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Friday 14 September 2018
Two Sentenced on Tax ChargesRead the Press Release
PITTSBURGH, PA - A resident of Belle Vernon and a resident of Greensburg, Pennsylvania, have been sentenced in federal court on their convictions of conspiracy and filing a false tax return, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed sentences on Robert Richards and Jennifer Morrison. Richards was convicted of one count of filing a false income tax return, and was sentenced to 4 years’ probation, the first 180 days of which are to be served under home detention. Morrison was convicted of one count of conspiracy to defraud the United States, and was sentenced to two years’ probation, the first 90 days of which are to be served under home detention. Additionally, both Richards and Morrison were ordered to jointly pay $141,732 in restitution and interest to the Internal Revenue Service (IRS), in monthly amounts no less than 10 percent of their individual earnings.
According to information presented to the court, Richards and Morrison, conspired to defraud the United States and the IRS during the period January 2006 to April 2010, by impeding the IRS in the collection of income taxes due from the operation of Richards’ used car dealerships in Greensburg, Jeannette, and McKeesport. Richards secreted his income from the IRS by placing his dealerships and more than 30 business bank accounts, through which he funneled proceeds of his business, in the names of nominee owners. One such nominee was Jennifer Morrison, who handled all of the business bookkeeping and who worked in tandem with Richards to funnel more than $1 million in gross business receipts through the nominee accounts. Richards and Morrison extracted funds from the business accounts for personal expenditures.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
Pennsylvania State Police and the Internal Revenue Service conducted the investigation that led to the successful prosecution of Richards and Morrison.
Two North Sound Men Indicted for Trafficking FentanylRead the Press Release
Two men were charged today in a multi-count indictment for their scheme to traffic fentanyl disguised as fake oxycodone pills in Snohomish, Skagit and Whatcom Counties, announced U.S. Attorney Annette L. Hayes. BRADLEY WOOLARD, 39, of Arlington is charged in all five counts of the indictment alleging drug distribution and illegal firearms possession. GRIFFIN THOMPSON, 30, of Bellingham is charged in two of the counts: conspiracy and possession of fentanyl with intent to distribute. THOMPSON was arrested last night and will appear in U.S. District Court at 2:00 today. WOOLARD was arrested as he attempted to cross into the U.S. from Mexico on September 1, 2018. He remains in custody in San Diego and will likely make his appearance in the Western District of Washington later this month.
“Fentanyl is an incredibly potent and dangerous drug that has been linked to overdose deaths across the country,” said U.S. Attorney Annette L. Hayes. “To make matters worse, the fentanyl in this case has been pressed into pills meant to look like the prescription drug oxycodone. Along with all the usual and terrible risks associated with illegal drugs, these pose the added problem of appearing to be one thing – oxycodone – when they are something altogether different, and even more dangerous.”
According to records filed in the case, on July 27, 2018, acting on a tip, law enforcement observed THOMPSON as he traveled from Bellingham to WOOLARD’s Arlington home. After THOMPSON spent a short time at the house, he began the return drive to Bellingham. After a traffic stop, a drug detection dog alerted to THOMPSON’s car and investigators found three bags each containing 1,000 fake oxycodone pills. THOMPSON also had more than $8,000 in cash.
Law enforcement obtained multiple court-authorized search warrants for WOOLARD’s home. On July 28, 2018, they found more than 10,000 fentanyl pills designed to look like 30 mg oxycodone prescription narcotic. The pills ultimately tested positive for fentanyl. The pills are pale blue in color and have “M” printed on one side and “30” on the other side. Over the course of multiple searches law enforcement seized $400,000 in cash from two safes, another $270,000 from behind the water heater and tool chest in the shop area, and an additional $200,000 hidden in the dishwasher. Additional searches turned up $110,000 in cash that had been hidden behind drywall in the house, along with jars of gold coins. Investigators also discovered a hidden room containing 29 firearms ranging from handguns to assault rifles, including three silencers. The room also contained a large amount of ammunition.
Based on the seized firearms, WOOLARD is charged with being a felon in possession of firearms due to his 2004 felony conviction in Island County for use of a building for unlawful drug activity. He is also charged with possession of firearms in furtherance of drug trafficking.
Conspiracy and possession of fentanyl with intent to distribute is punishable by a mandatory minimum ten years in prison and up to life in prison. Being a felon in possession of a firearm is punishable by up to ten years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five- year prison sentence that is in addition to the sentence for the drug trafficking activity.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation is being led by the Drug Enforcement Administration (DEA) with assistance from the Snohomish Regional Drug and Gang Task Force (SRDGTF) and the Whatcom County Drug and Gang Task Force.
The case is being prosecuted by Assistant United States Attorneys Kate Vaughan and Karyn Johnson.
Three Brothers Charged in Conspiracy to Distribute More than 20,000 Tablets of FentanylRead the Press Release
Assistant U. S. Attorney Orlando B. Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – September 14, 2018
SAN DIEGO – Jose Atalo Felix-Beltran, Arturo Felix-Beltran (U.S. citizens), and Osvaldo Felix-Beltran (U.S. resident) living in Indio, California, were arraigned in federal court today on charges that they conspired to distribute over 20,000 tablets of fentanyl. These three defendants are brothers who were arrested together on September 13, 2018, in El Centro, California,
According to a federal criminal complaint, these three brothers drove together to a restaurant located in El Centro, California, where they intended to sell 20,000 tablets of fentanyl to a purchaser who, unbeknownst to them, was an undercover Special Agent with the Drug Enforcement Administration. Two of the brothers attempted to flee the scene, but were apprehended following a brief foot chase. The third brother was not able to flee and, following a brief period of forcible resistance, was ultimately taken into custody.
This arrest followed a series of prior transactions where the brothers, together and at times alone, sold undercover DEA agents additional tablets of fentanyl.
At the brothers’ initial appearance in El Centro today before U.S. Magistrate Judge Ruth Bermudez Montenegro, the United States requested detention based on risk of flight. Judge Bermudez Montenegro scheduled a detention hearing for September 21, 2018 at 1:30 p.m. and a preliminary hearing for September 27, 2018 at 1:30 PM.
The fentanyl tablets that were to be sold to undercover agents on September 13, 2018 (depicted below), were tablets of fentanyl manufactured to look like 30mg tablets of oxycodone. The combined weight of the tablets seized from the three brothers on September 13, 2018, was approximately 2.23 kilograms of fentanyl (Schedule II). The retail street value of these fentanyl tablets is estimated to be $600,000.
“This is a significant seizure and I’m very happy that thousands of deadly pills will not make it to the streets,” said U.S. Attorney Adam Braverman. “But we are seizing fentanyl at an alarming rate. Despite our relentless efforts to interdict this dangerous drug and educate the community, people are still risking their lives. The next pill you take could very well be your last. Don’t do it.”
“We are at a cross road - We can either continue to let the drug cartels destroy American lives with deadly pills or we can commit to raising the intensity of our war against foreign criminals who profit from destroying American lives,” said DEA Special Agent in Charge Karen Flowers. “Drugs are deadly and fentanyl has changed the game. We are no longer dependent on the coca or the poppy plant. We can create chemicals to mimic whatever affect we desire. Our drugs are not Non-GMO certified. They are all engineered in a laboratory. They are cheap, easy to get and manufacture. That line of coke, no longer is just cocaine. That hit of smack is hyped up with fentanyl. Crystal is not in your dining room, it is in your arm. They are all potentially laced with a profit-induced additive called fentanyl. No one is strong enough to win that battle. It wins, you die.”
DEFENDANTS Case Number 18MJ10424
Jose Atalo Felix-Beltran, Age: 27 Indio, CA
Arturo Felix-Beltran Age: 30 Indio, CA
Osvaldo Felix-Beltran Age: 19 Indio, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances (Felony) – Title 21 U.S.C. § 841 and 846
Maximum penalty: Life imprisonment and $10,000,000.00 fine.
AGENCIES
Drug Enforcement Administration; (Imperial County and Riverside);
Imperial County Sheriff’s Office;
United States Border Patrol;
Imperial County Probation Department;
El Centro Police Department;
United States Customs and Border Protection;
Homeland Security Investigations;
Drug Enforcement Administration - San Diego Air-wing; and
United States Attorney’s Office
Imperial County District Attorney’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Texas Man Convicted of Tax EvasionRead the Press Release
A federal jury in the Western District of Texas convicted a San Antonio man today of three counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John F. Bash for the Western District of Texas.
According to court documents and evidence presented at trial, between October 2000 and December 2013, Robert Steven Powell evaded the payment of more than $900,000 in income taxes for the years 1999 through 2009. Powell evaded payment of his taxes by submitting false Internal Revenue Service (IRS) Forms W-4 to his employer, which falsely claimed that he was exempt from federal tax withholding. Powell also placed a house and recreational vehicle in nominee names and attempted to conceal his physical address from the IRS by obtaining identification documents from multiple states using false personal residence addresses.
Powell evaded the assessment of his 2010 and 2011 tax liabilities by maintaining, rather than correcting, false documents submitted to his long-term disability payer, on which he falsely claimed to be exempt from federal income tax withholding. Moreover, Powell did not file a tax return for those years, despite an obligation to do so. In total, the government’s evidence established a tax loss of more than $900,000.
Sentencing has not yet been scheduled. Powell faces a statutory maximum of five years in prison on each count, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney John Bash commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney Bill Harris and Trial Attorney Gregory Bailey of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and and its enforcement efforts may be found on the division’s website.
Tamarac Resident Sentenced to over 12 Years in Prison for Being a Felon Unlawfully in Possession of a Loaded FirearmRead the Press Release
Yesterday, a Tamarac resident was sentenced to over 12 years in prison by United States District Senior Judge James I. Cohn, for being a felon unlawfully in possession of a loaded firearm while being the subject of a Domestic Violence Protection Order.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Terry Cadet, 34, of Tamarac, Florida, previously pled guilty to being a felon in possession of a firearm and ammunition, while also being the subject of a Domestic Violence Protection Order that prohibited the defendant from possessing any firearm or ammunition. The defendant was sentenced to a total of 151 months in prison, to be followed by 3 years of supervised release.
According to the court record, on February 18, 2018, BSO Deputies responded to a domestic violence call in Hallandale Beach, Florida. During the course of Cadet’s arrest for domestic violence, BSO deputies discovered a 9mm pistol, with an obliterated serial number, secreted on Cadet’s person. The firearm was loaded with ten rounds of ammunition. At the time of his arrest, Cadet was a convicted felon and thereby prohibited from being in possession of a firearm or ammunition. In addition, a pending Domestic Violence Protection Order required Cadet to have previously surrendered any firearms and ammunition in his possession to the Broward County Sheriff’s Office.
This case stems from Project Safe Neighborhoods (PSN), a program that brings 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.
Mr. Greenberg commended the investigative efforts of the ATF and BSO in this matter. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information can 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.
Suspected Meth Trafficker Arrested with Huge Haul of Drugs in CarRead the Press Release
Assistant U. S. Attorney Michael Wheat (619) 546-8437
SAN DIEGO – Marisol Chavez-Morales was arrested and charged this week with methamphetamine trafficking in connection with the seizure of 156 pounds, one of the largest in recent history in the Southern District of California.
According to a complaint, a confidential source for the Drug Enforcement Administration identified the defendant as a methamphetamine trafficker who had “offered to sell large amounts of methamphetamine and heroin” to the source. At the direction of the agent, the source negotiated with Chavez, who agreed to provide 130 kilograms of meth, 6 kilograms of black tar heroin and 11 kilograms of “China White” heroin for $775,000. They agreed to meet at a San Diego restaurant on September 7, 2018, to exchange the drugs for money.
According to the complaint, DEA agents established surveillance at the restaurant and observed a silver Chevrolet Cruze enter in the parking lot and park next to the source’s vehicle. The driver of the Chevrolet Cruze was later identified as Chavez. Agents approached the vehicle and Chavez and discovered approximately 71.5 kilograms of methamphetamine in the trunk and the back seat. The methamphetamine was separated into different packaging and concealed within both a large tire located in the back seat and a large suitcase and small bag located in the trunk. Additionally, agents found multiple vacuum-sealed brick packages containing suspected heroin contained within several boxes located in the back seat of the Chevrolet Cruze. Chavez was arrested.
During a hearing yesterday, the defendant declined to seek bond. The next court date is scheduled for September 25.
Methamphetamine seized in Chavez’s car on Sept. 7.
DEFENDANTS Case Number 18MJ04833
Marisol Chavez-Morales Age: 34 Highland , CA
SUMMARY OF CHARGES
Possession with Intent to Distribute Methamphetamine – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Mandatory minimum 10 years, up to life imprisonment and $10 million fine.
AGENCY
U.S. Drug Enforcement Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Suburban Pittsburgh Man Brought Ohio Teen to Western PA to Produce Porn Videos that He Sold on the InternetRead the Press Release
PITTSBURGH, PA - A resident of Millvale, Pennsylvania, pleaded guilty in federal court to a charge of producing material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Daniel Kundrat, 35, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti. In connection with the guilty plea, the court was advised that on August 10, 2016, Kundrat traveled to Columbus, Ohio, picked up a 14-year old female with whom he had been communicating, and brought her back to his residence in Millvale where they engaged in sexual activity, including intercourse. Over the course of approximately three weeks, Kundrat persuaded and coerced her into producing videos of their sexual activity, which he then offered for sale, for a nominal sum, over the Internet. Kundrat acknowledged producing sexually explicit videos on August 22, 2016, which he distributed to an undercover law enforcement officer investigating the whereabouts of the minor female.
In addition to the guilty plea, Kundrat acknowledged his responsibility for the remaining counts of the indictment, charging him with traveling with intent to engage in illicit sexual conduct, interstate transportation of a minor for the purpose of engaging in unlawful sexual activity, distribution of material depicting the sexual exploitation of a minor, and possession of material depicting the sexual exploitation of a minor
Judge Conti scheduled sentencing for January 9, 2019, at 3:30 p.m. The law provides for a total sentence of not less than 15 and not more than 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Kundrat remains incarcerated pending sentencing.
Assistant United States Attorney Carolyn Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County Police Department, Allegheny County District Attorney’s Office, and Millvale Police Department conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood Marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Spokane Man Sentenced to 135 Months in Federal Prison for Defrauding Individuals in Connection with Advance Fee SchemeRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Derrick John Fincher, age 48, of Spokane, Washington, was sentenced today after being found guilty by a jury of Conspiracy to Commit Wire Fraud. Chief United States District Judge Thomas O. Rice sentenced Fincher to a 135-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Fincher was also ordered to pay $2,015,000 in restitution to his victims.
According to information disclosed during court proceedings, Fincher and his conspirators, Vassily Anthony “Tony” Thompson and John Patrick Nixon, orchestrated an advance fee fraud scheme that duped their victims into paying $160,000 to $1 million as “show money” or “insurance fees” to purportedly obtain loans of millions of dollars from the Export-Import Bank and other lending institutions. The victims sought these loans for legitimate business ventures the victims were pursing including: a celebrity golf tournament in Coeur d’Alene, Idaho, a movie studio in Montana, and a housing development near Charlotte, North Carolina. In reality, Fincher and his co-conspirators used the victim’s money to pay their own personal living expenses. The victims were defrauded out of $2,015,000.
Joseph H. Harrington said, “Posing as legitimate businessmen, the defendant and his conspirators used false promises to extract significant fees from their victims, but they provided nothing in return. Their promises of loans were empty as they were nothing more than a fraudulent scheme designed to line their pockets. The sentence imposed sends a strong message to others who may engage in similar conduct. I commend the FBI and the Special Agents for their tenacity and dedication in uncovering and investigating this advance fee scheme. The United States Attorney’s Office for the Eastern District of Washington will continue to prosecute aggressively white collar crime occurring in this District.”
The Court previously sentenced Fincher’s conspirators, Thompson and Nixon, to 9-year and 2-year terms of imprisonment, respectively, followed by a 3-year term of court supervision, and ordered them to pay $2,015,000 in restitution.
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation. This case was prosecuted by Scott Jones and Joseph Derrig, Assistant United States Attorneys for the Eastern District of Washington.
Sixteen MS-13 Gang Members Indicted for Assault and Drug TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno returned a five-count indictment Thursday against 16 members and associates of La Mara Salvatrucha (MS-13), Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott for the Eastern District of California announced.
The defendants are charged with assault with a dangerous weapon in aid of racketeering (two counts); conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, and marijuana; and being an alien in possession of a firearm (two counts). The defendants are:
- Denis Barrera-Palma, 24, of Mendota, charged with assault with a dangerous weapon (a pipe) and drug conspiracy;
- Mario Alexander Garcia, 31, of Mendota, charged with drug conspiracy;
- Francisco Lizano, 24, of Mendota, charged with drug conspiracy and alien in possession of a firearm;
- Jefferson Guevara, 19, of Los Angeles, charged with drug conspiracy;
- Ever Membreno, 18, of Mendota, charged with drug conspiracy;
- Edgar Torres-Amador, 21, of Mendota, charged with assault with a dangerous weapon (a pipe);
- Lorenzo Amador, 20, of Mendota, charged with assault with a dangerous weapon (a stabbing instrument) and drug conspiracy;
- Jose Wilson Navarette-Mendez, 21, of Mendota, charged with drug conspiracy;
- Denis Alfaro-Torres, 22, of Mendota, charged with drug conspiracy;
- Santos Bonilla, 26, of Mendota, charged with drug conspiracy;
- Henry Bonilla, 18, of Mendota, charged with drug conspiracy;
- Marvin Villegas-Segovia, 21, of Mendota, charged with drug conspiracy;
- Christian Hidalgo, 21, of Mendota, charged with drug conspiracy;
- Brenda Yajaria Morales, 25 of Mendota, charged with drug conspiracy and alien in possession of a firearm;
- Claudia Lizaola, 39, of San Bernardino, charged with drug conspiracy; and
- Oscar Reyes, 29, of Mendota, charged with drug conspiracy.
According to court documents, the defendants were members of MS-13 operating in Mendota and Los Angeles. MS-13 is a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. Its members span the nation and are active internationally as well. The charges allege that in May 2018, Denis Barrera-Palma and Edgar Torres-Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase their status within, MS-13. They further allege that in August 2018, Lorenzo Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase his status within, MS-13. The charges also allege that all defendants, except Amador-Torres, engaged in a conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and marijuana.
These charges follow initial charges filed via complaint in August 2018, after which most of the defendants were arrested on August 30. As set forth in the complaint, MS-13 allegedly engaged in street level drug sales to fund the gang’s various criminal activities. The gang allegedly would acquire drugs, parse them out among members with a directive that they sell the drugs within a certain period of time and return all proceeds to the gang. Those proceeds would then allegedly be used for a variety of purposes, including funding trips to obtain drugs or commit acts of violence, putting money on the books of incarcerated MS-13 members, sending money to MS-13 members in El Salvador, and obtaining more narcotics to sell. Among the alleged assaults gang members engaged in were the May 2018 pipe attack in front of an elementary school in Mendota and an August 12 stabbing in Mendota. Both events involved MS‑13 members assaulting individuals believed to be members of a rival gang to MS-13.
A number of the defendants are also facing charges in Fresno County Superior Court, including Denis Barrera-Palma and Ever Membreno, who are charged with conspiracy to commit murder with a gang enhancement.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers. Trial Attorney Marianne Shelvey of the U.S. Department of Justice’s Organized Crime and Gang Section, along with Assistant U.S. Attorneys Ross Pearson, Angela Scott, Kathleen Servatius and Kimberly Sanchez are prosecuting this and related cases. Senior Fresno County Deputy District Attorney Dennis Lewis is prosecuting related cases in Fresno County Superior Court.
All defendants, except Lorenzo Amador are in custody. Amador is at large and a warrant for his arrest is outstanding. The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
Six-Time Felon and Illegal Alien SentencedRead the Press Release
ALEXANDRIA, Va. – An El Salvadoran man with no fixed address, who has resided off and on in the United States for over 20 years, was sentenced yesterday to three years in prison for illegally re-entering the United States after deportation and subsequent to a felony conviction.
According to court proceedings, Juan Carlos Garcia Torres, 41, was detained on October 26, 2017, in Fairfax County, Virginia for his sixth DUI arrest. ICE took the defendant into custody on October 30, 2017. The defendant has never gained lawful status in the United States and he was convicted previously in 2011 in the Southern District of Texas for another felony illegal reentry offense. At the time of his arrest on October 26, the defendant had four prior DUI convictions in northern Virginia and six felony convictions overall.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Dennis M. Fitzpatrick and Christopher Cook are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-2.
Sentencings for September 4 - 10, 2018Read the Press Release
YUNIEL AGUILA DARIAS, 36, of Miami, Florida was sentenced by Federal District Court Judge Alan B. Johnson on September 4, 2018 for possession with intent to distribute methamphetamine. Daria was arrested in Benton City, Washington. He received forty-six months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay community restitution in the amount of $900.00. The Wyoming Division of Criminal Investigation and U.S. Department of Homeland Security investigated this case.
JOSE GUADALUPE MORALES-SIMON, 56, of Chilpancingo, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on September 10, 2018 for illegal re-entry of a previously deported alien into the United States. Morales-Simon was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The Office of Homeland Security Investigations investigated this case.
MAXIMILLIANO BERISTAIN-GALICIA, 26, of Calpulalpan, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on September 10, 2018 for illegal re-entry of a previously deported alien into the United States. Beristain-Galicia was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The Office of Homeland Security Investigations investigated this case.
CHRISTINE RENEE MOFFAT, 39, of Casper, Wyoming was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 6, 2018 for conspiracy to distribute methamphetamine. Moffat was arrested in Casper, Wyoming. She received seventy months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay community restitution in the amount of $500.00. The Casper Police Department and the Wyoming Division of Criminal Investigation investigated this case.
Second Man Charged in Alleged Plot to Hijack Internet DomainRead the Press Release
Rossi Lorathio Adams II, also known as “Rossi Adams” and “Polo,” from Cedar Rapids, Iowa, has been charged with one count of Conspiracy to Interfere with Commerce by Threats and Violence. The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.
The Indictment alleges that, in about June 2017, Adams conspired to obtain an Internet domain, doitforstate.com, from E.D., by extortion. That is, it is alleged that Adams conspired to obtain E.D.’s consent to obtain the domain by the wrongful use of force, violence, and fear.
Adams’s arrest follows the arrest, prosecution, and conviction of Sherman Hopkins, Jr. for Interference and Attempted Interference with Commerce by Threats and Violence. In June 2018, Hopkins was sentenced to the statutory maximum sentence, twenty years’ imprisonment, after he pled guilty to the crime of Interference and Attempted Interference with Commerce by Threats and Violence.
If convicted, Adams faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
Adams appeared today in federal court in Cedar Rapids and was released on bond. Adams’s next appearance is set for November 13, 2018.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Cedar Rapids Police Department. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-86-CJW. Follow us on Twitter @USAO_NDIA.
Second Former Glaxosmithkline Scientist Pleads Guilty to Stealing Trade Secrets to Benefit Chinese Pharmaceutical CompanyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Dr. Tao Li, 45, of San Diego, California, pleaded guilty today to conspiracy to steal trade secrets from GlaxoSmithKline (GSK) to benefit a Chinese pharmaceutical company named Renopharma.
Dr. Li and two of his friends, Dr. Yu Xue and Dr. Yan Mei, created Renopharma in Nanjing, China, supposedly to research and develop anti-cancer drugs. In reality, though, Renopharma was used as a repository of stolen information from GSK. Renopharma received financial support and subsidies from the government of China. At the time, Xue was employed as a scientist at GSK working on developing biopharmaceutical products. These products typically cost in excess of $1 billion to research and develop.
Xue sent a substantial number of GSK’s scientific documents, some of which contained GSK trade secrets, to Li and Mei at Renopharma in China. The data contained information regarding multiple biopharmaceutical products under development, GSK research data, and GSK processes regarding the research, development, and manufacturing of biopharmaceutical products. Xue typically sent the documents via e-mail or transferred the documents via portable electronic storage devices. Xue sent these documents to Li and Mei with the intention to convert GSK’s information for their economic benefit. On January 5, 2016, the FBI arrested Li and seized his computer on which they found a number of GSK documents containing trade secret and confidential information which he had received from Xue. Xue previously pleaded guilty on August 31, 2018.
“Dr. Li illegally stole trade secrets to benefit himself and his company, which was financed by the Chinese government,” said U.S. Attorney McSwain. “The lifeblood of companies like GSK is its intellectual property, and when that property is stolen and transferred to a foreign country, it threatens thousands of jobs here in America. Not only is this a serious crime, but it is literally a form of economic warfare against American interests. Such criminal behavior must be prosecuted to the fullest extent of the law.”
“GSK spends top dollar on research and development to bring new medications to market,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The theft of valuable trade secrets threatens products in the pipeline, to the detriment of both the company and the patients those drugs might help. It adds insult to injury when that know-how is diverted for the benefit of a foreign economic rival. The FBI is determined to stand up for the innovators creating products that improve people’s lives, by investigating and holding accountable those who would steal trade secrets.”
Tao Li is scheduled to be sentenced on January 4, 2018 before the Honorable Joel H. Slomsky. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and Katherine E. Driscoll.
Sanford Man Found Guilty of Bank RobberyRead the Press Release
Orlando, Florida – A federal jury has found Jurden Rogers (29, Sanford) guilty of bank robbery and brandishing a firearm during the bank robbery. Rogers faces a maximum penalty of life in federal prison. His sentencing hearing is set for November 29, 2018.
Rogers was indicted in February 2018, along with his co-defendant Jerad Hanks (26, Daytona Beach). Hanks previously pleaded guilty to the same offenses for his involvement in the robbery.
According to evidence presented at trial, on January 18, 2018, Rogers and Hanks robbed a Seacoast Bank in Sanford. Rogers backed the getaway car up to the front entrance of the bank and Hanks exited the vehicle wearing a ski mask and holding a shotgun. Hanks then entered the bank and brandished the shotgun at tellers while demanding cash. After robbing the bank tellers of more than $2,300, Hanks returned to the waiting getaway car, and Rogers drove them to a nearby apartment complex. When law enforcement officers located Rogers and Hanks at the apartment complex later that day, Rogers hid his half of the robbery proceeds in the waste pipe of his toilet and tried to escape out of a third-story apartment window.
This case was investigated by the Federal Bureau of Investigation and the Sanford Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt. Assistant United States Attorney Nathan W. Hill assisted with the prosecution.
San Felipe Pueblo Man Pleads Guilty to Aggravated Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Alvin J. Valencia, 60, an enrolled member and resident of San Felipe Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an aggravated sexual abuse charge. Valencia entered the guilty plea under a plea agreement that recommends a term of imprisonment within the range of 180 to 240 months followed by a term of supervised release to be determined by the court. Valencia also will be required to register as a sex offender.
Valencia was arrested in Feb. 2018, on a criminal complaint charging him with repeatedly sexually abusing a San Felipe Pueblo child between the ages of 12 and 16 years from Jan. 2017 through Dec. 2017.
Valencia subsequently was charged in a two-count indictment filed on Feb. 14, 2018, with sexually abusing a minor between the ages of 12 and 16 years from May 2017 through Sept. 2017, on the San Felipe Pueblo in Sandoval County, N.M.
During today’s proceedings, Valencia pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Valencia admitted that between May 2017 and Sept. 2017, he sexually abused a 14-year-old victim.
Valencia was remanded into federal custody after entering his guilty plea and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Joseph M. Spindle is prosecuting this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Resident of Puerto Rico Charged with Conspiracy to Possess with Intent to Distribute More Than 10 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A resident of Puerto Rico was charged today with attempting to smuggle more than 10 kilograms of cocaine into the United States through Newark Liberty International Airport, U.S. Attorney Craig Carpenito announced.
Raynee Emrico Gilbert Contreras Crespo, 21, is charged by complaint with conspiracy to possess with intent to distribute more than five kilograms of cocaine. He had his initial appearance on the charges today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and was detained.
According to documents filed in this case:
On Sept. 13, 2018, the Drug Enforcement Administration (DEA) was conducting an operation at Newark Liberty International Airport in which they were observing passengers and bags that could potentially be transporting narcotics. Agents identified two bags that potentially contained narcotics that were checked on a flight from Puerto Rico, observing that the bags were heavily weighted for their size. DEA agents in Newark established surveillance at the assigned luggage carousel for the flight and saw Crespo retrieve the bags and leave the airport.
The agents approached Crespo and asked him if his bags contained narcotics. After initially denying that the bags contained narcotics, Crespo subsequently admitted that they did, and signed a written consent to allow the agents to search the bags. Approximately 12 kilograms of a mixture and substance that field-tested positive for cocaine was found.
The drug conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life, and a $10 million fine.
U.S. Attorney Carpenito credited the special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, with the arrest.
The government is represented by Assistant U.S. Attorney Stephen Ferketic of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Previously Convicted Felon from Essex County, New Jersey, Admits Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted negotiating the sale of 17 firearms over a five-month period while he was a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Reginald Moultrie, 49, of Newark, pleaded guilty before U.S. District Claire C. Cecchi to an information charging him with one count of possessing a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
On July 20, 2017, Moultrie, who had at least one prior felony conviction in Essex County Superior Court, possessed an assault rifle capable of accepting a large capacity magazine. Moultrie also acknowledged that between May 1, 2017, and Sept. 30, 2017, he negotiated the sale of 17 firearms.
The felon in possession charge carries a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 16, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation, leading to today’s guilty plea. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
Defense counsel: Patrick McMahon Esq., Newark
Port Charlotte Doctor Sentenced to Five Months in Prison for Obstruction of an AuditRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merrday has sentenced Dr. John Janick (73, Port Charlotte) to five months in prison, followed by three years of supervised release, for obstructing a Medicare audit. As part of his sentence, Janick is required to pay $118,831.62 in restitution to the Medicare program.
According to the plea agreement, Janick lied to a Medicare program integrity contractor who was auditing Janick Medical Group. Specifically, Janick falsely claimed that a third-party employer was paying rent for office space utilized by his wife, Lisa McLaren Janick. The office space, located within the Janick Medical Group practice, was used by Lisa McLaren Janick to improperly access sensitive patient data that was then used to generate referrals from Dr. Janick to her third- party employer without regard for medical necessity.
Lisa McLaren Janick previously pleaded guilty to health care fraud charges in a related case. In her plea agreement, McLaren Janick acknowledged her role in falsifying Janick Medical Group patient records as part of a scheme to create bogus patient referrals to her third-party employer. McLaren Janick will be sentenced on October 10, 2018.
This case was investigated by Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Rachel Jones and Gregory Pizzo.
Pittsburgh Felon Sentenced to Nearly 8 Years in Prison for Illegally Possessing Loaded PistolRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 92 months’ imprisonment on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Marcus Smith, age 23.
According to information presented to the court, on February 2, 2017, Smith, an individual with several prior felony convictions, did knowingly and unlawfully possess a Glock 9mm pistol loaded with an extended magazine. Smith committed this offense while under supervision for three prior Allegheny County criminal convictions. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorneys Heidi M. Grogan and Amy L. Johnston prosecuted this case on behalf of the government. 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.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Smith.
Pensacola Tax Preparer Sentenced to 41 Months in Prison for Preparing False Tax ReturnsRead the Press Release
PENSACOLA, FLORIDA – Benell English, 57, of Pensacola, was sentenced to 41 months in federal prison Wednesday and ordered to pay $182,877 in restitution to the Internal Revenue Service after having been found guilty on May 23 of preparing false tax returns. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
English, the tax return preparer at Select Tax Service on E Street in Pensacola, prepared and filed false tax returns with the Internal Revenue Service between 2013 and 2017 by fraudulently increasing or decreasing taxpayers’ income to maximize refunds. A jury convicted English of 18 counts of preparing false tax returns in May.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the Social Security Administration-Office of Inspector General. Assistant United States Attorney Alicia H. Forbes prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Organized Crime Associate Pleads Guilty to Attempted MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VINCENT BRUNO pled guilty today before United States Magistrate Judge Paul E. Davison to attempting to kill, and conspiring to kill, a Bronx man in 2012. In May 2017, BRUNO and 18 other members and associates of the Luchese Family of La Cosa Nostra were arrested and charged in a nine-count Indictment, for their involvement in offenses including racketeering, murder, attempted murder, narcotics trafficking, and gun crimes. Since the unsealing of the Indictment, BRUNO and nine other defendants have pled guilty, and have been or will be sentenced by U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “Bruno’s attempt to murder a man at the behest of his mob superiors has ended where it should: With Bruno behind bars. We will continue to work with the FBI and our other partners in law enforcement to stamp out the remnants of La Cosa Nostra.”
According to the superseding information to which BRUNO pled guilty, his statements when pleading guilty, the allegations in the Indictment, and statements made in related court filings and proceedings:
In 2012, armed members and associates of the Bonanno Family of La Cosa Nostra forced their way into a Bronx social club controlled by the Luchese Family. During the ensuing confrontation, one of the Bonanno Family associates (the “Associate”) acted in a manner that a leader of the Luchese Family, Steven L. Crea (“Crea Sr.”), perceived as a personal affront. To avenge this supposed offense, Crea Sr. ordered his son, Steven D. Crea (“Crea Jr.”), to have the Associate killed. Crea Jr. passed the order to Paul Cassano Jr., a/k/a “Paulie Roast Beef,” and BRUNO. On a subsequent night, BRUNO and Cassano travelled to the Associate’s Bronx residence. There BRUNO, armed with a gun, tried to find the Associate in order to kill him, but failed. The dispute between the rival families was then resolved before the murder was carried out.
In conjunction with this incident, Cassano pled guilty to attempted assault in aid of racketeering in 2017. Crea Sr. and Crea Jr. are also charged with attempting to have the Associate killed and other crimes, and are scheduled to begin trial before Judge Seibel in 2019.
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BRUNO, 34, pled guilty to one count of attempted murder in aid of racketeering, and one count of conspiracy against the United States. In total, the counts to which BRUNO pled guilty carry a maximum sentence of 15 years. BRUNO will be sentenced before Judge Seibel.
The allegations contained in the Indictment as to Crea Sr., Crea Jr., and the other defendants who have not pled guilty are merely accusations, and these defendants are presumed unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the FBI’s Joint Organized Crime Task Force, which comprises agents and detectives of the FBI, NYPD, Homeland Security Investigations, and the Waterfront Commission of New York Harbor. He also thanked the Queens County District Attorney’s Office.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Scott Hartman, Hagan Scotten, and Jacqueline Kelly are in charge of the prosecution.
North Dakota Man Convicted of Threatening to Murder A Federal JudgeRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of ROBERT PHILIP IVERS, 65, for threatening to murder a federal judge and interstate transmission of a threat to injure. IVERS was found guilty today following a jury trial before Judge Robert W. Pratt, in United States District Court in Saint Paul, Minnesota.
“This defendant has a long history of using words to frighten and intimidate. Because of the excellent work of the United States Marshal’s Service, he is now being held accountable for making threats against a sitting United States District Court Judge in retaliation for the performance of her duties,” said Assistant U.S. Attorney Julie Allyn. “We are grateful to the jury for their careful attention to the evidence and their serious deliberation, resulting in a just verdict.”
As proven at trial, in January 2017, a United States District Court Judge (the “Victim Judge”) held a bench trial on a lawsuit brought by IVERS. The Victim Judge ruled against IVERS. He responded by sending a series of threatening letters and calling a court employee to say he was crazy angry at the Victim Judge and described himself as a “walking bomb.” IVERS was told repeatedly by Deputy U.S. Marshals to stop his threatening language.
On November 9, 2017, IVERS filed another civil lawsuit alleging the same facts as those in the case he lost before the Victim Judge. As part of the new civil case, IVERS was referred to two volunteer lawyers for a telephone consultation. After the lawyers discussed his case and told IVERS they did not believe he had a valid legal claim, IVERS began talking about his previous case with the Victim Judge. One of the lawyers described IVERS as becoming “intensely angry” and making threatening statements including:
• “This [expletive] judge stole my life from me.”
• “I had overwhelming evidence.”
• The Judge “stacked the deck” to make sure I lost this case.
• “She is lucky” I was “going to throw some chairs.”
• “You don’t know the fifty different ways I planned to kill her.”
After the lawyer reported the threats IVERS made during the phone conversation, two Deputy U.S. Marshals went to a residence in West Fargo, North Dakota to speak with IVERS about the threats. When confronted, IVERS became extremely agitated, and screamed at the Deputies, among other things, that he was glad the Victim Judge was scared, because “that [expletive] judge stole my life.”
This case is the result of an investigation conducted by the United States Marshals Service.
Assistant U.S. Attorneys Julie E. Allyn and Timothy C. Rank tried the case.
Defendant Information:
ROBERT PHILIP IVERS, 65
West Fargo, N.D.
Convicted:
- Threatening to murder a federal judge, 1 count
- Interstate transmission of a threat to injure the person of another, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
New York Man Convicted of Federal Fraud Charges Related to Multi-Million Dollar Pyramid Scheme that Targeted Chinese-AmericansRead the Press Release
LOS ANGELES – A federal jury has returned guilty verdicts against a New York man who was a high-level promoter of a fraudulent company that solicited more than $200 million for a company that purported to market web-based children’s educational courses, but in reality was nothing more than a pyramid scheme.
Daliang “David” Guo, 55, of Hyde Park, New York, was convicted Thursday afternoon of conspiracy and nine counts of wire fraud for participating in the scheme that solicited investments primarily from members of Chinese-American communities in Los Angeles, San Francisco and New York City.
Guo and other members of the conspiracy made false representations about the company – known as CKB 168, but also sometimes known as CKBMax and Cyber Kids Best Education Limited – including claiming that it generated substantial revenues from the sale of courses, that investments could be quickly liquidated for significant returns, that investors would get pre-IPO shares of CKB, and that the company would go public through an IPO. The evidence presented at trial showed that, in reality, the only way for investors to earn any meaningful returns was for them to actively recruit new investors.
Guo and his co-conspirators promoted CKB through YouTube videos and other postings on the internet, as well as through meetings with prospective investors and live presentations about the purported investment opportunity.
Four other defendants charged in this case previously pleaded guilty and are pending sentencing. They are:
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Cheong Wha “Heywood” Chang, 50, formerly of Hacienda Heights;
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Chang’s wife, Toni Chen, 49;
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Wen Chen “Wendy” Lee, 56, formerly of Rowland Heights; and
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Chih Hsuan “Kiki” Lin, 53, formerly of Los Angeles and Las Vegas.
During the course of the scheme, which ran from mid-2011 until January 2014, Guo and his co-conspirators solicited investments in increments of $1,380, which gave investors “Profit Reward Points” they claimed were worth $750 in cash, would only increase in value, and could be converted to pre-IPO shares of CKB. Guo and his co-conspirators collected money from new investors and simply pocketed the cash to pay themselves the “commission” they earned from CKB, and lulled investors by providing them with essentially worthless Profit Reward Points.
Guo and his group of promoters collected approximately $142 million out of the more than $200 million raised by CKB from investors.
Guo is scheduled to be sentenced by United States District Judge Dale S. Fischer on January 14, 2019, at which time he will face a statutory maximum sentence of five years in federal prison for the conspiracy count and up to 20 years in prison for each of the wire fraud charges.
This case is the result of an investigation by the Federal Bureau of Investigation.
The Securities and Exchange Commission provided valuable assistance.
The case against Guo was tried by Assistant United States Attorneys Jill Feeney and Ann C. Kim of the Major Frauds Section.
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New Orleans Resident Indicted for Westbank RobberiesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today that a federal grand jury in the Eastern District of Louisiana has indicted DARRYL HENRY, age 27, for three robberies with a firearm on August 24, 2018. If convicted, HENRY faces a maximum sentence of life in prison.
HENRY is accused of attempting to rob the Walmart Supercenter and the Winn-Dixie Supermarket in the Algiers neighborhood of New Orleans. HENRY is also accused of robbing the Walmart Neighborhood Market in Harvey, Louisiana, of $6,992.00.
U.S. Attorney Strasser stated that an indictment is only an allegation, and that the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation’s New Orleans Violent Crime Task Force, New Orleans Police Department, and the Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Myles Ranier is handling the prosecution.
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New Orleans Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEVIN WILLIAMS, age 23, of New Orleans, pleaded guilty to a two-count indictment charging him with being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
According to court documents, WILLIAMS was found in possession of a Taurus 9mm PT111 firearm on August 29, 2016 and a .40 caliber Smith and Wesson firearm on November 6, 2017. WILLIAMS had previously been convicted of a felony in Orleans Parish Criminal Court.
WILLIAMS faces a maximum term of imprisonment of ten years on each count, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Jersey Man Pleads Guilty to Interference with Flight CrewRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that JOEL MICHAEL BANE, age 39, of New Jersey, pleaded guilty yesterday to a one-count bill of information for interference with flight crew.
According to the court documents, JOEL MICHAEL BANE intimidated and threatened flight attendants while on Southwest Airlines flight number 208, which departed from Chicago, Illinois, with a destination of New Orleans, Louisiana. The defendant also refused to comply with the captain’s directives to take his seat for landing. After the airplane landed, JOEL MICHAEL BANE assaulted the police officers who escorted him off of the airplane.
JOEL MICHAEL BANE faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment. U.S. District Judge Milazzo set sentencing for December 13, 2018.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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Monroe County Man Guilty of Heroin ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Eddie Pace, age 44, of East Stroudsburg, Pennsylvania, pleaded guilty today to conspiracy to distribute more than 100 grams of heroin and more than 500 grams of cocaine, before Senior U.S. District Court Judge James M. Munley.
According to United States Attorney David J. Freed, Pace admitted to committing the offense between 2012 and 2015. Pace also admitted to conspiring with others to travel to Patterson, New Jersey, to obtain multiple bricks of heroin which were then sold to sub-distributors and customers from Pace’s barbershop in the Monroe County area of Pennsylvania, and elsewhere. One hundred grams of heroin is equivalent to approximately 4,000 retail bags of heroin.
Pace was one of seven people charged by a federal grand jury in a superseding indictment in March 2015. The others charged—Shawnette Isaac, Daryl Trent, Myron Owens, William Young, Catherine Abbey, and Anton Woodson—all previously entered guilty pleas in the case. Trent was recently sentenced to 90 months’ imprisonment on drug and gun charges, and Isaac was recently sentenced to 30 months’ imprisonment for her role in the drug conspiracy. The other defendants are awaiting sentencing.
Judge Munley ordered a presentence report to be completed, and scheduled Pace’s sentencing for December 14, 2018.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum penalty of ten years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper pleaded guilty today in federal court in Boston in connection with being paid over $5,900 for overtime hours that he did not work.
Kevin Sweeney, 40, of Braintree, pleaded guilty to one count of embezzlement from an agency receiving federal funds and one count of wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled the sentencing for Dec. 11, 2018. On Aug. 17, 2018, Sweeney was charged and agreed to plead guilty.
Sweeney was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Sweeney earned $218,512, which included over $97,000 in overtime pay.
Sweeney admitted that between Sept. 1, 2016, and Dec. 31, 2016, he was paid over $5,900 for overtime shifts that he either did not work at all or from which he left early. Sweeney concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
For example, on Dec. 14, 2016, Sweeney claimed in MSP payroll submissions and other paperwork to have worked a “D AIRE” overtime shift from 7:00 p.m. to 11:00 p.m. Sweeney claimed to have written eight motor vehicle citations during that shift and submitted copies of those citations to MSP as evidence that he had worked. Yet, Sweeney’s cruiser radio was not turned on during the overtime shift, he did not run any driver histories during the shift, and Registry of Motor Vehicle (RMV) records reflect that none of the motorists that Sweeney claims to have cited actually received a citation that day.
In another instance, on Dec. 21, 2016, the RMV did have copies of two of the citations Sweeney claimed to have written during the shift, but closer inspection revealed that Sweeney had falsified the times of those citations on the copies submitted to the MSP. The RMV copies revealed that the citations had been written at 5:00 p.m. and 5:05 p.m., which was written on the citations in military time as “1700” and “1705.” On the copies of those same citations submitted to MSP, however, Sweeney changed “1700” and “1705” to “700” and “705” so that it would appear to MSP that the citations had been written during the overtime shift that Sweeney did not work. And, like Dec. 14, Sweeney’s cruiser radio was not turned on during the overtime shift, he did not run any driver histories during the shift, and Registry of Motor Vehicle (RMV) records reflect that the other six motorists that Sweeney claims to have cited did not actually receive a citation that day.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers assigned to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants. Sweeney received payment for overtime hours he did not work through direct deposits into his bank account that had travelled through interstate and foreign wires.
Sweeney is the sixth trooper charged as a result of the ongoing investigation. On June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; Trooper Gary Herman, 45, of Chester, and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. Wilson has since been indicted. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, was charged and pleaded guilty. On July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was initially charged by criminal complaint and has since been indicted.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit and Neil Gallagher of Lelling’s Economic Crimes Unit are prosecuting the case.
Maryland Man Sentenced to 24 Years in Prison for 2016 Murder in Northwest WashingtonRead the Press Release
WASHINGTON – Christian Romero, 26, of Hyattsville, Md., was sentenced today to 24 years in prison for fatally stabbing a man, a complete stranger, in an unprovoked attack near a restaurant in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Romero was found guilty by a jury in February 2018 of a charge of second-degree murder while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Juliet McKenna. Following his prison term, Romero will be placed on five years of supervised release.
According to the government’s evidence, the victim, Dimas Fuentes-Lazo, was out with an old friend for drinks on the evening of April 23, 2016. They spent several hours together at different restaurants before parking in front of a restaurant in the 800 block of Kennedy Street NW. At approximately 10:30 p.m., while they waited on the sidewalk out front before going in, they saw Romero across the street, slapping the side-view mirrors of the cars parked along Kennedy Street, including their car. Mr. Fuentes-Lazo’s friend called out, “Hey, that’s my car,” and then Romero aggressively crossed the street to confront the two men.
Words were exchanged, and Romero stepped toward the men, raising his arms aggressively. Romero bent down to pick up a knife he had dropped, stood back up, and lunged at Mr. Fuentes-Lazo, stabbing and slicing him multiple times. Shortly thereafter, Mr. Fuentes-Lazo, 38, was pronounced dead as a result of the stabbing.
Romero ran off, leaving behind a wristwatch, a Coca-Cola bottle, and the switchblade he used to kill the victim. An investigation by the Metropolitan Police Department (MPD) led to Romero’s arrest on June 29, 2016, and he has been in custody ever since. Forensic testing confirmed that Romero’s DNA was on both the Coke bottle and the handle of the switchblade.
At the time of the murder, Romero was on probation for a 2012 stabbing that he committed in Prince George’s County, Md. He faces revocation of his probation along with additional prison time in that case.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department and the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist; Investigative Analyst Zachary McMenamin; Litigation Technology Specialists Leif Hickling, Anisha Bhatia, and William Henderson; Victim/Witness Advocate Jennifer Clark, and Victim/Witness Service Coordinator Katina Adams-Washington.
Finally, she commended the work of Assistant U.S. Attorneys Christian Natiello and Christopher Bruckmann, who investigated and prosecuted the case.
Maryland Man Pleads Guilty to Participating in Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – Everette Reel, 46, of Upper Marlboro, Md., pled guilty today to trafficking in crack and cocaine following an investigation into a narcotics conspiracy involving eight individuals in Washington, D.C. and Maryland, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Reel pled guilty before the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a detectable amount of cocaine. The charge requires a mandatory minimum sentence of five years of incarceration and up to 40 years in prison. Judge Leon scheduled sentencing for Dec. 14, 2018.
Reel was arrested with seven other individuals in March 2018 on charges stemming from a conspiracy to distribute and possess with intent to distribute cocaine and 280 grams or more of crack. In May 2015, the FBI, with the assistance of the Metropolitan Police Department (MPD), began a long-term investigation into a drug trafficking organization that operated in the Montana Terrace neighborhood of Northeast Washington and extended into Maryland. Numerous defendants also were charged with possessing and distributing various narcotics, including crack, cocaine, PCP and fentanyl, during the period of the investigation.
During the execution of a search warrant on Reel’s residence, FBI agents recovered approximately 15 grams of cocaine, a .40 caliber Springfield Armory pistol, 12 rounds of ammunition in two separate calibers, a gun box, and approximately $16,000 in cash.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge McNamara, commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeannette Litz and Teesha Tobias, Assistant U.S. Attorney Thomas Swanton, of the Asset Forfeiture & Money Laundering Section, who assisted with forfeiture related issues, and Christopher Macchiaroli and Kevin L. Rosenberg of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and are prosecuting the remaining defendants.
Man Pleads Guilty to Defrauding Investors of More Than $875,000 in a Sports Marketing SchemeRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Timothy Paul Hamilton, Jr., 31, of Dallas, Texas, pleaded guilty Friday to conspiracy to commit wire fraud in a scheme that defrauded investors of $875,300. Additionally, Gena Catherine Hamilton, 53, and Timothy Paul Hamilton, 56, both of Collinsville, pleaded guilty to giving a false statement to a financial institution.
Timothy Hamilton Jr., who goes by T.J. Hamilton, admitted to promoting false investment opportunities relating to business ventures that were purportedly going to produce and market sportswear and nutritional supplements. At the time of his crime, T.J. Hamilton was a resident of Oklahoma.
As part of the scheme, T.J. Hamilton, established and claimed to be the President and CEO of multiple companies. The Clean Athlete, LLC, established in 2011, promoted sportswear that could supposedly control the sweat and odor that comes with athletic play. Two other companies, Clean Athlete Nutrition, LLC, and Complete Athlete Nutrition, LLC, both established in 2012, claimed to create supplements that would improve athletes’ metabolism. His parents, Gena and Timothy Hamilton, were managing members of the companies. They both pleaded guilty today for providing false income information in order to receive a car loan in 2011.
Upon receipt of investor funds, the Hamiltons used a majority of the money for personal gain, primarily for T.J. Hamilton’s country music career ambitions.
“T.J. Hamilton’s fraudulent scheme reeked of deceit, greed, and selfish intent. He scammed investors, many from Oklahoma, by taking advantage of his reputation as a former athlete. His criminal scheme included defrauding one victim out of her life savings. Scam artists like T.J. Hamilton will be held accountable by my office. We will pursue justice and restitution for his victims,” stated U.S. Attorney Trent Shores.
As part of his plea, T.J. Hamilton agreed to a criminal forfeiture money judgement in the sum of $869,300, representing proceeds obtained through the conspiracy. All monies will go to provide restitution to the victims.
United States Magistrate Judge Jodi F. Jayne presided over the three plea hearings. T.J. Hamilton’s sentencing date is scheduled for December 13, 2018. He could face a maximum penalty of five years in prison. Gena and Timothy Hamilton’s sentencing hearings are also scheduled for December 13, 2018.
The Department of Treasury, Internal Revenue Service—Criminal Investigation Division investigated the case. Assistant U.S. Attorneys Kevin C. Leitch, Richard M. Cella, Charles M. McLoughlin, and Catherine J. Depew prosecuted the case.
Man Guilty of Distributing Fentanyl Causing Serious Bodily InjuryRead the Press Release
ALEXANDRIA, Va. – A Dumfries man pleaded guilty today to distribution of fentanyl causing serious bodily injury, for which he faces a mandatory minimum of 20 years in prison.
“Sorensen placed lives at risk every time he chose to distribute these dangerous and deadly drugs into our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting heroin and fentanyl trafficking crimes is a top priority of this office as we continue to battle this deadly epidemic.”
According to court records, Christopher Louis Sorensen, 31, admitted that in February 2018 he distributed fentanyl to a female friend who later suffered respiratory arrest, a life-threatening condition that required medical intervention, including CPR and Narcan, a life-saving opioid overdose reversal drug used by first responders.
“Fentanyl is a dangerous drug that can kill a user after just one use and have widespread negative effects on our communities,” said Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office. “This plea is just one example of the substantial work the FBI is doing with partners across the region to stem the flow of opioids into our neighborhoods.”
According to the statement of facts, Sorensen admitted that from 2015 to 2018, he sold over 400 grams of fentanyl, which he purchased from drug dealers in Baltimore. Additionally, Sorensen admitted that from 2009 to 2018, he sold over 5,000 tablets of 30 milligram oxycodone pills, acquired from a medical provider in Maryland, and filled by a pharmacy in the Eastern District of Virginia, and often sold the tablets in the vicinity of the pharmacy that filled the prescription.
Sorensen pleaded guilty to distribution of fentanyl causing serious bodily injury, and faces a mandatory minimum of 20 years and a maximum penalty of life in prison when sentenced on December 21, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney James L. Trump and Special Assistant U.S. Attorney Kaitlin Paulson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-237.
MS-13 Member Sentenced to 35 Years in Prison for RICO Conspiracy Involving Murder of 16-Year-Old East Boston BoyRead the Press Release
BOSTON – An MS-13 member was sentenced today in federal court in Boston for his role in the murder of a 16-year-old boy in East Boston.
Jairo Perez, a/k/a “Seco,” 27, a Salvadoran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 35 years in prison and five years of supervised release. Perez will be subject to deportation upon completion of his sentence. In May 2018, Perez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. Perez admitted that his racketeering activity involved the Jan. 10, 2016, murder of a 16-year-old boy in East Boston.
After a multi-year investigation, Perez was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts.
The investigation revealed that Perez was a member of MS-13’s Trece Loco Salvatrucha clique. On Jan. 10, 2016, Perez and three other MS-13 members—Edwin Gonzalez a/k/a “Sangriento,” Edwin Diaz, a/k/a “Demente,” and Rigoberto Mejia, a/k/a “Ninja”—murdered a 16-year-old boy whom they believed to be a member of a rival gang. Perez, Gonzalez, and Diaz used machetes to strike the victim dozens of times, while Mejia shot the victim. The murder occurred late at night on the sidewalk of a residential street in East Boston.
A few days after the murder, law enforcement used a cooperating witness to capture Perez on tape admitting to his involvement in the murder. Perez was also recorded burying the knives used to murder the victim in a park on Deer Island in Winthrop. The murder weapons were later recovered by law enforcement.
Perez, Gonzalez, Diaz, and Mejia are four of 49 defendants who have been convicted on federal charges as part of the ongoing prosecution. Sixteen of those defendants—including Perez, Gonzalez, Diaz, and Mejia—have been held responsible for racketeering conspiracy involving murder. Forty of the 49 convictions, including Mejia, were the result of guilty pleas prior to trial. Nine other defendants, including Gonzalez, were convicted after trial.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.
Jamestown Man Indicted on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Matthew Bailer, 33, of Jamestown, NY, with receipt and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the indictment and a previously filed complaint, on July 11, 2018, the Jamestown Police Department received a complaint from a parent that her minor children, Victim 1 and Victim 2, may have been sexually abused by the defendant. The parent stated that she was told by the defendant’s sister that a series of concerning pictures, sexual in nature, were delivered on a Nokia cellular telephone that was used by the defendant.
Bailer was subsequently arrested on a warrant out of Missouri related to a burglary case. During a search of the Nokia cellular telephone, investigators recovered several hundred images of images of child pornography involving sexually explicit conduct by prepubescent and pubescent children.
The defendant was arraigned this morning before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Inmate at FCI-Berlin Pleads Guilty to AssaultRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Shakur Brownstein, an inmate at the Federal Correctional Institution FCI-Berlin, pleaded guilty to assaulting another inmate on May 22, 2018.
According to court documents and statements made in court, Brownstein was walking behind another inmate in the Blue Corridor of FCI-Berlin when Brownstein ran up and struck the inmate from behind. Brownstein fractured the jaw of the other inmate, who required numerous surgeries and the surgical insertion of a titanium plate to hold his facial bones in place. The attack was captured on videotape and lasted less than 15 seconds.
Brownstein will be sentenced on December 21, 2018.
The staff at FCI-Berlin conducted the investigation of this case. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Inmate at USP Canaan Pleads Guilty to Assaulting an Inmate with A Weapon and Is Sentenced to an Additional Five Years’ ImprisonmentRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brandon Shields, age 33, formerly of Philadelphia, and currently a federal inmate at the United States Penitentiary at Canaan (USP Canaan), pleaded guilty on September 13, 2018, to assaulting another inmate with a dangerous weapon and was sentenced by U.S. District Court Senior Judge A. Richard Caputo to serve an additional five years in prison.
According to United States Attorney David J. Freed, the charges stem from an incident on January 7, 2016, in which Shields assaulted another inmate with a homemade weapon in the form of a combination lock attached to a length of cloth. Shields was indicted by a grand jury in March 2016.
Shields is presently serving a sentence of 110 months in prison for several bank robberies he committed in Philadelphia in 2011 and 2012. The sentence Shields received yesterday will be served in addition to that sentence.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
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Indictment Targeting Massive International Cocaine Conspiracy Unsealed with Arrival in U.S. of Extradited Colombian KingpinRead the Press Release
LOS ANGELES – A high-level member of a global drug ring arrived in Southern California last night after being extradited from Colombia on charges that he conspired to transport cocaine worth hundreds of millions of dollars from South America to Mexico for eventual sale in the United States. The extradition resulted from a coordinated, international law enforcement operation that has led to arrests of co-conspirators on three continents.
In conjunction with the extradition, federal authorities on Thursday arrested seven defendants named in a 22-count indictment that outlines how the organization obtained ton-quantities of cocaine manufactured in South American labs; used airplanes, submarines and “go-fast” boats to move the narcotics to Mexico; and then used various means to smuggle the loads across the U.S.-Mexico border, with significant quantities of cocaine being delivered to and subsequently sold in the Los Angeles area.
In addition to the extradition of Victor Hugo Cuellar-Silva last night and yesterday’s arrests of codefendants in California and Massachusetts, six other defendants are pending extradition after being previously taken into custody in Colombia and Thailand. Authorities continue to work to secure the arrests of a number of fugitives, including Angel Humberto Chavez-Gastelum, the alleged ringleader of the international trafficking ring, who is believed to be in Mexico.
The indictment, which was unsealed yesterday, is unique in charging high-level traffickers across the entire drug-distribution supply chain – from Colombia-based supply sources, to Mexico-based investors and transportation coordinators, to U.S.-based stash-house operators and distributors.
Cuellar-Silva is alleged to have been the organization’s top representative in Colombia, where he oversaw operations for Chavez-Gastelum, a Mexican national who has been designated by the U.S. government as one of the world’s most-wanted drug traffickers. Chavez-Gastelum’s drug distribution network controlled its own supply routes from Colombia to Central America, and from Mexico to the United States. Chavez-Gastelum’s criminal organization was also responsible for at least two killings, with one victim’s torture and dismemberment captured on a video that has been obtained by law enforcement authorities.
“This drug ring has spread death and misery across the Americas and to other parts of the world, which makes this case among the most significant drug trafficking cases ever brought in this district,” said United States Attorney Nick Hanna. “We are deeply grateful to the government of Colombia for helping us bring one of the key defendants to justice. Prosecutors in my office are united with our domestic and foreign partners in the fight against drug trafficking. This case shows that law enforcement will apply all of its resources to dismantle international criminal organizations that terrorize communities both here and abroad.”
Over the course of a three-year investigation into the organization, law enforcement authorities around the world seized approximately 7,700 pounds of cocaine, with a potential U.S. street value of $500 million. Significant seizures during the investigation included:
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approximately 1,329 kilograms of cocaine recovered when a plane that departed from Venezuela crashed into the Caribbean Sea;
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approximately 833 kilograms of cocaine contained in bales floating off the coast of Tumaco, Colombia;
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more than 700 kilograms of cocaine and over 30 kilograms of methamphetamine seized from a Tijuana stash house;
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approximately 80 kilograms of cocaine seized during two operations in Azusa;
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nearly 50 kilograms of cocaine and one-half pound of methamphetamine seized in Montebello; and
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approximately 8 kilograms of cocaine, $125,000 in cash, and a firearm seized in North Hollywood.
“This organization is responsible for the manufacture and cross-continent distribution of exorbitant amounts of cocaine, a complex money laundering conspiracy, and a myriad of violent crimes to include murder,” said DEA Associate Special Agent in Charge Daniel Comeaux. “The indictment, arrests and extradition demonstrate the international reach of the Southern California Drug Task Force, and we will continue to work with our U.S. and international law enforcement partners to bring transnational criminal organizations to justice.”
“This extradition serves as a stern warning to other fugitives who think they can evade U.S. law enforcement by hiding out in another country,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations Los Angeles. “I commend the government of Colombia and all of our foreign and domestic law enforcement partners for their hard work. Their support was instrumental in our joint effort to dismantle international criminal organization's ability to bring dangerous drugs into our communities and ensure the perpetrators of such attempts are brought to justice."
Cuellar-Silva is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
During Thursday’s law enforcement operation, authorities arrested seven defendants named in the indictment. They are:
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Hugo Atienzo, 55, of Azusa;
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Juan Antonio Brizuela, 29, of Lompoc;
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Richard Dennis, 54, of Studio City;
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Gerardo Mojarro, 42, of South Gate;
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Jesus Manuel Monrreal, 33, of Van Nuys;
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Jonathan Zamora, 28, of Cerritos; and
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Amparo Yokasta Melo Peguero, 44, who was arrested in her hometown of Boston.
The six defendants arrested Thursday in Southern California were arraigned on the indictment Thursday afternoon, which each entering not guilty pleas. A trial date was scheduled for November 13.
Chavez-Gastelum, Cuellar-Silva, and three other defendants are charged with participating in a continuing criminal enterprise. If they were to be convicted of just this charge, Chavez-Gastelum would face a mandatory life sentence because he is accused of being the principal manager of the enterprise, and the other four would face mandatory minimum sentences of 20 years in federal prison.
In addition to the continuing criminal enterprise and the related allegations of two murders, the indictment alleges a series of drug trafficking, firearms, and money laundering offenses. All of the defendants named in this case, if convicted, would face decades in federal prison due to the amount of narcotics involved in the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This investigation previously resulted in the extradition from Colombia to Los Angeles of two other drug kingpins who allegedly were responsible for orchestrating cocaine shipments by aircraft from Colombia to Mexico in conjunction with Chavez-Gastelum’s organization. Those two defendants previously extradited to the United States are both pending sentencing.
The investigation into this narcotics trafficking organization is being conducted by special agents with the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS Criminal Investigation, which received substantial assistance from the Colombian, Dutch, Aruban and Thai governments. The investigation is being conducted under the auspices of the Southern California Drug Task Force and the High Intensity Drug Trafficking Area Task Force.
A number of law enforcement agencies provided substantial assistance during the investigation, including the United States Marshals Service, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the Whittier Police Department and the Colton Police Department.
This case is being prosecuted by Assistant United States Attorneys Carol Alexis Chen, Benjamin Barron, Ryan Weinstein, and Alexander Schwab of the Organized Crime Drug Enforcement Task Force.
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Indictment Charges Georgia Man with Running Jury-Duty Scam That Extorted $200,000 from VictimsRead the Press Release
SAVANNAH, GA: A federal grand jury indicted Decatur, Ga., resident Orenthial Walker, 42, this week on felony charges linked to a widespread scam in which victims were coerced to pay “fines” for failing to appear for non-existent federal jury duty.
Walker, a convicted felon, is charged with conspiracy to commit wire fraud for his role in this interstate jury duty scam. Walker was arrested in Georgia in July 2018 by the Federal Bureau of Investigation for his role in a similar jury duty scam operated out of the Northern District of Alabama. In both cases, victims received calls from co-conspirators posing as members of the U.S. Marshals Service who claimed that the victims had failed to appear for jury duty. The victims were threatened with arrest if they failed to pay a “fine” through gift cards or via a money-transfer site. The investigation of both cases revealed that Georgia state prison inmates were behind this scam, using contraband cell phones to coordinate the operation from behind bars.
“This case not only highlights the potential damage to the integrity of the court system caused by such scams, but also serves as an example of the growing danger of contraband cell phones in the hands of prison inmates,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Federal agents will never call on the phone to demand money, and anyone receiving such a call should immediately report it to the police.”
“This case represents the determination of our agents to arrest the culprits behind these common scams, and an example that it is not fruitless for the public to report them,” said Chris Hacker, Special Agent in Charge of the FBI Atlanta Field Office. “We ask the public to be more aware of these scams and to report them to law enforcement and file a complaint with the Internet Crime Complaint Center (IC3) at www.ic3.gov.”
David Lyons, U.S. Marshal for the Southern District of Georgia, is available to comment on the issue of jury duty scams and can be reached at 912-652-4212.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
For any questions, please contact Barry Paschal at (912) 652-4422.
Houston Man Pleads Guilty to Possessing with Intent to Distribute CocaineRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JAMAR RUCKER, age 42, of Houston, pleaded guilty yesterday to one count of possessing with intent to distribute 500 grams or more of powder cocaine in the Eastern District of Louisiana. RUCKER faces a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years in prison and a fine of up to $5,000,000, and at least 4 years of supervised release.
According to court documents, on January 10, 2018, RUCKER drove from his home in Houston to the Clearview Shopping Mall in Metairie, where he intended to meet with a New Orleans-based drug customer. Upon arrival, federal agents arrested RUCKER, who was in possession of approximately 4.5 kilograms of cocaine that he intended to distribute to the customer.
U.S. District Judge Jane Triche Milazzo set sentencing for RUCKER on December 13, 2018.
U.S. Attorney Strasser praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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Green Bay Man Convicted of Conspiracy to Distribute Heroin and Fentanyl, Resulting in One Death and Two OverdosesRead the Press Release
United States Attorney Matthew D. Krueger announced today that a federal jury had convicted David Shanks, 37, of Green Bay, of conspiracy to distribute heroin, fentanyl, methamphetamine, and cocaine, conduct which resulted in death. As a result of his conviction and two prior felony drug convictions, Shanks faces a mandatory sentence of life in prison. The jury also convicted Shanks of five other drug-related counts, including distribution of methamphetamine, distribution of heroin/fentanyl/methamphetamine resulting in death, and distribution of heroin/fentanyl resulting in substantial bodily injury to two overdose victims.
The trial evidence established that between August and October 2017, Shanks was the leader of a conspiracy involved in the daily sale of heroin, laced with fentanyl, and methamphetamine. Shanks’s sale of heroin/fentanyl resulted in the overdose death of one individual on Sept. 10, 2017. Shanks also was responsible for overdoses by two individuals on Sept. 22, 2017. Fortunately, paramedics and law enforcement were able to provide lifesaving assistance to both individuals. Cooperating witnesses testified that Shanks was responsible for distributing large quantities of heroin and methamphetamine in the greater Green Bay and Iron Mountain, Michigan, areas. Witnesses described seeing Shanks with baseball-sized quantities of heroin and $5,000 stacks of money generated by his drug sales.
United States Attorney Krueger stated, “This case demonstrates the devastating impact the sale of heroin, fentanyl, and methamphetamine has on communities and families across Wisconsin and across the country. Federal, state, and local law enforcement remain committed to doing everything possible to hold those responsible for this devastation accountable.”
The following agencies participated in the investigation: Brown County Drug Task Force, Wisconsin Department of Justice, Division of Criminal Investigation, Drug Enforcement Administration, Green Bay Field Office, Green Bay Police Department, and Green Bay Fire Department. The case was prosecuted by Assistant United States Attorneys William Roach and Zachary Corey.# # #
For Additional Information Contact:
Public Information Officer, Dean Puschnig, 414-297-1700
Four Guatemalan Nationals Charged in Alien Smuggling EventRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on September 14, 2018, four Guatemalan citizens—Carlos Jose Cordova-Sanabria, Lester Ariel Morales-Moran, Elmer Estuardo Juarez-Franco, and Daniel Garcia-Cruz—were arrested and charged in connection with an alien smuggling event in the Newport, Vermont area. The four defendants appeared today in federal court in Burlington before United States Magistrate Judge John M. Conroy and entered pleas of not guilty to the federal charges. The Court ordered Cordova-Sanabria, Morales-Moran, and Juarez-Franco detained pending trial. Garcia-Cruz’s detention hearing will take place on September 19.
According to the Criminal Complaint, in the early morning hours of September 13, 2018, Border Patrol Agents received information of possible illegal activity in an area east of the Beebe Plain Port of Entry in Newport, Vermont. Agents responded to the area and observed individuals walking into a wooded area. Agents later observed a vehicle arrive in the same general area. A U.S. Border Patrol Agent witnessed three individuals appear from a wooded area and enter this same vehicle. Agents stopped the vehicle and identified the driver as Garcia-Cruz. Garcia-Cruz and the three passengers were all confirmed to be aliens without documentation allowing them to be in the United States legally.
United States Attorney Christina Nolan recognized the efforts of law enforcement on both sides of the border to address international human smuggling: “I commend our partners in the U.S. Border Patrol for their outstanding work in stemming the flow of smuggled individuals into Vermont. Preserving the integrity of the border will continue to be a top priority for the U.S. Attorney’s Office, and we will continue working with our partners at all levels of law enforcement in Vermont and Canada to dismantle criminal organizations that operate across our border.
The United States Attorney emphasizes that the charges are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
The prosecutor in this case is Assistant U.S. Attorney Paul Van de Graaf. Daniel Garcia-Cruz is represented by Assistant Federal Defender David McColgin. Robert Behrens represents Cordova-Sanabria, Morales-Moran, and Estuardo Juarez-Franco.
Former Mahomet Counselor Sentenced for Health Care FraudRead the Press Release
SPRINGFIELD, Ill. – A California man, who previously provided counseling services at his home in Mahomet, Ill., has been ordered to serve 18 months in prison for submitting false billings to health care insurers. Christopher DiFilippo, aka “Kip,” 40, of Bakersville, Ca., was also ordered to pay restitution in the amount of $514,297 to various health care insurers. DiFilippo was also ordered to serve three years of supervised release following his release from prison, the first year of which shall be served as home confinement. He was ordered to self-report to the federal Bureau of Prisons within 60 days.
On May 11, 2018, DiFilippo waived indictment and plead guilty to an information that charged him with one count of health care fraud. DiFilippo, who became a licensed clinical social worker in 2009, started his own company, KD Counseling, in early 2012. DiFilippo counseled patients mostly on weekends or in the evening at his home in Mahomet until he moved to Texas in 2015, and later Florissant, Mo. Some counseling was done by phone or over Skype. DiFilippo admitted to submitting false billings to health care insurers from 2012 to 2017.
Assistant U.S. Attorney Gregory M. Gilmore represented the government at sentencing. The FBI and U.S. Postal Service, Office of Inspector General, conducted the investigation with the U.S. Department of Labor, OIG, Chicago Division and the Office of Personnel Management, OIG, Chicago division. Special investigative units of Blue Cross Blue Shield of Illinois and Health Alliance Medical Plans provided special assistance in the investigation.
Former Biscayne Park Chief of Police Pleads Guilty to Conspiring with Other Officers to Violate Victims’ Civil Rights by Making False ArrestsRead the Press Release
Former Village of Biscayne Park Chief of Police, Raimundo Atesiano, pleaded guilty in federal court to conspiring with subordinate officers to violate individuals’ civil rights by making false arrests, announced Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE).
According to documents filed in connection with the plea entered today, Atesiano was acting under color of law as chief of police when on three separate occasions he ordered officers under his command to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that on one occasion he instructed an officer to falsely arrest and charge an individual for several vehicle burglaries based upon what Atesiano knew were false confessions. According to the documents, Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.
Guillermo Ravelo, a former Biscayne Park Officer who is named in the superseding indictment, previously entered a guilty plea for his role in the conspiracy with Atesiano to violate individuals’ civil rights. Charlie Dayoub and Raul Fernandez, former Biscayne Park officers who also are named in the superseding indictment, previously entered guilty pleas for their roles in effecting false arrests.
The Court set the sentencing date for Atesiano on Nov. 27. Guillermo Ravelo is scheduled to be sentenced on Oct. 4, and Charlie Dayoub and Raul Fernandez are scheduled to be sentenced on Oct. 16.
“The right to be free from false arrests is fundamental to our Constitution and system of justice,” said Acting Assistant Attorney General John Gore. “Law enforcement officers who abuse their authority and deny any individual this right will be held accountable. As the Chief of Police, Defendant Atesiano was trusted by his community to lead their police officers by example; he has failed his community and the officers of Biscayne Park.”
“The vast majority of law enforcement officers across the nation serve our communities with honor and integrity,” stated U.S. Attorney Benjamin G. Greenberg. “We will not allow the minority of officers who cast aside their oaths to tarnish the reputation of those who protect us all. Instead, as evidenced today with former Chief Raimundo Atesiano’s guilty plea, we will continue to hold them accountable in federal court for criminal acts that threaten our constitutional guarantees.”
“Law enforcement officers are entrusted with a great deal of responsibility and authority and therefore must be held to a high standard. Raimundo Atesiano failed to meet this standard by abusing his authority and breaking laws,” said Scott A. Rottman, Acting Special Agent in Charge, FBI Miami. "Unfortunately, the actions of a very few dishonest officers, such as Atesiano and his co-conspirators, undercut the public’s trust and they must be rooted out. His actions do not represent the overwhelming majority law enforcement officers who are diligent, honorable professionals who are worthy of that trust."
“It is a deliberate injustice to intentionally charge and arrest an innocent man. Police Chief Raimundo Atesiano’s actions were intended to give his community a false sense of security and were a betrayal of his oath to protect the residents of Biscayne Park and all the people of Miami-Dade County,” commented State Attorney Katherine Fernandez Rundle. “I applaud the combined efforts of our law enforcement partnership to end this calculated abuse of power.”
“Law enforcement officers must be held to the highest moral standards and when that trust is broken, FDLE will work aggressively to investigate and find the truth ensuring all citizens are treated justly,” said FDLE Miami Special Agent in Charge Troy Walker.
The case was investigated by the FBI, the FBI Miami Area Corruption Task Force and the FDLE, with assistance from the Miami-Dade State Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice, and Assistant State Attorney Trent Reichling.
Foreign National Pleads Guilty to Theft of Government Property, Identity Theft, Money LaunderingRead the Press Release
A citizen of the Dominican Republic and former resident of New York pleaded guilty yesterday to theft of government property, aggravated identity theft, money laundering, conspiracy to commit money laundering, fraudulent use of a social security number, and failure to appear as ordered, all in connection with his involvement in a stolen identity tax refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Lelling for the District of Massachusetts.
According to court documents, in 2012, Hector Antonio Cruz-Mercedes, attempted to negotiate ten U.S. Treasury income tax refund checks totaling $75,808 generated from false tax returns filed in the names of stolen identities of Puerto Rican residents. Cruz-Mercedes also conspired to lauder the proceeds of the scheme by texting bank account deposit information to others involved in the scheme. Cruz-Mercedes was indicted in February 2014 and arrested in the Dominican Republic in January 2017, and later extradited to the United States.
Cruz-Mercedes’s sentencing is scheduled for Jan 8, 2019. He faces a statutory maximum sentence of ten years in prison for the theft of government property, a maximum of twenty years in prison for the money laundering conviction, a two year mandatory minimum prison term on the aggravated identity theft charge, five years in prison for the fraudulent use of a social security number, and five years for the failure to appear as ordered. He also faces a period of supervised release, restitution and monetary penalties
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling thanked special agents of the Internal Revenue Service Criminal Investigation Homeland Security Investigation, and the United States Secret Service in Boston, who conducted the investigation, and Senior Litigation Counsel Corey J. Smith of the Department of Justice, Tax Division, who prosecuted this case.
Florida Woman Pleads Guilty to Mail Fraud Scheme Involving False Claims of Veterans Affairs SettlementRead the Press Release
LAS VEGAS, Nev. – A woman pleaded guilty Thursday to committing mail fraud in connection with a nearly $1.3 million scheme, U.S. Attorney Dayle Elieson for the District of Nevada.
Maria Jesus Luciano, 66, of Tampa, Florida, pleaded guilty without the benefit of a plea agreement to 11 counts of mail fraud.
According to court documents, Luciano resided in Las Vegas in 2010 to 2011. During that time period, Luciano befriended a man she met at the church they both attended. In 2011, she relocated to Tampa and maintained communication with the man. Luciano fraudulently represented to him that she had a pending settlement award from the U.S. Department of Veterans Affairs. She told him that she would share the settlement award with him if he provided her money to pay fees, interest, and other costs related to obtaining the settlement award. Her representations where false. In fact, after a brief period of service, Luciano was discharged from the U.S. Army in 1971. She received monthly pension benefits from the U.S. Department of Veterans Affairs for a non-military service related disability and was not entitled to any large monetary award or settlement.
In July 2013, Luciano mailed the man a fake promissory note granting him an interest in the purported settlement award. The man used his position as a controller at a large real estate investment business to embezzle and steal approximately $1.3 million from the business and its investors. He mailed Luciano numerous envelopes and packages containing the stolen money. Luciano used the money for gambling and personal expenses.
Sentencing is set for January 24, 2019, before U.S. District Judge Andrew P. Gordon. The maximum statutory penalty for mail fraud is 20 years in prison and a potential fine. In addition, she faces a criminal forfeiture money judgment of $1,298,748.56.
The case was investigated by the FBI with assistance from the Offices of Inspectors General for the U.S. Department of Housing and Urban Development and the U.S. Department of Veterans Affairs. Assistant U.S. Attorney Patrick Burns is prosecuting the case.
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Florida Resident Sentenced to Ten Years in Prison for Leading A Conspiracy to Defraud Factoring CompaniesRead the Press Release
OAKLAND – Karl James Stehlin, aka Carl Davis, was sentenced to ten years in prison and ordered to pay $2,158,250.04 in restitution for leading a scheme to defraud multiple companies out of more than $9,500,000, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down yesterday by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge.
Stehlin, 63, of Seminole, Fla., pleaded guilty to the charges on January 25, 2018. In pleading guilty, Stehlin admitted that along with co-defendant Gregory Scott Winters, aka Rob Sacci, 46, formerly of Ocala Fla., and others, he conspired to sell millions of dollars’ worth of fake invoices to a Walnut Creek company. The Walnut Creek company provides services related to accounts receivable collateralized lending, also called “factoring.” Factoring is a financial transaction in which a business sells its accounts receivable (invoices) to a third party (the factor) at a discount. The factor advances a percentage of the face amount of the invoices to the business and then collects the full amount from the customers of the business in due course. Following collection from the customers, the factor deducts its commission and other fees and then pays the balance to the business. As part of the scheme, Stehlin and his co-conspirators created fake invoices and sold them to the Walnut Creek company.
To commit this fraud scheme, Stehlin and his co-conspirators created multiple shell entities. For example, the co-conspirators created Nature’s Own Pharmacy, a company they claimed sold equine supplements. They also created other shell companies the co-conspirators represented to be Nature’s Own Pharmacy’s customers. In reality, Nature’s Own Pharmacy is a phony shell corporation that sold no goods. Further, all of Nature’s Own Pharmacy’s purported customers were phony companies that purchased no goods and owed no legitimate debt. Stehlin admitted that he and his co-conspirators then created fake invoices that gave the appearance of the sale of goods from Nature’s Own Pharmacy to the shell company’s fake customers, and then sold the phony invoices to victims.
Stehlin admitted he perpetrated this scheme over a six-year period on multiple factoring companies throughout the United States. Stehlin used false names, virtual office addresses, and other false information to execute the scheme.
A federal grand jury indicted Stehlin on January 12, 2017, charging him and Winters with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 and wire fraud, in violation of 18 U.S.C. § 1343. Stehlin pleaded guilty to both counts.
During the proceedings at which Stehlin pleaded guilty and was sentenced, Judge Gonzalez Rogers made findings that the defendant organized the scheme and that he defrauded multiple factoring companies out of more than $9,500,000. Further, Judge Gonzalez Rogers found that Stehlin and his co-conspirators duped their victims into believing they would collect the face value of the invoices from the purported customers when, in reality, the invoices sold by Stehlin to the factoring companies were worthless. Stehlin admitted that the factoring companies involved in this case suffered losses in excess of $9,500,000. Judge Gonzalez Rogers concluded the defendant’s conduct resulted in significant financial hardship to one or more of his victims, including one factoring company that had to close a branch and lay off employees, many of whom worked for that company for years.
In addition to the prison term, Judge Gonzalez Rogers sentenced the defendant to a three-year period of supervised release. The defendant has been in federal custody since his initial appearance and will begin serving his sentence immediately.
Winters pleaded guilty to conspiracy and wire fraud charges on October 12, 2017. On April 19, 2018, Judge Gonzalez Rogers sentenced Winters to two years in prison to be followed by three years of supervised release for his role in the scheme.
Assistant U.S. Attorney William J. Gullotta is prosecuting the case with the assistance of Katie Turner and Michelle Alter Eck. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Financial Broker Charged in Manhattan Federal Court with Tax Evasion and Failure to File Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James D. Robnett, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an indictment charging RICHARD JOSEPHBERG with five counts of tax evasion and four counts of willful failure to file tax returns. JOSEPHBERG was arrested earlier this morning and is expected to be presented and arraigned later this afternoon in Manhattan federal court before United States District Judge Richard J. Sullivan.
U.S. Attorney Geoffrey S. Berman said: “Richard Josephberg allegedly defrauded the IRS and evaded taxes by disguising more than $1.5 million in income as long-term capital gain. He also allegedly failed to file tax returns for four years. Working with IRS Criminal, we are determined to ensure that everyone meets his tax obligations.”
IRS-CI Special Agent in Charge James D. Robnett said: “The IRS enforces the nation’s tax laws and Special Agents are experts at following the money through multiple entities and complex structures. People who create elaborate schemes designed to mislead the IRS run the very high risk of arrest and criminal prosecution.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
In late 2010, JOSEPHBERG began working for an investor relations firm (“Firm-1”) in Manhattan. Through the owner of Firm-1, JOSEPHBERG secured a commission-based arrangement with another investment firm (“Firm-2”), which agreed to pay JOSEPHBERG a commission of approximately 15 percent of any profit generated by Firm-2 on financing deals originated by JOSEPHBERG. For originating one such financing deal, JOSEPHBERG was entitled to commission payments totaling approximately $1.57 million in 2011. After receiving payments totaling approximately $35,725 in his own name, JOSEPHBERG directed Firm-2 to issue the remaining the commission payments in the name of a newly formed nominee corporate entity called “Almorli Advisors Inc.” JOSEPHBERG opened a new bank account in the name of Almorli Advisors Inc. (“Almorli Bank Account-1”), and deposited payments totaling approximately $1.53 million into that account.
In March 2012, while preparing to file 2011 federal income tax returns, JOSEPHBERG took steps to evade paying hundreds of thousands of dollars in federal income taxes by disguising and concealing the type of income that JOSEPHBERG had received from Firm-2. On or about March 27, 2012, JOSEPHBERG formed a second entity called “Almorli Advisors NY LLC.” JOSEPHBERG caused his accountant to prepare a false 2011 partnership income tax return, Form 1065, in the name of Almorli Advisors NY LLC (the “2011 Form 1065”), listing JOSEPHBERG as a 99 percent partner and JOSEPHBERG’s son as a one percent partner. To evade a substantial part of the income taxes due and owing for 2011, JOSEPHBERG caused the 2011 Form 1065 falsely to report the commission payments from Firm-2, totaling approximately $1,574,922, as a long-term capital gain, rather than ordinary income. JOSEPHBERG’s purported 99 percent share of this false long-term capital gain flowed through to JOSEPHBERG’s 2011 individual income tax return, Form 1040. JOSEPHBERG’s fraudulent misclassification of this income resulted in a reported tax liability that was hundreds of thousands of dollars lower than the true tax liability because individual long-term capital gains were taxed at a significantly lower rate than ordinary income.
JOSEPHBERG also engaged in a scheme to evade the assessment of federal income taxes for calendar years 2013 through 2016. During those years, JOSEPHBERG received substantial income from performing consulting and other professional services. Despite earning substantial income, JOSEPHBERG failed timely to file any federal income tax returns for the calendar years 2013 through 2016 until after IRS agents contacted JOSEPHBERG in May 2017. In addition to not timely filing any tax returns, JOSEPHBERG took various affirmative steps to evade the assessment of taxes. Among other things, JOSEPHBERG routed substantial amounts of income through Almorli Bank Account-1 and another bank account in the name of Almorli Advisors Inc., which bank accounts JOSEPHBERG controlled and used to pay for his personal expenses.
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JOSEPHBERG, 71, of Greenwich, Connecticut, is charged with five counts of tax evasion, each of which carries a maximum sentence of five years in prison, and four counts of willful failure to file tax returns, each of which carries a maximum sentence of one year in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
[1] The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Feds Charge Straw Purchasers in PSN Neighborhood: Gun Used in HomicideRead the Press Release
DALLAS – The straw purchasers of a gun used to murder an innocent man appeared in federal court today, charged with making false statements during the acquisition of a firearm, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
According to the Indictment, unsealed following the defendants’ arrest yesterday, sisters Demoushae and Tashonna Marsh purchased two 9-millimeter Glock pistols from Academy Sports + Outdoors, a federally-licensed firearm dealer, on April 16. On their applications, each woman claimed she was the “actual buyer” of the firearm – while allegedly knowing the guns were intended for someone else.
One of the pistols ended up in the hands of a teenage boy.
On April 18 -- just two days after the straw purchase – the juvenile and a co-conspirator attempted to rob a man in the driveway of his Dallas home. Upon hearing the struggle, the victim’s brother, Leonardo Vazquez-Barcenas, came outside to investigate. The juvenile, still struggling with the homeowner, fired a single shot, killing Mr. Vazquez-Barcenas.
“Federal firearm restrictions are designed to keep deadly weapons from being used in street crimes like these,” said Nealy Cox. “This case should send a message to would-be straw purchasers across north Texas: We will bring to justice anyone who attempts to circumvent gun laws in our district.”
The Dallas County District Attorney’s Office is handling the homicide case. The straw purchasing case was brought as part of the U.S. Attorney’s “Project Safe Neighborhood” initiative, a strategic effort targeting violent offenders in Dallas’ most dangerous neighborhoods. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation with assistance from the Dallas Police Department; Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Federal Inmate Convicted After Knife Attack at FCI-GreenvilleRead the Press Release
Federal inmate Detrick L. Layfield, 40, has been found guilty of assault with a dangerous weapon intending bodily harm after attacking a fellow inmate at the Federal Correctional Institute in Greenville, Illinois. The conviction comes after a two-day federal jury trial in East St. Louis, Illinois, where Layfield was also found guilty of possessing a contraband weapon in the prison and attempting to obstruct justice. The charges against Layfield were originally brought in a federal indictment returned in October 2017.
The evidence at trial established that, on September 1, 2017, Layfield assaulted a fellow inmate with an improvised weapon (a sharp object known as a "shank"). The inmate was identified in court documents only as "S.D." Afterward, Layfield enlisted two other inmates in an attempt to conceal the whereabouts of the shank so it couldn’t be used against him in the federal prosecution. One of the inmates, however, revealed the location of the shank during an interview. Shanks and other weapons are considered prison contraband, possession of which constitutes a separate offense.
At the time of the attack, Layfield was incarcerated based on a federal conviction out of the Western District of Kentucky. He was scheduled to be released in July 2019. Sentencing is set for December 14, 2018. By statute, Layfield could receive as much as 35 years in prison for the three offenses.
The case was investigated by the Bureau of Prisons’ Special Investigations Section and the Federal Bureau of Investigation. Assistant United States Attorney Angela Scott is prosecuting the case.
East Saint Louis Man Lands 20-Year Prison Sentence for Coaine Trafficking ConspiracyRead the Press Release
Emil D. Lewis, a/k/a "E," 49, of East Saint Louis, Illinois, has been sentenced to a 240-month term in federal prison for conspiring to distribute cocaine and cocaine distribution, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Lewis previously pleaded guilty to a four-count indictment charging the same.
Evidence at the plea and sentencing hearings established that the illicit conspiracy took place between December 25, 2016, and September 6, 2017. Over the course of the conspiracy, Lewis was responsible for distributing more than 150 kilograms of cocaine.
Evidence in support of this prosecution was obtained in an investigation conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation was conducted by the Drug Enforcement Administration and the Internal Revenue Service.