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23 October 2018
Vascular Access Centers to Pay at Least $3.825 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Philadelphia-based Vascular Access Centers L.P., along with its 23 subsidiary and related corporations (collectively “VAC”), has agreed to pay at least $3.825 million to resolve claims that it violated the False Claims Act by billing Medicare for non-reimbursable vascular access procedures performed on End Stage Renal Disease (ESRD) beneficiaries and engaging in an alleged kickback scheme related to referrals for such procedures, the Department of Justice announced today.
The settlement resolves allegations that VAC, which currently operates facilities in eight states, billed Medicare for vascular access surgical procedures performed on ESRD beneficiaries, including fistulagrams and percutaneous transluminal angioplasties, without all of the required medical documentation supporting the necessity of the procedures. The settlement also resolves allegations that VAC submitted false claims to Medicare for services that resulted from referrals that VAC had induced through improper remuneration to physician investors and medical directors, in violation of the Anti-Kickback Statute. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
VAC has agreed to pay a minimum of $3.825 million in a series of fixed payments over five years, and could pay up to a maximum of $18,360,794, if certain contingencies are triggered.
“Medicare patients with End Stage Renal Disease, like other beneficiaries, are entitled to receive care in accordance with their clinical needs and not based on the financial interests of healthcare providers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “Entities and individuals that attempt to profit through improper financial incentives and thereby bypass independent clinical decision-making will be held accountable.”
“Medicare fraud hurts not only patients and honest practitioners, but all taxpayers who pay hard-earned dollars into the nation’s public fisc,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser. “The favorable resolution of this False Claims Act matter illustrates our firm commitment to use all available remedies, both civil and criminal, to attack healthcare fraud at its source.”
VAC has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring the company to engage in significant compliance efforts over the next five years, including a focus on VAC’s arrangements with physicians and other health care providers for compliance with the Anti-Kickback Statute.
“Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that VAC only provides medically necessary services to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Our CIA will also help try to ensure that doctors who are referring patients for medical procedures are doing so based on the best interest of the patient, and not based on financial considerations.”
The settlement resolves allegations originally brought in two lawsuits filed by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers will collectively receive at least $612,000 as their share of the settlement.
The United States’ investigation in one case was handled by the U.S. Attorney’s Office for the Southern District of New York, and in the second case was a coordinated effort by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana. The Department of Health and Human Services Office of Inspector General assisted in both investigations.
The cases are captioned United States ex rel. Levine v. Vascular Access Centers, L.P., et al., Case No. 12-civ-5103 (S.D.N.Y.), and United States ex rel. Boogaerts, et al. v. Vascular Access Centers, L.P., et al., Case No. 2:17-cv-02786-EEF-KWR (E.D. La.).
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Vascular Access Centers to Pay at Least $3.825 Million to Resolve False Claims Act AllegationsRead the Press Release
Philadelphia-based Vascular Access Centers L.P., along with its 23 subsidiary and related corporations (collectively “VAC”), has agreed to pay at least $3.825 million to resolve claims that it violated the False Claims Act by billing Medicare for non-reimbursable vascular access procedures performed on End Stage Renal Disease (ESRD) beneficiaries and engaging in an alleged kickback scheme related to referrals for such procedures, the Department of Justice announced today.
The settlement resolves allegations that VAC, which currently operates facilities in eight states, billed Medicare for vascular access surgical procedures performed on ESRD beneficiaries, including fistulagrams and percutaneous transluminal angioplasties, without all of the required medical documentation supporting the necessity of the procedures. The settlement also resolves allegations that VAC submitted false claims to Medicare for services that resulted from referrals that VAC had induced through improper remuneration to physician investors and medical directors, in violation of the Anti-Kickback Statute. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
VAC has agreed to pay a minimum of $3.825 million in a series of fixed payments over five years, and could pay up to a maximum of $18,360,794, if certain contingencies are triggered.
“Medicare patients with End Stage Renal Disease, like other beneficiaries, are entitled to receive care in accordance with their clinical needs and not based on the financial interests of healthcare providers,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “Entities and individuals that attempt to profit through improper financial incentives and thereby bypass independent clinical decision-making will be held accountable.”
“Medicare fraud hurts not only patients and honest practitioners, but all taxpayers who pay hard-earned dollars into the nation’s public fisc,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser. “The favorable resolution of this False Claims Act matter illustrates our firm commitment to use all available remedies, both civil and criminal, to attack healthcare fraud at its source.”
VAC has also entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring the company to engage in significant compliance efforts over the next five years, including a focus on VAC’s arrangements with physicians and other health care providers for compliance with the Anti-Kickback Statute.
“Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that VAC only provides medically necessary services to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Our CIA will also help try to ensure that doctors who are referring patients for medical procedures are doing so based on the best interest of the patient, and not based on financial considerations.”
The settlement resolves allegations originally brought in two lawsuits filed by whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The whistleblowers will collectively receive at least $612,000 as their share of the settlement.
The United States’ investigation in one case was handled by the U.S. Attorney’s Office for the Southern District of New York, and in the second case was a coordinated effort by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Louisiana. The Department of Health and Human Services Office of Inspector General assisted in both investigations.
The cases are captioned United States ex rel. Levine v. Vascular Access Centers, L.P., et al., Case No. 12-civ-5103 (S.D.N.Y.), and United States ex rel. Boogaerts, et al. v. Vascular Access Centers, L.P., et al., Case No. 2:17-cv-02786-EEF-KWR (E.D. La.).
U.S. Attorney Shappert Announce that Two Virgin Islands Assistant United States Attorneys are Receiving National Awards for Their Outstanding Work in the Prosecution of Transnational Drug OrganizationsRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that two federal prosecutors in the Virgin Islands U.S. Attorney’s Office (VI-USAO) will be honored on October 26, 2018 at a national awards ceremony in Miami, sponsored by the Organized Crime Drug Enforcement Task Force (OCDETF) program of the Department of Justice. The Organized Crime Drug Enforcement Task Forces (OCDETF) Program was established in 1982 to coordinate a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money-laundering networks, and related criminal enterprises. OCDETF combines the resources and expertise of federal law enforcement agencies in a coordinated attack against major drug trafficking and transnational criminal organizations. The OCDETF program includes the 94 U.S. Attorneys’ Offices (USAOs), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), the U.S. Coast Guard (USCG), the U.S. Immigration and Customs Enforcement (USCIS), the U.S. Marshals Service (USMS), the Criminal and Tax Divisions of the U.S. Department of Justice, and numerous State and local agencies.
Assistant United States Attorney Delia Smith, the VI-USAO Lead OCDETF Attorney, will receive a national award for her leadership and prosecution of a large cocaine conspiracy known as Smuggler Smash. This investigation lead to 22 convictions, including four airline employees and the forfeiture of over $ 2 million dollars. Among the defendants convicted in this operation were former Department of Planning and Natural Resources (DPNR) Officer Gerald Mercer and former government security officer Neal Chesterfield. Federal prison sentences imposed by the court ranged from 16 years to 30 months.
Also receiving an OCDETF National Award for Individual Achievement is First Assistant United States Attorney Carlos R. Cardona, the former Lead OCDETF Attorney in the Puerto Rico USAO. FAUSA Cardona’s award recognizes his exceptional contributions to the OCDETF program during his service in Puerto Rico. He is credited with successfully managing the OCDETF program, while maintaining a significant caseload, mentoring new OCDETF prosecutors and simultaneously serving as the Puerto Rico Lead Strike Force Attorney.
"The U.S. Attorney’s Office is fortunate to have two, nationally-recognized narcotics prosecutors, who are committed to dismantling transnational criminal networks and drug cartels," said U.S. Attorney Shappert. "We are deeply grateful for their enormous contributions to our efforts to interdict drug-dealing criminals and to provide for enhanced public safety in the Territory."
U.S. Attorney Rosa Emilia Rodríguez Vélez Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
SAN JUAN, P.R. – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“Project Safe Neighborhoods is a critical component of our crime reduction strategy; it enables the United States Attorney’s Office, together with our law enforcement partners, to target and prioritize criminal prosecutions of the most violent offenders in the most violent locations,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “Using the additional resources we have received from the Justice Department, we will strengthen our mission to increase safety and reduce violent crime in neighborhoods across our communities.”
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
The U.S. Attorney’s Office has joined efforts with our fellow federal, state, and local law enforcement agencies to take the lead in reducing gun violence, and specifically, murders. We have numerous initiatives in place to combat drug trafficking and violent crime on the island. The Illegal Firearms Initiative started in 2011, in response to a historical increase in the murder rate. Since then, we have indicted more than 2,570 violent offenders. In 2018, we have arrested 270 individuals under this initiative.
In 2016, after four consecutive years during which the murder rate decreased, Puerto Rico experienced a slight uptick in the murder rate. Therefore, we sensed a need to intensify violence reduction efforts, and to implement innovative strategies. The Trigger Puller Initiative is aimed at identifying, investigating, and prosecuting the most dangerous members of drug trafficking organizations under investigation by the Strike Forces. In 2018, we have arrested 97 individuals under this initiative.
Other initiatives that are part of the PSN efforts in the District of Puerto Rico include: Gang Intelligence Center; RICO Initiative; Carjacking Initiative; and Drug Strike Forces. These initiatives target violent crime, organized crime and drug trafficking.
Community Partnerships
Since late 2015, USAO-PR’s Prevention and Reentry Team implements the Communities and Juveniles Program that includes prevention seminars and workshops for public middle school students and members of communities in areas impacted by high violent crime rates. The speakers at the workshops are usually special agents or police officers from agencies like the DEA, ICE, United States Probation Office, and the PRPD. The subjects and speakers are selected after interviewing the school’s administration and assessing the school’s needs. This year we have visited five schools and a residential reentry center, and five more schools will be visited by the end of this year. These outreach activities will continue to be coordinated throughout the year.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- In our district, we have had a steady decrease in the murder rate. As of the month of October, an average of 45 less murders have occurred in comparison to last year.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
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U.S. Attorney Announces the Appointment of the District Election Officer for the Northern District of AlabamaRead the Press Release
U.S. Attorney Jay E. Town announced today that he has appointed Assistant U.S. Attorney (AUSA) Jason R. Cheek to serve as the district election officer for the Northern District of Alabama. In that capacity, AUSA Cheek is responsible for overseeing the district’s handling of any complaints of election fraud or voting rights abuses in consultation with Department of Justice headquarters in Washington, D.C.
“The right to vote is the cornerstone of our great democracy. The Department of Justice will ensure that every citizen who is entitled to vote is able to do so without undue interference or discrimination,” Town said. “My office will act promptly and aggressively to protect the integrity of our election process.”
In order to respond to complaints of election fraud or voting rights abuses on November 6, and to ensure that such complaints are directed to the appropriate authorities, Town said that AUSA Cheek will be on duty in the Northern District while the polls are open on election day. The public can reach him at the following telephone number: (205) 244-2001.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, D.C., by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Tuba City Man Sentenced to over 8 Years for Armed Robbery and Assaulting OfficersRead the Press Release
PHOENIX – This week, Warren Adam Blake, 37, of Tuba City, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 102 months’ imprisonment, to be followed by three years of supervised release. Blake, an enrolled member of the Navajo Nation, had previously pleaded guilty to assault with a dangerous weapon and armed robbery. Blake also received a concurrent 13-month sentence for violations of supervised release in a prior federal case.
In the summer of 2017, Blake was on supervised release for a prior federal felony conviction and had an active arrest warrant for violating his conditions of release. On Aug. 2, 2017, agents with the Federal Bureau of Investigation and criminal investigators with the Navajo Nation Department of Public Safety attempted to arrest Blake on the warrant. When law enforcement officers approached Blake in their vehicle, Blake hurried into a vehicle that had previously been reported stolen. Blake then rammed the stolen vehicle into the officers’ vehicle and fled the scene.
Blake evaded capture by law enforcement until Nov. 27, 2017. That day, he entered a home in Tuba City without permission, pointed a gun at the homeowner, and demanded the keys to a vehicle. Blake fled the scene in the stolen vehicle, leading police on a lengthy chase. He was eventually captured on foot in a remote area of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation, Navajo Nation Department of Public Safety, and Bureau of Indian Affairs – Office of Justice Services (Hopi Agency). The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08239-PCT-DLR; CR-14-08096-PCT-DLR
RELEASE NUMBER: 2018-135_Blake
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Trenton Man Sentenced to 12 Years for Meth Conspiracy in Northern MissouriRead the Press Release
KANSAS CITY, Mo. – A Trenton, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in north central Missouri.
Faron Wayne Lawrence, 52, of Trenton, was sentenced by U.S. District Judge Gary A. Fenner to 12 years in federal prison without parole.
NITRO (the Northwest Inter-agency Team Response Operation) initiated an investigation in Grundy County, Mo., in December 2014 that focused on methamphetamine distribution in the north central region of Missouri, with sources of supply in the Kansas City, Mo., metropolitan area.
On Nov. 21, 2017, Lawrence pleaded guilty to participating in a conspiracy to distribute methamphetamine. Lawrence admitted that he purchased methamphetamine from co-defendants Ryan Peter Trombley, 33, of Trenton, and Christopher John Vaccaro, 42, of Kansas City, Mo. Trombley and Lawrence traveled to the Kansas City area multiple times each week to acquire ounce-quantities of methamphetamine. Lawrence then distributed the methamphetamine to co-defendant Alicia Marie Grimes, 50, and others in Trenton.
Lawrence admitted that he was responsible for the distribution of at least 1.5 kilograms of methamphetamine during the conspiracy. Lawrence is the seventh and final defendant to be sentenced in this case.
Trombley was sentenced to 11 years and six months in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. Grimes was sentenced to one year and one day in federal prison after pleading guilty to using a telephone to facilitate the distribution of methamphetamine. Vaccaro was sentenced to 17 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to possessing firearms in relation to a drug-trafficking crime.
Robert Ryan Hicks, 36, of Belton, Mo., was sentenced to 17 years and seven months in federal prison without parole. Crystal Renee Breshears, 27, of Belton, was sentenced to five years and 10 months in federal prison without parole. Allen Ray Watson, 45, of Blue Springs, Mo., was sentenced to five years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and NITRO (the Northwest Missouri Interagency Team Response Operation).
Three Repeat Drug Dealers from Waterloo Sentenced to PrisonRead the Press Release
Three men, all from Waterloo, Iowa, were sentenced in federal court in Cedar Rapids on October 16, 2018, because they trafficked cocaine and crack cocaine.
John Dwayne Phillips, age 50, was sentenced to 72 months of imprisonment and supervised release of six years. The sentence came after he pled guilty to conspiracy to distribute cocaine and crack cocaine, distribution of cocaine, and possession with intent to distribute cocaine. Phillips had previously been convicted of delivery of a controlled substance and possession of marijuana, third offense, in state court.
Darius Fontaine Shears, age 31, was sentenced to 180 months of imprisonment and supervised release of eight years based upon his guilty pleas to conspiracy to distribute cocaine and cocaine base and possessing a firearm in furtherance of a drug crime. Shears had previously been convicted of possession of cocaine with intent deliver in state court.
Alexander Martin, age 51, was sentenced to 132 months of imprisonment and supervised release of ten years. Martin pled guilty to conspiracy to distribute crack cocaine. Martin had previously been convicted of possession of crack cocaine with the intent to deliver and possession of cocaine with the intent to deliver in state court.
Phillips, Shears, and Martin were indicted along with co-defendants Alston Campbell, Sr., Alston Campbell, Jr., William Campbell, and Willie Carter. These four men were convicted at trials held earlier this year. All four will be sentenced at a later date.
The evidence at the trials for the co-defendants showed that the seven men were working together with others to sell cocaine and crack cocaine in the Waterloo area. Evidence at the trials included wiretaps done by both the DEA and FBI that showed the group had pounds of cocaine being brought to Iowa from out of state. The group then redistributed it as powder and crack cocaine in Waterloo.
The case is being prosecuted by Assistant United States Attorneys Emily K. Nydle and Rich Murphy and was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Phillips, Shears, and Martin are being held in the United States Marshal’s custody until they can be transported to a federal prison. All three were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.
There is no parole in the federal system.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2045.
Follow us on Twitter @USAO_NDIA.
Three More Men Charged with Interstate Transport of $2.3 Million of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Three more Florida men have been charged for their alleged roles in transporting $2.3 million worth of stolen perfume products out of New Jersey, U.S. Attorney Craig Carpenito announced.
Juan Crespo, 41, of Homestead, Florida, and Felix Castillo, 45, and Asnay Fernandez, 28, both of Hialeah, Florida, were each charged by complaint with one count of conspiring to transport stolen property in interstate commerce. All three defendants are scheduled to appear today in Newark federal court before U.S. Magistrate Judge Leda Dunn Wettre.
Previously, two other defendants, Carlos Duvergel and Yunior Estevez, were charged in this case in June 2018; their charges remain pending.
According to documents filed in this case and statements made in court:
In November 2017, the defendants and others obtained unauthorized access to a warehouse storing perfume products in Edison, New Jersey, and drove away with at least one tractor trailer filled with stolen perfume products. The value of the stolen perfume products is estimated to be $2.3 million.
The count with which the defendants are charged is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offenses.U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the Edison Police Department, under the direction of Chief Thomas Bryan, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charges and allegations against the defendants are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Thirty-Two Kilos of Fentanyl Worth $28.8 Million Seized and Two Dominican Nationals Arrested for TraffickingRead the Press Release
BOSTON – Two Dominican nationals were arrested yesterday and charged in federal court in Boston with fentanyl trafficking in connection with the seizure of approximately 32 kilos of fentanyl with an alleged street value of $28.8 million. A firearm and $20,000 were also recovered.
Angel Javier Morell-Oneill, 33, a Dominican national residing in Methuen, was charged with one count of possession with intent to distribute 400 grams or more of fentanyl, and Jose A. Rodriguez, 41, was charged with one count of conspiracy to possess with intent to distribute and to distribute fentanyl.
According to the charging documents, law enforcement began investigating Morell-Oneill in June 2018. The investigation culminated with a traffic stop on Pleasant Valley Street in Methuen on Oct. 22, 2018, during which officers seized two kilos of fentanyl from the front passenger seat of the vehicle Morell-Oneill was driving.
After seizing the drugs, law enforcement executed a search warrant at Morell-Oneill’s residence in Methuen where they allegedly seized approximately 30 kilos of fentanyl, drug distribution paraphernalia, and a loaded firearm.
Rodriguez was arrested when he arrived at Morell-Oneill’s residence to deliver $20,000, which was to be used to pay for half of the transportation costs of a narcotics shipment recently delivered to Morell-Oneill. The money was seized from a hidden compartment in a car driven by Rodriguez.
Rodriguez faces a sentence of no greater than 20 years in prison, a mandatory minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. Morell-Oneill faces a mandatory minimum of 10 years and up to life in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Valuable assistance was provided by the Somerville, Medford, Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas couple who had thousands of online sales of fentanyl and other drugs pleaded guilty to drug crimesRead the Press Release
A Texas couple who had thousands of online sales of fentanyl and other drugs pleaded guilty to drug crimes.
Matthew and Holly Roberts pleaded guilty to conspiracy to distribute controlled substances and other crimes. They are scheduled to be sentenced on Feb. 7, 2019.
The Roberts are both 35 and from San Antonio. The Roberts’ created and operated several dark net marketplace accounts, including MH4LIFE, TRAPPEDINTIME, FASTFORWARD and MRHIGH4LIFE. They operated these accounts on dark net marketplace websites, including Dream Market, Silk Road, AlphaBay, Darknet Heroes League, Nucleus and several others.
MH4LIFE had the highest number of verified transactions worldwide of any fentanyl dealer on the dark net based upon a review of the Dream Market when the Roberts’ were arrested earlier this year, according to court documents.
They used these accounts between 2011 and May 12, 2018 to possess and distribute fentanyl, MethoxyAcetylFentanyl, other fentanyl analogues, heroin, cocaine, methamphetamine, MDMA, LSD, marijuana, Xanax, Oxycodone and other drugs.
The Roberts’ used private messaging, encryption software, Virtual Private Networks and proxies through the TOR network to provide security for the criminal organization. They used decoys, such as glow bracelets and other mundane items, to hide the fact they were mailing narcotics..
They also used cryptocurrency to launder their criminal proceeds. Customers used digital currency to purchase narcotics, which the defendants laundered and ultimately converted into official fiat currency and spent on person goods and services, according to court documents.This case was prosecuted by Assistant U.S. Attorneys Matthew J. Cronin and Daniel J. Riedl following an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The charges are part of “Operation Darkness Falls,” a multiagency federal task force specializing in the investigation and prosecution of dark net criminals.
Talisheek Man Pleads Guilty to Methamphetamine Trafficking and Illegal Possession of FirearmsRead the Press Release
NEW ORLEANS – U.S. Peter G. Strasser announced that JAMES MOORE, JR., age 48, of Talisheek, Louisiana, pleaded guilty today to possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 924(c)(1)(A), respectively.
According to previously filed court documents, beginning in January 2016, the FBI conducted numerous controlled purchases of methamphetamine from MOORE. Their investigation further revealed MOORE to be in possession of numerous firearms. On August 26, 2016, several search warrants were executed and MOORE was arrested by the FBI.
As to the drug charges, MOORE faces a maximum penalty of up to twenty years imprisonment, a $1,000,000 fine, and a five year term of supervised release. As to the weapons charge, MOORE faces a minimum of five years to life imprisonment (to be served consecutive to any other imposed terms of imprisonment), a $250,000 fine, and a three year term of supervised release. MOORE will be sentenced on February 20, 2019.
U.S. Attorney Strasser praised the work of the FBI New Orleans Division JTTF for investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
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Springfield Man Sentenced to 20 Years for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for the sexual exploitation of a child.
Ryan Lee Christoph, 26, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. The court also sentenced Christoph to spend the rest of his life on supervised release following incarceration.
On June 27, 2018, Christoph pleaded guilty to the sexual exploitation of a child.
On Aug. 15, 2017, Springfield police officers responded to a report that an individual had found Christoph and a 14-year-old female engaged in sexual activity. The victim told investigators that she and Christoph had been in a sexual relationship since before Christmas 2016.
On Oct. 20, 2017, Facebook reported that child pornography was being exchanged by Christoph and the same child victim in chat sessions in Facebook Messenger between May 7 and Aug. 11, 2017. Images and videos depicted Christoph engaged in sexual activity with the child victim. During the messages, Christoph asked the child victim to send him sexually explicit pictures and videos. Investigators located numerous video files of child pornography that depicted the child victim and Christoph engaged in sexually explicit activity.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Sentenced for Illegally Possessing Firearms and AmmunitionRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for being a felon in possession of firearms and ammunition.
Hector Navarro, 29, was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight years in prison and three years of supervised release. In June 2018, Navarro pleaded guilty to two counts of being a felon in possession of a firearm and ammunition.
In September 2016, Navarro possessed a Mossberg, model 500, 12 gauge shotgun. In October 2016, he possessed a Stoeger, model Cougar 8000, 9mm pistol; an Irwindale Arms Inc., model Automag III, .30 caliber pistol; a Coast to Coast, model CC660, 12 gauge shotgun; 12 rounds of 9mm ammunition; one round of .380 ammunition; and three rounds of .30 caliber ammunition.
Due to a prior conviction of a crime punishable by imprisonment for more than one year, Navarro is prohibited from possessing firearms.
United States Attorney Andrew E. Lelling; Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Skowhegan Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Christopher Kruse, 50, of Skowhegan, Maine, pled guilty today in U.S. District Court to receiving and possessing child pornography.
According to court records, in November 2017, Kruse used the internet to receive several videos depicting child pornography, some depicting children under 12 years old. He added these videos to a collection of child pornography he had kept on his personal computer since 2015. The collection was discovered on November 28, 2017 when law enforcement agents executed a search warrant at Kruse’s home.
Kruse faces between five to 20 years in prison, a $250,000 fine, and between five years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Penobscot County Sheriff’s Office and the Bangor and Skowhegan Police Departments. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Seller of Shipping Containers Heads to Prison for Securities SchemeRead the Press Release
HOUSTON – A 54-year-old resident of Kingwood and Panama City, Panama, has been ordered to federal prison for mail fraud and ordered to pay more than $8 million in restitution, announced U.S. Attorney Ryan K. Patrick. Steven Patrick Jones pleaded guilty May 1, 2014.
Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Jones a total sentence of 85 months in federal prison. He was further ordered to pay restitution to victims in the amount of $8.2 million.
Jones has admitted he and his partner - John Patrick Acord, 75, of Magnolia - formed a company called Intermodal Wealth (IW) to sell shipping containers. Dean Lester Springer Sr., 58, of Hillsboro, Oregon, worked as a salesman for IW from May to November 2012.
Intermodal offered to sell the containers to investors, then lease the containers for them. Jones promised to pay their investors 16% per year from the proceeds of the leases. However, the company had few containers and did not lease any of them. Payments were made to investors, but the funds came from subsequent investors rather than from true proceeds.
The Texas State Securities Board issued an emergency cease and desist order against IW from offering securities in Texas on July 20, 2012, claiming the company was engaged in fraud and that their acts threatened immediate and irreparable harm to the public. They also included information about their criminal histories.
As a result of the publicity following the order, Springer formed World Container (WC) on Nov. 30, 2012, offering to sell securities to investors. Specifically, he promised to use investor funds to purchase shipping containers for the investors and make money for them by leasing the containers as he had done as a salesman for IW.
He told Investors that WC was independent of IW and its associated companies. However, Springer sent the contracts, investments and money received from WC investors to Jones and IW in Panama. Springer did not purchase or lease containers for investors as promised. Many WC investors were not told IW was receiving their funds, nor about the criminal records, extensive civil judgments, tax liens or Securities and Exchange Commission injunctions against Jones and Acord. Springer also failed to reveal to investors that he received a commission from investments from Jones and Acord.
Through WC, Springer recruited new investors using a business model very similar to IW. WC received $3,927,189.28 from investors and paid $728,886.38 in returns. Investors lost $3,198,302.90 as a result of the scheme.
Intermodal received more than $5.5 million from investors throughout the United States and worldwide. Jones, his family and partners spent the majority of the investment funds they received.
Acord and Springer also pleaded guilty and were later sent to prison.
Jones has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service conducted the investigation with the assistance of the Texas State Securities Board. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Seattle Man Given Federal Prison Sentence for Fraud Involving Former Oregon Department of Energy EmployeeRead the Press Release
PORTLAND, Ore. – Martin J. Shain, 61, of Seattle, Washington, was sentenced today to 46 months in federal prison and three years’ supervised release for engaging in a fraud scheme with a former Oregon Department of Energy Employee. Shain was also ordered to pay more than $520,000 in restitution.
“At the expense of taxpayers, small businesses, and the State of Oregon, Martin Shain and Joseph Colello orchestrated a corrupt scheme to profit off the sale of government tax credits. Corruption schemes involving public employees foster a distrust in government that can take years to restore,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Mr. Shain undermined the process of fair and open competition when he paid kickbacks in exchange for ODOE tax credit sales,” said IRS-Criminal Investigation Special Agent in Charge Darrell Waldon. “IRS-Criminal Investigation is committed to investigating individuals who engage in corruption and tax fraud.”
“Treating a government program as a personal ATM risks the integrity of all public servants who have responsibility for protecting Oregon's resources. The fight against public corruption is a high priority for the FBI, and we look to the public to help us identify those government officials who are taking advantage of their powers and positions," said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents, between June 2012 and March 2015, Shain and Joseph Colello, a former employee of the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program, maintained a secret business relationship whereby the two would personally profit from the sale and purchase of Oregon BETCs.
Shain and Colello devised a plan whereby Colello would give Shain the names of BETC sellers and interested buyers—information he had access to as an ODOE employee. Colello would then contact the sellers and buyers to negotiate credit transfers, but made it appear as though the Shain had brokered the deals. Shain created a company in the name of his relative in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Shain charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar transfers. Colello would receive a portion of this fee as a kickback.
Between 2012 and 2015, Shain deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. He would transfer a portion of these funds into a personal account from which he would purchase and issue biweekly cashier’s checks payable to Colello. Over the course of the conspiracy, Shain purchased and issued approximately 58 cashier’s checks to Colello or Colello’s girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme. Shain failed to report more than $1.34 million in income received brokering tax credit sales on four income tax returns between 2012 and 2015.
Colello pleaded guilty to one count of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, one count of conspiracy to defraud the United States, and one count of filing a false income tax return on March 15, 2018. On April 3, 2018, he was sentenced to 60 months in prison and was ordered to pay more than $81,000 in restitution.
Shain previously pleaded guilty to one count each of conspiracy to defraud the U.S. and tax evasion on June 20, 2018. He will self-surrender to the U.S. Marshals on October 25, 2018.
The case was investigated by IRS Criminal Investigation and the FBI and prosecuted by Claire M. Fay and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.
Prescription Drug Take-Back Day Set for Saturday, October 27, 2018Read the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen announced that the United States Attorney’s Office is proud to partner with local, state, and federal law enforcement agencies, the Roanoke Area Youth Substance Abuse Coalition (RAYSAC), the Drug Enforcement Administration, and the Western Virginia Water Authority to collect expired, unused, and unwanted prescription drugs for safe destruction on Saturday, October 27, 2018, from 10 a.m. to 2 p.m. at 13 area locations in the Roanoke Valley, and many more locations throughout the district. The public is invited to bring unused, unwanted, and expired medications to this free and anonymous event that is part of the DEA’s nationwide prescription drug “Take-Back” program that seeks to prevent prescription pill abuse, theft, and environmental concerns.
“Properly disposing of unused and expired medications is an important part of making our communities safer,” United States Attorney Cullen stated today. “This initiative provides an opportunity to clean out your medicine cabinet and prevent accidental ingestion by children in your homes. It also helps reduce the risk of abuse and misuse of prescription drugs. We can all be a part of combatting the opioid epidemic by keeping our own homes free from unwanted and expired medications.”
This is the Roanoke Valley’s 16th take-back event. To date, over 307,000 pounds of prescription medications have been turned in across the Commonwealth, including over 30,000 pounds at the last event in April 2018, with the Roanoke-area collection sites being one of the largest collection locations in the state. This Saturday there will be 13 collection locations in the valley: the Department of Veterans Affairs hospital entrance at Building 143 in Salem, CVS Pharmacy parking lots at 9th Street SE and Towers Shopping Center, CVS Pharmacy at Target in Roanoke, Franklin County Sheriff’s Office Westlake Substation in Hardy, Kroger parking lots on Lake Drive Plaza in Vinton, Tanglewood Mall, Valley Gateway, and in Daleville, the Roanoke County Fire and Rescue Station #1 on Hershberger Road, the Super Shoes parking lot on West Main in Salem, Walgreens parking lot at the corner of Electric Road and Brambleton Avenue, and Virginia State Police Division VI Headquarters on Main Street in Salem.
The public is encouraged to visit https://takebackday.dea.gov/ to find other collection sites sponsored by law enforcement throughout the region. The site also includes a locator feature to find year-round disposal collection sites hosted at local law enforcement agencies.
This initiative addresses vital public safety and public health issues. Medications that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S., in the valley, and throughout the district are increasing at alarming rates, as are the numbers of accidental poisonings and overdoses due to these drugs. Studies show that 90% of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In fact, the majority of commonly-abused drugs by teenagers are prescription medications.
In addition, flushing medications down the drain can result in trace amounts of pharmaceuticals showing up in our nation’s waterways. This initiative offers a safe and convenient disposal option for district residents.
This initiative is sponsored by RAYSAC, the Western Virginia Water Authority, Prevention Council of Roanoke County, Botetourt County Sheriff’s Office, Franklin County Sheriff’s Office, U.S. Department of Veteran’s Affairs Police, U.S. Drug Enforcement Administration, Roanoke County Police Department, Roanoke Police Department, Roanoke County Sheriff’s Office, Roanoke Valley Academy of Medicine, Salem Police Department, the U.S. Attorney’s Office for the Western District of Virginia, Vinton Police Department, Virginia State Police, Vinton Police Department, and the Virginia National Guard.
By working together to provide a free, secure place to dispose of unwanted medications, these partner agencies are helping prevent drug abuse, protecting our valley’s waterways, and making our communities safer.
Preble County Man Sentenced for Possessing Child PornographyRead the Press Release
DAYTON – Jeremiah Armstrong, 29, of West Alexandria, Ohio, was sentenced in U.S. District Court to 72 months in prison for possessing images and videos of child pornography, including those of prepubescent children.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, in January 2016, two undercover officers from the Belmont and Hamilton county sheriff’s offices downloaded child pornography from Armstrong’s BitTorrent account. For example, one file includes a video depicting an Asian female minor and an adult male. The male sexually abuses the victim for more than an hour by performing oral sex on the child, having the child perform oral sex on him, engaging in vaginal and anal intercourse with the child, digitally penetrating the child and placing a vibrator in the victim’s vagina.
In December 2016, FBI agents seized Armstrong’s computer and discovered more than 600 videos and 200 images of child pornography. One such video is described to as “tied 8yo Cambodian boom-boom girl…raped by sex-tourist” and depicts an adult white male raping a child whose wrists are bound to her ankles by duct tape.
“Armstrong’s child pornography collection contained 87 identified series, with approximately 72 identified victims. These are real children who were sexually abused because people like Armstrong created a demand for the content to satisfy their own desires,” U.S. Attorney Glassman said. “Armstrong’s prolific collection included images of children bound by tape or rope, having sex objects used on them or involved in acts of bestiality. This is simply heinous.”
Armstrong pleaded guilty in January 2018 to possessing child pornography. He has been in custody since October 2017.
U.S. Attorney Glassman commended the cooperative investigation by the FBI and Belmont and Hamilton county sheriff’s offices, and the assistance of the West Alexandria Police Department and Preble County Sheriff’s Office, as well as Assistant United States Attorney SaMee Harden, who is representing the United States in this case.
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Pocatello Man Sentenced to 17.5 years in Federal Prison for Transporting Child PornographyRead the Press Release
POCATELLO – Christopher L. Holtry, 41, of Pocatello, was sentenced yesterday in U.S. District Court to 210 months in federal prison, followed by eight years of supervised release, for transportation of child pornography, U.S. Attorney Bart M. Davis announced. U.S. District Judge David C. Nye also ordered Holtry to forfeit the computer used in the commission of the charged offense. Holtry pleaded guilty to the crime in May.
According to the plea agreement, Homeland Security Investigations received an investigative lead from the Royal Canadian Mounted Police National Child Exploitation Coordination Centre regarding users of a chatroom called “Tabou5.” In the chatroom, a user shared an image of child pornography and made assertions that the female child depicted in the image was his daughter. The internet protocol addresses associated with the chatroom user’s online activity were registered to Holtry at his Pocatello residence. When law enforcement agents executed a search warrant at Holtry’s residence, they seized a number of phones and computers. A forensic search of these devices revealed 134 images and 20 videos of child pornography. In an interview, Holtry admitted to uploading and receiving child pornography. He estimated having viewed and possessed approximately 1,000 images of child pornography.
“This sentence sends a strong message to those who seek to harm our most innocent and vulnerable,” said U.S. Attorney Davis. “We and our investigative partners will diligently continue our efforts to bring these criminals to justice.”
“Those who exploit children must be stopped,” said Brad Bench, Special Agent in Charge of HSI Seattle. “These types of operations are imperative to safeguarding our children and we, alongside our partners, are committed to finding and putting a stop to these crimes.”
This case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Pocatello Police Department and the Idaho Internet Crimes Against Children Task Force.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Pittsburgh Man Sentenced for Assaulting Two Federal Officers in Federal CourthouseRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court for assaulting two federal officers, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak sentenced Leonard Rushin-Felder, 22, to one year and one day of imprisonment for each of two counts of assault of a federal officer. The sentences will run concurrently. Rushin-Felder previously pleaded guilty before Judge Hornak on June 14, 2018.
In connection with his guilty plea, Rushin-Felder admitted that on May 2, 2017, he appeared before United States Magistrate Judge Robert C. Mitchell in the Joseph F. Weis, Jr., United States Courthouse for a detention hearing related to separate drug trafficking and firearms charges pending against him. At the conclusion of the detention hearing, Judge Mitchell ordered that the defendant be detained pending trial. The defendant further admitted that when two Deputy United States Marshals attempted to escort him from the courtroom, he forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with the Deputy Marshals while they were engaged in the performance of their official duties as federal law enforcement officers. During the ensuing struggle, the defendant made physical contact with the two Deputy Marshals. As part of his guilty plea, the defendant acknowledged that additional law enforcement and court personnel were needed to restrain him and assist with his removal from the courtroom.
Assistant United States Attorneys Eric G. Olshan and Rachael L. Dizard prosecuted this case on behalf of the government. The United States Marshals Service conducted the investigation of Rushin-Felder.
Ozark Sex Offender Sentenced to 10 Years in Federal Prison for Child PornographyRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Roy Breedlove, age 54, of Ozark, Arkansas, was sentenced today to 120 months in federal prison without the possibility of parole followed by five years of supervised release on Possession of Child Pornography. The Honorable P.K. Holmes, III, Chief United States District Judge presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in May of 2017, federal law enforcement developed information that Breedlove was in possession of child pornography. During the ensuing investigation, a federal search warrant was obtained by the FBI to search his residence. Upon execution of the warrant, law enforcement located several items of digital evidence. A subsequent forensic examination of the confiscated items revealed multiple images of child pornography, including images of adult males engaging in various sex acts with prepubescent females.
Breedlove was indicted by a federal grand jury in April of 2018 and entered a guilty plea in June of 2018. During his change of plea, the Government presented the Court with evidence that Breedlove had previously been convicted of Sexual Abuse and Attempted Rape.
This case was investigated by the FBI. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Oklahoma City Man Receives 18 Months in Prison for Use of Credit Profile NumbersRead the Press Release
OKLAHOMA CITY – CALVIN WAYNE CADE, JR., 28, of Oklahoma City, has been sentenced to eighteen months in prison for using credit profile numbers, or CPNs, to falsely report his Social Security Number in credit applications, announced Robert J. Troester of the U.S. Attorney’s Office.
According to charges filed in November 2017, Cade used CPNs, also known as "credit privacy numbers" or "credit protection numbers," instead of his own Social Security Number when he applied for financing at retailers and financial institutions. CPNs, which are actually stolen Social Security Numbers, are marketed to individuals with poor credit history as a way to get a fresh start and establish a new credit identity. The CPNs used by Mr. Cade were stolen Social Security Numbers belonging to children born in 2006 and 2008. By using CPNs instead of his own Social Security Number on credit applications, Cade deceived retailers, credit card companies, banks, and credit unions into believing he had a better credit history than he had actually earned. He purchased five vehicles, household furnishings, televisions, computers, and other goods, and then made little to no payments on the credit accounts, which caused financial losses to his creditors.
On March 5, 2018, Cade pleaded guilty to knowingly making a false statement to a financial institution after he used a CPN instead of his own Social Security Number when he applied for an auto loan from BBVA Compass Bank.
Today U.S. District Judge David L. Russell sentenced him to eighteen months in prison, to be followed by three years of supervised release. He must also pay $112,924.54 in restitution to BBVA Compass Bank and the other creditors he defrauded.
This case is the result of an investigation by the Social Security Administration’s Office of the Inspector General, the FBI, and the United States Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Jessica L. Perry.
Reference is made to public filings for further information.
Oil-and-Gas Businessman Pleads Guilty to Defrauding Investors out of MillionsRead the Press Release
Texas oil-and-gas mogul Christopher A. Faulkner has pleaded guilty to securities fraud, engaging in illegal monetary transactions, and tax evasion, U.S. Attorney for the Northern District of Texas Erin Nealy Cox announced today.
A frequent media commentator and self-proclaimed “frack master,” Faulkner, 41, admits he bilked investors out of millions of dollars and concealed millions more from the IRS.
According to documents unsealed today, from 2011 to 2016, Faulkner raised more than $71 million from working interest investors, who took on a fixed portion of projected drilling costs in exchange for a share in his oil and gas profits.
But in marketing materials distributed to these investors, Faulkner inflated the estimated drilling cost by as much as 800 percent, allowing his three companies – Breitling Energy Corp., Crude Energy, LLC and Patriot Energy, Inc. – to pocket the difference between his projections and the actual cost of the wells.
He also gave would-be investors a “Geology Report,” ostensibly prepared by an independent expert, estimating future production for each well. Unbeknownst to them, the report was generated by a geologist on Faulkner’s payroll, and consistently overstated the wells’ potential.
Faulkner routinely oversold shares, then transferred investment funds into comingled accounts, despite promising investors their money would be deposited in a segregated bank account used only to pay for drilling activities.
Over a five-year period, he admits, he diverted approximately $23 million for his own personal benefit, shelling out hundreds of thousands of dollars at a time for luxury travel, professional concierge services, maintenance of multiple residences, and at least seven vehicles, including an Aston Martin, a Bentley, and a Mercedes Benz. During that time, his companies paid out just $6.2 million to investors, according to the criminal complaint filed in June.
“As Mr. Faulkner continued to deceive his investors about drilling expenses and potential oil well output, he spent their millions of investment dollars on his lavish lifestyle, ” said Nealy Cox. “Let this case send a message that this type of egregious investor fraud will be prosecuted to the fullest extent of the law.”
In 2014, Faulkner says, he concealed at least $4.5 million in taxable income from the federal government, failing to file a return or pay income tax.
Following an FBI raid on his offices in Dallas in April 2016, Faulkner was arrested in June 2018 at the Los Angeles International Airport, and later transported to Texas. He is currently in federal custody at FCI Seagoville, and now faces 12 years in prison and $350,000 in fines. According to the terms of his plea agreement, he will be required to pay restitution to those he defrauded.
Faulkner’s guilty plea comes on the heels of a civil settlement with the Securities & Exchange Commission (SEC), which filed a complaint in June 2016 alleging multiple violations of federal securities laws. Faulkner’s settlement with the SEC, which is subject to court approval, orders him to disgorge $23.8 million; permanently enjoins him from violating, among other things, the antifraud provisions of the federal securities laws and from participating in any unregistered securities transactions; and bars him from serving as an officer or director of any SEC-reporting company and from participating in any offering of a penny stock.
The Internal Revenue Service – Criminal Division, Federal Bureau of Investigation, and U.S. Postal Inspection Service conducted the criminal investigation; Assistant U.S. Attorneys Christopher Stokes, Katherine Miller, and Mark Tindall prosecuted the criminal case.
Nixa Man Sentenced to 12 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Nixa, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the internet.
Jeffrey Scott Seaton, 32, was sentenced by U.S. District Judge Roseann Ketchmark to 12 years and seven months in federal prison without parole. The court also sentenced Seaton to 10 years of supervised release following incarceration.
On May 21, 2018, Seaton pleaded guilty to receiving and distributing child pornography. Seaton admitted that he downloaded child pornography from the internet and traded child pornography via a peer-to-peer file-sharing network.
Law enforcement officers identified Seaton’s computer during an undercover investigation and downloaded images and videos of child pornography from Seaton’s computer. Officers executed a search warrant at Seaton’s residence on Jan. 9, 2018, and seized a laptop computer, which contained images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Christian County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nigerian Immigrant Pleads Guilty to Day Care Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – The Nigerian owner of a day care center in Kansas City, Mo., pleaded guilty in federal court today to submitting false information to the government as part of a fraud scheme to receive federal child care subsidies.
Hauwa Al-Hassan, 49, of Raymore, Mo., pleaded guilty before U.S. Chief District Judge Greg Kays to making false statements to the government.
Al-Hassan, a Nigerian immigrant, is the owner and CEO of Guidance Child Care Center, LLC, a child day care center at 8101 E. Bannister Rd., Kansas City, Mo. Al-Hassan is also the vice president of Guidance Academy of Science, Technology, Engineering and Math.
By pleading guilty today, Al-Hassan admitted that she engaged in a pattern of fraudulent billing in order to receive funding to which she was not entitled under the federal Child Care and Development Fund grant program. Al-Hassan filed claims that reported more hours and children than actually attended her daycare center.
The Child Care and Development Fund provides daycare subsidies for low-income families where the parents are employed or engaged in job training. Providers, such as Guidance, contract with the Children’s Division of the Missouri Department of Health and Senior Services and submit claims electronically. Al-Hassan signed a contract with the Missouri Department of Social Services on May 3, 2010, to operate Guidance as a licensed childcare center providing childcare services to low-income families.
Al-Hassan admitted that she deliberately filed false attendance reports for children for more hours than they actually attended Guidance, causing a loss totaling $74,000. Under the terms of today’s plea agreement, Al-Hassan must pay that amount in restitution to the Department of Health and Human Services. She must pay $10,000 of that restitution amount prior to her sentencing hearing.
Since 2013, Guidance has been audited formally or informally by the state on four occasions. Each audit found many hours inaccurately billed for childcare services. Based on Guidance’s history of billing for services not rendered and sharing of employees and billed children with other daycares believed to be running fraud schemes on the CCDF program, two pole cameras were installed near Guidance from Feb. 11, 2016 to March 20, 2016. One camera focused on the front doors of Guidance; the second camera showed the parking lot and rear doors. All doors in and out were covered by a pole camera. Timesheets submitted with the billing were compared with the information on the timesheets to the children seen on the pole cameras being dropped off and picked up from Guidance during that time. There were significant discrepancies between the timesheets submitted and the pole camera footage.
This case is the result of a nationwide sweep that targeted childcare center fraud schemes. The national law enforcement operation in Missouri and six other states was the result of separate, but related, federal investigations into childcare center fraud that resulted in a loss of more than $1 million to the government.
Under federal statutes, Al-Hassan is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, Office of Investigations, the FBI, the Missouri Department of Social Services – Division of Legal Services Investigations, the Kansas City, Mo., Police Department and the Raymore, Mo., Police Department.
New London Drug Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY WHITLEY, 35, of Hartford and New London, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, on March 3, 2017, a court-authorized search of a New London apartment connected to Whitley and his nephew, Bashon Whitley, revealed approximately 14 grams of heroin, approximately 27 grams of cocaine, approximately 150 grams of crack cocaine, items used to process and package narcotics for street sale, a .380 caliber semiautomatic handgun, ammunition and $9,180 in cash. Anthony and Bashon Whitley were arrested on state charges at that time.
Anthony Whitley has been detained since his arrest on March 3, 2017. On July 31, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and 28 grams or more of cocaine base (“crack”).
Whitley has eight prior convictions, including state felony convictions for drug and firearm offenses.
On May 30, 2018, Bashon Whitley pleaded guilty to the same charge. On September 5, he was sentenced to 60 months of imprisonment.
This matter has been investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East, and New London Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
New Jersey Man Pleads Guilty to Embezzling from A Decedent’s Estate for Which He Was Court-Appointed AdministratorRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”) and Thomas P. DiNapoli, New York State Comptroller, announced that GREGORY BAYARD pled guilty to wire fraud today in White Plains federal court. The charge arose out of BAYARD’s embezzlement of approximately $1.4 million from a decedent's estate for which he served as a court-appointed administrator.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As a fiduciary of an estate, Gregory Bayard’s duty was to protect the assets of the decedent and ensure that the rightful beneficiaries receive their inheritance. Instead, Bayard violated his obligation and used the estate for his own use, spending nearly more than $1 million of the estate’s money on home renovations, college tuition, and other personal expenses. Bayard now faces significant prison time for his crimes.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Instead of being satisfied with the fees the law prescribed as an estate administrator, Gregory Bayard decided to steal from the fund he was hired to manage to bankroll his lavish lifestyle. This case highlights the need for proper checks and balances to mitigate the risk of theft. Inspectors caught this entrusted administrator with his hand in the cookie jar.”
New York State Comptroller Thomas P. DiNapoli said: “Administrators should protect an estate and serve its heirs, not steal from them. This is the second individual charged in trying to allegedly exploit this estate identified as part of our joint investigation. I thank both U.S. Attorney Geoffrey Berman and the U.S. Postal Inspection Service for their collaboration on this case.”
According to the allegations contained in the Information:
BAYARD was appointed administrator of the estate of a former resident of Mt. Vernon by the Surrogate’s Court in 2008. His duties as administrator included collecting the assets of the estate. As an administrator, BAYARD had a fiduciary duty to the estate and to the decedent’s son, the sole beneficiary of his father’s will. New York law provides, for a fee, estate administrators like BAYARD based on a percentage of the value of the estate’s assets.
In 2009, the decedent’s son retained an attorney and filed a motion in the Surrogate’s Court to remove BAYARD as the administrator of his father’s estate. While the motion was pending, BAYARD embezzled more than $1.4 million from the estate’s bank account. From June 2011 to June 2012, BAYARD wrote approximately 14 checks totaling more than $435,000 from the estate’s account to himself. From December 2012 to May 2016, BAYARD caused more than 70 electronic wire transfers of a total of more than $1 million from the estate’s account to his personal account. BAYARD spent the money on home renovations, college tuition, and other personal expenses and transferred some of the money to family members.
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BAYARD, 58, of Scotch Plains, New Jersey, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.
Mr. Berman praised the outstanding investigative work of the Postal Inspection Service and the New York State Comptroller.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Mexican National Sentenced to over 12 Years in Prison for Distributing MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Martin Gasca-Rojas, 49, of Mexico, was sentenced to 12 years and seven months in prison, for distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, between October 2016 and May 2017, Gasca-Rojas distributed nearly 4 pounds of methamphetamine on three occasions. In October 2016, Gasca‑Rojas sold 1 pound of methamphetamine for $3,300. In November 2016, he arranged a sale of 2 pounds of methamphetamine for $6,500, and had two other individuals deliver the methamphetamine. Finally, in May 2017, he sold 1 pound of methamphetamine for $3,600.
This case was the product of an investigation by the Drug Enforcement Administration and Homeland Security Investigations (HSI). Assistant U.S. Attorney Audrey B. Hemesath prosecuted the case.
Mexican Drug Dealer Pleads Guilty to Baltimore County Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – On October 22, 2018, Gary Gaines-Hidalgo, age 26, of Baja California, Mexico, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Gaines’s plea agreement, HSI and the Baltimore County Police Department were investigating a drug trafficking organization in Baltimore County. Gaines was identified as a member of the organization, along with Tony Lee Bauer and four others. In December 2017, Gaines arranged to purchase kilograms of cocaine for $26,500/kilogram from a confidential source (CS), who was working with law enforcement. Thereafter, Gaines arranged to resell the cocaine to several associates for $28,000/kilogram. Gaines arranged to have 10 kilograms of cocaine delivered to him in Baltimore.
As detailed in his plea, on January 26, 2018, Gaines and a co-conspirator entered the United States from Mexico, then traveled to Baltimore. Gaines and his co-conspirator agreed to sell three kilograms of cocaine to their associates, with additional sales of kilograms of cocaine to follow the initial purchase. Gaines agreed to meet the CS in the parking lot of a Baltimore hotel, and told the associates to whom he was selling three kilograms of cocaine to also meet him there.
Three cars arrived at the agreed-upon location, one driven by the CS and two other vehicles being operated by Gaines’ associates. Gaines was in the rear passenger seat of a car being driven by Bauer. The CS opened the trunk of his car, which contained two kilogram-shaped packages, one of powder cocaine and one kilogram of “sham,” or fake narcotics. Gaines placed his hand in the bag containing the packages and members of HSI and the MSP Tactical Team approached. The vehicles being driven by Gaines’ associates attempted to drive away, but were stopped. In the first car, which is the car Gaines had been riding in, a loaded 9mm semi-automatic pistol was recovered from the center console and a loaded .45-caliber semi-automatic pistol was recovered from the rear passenger-side floor of the vehicle. On the rear seat was a vinyl bank bag containing bank-banded cash and a white bag also containing cash. A search of Bauer also recovered banded up amounts of cash. In all, law enforcement recovered $129,583 in cash from the defendants, their vehicles, and their residences.
As part of his plea agreement, Gaines must forfeit the two loaded firearms, the cash recovered after the arrests of Gaines and his co-defendants, and four vehicles, including a Range Rover, a Mercedes Benz, a Cadillac Escalade, and a Cadillac CTS.
Gaines faces a maximum sentence of 10 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for January 2, 2019 at 12:00 p.m.
Tony Lee Bauer, age 36, of Baltimore, Maryland, previously pleaded guilty to the drug conspiracy and to possession of a firearm in furtherance of a drug trafficking crime. Judge Russell has scheduled sentencing on January 2, 2019, at 11:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended HSI Baltimore, the Baltimore County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher Romano and Derek E. Hines, who are prosecuting the case.
Mexican Citizen Pleads Guilty to Faking His Own Kidnapping in an Attempt to Obtain an Immigration VisaRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of ALEJANDRO MARIO CORTES, 46, to one count of visa fraud and one count of illegally reentering the United States. CORTES, who was initially charged via criminal complaint on August 28, 2018, pleaded guilty earlier today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea, between April 11, 2018 and August 29, 2018, CORTES conspired with another individual to fraudulently apply for and obtain a U Visa based on the false claim that CORTES was kidnapped from his home in Chicago, Illinois and taken against his will to St. Paul, Minnesota. As part of the scheme, CORTES and his co-conspirator traveled together from Illinois to Minnesota and stayed in a storage facility for several days. On April 17, 2018, the co-conspirator drove CORTES to St. Paul and, at CORTES’ request, bound the defendant’s mouth and hands with duct tape and left him near Randolph Avenue in St. Paul. Law enforcement officers responded to a report made by a snowplow driver and located the individual, who later identified himself as CORTES.
In his guilty plea, CORTES admitted to telling local and federal law enforcement officers that he had been kidnapped from Chicago and transported to Minnesota against his will, and that he received multiple threatening text messages in the days leading up to the fabricated kidnapping. CORTES also admitted that he sought medical treatment at Regions Hospital for injuries he claimed to have sustained during the kidnapping, and he obtained gift cards for personal items from an organization providing services to crime victims.
CORTES is a citizen of Mexico with no lawful status in the United States. CORTES was removed from the United States in 2001, and again in 2010.
This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.
Assistant U.S. Attorney Angela Munoz-Kaphing is prosecuting the case.
Defendant Information:
ALEJANDRO MARIO CORTES, 46
Chicago, Ill.
Convicted:
- Conspiracy to commit visa fraud, 1 count
- Reentry of removed alien, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Member of Winn Parish methamphetamine distribution ring pleads guiltyRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that the last defendant in a Winn Parish methamphetamine distribution ring pleaded guilty Monday before he was scheduled to go to trial.
Jeremy Laraun Mamon, 36, of Winnfield, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell to one count of conspiracy to distribute methamphetamine. Mamon was one of 11 defendants named as part of an indictment filed September 28, 2017. According to the guilty plea, Mamon and 10 other defendants conspired to distribute methamphetamine in the Winn Parish area from October 2015 to September 2017. Ladarrius James Street, 35; Dexter Jerome Sapp, 39; Destiny Hamilton, 33; Kendrick Lamont Davenport, 44; Stephen Duncan Jr., 26; Delano C. Hall, 49; Michael Deangelo Hall, 33; and Xavier Deandre Powell, 29; all of Winnfield, as well as Cristina Daniela Santos, 26, of Los Angeles, California; and Rafael M. Powell, 33, of Atlanta, Louisiana, were also indicted.
Mamon faces 20 years to life in prison, at least 10 years of supervised release and a $20 million fine. The remaining defendants also pleaded guilty to the conspiracy count. Santos, Street and Rafael Powell pleaded guilty on September 10, 2018 and are scheduled to be sentenced December 14, 2018. Sapp pleaded guilty April 16, 2018 and is scheduled to be sentenced November 20, 2018. Hamilton and Duncan pleaded guilty on July 5, 2018. Hamilton is scheduled to be sentenced November 19, 2018. Davenport pleaded June 27, 2018 and was sentenced on September 28, 2018 to 120 months in prison and five years of supervised release. Delano Hall pleaded guilty on June 27, 2018 and is scheduled to be sentenced November 20, 2018. Michael Hall pleaded guilty on July 13, 2018. Xavier Powell pleaded guilty on August 27, 2018 and is scheduled to be sentenced on December 13, 2018.
The FBI Safe Streets Task Force and the Louisiana State Police-Alexandria Field Office Narcotics participated in the investigation. Assistant U.S. Attorneys Earl M. Campbell and Jessica D. Cassidy are prosecuting the case.
Marion County Convicted Felon Pleads Guilty to Federal Firearms OffenseRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces that Willie Iva Jennings (35, Reddick) today pleaded guilty to possessing a firearm as a convicted felon. Jennings faces a minimum mandatory penalty of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on July 15, 2018, law enforcement officers discovered Jennings behind the wheel of a recently stolen vehicle. Investigators had been led to the location using the car’s global positioning system. Jennings, the sole occupant of the car, did not have a valid Florida driver license.
While taking Jennings into custody, investigators found a loaded semi-automatic firearm in his pocket. Jennings, a convicted felon who is prohibited from possessing firearms under federal law, admitted that the firearm belonged to him. In addition, Jennings’s criminal history, including at least three felony convictions for the sale of cocaine and a separate felony conviction for resisting an officer with violence, qualifies him for enhanced sentencing as an Armed Career Criminal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Mansfield Man Sentenced to 13 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Mansfield, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the internet.
Clinton Campbell, 46, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years in federal prison without parole. The court also sentenced Campbell to spend the rest of his life on supervised release following incarceration.
On May 25, 2018, Campbell pleaded guilty to receiving and distributing child pornography. Campbell admitted that he shared child pornography over a peer-to-peer file-sharing network.
Campbell’s computer was identified during an undercover law enforcement investigation and an officer downloaded 74 complete files and 22 partial files of child pornography from Campbell’s computer. Several of the files contained depictions of children as young as five years old being sexually assaulted.
On July 18, 2017, officers executed a search warrant at Campbell’s residence and seized a laptop computer and several digital storage devices. Campbell’s laptop computer contained approximately 1,483 images and 48 videos of contraband imagery. According to court documents, Campbell digitally altered some of the images by placing the faces of children he knew (whose photos Campbell took himself) onto images of another child being sexually assaulted in order to make his experience “more real.” In some of the images, Campbell manipulated the image of the perpetrator to replace the original face with his own photograph. Other images of children appear to have been taken surreptitiously as they passed in front of his house. More than 90 children have been identified in Campbell’s collection of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, the Springfield, Mo., Police Department and the Mansfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Man Who Ran from the Cops and Tried to Ditch a Gun Sentenced to More Than Two Years in Federal PrisonRead the Press Release
A Waterloo man who possessed a gun after two previous felony convictions and ran from the police during a traffic stop was sentenced October 16, 2018, to more than two years in federal prison.
Denzale Ratliff, age 24, from Waterloo, Iowa, received the prison term after a June 25, 2018 guilty plea to possession of a firearm by a felon.
Ratliff was in possession of a gun while traveling in a car in Waterloo. Waterloo police officers stopped the car. Ratliff got out and ran from officers into a nearby residential area. Ratliff dropped the gun in the backyard of one of the houses. Officers recovered the gun and caught Ratliff. Ratliff had two prior felony convictions for burglary in state court.
Ratliff was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Ratliff was sentenced to 28 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Ratliff is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Federal Bureau of Investigation, and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-02017.
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Leader of Armed Robbery Crew who Committed a String of 10 Armed Robberies of Convenience Stores Sentenced to 11 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Tyrone Jason Murphy, age 27, of Washington, D.C., to 11 years in federal prison, followed by three years of supervised release, on federal charges of robbery, and using, carrying, and brandishing a firearm during a crime of violence. The federal charges arose from a series of 10 armed robberies of 7-Eleven convenience stores.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Anne Arundel County Police Chief Tim Altomare; and Interim Chief Amal Awad of the Hyattsville Police Department.
According Murphy’s plea agreement, from May 17, 2017 through June 16, 2017, Murphy conspired with Kione Anthony Banks, Leighton Cordell Williams, Banks’ brother, Khiry Delonte Banks, and others, to commit 10 armed robberies of 7-Eleven convenience stores. The defendants wore clothing to partially conceal their faces. Murphy drove the robbers to the store in each robbery. During seven of the robberies, Murphy brandished a firearm and ordered the store employees to open their cash registers at gunpoint. In the three other robberies, one or more of Murphy’s co-defendants brandished a firearm.
Specifically, Murphy admitted committing the following armed robberies:
- Robberies in Gaithersburg and Derwood, Maryland, on May 17, 2017, with Kione Banks and Williams;
- A robbery in Hyattsville, Maryland, on June 11, 2017, with a co-conspirator;
- A robbery in Gambrills, Maryland, on June 13, with Khiry Banks and Williams; and
- Two robberies on June 14, 2017, first in Kettering, Maryland, with Khiry Banks and Williams, then in Rockville, Maryland with Khiry Banks.
- Also, on June 16, 2017, Murphy committed three additional robberies in Glen Burnie, Millersville, and Morningside, Maryland, with all three of his co-defendants.
In all of the June robberies, Murphy brandished a firearm. After the robbery in Morningside, Murphy drove his co-defendants onto Suitland Parkway and Prince George’s County Police officers executed a traffic stop on the vehicle. A subsequent search of the vehicle recovered two firearms, cash, and cigarettes stolen during the robberies. Members of this group robbed a total of ten 7-Elevens throughout Maryland.
Khiry Banks, age 29, and Williams, age 32, both of Washington, D.C., pleaded guilty to the same federal charges of robbery, and using, carrying, and brandishing a firearm during a crime of violence in relation to their participation in the 7-Eleven robberies. Each faces a maximum of 20 years in prison for robbery and a mandatory minimum sentence of seven years, and up to life in prison, consecutive to any other sentence imposed, for using, carrying and brandishing a firearm. Judge Chuang has scheduled sentencing for Khiry Banks on November 5, 2018. No date has been set yet for Williams. Kione Anthony Banks, age 21, also of Washington, D.C., also pleaded guilty to the same charges and was sentenced to nine years in federal prison on October 10, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI Cross Border Task Force; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the City of Hyattsville Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Timothy F. Hagan, who is prosecuting the case.
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Last of the Co-Defendants Sentenced to 16 Years for Large-Scale Meth RingRead the Press Release
Starlet J. Howie, a/k/a "Star Oettle," and "Star Miller," 49, of Sparta, Illinois, has been sentenced to 192 months in federal prison for her role in a methamphetamine conspiracy, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Howie previously pleaded guilty to a one-count indictment charging her and nine others with conspiracy to distribute more than 50 grams of methamphetamine.
The indictment alleged that the offense occurred between 2015 and April 2017, in Perry, Randolph, Monroe, and St. Clair Counties. Evidence at the plea and sentencing hearings established that Howie was involved with numerous other persons in the distribution of ice. Ice is methamphetamine, which has a purity level of at least 80%. At sentencing, the district court found that Howie was responsible for the distribution of approximately 22.7 kilograms of ice. She also received an enhanced sentence for obstructing justice during the investigation.
Howie was the tenth and final co-defendant sentenced in this case. Previously sentenced co-defendants were Jeremy J. Humphries (235 months); Garrick E.R. Recker (188 months); Derek L. Sumpter (188 months); Rodney V. Howie (174 months); Jeremy S. Copple (168 months); Paige M. Gleghorn (140 months); Jordan P. Leggans (135 months); Daniel M. Dortch (120 months); and Mandy L. Hagen (84 months).
The investigation was conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office Drug Tactical Unit, Metropolitan Enforcement Group of Southern Illinois, Chester Police Department, Coulterville Police Department, Belleville Police Department, Lenzburg Police Department, Perry County (Missouri) Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
KC Man Convicted of Assaulting Federal OfficersRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted at trial today of striking two federal officers with his vehicle.
Geno A. Williams, 53, was found guilty during a bench trial before U.S. District Judge Stephen R. Bough of one count of assaulting a federal officer or employee.
According to evidence introduced during the trial, Williams entered the Social Security Administration office at 2021 Independence Ave., Kansas City, Mo., at about 10:30 a.m. on May 29, 2015. Williams checked in then sat down with his two minor children. Williams was agitated and confrontational toward the Federal Protective Service officers on duty and began filming them with his cell phone. When the officer told Williams he could not record within the facility, Williams complained he was being harassed and said the officer could not tell him what to do. The officer then told Williams he needed to leave the property.
As Williams was leaving, he told the officers that he “knew who they were,” which was taken as a threat to the officers. Two officers followed Williams out of the facility to his vehicle and were ordered by a supervisor to detain him. One of the officers went to the driver’s side door to talk to Williams, who had gotten into the vehicle and locked the doors. The officers attempted to open the vehicle’s doors while an officer walked to the rear of the vehicle and called in the license plate to headquarters.
At that point, Williams backed up the vehicle into the officer, who told Williams, “You just hit me with your vehicle, stop!” Williams continued to back up, however, continually hitting the officer and causing injury. Another officer walked in front of the vehicle. Williams sped forward, forcing the officer to dive out of the way to avoid being run over.
The incident was captured on video. Williams was arrested later that day at his residence.
Under federal statutes, Williams is subject to a sentence of up to eight years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Federal Protective Service.
Jersey City Police Officer Sentenced to 23 Months in Prison for Conspiracy to Commit Fraud and Accept Corrupt PaymentsRead the Press Release
NEWARK, N.J. – A Jersey City police officer was sentenced today to 23 months in prison for accepting corrupt payments in exchange for helping employers operate at worksites without the required presence of an off-duty police officer, U.S. Attorney Craig Carpenito announced.
Juan Berrios, 42, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Berrios was a police officer with the Jersey City Police Department from 2004 to 2017. Under Jersey City’s municipal code, police officers performing off-duty work were not permitted to receive cash payments directly from other employers. Rather, the employers were supposed to pay Jersey City, which would then pay the off-duty police officers, minus certain fees, taxes and deductions.
Berrios agreed with numerous off-duty employers to accept payments directly from them and cut Jersey City out of the process. In exchange for the payments, Berrios permitted off-duty employers to operate at worksites without the presence of a police officer when such a presence was required.
On several occasions, Berrios submitted off-duty vouchers seeking and obtaining compensation for working as a traffic director or security guard. Berrios also sought and received overtime compensation for appearing in court at the same time he was purportedly performing off-duty work. As a result, Berrios fraudulently obtained compensation from Jersey City for separate assignments that occurred at the same time.
In addition to the prison term, Judge Vazquez sentenced Berrios to three years of supervised release and ordered forfeiture of $50,000 and restitution of $34,951.
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 sentencing.
The government is represented by Vikas Khanna, Deputy Chief of the U.S. Attorney’s Office Criminal Division, and Assistant U.S. Attorney Sarah Devlin of the Asset Recovery and Money Laundering Unit, in Newark.
Defense counsel: Danny J. Welsh Esq., Jersey City, New Jersey
Jefferson County man admits to fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Corey Robert Clark Ford, of Harper’s Ferry, West Virginia, has admitted to distributing fentanyl, United States Attorney Bill Powell announced.
Ford, age 29, pled guilty today to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Ford admitted to distributing fentanyl in Jefferson County in January 2017.
Ford faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jacksonville Man Sentenced to Ten Years for Aggravated Sexual Abuse by Force on Cruise ShipRead the Press Release
Jacksonville, FL – U.S. District Judge Brian J. Davis today sentenced Brian James Holland (23, Jacksonville) to 10 years in federal prison for aggravated sexual abuse by force. A federal jury found Holland guilty on July 18, 2018.
According to evidence presented at trial, on February 27, 2018, a passenger with an intellectual disability, onboard the Carnival Cruise Line vessel Elation reported an incident of sexual abuse by force. The victim testified that she had been in the cruise ship’s hot tub when Holland attempted to put his arm around her and she attempted to move further away from him. Holland then tried to put his hand on her shoulder and pull her back towards him. Two passengers that were in the hot tub at the time of the incident corroborated the victim’s claim.
The victim further testified that Holland also had touched her genitals both over and under her bathing suit, digitally penetrating her by force. The victim then left the hot tub and reported the incident to her family, who reported it to ship security. An examination of the victim was by the ship’s medical personnel revealed abrasions on the victim’s genitals consistent with digital penetration by force.
This case was investigated by the Federal Bureau of Investigation. Carnival Cruise Line’s Security Department also provided assistance during the case. It was prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.
Houston Pair Charged with Defrauding Dr. Pepper SnappleRead the Press Release
HOUSTON – Two people have been charged with conspiracy to commit mail fraud and mail fraud for their participation in a scheme to defraud Dr. Pepper Snapple Group Inc. (DPSG), announced U.S. Attorney Ryan K. Patrick.
Authorities took Joseph A. Isaac, 52, of Houston, into custody today, He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. Co-defendant Anna Maria Sites, 41, of Friendswood, is expected to make her initial appearance in the near future.
The indictment, returned under seal Oct. 17 and unsealed today, alleges Isaac and Sites defrauded DPSG from 2010 through Feb. 17, 2015. The pair worked at FulFill Plus Inc., a company which administered rebate campaigns for DPSG, according to the charges.
DPSG paid money to Fulfill Plus to fund rebates for those who had requested them. However, the rebates were not paid, according to the indictment. Isaac and Sites allegedly used the money not paid out in rebates for their own personal expenses and non-rebate related expenses of FulFill Plus.
Conspiracy to commit mail fraud carries a maximum penalty of five years imprisonment, upon conviction. Each also faces up to 20 years for each count of mail fraud. Both charges also carry a potential $250,000 maximum fine.
The FBI investigated. Assistant U.S. Attorney John Braddock 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.Honduran Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Isaias Guerrero, also known as Jose Isaia Herrera, age 41, and a citizen of Honduras, was sentenced today to time served (6 months in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Guerrero was ordered removed by an Immigration Judge in Georgia on October 5, 2010, and he was removed to Mexico on October 19, 2010. Guerrero was arrested by Border Patrol in Texas after he swam across the Rio Grande River from Mexico on November 25, 2010. He was removed to Mexico a second time on November 26, 2010. On April 20, 2018, he was arrested by an ICE Officer. Guerrero admitted that he was actually Honduran, not Mexican, and that he returned to the United States without permission following the 2010 removals.
Following the sentencing, Guerrero was remanded to the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
High-Ranking North Carolina Bloods Gang Leader Sentenced to 19 Years for Racketeering ConspiracyRead the Press Release
CHARLOTTE, N.C. – A high-ranking North Carolina leader of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, was sentenced today to 19 years in prison for racketeering conspiracy. Also sentenced today were two other members of the Bloods gang. Sixty-seven defendants have now either pleaded guilty or have been convicted at trial.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 43, of Raleigh, North Carolina, was sentenced by Chief Judge Frank D. Whitney to serve 228 months in prison. Gilmore had been convicted, together with UBN Godfathers Pedro Gutierrez and James Baxton, by a federal jury sitting in Charlotte on May 17, following a two-week trial. In addition, two other Bloods members were also sentenced today. Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, was sentenced by Judge Whitney to serve 43 months in prison. Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, was sentenced by Judge Whitney to serve 70 months in prison.
“As a trusted leader of the Nine Trey Gangsters, Cynthia Gilmore played an integral role in the gang’s violent mission by trafficking narcotics, robbing other drug dealers, and acting as a communications conduit for Pedro Gutierrez, the gang’s incarcerated leader who had previously ordered a gang war,” said Assistant Attorney General Benczkowski. “Now totaling 67 defendants adjudicated guilty, the Department of Justice’s prosecution of the Nine Trey Gangsters continues to disrupt and weaken this violent prison and street gang, and serves as a testament to what cooperation between federal, state, and local law enforcement can accomplish.”
“Cynthia Gilmore was a gang member who had risen to the leadership ranks within the Nine Trey Gangsters, a powerful set of the Bloods in North Carolina, said U.S. Attorney Murray. “As a gang member, Gilmore engaged in racketeering criminal acts, including robbery and drug trafficking, to support the gang and pay her dues. As a trusted gang leader, Gilmore had direct access to the gang’s highest leadership, including to the Bloods’ Godfather, Pedro Gutierrez, with whom she had face-to-face meetings while he was incarcerated in New York. As the Godfather’s messenger, Gilmore assisted Gutierrez in maintaining control over the gang, and made certain that other gang members knew, understood, and executed Gutierrez’s orders. With another Bloods leader and two more gang members put behind bars, my office continues our work to dismantle criminal enterprises and to protect the people of the Western District from violent street gangs.”
In February 2017, President Donald Trump directed the Department of Justice “to reduce crime in America,” and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General Rod Rosenstein mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and “Godfather.”
Evidence at trial established that Gilmore was a high-ranking leader of the Nine Trey Gangsters in North Carolina with the rank of “Low,” and that she was involved in drug trafficking and the robbery of other drug dealers. Evidence also established that Gilmore traveled regularly between North Carolina and New York State, where she met with Pedro Gutierrez, the highest ranking leader of the United Blood Nation, who was incarcerated at the time. Evidence further established that Gilmore assisted Gutierrez’s control of the Bloods organization in North Carolina by sending him dues and by passing along communications from Gutierrez to other gang leaders and members.
In all, 67 defendants have been adjudicated guilty in this case, including the three defendants who were found guilty at trial; 64 defendants have pleaded guilty in this investigation. Twelve defendants in high-ranking leadership positions have been convicted:
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine. Atkinson was sentenced on Aug. 21 to a term of 208 months in prison;
- James Baxton, aka Frank White and Grown, 44, of New York City, New York, was convicted at trial on May 17. Trial evidence established that Baxton was a “Worldwide High” of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates. Baxton was sentenced on Sept. 4 to a term of 240 months in prison, to be served federally after completing a term in New York State prison;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
- Pedro Gutierrez, aka Magoo, Light, and Inferno, of New York City, New York, was convicted at trial on May 17. Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months. Gutierrez was sentenced on Sept. 4 to a term of 240 months in prison, to be served consecutively to the remainder of a New York State sentence for murder;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low.” Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
- Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of “High;”
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low;”
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN. Rosero was sentenced on July 31, to 87 months in prison, to be served federally after completing a sentence in New York State;
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.” Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” Wilson was sentenced on July 30, to serve 82 months in prison.
The following 34 defendants have also pleaded guilty and have been sentenced in this investigation:
- Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
- Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
- Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking. Covington was sentenced to serve 87 months in prison;
- Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
- Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
- Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
- Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25, to serve 27 months in prison;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
- Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
- Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
- Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
- Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
- Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 19 defendants have also pleaded guilty and are awaiting sentencing in this case:
- Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
- Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
- Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
- Marquel Michael Cunningham, aka Omega, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
- John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Wesley Javon Howze, aka Drama, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
- Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
- Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Johnny Thomas Mitchell, aka Joker, 38, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Kenneth Marquise Ruff, aka Red Hot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy; and
- Patrick Wray, aka Ike and Murda, 30, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Four Additional Latin Dragon Members Charged with Racketeering ConspiracyRead the Press Release
Four additional members of Chicago area criminal street gang, the Latin Dragons Nation, have been charged with racketeering conspiracy and other related offenses in a second superseding indictment unsealed today, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana announced.
According to the second superseding indictment, the Latin Dragons Nation is a criminal street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragons Nation allegedly engage in acts of violence, including murder, attempted murder, witness tampering, and assault, to protect the gang’s territory and drug operations. Latin Dragons Nation gang members are required by gang rules to take immediate violent action against anyone who threatens them, and gain respect and status within the gang by doing so.
The four additional defendants charged in the nine-count indictment are Gustavo Colunga aka “Barkley,” 25, of Hammond, Indiana; Joshua Harris-White aka “BJ,” 24, of Chicago, Illinois; Mario Colunga, 30, of Whiting, Indiana; and Luis Colunga, aka “Panson,” 28, of Chicago, Illinois.
Among the various alleged offenses that the second superseding indictment added are:
- On or about July 27, 2015, allegedly Gustavo Colunga and Joshua Harris-White approached Victim #6, a juvenile, whom Gustavo Colunga and Harris-White believed was a rival gang member. Harris-White held Victim #6 down, while Gustavo Colunga stabbed Victim #6 in the throat. Both Gustavo Colunga and Harris-White fled in a vehicle driven by a third Latin Dragon Nation member.
- On or about Nov. 22, 2017, allegedly while Mario Colunga was driving a vehicle occupied by Ralph Mendez Jr., another Latin Dragon Nation member and three female associates, Mendez Jr. did a drive-by shooting in a rival gang neighborhood in Chicago, Illinois.
- On different occasions, allegedly Luis Colunga delivered an H&R .38 caliber revolver, and Gustavo Colunga delivered a Smith & Wesson .45 caliber semi-automatic pistol and Inter Ordnance .380 caliber semi-automatic pistol and a quantity of cocaine to an undercover ATF special agent.
- On or about Aug. 13, 2018, Gustavo Colunga and Joshua Harris-White sold a Ruger .44 magnum revolver and a quantity of marijuana to an ATF undercover special agent.
The previously indicted defendants, charged in this case are Manuel Diaz aka “Smiley,” 27, of Hammond, Indiana; Eduardo Diaz-Corral aka “Lalo,” 20, of Calumet City, Illinois; Ralph Mendez Jr. aka “Lil Devious,” 22, of Chicago, Illinois; and Joseph Roggenkamp aka “Dro,” 21, of East Chicago, Indiana. Diaz-Corral and Diaz allegedly participated, respectively, in the murders of Paul Cruz on Nov. 20, 2016, in Chicago, and Charles Berrios on Sept. 30, 2017, in Hammond, Indiana. These murders and other acts of violence are charged in this second superseding indictment.
The second superseding indictment is part of ongoing efforts to curb the activities of violent street gangs in the Northern District of Indiana.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty for murder in aid of racketeering is death or in the alternative a mandatory life sentence.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department and the Lake County Sheriff’s Department along with the Chicago and Calumet City, Illinois Police. The case is being prosecuted by Trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph A. Cooley and David J. Nozick of the Northern District of Indiana.
Four Additional Latin Dragon Members Charged with Racketeering ConspiracyRead the Press Release
WASHINGTON – Four additional members of Chicago area criminal street gang, the Latin Dragons Nation, have been charged with racketeering conspiracy and other related offenses in a second superseding indictment unsealed today, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana announced.
According to the second superseding indictment, the Latin Dragons Nation is a criminal street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragons Nation allegedly engage in acts of violence, including murder, attempted murder, witness tampering, and assault, to protect the gang’s territory and drug operations. Latin Dragons Nation gang members are required by gang rules to take immediate violent action against anyone who threatens them, and gain respect and status within the gang by doing so.
The four additional defendants charged in the nine-count indictment are Gustavo Colunga aka “Barkley,” 25, of Hammond, Indiana; Joshua Harris-White aka “BJ,” 24, of Chicago, Illinois; Mario Colunga, 30, of Whiting, Indiana; and Luis Colunga, aka “Panson,” 28, of Chicago, Illinois.
Among the various alleged offenses that the second superseding indictment added are:
- On or about July 27, 2015, allegedly Gustavo Colunga and Joshua Harris-White approached Victim #6, a juvenile, whom Gustavo Colunga and Harris-White believed was a rival gang member. Harris-White held Victim #6 down, while Gustavo Colunga stabbed Victim #6 in the throat. Both Gustavo Colunga and Harris-White fled in a vehicle driven by a third Latin Dragon Nation member.
- On or about Nov. 22, 2017, allegedly while Mario Colunga was driving a vehicle occupied by Ralph Mendez Jr., another Latin Dragon Nation member and three female associates, Mendez Jr. did a drive-by shooting in a rival gang neighborhood in Chicago, Illinois.
- On different occasions, allegedly Luis Colunga delivered an H&R .38 caliber revolver, and Gustavo Colunga delivered a Smith & Wesson .45 caliber semi-automatic pistol and Inter Ordnance .380 caliber semi-automatic pistol and a quantity of cocaine to an undercover ATF special agent.
- On or about Aug. 13, 2018, Gustavo Colunga and Joshua Harris-White sold a Ruger .44 magnum revolver and a quantity of marijuana to an ATF undercover special agent.
The previously indicted defendants, charged in this case are Manuel Diaz aka “Smiley,” 27, of Hammond, Indiana; Eduardo Diaz-Corral aka “Lalo,” 20, of Calumet City, Illinois; Ralph Mendez Jr. aka “Lil Devious,” 22, of Chicago, Illinois; and Joseph Roggenkamp aka “Dro,” 21, of East Chicago, Indiana. Diaz-Corral and Diaz allegedly participated, respectively, in the murders of Paul Cruz on Nov. 20, 2016, in Chicago, and Charles Berrios on Sept. 30, 2017, in Hammond, Indiana. These murders and other acts of violence are charged in this second superseding indictment.
The second superseding indictment is part of ongoing efforts to curb the activities of violent street gangs in the Northern District of Indiana.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty for murder in aid of racketeering is death or in the alternative a mandatory life sentence.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department and the Lake County Sheriff’s Department along with the Chicago and Calumet City, Illinois Police. The case is being prosecuted by Trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph A. Cooley and David J. Nozick of the Northern District of Indiana.
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- On or about July 27, 2015, allegedly Gustavo Colunga and Joshua Harris-White approached Victim #6, a juvenile, whom Gustavo Colunga and Harris-White believed was a rival gang member. Harris-White held Victim #6 down, while Gustavo Colunga stabbed Victim #6 in the throat. Both Gustavo Colunga and Harris-White fled in a vehicle driven by a third Latin Dragon Nation member.
Founder of Swiss Brokerage Firm Indicted in Connection with Global Securities Fraud SchemeRead the Press Release
BOSTON – The founder and operator of a Swiss asset management firm has been indicted by a federal grand jury on charges of engaging in a massive global securities fraud scheme that netted trading proceeds of approximately $164 million.
Roger Knox, 47, a citizen of the United Kingdom who resides in Switzerland, was indicted on one count of securities fraud and one count of conspiracy to commit securities fraud. On Oct. 3, 2018, Knox was arrested and charged by criminal complaint.
Knox, together with others, operated a purported asset management firm based in Switzerland called Silverton, and later renamed Wintercap. Knox allegedly helped facilitate pump-and-dump, and other market manipulation schemes, by selling massive quantities of microcap securities on behalf of “control groups” who secretly owned the stock through nominee shareholders and who simultaneously orchestrated promotional campaigns and other efforts to artificially inflate the price and trading volume of those shares.
It is further alleged that Knox then funneled the proceeds of the securities fraud—totaling an estimated $164 million over the last three years—to co-conspirators in the United States and elsewhere through a complex money transfer system that disguised the source and nature of the funds.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. The charge of conspiracy to commit securities fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or gross loss. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Securities and Exchange Commission’s Boston Regional Office provided assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Utility Official Admits to False StatementRead the Press Release
St. Louis - Dale Johansen, 63, of Rocky Mount, Missouri, pleaded guilty today to making a false statement during the course of an investigation of the Rogue Creek water and sewer system.
Johansen admitted in his plea agreement that Rogue Creek is a vacation community in Potosi, Missouri. Johansen’s company, Johansen Consulting Services, LLC, became the receiver for the water and sewer provider and was responsible for overseeing the drinking and wastewater utilities beginning in 2012. Since 1994, drinking water in Rogue Creek had been treated for lead after high levels of lead were detected in the water supply. A treatment system was first used and later replaced with a lead reduction system under the supervision of the Missouri Department of Natural Resources.
Johansen’s duties at Rogue Creek included the operation of the drinking water facilities and sampling and testing of the drinking water for lead. A routine inspection of Rogue Creek drinking water in March 2016 revealed that the lead reduction system was not operational. A subsequent investigation revealed that the Rogue Creek drinking water had not been treated for lead for approximately six months. The Missouri Department of Natural Resources imposed a DO NOT DRINK order for the Rogue Creek system which was not lifted until May 2017.
Johansen admitted making a false statement to investigators in March 2016 that the lead reduction system had only been offline for six to eight weeks when in truth it had been offline for nearly six months.
The maximum penalty for making a false statement is five years imprisonment, a fine of not more than $250,000, or both. Johansen appeared before U.S. District Judge Audrey G. Fleissig, who accepted his plea and set his sentencing date of January 29, 2018.
The case was investigated by the Missouri Department of Natural Resources and the U.S. Environmental Protection Agency’s Criminal Investigation Division. Assistant U.S. Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
“The defendant’s actions exposed the residents of the Rogue Creek community to elevated levels of lead in their drinking water,” said EPA Special Agent in Charge Jeffrey Martinez. ” This case shows that EPA and our law enforcement partners are committed to taking action to protect the public from lead exposure.”
Former Presidio County Official Pleads Guilty to Federal Bribery Related ChargeRead the Press Release
In Alpine today, 66-year-old Carlos Eduardo Nieto, former Special Projects Coordinator for the City of Presidio and former Presidio Independent School District trustee, entered a guilty plea to federal charges related to a public corruption investigation, announced U.S. Attorney John F. Bash and F.B.I. Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Appearing before U.S. District Judge David Counts, Nieto pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and deprivation of honest services. By pleading guilty, Nieto admitted that he and 56–year-old former Presidio County Precinct 3 Commissioner Lorenzo Padilla Hernandez conspired since May 10, 2016, to defraud Presidio County and its citizens of money by corruptly ensuring, through their positions and influence, that a particular company would be awarded a County contract for a document management system. Hernandez and Nieto solicited and received $19,800 and $8,300, respectively, for their efforts. On May 9, 2017, Hernandez voted to award the contract to that particular company.
On August 3, 2018, Hernandez pleaded guilty to the same charge.
Nieto faces up to 20 years in federal prison. Judge Counts scheduled sentencing for Nieto on February 19, 2019, in Pecos. Sentencing for Hernandez, who also faces up to 20 years in federal prison, has yet to be scheduled.
The F.B.I. with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division investigated this case. Individuals who have first-hand information about corruption, fraud, or bribery related to Presidio County are urged to contact the F.B.I. at (915) 835-5000. Assistant U.S. Attorneys Monty Kimball and William F. Lewis are prosecuting this case on behalf of the Government.
Former Middlesex Borough Fire Inspector Sentenced to 34 Months in Prison for Conspiring to Commit Strongarm ExtortionRead the Press Release
NEWARK, N.J. – A former fire inspector for Middlesex Borough and other New Jersey municipalities was sentenced today to 34 months in prison for conspiring with another person to commit a strongarm extortion, U.S. Attorney Craig Carpenito announced today.
Billy A. Donnerstag, 50, of Hackettstown, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with conspiring to commit extortion using threats of force, violence, and fear. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From December 2016 through June 2017, Donnerstag conspired with Joseph P. Martinelli of Kenvil, New Jersey, to extort the owner and operator of a real estate development and construction company – referred to in the indictment as “Individual 1” – using threats of physical harm if Individual 1 did not pay Donnerstag and Martinelli thousands of dollars. In a series of telephone and in-person conversations with Individual 1, Donnerstag and Martinelli told Individual 1 that, in addition to being a fire inspector for Middlesex Borough, Donnerstag also collected debts. Donnerstag and Martinelli wanted Individual 1 to pay Martinelli, stating that Individual 1 had not paid Martinelli enough money for the sale of a property a decade earlier. During the course of the conspiracy, both Donnerstag and Martinelli made a series of threatening statements to Individual 1 that the consequences of failing to pay Donnerstag and Martinelli would involve physical harm to Individual 1.
Donnerstag told Individual 1:
• “if you were in front of me right now, you’d be on the floor. Okay? Cause I don’t talk—I don’t get talked to like that. You don’t know who I am.”
• “You need to iron this out with Joe. Again, if, if I have to come meet you now—again, it, it, it, it’d become, it’s gonna be a problem.”
• “What I do, is I make sure that people don’t take advantage of other people. Do you understand that? Now I also do other things, but this is one of the things that I do. Now, again if you’re not figuring wh, what my business is by now, you’re either, and again I, I say this with as much respect as I can, either an idiot, or you’re just lying because you don’t want to, to, to understand that I come from somewhere that most people don’t wanna see.”
Ultimately, over two separate meetings (both of which were lawfully recorded), Donnerstag and Martinelli obtained $15,000 in cash from Individual 1. The cash had been provided by the FBI.
In addition to the prison term, Judge Arleo sentenced Donnerstag to three years of supervised release.
Martinelli pleaded guilty before Judge Arleo on March 2, 2018, to conspiring with Donnerstag to commit extortion and is scheduled to be sentenced Nov. 26, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Zahid N. Quraishi Esq., Morristown, New Jersey