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Friday 7 September 2018
Scarborough Woman Sentenced to Two Years for Embezzlement and Social Security FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Carrie Caporino, 46, of Scarborough, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years in prison and three years of supervised release for embezzling from two health care providers and for using the social security number of another person. She was also ordered to pay $549,468.80 in restitution. She pleaded guilty on April 30, 2018.
According to court records, between 2014 and November 2016, the defendant worked as the office manager for a southern Maine dental practice and embezzled over $293,000 by using office credit cards for personal expenses, using the office checkbook to pay rent and other personal expenses, and by making internet transfers from an office bank account to pay a personal credit card and her PayPal account.
Between December 2016 and 2017, the defendant was the office manager for a Falmouth physician and embezzled more than $255,000 from his practice by stealing checks mailed to the office by patients and insurance companies and then mobile depositing them to her own bank accounts using her smart phone.
In January 2014, the defendant fraudulently used the social security number of an individual living in southern Maine on a health insurance application.
In announcing her sentence, Judge Woodcock told Caporino that it takes a special kind of dishonesty to steal from someone who hired you and paid you to do a job. In effect, he said, her victims “paid her to steal from them.” He also found it particularly reprehensible that she victimized a dentist and a doctor. He stated that the defendant’s actions resulted in a “catastrophic victimization of two fine gentlemen who dedicated their lives to helping others.”
Both employers are now closed.
This case was investigated by the FBI and the Social Security Administration, Office of Inspector General.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 6, 2018, by U.S. District Judge Roberto A. Lange.
Phillip Little Hoop, age 36, was sentenced to 17 months in federal prison, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Hoop was indicted by a federal grand jury on September 12, 2017. He pled guilty on July 10, 2018. Little Hoop was convicted of Sexual Abuse of a Minor in December 2008. As a result of this conviction, he is required to register as a sex offender. In April 2017, Little Hoop was released from the Rosebud Sioux Tribe Adult Corrections Facility after serving a tribal custody sentence. He was aware of his obligation to update his sex offender registration after his release from custody, but he failed to do so. Between April 7, 2017 and May 11, 2017, Little Hoop failed to update his registration.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Little Hoop was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Pleads Guilty to Voluntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that Dallas Burning Breast, age 25, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 5, 2018, and pled guilty to an Indictment that charged him with Voluntary Manslaughter.
Burning Breast was indicted on March 13, 2018, and made his initial appearance on the Indictment on April 10, 2018.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In the early morning hours of March 5, 2018, Burning Breast was arguing with another man, the victim, at a house in Rosebud. The argument turned into a physical altercation and Burning Breast picked up a knife, which he used to stab the victim in the upper thigh. The knife penetrated the victim’s femoral artery, causing significant blood loss. The victim was subsequently pronounced dead at the Rosebud Indian Health Services Hospital in Rosebud.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
A presentence investigation was ordered and a sentencing date was set for November 26, 2018. Burning Breast was remanded to the custody of the U.S. Marshals Service pending sentencing.
Robstown-Based Heroin Leader Heads to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – The leader of a massive heroin and money laundering conspiracy has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Jesus Gutierrez, 46, of Corpus Christi, pleaded guilty April 26, 2018, to conspiracy to possess with intent to distribute more than one kilogram of heroin and conspiracy to launder money.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced him to 84 months in prison.
At the time of his plea, the court learned that he had been part of a significant, long-term heroin distribution ring operating in Robstown. Evidence also showed that on Oct. 4, 2017, authorities seized approximately a kilogram of heroin and almost $100,000 during the arrests related to this investigation.
Gutierrez and his nephew, Enrique Gutierrez Jr., regularly obtained kilogram quantities of heroin during the conspiracy that was then distributed via the other defendants. The overall scope of the conspiracy was estimated to be between 10-30 kilograms of heroin. The conspiracy operated between April 2016 and October 2017.
On May 9, 2018, Judge Ramos sentenced Enrique Gutierrez Jr., 31, of Sandia, to 13 years imprisonment. He had previously pleaded guilty to the same heroin conspiracy as well as conspiracy to launder money.
Also previously sentenced were Sakhone Chanrattana, 35, of Jarrell, who was ordered to serve 97 months, and Tim Molina, 34, of Robstown, who received a sentence of 18 months.
In assessing the sentences, Judge Ramos pointed to the large amount of heroin distributed in this conspiracy and its devastating impact on the community and families.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 6, 2018, by U.S. District Judge Roberto A. Lange.
Joseph Blue Bird, age 31, was sentenced to 15 months in federal prison, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blue Bird was indicted by a federal grand jury on February 14, 2018. He pled guilty on June 27, 2018.
Blue Bird was convicted of Abusive Sexual Contact in February 2014. As a result of this conviction, he is required to register as a sex offender. He began his term of supervised release on November 9, 2017. He initially registered his address. On December 10, 2017, he absconded from supervision and did not update his registration as required by law.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.
Postal Annex Owner Sentenced for Structuring Currency TransactionsRead the Press Release
NEWS RELEASE SUMMARY – September 7, 2018
SAN DIEGO – Lahkwinder Singh was sentenced in federal court today to 36 months in federal prison and a forfeiture of $1,955,521 to the United States for structuring approximately $2,955,521 in currency transactions with domestic financial institutions. The 36-month sentence is one of the longest imposed in the Southern District of California for a structuring conviction. Singh’s closely held corporation, Lovely Singh, Inc., was ordered to forfeit $1,000,000, and serve a 5-year term of probation.
Singh and Lovely Singh, Inc., owned and operated Postal Annex franchises in Lemon Grove, California. Singh also acted as the Chief Financial Officer of Lovely Singh, Inc. In 2006, Singh began operating the Postal Annexes as an agent of Western Union, which required that he operate under a federal license as a money transmitting business, and required that the Postal Annexes maintain a comprehensive Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) program to ensure that the Postal Annexes were vigilant in preventing unlawful funds from passing through Western Union, and the financial system at large. Singh was the designated BSA/AML Officer responsible for ensuring the Postal Annexes complied with all US financial and banking laws.
Instead of protecting the financial system, by no later than 2011, Singh engaged in a multi-year pattern of cash transactions below the $10,000 threshold to avoid detection by banks and law enforcement, with the intent to deposit Lovely Singh, Inc.’s cash proceeds free from scrutiny.
As Singh and Lovely Singh, Inc. admitted in each of their plea agreements, Singh and his co-defendant distributed Schedule II controlled substances from the Postal Annexes to persons located throughout the United States. Couriers smuggled controlled substances into the United States from Mexico, and delivered them to the Postal Annexes. Over the course of 2011 through 2016 Singh admitted that he was aware of a high probability that hundreds of packages sent from the Postal Annexes contained a prohibited controlled substance, and he deliberately avoided learning the truth of their contents.
As he further admitted in his plea agreement, Singh structured and attempted to structure $2,955,521 of currency transactions over the course of 469 cash deposits at several domestic financial institutions such as Bank of America, N.A. and Wells Fargo Bank, N.A. Singh conducted multiple deposits of less than $10,000 in cash on the same day, and over the course of several business days, into at least 19 different bank accounts with the purpose of avoiding a Currency Transaction Report, which is the report a financial institution must file for cash deposits exceeding $10,000 during any banking day.
The structured cash deposits included cash received in return for shipping the controlled substances from the Postal Annexes stores, as well as Western Union money transfer funds.
At sentencing, Judge Bashant stated that, with his millions of dollars in structured deposits, Singh “knew exactly what he was doing” – namely “avoiding detection from the government … for shipping drugs” out of the Postal Annex. The sentence imposed, as Judge Bashant stated, serves as a “very important deterrent” to third-party money launderers who are the gateway to the financial system, who like Singh, are engaged in playing a “shell game” of transactions.
This case was a joint investigation with IRS-Criminal Investigation, HSI, DEA, U.S. Postal Inspection Service and California DOJ.
“The U.S. mail is not a delivery service for drug traffickers, and our banking system is not meant to launder millions of dollars of drug money,” said U.S. Attorney Adam Braverman. “Together with our law enforcement partners we have put a stop to this brazen scheme and kept our institutions from being exploited by criminals.”
Postal Inspector in Charge Nichole Cooper stated, “Postal Inspectors and our law enforcement partners will vigorously investigate, arrest, and prosecute anyone who willfully allows the introduction of a controlled substance into the U.S. Mail. Today’s sentencing sends a strong message to drug traffickers that Postal Inspectors stand ready to protect the sanctity of the mail.”
“In this investigation, HSI and our law enforcement partners uncovered a sophisticated financial scheme aimed at providing cover for cash transactions that were tied to the illicit distribution of controlled substances in cities throughout the United States,” said Dave Shaw, HSI Special Agent in Charge in San Diego. “HSI continues to remind the community of the serious public health threat, as well as warn individuals who put consumers at risk for their own financial gain. We are committed to working closely with all of our law enforcement partners, both domestic and abroad, to prevent counterfeit drugs from being smuggled into the U.S. and distributed illegally over the internet.”
“Lahkwinder Singh thought he had the perfect scam going when he started using his postal annex to hide money earned by drug traffickers from the IRS," said Special Agent in Charge R. Damon Rowe, IRS Criminal Investigation Los Angeles Field Office. "Thanks to the hard work of IRS CI special agents and their law enforcement partners, Singh is now paying the price for his scheme and drug traffickers have lost another venue to launder their ill-gotten gains.”
“Mr. Singh utilized a legitimate mail delivery business to distribute prescription drugs, including fentanyl and Oxycontin, throughout the United States in order to avoid detection by law enforcement,” said DEA Special Agent in Charge Karen Flowers. “Mr. Singh’s actions directly contributed to the devastation of our American communities caused by the opioid epidemic. DEA will continue to investigate those seeking to profit from the illegal distribution of drugs and destruction of our communities.”
“Trafficking pharmaceutical drugs and illegally selling them without a prescription is dangerous and will not be tolerated,” said Attorney General Becerra. “Let this sentence send a message: if you attempt to unlawfully manipulate our financial system and fuel prescription drug abuse for a quick buck, federal and state law enforcement will hold you accountable."
DEFENDANTS Case Number 16cr729-BAS
Lahkwinder Singh Age: 59 Scripps Ranch, CA
Lovely Singh, Inc. California Corporation
SUMMARY OF CHARGES
Structuring Currency Transactions with One or More Financial Institutions – Title 31, U.S.C., Sections 5324(a)(3), (d)(2).
Maximum penalty for Singh: Ten years in prison, $500,000 fine, forfeiture of all property, real or personal, involved in the offense and any property traceable thereto, and a term of supervised release of up to three years.
Maximum penalty for Lovely Singh, Inc.: $1 million fine, forfeiture of all property, real or personal, involved in the offense and any property traceable thereto, and a term of probation of up to five years.
AGENCIES
Internal Revenue Service
Homeland Security Investigations
Drug Enforcement Administration
U.S. Postal Inspection Service
California Department of Justice
Oscar Ferrer Rivera Pleads Guilty to Conspiracy, Mail Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. – Today, Oscar Ferrer-Rivera pleaded guilty before Magistrate Judge Marshal D. Morgan to conspiracy to commit mail fraud, twelve counts of mail fraud, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
As a part of the guilty plea, Ferrer-Rivera admitted that from January 2011 to January 2016, in the District of Puerto Rico, he engaged in a scheme to defraud and conspired with others to engage in a scheme to defraud by lying and materially misrepresenting to individuals residing in Puerto Rico that he would invest the individual’s money in stocks, funds, securities, and other financial products (“investment vehicles”) with guaranteed principal and a fixed rate of return.
In furtherance of the scheme to defraud, Ferrer-Rivera falsely represented that the investment vehicles were safe, that all principal was guaranteed, and that the investment vehicle would earn a fixed rate of return. Ferrer-Rivera also falsely represented that the individual’s money would actually be invested in an investment vehicle. Ferrer-Rivera created corporations in Puerto Rico and Florida to open bank accounts and to deposit individual’s investment payments. These corporations, named Reco Financial, Inc., National Western HIA, Inc., and CGB Financial, Inc., were then used by Ferrer-Rivera to transfer investor’s funds to himself and others. Ferrer-Rivera then mailed false investment statements and interest payments to investors that falsely represented that funds were invested, falsely identified a type of investment, and falsely characterized the investment as having guaranteed principal and interest. In fact, Ferrer-Rivera failed to invest the investor’s money. The government estimates that the total amount invested in this fraudulent scheme exceeds $5 million, mainly from victims residing in the Cabo Rojo area of Puerto Rico.
Ferrer-Rivera also pleaded guilty to aggravated identity theft in relation to his July 7, 2016 use of another individual’s social security card and birth certificate to obtain a Puerto Rico identification from the Puerto Rico Department of Transportation. This occurred while Ferrer-Rivera was released on bail pending trial. The illegally obtained Puerto Rico identification was utilized by Ferrer-Rivera to flee the jurisdiction in violation of his pretrial conditions of release and to illegally obtain a Florida driver’s license. Ferrer-Rivera was arrested in Florida in March 2017 and remains detained pending sentencing.
If you think you have been defrauded by defendant Oscar Ferrer-Rivera please call the U.S. Attorney’s Office at (787) 766-5656 or the FBI at (787) 754-6000 to report that you suspect you are a victim of fraud.
Sentencing will be scheduled by the presiding District Judge, the Honorable Pedro A. Delgado. Ferrer-Rivera faces a maximum sentence of 20 years of imprisonment for each of the conspiracy and mail fraud charges and two mandatory consecutive years of imprisonment for the aggravated identity theft count. The case is being prosecuted by Assistant United States Attorney Seth Erbe and was investigated by the FBI and the United States Postal Inspection Service.
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Olathe Man Sentenced for Filing a False Tax ReturnRead the Press Release
KANSAS CITY, KAN. – An Olathe man has been sentenced to two years in federal prison for filing a false tax return, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay more than $454,000 in restitution.
Daniel Forster, 58, Olathe, Kan., pleaded guilty to causing a false tax return to be submitted to the Internal Revenue Service. In his plea, he admitted the crime occurred while he was one of three shareholders who owned an S corporation located in Olathe. Forster was responsible for the financial operations of the business, including overseeing corporate books and records and submitting tax information to a professional tax preparer.
Forster used funds belonging to the business to pay personal expenses such as credit card payments and then falsely represented those payments as deductible expenses.
McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Leon Patton for their work on the case.
Northborough Man Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A Northborough man was sentenced today in federal court in Worcester for possession of child pornography.
Joshua Lundberg, 35, was sentenced by U.S. District Court Judge Timothy S. Hillman to 10 years in prison and 10 years of supervised release. In April 2018, Lundberg pleaded guilty to one count of possession of child pornography.
In May 2016, law enforcement began an investigation of peer-to-peer file sharing networks used to share and obtain child pornography. On May 15, 2016, a member of law enforcement reviewing available public files on one such peer-to-peer network located several files he suspected to contain child pornography and was able to partially download one of the files. Law enforcement then traced the IP address used to share the partially downloaded video to Lundberg’s residence.
A search of Lundberg’s home in Northborough resulted in the seizure of a laptop that was hidden on top of the kitchen cabinets in a tight space against the ceiling. Forensic analysis of that computer revealed the presence of the peer-to-peer file sharing program that had been used to share the partially downloaded video along with dozens of digital files containing child pornography, one of which depicted the rape of a child between the ages of six and eight-years-old by an adult male.
At the time of Lundberg’s arrest, he was on probation for a 2012 conviction in Worcester Superior Court for charges relating to the possession and dissemination of child pornography.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office prosecuted the case.
North Kingstown Man Sentenced to 30 Months in Prison for Possessing Child PornographyRead the Press Release
PROVIDENCE - A North Kingstown, R.I., man whose social media user name was identified by Canadian authorities and provided to Homeland Security Investigations during an investigation into online sharing of child pornography in Saskatchewan, Canada, was sentenced today in U.S. District Court in Providence to 30 months in federal prison for possession of child pornography.
Shaun M. Swant, 28, was arrested by Homeland Security Investigations (HSI) agents and members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force on September 19, 2017, after their investigation identified his social media user name and IP address as a person using online programs to discuss and share child pornography online.
On the date of Swant’s arrest, HSI agents and members of the ICAC Task Force executed a court-authorized search of Swant’s resident and seized several computers and electronic devices. A forensic audit of the equipment determined that Swant possessed numerous images and videos of child pornography.
Swant pleaded guilty on February 27, 2018 to possession of child pornography.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Swant to serve 5 years supervised release upon completion of his term of incarceration, and to pay a mandatory assessment of $5,000 as provided for in the Justice for Victims Trafficking Act.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 97-121 months. The government and the defendant recommended the court impose a sentence of 30 months in prison.
Swant’s sentence is announced by United States Attorney Stephen G. Dambruch, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Nine people indicted for conspiracy to launder $2 million stemming from the shipment of one ton of marijuana from California to Wickliffe, Willoughby and EuclidRead the Press Release
Nine people were indicted in federal court for their roles in a conspiracy to launder more than $2 million in drug profits stemming from the shipment approximately one ton of marijuana from California to warehouses in Wickliffe, Willoughby and Euclid.
Indicted are: Aaron L. Eisenberg, 39, of California and formerly of Lake County; Jack Morgan, 53, of California; Jacob Lesiak, 40, of Chardon, Margaret Garcia, 40, of Chardon; Gary Baldwin, 43, of Huntsburg; Trevor Marlyne, 32, of Cleveland Heights; Robert Ross, 47, of Florida; Brian Teachout, 38, of Mentor, and Richard Warren, 43, of Willoughby. All nine are charged with engaging in a money laundering conspiracy, while Eisenberg, Morgan, Jacob Lesiak, Garcia, Baldwin, Warren and Teachout are charged with possession with intent to distribute marijuana.
Two more people – Corrie Lesiak, 40, of Chardon, and Cynthia Hounshell, 61, of Concord – are indicted on related money laundering charges.
Teachout is also charged with being a felon in possession of a firearm. Teachout had a Bushmaster AR-15, Smith & Wesson M & P 15-22, an AK-47, Glock model 17 pistol, SCCY 9 mm pistol, Walther P22 .22 caliber pistol, Kimber .45-caliber pistol, Magnum Desert Eagle .50-caliber pistol and ammunition on July 29, 2015, despite a previous conviction for marijuana trafficking, according to the indictment.
According to the seven-count indictment:
Eisenberg, Morgan and others used a commercial carrier called Specialized Transportation Inc. (STI) to send pallets filled with packages of marijuana from California to warehouses on Anderson Drive in Wickliffe, Airport Parkway in Willoughby and Tungsten Road in Euclid. This began in 2014
Jacob Lesiak, Garcia, Baldwin, Warren and others received the packages of marijuana. Jacob Lesiak, Teachout, Warren, Marlyne and Ross then distributed the marijuana throughout Northeast Ohio.
Jacob Lesiak, Teachout, Warren, Marlyne, Ross and others then pooled their proceeds and sent the money back to Eisenberg and Morgan in California on pallets via STI. They labelled the pallets as computer parts and/or with names of companies that did not exist in an effort to conceal the identity of the sender.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This cases is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the Internal Revenue Service – Criminal Investigations, Drug Enforcement Administration, Lake County Narcotics and Geauga County Narcotics.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Nine Arrested on Federal Narcotics Trafficking ChargesRead the Press Release
OXFORD, MS. William C. Lamar, U.S. Attorney for the Northern District of Mississippi, announced today that four criminal defendants were held without bond pending trial in the Northern District of Mississippi following their arrests for drug trafficking. The defendants were among nine defendants arrested and fifteen charged in the Northern District of Mississippi for conspiracy to distribute heroin, methamphetamine, cocaine and crack cocaine. The arrests were made as part of a joint, ongoing investigation by the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Mississippi Bureau of Narcotics (MBN), United States Marshals Service, Alcorn County Sheriff’s Office, and the Marshal County Sheriff’s Office.
All nine defendants arrested are facing federal drug trafficking charges. They include:
- Richard Smith, a.k.a.”Che,” age 36, of Cordova
- Mardrequs McKinney, a.k.a. “Dreek,” age 26, of Byhalia
- Cornelius McKinney, a.k.a. “Fruit,” age 36, of Memphis
- Alvin Rhyan, age 39, of Holly Springs
- Tynisha Dennis, age 27, of Memphis
- Jerrod Kinkle, age 31;
- Herbert Luellen, age 62;
- Charles Ratliff, age 61, of Corinth
- Samuel Nathan Clark, age 43
United States Magistrate Judge Roy Percy ordered that Richard Smith, Mardrequs McKinney, Cornelius McKinney and Alvin Rhyan should all be held pending their trials without bond after a hearing in federal court on Friday morning. Judge Percy ordered the detention of the defendants after finding that each of the four defendants presented a danger to the community.
U.S. Attorney Lamar stated: “This was truly a collaborative effort between federal, state and local law enforcement officers. This is another of many operations we are conducting in our district. Under the Organized Crime Drug Enforcement Taskforce and Project Safe Neighborhoods, these operations are targeted toward removing violent offenders from our communities. Working together, we will make and keep our neighborhoods safe.”
This case is being prosecuted for the United States by AUSA Scott Leary and AUSA Chad Doleac.
The public is reminded that all charges are merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Charged with Trafficking in Counterfeit GoodsRead the Press Release
U.S. Attorney Duane A. Evans announced that MAHIR SALIM (a/k/a MAHER SALEM, MIKE SALEM), age 40, a resident of New Orleans, Louisiana, was charged today by a federal grand jury in a one-count Indictment with trafficking in counterfeit goods.
According to the Indictment, beginning at a time unknown and continuing until about January 19, 2017, SALIM trafficked and attempted to traffic in approximately 111 pair of “True Religion” blue jeans, 50 pair of “Rock Revival” jeans, 8 “Michael Kors” purses, 19 “Coach” wallets, 2 “Michael Kors” wallets, 8 “Louis Vutton” purses, 6 “Gucci” purses, 177 “Polo” sweatshirts, 41 pair of “Polo” sweatpants, 24 “Polo” jogging suits, 44 pair of “Timberland” boots, 336 “New Era” hats, 473 pair of “Nike” shoes, 21 “Adidas” jogging suits, 114 pair of “Adidas” shoes, 6 bottles “Dolce & Gabbana” perfume, 110 “Mitchell & Ness” hats, 24 “North Face” vests, and 43 “Nike” hats.
If convicted, SALIM faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U. S. Attorney Evans praised the work of Immigration and Customs Enforcement, Homeland Security Investigations. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
New Haven Printing Company Owner Pleads Guilty to Federal Tax OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that LOUIS GOLDBERG, 71, of New Haven, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of aiding and assisting in the filing of a false tax return.
According to court documents and statements made in court, GOLDBERG owns Good Copy Printing Center Inc. (GCP), a printing company located in New Haven. GCP employed GOLDBERG’s nephew, Ira Malkin, as a principal salesman, and Malkin earned substantial commissions from GCP based on sales made to customers. Between approximately 2003 and 2012, GOLDBERG was aware that GCP paid many of Malkin’s personal expenses. With Malkin’s consent, GCP reduced his commissions by the amount of personal expenses the company paid. GCP then reported to the IRS through filed W-2 forms that Malkin had earned substantially less income than he truly earned. By reporting lower commissions paid, GCP also improperly reduced the amount of Medicare Payroll Taxes it reported and paid to the IRS.
In addition, GCP handled printing jobs for Comcast, which included GCP mailing out flyers and paying the relevant postage expense with the expectation that GCP would subsequently be reimbursed for that expense. GOLDBERG knew that Malkin had GCP pay the postage expense for the Comcast mailings, had Comcast reimburse Malkin for the cost of the mailings, and then had GCP reduce Malkin’s earned commissions by the amount of postage paid by GCP. Through this arrangement, between approximately 2009 and 2012, GCP further underreported Malkin’s income on W-2 forms filed with the IRS. By reporting lower income, GCP again improperly reduced the amount of Medicare Payroll Taxes it reported and paid to the IRS.
Between 2003 and 2012, GCP underreported a total of $40,490 in Medicare taxes.
GOLDBERG is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on November 29, 2018, at which time he faces a maximum term of imprisonment of three years.
On February 27, 2018, Malkin pleaded guilty to one count of tax evasion and admitted that he failed to pay $484,581 in federal income taxes on more than $1.5 million in unreported income. On August 9, he was sentenced to six months of imprisonment and six months of home confinement. Malkin has repaid the IRS all of his back taxes, but still owes more than $700,000 in interest and penalties.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Mexican National Sentenced for Illegally Reentering the United StatesRead the Press Release
Defendant had a prior removal for illegally entering the United States
CHARLESTON, W.Va. – Ezequias De Los Santos-Ruiz was sentenced for the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Santos-Ruiz, 23, of Oaxaca, Mexico received a “time served” sentence and was immediately remanded into ICE custody for administrative deportation proceedings. He has been in federal custody since March 15, 2018—over five months. United States Attorney Mike Stuart praised the work of the West Virginia State Police and Immigration and Customs Enforcement (ICE).
“We have prosecuted a significant number of immigration cases since I became United States Attorney,” said United States Attorney Mike Stuart. “We will continue to prosecute every one of these cases until all those entering this country do so by abiding by the laws of the United States of America.”
On March 15, 2018, Santos-Ruiz was a passenger in a car that was stopped by the West Virginia State Police near Beaver, Raleigh County, West Virginia. Once stopped, he offered to the Trooper a Mexican Identification document. The Trooper immediately contacted ICE agents to confirm alienage. ICE spoke to Santos-Ruiz and confirmed that he was not legally present in the United States. ICE agents drove to the area and placed Santos-Ruiz under arrest. ICE agents further submitted Santos-Ruiz’s fingerprints for a forensic examination. The results of the examination matched him to a prior removal from the United States in 2017 from Kingsville, Texas. After being deported, Santos-Ruiz illegally reentered the United States without lawful permission from the Secretary of Homeland Security. Santos-Ruiz is a citizen of Mexico. He entered a guilty plea on June 13, 2018.
Assistant United States Attorney Erik S. Goes handled the prosecution. Judge Irene C. Berger presided over the hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Mexican National Brothers Guilty of Trafficking Firearms in Southeast TexasRead the Press Release
BEAUMONT, Texas – A pair of Mexican national brothers have pleaded guilty to firearms charges in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Julio Ceasar Martinez-Rivas, 43, pleaded guilty to conspiracy to traffic firearms today before U.S. Magistrate Judge Zack Hawthorn. His brother, 31-year-old Eric Martinez-Rivas, pleaded guilty to the same charge on Sep. 5, 2018.
According to information presented in court, between March 2014 and March 2015, the brothers operated a firearms trafficking organization from their apartment in Houston, using money from Mexico to smuggle firearms from the United States to Mexico. To acquire firearms, the Martinez-Rivas brothers recruited co-conspirators from the Houston-area and used electronic money transfers from co-conspirators in Irapuato, Guanajuato, Mexico, to fund the scheme. The brothers arranged for electronic money transfers to be sent directly to the co-conspirators in the Houston area, who in turn used the money to purchase high caliber firearms from licensed and unlicensed firearms dealers in the Eastern District of Texas and elsewhere in the United States.
On June 17, 2015, the Martinez-Rivas brothers and five others were indicted by a federal grand jury in the Eastern District of Texas and charged with conspiracy to traffic firearms. The five co-conspirators have previously pleaded guilty and are serving federal prison sentences.
Under federal statutes, the defendants each face up to five years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security–ICE, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys John B. Ross and Randall L. Fluke.
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Men Indicted for Providing Falsely-Labeled Body ArmorRead the Press Release
ALEXANDRIA, Va. – Two Florida executives made their initial appearance in federal court today on charges related to falsely-labeled hard body armor plates they provided to the United States government.
According to allegations in the indictment, Dan Thomas Lounsbury, Jr., 49, of South Palm Beach, is the founder, sole owner, and CEO of Tactical Products Group, LLC (TPG), a Florida-based manufacturer and re-seller of various products to military, law enforcement, and private security clients. Andres Lopez-Munoz, 34, of Boynton Beach, is TPG’s Vice President for Sales and Federal Contracting. In 2012, TPG was selected as a sub-contractor on a contract to provide certain goods, including ten sets of hard body armor plates, to the United States government. The government had requested a specific type of plate, and Lounsbury and Lopez-Munoz both knew that no substitutions were allowed. Furthermore, Lounsbury and Lopez-Munoz both knew that these plates would be used to protect government personnel. The consequence of a failure of body armor is death or serious bodily injury. Nevertheless, Lounsbury and Lopez-Munoz worked together to procure cheaper substitute plates, and then to put fraudulent labels on these substitute plates falsely stating that they were the type of plates that the government had required. Some of these cheaper substitute plates were far outside their warranty period, and were not as protective as the false labels claimed.
Lounsbury and Lopez-Munoz are both charged with conspiracy to defraud the government with respect to claims and wire fraud. Lounsbury is additionally charged with false, fictitious, or fraudulent claims. If convicted, they face a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Grace L. Hill and Raj Parekh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-301.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Massachusetts Man Agrees to Plead Guilty to Sending Threatening Letters Containing Suspicious White PowderRead the Press Release
BOSTON – A Beverly, Mass., man agreed to plead guilty today in connection with mailing six threatening letters containing suspicious white powder to high-profile individuals and to sending another seven threatening letters to law enforcement officials and others.
Daniel Frisiello, 25, has agreed to plead guilty to 13 counts of mailing a threat to injure the person of another and six counts of false information and hoaxes. On March 1, 2018, Frisiello was arrested and charged with five counts of mailing a threat to injure and five counts of false information and hoaxes. He has since remained in home detention under restrictions.
Law enforcement originally connected Frisiello to mailing five high-profile individuals around the country an envelope that contained suspicious white powder and a note indicating that the powder was dangerous or intended to cause harm. There were notable commonalities among the envelopes, including a Boston postmark. Further investigation revealed that one victim had also received a “glitter bomb,” that is, an envelope containing glitter sent to an unsuspecting individual that, when opened, spills out onto the recipient. Law enforcement traced financial records to Frisiello, who had ordered and paid for the glitter bomb to be delivered to the victim. Furthermore, agents recovered trash from Frisiello’s residence that appeared to contain remnants of the cut-out messages that Frisiello sent to some victims.
Frisiello also sent a white-powder letter to members of the First Family during the 2016 presidential campaign, which caused a significant hazardous material response by law enforcement. Additional evidence then demonstrated that Frisiello had sent multiple other threatening letters to other victims, including two letters in 2015 to the manager of a Massachusetts company that had recently terminated one of Frisiello’s family members, and five letters in 2016 and 2017 to members of law enforcement in Massachusetts, Connecticut and Rhode Island.
The charge of mailing a threat to injure the person of another provides for a sentence of no greater than five years in prison, or 10 years in prison for threats addressed to a federal official, three years of supervised release and a fine of $250,000. The charge of false information and hoaxes provides for a sentence of no greater than five 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Raymond Moss, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Stephen Marks, Special Agent in Charge of the U.S. Secret Service Boston Field Office and Beverly Police Chief John G. LeLacheur made the announcement today. This investigation was conducted by the FBI Boston Division’s Joint Terrorism Task Force led by members of the FBI, U.S. Postal Inspection Service, U.S. Secret Service and the Beverly Police Department. Assistant U.S. Attorney Scott Garland of Lelling’s National Security Unit is prosecuting the case.
Maryland Man Sentenced to 51 Months in Prison for Stealing $668,000 from Employer and Incapacitated RelativeRead the Press Release
WASHINGTON – Zevi Chaim Mehlman, 53, of Silver Spring, Md., was sentenced today to 51 months in prison for a pair of schemes in which he stole $96,000 from a school where he was working and an additional $572,000 from a relative.
U.S. Attorney Jessie K. Liu for the District of Columbia, Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Eric Shen, Acting Inspector in Charge, Washington Division, U.S. Postal Inspection Service, made the announcement.
Mehlman pled guilty in March 2018, in the U.S. District Court for the District of Columbia. Under the plea agreement, he is required to pay a total of $668,000 in restitution and an identical amount in a forfeiture money judgment. He was sentenced by the Honorable Emmet G. Sullivan. Following his prison term, he will be placed on three years of supervised release.
According to a statement of offense submitted at the plea hearing, one scheme was carried out by Mehlman against his then-employer, the Washington International School. Mehlman worked for the school from September 2008 until November 2015, initially running its computer network before becoming Assistant Director of Information Services.
At Mehlman’s request, the school provided him with two credit cards so that he could assist in the purchase of computers. From August 2014 until October 2015, Mehlman used the credit cards to make approximately 50 unauthorized purchases of Apple computer equipment. This equipment was not purchased for the school’s use. Instead, Mehlman returned the equipment to Apple and instructed Apple to place the credit onto his own personal debit cards. The total amount that Mehlman generated through this scheme was approximately $96,000.
The school’s leadership confronted Mehlman about the purchases in November 2015, and he admitted his actions and apologized. The school terminated his employment soon afterward.
According to the statement of offense, Mehlman carried out the second scheme against his uncle. In 2003, his uncle gave power of attorney to Mehlman to conduct financial affairs for him. In 2012, the District of Columbia’s Adult Protective Services filed a court petition seeking the appointment of a guardian and conservator for the uncle. The agency filed the petition after it was informed that approximately $1.2 million had been withdrawn from his brokerage accounts in 2010 and 2011. In the petition, the agency alleged that the uncle was an incapacitated individual who needed 24-hour care and who was unable to handle his finances and living arrangements. On May 3, 2012, the Court appointed co-guardians and co-conservators and revoked Mehlman’s power of attorney.
A copy of the Court’s order was mailed to Mehlman. Despite that order, and without the knowledge of the guardians and conservators, from May 17, 2012 until May 28, 2016, Mehlman wrote dozens of checks and stole approximately $572,000 from one of his uncle’s accounts.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Ebert, and Acting Inspector in Charge Shen commended the work of those who investigated the case from the U.S. Secret Service. They also expressed appreciation for the efforts of those who investigated the case from the U.S. Postal Inspection Service, including Grace Gale, Investigative Support Analyst. They acknowledged the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Criminal Investigator Nicole Hinson, Paralegal Specialists Kristy Penny and Joshua Fein, former Special Assistant U.S. Attorney Marina Stevenson, who assisted with forfeiture issues, and Assistant U.S. Attorney Anthony Saler, who investigated and prosecuted the case.
Maryland MS-13 Program Leader Pleads Guilty in Federal Court to a Violent Racketeering Conspiracy, Including Attempted MurderRead the Press Release
Greenbelt, Maryland – Jose Augustin Salmeron-Larios (a/k/a Joseph Morales-Martinez, Angel Salvador Gutierrez, Yankee, and Kean), age 25, of Severn, Maryland, pleaded guilty today to a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13; attempted murder in aid of racketeering; and using and carrying a firearm during and in relation to a crime of violence.
The plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration - Washington Field Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
“Salmeron-Larios’s arrest and conviction have dealt a significant blow to MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “As the founder and leader of the Maryland Program, Salmeron-Larios organized and coordinated violence, drug trafficking and extortion among six cliques operating in the Maryland area. His arrest helped to dismantle the Maryland Program and the effort to create a permanent structure under which these cliques worked.”
“MS-13 is an organization ruthlessly committed to living up to its motto—‘Kill, Steal, Rape, Control,” said Assistant Attorney General Benczkowski. “Fortunately, today’s plea demonstrates that the Department of Justice and its law enforcement partners are committed to relentlessly pursuing the gang and its leadership.”
“DEA and our partners work hard every day to ensure the safety of our communities,” state DEA Acting Special Agent in Charge Scott Hoernke. “Following this case through to a guilty plea shows our commitment to hold accountable those who jeopardize the safety of our neighborhoods. We will continue to investigate criminal enterprises that have a callous disregard for the destruction they cause.”
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). MS-13 cliques often combine and work together as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity. A person within the participating cliques is selected as the Program leader.
To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”
According to his plea agreement, from at least January 2015 through September 2016, Salmeron-Larios was a member of the PVLS clique and served as the MS-13 Maryland Program Leader. Salmeron-Larios admitted to participating in numerous acts in furtherance of the racketeering conspiracy.
For example, in April 2015, Salmeron-Larios and other MS-13 members and associates traveled to New York, met with MS-13 members there and discussed MS-13 business. Salmeron-Larios admitted that on November 7, 2015, he and other MS-13 members and associates traveled to Hyattsville, Maryland, intending to murder Victim 1, who was believed to be a member of the 18th Street Gang. Two MS-13 co-conspirators lured Victim 1 to a location in Hyattsville. Salmeron-Larios and two MS-13 co-conspirators, all armed with firearms, went to the meeting location. Salmeron-Larios and the armed MS-13 co-conspirators got out of the car while another MS-13 accomplice waited in the vehicle. The victim arrived in a car driven by another person and one of Salmeron-Larios’s MS-13 co-conspirators fired his handgun into the vehicle, attempting to kill Victim 1, who was struck in the face by one of the gunshots. Salmeron-Larios and his accomplices returned to their vehicle and left the area. The guns used during this crime, including the gun possessed by Salmeron-Larios, were taken to the residence of the co-conspirator who shot Victim 1. Victim 1 survived the shooting, but lost an eye, sustained loss of hand and leg function, and was permanently disfigured as a result of the shooting. Salmeron-Larios participated in the shooting in order to gain entrance to, maintain, and increase his position in MS-13.
Salmeron-Larios admitted that in January 2016, he traveled to Florida and obtained firearms, which were distributed to MS-13 members for use in Maryland. In addition, during the time of the conspiracy, Salmeron-Larios possessed and distributed controlled substances, including cocaine, for the benefit of MS-13. Finally, on June 8 and June 9, 2016, Salmeron-Larios discussed an attack upon suspected rival gang members with other MS-13 members. During several conversations, Salmeron-Larios discussed providing a firearm to a member of the Sailors Clique to be used against rival gang members in the area of 23rd Avenue in Langley Park “by the towers.” Salmeron-Larios instructed one individual where to find the gun and that it was loaded, and instructed another MS-13 member to loan a gun to a member of the Sailors Clique.
Salmeron-Larios faces a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise; a maximum sentence of 10 years in prison for attempted murder in aid of racketeering; and a mandatory 10 years in prison, consecutive to any other sentence, and up to life in prison, for using and carrying a firearm during a crime of violence.
U.S. District Judge Paula Xinis has scheduled sentencing for Salmeron-Larios for December 7, 2018, at 10:00 a.m. Salmeron-Larios remains detained pending sentencing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the DEA; HSI Baltimore, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski also recognized the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Hur and Mr. Benczkowski thanked Assistant United States Attorneys William D. Moomau, Ray D. McKenzie, and Lindsay Eyler Kaplan and Trial Attorney Catherine K. Dick with the Justice Department’s Organized Crime and Gang Section, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Maryland MS-13 Program Leader Pleads Guilty in Federal Court to a Violent Racketeering Conspiracy, Including Attempted MurderRead the Press Release
Jose Augustin Salmeron-Larios aka “Joseph Morales-Martinez,” “Angel Salvador Gutierrez,” “Yankee,” and “Kean,” 25, of Severn, Maryland, pleaded guilty today to a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13; attempted murder in aid of racketeering and using and carrying a firearm during and in relation to a crime of violence.
Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks and Montgomery County State’s Attorney John McCarthy made the announcement.
“MS-13 is an organization ruthlessly committed to living up to its motto—‘Kill, Steal, Rape, Control,” said Assistant Attorney General Benczkowski. “Fortunately, today’s plea demonstrates that the Department of Justice and its law enforcement partners are committed to relentlessly pursuing the gang and its leadership.”
“Salmeron-Larios’s arrest and conviction have dealt a significant blow to MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “As the founder and leader of the Maryland Program, Salmeron-Larios organized and coordinated violence, drug trafficking and extortion among six cliques operating in the Maryland area. His arrest helped to dismantle the Maryland Program and the effort to create a permanent structure under which these cliques worked.”
“DEA and our partners work hard every day to ensure the safety of our communities,” said DEA Acting Special Agent in Charge Hoernke. “Following this case through to a guilty plea shows our commitment to hold accountable those who jeopardize the safety of our neighborhoods. We will continue to investigate criminal enterprises that have a callous disregard for the destruction they cause.”
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). MS-13 cliques often combine and work together as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity. A person within the participating cliques is selected as the Program leader.
To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”
According to his plea agreement, from at least January 2015 through September 2016, Salmeron-Larios was a member of the PVLS clique and served as the MS-13 Maryland Program Leader. Salmeron-Larios admitted to participating in numerous acts in furtherance of the racketeering conspiracy.
For example, in April 2015, Salmeron-Larios and other MS-13 members and associates traveled to New York, met with MS-13 members there and discussed MS-13 business. Salmeron-Larios admitted that on Nov. 7, 2015, he and other MS-13 members and associates traveled to Hyattsville, Maryland, intending to murder Victim 1, who was believed to be a member of the 18th Street Gang. Two MS-13 co-conspirators lured Victim 1 to a location in Hyattsville. Salmeron-Larios and two MS-13 co-conspirators, all armed with firearms, went to the meeting location. Salmeron-Larios and the armed MS-13 co-conspirators got out of the car while another MS-13 accomplice waited in the vehicle. The victim arrived in a car driven by another person and one of Salmeron-Larios’s MS-13 co-conspirators fired his handgun into the vehicle, attempting to kill Victim 1, who was struck in the face by one of the gunshots. Salmeron-Larios and his accomplices returned to their vehicle and left the area. The guns used during this crime, including the gun possessed by Salmeron-Larios, were taken to the residence of the co-conspirator who shot Victim 1. Victim 1 survived the shooting, but lost an eye, sustained loss of hand and leg function, and was permanently disfigured as a result of the shooting. Salmeron-Larios participated in the shooting in order to gain entrance to, maintain, and increase his position in MS-13.
Salmeron-Larios admitted that in January 2016, he traveled to Florida and obtained firearms, which were distributed to MS-13 members for use in Maryland. In addition, during the time of the conspiracy, Salmeron-Larios possessed and distributed controlled substances, including cocaine, for the benefit of MS-13. Finally, on June 8 and June 9, 2016, Salmeron-Larios discussed an attack upon suspected rival gang members with other MS-13 members. During several conversations, Salmeron-Larios discussed providing a firearm to a member of the Sailors Clique to be used against rival gang members in the area of 23rd Avenue in Langley Park “by the towers.” Salmeron-Larios instructed one individual where to find the gun and that it was loaded, and instructed another MS-13 member to loan a gun to a member of the Sailors Clique.
Salmeron-Larios faces a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise; a maximum sentence of 10 years in prison for attempted murder in aid of racketeering; and a mandatory 10 years in prison, consecutive to any other sentence, and up to life in prison, for using and carrying a firearm during a crime of violence.
U.S. District Judge Paula Xinis has scheduled sentencing for Salmeron-Larios for Dec. 7 at 10 a.m. Salmeron-Larios remains detained pending sentencing.
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 was conducted by DEA, HSI Baltimore, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. The Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit provided investigative assistance. This Organized Crime Drug Enforcement Task Forces case is being prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorneys William D. Moomau, Ray D. McKenzie, and Lindsay Eyler Kaplan of the District of Maryland.
Manhattan U.S. Attorney Announces Extradition of Alleged Russian Hacker Responsible for Massive Network Intrusions at U.S. Financial Institutions, Brokerage Firms, A Major News Publication, and Other CompaniesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney, Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and David E. Beach, Special Agent in Charge of the U.S. Secret Service New York Field Office (“USSS”) announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” was extradited from the country of Georgia. TYURIN was arrested by Georgian authorities at the request of the United States for charges arising from his participation in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies. These hacks included the largest theft of customer data from a U.S. financial institution in history. TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham”; Joshua Samuel Aaron, a/k/a “Mike Shields”; and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators.
TYURIN, a Russian citizen, arrived in the Southern District of New York earlier today, and will be presented this afternoon in Manhattan federal court before United States Magistrate Judge Henry B. Pitman. TYURIN is expected to appear before United States District Judge Laura Taylor Swain on September 25, 2018, at 2:00 PM.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Andrei Tyurin, a Russian national, is alleged to have participated in a global hacking campaign that targeted major financial institutions, brokerage firms, news agencies, and other companies. Tyurin’s alleged hacking activities were so prolific, they lay claim to the largest theft of U.S. customer data from a single financial institution in history, accounting for a staggering 80 million-plus victims. As Americans increasingly turn to online banking, theft of online personal information can cause devastating effects on their financial wellbeing, sometimes taking years to recover. Today’s extradition marks a significant milestone for law enforcement in the fight against cyber intrusions targeting our critical financial institutions.”
FBI Assistant Director William F. Sweeney Jr. said: “Andrei Tyurin allegedly engaged in a long-running effort to hack into the systems of U.S. based financial institutions, brokerage firms and financial news publishers, all from the perceived safety of operating outside our borders. As alleged, his illegal acts included the historically largest theft of customer data from a U.S. financial institution. Today’s charges and extradition should serve as a lesson to all those who would conspire to engage in similar activity that the FBI and our partners will continue to bring these hackers to justice, regardless of where they may hide. I’d like to specifically thank our partners with the United States Secret Service, whose collaboration was crucial to seeing this case to fruition.”
U.S. Secret Service Special Agent in Charge David E. Beach said: “This case represents the core of the U.S. Secret Service’s integrated mission to secure our nation’s cyber related financial infrastructure and protect our nation’s leadership. The collaboration between the Secret Service New York Field Office Electronic Crimes Task Force, FBI New York Office Cyber Division and our global law enforcement partners demonstrates the commitment to combating cyber-enabled financial crimes and ensuring those responsible are held accountable.”
According to the allegations contained in the superseding indictments unsealed today in Manhattan federal court[1], other filings in this case, and statements made during court proceedings:
From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the United States, including the theft of personal information of over 100 million customers of the victim companies. TYURIN’s hack of one financial institution headquartered in Manhattan resulted in the theft of personal information of over 80 million customers, making it the largest theft of customer data from a U.S. financial institution in history. TYURIN engaged in these crimes at the direction of Shalon and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States. For example, in an effort artificially to inflate the price of certain stocks publicly traded in the United States, Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions.
In addition to the U.S. financial sector hacks, TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors. Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns. Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds.
* * *
TYURIN, 35, of Moscow, Russia, is charged with one count of conspiracy to commit computer hacking, which carries a maximum prison term of five years; one count of wire fraud, which carries a maximum prison term of 30 years; four counts of computer hacking, each of which carries a maximum prison term of five years; one count of conspiracy to commit securities fraud, which carries a maximum prison term of five years; one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, which carries a maximum prison term of five years; one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum prison term of 30 years; and aggravated identity theft, which carries a mandatory consecutive term of imprisonment of two years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Swain.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the U.S. Secret Service, and expressed his sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings. He also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution. Assistant U.S. Attorney Daniel Tracer is in charge of the forfeiture aspects of the case.
The charges contained in the indictments are merely accusations and TYURIN is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Superseding Indictments and the descriptions of the Superseding Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Major Illegal Distributor of Prescription Painkillers Changes Plea to Guilty After Government Begins Presenting Evidence at TrialRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of health care fraud, conspiracy to commit health care fraud, distribution and possession with the intent to distribute oxycodone or oxymorphone, conspiracy to distribute oxycodone and oxymorphone, and felon in possession of firearms, United States Attorney Scott W. Brady announced today.
William Richardson, age 57, pleaded guilty to eight counts before United States District Judge Mark Hornak.
"William Richardson was among Pittsburgh’s largest illegal distributors of the prescription painkillers oxycodone and Opana, and the crime he perpetrated can be described as taxpayer-funded drug dealing," stated U.S. Attorney Brady. "We have made the aggressive prosecution of opioid traffickers our top priority. Whether you are illegally selling opioids on the street or the Darkweb, or from a doctor’s office, we will find and prosecute you to the fullest extent of the law."
"We will continue to investigate and take action against those who commit health care fraud," said Special Agent in Charge Robert Jones. "We’re all victims of this crime. The community sees more dangerous, addictive drugs on the streets and the Medicaid and Medicare system taxpayers fund is cheated. That's why the FBI will use every investigative technique possible to stop these types of crimes from happening."
"Individuals responsible for the reckless distribution of powerful opioids and those that abuse taxpayer-funded insurance programs must be held accountable," said DEA Special Agent in Charge Jonathan A. Wilson. "DEA, along with our federal, state and local partners, will continue to make these cases a priority as part of our commitment to ensuring the safety and health of our communities".
In connection with the guilty plea, the court was advised that Richardson coordinated with numerous individuals who sold to him, for redistribution, oxycodone and oxymorphone that those individuals had acquired through taxpayer-funded medical insurance programs, including Medicare and Medicaid. Richardson also acquired prescription opiate medication from Kavon Dawkins, a large-scale illegal opiate pill distributor from Detroit, Michigan, and through obtaining opiate pills through his own opiate-pill prescriptions, which he obtained fraudulently.
In August 2014, the Pittsburgh Bureau of Police arranged for three controlled purchases from Richardson, and on August 15, 2014, the Pittsburgh Bureau of Police executed a search warrant at Richardson’s home and seized his inventory of oxycodone and oxymorphone pills, along with five firearms. Prior to August 15, 2014, Richardson had been convicted of numerous felony offenses and he was therefore precluded from possessing firearms under federal law. After his arrest by the Pittsburgh Bureau of Police and while on house arrest pending the disposition of those charges, Richardson continued to distribute large quantities of oxycodone and oxymorphone.
The Federal Bureau of Investigation and the Drug Enforcement Administration conducted an investigation of Richardson that included, among other investigative techniques, intercepting the communications of Richardson and his conspirators. Those communications revealed that Richardson, on a nearly continuous basis, was selling oxycodone and oxymorphone from his home. That investigation led to the execution of a second search warrant at Richardson’s home on June 7, 2016, which led to the seizure of Richardson’s inventory of oxycodone and oxymorphone, along with cash and a cellular telephone used during Richardson’s pill distribution business.
Richardson’s trial began on Thursday September 6, 2018, but Richardson elected to change his plea to guilty after the government began to present its evidence. The investigation led to the conviction of 15 other individuals, including Dawkins and Antoinette Adair, who was, at one time, a major pill distributor from Pittsburgh’s East End and the dismantlement of Richardson’s extensive pill-distribution network. Both Richardson and Adair were former patients of Dr. Oliver Herndon, who supplied both Richardson and Adair with large amounts of oxycodone. Herndon was previously convicted in connection with illegally supplying individuals like Adair and Richardson with opiate pills
The law provides for a total sentence of 180 years in prison, a fine of $10,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Brendan T. Conway and Jeffrey Bengel are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration, in conjunction with the Pittsburgh Bureau of Police, the Pennsylvania Attorney General’s Office, the Castle Shannon and New Castle Police departments, and the Michigan State Police, conducted the investigation that led to the prosecution of Richardson.
Lover and Co-Conspirator of U.S. Army Sergeant who Murdered his Wife Sentenced to 17 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Dolores Delgado, age 33, of San Antonio, Texas, today to 17 years in prison, followed by five years of supervised release, for interstate travel to commit domestic violence resulting in death, in connection with the death of Karlyn Ramirez. Army Sergeant Maliek Kearney, age 37, of San Antonio, Texas, with whom Delgado had a romantic relationship, was convicted by a federal jury on August 9, 2018, for the murder and a related gun charge.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Major General David P. Glaser, Commanding General of the U.S. Army Criminal Investigation Command; and Anne Arundel County Police Chief Tim Altomare.
According to Delgado’s plea agreement, Karlyn Ramirez was an active-duty soldier of the United States Army assigned to Fort Meade, Maryland. Ms. Ramirez was found shot to death in her off-post residence on the morning of August 25, 2015. Her four-month old daughter had been placed in her arms. Forensic evidence estimated the likely time of death was during the late evening hours of August 24, 2015.
At the time of her death, Ramirez was married to another active-duty soldier, Sergeant Maliek Kearney, who was the father of her four-month old daughter. They had recently separated and Ramirez had obtained a protective order through the Army prohibiting all contact between Ramirez and Kearney.
According to Delgado’s plea agreement and evidence presented at Kearney’s trial, Kearney was stationed at Fort Jackson, South Carolina. On August 24, 2015, he finished work in the early afternoon and traveled from South Carolina to Severn, Maryland. He entered Ramirez’s townhouse using his key and brandishing a Taurus .357 caliber revolver. Ramirez attempted to calm her husband but reiterated that she did not want to see him again. Kearney shot Ramirez three times, killing her. He then took off her pants and pulled down her underwear in an attempt to make it look like a sexual assault. Kearney also placed their 4-month old daughter in Ramirez’s arms.
Delgado admitted that she provided the firearm that Kearney used to murder Ramirez and allowed Kearney to drive her car from South Carolina to Maryland to commit the murder. Delgado also purchased large gas cans for Kearney to take with him, so that he would not have to stop for gas and risk being seen. During the murder, Delgado (who lived in Florida at the time) stayed at Kearney’s apartment in South Carolina with his phone and vehicle so that it would appear that he was in South Carolina at the time of the murder. After the murder, Delgado and another individual traveled to a waterway in Florida and disposed of the firearm, shell casings, the clothing Kearney wore during the murder, and the key he used to enter Ramirez’s townhouse. Delgado also dismantled the revolver and took steps to obliterate the serial number. Law enforcement divers recovered the firearm and forensic testing determined that it was indeed the gun Kearney used to shoot Karlyn Ramirez to death.
Judge Russell has scheduled sentencing for Maliek Kearney on November 30, 2018, at noon. Kearney remains detained pending sentencing.
Delgado has been detained since her arrest.
United States Attorney Robert K. Hur commended the FBI Baltimore, the Army CID, and the Anne Arundel County Police Department for their work in the investigation, and thanked the U.S. Attorney’s Office for the Western District of Texas and FBI San Antonio for their assistance. Mr. Hur also thanked Assistant U.S. Attorneys James G. Warwick and Kenneth S. Clark, who are prosecuting the case.
Lockport Man Sentenced for His Role in Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Thompson, 61, of Lockport, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of a mixture or substance containing fentanyl, was sentenced to serve 72 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who handled the case, stated that between June 2013 and September 2015, the defendant conspired with others to distribute fentanyl, heroin, and cocaine.
On February 13, 2015, the Niagara County Drug Task Force conducted a controlled buy at Thompson’s residence on Elmwood Avenue. The drug sold by the defendant tested positive for fentanyl. On March 4, 2015, the task force conducted a second controlled buy at Thompson’s residence. The drug sold by the defendant during the second buy tested positive for heroin.
On March 10, 2015, a New York State search warrant was executed at Thompson’s residence. Law enforcement officers recovered approximately 88 grams of fentanyl, 60 grams of heroin, and 17 grams of crack cocaine. A digital scale, baggies, and $1,955.00 in cash were also seized.
During the course of the conspiracy, the defendant distributed various types of drugs to as many as 10 customers daily.
Thompson was one of 17 defendants indicted in August of 2016 for his role in a drug trafficking organization that utilized contacts and sources of supply from Mexico, California, and elsewhere. The organization trafficked thousands of kilograms of illegal narcotics, including heroin, fentanyl, and cocaine throughout the United States, including Lockport, Niagara Falls, and Buffalo. A total of seven defendants have been convicted.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.
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Lexington Man Sentenced to 70 Months in Federal Prison After Pleading to Firearm and Ammunition ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Brandon Shane Kolesar, age 30, of Lexington, was sentenced in federal court to 70 months imprisonment, to be followed by 3 years of supervised release. Kolesar plead guilty in May to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Senior United States District Judge Cameron McGowan Currie, of Columbia, imposed the sentence.
Evidence presented in court established that on the evening of March 29, 2018, deputies with the Lexington County Sheriff’s Department responded to a call about someone breaking into cars. Upon arriving at the scene, witnesses said they observed a man, later identified as Kolesar, attempting to get into a vehicle. When confronted by the men, Kolesar presented a handgun and threatened to “blow their brains out”. Deputies searched the area and found Kolesar on a porch of a residence. As deputies approached, Kolesar ran and a .380 caliber handgun fell from his waistband. Deputies recovered the firearm and later apprehended Kolesar through the use of a K-9. A search incident to arrest also revealed approximately 25 grams of marijuana on Kolesar. Kolesar was arrested on state charges and thereafter, a federal arrest warrant and complaint was issued.
Kolesar is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions, which include convictions for burglary 2nd degree (three separate counts)(2006), ill treatment of animals, where he shot and killed a homeowner’s dog during a burglary of a dwelling (2006), pointing and presenting a firearm (2014), and assault and battery 2nd degree (2014). At the time of the current offense, Kolesar was on state probation, stemming from a September 2017 state conviction for unlawful carrying of a firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lexington County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Leaders in St. Mary’s County Cocaine Distribution Conspiracy Each Sentenced to 11 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Joseph Darren Brooks, age 42, of California, Maryland, and Marvin Leon Young, age 42, of Lexington Park, Maryland, each to 11 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute powder and crack cocaine. Brooks was also convicted of being a felon in possession of a firearm. Judge Hazel sentenced co-conspirator Brandon Darnell Bowman, age 32, of Great Mills, to 86 months in prison, followed by three years of supervised release. Brooks and Young were sentenced on September 5th and 6th respectively, and Bowman was sentenced today.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to Young’s plea agreement and information presented to the Court, from at least February 2015 through December 2016, Brooks and Young conspired with others, including Darryl Michael Franklin and Brandon Darnell Bowman, to distribute cocaine and crack cocaine primarily in St. Mary’s County. During the course of the conspiracy, Young and Brooks were business partners and Franklin was their source of supply for cocaine. Young would typically acquire kilograms of cocaine from Franklin, which he would split with Brooks. Brooks sold smaller distribution quantities of cocaine to other members of the conspiracy and to his own customers. On occasion, Brooks would cook the powder cocaine into crack cocaine and distribute the crack cocaine. The conspirators used Bowman’s residence as a stash house and to cook the powder cocaine into crack.
For example, on November 2, 2016, Young, acting on behalf of himself and Brooks, arranged to purchase two kilograms of cocaine from Franklin. Prior to meeting Franklin, Young picked up cash from Brooks at Bowman’s house. Young met Franklin to deliver the cash and received the cocaine in return. Young dropped off one kilogram of cocaine to Brooks at the home of another conspirator and retained one kilogram to sell to his own customers. Later that day, Brooks informed Young that he had already sold a good portion of his kilogram of cocaine. Between October 5 and November 2, 2016, Young and Brooks purchased at least six kilograms of cocaine from Franklin.
On December 15, 2016, law enforcement executed search warrants at the homes of Brooks, Young, Bowman and other conspirators. At Brooks’ home they recovered a loaded .45-caliber semi-automatic handgun, three .50-caliber rifles, a shotgun, and a variety of ammunition. Brooks, who was not home at the time of the search, was prohibited from possessing firearms or ammunition as a result of a previous felony convictions, including a previous conviction in St. Mary’s County for drug distribution.
When officers searched Bowman’s residence in Great Mills, Maryland, they located Brooks in the living room. From Bowman’s residence, law enforcement recovered a total of 228 grams of cocaine, drug distribution paraphernalia, $11,490 in cash hidden in a speaker, and $2,165 in cash from Brooks. From the search of Young’s residence, law enforcement recovered $5,743 in cash and three cell phones. The cash represented proceeds of their drug dealing.
Based upon the length of the drug trafficking conspiracy, recorded telephone conversations, surveillance, and information provided by others, the quantity of cocaine involved in the offense and foreseeable to Young and Brooks was between 15 and 40 kilograms of cocaine.
Darryl Michael Franklin, age 44, of Waldorf, Maryland, also pleaded guilty and was sentenced to 20 years in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the DEA, the St. Mary’s County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Gregory Bernstein, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Leader of Major Drug Trafficking Conspiracy Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 20 years in prison, as part of a coordinated law enforcement takedown codenamed Operation Tin Panda, that to date has resulted in 39 defendants convicted on federal firearms and drug charges.
According to court documents, Rashourn Niles, 37, pleaded guilty on April 17 to conspiring to distribute 280 grams or more of cocaine base, five kilograms or more of cocaine, and 100 grams or more of heroin. He was the main source of cocaine supply for Tarvell Vandiver, who is his stepson and the regional leader of the Imperial Gangsta Bloods. He taught Vandiver how to manufacture “crack” cocaine from the cocaine, and he also put Vandiver in contact with heroin distributors. At all times, Niles knew that Vandiver distributed the controlled substances while armed.
Niles also regularly sold large quantities of cocaine and heroin to other drug distributors operating within the Eastern District of Virginia and elsewhere. During the conspiracy, Niles stored controlled substances and drug proceeds at multiple residences, and used the proceeds from his drug distribution to purchase luxury vehicles, including a Bentley, Range Rover, Jaguar, and BMW X6, and expensive jewelry, including Rolexes and a necklace worth $45,000.
Niles was arrested in December 2017, when over 300 law enforcement agents and officers executed a coordinated takedown as part of Operation Tin Panda. The Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division and the FBI’s Washington Field Office Safe Streets Task Force began Operation Tin Panda in the spring of 2017. In collaboration with federal and local law enforcement, investigators and prosecutors began jointly investigating Blood gangs and other drug distributors involved in violent crime and other criminal activity in northern Virginia. Multiple criminal acts were tied to gang and drug activity, including homicide, malicious wounding, robbery, shootings, and drug and firearms distribution. During the course of this investigation, more than 40 individuals throughout Virginia, Maryland, the District of Columbia, and California, who were illegally selling firearms and controlled substances or were involved in other criminal acts, were arrested on federal firearms and drug charges.
Operation Tin Panda also resulted in the seizure of over 95 firearms, $150,000 in cash, nine vehicles with an estimated value of over $300,000, and approximately 3 pounds of cocaine base, 10 pounds of cocaine, 7 pounds of crystal methamphetamine, 5 pounds of heroin, 4 pounds of ecstasy, 227 pounds of marijuana, and 79 pounds of THC.
Operation Tin Panda was led by the ATF’s Washington Field Division and the FBI’s Washington Field Office Safe Streets Task Force. The DEA, U.S. Marshals Service, U.S. Postal Inspection Service, the Prince William County Police Department, Fairfax County Sheriff’s Office, Fairfax County Police Department, Alexandria Police Department, Stafford County Sherriff’s Office, Spotsylvania County Sheriff’s Office, King George County Sheriff’s Office, Caroline County Sheriff’s Office, Cumberland County Sheriff’s Office, Prince George’s County, Maryland Police Department, and the Washington, D.C. Metropolitan Police Department, provided significant assistance during the operation.
Operation Tin Panda was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
For more information, please see the table below, which lists the name, age, hometown, respective charge(s), and resulting or potential sentence for each federal defendant convicted as part of Operation Tin Panda.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Carina A. Cuellar and Colleen E. Garcia prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
Name, Age, City
Conviction(s)
Result
Sade Anglin, 28, Woodbridge
Maintaining a Drug Premises.
Sentenced to 18 months.
Ishmil Hardwick, 25, Woodbridge
Conspiracy to Distribute Fentanyl, Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Sentenced to 78 months.
Rashourn Niles, 37, Woodbridge
Conspiracy to Distribute 280 grams or more of Cocaine Base, 5 kilograms or more of Cocaine, and 100 grams or more of Heroin.
Sentenced to 20 years
Raheem Kelly, 39, Woodbridge
Conspiracy to Distribute 28 grams or more of Cocaine Base.
Faces a mandatory minimum of 5 years and a maximum of 40 years on Sept. 7.
Michael Lederer, 31, Woodbridge
Possession of a Firearm by a Prohibited Person.
Faces a maximum of 10 years on Sept. 21.
Tarvell Vandiver, 29, Woodbridge
Conspiracy to Distribute 280 grams or more of Cocaine Base, 5 kilograms or more of Cocaine, 100 grams or more of Heroin, and Use and Carry of a Firearm During and in Relation to a Drug Trafficking Crime.
Faces 20 years on October 19.
Montreus Peterson, 23, Stafford
Conspiracy to Distribute 280 grams or more of Cocaine Base
Faces a mandatory minimum of 10 years and a maximum of life on Oct. 19.
Tyus Terrell, 22, Woodbridge
Felon in Possession of a Firearm
Faces a maximum of 10 years on Dec. 14.
Jorge Lozada, Jr., 22, Woodbridge
Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Faces a mandatory minimum of 5 years and a maximum of life.
Frederick Preston Gaarsoe Turner, 36, Woodbridge
Conspiracy to Distribute 50 grams or more of Methamphetamine, Possession of Methamphetamine with the Intent to Distribute, two counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Sentenced to 40 years.
Nasiru Carew, 35, Dale City
Conspiracy to distribute 1,000 kilograms or more of Marijuana and THC.
Sentenced to 16 years.
Ja’vell Johnson, 26, Falls Church
Conspiracy to Distribute 100 grams or more of Heroin.
Sentenced to 6 years.
Bassam Hassan Ramadan, 31, Woodbridge
Conspiracy to Distribute 50 grams or more of Methamphetamine, Use and Carry of a Firearm During and in Relation to a Drug Trafficking Crime.
Sentenced to 16 years.
Cory Patterson, 34, Fredericksburg
Conspiracy to Distribute one kilogram or more of Heroin, Use and Carry of a Firearm During and in Relation to Drug Trafficking.
Sentenced to 15 years.
Marcus Andrei Harris, 27, Washington, D.C.
Conspiracy to Distribute 50 grams or more of Methamphetamine, Use and Carry of a Firearm During and in Relation to a Drug Trafficking Crime.
Sentenced to 15 years.
Brandon Edler, 23, Fredericksburg
Conspiracy to Distribute 28 grams or more of Cocaine Base, Felon in Possession of a Firearm.
Sentenced to 12 years.
Cydrick Delrosario, 58, Springfield
Conspiracy to Distribute 50 grams or more of Methamphetamine.
Sentenced to 11 years.
Chennor Bah, 30, Woodbridge
Conspiracy to Distribute 500 grams or more of Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Sentenced to 10 years.
Anthony Lozada, 18, Woodbridge
Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Drug Trafficking Crime.
Sentenced to 10 years.
Devon Byrd, 26, King George
Possession of THC with the Intent to Distribute, and Use and Carry of a Firearm During and in Relation to a Drug Trafficking Crime.
Sentenced to 112 months.
Teodoro Gonzales, 37, Woodbridge
Conspiracy to Distribute 50 grams or more of a Mixture of Methamphetamine, Felon in Possession of a Firearm.
Sentenced to 9 years.
Tayvon Patterson, 24, Elkridge, Maryland
Conspiracy to Distribute Marijuana and THC, Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Sentenced to 90 months.
Jerry McAllister, 42, Laurel, Maryland
Conspiracy to Distribute 100 grams or more of Heroin.
Sentenced to 5 years.
Mark Ketter, 39, Alexandria
Conspiracy to Distribute 100 grams or more of Heroin.
Sentenced to 5 years.
Nathaniel Bruce Cobbold, 27, Woodbridge
Conspiracy to Distribute Marijuana and THC.
Sentenced to 5 years.
Jamar Cox, 30, Hyattsville, Maryland
Use and Carry of Firearm During and in Relation to a Drug Trafficking Crime.
Sentenced to 5 years.
Deion Wright, 25, Alexandria
Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Sentenced to 5 years.
Kelvin Bennett, 27, Washington, D.C.
Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Sentenced to 5 years.
Ezana Demisse, 25, Alexandria
Use and Carry of a Firearm During and in Relation to Drug Trafficking.
Sentenced to 5 years.
Alpha Kamara, 20, Woodbridge
Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Sentenced to 5 years.
Orean Anthony Hayden, 29, Alexandria
Use and Carry of a Firearm During and in Relation to a Drug Trafficking Crime.
Sentenced to 5 years.
Bryan Matthews, 19, Alexandria
Use and Carry of a Firearm During and in Relation to a Drug Trafficking Crime.
Sentenced to 5 years.
Shannon Marie Sisney, 44, Virginia Beach
Conspiracy to Distribute 50 grams or more of Methamphetamine.
Sentenced to 50 months.
Izeah Williams, 31, Woodbridge
Conspiracy to Distribute Marijuana and THC.
Sentenced to 38 months.
Robert Evans, 27, Woodbridge
Conspiracy to Distribute THC.
Sentenced to 30 months.
Tavon Bailey, 27, District Heights, Maryland
Felon in Possession of a Firearm.
Sentenced to 30 months.
Tavon Ferguson, 24, Triangle
Felon in Possession of a Firearm.
Sentenced to 27 months.
Derek Harden, 22, Woodbridge
False Statements During the Purchase of a Firearm.
Sentenced to 18 months.
Kaitlyn McCabe, 19, Woodbridge
False Statements During the Purchase of a Firearm.
Sentenced to 6 months.
Samantha Winter, 22, Culpepper
Possession of a Firearm by a Prohibited Person, False Statements During the Purchase of a Firearm, False Statement to a Licensed Firearms Dealer.
Sentenced to 2 years of probation.
Laurel Man Sentenced to 10 Years in Prison for Drug PossessionRead the Press Release
Hattiesburg, Miss. – Cedric Walker, 30, of Laurel, Mississippi, was sentenced yesterday by U.S. District Judge Keith Starrett, to serve 120 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration. Walker was also ordered to pay a $5,000 fine.
The case was investigated by the Jones County Sheriff’s Department, Lamar County Sheriff’s Department, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Larose Man Pleads Guilty to Violation of the Federal Gun Control ActRead the Press Release
TODD DELAUNE age 53, a resident of Larose, Louisiana, pleaded guilty yesterday to a one-count indictment before the Honorable Carl J. Barbier for violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court documents, DELAUNE was arrested by detectives of the Lafourche Parish Sheriff’s Office’s on February 12, 2018 for simple assault, telecommunications harassment and threatening a public official. Subsequent to his arrest, a search warrant was executed at DELAUNE’s residence and the following ammunition was discovered and seized: one box of Winchester 12 gauge shotgun shells (8 in box); two full boxes of Winchester 12 gauge shotgun shells (50 rounds), one full box of Federal 12 gauge shotgun shells (25); one hundred and eighty .22 caliber Remington bullets; one full box of Eley .22 caliber bullets (50 rounds); one Promag 50 round .22 caliber magazine; two Eagle 35 round .22 caliber magazines. A review of DELAUNE’s criminal history revealed that he pled guilty on August 7, 2013 to simple battery of his ex-wife (a misdemeanor crime of domestic violence), which prohibits him from possessing firearms and ammunition.
If convicted, DELAUNE faces a ten year term of imprisonment, to be followed by a three year term of supervised release, and a fine of up to $250,000. DELAUNE will be sentenced on November 29, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the ride of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Michael E. McMahon.
Kansas Man Arrested and Charged with Murdering Girlfriend on Board Cruise ShipRead the Press Release
A Topeka, Kansas man made his initial appearance Thursday on an indictment charging him with murdering a woman on board a cruise ship in January 2018. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Stephen R. McAllister of the District of Kansas and Special Agent in Charge Charles P. Spencer of the FBI Jacksonville, Florida Field Office made the announcement.
Eric Newman, 53, was charged with murder in the second degree. The initial appearance was held before U.S. Magistrate Judge Ross A. Walters.
The indictment alleges that on or about Jan. 19, Newman was travelling on board the Carnival Elation, a foreign vessel registered in Panama, on a voyage with both a scheduled departure from and arrival in Jacksonville, Florida. During the voyage, Newman is alleged to have killed Tamara Tucker, 50, of Lawson, Missouri.
A detention hearing is scheduled for Sept. 12.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI Jacksonville Field Office with the assistance of the FBI Topeka Field Office. The case is being prosecuted by Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Christine E. Kenney of the District of Kansas.
Illegal Alien Sentenced for ATM Skimmer FraudRead the Press Release
Gulfport, Miss. – Claudio Fontes Ferreira a/k/a Michael Camargo Stanford, 31, an illegal alien from Brazil, was sentenced today by U.S. District Judge Sul Ozerden to serve 39 months in federal prison, followed by 3 years of supervised release, for fraud in connection with access devices, announced U.S. Attorney Mike Hurst. Ferreira was also ordered to pay $46,265 in restitution to a victim.
On December 7, 2017, D’Iberville police officers saw a Lincoln Navigator leaving the Keesler Federal Credit Union Automated Teller Machine ("ATM") on Automall Parkway in D’Iberville, Mississippi. This automobile fit the description of one being used the night before in placing access devices, "skimmers," on an ATM in Gulfport. The officers stopped the vehicle and identified Ferreira and two co-defendants as the occupants. In the Navigator officers found glue, black electrical and double-sided tape, box cutters, credit cards in alias names, a card with sand paper attached to it, other credit cards, gift cards, and a micro SD card. Officers also found the ATM with a skimmer on it and altered with the privacy shield cut off so that a camera placed above could see the ATM key pad as customers enter their account PIN numbers.
Co-defendant Taise Braganca Moscon, 26, also an illegal alien from Brazil, pleaded guilty and was sentenced on June 11, 2018, to serve 13 months in federal prison for possession of device-making equipment. Co-defendant Rodrigo D. Ferrareze, 37, of Delray Beach, Florida, pleaded guilty and was sentenced on June 18, 2018, to serve 10 months in federal prison for possession of device-making equipment.
This case was investigated by Homeland Security Investigations and the D’Iberville Police Department. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Haughton man sentenced to 10 years in prison for distribution of methamphetamine obtained in DallasRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a Haughton man was sentenced to 120 months in prison for distribution of methamphetamine, which he obtained in Dallas.
Jason Rich, 47, of Haughton, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to the May 15, 2018 guilty plea, a Louisiana State Police trooper stopped Rich’s vehicle May 3, 2018 near the intersection of Interstate 220 and Louisiana Highway 80. The trooper searched the vehicle and found a semi-automatic handgun, 141.3 grams of methamphetamine, 36.5 grams of the marijuana and three blue and white capsules containing approximately 31.1 grams of methamphetamine. Rich said he knew about the firearm and had purchased 4 ounces of methamphetamine from two different sources in the Dallas area.
The DEA and the DEA task force, which consists of state and local agencies, including the Louisiana State Police and Caddo Parish Sheriff’s Office, investigated the case. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Grand Jury Indicts "Joe Exotic" for Murder-For-HireRead the Press Release
OKLAHOMA CITY – JOSEPH MALDONADO-PASSAGE, also known as Joseph Allen Maldonado, Joseph Allen Schreibvogel, and "Joe Exotic," 55, formerly of Wynnewood, Oklahoma, has been indicted on two counts of hiring a person to commit murder.
On September 5, 2018, a federal grand jury returned an indictment that accuses Maldonado-Passage of hiring an unnamed person in November 2017 to murder "Jane Doe" in Florida. According to the indictment, Maldonado-Passage gave the unnamed person $3,000 to travel from Oklahoma to South Carolina and then to Florida to carry out the murder. He allegedly agreed to pay thousands more after the deed. The indictment alleges Maldonado-Passage caused the person to travel to Dallas to get fake identification for use in the plot. According to the indictment, the person traveled from Oklahoma to South Carolina on November 26, 2017.
In a second count, the indictment alleges that beginning in July 2016, Maldonado-Passage repeatedly asked a different unnamed person to find someone to murder Jane Doe in exchange for money. The second person put Maldonado-Passage in contact with an undercover FBI agent. Maldonado-Passage met with the undercover agent on December 8, 2017, to discuss details of murdering Jane Doe.
Jane Doe did not suffer any physical harm.
The U.S. Marshals Service arrested Maldonado-Passage today in Gulf Breeze, Florida. He will make his initial appearance before a U.S. Magistrate Judge today in the Pensacola Division of the Northern District of Florida, followed by further proceedings in the Western District of Oklahoma.
If Maldonado-Passage is found guilty of murder-for-hire, he could be imprisoned on each count up to ten years. He would also be subject to up to three years of supervised release and a fine of up to $250,000 per count.
This case is the result of an investigation by the U.S. Fish and Wildlife Service Office of Law Enforcement and the FBI, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Amanda Green and Charles W. Brown are prosecuting the case.
The public is reminded that these charges are merely allegations and that Maldonado-Passage is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Gettysburg Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Gettysburg, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 4, 2018, by U.S. District Judge Roberto A. Lange.
Christopher Arpan, age 52, was sentenced to 30 months in federal prison, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Arpan was indicted by a federal grand jury on November 14, 2017. He pled guilty on June 12, 2018.
The conviction stems from an incident that occurred on August 24, 2017. Cheyenne River Sioux Tribe law enforcement was dispatched to a house in Eagle Butte, South Dakota, for a report of an individual bleeding from a head wound. Arpan had assaulted the individual by beating him about his head with a wooden cane; the beating caused serious bodily harm to the individual including 5 wounds to his head that required multiple staples to close.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Arpan was immediately turned over to the custody of the U.S. Marshals Service.
Gary Hirst Sentenced to 8 Years in Prison for Defrauding Tribal Entity and Pension Funds of Tens of Millions of DollarsRead the Press Release
Robert Khuzami, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that GARY HIRST was sentenced today by U.S. District Judge Ronnie Abrams to 8 years imprisonment for defrauding a Native American tribal entity and numerous pension fund investors of tens of millions of dollars in connection with the issuance of bonds by the tribal entity. HIRST pled guilty May 15, 2018, to conspiracy to commit securities fraud, securities fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud before U.S. Magistrate Judge Barbara Moses.
Attorney for the United States Robert Khuzami said: “This complex and brazen securities fraud scheme lined the pockets of Gary Hirst and his co-defendants but left the Native American tribal entity, the Wakpamni Lake Community Corporation $60 million in debt. Hirst, who is already in prison for a separate securities scheme prosecuted by this Office, now faces additional time behind bars for this criminal conspiracy.”
According to the allegations contained in the Indictment filed against HIRST and statements made in related court filings and proceedings, including the trial of co-defendants John Galanis, Devon Archer, and Bevan Cooney:
From March 2014 through April 2016, HIRST, Jason Galanis, John Galanis, Devon Archer, Bevan Cooney, Michelle Morton, and Hugh Dunkerley, engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by HIRST, Morton, and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
The WLCC was convinced to issue the Tribal Bonds through false and fraudulent representations by John Galanis. Simultaneously, Jason Galanis, with the backing of Archer and Cooney, worked to acquire Hughes Capital Management (“Hughes”), a registered investment adviser. HIRST and Morton were installed as Hughes’s chief investment officer and chief executive officer, respectively. Within weeks of taking control of Hughes, HIRST and Morton placed the entire $28 million first series of Tribal Bonds with Hughes clients but failed to disclose material facts about the Tribal Bonds, including that the Tribal Bonds fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients. Indeed, HIRST himself signed the trade tickets to purchase the bonds after other employees of Hughes refused to do so. In addition, Hughes’s clients were not told about substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
The defendants and their co-conspirators then misappropriated the proceeds of the first Tribal Bond issuance. Specifically, although the Tribal Bonds were supposed to be invested in an annuity, the proceeds were deposited into an account opened by HIRST and over which both HIRST and Dunkerley had signatory authority. HIRST and Dunkerley, at the direction of Jason Galanis, then transferred significant amounts of the bond proceeds from that account to support the defendants’ business and personal interests. Jason Galanis, for example, used a portion of the proceeds of the first Tribal Bond issuance to finance the purchase of a $10 million luxury apartment in Tribeca. John Galanis, similarly, secretly received $2.35 million in proceeds of the first bond issuance, which he spent on a variety of personal expenses and luxury items, including cars, jewelry, and hotel expenses.
In addition, after John Galanis induced the WLCC to issue a second round of Tribal Bonds, Archer and Cooney used $20 million of bond proceeds from the first issuance to buy the entirety of the second issuance. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase. The bonds purchased by Archer and Cooney were then used to meet net capital requirements at two broker dealers in which Archer and Cooney had interests. Cooney also obtained a $1.2 million loan based on his purported ownership of the bonds, which he subsequently failed to repay. In addition, millions of dollars in bond proceeds from the bond issuances were used to finance the acquisition of companies that the defendants and their co-conspirators acquired as part of a strategy to build a financial conglomerate.
In the spring of 2015, John Galanis induced the WLCC to issue an additional $16 million worth of Tribal Bonds. Simultaneously, Jason Galanis, Archer, and others – in consultation with HIRST – purchased a second investment adviser, Atlantic Asset Management (“Atlantic”), and installed Morton as the chief executive officer. Within days of obtaining control of Atlantic, Morton placed the entirety of the $16 million Tribal Bond with an Atlantic client, without the client’s consent and without disclosing the fact that the Tribal Bonds were outside the client’s investment parameters and that numerous conflicts of interest existed. The proceeds of the $16 million issuance were again not invested in an annuity as promised, but instead were diverted, among other things, to finance the defendants’ acquisition of another company in furtherance of their plan to build a financial conglomerate and to make payments to one of the broker dealers in which Archer and Cooney had interests. HIRST also directed that significant portions of the bond proceeds be funneled through other secret accounts and used to purchase significant portions of a technology stock’s IPO – which was itself secretly controlled by several of the defendants.
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In addition to the prison term, GARY HIRST, 66, was sentenced to 3 years of supervised release. HIRST was also ordered to forfeit $1.3 million and to make restitution in the amount of $43,785,176.
Jason Galanis, who pled guilty to conspiracy to commit securities fraud, securities fraud, and investment adviser fraud, was sentenced to a term of 173 months in prison on August 11, 2017. Michelle Morton, who pled guilty to conspiracy to commit securities fraud and investment adviser fraud, is scheduled to be sentenced on November 30, 2018. John Galanis, who was convicted at trial of conspiracy to commit securities fraud and securities fraud, is scheduled to be sentenced on November 2, 2018. Devon Archer and Bevan Cooney, who were convicted at trial of conspiracy to commit securities fraud and securities fraud, are scheduled to be sentenced on November 9, 2018. Hugh Dunkerley, who pled guilty to conspiracy to commit securities fraud, two counts of securities fraud, bankruptcy fraud, and falsification of records with the intent to obstruct a government investigation, is scheduled to be sentenced on March 8, 2019.
This conviction represents HIRST’s second conviction in this District in a little more than a year. On August 3, 2017, following his conviction at trial, HIRST was sentenced by U.S. District Judge P. Kevin Castel to 78 months in prison in connection with his participation in a scheme to manipulate the market for Gerova Financial Group, Ltd., a publicly traded company listed on the New York Stock Exchange, and to defraud the shareholders of that company.
Mr. Khuzami praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Brendan F. Quigley, and Negar Tekeei are in charge of the prosecution.
Fugitive Lawyer Involved in Largest Social Security Fraud Scheme Sentenced to 15 Years in Prison for His Escape and Related CrimesRead the Press Release
A former fugitive and social security disability lawyer was sentenced to 15 years in prison today for his role in retaliating against an informant and fleeing from the United States. The sentence is to run consecutive to the 12 years in prison previously imposed for his role in the underlying scheme to defraud the Social Security Administration (SSA) of more than $550 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (IRS-CI) Cincinnati Ohio Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 58, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Conn to pay $72,574,609 in restitution. On June 4, Conn was convicted of one count of conspiracy to defraud the United States, one count of conspiracy to escape, and one count of conspiracy to retaliate against an informant. Judge Reeves further ordered that the 15-year term of imprisonment imposed run consecutive to the 12-year term of imprisonment the Court imposed on July 12, 2017, for convictions of paying illegal gratuities to a Social Security Administrative Law Judge and theft of government money. In total, for his role in the largest fraud scheme in the history of the Social Security program, Conn was sentenced to serve 27 years in prison.
“After orchestrating a massive $550 million social security fraud, Eric Conn tried to escape justice by fleeing to Honduras,” said Assistant Attorney General Benczkowski. “But thanks to the tremendous work of U.S. law enforcement, not only was Conn’s fraud discovered and prosecuted, he was brought back to the United States to answer for his crimes. This case should serve as a strong warning to those who think they can steal from our taxpayer funded programs and escape liability: our law enforcement partners will find you and you will be brought to justice.”
“Mr. Conn directed a scheme that defrauded millions of dollars from Social Security and affected many people in Kentucky and West Virginia,” said SSA-OIG Special Agent in Charge McGill. “Despite his best efforts to escape justice for his actions, Mr. Conn has finally been held accountable with today’s significant sentencing. The SSA-OIG thanks all of our law enforcement partners for their assistance during this investigation, and we remain committed to pursuing Social Security fraud and improving disability program integrity.”
“Conn’s sentencing brings closure to the promise the FBI made that we would not rest until Conn was held accountable for the lives he devastated and the trust he betrayed,” said FBI Special Agent in Charge Hess.
“Theft from American taxpayers in any capacity is a serious crime,” said IRS-CI Special Agent in Charge Ryan L. Korner. “Eric Conn’s actions were particularly egregious, as he victimized those who are most vulnerable and then made a cowardly attempt to escape punishment. Thanks to the coordinated efforts of our law enforcement partners and their commitment to seeking justice for all Americans, Conn was made to face the consequences of his actions.”
“When individuals are approved for certain Social Security and SSI benefits, they become entitled to Medicare or Medicaid,” said HHS-OIG Special Agent in Charge Jackson. “As a result, a large portion of Conn’s fraudulent scheme drained federal health care plans and cheated needy patients out of the limited dollars available for these vital taxpayer-funded programs.”
According to admissions made as part of Conn’s June 2018 plea, from October 2004 to December 2017, Conn participated in a scheme with former SSA administrative law judge David Black Daugherty, multiple doctors, including clinical psychologist Alfred Bradley Adkins, and others to submit thousands of falsified medical documents to the SSA to fraudulently obtain disability benefits totaling more than $550 million for thousands of individuals. According to the admissions, upon a former SSA employee discovering and providing information about the scheme to federal agents, Conn and former SSA administrative law judge Charlie Paul Andrus conspired and acted to have the former SSA employee terminated in an effort to discredit the employee. Finally, Conn admitted that after pleading guilty in March 2017, and prior to being sentenced on June 2, 2017, he fled the country with the help of Curtis Lee Wyatt by severing the electronic monitoring device from his ankle and fleeing across the Mexican border.
Conn was originally charged in April 2016, along with Daugherty and Adkins, in an 18-count indictment with conspiracy to commit mail and wire fraud and other related offenses in connection with the disability fraud scheme. Conn subsequently pleaded guilty on March 24, 2017, to a two-count information charging him with theft of government money and paying illegal gratuities, and, after fleeing, he was sentenced in absentia on July 14, 2017 to 12 years in prison on those charges. After his flight from the United States, Conn was charged, along with Wyatt, in September 2017, in a seven-count indictment with conspiracy to escape, escape and other related offenses. On Dec. 5, 2017, Conn was returned to the United States from Honduras after being apprehended by Honduran authorities.
Andrus pleaded guilty in June 2016 to a one-count information charging him with conspiracy to retaliate against an informant, and was sentenced Aug. 7, 2017 to six months in prison. Daugherty pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on Aug. 25, 2017, to four years in prison. Adkins was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements, and was sentenced on Sept. 22, 2017, to 25 years in prison. Wyatt pleaded guilty in March 2018, and, on June 29, 2018 was sentenced to seven months in prison.
The case was investigated by the SSA-OIG, FBI, IRS-CI and HHS-OIG. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case, with previous co-counsel including Assistant U.S. Attorneys Elizabeth G. Wright of the District of Maryland and Trey Alford of the Western District of Missouri as well as Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Four Walton County Residents Sentenced in Continued Dismantling of Monroe Drug and Gun ConspiracyRead the Press Release
ATHENS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that four defendants were sentenced on September 5, 2018, by the Honorable C. Ashley Royal in Athens for their roles in an illegal drug and firearms distribution conspiracy.
In approximately May 2015, Monroe Police Department (MPD) officers began investigating drugs and gang activities in and around Davis Street and Lacy Street in Monroe, Georgia. Members of the Monroe Police Department Drug Unit partnered with the Federal Bureau of Investigation to tackle the increased activity by Gangster Disciples gang members in the area. Ultimately, numerous co-conspirators were identified and indicted in the Middle District of Georgia on a variety of drug and firearm distribution charges.
The following four (4) defendants were sentenced on September 5, 2018:
• Lachievious Smith a/k/a “Chief,” “Cheese,” “Chiev,” age 30, of Monroe , Georgia
Guilty plea entered: June 14, 2018
Offense: Distribution of Crack Cocaine
Sentence: 200 months imprisonment
• Chauncey Brantley a/k/a “Murder,” age 23, of Monroe, Georgia
Guilty plea entered: June 13, 2018
Offenses: Distribution of Methamphetamine;
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Sentence: 120 months imprisonment
• Kendarious Gaither a/k/a “KD,” age 22, of Monroe, Georgia
Guilty plea entered: June 1, 2018
Offense: Possession of a Firearm in Relation to a Drug Trafficking Crime
Sentence: 60 months imprisonment
• Emmanuel Smith, a/k/a “Man-Man,” age 32, of Monroe, Georgia
Guilty plea entered: June 1, 2018
Offense: Distribution of Crack Cocaine
Sentence: 30 months imprisonment
The following defendants were previously sentenced:
• Anthony Smith, a/k/a “Ant,” “Unc,” of Monroe, Georgia
Guilty plea entered: January 3, 2018
Offense: Distribution of Crack Cocaine
Sentence date: April 17, 2018
Sentence: 34 months imprisonment
• Brittany Porter, of Monroe, Georgia
Guilty plea entered: January 3, 2018
Offense: Distribution of Crack Cocaine
Sentence date: April 17, 2018
Sentence: 10 months imprisonment
• Krysty Davis-Smith, of Monroe, Georgia
Guilty plea entered: November 16, 2017
Offense: Distribution of Crack Cocaine
Sentence date: February 4, 2018
Sentence: 3 years of probation
Another co-defendant, James Anthony Johnson, entered a guilty plea on June 4, 2018, to Distribution of Crack Cocaine Mr. Johnson’s sentencing is scheduled for October 3, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
“Organizations that attempt to control areas of our community so they can deal drugs and sell guns with no regard for the safety of others will not be tolerated,” said United States Attorney Charles E. Peeler. “I want to thank the FBI and the Monroe Police Department for their hard work in this investigation.”
This case was investigated by the FBI and the Monroe Police Department. Assistant U.S. Attorney Tamara Jarrett handled the prosecution of the defendants.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or [email protected].
Four Chinese State-Owned Industrial Companies Arraigned in Economic Espionage ConspiracyRead the Press Release
OAKLAND – Four state-owned Chinese companies were arraigned on a Third Superseding Indictment charging each of the companies and two of their officers with conspiring to commit economic espionage and related crimes, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The companies were arraigned yesterday before U.S. Magistrate Judge Donna M. Ryu on charges that the defendants conspired and attempted to engage in economic espionage by seeking to acquire misappropriated trade secrets for the production technology for chloride-route titanium dioxide (TiO2) from E.I. du Pont de Nemours & Company (DuPont).
According to the indictment that was filed January 5, 2016, between 1998 and 2011, Pangang Group Company, Ltd. (also known as Panzhihua Iron and Steel (Group) Co., Ltd.) allegedly conspired with Chinese nationals Hou Shengdong and Dong Yingjie as well as three of the company’s subsidiaries and others to acquire stolen or misappropriated trade secrets. The defendant subsidiaries companies are:
- Pangang Group Steel Vanadium & Titanium Company, Ltd.;
- Pangang Group Titanium Industry Company Ltd.; and
- Pangang Group International Economic & Trading Company.
The trade secrets relate to TiO2 technology from DuPont. DuPont had developed the technology and controlled a significant amount of the world’s TiO2 sales. The defendants are alleged to have obtained confidential trade secret information including photographs related to TiO2 plant technologies and facilities. Further, the defendants are alleged to have paid an Oakland company at least $27,000,000 between 2006 and 2011 for assistance with TiO2 technology, including obtaining DuPont trade secrets. The defendants also allegedly attempted, between 2008 and 2011, to commit economic espionage related to DuPont’s TiO2 processes.
In sum, the indictment charges the four companies and two officers with one count of conspiracy to commit economic espionage, in violation of 18 U.S.C. § 1831(a)(5), and one count of attempted economic espionage, in violation of 18 U.S.C. §§ 1831(a)(1), (2), (3), and (4). The indictment also seeks forfeiture of any property used in the offenses or derived from the commission of the offenses.
The four companies appeared before Magistrate Judge Ryu through an attorney and pleaded not guilty to all charges.
Initial appearances are scheduled for October 2, 2018, in Oakland, before the Honorable Jeffrey S. White, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant company faces a maximum sentence five years of probation and a fine of $10,000,000 for each count of conviction. Hou and Dong face 15 years of imprisonment, a $500,000 fine, and a maximum of 3 years of supervised release for each count in the indictment. Restitution, if appropriate, may also be ordered. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s Office. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former World Boxing Champion Sentenced in Manhattan Federal Court to 10 Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that AVTANDIL KHURTSIDZE, a former world boxing champion and the chief enforcer for Razhden Shulaya, was sentenced to 10 years in prison by United States District Judge Katherine B. Forrest, following KHURTSIDZE’s conviction in June on charges of racketeering and fraud conspiracy.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Avtandil Khurtsidze, a former middleweight boxing champion and heavyweight enforcer for the Shulaya Enterprise – a massive ‘elite’ criminal enterprise of the former Soviet Union – was convicted of intimidating and punishing associates of the organization. Thanks to our dedicated law enforcement partners around the globe, Khurtzide’s reign of extortion and violence has been halted, as he is now sentenced to 10 years in federal prison.”
According to the Indictments filed in Manhattan federal court, previous court filings, and statements made at public court proceedings:
The Shulaya Enterprise was an organized criminal group operating under the direction and protection of Razhden Shulaya, a/k/a “Brother,” a/k/a “Roma,” a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals. As a vor, Shulaya had substantial influence in the criminal underworld and offered assistance to and protection of the members and associates of the Shulaya Enterprise. Those members and associates, and Shulaya himself, engaged in widespread criminal activities, including acts of violence, extortion, the operation of illegal gambling businesses, fraud on various casinos, identity theft, credit card frauds, trafficking in large quantities of stolen goods, money laundering through a fraudulently established vodka import-export company, payment of bribes to local law enforcement officers, and the operation of a Brooklyn-based brothel.
The Shulaya Enterprise operated through groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks. While many of these crews were based in New York City, the Shulaya Enterprise had operations in various locations throughout the United States (including in New Jersey, Pennsylvania, Florida, and Nevada) and abroad. Most members and associates of the Shulaya Enterprise were born in the former Soviet Union and many maintained substantial ties to Georgia, Ukraine, and the Russian Federation, including regular travel to those countries, communication with associates in those countries, and the transfer of criminal proceeds to individuals in those countries.
AVTANDIL KHURTSIDZE, formerly a middleweight boxing champion, acted as Shulaya’s chief enforcer and, as such, engaged in multiple acts of extortion and violence. KHURTSIDZE was captured on video twice assaulting others in service of the Shulaya Enterprise, participated in recorded acts of extortion of gambling debts, and planned additional acts of violence with Shulaya targeting associates of the Shulaya Enterprise whom KHURTSIDZE and Shulaya perceived as having disrespected Shulaya’s status as a vor.
KHURTSIDZE also participated in a scheme to defraud casinos by targeting particular models of electronic slot machines using a complicated algorithm designed to predict the behavior of those machines. Shulaya and other members of the Enterprise obtained the technology used to commit that fraud through violence, including through the 2014 kidnapping of a software engineer in Las Vegas. KHURTSIDZE, working at Shulaya’s direction, then assisted in refining that technology by training lower-level members of the Shulaya Enterprise to execute this casino scam using smartphones and software developed by the Shulaya Enterprise.
Following a two-week trial before the Honorable Katherine B. Forrest, KHURTSIDZE was found guilty of one count of racketeering conspiracy and one count of wire fraud conspiracy.
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In addition to the prison term, KHURTSIDZE, 38, of Kutaisi, Republic of Georgia, was sentenced to two years of supervised release
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation and its Eurasian Organized Crime Squad, as well as U.S. Customs and Border Protection, and the New York City Police Department for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams, Andrew Thomas, and Andrew Chan are in charge of the case.
Former Pasadena Police Lieutenant Agrees to Plead Guilty to Illegally Trafficking ‘Off Roster’ Guns and Lying on ATF FormRead the Press Release
LOS ANGELES – A Sierra Madre man who until earlier this year served as a lieutenant in the Pasadena Police Department has agreed to plead guilty to two federal felony offenses related to the illegal sale of more than 100 firearms over the course of three years.
Vasken Kenneth Gourdikian, 48, who resigned from the Pasadena Police Department in March after a 22-year career, has signed a plea agreement that was filed this morning in United States District Court.
Gourdikian agreed to plead guilty to engaging in the business of dealing in firearms without a license, and making a false statement during the purchase of a firearm.
Gourdikian has agreed to appear before United States District Judge Stephen V. Wilson on September 20 to formally enter guilty pleas to the two felony offenses.
From March 2014 through February 2017, Gourdikian sold at least 108 firearms without a license. Gourdikian used his official status as a police officer to purchase firearms that were not available to the general public, and then sold restricted firearms, known as “off roster” firearms, through third-party transfers to members of the public, Gourdkian would often highlight the unique status of “off roster” firearms in order to solicit a buyer’s interest and to generate higher sale prices. “Many of the firearms that defendant sold were “off roster” firearms, that is, firearms that defendant’s non-law enforcement customers could not have purchased directly from a licensed firearms dealer,” according to the plea agreement.
While police officers were not prohibited from selling “off roster” firearms to members of the general public, Gourdikian “made a business of dealing firearms without a license, in part, by abusing exemptions made available to him under California law as a sworn peace officer,” he admitted in the plea agreement.
The false statement offense relates to an ATF “re-certification” form Gourdikian signed in 2014 when he took possession of a handgun. Gourdikian admitted in the plea agreement that he “misrepresented that he was the actual buyer of a firearm when, in fact, and as defendant then well knew, he was purchasing the firearm for another individual.” Gourdikian admitted that he re-sold the gun to another person on the same day he acquired it from the gun dealer.
Gourdikain further admitted that he “capitalized on his peace officer status” that allowed him to circumvent the usual 10-day waiting period and enabled him to purchase more than one handgun in a 30-day period.
“Mr. Gourdikian used his positon as a law enforcement officer to purchase firearms generally not available to the public so he could turn around and illegally sell them for profit,” said United States Attorney Nick Hanna. “His actions clearly violated federal law and introduced unauthorized firearms into the community. By his participating in these illegal acts, Gourdikian compromised public safety and violated the public’s trust.”
“It is ATF’s duty and obligation to conduct criminal investigations whenever presented with credible evidence of violations of federal firearms laws,” said ATF Los Angeles Field Division (LAFD) Special Agent in Charge Bill McMullan. “Through analysis conducted by ATF’s Crime Gun Intelligence Center, it was discovered that one of the firearms sold by Gourdikian was recovered at a crime scene two months after its purchase, increasing the risk to the public and law enforcement personnel. ATF’s mission is to focus our efforts on firearms traffickers and trigger pullers and we will continue to pursue individuals engaged in this type of illegal activity.”
In the plea agreement, the government, in exchange for Gourdikian’s acceptance of responsibility and agreement to forfeit 68 firearms, has agreed to recommend a prison sentence of 30 months. This recommendation, however, will not be binding on Judge Wilson, who could impose a sentence of up to 15 years in prison after Gourdikian pleads guilty to the two charges.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorneys Elisa Fernandez of the Public Corruption and Civil Rights Section and Jennifer Chou of the Violent and Organized Crime Section.
Former Medical Assistant Sentenced for Oxycodone ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Maryland woman was sentenced today to 10 years in prison for her role in leading a conspiracy to distribute oxycodone.
“Ms. Edwards was responsible for supplying large amounts of a dangerous opioids for distribution,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “She abused the trust of the doctors who employed her, and in doing so, became the pipeline that spread poison in the community. The Eastern District will continue to make the prosecution of opioid related crimes a top priority.”
According to court documents, Louise S. Edwards, 38, was previously employed as a medical assistant at doctor’s offices in Arlington and Alexandria. From 2011 through December 2017, Edwards stole blank prescription pads and electronically-generated fraudulent prescriptions using a medical recordkeeping system to which she had access by virtue of her position as an employee. Edwards had others write or fill the fraudulent prescriptions and return the full bottles to her. Edwards then sold the full bottles for further distribution. During the conspiracy, Edwards facilitated the fraudulent filling of at least 353 prescriptions, totaling 42,360 pills of 30 milligram oxycodone.
“Today's sentence serves as a reminder of the responsibility those in the medical profession have in serving the community and a deterrent for anyone thinking about trying to make a buck while fueling the opioid epidemic,” said Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office. “The FBI remains dedicated to working with our partners to stop the flow of illegal opioids into our communities.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Matthew A. Anzaldi and Assistant U.S. Attorney Alexander E. Blanchard prosecuted the case. Former Special Assistant U.S. Attorney Matthew Evans provided assistance investigating 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. 1:18-cr-155.
Former Insurance Agent Sentenced to Prison for Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Ashburn woman was sentenced today to two years in prison for engaging in a fraud scheme that resulted in an attempted loss of approximately $182,000.
Semyya Cunningham, 41, was convicted by a federal jury on February 1. According to court records and evidence presented at trial, Cunningham was an agent and licensed representative of the Western Reserve Life Assurance Co. of Ohio, a company that issued life and other forms of insurance. In April 2014, Cunningham sold a life insurance policy to her close friend (identified in court records as Victim A). The policy included an accelerated death benefit option that permitted the holder, in the event he or she were ever diagnosed with a terminal illness, of claiming the proceeds before death. In July 2014, Victim A was diagnosed with a terminal illness. Shortly thereafter, Cunningham engaged in a scheme to fraudulently obtain the proceeds of the insurance policy for herself. Cunningham changed all of the contact information on the policy to her information, changed the beneficiaries on the policy from Victim A’s family members to friends of hers, and submitted a claim for the accelerated death benefit without Victim A’s knowledge or consent. Western Reserve paid the claim, and because the contact info had been changed to Cunningham’s information, the check was mailed to Cunningham’s residence. Cunningham then deposited the money into her own account, and then transferred the bulk of the money through several accounts in an apparent attempt to prevent the transaction from being reversed.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Matthew Burke and Grace L. Hill 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-177.
Former Golf Professional Pleads Guilty to Tax FraudRead the Press Release
BOSTON – A former golf professional, who worked at two courses owned by the City of Springfield, pleaded guilty today in federal court in Springfield to tax fraud.
Ryan McDowell, 32, of Springfield, pleaded guilty to six counts of tax fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 6, 2018.
Between 2011 and 2016, McDowell worked as an Assistant Golf Professional for a golf management company that contracted with the City of Springfield to manage its two municipal golf courses, Franconia and Veterans Memorial Golf Courses. During that time period, McDowell skimmed approximately $101,050 from golf revenues belonging to the City and then filed false tax returns each year that intentionally omitted the stolen money. McDowell’s filing of the false tax returns resulted in a federal tax loss of $34,236.
Each of the tax fraud charges provides for a sentence of no greater than three years in prison, up to three years of supervised release, and a fine of $100,000. 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division, made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Former Chief Executive Officer of BioCube, Inc. Sentenced to Three Years in Prison for Securities FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Boris Rubizhevsky, the former Chief Executive Officer (“CEO”) of BioCube, Inc. (“BioCube”), was sentenced by Judge Roslynn R. Mauskopf to 36 months’ imprisonment for conspiracy to commit securities fraud. Rubizhevsky’s conviction arose out of his participation in a scheme to pump and dump BioCube’s stock, which traded under the ticker symbol BICB. The defendant and his co-conspirators planned to acquire BioCube stock at a low price, artificially inflate its price through manipulative and deceptive means, and then sell it at a higher price—all to the detriment of BioCube’s other stockholders. Rubizhevsky was arrested in April 2017 and pleaded guilty in January 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the sentence.
“With today’s sentence, Boris Rubizhevsky has been held responsible for abusing his former position as CEO of BioCube to help devise a pump and dump of the company’s stock designed to defraud BioCube’s own stockholders,” stated United States Attorney Donoghue. “This Office is committed to protecting the investing public and the integrity of the financial market from fraudulent schemes.” Mr. Donoghue also expressed his thanks to the United States Securities and Exchange Commission (“SEC”), New York Regional Office, for its assistance in the case.
“Rubizhevsky defaced his former official title as CEO when he aimed to defraud those who invested their money and trust in Biocube, Inc.,” stated FBI Assistant Director-in-Charge Sweeney. “Fraudulent conspiracies and schemes are not a route to success – but a gateway to prison, as manifested by today’s sentence. Still, the work of the FBI and our law enforcement partners does not stop here, as we will be relentless in investigating those who deviously plot against the securities industry.”
“The stock market is a crucial component to our economy and investors must have faith in the CEO’s of those publicly traded companies,” stated IRS-CI Special Agent-in-Charge Robnett. “The special agents of IRS-CI are proud to lend their financial expertise with investigations that protect the integrity of our financial systems.”
According to court documents, Rubizhevsky engaged in a scheme to defraud BioCube’s investors and potential investors by concealing a co-conspirator’s beneficial ownership and control of BioCube shares, so that the co-conspirator could exercise control over the price and trading volume of BioCube’s stock. Rubizhevsky’s co-conspirator had a history of being sanctioned by regulatory authorities and being banned from the securities industry by the SEC. The plans to pump and dump BioCube’s stock after the co-conspirator gained control of the stock were captured in conversations between Rubizhevsky and the co-conspirator on a wiretap recording. The scheme was thwarted by law enforcement before investors could suffer significant losses.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn L. Cooley, Tyler Smith, and Kaitlin T. Farrell are in charge of the prosecution.
The Defendant:
BORIS RUBIZHEVSKY
Age: 67
Closter, New JerseyE.D.N.Y. Docket No. 17-CR-339
Florida Man Pleads Guilty to $2 Million Insider Trading Scheme Involving Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ROBERTO RODRIGUEZ pled guilty today before United States Magistrate Judge Henry B. Pitman to conspiracy to commit securities fraud and fraud in connection with a tender offer for his role in an insider trading scheme involving material nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. In August 2017, RODRIGUEZ, Michael Siva, Rodolfo Sablon, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three insider trading schemes, all stemming from securities trades based on information misappropriated by Rivas. Rivas and an additional participant, James Moodhe, had previously pled guilty and are cooperating with the Government in this investigation. Since the unsealing of the Indictment, Sablon, Zoquier, and Rogiers, in addition to RODRIGUEZ, have pled guilty and will be sentenced by U.S. District Judge Alison J. Nathan.[1]
U.S. Attorney Geoffrey S. Berman said: “As Roberto Rodriguez admitted today, he traded on confidential corporate information stolen by his longtime friend Daniel Rivas, reaping millions of dollars in illegal profits. Further, Rodriguez and another conspirator, Rodolfo Sablon, planned to use these illicit proceeds as seed money to start their own investment fund, intending to give an ownership stake to Rivas. Our Office is committed to identifying and prosecuting insider trading networks that undermine our nation’s securities markets.”
According to the allegations contained in the Indictment filed against RODRIGUEZ and his co-conspirators, and statements made in related court filings and proceedings:
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition (“M&A”) transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rodriguez Tipping Chain
RODRIGUEZ was a member of the second of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to RODRIGUEZ, a childhood friend of Rivas with whom Rivas had maintained a close relationship as adults, and Sablon.
Since 2014, RODRIGUEZ lived and worked in Miami, Florida, with Sablon, with whom he was also friends. In 2015, RODRIGUEZ introduced Rivas to Sablon. Rivas and Sablon then communicated with each other directly and developed an independent relationship.
In the fall of 2015, Rivas disclosed to RODRIGUEZ that Rivas had access to Inside Information by virtue of his position as a corporate insider at an Investment Bank. At RODRIGUEZ’s request, Rivas also agreed to share Inside Information with Sablon. While Rivas had originally agreed to divulge Inside Information to RODRIGUEZ because of their history of friendship, Rivas also learned that RODRIGUEZ and Sablon intended to start an investment fund with the proceeds of the insider trading scheme. Rivas understood that in exchange for the Inside Information Rivas was providing to RODRIGUEZ and Sablon, Rivas would be invited to join the investment fund as a partner once it was successfully launched.
At first, Rivas communicated with RODRIGUEZ and Sablon primarily via phone and text message. As the scheme progressed, however, RODRIGUEZ and Sablon increased their efforts to hide their illegal activity. On several occasions, Rivas met personally with RODRIGUEZ and/or Sablon in Miami in order to provide them with Inside Information. Rivas also provided RODRIGUEZ and Sablon with Inside Information using an encrypted mobile messaging application (the “Messaging App”), which allows users to set a timer to messages to irretrievably “self-destruct.”
In order to maximize the illicit profits that could be earned using Rivas’s Inside Information, RODRIGUEZ and Sablon, in consultation with Rivas, initiated an aggressive strategy of purchasing short-term, out-of-the money call options. In total, from 2015 through April 2017, RODRIGUEZ and Sablon earned more than $2 million in illicit profits through insider trading in more than two dozen securities based on Inside Information divulged by Rivas.
* * *
RODRIGUEZ, 33, of Miami, Florida, pled guilty to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer (Count 21), which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. RODRIGUEZ will be sentenced before Judge Nathan.
The allegations contained in the Indictment as to Michael Siva, the sole defendant who had not pleaded guilty, are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
[1] As for the defendant who has not pled guilty (Michael Siva), the charges described herein constitute only allegations, and Siva is presumed innocent unless and until proven guilty.
Florida Escort Service Owner Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
A Miami escort service owner was sentenced today to 24 months in prison for filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to court documents, Dennis Zarudny was the director and 100% shareholder of Denzar Inc., which did business as “Elite Miami Escorts” and “Elite Escort Service” in the Miami area. According to Denzar’s internet website, the company was a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.” Zarudny previously pleaded guilty in April 2018 to filing a false individual income tax return for 2012 that underreported his total income from his escort business.
For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business income. Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card. Zarudny reported income from credit card transactions but did not fully report the income he received from customers who paid in cash and check.
In addition to the term of imprisonment imposed, Zarudny was ordered to serve one year of supervised release. The court scheduled a hearing to determine restitution to the IRS on December 7, 2018.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Greenberg commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Joshua Rothstein and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
FBI Director Christopher Wray and September 11th Victim Compensation Fund Special Master Rupa Bhattacharyya Held Public Forum on Benefits for Federal Law Enforcement Officers Who Responded on 9/11 and Now Suffer 9/11-Related IllnessesRead the Press Release
Each year, as the anniversary of the Sept. 11, 2001, terrorist attacks approaches, the country is reminded of the unprecedented losses suffered. As we approach the anniversary and honor the fallen, the Justice Department also honors the survivors, particularly those who are experiencing 9-11 health related illnesses. The September 11th Victim Compensation Fund (VCF) is increasing its efforts to identify those who may be eligible for compensation because they suffer physical health effects as a result of their exposure but are not aware of the VCF, and seeks to award compensation to those who continue to suffer. As part of this outreach effort, FBI Director Christopher Wray and VCF Special Master Rupa Bhattacharyya hosted a public forum for approximately 150 federal law enforcement officers today to provide vital information about federal programs that are available to those who responded to the attacks in New York City, at the Pentagon, and in Shanksville, Pennsylvania, on Sept. 11, 2001.
“Like so many first responders, our agents were fearless in their response on September 11 and in the days and months that followed, exposing themselves to what we now know were toxic conditions,” said FBI Director Wray. “We are here today to spread the word about the VCF and the World Trade Center Health Program – two long-standing programs that provide vital assistance to those who have become sick as a result of their 9/11 exposure.”
“We are extremely grateful to have Director Wray, Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York with us here today to raise awareness of the VCF as a resource for this brave community,” said VCF Special Master Bhattacharyya. “In addition to providing critical relief from financial hardship that results from 9/11 injuries and deaths, the VCF compensates victims – at least to some degree - for their pain and suffering, and can provide some peace of mind, though sadly, for many who fear leaving their families in need.”
After opening comments by the National September 11th Memorial and Museum President Alice Greenwald, Director Wray spoke with the group about the first responders who served their country in its greatest hour of need. “You fought for justice,” he said. “You fought to bring peace to the families who lost their loved ones. You fought to make sure that what happened that day would never -- ever -- happen again. So let us help you now. Let us fight for you. We’re in this together, and we’ll tackle it together, just as we have in the past 17 years.”
Director Wray was followed by retired FBI Supervisory Special Agent Lu Lieber, who talked about becoming sick years after her 9/11 exposure, and failing to connect the two until being invited to an FBI/VCF information sharing event last October. “Prior to Oct. 11, 2017, I was unaware of the World Trade Center Health Program and unaware that I was eligible to file a claim with the VCF,” said Lieber. “I did not connect my symptoms to 911 exposure. I have since registered with the WTC Health Program, and I am certified with six different conditions related to 911 exposure. Even if you don't feel sick, it is crucial to register with the World Trade Center Health Program and the VCF if you are certified with WTC related conditions. These programs are vital, they are available to help you and they may save your life.”
Lt. (Fmr.) Michael O’Connell, retired FDNY but a rookie when he was a first responder, spoke of his 9/11 experience and the illnesses that followed, and he, too, encouraged audience members to sign up for the World Trade Center Health Program, and to register with the VCF. “Those two programs saved my life, and saved my family,” said O’Connell. “They are there for you – go find them.”
The public forum, which included representatives from the World Trade Center Health Program, Department of Justice’s Bureau of Justice Assistance, the FealGood Foundation, 9/11 Health Watch, the FBI Agents Association, and the Federal Law Enforcement Officers Association, featured presentations on both the VCF and the World Trade Center Health Program, followed by a Q&A session with Special Master Bhattacharyya and Lieutenant Commander Brittany Rizek, Medical Benefits Team Lead of the World Trade Center Health Program. The audience was largely federal law enforcement officers who responded on 9/11 to the attacks in New York City, at the Pentagon, and at the Shanksville site.
“It’s critically important that we continue to reach out to individuals who may qualify for medical benefits through the World Trade Center Health Program,” said Lieutenant Commander Brittany Rizek. “We are dedicated to helping all eligible members affected by the September 11th attacks receive expert care.”
The VCF is also participating in the Voices of 9/11 17th Annual Day of Remembrance Information Forum on Monday, Sept. 10, to increase awareness and answer questions regarding the VCF.
As of Aug. 31, the VCF has found 20,874 claimants eligible for compensation. The VCF has made initial award determinations on 19,204 of those claims, and has issued revised awards on 5,011 claims due to an amendment or appeal. The total amount awarded to date is more than $4.28 billion to VCF claimants. In all, the VCF has compensated claims from more than 15,300 responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as almost 3,500 others who lived, worked, or traveled through areas of lower Manhattan and were exposed to debris and toxins generated by the attacks and their aftermath.
For additional information about the VCF and how to file a claim, please visit the VCF’s website at www.vcf.gov. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
District Man Sentenced to Seven Years in Prison for Carjacking of Nun in Northeast WashingtonRead the Press Release
WASHINGTON – Brandon Brown, 20, of Washington, D.C, was sentenced today to seven years in prison on charges stemming from the carjacking of a nun who he accosted at gunpoint in a parking lot in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Brown pled guilty in May 2018, in the Superior Court of the District of Columbia, to charges of carjacking and carrying a pistol without a license. The plea, which was subject to the Court’s approval, called for an agreed-upon sentence in the range of seven and 10 years in prison, to be followed by three years of supervised release. The Honorable Marisa Demeo accepted the plea and sentenced Brown accordingly.
According to a proffer of facts submitted at the plea hearing, on April 9, 2018, at approximately 6:45 p.m., the victim, who was wearing full clerical garb, was walking to a parking lot in the 1300 block of Quincy Street NE to retrieve something from a minivan. As she neared the parking lot, she observed Brown, who had a bandana covering his face.
The victim continued into the parking lot and opened the passenger side door of a white Dodge Caravan belonging to the convent. She turned on the minivan and retrieved a compact disc from the stereo. She then began to walk away from the vehicle as Brown approached her. When he was within a few feet of her, Brown demanded the car keys. The victim did not say anything, but continued to hold onto the keys. At this point, Brown brandished a firearm and pressed it to her left temple and once again demanded the keys. The victim held out the key and Brown took it from her. She then told him: “May God bless you.”
Brown got into the Caravan and drove off. The victim walked into a nearby building, told others what happened, and one individual called 911. Officers with the Metropolitan Police Department (MPD) quickly spotted the Caravan at 21st Street and Maryland Avenue NE. They attempted to stop Brown at 26th Street, but he got out of the minivan and fled.
He was eventually apprehended, and officers recovered a loaded, small gray semi-automatic handgun in the front right pocket of his sweatpants. They also recovered a red bandana. Brown was arrested and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jennifer Kerkhoff and Victim/Witness Advocate James Brennan. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Ellen D’Angelo, who investigated and prosecuted the case.
Dexter Jones Sentenced to Life in Prison and Darrion Jones Sentenced to 25 Years in Drug Trafficking ConspiracyRead the Press Release
Hattiesburg, Miss – Dexter Jones, 42, of Hattiesburg, Mississippi, and Darrion Jones, 33, of Heidelburg, Mississippi, were sentenced yesterday by U.S. District Judge Keith Starrett for their roles in a drug trafficking conspiracy, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration.
Dexter Jones was sentenced to serve life in federal prison for possession with intent to distribute methamphetamine, while Darrion Jones was sentenced to serve 300 months in federal prison for conspiracy to possess with intent to distribute methamphetamine. Dexter Jones was ordered to pay a $25,000 fine and Darrion Jones was ordered to pay a $20,000 fine.
An investigation of Dexter Jones’s drug trafficking activity began in 2015 based on information from a confidential source. The investigation revealed that Dexter Jones, Darrion Jones, and several other individuals were distributing large quantities of methamphetamine in the Hattiesburg and Laurel, Mississippi areas. Also indicted in the drug trafficking conspiracy were Jamie Wheat, John Foster, Mitchell Jones, and John Baxter. Wheat pled guilty and was sentenced to 188 months; John Foster pled guilty and will be sentenced on September 18, 2018; Mitchell Jones pled guilty and will be sentenced on September 27, 2018. Baxter’s case is still pending.
The case was investigated by the Lamar County Sheriff’s Department, Jones County Sheriff’s Department, Forrest County Sheriff’s Department, Mississippi Bureau of Narcotics, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.