Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 October 2018
Washington Park Man Sent Back to Prison for Firearm OffenseRead the Press Release
Jessie L. Wofford, 41, of Washington Park, Illinois, was sentenced today to 51 months in federal prison for unlawful possession of a firearm by a convicted felon. Wofford has a 1994 conviction for first degree murder and is legally prohibited from possessing a gun. He was on parole for that conviction when a 9mm handgun and a loaded extended magazine were found in his residence earlier this year. Wofford pleaded guilty to the federal gun charge back on June 15.
Wofford’s sentence includes a three-year term of supervised release and a $500 fine. As part of his plea, Wofford also agreed to forfeit the firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Illinois State Police, and the Illinois Department of Corrections. The case was prosecuted by Assistant United States Attorneys Laura Reppert and Amanda Fischer.
Wanblee Man Found Not Guilty of Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Wanblee, South Dakota, man was acquitted of Aggravated Sexual Abuse and Sexual Abuse as a result of a federal jury trial in Pierre, South Dakota, beginning on October 16, 2018, and concluding on October 18, 2018.
Isadore John Conquering Bear, age 45, was indicted by a federal grand jury on August 16, 2017.
The charge stemmed from an alleged incident that occurred in June, 2017, near Rosebud, South Dakota.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney’s Office prosecuted the case.
Virginia Man Sentenced to 25 Years in Prison for Producing Images of Himself Sexually Abusing a ChildRead the Press Release
A Centreville, Virginia man was sentenced today to 25 years in prison followed by a lifetime of supervised release for producing child pornography, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division, and Fairfax County Chief of Police Colonel Edwin C. Roessler Jr. announced.
Kenneth Wayne Burk, 37, a power washer, was sentenced by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia.
According to court documents, law enforcement began investigating Burk after a minor accused him of sexual abuse. In 2017, law enforcement seized electronic devices from Burk’s home in Centreville, and a forensic examination of these devices revealed numerous images of Burk sexually abusing the minor between 2013 and 2017.
The case was investigated by the FBI and the Fairfax County Police Department. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Violent Pimp Sentenced to Life Behind BarsRead the Press Release
A Dallas-area pimp who preyed on teenage girls was sentenced to life in prison this afternoon, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Allen Nash, 31, was convicted in April of sex trafficking of children, conspiracy to commit sex trafficking, sex trafficking through force, fraud or coercion, transportation of a minor to engage in commercial sex acts, and illegal possession of ammunition after he forced two victims, aged 17 and 19, into the illicit sex trade in the fall of 2014.
During his four day trial, victims told jurors Nash lured them into engaging in commercial sex acts by promising a better life. Instead, he joined forces with the owner of the “Doll House” massage parlor, demanding the girls work day and night. He confiscated their proceeds and used violence and threats to keep them from leaving.
When one victim dozed off in a motel room, Nash dragged her out of bed and slammed her head into a toilet, cracking the seat with her skull – a warning to other victims about what could happen to them if they failed to earn enough money.
Nash recruited the 17-year-old via Facebook, with promises of gifts and trips, evidence showed. One day, he showed up at her mother’s apartment in a Mercedes to drive her to a liaison.
“I was a vulnerable little girl in need of guidance. I was desperate for help. Allen Nash knew that,” the young woman, now 22, said in an impact statement read aloud in court today. “I think it’s safe to say the devil lives in him.”
Nash routinely uploaded profanity-laced videos of himself clutching fistfuls of dollar bills, boasting about “ho money,” prosecutors said. He, Doll House owner Connie Su Moser, and manager Kum Shugars arranged illicit meetups on Backpage.com, thinly disguised as “body rub” treatments.
“Preying on vulnerable young women is despicable, and this sentence validates that important message,” said Nealy Cox. “I’m proud of the women who came forward to help us bring Mr. Nash to justice. We will continue to prioritize human trafficking cases across the Northern District of Texas.”
Ms. Moser, who pleaded guilty to racketeering and misprision of a felony in July 2017, had already been sentenced to 8 years in prison. Ms. Shugars, who testified at Nash’s trial, pleaded guilty to racketeering in June 2017, and was sentenced to just over 2 years in prison. Authorities seized over a million dollars in assets from Ms. Moser, including more than $400,000 in cash from her home, $70,000 in her bank account, and her 2015 Lexus – all of which the court determined were proceeds from the trafficking operation.
The Department of Homeland Security, the Texas Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Shreveport Police Department and the Federal Bureau of Investigations’ Shreveport office conducted the investigation. Assistant U.S. Attorneys Cara Foos Pierce, Myria Boehm and OCDETF Section Chief Rick Calvert prosecuted the case.
Vermont Man Charged with Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Shane Allen Edgerly, age 42, of Milton and Fairfield, Vermont, was arraigned yesterday in U.S. District Court in Burlington on a charge of possessing child pornography.
According to a Criminal Complaint filed October 4, 2018, a search warrant was executed that day at Edgerly’s residence after an investigation by Homeland Security Investigations. During the search, images of child pornography were seized.
At an appearance in federal court last week, Edgerly was detained based largely upon his prior record in the State of Vermont. Yesterday a federal Grand Jury passed down an indictment alleging his possession of child pornography.
The indictment, and the prior criminal complaint, are accusations only and the defendant is presumed innocent until and unless proven guilty.
The investigation was conducted by HSI, assisted by Vermont’s Internet Crimes Against Children Task Force. Edgerly is represented by Steven Barth of the Federal Public Defender’s Office. The United States is represented by Assistant U.S. Attorney William Darrow.
Universal American Mortgage Company, LLC Agrees to Pay $13.2 Million to Settle False Claims Act InvestigationRead the Press Release
Universal American Mortgage Company, LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain mortgages, announced U.S. Attorney Annette L. Hayes. UAMC is a mortgage lender headquartered in Miami, Florida, doing business across the country, including in the Western District of Washington.
The United States alleged that between January 1, 2006, and December 31, 2011, UAMC knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that UAMC improperly incentivized underwriters and knowingly failed to perform quality control reviews, which violated HUD requirements and contributed to UAMC’s submission of defective loans.
“Mortgage lenders may not ignore material FHA requirements designed to reduce the risk that borrowers will be unable to afford their homes and federal funds will be wasted,” said Assistant Attorney General Joseph H. Hunt for the Justice Department’s Civil Division. “We will hold accountable entities that knowingly fail to follow important federal program requirements.”
“In a quest for profits, mortgage companies have ignored important lending standards” said U.S. Attorney for the Western District of Washington, Annette L. Hayes. “Not only does this harm the borrowers leaving them over their heads in debt and underwater on their mortgages, it harms taxpayers because the mortgages are backed by government insurance. This settlement should serve as a warning to other lenders to diligently follow the rules.”
During the period covered by the settlement, UAMC participated as a direct endorsement lender (DEL) in the U.S Department of Housing and Urban Development’s (HUD’s) FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
United States Attorney Joseph Harrington for the Eastern District of Washington said, “FHA mortgages are vital to first-time homebuyers and to families whose credit and assets were damaged by the 2008 economic crisis. FHA underwriting and other requirements are critical to safeguarding the integrity of the public money used to operate this important program. We will continue to work with our law enforcement partners to ensure that mortgage lenders and others who profit from this program, while ignoring its rules, will be held accountable.”
“One of our principle responsibilities is to protect and ensure the integrity of federal housing programs for the benefit of all Americans,” said Jeremy M. Kirkland, Acting Deputy Inspector General, U.S. Department of Housing and Urban Development, Office of Inspector General. “This settlement demonstrates our resolve and should signal to irresponsible lenders that this conduct will not be tolerated.”
“FHA depends upon the lenders we do business with to apply our standards and to truthfully certify that they’ve done so,” said David Woll, HUD’s Deputy General Counsel for Enforcement. “Working with our federal partners, HUD will enforce these lending standards so we can protect families from preventable foreclosure and to protect FHA from unnecessary losses.”
The settlement resolves allegations originally brought by Kat Nguyen-Seligman, a former employee of a related UAMC entity, in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows private parties to bring suit on behalf of the federal government and to share in any recovery. The whistleblower will receive $1,980,000 as her share of the federal government’s recovery in this case.
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Washington and Western District of Washington, the Department of Housing and Urban Development, and the Department of Housing and Urban Development’s Office of the Inspector General. case is captioned United States ex rel. Kat Nguyen-Selgiman v. Lennar Corporation, Universal American Mortgage Company, LLC, and Eagle Home Mortgage of California, Inc., 14-cv-1435 (W.D. Wash.). The claims resolved by this settlement are allegations only, and there has been no admission of liability.
The settlement agreement is being handled by Assistant United States Attorney Kayla Stahman.
Universal American Mortgage Company LLC (UAMC) Agrees to Pay $13.2 Million to Resolve False Claims Act Allegations Related to Loan GuaranteesRead the Press Release
Universal American Mortgage Company LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain loans, the Department of Justice announced today. UAMC is a mortgage lender headquartered in Miami, Florida.
“Mortgage lenders may not ignore material FHA requirements designed to reduce the risk that borrowers will be unable to afford their homes and federal funds will be wasted,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “We will hold accountable entities that knowingly fail to follow important federal program requirements.”
“FHA mortgages are vital to first-time homebuyers and to families whose credit and assets were damaged by the 2008 economic crisis,” said U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “FHA underwriting and other requirements are critical to safeguarding the integrity of the public money used to operate this important program. We will continue to work with our law enforcement partners to ensure that mortgage lenders and others who profit from this program, while ignoring its rules, will be held accountable.”
“In a quest for profits, mortgage companies have ignored important lending standards” said U.S. Attorney Annette L. Hayes for the Western District of Washington. “Not only does this harm the borrowers leaving them over their heads in debt and underwater on their mortgages, it harms taxpayers because the mortgages are backed by government insurance. This settlement should serve as a warning to other lenders to diligently follow the rules.”
During the time period covered by the settlement, UAMC participated as a direct endorsement lender (DEL) in the U.S Department of Housing and Urban Development’s (HUD’s) FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
The United States alleged that between January 1, 2006, and December 31, 2011, UAMC knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that UAMC improperly incentivized underwriters and knowingly failed to perform quality control reviews, which violated HUD requirements and contributed to UAMC’s submission of defective loans.
“One of our principle responsibilities is to protect and ensure the integrity of federal housing programs for the benefit of all Americans,” said Jeremy M. Kirkland, Acting Deputy Inspector General, U.S. Department of Housing and Urban Development, Office of Inspector General. “This settlement demonstrates our resolve and should signal to irresponsible lenders that this conduct will not be tolerated.”
“FHA depends upon the lenders we do business with to apply our standards and to truthfully certify that they’ve done so,” said David Woll, HUD’s Deputy General Counsel for Enforcement. “Working with our federal partners, HUD will enforce these lending standards so we can protect families from preventable foreclosure and to protect FHA from unnecessary losses.”
The allegations resolved by this settlement include a whistleblower lawsuit filed under the False Claims Act by a former employee of a related UAMC entity, Kat Nguyen-Seligman. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Ms. Nguyen-Seligman will receive $1,980,000 from the settlement.
The settlement was the result of a joint investigation conducted by HUD, HUD’s Office of Inspector General, the Civil Division and the U.S. Attorneys’ Offices for the Eastern and Western Districts of Washington. The lawsuit is captioned United States ex rel. Kat Nguyen-Seligman v. Lennar Corporation, Universal American Mortgage Company, LLC, and Eagle Home Mortgage of California, Inc., 14-cv-1435 (W.D. Wash.). The claims asserted against UAMC are allegations only, and there has been no determination of liability.
USAO NDTX Weekly Roundup -- 10/19/18Read the Press Release
PLEA – Kendell Jackson, 24
On Oct. 16, Kendell Jackson of Dallas pled guilty to bank robbery and firearm charges. Jackson admitted that in January, he entered the BBVA Compass Bank on West Northwest Highway in Dallas with a .40 caliber handgun. He used that gun to jeopardize the life of a bank teller so that he could steal several thousand dollars in U.S. currency. Police apprehended Jackson nearby after a dye-pack exploded, forcing Jackson to stop at a Jack-in-the-Box to try to clean himself. Both the money and the gun were recovered. Jackson now faces a minimum of 7 years and up to life in prison as well as a fine of up to $250,000. The FBI and the Dallas Police Department investigated.PLEA – Valandus Gibson, 29
On Oct. 16, Valandus Javon Gibson of Chicago, IL, pleaded guilty to conspiracy to money laundering. Gibson admitted to conspiring with others to conduct financial transactions involving no less than $209,000, which were the proceeds of unlawful activity (namely: wire fraud). He now faces up to 20 years in prison and a fine of at least $500,000. The United States Postal Service investigated the case.SENTENCING – Olusola Akingbade, 55
On Oct. 17, Olusola Akingbade was sentenced to more than 5 years in federal prison and ordered to pay $2.5 million in restitution for his role in a Medicare home health care fraud. A jury convicted Akingbade on one count of conspiracy to commit health care fraud and three counts of health care fraud following a one-week trial in June 2017. Akingbade, a registered nurse at Paradise Home Health, falsified patient files to make non-homebound patients appear qualified for services and facilitated the payment of cash kickbacks to patients.SENTENCING – Alan Nash, 41
On Oct. 18, a Dallas-area pimp who preyed on teenage girls was sentenced to life in prison. Alan Nash was convicted in April of sex trafficking of children, conspiracy to commit sex trafficking, sex trafficking through force, fraud or coercion, transportation of a minor to engage in commercial sex acts, and illegal possession of ammunition after he forced two victims, aged 17 and 19, into the illicit sex trade in the fall of 2014.” I think it’s safe to say the devil lives in him,” a victim wrote in an impact statement read aloud in court at sentencing. Release here.VERDICT – Marco Lopez, 25
On Oct. 19, a federal jury convicted Marco Lopez of engaging in a conspiracy to distribute cocaine in a case involving a failed drug deal turned shootout. During the trial, jury heard evidence that at the scene of a shooting on “Hideout Road” in rural Navarro County, authorities discovered a kilogram of cocaine, two handguns smeared with blood, and an abandoned duffel bag full of counterfeit cash. They later identified Marco Lopez, who called 911 for a gunshot wound to his arm, on surveillance video buying a package of counterfeit pens. He faces up to 40 years in federal prison. The DEA, U.S. Marshal’s Service, and Navarro County Sheriff’s Office conducted the investigation.PLEA -- Leslie Summitt, 53
Leslie Eugene Summitt of Keene, Texas pleaded guilty to conspiring to possess with intent to distribute methamphetamine. He now faces up to 20 years in prison and is set to be sentenced January 31, 2019.SENTENCING -- Mia Vasquez, 44
Mia Vasquez of Dallas, Texas, was sentenced to just over 3 years in federal prison after pleading guilty to conspiring to possess with intent to deliver 1 kilogram or more of heroin in late 2013 and early 2014.PLEA – Kendell Jackson, 24
On Oct. 16, Kendell Jackson of Dallas pled guilty to bank robbery and firearm charges. Jackson admitted that in January, he entered the BBVA Compass Bank on West Northwest Highway in Dallas with a .40 caliber handgun. He used that gun to jeopardize the life of a bank teller so that he could steal several thousand dollars in U.S. currency. Police apprehended Jackson nearby after a dye-pack exploded, forcing Jackson to stop at a Jack-in-the-Box to try to clean himself. Both the money and the gun were recovered. Jackson now faces a minimum of 7 years and up to life in prison as well as a fine of up to $250,000. The FBI and the Dallas Police Department investigated.PLEA – Valandus Gibson, 29
On Oct. 16, Valandus Javon Gibson of Chicago, IL, pleaded guilty to conspiracy to money laundering. Gibson admitted to conspiring with others to conduct financial transactions involving no less than $209,000, which were the proceeds of unlawful activity (namely: wire fraud). He now faces up to 20 years in prison and a fine of at least $500,000. The United States Postal Service investigated the case.SENTENCING – Olusola Akingbade, 55
On Oct. 17, Olusola Akingbade was sentenced to more than 5 years in federal prison and ordered to pay $2.5 million in restitution for his role in a Medicare home health care fraud. A jury convicted Akingbade on one count of conspiracy to commit health care fraud and three counts of health care fraud following a one-week trial in June 2017. Akingbade, a registered nurse at Paradise Home Health, falsified patient files to make non-homebound patients appear qualified for services and facilitated the payment of cash kickbacks to patients.SENTENCING – Alan Nash, 41
On Oct. 18, a Dallas-area pimp who preyed on teenage girls was sentenced to life in prison. Alan Nash was convicted in April of sex trafficking of children, conspiracy to commit sex trafficking, sex trafficking through force, fraud or coercion, transportation of a minor to engage in commercial sex acts, and illegal possession of ammunition after he forced two victims, aged 17 and 19, into the illicit sex trade in the fall of 2014.” I think it’s safe to say the devil lives in him,” a victim wrote in an impact statement read aloud in court at sentencing. Release here.VERDICT – Marco Lopez, 25
On Oct. 19, a federal jury convicted Marco Lopez of engaging in a conspiracy to distribute cocaine in a case involving a failed drug deal turned shootout. During the trial, jury heard evidence that at the scene of a shooting on “Hideout Road” in rural Navarro County, authorities discovered a kilogram of cocaine, two handguns smeared with blood, and an abandoned duffel bag full of counterfeit cash. They later identified Marco Lopez, who called 911 for a gunshot wound to his arm, on surveillance video buying a package of counterfeit pens. He faces up to 40 years in federal prison. The DEA, U.S. Marshal’s Service, and Navarro County Sheriff’s Office conducted the investigation.PLEA -- Leslie Summitt, 53
Leslie Eugene Summitt of Keene, Texas pleaded guilty to conspiring to possess with intent to distribute methamphetamine. He now faces up to 20 years in prison and is set to be sentenced January 31, 2019.SENTENCING -- Mia Vasquez, 44
Mia Vasquez of Dallas, Texas, was sentenced to just over 3 years in federal prison after pleading guilty to conspiring to possess with intent to deliver 1 kilogram or more of heroin in late 2013 and early 2014.U.S. Attorney's Office and DEA Announce Next National Prescription Drug Take Back DayRead the Press Release
LAS VEGAS, Nev. – Mark your calendars for the 16th Annual National Prescription Drug Take Back Day which will be held on Saturday, October 20, in Carson City, Washoe County, and Douglas County, and on Saturday, October 27, in all other participating Nevada counties.
“Prescription Drug Take Back Day is an opportunity to prevent drug abuse and addiction before they start,” said U.S. Attorney Dayle Elieson for the District of Nevada. “Take Back Day is an important service provided by the DEA and its law enforcement partners that helps in the prevention of opioid addiction and overdose. I urge all Nevadans to join the nation in safely and anonymously disposing of their expired and unused prescription medications. This is an opportunity to be part of the opioid addiction epidemic solution.”
“Prescription drug abuse is still a significant problem and this is a great opportunity for folks throughout the State of Nevada to help reduce the threat,” said Assistant Special Agent in Charge Daniel W. Neill. “Please clean out your medicine cabinet and make your home safe from drug theft and abuse.”
Take Back Day addresses a crucial public safety and public health issue. According to the 2015 National Survey on Drug Use and Health, 6.4 million Americans abused controlled prescription drugs. The study shows that a majority of abused prescription drugs were obtained from family and friends, often from the home medicine cabinet, without their knowledge.
In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues.
In 2016, there were 408 opioid-related deaths in Nevada, according to the Nevada Department of Health and Human Services. In 2016, Nevada’s per capita prescription rate for opioids was 87 per 100 residents. The Silver State ranked as the sixth highest state for the number of milligrams of opioids distributed per adult according to a DEA study. From 2010 to 2016, opioid-related hospitalizations have increased by 136% in emergency room encounters and 84% in in-patient admissions. During this time period, 85% of all opioid-related deaths in Nevada were deemed accidents.
Take Back Day is part of a nationwide effort sponsored by the DEA and it is a safe, convenient, and responsible way to dispose of unused, unwanted, and expired prescription drugs. There will be free drop-off locations throughout Nevada on:
- This Saturday, October 20, from 10:00 a.m. to 2:00 p.m., in Carson City, Washoe County, and Douglas County. The collection sites will be:
- Save Mart located at 4348 South Carson Street
- Save Mart located at 3620 North Carson Street
- Food Maxx located at 3325 U.S. 50
- Smith’s Food & Drug located at 599 East William Street
- Walmart located at 3770 U.S. 395
- Tillman Sub-Station located at 1281 Kimmerling Road
- Walgreens located at 1342 U.S. Highway 395 North
- Carson Valley Medical Center located at 1107 U.S. Highway 395 North
- Smith’s Food & Drug Center located at 175 Lemmon Drive
- Raley’s Market & Pharmacy located at 18144 Wedge Parkway
- CVS located at 5019 South McCarran Boulevard
- Save Mart located at 10500 North McCarran Boulevard
- University of Nevada-Reno Police Department located at 1664 North Virginia Street
- Smiths Drugs located at 750 South Meadows Parkway
- Smiths Drugs located at 1255 Baring Boulevard
- East Fire Station #4 located at 1476 Albite Road
- Safeway located at 212 Elks Point Road
- Next Saturday, October 27, from 10:00 a.m. to 2:00 p.m., in all other participating Nevada counties. The collection sites will be:
- Walgreens Pharmacy located at 2020 Reno Highway
- CVS Pharmacy located at 461 West Williams Avenue
- Fallon Tribal Health Clinic located at 1001 Rio Vista Drive
- Las Vegas Metropolitan Police Department Enterprise Area Command located at 6975 West Windmill Lane
- Las Vegas Metropolitan Police Department Northwest Area Command located at 9850 West Cheyenne Avenue
- North Las Vegas Police Department Northwest Area Command Station located at 3755 West Washburn Road
- Ridley’s Market located at 1125 West Winnemucca Boulevard
A complete list of collection sites may be found at www.DEATakeBack.com or by calling 1-800-882-9539.
###
- This Saturday, October 20, from 10:00 a.m. to 2:00 p.m., in Carson City, Washoe County, and Douglas County. The collection sites will be:
Two Prineville Men Charged with Conspiracy to Transfer and Unlawful Possession of a Machine GunRead the Press Release
EUGENE, Ore. – A three-count indictment was unsealed in federal court today charging John Widener Jordan, 38, and Michael James Friesen, 32, both of Prineville, Oregon, with conspiracy to transfer and unlawful possession of a machine gun.
According to the indictment, between May and June 2018, Friesen agreed to broker the sale of a Guide Lamp, Model M3A1, .45 ACP caliber machine gun for Jordan. Between May 30 and June 5, Friesen discussed the sale price of the firearm with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posing as a potential purchaser. Friesen confirmed for the agent that he had seen the firearm function as a machine gun.
On June 6, Friesen met the undercover agent in a motel room in Prineville. Shortly thereafter, Jordan brought the firearm to the motel room and completed the transaction in exchange for $3,000 in cash. Jordan in turn paid Friesen for arranging the sale.
This case was investigated by the ATF and is being prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The 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.
Two Massachusetts State Troopers Agree to Plead Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – One suspended Massachusetts State Police Trooper and one retired Trooper have agreed to plead guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Eric Chin, 46, of Hanover, a suspended Trooper, and Paul Cesan, 50, of Southwick, a retired Trooper, were each charged in an Information with one count of embezzlement from an agency receiving federal funds. Both have agreed to plead guilty pursuant to a plea agreement, but dates have not yet been scheduled for the hearing.
Chin and Cesan were MSP Troopers assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Chin earned $302,400, which included approximately $131,653 in overtime pay. In 2016, Cesan earned $163,533, which included approximately $50,866 in overtime pay.
According to the charging documents, Chin and Cesan were paid for overtime shifts that they did not work at all or from which they left early. Each is alleged to have concealed their scheme by submitting fraudulent citations designed to create the appearance that they had worked overtime hours that they had not, and, falsely claimed in MSP paperwork and payroll entries that they had worked the entirety of their overtime shifts.
Chin has agreed to plead guilty to collecting $7,125 for overtime hours that he did not work, and Cesan has agreed to plead guilty to collecting $29,287 for overtime hours that he did not work.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Chin and Cesan are the fourth and fifth Troopers to plead guilty as a result of the ongoing investigation. On Oct. 11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty; on July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty; and on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree pleaded guilty. On June 27, 2018, former Lieutenant David Wilson, 57, of Charlton was arrested and charged with the same crime, and on July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was also charged.
Pursuant to the plea agreement with Chin, the government will recommend a sentence of between six and 12 months of incarceration. Pursuant to the plea agreement with Cesan, the government will recommend a sentence of between 10 and 16 months of incarceration. The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao, Mark Grady, and Neil Gallagher of Lelling’s Public Corruption Unit are prosecuting the case.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Democratic Republic of Congo Nationals Charged with Diverting USAID-Funded Anti-Malarial Medication in East Africa for Resale on the Black MarketRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Ann Calvaresi Barr, the Inspector General of the United States Agency for International Development (“USAID”), announced the unsealing today of an indictment charging RENE DJESSA and DANIEL OHOYO, both nationals of the Democratic Republic of Congo (“DRC”), with conspiracy and theft of government property in connection with a scheme to divert tens of thousands of doses of anti-malarial medication funded by the President’s Malaria Initiative (“PMI”) for resale on the black market in East Africa. DJESSA and OHOYO remain at large.
Manhattan U.S. Attorney Geoffrey S. Berman said: As alleged, while hundreds of thousands of people died of malaria—many of whom could’ve been saved with the very medicines these defendants stole-- Rene Djessa and Daniel Ohoyo put their greed ahead of their humanity. They stole life-saving anti-malarial medicines and sold them on the black market. This crime is outrageous, and we will do everything in our power to ensure that these defendants are held to account for their actions.”
Inspector General Ann Calvaresi Barr said: “Promoting integrity in the global health supply chain, including for anti-malarial medications, has been a long-standing priority for USAID Office of Inspector General. This indictment shows not only how programs to provide these life-saving medications can be abused, but also my Office’s commitment to identifying and investigating the theft of U.S.-funded health commodities and holding offenders accountable. I thank our Special Agents for their tremendous effort and the U.S. Attorney’s Office for the Southern District of New York for its steadfast prosecution in this case.”
According to the allegations contained in the Indictment[1]:
The PMI and Anti-Malarial Medication
USAID is an independent federal agency that provides loans, grants, and technical assistance to assist countries with, among other things, global health issues, including malaria. The PMI is a U.S. government-funded interagency initiative led by USAID. The U.S. government launched the PMI in 2005 to support malaria prevention and treatment programs in certain high-burden countries in sub-Saharan Africa. The PMI coordinates with foreign governments in 19 focus countries, including the DRC, to implement strategies to strengthen health systems and improve malaria prevention and treatment, including the procurement and distribution of antimalarial medication.
Malaria is a serious and sometimes fatal mosquito-borne infectious disease caused by parasites. In 2013—at the time of the criminal conduct alleged in the Indictment—an estimated 198 million cases of malaria occurred worldwide and approximately 500,000 people died, mostly children in the sub-Saharan African region. Malaria must be diagnosed and treated promptly with an antimalarial drug to keep the illness from progressing and to prevent further spread of infection in the community.
One of the malaria prevention and treatment measures funded by the PMI is the procurement and distribution of artemisinin-based combination therapies (“ACTs”) to treat individuals with uncomplicated malaria. ACTs contain an artemisinin-based drug combined with another effective anti-malarial medication. One type of ACT that the PMI procures and distributes to the 19 focus countries in sub-Saharan Africa is Coartem. Coartem contains two active substances, artemether and lumefantrine, that work together to kill the parasites that cause malaria. Coartem is taken orally and is effective in treating acute, uncomplicated malaria infections. At the time of the criminal conduct alleged in the Indictment, Coartem was manufactured by a pharmaceutical company at a manufacturing facility in the Southern District of New York.
In 2011, USAID personnel in the DRC discovered significant quantities of PMI-funded ACTs, including Coartem, being sold in various markets in Kinshasa, DRC. Upon further inquiry, USAID determined that some of the Coartem being sold in the DRC had been procured through PMI funding for distribution in other sub-Saharan African countries, including Malawi, Angola, Mozambique, Zambia, Benin, Zimbabwe, and Ghana.
The Coartem Diversion Scheme
From 2013 through 2015, DJESSA, OHOYO, and others engaged in a scheme to divert PMI-funded Coartem anti-malarial medication for resale on the wholesale black market in Kinshasa, DRC, and Brazzaville, Congo. As detailed in the Indictment, between January 2013 and September 2015, USAID Office of Inspector General (“USAID-OIG”) Special Agents, operating in an undercover (“UC”) capacity, conducted numerous undercover purchases of PMI-funded Coartem from Djessa and Ohoyo in Kinshasa, DRC, and from a co-conspirator (“CC-1”) in Brazzaville, Congo. The UCs posed as businessmen who wanted to purchase large quantities of Coartem on the black market for resale to their purported clients.
A UC initially purchased Coartem from CC-1 in Brazzaville, who, in February 2013, introduced the UC to Ohoyo as CC-1’s supplier in Kinshasa. Approximately one year later, after the UC had made several additional purchases of PMI-funded Coartem from OHOYO, Ohoyo introduced the UC to DJESSA as Ohoyo’s supplier. Djessa claimed that he was the main supplier of Coartem in the DRC, Congo, and Angola, and that he had a supplier in Tanzania. Djessa further stated that he could supply the UC with as much Coartem as he wanted. The UCs subsequently made several undercover purchases of Coartem from Djessa, most recently in September 2015. At the September 2015 meeting, Djessa told the UCs that he was aware that the Coartem was funded by the United States government.
Altogether, the UCs purchased almost 2,100 dispenser boxes of Coartem from Djessa, Ohoyo, and CC-1 for approximately $63,000. USAID-OIG confirmed that a majority of the Coartem purchased in the undercover operations was funded through the PMI (a portion of the purchased Coartem was determined to be counterfeit). Each dispenser box of Coartem contained approximately 30 blister packs, each of which contained 6, 12, 18, or 24 individual Coartem tablets, depending on the weight of the patient for which the dispenser box was intended. One blister pack represented a course of treatment for a single patient. Thus, the approximately 2,100 boxes of Coartem that the UCs purchased from Djessa, Ohoyo, and CC-1 alone could have been used to treat nearly 63,000 persons suffering from malaria.
* * *
DJESSA, 41, and OHOYO, 32 of Kinshasa, DRC, are each charged with one count of conspiracy to steal U.S. government property, which carries a maximum sentence of five years in prison, and one count of theft of U.S. government property, which carries a maximum sentence of 10 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentence imposed on the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of USAID-OIG in this case. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Brothers Extradited to the United States from Mexico to Face Sex Trafficking ChargesRead the Press Release
Jose Osvaldo Melendez-Rojas and Rosalio Melendez-Rojas were extradited to the United States yesterday and arraigned today before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn on an 18-count indictment charging them variously with sex trafficking conspiracy, sex trafficking of minors, interstate prostitution, alien smuggling and related offenses. Judge Pollak entered a permanent order of detention with leave for the defendants to present bail packages at a later date. The defendants were arrested in February 2018 in Mexico following a joint investigation by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Mexico City, HSI New York and the Mexican Federal Police. The defendants are charged together with three co-defendants who were previously arrested in the United States.
The extradition and charges were announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, HSI New York.
“With this successful extradition, we demonstrate our resolve to prosecute those who profit from the forced sexual servitude of vulnerable women and girls, such as the Melendez-Rojas sex-trafficking network,” stated United States Attorney Donoghue.
“These brothers were flown thousands of miles to faces charges for their role in the ‘family business’ of exploiting and trafficking young women purely for profit, using intimidation and abuse to force their victims to participate in sexual acts against their will,” stated HSI Special Agent-in-Charge Melendez. “The number of times women were victimized to support their criminal empire is reprehensible. The safety and well-being of the victim comes first and we will continue to work with our law enforcement partners in ensuring these criminal organizations cease to victimize for revenue.”
As alleged in the second superseding indictment and other court filings, between 2006 and July 2017, Jose Osvaldo Melendez-Rojas and his brother Rosalio Melendez-Rojas, together with other relatives, illegally smuggled young women and girls from Mexico into the United States, where they were forced to work as prostitutes in New York City and elsewhere. The victims of this sex trafficking organization are identified in the indictment as Jane Does #1 through 6. The defendants are also charged with conspiring to launder money in connection with the illicit proceeds of their sex-trafficking and prostitution enterprise.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the sex-trafficking related charges, the defendants face a maximum sentence of life in prison.
Mr. Donoghue commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Melendez-Rojas Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol, and the New York City Police Department (NYPD) for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. Mr. Donoghue also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The extraditions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 80 defendants for sex trafficking; assisted more than 150 victims, including over 40 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
The government’s case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Taryn A. Merkl, Erin E. Argo and Monica K. Castro are in charge of the prosecution.
The New Defendants:
JOSE OSVALDO MELENDEZ-ROJAS
Age: 42
MexicoROSALIO MELENDEZ-ROJAS (also known as “Leonel, “Wacho” and “El Guacho”)
Age: 37
MexicoDefendants Previously Arrested:
FRANCISCO MELENDEZ-PEREZ (also known as “Paco” and “el Mojarra”)
Age: 24
MexicoFABIAN REYES-ROJAS
Age: 38
MexicoABEL ROMERO-MELENDEZ (also known as “La Borrega” and “Borrego”)
Age: 32
MexicoE.D.N.Y. Docket No. 17-CR-434 (ARR)
Twin Brothers Charged in Superseding Indictment with Additional Drug and Gun OffensesRead the Press Release
BOSTON – Twin brothers from Hyannis were charged in federal court in Boston yesterday with additional gun and drug offenses.
Di’lon Smith, a/k/a Dilon Smith, and Denzel Smith, both 26, were each charged in a superseding indictment with one count of being a felon in possession of firearms and ammunition, one count of possession with intent to distribute 100 grams or more of a controlled substance analogue - cyclopropyl fentanyl, one count of possession with intent to distribute fentanyl, and two counts of possession of a firearm in furtherance of a drug trafficking crime. The Smiths were each initially indicted in April 2018 on one count of being a felon in possession of firearms and ammunition.
It is alleged that on Nov. 29, 2017, the brothers, each having previously been convicted of a felony, possessed a Smith & Wesson .22 caliber revolver, a Heckler & Koch .9 caliber pistol, six rounds of .22 caliber ammunition, and 18 rounds of .9 caliber ammunition. It is further alleged that the brothers also possessed fentanyl, as well as more than 100 grams of cyclopropyl fentanyl, with intent to distribute those substances.
The charging statute for being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of possession with intent to distribute 100 grams or more of a controlled substance analogue provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charging statute for possession with intent to distribute fentanyl provides for sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a $1 million fine. The charging statute for possessing a firearm in furtherance of a drug trafficking crime provides for a sentence of at least five years and up to life in prison, up to five years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
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; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes 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.
St. Louis Physician Sustains Second Conviction for Health CareRead the Press Release
St. Louis, MO – Dr. Devon Golding, 72, of St. Louis County, was convicted by a jury today in U.S. District Court in St. Louis for participating in a conspiracy to commit health care fraud and four substantive counts of health care fraud. Dr. Golding’s trial took place before Judge Audrey G. Fleissig, who ordered a presentence report and set a sentencing hearing for January 29, 2019.
The jury found that Dr. Golding and other doctors solicited and received illegal kickbacks from Allegiance Medical Services, a clinical laboratory, in return for referring and sending blood and urine specimens to Allegiance for testing. Allegiance then billed Medicare and Medicaid for the testing of the specimens and gave Dr. Golding and other doctors kickbacks, derived from the payments received from Medicare and Medicaid. Golding knew that Medicare and Medicaid would not pay for any service provided in violation of the federal Anti-Kickback Statute.
In 2015, Dr. Golding was convicted of health care fraud and false statements in connection with another scheme in which he improperly billed Medicare and Medicaid for non-rendered physician services and also signed blank prescription pads on which he permitted a non-qualified nurse to write prescriptions for controlled substances.
The misconduct involved in the present trial predated Golding’s 2015 conviction. Dr. Golding is excluded from participation in Medicare and Medicaid as a result of his 2015 conviction.
This case was investigated by the Office of the Inspector General of the U.S. Department of by the Health and Human Services, the Federal Bureau of Investigation, and the Missouri Medicaid Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorneys Dorothy McMurtry and Gil Sison handled the case for the U.S. Attorney’s Office.
St. Francis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on October 16, 2018, by U.S. District Judge Roberto A. Lange.
Gregory Paul Quigley, a/k/a Greg Paul Quigley, age 54, was sentenced to 13 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Quigley was indicted by a federal grand jury on April 17, 2018. He pled guilty on August 7, 2018.
Quigley was convicted of Abusive Sexual Contact in July of 2016. As a result of this conviction, he is required to register as a sex offender. Quigley initially registered his residence in West St. Francis, South Dakota. Quigley’s probation officer could not locate Quigley at his registered address and subsequently found him at a different residence in St. Francis. The probation officer informed him he was in violation of his probation and he was instructed to report to City/County Alcohol and Drug Program (CCADP) in Rapid City, South Dakota, on November 27, 2017. Quigley failed to report to CCADP. He was not at his registered address, and his whereabouts were unknown until he was arrested on March 15, 2018.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Quigley was immediately turned over to the custody of the U.S. Marshals Service.
St. Francis Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Steven William Emery, age 47, was indicted on September 11, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 15, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, up to lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that between June 2016, and May 9, 2018 Emery knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. The Indictment further alleges, that on May 9, 2018, Emery being an unlawful user of, and addicted to, a controlled substance, did knowingly receive and possess a firearm, which had been shipped and transported in interstate and foreign commerce.
The charges are merely accusations and Emery is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Emery was released on bond pending trial. A trial date has not been set.
South Dakota Couple and California Man Sentenced for Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, husband and wife, and a Eureka, California, man, who is a brother to the South Dakota woman, convicted of Conspiracy to Distribute a Controlled Substance, were sentenced by U.S. District Judge Roberto A. Lange.
Vinessa Farmer, a/k/a Vinessa Kills in Water, age 42, was sentenced on September 5, 2018, to 5 months in federal prison, and 5 months home detention, 2 years of supervised release, a fine of $1,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Robert Kills in Water, age 41, was sentenced on September 24, 2018, to 2 years of probation, a fine of $500, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Melvin Farmer, Jr., age 44, was sentenced on October 15, 2018, to 6 months in federal prison, followed by 2 years of supervised release, a fine of $1,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
All three defendants were indicted by a federal grand jury on February 14, 2018. Vinessa pled guilty on June 12, 2018, Robert pled guilty on July 10, 2018, and Melvin pled guilty on October 15, 2018.
Beginning August 1, 2012, to August 22, 2017, Vinessa, Robert, and Melvin knowingly and intentionally conspired with others to distribute marijuana in the District of South Dakota. Melvin would mail one-pound packages of marijuana monthly to Vinessa and Robert in South Dakota. Vinessa and Robert would then sell the marijuana and send money back to Melvin.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Postal Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Vinessa Farmer and Melvin Farmer, Jr. were immediately turned over to the custody of the U.S. Marshals Service, and Robert Kills in Water was released to begin serving probation.
South Carolina Man Sentenced to 18 Months in Prison for Using Forged Deeds to Steal HomesRead the Press Release
WASHINGTON – Robert McCloud, 39, most recently of Warrenville, S.C., was sentenced today to 18 months in prison on a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
McCloud pled guilty in June 2018, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. In addition to his prison term, McCloud must pay restitution in an amount to be set later by the Court, as well as a forfeiture money judgment of $57,965. Following his prison term, he will be placed on three years of supervised release, the first six months of which is to be spent in home confinement. McCloud also will be required to perform 150 hours of community service. .
According to the government’s evidence, McCloud and others identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. Finally, they shared the fraudulently-obtained sales proceeds amongst themselves.
In his guilty plea, McCloud admitted taking part in two such fraudulent transactions within a two-month period of 2015, which generated a total of $580,482 in proceeds.
In the first, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW was transferred from the true owners to a fictitious person. The true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to transfer their home. McCloud then appeared at the title company pretending to be the owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person. McCloud withdrew approximately $43,000 of the funds before the crime was discovered; the rest of the funds were returned to the title company.
In the second transaction, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, to be filed with the Recorder of Deeds. As with the other property, the true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to sell the residence. In June 2015, McCloud appeared at the title company pretending to be the owner and using another fake California driver’s license with his photograph. He again signed the settlement documents in the fictitious name. The title company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person. McCloud was arrested the following day.
The true owners of the homes, who are elderly, have faced difficult and lengthy proceedings in order to retitle the properties in their own names. Unwinding the fraudulent transfer is merely the first step for the victims to reclaim their ownership and interest in the properties and each must now settle various outstanding bills.
Although McCloud received $580,482 in proceeds from his wire fraud scheme regarding both real properties, law enforcement seized a total of $369,990, which was later administratively forfeited. These forfeited funds, and the partial return of funds to the title company from the K Street transaction, reduced the amount owed in forfeiture to $57,965, which is the amount of the forfeiture money judgment.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, Paralegal Specialist Aisha Keys, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Smithtown, New York, Resident Arrested for Threatening Two United States SenatorsRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Ronald DeRisi with threatening to murder and assault two United States Senators in retaliation for their support of the confirmation of Judge Brett Kavanaugh to the United States Supreme Court. DeRisi was arrested earlier today in Smithtown, Long Island, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Gary R. Brown at the United States Courthouse, 100 Federal Plaza, Central Islip, New York.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Matthew R. Verderosa, Chief, United States Capitol Police (USCP), announced the charges.
“Representative democracy cannot work if elected officials are threatened with death for simply doing their job,” stated United States Attorney Donoghue. “The First Amendment - the pinnacle of American achievement - protects debate, disagreement and dissent, not death threats. We and all those dedicated to the rule of law will not tolerate the use violence and threats of violence in attempts to prevail in political disputes.” Mr. Donoghue extended his grateful appreciation to the United States Capitol Police, the agency responsible for leading the investigation.
“I greatly appreciate the hard work of our investigators for addressing these threats so quickly, and that of the U.S. Attorney’s staff for prosecuting this case,” stated USCP Chief Verderosa.
As alleged in the complaint, beginning on September 27, 2018, DeRisi left more than 10 threatening voice-messages at the offices of two United States Senators (identified in the complaint as Senator-1 and Senator-2) regarding the nomination and confirmation of Judge Kavanaugh to the high court. The threats in the voice-messages were apparently made to discourage Senator-1 and Senator-2 from supporting Judge Kavanaugh’s nomination and/or as retaliation for having voted to confirm Judge Kavanaugh to the Supreme Court. The complaint details the content of some of the expletive-laced recorded voice-messages.
For example, in the first of two voice-messages left for Senator-1 on September 27, 2018, DeRisi said that he had a “present” for Senator-1, stating, in part, “It’s a nine millimeter. Side of your … skull ….” DeRisi concluded with “Yeah, Kavanaugh – I don’t think so.”
In a voice-message left for Senator-2 on October 6, 2018, DeRisi stated, in part, “… you better pray this guy don’t get in….” Less than an hour and a half later, DeRisi called Senator-2 again and left a message stating, in part, “I’m gonna get you.”
According to the complaint, DeRisi was identified through telephone records as well as by voice exemplars.
Following DeRisi’s arrest, USCP executed a search warrant and seized the cellular telephone used to leave the voice-messages detailed in the complaint.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Justina L. Geraci is in charge of the prosecution.
The Defendant:
RONALD DERISI
Age: 74
Smithtown, New YorkE.D.N.Y. Docket No. 18-MJ-998
Slidell Man Pleads Guilty to Conspiring to Sell Fentanyl and Heroin, and to Firearms ChargesRead the Press Release
NEW ORLEANS, LOUISIANA –U.S. Attorney Peter G. Strasser announced that KENNETH MARTIN, age 44, from Slidell, Louisiana, pleaded guilty to conspiring to distribute and to possesses with the intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and to possession of three firearms in furtherance of his drug trafficking.
MARTIN pleaded guilty to conspiring, from at least May 23, 2016, through August 2, 2017, to distribute 40 grams or more of fentanyl and 100 grams or more of heroin. MARTIN also pleaded guilty to distribution of heroin or fentanyl, to being a felon in possession of three firearms—a revolver, a semi-automatic pistol, and a shotgun—and to possessing those firearms in furtherance of the drug trafficking conspiracy.
For the drug charges, MARTIN faces a sentence of imprisonment of at least five years and up to forty years in prison. For the charge of possessing of a firearm in furtherance of the drug trafficking conspiracy, he faces at least five years and up to life in prison, all of which must be consecutive to his sentence for other counts.
Judge Nannette Jolivette Brown set sentencing for January 10, 2019.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
* * *
Skagway Man Indicted for the Illegal Export/Import of Walrus Ivory, Lacey Act ViolationsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Skagway man has been indicted on charges alleging smuggling of walrus ivory and the illegal export and import of walrus ivory in violation of the Lacey Act.
James Terrance Williams, 67, of Skagway, d.b.a. Inside Passage Arts, was named in the 10-count indictment charging him with smuggling walrus ivory from the United States, smuggling walrus ivory into the United States, illegal sale of smuggled ivory in violation of the Lacey Act, and Lacey Act false labeling.
Under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), walrus ivory cannot be exported out of the United States, nor imported into the United States, without a permit. The indictment alleges that, in October 2014 and March 2016, Williams illegally exported raw, unworked, walrus ivory tusks from Alaska to Indonesia for carving. He would then smuggle the carved walrus ivory back into the United States, disguising the illegal nature of the transportation by falsification of records, all in furtherance of illegal sales of the ivory.
This scheme involved numerous Lacey Act violations. Specifically, it is alleged that, in the years 2014, 2015, and 2016, Williams would then sell the carved walrus ivory as merchandise, knowing that it had been unlawfully transported into the United States from a foreign county. Furthermore, it is alleged that, Williams knowingly made or submitted false records and accounts for the importation, transportation, and sale of carved walrus ivory tusks.
If convicted, Williams faces terms of imprisonment of up to 10 years and fines up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement (OLE) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Deputy Criminal Chief Steven E. Skrocki.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Sisseton Man Charged with Aggravated Sexual Abuse of a Child Appears in Federal CourtRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man has been indicted by a federal grand jury for aggravated sexual abuse of a child and for sexual abuse.
Joel Michael Max, age 29, was indicted on September 5, 2018. He appeared before U.S. Magistrate Judge William Gerdes on October 15, 2018, and pled not guilty to the Indictment.
According to the Indictment, between September 2016 and June 2018, in Roberts County, South Dakota, Max engaged in and attempted to engage in sexual acts with a child. The maximum penalties upon conviction for each count are as follows: life imprisonment, a $250,000 fine, or both; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Max is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Max was remanded to the custody of the U.S. Marshals Service. A trial date has been set for December 18, 2018.
Sioux City Man Sentenced to Seven years in Federal Prison for Drug ConvictionRead the Press Release
A man who conspired to distribute methamphetamine throughout northwest Iowa was sentenced October 15, 2018, to 7 years in federal prison.
Joel Rodriguez, age 38, from Sioux City, Iowa, received the prison term after a May 10, 2018, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
Evidence presented by the United States at the change of plea and sentencing hearings revealed that from on or about August 1, 2017, and continuing through May of 2018, in the Northern District of Iowa, and elsewhere, defendant Joel Rodriguez, and others reached an agreement or came to an understanding to distribute methamphetamine.
During his involvement in the conspiracy, defendant was responsible for the distribution of more than 50 grams of methamphetamine mixture or 5 grams or more of actual (pure) methamphetamine. On or about March 20, 2018, in the Northern District of Iowa, Rodriguez knowingly and intentionally, possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine or 5 grams or more of actual (pure) methamphetamine.
Rodriguez previously had been convicted of a misdemeanor crime of domestic violence, namely, Domestic Abuse Assault Causing Bodily Injury, in the Iowa District Court for Buena Vista County, on or about May 21, 2012, in case number AGCR041504.
Rodriguez was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Rodriguez was sentenced to 84 months’ imprisonment. A special assessment of $200.00 was imposed. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR18-4029.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Follow us on Twitter @USAO_NDIA.
Sioux City Felon Sentenced to Six Years in Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
A convicted felon who possessed a semi-automatic rifle and ammunition was sentenced on October 9, 2018, to 6 years in federal prison.
Kevin Adams, age 31, from Sioux City, Iowa, received the prison term after a May 8, 2108, guilty plea to being a felon in possession of a firearm and ammunition by a felon. Evidence presented at the plea and sentencing hearings revealed:
Before December 13, 2017, Kevin Adams, defendant, had been convicted of crimes punishable by imprisonment for a term exceeding one year, namely: (1) Burglary in the Third Degree, in the Iowa District Court for Woodbury County Iowa, on or about April 8, 2010, in case number FECR056051; (2) Possession of a Controlled Substance, in the District Court of Dakota County, Nebraska, on or about October 16, 2014, in case number CR-14-102, (3) Operating Motor Vehicle to Avoid Arrest, in the District Court of Dakota County, Nebraska, on or about October 16, 2014, in case number CR-14-103; (4-18) fourteen convictions of Receipt of Stolen Property, in the District Court of Dakota County, Nebraska, on or about August 10, 2016, in case number CR-16-51; and (19) a conviction for Theft/Receiving Stolen Property, in the District Court of Douglass County, Nebraska, on or about February 16, 2017, in case number CR-17-109.
On or about December 13, 2017, in the Northern District of Iowa, defendant Kevin Adams, did knowingly possess, in and affecting interstate or foreign commerce, a semi-automatic, Ruger, AR-15 rifle, serial number 854-09886 and ammunition.
The semi-automatic, Ruger, AR-15 rifle, serial number 854-09886 and ammunition were stolen and defendant knew they were stolen or had reasonable cause to believe they were stolen.
Neither the firearm nor the ammunition described above, that defendant Kevin Adams possessed in the Northern District Iowa, were manufactured in Iowa. Thus, they were transported to Iowa before defendant possessed them, and, thereby, effected interstate commerce.
Defendant Kevin Adams is a member of a gang, and his nickname is “Mischief.”
Defendant Kevin Adams was a methamphetamine user (and trafficker) who possessed the firearm and ammunition described above, in the Northern District Iowa, in connection with his felonious drug use in and around Sioux City, Iowa. In fact, he once fired another weapon at others.
The day of his illegal possession, of the firearm and ammunition defendant Kevin Adams had -- together with other -- stole a Mazada Protégé automobile from Nebraska and transported it into Iowa.
The day of his illegal possession, defendant Kevin Adams attempted to avoid police by fleeing first in, and then from, the stolen car and entering the home of another without permission of the home’s occupants (who were both terrified by Adams’ unexpected, unauthorized, armed, entry).
Adams was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Adams was sentenced to 72 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Adams is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR18-4006.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. This case was investigated by the Sioux City Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Follow us on Twitter @USAO_NDIA.
Sioux City Felon Sentenced to Seven Years in Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
A convicted felon and domestic violence misdemeanant who illegally possessed a gun and ammunition was sentenced September 24, 2018, to seven in federal prison.
Alfredo Hernandez, age 31, from Sioux City, Iowa, received the prison term after a May 21, 2018, guilty plea to one count of possession of a firearm and ammunition by a felon
Before September 1, 2016, Alfredo Hernandez, defendant, had been convicted of (1) a crime punishable by imprisonment for a term exceeding one year, namely, Receiving Stolen Property, in Nebraska District Court for Dakota County, case number CR06-112, on or about January 10, 2007 and (2) two misdemeanor crimes of domestic violence, namely: (A) Domestic Abuse Assault, in the Iowa District Court for Woodbury County, on or about February 22, 2011, in case number SMSM465700 and (B) Domestic Abuse Assault, in the Iowa District Court for Woodbury County, on or about June 20, 2014, in case number SRCR088704.
On or about September 1, 2016, in the Northern District of Iowa, defendant Alfredo Hernandez, did knowingly possess, in and affecting interstate or foreign commerce, ammunition, namely, 2 rounds of CBC Group .38 special caliber ammunition.
On or about September 29, 2017, in the Northern District of Iowa, defendant Alfredo Hernandez, did knowingly possess, in and affecting interstate or foreign commerce, a firearm and ammunition, namely, a Smith and Wesson handgun Model SD40 VE, serial number FWH7528 and 7 rounds of NFCR and 2 rounds Winchester ammunition.
On or about December 6, 2017, in the Northern District of Iowa, defendant Alfredo Hernandez, did knowingly possess, in and affecting commerce, a firearm and ammunition, namely, an EIG Cutlery, model E-15, .22 caliber revolver and Remington .22 caliber ammunition.
Defendant Alfred Hernandez was a methamphetamine trafficker who possessed all of the firearms and ammunition described above, in the Northern District Iowa, in connection with his felonious drug trafficking activities in and around Sioux City, Iowa.
Hernandez was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Hernandez was sentenced to 84 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4001-LTS.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. This case was investigated by the Special Investigations Unit of the Sioux City Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Follow us on Twitter @USAO_NDIA.
Simpsonville Man Pleads Guilty in Federal Court to Conspiring to Possess with the Intent to Distribute Hundreds of Kilograms of Marijuana and to Possessing a Firearm in Furtherance of his Trafficking ActivityRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Andre Eaddy, age 37, of Simpsonville, South Carolina, pled guilty in federal court in Anderson. Eaddy pled guilty to conspiracy to possess with the intent to distribute marijuana, in violation of Title 21, United States Code, Section 846, and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). United States District Judge Timothy Cain, of Anderson, accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Eaddy coordinated with individuals in California and Colorado to transport kilogram quantities of marijuana for distribution in South Carolina. Eaddy made monthly trips, often with co-conspirators, to deliver large amounts of United States currency or to otherwise secure the purchase of marijuana from other co-conspirators. Mr. Eaddy would then have such purchases mailed back to South Carolina, to addresses associated with himself or various individuals, where such marijuana was then redistributed. Evidence indicates that Eaddy shipped over 1000 pounds of marijuana into South Carolina. Additionally, at a search of Eaddy’s residence, he was found in possession of a Keltec 9mm handgun, a Nodak Spud LLC rifle, a Taurus Judge .410 pistol, and a large amount of ammunition.
Ms. Lydon stated that the maximum penalty the defendant can receive is a fine of $8,000,000 and/or imprisonment of up to Life, plus a special assessment of $100.
The case was investigated by ICE - Homeland Security Investigations and the U.S. Postal Service. Assistant United States Attorney D. Josev Brewer of the Greenville office handled the case.
#####
Russian National Charged with Interfering in U.S. Political SystemRead the Press Release
A criminal complaint was unsealed in Alexandria, Virginia, today charging a Russian national for her alleged role in a Russian conspiracy to interfere in the U.S. political system, including the 2018 midterm election. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and FBI Director Christopher Wray made the announcement after the charges were unsealed.
“Today’s charges allege that Russian national Elena Alekseevna Khusyaynova conspired with others who were part of a Russian influence campaign to interfere with U.S. democracy,” said Assistant Attorney General Demers. “Our nation is built upon a hard-fought and unwavering commitment to democracy. Americans disagree in good faith on all manner of issues, and we will protect their right to do so. Unlawful foreign interference with these debates debases their democratic integrity, and we will make every effort to disrupt it and hold those involved accountable.”
“The strategic goal of this alleged conspiracy, which continues to this day, is to sow discord in the U.S. political system and to undermine faith in our democratic institutions,” said U.S. Attorney Terwilliger. “This case demonstrates that federal law enforcement authorities will work aggressively to investigate and prosecute the perpetrators of unlawful foreign influence activities, and that we will not stand by idly while foreign actors obstruct the lawful functions of our government. I want to thank the agents and prosecutors for their determined work on this case.”
“This case serves as a stark reminder to all Americans: Our foreign adversaries continue their efforts to interfere in our democracy by creating social and political division, spreading distrust in our political system, and advocating for the support or defeat of particular political candidates,” said Director Wray. “We take all threats to our democracy very seriously, and we’re committed to working with our partners to identify and stop these unlawful influence operations. Together, we must remain diligent and determined to protect our democratic institutions and maintain trust in our electoral process.”
According to allegations in the criminal complaint, Elena Alekseevna Khusyaynova, 44, of St. Petersburg, Russia, served as the chief accountant of “Project Lakhta,” a Russian umbrella effort funded by Russian oligarch Yevgeniy Viktorovich Prigozhin and two companies he controls, Concord Management and Consulting LLC, and Concord Catering. Project Lakhta includes multiple components, some involving domestic audiences within the Russian Federation and others targeting foreign audiences in the United States, members of the European Union, and Ukraine, among others.
Khusyaynova allegedly managed the financing of Project Lakhta operations, including foreign influence activities directed at the United States. The financial documents she controlled include detailed expenses for activities in the United States, such as expenditures for activists, advertisements on social media platforms, registration of domain names, the purchase of proxy servers, and “promoting news postings on social networks.” Between January 2016 and June 2018, Project Lakhta’s proposed operating budget totaled more than $35 million, although only a portion of these funds were directed at the United States. Between January and June 2018 alone, Project Lakhta’s proposed operating budget totaled more than $10 million.
The alleged conspiracy, in which Khusyaynova is alleged to have played a central financial management role, sought to conduct what it called internally “information warfare against the United States.” This effort was not only designed to spread distrust towards candidates for U.S. political office and the U.S. political system in general, but also to defraud the United States by impeding the lawful functions of government agencies in administering relevant federal requirements.
The conspirators allegedly took extraordinary steps to make it appear that they were ordinary American political activists. This included the use of virtual private networks and other means to disguise their activities and to obfuscate their Russian origin. They used social media platforms to create thousands of social media and email accounts that appeared to be operated by U.S. persons, and used them to create and amplify divisive social and political content targeting U.S. audiences. These accounts also were used to advocate for the election or electoral defeat of particular candidates in the 2016 and 2018 U.S. elections. Some social media accounts posted tens of thousands of messages, and had tens of thousands of followers.
The conspiracy allegedly used social media and other internet platforms to address a wide variety of topics, including immigration, gun control and the Second Amendment, the Confederate flag, race relations, LGBT issues, the Women’s March, and the NFL national anthem debate. Members of the conspiracy took advantage of specific events in the United States to anchor their themes, including the shootings of church members in Charleston, South Carolina, and concert attendees in Las Vegas; the Charlottesville “Unite the Right” rally and associated violence; police shootings of African-American men; as well as the personnel and policy decisions of the current U.S. presidential administration.
The conspirators’ alleged activities did not exclusively adopt one ideological view; they wrote on topics from varied and sometimes opposing perspectives. Members of the conspiracy were directed, among other things, to create “political intensity through supporting radical groups” and to “aggravate the conflict between minorities and the rest of the population.” The actors also developed playbooks and strategic messaging documents that offered guidance on how to target particular social groups, including the timing of messages, the types of news outlets to use, and how to frame divisive messages.
The criminal complaint does not include any allegation that Khusyaynova or the broader conspiracy had any effect on the outcome of an election. The complaint also does not allege that any American knowingly participated in the Project Lakhta operation.
The investigative team received exceptional cooperation from private sector companies, such as Facebook and Twitter.
Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Alex Iftimie are prosecuting the case, with assistance of Trial Attorneys Matthew Y. Chang and Patrick T. Murphy of the National Security Division’s Counterintelligence and Export Control Section.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-464.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian National Charged with Interfering in U.S. Political SystemRead the Press Release
ALEXANDRIA, Va. – A criminal complaint was unsealed here today charging a Russian national for her alleged role in a Russian conspiracy to interfere in the U.S. political system, including the 2018 midterm election.
“The strategic goal of this alleged conspiracy, which continues to this day, is to sow discord in the U.S. political system and to undermine faith in our democratic institutions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This case demonstrates that federal law enforcement authorities will work aggressively to investigate and prosecute the perpetrators of unlawful foreign influence activities whenever feasible, and that we will not stand by idly while foreign actors obstruct the lawful functions of our government. I want to thank the agents and prosecutors for their determined work on this case.”
According to allegations in the criminal complaint, Elena Alekseevna Khusyaynova, 44, of St. Petersburg, Russia, served as the chief accountant of “Project Lakhta,” a Russian umbrella effort funded by Russian oligarch Yevgeniy Viktorovich Prigozhin and two companies he controls, Concord Management and Consulting LLC, and Concord Catering. Project Lakhta includes multiple components, some involving domestic audiences within the Russian Federation and others targeting foreign audiences in the United States, members of the European Union, and Ukraine, among others.
“Today’s charges allege that Russian national, Elena Alekseevna Khusyaynova, conspired with others who were part of a Russian influence campaign to interfere with U.S. democracy,” said Assistant Attorney General Demers. “Our nation is built upon a hard-fought and unwavering commitment to democracy. Americans disagree in good faith on all manner of issues, and we will protect their right to do so. Unlawful foreign interference with these debates debases their democratic integrity, and we will make every effort to disrupt it and hold those involved accountable.”
Khusyaynova allegedly managed the financing of Project Lakhta operations, including foreign influence activities directed at the United States. The financial documents she controlled include detailed expenses for activities in the United States, such as expenditures for activists, advertisements on social media platforms, registration of domain names, the purchase of proxy servers, and “promoting news postings on social networks.” Between January 2016 and June 2018, Project Lakhta’s proposed operating budget totaled more than $35 million, although only a portion of these funds were directed at the United States. Between January and June 2018 alone, Project Lakhta’s proposed operating budget totaled more than $10 million.
“This case serves as a stark reminder to all Americans: Our foreign adversaries continue their efforts to interfere in our democracy by creating social and political division, spreading distrust in our political system, and advocating for the support or defeat of particular political candidates,” said Director Wray. “We take all threats to our democracy very seriously, and we’re committed to working with our partners to identify and stop these unlawful influence operations. Together, we must remain diligent and determined to protect our democratic institutions and maintain trust in our electoral process.”
The alleged conspiracy, in which Khusyaynova is alleged to have played a central financial management role, sought to conduct what it called internally “information warfare against the United States.” This effort was not only designed to spread distrust towards candidates for U.S. political office and the U.S. political system in general, but also to defraud the United States by impeding the lawful functions of government agencies in administering relevant federal requirements.
The conspirators allegedly took extraordinary steps to make it appear that they were ordinary American political activists. This included the use of virtual private networks and other means to disguise their activities and to obfuscate their Russian origin. They used social media platforms to create thousands of social media and email accounts that appeared to be operated by U.S. persons, and used them to create and amplify divisive social and political content targeting U.S. audiences. These accounts also were used to advocate for the election or electoral defeat of particular candidates in the 2016 and 2018 U.S. elections. Some social media accounts posted tens of thousands of messages, and had tens of thousands of followers.
The conspiracy allegedly used social media and other internet platforms to address a wide variety of topics, including immigration, gun control and the Second Amendment, the Confederate flag, race relations, LGBT issues, the Women’s March, and the NFL national anthem debate. Members of the conspiracy took advantage of specific events in the United States to anchor their themes, including the shootings of church members in Charleston, South Carolina, and concert attendees in Las Vegas; the Charlottesville “Unite the Right” rally and associated violence; police shootings of African-American men; as well as the personnel and policy decisions of the current U.S. presidential administration.
The conspirators’ alleged activities did not exclusively adopt one ideological view; they wrote on topics from varied and sometimes opposing perspectives. Members of the conspiracy were directed, among other things, to create “political intensity through supporting radical groups” and to “aggravate the conflict between minorities and the rest of the population.” The actors also developed playbooks and strategic messaging documents that offered guidance on how to target particular social groups, including the timing of messages, the types of news outlets to use, and how to frame divisive messages.
The criminal complaint does not include any allegation that Khusyaynova or the broader conspiracy had any effect on the outcome of an election. The complaint also does not allege that any American knowingly participated in the Project Lakhta operation.
The investigative team received exceptional cooperation from private sector companies, such as Facebook and Twitter.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Christopher Wray, Director of the FBI, made the announcement after the charges were unsealed. Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Alex Iftimie are prosecuting the case, with assistance of Trial Attorneys Matthew Y. Chang and Patrick T. Murphy of the National Security Division’s Counterintelligence and Export Control Section.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-464.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Rockford Man Sentenced to More Than 12 Years for Armed Robbery of Cell Phone StoreRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to a total of 150 months in federal prison for the robbery of the U.S. Cellular store, 6430 E. State St., in Rockford, on June 1, 2016, and using a firearm during a violent crime.
McKINLEY HOARDE, III, 23, was sentenced to 66 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence. After serving his sentence in federal prison, Hoarde will be placed on five years of supervised release. Hoarde pleaded guilty to the charges on July 9, 2018.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Also charged is RICKY WOODS, 22, of Rockford, who on Sept. 27, 2018, pleaded guilty to the robbery and the gun charge.
Both men admitted that after arriving at the U.S. Cellular store they pulled out and pointed their guns at the only employee at the store. One of them grabbed the employee by the shirt collar and pulled the employee to the back room of the store, where they ordered the employee to the ground. Hoarde and Woods then took cellular phones from the store and removed electrical equipment from the wall in an attempt to disable the security system, before running out of the store.
Sentencing for Woods is set for Dec. 12, 2018 at 9:30 a.m. He faces a maximum sentence of 20 years’ imprisonment for the robbery, and a mandatory minimum sentence of seven years and a maximum sentence of life imprisonment for the firearms offense. The sentence imposed for the firearms offense is required to be consecutive to any other sentence imposed. Each charge against Woods also carries a potential fine of up to $250,000.
Rochester Man Sentenced on Gun and Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Laquan J. Simmons, 26, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, and possessing of cocaine with the intent to distribute, was sentenced to 57 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that on June 8, 2017, on Wright Terrace in Rochester, Simmons possessed approximately 12 baggies of crack cocaine, with the intent to distribute it to others. The defendant also possessed a loaded 9mm semiautomatic handgun in his pocket. Simmons was previously convicted in 2015 of Criminal Sale of a Controlled Substance in the 5th Degree, a felony, and is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Mark Simmons, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
# # # #
Reserve Man Sentenced to 26 Months in Prison for Cocaine ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that TRAVIS CARTER, age 39, of Reserve, was sentenced yesterday for charges relating to narcotics trafficking.
CARTER pleaded guilty on January 4, 2018, to conspiring with others to distribute at least 28 grams of cocaine base (“crack”). CARTER also pled guilty to retaliating against a witness for information provided to law enforcement relating to the commission of a federal offense.
Judge Jane Triche Milazzo sentenced CARTER to 26 months in the Bureau of Prisons, as well as 4 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
* * *
Rapid City Man Charged with Firearm CrimeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of an Unregistered Firearm.
Darwin Tallman, age 30, was charged on September 18, 2018. He appeared before U.S. Magistrate Judge Daneta Wollmann on October 9, 2018, and pled not guilty to the charge.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Tallman knowingly being in possession of a Marlin, model 60, .22 caliber semi-automatic rifle that had a barrel of less than 16 inches which was not registered to him. The charge is merely an accusation and Tallman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Tallman was detained pending trial. A trial date has not been set.
Plano Man Sentenced to 7 Years for Firearms ViolationRead the Press Release
PLANO, Texas – A 70-year-old Plano, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown.
Alfred Pick pleaded guilty on May 22, 2018, to a charge of possession of a firearm while an unlawful user of a controlled substance and was sentenced, pursuant to an agreement by all parties, to 87 months in federal prison on Oct. 17, 2018 by U.S. District Judge Marcia Crone.
According to information presented to the court, Plano police were called to an area hospital on Oct. 2, 2017, regarding a belligerent individual. Officers encountered Pick, who was upset about the treatment of a relative in the hospital, and had told medical staff and others, that he intended to return to the hospital with a firearm and “would shoot [hospital staff] in their kneecaps and elbows first and let them bleed.” Pick was taken into custody and delivered to mental health authorities for an evaluation.
As a result of the incident at the hospital, agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) opened an investigation that eventually received information that Pick possessed weapons and narcotics at his home. Agents obtained a search warrant and found over 2 grams of cocaine and over 10 grams of marijuana in Pick’s residence. Agents also discover 14 firearms at Pick’s residence, including a fully automatic machine gun with an obliterated serial number that witnesses later told investigators that Pick had admitted he stole while he served in the military.
The sentencing court also received information that Pick had repeatedly been cited for criminal trespass at various area hospitals for his aggressive behavior, involving both verbal and physical abuse of medical staff and impeding staff. The court also heard that police had been called on two prior occasions in 2014 to restaurant parking lots where patrons reported that Pick had been threatening and brandished handguns in encounters with him.
Additional information presented at sentencing revealed Pick’s daughter reported to investigators that Pick had sexually abused her from the time she was 4-years-old until the age of 17, taking nude photographs of her to, as he put it, “chart her growth” and sexually assaulting her.
Finally, the sentencing court received evidence that Pick threatened the Federal Magistrate Judge who detained him indicating he would fly his plane with explosives to kill the Judge and ATF agents who investigated his case. Pick also stated that he would “have taught the Las Vegas shooter a thing or two,” referring to the Oct. 1, 2017 mass shooting.
“Obviously, there was a lot more to the sentence that was received – a sentence that Mr. Pick and his lawyer agreed to – than a single gun with a missing serial number,” said U.S. Attorney Joseph D. Brown. “Although Mr. Pick was a decorated veteran, he would use that status routinely to try to excuse his repeated criminal behavior. This was also not a mental health issue. It became a public safety issue.”
“The people concerned for Mr. Pick’s safety when he honorably served our nation were the same people most-concerned for his and the public’s safety throughout our investigation,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “I applaud those that recognized and reported Mr. Pick’s abuse of controlled substances, amplified threats and intensified displays of physical and psychological aggression as well as the decisive action of the ATF Agents.”
In addition to the charge for which he was convicted, Pick was originally charged with two other violations – possession of an unregistered firearm and possession of a firearm with an obliterated serial number. As part of Pick’s agreement to plead guilty and agreement as to the term of his sentence, these charges were dismissed.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Tracey Batson.
Owner of Financial Services Business Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – An Annandale man was sentenced today to nine years in prison for conspiracy, aiding in the preparation of false tax returns, mail and wire fraud.
According to court records and evidence presented at trial, Jose Manlapaz, 55, owned and operated a tax preparation business named JBM Financial Services or JBM Financial Group in Falls Church. Between 2007 and 2017, Manlapaz prepared thousands of false tax returns for his clients by adding false or inflated items, including education credits, childcare expenses, and fake business expenses. Manlapaz knew that the items he added to client returns would cause many clients to be audited, and set up a document mill in the Philippines called TMendoza Accounting Services to fabricate fake receipts and tax forms that he could submit on behalf of his clients to the IRS. Manlapaz made money by charging higher fees for getting clients higher refunds and for preparing fraudulent responses to IRS audit notices. After the IRS-CI searched JBM in 2013, and up until a second search of JBM in 2017, Manlapaz and JBM kept preparing false tax returns, but removed his preparer information so it looked like his clients were submitting the returns themselves. A search of his residence and two safe deposit boxes in 2017 resulted in the seizure of over $1.3 million in cash and valuables, including Rolex watches. The investigation also revealed that Manlapaz had also wired approximately $1.5 million to the Philippines during the conspiracy.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Katherine L. Wong and Kimberly R. Pedersen prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-115.
Owner of Jacksonville Tax Return Preparation Firm Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Adrian George (41, Jacksonville) to 15 months in federal prison for conspiring to commit wire fraud and conspiring to aid in the preparation and presentation of fraudulent tax returns to the IRS, as well as five additional counts of aiding in the preparation and presentation of fraudulent tax returns.
George had been found guilty by a federal jury on April 11, 2018.
According to court documents, George was the owner and operator of Professional Tax Service South, LLC, a tax preparation firm in Jacksonville. George taught his employees various ways to include false information in tax returns to ensure that his clients received large tax refunds. Acting at George’s direction, the employees offered to prepare fraudulent or “boosted” returns for clients, in exchange for cash payments from the proceeds of the resulting illegitimate tax refunds. After being in business for less than two years, George and his employees had prepared and filed 748 tax returns for clients, 100% of which requested refunds. According to testimony at trial, typically, only 62% percent of tax returns filed nationwide request refunds. The tax returns prepared and filed by George and his employees requested refunds totaling more than $3.2 million.
This case was investigated by IRS – Criminal Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
October Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 15 indictments charging 17 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Macario Ahilon-Lorenzo, age 40, of Lexington, Nebraska, is charged with illegal reentry after deportation from on or about September 21, 2018, and on or about September 24, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Eulogio Banda Chavez, age 27, of Omaha, Nebraska, is charged with illegal reentry after deportation on or about June 19, 2018, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Alyas Bertucci, age 18, Taylor Morris, age 20, and Dajuan Parker, age 20, are charged with assault in Indian Country resulting in serious bodily injury on or about August 18, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment each, a $250,000 fine each, a 3-year term of supervised release each, and a $100 special assessment each.
* Gustavo Chavez Rivera, age 26, of Bellevue, Nebraska, is charged with illegal reentry after deportation from on or about September 20, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Dawn D. Clover, age 53, of Lincoln, Nebraska, is charged in a six-count Indictment. Counts 1-5 charges the defendant with Wire Fraud on or about November 3, 2014, and continuing through at least on or about October 3, 2017. The Indictment alleges Clover defrauded victims of social security disability payments causing losses of $34,622.86. Count 6 charges the defendant with conversion of another’s social security benefits, beginning in or around July, 2013 and continuing without interruption until in or around October, 2017. The maximum possible penalty if convicted of Counts 1-5 is 20 years’ imprisonment for each count, a $250,000 fine for each count, a 3-year term of supervised release for each count, and a $100 special assessment for each count. The maximum possible penalty if convicted of Count 6 is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Donald James Cox, Jr., age 42, of Lincoln, Nebraska, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine (actual) beginning on or about January 1, 2018, to on or about August 6, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, not more than $10,000,000 fine, not less than a 5-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with use of a firearm during a drug trafficking offense on or about August 6, 2018. The maximum possible penalty if convicted is 5 years’ consecutive imprisonment, $250,000 fine, a 3-year term of supervised release, and $100 special assessment. Count III of the Indictment charges the defendant with felon in possession of a firearm on or about August 6, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a 3-year term of supervised release, and $100 special assessment. There is also an allegation to forfeit United States currency seized on or about August 6, 2018.
* Tristen Lasley, age 21, is charged with strangulation in Indian Country resulting in bodily injury on or about September 10, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jose Luna-Reyes, age 35, is charged with illegal reentry after deportation from on or about October 10, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Tomas Mendoza-Hernandez, age 53, of Omaha, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about September 28, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Brittany Newton, age 25, of Omaha, Nebraska, is charged with obtaining Oxycodone by fraud on or about August 20, 2018. The maximum possible penalty if convicted is 4 years’ imprisonment, $250,000 fine, 1-year term of supervised release, and a $100 special assessment.
* Luis Alberto Olvera Garcia, age 35, of Omaha, Nebraska, is charged with illegal reentry after deportation from on or about September 10, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Cesar Pereira Castro, age 30, is charged with illegal reentry after deportation from on or about September 28, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Seth Perina, age 42, of Fremont, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine (actual) beginning on or about September 5, 2018, to on or about September 11, 2018. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with use of a firearm during a drug trafficking offense on or about September 11, 2018. The maximum possible penalty if convicted is Life consecutive imprisonment, $250,000 fine, a 5-year term of supervised release, and $100 special assessment. There is also an allegation to forfeit United States currency seized on or about September 11, 2018.
* Oscar Pineda-Medina, age 43, of Grand Island, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about October 3, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Elideth Ramirez Cruz, age 27, of Omaha, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about September 18, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Osvaldo Ramirez Hernandez, age 41, of Fremont, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about October 10, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Gustavo Valle, age 35, of Lincoln, Nebraska, is charged with illegal reentry after deportation from on or about September 20, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Frederick Alan Voight, of Richmond, Texas, is charged in a 20-count Indictment. Counts 1-18 charges the defendant with Mail Fraud on or about Jun 25, 2012, and continuing through at least on or about May 3, 2015. Counts 19-20 charges the defendant with money laundering, beginning in or around February 22, 2013, and continuing until in or around February 28, 2013. The maximum possible penalty if convicted of Counts 1-18 is 20 years’ imprisonment for each count, a $250,000 fine for each count, a 3-year term of supervised release for each count, and a $100 special assessment for each count. The maximum possible penalty if convicted of Counts 19-20 is 10 years’ imprisonment for each count, a $2,000,000 fine for each count, a 3-year term of supervised release for each count, and a $100 special assessment for each count.
Ocala Man Sentenced for Conspiracy to Commit Wire Fraud and Filing A False Tax ReturnRead the Press Release
Ocala, Florida – U.S. District Judge Roy Dalton, Jr. has sentenced Donald Edward Smith to five years in prison for conspiracy to commit wire fraud and to three years in prison for filing a false federal income tax return, the sentences to be served concurrently. In addition, the Court ordered Smith to pay $3,632,880.95 in restitution to his victims, including $245,753 to the IRS for the federal income tax violation. The Court has also ordered forfeited two pieces of real property and the sales proceeds from a third piece of real property. The Court also entered a forfeiture judgment in the amount of $1,450,000.
According to court documents, from approximately September 2011, through September 2015, Smith conspired to engage in a wire fraud scheme to defraud individuals who were interested in investing in green technology and other projects. Smith promised victims lucrative returns, as well as access to hundreds of millions of dollars in financing, but the funds and/or loans never materialized. Further, Smith knowingly failed to report as income the fraudulent proceeds he received from the investor/victims for the year 2012.
Smith also participated in a separate scheme involving investments in a purported Styrofoam recycling business.
“While our primary responsibility is to ensure the integrity of our nation’s tax system, IRS Criminal Investigation Special Agents are also committed to maintaining the health of our economy by protecting taxpayers from those who might defraud aspiring investors,” stated Acting Special Agent in Charge Andy Tsui. “We will continue to lend our unique financial investigative skills to joint efforts such as this one to bring to justice scofflaws like Mr. Smith. We warn would-be investors to exercise due diligence when selecting an investment and to remember that an opportunity that sounds too good to be true, probably is.”
This case was investigated by the IRS – Criminal Investigation, the FBI, and the Office of Financial Regulation – Bureau of Financial Investigations for the State of Florida. It was prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
O.C. Man Sentenced to 6½ Years in Federal Prison for Running Three Investment Schemes that Cost Victims $7.4 MillionRead the Press Release
SANTA ANA, California – A Laguna Beach man was sentenced today to 78 months in federal prison for his conviction in a wire fraud case for stealing $7.4 million from the victims of three separate investment fraud schemes.
Peter Heinrich Conrad Reinert, 63, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $7,360,855 in restitution.
When he pleaded guilty in March to one count of wire fraud, Reinert admitted running three separate schemes. In one scam run through the Irvine-based Fazer Technologies, Reinert claimed he was developing, among other things, a product that could increase gas mileage for any car up to 150 miles per gallon. In another fraud, this one related to Global Encryption Imaging Corporation, Reinert claimed the company was developing, among other things, anti-counterfeiting technology to be used on state-issued identification documents. In the third scheme, Reinert told victims that another company he ran, Income from Waste Corporation, was developing a technology to convert used tires into oil.
Through the various false claims, Reinert induced victims to send him approximately $7.4 million. These victims came from around the nation and included farmers from Missouri.
As part of the schemes, to gain legitimacy with victims, Reinert falsely claimed to be a United States Secret Service agent and an intelligence officer in the United States Marines. Reinert’s “use of the trust the victims placed in Secret Service agents was particularly ironic since the Secret Service was the agency that investigated [Reinert] in the late 1990s for his prior federal felonies related to identity theft,” prosecutors wrote in court documents.
“He makes up stories about who he is to get what he wants,” Judge Staton said in court today.
Reinert also falsely claimed that companies such as Tesla and General Electric were interested in Fazer’s product – and that Tesla had stolen Fazer’s technology and used it in their cars.
Noting that Reinert made false statements about his German citizenship to a court official who was preparing a pre-sentence report, Judge Staton said his claim of American citizenship was “riddled with more holes than Swiss cheese.”
Reinert ran the schemes from 2010 through April 2015. Instead of using the victims’ money to develop the purported technologies, Reinert used the money to pay for various expenses, including luxury automobiles, sales commissions, purchases at Apple’s iTunes store, and wire transfers to an account in Poland.
As part of his plea agreement, Reinert agreed to forfeit approximately $300,000 that the FBI had seized in 2015, as well as a 2009 Mercedes Benz S63 AMG and a 2011 Mercedes Benz.
The investigation into Reinert was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Department of Defense, the United States Secret Service, U.S. Customs and Border Protection, the State Department, and the Laguna Beach Police Department provided substantial assistance.
The case is being prosecuted by Assistant United States Attorneys Vibhav Mittal and Daniel Lim of the Santa Ana Branch Office.
Northshore Mortgage Broker Pleads Guilty to Making False Statements to the Social Security AdministrationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JAMES BRIANT, age 68, a resident of Covington, Louisiana and mortgage broker and senior loan officer at Alpha Mortgage, LLC pleaded guilty yesterday to making false statements to the Social Security Administration in order to obtain Social Security Disability Payments.
According to the Bill of Information, from on or about June 10, 2010, the defendant, JAMES BRIANT, applied for disability benefits from the Social Security Administration, a department and agency of the United States, for a back disorder and heart disease. Thereafter, in December of 2011, he began receiving monthly disability benefits of approximately, $2,370, based on the representation that he was unable to work. During the time he received disability payments, the defendant, JAMES BRIANT, had an obligation to report any income he made to the SSA.
At a time unknown, but prior to September 2012, the defendant, JAMES BRIANT, began working as a loan officer and mortgage broker at Alpha Mortgage, L.L.C, earning a salary. He worked there through in or around June 2017 and never reported to the SSA that he was working or earned any income. On or about December 15, 2015, BRIANT completed a Social Security Disability form and submitted it to the SSA, an SSA-Form 795, “Statement of Claimant.” In this statement, he signed and certified, under penalty of perjury that he had not worked since 2011, knowing full well that this statement was materially false, fictitious, and fraudulent.
BRIANT is scheduled to be sentenced on January 24, 2019 before United States District Court Judge Barry W. Ashe. He faces a statutory maximum sentence of 5 years in prison, a term of 3 years of supervised release, restitution of $134,194 and a special assessment of 100.
U.S. Attorney Strasser commended special agents of the Social Security Administration, Office of Inspector General, who investigated the case and Assistant U.S. Attorney Sharan Lieberman, who is in charge of the prosecution.
Murfreesboro Man Charged with Embezzling More Than $1 Million from Lasko ProductsRead the Press Release
NASHVILLE, Tenn. – October 19, 2018 –Randall Griffin, 46, of Murfreesboro, Tennessee, was charged yesterday with mail fraud, for operating an embezzlement scheme, during which he stole more than $1 million from his former employer, Lasko Products, LLC., announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal information filed yesterday charged Griffin with embezzling $1,006,293.58 through a scheme that began in 2009 and continued until August 2017, while Griffin was employed as a maintenance technician for Lasko Products, a home appliance manufacturing and distribution company located in Franklin, Tennessee.
According to the charging document, Griffin carried out the scheme by creating and falsifying purchase orders and invoices for equipment parts, causing Lasko checks to be sent to a series of post office boxes that he opened under various false business names. Griffin created fake business names that closely resembled legitimate vendors with whom Lasko conducted business. Griffin also created bank accounts for each business and ultimately deposited the funds sent to these accounts into his personal bank account.
If convicted, Griffin faces a sentence of up to 20 years in prison, a $250,000 fine and restitution of the full amount. The government also seeks forfeiture of any and all proceeds derived from the scheme.
This case was investigated by the FBI and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers.
The charge is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Mobile County Man Receives 188 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Devon Deshaun Lawson a resident of Mobile, Alabama was sentenced to 188 months incarceration for possession of a firearm after being convicted of a felony of Distribution of a Controlled Substance in January 2008.
On June 7, 2018, Lawson pled guilty to the offense of felon in possession of a firearm. According to a factual statement Lawson signed in connection with his guilty plea, on about August 31, 2017, Mobile County Sheriff’s Department deputies executed a traffic stop when they came upon a vehicle stopped in the middle of the Louis Tillman and Grand Webb Roads in Mobile County, Alabama. When the deputies turned on their blue lights, the vehicle in the middle of the road drove off and pulled into a residence. After the vehicle came to a stop, the deputies smelled marijuana and conducted a search of the vehicle. The deputies retrieved drugs and recovered two guns. The guns were a .44 special revolver and a .380 handgun, both of which had been reported stolen, along with cash totaling $1,000. Lawson admitted to being a convicted felon and knew he was not supposed to own or possess firearms.
Special Agents of the Federal Bureau of Investigations along with deputies of the Mobile, County, Alabama Sheriff’s office investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Michael D. Anderson.
Missoula man sentenced for meth possessionRead the Press Release
MISSOULA – Missoula resident Bryce David Koch, 31, was sentenced today to 10 years in prison to be followed by 5 years of supervised release for conviction in a methamphetamine trafficking case. Koch pleaded guilty to possession with intent to distribute methamphetamine. Chief U.S. District Judge Dana L. Christensen presided at the sentencing.
In October 2017, law enforcement officers received information that Koch was going to Washington and purchasing methamphetamine to bring back for distribution in the Missoula area. On October 30, 2017, the Montana Highway Patrol stopped Koch in his vehicle near Frenchtown. A search warrant later revealed the presence of 326 grams of pure methamphetamine, which converts to more than 2,600 dosages that would have otherwise reached users in Montana.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
XXX
Mission Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance, Methamphetamine, was sentenced on October 15, 2018, by U.S. District Judge Roberto A. Lange.
Wiyaka Rochelle Guerue, a/k/a Feather Rochelle Guerue, age 32, was sentenced to 18 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, forfeiture of $227 in U.S. currency, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Guerue was indicted by a federal grand jury on October 17, 2017. She pled guilty on July 24, 2018.
Between January 1, 2016, and October 17, 2017, Guerue knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota.
Guerue received distributable quantities of methamphetamine and distributed the methamphetamine in South Dakota. The individuals who provided methamphetamine knew that she intended to engage in further distribution. Additionally, Guerue admitted she allowed several other individuals to distribute large quantities of methamphetamine from her Sunrise Apartment in Rosebud, South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Guerue was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Man Pleads Guilty of Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that ERIC EDWARD ARMSTRONG, age 31, of Anoka, Minnesota, pleaded guilty yesterday before U.S. District Court Judge Barry W. Ashe to one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
ARMSTRONG faces a maximum term of 10 years in prison and a $250,000.00 fine. He also faces a term of supervised release of between 5 years and life. Judge Ashe set his sentencing for January 24, 2019.
U.S. Attorney Strasser praised the work of the United States Marshals Service, the Orleans Parish Sheriff’s Office, the New Orleans Police Department, and the Louisiana State Police in this matter. He extended his thanks to the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew R. Payne is in charge of prosecution.
Michigan Man Sentenced to 60 Months in Prison for Heroin DistributionRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of RAYMOND ANTHONY POOLE, 44, to 60 months in prison for distributing heroin on the Leech Lake Indian Reservation and surrounding areas. POOLE pleaded guilty to one count of conspiracy on August 24, 2018, and was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, between April 2016 and March 2017, POOLE conspired with other individuals to distribute approximately 227 grams of heroin between Minneapolis, Bemidji, Cass Lake, Minnesota, and on the Leech Lake Indian Reservation, areas that have been significantly affected by heroin.
This case is the result of an investigation conducted by the Leech Lake Tribal Police Department, the Paul Bunyan Drug Task Force, the Minnesota Bureau of Criminal Apprehension, the Bureau of Indian Affairs, the United States Postal Inspection Service, the Headwaters Safe Trails Task Force, and the Hennepin County Violent Offender Task Force.
Assistant United States Attorney Bradley M. Endicott prosecuted the case.
Defendant Information:
RAYMOND ANTHONY POOLE, 44
Detroit, Mich.
Convicted:
- Conspiracy to distribute heroin, 1 count
Sentenced:
- 60 months in prison
- Four years of supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican National Pleads Guilty to Being an Illegal Alien in Possession of a Firearm and Possessing Fraudulent Immigration DocumentsRead the Press Release
BOSTON - A Mexican national illegally residing in Springfield pleaded guilty yesterday to firearms and immigration crimes.
Manreal Altamirano-Navarro, whose true age is unknown, pleaded guilty to one count of possession of a firearm by a person unlawfully in the United States and two counts of possession of fraudulent immigration documents. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 18, 2019.
On Dec. 20, 2017, Altamirano-Navarro possessed a firearm while he was unlawfully in the United States and possessed two fraudulent immigration documents. Specifically, Altamirano-Navarro possessed a Ruger .22 caliber pistol, and, while walking on Calhoun Street in Springfield, he fired the pistol into the air. A law enforcement officer observed Altamirano-Navarro as he fired his weapon and informed nearby officers who then arrested the defendant. After arresting Altamirano-Navarro, law enforcement seized from him a fraudulent permanent resident card and a fraudulent resident alien card, both of which displayed Altamirano-Navarro’s photo.
The charge of possession of a firearm by a person unlawfully in the United States provides for a sentence of no greater than 10 years in prison, a minimum of three years of supervised release, and a fine of between $20,000 and $200,000. The charges of possession of fraudulent immigration documents each provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
McLaughlin Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of assault of a federal officer was sentenced on October 15, 2018, by U.S. District Judge Charles B. Kornmann.
Austin Rain Folson, age 19, was sentenced to 8 months of federal custody, to be followed by 3 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, on March 14, 2018, Folson committed an assault when he forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while the officer was engaged in the performance of his official duties.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Folson was remanded to the custody of the U.S. Marshals Service.
Manhattan U.S. Attorney Announces Action to Recover Old Master Painting Stolen by Nazis and Selected for Hitler’s Art CollectionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeny Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a civil forfeiture action seeking the return to its rightful owner of a painting looted by the Nazis during World War II. The piece, A Scholar Sharpening His Quill, painted in 1639 by Salomon Koninck (the “Painting”), was allegedly stolen from the children and heirs of renowned Jewish art collector Adolphe Schloss. Schloss was a prominent Jewish art collector in Paris whose large collection of Old Master paintings (the “Schloss Collection”) was regarded as among the most significant private collections of Dutch and Flemish paintings assembled in prewar France.
Manhattan U.S. Attorney Geoffrey Berman said: “As alleged, this 1639 Old Master painting was owned by the Schloss family before it was stolen by the Nazis in France and transported to Munich to Hitler’s personal headquarters. We can never reverse history and undo the horrors committed at the hands of the Nazis. But we are steadfast in our determination to remember those who suffered and do what we can to return what was taken.”
According to the Complaint filed today in Manhattan federal court:
During World War II, the Nazis created a division known as the Einsatzstab Reichleiter Rosenberg (the “ERR”) in order to “study” Jewish life and culture as part of the Nazis’ propagandist mission against the Jews. Principally, the ERR confiscated artworks and other cultural holdings of “the enemies of the Reich” on a massive scale, and registered and identified those artworks – even photographing them – thereby leaving behind a detailed record of the works that they stole. ERR records and photographs of art and cultural artifacts looted by the Nazis are digitized and available in an online database created by the Conference on Jewish Material Claims Against Germany, and this database includes a photograph of the Painting taken by the ERR during World War II.
Upon the outbreak of World War II in 1939, the Schloss heirs moved the Schloss Collection from Paris to Chateau de Chambon, a township in Southern France, in an attempt to protect the collection from looting by the Nazis. Due to its value and significance, the ERR made substantial efforts to locate and loot the Schloss Collection. In 1943, the Schloss Collection was ultimately looted by the ERR from its holding place in Chateau de Chambon. The Nazis took 262 paintings from the Schloss Collection, including the Painting, and transported them to a depot located at the Jeu de Paume, a prewar museum in Paris that was operated by the ERR during the war. Ultimately, the Painting was selected by the Nazis to be transported to the the “Führerbau,” Hitler’s headquarters in Munich, from where it and many other paintings disappeared in the aftermath of the war.
The Painting resurfaced in November 2017, when a Chilean art dealer (the “Consignor”) attempted to sell the painting through a New York-based auction house. When the Painting arrived in New York from Chile, it was determined that it was the Painting came from the Schloss collection and had been looted by the Nazis. When the Consignor was informed of this, the Consignor stated that her father had purchased the Painting from Walter Andreas Hofer in Munich in 1952. Hofer was Hermann Göring’s chief purchasing agent and as such was a key player in the confiscation and looting of Jewish art collections during the Nazi era. In 1950, after being tried in absentia by a French military tribunal for his role in art plundering during World War II, Hofer was found guilty and sentenced to 10 years in prison.
The U.S. Attorney’s Office and the FBI are seeking forfeiture of the painting so it can be returned to its rightful owners, the Schloss family.
Mr. Berman thanked the FBI’s Art Crime Team for their assistance.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Thane Rehn is in charge of the case.
Manhattan Businessman Sentenced to Nine Months in Prison for Forging Federal Court Orders to Remove Negative Reviews from Internet Search ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL ARNSTEIN was sentenced today to nine months in prison for conspiring to forge a federal judge’s signature on counterfeit court orders that ARNSTEIN submitted to Google to get negative reviews about his business removed from Google search results. ARNSTEIN pled guilty on September 15, 2017, before U.S. District Court Judge Andrew L. Carter Jr., who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Michael Arnstein’s blatant criminal scheme to exploit the authority of the federal judiciary for his company’s benefit was outrageous. As Arnstein has learned, his attempts to remove negative reviews about his business from Google search results by forging a U.S. District Court judge’s signature may have worked in the short term, but it also earned him nine months in a federal prison.”
According to the allegations contained in the Complaint, the felony Information to which ARNSTEIN pled guilty, and statements made during court proceedings:
Between February 2014 and February 2017, ARNSTEIN engaged in a scheme to submit counterfeit federal court orders to Google, Inc. (“Google”) in an effort to get websites containing unfavorable postings about ARNSTEIN’s business de-indexed from Google’s internet search results. In furtherance of this scheme, ARNSTEIN and others forged the signature of a United States District Judge for the Southern District of New York on more than 10 counterfeit court orders. These counterfeit orders listed the websites containing purportedly defamatory information about ARNSTEIN’s business and ordered the removal of such information from the websites. ARNSTEIN then submitted the counterfeit orders, which appeared to be valid on their face, to Google and requested that Google de-index the websites containing the purportedly defamatory information.
* * *
In addition to the prison term, ARNSTEIN, 41, of Yonkers, New York, was sentenced to three years of supervised release, the first five months of which ARNSTEIN must serve in home detention. ARNSTEIN was also ordered to pay a fine of $20,000 and to perform 200 hours of community service during his term of supervised release.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Marshals Service. He also thanked Google for its helpful assistance in this investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sheb Swett and Daniel S. Noble are in charge of the prosecution.