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16 October 2018
Farmville Man Sentenced to 90 Months for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced JAMES ANTRON DILDY, 38, of Farmville, North Carolina to 90 months imprisonment, followed by 6 years of supervised release.
DILDY was named in an Indictment filed on May 10, 2017 charging him with conspiracy to distribute and possess with the intent to distribute a quantity of cocaine. On October 4, 2017, DILDY pled guilty to that charge.
According to the investigation, DILDY conspired with others in Greenville, North Carolina and distributed over 190 grams of cocaine from December 30, 2015 to February 3, 2016.
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Winterville Police Department, East Carolina University Police Department, and North Carolina’s State Bureau of Investigation. Assistant United States Attorney Dena King represented the government.
Farmington Man Sentenced to 45 Months in Prison for Fentanyl TraffickingRead the Press Release
CONCORD - Kyle Leavy, 32, of Farmington, was sentenced to 45 months in federal prison for fentanyl trafficking charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the fall of 2017, Leavy sold fentanyl to an individual who was cooperating with the FBI on three separate occasions at locations in and around Rochester, New Hampshire. During the third drug deal, Leavy sold more than 40 grams of fentanyl.
Leavy previously pleaded guilty on June 29, 2018, to three counts of methamphetamine distribution.
“Fentanyl is a deadly drug that has caused great harm to the citizens of our state,” said U.S. Attorney Murray. “In order to protect our community, we are working closely with all of our law enforcement partners to identify and prosecute those who seek to profit from selling fentanyl and other dangerous drugs. I commend the work of the investigators in this case whose efforts stopped this drug dealer from doing business on our streets.”
“We simply cannot and will not allow drug dealers like Mr. Leavy to peddle this poison on the streets of our cities. They’re flooding our neighborhoods with these dangerous narcotics, making themselves rich while others suffer,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI’s Safe Streets Gang Task Force will continue to work with our law enforcement partners to stem the flow of drugs, and reduce crime.”
This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force. The Task Force is comprised of the FBI, the Federal Protective Service, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Portsmouth, Manchester, and Nashua. The case was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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Driver of Ridesharing Service Charged in White Plains Federal Court with Kidnapping and Wire FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging HARBIR PARMAR with kidnapping and wire fraud. PARMAR will be presented in White Plains federal court this afternoon before United States Magistrate Judge Judith C. McCarthy.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Harbir Parmar was hired to transport a woman from Manhattan to her home in White Plains. Instead, Parmar kidnapped, terrorized, and assaulted the woman before dumping her on the side of an interstate. No one – man or woman – should fear such an attack when they simply hire a car service.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The victim in this case utilized a ride sharing service trusting that her driver would provide a safe ride home. Instead, as we allege today, Harbir Parmar made an outrageous choice, deciding to unlawfully take advantage of his passenger at a moment of vulnerability for his own selfish motives. This kind of behavior should never be tolerated, and the FBI will continue to work tirelessly with our partners to bring justice to those who would shamelessly and illegally take advantage of others.”
Commissioner James P. O’Neill said: “The criminal acts outlined in this complaint are reprehensible. This individual’s behavior goes far beyond ridesharing companies’ efforts to revise their ethics codes and put stronger emphasis on background checks for their drivers. The people we serve deserve much better. These charges are appalling, and such behavior will never be tolerated by the NYPD or any of our local, state, or federal law enforcement partners.”
According to the allegations in the Complaint unsealed today:[1]
On February 21, 2018, an individual (“Victim-1”) ordered a vehicle through a ridesharing company (“Company-1”) to pick her up in Manhattan, New York, and take her to White Plains, New York, where she resided at the time. At approximately 11:30 p.m., Victim-1 entered a vehicle driven by PARMAR, who was licensed to use Company-1’s software as a driver. Victim-1 fell asleep in the vehicle. PARMAR changed Victim-1’s destination in Company-1’s mobile application to an address in Boston, Massachusetts and proceeded to drive toward Massachusetts. When Victim-1 awoke, the vehicle was on the side of the road and PARMAR was in the backseat of the vehicle with her, with his hand under her shirt touching the top of her breast. Upon Victim-1 waking up, PARMAR got back into the driver’s seat and continued driving. Victim-1 requested that she be taken to White Plains or to the police station but PARMAR refused. PARMAR instead dropped Victim-1 off on the side of I-95 in Branford, Connecticut. Victim-1 went to a nearby convenience store where she sought assistance.
In addition, from December 2016 through February 2018, PARMAR, sent allegedly false information about the destinations of Company-1’s customers through Company-1’s mobile application on at least 11 occasions. He also sent false information about the application of a cleaning fee to be applied to the accounts of Company-1’s customers on at least three occasions. In these instances, customers of Company-1 filed complaints with Company-1 about being overcharged for their rides. These instances have resulted in over $3,600 in improper charges to the accounts of Company-1’s customers.
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PARMAR, 24, of Howard Beach, New York, is charged with one count of kidnapping, which carries a maximum sentence of life in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
There may be more victims of this alleged conduct. If you have information to report, contact the FBI’s Westchester Resident Agency at (914) 925-3888.
Mr. Berman praised the outstanding investigative work of FBI’s Westchester County Safe Streets Task Force, which is comprised of investigators from the FBI, U.S. Probation Office, New York State police, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, the New York City Police Department, Yonkers Police Department, Greenburgh Police Department, Mount Vernon Police Department and the Peekskill Police Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jamie Bagliebter is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Doctor sentenced for over $2 million in tax fraudRead the Press Release
ATLANTA – Dr. Michael Jon Kell, was sentenced to federal prison after a two-decade scheme to funnel millions of dollars in assets through a church he created to evade filing federal taxes.
“Despite earning millions of dollars and living a lavish lifestyle, Dr. Kell failed to file tax returns for several years when he falsely asserted that he was a minister under a vow of poverty,” said U.S. Attorney Byung J. “BJay” Pak. “The defendant will now be held accountable for evading his tax obligations.”
“Kell thought he could outsmart the IRS and avoid paying his fair share of taxes to the government by hiding his personal wealth behind the doors of a church he created and controlled in an effort to thwart the IRS while living a lavish lifestyle,“ said Thomas J. Holloman, Special Agent in Charge, Internal Revenue Service, Criminal Investigation. “Taxpayer’s who go to these lengths to evade paying their taxes will be investigated to the fullest extent and referred for prosecution to the Department of Justice in hopes of bringing individuals into compliance with the IRS.”
According to U.S. Attorney Pak, the charges and other information presented in court: Dr. Kell developed numerous patented technologies and worked as a consultant, which generated millions of dollars in income over the years. To hide this income, he founded and was the “pastor” of the First Meliorite Church, which he claimed to be a branch of the Universal Life Church. Dr. Kell directed his substantial income and assets into bank accounts belonging to the church—all of which were under Dr. Kell’s exclusive control. He used these accounts to cover all of his personal expenses—including overseas vacations, dining out, high-end clothing purchases, online dating services, and private school tuition for his children. Dr. Kell also transferred ownership of his multi-million dollar residence in Vinings several times over the years to various entities he created and controlled, in an effort to protect the property from creditors, including the Internal Revenue Service.
Dr. Michael Jon Kell, 68, of Powder Springs, Georgia, was sentenced by U.S. District Court Judge Eleanor L. Ross to one year, six months in prison. He was also ordered to pay $321,878.40 in restitution to the Internal Revenue Service.
This case was investigated by the Internal Revenue Service - Criminal Investigation and Special Enforcement Program.
Assistant U.S. Attorney Lynsey M. Barron prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Dallas Physicians and Nurses Sentenced to Prison for Role in $11 Million Medicare Fraud SchemeRead the Press Release
Two Dallas doctors and three nurses were sentenced yesterday in an $11.3 million Medicare fraud scheme involving false and fraudulent claims for home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office, and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), made the announcement
Patience Okoroji, 60, of Dallas County, Texas, was sentenced by U.S. District Judge Reed O’Connor of the Northern District of Texas to serve 120 months in prison for her role in the fraudulent scheme as a part-owner of Timely Home Health Services Inc. (Timely) and a Licensed Vocational Nurse (LVN). Kelly Robinett, M.D., 69, of Denton County, Texas, who was a former part-owner and supervising physician at Boomer House Calls (Boomer) of Frisco, Texas, was sentenced to serve 42 months in prison; Joy Ogwuegbu, 42, of Collin County, Texas, the former Director of Nursing at Timely, was sentenced to serve 42 months in prison and Kingsley Nwanguma, 48, of Dallas County, an LVN at Timely, was sentenced to serve 42 months in prison. Angel Claudio, M.D., 61, of Hidalgo County was sentenced to serve six months in prison.
On June 22, following a five-day trial before Judge O’Connor, Robinett and Nwanguma were each convicted of one count of conspiracy to commit health care fraud. In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Ogwuegbu was convicted of four counts of health care fraud. Claudio; Okoroji; Usani Ewah, 60, of Dallas County, a part-owner of Timely and a registered nurse (RN); and Shawn Chamberlain, 49, of Collin County, a part-owner of Boomer and a physician’s assistant, all pleaded guilty. Chamberlain and Ewah are awaiting sentencing.
According to evidence presented at trial, from 2007 through 2015, Okoroji, Ewah, Nwanguma, Ogwuegbu, Claudio, Robinett, and Chamberlain engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely, a home health agency, and Boomer, a physician house call company. The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided. The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.
Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed. Court documents also show that Robinett’s company, Boomer, billed Medicare over $1.6 million for medically unnecessary home health certifications and services and physician’s home visits.
This case was investigated by the HHS-OIG, FBI, and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
DRUG CARTEL LEADER CHARGED_Juan Perez-Vargas, aka Piolin, Indicted as Part of Coordinated Nationwide Enforcement Efforts Against Cartel Jalisco Nueva GeneracionRead the Press Release
NEWS RELEASE SUMMARY – October 16, 2018
SAN DIEGO – The Department of Justice announced today a series of measures to target and dismantle the Cartel Jalisco Nueva Generacion (CJNG) – one of the largest, most dangerous drug cartels currently operating in Mexico. As part of those measures, the U.S. Attorney’s Office for the Southern District of California, announces the indictment of CJNG leader, Juan Perez-Vargas, aka Piolin.
A federal grand jury in San Diego returned a sealed indictment on January 27, 2017, charging Perez-Vargas, with Conspiracy to Distribute Controlled Substances Intended for Importation, and Conspiracy to Import Controlled Substances. On January 30, 2017, the Clerk of the Court issued a sealed warrant for his arrest. On September 20, 2017, Perez-Vargas was arrested in Guadalajara, Mexico pursuant to these charges in the United States and is currently awaiting extradition to San Diego.
CJNG is one of the most powerful cartels in Mexico and the Department of Justice considers it to be one of the five most dangerous transnational criminal organizations in the world, responsible for trafficking numerous tons of cocaine, methamphetamine and fentanyl-laced heroin into the United States. Founded in 2011, CJNG has grown in size and strength rapidly since its inception. Today, the DEA estimates the CJNG exerts influence in 23 of 31 (75 percent) of Mexican states, including key drug production and transportation corridors. CJNG is also responsible for significant amounts of violence and loss of life in Mexico. CJNG gained its power in Mexico as a result of the organization’s disciplined command and control, sophisticated money laundering techniques, efficient drug transportation routes, and extreme violence. The cartel has also expanded globally, with significant presence and illicit business not only throughout the United States and Mexico, but also Europe, Asia, and Australia.
The unsealed indictment marks the conclusion of the initial phase of a multi-year OCDETF investigation. This joint Homeland Security Investigations (HSI) and Drug Enforcement Administration (DEA) investigation targeted the leadership elements, lieutenants, associates, and money launderers connected with CJNG, the Rafael Caro-Quintero (RCQ) DTO and Beltran Leyva Organization (BLO).
“With today’s announcement, the Attorney General has made clear the Department’s focus on dismantling transnational criminal organizations,” said U.S. Attorney Adam L. Braverman. “This indictment proves yet again that the Southern District of California will take the lead to relentlessly target and bring to justice the most significant drug kingpins no matter where they operate.”
U.S. Attorney Braverman also praised the outstanding work of the federal team from HSI Calexico / DEA Imperial County in the culmination of this investigation. U.S. Attorney Braverman also thanked Customs and Border Protection, the U.S. Marshals Service, the U.S. Department of Justice’s Office of Enforcement Operations and the Office of International Affairs for their ongoing assistance in this investigation.
“Today’s Indictment is an example of the dedicated and collaborative efforts by HSI Calexico and DEA Special Agents,” said David Shaw, Special Agent in Charge for HSI San Diego. “This joint effort allowed for the opportunity to narrow the investigation, identify more high level targets and significantly impact the cartel leadership structure. HSI agents remain committed to working with our partners and prosecutors in bringing additional members of this transnational criminal organization to justice.”
“Together with our law enforcement partners, DEA continues to target and take down some of the highest-level drug traffickers in the world,” said DEA San Diego Special Agent in Charge Karen Flowers. “CJNG is in our crosshairs and this indictment reflects that we will ensure that drug traffickers pay a very high price for their crimes.”
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number 17CR219-CAB
Juan Perez-Vargas, aka Piolin Age: 37 Guadalajara, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Customs and Border Protection, Office of Field Operations
United States Marshals Service
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
Customs and Border Protection, Office of Border Patrol
Immigration and Customs Enforcement, Enforcement and Removal Operations
El Centro Police Department
Brawley Police Department
Imperial County District Attorney’s Office
Imperial Valley, Law Enforcement Coordination Center
*An indictment or complaint is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Columbia Men Sentenced to Lengthy Prison Terms After Federal Convictions for Large Scale Heroin ConspiracyRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated that Michael Glover, a/k/a “Glove,” a/k/a “G,” a/k/a “HG,” age 48, and Jihad Salahadeen Pollard, age 44, both formerly of Columbia, South Carolina, were sentenced to lengthy sentences yesterday in federal court. Glover was sentenced to 324 months (27 years) imprisonment, which will be followed by 8 years of supervised release. Pollard was sentenced to 121 months (10.08 years) imprisonment, which will be followed by 4 years of supervised release.
Glover and Pollard each plead guilty last year to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Glover also plead guilty to a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, imposed the sentences.
Glover and Pollard were two of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining large amounts of heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. After those packages were intercepted, Glover and Pollard, along with their co-defendants, obtained heroin from suppliers in New York and transported it back to Columbia to stash houses and later distributed to street level dealers. The New York heroin suppliers were charged and convicted in the Eastern District of New York for their role in the heroin conspiracy.
Glover and Pollard were fugitives until their arrests in the summer of 2017 in San Antonio, Texas, where they were residing under false identities. Pollard was located after being arrested by Texas authorities for selling heroin. While in a Texas jail, a check of Pollard’s fingerprints determined that he was using a fake identity and wanted in South Carolina. The following month, the United States Marshals Service located Glover in Texas using a false identity and brought him back to South Carolina. Glover, who has prior North Carolina state convictions for sale of cocaine and possession with intent to distribute marijuana, was deemed a career offender by the court.
Six of their co-defendants were arrested in 2014 and plead guilty to their role in the drug conspiracy here in South Carolina and were sentenced in 2015 as follows: Eric Shawn Bradley, a/k/a “E,” age 50, of Columbia, was sentenced to 210 months imprisonment with 8 years of supervised release; Kenneth Crawford, age 44, of Washington, D.C., and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release; Charles Bradley, age 35, of Columbia, was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 43, of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release to follow; Larry Bookman, age 64, of Columbia, was sentenced to 70 months imprisonment with 6 years of supervised release; and Jessany Lyons, age 27, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Two other co-defendants charged in the indictment remain fugitives and are innocent until and unless proven guilty.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, United States Secret Service, Federal Bureau of Investigation, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, and the Orangeburg County Sheriff’s Department. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
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Colombian money launderers sentencedRead the Press Release
ATLANTA - Fernando Vidal-Gonzalez and Jhon Jimenez-Guzman, a former professional soccer player who played with Colombian Team America, have been sentenced for their roles in an international money laundering organization responsible for collecting over $1 million from drug trafficking in the United States. The defendants laundered the funds by filtering them through a network of bank accounts destined for Colombia. Vidal-Gonzalez and Jimenez-Guzman operated out of Cali, Colombia, and were extradited to face charges in the United States following the dismantling of their organization.
“International money launderers function as the financiers of criminal organizations, enabling the victimization of our communities while hiding behind a shield of anonymity built through a maze of bank accounts and business transactions,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue bring those who operate sophisticated money laundering networks to justice, even if they are operating in other countries.”
“Transnational criminal organizations who commit crimes against the United States face accountability for their actions regardless of where they may be physically located,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case shows HSI is committed to using its unique cross-border authority to hold accountable persons who commit serious crimes, and it reflects the excellent partnership between HSI, the Colombian government, and our federal partners.”
According to U.S. Attorney Pak, the charges and other information presented in court: In Cali, Colombia, Vidal-Gonzalez worked with Jimenez-Guzman, as part of a money laundering organization that functioned as a type of “Black Market Peso Exchange” (BMPE). A BMPE is a complex money laundering scheme in which drug proceeds or other illegal profits are layered into the financial system through numerous structured cash deposits with subsequent transfers into bank accounts held by various individuals and businesses (which may be legitimate or shell entities). The funds are also sometimes used to pay for exported goods. The end result is that the illegal funds are transferred to another country – in this case Colombia – in a manner that disguises the true source and owners of the funds, while evading currency exchange and income reporting requirements, taxes, and fees.
While the defendants were in Cali, Colombia, they directed an individual in the United States to open multiple bank accounts. Vidal-Gonzalez and Jimenez-Guzman then arranged for couriers to hand off large bags of cash from drug sales (as much as $108,040 at a time) to the individual at locations such as a park, a gas station, or a nightclub. The individual was told to deposit the money into bank accounts in small increments, and then transfer the funds out by numerous wires to other accounts and businesses located throughout the United States, Mexico, Colombia, and China. The ultimate goal was to transfer the funds back to Colombia. Law enforcement identified over $889,000 that Vidal-Gonzalez and Jimenez-Guzman laundered in this manner between May 2011 and August 2012.
Fernando Vidal-Gonzalez, 56, of Cali, Colombia, was sentenced on October 15, 2018, to eight years, one month in prison, with credit for 10 months served prior to extradition from Colombia, to be followed by three years of supervised release. Vidal-Gonzalez was convicted of conspiracy to commit money laundering after entering a guilty plea on July 6, 2018.
Jhon Jimenez-Guzman, 46, of Cali, Colombia, was sentenced on September 27, 2018, to six years, six months in prison, with credit for 10 months served prior to extradition from Colombia, to be followed by three years of supervised release. Jimenez-Guzman was convicted of conspiracy to commit money laundering after entering a guilty plea on June 19, 2018.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in partnership with the Colombian National Police.
Assistant U.S. Attorneys Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section; Lisa W. Tarvin, Deputy Chief of the General Crimes Section; and Garrett L. Bradford prosecuted the case. The Department of Justice’s Office of International Affairs assisted in securing the extradition of the defendants to the United States.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Coachella Valley-Based Conman Sentenced to 10 Years in Federal Prison in Fraud Schemes that Cost Victims Nearly $2 MillionRead the Press Release
RIVERSIDE, California – A La Quinta man with a criminal history going back nearly five decades has been sentenced to 120 months in federal prison for masterminding a series of fraud schemes that cost victims nearly $2 million.
Jerome Arthur Whittington, 68, received the 10-year sentence late Monday from United States District Judge Jesus G. Bernal, who said the defendant had “ruined the lives of some of the victims.”
Whittington was sentenced after pleading guilty in May 2016 to 33 counts of conspiracy, wire fraud and passport fraud.
Whittington orchestrated a series of fraud schemes in which he posed as various figures, including a former federal prosecutor, a successful attorney, a special agent with the FBI, and a wealthy real estate investor.
“Whittington’s criminal conduct was exceptional – the sheer volume and breadth of his fraudulent conduct is unlike anything I’ve seen from the bench,” Judge Bernal said on Monday.
In one of the schemes, Whittington posed as an attorney and falsely promised a victim that he could help the victim recover losses suffered after investing in two bogus companies. Whittington claimed he was able to seize assets from the two fraudulent companies, but the victim needed to provide money that would be used to “post bonds” that were required prior to seizing the assets. After Whittington falsely claimed that he had obtained a $4 million judgment, Whittington told the victim that representatives from the companies and other victims were very angry and that he should leave the country to avoid confrontations and harassment.
As a result of this “reloading” scheme, the victim paid Whittington approximately $290,000 to recover the losses – but Whittington simply spent the money on personal expenses, which included making payments to other victims of his schemes.
During the sentencing hearing, the victim told Judge Bernal that Whittington “ruined” his life by stealing retirement savings he had built up during a 40-year career.
In imposing the sentence, Judge Bernal said: “Whittington’s criminal history of defrauding people spanned from 1971 – 47 years. Most people recidivate less when they become older. But Whittington started the [latest] schemes while he was in the sixties.”
Once he completes the prison, Whittington will be on supervised release for seven years.
Judge Bernal also ordered that Whittington is responsible for paying nearly $1.7 million in restitution to the victims.
Two criminal cases against Whittington were part of an investigation conducted by the Federal Bureau of Investigation and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
This matter was handled by Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.
Co-Founder of Investment Fund Charged in Manhattan Federal Court for Participating in Multi-Million Dollar Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney, Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that JASON RHODES was arrested this morning on conspiracy, securities fraud, wire fraud, and investment adviser fraud charges stemming from his participation in a scheme to defraud investors by lying to investors in his hedge fund (the “Hedge Fund”) and using investor funds for his own personal use and to make repayments to earlier investors in a Ponzi-like manner.
RHODES is expected to be presented today in Magistrate Court before the Honorable Gabriel W. Gorenstein.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Rhodes participated in a scheme to solicit investors’ money by promising to use it for a stated purpose — to invest in securities — instead, he used it to line his own pockets. In typical Ponzi-like fashion, Rhodes allegedly kept his scheme operating by using investor funds to make payments to other investors who were demanding their money. Jason Rhodes now faces serious time in federal prison for his deceitful conduct.”
FBI Assistant Director-in-Charge William F. Sweeney, Jr. said: “Time and time again, we see Ponzi-like investment schemes fail and their perpetrators brought to justice. As we allege today, Jason Rhodes is just the latest example of someone who allowed greed to guide his actions as he defrauded investors of more than $19 million. The FBI will continue to aggressively investigate these cases as long as misguided individuals continue to foolishly pursue these fraudulent schemes.”
According to the Complaint[1]:
Beginning in at least November 2013 and through in or about December 2016, RHODES, together with his co-conspirators, solicited investments in the Hedge Fund by falsely representing to investors that their funds would be used for legitimate, specified, investment purposes, namely purchasing securities. In fact, RHODES failed to invest the investor monies as promised, but rather diverted investor funds to his own personal use and the personal use of his co-conspirators and to make repayments to other investors who were demanding their money. Through this scheme, RHODES and his co-conspirators defrauded approximately 25 investors out of a total of approximately $19.6 million.
Among other fraudulent acts, RHODES and a co-conspirator falsified an investor account statement using a computer software program to conceal the fact that most of the $4.2 million the investor had sent to the Hedge Fund had been misappropriated, including through transfers of the funds to, among other places, the personal bank accounts of RHODES and a co-conspirator, and to previous investors. After this investor discovered the fraudulent nature of the account statement, RHODES, working with others, obtained funds from yet another investor in order to make payments to this previous investor.
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RHODES, 46, of Rowayton, Connecticut, was arrested this morning. RHODES is charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, one count of wire fraud, and one count of investment adviser fraud. The conspiracy count carries a maximum sentence of 5 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The investment adviser fraud count carries a maximum sentence of 5 years in prison and a maximum fine of $10,000. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the FBI. He also 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 Elisha J. Kobre and Jared Lenow are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Clearfield County Woman Charged with Stealing Mail Packages, ContentsRead the Press Release
JOHNSTOWN, Pa. – A Clearfield County resident was indicted today by a federal grand jury in Johnstown on a charge of theft of mail matter, United States Attorney Scott W. Brady announced today.
The indictment named Susan B. Koontz, 20, of Morrisdale, Pa., as the sole defendant.
According to the indictment presented to the court, from August 1, 2016, to December 11, 2016, Koontz stole and removed from the Morrisdale Post Office approximately 20 parcel packages and the items contained therein, for a total estimated value of $1,036.00.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Carbon County Man Sentenced to over 22 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Keiser, age 27, of Lehighton, Pennsylvania, was sentenced on October 9, 2018, to 270 months’ imprisonment and 20 years’ supervised release by United States District Court Judge Malachy E. Mannion for sexual exploitation of children. Judge Mannion also ordered that Keiser be required to comply with the Sexual Offender and Registration Notification Act (SORNA), a national system for the registration of sex offenders.
According to United States Attorney David J. Freed, in May 2017, Keiser produced videos and visual depictions of minors under the age of 12 engaged in sexually explicit conduct.
The charges stemmed from a federal law enforcement investigation, in which investigators executed search warrants that resulted in the discovery of a very large collection of child pornography on Keiser’s electronic devices, including child pornography images and videos created by Keiser. Keiser also shared child pornography with others via social media applications.
Keiser was indicted by a federal grand jury on August 22, 2017, after an investigation conducted by United States Homeland Security Investigations – Philadelphia Division. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Broken Arrow Man Sentenced to 60 Months for ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew Evan Smith, age 37, of Broken Arrow, Oklahoma, was sentenced to 60 months imprisonment and 3 years supervised release for Arson, in violation of Title 18, United States Code, Sections 844(i) and 2. The charges arose from an investigation by the Tahlequah Police and Fire Departments, the Broken Arrow Police Department, the Oklahoma State Fire Marshal, the Cherokee County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
The Indictment alleged that on or about April 26, 2017, within the Eastern District of Oklahoma, the defendant, maliciously damaged, and attempted to damage and destroy, by means of fire, the Sherwin-Williams Paint Store located in Tahlequah, Oklahoma, which was used in an activity affecting interstate commerce.
During the early morning hours of April 26, 2017 the Tahlequah Fire Department responded to a fire at Sherwin Williams. When firefighters arrived the building and its contents had already suffered extensive fire damage. Firefighters discovered the electric meter had been removed from the building prior to their arrival, a safety measure generally taken by firefighters immediately upon arrival on a fire scene. The investigation that ensued showed there were multiple origins for the fire and the fire was determined to be arson. An inventory of the contents of Sherwin Williams revealed that several items, including ladders and paint sprayers, had been stolen from the store sometime just before the fire was started. Several of these items were pawned by Matthew Evan Smith within days after the fire.
United States Attorney Brian J. Kuester said, “Arson investigations are difficult and time-consuming. It takes determination, diligence and sometimes patience to solve and successfully prosecute people who commit arson. Those virtues were evident in the law enforcement professionals that brought this investigation to its just conclusion with the defendant being sentenced to the Bureau of Prisons.”
“Utilizing arson to mask another crime is an act of violence,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “The augmented financial loss and potential of harm to the public and emergency responders is particularly troubling in this case given Mr. Smith is a former firefighter.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Brockway, Pa.Woman Charged with Defrauding Social Security AdministrationRead the Press Release
JOHNSTOWN, Pa. - A resident of Brockway, Pa., has been indicted by a federal grand jury in Johnstown on a charge of conversion of government funds, United States Attorney Scott W. Brady announced today.
The indictment named Megan M. Pearce, 34, as the sole defendant.
According to the indictment presented to the court, from July 31, 2015, to March 1, 2016, Pearce did receive and convert falsely to her own use a total of $11,728, which represents approximately 16 separate Social Security Administration benefit payments made to her as representative payee for her sons, to which she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Boston Auto Body Shop Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a Hyde Park auto body shop pleaded guilty yesterday in federal court in Boston in connection with preparing false tax returns for his company, Automotive Specialties Inc.
Richard Poillucci, 62, of Easton, pleaded guilty to three counts of aiding the preparation of false tax returns. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 22, 2019. In July 2018, Poillucci was charged by an Information.
Poillucci was the owner of Automotive Specialties Inc. (ASI), an auto body shop specializing in repairing high-end vehicles. Between Sept. 30, 2012 and Sept. 30, 2015, Poillucci cashed millions of dollars of checks from the business at check cashing establishments in Massachusetts and Rhode Island and willfully failed to report that income, or expenses that he paid for in cash with the proceeds from those checks, on ASI’s tax returns. As a result, Poillucci failed to report approximately $569,367 to the IRS, thereby avoiding the payment of approximately $215,552 in federal income taxes.
Each of the counts of aiding the preparation of false tax returns provides for a sentence of no greater than three years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
Baltimore Man Pleads Guilty to Attempting to Rob Undercover ATF Special Agents at GunpointRead the Press Release
Baltimore, Maryland – Menard Hazelwood, age 29, of Baltimore, pleaded guilty today to assault of a federal officer and brandishing a firearm in the course of a crime of violence, in connection with the May 26, 2017, assault on two undercover Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Rob Cekada of the ATF Baltimore Field Division.
“This case demonstrates how drug trafficking can lead to violence. The defendants thought they were robbing drug customers. Unfortunately, this occurs all too often in Baltimore. These agents, like all law enforcement officers, put their lives on the line every day to identify and disrupt the drug dealers that bring violence to our streets,” said United States Attorney Robert K. Hur. “We are grateful for their service and sacrifice.”
“ATF focuses our efforts in Baltimore on drug trafficking crews that use firearms to maintain and expand their turf. ATF agents risk their personal safety each time they infiltrate a criminal organization, yet they do this because they know the importance of their mission to protect the community from these violent criminals,” said ATF Baltimore Special Agent in Charge Cekada. “We are grateful every day that our dedicated Special Agents were unharmed and have been able to fully resume their duties as law enforcement officers.”
According to his plea agreement, on May 26, 2017, during an ATF undercover operation, Hazelwood and a co-defendant attempted to rob two ATF undercover Special Agents (UCs). A confidential informant (CI) made arrangements to purchase $2,000 worth of heroin. The UCs had driven the CI to pick up the heroin dealer, with one UC driving and the other UC in the front passenger seat. They picked up the dealer and drove to a location in West Baltimore to meet with the dealer’s supplier. When they arrived at the location, the dealer got out of the car and told the CI and the UCs to wait. Hazelwood and his co-defendant immediately walked up to the vehicle. The co-defendant asked the UCs for a light. Hazelwood took advantage of the distraction and pointed a gun at the UC in the passenger seat, while the co-defendant pointed a silver revolver at the other UC. Hazelwood and his co-defendant demanded money. The UCs told Hazelwood and his co-defendant, who continued to hold them at gunpoint, that there was cash in the vehicle. The UCs then gave the distress signal to the covert ATF team that was monitoring the operation.
As the covert team arrived on the scene, the agents saw Hazelwood and his co-defendant pointing handguns at the UCs in the vehicle, and ordered them to put their hands up. Hazelwood’s co-defendant fled, and the responding ATF Special Agents fired their service weapons, striking the co-defendant. Hazelwood also broke away and ran to a nearby car, but was not able to get into the car. Special Agents arrested him at the scene.
Agents recovered the .44-caliber revolver brandished by Hazelwood’s co-defendant during the robbery, but did not recover the gun used by Hazelwood. Hazelwood admitted that he participated in the robbery, but that he did not know that the undercover Special Agents were federal agents at the time of the robbery.
Hazelwood, and the government have agreed that if the Court accepts the plea agreement, Hazelwood will be sentenced to between seven and 15 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for March 29, 2019 at 2:00 p.m.
Hazelwood’s co-defendant, Donte Smith, age 33, of Baltimore, is scheduled for a rearraignment on Friday, October 19, 2018 at 2:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting the case.
Baltimore Heroin Dealer Linked to 27 Overdoses—9 of Them Fatal—Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Karon Elijah Peoples, age 24, of Baltimore, Maryland, today to 10 years in federal prison, followed by five years of supervised release, for a heroin distribution conspiracy. Peoples admitted that during his participation in the conspiracy, he was responsible for distributing, or facilitating the distribution of, between nine and 10 kilograms of heroin. In addition, Peoples admitted that nine fatal overdose victims and 18 overdose survivors had contacted Peoples’ phones prior to their overdose—either by phone call or text message—in order to arrange for the purchase of heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Harford County Sheriff Jeffrey Gahler and the other members of the Harford County Narcotics Task Force--Harford County State’s Attorney Joseph I. Cassilly, Colonel William M. Pallozzi, Superintendent of the Maryland State Police, Chief Henry Trabert of the Aberdeen Police Department, Chief Charles Moore of the Bel Air Police Department, and Chief Teresa Walter of the Havre de Grace Police Department; and Director Tom Carr of the Washington/Baltimore High Intensity Drug Trafficking Area (HIDTA).
“Heroin dealers like Karon Peoples sell death and despair. Heroin is one of the leading causes of death in Maryland—and many victims are teenagers,” said Maryland U.S. Attorney Robert K. Hur. “We will continue to work with our local, state, and federal partners to attack this problem from all sides to reduce overdose deaths. Federal defendants, like Karon Peoples, face stiff federal sentences, and there is no parole in the federal system.”
According to Peoples’ plea agreement, during the fall of 2017, law enforcement began conducting an investigation of Peoples after learning that he was supplying significant quantities of heroin to customers throughout Maryland who traveled to Baltimore City to obtain the heroin. As part of the investigation, law enforcement conducted controlled purchases and undercover purchases of heroin from Peoples.
On December 7, 2017, search warrants were executed at Peoples’ residence, at a stash location on West Lexington Street in Baltimore, and on his vehicle. Law enforcement recovered 900 grams of heroin; $405,156 in cash stored in a blue checkered Louis Vuitton bag; a Rolex watch; a money counter; and digital scales and other drug paraphernalia from the stash location. Law enforcement also recovered 68 grams of heroin from the vehicle.
On December 7, 2017, and on January 9, 2018, when Peoples was arrested as the result of a federal arrest warrant, law enforcement seized a total of 49 cellular phones from Peoples and the search locations. A court-authorized search of the phones revealed hundreds of text messages between Peoples, his co-conspirator, and his customers arranging for the acquisition, purchase, and sale of heroin. The text messages also established that Peoples was part of the conspiracy from no later than May 2015 until his arrest in January 2018.
The Harford County Narcotics Task Force and DEA coordinated with other federal, state, and local law enforcement agencies through the assistance of the HIDTA Investigative Support Center to collect information about customers of Peoples who were heroin overdose victims. After running searches for the 49 cellular telephones possessed by Peoples, law enforcement found links between cases involving a total of 27 overdose victims—nine who died as a result of the overdose and 18 who survived. The victims, who resided in Maryland, Pennsylvania, and West Virginia, had contacted Peoples’ drug phones prior to their overdoses in order to arrange for the purchase of heroin.
United States Attorney Robert K. Hur commended the DEA, the Harford County Narcotics Task Force, comprised of members of the Harford County Sheriff's Office, Maryland State Police, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department and the Harford County State’s Attorney’s Office, and the Washington/Baltimore HIDTA for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Derek E. Hines, who prosecuted the case.
Bailey Boys Gang Leader Sentenced to 40 Years in Federal Prison for His Involvement in Drug 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 a Kenneth Pettway, Jr., 34, of Buffalo, NY, who was convicted by a federal jury of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of crack cocaine, and possession with intent to distribute heroin and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm, was sentenced to serve 40 years in prison by U.S. District Judge Thomas J. McAvoy.
Assistant U.S. Attorneys Michael P. Felicetta and Seth T. Molisani, who handled the prosecution of the case, stated that the defendant was a leader of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. The gang is believed to be responsible for multiple acts of violence, including assaults, shootings, murders, and armed robberies.
As a leader of the Bailey Boys Gang, the defendant supplied illegal narcotics, including crack cocaine, heroin and marijuana, to members and associates of the gang for further distribution in the City of Buffalo. Pettway also provided multiple firearms to members and associates to be used for protection of gang territory, drugs and drug proceeds.
The evidence presented by the government during trial included a rap video entitled “Picked up in a Raid,” which the defendant created and posted to his You Tube account. The video, which purports to be based on a true story, contains images and lyrics related to the defendant’s drug distribution, the silencing of snitches, and the execution of a search warrant by law enforcement officers.
On January 18, 2012, a search warrant was executed at the residence of Demetrius Black residence on Roosevelt Avenue. Officers seized two firearms, heroin, cocaine, marijuana, scales, baggies, and other drug paraphernalia.
“Those who sell drugs and participate in violence on the streets of Buffalo should be on notice that my Office, with our federal, state, and local partners, are doubling down,” said U.S. Attorney Kennedy. “Last Friday, this defendant’s younger brother, Collins, was convicted of drug charges following a trial in a separate case in federal court. Kenneth has now learned that the next 40 years of his life will be spent in federal prison. Young men such as the Pettways, who insist on breaking the law, need to recognize that by engaging in this sort of criminal behavior, you are not only destroying your community, you are destroying your own families, and your own lives.”
Pettway is one of 15 Bailey Boys Gang leaders, members, and associates charged in this case. To date, 14 have been convicted.
Kenneth Pettway’s sentencing is the result of an ongoing investigation into the activities of the Bailey Boys Gang and other criminal gangs that is being conducted by the United States Attorney’s office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John J. Flynn; and in conjunction with the Buffalo Police Department, under the direction of Police Commissioner Byron Lockwood; the Federal Bureau of Investigation Safe Streets Task Force, under the Direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.# # # #
15 October 2018
Versailles Man Pleads Guilty to Illegally Possessing Nine Firearms Stolen from Pawn ShopRead the Press Release
JEFFERSON CITY, Mo. – A Versailles, Mo., man who stole nine firearms during the burglary of a local pawn shop pleaded guilty in federal court today for illegally possessing the firearms.
Joseph Marin Melendez, 47, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of firearms.
By pleading guilty today, Melendez admitted that he burglarized Ozark Gun & Pawn in Versailles during the early morning hours of July 22, 2016. Morgan County deputies recognized Melendez on the surveillance video. Melendez used a crowbar to pry open the front door of the store, walked behind the counter, grabbed several firearms then left the store.
Law enforcement officers executed a search warrant at Melendez’s residence. They recovered a Glock handgun with an Ozark Gun & Pawn price tag attached inside a minivan parked at the residence. Inside the residence, they recovered the remaining eight stolen firearms inside a white bucket underneath a wheelbarrow outside the residence.
The firearms included a Glock 9mm semi-automatic pistol, three Glock .40-caliber semi-automatic pistols, a Glock .357-caliber semi-automatic pistol, three Sturm Ruger .357-caliber magnum revolvers, and a Taurus .357-caliber magnum revolver.
Melendez is a convicted felon, and therefore prohibited by federal law from possessing any firearms or ammunition.
Under federal statutes, Melendez is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Morgan County, Mo., Sheriff’s Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Valley Springs Man Sentenced to 25 YearsRead the Press Release
FRESNO, Calif. — Nicholas Carroll Watkins, 30, of Valley Springs, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 25 years in prison, followed by 10 years of supervised release for receiving material involving the sexual exploitation of minors, U.S. Attorney McGregor W. Scott announced. Watkins will also be required to register as a sex offender.
According to a criminal complaint and sentencing documents, Watkins used Kik Messenger and SayHi, which are messaging applications based outside the United States, to engage in sexually explicit communications with other adults as well as numerous minor females. Watkins discussed his sexual interest in children and often solicited and received sexually explicit images directly from minors.
This case was the result of an investigation by the Miami, Florida and Stockton, California offices of the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
United States Attorney's Office for the Western District of Michigan Honored by Department of Defense for Support of Employees Serving in the Guard and ReserveRead the Press Release
GRAND RAPIDS, MICHIGAN – Michigan Employer Support of the Guard and Reserve (ESGR), a Department of Defense office, joined U.S. Attorney Andrew B. Birge in announcing today that the U.S. Attorney’s Office for the Western District of Michigan was honored with a Patriot Award in recognition of its extraordinary support of its employees serving in the United States military Reserve Components. U.S. Attorney Birge accepted the award on behalf of the office.
According to Paul Ryan, Michigan ESGR State Chair, “the Patriot Award was created by ESGR to publicly recognize individuals who provide outstanding patriotic support and cooperation to their employees, who like the citizen warriors before them, have answered their nation’s call to serve. U.S. Attorney Andrew Byerly Birge and the U.S. Attorney’s Office for the Western District of Michigan were nominated for being highly supportive of Reserve Service. Supportive supervisors are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units.”
U.S. Attorney Birge said, “I appreciate the sense of mission, focus and unique skills Service members bring to my office. At the same time, I understand that supportive employers are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units. We’ve embraced that supportive role here.”
ESGR, a Department of Defense office, seeks to foster a culture in which all employers support and value the employment and military service of members of the National Guard and Reserve in the United States. ESGR facilitates and promotes a cooperative culture of employer support for National Guard and Reserve service by developing and advocating mutually beneficial initiatives, recognizing outstanding employer support, increasing awareness of applicable laws and policies, resolving potential conflicts between employers and their service members, and acting as the employers’ principal advocate within the Department of Defense. Paramount to ESGR’s mission is encouraging employment of Guardsmen and Reservists who bring integrity, global perspective and proven leadership to the civilian workforce.
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United States Attorney Robert J. Higdon, Jr. Announces Progress in Making Our Communities Safer Through Project Safe Neighborhoods and the "Take Back North Carolina" InitiativeRead the Press Release
RALEIGH – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“During the course of my over 25 years as a federal prosecutor, I have seen the dramatic impact that PSN can have on reducing violent crime in our communities. Following the Attorney General’s lead, we directed the revitalization of the PSN program in this District and have fully staffed it with aggressive and skilled prosecutors who can take on these violent criminals, and those who would victimize our citizens and local businesses. To reduce violent crime and remove drug traffickers from our neighborhoods, our efforts must be real on the streets of the cities, towns, and counties across the District and cannot just be a reemphasis from Raleigh. As such, in March of this year, we implemented the Take Back North Carolina Initiative to mold our PSN program to address the specific violent crime problems that exist in eastern North Carolina.”
Take Back North Carolina is a partnership between the United States Attorney’s Office, District Attorney’s offices, and federal, state and local law enforcement agencies across the 44 counties of the district to combat violent crime, drug trafficking and crimes against law enforcement. This partnership includes 44 Sheriffs, 188 Police Departments, and 15 elected District Attorneys, and utilizes the regional assignment of Assistant United States Attorneys, strategic targeting, decentralized case intake authority, and public messaging. Regional prosecution teams have been given the responsibility of working directly with law enforcement on a sustained basis to reduce violent crime by targeting those organizations and individuals responsible for the increased violent crime rates and for introducing the poison of illegal drugs into those particular communities. Take Back North Carolina allows the entire district to have the full range of enforcement tools available through the federal court system, allows the regional teams to quickly route matters to federal court when prosecution in that venue would deliver the most significant impact, and protects and supports law enforcement officers who face unacceptable threat levels as they enforce the law.
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
- Warren T. Baker was sentenced to 408 months in federal prison in August 2018 for his armed robbery of a Starbucks in Fayetteville, NC, during which he confronted employees at gunpoint. Baker had a prior federal conviction for armed bank robbery. Read More
- Kelly Shadrome Anderson was sentenced to 120 months in federal prison in September 2018 after pleading guilty to being a felon in possession of a firearm. Fleeing an altercation during which he fired a gun in Wilson, NC, Anderson took a 4 year old child hostage inside a nearby house. Anderson had prior felony convictions for selling cocaine, breaking and entering, and assault on a female. Read More
- Charlie O’Bryant Terry was sentenced to 240 months in federal prison in July 2018 for obstruction of justice and illegal possession of a firearm. Terry assaulted and robbed a couple at gunpoint in Vance County – placing a pistol in one victim’s mouth, and cutting the other victim’s head by repeatedly hitting him with the firearm. Terry had a prior federal conviction for being a felon in possession of a firearm. Read More
- Joseph Luther Lewis was sentenced to 151 months in federal prison in August 2018 for possession of a firearm by felon and possession of a stolen firearm. After having a gunfight with a drug dealer in Fayetteville, NC, Lewis traveled to Robeson County and forcibly abducted his girlfriend at gunpoint – kicking and punching her when she attempted to escape. Lewis had prior felony convictions for possession with the intent to manufacture, sell, and deliver marijuana and conspiracy to commit robbery with a dangerous weapon. Read More
- David Kareem Turpin was sentenced to 240 months in federal prison in August 2018 for Hobbs Act robbery and brandishing a firearm in furtherance of a crime of violence. Turpin robbed Walmart, Food Lion, and Family Dollar stores in Raleigh, NC during which he brandished a firearm and abducted and threatened employees. Read More
- John Devere Battle was sentenced to 1,272 months in federal prison this month for robbing several convenience stores in Cary, NC, as well as his role in committing a home invasion during which the victims were robbed, tied up, pistol-whipped, threatened, and forced to withdraw money from a bank. Battle had prior felony convictions for breaking and entering and being a felon in possession of a firearm. Read More
Community Partnerships
- As a complement to the Take Back North Carolina enforcement strategy, the United States Attorney’s Office works with law enforcement to develop the most effective public messaging strategies for each community. Over the past year, this has included reentry programs; community engagement movie nights; school-based educational programs for children about the prevention of gun violence and bullying; and, call-in meetings with individuals identified to be at-risk of committing future violent acts. These meetings are conducted in partnership with federal, state and local law enforcement; community-based social service providers; business leaders; and the faith-based community to communicate a deterrence message by describing focused enforcement efforts and to link those individuals to services to address the root causes of violence and recidivism.
- Operation Ceasefire administered by Fayetteville Police Department under the PSN program in partnership with the United States Attorney’s Office, utilizes a three-tiered approach of prevention, intervention, and suppression to reduce gun and gang violence with goal of improving the quality of life for all residents of Cumberland County. Read more. In the last year, through Operation Ceasefire over 100 offenders participated in the above described call-in meetings; over 2,000 people attended movie nights engaging with law enforcement and community leaders; and, over 3,300 students participated in the Educating Kids about Gun Violence Program in Cumberland County schools. Read More
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- Here in the Eastern District of North Carolina, we are seeing direct results of the PSN revitalization. Since the implementation of the Take Back North Carolina Initiative, our prosecutors have charged over 250 violent offenders and drug traffickers, many of whom have prior felony convictions. In addition, during this one year period, in Fayetteville, NC, homicides by use of a firearm have decreased by 23% and the number of firearms seized increased by 17%.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
United States Attorney Announces Appointment of Three New Federal ProsecutorsRead the Press Release
U.S. Attorney Erin Nealy Cox is pleased to announce the appointment of three new Assistant United States Attorneys: Jon Bradshaw, assigned to the Dallas Appellate Division, Levi Thomas, assigned to the Fort Worth Criminal Division, and Linda Requenez, assigned to the Dallas Criminal Division’s Narcotics & OCDETF section.
All three prosecutors were sworn in on October 15 before Chief U.S. District Judge Barbara M.G. Lynn.
A graduate of Texas A&M University and the University of Denver Sturm College of Law, Mr. Bradshaw joins the U.S. Attorney’s Office from the United States District Court of the Northern District of Texas, where he served as a Staff Attorney focusing on the habeas docket. He also worked as an Attorney at the United States Court of Appeals for the Third Circuit. Mr. Bradshaw’s father was a police officer for 39 years; his son shares his father’s dedication to law enforcement and public service.
Mr. Thomas, who will focus on immigration cases, formerly served as an Attorney at the U.S. Department of Homeland Security’s Immigration and Customs Enforcement (ICE) division. Before that, he served as a Law Clerk for the U.S. Court of Appeals for the Fifth Circuit under the Honorable Catharina Haynes, and for the U.S. District Court for the Eastern District of Texas under the Honorable Zack Hawthorn. He earned his undergraduate degree from Texas A&M University and his J.D. from New York University School of Law.
An alumna of the University of Texas and Texas Southern University’s Thurgood Marshall School of Law, Ms. Requenez returns to the Northern District of Texas from the Southern District of Texas, where she prosecuted a range of violent crimes. During a previous stint in Dallas, she served as an AUSA here at the U.S. Attorney’s Office and as an Assistant Criminal District Attorney for Dallas County Criminal District Attorney’s Office.
“I’m proud to have these excellent attorneys on our teams in Dallas and Fort Worth,” said Nealy Cox. “I know they will fight for justice in North Texas.”
Two illegal aliens sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Two men in the United States illegally were sentenced today for drug charges, United States Attorney Bill Powell announced.
Hsun Jung Chang, age 30, was sentenced to four months incarceration. Shougi Li, age 24, was sentenced to four months incarceration. Each pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Marijuana” in July 2018. The men admitted to possessing marijuana in Ohio County in May 2018.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the cases on behalf of the government. The West Virginia State Police and the Ohio County Sheriff’s Office investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Two Fresno Men Plead Guilty to Firearms and Money Laundering OffensesRead the Press Release
FRESNO, Calif. — On Monday, Vonshay Robinson, 31, pleaded guilty to conspiracy to traffic firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2015 and October 2016, Robinson illegally purchased and sold firearms to others, including a .22 caliber gun he sold to an undercover agent on March 25, 2016, for $1,000.
Another defendant in a related case, Jesus Roberto Velazquez Juarez, 25, also pleaded guilty on Monday to money laundering. According to court documents, Velazquez Juarez sold firearms and methamphetamine to others, including a 9mm automatic blank pistol modified to fire live ammunition and approximately 3 grams of methamphetamine to the same customer in October 2016.
Robinson and Velazquez Juarez were arrested on November 3, 2016, along with 18 other defendants following a year-long multi-agency investigation that targeted criminal street gangs in Fresno. Other defendants also have pleaded guilty to various firearms and drug offenses, including:
Devone Johnson, 32, and Anthony Thomas, 26, pleaded guilty on August 13, 2018, to unlawfully possessing a firearms. They are scheduled to be sentenced on October 29, 2018.
Garry Sampson, 40, pleaded guilty on August 1, 2018, to unlawfully possessing a firearm. He is scheduled to be sentenced on October 22, 2018.
Raymond Jones, 61, pleaded guilty on August 6, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
Danny Valenzuela, 51, pleaded guilty on July 30, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
Stephen Hill, 28, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On December 18, 2017, Hill was sentenced to two years and eight months in prison.
Rashad Halford, 31, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On March 12, 2018, Halford was sentenced to two years and two months in prison.
These cases are the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the California Department of Justice’s Bureau of Investigation Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno Police Department, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, and the California Highway Patrol Special Operations Unit (SOU). The Fresno County Sheriff’s Office, the Clovis Police Department, Fresno County Probation, and the California Highway Patrol assisted in the investigation. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the cases.
Robinson and Velazquez Juarez are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 7, 2019, and January 22, 2019, respectively. Robinson faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. Velazquez Juarez faces a maximum statutory penalty of 20 years in prison and a $500,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The Organized Crime Drug Enforcement Task Force (OCDETF) was involved in the investigation of many of these cases. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN 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.
Syndicato De Nuevo Mexico Prison Gang Associate Sentenced to 14 Years for Conviction on Racketeering and Assault ChargesRead the Press Release
ALBUQUERQUE – Mauricio Varela, 48, of Silver City, N.M., was sentenced today in federal court in Las Cruces, N.M., to 168 months of imprisonment followed by three years of supervised release for his conviction on racketeering and assault charges.
Varela and his three co-defendants, David Calbert, 42, Robert Martinez, 54, and Mario Rodriguez, 33, were charged with racketeering offenses in a four-count indictment filed in Dec. 2015. The indictment charged the four defendants with participating in a criminal organization known as the Syndicato de Nuevo Mexico (SNM) Prison Gang that engaged in acts of violence and other criminal activities, including murder, kidnapping, attempted murder, conspiracy to manufacture and distribute narcotics, and firearms trafficking. The indictment alleged that the defendants were members and associates of the SNM Prison Gang, a statewide gang operating in New Mexico prisons and in communities throughout the state. According to the indictment, the SNM Prison Gang was formed in the early 1980s at the Penitentiary of New Mexico after the prison riot in Feb. 1980, and expanded throughout the New Mexico penal system. The indictment alleged that gang members and associates are expected to remain loyal to the Gang and work to further its objectives after they have completed their prison sentences and those who do not are subject to violent forms of discipline. According to the indictment, significant goals of the SNM Prison Gang included controlling and profiting from drug trafficking both within and outside the penal system; intimidating and influencing other gangs for the purpose of expanding the network for its illegal activities; and engaging in violence to assert its gang identity and protect its territory.
The indictment charged Varela and Calbert with conspiring to murder an individual referred to as P.S. in March 2011, and with assaulting P.S. with a deadly weapon on March 14, 2011. It also charged Martinez and Rodriguez with conspiring to murder an individual referred to as A.S., in June 2011, and with assaulting A.S. resulting in serious bodily injury on June 24, 2011. The indictment charged the four defendants with committing the offenses in Santa Fe County, N.M.
On Oct. 19, 2017, Varela pled guilty to assault with a dangerous weapon in aid of the racketeering enterprise. In entering the guilty plea, Varela admitted that in 2000, while incarcerated in the New Mexico Department of Corrections, he became a member of the SNM Prison Gang and thus became engaged in racketeering activity. Varela further admitted that in March 2011, he and another SNM Prison Gang member assaulted P.S. by hitting and holding P.S. while the other SNM member stabbed P.S. with a dangerous weapon, which resulted in serious bodily injury to P.S. Varela acknowledged committing this assault because of his SNM membership and to increase his status within the Prison Gang.
Varela’s three co-defendants have previously entered guilty pleas and are awaiting sentencing.
This case was investigated by Albuquerque Division of the FBI with assistance from the New Mexico Corrections Department, New Mexico State Police, Bernalillo County Sheriff’s Office, Metropolitan Correctional Center, Albuquerque Police Department, U.S. Marshals Service, and the El Paso, Phoenix, Denver, Las Vegas and Knoxville FBI Divisions. Assistant U.S. Attorneys of the U.S. Attorney’s Office for the District of New Mexico are prosecuting the case.
Stanford Man Sentenced to 30 Months for Computer Intrusion CrimesRead the Press Release
LEXINGTON, Ky. – Colton Grubbs, 21, of Stanford, Kentucky, was sentenced to 30 months in federal prison, by United States District Judge Joseph M. Hood, for conspiracy to unlawfully access computers in furtherance of a criminal act, conspiracy to commit money laundering, and the illegal removal of property to prevent its lawful seizure.
Grubbs previously admitted to designing, marketing, and selling a software, called LuminosityLink, that Grubbs knew would be used by some customers to remotely access and control their victims’ computers without the victims’ knowledge or consent. Among other malicious features, LuminosityLink allowed Grubbs’ customers to record the keys that victims pressed on their keyboards, surveil victims using their computers’ cameras and microphones, view and download the computers’ files, and steal names and passwords used to access websites. Directly and indirectly, Grubbs offered assistance to his customers on how to use LuminosityLink for unauthorized computer intrusions through posts and group chats on websites such as HackForums.net. In his plea agreement, Grubbs admitted to selling this software for $39.99 apiece to more than 6,000 customers. These customers, and their victims, were located throughout the United States and around the world.
“Our modern society is dependent on computers, mobile devices, and the use of the internet,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “People simply have to have confidence in their ability to use these modern instruments to transact their business, privately communicate, and securely maintain their information. It is essential that we vigorously prosecute those who erode that confidence and illicitly gain access to computer systems and the electronic information of others. Everyone benefits when this deceitful conduct is discovered, investigated, and prosecuted.”
“The sentence announced today would not have been possible without the cooperation of our partners in the private sector and international law enforcement, specifically the Palo Alto Networks Unit 42 and the United Kingdom’s Southwest Regional Cyber Crime Unit,” said Michael A. Christman, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Division. “The FBI is committed to strengthening these relationships and finding innovative ways to counter cybercrime. Cybercrime is worldwide epidemic, and this case is an example how strong partnerships can hold criminals accountable no matter where they are.”
Under federal law, Grubbs must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a term of three years. In addition to his sentence of incarceration, Grubbs must also forfeit the proceeds of his crimes, including 114 bitcoin, presently valued at more than $725,000, which was seized by the Federal Bureau of Investigation.
United States Attorney Duncan and Special Agent in Charge Christman jointly made the announcement. The case was investigated by the FBI and additional assistance was provided by Palo Alto Networks Unit 42 the United Kingdom’s Southwest Regional Cyber Crime Unit.
Springfield Man Sentenced to 10 Years in Federal Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LAPRESE GOLLMAN, 43, of Springfield, Massachusetts, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by eight years of supervised release, for trafficking cocaine.
According to court document and statements made in court, on May 30, 2018, GOLLMAN was arrested after he drove to New Haven in an attempt to purchase four kilograms of cocaine. Investigators seized $100,000 from GOLLMAN at the time of his arrest.
GOLLMAN has been detained since his arrest. On July 16, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 500 grams or more of cocaine.
On June 23, 2008, GOLLMAN was sentenced in the District of Massachusetts to 126 months of imprisonment, followed by eight years of supervised release, for trafficking cocaine. He was released from federal prison in December 2014 and was on federal supervised release at the time of his arrest in May 2018. Judge Bolden sentenced GOLLMAN to a concurrent 30-month prison term for violating the conditions of his supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven and Hamden Police Departments. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
South Jersey Woman Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – An Ocean County, New Jersey, woman today admitted defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
Kristie Masucci, 36, of Cedar Run, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through February 2016, Masucci served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Masucci and conspirators working under her recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Masucci’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Masucci and other members of the conspiracy.
Masucci’s conspirators would then cause the prescriptions to be signed by a doctor who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the information, the Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $1.88 million for prescriptions submitted by Masucci and her cohorts. Masucci received $388,608 for her role in the scheme.
Masucci faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 5, 2019. As part of her plea agreement, Masucci must forfeit her criminal proceeds and pay restitution in an amount to be determined at sentencing.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and R. David Walk, Jr. of the U.S. Attorney’s Office in Camden.
Defense counsel: Amy Luria Esq., Roseland, New Jersey
South Bay Doctor Indicted for Unlawfully Distributing Hydrocodone and Health Care FraudRead the Press Release
SAN JOSE– A federal grand jury has indicted South Bay doctor Venkat Aachi, charging him with distributing hydrocodone outside the scope of his professional practice and without a legitimate medical need, and with health care fraud related to the submission of false and fraudulent claims regarding the health care benefits, announced United States Attorney Alex G. Tse, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan.
According to the indictment filed October 9, 2018, and unsealed Friday, October 12, 2018, on six occasions from November 27, 2017, through March 5, 2018, Aachi, 52, of Saratoga, Calif., was a licensed physician in the state of California when he knowingly distributed hydrocodone to two individuals knowing that the distribution was outside the scope of his professional practice and not for a legitimate medical purpose. Further, on July 2, 2018, Aachi allegedly submitted to an insurance company a false and fraudulent claim for payment for healthcare benefits, items, and services.
In sum, Aachi is charged with six counts of distributing drugs outside the scope of professional practice, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of health care fraud, in violation of 18 U.S.C. § 1347.
An indictment merely alleges that crimes have been committed, and Aachi, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years imprisonment and a fine of $1,000,000, for each count of illegal distribution of hydrocodone. In addition, if convicted, the defendant faces 10 years in prison and $250,000 for the violation of 18 U.S.C. § 371. Additional fines, restitution, and additional periods of supervised release also could be ordered at sentencing. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Aachi made an initial appearance on October 12, 2018, before U.S. Magistrate Judge Virginia K DeMarchi. At that time, he was arraigned on the indictment, entered a plea of not guilty, and was released on bond. Aachi is scheduled to appear next before Magistrate Judge DeMarchi on October 22, 2018, for a further bond hearing.
Assistant U.S. Attorney Shailika Kotiya is prosecuting the case with the assistance of Rawaty Yim. This prosecution is the result of investigations by the DEA, FBI, HHS-OIG, and the California Department of Justice Bureau of Medi Cal Fraud and Elder Abuse (BMFEA). Through the BMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Sidney Man Sentenced to 3½ Years for Heroin and Crack Trafficking Conspiracy and Maintaining a Drug-Involved PremisesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Derek Blake, 32, of Sidney, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr., to 3½ years in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack,” and maintaining a drug-involved premises.
According to court records, between June 2015 and March 2017, Blake conspired with others to acquire heroin and crack in Rochester, New York and transport it to Central Maine for distribution. The defendant assisted Rochester dealers in distributing the drugs from his Sidney residence, served as a “middle-man” for drugs deals, introduced dealers to drug customers in Central Maine and provided transportation for the dealers and their drugs.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Sidney Man Sentenced to 3½ Years for Heroin and Crack Trafficking Conspiracy and Maintaining a Drug-Involved PremisesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Derek Blake, 32, of Sidney, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr., to 3½ years in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack,” and maintaining a drug-involved premises.
According to court records, between June 2015 and March 2017, Blake conspired with others to acquire heroin and crack in Rochester, New York and transport it to Central Maine for distribution. The defendant assisted Rochester dealers in distributing the drugs from his Sidney residence, served as a “middle-man” for drugs deals, introduced dealers to drug customers in Central Maine and provided transportation for the dealers and their drugs.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Sex Offender Sentenced for Failing to Register in NebraskaRead the Press Release
United States Attorney Joe Kelly announced that Sire English, 26, was sentenced for failing to register as a sex offender. The Honorable Robert F. Rossiter, Jr., sentenced English to 15 months of imprisonment. There is no parole in the federal system. After his release from prison, English will being a five-year term of supervised release.
English was convicted in Pottawattamie County, Iowa, of enticing a minor. This 2013 conviction required English to register as a sex offender for ten years. He had registered in Iowa and later in Arkansas before moving to Omaha in December, 2016. He did not register with the Nebraska Sex Offender Registry and was arrested by the United States Marshal’s Office in June, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Salinas Resident Charged with Attempted Murder and Related Crimes in Salinas Gang CaseRead the Press Release
SAN JOSE - A federal grand jury indicted Kristopher Purcell, aka “K-Dawg,” charging him with two counts of attempted murder in aid of racketeering; two counts of assault with a dangerous weapon in aid of racketeering; and one count of use of a firearm during and in relation to, or possession in furtherance of, a crime of violence, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
The indictment was filed October 11, 2018, and was unsealed earlier today. According to the indictment, Purcell, age 20, of Salinas, is accused of attempting to murder two victims on Orchard Avenue in Salinas, on February 12, 2017, in an attempt to enhance his status with the Nuestra Familia prison gang and its subservient Norteno street gangs. The indictment describes how Norteno gang members earn promotion and prestige by proving themselves through the commission of criminal activities, including acts of violence such as murder and attempted murder. In fact, according to the indictment, a Norteno gang member is expected to “hunt” – that is, seek out and beat, stab, or shoot – any rivals.
Further, Purcell is charged with two counts of assault with a dangerous weapon as a result of the same February 12, 2017 shooting. The fifth charge in the indictment relates to Purcell’s alleged use of a firearm during the attack. In sum, Purcell is charged with two counts of attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); two counts of assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3); and one count of use of a firearm during and in relation to, or possession in furtherance of, a crime of violence, in violation of 18 U.S.C. § 924(c).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted of either count of attempted murder, Purcell faces a maximum prison term of 10 years and a maximum fine of $250,000. If convicted of either count of assault with a dangerous weapon, Purcell faces a maximum prison term of 20 years and a maximum fine of $250,000. If convicted of the firearm offense, Purcell faces a mandatory minimum sentence of 10 years in prison and a maximum prison term of life in prison, to run consecutive to any other sentence imposed in this case. The firearms offense also carries a maximum fine of $250,000. 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.
Purcell made an initial appearance this afternoon before U.S. Magistrate Judge Susan van Keulen. He remains in custody and is next scheduled to appear before U.S. Magistrate Judge Virginia K. DeMarchi for a hearing to determine whether he will be detained pending disposition of this case.
The prosecution is the result of an investigation by the FBI, with assistance from the California Highway Patrol and the Salinas Police Department.
Members of the public who have information regarding gang-related activities are encouraged to contact FBI San Francisco Division at 415-553-7400.
Riverside Man Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Riverside, Mo., man was sentenced in federal court today for sharing child pornography over the internet.
Christopher G. Brenner, 36, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years in federal prison without parole. The court also sentenced Brenner to a lifetime of supervised release following incarceration.
On Oct. 25, 2017, Brenner pleaded guilty to attempting to distribute child pornography over the internet. Brenner admitted that he used a peer-to-peer file-sharing network to share videos and images of child pornography. An undercover federal agent identified Brenner’s computer and downloaded three videos of child pornography, including particularly graphic and extremely violent videos, one of which was a 39-minute compilation of video clips. Law enforcement officers executed a search warrant at Brenner’s residence on May 15, 2013, and seized a desktop computer and electronic media.
Investigators determined that Brenner’s electronic media contained 46 images and 27 videos of child pornography, including a video of a baby being sexually assaulted. There was also evidence of additional downloads of child pornography, and indications that Brenner had logged into a website known to contain child pornography.
After Brenner’s arrest, he violated the conditions of his pretrial release by accessing the internet to search terms associated with child pornography. Brenner’s bond was revoked in June 2017 and he has been detained in federal custody since then.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Restaurant Owner Sentenced for Failing to Report Nearly $1.5 Million in Business ReceiptsRead the Press Release
BOSTON – The owner of a well-known Salem restaurant, King’s Roast Beef Inc., was sentenced today for failing to report or pay taxes on nearly $1.5 million in income from the business.
John Kalantzis, 52, of Lynn, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison, one year of supervised release, and ordered to pay a fine of $25,000. Prior to the sentencing hearing, Kalantzis paid restitution of $383,238 to the IRS. In July 2018, Kalantzis pleaded guilty to two counts of aiding and assisting in filing a false tax return.
During tax years 2011 through 2015, Kalantzis underreported the gross receipts and expenses of King’s Roast Beef in order to improperly reduce the federal income taxes owed by the restaurant. Kalantzis did so by diverting some of the restaurant’s cash receipts to himself, paying for some of the restaurant supplies with cash, and paying a portion of his employees’ wages in cash. Kalantzis then failed to report this conduct to his tax preparer. As such, during each of the tax years 2011 through 2015, Kalantzis failed to report cash receipts of about $300,000 and cash expenses of approximately $120,000 on King’s Roast Beef’s tax returns. As a result, Kalantzis failed to report a total of $855,000 in business income to the IRS during those years, thereby avoiding paying corporate and personal taxes of $383,000.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Recent Prosecutions of Firearms Offenses in Fresno CourtRead the Press Release
FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime, U.S. Attorney McGregor W. Scott announced the following cases involving illegal firearms offenses.
Richard Reyes, a 37-year-old resident of Fresno, was sentenced today by United States Chief District Judge Lawrence J. O’Neill to nine years and two months in prison for being a felon in possession of a firearm. According to court documents, on March 21, 2017, Reyes crashed his vehicle into another car and fled the scene of the accident. Police found him a few houses away. In Reyes’s car, police found a short-barreled rifle and a sawed-off shotgun, along with ammunition. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fresno Police Department. Assistant United States Attorney Ross Pearson prosecuted the case.
Delwyn Gladney, a 49-year-old resident of Fresno, was sentenced today by United States Chief District Judge Lawrence J. O’Neill to seven years in prison for being a felon in possession of a firearm. According to court documents, Gladney was riding his bicycle without a front light on February 26, 2017. Police officers attempted to stop him, but he rode away. They followed him to a nearby parking lot, where they saw him place a gun behind a parked car. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fresno Police Department. Assistant United States Attorney Ross Pearson prosecuted the case.
Miguel Saldate, a 42-year-old resident of Modesto, pleaded guilty today to being a felon in possession of a firearm. According to court documents, police officers came to search Saldate’s house and observed him drop a firearm near a shed. Saldate is scheduled to be sentenced by United States Chief District Judge Lawrence J. O’Neill on January 14, 2019. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stanislaus County Sheriff’s Department. Assistant United States Attorney Ross Pearson is prosecuting the case.
Daniel Sandoval-Arce, a 42-year-old resident of Turlock, pleaded guilty today to being an illegal alien in possession of a firearm. According to court documents, police officers searched a house in Turlock, where they found Sandoval-Arce in possession of firearms and a military-grade 60-millimeter mortar round. Sandoval-Arce is scheduled to be sentenced by United States District Judge Dale A. Drozd on January 7, 2019. This case is the product of an investigation by Homeland Security Investigations and the Turlock Police Department. Assistant United States Attorney Ross Pearson is prosecuting the case.
Salvador Tarango, 35, of Bakersfield, pleaded guilty today to possession of an unregistered firearm. According to court documents, on March 7, 2018, Bakersfield Police Officers responded to a call reporting shots fired in the early morning hours. Officers found shell casings in the defendant’s driveway. During a search, officers found an unregistered weapon made from a rifle with a barrel of less than 16 inches in length. A partially-loaded, high capacity magazine was found in close proximity to the weapon. Tarango is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on January 22, 2019. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bakersfield Police Department. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
Orasio Fierro, 27, of Winton, was sentenced last week by United States Chief District Judge Lawrence J. O’Neill to four years and eleven months in prison for being a felon in possession of a firearm. According to court documents, on multiple occasions between January 2017 and May 2017, Fierro sold firearms to an alleged gang member, including two AR-15-type rifles. Fierro pleaded guilty to the offense in June 2018. This case was the product of an investigation by the Federal Bureau of Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California Department of Justice Special Operations Unit. Assistant United States Attorneys Ross Pearson and Kimberly A. Sanchez prosecuted the case.
Bryan Mancia, 31, of Fresno, was sentenced on October 10, 2018, by U.S. District Judge Dale A. Drozd to 2 years in prison for being a felon in possession of a firearm. In June 2018, Mancia pleaded guilty to the charge. According to court documents, Mancia had a firearm in his pocket during an encounter with police. This case was the product of an investigation by the Fresno Sheriff’s Office and Homeland Security Investigations. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
The Organized Crime Drug Enforcement Task Force (OCDETF) was involved in the investigation of many of these cases. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Randallstown Man Sentenced to 40 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced John Michael Fowler, age 28, of Randallstown, Maryland, today to 40 years in federal prison for four counts of sexually abusing a minor in order to produce visual images of the abuse, and one count of possession of child pornography, followed by 30 years of supervised release. Judge Bennett also ordered that, upon his release from prison, Fowler must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
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; Interim Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore State’s Attorney Marilyn Mosby.
“John Fowler is a sexual predator who committed horrific acts against innocent children,” said U.S. Attorney Robert K. Hur. “This sentence demonstrates our commitment to protect our children and to hold accountable those who endanger them. As there is no parole for federal sentences, we have removed the threat of Mr. Fowler from our community.”
According to his indictment and other court documents, Fowler sexually abused two young girls and took videos and photos documenting the abuse. Specifically, in 2013 and 2014 Fowler sexually abused a girl who was six years old when the abuse began. Fowler photographed the abuse and those sexually explicit images were found during a search of his Randallstown home on February 16, 2017. Fowler admitted that he also abused an eight-year-old girl, whom Fowler thought was sleeping, using his mobile phone to produce sexually explicit images of the girl.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.Prominent Atlanta attorney convicted of embezzling millions of dollarsRead the Press Release
ATLANTA - A federal district court jury convicted Nathan E. Hardwick IV of twenty-one counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of making false statements to a federally insured financial institution on October 12, 2018.
“Hardwick was motivated by unadulterated deceit and greed when he blatantly violated the trust placed in him by embezzling millions of dollars from his clients and partners,” said U.S. Attorney Byung J. “BJay” Pak. “The extravagant lifestyle that Hardwick enjoyed at the expense of others will now be traded for time in prison.”
“This case is especially troubling given the illegal actions were orchestrated by a lawyer who swore an oath to uphold the law and represent his clients with integrity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The magnitude of theft Hardwick is convicted of merits a lengthy sentence, one that will hopefully send a message that the FBI and U.S. Attorney’s Office will not tolerate this type of white-collar crime.”
According to U.S. Attorney Pak, the charges and other information presented in court: Hardwick and Asha Maurya engaged in a scheme to defraud MHSLAW, Inc. and its subsidiaries, Morris Hardwick Schneider, LLC and LandCastle Title, LLC, (collectively referred to as “MHS”). MHS owned and operated a law firm that specialized in residential real estate closings and foreclosures, and it ran a title business. MHS employed approximately 800 people in 16 states. Hardwick was the managing partner of the law firm and the CEO of the title business. He also ran the law firm’s closing division, which was based in Atlanta. Maurya managed MHS’s accounting operations under Hardwick's supervision and control.
In early 2007, Hardwick and his law partners sold off part of their business, and Hardwick pocketed approximately $11.8 million. Hardwick quickly squandered that money, and by the end of 2010 he was broke and deeply in debt.
From January 2011 through August 2014, Hardwick siphoned off more than $26 million from MHS’s accounts to pay his personal debts and expenses and to finance his extravagant lifestyle. More than $19 million of that was client money that was stolen from MHS’s attorney trust accounts. Hardwick spent approximately $18.5 million of the fraud proceeds on gambling, private jets, and more than 50 different social companions.
MHS’s audited financial statements showed that the firm’s combined net income from 2011 through 2013 was approximately $10 million. During that same three-year period, Hardwick took more than $20 million out of the firm’s accounts.
Hardwick and Maurya conspired to cover-up the fraud and made numerous false statements to Hardwick’s law partners concerning the amount of money that Hardwick was taking out of the firm.
Hardwick and Maurya were originally indicted by a federal grand jury on February 9, 2016. The original indictment charged Hardwick and Maurya with conspiracy, wire fraud, and bank fraud. It also charged Hardwick with making false statements to a federally insured financial institution and charged Maurya with mail fraud. Maurya pled guilty to conspiracy on May 11, 2017. The grand jury returned a superseding indictment against Hardwick on December 5, 2017, charging him with conspiracy to commit wire fraud, wire fraud, and making false statements to a federally insured financial institution.
Hardwick’s trial began on September 17, 2018 and was presided over by U.S. District Judge Eleanor L. Ross. On October 12, 2018, after deliberating approximately nine hours, the jury convicted Hardwick on all counts.
Nathan E. Hardwick IV, 53, of Atlanta, Georgia, and Asha R. Maurya 43, of Atlanta, Georgia will be sentenced at a later date.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Russell Phillips; Doug Gilfillan, Chief of the Cyber & Intellectual Property Crime Section; and Lynsey Barron are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Poteau Man Pleads Guilty to Drug Conspiracy, Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joe David White, age 58, of Poteau, Oklahoma, entered a guilty plea to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 nor more than 40 years imprisonment, a fine up to $5,000,000.00, or both; and for Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment alleged that beginning on or about a date uncertain in 2015 and continuing until on or about January 9, 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 841, as follows: possession with intent to distribute and distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleges on various dates from on or about December 15, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Poteau Police Department, the District 16 Narcotics Task Force, and the Oklahoma Bureau of Narcotics.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Pittsburgh Man Sentenced to Prison for Falsifying Firearms Purchase FormsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to two years and six months in prison, followed by three years supervised release, on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Duane Manuel, 25, of Pittsburgh, Pennsylvania.
According to information presented to the court, on September 19, 2017, Manuel falsified firearms purchase forms at Island Firearms during his purchase of two firearms. Manuel also falsified firearms purchase forms on September 10, 2017, at Island Firearms; on September 1, 2017, at Anthony Arms; on July 31, 2017 at Anthony Arms; July 1, 2017 at Justin’s Gun Shop; on June 16, 2017, at Anthony Arms; on June 10, 2017, at Anthony Arms and Island Firearms; and on June 4, 2017, at Anthony Arms. Overall, Manuel purchased 15 firearms, and falsely stated that he was purchasing the firearms for himself. In fact, he purchased the firearms at the direction of other persons, intending to deliver the firearms to those individuals.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Manuel. 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 a 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.
Over 31,000 South Carolina Students to Participate in State’s 17th Annual National Day of Concern & Student Pledge Against Gun ViolenceRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon stated today that on Wednesday, October 17, 2018, the United States Attorney’s Office (USAO), along their local, state, and federal law enforcement partners, will visit schools across South Carolina to meet with students as a part of South Carolina’s 17th Annual Student Pledge Against Gun Violence. With a focus on keeping their schools and communities safe, students in middle school and high school are signing a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children are making a simpler commitment, pledging that if they see a gun they will not touch it, they will tell a teacher or a trusted adult, and they will assume that any gun they see might be loaded.
The Student Pledge Against Gun Violence is a national program that recognizes the role young people, through their own decisions, can play in reducing gun violence. The program provides a means for beginning the conversation with young people about gun violence and encourages important conversation among young people about gun safety and respectful ways to resolve disputes. Students from around the country will join together in pledging to do their part. For additional information concerning the pledge, visit the national Student Pledge website at www.pledge.org .
As it has done since 2002, the USAO reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. This pledge effort is part of Project CeaseFire, which is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a national 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. One year ago, 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 USAOs to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The following South Carolina schools and local law enforcement agencies are participating in this year’s pledge on October 17th. A total of 59 schools across the state are participating in this year’s pledge event, some of which requested speakers for their pledge event, as noted below with an “asterisk”. For information on events scheduled for a particular school, please contact that school directly. The USAO would like to thank the FBI, ATF, and United States Marshals Service for their assistance in providing speakers to the 28 requesting schools. For additional information concerning the pledge, visit the national Student Pledge web site at www.pledge.org.
Participating Schools
A.J. Lewis Greenview Elementary School – Columbia*
Austin Middle School – Summerville*
A. R. Lewis Opportunity School - Pickens
Applied Technology Center – Rock Hill
Battery Creek High School – Beaufort*
Beaufort Middle School – Beaufort*
Blacksburg Middle School -Blacksburg*
Burke High School – Charleston*
C.E. Williams Middle School - Charleston
Cane Bay Middle School - Summerville
Castle Heights Middle School – Rock Hill
Cheraw Intermediate School – Cheraw*
Clover 9th Grade Campus - Clover
Clover High School - Clover
Dutchman Creek Middle School – Rock Hill
Forest Heights Elementary School – Columbia*
Gilbert High School – Gilbert*
Gold Hill Middle School – Tega Cay
Greer High School - Greer
Hardeeville - Ridgeland Middle School - Ridgeland*
Hilton Head High School – Hilton Head
Hilton Head Island Middle School – Hilton Head Island
James Island Charter High School – James Island
Ladson Elementary - Ladson
Lee Central High School - Bishopville
Liberty Elementary School – Liberty*
Lemira Elementary School - Sumter
Longleaf Middle School - Columbia*
Macedonia Middle School – Moncks Corner*
McCormick High School - McCormick*
McCormick Middle School - McCormick*
Midlands Art Conservatory - Columbia*
Myrtle Beach High School – Myrtle Beach
Myrtle Beach Middle School – Myrtle Beach
North Augusta Middle School – North Augusta
Northwest Elementary School - Gaffney*
Northwestern High School – Rock Hill
Oakbrook Middle School - Ladson
Oakridge Middle School – Clover
Ocean Drive Elementary School – Myrtle Beach
Paul Knox Middle School – North Augusta
Pepperhill Elementary School - Charleston*
Pine Grove Elementary School - Columbia*
Pine Ridge Middle School – West Columbia
Rawlinson Road Middle School – Rock Hill
Richland One Middle College - Columbia*
Robert Small International Academy - Beaufort
Rock Hill High School – Rock Hill*
South Pointe High School – Rock Hill
St. George Middle School – St. George*
St. James - Santee Elementary Middle School - McClellanville*
St. James Intermediate School - Charleston
St. John's High School – John’s Island*
Sullivan Middle School – Rock Hill
Summerville High School - Summerville*
Ware Shoals Primary School –Ware Shoals*
Washington Street Elementary -Hartsville*
W.J. Keenan High School - Columbia
Whale Branch Early College High School - Seabrook*
Whale Branch Middle School – Seabrook
Participating Local Law Enforcement Agencies
Beaufort Police Department
Beaufort County Sheriff’s Office
Berkeley County Sheriff’s Office
Charleston County Sheriff’s Office
Charleston Police Department
City of Charleston Department of Police
Columbia Police Department
Greenwood County Sheriff’s Department
Greer Police Department
Hardeeville Police Department
McCormick Sheriff’s Department
Midlands Technical College
Myrtle Beach Police Department
North Augusta Department of Public Safety
North Charleston Police Department
Pickens County Sheriff’s Office
Richland County Sheriff’s Department
Rock Hill Police Department
St. George Police Department
Summerville Police Department
Sumter Police Department
Tega Cay Police Department
Town of Summerville
York County Sheriff’s Office
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Ohio Businessman Sentenced to Prison for Tax FraudRead the Press Release
A Germantown, Ohio businessman who controlled the operation of an anti-aging skincare business in Dayton, Ohio was sentenced to 33 months in prison today following his November 2017 conviction by a federal jury on seven counts of filing false corporate, individual, and private foundation tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, James Wright, 63, ran the day-to-day operations of B&P Company, Inc. (B&P), which manufactured and sold an array of skincare products, including Frownies, a wrinkle reduction product endorsed by celebrities. Wright’s great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since. Beginning in the late 1990s, Wright formed a series of entities that he used to divert money from B&P to himself and members of his family. Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant, Inc., to which B&P paid “management fees.” Wright caused the preparation of false corporate tax returns for The Remnant on which he fraudulently deducted personal expenses, including rent, utilities, and pool and lawn care for his residence. Wright also used funds from The Remnant’s bank accounts to pay rent for one of his daughters in New York and California. Wright paid personal expenses directly out of B&P’s bank accounts as well. He directed employees of B&P to use corporate funds to pay for the rent and utilities at an apartment rented by his mother as well as rent for his daughter in New York.
In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation. Wright caused B&P to make donations to the foundation and then used more than $170,000 of the foundation’s funds over a seven-year period to pay for high school and college tuition for all five of his children. According to the testimony at trial, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation’s tax returns and pay excise taxes on. When Wright filed the foundation’s 2003 through 2009 returns however, he falsely reported that he had not engaged in acts of self-dealing and failed to pay the excise taxes due on the distributions.
The evidence at trial established that Wright had a long history of interactions with the IRS. In 1998, Wright pleaded guilty to tax evasion for using trusts to conceal income from the IRS.
In addition to the term of imprisonment, U.S. District Judge Walter H. Rice ordered Wright to serve one year of supervised release and pay $146,404 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their support during the investigation and prosecution of this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Newport Man Sentenced to over 13 Years for Heroin Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jamie Akerson, 57, of Newport, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr. to 160 months in prison and five years of supervised release for conspiring to distribute more than a kilogram of heroin. The defendant pled guilty on April 14, 2017.
According to court records, between May 2015 and January 2016, Akerson conspired with Todd Shorey and others to acquire large quantities of heroin on a weekly basis from an out-of-state supplier and to have it distributed by others throughout Central Maine.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New London Man Sentenced to 27 Months in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS GONZALEZ, 48, of New London, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 27 months of imprisonment, followed by one year of supervised release, for his role in a southeastern Connecticut heroin trafficking ring.
According to court documents and statements made in court, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Michael Luciano operated a drug trafficking organization that distributed heroin to numerous street-level dealers, including GONZALEZ, in southeastern Connecticut.
On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging GONZALEZ, Luciano and 19 other individuals with various heroin trafficking offenses. GONZALEZ was arrested on December 14, 2017. On June 5, 2018, he pleaded guilty to one count of use of a telephone to facilitate the commission of a drug trafficking felony. He has been detained since his arrest.
Luciano, of New London, has been detained since his arrest on November 14, 2017. On June 27, 2018, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Jocelyn Courtney Kaoutzanis.
Mobile County Man Receives 27 Month Sentence for Possession of a Firearm While Using a Controlled SubstanceRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Edward Blake Freer, a 25 year old resident of Grand Bay, Alabama was sentenced to 27 months for being a user of marijuana and methamphetamine in possession of a firearm.
On July 18, 2018, according to a factual statement Freer signed in connection with his guilty plea to being a user in possession of a firearm, on July 25, 2017, Mobile County, Alabama deputies were patrolling the area of Old Pascagoula Road when they saw a Honda Accord traveling with an expired tag. They initiated a traffic stop. As the Honda slowed down, deputies could see the driver and passenger moving around in the vehicle. When deputies approached the vehicle they observed Freer and a front seat male passenger. When a deputy asked Freer for his driver’s license he could see a bullet in Freer’s lap. Next, the deputy asked Freer if he had a firearm in the vehicle and Freer responded, “Yes.” Freer then reached for his waistband and the deputy grabbed his hands and asked him to exit the vehicle. The passenger was also asked to exit the vehicle. Both men did and were checked for weapons for officer safety. Neither had weapons on his person. Freer then stated that the firearm was underneath the driver’s seat. Deputies then seized from underneath the seat a loaded Euro arms, 9mm pistol. Deputies then learned that the vehicle Freer was driving was stolen. After Freer waived his Miranda Rights, he stated that he bought the vehicle from someone for “half an ounce of weed” and did not know the vehicle was stolen. Freer also stated that he obtained the firearm from a “meth head” for protection a few hours before he was stopped by the deputies. Both men were arrested and pursuant to an inventory search of the Honda, deputies seized several syringes, two burnt marijuana cigarettes and miscellaneous drug paraphernalia. On May 3, 2018 Freer was interviewed at his mother’s residence by FBI agents. Freer told the agents that the Euro arms pistol was his and that he bought it for 3.5 grams of methamphetamine. Freer said that he had been using Methamphetamine since the age of 15 years and could also to cook methamphetamine. He also stated that he was “high” the date of the traffic stop in July 2017. Freer stated that at that time he was using Methamphetamine every weekend but said that all he uses now is marijuana.
Special Agents of the Federal Bureau of Investigation along with deputies of the Mobile, County, Alabama Sheriff’s office investigated the case and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Receives 18 Month Sentence for Making Counterfeit United States Currency, Ordered to Pay $130.00 Restitution and All Items Used to Facilitate the Crime Were ForfeitedRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Christopher M. Tanner, a 45 year old resident of Mobile, Alabama was sentenced to 18 months for counterfeiting United States currency. He was also ordered to pay $80 in restitution to the Holiday Inn on Highway 90 Mobile, Alabama and $50.00 restitution to Burger King Theodore Dawes Road, Theodore, Alabama. All items used to facilitate the counterfeiting crime was forfeited to the United States.
On July 17, 2018, according to a factual statement Christopher Tanner signed in connection with his guilty plea to counterfeiting United States currency, on January 29, 2018, Christopher Tanner and his wife, Debbie Tanner, checked into a room at the Holiday Inn on Highway 90 in Mobile, Alabama. Christopher Tanner paid for the room with $80 of counterfeit U.S. currency. Once the hotel staff discovered that the money was counterfeit, they call the local authorities. Officers responded to the scene and located Christopher Tanner on the property. Mr. Tanner was Mirandized and asked if he paid cash for the room and whether he knew the money he used was counterfeited U.S. currency. Mr. Tanner stated that he did pay for the room in cash and that he received the cash from a person he did not know as payment for a business transaction. Mr. Tanner stated that he did not know the money was counterfeit. Officers then told Mr. Tanner that he would be transported to the Financial Crimes Unit of the Mobile Police Department. Mr. Tanner asked officers if they would retrieve a pair of shoes from his hotel room for him. Officers went to the room and knocked on the door. After waiting for approximately five minutes, Mrs. Tanner opened the door. Officers asked for a pair of shoes for her husband. During the wait, officers heard what they believed to be the top of a printer closing and crumbling paper. When Mrs. Tanner returned with the shoes, officers asked if she was alone in the room and if he could conduct a safety check of the room. Mrs. Tanner gave verbal consent. While conducting the safety check, the officers noticed two printers and a pack of paper inside the room. Mrs. Tanner was then detained and a search warrant was obtained for the room. Additionally, officers obtained a search warrant for the vehicle the Tanners drove to the hotel after seeing a package of printer paper in plain view through one of the vehicle’s windows. Items seized during the search of the hotel room included printers; computers; $429.00 cash that include the parent notes used to produce counterfeit federal reserve notes; $8,890.00 in counterfeited U.S. Currency; nineteen bleached genuine $1 federal reserve notes; a notebook containing notes on security information of U.S. currency; a pack of printer paper; and a can of oven cleaner.
Officers also obtained search warrants for the two seized computers. Items found during the searches included: 44 images of counterfeit currency; 20 images of driver’s licenses from various states and an internet history displaying downloads and searches for items related to manufacturing counterfeit currency and documents. All of the items seized during the searches were instrumentalities of and helped facilitate the production of counterfeited U.S. currency.
On January 4, 2018 in DeRidder, Louisiana, Christopher Tanner attempted to pay his electric bill at Beauregard Electric with two counterfeit $20 dollar bills include with genuine U.S. currency. He was not arrested at that time because officers believed his story when he told them he did not know the money was counterfeit.
On March 14, 2018, Tanner went into the Walmart in DeRidder, Louisiana, and purchased merchandise with counterfeited $20 bills. He was not apprehended that day but his fraudulent transaction was captured on Walmart’s security camera video.
On March 17, 2018 in DeRidder, Louisiana, Christopher Tanner was arrested for possessing, passing and attempting to pass counterfeit currency. On this date, a search warrant was executed at a hotel room he was staying in. The items seized during that search included: 1) approximately $18,130 in counterfeit U.S. currency; 2) a Blackberry tablet; 3) a Verizon tablet; 4) an HP Laptop computer. All of Tanner’s criminal activities in DeRidder were continuous actions that were part of his conspiracy in Mobile.
Special Agents of the United States Secret Service along with officers of the Mobile, Alabama Police Department investigated the case and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Milford Man Arrested, Charged with Defrauding Elderly IndividualRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that, on October 11, 2018, a federal grand jury in New Haven returned an indictment charging CHRISTOPHER J. SAKELARAKIS, 34, of Milford, with fraud and money laundering offenses stemming from an investment scheme that defrauded an elderly victim of $60,000.
SAKELARAKIS was arrested this morning. He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven, entered a plea of not guilty to the charges, and was released on a $60,000 bond.
As alleged in the indictment, SAKELARAKIS held himself out as having the necessary qualifications, experience and abilities to provide investment services to a victim-investor. SAKELARAKIS falsely represented to the victim-investor that he had a number of investment clients, that he was making a substantial profit including by day trading, and that he had a contact in an investment firm who provided him with stock tips. SAKELARAKIS also represented that he would invest in stocks, options and other financial instruments on behalf of the victim-investor and that his compensation would be a commission on 10 percent of the profits.
It is further alleged that, in October 2017, the victim-investor provided SAKELARAKIS with a $60,000 check. Within days after receiving and depositing the check, SAKELARAKIS withdrew $30,000 in cash, and then made additional cash withdrawals, including several large withdrawals at ATMs. SAKELARAKIS spent a portion of the funds at stores such as Armani Exchange, Foot Locker, Macy’s and Gamestop. In October and November 2017, SAKELARAKIS made several false representations in e-mails to the victim-investor relating to the status of the “investments” and the victim-investor’s account. No funds were ever returned to the victim-investor.
The indictment charges SAKELARAKIS with five counts of wire fraud and three counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges SAKELARAKIS with one count of money laundering, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Wilton Police Department and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
U.S. Attorney Durham noted that this case has been brought as part of the Justice Department’s Elder Justice Initiative (EJI). To learn more about EJI, please visit www.justice.gov/elderjustice.
Middle Georgia's U.S. Attorney to Accompany President Donald Trump During Visit to Hurricane Ravaged GeorgiaRead the Press Release
MACON: The U.S. Attorney for the Middle District of Georgia, Charles Peeler, will join President Donald Trump during the President’s visit to Georgia on Monday, October 15. The President is traveling to Georgia following Hurricane Michael, a historic storm that swept across the region on October 10-11. President Trump declared a federal State of Emergency in Georgia on Thursday, opening up direct federal aid for communities. Damage estimates in the Middle District are unknown, but reported to be in the billions of dollars, including massive crop damage. Both Macon and Albany, home to several key United States Department of Justice offices and federal courthouses serving the Middle District of Georgia, sustained varying levels of storm damage. Albany endured citywide and ongoing power outages and structural damage to homes and businesses.
“My thoughts and prayers are with those people affected by Hurricane Michael,” said Charles Peeler, the U.S. Attorney for the Middle District of Georgia. “The recovery process will be arduous, and I am grateful that President Trump has heard and answered our call for help during this difficult time.”
“I want to applaud the efforts of our region’s first responders during this unprecedented hurricane. I also want to thank the line workers from various electric companies near and far that are restoring power, and a sense of normalcy, to our citizens. We are grateful.”
The United States Attorney’s Office for the Middle District of Georgia has staffed offices in Macon, Columbus and Albany. Following Hurricane Michael, all three offices were shut down as storm damage assessments took place, and for the safety of employees. The Macon and Columbus offices reopened Friday, October 12. The Albany office reopened Monday, October 15.
For media inquiries regarding the U.S. Attorney’s office, please contact Pamela Lightsey at (478) 621-2603. All questions regarding President Trump should be directed to the White House Press Office.
Manitowoc Man Indicted on Firearm and Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on October 12, 2018, a three-count federal indictment was unsealed against Anthony C. Moore (age: 32) of Manitowoc, Wisconsin.
The indictment alleges that Anthony C. Moore possessed methamphetamine with the intent to distribute the controlled substance and did so while in the possession of a firearm, contrary to Title 21, United States Code, Section 841(a) and Title 18, United States Code, Section 924(c). It further alleges that Moore’s status as a convicted felon prohibited him from ever possessing a firearm pursuant to Title 18, United States Code, Section 922(g)(1). Moore faces a mandatory five-year prison sentence and up to a life sentence, if convicted of the charges alleged.
Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case was investigated by the Manitowoc County Sheriff’s Office and the Manitowoc County Metropolitan Drug Enforcement Unit. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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