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Wednesday 5 September 2018
Ghanian Fraudster Sentenced to over 10 Years for a $1.4 Million Conspiracy to Commit Bank and Wire FraudRead the Press Release
Baltimore, Maryland –U.S. District Judge George L. Russell, III sentenced Mohammed “Kofi” Kwaning, age 37, of Laurel, Maryland late on September 4, 2018, to 121 months in prison, followed by three years of supervised release, for conspiracy to commit bank and wire fraud, as well as bank and wire fraud, and aggravated identity theft. The sentence was imposed in connection with a fraud scheme in which Kwaning and his co-conspirators attempted to steal nearly $1.4 million in funds from the personal, retirement, and business accounts of various victims. Kwaning is a lawful permanent resident of the United States and a citizen of Ghana. A federal jury convicted Kwaning and two co-defendants on November 2, 2017.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement - Homeland Security Investigations, Baltimore Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to evidence at presented at his 10-day trial, in 2014, Mohammed Kwaning and other conspirators acquired account information of individual victims, including from investment account management firms, as well as forged checks containing bank account information of both individual and corporate victims from across the United States.
Co-conspirator Issah Mohammed then recruited individuals, including Mark Dennis, Charles Mensah, and others, who registered corporate shell entities with the state of Maryland. The recruits then set up bank accounts at multiple banking institutions in the names of these shell entities. Mohammed Kwaning then either directed that the funds from the compromised accounts be wired into the bank accounts opened in the names of the shell entities or provided altered or fabricated checks from compromised accounts to Issah Mohammed. Mohammed then provided the checks to Mark Dennis, Charles Mensah, and the other recruits to be deposited into the shell entities’ bank accounts. The recruits would then attempt to withdraw the stolen funds before the banks discovered that the source of the funds were compromised accounts.
Some of the accounts were compromised by individuals who called investment firms pretending to be the actual account holders, and then eventually providing enough correct answers in order to reset the password for the account. Individuals also hacked the e-mails of victims and, posing as the account holders, requested funds be wired from their retirement accounts to the bank accounts of the shell corporations controlled by the conspirators. The attempted loss during the nine months of the scheme was over $1.3 million, and the conspirators were able to withdraw over $229,000 of stolen funds, which they then split amongst themselves.
Mark Dennis, age 30, of Laurel, Maryland, and Charles Mensah, age 32, of the Bronx, New York, were also convicted at trial and sentenced to 27 months and 30 months in prison, respectively, each followed by five years of supervised release. Issah Mohammed, age 31, of Laurel, previously pleaded guilty to his role in the scheme and is awaiting sentencing.
United States Attorney Robert K. Hur commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Judson T. Mihok and Paul E. Budlow, who prosecuted this case.
Georgia Man Charged with Fraud and International Money Laundering Conspiracies, Aggravated Identity Theft, and Naturalization FraudRead the Press Release
A Georgia man is charged with fraud and money laundering conspiracies and related offenses, according to an 18-count indictment unsealed today. The charges were announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Special Agent in Charge Chris Hacker of the FBI’s Atlanta Division and Special Agent in Charge Nick Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Atlanta Field Office.
Onosemeraja Idodo-Umeh, 41, a native of Nigeria who was residing in Atlanta, is charged with one count of conspiracy to commit wire fraud and bank fraud, 10 counts of wire fraud, five counts of aggravated identity theft, one count of conspiracy to commit money laundering, and one count of unlawful procurement of naturalization. He was arraigned on the charges earlier today before U.S. Magistrate Judge Janet King. Idodo-Umeh was indicted by a federal grand jury on Aug. 7.
“Onosemeraja Idodo-Umeh allegedly perpetrated multiple fraudulent schemes over many years, including by conspiring with violent gang members, and then laundered the illicit proceeds,” said Assistant Attorney General Benczkowski. “He also allegedly obtained U.S. citizenship only after lying to immigration authorities. These extremely troubling charges once again demonstrate the Department of Justice’s resolve to protect the American people and our financial system from transnational fraud.”
“This Defendant has allegedly moved a substantial amount of money out of the United States to Nigeria, and he did so with the help of gang members already indicted by my Office,” said U.S. Attorney Pak. “By prosecuting not only the gang members but those who reaped the financial benefit of their crimes, we will dismantle the entire criminal network.”
The indictment alleges a conspiracy spanning roughly seven years, in which Idodo-Umeh and his co-conspirators perpetrated fraud schemes using stolen identities, compromised credit card numbers, and stolen and counterfeit checks. The alleged conspiracy involved, among other tactics, the creation of fake businesses to which Idodo-Umeh and his co-conspirators, including members of the gang the Gangster Disciples, would make credit card payments using stolen credit card numbers. The indictment also alleges the use of forged checks written for tens of thousands of dollars each. Idodo-Umeh would allegedly funnel the fraud proceeds through bank accounts belonging to a network of subordinates who he recruited and paid on commission, transfer dirty money back and forth between the United States and Nigeria, and take other steps to launder his criminal income.
The indictment also alleges that Idodo-Umeh unlawfully obtained his naturalized U.S. citizenship by falsely telling immigration authorities he had not committed any crimes when in fact he was engaged in the charged fraud.
“This gang not only threatened our communities with violence, but as a criminal enterprise, victimized innocent civilians by stealing their identities and money,” said FBI Special Agent in Charge Hacker. “FBI investigators are determined to uncover every facet of their illegal activity, and this defendant’s arrest exemplifies that determination.”
“This case illustrates the complexity of financial crimes transnational criminal networks seek to exploit,” said HSI Special Agent in Charge Annan. “With this indictment, HSI special agents in collaboration with our DOJ partners have taken an important action to increase the security of our nation by dismantling a significant transnational criminal organization.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by FBI Atlanta’s Safe Streets Gang Task Force with assistance from the Cobb County Police Department, and by HSI and IRS Criminal Investigation. Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kim S. Dammers, Chief of the Organized Crime and Gang Section of the Northern District of Georgia, are prosecuting the case.
Gardner Man Sentenced for Illegally Possessing FirearmRead the Press Release
BOSTON – A Gardner man was sentenced today in federal court in Worcester for a federal firearm offense.
Edwin Labaw, 34, was sentenced by U.S. District Court Judge Timothy S. Hillman to 39 months in prison and three years of supervised release. In March 2018, Labaw pleaded guilty to one count of being a felon in possession of a firearm. Labaw was arrested in November 2017.
On Sept. 19, 2017, Labaw and another individual, Travis Miller, sold an undercover agent a double-barrel 12-gauge shotgun, a 9mm Kel-Tech Sub 2000 rifle, and 11 rounds of 12-gauge shotgun ammunition in exchange for $1,200. Miller and Labaw met again with an undercover federal agent on Sept. 27, 2017, and sold the agent a 7.62x39mm caliber SKS rifle, along with ammunition and magazines, in exchange for $1,800.
According to court documents, Labaw has prior felony convictions and is therefore prohibited from possessing firearms and ammunition.
Miller was also arrested in November 2017 and subsequently convicted in federal court with being a felon in possession of ammunition and with distributing fentanyl. Miller was sentenced last month to 80 months in prison and three years of supervised release.
United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Valuable investigative assistance was provided by the Massachusetts State Police and the Worcester, Gardner, and Fitchburg Police Departments. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office prosecuted the case.
Fraudster Sentenced to More Than Four Years in PrisonRead the Press Release
SAN FRANCISCO – John Bryan Murphy was sentenced today to 51 months in prison, and ordered to pay $897,464.50 in restitution for wire fraud and money laundering, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge.
Murphy, 44, of Hyannis, Massachusetts, pleaded guilty on April 27, 2018, to wire fraud and money laundering charges. According to the plea agreement, Murphy admitted that between at least 2012 and continuing up until his arrest in 2017, he executed a scheme to defraud victims in order to obtain money and property from them by making false representations and promises. Specifically, Murphy admitted he solicited investments from over a dozen victims on the false and fraudulent premise that he would professionally invest their money through an entity he controlled known as Capital Park, LLC. Instead of investing their money, he used his victims’ money to support his lifestyle, to speculate on the stock market, and to partially repay other victims. With respect to his partial payments to victims, he admitted that he made them to lull his victims into a false sense of security, to lead them to believe that the promises he made were true when in fact they were not, to postpone or prevent them from complaining to law enforcement, and to induce new victims to “invest” their money with him. Murphy also admitted that he acted with the intent to defraud his victims during the entire scheme. Finally, Murphy admitted that his scheme caused at least $890,000 in losses to his victims.
A federal grand jury indicted Murphy on November 30, 2017, charging him with ten counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of money laundering, in violation of 18 U.S.C. § 1957. Murphy pleaded guilty to three counts of wire fraud and one count of money laundering. The remaining counts were dismissed.
“Today’s just and significant sentence is a reminder that fraud will not be tolerated and instead punished to the fullest extent of the law,” said US Attorney Tse. “The defendant hid behind his lies and fraud to friends who trusted him with their hard earned investments. Today’s sentence will hopefully bring some closure and relief to these victims of fraud.”
In addition to the prison term and restitution, Judge Breyer also ordered the defendant to serve a three-year period of supervised release to follow his prison term. The defendant has remained in custody since his arrest and will begin serving his sentence immediately.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Franklin Man Sentenced to 8 1/2 Years in Prison for Methamphetamine TraffickingRead the Press Release
CONCORD - Brian R. Sanborn, 53, of Franklin, was sentenced to serve 102 months in federal prison for methamphetamine trafficking, said United States Attorney Scott W. Murray.
According to court documents and statements made in court, on December 8, 2017, the New Hampshire State Police executed a search warrant at Sanborn’s residence in Franklin and located approximately 17 grams of nearly pure methamphetamine in the basement of the house. On the same day, Sanborn, who previously had been convicted of felonies, possessed seven firearms, including four revolvers, two shotguns, and an SKS rifle.
Sanborn previously pleaded guilty to possession of methamphetamine with intent to distribute on May 15, 2018.
“Methamphetamine is a dangerous drug that is appearing with increasing frequency in the Granite State,” said U.S. Attorney Murray. “In order to protect the public, we will work closely with our law enforcement partners to identify and prosecute methamphetamine traffickers, particular those who endanger the community by possessing firearms while engaging in the drug trade. I want to thank the law enforcement officers whose efforts stopped this individual’s criminal activities.”
This matter was investigated by the New Hampshire State Police, Franklin Police Department, DEA, and ATF. The case was prosecuted by Assistant U.S. Attorneys John S. Davis and Shane B. Kelbley.
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Frankfort Nurse Practitioner Pleads Guilty to Conspiring to Obtain Drugs with Forged PrescriptionsRead the Press Release
LEXINGTON, Ky. — Tiffany Miller, 39, of Frankfort, Ky., pleaded guilty yesterday to conspiring to obtain controlled substances by fraud.
In her guilty plea, Miller admitted that she agreed with others to use stolen prescriptions, which she had obtained from hospitals where she worked, to obtain the drugs. Miller forged the doctor’s names on stolen prescription forms for Ritalin and Adderall. Miller and others presented the forged prescriptions to numerous pharmacies in Central Kentucky. The prescription forms were taken from Baptist Health, in Lexington; Fleming County Hospital, in Flemingsburg; and Manchester Memorial, in Clay County. Miller and others were able to obtain more than 2,000 pills using the forged prescriptions. Miller was indicted by a grand jury in July of 2018.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Evans, Special Agent in Charge, D.E.A.; and Richard Sanders, Commissioner of the Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by D.E.A. and Kentucky State Police. The United States was represented by Assistant United States Attorney Roger W. West.
Miller is currently scheduled to appear for sentencing, before Senior United States District Judge Joseph M. Hood, in Lexington, on December 3, 2018, at 11:00 a.m. She faces a maximum prison sentence of 4 years. However, any sentence following conviction will be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Former NASA Contractor Arrested on Charges Alleging Hacking and Online Threats Made to Obtain Nude Photos of Female VictimsRead the Press Release
LOS ANGELES – Federal authorities this morning arrested a Los Angeles man on federal charges that allege he targeted seven women with online threats to publish nude photos unless the victims provided him with additional explicit pictures.
Richard Gregory Bauer, 28, a former contractor at NASA Armstrong Flight Research Center, and who used several aliases including “Steve Smith,” “John Smith,” and “Garret,” was arrested by special agents with NASA’s Office of Inspector General.
Bauer was arrested at his Mid-Wilshire residence without incident pursuant to a 14-count indictment returned by a federal grand jury on August 28. The indictment charges Bauer with stalking, unauthorized access to a protected computer, and aggravated identity theft.
The indictment alleges that over the past several years, Bauer, who until recently lived in the High Desert communities of Palmdale and Lancaster, harassed the victims on Facebook and through emails. In the communications in which Bauer masked his identity, Bauer claimed to possess nude photos of the victims, which he did in relation to six of the seven victims discussed in the indictment. Bauer sent the victims nude photos of themselves, claimed to have additional photos, and threatened to post the nude photos of the victims online unless the women sent him additional photos in various stages of undress.
Bauer is also charged in the indictment with unauthorized access to computers and accounts owned by victims. During the course of the alleged stalking, according to the indictment, Bauer, using his true identity, contacted some victims on Facebook and posed a series of questions, purportedly as part of a project he was working on for his “human societies class.” Some of the questions included typical questions used to reset online passwords, such as the name of your first pet or the city where your parents met.
In other instances, again using his true identity, Bauer allegedly convinced victims to install malware by claiming that he needed the victims’ help in testing software he claimed to have written. The malware gave Bauer unauthorized access to the computers, and allowed him, among other things, to capture from the victims’ computers passwords for web sites and e-mail accounts. On at least two instances, Bauer is alleged to have used logins and passwords belonging to victims to log on to their Facebook and Google email accounts.
Bauer is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the 14 charges in the indictment, Bauer would face a statutory maximum sentence of 64 years in federal prison.
This case is the result of an ongoing investigation being conducted by NASA’s Office of Inspector General. Members of the public who have information about Bauer’s online activities or believe they may be victims of his activities are encouraged to contact NASA OIG Special Agent Joseph Bennett at (818) 354-9768.
This matter is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
Former L.A. County Public Official Who Steered Contracts to Bribe-Paying Developer and Contractor Agrees to Plead GuiltyRead the Press Release
LOS ANGELES – A former public official in Los Angeles County’s Real Estate Division involved in awarding contracts to real estate developers and contractors has agreed to plead guilty to lying to FBI agents and subscribing to a false tax return in an effort to cover up his receipt of illegal bribes.
In a plea agreement filed today, Thomas M. Shepos, 68, of Palmdale, agreed to plead guilty to two felony offenses – making false statements in which he denied receiving bribes and kickbacks while working for the county, and subscribing to a false tax return for the year 2014 in which he failed to report $139,400 in income, including more than $100,000 in bribe payments. In the plea agreement, Shepos admits that he failed to report a total of $434,000 in income he received over a seven-year period.
As part of his plea agreement, Shepos has agreed to cooperate with an ongoing federal investigation.
For approximately 20 years, until he retired last year, Shepos worked in the county’s Real Estate Division, where he negotiated leases and contract terms with private developers and contractors. According to the plea agreement, because of his seniority, Shepos had “significant autonomy to contractually bind the county.”
In the plea agreement, Shepos admitted accepting bribes from Arman Gabaee, a Beverly Hills real estate developer who was indicted in May on bribery and wire fraud charges in connection with his attempts to secure a $45 million county lease in the Hawthorne Mall. Beginning in 2010 or 2011, Gabaee began giving Shepos monthly bribe payments of $1,000 or more in exchange for Shepos providing Gabaee with non-public information and preferential treatment, according to the plea agreement filed today.
The plea agreement further states that Gabaee offered to buy a million-dollar property in Northern California as a bribe for Shepos. In exchange for the property, Gabaee sought Shepos’ assistance securing a lease for the county’s Department of Public Social Services in the Hawthorne Mall, which Gabaee owned and was redeveloping.
Shepos also admitted in the plea agreement that he accepted bribes totaling $250,000 to $300,000 from an unnamed electrical contractor in exchange for Shepos’ assistance securing five to seven county contracts ultimately awarded to the contractor.
When interviewed by federal agents in November 2016, Shepos lied about the bribery schemes, falsely claiming that he had never received anything of value from anyone doing business with the county. He also lied about numerous unexplained deposits into his bank accounts, claiming that the funds were gambling proceeds, as opposed to bribes or kickbacks.
“Corrupt officials who abuse their power to line their own pockets undermine the public’s trust in government,” said United States Attorney Nick Hanna. “We are committed to ending these backroom deals and bringing these criminals to justice.”
“Public officials like defendant Shepos, who misuse their position of trust for personal gain, undermine the integrity of their office and deny honest services to the residents they purport to serve,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to work with our partners to restore the public’s trust in our county officials.”
In relation to the tax charge, Shepos admitted that he received a total of $434,400 from 2010 through 2016 that he failed to report on his federal income tax returns. Shepos has agreed to file corrected tax returns and pay back taxes – estimated to be approximately $110,000, plus a yet-to-be-determined fraud penalty.
“Public officials need to be reminded of the trust and duty bestowed upon them by the taxpayers to serve the public’s interest, not their own,” said Special Agent in Charge R. Damon Rowe, IRS Criminal Investigation. “IRS Criminal Investigation stands committed to weeding out individuals who abuse the privilege of their positions for personal gain, while dodging the federal tax system.”
Shepos will be summonsed to appear for an arraignment in United States District Court, likely later this month.
Once he enters the guilty pleas to the two charges, Shepos will face a statutory maximum sentence of eight years in prison.
Gabaee is currently scheduled to go on trial on February 26, 2019.
The case against Shepos is part of an ongoing investigation being conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorneys Ruth C. Pinkel and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Former Bucks County Official Pleads Guilty to Money Laundering and Extortion ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Robert P. Hoopes, 71, of Doylestown, Pennsylvania, pleaded guilty today to one count of conspiracy to commit money laundering and four counts of Hobbs Act extortion under color of official right. From February 2016 until December 2016, Hoopes was the Director of Public Safety in Lower Southampton Township, Pennsylvania. In this position, Hoopes had authority over all police, fire, and emergency operations in the township. Hoopes previously operated a legal practice in the Doylestown, Pennsylvania area.
“Our citizens have the right to expect that public officials conduct themselves in a fair, honest, and impartial manner,” said U.S. Attorney McSwain. “The defendant violated the trust placed in him by his community, placing his own greed above the needs of others. Our Office will always seek to root out corruption and hold public officials accountable for their actions.”
From 2014 to 2016, Hoopes solicited, extorted, and attempted to extort bribes and kickbacks from individuals and businesses in exchange for his influence over Lower Southampton Township’s Board of Supervisors, Solicitor, officers, and employees. For example, Hoopes solicited bribe payments from Robert A. DeGoria, who was then the vice-president of an outdoor advertising company, in exchange for offering his influence to reduce lease payments that the company owed to Lower Southampton Township.
In November 2016, Hoopes and co-defendant Bernard T. Rafferty, who was then a Deputy Constable in Bucks County, accepted a bribe of $1,000, as well as the promise of other fees, in exchange for Hoopes and Rafferty using their positions as public officials to “fix” a traffic case in Bucks County Magisterial District Court.
Additionally, from June 2016 to August 2016, Hoopes, Rafferty, and co-defendant Kevin M. Biedmeran, who was then a business development manager at Philadelphia Federal Credit Union, laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and accepted money laundering fees totaling $80,000 in cash.
Hoopes faces a maximum possible sentence of 100 years in federal prison for his crimes. He is scheduled to be sentenced on December 17, 2018.
Rafferty previously pleaded guilty to conspiracy to commit money laundering and honest services mail fraud. He is scheduled to be sentenced on November 9, 2018.
Biederman previously pleaded guilty to conspiracy to commit money laundering and bank bribery. He is scheduled to be sentenced on November 8, 2018.
DeGoria previously pleaded guilty to one count of making a false statement to federal agents. DeGoria is scheduled to be sentenced on November 6, 2018.
In a related case, Michael J. Savona, an attorney who also served as Solicitor in Lower Southampton Township, previously pleaded guilty to one count of making a false statement to federal agents. Savona is scheduled to be sentenced on November 7, 2018.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
Former Arkansas State Senator Sentenced to More Than 18 Years in Prison for Bribery SchemeRead the Press Release
A former Arkansas State Senator was sentenced today to 220 months in prison for organizing and leading a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, many of which were funneled through a consultant’s business, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.
On May 3, a jury found Jonathan E. Woods, 41, of Springdale, Arkansas, guilty of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering. In addition to his prison sentence, U.S. District Judge Timothy L. Brooks of the Western District of Arkansas sentenced Woods to serve three years of supervised release and ordered Woods to pay restitution in the amount of $1,621,500 to the State of Arkansas and two economic development districts including the Northwest Arkansas Economic Development District and forfeit $1,097,005.
“Jonathan Woods abused his position as an Arkansas State Senator and betrayed the public trust by taking bribes and kickbacks,” said Assistant Attorney General Benczkowski. “This conviction demonstrates the commitment of the Department of Justice and our federal partners to investigate and prosecute public officials who misuse their authority to benefit themselves at the expense of the citizens they pledged to serve.”
“Today’s sentence is the result of very hard work by the assigned Assistant U.S. Attorneys and the special agents from the IRS and the FBI,” said U.S. Attorney Kees. “We both respect and appreciate the judgment of the Court and the sentence that Judge Brooks ordered today. This sentence should send a message to the people who would abuse the trust of Arkansas voters and citizens. It should serve as a serious warning to those who would intentionally steal money from taxpayers and use their elected office to both commit and conceal their crimes. As I stated after the jury trial concluded, my office, along with the Criminal Division from the Department of Justice, will continue to investigate, pursue and prosecute public corruption cases in Arkansas in order to ensure the fairness and justice that the people of Arkansas deserve.”
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 50, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to a consulting company controlled by Randell G. Shelton Jr., 39, of Alma, Arkansas. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
Shelton also was found guilty by a jury on May 3. He was convicted of 12 counts, including conspiracy and honest services wire and mail fraud, and is scheduled to be sentenced on Sept. 6. Paris pleaded guilty on April 5, before Judge Brooks to one count of honest services wire fraud, and he is scheduled to be sentenced on Sept. 12. Neal pleaded guilty on Jan. 4, 2017, before Judge Brooks to one count of conspiracy to commit honest services fraud, and he is scheduled to be sentenced on Sept. 13.
The FBI and IRS Criminal Investigation investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas prosecuted the case.
Florida Residents Sentenced for Credit Card Fraud OffensesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Alejandro Caal, 46, of Tampa, Florida; Adrian Teruel, 26, of Orlando, Florida; and Olga Valido, 52, of Kissimmee, Florida, were sentenced today in U.S. District Court by Chief Judge Nancy Torresen for access device fraud and conspiracy to commit access device fraud. Caal was sentenced to 10 months in prison, Teruel was sentenced to 1 year, and Valido was sentenced to nine months. The defendants were also ordered to serve three years of supervised release upon their release from prison. The defendants pleaded guilty on January 3.
Court records show that between October 2016 and March 2017, the defendants used stolen credit and debit card numbers belonging to Maine residents to fraudulently purchase merchandise and gift cards at Maine stores.
A fourth defendant, Zulairam Ramos, pleaded guilty on January 3 and is scheduled to be sentenced on December 4.
The case was investigated by the Falmouth, Augusta, Scarborough, South Portland and Winthrop Police Departments, the Cumberland County Sheriff’s Office, and the U.S. Secret Service
Five previously deported aliens arrested in Sabine Parish plead guilty to re-entering the U.S.Read the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that four illegal aliens from Mexico and one from Guatemala pleaded guilty Tuesday to re-entering the United States after having been previously removed.
Jose Benjamin Duran-Tovar, 32, of Mexico; Ricardo Garcia-Herrera, 26, of Mexico; Adrian Valadez-Martinez, 27, of Mexico; Jorge Armando Venegas-Sanchez, 28, of Mexico; and Mario Orlando Lopez-Tzoy, 26, of Guatemala, pleaded guilty before U.S. District Judge Dee D. Drell to one count of illegal re-entry of a previously deported alien. According to the guilty pleas, Sabine Parish Sheriff’s deputies arrested the defendants who were all riding together on June 21, 2018 near Many, Louisiana.
After further investigation, law enforcement agents discovered that:
Duran-Tovar had been previously removed seven times. He was first arrested on June 8, 2009 in Beaumont, Texas, and removed to Mexico on June 9, 2009. After that, he was arrested six more times and removed to Mexico each time;
Garcia-Herrera had been previously removed twice. He was first arrested on July 19, 2011, near Hebbronville, Texas, and voluntarily returned to Mexico. He was arrested again on February 2, 2013 in Pike County, Mississippi, and later removed;
Valadez-Martinez was previously removed once before. He was arrested on September 7, 2015 near Carrizo Springs, Texas, and removed on September 8, 2015, at the Del Rio, Texas Port of Entry;
Venegas-Sanchez was previously removed once before. He was arrested on November 25, 2015 near Harlington, Texas, and was removed to Mexico on November 26, 2015; and
Lopez-Tzoy was previously removed once before. He was arrested and later removed on April 27, 2010. He re-entered the country on February 28, 2013, near Hidalgo, Texas.
The defendants were sentenced at the guilty plea hearing to time served and are to be deported.
United States Border Patrol and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Five Charged in Fraud Schemes Linked to Hurricane HarveyRead the Press Release
HOUSTON ‐ A total of six Houston-area residents have been charged with varying offenses related to disaster assistance in their alleged efforts to defraud the Federal Emergency Management Agency (FEMA) and Small Business Administration (SBA).
U.S. Attorney Ryan K. Patrick made the announcement just after the Gulf Coast region marked the one-year anniversary of Hurricane Harvey, the costliest storm in United States history.
“These types of cases are no different than looting during and after a storm,” said Patrick. “Some people try to exploit natural disasters by taking things that aren’t theirs. It is white collar storm looting, and fewer people who actually need assistance get it.”
Five are charged in separate indictments linked to Hurricane Harvey with a sixth stemming from the Houston-area Memorial Day weekend flood in 2015.
The first indictment charges Clinton Booker, 51, of Houston, with engaging in a scheme to defraud the SBA when he applied for and received a disaster loan from the SBA. He allegedly claimed property damage from Hurricane Harvey in August 2017, but his residence had not sustained damage as claimed. According to the indictment, Booker submitted or caused others to submit falsified records to make the claim appear legitimate. Booker received $25,000 from the fraudulent SBA loan. He is charged with one count of fraud in connection with a major disaster and one count of wire fraud for which he faces up to 30 and 20 years in federal prison, respectively.
In a separate, but similar case, Randal Radack, 44, of Spring, allegedly engaged in a scheme to defraud the SBA and FEMA when he applied for and received disbursements, claiming property damage from Hurricane Harvey. However, he actually he did not reside at the property during Hurricane Harvey as claimed, according to the allegations. Radack allegedly received $115,100 from the fraudulent SBA loan and $16,541.38 in fraudulent disbursements from FEMA. Radack is charged with two counts of fraud in connection with a major disaster and five counts of wire fraud for which he faces up to 30 and 20 years in federal prison, on each count, respectively.
According to additional allegations, Humble resident Robert Kaitho, 55, also engaged in a scheme to defraud the SBA. He applied for and received a disaster loan from the SBA, claiming property damage from Hurricane Harvey when his residence had not sustained damage as claimed. According to the indictment, Kaitho used some of the proceeds from the fraudulent SBA loan to pay a credit card company. Kaitho received $53,000 from the fraudulent SBA loan, according to the charges. He is charged with one count of fraud in connection with a major disaster, two counts of wire fraud and two counts of money laundering. If convicted of the disaster fraud, he faces up to 30 years in prison, while wire fraud and money laundering carry a punishment of up to 20 and 10 years in federal prison, respectively.
Christopher Howard, 45, of Highlands Ranch, Colorado, did not even reside at his Crosby property at the time of Hurricane Harvey. Nevertheless, he allegedly applied for and received FEMA disbursements, claiming property damage. Howard received $30,586.45 in fraudulent disbursements from FEMA as a result of the claim, according to the allegations. He is charged with one count of fraud in connection with a major disaster and four counts of wire fraud for which he faces up to 30 and 20 years in federal prison, respectively.
Patricia Rodriguez, 38, of Houston, also allegedly engaged in a scheme to defraud when she applied for and received FEMA disbursements, claiming property damage from Hurricane Harvey. She was not even the owner of the property as claimed, according to the indictment. However, Rodriguez allegedly received $33,300 in fraudulent FEMA disbursements. She also faces a maximum of 30 and 20 years in federal prison, respectively, upon conviction of one count each of fraud in connection with a major disaster and wire fraud.
The final indictment alleges David Boniface claimed property damage from the Memorial Day flood in 2015, when his residence had not sustained damage as he had reported. Boniface, 60, of League City, applied for and received a disaster loan from the SBA totaling $64,200. He submitted or caused others to submit falsified records to make the claim appear legitimate. Boniface is charged with one count of fraud in connection with a major disaster and two counts of wire fraud which carry 30 and 20-years maximum federal prison terms, respectively.
“Fraud cases take time to investigate,” Patrick explained. “One year after the storm my office is actively engaged with DHS and other agencies in similar investigations. This is just the first of what will probably be many cases related to Hurricane Harvey.”
All six people charged today are expected to make their initial appearances before a U.S. magistrate judge in the near future.
The SBA-Office of Inspector General (OIG) and the Department of Homeland Security –OIG conducted the investigations. Assistant U.S. Attorney Michael Day is prosecuting the cases.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707 or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal Inmates Sentenced on Weapon ChargesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that two inmates at the Federal Correctional Institution at McDowell were sentenced on weapon charges. The cases were investigated by the Federal Bureau of Prisons.
“Two more prisoners and two more shanks,” said United States Attorney Mike Stuart. “Shanks pose a threat to other inmates and prison staff. The only thing you get with a shank is a longer prison sentence.”
Marlon Briceno, 32, was sentenced to 15 months in prison for possessing a weapon in the prison. Briceno pled guilty in April, admitting that on October 7, 2017, he possessed a handcrafted weapon commonly known as a “shank.” A staff member at the prison found the weapon in his shoe. Briceno’s sentence will run consecutively to the sentence he is now serving.
Bryan Casey, 32, was sentenced to 15 months in prison for possessing a shank. He pled guilty in April and admitted that a staff member found the weapon in his pants pocket during a search on November 11, 2017. Casey’s sentence will also run consecutively to the sentence he is presently serving.
The prosecution was handled by Assistant United States Attorney John File. Senior United States District Judge David A. Faber imposed the sentences.
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Father and Son Plead Guilty in Large Scale Vehicle Odometer Roll Back SchemeRead the Press Release
Jackson, Miss. – Mark Longgrear, 53, of Jackson, and his son, Zachary Longgrear, 29, of Madison, both pled guilty before United States District Judge Carlton W. Reeves to conspiring to reset and alter the odometers of motor vehicles and to giving or causing to be given false statements relating to odometers, announced United States Attorney Mike Hurst and Deputy Administrator Heidi King with the U.S. Department of Transportation, National Highway Traffic Safety Administration. Mark Longgrear also pled guilty to six counts of securities fraud.
From 2014 through at least February 2018, Mark Longgrear, along with his son, Zachary Longgrear, both individually and under their company Southern Auto Buyers LLC, bought a large number of late model, high mileage vehicles from numerous sources, and thereafter illegally altered the odometers of these vehicles to show lower mileage. In furtherance of the conspiracy, the defendants forged and fraudulently created paperwork to secure new titles showing false lower mileage on these vehicles, and then sold the vehicles directly to individuals and automobile dealerships at much higher prices. Some of these rolled-back vehicles were subsequently sold by the dealerships to consumers in Mississippi and elsewhere.
Judge Reeves set sentencing for December 12, 2018 at 10:00 a.m. The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Each securities fraud violation carries a maximum penalty of 10 years in prison and $250,000 fine or twice the gross gain or loss, whichever is greater. Restitution may also be ordered.
“Odometer fraud costs American consumers more than $1 billion annually, said NHTSA Deputy Administrator King. “We will continue to work with Department of Justice and state DOT partners to investigate odometer fraud, deter tampering, and inform consumers of the potential signs and dangers associated with this crime.”
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761. Individuals can also file a complaint online at www.NHTSA.gov/Equpment/Odometer-Fraud.
The case is the result of an investigation by the United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation, with assistance from the United States Postal Inspection Service, and the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
Executive of $50 Million Mail Fraud Scheme Sentenced to over 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Eric Epstein, age 58, of Pompano Beach, Florida (previously of Owings Mills, Maryland) today to 135 months in prison for conspiracy to commit mail fraud and conspiracy to defraud the Internal Revenue Service, and sentenced co-conspirator Andrew Stafford, age 58, of Bel Air, Maryland, to six years in prison for conspiracy to commit mail fraud, each followed by three years of supervised release. Epstein, Stafford, and their co-conspirators admitted perpetrating a nationwide fraudulent telemarketing scheme designed to ship unwanted and vastly over-priced light bulbs and cleaning supplies to thousands of businesses and non-profit organizations. Epstein and Stafford were leaders in the scheme in which they and their co-conspirators obtained more than $50 million.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service, Criminal Division; and Inspector in Charge Eric Shen of the United States Postal Inspection Service, Washington Division.
“Eric Epstein and his co-conspirators preyed on churches, schools, homeless shelters, and businesses to steal more than $50 million through a sophisticated scheme that involved sham sales of light bulbs and cleaning supplies,” said U.S. Attorney Robert K. Hur. “Not only did he not pay taxes on much of the money, but Epstein used the ill-gotten gains to fund a lavish lifestyle including luxury vehicles, a million-dollar home, and extravagant jewelry. Federal agents and prosecutors will pursue perpetrators of such fraud schemes to recover money stolen from the victims and from the United States Treasury.”
“Eric Epstein’s conspiracy was a scheme motivated by pure greed. Through false and fraudulent business practices, Epstein not only personally enriched himself, but cheated several businesses out of more than $50 million in the process, ” said Kelly R. Jackson, Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office. “IRS Criminal Investigation, in partnership with our law enforcement partners, will continue to investigate corporate fraud and hold corporations and their executives accountable when failing to comply with the law.”
According to Epstein’s and Stafford’s plea agreements and other court documents, in 2003, Epstein co-founded a Maryland-based telemarketing business, Midway Industries, LLC and Johnson Distributing, LLC and incorporated them in Maryland, each with the stated purpose to engage in the retail sale of light bulbs and cleaning supplies, among other activities. Between July 22, 2008 and April 18, 2014, Epstein and Brian Wallen incorporated additional shell entities, in Maryland and Florida. Midway, Johnson Distributing, and the shell entities will be collectively referred to here as “Midway.”
Epstein, Stafford, and other co-conspirators obtained tens of millions of dollars from thousands of victim businesses by deceiving the businesses into paying exorbitant prices for light bulbs and cleaning supplies, as well as paying for products that the businesses never ordered. Victims of the scam included global conglomerates, small family-run businesses, government agencies, churches, schools, homeless shelters, and other non-profits.
In 2012, Epstein sold a majority financial interest in Midway to Brian Wallen for $15 million, but he retained an ownership stake, received a regular paycheck, and continued to advise and supervise Midway employees, along with Brian Wallen and Andrew Stafford.
Specifically, from 2003 through 2014, Midway employees would cold-call businesses making false representations, including that the business had an existing business relationship with Midway. During these cold-calls, the conspirators sought to obtain the personal information of an “authorized representative” for the business, which the Midway collections department could use later to justify an order. The conspirators concealed Midway’s true locations in Reisterstown, Maryland and in Florida, as well as the price of the products and the quantity of any shipment. Often the conspirators would tell the victim businesses that Midway would send a “half box” of light bulbs. In fact, the “half box” was a deceptive technique used to understate the volume and price of shipments, and disguise unwanted future shipments. As long as the victims continued paying the Midway invoices, in subsequent calls Epstein, Wallen, Stafford, and the conspirators misrepresented that the balance of the victim’s order, or their “regular seasonal order” had recently been shipped, despite no order having been made by the victim business, and no actual shipment having yet been sent.
When the authorized representative at a business could not be reached, Epstein, Wallen, Stafford, and the conspirators would simply send the product and an inflated invoice to the victim, without the victim placing an order. The conspirators referred to this practice as “just ship.” If the authorized representative had quit, been fired, or even passed away, the conspirators sent a product and inflated invoice to the victim business knowing that the victim would be unable to dispute the validity of the order. This practice was referred to by the Midway conspirators as a “down the road.” The Midway conspirators regularly sought the approval of Epstein, Wallen and Stafford, as their supervisors, to engage in the practices of “just ship,” or “down the road.”
Epstein, Wallen, Stafford, and the conspirators ordered the light bulbs and cleaning supplies from a company located in New Jersey (supplier). They instructed the supplier to ship the products to the victim without an invoice, and to send the invoices directly to Midway. Epstein, Wallen, Stafford, and the conspirators then sent inflated invoices to the billing departments of the victims, that were regularly 900% greater than the prices Midway paid for the supplies, and sometimes greater than 8,000% above the supplier’s prices. When victims did not remit payment, the collections department at Midway repeatedly called the victims in order to force them to pay the inflated invoices. If the victim threatened to contact law enforcement or the Better Business Bureau, Epstein, Wallen, Stafford and the conspirators offered to revise the invoice to a discounted rate, or take back a product for either a “re-stocking fee” or “at cost,” which was still substantially greater than the cost of the products purchased from the supplier.
As a result of the fraud scheme, Midway sent fraudulent invoices to victim companies for more than $100 million and received more than $50 million in payments on those invoices.
Further, Epstein admitted that he caused victims’ checks payable to Midway corporate entities to be cashed at money remitters, while Epstein personally kept and used the money. Epstein and others at Midway also used Midway credit cards for lavish personal expenditures, such as luxury furniture and vehicles.
Co-conspirators Robert Chesser, age 46, of Dundalk, Maryland; Brandon Johnston, age 38, of Catonsville, Maryland; Alan Landsman, age 36, of York, Pennsylvania; Steven Phillips, age 64, of Pikesville, Maryland; Brandon Riggs, age 34, of Baltimore; and Thomas Wishon, age 54, of Cockeysville, Maryland, previously pleaded guilty to conspiracy to commit mail fraud in connection with their roles in the scheme, and were sentenced to between 30 months and 72 months in prison.
Charges against Brian Wallen were dismissed after his death.
United States Attorney Robert K. Hur thanked the FBI, the IRS, and the U.S. Postal Inspection Service for their work on the investigation. Mr. Hur commended Assistant U.S. Attorneys Sean R. Delaney and Harry M. Gruber, who prosecuted the case.
Executive Wallace Tang and Three Corporations Plead Guilty to Defrauding NASA, National Science Foundation, and Energy DepartmentRead the Press Release
United States Attorney Ron Parsons announced today that Wallace Tang, age 55, of Alamo, California, appeared in federal court in Sioux Falls, South Dakota, and pleaded guilty to Wire Fraud before U.S. District Judge Karen E. Schreier. Three Bay Area corporations also appeared in federal court before Judge Schreier and pleaded guilty to Conspiracy to Commit Wire Fraud. Laserlith Corporation, Black Hills Nanosystems Corporation, and Blue Sky Engineering, Incorporated, entered their guilty pleas by and through Tang, Gina Kim, and Sine Chao, respectively, who are the corporate representatives. As part of the plea agreements filed with the Court, the defendants also paid restitution totaling $1,084,418.60. The restitution was paid before the time each defendant appeared to plead guilty. The amount of criminal restitution represents the monies derived from the defendants’ fraudulent conduct perpetrated against the National Aeronautics and Space Administration (“NASA”), the National Science Foundation (“NSF”), and the Department of Energy (“DoE”).
“Since its inception, the space program has been a symbol of American hope and progress,” said U.S. Attorney Parsons. “When these defendants defrauded NASA and other governmental departments committed to the advancement of scientific knowledge, they were not only ripping off the American taxpayer, they were stealing a part of our future.”
“The NASA Office of Inspector General (“OIG”) will aggressively investigate any attempt to defraud NASA grants, contracts, and operations,” said NASA Inspector General Paul Martin. “The NASA OIG appreciates the cooperative efforts of the entire investigative and prosecution team during this multi-year investigation.”
“The Small Business Innovation Research Program and Small Business Transfer Technology Research Program are valuable tools in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program,” commented Allison Lerner, the Inspector General for NSF. “The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
“The SBIR Program is an essential Department of Energy program that supports scientific excellence and technological innovation,” stated April G. Stephenson, Department of Energy Acting Inspector General. “These convictions serve as a reminder that fraud in the SBIR Program will not be tolerated. The Office of Inspector General remains committed to ensuring the integrity of our programs by holding accountable those who attempt to hide behind sophisticated schemes. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work aggressively with our investigative partners to pursue those who seek to defraud government programs.”
At the times relevant to this case, NASA, NSF, and DoE participated in the Small Business Innovation Research (“SBIR”) Program and Small Business Transfer Technology Research (“STTR”) Program through which Defendants sought and obtained federal funds. Federal SBIR and STTR grant and contract award payments were electronically transferred from the associated federal agency, through the United States Department of the Treasury, and then wired to a business bank account identified by the defendants. The defendants also used wires to transmit interstate communications to and from South Dakota.
Beginning in approximately 2012, and continuing through 2016, within the State and District of South Dakota and elsewhere, Blue Sky Engineering, Black Hills Nanosystems, and Laserlith unlawfully and knowingly conspired and agreed together to devise a scheme to defraud and obtain money and property from NASA, NSF, and DoE. The defendants defrauded these federal agencies through false and fraudulent representations and by sending electronic wire communications in interstate and foreign commerce. The purpose of the corporate-defendants’ conspiracy was to obtain federally-funded projects by and through material misrepresentations, statements, and omissions, thereby depriving the United States the ability to fund other small businesses and resulting in the enrichment of Blue Sky Engineering, Black Hills Nanosystems, Laserlith, and Tang.
According to the parties’ plea agreements, the corporate-defendants committed the following acts, as well as others, in South Dakota and elsewhere: - The corporate-defendants applied for and received federal awards for essentially equivalent work, or portions thereof, concealing the existence of the awards and the relationships between related companies from the awarding agencies. - During the application process, the corporate-defendants misrepresented the existence and use of distinct company facilities, equipment, and operations in South Dakota and North Dakota, and elsewhere outside of California. These representations and statements were false in that all of the companies were co-located in a common facility in Richmond, California, sharing the same resources and performing essentially equivalent work, or portions thereof. - The corporate-defendants’ fraudulent conduct included the preparation and submission of proposals for awards under the NSF, NASA, and DOE programs, specifically involving costs, employees, the eligibility of principal investigators, suitability of facilities, location of facilities, subcontractors, consultants, letters of support, and certifications submitted to NSF, NASA, and DOE. As a result of the corporate-defendants’ conduct, fraudulently-obtained NSF, NASA, and DOE contracts were awarded, totaling $1,084,418.60 between Blue Sky Engineering, Black Hills Nanosystems, Laserlith, and others.
As to Tang’s individual guilty plea, on January 28, 2015, Tang executed the aforementioned scheme to defraud the United States and its agencies and to obtain money and property by means of false representations, and promises relating to material facts. Specifically, Tang knowingly sent a wire communications in interstate or foreign commerce as follows: a wire communication from MicroAssembly, by and through Defendant Blue Sky as general contract and with Black Hills Nano serving as subcontractor, containing NASA proposal numbered H8.03-8999, entitled “Low Cost Multi-Junction Photovoltaic Panels.” This proposal was fraudulent and contained material representations in that it contained “essentially equivalent work,” or a portion thereof, to proposals submitted as part of the conspiracy, as set forth above and as alleged in the Information, between Defendants Blue Sky, MicroAssembly, Laserlith, and Black Hills Nano. After transmitting this wire containing fraudulent and material representations, Defendant Tang withdrew the proposal from NASA. Although NASA proposal numbered H8.03-8999 was later withdrawn, Defendant Tang submitted the proposal with the intent to defraud NASA.
The maximum penalties that the corporations face for Conspiracy to Commit Wire Fraud are a $500,000 fine, a $400 special assessment to the Victim’s Assistance Fund, restitution, and forfeiture. The maximum penalties that Tang faces for Wire Fraud are 20 years in prison, a $250,000 fine, or both imprisonment and a fine, a term of 3 years of supervised release, a $100 special assessment to the Victim’s Assistance Fund, restitution, and forfeiture. The defendants’ sentencing hearing is set for December 3, 2018.
This case was investigated by NASA OIG, NSF OIG, and DoE OIG. The case is being prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
Department of Defense Employee Charged with Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Mohammad Abdul Malek (67, St. Marys, GA) has been arrested and charged by federal criminal complaint with attempted enticement and coercion of a minor. If convicted, he faces a minimum mandatory penalty of 10 years, and up to life, in federal prison.
According to the
complaint , between August 23 and August 26, 2018, Malek engaged in email and text communications with an undercover agent acting as a 13 year-old girl. Malek asked for photos of the “child” and told her that he wanted to teach her about “making love.” Malek was advised and acknowledged that the “child” was a minor and suggested that he and the girl meet to engage in sex. On August 26, 2018, Malek traveled to Jacksonville to meet the “child” and was arrested by officers from the Jacksonville Sheriff’s Office.A criminal complaint is merely an allegation that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ashley Washington.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Defendants Plead Guilty to $3.5 Million Sweepstakes Scam Targeting ElderlyRead the Press Release
ATLANTA - Silvia Sanchez Valverde, Rodolfo Orozco Aguilar, Priscilla Sibaja, Daniel Sibaja, and Elpelice Figueroa Rosales have pleaded guilty to conspiracies to commit mail fraud and money laundering for their roles in a sweepstakes scam that targeted the elderly.
“These defendants stole the life savings of dozens of elderly victims and received more than $3.5 million,” said U.S. Attorney Byung J. “BJay” Pak. “These schemes unfortunately are all too common and citizens should be wary of contests that require upfront payments to receive a prize.”
“Scammers – whether U.S.-based or abroad -- who mistakenly believe they can avoid accountability for their criminal actions by transferring ill-gotten proceeds outside the country should know they are not immune from federal prosecution,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “This case shows an international border is no defense for those who defraud senior citizens, and HSI is committed to using its unique cross-border authority to investigate and hold accountable persons who commit such crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: From February 2016 through September 2017, dozens of victims, most of whom were elderly, were contacted by telephone and told that they had won a sweepstakes or lottery. The victims were told that they could receive their sweepstakes winnings after they paid various expenses, such as taxes and fees. The victims were directed to pay the expenses to various companies controlled by the defendants, such as J.G. Services, RF Financial Services, and Master Builders. The victims would then mail payments via personal and cashier’s checks to addresses that were linked to mailboxes rented by the defendants. The defendants deposited the checks, totaling over $3.5 million, into their bank accounts and then transferred the majority of the funds to Costa Rican bank accounts.
The defendants will appear before U.S. District Judge Leigh Martin May for sentencing as follows:
Rodolfo Orozco Aguilar, 44, of Costa Rica is scheduled to be sentenced on November 7, 2018, at 2:00 p.m.
Daniel Sibaja, 28, of Buford, Georgia is scheduled to be sentenced on November 15, 2018, at 10:00 a.m.
Elpelice Figueroa Rosales, 62, of Buford, Georgia is scheduled to be sentenced on November 19, 2018, at 10:00.
Silvia Sanchez Valverde, 47, of Buford, Georgia is scheduled to be sentenced on November 19, 2018, at 2:00 p.m.
Priscilla Sibaja, 21, of Buford, Georgia is scheduled to be sentenced on November 20, 2018, at 10:00 a.m.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Kelly K. Connors and Cassandra J. Schansman are prosecuting the case.
The Department of Justice Elder Justice Initiative promotes investigations and prosecutions of financial scams targeting the elderly. For more information regarding the Elder Justice Initiative, please visit www.justice.gov/elderjustice.
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.
Convicted Sex Offender Found Guilty of Charges in 2010 Armed Rape and KidnappingRead the Press Release
WASHINGTON –Cardell Torney, Jr., 47, formerly of Washington, D.C., has been found guilty by a jury of sexually attacking a woman, a stranger, in December 2010 in the front yard of a residence in Northwest Washington, U.S. Attorney Jessie K. Liu announced today.
Torney was found guilty of first-degree sexual abuse while armed, with aggravating circumstances, and kidnapping while armed. The verdict, on Sept. 4, 2018, followed a trial in the Superior Court of the District of Columbia. The Honorable Danya A. Dayson scheduled sentencing for Nov. 16. 2018. Torney, who remains held, could face a life prison term.
According to the government’s evidence at trial, the victim met friends on U Street NW on the evening of Dec. 11, 2010 to listen to music and socialize at two U Street clubs. Early Dec. 12, at the end of the night, the victim – who, at the time, was in her early 30s and worked at the U.S. State Department – walked back to her home in the 2200 block of 12th Street NW. Evidence showed that it took about eight minutes to walk from the U Street club to her home.
When she reached her house and was about to unlock her door, a stranger approached her from behind, stuck a sharp object in her back, told her that he was holding a knife, and demanded money. The victim told the attacker that she had no money, but offered him her credit cards and promised she would neither cancel them nor report them stolen. Unsatisfied, the stranger – Torney – forced her at knifepoint into the neighbor’s front yard, forced her onto the cold, wet ground, pulled down her pants and underwear, and raped her anally.
Following the rape, Torney ran away. The victim had no idea who the rapist was. She ran into her home and immediately called 911. The police took the victim to Medstar Washington Hospital Center, where she submitted to a forensic exam by a Sexual Assault Nurse Examiner. Swabs that were taken from her body contained the attacker’s DNA and, in 2012, that DNA led the Metropolitan Police Department (MPD) to Torney. He was arrested in May 2012 and has been in custody ever since.
About a month prior to this attack, Torney had been released from the District of Columbia Jail, where he was serving a sentence for misdemeanor sexual abuse of a child. That prior conviction constituted an aggravating circumstance that exposes Torney, in this case, to the possibility of a sentence of life in prison. Although the prior sexual assault conviction required that Torney register as a sex offender, the present conviction will require that upon his release from jail he register quarterly for life.
In announcing the verdict, U.S. Attorney Liu commended the work of the Sexual Assault Unit of the Metropolitan Police Department, and the District of Columbia Forensic Nurse Examiners. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, Deputy Chief Sharon Donovan of the Homicide Section, Assistant U.S. Attorney Amy Zubrensky, and Forensic Operation/Program Specialist Benjamin Kagan-Guthrie, who assisted with DNA issues; Deputy Chiefs Chrisellen Kolb and Suzanne Curt of the Appellate Division, Assistant U.S. Attorney Peter Smith; Paralegal Specialists Michelle Wicker and Brenda C. Williams; Victim/Witness Advocate Lezlie Richardson; Victim/Witness Service Coordinators Katina Adams-Washington and La June Thames; Litigation Technology Specialists Anisha Bhatia, Jeanie Latimore-Brown and Kimberly Smith; Intelligence Specialists William Hamann, Shannon Alexis and Sharon Johnson; and former Summer Interns Megan Hughes, Jill Rogowski, Lanie Miliotes and Leon Stern.
Finally, U.S. Attorney Liu commended the work of former Assistant U.S. Attorney Jeffrey Cook and Assistant United States Attorneys Jodi Lazarus and Elana Suttenberg for the initial investigation of the case and Assistant United States Attorneys Kathleen A. “Katie” Kern and Peter V. Taylor, who investigated and tried this case.
Connecticut Woman Sentenced for Federal Drug ConspiracyRead the Press Release
BOSTON – A Connecticut woman was sentenced today in federal court in Worcester for her role in a federal drug conspiracy.
Melissa Rock, 40, of Woodstock, Conn., formerly of Pemaquid, Maine, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison and three years of supervised release. In May 2018, Rock pleaded guilty to conspiring to possess with intent to distribute and to distribute heroin and cocaine, specifically cocaine. In 2017, Rock and four others, Vito Nuzzolilo, of Worcester; Kristin Little, of Worcester; Thomas Walker, of Pemaquid, Maine; and Ricardo Ortega-Vasquez, a Dominican national residing in New York City, were indicted for their roles in the conspiracy.
According to court documents, a court-authorized wiretap intercepted Rock and Walker speaking with Nuzzolilo about purchasing cocaine for re-distribution in Maine. On April 10, 2017, Rock contacted Nuzzolilo to ask if he would “front” a quantity of cocaine; she then traveled to Nuzzolilo’s apartment in Worcester. On April 27, 2017, Walker spoke with Nuzzolilo about obtaining additional cocaine, promising that his “workers” had cash to cover it. Rock and Walker then traveled to Nuzzolilo’s Worcester apartment, and, after leaving the apartment, were stopped by law enforcement and found in possession of more than 50 grams of cocaine.
Little pleaded guilty to his role in the drug conspiracy and, in June 2018, was sentenced to 30 months in prison. Walker and Ortega-Vasquez have also pleaded guilty and are awaiting sentencing. Nuzzolilo has pleaded not guilty and is awaiting further court hearings.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the cases.
The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbus Man Pleads Guilty to Possession of A Firearm by A Convicted Felon Under Project Safe NeighborhoodsRead the Press Release
COLUMBUS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Reginald Miller, age 35, of Columbus, Georgia, pled guilty to Possession of a Firearm by a Convicted Felon before Chief U.S. District Court Judge Clay D. Land in Columbus, Georgia on September 5, 2018. This plea subjects Mr. Miller to a maximum sentence of ten (10) years’ imprisonment, a $250,000 fine, or both.
On November 16, 2017, officers with the Columbus Police Department found Mr. Miller in possession of a Glock handgun during a traffic stop. Mr. Miller was prohibited from possessing a gun based on his prior convictions for Theft by Taking and for Possession of a Firearm by a Convicted Felon, both in Superior Court in Muscogee County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Crawford Seals.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Columbus Man Pleads Guilty to Narcotics and Firearms Charges Under Project Safe NeighborhoodsRead the Press Release
COLUMBUS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Clint Walker, age 27, of Columbus, Georgia, pled guilty to Possession of a Firearm by a Convicted Felon and Possession of Methamphetamine with Intent to Distribute in an amount over 50 grams before Chief U.S. District Court Judge Clay D. Land in Columbus, Georgia, on September 5, 2018. This plea subjects Mr. Walker to a mandatory minimum of ten years in federal prison, up to a maximum sentence of life in prison, a $10 million fine, or both, for possession of the methamphetamine and a maximum ten year sentence for the possession of the firearm.
On December 19, 2017, officers with the Columbus Police Department found Mr. Walker in possession of methamphetamine and a Star semi-automatic handgun during a traffic stop. Mr. Walker was prohibited from possessing a gun based on his prior convictions for (1) Robbery by Force, (2) Possession of a Sawed-off Shotgun and Possession of a Firearm by a Convicted Felon, (3) Possession of Methamphetamine with Intent to Distribute and Possession of Xanax with Intent to Distribute, all in Superior Court in Muscogee County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Crawford Seals.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Colorado man admits to drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Johnny L. Morgan, of Walsenburg, Colorado, has admitted to a drug charges, United States Attorney Bill Powell announced.
Morgan, age 66, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and Distribute Marijuana, Tetrahydrocannabinol, and Methamphetamine ,” one count of “Distribution of Methamphetamine,” one count of “Distribution of Tetrahydrocannabinol,” and one count of “Distribution of Marijuana.” Morgan admitted to distributing marijuana, tetrahydrocannabinol, and methamphetamine in June and July 2017 in Braxton County.
Morgan faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Drug Enforcement Administration, The U.S. Postal Inspection Service, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Cleveland man admits to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Anthony Walter Rogers, of Cleveland, Ohio, has admitted to cocaine distribution, United States Attorney Bill Powell announced.
Rogers, age 27, pled guilty to three counts of “Distribution of Cocaine Base” and one count of “Possession with Intent to Distribute Cocaine Base.” Rogers admitted to selling cocaine in Marshall County in August 2017 and April 2018.
Rogers faces up to 30 years incarceration and a fine of up to $2,000,000 for each distribution count and faces up to life incarceration and a fine of up to $8,000,000 for the possession count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Clairton “Drug Runner” Sentenced to More than 2 Years in PrisonRead the Press Release
PITTSBURGH, PA – A resident of Clairton, Pennsylvania, has been sentenced in federal court to 28 months’ imprisonment, followed by six years’ supervised release on his conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Terrence Wade, 49.
According to information presented to the court at the time he entered a guilty plea, Wade was a "runner" for his codefendants, Skyler Carter and Courtney Carter, and at their instruction regularly made deliveries of heroin and crack cocaine, as well as collected payment from Carter’s customers. Wade acknowledged that he was responsible for the distribution of at least 28 grams of cocaine base and at least 20 grams of heroin in the Clairton, Pennsylvania area. Wade suffered from long-standing mental health issues and a crack cocaine condition, and the court stated that it considered those factors in imposing sentence. Wade is the eighth of 21 defendants charged in the conspiracy to be sentenced.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Clairton Woman Pleads Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA. - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Dana McDougald, 33, pleaded guilty to one count of conspiring with 20 other individuals, between March and June 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that McDougald, at the direction of her codefendant, Elliot Page, packaged, stamped and stored bags of fentanyl at her residence. Page paid for her services by assisting in the payment of her rent. McDougald acknowledged that she was responsible for the distribution of between 40 and 160 grams of fentanyl in the Clairton area. She is the eighteenth of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for January 8, 2019, at 10:00 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of not more than $1 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. McDougald remains on bond pending the sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Civic Center Heroin Dealer Sentenced to Four Years in PrisonRead the Press Release
SAN FRANCISCO – Richard Sollid was sentenced today to 48 months in prison for possessing with the intent to distribute heroin announced United States Attorney Alex G. Tse and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Charles R. Breyer, Senior U.S. District Judge.
Sollid, 56, of San Francisco, pleaded guilty to the charges on June 14, 2018. According to his plea agreement, Sollid admitted that San Francisco Police Department officers arrested him on October 27, 2017. The arrest occurred in San Francisco’s Civic Center neighborhood. Sollid was found with approximately 95 grams of heroin and $7,840 in cash. Solid admitted he intended to distribute the drugs.
On April 19, 2018, a federal grand jury indicted Sollid, charging him with one count of possession with intent to distribute heroin, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). Sollid pleaded guilty to the charged offense.
In addition to the prison term, Judge Breyer ordered Sollid to serve a three-year period of supervised release. Sollid is currently in custody and will begin serving his sentence immediately.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of collaboration between the DEA and the San Francisco Police Department.
Buffalo Man Who Attempted to Flee from Police Facing Gun ChargeRead 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 Demetrius Parker, 36, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that according to the complaint, on October 10, 2017, an individual called 911 and reported a road rage incident that had occurred near the intersection of Hertel and Delaware Avenues in Buffalo. The caller (victim) reported that the driver of a green minivan had pulled alongside his vehicle, pointed a gun at him, and threatened to shoot him. The victim described the driver as a black male with a beard wearing a black hat, and the gun as a black handgun with a square-shaped nozzle and orange sights.
Approximately 30 minutes later, two Buffalo Police officers on patrol located the green minivan on Olympic Avenue in Buffalo and initiated a traffic stop after the minivan turned on to Alma Avenue. An officer approached the minivan being driven by the defendant. While speaking with the officer, Parker put the vehicle into gear and attempted to flee the scene with the officer hanging halfway in the vehicle. The minivan crossed Alma Avenue and drove up over the curb in front of a residence and came to a stop. Following a physical struggle, officers secured and detained the defendant.
Subsequently, officers recovered a loaded .45 caliber semi-automatic pistol, next to the driver's seat in the minivan. The victim was transported to the scene on Alma Avenue by officers and immediately identified the minivan as the vehicle involved in the road rage incident, and Parker was positively identified him as the driver who threatened him with a gun.
The defendant was previously convicted of Possession of a Weapon in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree in Erie County Court on March 30, 2006, and is legally prohibited from possessing a firearm.
Parker made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bristol Man Sentenced to 63 Months in PrisonRead the Press Release
SOUTH BEND – Scott Cripe, 31 years old, of Bristol, Indiana, was sentenced by U.S. District Court Judge Robert L. Miller, Jr. after pleading guilty of theft of firearms from a federally licensed firearms dealer and being a felon in possession of a firearm, announced U. S. Attorney Kirsch.
Cripe was sentenced to 63 months in prison, 2 years supervised release and ordered to pay restitution in the amount of $6,435.53.
According to documents in the case, Cripe broke into a federally licensed firearms dealer, in July of 2017. He stole six firearms but was caught by police with one of the stolen firearms less than a day and a half after the theft. Cripe has prior misdemeanor and felony convictions for offenses including burglary, theft, and operating vehicles while intoxicated.
This case was investigated by the ATF with assistance from the Elkhart County Sheriff’s Department, Middlebury Police Department, and South Bend Police Department and prosecuted by Assistant United States Attorney Molly E. Donnelly.
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Bluefield Man Sentenced on Drug ChargesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a Bluefield man was sentenced to federal prison on drug charges. The case was investigated by the Southern Regional Drug and Violent Crime Task Force.
“We are doing everything within our power to shut down illegal pill trafficking,” said United States Attorney Mike Stuart. “One by one, we will take these pill dealers down.”
Johnathan Damron, 41, was sentenced to 27 months on two counts of distributing hydromorphone. Damron pled guilty in April, admitting that he sold hydromorphone to an informant in Bluefield on November 9 and November 13, 2017.
Assistant United States Attorney John File handled the prosecution. The sentence was imposed by Senior United States District Judge David A. Faber.
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Bay Area Doctor Sentenced to Seven Years in Prison for Transportation of Child PornographyRead the Press Release
SAN FRANCISCO – John D. Warbritton, III was sentenced today to 84 months in prison for transportation of child pornography, announced United States Attorney Alex G. Tse, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, and Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Tara Sullivan. The sentence was handed down by the Honorable Charles R. Breyer, U.S. Senior District Judge.
Warbritton, 64, a former resident of Orinda, Calif., and an orthopedic surgeon, pleaded guilty to the charge on May 16, 2018. According to his plea agreement, on March 27, 2016, Warbritton traveled from Bangkok, Thailand, to San Francisco International Airport (SFO) with electronic devices containing child pornography. Specifically, Warbritton was traveling with a laptop and a cellular telephone, both of which contained images depicting children under the age of 12 engaged in sexually explicit conduct. The plea agreement describes some of the images that were on the devices, including depictions of grown men engaged in sexual acts with girls under the age of 12. Warbritton stipulated that between 150 and 300 images of child pornography were on his electronic devices as he traveled to SFO.
A federal grand jury indicted Warbritton on October 13, 2016, charging him with one count of transportation of child pornography and access with intent to view child pornography, in violation of 18 U.S.C. §§ 2252A(a) and (b). Warbritton pleaded guilty to the charge.
In addition to the prison term, Judge Breyer also ordered Warbritton to serve a seven-year term of supervised release to begin after the prison term ends.
Assistant U.S. Attorney Sheila Armbrust is prosecuting the case with the assistance of Ana Guerra. The prosecution is the result of an investigation by HSI, DEA, and IRS-CI.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, they should contact Homeland Security Investigations through the toll-free Tip Line at 1-866-DHS-2-ICE or complete the online tip form at: https://www.ice.gov/webform/hsi-tip-form. These tip lines are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Bay Area CEO Pleads Guilty to Wire Fraud SchemeRead the Press Release
SAN FRANCISCO – Bay Area executive and Croatian national Renato Libric, the former Chief Executive Officer of Bouxtie, Inc., pleaded guilty this afternoon to wire fraud charges related to a $1.5 million investment fraud scheme, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Maxine M. Chesney, U.S. District Judge.
According to the plea agreement, Libric, 39, a resident of Redwood City, Calif., admitted that from August 2017 through February 2018, he devised and carried out a scheme to defraud potential investors in Bouxtie, Inc., a Delaware corporation based in the San Francisco Bay Area. Libric admitted that an essential purpose of the scheme was to overstate the financial condition and prospects of Bouxtie, and to induce potential investors to believe Libric had authority to sell shares in Bouxtie to investors.
Libric took multiple steps to convince members of a Las Vegas-based company to invest over a million dollars in Bouxtie. As part of the scheme, Libric fraudulently suggested to representatives of the potential investors that a large publicly-traded corporation was interested in purchasing Bouxtie at a price of $150 million. To bolster this claim, Libric fraudulently placed the signature of an executive with the alleged purchasing corporation on a forged Term Sheet that purported to indicate the large corporation was interested in the purchase of Bouxtie. In addition, Libric caused the falsified Term Sheet and a falsified bank statement to be transmitted to potential investors. The false bank statement suggested Bouxtie had a balance of over $2,000,000 in an account when, in fact, there was only $7,642.82 in the account. Furthermore, Libric placed the signatures of members of Bouxtie’s Board of Directors on a document that purported to authorize Libric to enter into agreements pursuant to which the investors would lend $1.5 million to Bouxtie and that the loan eventually would be converted into shares of Bouxtie.
As a result of his scheme, Libric convinced investors to transfer $1.5 million into accounts belonging to Bouxtie. Further, after the $1.5 million was deposited, Libric withdrew more than $130,000 of the invested funds from an account and put the funds into his own checking account.
On May 10, 2018, a federal grand jury indicted Libric, charging him with one count of wire fraud, in violation of 18 U.S.C. § 1343 and 2. Today, Libric pleaded guilty to the charge and agreed to make restitution to the victims for their losses.
Judge Chesney scheduled Libric’s sentencing for November 28, 2018. The maximum statutory penalties for wire fraud are 20 years in prison, a $250,000 fine, and 3 years of supervised release. Additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence will 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.
Assistant U.S. Attorney Matthew McCarthy is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
Art Gallery Owner Pleads Guilty in Manhattan Federal Court to Filing False Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today MARY BOONE, a Manhattan art gallery owner, pled guilty to charges arising from her filing of federal income tax returns that falsely claimed approximately $1.6 million in personal expenses as tax deductible business expenses in 2011. BOONE pled guilty before U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Geoffrey S. Berman said: “Mary Boone, a Manhattan art gallery owner, admitted to cheating the U.S. tax system by blatantly lying about her expenses and playing a shell game with bank accounts to hide her true assets. While tax evasion may seem like a victimless crime, it isn’t; all Americans must pay their taxes. And as Boone has learned, tax laws are not abstract.”
IRS-CI Special Agent-in-Charge James D. Robnett said: “Operating a Manhattan art gallery did not entitle Mary Boone to evade paying her taxes. It is a felony offense that carries severe consequences. By falsely claiming millions of dollars of personal expenses as business expenses, Ms. Boone cheated all Americans, since law abiding citizens are expected to pay their fair share.”
According to the allegations contained in the Information to which BOONE pled guilty and statements made in court:
BOONE owns and operates an art gallery (the “Gallery”) with two locations in Manhattan, New York. At all relevant times, BOONE operated the Gallery as a partnership and was solely responsible for the Gallery’s finances. In 2011, BOONE held a 90 percent partnership interest in the Gallery.
In 2012, BOONE caused her accountant to file false and fraudulent 2011 federal income tax returns for the Gallery and for BOONE individually. BOONE caused the Gallery’s 2011 partnership return, Form 1065, to report a false business loss of approximately $52,521, whereas, in reality, the Gallery made a profit of approximately $3.7 million in 2011. BOONE perpetrated this tax fraud in part by using business funds to pay for over $1.6 million in personal expenses and then falsely claiming these personal expenses as business deductions. For example, in 2011, BOONE issued approximately $800,000 in business checks to pay for the remodeling of BOONE’s Manhattan apartment, as well as approximately $120,000 more in business checks to pay for rent and other expenses for a second Manhattan apartment where BOONE lived while the remodeling was underway. In order to conceal the personal nature of these and other expenses, and thereby evade income taxes, BOONE falsely characterized approximately $1.6 million in personal expenses as tax deductible business expenses in handwritten check registers that BOONE provided to her accountant. For example, BOONE falsely characterized a $500,000 payment to a contractor for remodeling BOONE’s apartment as “commission.”
BOONE also caused the 2011 Form 1065 to report a false business loss by artificially inflating the Gallery’s stated expenses and, to a lesser degree, the Gallery’s stated income. BOONE did so by, among other things, providing check registers to her accountant that falsely characterized transactions such as bank transfers as income or expenses. For example, in 2011, BOONE transferred approximately $9.5 million from one business bank account to another, and falsely characterized these bank transfers as tax deductible business expenses, such as commissions to artists.
Through this conduct, BOONE also caused her 2011 individual income tax return, Form 1040, to be materially false. Instead of reporting BOONE’s partnership share of the Gallery’s $3.7 million profit, BOONE’s 2011 Form 1040 reported BOONE’s personal income as limited to a payment of approximately $50,000 and interest income of approximately $60,000, and offset that reported income by BOONE’s share of the Gallery’s false reported business loss. Through this scheme, BOONE evaded over $1.2 million in federal taxes and reported a false tax liability of merely $335 on the Form 1040.
BOONE engaged in similar tax fraud schemes for the calendar years 2009 and 2010. In all, BOONE caused the IRS losses totaling over $3 million, not including penalties and interest.
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BOONE, 66, of New York, New York, pled guilty to two counts of filing a false federal income tax return, each of which carries a maximum sentence of three years in prison. BOONE has agreed to pay restitution to the IRS in the amount of at least $3,097,160, which represents the additional tax due and owing as a result of BOONE’s filing of false individual and corporate income tax returns for the calendar years 2009, 2010, and 2011. Sentencing is scheduled for January 18, 2019, at 11 a.m. before Judge Hellerstein.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
Armed Bank Robber in High-Speed Chase with Marietta Police Department SentencedRead the Press Release
ATLANTA – Donte Deshawn Alston has been sentenced for the armed robbery of a Fifth Third Bank in Smyrna, Georgia, and for brandishing a firearm during the commission of that crime.
“Alston threatened the life of a bank teller at gunpoint during this robbery then endangered the lives of other citizens and police officers during a dangerous high-speed car chase with law enforcement following the robbery,” said U.S. Attorney Byung J. “BJay” Pak. “His conviction and lengthy sentence resulted from a collaborative effort between federal and local law enforcement agencies that will allow Fifth Third Bank and its employees to put this traumatic chapter behind them.”
“This defendant’s complete disregard for the safety of innocent civilians is reprehensible,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thankfully the quick response by officers from the Marietta Police Department, the diligence of FBI agents who investigated this case, and the U.S. Attorney’s Office who prosecuted this case, Alston’s victims can take solace that he will not be a threat to traumatize anyone else.”
“Robbery is the epitome of a premeditated violent crime and fleeing from the police at a high rate of speed endangers the community as well as police officers,” said Marietta Police Chief Dan Flynn. “I appreciate both our officers who placed themselves in harm’s way to capture this violent criminal and our federal partners who effectively used Project Safe Neighborhoods to protect our community.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: On April 5, 2017, Alston robbed Fifth Third Bank in Smyrna at gunpoint then led police on a high-speed chase before hydroplaning into a fence. Alston entered the bank wearing a hooded sweater, black mask, and gloves. He fled the bank with approximately $2,500 in cash that he placed inside his backpack. Alston did not know that the bank’s funds included a GPS tracking device that allowed the Marietta Police Department (MPD) to immediately track the movement of a 2006 silver Chevy Aveo that he was driving.
Alston attempted to evade officers by speeding through a shopping center parking lot and local streets in excess of 70 miles per hour, before ultimately losing control of his vehicle in a residential neighborhood. Alston also tried to escape following the crash, but MPD officers apprehended him in a nearby wooded area. The officers recovered Alston’s backpack that contained a loaded firearm, the stolen bank funds, and the GPS tracking device.
Donte Deshawn Alston, 23, of Atlanta, Georgia was sentenced to 10 years, one month in prison, to be followed by three years of supervised release. Alston was convicted of the offenses of armed bank robbery and brandishing a firearm during a crime of violence after entering a guilty plea on May 1, 2018.
This case was investigated by the Federal Bureau of Investigation and the Marietta Police Department.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Alaskan Man Indicted for Selling Machine Guns with Obliterated Serial NumbersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 15-count indictment charging Benjamin Handley, 25, of Homer, Alaska, with five counts each of unlawful shipment of defaced firearm, unlawful transfer of machinegun, and unlawful transport of firearm. The charges carry maximum penalties of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment, Handley is accused of shipping nine firearms from the State of Alaska to the State of New York in February, March, May, and July of 2018. Those firearms included four Glocks, three MAC9s, a MAC10, and a MAC11. All nine firearms were modified to fire automatic, as machine guns, and had their serial numbers obliterated.
The defendant was arraigned before Chief Magistrate Judge Deborah M. Smith in Anchorage, Alaska and ordered detained. He will be scheduled for arraignment upon his transport to Buffalo.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; ICE-HSI Anchorage; the United States Postal Service Inspection Service, Boston Division, under the direction of Acting Inspector-in-Charge Delany E. De Leon-Colon; and the Alaska Department of Public Safety, Division of Alaska State Troopers. The U.S. Attorney’s Office for the District of Alaska also assisted in Handley’s arrest.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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"Top Ten" Alpha Criminal Pleads Guilty to Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Dannie Dee Dill, 47, of Tulsa, pleaded guilty in United States District Court this morning to participating in a methamphetamine and heroin distribution conspiracy and to possession of methamphetamine and heroin with intent to distribute.
Law enforcement previously identified Dill as a “Top Ten” suspect of Operation Alpha, a Project Safe Neighborhoods’ initiative targeting Northern Oklahoma’s most dangerous criminals, which began in mid-April 2018.
Dill also pleaded guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Destruction or Removal of Property to Prevent Seizure. As part of the plea agreement, Dill and the United States agreed to a sentence of 120 months in prison, criminal forfeiture in the amount of $8,500, and forfeiture of a Glock handgun and associated ammunition.
From approximately August 2017 to April 2018, Dill participated in a scheme to distribute illegal narcotics, including heroin and methamphetamine, in the greater Tulsa area. As part of the scheme, Dill stored narcotics and drug proceeds at two different locations, one in Broken Arrow and one in Tulsa. His narcotics source of supply sent illegal drug shipments for distribution from outside of the state of Oklahoma to the Broken Arrow location. To further his drug trafficking activities, Dill stored a loaded Glock handgun in the Broken Arrow home. Later, in April 2018, Dill removed drug proceeds totaling $15,000 in cash from his coconspirator’s house in an effort to prevent law enforcement from finding the money in a search.
“This is just one of more than 35 federal cases resulting from phase one of Operation Alpha. Alpha criminals are generally the most violent, aggressive, and problematic of the criminal world. We must continue to stop them so all of our neighborhoods can thrive,” said U.S. Attorney Trent Shores. “I am proud of the dedication and cooperation shown by local, county, and state law enforcement officers, as well as our Assistant U.S. Attorneys, in catching and prosecuting criminals like Dannie Dill.”
Phase One of the Operation Alpha initiative utilized crime mapping technology to target areas with high rates of crime and focused on the area surrounding 21st Street and Garnett Road in Tulsa. Phase one operations took place from mid-April through mid-June 2018 and resulted in 174 felony arrests and seizure of 106 firearms.
Several law enforcement agencies were involved in a coordinated effort to bring Dill into custody in connection with the crime, including the Tulsa Police Department, the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joel-lyn A. McCormick and Thomas E. Duncombe prosecuted the case.
Tuesday 4 September 2018
Windsor Locks Man Sentenced to 3 Years in Prison for Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSCAR MONTOYA, 62, of Windsor Locks, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MONTOYA’s wife, Christina Miles, who is a retired nurse, illegally possessed, dispensed and sold prescription medication and other controlled substances. MONTOYA knew of Miles’ illegal activity and, at Miles’ direction, dispensed pills to at least one of Miles’ drug customers. MONTOYA also was aware that family members outside of Connecticut were mailing pills to Miles at their Windsor Locks residence, and that his wife was selling the pills for profit.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of Miles and MONTOYA’s residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. Miles and MONTOYA were arrested on state charges after the search.
The investigation revealed that, through this drug trafficking conspiracy, Miles and MONTOYA amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, in April 2017, Miles and MONTOYA used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
Miles and MONTOYA were arrested on federal charges on November 16, 2017, and have been detained since their arrests. On February 2, 2018, another court-authorized search of their North Street residence revealed additional drug evidence and $41,904 in cash.
On May 21, 2018, MONTOYA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000.
Miles pleaded guilty to the same charges on May 15, 2018.
As part of this case, MONTOYA and Miles agreed to forfeit the Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Miles awaits sentencing.
On May 22, 2018, Miles’s daughter, Christy Miles, pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam. She also awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Marshals Service with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor, Manchester and Suffield Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Vallejo Defendant Pleads Guilty in Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Zalathiel Aguila, 45, of Vallejo, pleaded guilty last Friday to conspiring to commit wire fraud affecting a financial institution and bank fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, from September 2004 through February 2008, Aguila and co-conspirators Sergio Roman Barrientos and Omar Anabo operated an entity named Capital Access LLC, in Vallejo. Capital Access preyed on homeowners nearing foreclosure, convinced them to sign away title in their homes, spent any equity those homeowners had saved, and used straw buyers to defraud federally insured financial institutions out of millions of dollars in home loans obtained under false pretenses. The equity stripped from the properties was then used for operational expenses of the scheme and personal expenses of the conspirators. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and Todd A. Pickles are prosecuting the case.
Barrientos and Anabo are scheduled to be sentenced on September 21, 2018, and April 26, 2019, respectively.
Aguila is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on November 16, 2018. Aguila faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, 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.
Two Mexican Nationals Facing Heroin Trafficking Charges Arising Out of Seizure of Five Pounds of HeroinRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging two Mexican nationals with heroin trafficking offenses arising from a New Mexico State Police seizure of approximately 5.3 pounds of heroin in southern New Mexico on Aug. 27, 2018. The Magistrate Judge also remanded Gerardo Hoyos-Hernandez, 29, and Antonio Mohamed Perez-Llanes, 22, into custody pending trial, which has yet to be scheduled, during this morning’s proceedings.
According to the criminal complaint, a New Mexico State Police officer executed a traffic stop on a vehicle, which Hoyos-Hernandez was driving and in which Perez-Llanes was a passenger, while on patrol in Anthony, N.M., on Aug. 27, 2018. During the traffic stop, the officer requested and allegedly obtained consent to search the vehicle. During his search of the vehicle, the officer allegedly found approximately 2.4 kilograms (5.3 pounds) of heroin in the vehicle.
The penalty for a conviction on the offense charged in the criminal complaint is a statutory minimum penalty of ten years and a maximum of life in federal prison. If convicted, the defendants will be deported after serving any prison sentence imposed. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Homeland Security Investigations and the New Mexico State Police. Special Assistant U.S. Attorney Joni Autrey is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Two Local Men Plead Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Antonio Whitehead, 31, and Richard Board III, 21, entered guilty pleas to an indictment charging them with aiding and abetting the distribution of methamphetamine. Stuart praised the investigation conducted by the Violent Crime and Drug Task Force West.
“Those who aid and abet are every bit as guilty of contributing to our drug crisis as the drug thugs who directly deal,” said United States Attorney Mike Stuart. “Nearly 1,100 West Virginians died last year as a result of overdose, primarily due to the poison peddlers who have made addiction their business. We are working aggressively and with a laser focus to zero in on poison peddlers, drug dealers and their agents and emissaries of despair.”
Whitehead admitted that on November 15, 2017, he met a confidential informant at Board’s residence in Huntington. The informant gave Board $1,000 for an ounce of methamphetamine. Board then gave Whitehead the money and Whitehead gave the informant approximately 28 grams of methamphetamine.
Whitehead and Board both face up to twenty years in federal prison when they are sentenced on December 17, 2018.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Two Illegal Aliens Indicted on Federal Drug Charges and Illegal Reentry after DeportationRead the Press Release
Jackson, TN – Two illegal aliens in West Tennessee have been indicted for conspiracy to distribute more than 50 grams of actual methamphetamine or ICE in the Union City, Tennessee area. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictments today.
On August 20, 2018, a federal grand jury in Jackson, Tennessee returned a three-count indictment that remained under seal until their arrests. The indictment contained counts against each defendant alleging violations under the Controlled Substances Act and illegal reentry after deportation. The charges stem from the defendants’ participation in a conspiracy to distribute and to possess with the intent to distribute ICE and illegal reentry into the United States after having been previously deported.
According to the charging instrument, a task force made up of special agents with the Drug Enforcement Administration and the Union City Police Department arrested the two subjects in an early morning raid on August 30, 2018, on federal drug trafficking charges and illegal reentry after deportation.
U.S. Attorney D. Michael Dunavant said, "This case combines two of the top priorities of the Department of Justice: illegal drug trafficking and criminal immigration enforcement. We work with our local and federal law enforcement partners to aggressively investigate and prosecute any and all suppliers that distribute illegal drugs in West Tennessee. At the same time, we work to identify, prosecute, and remove persons who violate our sovereign immigration laws, and our work focuses on criminal re-entry cases that will further deter and reduce illegality by criminal aliens. Clearly, these offenders pose a significant danger to public safety in Obion county and West Tennessee by their distribution of pure methamphetamine into the community."
The suspects arrested are:
Christino Alcazar-Ortiz, 42, Union City, Tennessee
Armando Alcazar-Ortiz, 37, Union City, Tennessee
Their arrests are the result of a yearlong investigation into a crystal methamphetamine (ICE) drug operation at Mi Tierra Caliente restaurant, owned by the defendants in Union City, Tennessee in which law enforcement officials have seized large amounts of methamphetamine, which was 95% pure.
Perry Barfield, Union City Police Chief said, "Our department would like to thank all the federal agencies involved in this operation, and especially for the working relations with our local drug enforcement officers. We are always grateful for any and all efforts that help rid our community of illegal drug activity."
If convicted, the defendants face not less than 10 years, up to life imprisonment; $1,000,000 fine and 5 years supervised release for the controlled substance violations; and not more than 20 years imprisonment, and a fine of $250,000 for the illegal reentry charges.
This case was investigated by the Drug Enforcement Administration (DEA) and the Union City Police Department.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless or until proven guilty.
Assistant U.S. Attorneys Jerry Kitchen and Lauren Delery are prosecuting this case on the government’s behalf.
Two High-Ranking Bloods Gang Leaders Sentenced to Twenty Years in Prison for Racketeering ConspiracyRead the Press Release
Two high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the set, who also served as “Chairman” of the UBN, and a second leader who held the rank of “Worldwide High” were each sentenced today to 20 years in prison for racketeering conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo, Light and Inferno, 45, of New York City, New York, was sentenced by Chief Judge Frank D. Whitney to serve 20 years in prison. James Baxton, aka Frank White and Grown, 44, of New York City, New York, was also sentenced by Judge Whitney to serve 20 years in prison. Both of these sentences will be served consecutively to the defendants’ current New York State sentences. Pedro Gutierrez, James Baxton, and Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 42, of Raleigh, North Carolina, had been convicted by a federal jury sitting in Charlotte on May 17, following a two-week trial. Cynthia Gilmore is awaiting sentencing.
“With today’s sentencings of two violent gang leaders, including the purported Godfather of the Nine Trey Gangsters, law enforcement has delivered yet another devastating blow to the Nine Trey Gangsters and the United Blood Nation,” said Assistant Attorney General Benczkowski. “The defendants committed crimes that spanned the East Coast, including trafficking deadly narcotics in North Carolina and New York and ordering a gang war in North Carolina. As demonstrated by the 61 defendants now adjudicated guilty in this case, when federal, state, and local law enforcement work together in sustained efforts, we can disrupt and erode violent prison and street gangs.”
“Drugs, thefts, guns, violent assaults, and murders are all crimes the Bloods commit every day to protect their turfs, increase their territory, control and recruit members, and intimidate rival gangs,” said U.S. Attorney Murray. “And all of it happens right here, in our neighborhoods, where honest, hard-working people are simply trying to raise their children without the fear of harm. We cannot overlook or underestimate the long-term impact of gangs on the well-being and prosperity of communities where gang activity is present. That is why the dismantling of criminal enterprises district-wide is both a priority for my office and a goal we share with law enforcement agencies throughout the Western District of North Carolina.”
In February 2017, President Trump directed the Department of Justice “to reduce crime in America,” and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General Rod Rosenstein mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said FBI Special Agent in Charge Strong. “The lengthy federal sentences they received today send a strong message to anyone who tries to fill the criminal void they leave behind. Do not be mistaken, we’ll come after you next with the full strength of our federal, local, and state law enforcement partners.”
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and “Godfather.”
Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, considered themselves “the last ones that God put in power” over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Trial evidence also established that Baxton was a “Worldwide High” of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates.
In all, 61 defendants have been adjudicated guilty in this case, including the two defendants who were found guilty at trial and sentenced today; 58 defendants have previously pleaded guilty in this investigation. This includes 10 defendants in high-ranking leadership positions:
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low.” Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
- Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of “High”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low;”
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN. Rosero was sentenced on July 31, to a sentence of 87 months in prison, to be served federally after completing a sentence in New York State;
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.” Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” Wilson was sentenced on July 30, to serve 82 months in prison.
The following 33 defendants have also pleaded guilty and have been sentenced in this investigation:
- Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
- Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
- Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
- Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
- Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
- Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
- Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25to serve 27 months in prison;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
- Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
- Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
- Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
- Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
- Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 15 defendants have also pleaded guilty and are awaiting sentencing in this case:
- Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
- Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
- Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
- John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
- Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
- Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence; and
- Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Two High-Ranking Bloods Gang Leaders Sentenced to 20 Years for Racketeering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Two high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the "Godfather" of the set, who also served as "Chairman" of the UBN, and a second leader who held the rank of "Worldwide High" were each sentenced today to 20 years in prison for racketeering conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo, Light and Inferno, 45, of New York City, New York, was sentenced by Chief Judge Frank D. Whitney to serve 20 years in prison. James Baxton, aka Frank White and Grown, 44, of New York City, New York, was also sentenced by Judge Whitney to serve 20 years in prison. Both of these sentences will be served consecutively to the defendants’ current New York State sentences. Pedro Gutierrez, James Baxton, and Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 42, of Raleigh, North Carolina, had been convicted by a federal jury sitting in Charlotte on May 17, following a two-week trial. Cynthia Gilmore is awaiting sentencing.
"With today’s sentencings of two violent gang leaders, including the purported Godfather of the Nine Trey Gangsters, law enforcement has delivered yet another devastating blow to the Nine Trey Gangsters and the United Blood Nation," said Assistant Attorney General Benczkowski. "The defendants committed crimes that spanned the East Coast, including trafficking deadly narcotics in North Carolina and New York and ordering a gang war in North Carolina. As demonstrated by the 61 defendants now adjudicated guilty in this case, when federal, state, and local law enforcement work together in sustained efforts, we can disrupt and erode violent prison and street gangs."
"Drugs, thefts, guns, violent assaults, and murders are all crimes the Bloods commit every day to protect their turfs, increase their territory, control and recruit members, and intimidate rival gangs," said U.S. Attorney Murray. "And all of it happens right here, in our neighborhoods, where honest, hard-working people are simply trying to raise their children without the fear of harm. We cannot overlook or underestimate the long-term impact of gangs
on the well-being and prosperity of communities where gang activity is present. That is why the dismantling of criminal enterprises district-wide is both a priority for my office and a goal we share with law enforcement agencies throughout the Western District of North Carolina."
In February 2017, President Trump directed the Department of Justice "to reduce crime in America," and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
"These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison," said FBI Special Agent in Charge Strong. "The lengthy federal sentences they received today send a strong message to anyone who tries to fill the criminal void they leave behind. Do not be mistaken, we’ll come after you next with the full strength of our federal, local, and state law enforcement partners."
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a "dog paw"; the acronym "M.O.B.," which stands for "Member of Bloods"; the words "damu," or "eastside"; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as "Billies."
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as "The 31," which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from "Scrap," "1-Star General" through "5-Star General," "Low," "High," and "Godfather."
Based on evidence introduced during the trial, Gutierrez was a "Godfather" of the Nine Trey Gangsters and had served since 2003 as the "Chairman" of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, considered themselves "the last ones that God put in power" over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Trial evidence also established that Baxton was a "Worldwide High" of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates.
In all, 61 defendants have been adjudicated guilty in this case, including the two defendants who were found guilty at trial and sentenced today; 58 defendants have previously pleaded guilty in this investigation. This includes 10 defendants in high-ranking leadership positions:
Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of "High," and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of "Low," and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of "High," and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of "Low." Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of "High";
Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort
Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of "High," and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of "Low;"
Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of "High," and to serving as an acting "Godfather" of the entire UBN. Rosero was sentenced on July 31, to a sentence of 87 months in prison, to be served federally after completing a sentence in New York State;
Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be "faded straight up." Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of "Low." Wilson was sentenced on July 30, to serve 82 months in prison.
The following 33 defendants have also pleaded guilty and have been sentenced in this investigation:
Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty
to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25to serve 27 months in prison;
Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 15 defendants have also pleaded guilty and are awaiting sentencing in this case:
Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to
racketeering conspiracy;
Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence; and
Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Two Columbia Men Plead Guilty to Prostitution OperationRead the Press Release
JEFFERSON CITY, Mo. – Two Columbia, Mo., men pleaded guilty in federal court today to their roles in a prostitution operation.
Barry Paul Manthe, 65, and Ronald James Clark, 67, each waived his right to a grand jury and pleaded guilty in separate appearances before U.S. Magistrate Judge Willie J. Epps to a federal information that charges them with using the internet to promote a racketeering enterprise, a prostitution business that operated out of a Columbia residence.
In a separate but related case, Kenneth Ronald Jones, 26, of Columbia, pleaded guilty on Aug. 6, 2018, to one count of the sex trafficking of a minor and two counts of transportation for illegal sexual activity by coercion and enticement.
FBI agents learned on June 29, 2016, that a 17-year-old runaway from Wisconsin – identified as “FV1” – was being held against her will and forced into prostitution by Jones. She was located at a residence in Columbia on that day and removed by law enforcement agents. Manthe and Clark operated a brothel at the residence.
FV1 told investigators that Manthe paid for escort advertisements on the website Backpage for the prostitutes utilizing the brothel. According to FV1, she was advertised under a pseudonym but the ads did not include her photograph. Jones found photographs of other females on the Internet and gave them to Manthe to post with the ad.
Clark collected the door fee from the prostitutes, which ranged from $10 to $30. FV1 gave the rest of the money she earned through prostitution to Jones. Clark applied the door fee income to the monthly bills, then split the remaining profit between himself and Manthe.
FV1 told investigators that she met Jones in May 2016 at a party in Milwaukee, Wis., and agreed to travel with him to Columbia to engage in prostitution. Within a few minutes of arriving at a Columbia residence that was used as a brothel, a man arrived soliciting prostitution. This man selected FV1 from the approximately five prostitutes present, and paid to have sex with her. FV1 subsequently engaged in prostitution almost every day, averaging two or three clients per day.
Although Jones knew that FV1 was 17 years old, he told everyone else at the brothel that L.V was 18 years old so she would be allowed to work there.
Another victim, identified as “FV2,” told police that she worked at the brothel every day and was advertised through Backpage. Jones physically abused her in the days prior to her running away in late May or early June 2016. She reported Jones pointed a 9mm handgun in her face and pulled the trigger, but the gun did not fire.
A third victim, identified as “FV3”, told investigators that Jones told her she needed to make money, and threatened to kick her to the streets if she did not do what he wanted. She witnessed Jones point guns and threaten the other victims.
Under federal statutes, Manthe and Clark are each subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Ashley S. Turner. They were investigated by the FBI, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Turlock Man Sentenced to 20 Years in Prison for Trafficking Child PornographyRead the Press Release
FRESNO, Calif. — Edward Paul Cragg, 38, of Turlock, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 20 years in prison for one count of receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
The prison term will be followed by 10 years of supervised release during which Cragg will be required to register as a sex offender, and his access to minors, computers, and the internet will be restricted. Cragg was also ordered to pay $3,000 to $5,000 in restitution to multiple victims whose images Cragg obtained and made available to others.
Evidence introduced at trial established that from approximately August 1, 2015, through March 1, 2016, Cragg used a file-sharing program to search for and save more than 130 child pornography videos. Some of the videos depicted images of infants or toddlers being subjected to sadistic or masochistic abuse.
In sentencing Cragg, Judge O’Neill found that Cragg had completely failed to acknowledge what he had done was wrong or criminal and described the defendant’s conduct as “beyond destructive” to the victims whose images were involved in the offense.
This case was the result of an investigation by the Turlock Police Department with assistance from the Ceres Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys David Gappa and Ross Pearson 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.
Tampa Man Sentenced to Nine Years for Credit Card Fraud and Identity Theft in Gas Pump Skimmer CaseRead the Press Release
Tampa, Florida – United States District Judge Charlene Edwards Honeywell today sentenced Yoel Graveran-Palacios (37, Tampa) to nine years in federal prison for conspiracy, credit card fraud, and identity theft. A federal jury found Yoel Graveran-Palacios and his twin brother, Noel Graveran-Palacios, guilty on April 24, 2018. Noel Graveran-Palacios is scheduled to be sentenced on September 19, 2018.
According to testimony and evidence presented at trial, Noel and Yoel Graveran-Palacios worked together, and with others, to place skimmers on gas pumps in the Tampa Bay area. Using the account numbers stolen from the skimmers, they made counterfeit credit cards and then used them to purchase merchandise including gas, toys, clothes, and gift cards, at area retailers. They then used the gift cards to purchase merchandise at home improvement stores, and later returned the items for cash. Trial evidence included hundreds of recovered stolen account numbers, as well as dozens of store surveillance videos featuring the conspirators using the counterfeit credit cards.
This case was investigated by the U.S. Secret Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
St. Croix Shooter and Convicted Felon Sentenced to Twenty-Three Years for Gun-Related ConvictionsRead the Press Release
St. Croix, USVI – District Court Judge Wilma A. Lewis, on August 31, 2018, sentenced Nathaniel Thomas, Jr. to eight years imprisonment for possession of a firearm by a felon, fifteen years imprisonment for unauthorized possession of a firearm, and five years imprisonment for reckless endangerment, United States Attorney Gretchen C.F. Shappert announced. The firearm sentences were imposed consecutively and the reckless endangerment sentence was imposed concurrently with the others. Judge Lewis also ordered Thomas to pay a fine of $2,000.00 and a special assessment of $100.00.
On March 13, 2018, a federal jury convicted Thomas after a two-day trial. According to the evidence presented at trial, Thomas drove a vehicle into the Gas For Less Service Station on St. Croix in the early morning hours of May 15, 2016. He was followed by individuals in a Ford Explorer. Thomas stopped his car, came out and hid between nearby vehicles as the Explorer reversed direction. At this point shots were being discharged. When the Explorer started to leave the service station, Thomas emerged and chased the Explorer on foot while discharging shots in the direction of the Explorer. He subsequently returned to his vehicle and left the scene. Individuals in the area ran for cover and hid during the shooting. Over fifty spent shell casings were recovered from the crime scene, many of which were on the nearby Queen Mary Highway. The Explorer collided with two vehicles and came to rest nearby. Bullet holes were discovered in the windshield, on the driver and passenger sides, and at the rear of the Explorer. Thomas was not authorized to possess a firearm and had previously been convicted of a felony offense.
Thomas faces additional federal charges stemming from his alleged escape on March 15, 2018 from the Golden Grove Correctional Facility, following his conviction two days earlier for the May 2016 shooting episode in St. Croix. Federal law enforcement agents located Thomas on April 7, 2018 in Puerto Rico.
This case was investigated by the Virgin Islands Police Department and by the Bureau of Alcohol Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States
Attorney Alphonso G. Andrews, Jr.
Rapid City Man Sentenced for Third Failure to Register as a Sex Offender ConvictionRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 4, 2018, by U.S. District Judge Roberto A. Lange.
Bradley Makes Room For Them, age 33, was sentenced to 20 months in federal prison, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Makes Room For Them was indicted by a federal grand jury on May 15, 2018. He pled guilty on June 27, 2018.
Makes Room For Them was convicted of Aggravated Sexual Abuse in September 2003. As a result of this conviction, he is required to register under the Sex Offender Registration and Notification Act. Makes Room For Them was convicted of Failure to Register as a Sex Offender in 2014 and again in 2016. In March 2018, Makes Room For Them was released from prison and began a period of supervised release. Initially Makes Room For Them properly updated his registration. In April 2018, Makes Room For Them updated his registration using a different address in Rapid City, but he subsequently failed to reside at that address. An arrest warrant was subsequently issued and on April 28, 2018, Makes Room For Them was arrested in Martin, South Dakota.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Makes Room For Them was immediately turned over to the custody of the U.S. Marshals Service.
Quebec Man Sentenced to 51 Months Imprisonment for Smuggling over 100 Handguns from Vermont to QuebecRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Alexis Vlachos, 41, of Montreal, Quebec, was sentenced today in United States District Court by Judge William K. Sessions III to 51 months imprisonment for smuggling of over 100 handguns from Vermont to Quebec. Vlachos previously pled guilty to conspiring to export, and actually exporting, firearms from the United States to Canada, without a license, in violation of the Arms Control Export Act.
As part of his guilty plea, Vlachos agreed to the following facts: From July 2010 to April 2011, Vlachos and other persons, including defendants Annette Wexler and Jaime Ruiz, executed a plan to smuggle over 100 handguns, purchased in Florida, to Quebec, Canada, by way of northern Vermont and northeast New York. As part of this conspiracy, Annette Wexler and another coconspirator purchased these handguns from multiple federally licensed firearms dealers in the Tampa, Florida area. At the time of purchasing these firearms at the gun stores, Wexler and a coconspirator made multiple misrepresentations about the nature of these purchases on forms required by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
After purchasing these firearms, Annette Wexler, Jaime Ruiz, and another coconspirator transported these firearms to Quebec through northeastern Vermont and northeastern New York. As part of the conspiracy, Vlachos would usually take custody of the firearms in Quebec, where he sold many of them.Some of the firearms smuggled into Quebec were first brought to the Haskell Free Library in Derby Line, Vermont by Annette Wexler and Jaime Ruiz. The Haskell Free Library building straddles the international border of Derby Line, Vermont and Stanstead, Quebec.
On at least two occasions, in about March of 2011, Annette Wexler and Jaime Ruiz worked together to stash several firearms contained in small backpacks inside the trashcan of the library bathroom. Wexler then coordinated with Vlachos, who had entered the library from Quebec, to retrieve the firearms from the bathroom. Vlachos then transported the firearms to Quebec, where he sold many of them.
In April 2011, a coconspirator in Florida purchased thirty-four firearms from a federally licensed firearms dealer in the Tampa, Florida area. Vlachos and Wexler then drove these guns to a remote section of northeastern Vermont near Lake Wallace. Vlachos hiked these firearms across the international border into Quebec.
This conspiracy involved the smuggling of at least 104 handguns from the United States to Canada. Neither Vlachos, nor any of the others involved in these offenses, obtained a license from the United States Department of State prior to exporting these handguns to Canada.
Annette Wexler previously pled guilty to conspiring to make false statements to licensed gun dealers and unlawful exportation. On July 25, 2017, United States District Judge J. Garvan Murtha sentenced Wexler to time-served and two years of supervised release. Ruiz also pled guilty to two offenses relating to this smuggling conspiracy but, due to his death by illness, the charges against him were dismissed.
Vlachos was originally charged with these offenses in January 2015 but the process of extraditing him to the United States took over two years to complete. Vlachos faced a maximum possible term of imprisonment of twenty years.U.S. Attorney Christina E. Nolan praised the multiagency investigation that led to the conviction of Vlachos. She stated: “Because Canadian and U.S. law enforcement agencies joined forces to conduct a thorough investigation and secure this conviction, a dangerous gun trafficker with a long criminal history is off the street and innocent Canadians and Americans are safer. This is an outstanding example of how we work as a cross-border law enforcement community with our partners in Quebec and support each other as we strive to secure justice and safer communities for our citizens.”
“Swanton Sector Border Patrol depends on the close and continued collaboration with our federal, state, local, tribal and international law enforcement partners to accomplish its mission to secure the border,” said Swanton Sector Acting Chief Patrol Agent Robert Garcia. “The country and border community is a safer place thanks to the hard work of all the partner agencies involved in this investigation.”
“Homeland Security Investigations is proud to stand with our domestic and foreign law enforcement partners in stemming the flow of cross-border arms trafficking,” said Peter C. Fitzhugh Special Agent in Charge, Homeland Security Investigations (HSI) Boston. “This investigation and the resulting prison sentence should be a clear indication of HSI’s commitment to disrupting and dismantling Transnational Criminal Organizations, both domestic and abroad.”
This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. Vlachos is represented by Paul Volk, Esq. of Burlington. This case was jointly investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Border Patrol. In addition, the Royal Canadian Mounted Police and the Surete du Quebec provided assistance in this investigation.