 50 defendants in FY 2017 and 2018. In FY 2018, the Department charged 27 defendants in 22 cases, and obtained 30 convictions. Since January 2017, the Department has indicted 50 defendants involved in committing hate crimes and secured convictions of 51 defendants for hate crimes incidents.
At today’s roundtable, Deputy Attorney General Rod Rosenstein announced additional new efforts to assist in combatting hate crimes, including an $840,000 grant from the National Institute of Justice (NIJ) for a new research study on hate crimes data collection, and the extension of technical assistance resources relating to hate crimes through the Department’s Collaborative Reform Initiative. The website, the roundtable, the NIJ grant, and the Collaborative Reform resources are just some of the Department’s efforts that reflect discussions with law enforcement, advocates, faith leaders, and community members at the Department’s Hate Crimes Summit and National Summit on Crime Reduction and Public Safety in June 2017.
“Individuals should be able to live their lives free from the threat of violence and discrimination, no matter who they are, what they believe, or how they worship,” said Acting Assistant Attorney General John Gore. “I am proud of the work that the Civil Rights Division and our partners in the U.S. Attorneys’ offices have accomplished working with the FBI and our state and local law enforcement partners. We will continue to prioritize our work bringing perpetrators of hate crimes to justice throughout the country.”
Recent Department work on hate crimes prosecutions:
- On Saturday, within hours of the shooting at the Tree of Life Jewish Synagogue, the Department filed hate crime and other charges against the defendant Robert Bowers. The criminal complaint charges Bowers with 29 counts setting forth federal crimes of violence and firearms offenses. The crimes of violence are based upon the federal civil rights laws prohibiting hate crimes.
- This month, a Texas man was sentenced to almost 25 years in prison for a hate crime relating to the 2017 burning of a mosque in Victoria, Texas. A jury found him guilty on July 16 for a hate crime in the burning of the Victoria Islamic Center (the mosque) on Jan. 28, 2017, and for the use of fire to commit a federal felony.
- In September, a Florida man was sentenced to four years in prison, three years’ supervised release, and $1,800 in restitution for obstructing the free exercise of religious beliefs by threatening, in a phone message, to detonate a bomb at a mosque in Pembroke Pines, Florida.
- In August, a Kansas man who shot three men at a bar in Olathe was sentenced to life in prison without parole. The defendant killed one victim, and attempted to kill a second victim, because of their actual or perceived race, color, religion, or national origin. The defendant fired his weapon at a third man who had chased the defendant after the attack. Earlier this year, the defendant plead guilty to hate crimes, firearms, attempted murder, and murder charges. According to the agreement he signed when he plead guilty, the defendant went up to the victims in a bar, demanded to know how they came into the United States, and called one victim a “terrorist.”
- In June, an Ohio man was charged with federal hate crimes including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville.
The Department continues to conduct training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.
More information about the Department’s hate crimes efforts, along with a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available on the new webpage, www.justice.gov/hatecrimes.
Judge Sentences Cambria County Man to 6 Years in Prison for Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Northern Cambria, Pa. has been sentenced in federal court to six years in prison and 10 years supervised release on his conviction of possession of child pornography, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anthony P. Mason, Jr., 25.
According to information provided to the court, on April 19, 2016, Mason knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Mason.
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 better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jerome Kieffer and Armstead Kieffer Found Guilty of Felony Murder Related to May 2017 Loomis Armored Car Robbery, a Separate Robbery of a Brinks Armored Car in October 2015, Lying to Federal Grand Jury, and Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Peter G. Strasser announced that JEROME KIEFFER, age 24, and JEROME’s father, ARMSTEAD KIEFFER, age 53, of New Orleans were found guilty today after a jury trial before United States District Judge Ivan L.R. Lemelle to charges of conspiracy to commit bank robbery, armed bank robbery, use of a firearm in furtherance of a crime of violence, armed bank robbery resulting in death, murder, making false statements to federal grand jury and being a felon in possession of a firearm.
JEROME KIEFFER and ARMSTEAD KIEFFER, who are father and son, were found guilty of committing two armored car robberies, a 2015 robbery at the Chase Bank on N. Board and a 2017 attempted robbery at the Campus Federal Credit Union on Tulane. JEROME KIEFFER spent several days planning the 2015 robbery and the getaway. JEROME KIEFFER and DELTOINE SCOTT, a co-defendant who pled guilty, waited behind a hole they had cut in a wooden fence and jumped out with guns when they saw the guard move away from the armored car. They then fled back through the hole and down an alley to where they had previously parked a getaway vehicle. They got the guns they used in the robbery from ARMSTEAD KIEFFER and they returned to ARMSTEAD KIEFFER’s house immediately after the robbery to count the proceeds.
JEROME KIEFFER and ARMSTEAD KIEFFER were also found guilty for their participation in the 2017 attempted robbery that resulted in the death of Loomis guard James McBride. JEROME KIEFFER had rented an apartment that overlooked the scene of the attempted robbery and had seen an armored car servicing the ATMs that his apartment overlooked in the weeks prior to the robbery. JEROME KIEFFER along with co-defendant SCOTT borrowed a distinctive black, white, truck from SCOTT’s grandfather on the day of the attempted robbery. SCOTT met with JEROME KIEFFER and ARMSTEAD KIEFFER to plan the robbery and ARMSTEAD KIEFFER acted as the lookout.
JEROME KIEFFER, and ARMSTEAD KIEFFER, face a mandatory life sentence. Sentencing will be held before United States District Judge Ivan L.R. Lemelle in approximately 90 days.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys David Haller and Michael McMahon are in charge of the prosecution.
Jefferson County woman sentenced for heroin chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Amy Bowlin, of Ranson, West Virginia, was sentenced today to 4 years probation for heroin distribution, United States Attorney Bill Powell announced.
Bowlin, age 27, pled guilty to one count of “Aiding and Abetting Distribution of Heroin” in July 2018. Bowlin admitted to selling heroin in July 2017 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jackson Man Pleads Guilty to Threatening to Bomb Veterans Administration OfficeRead the Press Release
Jackson, Miss. – Undrey L. Jones, 48, Jackson, pled guilty today before United States District Judge Carlton W. Reeves to threatening to bomb the Veterans Administration Regional Office in Jackson, announced U.S. Attorney Mike Hurst and Special Agent in Charge, James Ross, Veterans Affairs Office of Inspector General, South Central Field Division.
Jones was charged in a one-count federal indictment on May 2, 2018. A superseding indictment was filed on June 12, 2018.
On February 27, 2018, Jones called the Veterans Benefits Administration Call Center, located in Salt Lake City, Utah. Jones identified himself by name and angrily demanded to talk to the Director of the Veterans Administration Medical Center and Regional Office in Jackson, Mississippi. Jones became increasingly agitated during the call, and stated that he would "come up there and blow the building up," referring to the Veterans Administration Regional Office in Jackson. Jones used several expletives during this call. Jones was arrested on February 28, 2018.
Jones is set for sentencing on January 22, 2019 at 10:00am and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
"These charges underscore the Veterans Affairs Office of Inspector General’s commitment to the safety of the Veteran Affairs’ patient population, as well as its employees, guests, and facilities," said Special Agent in Charge James Ross
The case were investigated by the Veterans Administration Office of Inspector General, Federal Bureau of Investigation Joint Terrorism Task Force, Mississippi Homeland Security, Mississippi Bureau of Investigation, Madison Police Department, Madison County Sheriff’s Department, and the Hinds County Sheriff’s Department. AUSA Erin Chalk is prosecuting the case.
Investment Adviser Sentenced to 100 Months in Prison for Stealing Investors’ Money While on Pre-Trial Release for Another Fraud SchemeRead the Press Release
Earlier today, Louis F. Petrossi, the founder and president of the Wealth Research Institute, a purported investment research firm, was sentenced by United States Chief District Judge Christopher C. Conner of the Middle District of Pennsylvania to 100 months and three days in prison for stealing investors’ money. The sentence will run concurrent (with three days consecutive) to the 44-month sentence he received in the Eastern District of New York in May 2017 for his role in the ForceField Energy Inc. securities fraud scheme. On March 8, 2018, following a four-day trial, a federal jury in the Middle District of Pennsylvania found Petrossi guilty of securities fraud, investment adviser fraud and wire fraud. Petrossi was also ordered to pay $2,265,735.84 in restitution and $1,170,940 in forfeiture.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Petrossi abused the trust placed in him by investors, many of whom reported that they suffered significant loss of savings for retirement and education expenses as a result of his scheme. With today’s sentence, Petrossi has been held responsible for misappropriating more than $1 million of investor funds for his personal use – a fraud he carried out while on pre-trial release for a related criminal case in the Eastern District of New York,” stated United States Attorney Donoghue. Mr. Donoghue expressed his appreciation to the United States Attorney’s Office for the Middle District of Pennsylvania for their assistance with the case.
Between January 2015 and January 2017, Petrossi solicited more than $1.8 million in investments in one of his “Chadwicke” funds from more than 25 investors, including an investor residing in the Middle District of Pennsylvania. Petrossi promoted Chadwicke as an opportunity to invest in high-profile startup companies such as Lyft, Inc., Maplebear Inc., Pinterest Inc., Spotify Technology SA and Palantir Technologies, Inc., among others. Petrossi invested approximately $665,400 in privately held startup companies but used more than $1.1 million in investor funds to pay for personal expenses, including payment for his BMW, renovations to his home and payment of his legal fees.
On May 3, 2016, Petrossi was arrested in Nevada pursuant to an indictment returned by a federal grand jury in the Eastern District of New York for his role in a securities fraud scheme involving ForceField Energy Inc. Under the terms of Petrossi’s pre-trial release, he was prohibited from employment “directly involving the handling of investors.” Nevertheless, Petrossi continued to engage in the Chadwicke scheme.
The fraud charges pursuant to which the defendant was sentenced today were initially brought as part of the ForceField Energy case, but were subsequently transferred to the Middle District of Pennsylvania.
The Chadwicke securities fraud case is being prosecuted by Assistant United States Attorney Mark E. Bini of the Eastern District of New York’s Business and Securities Fraud Section and Special Assistant United States Attorney John O. Enright of the United States Securities and Exchange Commission’s Enforcement Division.
The Defendant:
LOUIS F. PETROSSI
Age: 77
Residence: Reno, NevadaM.D.P.A. Docket No. 17-CR-192 (CCC)
Illegal alien sentenced for reentry chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Juan Mendez-Patishtan, a Mexican national, was sentenced today to 15 months incarceration for a reentry of a removed alien charge, United States Attorney Bill Powell announced.
Mendez-Patishtan, age 35, pled guilty to one count of “Reentry of a Removed Alien” in June 2018. Mendez-Patishtan admitted to reentering the United States illegally after being removed six separate times from 2010 to 2016. Mendez-Patishtan was found in Harrison County in April 2018.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Illegal Alien Sentenced to 18 Months in Prison for Unlawfully Returning to United States and Failing to Register as Sex OffenderRead the Press Release
CAMDEN, N.J. – A Salvadoran man previously convicted for sexually assaulting a child was sentenced to 18 months in prison today for failing to register as a sex offender after unlawfully returning to the United States and traveling to New Jersey, U.S. Attorney Craig Carpenito announced.
Samuel De Jesus Corvera-Mata, 43, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of illegal re-entry subsequent to conviction for an aggravated felony and one count of failing to register as required by the Sex Offender Registration and Notification Act (SORNA).
SORNA requires all sex offenders to register and keep that registration current in each jurisdiction where the sex offender resides.According to documents filed in this case and statements made in court:
Corvera-Mata admitted that he illegally re-entered the United States after being deported to El Salvador following a 10-year prison sentence in California for committing multiple lewd and lascivious acts upon a seven-year-old child. As a result of his prior offenses, Corvera-Mata was required to register as a sex offender if he ever returned to the United States. Corvera-Mata later illegally re-entered the country and travelled to New Jersey, where he was located and arrested in October 2017.
In addition to the prison term, Judge Simandle sentenced Corvera-Mata to 5 years of supervised release.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Camden, New Jersey
Huntsville Man Indicted on Multiple Counts of Tampering with Vehicle OdometersRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Huntsville man on multiple counts of tampering with vehicle odometers, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
A 15-count indictment filed in U.S. District Court charges RANDY EUGENE GREEN, 62, d/b/a RJ’s Auto Sales of Huntsville, with 12-counts of tampering with vehicle odometers and 3-counts of bank fraud. In the twelve counts related to odometer tampering, the offenses occurred between approximately October 1, 2014, and November 2, 2016. The largest discrepancy in the changed odometer reading was approximately 218, 678 miles. The average discrepancy in the mileage on the odometers for the various vehicles was 122,046 miles. In the three counts related to Bank Fraud, Greene engaged in a scheme to defraud Redstone Federal Credit Union. The fraud occurred when the credit union financed three of the vehicles on which the odometers had been changed. Greene was originally charged in a one count Information for odometer tampering on December 21, 2017, and the facts of that charge are included in the indictment. The indictment also indicates that Greene may have been aided and abetted by others. Green was served with a notice of forfeiture related to the bank fraud counts, which includes but not limited to a money judgement in the amount of $28,000.
“Anyone who violates federal laws and commits fraud will be vigorously investigated and prosecuted,” Town said. “Congress passed these kinds of laws to protect consumers, financial institutions, and the economy as a whole, and people who engage in this kind of shameful activity should know that there will be serious consequences when they are caught.”
“It is very important that consumers and financial institutions know that the vehicle being purchased from any auto dealership represents the true odometer reading,” Williams said. “If you have purchased a vehicle from RJ’s Auto Sales of Huntsville within the last five years and believe you are a victim of odometer rollback fraud, please contact the U.S. Secret Service at 256-922-5408.”
Tampering with an odometer, carries a maximum 3-year prison sentence and a maximum $250,000 fine. Bank fraud carries a maximum penalty of 30 years in prison and a maximum $1,000,000 fine.
U.S. Secret Service is investigating the case, which Assistant United States Attorney Russell E. Penfield is prosecuting.
An indictment contains only charges. A Greene is presumed innocent unless and until proven guilty
Hartford Felon Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRANDON SPENCE, also known as “Spun,” 30, of Hartford, pleaded guilty today in Hartford federal court to one count of possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on June 12, 2018, Hartford Police received information that Spence was in possession of a firearm on Enfield Street. Spence ran from officers who encountered him on Enfield Street. During the pursuit, Spence discarded a Bryco Arms, model T380, .380 caliber firearm, loaded with seven rounds of ammunition. The firearm was recovered, and Spence was arrested after officers found him hiding under the porch of a house on Greenfield Street.
Spence’s criminal history includes multiple convictions related to the illegal possession of firearms.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Spence is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on January 22, 2019, at which time Spence faces a maximum term of imprisonment of 10 years.
This case is being investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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 neighborhoods safer for everyone.
Hampshire County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Grover Allen White, of Romney, West Virginia, was sentenced to 30 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
White, age 40, pled guilty to one count of “Possession of a Stolen Firearm” in June 2018. White admitted to possessing a stolen .380 caliber pistol. The crime occurred in Hampshire County in June 2016.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Chief U.S. District Judge Gina M. Groh presided.Georgia Man Indicted for Organizing and Operating an Interstate Jury-Duty Scam Out of His State Prison Cell in GeorgiaRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Georgia man for organizing and operating an interstate jury-duty scam out of his state prison cell in Georgia, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and U.S. Marshal Martin Keely.
A nine-count indictment filed in U.S. District Court charges RICO RAYMOND COOK, 45, of Georgia, with wire fraud, conspiracy to commit wire fraud and impersonating a federal officer. A federal grand jury in July indicted two other Georgia residents, TEIANA MARIE TAYLOR, 35, and ORENTHIAL WALKER, 42, for conspiracy to commit wire fraud with false information concerning jury duty.
“The federal government has many ways to make good on debts owed to the United States,” Town said. “Sometimes we knock on your door. Sometimes we don’t even knock. But we never will cold call you.”
“Sometimes we find our suspects in the front yard or back yard, it is not often we find our suspects in the prison yard,” said Keely. “This sends the message that we will find you.”
According to Cook’s indictment, he procured a cell phone for use inside the Georgia state prison where he was serving time. Georgia state prison system records show that Cook is currently serving a sentence for armed robbery, possession of a firearm by a convicted felon, false imprisonment, aggravated assault and first-degree burglary. While in prison, Cook provided the contraband cell phone to a co-conspirator who used it to call residents in the Northern District of Alabama and falsely claim to be an employee of the U.S. Marshals Service or the U.S. District Court. The caller also would falsely claim that the Alabama resident had failed to appear for jury duty, that a judge had issued a warrant for his or her arrest, and then would demand money, according to the indictment.
If the resident agreed to pay, the caller would demand that the victim transfer the money by means of gift cards or through commercial money transfer services to an account controlled by Cook and his co-conspirators, according to his indictment. Cook instructed his co-conspirators to withdraw proceeds of the scheme and transfer the money at his direction, often to members of his family, according to the indictment.
The maximum penalty for conspiracy to commit wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for wire fraud is 20 years in prison and a fine of $250,000 or twice the gross amount of gain or loss, whichever is greater. The maximum penalty for impersonating a federal official is three years in prison and a $250,000 fine or twice the gross amount of gain or loss, whichever is greater.
Victims of this fraud commonly report that the scammers sound convincing and speak authoritatively. The scammers may use real information about the victim and accurate court addresses. They may also use the real names of law enforcement officers, court officials, and federal judges to make the scam appear more credible. They may even “spoof” the phone number on caller ID so that it falsely appears to be from the court or a government agency.
Citizens can protect themselves by knowing these facts about federal jury service:
- The court will always send a jury summons by U.S. Mail.
- The court and law enforcement will never demand payment over the phone.
- The court and law enforcement will never demand a gift card number to satisfy an obligation.
- A prospective juror who disregards a jury summons will be contacted through the mail by the court clerk’s office and may, in certain circumstances, be ordered to appear before a judge. Such an order will always be in writing and signed by the judge.
- A fine will never be imposed until after the individual has appeared in court and been given the opportunity to explain his or her failure to appear. If a fine is imposed, it will be in open court and reduced to writing (and will not be payable by gift card number).
Citizens who wish to verify whether they were summoned for federal jury duty may contact the Northern District of Alabama’s jury office at 1-800-222-8715. Citizens can report a scam phone call by contacting the FBI Birmingham Field Office at 205-326-6166.
The FBI and the U.S. Marshals Service investigated this case, which Assistant U.S. Attorney Jonathan S. Keim is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Swiss Bank Executive Sentenced to Prison for Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil CompanyRead the Press Release
The former managing director and vice chairman of a Swiss bank was sentenced to 10 years in prison today, after previously pleading guilty for his role in a billion-dollar international scheme to launder funds embezzled from Venezuelan state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Matthias Krull, 44, a German national and Panamanian resident, pleaded guilty to one count of conspiracy to commit money laundering, on Aug. 22. U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida sentenced Krull to serve 120 months in prison, to be followed by three years of supervised release. Judge Altonaga also ordered Krull to pay a fine in the amount of $50,000 and a forfeiture money judgment of $600,000.
As part of his plea, Krull admitted that in his position with the Swiss bank, he attracted private clients, particularly clients from Venezuela, to the bank. In this role, Krull’s clients included Francisco Convit Guruceaga, who was indicted on money laundering charges on Aug. 16. Krull’s clients also included three unnamed conspirators described in the Aug. 16 indictment.
Krull admitted that the conspiracy began in December 2014 with a currency exchange scheme that was designed to embezzle around $600 million from PDVSA, obtained through bribery and fraud and the conspirators’ efforts to launder a portion of the proceeds of that scheme. By May 2015, the conspiracy had doubled in amount to $1.2 billion embezzled from PDVSA. PDVSA is Venezuela’s primary source of income and foreign currency (namely, U.S. Dollars and Euros). Krull joined the conspiracy in or around 2016, he admitted, when a co-conspirator contacted him to launder the proceeds of a PDVSA foreign-exchange embezzlement scheme.
Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted. Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA. Krull also admitted that surrounding and supporting these false-investment laundering schemes are complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers.
Krull’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
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 the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The investigation was conducted by HSI Miami, HSI London, HSI Rome and HSI Madrid. This case is being prosecuted by Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Nadler of the Economic and Environmental Crimes Section of the Southern District of Florida. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter; the National Crime Agency of the United Kingdom; and Italian, Spanish and Maltese law enforcement authorities provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Swiss Bank Executive Sentenced to Prison for Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil CompanyRead the Press Release
The former managing director and vice chairman of a Swiss bank was sentenced to 10 years in prison today, after previously pleading guilty for his role in a billion-dollar international scheme to launder funds embezzled from Venezuelan state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
Matthias Krull, 44, a German national and Panamanian resident, pleaded guilty to one count of conspiracy to commit money laundering, on Aug. 22. U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida sentenced Krull to serve 120 months in prison, to be followed by three years of supervised release. Judge Altonaga also ordered Krull to pay a fine in the amount of $50,000 and a forfeiture money judgment of $600,000.
As part of his plea, Krull admitted that in his position with the Swiss bank, he attracted private clients, particularly clients from Venezuela, to the bank. In this role, Krull’s clients included Francisco Convit Guruceaga, who was indicted on money laundering charges on Aug. 16. Krull’s clients also included three unnamed conspirators described in the Aug. 16 indictment.
Krull admitted that the conspiracy began in December 2014 with a currency exchange scheme that was designed to embezzle around $600 million from PDVSA, obtained through bribery and fraud and the conspirators’ efforts to launder a portion of the proceeds of that scheme. By May 2015, the conspiracy had doubled in amount to $1.2 billion embezzled from PDVSA. PDVSA is Venezuela’s primary source of income and foreign currency (namely, U.S. Dollars and Euros). Krull joined the conspiracy in or around 2016, he admitted, when a co-conspirator contacted him to launder the proceeds of a PDVSA foreign-exchange embezzlement scheme.
Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted. Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA. Krull also admitted that surrounding and supporting these false-investment laundering schemes are complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers.
Krull’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
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 the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The investigation was conducted by HSI Miami, HSI London, HSI Rome and HSI Madrid. This case is being prosecuted by Assistant U.S. Attorney Michael Nadler of the Economic and Environmental Crimes Section of the Southern District of Florida and Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter; the National Crime Agency of the United Kingdom; and Italian, Spanish and Maltese law enforcement authorities provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Genentech Employees Charged with Theft of Trade SecretsRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Xanthe Lam, Allen Lam, John Chan, and James Quach for stealing trade secrets from Genentech and related charges, announced United States Attorney Alex G. Tse and FBI Special Agent in Charge John F. Bennett. The indictment, handed down on October 25, 2018, and unsealed today, alleges that the defendants stole confidential Genentech information to help a company in Taiwan create and sell drugs similar to those that were created by Genentech.
According to the indictment, Xanthe Lam worked for Genentech as a Principal Scientist from 1986 until 2017. Her husband, Allen Lam, and James Quach, both were former Genentech employees who, along with John Chan, became consultants for JHL Biotech, Inc. JHL is a company based in Zhubei, Taiwan, that develops “biosimilars.” Biosimilars are roughly the equivalent of a “generic” chemical drug, i.e., designed to have properties similar to a biopharmaceutical that previously was approved by a regulatory agency, such as the Food and Drug Administration. The indictment alleges Xanthe Lam conspired with Allen Lam and John Chan to steal the company’s trade secrets related to biopharmaceuticals Pulmozyme, Rituxan, Herceptin, and Avastin. Xanthe Lam allegedly downloaded, collected, and transferred to Allen Lam and others at JHL certain confidential Genentech documents relating to the processes by which the company formulated drugs and managed raw materials. Xanthe Lam also allegedly secretly consulted for JHL while still employed at Genentech.
The indictment also alleges that Xanthe Lam conspired with former Genentech employee James Quach to illegally use her computer credentials. Specifically, she allowed Quach to gain access to Genentech’s secure document repository and, once he had access to the repository, Quach stole the company’s proprietary manufacturing protocols.
In sum, the Indictment charges the defendants with the following crimes and, if found guilty, they are subject to the following maximum statutory penalties:
Defendant
Age/Residence
Charges
Maximum Penalties
Xanthe Lam
66/ South San Francisco, Calif.
18 U.S.C. §§ 1832(a)(5) – Conspiracy to Commit Theft of Trade Secrets
18 U.S.C. §§ 1832(a) and 2 – Theft of Trade Secrets, Aid and Abet
18 U.S.C. § 1030(b) – Conspiracy to Commit Computer Fraud and Abuse
18 U.S.C. § 1030(a)(2)(C) and 2 – Computer Fraud and Abuse, Aid & Abet
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Allen Lam
68/ South San Francisco, Calif.
18 U.S.C. §§ 1832(a)(5) – Conspiracy to Commit Theft of Trade Secrets
18 U.S.C. §§ 1832(a) and 2 – Theft of Trade Secrets, Aid and Abet
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
John Chan
29/ San Francisco, Calif.
18 U.S.C. §§ 1832(a)(5) – Conspiracy to Commit Theft of Trade Secrets
18 U.S.C. §§ 1832(a) and 2 – Theft of Trade Secrets, Aid and Abet
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
James Quach
58/ Daly City, Calif.
18 U.S.C. § 1030(b) – Conspiracy to Commit Computer Fraud and Abuse
18 U.S.C. § 1030(a)(2)(C) and 2 – Computer Fraud and Abuse, Aid & Abet
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
Five years of imprisonment; $250,000 fine, three years of supervised release, $100 special assessment, forfeiture
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants were all arraigned this morning before U.S. Magistrate Judge Joseph C. Spero. All defendants pleaded not guilty and were released on bond. Magistrate Judge Spero scheduled the defendants’ next district court appearance for November 13, 2018, before U.S. District Judge William Alsup. Quach also will appear on November 2, 2018, before Magistrate Judge Spero for identification of counsel.
Assistant U.S. Attorneys Matthew A. Parrella and Michelle J. Kane are prosecuting the case with the assistance of Elise Etter and Rebecca Shelton. The prosecution is the result of an investigation by the FBI.
Former Bank CEO, Financier, and Business Owner Indicted for Regulatory and Bank FraudRead the Press Release
NEWARK, N.J. – The former CEO of First State Bank, a financier, and a New Jersey business owner were indicted today by a federal grand jury for their roles in an elaborate scheme to deceive the Federal Deposit Insurance Corporation (FDIC) and to deceive and defraud the now defunct First State Bank (FSB), formerly located in Cranford, New Jersey, U.S. Attorney Craig Carpenito announced.
Joseph Natale, Albert Gasparro, and Gary Ketchum were charged with conspiracy to mislead the FDIC and FSB, misleading those two entities, conspiracy to commit bank fraud and bank fraud in a 13-count indictment. Donna Conroy, a conspirator, pleaded guilty in May 2017 and is awaiting sentencing.
According documents filed in this and other cases and statements made in court:
From September 2009 to September 2010, Natale, Gasparro, Ketchum, Conroy and others created the appearance that $7 million in new capital had been invested into FSB by three bona fide purchasers when, in fact, nominee investors and FSB’s own assets had been misused for that purpose. FSB was defrauded into paying $715,000 in fees for that fabricated capital to Gasparro, who then split that money with Natale. To conceal this misconduct, three fraudulent loans were subsequently obtained from FSB, from which Ketchum wrongfully received an additional $176,000. The defendants then misrepresented the true facts underlying this misconduct to the FDIC and FSB. FSB also previously attempted to obtain funds from the Trouble Asset Relief Program (TARP), but ultimately withdrew the application.
The substantive bank and regulatory fraud charges each carry a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. The charged conspiracy has a five-year statutory maximum term of imprisonment and a maximum fine of $250,000 or twice the loss caused or gain realized from that offense.
U.S. Attorney Carpenito credited Special Agent in Charge Patricia Tarasca, FDIC, Office of Inspector General; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and Special Inspector Christy Goldsmith Romero of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare & Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Gasparro: Lawrence Lustberg Esq., Newark
Natale: Michael Critchley Esq., Livingston, New Jersey
Ketchum: Linda Foster, Assistant Federal Public Defender, Newark
Federal Jury Convicts Two Austin Psychologists, Owners of Psychological A.R.T.S., P.C., in Health Care OffensesRead the Press Release
In Austin today, a federal jury convicted two Austin psychologists who own and operate Psychological A.R.T.S., P.C., announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
Following a three-week-long trial, jurors found 73-year-old Dr. William Joseph Dubin and his son, 33-year-old Dr. David Fox Dubin, guilty of federal crimes. Dr. William Dubin was found guilty of one count of conspiracy to pay and receive health care kickbacks, and two counts of offering to pay and paying illegal kickbacks. Dr. David Dubin was found guilty of one count of conspiracy to commit health care fraud, one count of health care fraud and aiding and abetting health care fraud, and one count of aggravated identity theft.
Previously, a third defendant in this case, 68-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of receiving an illegal kickback. McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin that provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services.
Evidence provided during trial revealed that Dr. William Dubin paid McKenzie to use his position at the emergency shelter to refer children and youth to Psychological A.R.T.S., for comprehensive mental health services, which were billed to the Medicaid program. Upon receipt of payment for these services, Dr. William Dubin paid McKenzie a 10-percent kickback from the money paid to Psychological A.R.T.S.
Evidence during trial also revealed that Dr. David Dubin engaged in a conspiracy to commit health care fraud and committed health care fraud by causing at least one fraudulent billing to be submitted to the Medicaid program. Evidence further revealed that Dr. David Dubin engaged in aggravated identity theft when he caused a fraudulent claim to be submitted to Medicaid and unlawfully used a patient’s personal identification information to obtain payment of the bill.
Dr. William Dubin faces up to five years in federal prison for each count related to illegal kickbacks. Dr. David Dubin faces up to ten years in federal prison for each count related to health care fraud; and a consecutive mandatory two-year term in federal prison for the count related to aggravated identity theft. They remain on bond pending sentencing scheduled for 10:30 am on February 19, 2019 before United States District Judge Xavier Rodriguez.
Special Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorneys Greg Surovic, Justin Chung, and Daniel Castillo are prosecuting this case on behalf of the Government.Erie Man Received and Possessed Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Jonathan Scott Boynton, 30, pleaded guilty to before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Boynton received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for March 18, 2019 at 12:45 p.m. The law provides for a total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Boynton on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation that led to the prosecution of Boynton.
Erie Convenience Store Owner Sentenced for Food Stamp Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to one day in jail, to be followed by one year of home detention and two years of supervised release and ordered to make $111,562.00 in restitution on his conviction of theft of government property, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Jasmin Omanovic, 38.
According to information presented to the court, from October 2011 to February 2015, Omanovic, who was the owner and operator of International Market in Erie, committed food stamp fraud by exchanging food stamps for cash at fifty percent of face value. Omanovic also exchanged food stamps for ineligible items. He also allowed customers to pay off store debt with food stamps and he took customers’ EBT cards and used them at Walmart to restock his shelves.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Agriculture, Office of Inspector General, the Erie Bureau of Police and Homeland Security Investigations for the investigation leading to the successful prosecution of Omanovic.
Durant Man Sentenced to 120 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Derik Wayne Frazier, age 35, of Durant, Oklahoma, was sentenced to 120 months imprisonment and 3 years supervised release for Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Durant Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about November 24, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year knowingly possessed in and affecting commerce a firearm and ammunition which have been shipped and transported in interstate and foreign commerce.
United States Attorney Brian J. Kuester said, “Enforcing federal firearms statutes against defendants that have proven themselves to be violent is an effective tool this office utilizes to help district attorneys and their state and local law enforcement partners make their communities safer. This case is a great example of how collaboration between agencies from different jurisdictions results in a community that is safer.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Detroit man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Marquis Mitchell, of Detroit, Michigan, was sentenced today to 46 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Mitchell, age 26, pled guilty to one count of “Distribution of Heroin within 1,000 feet of a protected location” in April 2018. Mitchell admitted to distributing heroin near a property belonging to West Virginia University in September of 2017 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Deputy Attorney General Rosenstein Announces Funds and Technical Assistance Resources to Help Law Enforcement Investigate and Prosecute Hate Crimes at Law Enforcement RoundtableRead the Press Release
Deputy Attorney General Rod Rosenstein today announced a grant of more than $840,000 to the University of New Hampshire to conduct a national survey of hate crime incidents and victimization. He also announced that a $10 million dollar technical assistance program launched last March by Attorney General Sessions will now include the prosecution and prevention of hate crimes. For the first time, law enforcement will be able to access critical and innovative education and training resources on hate crimes investigation and prevention. The announcements were made at the Department of Justice Law Enforcement Roundtable on Improving the Identification and Reporting of Hate Crimes, hosted by the Department’s Hate Crimes Enforcement and Prevention Initiative. Acting Assistant Attorney General John Gore for the Civil Rights Division, Phil Keith, Director of Community Oriented Policing Services (COPS), and Matt M. Dummermuth, Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General joined the Deputy Attorney General in making the announcement.
“Today’s roundtable brings together two of the Department’s highest priorities: supporting our state and local law enforcement partners, and deterring bias-motivated crimes,” said Deputy Attorney General Rosenstein. “We will continue to work with our partners to prevent hate crimes and make all of our neighborhoods free from violence and fear.”
“Hate crimes are an attack on a fundamental principle of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice is committed to using every tool at its disposal to combat this type of violence and the grants announced today at the law enforcement roundtable will help strengthen our ability to identify and prosecute these violent hate crimes.”
“In all facets of our work, we must ensure that we understand the needs of law enforcement. That is why it is my top priority to ensure that we are always listening to the field, rather than telling the field what it needs,” said COPS Director Phil Keith. “Through programs like today’s roundtable and the extension of Collaborative Reform technical assistance to hate crimes, we can offer the support and assistance that state, local, and tribal law enforcement agencies request to improve their own hate crimes efforts.”
“Crimes motivated by racial, ethnic, sexual or religious animus carry a particularly vile moral quality, but because they are defined, recorded and investigated differently across states, we do not fully comprehend their impact on public safety,” said Dummermuth. “This study will shed new light on the prevalence and character of hate offending in the United States, and even better, it will show us what policies and practices are working to solve these crimes, bring perpetrators to justice and deliver support to victims.”
The Department is committed to enforcing federal hate crimes statutes, including the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act of 2009 (HCPA), which allow the Department to prosecute certain crimes that are committed because of the actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity, or disability of any person. The day and a half long law enforcement roundtable joins over fifty law enforcement executives from agencies around the country to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. The roundtable was designed to spur discussions between colleagues about challenges to hate crimes data collection, practical tips on overcoming barriers, and strategies to most efficiently track and prosecute perpetrators of hate crimes nationwide. A report will be issued after the roundtable summarizing the discussion of best practices for law enforcement seeking to improve their agencies’ investigation and reporting of hate crimes.
The multi-phase study, funded by the National Institute of Justice (NIJ) in the Department’s Office of Justice Programs, will provide detailed data about hate crimes, analyze local policies that impact hate crime reporting, and identify successful investigation and prosecution strategies. The study will survey 3,000 law enforcement agencies to collect information on rates of reported hate crime incidents, gather profiles of hate crime offenders, and capture challenges in defining, investigating and documenting hate crimes. The second follow-up phase will survey 250 prosecutors about cases that ended in arrest. The study will run through 2021 and include a report on the findings.
The extension of technical assistance relating to hate crimes by the Collaborative Reform Technical Assistance Center, a partnership with the International Association of Chiefs of Police (IACP), and eight leading law enforcement leadership and labor organizations, will allow law enforcement to build and improve their hate crimes investigation and reporting practices.
The Department has created and launched a number of training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits. More information about the Department’s hate crimes efforts, along with a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available on a new DOJ webpage, launched today: www.justice.gov/hatecrimes.
In addition to today’s award, OJP provides indirect support for hate crime programs through several OJP components, such as the Bureau of Justice Statistics, the Bureau of Justice Assistance and the Office for Victims of Crime. More information about OJP’s programs is available at: www.ojp.gov.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Convicted Mississippi Doctor Ordered to Forfeit Assets for Bribery of Former Corrections CommissionerRead the Press Release
Jackson, Miss – Chief United States District Judge Daniel P. Jordan III today ordered convicted felon, Dr. Carl Reddix, 60, of Jackson, to forfeit bank accounts, brokerage accounts, and land to satisfy a judgment of $1,266,438.00 in illegal proceeds he derived from paying bribes and kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps, announced United States Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
"Dr. Reddix discovered today that the arm of justice is long and unrelenting. Today’s order should serve as a warning to others who may think a life of crime is profitable and that you can hide your assets. It is not profitable and you cannot hide. We will find you, you will be prosecuted, and your illegal money will be taken from you in order to make victims whole," said U.S. Attorney Hurst
Reddix was sentenced on December 15, 2017, to serve 72 months in federal prison followed by 2 years of supervised release. He was also fined $15,000 and ordered to forfeit $1,266,438.00. Efforts of the Department of Justice to seek assets to satisfy this Judgment led to Judge Jordan’s order.
Reddix was a part owner of an inmate health care services provider known as Health Assurance, LLC. Reddix began paying bribes and kickbacks to Epps in 2012 to obtain contracts for Health Assurance to provide inmate health care services at East Mississippi Correctional Facility and Marshall County Correctional Facility. In 2013, Health Assurance obtained an additional contract to provide inmate health care services at Wilkinson County Correctional Facility. Reddix paid monthly bribes and kickbacks to Epps for these contracts and other potential contracts. When the scheme was discovered, Reddix had paid Epps a total of $187,500.00 in kickbacks. In return, Reddix and his company, Health Assurance, had obtained over 22 million dollars in contracts with the MDOC resulting in a $1,266,438.00 benefit to Reddix.
Reddix is currently serving his sentence in Butner, North Carolina.
Controller Pleads Guilty to Filing False Tax ReturnRead the Press Release
DENVER – Stuart M. Jameson, of Colorado Springs, Colorado pled guilty earlier in the month before U.S. District Court Judge Raymond P. Moore to filing a false tax return, announced U.S. Attorney Jason R. Dunn, Internal Revenue Service – Criminal Investigation Special Agent in Charge Steven Osborne, and FBI Denver Division Acting Special Agent in Charge Janeen Diguiseppi. Jameson was charged by information on August 30, 2018, and is scheduled to be sentenced by Judge Moore on January 7, 2019.
According to facts contained in the information and plea agreement, Jameson worked as the Controller at Faricy Ford/Lincoln car dealership between 2006 through mid-November 2017. As part of his duties as controller, Jameson was in charge of the dealership’s payroll. During most pay periods from 2006 through November 2017, Jameson paid himself an amount greater than he was entitled.
When the dealership detected the overpayments, it was determined that Jameson embezzled approximately $400,000 between 2006 and 2017. An outside audit determined the dealership was short $419,751. Additionally, Jameson did not report this additional income on his federal income tax returns.
As part of his plea agreement, Jameson agrees to pay restitution of $419,751 to Faricy Ford/Lincoln car dealership. Jameson also agrees to pay restitution to the IRS of $53,669.
Willfully filing a false federal income tax return carries a penalty of not more than 3 years in prison and a fine of up to $250,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Weber.
CRS Collaborates on Creation of DOJ Hate Crimes WebsiteRead the Press Release
The Community Relations Service (CRS) collaborated with other components of the Department of Justice (DOJ) to develop the Hate Crimes Website, which officially launched on Monday, October 29, 2018.
The new website provides a centralized portal for the DOJ’s hate crimes resources for victims, law enforcement, researchers, civil rights groups, media, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all the DOJ components working on hate crimes.
Combatting hate crimes is one of the Department’s highest priorities. The Department combats hate crimes through prevention, education, outreach, data collection, and support for state, local, and tribal law enforcement. In addition to CRS, the DOJ components involved in the creation of the website are the Civil Rights Division, Criminal Division, Executive Office for United States Attorneys, Federal Bureau of Investigation, Office of Community Oriented Policing Services, and Office of Justice Programs.
We encourage you to visit the hate crimes website to learn more about how you can help prevent and respond to hate crimes in your community. For more information, please refer to the following DOJ press releases:
Justice Department Releases Update on Hate Crimes Prosecutions and Announces Launch of New Hate Crimes Website (October 29, 2018)
Deputy Attorney General Rod J. Rosenstein Delivers Remarks at a Law Enforcement Roundtable Regarding Improving Identification and Reporting of Hate Crimes (October 29, 2018)
Deputy Attorney General Rosenstein Announces Funds and Technical Assistance Resources to Help Law Enforcement Investigate and Prosecute Hate Crimes at Law Enforcement Roundtable (October 29, 2018)
Bronx, New York Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that ANDRE FIELDS a/k/a “Coop,” a/k/a “Pops,” a/k/a “Boss,” a/k/a “Unc,” 52, of Bronx, New York, pled guilty in U.S. District Court in Bangor, Maine to conspiracy to distribute in excess of one kilogram of heroin and in excess of 280 grams of cocaine base (“crack”). The charge carries a ten-year mandatory minimum prison term and up to life imprisonment, a $10,000,000 fine, and at least five years of supervised release.
According to court records, between January 2015 and December 2017 Fields conspired with others to distribute in excess of one kilogram of heroin and in excess of 280 grams of cocaine base in central Maine. Fields had access to out-of-state sources for the drugs. Members of the conspiracy, including the defendant, would transport the drugs back to Maine. Once here, the defendant and others working at his direction would weigh out and repackage the drugs that were then distributed to central Maine area drug dealers and addicts for further distribution and use. The defendant and others would distribute the drugs from central Maine area residences and hotel rooms where he and others would stay.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Maine Drug Enforcement Agency, the Kennebec County Sheriff’s Office, the Augusta Police Department, and the Waterville Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Bitcoin Dealer Pleads Guilty & Agrees to Forfeit Ill-Gotten GainsRead the Press Release
NEWS RELEASE SUMMARY – October 29, 2018
SAN DIEGO – Jacob Burrell Campos pled guilty today in federal court to operating an unlicensed money transmitting business, in connection with his sale of hundreds of thousands of dollars in Bitcoin to over 1,000 customers throughout the United States from January 2015 to April of 2016.
According to the terms of his plea agreement, Burrell admitted to operating a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, and without implementing the required anti-money laundering safeguards. According to the plea agreement, Burrell advertised his business on Localbitcoins.com, and communicated with his customers through email and text messages, often using encrypted applications. He negotiated a commission of 5% above the prevailing exchange rate, and accepted cash in person, through nationwide ATMs, and through MoneyGram. Burrell admitted that he had no anti-money laundering or “know your customer” program, and performed no due diligence on the source of his customers’ money.
Burrell admitted that, at first, he purchased his supply of Bitcoin through a U.S.-based, regulated exchange, but his account was soon closed because of the large number of suspicious transactions. He then resorted to a cryptocurrency exchange in Hong Kong, where he purchased a total of $3.29 million in Bitcoin, in hundreds of separate transactions, between March 2015 and April 2017.
Finally, Burrell admitted that he exchanged his U.S. currency, which he kept in Mexico, with Joseph Castillo, a San Diego-based precious metals dealer. Between late 2016 and early 2018, Burrell and others imported over $1 million in U.S. currency on almost a daily basis. Burrell admitted that they did this in amounts slightly below the $10,000 reporting requirement. Castillo pled guilty to making a false statement on his federal tax returns, and is awaiting sentencing on December 13, 2018.
According to his plea agreement, Burrell agreed to forfeit to the United States a total of $823,357.00.
“Unlicensed money transmitting businesses, especially those operating at or near the border, pose a serious threat to the integrity of the US banking system, and provide an ‘open door’ for criminals to utilize such businesses to launder the proceeds of their illicit activities,” said U.S. Attorney Adam Braverman. “The Department of Justice will continue to investigate and prosecute all individuals and businesses that seek to evade the licensing and anti-money laundering requirements under federal law.”
Burrell will be sentenced on February 11, 2019, and faces a maximum of five years’imprisonment.
DEFENDANT Case Number 18CR3554-H
Jacob Burrell-Campos Age: 21 Rosarito, Baja California, Mexico
Count 1: Conducting an unlicensed money transmitting business, 18 USC 1960.
Statutory maximum: 5 years prison, $250,000 fine.
AGENCIES
Homeland Security Investigations, Internal Revenue Service, Postal Inspection Service
Berkeley County man sentenced for heroin chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Ross Valentine, of Martinsburg, West Virginia, was sentenced today to 41 months incarceration for heroin distribution, United States Attorney Bill Powell announced.
Valentine, age 35, pled guilty one count of “Aiding and Abetting Possession with Intent to Distribute Heroin” in June 2018. Valentine admitted to possessing and distributing heroin in September 2017 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Douglas Mills, of Hedgesville, West Virginia, was sentenced today to probation for cocaine distribution, United States Attorney Bill Powell announced.
Mills, also known as “D,” age 27, pled guilty to one count of “Distribution of Cocaine Base” in July 2018. Mills admitted to selling cocaine in Berkeley County in August 2015.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police Bureau of Criminal Investigations, the Jefferson County Sheriff’s Office, and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bakersfield Man Sentenced for Illegally Possessing A FirearmRead the Press Release
FRESNO, Calif. — Ladaireus Jones, 25, of Bakersfield, was sentenced by United States District Dale A. Drozd today to more than four and a half years in prison and three years of supervised release for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jones, a documented member of a Bakersfield criminal street gang known as the West Side Crips, possessed a loaded, stolen .38 caliber revolver on October 25, 2017. The complaint filed in this case alleged that telephone calls intercepted pursuant to a court-authorized federal wiretap indicated that Jones and another individual possessed weapons located in a backpack at the scene of a car accident. Officers responded to the scene and seized two firearms from the backpack, including the .38 caliber revolver. Jones later pleaded guilty to possessing that weapon.
According to the indictment and Jones’s subsequent plea agreement, at the time he possessed the revolver, Jones had been convicted of two felonies in Kern County, a 2009 conviction for Assault with Force Likely to Produce Great Bodily Injury, and a 2012 conviction for being felon in possession of a firearm. Consequently, he had been prohibited from possessing firearms or ammunition.
This case is the product of an investigation of the West Side Crips by the Federal Bureau of Investigation, the California Department of Justice, the Bakersfield Police Department and the Drug Enforcement Administration. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.
Aux Sable Liquid Products Agrees to Take Measures to Resolve Clean Air Act Violations at its Natural Gas Processing Facility in Morris, IllinoisRead the Press Release
Today, the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement that requires Aux Sable Liquid Products LP (Aux Sable) to strengthen air pollution controls and reduce air pollution at its natural gas processing facility, located southwest of Chicago. The facility, which is the largest natural gas processing plant in the United States, is located within the Chicago Non-Attainment Area for ground-level ozone, which includes the greater Chicago area and the northwest Indiana counties of Lake and Porter.
Under the terms of the settlement, Aux Sable will pay a $2.7 million civil penalty and at least $4.5 million on improvements to pollution controls and projects to reduce volatile organic compounds (VOCs) and nitrogen oxide emissions (NOX).
“Today’s settlement appropriately enforces and resolves significant violations of the Clean Air Act by Aux Sable,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The important upgrades at Aux Sable facility – required by today’s action -- will improve air quality in the Chicago area. The Department of Justice continues to work with EPA to protect clean air for all Americans.”
“The settlement reached today will result in cleaner air for communities in the Greater Chicago area by reducing emissions of pollutants that are ozone precursors,” said Assistant Administrator Susan Bodine for EPA’s Office Of Enforcement and Compliance Assurance. “This work required under the settlement will not only achieve compliance with the Clean Air Act, it also will advance EPA’s goal of reducing the number of nonattainment areas in the country.”
This settlement addresses alleged violations of the Clean Air Act’s New Source Review Rules for excess fugitive emissions of VOCs. The Department of Justice and EPA allege that VOC emissions from equipment leaks at the facility have significantly exceeded the applicable thresholds for such emissions since the facility began operating in 2000, and Aux Sable has therefore never complied with the New Source Review requirements, including the lowest achievable emission rate and emission offset standards.
In this settlement, Aux Sable has agreed to take measures to reduce its emissions of VOCs, including (1) expanding its fugitive emission leak detection and repair program to cover thousands of fittings at its facility; (2) complying with a more stringent leak threshold for making repairs to valves throughout the facility; (3) installing state-of-the-art “low-emissions” technology to replace or repack older leaking valves; (4) achieving 99 percent control efficiency of VOC emissions at the facility’s off-gas incinerators; (5) complying with flare operation monitoring requirements; and (6) installing ultra-low oxides of nitrogen (NOx) burner technology at the facility’s two process heaters. EPA estimates that Aux Sable will spend at least $1.5 million in capital costs and at least $250,000 per year in incremental operational and maintenance costs to complete these improvements.
Additionally, Aux Sable has addressed its noncompliance with the Illinois volatile organic material emission trading program by purchasing from the Illinois EPA the necessary VOC emission allotments and required emission excursion compensation to cover VOC emission-allotment deficiencies from 2001 to 2015, at a cost of more than $156,000. Aux Sable also submitted to Illinois corrections to past annual emission reports.
To mitigate the environmental harm caused by its Clean Air Act violations, Aux Sable has agreed to implement mitigation projects to reduce VOC and NOX emissions at locomotive switchyards located in the Chicago Area, which will include repowering switcher locomotives and installing switcher locomotive idle-reduction technology. Aux Sable will spend $3 million to implement these projects.
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. 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 Illinois 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/aux-sable-liquid-products-clean-air-act-settlement.
Anderson Man Pleads Guilty in Federal Court to Using Weapons of Mass DestructionRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Wesley Dallas Ayers, 27, of Anderson, South Carolina, pled guilty in federal court to using, attempting to use, and threatening to use weapons of mass destruction; possession and discharge of a firearm in furtherance of a violent crime; and use of an explosive device during the commission of a felony.
Ayers admitted that he constructed, and then placed, three explosive devices in various parts of Anderson County between January 24, 2018, and February 24, 2018. A device placed by Ayers on January 30, 2018, at the intersection of Travis and Martin Roads, in Anderson County, detonated and injured one individual. The other two devices, which Ayers also placed in or near area roadways, were intercepted and rendered safe by federal, state, and local law enforcement agencies.
In that same timeframe, Ayers placed three hoax devices, which resembled explosives but did not contain any blasting agent. With some of those devices, the defendant left threatening messages that more, and more powerful, devices were to come.
Ayers was arrested after an exhaustive month-long investigation, with the combined efforts of the Federal Bureau of Investigation, Alcohol, Tobacco, Explosives, and Firearms, Anderson County Sheriff’s Office, and numerous law enforcement agencies from around the State of South Carolina. DNA and other forensic evidence associated Ayers with the various devices. Additionally, a search of his property produced numerous items consistent with the manufacture of the same.
Ayers faces a mandatory sentence of at least 20 years in federal prison, and up to a maximum of life imprisonment, in addition to a fine of $250,000 and up to 3 years of court-ordered supervision.
The case was investigated by the Federal Bureau of Investigation in conjunction with numerous other federal, state, and local law enforcement agencies. Assistant United States Attorney D. Josev Brewer of the Greenville office is prosecuting the case.
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11 Defendants Charged in Federal Court with Committing Narcotics and Firearms Offenses in the BronxRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Keith Kruskall, Acting Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), today announced the unsealing of an Indictment and a Complaint charging a total of 11 defendants with committing various narcotics and firearms offenses in the Bronx, New York.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Today’s charges target multiple forms of alleged drug dealing and the gun violence that accompanies the drug trade. From feeding the opioid crisis through the sale of Oxycodone, to pouring crack into our streets, to possessing and firing guns to secure drug territory, the alleged conduct of these 11 defendants fueled a cycle of addiction and violence. The joint investigative work of the NYPD and the DEA leading to today’s arrests reflects the ongoing commitment of federal and local authorities to break this cycle.”
DEA Acting Special Agent-In-Charge Keith Kruskall said: “DEA supports the NYPD in their efforts to protect New Yorkers from drug traffickers and the associated violence. This investigation identified and arrested crew members who allegedly pushed oxycodone, crack, and marijuana into user’s hands, threatening neighbors with drug addiction and gun violence.”
NYPD Commissioner James P. O’Neill said: “The NYPD is relentless in our commitment to fight crime and keep all New Yorkers safe. By directly answering community concerns and enhancing our solid working relationships with the Southern District and the DEA, we are consistently able to remove drug dealers from our neighborhoods and avert the violence so often associated with their criminal activities.”
As alleged in the Indictment and Complaint unsealed today in Manhattan federal court[1]:
Between 2015 through 2018, JENCY DIAZ, a/k/a “JC,” KEVIN MORA, a/k/a “Jaffy,” CERENE MAYES, a/k/a “Mama,” HOWARD AYLLON, a/k/a “Kapo,” MYRON DECOSTA, and CARLA DECOSTA, conspired to sell Oxycodone.
In 2013 and 2014, KEVIN MORA, ARTURO MORA, a/k/a “Etho,” and WHYKEE JOHNSON, conspired to sell crack cocaine and marijuana and possessed firearms in furtherance of that conspiracy, some of which were brandished and discharged.
Between April 2018 and the present, ALAN ARIAS, WALTHER CASTILLO, a/k/a “Walter,” and RUDY DELGADO, conspired to sell more than 280 grams of crack cocaine in and around the Bronx, New York.
Seven defendants were taken into federal custody in the Bronx this morning. Those defendants will be presented in Manhattan federal court today before U.S. Magistrate Judge Sarah Netburn. CARLA DECOSTA was arrested in Delaware this morning and will be presented in federal court there today. JOHNSON was already in federal custody and will be arraigned at a future date. Defendants ARTURO MORA and ALAN ARIAS remain at large.
* * *
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman praised the outstanding investigative work of the NYPD and the DEA. Mr. Berman also thanked the Bronx District Attorney’s Office for its assistance in the case.
These cases are being handled by the Office’s Violent and Organized Crime Unit and Narcotics Unit. Assistant United States Attorneys Frank Balsamello, Maurene Comey, and Adam Hobson are in charge of the prosecutions.
The charges contained in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Jency Diaz, et al., 18 Cr. 749
United States v. Alan Arias, et al., 18 Mag. 9136
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute Oxycodone.)
JENCY DIAZ,
a/k/a “JC” (27 years old)
KEVIN MORA,
a/k/a “Jaffy” (30 years old)
CERENE MAYES,
a/k/a “Mama” (59 years old)
HOWARD AYLLON,
a/k/a “Kapo” (30 years old)
MYRON DECOSTA (39 years old)
CARLA DECOSTA (45 years old)
20 years in prison
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute crack cocaine.)
KEVIN MORA,
a/k/a “Jaffy”
ARTURO MORA,
a/k/a “Etho” (29 years old)
WHYKEE JOHNSON
20 years in prison
Possession and discharge of a firearm in furtherance of a drug trafficking crime
KEVIN MORA,
a/k/a “Jaffy”
ARTURO MORA,
a/k/a “Etho”
WHYKEE JOHNSON (32 years old)
Life in prison
Mandatory minimum: ten years in prison, to be imposed consecutively to any other sentence
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
ALAN ARIAS (25 years old)
WALTHER CASTILLO,
a/k/a “Walter” (33 years old)
RUDY DELGADO (33 years old)
Life in prison
Mandatory minimum: 10 years in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, as well as the descriptions of the Indictment and the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
10 Defendants Charged in White Plains Federal Court with Participating in A Narcotics Conspiracy in Sullivan CountyRead 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 Division of the Federal Bureau of Investigation (“FBI”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), Robert Mir, the Chief of the Village of Monticello Police Department, and Michael A. Schiff, the Sullivan County Sheriff, announced the unsealing of an Indictment on October 26 charging a total of 10 defendants with participating in a narcotics conspiracy in Sullivan County, New York.
As alleged in the Indictment unsealed last Friday in White Plains federal court and a Complaint that was previously filed in the same case[1]:
In at least 2017 and 2018, JHOAN ADAMES, a/k/a “Chelo,” 29, ROLANDO NIEVES, a/k/a “Rolo,” 31, JASON NIEVES-PINO, 27, JOSE NIEVES-HERRERA, 49, JOSE RUBERT, 52, PERVIS MARCUS, 56, JUSTIN FABRICANT, 30, ANICASIO HERNANDEZ, a/k/a “Nick,” 40, OSVALDO MANGUALBONET, 47, FRANK VELEZ, a/k/a “Frankie,” 49, conspired to sell narcotics. In particular, ROLANDO NIEVES, JASON NIEVES-PINO, JOSE NIEVES-HERRERA, JOSE RUBERT, and PERVIS MARCUS, conspired to sell 280 grams or more of crack cocaine and 500 grams or more of cocaine. JHOAN ADAMES and FRANK VELEZ conspired to sell 280 grams or more of crack cocaine, and JUSTIN FABRICANT, ANICASIO HERNANDEZ, and OSVALDO MANGUALBONET conspired to sell 500 grams or more of cocaine. Members of the conspiracy distributed cocaine and crack cocaine in different locations in Sullivan County, New York, including in the parking lot of an apartment complex in the Village of Monticello. During the course of this investigation, law enforcement purchased more than 280 grams of crack cocaine and more than 100 grams of powder cocaine from members of the conspiracy during controlled purchases.
* * *
Seven defendants were taken into federal custody last week. Those seven defendants were presented in White Plains federal court on Friday, October 26, before U.S. Magistrate Judge Paul E. Davison. Two additional defendants were previously arrested in August 2018. Defendant ADAMES remains at large.
A chart containing the names of the defendants charged in the Indictment, and the charges and maximum penalties they face, is attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI, the New York State Police, the Village of Monticello Police Department, and the Sullivan County Sheriff’s Department. Mr. Berman also thanked the Sullivan County District Attorney’s Office and the Orange County Sheriff’s Department for their assistance in the case.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Samuel Raymond and Maurene Comey are in charge of the prosecution.
The charges contained in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
JHOAN ADAMES
ROLANDO NIEVES
JASON NIEVES-PINO
JOSE NIEVES-HERRERA
JOSE RUBERT
PERVIS MARCUS
FRANK VELEZ
Life in prison
Mandatory minimum: 10 years in prison
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.)
ROLANDO NIEVES
JASON NIEVES-PINO
JOSE NIEVES-HERRERA
JOSE RUBERT
PERVIS MARCUS
JUSTIN FABRICANT
ANICASIO HERNANDEZ
OSVALDO MANGUALBONET
40 years in prison
Mandatory minimum:
5 years in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and Complaint, as well as the descriptions of the Indictment and Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
28 October 2018
Sioux Falls Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of conspiring to distribute 500 grams or more of methamphetamine was sentenced on October 22, 2018, by U.S. District Judge Karen E. Schreier.
Aluong Hakim Aluong, a/k/a “Double A,” a/k/a “Double,” age 34, was sentenced to 260 months in prison, to be followed by 10 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund. Because Aluong had been previously convicted of a drug felony, his mandatory minimum sentence of 120 months in prison and 5 years of supervised release was doubled.
Aluong was indicted for Conspiracy to Distribute a Controlled Substance and Felon in Possession of a Firearm by a federal grand jury on November 7, 2017. He pled guilty to the drug conspiracy on July 27, 2018. Although the firearm charge was dismissed, it was considered in determining his sentence.
Aluong distributed over 500 grams of methamphetamine to others for further distribution in the Sioux Falls area.
This case was investigated by the Sioux Falls Police Department, the Minnehaha County Sheriff’s Office, the Sioux Falls Area Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Aluong was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Paul Frost, age 46, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, at least 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 15, 2018, Frost knowingly and intentionally possessed with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. The Indictment further alleges that on both April 3, 2017, and June 15, 2018, Frost, being an unlawful user of a controlled substance, did knowingly possess firearms.
The charges are merely accusations and Frost is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Frost was released on bond pending trial. A trial date has not been set.
Lower Brule Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Vincent Battese, age 32, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that October 5, 2018, Battese, who had been previously convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess and receive a firearm.
The charge is merely an accusation and Battese is presumed innocent until and unless proven guilty.
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 investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency and by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Battese was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Thompson Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Rain Blaine, age 18, was indicted on August 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 24, 2018, Blaine unlawfully assaulted an individual with a knife and said assault resulted in serious bodily injury to the victim.
The charges are merely accusations and Blaine is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Blaine was released on bond with conditions pending trial. A trial date has not been set.
Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Marilyn Ducheneaux, age 21, was indicted on October 16, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison, including a mandatory minimum of 10 years in federal prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than on January 1, 2016, and continuing to October 16, 2018, in South Dakota, Ducheneaux knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ducheneaux was released on bond pending trial. A trial date has not been set.
Bridgewater Man Sentenced for Insurance FraudRead the Press Release
United States Attorney Ron Parsons announced that a Bridgewater, South Dakota, man convicted of Insurance Fraud was sentenced on October 22, 2018, by U.S. District Judge Karen E. Schreier.
Steven Dean Krier, age 57, was sentenced to 2 months in federal prison, followed by 30 months of supervised release, and ordered to pay $54,625.50 in restitution to Dakota Bail Bonds, as well as a special assessment of $100 to the Federal Crime Victims Fund.
Krier was indicted by a federal grand jury on May 9, 2017. He pled guilty on July 27, 2018.
The conviction stemmed from incidents between July 7, 2014, and May 31, 2015, when Krier was an employee of Dakota Bail Bonds of Sioux Falls. Krier sold bail bonds on behalf of Dakota Bail Bonds, but did not turn over the premiums collected on over 50 bail bonds that he sold. The bonds were guaranteed by Financial Casualty and Surety, Inc. based in Houston, Texas. As a result, Krier willfully misappropriated over $50,000 of the funds and premiums of Dakota Bail Bonds and Financial Casualty and Surety.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Krier has been allowed to self-report to the custody of the U.S. Marshals Service by October 29, 2018.
27 October 2018
United States Attorney Mike Stuart Implements Election Day Program to Stop Fraud and Protect Voting RightsRead the Press Release
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced today that Assistant United States Attorney (AUSA) Philip Wright 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 Wright has been appointed to serve as the District Election Officer (DEO) for the Southern District of West 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.
“Voting is the most fundamental right to the preservation of liberty,” said United States Attorney Stuart. “The sanctity of the vote must be protected. 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 Stuart stated that AUSA/DEO Wright will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 1-800-659-8726 ext. 12381 or 304-345-2200.
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 304-346-2300.
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 Stuart 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.”
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Statement on Filing of Federal ChargesRead the Press Release
PITTSBURGH – Scott W. Brady, United States Attorney for the Western District of Pennsylvania, and Robert Jones, Special Agent in Charge of the Federal Bureau of Investigation, issued the following statement today in response to media inquiries:
"On Saturday, October 27, 2018, at 8:05 p.m., U.S. Magistrate Judge Robert C. Mitchell signed a criminal complaint charging Robert Bowers of Baldwin, Pa., with 29 counts setting forth federal crimes of violence and firearms offenses. The crimes of violence are based upon the federal civil rights laws prohibiting hate crimes. The FBI in Pittsburgh is leading the investigation."
The federal complaint alleges that Bowers committed the following crimes on or about October 27, 2018, in the Western District of Pennsylvania:
• Eleven counts of Obstruction of Exercise of Religious Beliefs Resulting in Death (18 U.S.C. §§ 247(a)(2) and 247(d)(1))
• Eleven counts of Use of a Firearm to Commit Murder During and in Relation to a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A) and 924(j)(1)
• Four counts of Obstruction of Exercise of Religious Beliefs Resulting in Bodily Injury to a Public Safety Officer 18 U.S.C. §§ 247(a)(2) and 247(d)(3))
• Three counts of Use and Discharge of a Firearm During and in Relation to a Crime of Violence (18 U.S.C. §§ 924(c)(1)(A) and 924(iii))
Link to Signed Bowers ComplaintAttorney General Sessions Delivered the Following Statement About Today’s Tragedy in PittsburghRead the Press Release
Attorney General Sessions today issued the following statement on the horrific tragedy in Pittsburgh: “Hatred and violence on the basis of religion can have no place in our society,” Attorney General Jeff Sessions said. “Every American has the right to attend their house of worship in safety. Today 11 innocent people were suddenly and viciously murdered during religious services and several law enforcement officers were shot. These alleged crimes are reprehensible and utterly repugnant to the values of this nation. Accordingly, the Department of Justice will file hate crimes and other criminal charges against the defendant, including charges that could lead to the death penalty.
“It has been an important week for us to show gratitude for the hard work of our law officers around the country. And today was no exception. I want to thank the FBI, ATF, Pittsburgh police, and especially the heroic officers who were so quick to respond to the shooting, including the multiple officers who were shot. These officers ran to danger to save others, which reflects the highest traditions of policing in this country. There can be no doubt that they saved lives today.
“The Department of Justice will continue to support our state and local partners and we will continue to bring the full force of the law against anyone who would violate the civil rights of the American people.”