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12 October 2018
Three Traders Charged, and Two Have Agreed to Plead Guilty, in Connection with More Than $60 Million Commodities Fraud and Spoofing ConspiracyRead the Press Release
HOUSTON - Three former commodities traders of a New York-based financial services firm (Trading Firm A) were charged yesterday for their alleged participation in an over $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets. Two of these traders have agreed to plead guilty for their respective roles in the criminal conspiracy.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Yuchun “Bruce” Mao, 39, a citizen of the People’s Republic of China, was indicted on one count of conspiracy to commit commodities fraud, two counts of commodities fraud and two counts of spoofing. Kamaldeep Gandhi, 36, of Chicago, was charged by criminal information with two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. Krishna Mohan, 33, of New York, New York, was charged by criminal information with one count of conspiracy to engage in wire fraud, commodities fraud and spoofing.
“The Southern District of Texas aggressively prosecutes white collar crime,” said Patrick. “Home to the second most Fortune 500 companies in the nation, our Houston division is uniquely suited to prosecute white collar fraud in whatever form it comes, and we enjoy terrific relationships with law enforcement partners around the country and from around the world.”
“As alleged in today’s charges, these individuals engaged in a sophisticated scheme to distort the futures market for their own advantage by placing large ‘spoofed’ trading orders that they never intended to execute,” said Benczkowski. “Investor trust is the cornerstone of our trading markets, and the Criminal Division will aggressively investigate and prosecute those who undermine that trust by engaging in spoofing or any other illegal conduct.”
“These charges demonstrate the FBI’s firm commitment to hold accountable those who seek to deceive and defraud the public,” said Sallet. “Such schemes cannot be allowed to threaten confidence in the free market, which represents one of many strengths of our great nation. We will continue to work together to aggressively pursue anyone who undermines the integrity of our financial markets and disregards the rule of law.”
The indictment alleges Mao was co-head of a trading team that traded commodities on behalf of Trading Firm A, working in Chicago and New York. The indictment alleges that from in or around March 2012 through in or around March 2014, Mao and others conspired to mislead the markets for E-Mini S&P 500 and E Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME) and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT). The indictment further alleges Mao and his co-conspirators deceived market participants and manipulated markets by placing thousands of orders that they did not intend to execute, or “spoof orders,” in order to create the false and misleading appearance of increased supply or demand. Market participants that traded futures contracts in these three markets while the spoof orders distorted market prices incurred market losses of over $60 million. Mao and his co-conspirators are alleged to have placed these spoof orders in order to benefit themselves Trading Firm A.
Count one of the criminal information alleges Gandhi conspired, with Mao and others, to commit the underlying offenses while employed at Trading Firm A. Count two of the criminal information alleges that, from in or around May 2014 through in or around October 2014, Gandhi, while employed at a second Chicago-based trading firm (Trading Firm B), conspired with others to mislead the markets for E-Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand. Gandhi has agreed to plead guilty to the charges in the criminal information.
The charges against Mohan arise from his participation in the conspiracy alleged above while employed at Trading Firm A. Mohan has agreed to plead guilty to the charge in the criminal information.
The FBI’s Chicago Field Office is investigating the case. Assistant U.S. Attorney John Lewis and Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section are prosecuting the case. The CFTC’s Division of Enforcement provided substantial assistance in this case.
The charges in the indictment and the two criminal informations are merely allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Three Traders Charged, and Two Agree to Plead Guilty, in Connection with over $60 Million Commodities Fraud and Spoofing ConspiracyRead the Press Release
Three former commodities traders of a New York-based financial services firm (“Trading Firm A”) were charged yesterday for their alleged participation in an over $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets. Two of these traders have agreed to plead guilty for their respective roles in the criminal conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Yuchun “Bruce” Mao, 39, a citizen of the People’s Republic of China, was indicted on one count of conspiracy to commit commodities fraud, two counts of commodities fraud and two counts of spoofing. Kamaldeep Gandhi, 36, of Chicago, was charged by criminal information with two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. Krishna Mohan, 33, of New York, New York, was charged by criminal information with one count of conspiracy to engage in wire fraud, commodities fraud, and spoofing.
“As alleged in today’s charges, these individuals engaged in a sophisticated scheme to distort the futures market for their own advantage by placing large ‘spoofed’ trading orders that they never intended to execute,” said Assistant Attorney General Benczkowski. “Investor trust is the cornerstone of our trading markets, and the Criminal Division will aggressively investigate and prosecute those who undermine that trust by engaging in spoofing or any other illegal conduct.”
“The Southern District of Texas aggressively prosecutes white collar crime,” said U.S. Attorney Patrick. “Home to the second most Fortune 500 companies in the nation, our Houston division is uniquely suited to prosecute white collar fraud in whatever form it comes, and we enjoy terrific relationships with law enforcement partners around the country and from around the world.”
“These charges demonstrate the FBI’s firm commitment to hold accountable those who seek to deceive and defraud the public,” said Special Agent in Charge Sallet. “Such schemes cannot be allowed to threaten confidence in the free market, which represents one of many strengths of our great nation. We will continue to work together to aggressively pursue anyone who undermines the integrity of our financial markets and disregards the rule of law.”
The indictment alleges that Mao was co-head of a trading team that traded commodities on behalf of Trading Firm A, working in Chicago and New York. The indictment alleges that from in or around March 2012 through in or around March 2014, Mao and others conspired to mislead the markets for E-Mini S&P 500 and E‑Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME), and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT). The indictment further alleges that Mao and his co-conspirators deceived market participants and manipulated markets by placing thousands of orders that they did not intend to execute, or “spoof orders,” in order to create the false and misleading appearance of increased supply or demand. Market participants that traded futures contracts in these three markets while the spoof orders distorted market prices incurred market losses of over $60 million. Mao and his co-conspirators are alleged to have placed these spoof orders in order to benefit themselves Trading Firm A.
Count one of the criminal information alleges that Gandhi conspired, with Mao and others, to commit the underlying offenses while employed at Trading Firm A. Count two of the criminal information alleges that, from in or around May 2014 through in or around October 2014, Gandhi, while employed at a second Chicago-based trading firm (identified in the information as “Trading Firm B”), conspired with others to mislead the markets for E-Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand. Gandhi has agreed to plead guilty to the charges in the criminal information.
The charges against Mohan arise from his participation in the conspiracy alleged above while employed at Trading Firm A. Mohan has agreed to plead guilty to the charge in the criminal information.
The FBI’s Chicago Field Office is investigating the case. Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney John Lewis of the Southern District of Texas are prosecuting the case. The CFTC’s Division of Enforcement provided substantial assistance in this case.
The charges in the indictment and the two criminal informations are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Three Nebraska Farmers Plead Guilty to Fraud Involving Sales of Grain Fraudulently Marketed as OrganicRead the Press Release
Three farmers from Nebraska who grew grain that was not organic but who knew that the grain was being marketed and sold as organic pled guilty today in federal court in Cedar Rapids.
Tom Brennan, age 70, James Brennan, age 40, and Mike Potter, age 41, all from Overton, Nebraska, were each convicted of one count of wire fraud.
At their respective plea hearings, each man admitted to growing grain between 2010 and 2017 that was not organic. Each further admitted that they knew the grain was being marketed and sold as organic, even though it was not in fact organically grown. The charging documents allege that, during the 2010 to 2017 period, each of the three farmers received more than $2.5 million for grain marketed as organic.
Sentencing before United States District Court C.J. Williams will be set after a presentence report is prepared. All three men were released on bond pending further proceedings. Each faces a possible maximum sentence of 20 years’ imprisonment, at least a $250,000 fine, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Jacob Schunk and Anthony Morfitt and investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 18-CR-2058, 18-CR-2059, and 18-CR-2060.
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Three Florida Men Sentenced for Roles in Interstate Opioid Trafficking ConspiracyRead the Press Release
BOSTON – Three Florida men were sentenced in federal court in Boston for their roles in an opioid trafficking conspiracy across Massachusetts and Florida.
Craig Drummond, 27, of Sunny Isles Beach, Fla., was sentenced today by U.S. District Court Judge Denise J. Casper to 10 months in prison and two years of supervised release. In March 2018, Drummond pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.
Darren Infante, 27, of Miami, Fla., was sentenced today by Judge Casper to time served and two years of supervised release, including seven months of home detention. In August 2017, Infante pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
Jenssi Astacio, 32, of Sunny Isles Beach, Fla., was sentenced yesterday by Judge Casper to 70 months in prison and three years of supervised release. In April 2018, Astacio pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.
In March 2017, Astacio, Drummond, Infante, and seven others were arrested and charged. The arrests were the result of a three-year investigation that began in 2014. The defendants conspired to transport sizeable quantities of oxycodone from Miami, Fla., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sales were then transported and/or transferred back to Florida and laundered in various ways.
Astacio shipped - and directed other co-conspirators to ship - large quantities of oxycodone pills from Florida to Massachusetts, negotiated with other co-conspirators the sale of oxycodone pills for redistribution, and directed co-conspirators to use bank accounts to launder the cash proceeds of their illicit sale of drugs. Drummond shipped sizeable quantities of oxycodone from Miami to Massachusetts, where it was distributed in the greater Boston area, and Infante shipped eight packages containing oxycodone from Miami to various addresses in Massachusetts for distribution.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton and Waltham Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Craig Estes of Lelling’s Narcotics and Money Laundering Unit are prosecuting the cases.
Suburban Chicago Man Guilty of Trying to Illegally Export Guns and Ammunition to HaitiRead the Press Release
CHICAGO — A suburban Chicago man has admitted in federal court that he tried to illegally export nearly two dozen guns and ammunition to Haiti from Illinois.
PATRICK GERMAIN, 45, of Evanston, Ill., pleaded guilty to one count of knowingly and fraudulently attempting to export firearms contrary to the laws and regulations of the United States. In a written plea agreement, Germain admitted that in 2016 he planned to illegally export 16 handguns, five shotguns, a rifle and ammunition from Evanston to Haiti by way of Miami, Fla. Germain built a plywood container, filled it with the guns and ammunition, and then hid it inside a cargo van, the plea agreement states. The van was then delivered to a shipping company in Miami but law enforcement seized it before it could be transported to Haiti.
The guilty plea was entered Tuesday in federal court in Chicago. It carries a maximum sentence of ten years in prison. U.S. District Judge Joan Humphrey Lefkow set sentencing for Jan. 29, 2019.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Dan Clutch, Special Agent-in-Charge of the Chicago Field Office of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Valuable assistance was provided by U.S. Customs and Border Protection and the Illinois State Police. The government is represented by Assistant U.S. Attorney William Dunne.
According to the plea agreement, Germain in June 2016 purchased the firearms and ammunition from dealers in Illinois. Germain also purchased three vehicles, including the cargo van that he would later use to transport the concealed firearms and ammunition. He then hired an Illinois company to deliver the three vehicles to Miami, where Germain had arranged for a Florida shipping company to transport the vehicles to Haiti.
When asked by the Illinois company why the cargo van appeared to be overweight, Germain represented to the driver that the added weight was due to furniture in the backseat. Germain also misled the Florida shipping company by not notifying them that the cargo van was filled with guns and ammunition, according to the plea agreement.
Stuart Doctor Charged in Twenty-Six Count Federal Health Care Fraud IndictmentRead the Press Release
A doctor has been charged with committing health care fraud out of her practice in Stuart, Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Pam Bondi, Florida Attorney General (Florida Medicaid Fraud Control Unit), made the announcement.
Sheetal Kanar Kumar, M.D., 48, of Stuart, appeared in federal court and was arraigned on twenty-six counts of health care fraud (Case No. 18-14063-CR-Marra). The trial is currently set to begin in Fort Pierce on November 13, 2018, before U.S. District Judge Kenneth A. Marra.
According to the indictment, Dr. Kumar owned and operated the medical practice Advanced Healthcare for Women in Stuart, Florida. She was an obstetrician and gynecologist licensed to practice medicine. She also provided medical services treating incontinence. From at least as early as January 2014, until July 2017, Dr. Kumar submitted or caused the fraudulent submission of claims to Medicare, Medicaid and private insurance companies. The fraudulent claims sought money for specific health care benefits, items, and services that were not provided as billed. As a result of such false and fraudulent claims, Medicare, Medicaid and private insurance companies, made payments in the approximate amount of $926,802.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and Florida Medicaid Fraud Control Unit in this matter. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Stow man indicted for counterfeitingRead the Press Release
Timothy G. Simms, 31, of Stow, was indicted for counterfeiting.
The indictment alleges that between July 2 and July 4, Simms did falsely make, forge, counterfeit and alter one or more obligations or other securities of the United States, with the intent to defraud.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Statement of United States Attorney Mike Stuart Regarding the Jury's Verdict in the Trial of Former Supreme Court Justice Allen Loughry IIRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“Today is an important day for the people of West Virginia. The jury has rendered judgment on Justice Loughry. The jury has confirmed that a Justice on the state’s highest court - – Justice Allen Loughry - is guilty of numerous and serious federal crimes, including witness tampering and lying to a federal agent.
As I stated at the outset of this matter, public corruption is a cancer that erodes public confidence and undermines the Rule of Law. This is not a sad day for West Virginia but, rather, a hopeful one. The system worked. Corruption was rooted out. Confidence is restored.
I want to thank the jury and the court in this matter. There is no more solemn duty in the maintenance of liberty than that of a juror. This jury took its role seriously, was deliberate in its evaluation of the evidence, and delivered its verdict. I want to thank each of them for their patience and respect for this critically important process. I also want to thank the FBI, in particular Special Agent Jim Lafferty, the West Virginia Legislative Commission on Special Investigations, the Internal Revenue Service—Criminal Investigation Division, and Assistant United States Attorneys Philip H. Wright and Greg McVey for their tireless and excellent work in preparation for this case and their awesome work during trial. In addition, I want to thank my entire team for their contributions to this case including the work on this matter by former AUSA’s L. Anna Forbes and Eric Bacaj.
Today, with the verdict rendered by the jury, it is my sincere hope that our citizens can again have confidence that the law matters and that public officials who have lost their way will be held accountable. The people of West Virginia have worked too hard and too long to tolerate misconduct that strikes at the heart of the public’s trust by their elected officials. I intend to do all that I can to ensure that our citizens have the honest government they deserve.
I also want to offer prayers to Justice Loughry and the Loughry family. This is a difficult day. The jury rendered its verdict. He is held accountable but that doesn’t change the earnestness and sincerity for my offer of prayers in this matter.
Today’s verdict is a serious defeat for public corruption and those that abuse the public trust. Today’s verdict is a victory for the people of West Virginia and honest government.”
FBI Special Agent in Charge Robert Jones of the Pittsburgh Field Office added:
"No matter the level or the people involved, public corruption will not be tolerated in our communities," said FBI Pittsburgh Special Agent in Charge Robert Jones. "Just like everyone else, a judge needs to follow the law. The FBI will continue to hold accountable those who betray the public's trust."
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Statement of United States Attorney Mike Stuart Regarding the Justice Department and ATF Providing National Integrated Ballistic Information Network Equipment to WV Law EnforcementRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“More resources for law enforcement in West Virginia. NIBIN is a potential game changer and we are excited by its potential impact for law enforcement right here in the Southern District of West Virginia. We are tremendously appreciative of ATF for its support in providing this new, expensive ballistic imaging equipment to our great state. We are prosecuting more firearms offenders than ever before and NIBIN will provide us an amazing tool for linking criminal activity and, ultimately, holding violent criminals and offenders accountable for their bad acts. Crime gun intelligence and the use of the NIBIN network will allow law enforcement to better connect shooting incidents and identify shooters. I look forward to working with ATF, all of my federal partners, and state and local law enforcement to ensure we maximize the potential of this tremendous investment in West Virginia public safety.”
For more information on the deployment of NIBIN equipment, please see the Department Of Justice press release below.
SDWVNews and USAttyStuart
FOR IMMEDIATE RELEASE
THURSDAY, OCTOBER 11, 2018
JUSTICE DEPARTMENT AND ATF NAME 22 SITES TO RECEIVE NEW NATIONAL INTEGRATED BALLISTIC INFORMATION NETWORK EQUIPMENTEvidence based forensic tool to help solve violent crime
WASHINGTON — The Department of Justice and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) today announced the deployment of ballistic imaging equipment used by ATF’s National Integrated Ballistic Information Network (NIBIN) to 22 state and local law enforcement agencies.
"Under President Donald Trump, the Department of Justice is prosecuting more firearm offenders than ever before," Attorney General Sessions said. "Ballistics technology has given law enforcement an unprecedented ability to make connections between cases and track down dangerous criminals. Today this Department of Justice is once again investing in the 85 percent of law enforcement officers who serve at the state and local levels and we are equipping them with cutting edge technology that will lead to smarter, targeted prosecutions of the most dangerous people in their communities. I have no doubt that this equipment will help to reduce crime in America."
“Crime Gun Intelligence, including the timely use of the NIBIN network, is the cornerstone of ATF’s violent crime reduction strategy. By deploying equipment to these 22 law enforcement agencies, investigators will now receive investigative leads within 48 hours. They will have new opportunities to disrupt the shooting cycle and make our communities safer,” said ATF Deputy Director Thomas Brandon.
As the only crime gun ballistic network in the United States, NIBIN compares images of cartridge casings recovered at crime scenes and firearms recovered by law enforcement to connect shooting incidents and identify shooters. ATF’s broader Crime Gun Intelligence strategy involves multiple technologies to identify criminal shooters and uses NIBIN as a leads-generator in support of this comprehensive approach. The deployments of this NIBIN equipment will help fill gaps in the intelligence and investigative networks and allow for a more efficient processing of firearm related violent crime evidence.
There are 16 agencies receiving NIBIN equipment for the first time:
Six agencies are receiving additional equipment to enhance their successful crime gun intelligence programs:
ATF has 25 Crime Gun Intelligence Centers (CGIC) across the United States in which ATF collaborates with local police departments and federal, state, and local prosecutors. The CGICs utilize cutting-edge technology and dedicated investigative teams to disrupt shooters and identify their source of crime guns before they can commit further criminal acts.
To support local participation in the CGIC approach, the Department recently awarded $5 million under the Local Law Enforcement CGIC Integration Initiative to encourage local jurisdictions to use intelligence, technology, and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes. The Department also awarded more than $30 million to Project Safe Neighborhoods (PSN), the centerpiece of the Department’s crime reduction efforts. Through PSN, the Department is targeting the most violent criminals in the most violent areas by utilizing policing tools like CGICs.
NIBIN is helping cities solve crimes every day. Examples of these NIBIN success stories include:
- In January 2017, an unknown suspect shot a victim at a gas station in Detroit, Michigan. Police recovered cartridge casings and entered them into NIBIN. In April 2017, an unknown suspect fatally shot a limousine driver at a gas station. NIBIN linked the two scenes, and in so doing, provided investigators the intelligence they needed to identify the shooter and remove a murderer from the streets. The shooter was sentenced to life in prison.
- Detectives in New Albany, Indiana, investigated a homicide but had no suspect, one cartridge casing, and information that led them to believe the shooter may have fled to Louisville, Kentucky. A month later, the Louisville Police Department responded to an incident where several shots had been fired inside an apartment. The firearm recovered at that scene was linked by NIBIN to the murder in New Albany. As a result, the shooter was arrested, charged with the homicide, and sentenced to 17 years in prison.
- In 2018, Cincinnati Police investigated a homicide and recovered cartridge casings from the scene, subsequently entering them into NIBIN. A month later, the Cincinnati Police stopped two suspects for driving a stolen car. During the stop, the police recovered two firearms from the car and entered them into NIBIN. NIBIN linked the guns to the murder, and after being prosecuted for the homicide, the two suspects were sentenced to 18 and 50 years in prison.
More information on NIBIN and Crime Gun Intelligence can be found here: NIBIN Fact Sheet and CGIC Fact Sheet.
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AG
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Six Defendants Arrested in A Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a superseding indictment charging six defendants with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. Named in the indictment are Eduardo Enrique Valdez, Edgar Pavia, Adrian Goudelock, a/k/a AD, a/k/a Ace, a/k/a Ace Boogs, Eric Young, Lance Parker, and Jai Hunter. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the superseding indictment and a previously filed complaint, an investigation began following the seizure of approximately 10 kilograms of cocaine and $259,960 in U.S. currency. On October 3, 2017, defendants Valdez, Pavia, and Goudelock met in Cleveland, OH, prior to the shipment of a bulk quantity of cocaine from El Paso, Texas, to Buffalo, NY. On October 19, 2017, Homeland Security Investigations Special Agents conducted a controlled delivery of 10 sham bricks of cocaine in Pembroke, NY, which resulted in the federal arrest of defendant Valdez.
In July 2018, investigators intercepted wire and electronic communications between defendants Pavia and Goudelock through court-authorized wiretaps. Intercepted calls and messages revealed that a bulk shipment of cocaine was to be imminently delivered to Goudelock in the Buffalo area. Goudelock was also expected to provide bulk drug proceeds. In a conversation on July 25, 2018, Pavia informed Goudelock that he would be receiving 17 kilograms of cocaine.
That same day, law enforcement officers seized approximately 17 kilograms of cocaine from defendant Lance Parker during the execution of a search warrant. Law enforcement officers also searched a tractor trailer, driven by defendant Young, located on Slade Avenue in West Seneca, NY and recovered 52 shrink-wrapped and taped bundles of currency, predominantly in $10,000 bundles. In total, $519,580 in U.S. currency was seized from a bag. Officers also located a hidden compartment in the rear wall of the sleeper area of the tractor cab and recovered three plastic wrapped packages of bulk US currency totaling over $145,000.
In September 2018, investigators intercepted another series of wire and electronic communications between defendants Pavia and Goudelock discussing the shipment of another 20 kilograms of cocaine, which led to their arrests.
Today’s superseding 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; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard.
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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Shelton Man Pleads Guilty to Distributing XanaxRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KAMIL GOLEBIOWSKI, 27, of Shelton, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of distribution of alprazolam, also known as Xanax.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 9, 2017, the Seymour Police Department and emergency medical personnel responded to a report of a suspected overdose at a residence in Seymour. At the residence, medical personnel pronounced a 29-year-old male deceased. Investigators seized drug and non-drug evidence from the scene, including the victim’s cell phone.
The State of Connecticut Chief Medical Examiner determined the victim’s cause of death to be acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.
Analysis of the victim’s cell phone identified two individuals who purchased heroin and what they believed to be Xanax pills for the victim shortly before the victim died. GOLEBIOWSKI was subsequently identified as a source of supply for Xanax pills.
Between August 2017 and May 2018, investigators made multiple controlled purchases of Xanax pills from GOLEBIOWSKI. Analysis of the pills revealed that some of them were counterfeit. In early June 2018, investigators intercepted two packages mailed from Canada and addressed to GOLEBIOWSKI. The packages contained approximately 1,400 counterfeit Xanax pills.
GOLEBIOWSKI was arrested on June 19, 2018.
Judge Hall scheduled sentencing for January 4, 2019, at which time GOLEBIOWSKI faces a maximum term of imprisonment of five years.
GOLEBIOWSKI is released on a $300,000 bond pending sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, Shelton Police Department and Seymour Police Department, with the assistance of Homeland Security Investigations and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Ringleader of Fraud Conspiracy Sentenced to 14 YearsRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to 14 years in prison for masterminding a fraudulent scheme that exploited the identities of at least 124 victims and caused over $870,000 in losses in less than two years.
According to court documents, Michael Oginni, 46, of Rockville, perpetrated fraud for over 20 years, using violence to exert control over his underlings. His schemes evolved from simple credit card fraud to a sophisticated operation designed to outsmart security features that the United States banking system had adopted, such as microchip-embedded credit cards. He was convicted of fraud-related offenses in the United Kingdom in the 1990s and advanced his criminal schemes in the United States after relocating to this country in 2007.
From 2015 to 2017, Oginni ran a conspiracy that exploited the identities of victims throughout the United States. Oginni ordered custom-made counterfeit drivers’ licenses bearing the photographs of his co-conspirators and the real information of his victims, including their real dates of birth and addresses. Then, he directed his co-conspirators to enter into fraudulent apartment leases in the Washington, D.C. area using those victims’ identities. The members of the conspiracy used the “new addresses” of their victims to receive important mail: debit and credit cards that he and his co-conspirators had applied for in the names of their victims. From there, Oginni and his co-conspirators wreaked havoc on the credit of their victims, racking up hundreds of thousands of dollars in fraudulent charges for luxury goods and gift cards, and making high-interest transfers from credit accounts to debit accounts. Oginni used the fraudulent income to finance a lavish lifestyle, frequently entertaining escorts and making purchases of luxury goods.
Oginni’s co-conspirators, Lacola Nickens (1:17-cr-208), Andraliesha Jefferson (1:17-cr-92), and Robert McCrickard (1:17-cr-51), were each convicted and sentenced earlier this year.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Laura Fong, Alexander P. Berrang, and Maya D. Song prosecuted the case.
Some of the charges were initially brought by the U.S. Attorney’s Office for the Southern District of Ohio.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-172 and Case No. 1:18-cr-231.
Rhode Island Man Charged with Illegal Possession of FirearmsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Salvador Rodrigues, 21, of Pawtucket, Rhode Island, was charged by criminal complaint in U.S. District Court with being a felon in possession of firearms.
According to the criminal complaint, between May 12 and August 23, the defendant illegally possessed five pistols. He was prohibited from possessing them because on May 4, he was convicted in Rhode Island of felony possession of a pistol without a license and a felony drug offense.
The defendant faces up to 10 years in prison, a $250,000 fine, and up to three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pawtucket Police Department. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Rhode Island Man Charged in Maine with Illegal Possession of FirearmsRead the Press Release
Portland, Maine: United States Attorney for the District of Maine Halsey B. Frank announced that Salvador Rodrigues, 21, of Pawtucket, Rhode Island, was charged by criminal complaint in U.S. District Court in the District of Maine with being a felon in possession of firearms.
According to the criminal complaint, between May 12 and August 23, the defendant illegally possessed five pistols. He was prohibited from possessing them because on May 4, he was convicted in Rhode Island of felony possession of a pistol without a license and a felony drug offense.
The defendant faces up to 10 years in prison, a $250,000 fine, and up to three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pawtucket Police Department. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
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Restaurant Owner Pleads Guilty to Tax Evasion and Employing Illegal AliensRead 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 Sergio Ramses Mucino, 44, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to tax evasion and conspiracy to unlawfully employ more than ten aliens during any 12-month period. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant owned and operated multiple restaurants in the Western New York area, including: Don Tequila, located at 73 Allen Street, Buffalo; El Agave located at 3870 Union Road, Cheektowaga, NY; Agave, located at 765 Elmwood Avenue, Buffalo; and La Divina, located at 2896 Delaware Avenue, Kenmore, NY.
For the tax years 2013, 2014, and 2015, Mucino owed substantial federal income tax as a result of income generated at the his restaurants through his employment of illegal aliens. However, the defendant concealed cash payments, failed to collect payroll taxes, paid employees with cash, and placed assets in the names of others, to evade payment of income taxes totaling $1,006,161.
Between March of 2014 and October 16, 2016, Mucino, along with co-defendants Jose Sanchez-Ocampo and Marguin Sanchez, conspired to hire at least 10 illegal aliens to work in the defendant’s restaurants. In furtherance of the conspiracy, Mucino provided money to Sanchez to purchase homes where the alien employees would live, including 149 North End in Kenmore, and 4024 Union Road in Cheektowaga. The defendant also paid rent for nine apartments where the alien employees lived. The two houses and nine apartments were within close proximity to the defendant’s restaurants.
Today’s plea also requires Mucino to forfeit nearly $40,000 in cash that was seized from his restaurants, a 2009 Porsche Boxster that the defendant purchased with his illegal profits, and another $1,000,000 representing additional profits made from operating the restaurants against the laws of the United States. Previously, another $35,000 in cash was forfeited by managers of Mucino’s restaurants and the two houses, which housed some of the illegal workers.
“As with the Internal Revenue Code, compliance with the immigration law is not an optional endeavor,” noted U.S. Attorney Kennedy. “My Office will continue vigorously to enforce the law where, as here, individuals seek to evade their legal obligations in order to elevate their financial aspirations.”
“Criminal charges and fines are among the useful tools to ensure employers maintain a legal workforce,” said Kevin Kelly, Special Agent-in-Charge of HSI Buffalo. “This guilty plea represents HSI's firm commitment to holding employers accountable, and the serious consequences that await those who ignore the law.”
Jose Sanchez-Ocampo and Marguin Sanchez were previously convicted.
Today’s plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly, the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the New York State Department of Taxation and Finance.
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Reisterstown Man Sentenced to 25 Years in Federal Prison for Traveling to the Philippines to Have Sex with a Minor, Which he Videotaped and Transported Back to the United StatesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Martin Hall, age 56, of Reisterstown, Maryland, today to 25 years in prison, followed by lifetime supervised release, for traveling from the United States to the Philippines to engage in illicit sexual conduct with a minor, and for producing child pornography with the intent to transport it to the United States. Judge Hollander also ordered that Hall must pay $125,000 in restitution to the victims, and upon his release from prison, Hall must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
U.S. Attorney Robert K. Hur stated, “As this case demonstrates, children are cruelly and sexually abused to produce child pornography. Martin Hall traveled to the Philippines to abuse minors, filmed the abuse, and brought those images back to the U.S. We prosecute these crimes without the children having to testify because we have photo and video evidence of the crimes. This sentence, which includes restitution to the victims, sends a strong message that we will bring these criminals to justice to try to save even more children from becoming victims, and to help child victims recover.”
“Time and again we see these egregious offenders believe that they may hide their crimes across international borders or in the depths of cyberspace. Time and again, our investigators disprove such a notion, find these offenders and bring them before our justice system to face the consequences,” said Acting Special Agent in Charge Cardell T. Morant. “While we cannot undo the harm and trauma Martin Hall has inflicted, I am pleased with today’s announcement knowing that the just burden of his crimes will weigh heavily on him.”
According to his plea agreement, Hall traveled to the Philippines for the purpose of engaging in illicit sexual activity with minor girls. Hall’s conduct included engaging in sexual acts with minors, producing images of the minors engaging in sexually explicit conduct, and transporting the images back to Maryland. Hall began traveling to the Philippines in 2006 to engage in sexual conduct with, a sixteen-year-old girl. During Hall’s travels to the Philippines, he admitted that he also produced images of two other girls, Jane Doe 1 and Jane Doe 2, engaged in sexually explicit conduct, beginning when each girl was as young as 12 years old.
Specifically, as detailed in his plea agreement, from April through August 2016, Hall traveled to the Philippines to have sex with Jane Doe 1, who was then 14 years old, and produced images documenting his sexual abuse of the girl. Hall transported these images back to the United States. Additionally, Hall used sophisticated computer programs to download and store thousands of images and videos of child pornography on various digital devices in his residence, including the images of Jane Doe 1. Hall used encryption software on all of his digital devices to prevent others from accessing his files.
After observing Hall request child pornography using a file-sharing program, investigators from the Baltimore County Police Department obtain a search warrant and searched Hall’s residence on September 7, 2016. Investigators seized Hall’s computer equipment and digital camera. At the time of the execution of the warrant, Hall’s laptop and external hard drive were turned on and in an unencrypted state. During an on-scene forensic examination of the laptop and connected external hard drive, investigators discovered approximately 8,000 images relating to child exploitation. The device became encrypted during the forensic examination, but not before investigators had copied more than 4,600 image files, most of which are child pornography. The copied images included the series of sexually explicit images of Jane Doe 1 captured by Hall between April and August 2016.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI, HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney Paul E. Budlow and Trial Attorney Kaylynn Shoop of the Criminal Division’s Child Exploitation and Obscenity Section, who prosecuted the federal case.
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Red Lake Woman Sentenced to 42 Months in Prison for Involuntary ManslaughterRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of CHELSEA MARIE DESERLY, 30, to 42 months in prison for involuntary manslaughter resulting from a drunk driving crash. DESERLY, who pleaded guilty on May 3, 2018, to one count of involuntary manslaughter, was sentenced today before Judge Wilhelmina M. Wright in U.S. District Court in Bemidji, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on May 16, 2015, DESERLY was driving a pickup truck while under the influence of alcohol. DESERLY was unable to keep the pickup on the roadway and rolled the vehicle into a ditch, ejecting the victim from the vehicle. DESERLY had a blood alcohol concentration of .198.
This case was the result of an investigation conducted by the Red Lake Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant United States Attorney Clifford B. Wardlaw prosecuted the case.
Defendant Information:
CHELSEA MARIE DESERLY, 30
Red Lake, Minn.
Convicted:
- Involuntary manslaughter, 1 count
Sentenced:
- 42 months in prison
- Three years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pennsylvania Return Preparer Convicted of Filing False Returns and ConspiracyRead the Press Release
A Yeadon, Pennsylvania man was convicted by a federal jury today in the U.S. District Court for the Eastern District of Pennsylvania of one count of conspiring to defraud the United States by filing false tax returns and preparing false tax returns that generated inflated refunds for his clients and 11 counts of aiding and assisting in the filing of false tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain.
According to court documents and evidence presented at trial, Deron Joe co-owned and operated a tax return preparation business. From 2007 through 2010, Joe along with his co-conspirator co-owned a tax return preparation business that prepared tax returns for clients which claimed false business expenses and other false deductions. Joe made up false Forms 2106, Unreimbursed Employee Business Expenses, and placed the false deductions on the tax returns to inflate clients’ refunds by thousands of dollars. Joe prepared false tax returns with inflated refunds in order to grow his tax preparation business.
U.S. District Judge Petrese B. Tucker for the Eastern District of Pennsylvania set sentencing for January 3, 2019. The defendant faces a statutory maximum possible sentence of 36 years in prison and a maximum fine of $1.35 million for all counts.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain commended agents of the Internal Revenue Service Criminal Investigation, who investigated the case, and Department of Justice Tax Division Trial Attorneys Christopher P. O’Donnell and Kathryn D. Sparks, who prosecuted the case.
Papillion Man Sentenced to 194 Months for Bank RobberyRead the Press Release
United States Attorney Joe Kelly announced that Jonathan R. Franklin, 33, was sentenced in federal court today in Omaha, Nebraska, for bank robbery and aiding and abetting the brandishing of a firearm during a crime of violence. The Honorable Robert F. Rossiter, Jr., sentenced Franklin to 13 years, 5 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Franklin will begin a five-year term of supervised release. Judge Rossiter also sentenced Franklin to 3 years, 1 month of imprisonment for violating supervised release on a prior robbery conviction. The sentences, totaling 194 months, are to be served one after the other. He was also ordered to pay $23,100 in restitution.
On November 22, 2017, Franklin, Corita Burnett, James Fentress-Dismuke, and Vincent McGee were involved in robbing the Security Home Bank in Malmo, Nebraska. Franklin was involved in organizing the participants and planning the robbery. Fentress-Dismuke went into the bank brandishing a firearm and wearing a black ski mask and gloves. Franklin was traffic stopped a short time after the robbery and officers found a mask and two loaded handguns in the trunk of his car.
Fentress-Dismuke and McGee have pleaded guilty and are pending sentencing. Burnett has pleaded not guilty and is pending trial.
U.S. Attorney Kelly observed that today’s sentence, like other recent federal robbery sentences, underscores that violent criminals, especially those using guns, will be vigorously prosecuted and pay a heavy price.
This case was investigated by the Federal Bureau of Investigation Great Plains Robbery Task Force, the Omaha Police Department Robbery Unit, the Saunders County Sheriff’s Department, the Wahoo Police Department, the Yutan Police Department and Nebraska State Patrol.
Owner of Sports Memorabilia Stores Sentenced to Prison for Failing to Pay Employment TaxesRead the Press Release
The owner of two Pierce County sports memorabilia and card gaming shops was sentenced today in U.S. District Court in Tacoma to 30 days in prison, ten months of home detention with electronic monitoring, three years of supervised release and $234,769 in restitution for failing to pay employment taxes on more than 50 employees, announced U.S. Attorney Annette L. Hayes. DONALD A. KNUTSEN, 54, owned Northwest Sportscards, which had locations in Tacoma and University Place, Washington. KNUTSEN pleaded guilty in April 2018, admitting that between 2008 and 2016 he withheld a total of $234,769 in income, Social Security, and Medicare taxes from the paychecks of at least 51 different employees, but failed to accurately report and pay the tax withholdings and an additional $122,350 in employer-owed taxes to the Internal Revenue Service. At sentencing U.S. District Judge Robert J. Bryan said, “Our whole government system is based upon citizens voluntarily completing their paperwork and paying taxes. Our system, the very foundation of our liberties, is dependent on citizens doing this civic duty.”
“This defendant not only failed to pay his own taxes, he stole funds he was supposed to pay for Social Security and Medicare taxes for his employees,” said U.S. Attorney Annette L. Hayes. “Employees rely on their employers complying with the law and protecting their hard earned retirement benefits, not succumbing to naked greed. As a result of this prosecution, not only is the defendant spending time in prison, he is required to pay restitution so that his victims can be made whole.”
According to records filed in the case, KNUTSEN operated the two sports cards and memorabilia stores for more than 27 years. The investigation revealed that as early as 2002, KNUTSEN stopped paying employment taxes, including Social Security and Medicare taxes on his employees. KNUTSEN withheld the money from the employee paychecks but never paid it to the IRS or filed the required forms accounting for the payments. Instead, KNUTSEN used the money to acquire inventory and promote his business. In addition, KNUTSEN failed to file any personal income tax returns after 2000.
Before today’s hearing KNUTSEN delivered a check to the court for $82,500 as a partial payment for his $234,769 restitution obligation. In addition, after the IRS calculates his civil tax liability and interest, KNUTSEN will pay that amount as well.
Because KNUTSEN was not filing tax forms or paying taxes to the IRS, the employees working at his shops did not accrue individual Social Security benefits during the relevant years. Under the terms of his plea agreement, KNUTSEN will work with the IRS to correct those past tax records.
The case is being investigated by the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Steven Masada.
Orlando Armed Career Criminal Sentenced to 17 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Courtney Rashon Johnson (43, Orlando) to 17 years in federal prison for possessing a firearm as a convicted felon. Due to his prior multiple felony convictions, he qualified for an increased penalty under the Armed Career Criminal Act. The court also ordered Johnson to forfeit the .38-caliber revolver and ammunition used during the offense.
A federal jury had convicted Johnson on July 24, 2018.
According to testimony presented at trial, Johnson was carrying a firearm and fleeing from a scene where gunshots had been fired, when he encountered multiple detectives from the Orlando Police Department. When the detectives ordered him to drop to the ground, Johnson complied, tossing aside a .38-caliber revolver that he had been carrying. At the time, Johnson had multiple prior felony convictions and, therefore was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Orlando Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Norwalk Doctor Sentenced to 54 Months in Prison for Drug Distribution and Health Care Fraud OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that BHARAT PATEL, 71, of Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 54 months of imprisonment, followed by three years of supervised release, for drug distribution and health care fraud offenses.
“A lengthy prison term is appropriate for any physician who abandons his oath and profits by selling prescriptions for opioids, by overprescribing these highly addictive drugs to patients – many of whom illegally distributed the drugs they received, and by defrauding our healthcare system,” said U.S. Attorney Durham. “This doctor’s criminal conduct contributed to the ongoing opioid epidemic as tens of thousands of narcotic pills were dispensed to individuals who didn’t need them and shouldn’t have them. I thank the DEA’s Tactical Diversion Squad, the Norwalk Police Department and the Connecticut Attorney General’s Office for their excellent investigative efforts in this case.”
“The reckless action by Dr. Patel is not only a violation of the Controlled Substance Act but a betrayal of the public trust,” said DEA Special Agent in Charge Boyle. “Today’s sentence not only holds Dr. Patel accountable for his crimes, but serves as a warning to those who are fueling the opioid epidemic in order to profit and destroy people’s lives. DEA pledges to work with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
According to court documents and statements made in court, from approximately 2011 to July 2017, PATEL was a physician operating out of Family Health Urgent Care, formerly known as Immediate Health Care, located at 235 Main Street in Norwalk. During this time, PATEL saw numerous patients who had no legitimate medical purpose to see PATEL and only came to his medical practice in order to obtain prescriptions for controlled substances, primarily hydrocodone or oxycodone. Some of those patients were enrolled in Medicaid or Medicare and paid for PATEL’s services, and had the prescriptions paid for, by those programs.
PATEL knew, and also was advised by pharmacists and his staff, that the prescriptions he was providing to his patients were medically unnecessary. For example, PATEL had patients to whom he prescribed oxycodone or hydrocodone whose urine/blood tests showed no signs of opioid ingestion. He also had patients to whom he prescribed oxycodone or hydrocodone whose urine/blood tests showed that they had other narcotics in their systems and that a prescription for oxycodone or hydrocodone would be a contraindication. PATEL ignored the warnings and continued to prescribe controlled substances to these patients outside of the usual course of professional practice and not for a legitimate medical purpose.
On numerous occasions, PATEL wrote prescriptions to patients who paid him $100 in cash for each prescription. At times, PATEL provided patients medically unnecessary prescriptions for oxycodone or hydrocodone, which he left at a liquor store next door to his practice. Patients retrieved the prescriptions by exchanging an envelope with cash in it for the prescriptions.
PATEL wrote hundreds of medically unnecessary prescriptions for oxycodone and hydrocodone, and received $158,523.95 as a result of this and related criminal conduct. He has forfeited this money to the government.
PATEL has been detained since his arrest on July 12, 2017. On June 25, 2018, he pleaded guilty to one count of conspiracy to distribute oxycodone and hydrocodone, and one count health care fraud.
PATEL has surrendered his federal controlled substances registration to the Drug Enforcement Administration.
This investigation was conducted by the DEA’s New Haven Tactical Diversion Squad and the Norwalk Police Department, with the critical assistance of the Connecticut Office of the Attorney General. The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
North Carolina Man Sentenced to Life Imprisonment for Conspiring to Kidnap and Murder as Part of an Overseas Murder-For-Hire SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CARL DAVID STILLWELL was sentenced to life in prison in connection with his participation in the murder of a woman in the Philippines. STILLWELL and his co-defendants, Adam Samia and Joseph Hunter, were convicted following a 12-day jury trial before U.S. District Judge Ronnie Abrams of the Southern District of New York on April 18, 2018.
U.S. Attorney Geoffrey S. Berman said: “Like the plot of some blockbuster novel or movie, this case is nearly unbelievable: a former Army sniper recruits two others to commit a murder-for-hire in a foreign land. But every aspect of this troubling case is true, including a murder victim in the Philippines. Carl Stillwell played a role in that murder, and will now spend the rest of his life behind bars.”
According to the Superseding Indictment against Hunter, Samia, and STILLWELL, other filings in Manhattan federal court, and the evidence admitted at trial:
Hunter served in the U.S. Army from 1983 to 2004, where he attained the rank of sergeant first class. While in the Army, Hunter led air-assault and airborne infantry squads; served as a sniper instructor; and trained soldiers in marksmanship and tactics as a senior drill sergeant. Since leaving the Army in 2004, Hunter has arranged for the murders of multiple victims in exchange for money, among other completed acts of violence undertaken for pay.
Samia is a self-described “personal protection/security industry” professional. According to Samia’s résumé, he has worked as an “independent contractor” for clients in the Philippines, China, Papua New Guinea, the Democratic Republic of the Congo, and the Republic of the Congo; and has training in tactics and weapons, including handguns, shotguns, rifles, sniper rifles, and machineguns. STILLWELL also purported to have training and experience in the field of information technology and to have worked at a firm in North Carolina that provides firearms training.
In 2011 and 2012, Hunter, Samia, and STILLWELL agreed to commit murders-for-hire in overseas locations in exchange for salaries and bonus payments for each victim. In early 2012, Samia and STILLWELL traveled from North Carolina to the Philippines, where Hunter provided them with, among other things, information about their intended victims and firearms to use to commit the murders.
In January and February 2012, Samia and STILLWELL surveilled their intended victims in the Philippines as they formulated their murder plans. On February 12, 2012, Samia and STILLWELL killed one of their intended victims (“Victim-1”) – a Filipino woman – in the Philippines by shooting her multiple times in the face. After killing Victim-1, Samia and STILLWELL disposed of her body on a pile of garbage, where local authorities later found it. Hunter paid Samia and STILLWELL $35,000 each for completing the murder, and Samia and STILLWELL sent thousands of dollars from the payments they received to the United States using, among other methods, structured wire transfers in amounts under $10,000.
In late February and early March 2012, Samia and STILLWELL returned from the Philippines to North Carolina, where they continued to reside until their July 2015 arrests on these charges.
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Hunter, 52, of Owensboro, Kentucky, Samia, 43, of Roxboro, North Carolina, and STILLWELL, 50, of Roxboro, North Carolina, were each convicted of one count of conspiring to commit murder-for-hire and one count of committing murder-for-hire, each of which carries a maximum sentence of life in prison and mandatory minimum sentence of life in prison; and one count of conspiring to murder and kidnap in a foreign country and one count of using and carrying a firearm during and in relation to a crime of violence, each of which carries a maximum sentence of life in prison. Samia and STILLWELL were also each convicted of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of HUNTER and SAMIA will be determined by the judge.
Sentencing has been scheduled for Hunter on February 15, 2019, and for Samia on October 31, 2018, before Judge Abrams.
The charges against the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; DEA’s Manila Country Office; DEA’s Atlanta Field Division, Raleigh Resident Office; DEA’s Louisville Field Division; the Durham Police Department; the Raleigh Police Department; the Harnett County Sherriff’s Office; the Wake County Sherriff’s Office; the Person County Sherriff’s Office; the Cary Police Department; the North Carolina State Bureau of Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Greensboro Field Office; the Customs and Border Protection’s National Targeting Center; the Royal Thai Police; the Philippines National Bureau of Investigation; and the Philippines National Police; and the Department of Justice’s Office of International Affairs. Mr. Berman also thanked the United States Attorney’s Office for the Middle District of North Carolina and the Department of Justice’s Computer Crime and Intellectual Property Section for their support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Emil J. Bove III, Rebekah Donaleski, and Patrick Egan, are in charge of the prosecution.
New York Man Pleads Guilty to Heroin, Crack and Fentanyl Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Darrell Newton, a/k/a “Coast,” a/k/a “D-Coast,” 39, of Rochester, New York, pled guilty today in U.S. District Court to conspiracy to distribute in excess of a kilogram of heroin, more than 280 grams of cocaine base, commonly known as “crack,” and fentanyl.
According to court records, between June 2015 and March 2017, Newton ran a drug trafficking organization that obtained, heroin, crack and fentanyl in Rochester and distributed the drugs in Central Maine. Rochester conspirators were recruited and sent to Central Maine by the defendant to sell the drugs. Those conspirators stayed with Central Maine residents who, in exchange for crack and heroin, allowed the drugs to be sold from their residences and assisted in distributing, storing and transporting the drugs.
The defendant faces between 20 years and life in prison, a $20,000,000 fine, and between 10 years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Jersey Teacher Charged with Health Care Fraud Conspiracy Targeting New Jersey School Employees Health Benefits ProgramRead the Press Release
NEWARK, N.J. – A federal grand jury has indicted a New Jersey public school teacher for conspiring to defraud the N.J. School Employees’ Health Benefits Program (SEHBP) with phony claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced today.
Jason Nardachone, 45, of Nutley, New Jersey, is charged with one count of conspiracy to commit health care fraud. He made his initial appearance Oct. 11, 2018, before U.S. Magistrate Judge Michael Hammer in Newark federal court.
According to documents filed in this case and statements made in court: Nardachone participated in a scheme to defraud the SEHBP by knowingly causing the billing of medically unnecessary compounded medications, such as metabolic vitamins, pain creams, and scar creams, for himself and three other teachers. From September 2015 through February 2016, Nardachone and others received medically unnecessary compounded medications that cost the SEHBP from $3,300 to $22,800 per medication. Nardachone bribed the three other teachers with monthly payments of $500 in exchange for their agreement to obtain compounded medications they did not need. Nardachone defrauded the SEHBP of more than $550,000.
The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the ongoing investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Christopher A. Errante Esq., Lyndhurst, New Jersey
Nashua Woman Sentenced to 24 Months for Fentanyl TraffickingRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Gale Doiron, 61, of Nashua, New Hampshire, was sentenced to 24 months in federal prison for conspiracy to distribute fentanyl.
Court filings and statements made in court established that a cooperating individual made four controlled buys of fentanyl from Doiron and her son. Although her son ran the business, Doiron assisted by conducting exchanges with customers, and profited from the drug sales. On December 8, 2016, officers received warrants to search the defendant’s residence and a backpack possessed by her son. Officers seized approximately 79 grams of fentanyl, other controlled substances, drug packaging materials, five firearms, and over $25,000 in cash. The money and firearms have been forfeited.
Doiron previously pled guilty on February 21, 2018.
“Individuals who assist in the trafficking of fentanyl should expect to be arrested, prosecuted and incarcerated” said U.S. Attorney Murray. Each sale of this dangerous drug has the potential to end a human life, so each case must be treated with the utmost seriousness. I commend the work of the Nashua Police Department and the U.S. Drug Enforcement Administration in bringing this defendant to justice.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison in order to profit and destroy lives,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office.”
The case was investigated by the Nashua Police Department and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Moss Point Man Sentenced to over Twenty Years in Prison on Drug and Firearm ChargesRead the Press Release
Gulfport, Miss – Edward Corneilus Bridges, 38, of Moss Point, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 250 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI). Bridges was also ordered to pay a $10,000 fine.
On March 22, 2018, a state search warrant was executed at Bridges’s home in Moss Point, Mississippi. Upon entering the home, agents located more than 500 grams of methamphetamine, 58 grams of cocaine, scales, large amounts of cash, marijuana, ecstasy, a ledger, ammunition cases, and an SKS rifle.
Bridges entered a guilty plea before Judge Ozerden on June 26, 2018.
The case was investigated by the FBI Safe Streets Task Force, South Mississippi Metro Enforcement Team, and Pascagoula Police Department. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Mississippi Man Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced Ron Luvell Dedeaux on October 12, 2018 to serve a term of imprisonment of 142 months followed by 10 years of supervised release for conspiracy to possess with the intent to distribute methamphetamine in violation of Title 21 USC § 846. The defendant previously plead guilty to the offense on August 22, 2016.
Plea documents filed in the case established that on March 25, 2016, Dedeaux was in California with the co-defendant, Brandon Wayne Bullock. Dedeaux had obtained approximately 1,037.3 grams of methamphetamine and approximately 1,209.3 grams of marijuana from a source of supply in California. Dedeaux arranged for the co-defendant, Brandon Bullock, to ship the methamphetamine and marijuana by Express Mail in three packages to Pass Christian, MS.
The methamphetamine and marijuana was intercepted by US Postal Inspectors in Mobile while en route to Mississippi. On March 30, 2016, Dedeaux and Bullock were arrested when they attempted to pick up the packages in Mobile. Bullock previously plead guilty in federal court and was sentenced to 120 months imprisonment.
The case was investigated by the United States Postal Inspection Service and the Mobile County Sheriff’s Office. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama. United States Attorney Moore highly praised the efforts of the Postal Inspection Service and the Mobile County Sheriff’s Office for their vigilant efforts in this prosecution. Moore stated that his office would continue to stand arm in arm with our federal and state partners in doing all we can do to keep the community safe and carry out the mandates of the Department of Justice.
Michigan man indicted for having 36 counterfeit credit cards, nearly 500 credit card account numbers and a machine for making counterfeit cardsRead the Press Release
A Michigan man was indicted after he was found to have 36 counterfeit credit cards, nearly 500 credit card account numbers and a machine for making counterfeit credit cards.
Edris Alim Sherrieff, 24, of Roseville, Michigan, was indicted on one count of possession of counterfeit credit cards and one count of illegal possession of device-making equipment.
Sherrieff was found on July 21, 2017, in possession of 36 counterfeit credit cards, 490 unique credit card account numbers and a credit card encoder, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Brian Deckert following an investigation by the U.S. Secret Service and Ohio State Highway Patrol.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Methamphetamine Trafficker Sentenced to More Than 12 Years in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge William H. Steele sentenced Adam Joshua Hanshew on October 9, 2018 to serve a term of imprisonment of 146 months followed by 5 years of supervised release for possession with the intent to distribute methamphetamine in violation of Title 21 USC § 841(a)(1). The defendant previously plead guilty to the offense on June 16, 2017.
On April 16, 2017, officers with the Mobile County Street Enforcement Narcotics Team (MCSENT) stopped the defendant in a vehicle on Interstate 65 in Mobile County. Canine “Masco” alerted for the presence of narcotics in the vehicle. Officers searched the trunk of the vehicle and located a large air mattress box that contained a black trash bag filled with 5 large bags of methamphetamine. The methamphetamine was later determined to weigh approximately 5 kilograms.
The case was investigated by the Mobile County Street Enforcement Narcotics Team (MCSENT) and referred to the Department of Homeland Security, Homeland Security Investigation for prosecution. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama.
Methamphetamine Trafficker Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced Reginald Thomas Gulley, Jr. on October 12, 2018 to serve a term of imprisonment of 96 months followed by 10 years of supervised release for conspiracy to possess with the intent to distribute methamphetamine in violation of Title 21 USC § 846. The defendant previously plead guilty to the offense on February 21, 2018.
Plea documents filed in the case established that on June 8, 2017, Mobile County Street Enforcement Narcotics Team (MCSENT) officers executed a search warrant for a motel room in Mobile County and recovered approximately 385 grams of methamphetamine, 19 grams of crack cocaine, digital scales, and a firearm, which were all co-located in a hiding spot in the room. The drugs were packaged for sale. Gulley later confessed that the scales, drugs and firearm belonged to him and he admitted to buying the firearm off the street.
On July 24, 2017 a confidential informant (CI) contacted the co-defendant Terry Demetrius Wilson to obtain methamphetamine from Wilson. The CI drove to Wilson’s home and picked him up and then the CI drove to a gas station. The defendant, Gulley, showed up at the gas station in another vehicle. Wilson then brought the CI’s money to Gulley, and retrieved methamphetamine from Gulley, (approximately 5 grams) and brought it to the CI. Wilson later took a “pinch” of the methamphetamine and asked the CI for $20.00 for brokering the deal.
On July 31, 2017, a CI met the co-defendant Dariese Dandrell Pierce and Pierce obtained 3.5 grams of methamphetamine from Gulley for the CI in a similar fashion as did Wilson. However on this occasion, after the first deal, Pierce and Gulley drove to a second location to obtain a second bag of 3.5 grams of methamphetamine and Pierce delivered the second bag of methamphetamine to the CI.
Wilson and Pierce previously plead guilty in federal court and were each previously sentenced.
The case was investigated by the Mobile County Street Enforcement Narcotics Team (MCSENT) and the Federal Bureau of Investigation (FBI) and referred to the Department of Homeland Security, Homeland Security Investigation for prosecution. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama.
Meth Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Audrea Gale Whitehurst, 34, of Grand Bay, Alabama, was sentenced this morning for her possession with intent to distribute methamphetamine. She pled guilty to the charge in 2017.
Honorable Kristi K. Dubose imposed a sentence of 38 months imprisonment, to be followed by a three-year term of supervised release. No fine was imposed, but Whitehurst was ordered to pay a $100 special assessment. During her imprisonment and as a condition of her supervision, Whitehurst was ordered to undergo treatment for drug abuse.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Maryland Man Sentenced to 25 Years in Prison for Traveling to the Philippines to Engage in Illicit Sexual Conduct and Producing Child PornographyRead the Press Release
A Reisterstown, Maryland man was sentenced today to 300 months in prison and ordered to pay $125,000 in restitution, to be followed by a lifetime of supervised release, for traveling from the United States to the Philippines and engaging in illicit sexual conduct with a minor and to producing child pornography with the intent to transport the child pornography to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur of the District of Maryland; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department and Baltimore County State’s Attorney Scott Shellenberger made the announcement.
“Martin Hall traveled across the globe for the express purpose of sexually abusing children and creating images of that abuse,” said Assistant Attorney General Benczkowski. “This case serves as a stern warning to offenders - no matter how far you travel to abuse and exploit children, or how sophisticated your efforts to hide your identity, our prosecutors, agents, and local law enforcement will work together to hold you accountable and bring you to justice.”
“As this case demonstrates, children are cruelly and sexually abused to produce child pornography,” U.S. Attorney Robert K. Hur said. “Martin Hall traveled to the Philippines to abuse minors, filmed the abuse, and brought those images back to the U.S. We prosecute these crimes without the children having to testify because we have photo and video evidence of the crimes. This sentence, which includes restitution to the victims, sends a strong message that we will bring these criminals to justice to try to save even more children from becoming victims, and to help child victims recover.”
“Time and again we see these egregious offenders believe that they may hide their crimes across international borders or in the depths of cyberspace. Time and again, our investigators disprove such a notion, find these offenders and bring them before our justice system to face the consequences,” said Acting Special Agent in Charge Morant. “While we cannot undo the harm and trauma Martin Hall has inflicted, I am pleased with today’s announcement knowing that the just burden of his crimes will weigh heavily on him.”
Martin Hall, 56, a former computer programmer, pleaded guilty on July 11, before U.S. District Court Judge Ellen L. Hollander of the District of Maryland to one count of traveling in foreign commerce from the United States to the Philippines between April 2016 and August 2016 to engage in illicit sexual conduct with a person under the age of 18 and to one count of producing child pornography with the intent to transport the child pornography to the United States between July 2016 and August 2016. Judge Hollander sentenced Hall earlier today and remanded him to the custody of the U.S. Marshals Service.
According to admissions made in connection with his plea, Hall travelled to the Philippines and other countries in Southeast Asia for the purpose of engaging in illicit sexual activity with minor females. Hall’s conduct included engaging in sexual acts with minors, producing images and videos of the minors engaging in sexually explicit conduct, and transporting the images and videos back to Maryland. Additionally, Hall used sophisticated computer programs to download and store thousands of images and videos of child pornography.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the FBI. This case is being prosecuted by Trial Attorney Kaylynn Shoop of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Paul Budlow of the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Marlboro County Man Pleads Guilty in Federal Court to Drug Distribution ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Tommy Adams, Jr., age 41, entered a guilty plea in federal court in Florence to possession with intent to distribute and distribution of a quantity of cocaine base, also known as crack cocaine, in violation of Title 21, United States Code, Section 841(a)(1). United States District Judge R. Bryan Harwell, of Florence, accepted the plea and will impose sentence after a pre-sentence report is prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing and previous court hearings established that officers with the Bennettsville Police Department (BPD) were investigating unlawful drug activity in the Ella Street area of Bennettsville, South Carolina. As part of that investigation, BPD officers utilized a confidential informant who purchased a quantity of cocaine base from Adams on November 2, 2017. After further investigation, a search warrant was obtained and served on February 2, 2018. Police found quantity amounts of cocaine and cocaine base in a car driven by Adams. A loaded .38 caliber revolver was also found in the car.
Adams has multiple state convictions for possession with intent to distribute controlled substances. Adams faces a maximum sentence of 30 years’ imprisonment, a fine of $2,000,000 and 6 years of supervised release on the drug distribution charge.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) along with the Bennettsville Police Department investigated the case as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is 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. Assistant United States Attorneys Christopher D. Taylor and A. Bradley Parham of the Florence office handled the case.
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Marion County man admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Timothy Cobb, of Fairmont, West Virginia, has admitted to a child pornography charge, United States Attorney Bill Powell announced.
Cobb, age 56, pled guilty today to one count of “Possession of Child Pornography.” Cobb admitted to possessing child pornography in Marion County in September 2014.
Cobb faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Sentenced for Domestic Assault by a Habitual OffenderRead the Press Release
United States Attorney Joe Kelly announced that Joseph Levering, 38, was sentenced on Friday, October 12, 2018, in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr., for committing a domestic assault as a habitual offender. Judge Rossiter sentenced Levering to 20 months’ imprisonment. After completing his term of imprisonment, Levering will begin a three-year term of supervised release.
On January 25, 2018, Levering assaulted his domestic partner on the Winnebago Indian Reservation by punching her in the face twice, causing her to lose consciousness. At the time of the assault, Levering had four prior convictions for assaulting the same victim.
This case was investigated by the Federal Bureau of Investigation.
Lynn, Massachusetts Man Pleads Guilty to Illegally Attempting to Buy Guns in HooksettRead the Press Release
CONCORD - Jose Rafael Soriano, 28, of Lynn, Massachusetts, pleaded guilty in federal court to aiding another in an illegal effort to purchase firearms, United States Attorney Scott W. Murray announced today.
According to court documents and statements made during the prosecution of the case, on July 15, 2015, Soriano, and three friends, Michael Younge, Adrian Aleman and Tasha Gardner, visited a federally licensed firearms dealer in Hooksett, New Hampshire. Of the four, only Gardner was legally eligible to buy handguns. Soriano and Younge, with Aleman’s help, solicited Gardner to buy two handguns on their behalf. Gardner agreed to assist and attempted to purchase the two guns for Soriano and Younge. In connection with that attempt, Gardner filled out a form legally required for all intrastate over-the-counter handgun purchases on which she falsely certified that she was the “actual purchaser” of the two handguns, when she was really attempting to buy them for Soriano and Younge. The store never transferred the firearms because its employees became suspicious and declined to complete the transaction.
All of the individuals involved in this crime pleaded guilty. On July 30, 2017, Younge was sentenced to 5 years imprisonment. On March 13, 2017, Gardner was sentenced to three years’ probation. On April 7, 2017, Aleman was sentenced to two years’ probation.
Soriano is scheduled to be sentenced on January 29, 2019.
“In order to keep our communities safe, we must keep guns out of the hands of criminals,” said U.S. Attorney Murray. “Through Project Safe Neighborhoods, we continue to identify and prosecute those who unlawfully obtain firearms. Individuals who seek to purchase guns for felons or other prohibited persons should understand that they are committing a serious crime and that they will be prosecuted.”
“Straw purchasing and illegal trafficking of firearms is serious crime that often puts firearms in the hands of individuals who are prohibited under federal law to possess them,” said Mickey Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF remains dedicated to identifying, investigating and arresting these individuals and making our streets and communities safer from violent firearm related crimes.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester Police Department. The case was prosecuted by Assistant United States Attorney Debra M. Walsh.
This case was prosecuted as part of Project Safe Neighborhoods, a national initiative undertaken by the U.S. Department of Justice to reduce gun crime in America through, among other things, community outreach and vigorous prosecution of firearms offenses.
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Lower Elwha Klallam Tribal Member Sentenced to Prison for Being a Habitual Domestic AbuserRead the Press Release
An enrolled member of the Lower Elwha Klallam Tribe was sentenced today in U.S. District Court in Tacoma to 5 years in prison for Domestic Assault by a Habitual Offender, announced U.S. Attorney Annette L. Hayes. MATTHEW TYLER CHARLES, 31, of Port Angeles, pleaded guilty in March 2018, following one day of testimony about his history of assaults on an intimate partner. CHARLES was indicted federally following the October 21, 2017 assault of a woman with whom he had a long-term relationship. At sentencing, U.S. District Judge Ronald B. Leighton said CHARLES “has to pay for what he has done, the havoc he perpetrated in this community.”
“This defendant repeatedly and viciously attacked those he professed to care most about,” said U.S. Attorney Annette L. Hayes. “And when law enforcement stepped in, the defendant tried to pressure the victim to stop co-operating with investigators and prosecutors. But the victim persevered and today justice is served. We will continue to use all available tools to protect the victims of crime in our tribal communities.”
According to records filed in the case and testimony at trial, in the early morning hours of October 21, 2017, the victim arrived at the Lower Elwha Casino. Shortly after her car pulled into the parking lot, the surveillance video shows CHARLES arriving in another vehicle. The video shows CHARLES assaulting the victim, violently shoving her back into the car and physically restraining her when she tried to flee. At one point during the incident, CHARLES brandished a knife. Two witnesses who were in the parking lot alerted casino security. CHARLES left the scene, but was later taken into custody.
CHARLES has four previous convictions related to domestic violence in either state or Tribal court. Two of these convictions arose from assaults in 2006 and 2014 with respect to this same victim that were prosecuted in Clallam County District Court and Superior Court, respectively, and two convictions in Lower Elwha Klallam Tribal court for 2004 and 2010 assaults with respect to this victim and a second victim. Those convictions subject him to prosecution in federal court as a habitual offender.
The case was investigated by the FBI and the Lower Elwha Klallam Tribal Police. The case was prosecuted by Assistant United States Attorneys Rebecca S. Cohen and J. Tate London.
Long Island Resident Pleads Guilty to Multimillion Dollar Elder Fraud Scheme and to Defrauding the Federal Trade CommissionRead the Press Release
Earlier today, in federal court in Central Islip, Tully Lovisa pleaded guilty before United States Magistrate Judge Gary R. Brown to conspiracy to commit mail fraud by sending prize-promotion mailings that led recipients, many of whom were elderly and vulnerable, to believe that they could claim large cash prizes in exchange for a modest fee. Lovisa also pleaded guilty to wire fraud in connection with a related scheme to defraud the Federal Trade Commission (FTC).
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Joseph H. Hunt, Assistant Attorney General for the Justice Department’s Civil Division, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty pleas.
As he admitted at his guilty plea, Lovisa’s prize promotion mailings were fraudulent. None of the victims who submitted fees, which in total exceeded $30 million, received a substantial cash prize. Lovisa’s involvement in the scheme was also in violation of prior court orders that resulted from a lawsuit against him by the FTC. As part of his resolution the FTC lawsuit, Lovisa was ordered by a federal court to sell a home he owned in Las Vegas, Nevada, and turn over the proceeds to the FTC. Lovisa arranged for a sham sale of the house in September 2012 for $155,500, and then sold the house in April 2015 for $540,000 and kept the proceeds.
When sentenced, Lovisa faces up to 20 years in prison on each count, as well as forfeiture of at least $1 million and a fine of up to $250,000 or twice the gross gain or gross loss from each offense.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly, with Trial Attorneys Daniel Zytnick and Timothy Finley of the Justice Department’s Consumer Protection Branch, are in charge of the prosecution. Assistant United States Attorney Tanisha R. Payne is in charge of the forfeiture.
The Defendant:
TULLY LOVISA
Age: 55
Huntington Station, New YorkE.D.N.Y. Docket No. 18-CR-349
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on October 12, 2018, Carly J. Pickel, 31 of Lincoln, was sentenced to five years (60 months) in prison for conspiracy to distribute 50 grams or more of methamphetamine mixture between January of 2013 and December of 2016. Following the prison term, Pickel will serve four years on supervised release.
Information provided to law enforcement indicated that Pickel was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture with her husband, Jason Novotny. Novotny also pled guilty to conspiracy to distribute methamphetamine. He is scheduled for sentencing on October 19, 2018.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Kanawha County Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
Defendant admitted to producing and distributing sexually explicit images of a toddler
CHARLESTON, W.Va. – A Kanawha County man was sentenced yesterday to spend 30 years in federal prison followed by a lifetime of supervised release for a child pornography crime, announced United States Attorney Mike Stuart. Robert Daniel Mullins, 37, of South Charleston, previously pled guilty on April 25, 2018, to production of child pornography. Stuart praised the investigative efforts of Homeland Security Investigations, the West Virginia State Police, the Australian Federal Police, the Royal Canadian Mounted Police, and the Toronto Police Service.
“Every single day of that 30 year sentence is deserved,” said United States Attorney Mike Stuart. “Horrific. Such a horrific crime. We will do everything within our power to put guys like Mullins behind bars for as long as possible.”
Between August 5, 2017, and February 18, 2018, he took several sexually explicit photographs of a toddler, at least one of which depicted sexual contact between Mullins and the minor. Mullins then distributed at least two of the sexually explicit images of the toddler to others around the world via the messaging service Kik. In addition to producing and distributing these images of child pornography, Mullins also used the Kik messaging service to exchange child pornography with other users in Canada and Australia. Mullins also offered to take sexually explicit photographs of minors to send to the individual in Australia.
He will also be required to register as a sex offender for at least 25 years.
Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The sentence was handed down by United States District Judge Irene C. Berger.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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.justice.gov/psc.
SDWVNews and USAttyStuart
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KC Man Pleads Guilty to Illegal Firearm After Hit-and-Run, Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was involved in a hit-and-run accident before leading police on a car chase that ended when he crashed into a pole and another vehicle, pleaded guilty in federal court today to illegally possessing a firearm.
James C. Coleman, 48, pleaded guilty before U.S. District Judge F. Sachs to being a felon in possession of a firearm.
According to court documents, Coleman was involved in a hit-and-run accident at the intersection of E. 67th Street and College Avenue in Kansas City, Mo., at approximately 1 a.m. on Oct. 4, 2017. The driver of the vehicle that was hit told police officers that a Volkswagen station wagon (later determined to be driven by Coleman) failed to stop for the stop sign and struck his vehicle. He also told police officers that Coleman, who appeared to be high, got out of his car but then left the scene of the accident without exchanging any information.
A Kansas City police officer saw Coleman’s vehicle shortly after the hit-and-run accident. The officer fell in behind Coleman’s vehicle and watched as the station wagon struck a curb. The officer activated his patrol car’s emergency lights and siren, but Coleman refused to stop and a pursuit began.
The car chase continued until Coleman struck a city utility pole and crashed into a Lincoln Continental in the 6800 block of Bales Avenue in Kansas City. Officers noted the vehicle had damage on all sides with multiple air bag deployments. Coleman, who was still inside the overturned vehicle, was lying on his back across the passenger door with his legs coming out of the vehicle’s sun/moon roof. Coleman appeared as though he had tried to crawl out of the passenger side of the vehicle.
A police officer saw a loaded Smith and Wesson 9mm pistol lying inside Coleman’s vehicle. After pulling Coleman out of the vehicle, an officer saw a clear baggie that contained what was later determined to be six individual baggies of cocaine. Coleman was transported by ambulance to a nearby hospital for evaluation and treatment of his injuries.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Coleman has three prior felony convictions for drug trafficking and a prior felony conviction for stealing.
Under federal statutes, Coleman is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew Moeder. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Joplin Man Charged with Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was charged in federal court today with receiving and distributing child pornography after exchanging pornographic images with a child in the state of Washington.
Kaleb Wilson, 26, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo.
According to an affidavit filed in support of today’s federal criminal complaint, Instagram submitted a CyberTipline report on May 5, 2017, to the National Center for Missing and Exploited Children. The report indicated that an Instagram user, later identified as Wilson, had uploaded multiple images of child pornography between March 21 and March 26, 2017.
Law enforcement officers executed a search warrant at Wilson’s residence on April 2, 2018, and seized several electronic items, which are pending forensic examination.
On Aug. 14, 2018, a detective with the Vancouver, Wash., Police Department contacted the Southwest Missouri Cyber Crimes Task Force and requested assistance in a separate investigation of Wilson. The Vancouver investigation was launched when a resident of that jurisdiction reported that her minor child had been exchanging sexually explicit messages and images with an adult male, later identified as Wilson.
Wilson allegedly communicated with the minor victim via the social media application Kik. According to the affidavit, Wilson and the child victim communicated and exchanged pornographic photos with each other from December 2016 through Aug. 8, 2018.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Illegal Alien Found Guilty by Federal Jury of Illegally Possessing a Firearm under Project EJECTRead the Press Release
Jackson, Miss. – Yesterday, after a two-day trial before U.S. District Judge Henry T. Wingate, a federal jury in Jackson found Ankit Puri, 34, an illegal alien from India, guilty of being an illegal alien in possession of a firearm that had traveled through interstate commerce, announced United States Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On March 3, 2018, officers with the Jackson Police Department arrested Puri for aggravated assault, arising from Puri’s shooting of an unarmed individual in a convenience store. Puri had overstayed his visitor visa and was in the process of being removed from the United States at the time of the shooting. Homeland Security became aware of his arrest and brought charges related to his illegal possession of a firearm.
"There is absolutely zero tolerance for those who break our immigration laws and then commit violent crimes. I applaud these JPD officers, HSI agents and prosecutors for bringing this individual to justice and making Jackson safer," said U.S. Attorney Hurst.
Puri will be sentenced by Judge Wingate on January 4, 2019. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
Homeland Security Investigations and the Jackson Police Department investigated the case. It was prosecuted by Assistant United States Attorneys Gregory Kennedy and Lynn Murray.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Houston Man Faces Arraignment in Federal Case Alleging Manufacture of Fake Airline IDs to Obtain Free FlightsRead the Press Release
LOS ANGELES – A Houston man who was arrested earlier this month in Texas is scheduled to be arraigned this afternoon on federal fraud and identity theft charges that allege a scheme to manufacture counterfeit Mesa Airlines employee identification badges that were used to obtain free flights on another airline.
Alphonso Lloyd, 25, is set to appear in United States District Court on charges contained in a six-count indictment that was returned by a federal grand jury on August 17. After being arrested last month in Texas, Lloyd was freed on bond and ordered to appear before a United States Magistrate Judge in Los Angeles.
The indictment charges Lloyd and two other defendants with conspiracy to commit wire fraud. The indictment also alleges charges related to the illegal possession of use of identity documents and aggravated identity theft.
The other two defendants charged in this case previously were arraigned and entered not guilty pleas. Kamille Jemison, 26, a former Houston resident who recently relocated to the Beverly Grove District of Los Angeles, was arrested on September 19 and subsequently freed on a $20,000 bond. Hubbard Bell, 30, a Houston resident and former Mesa airlines employee has been in federal in custody in Los Angeles since mid-2017 in relation to another case, was arraigned on October 1. United States District Judge Michael W. Fitzgerald ordered both defendants to stand trial next month.
The indictment alleges that, through most of 2016 and 2017, Bell and Jemison used Mesa Airline employee identification information to book free flights on Spirit Airlines through Spirit’s web portal for themselves and others, including Lloyd. Bell, Jemison, Lloyd and others took hundreds of flights – across the United States and to Nicaragua – on “non-rev” passes, which is a perk offered to airline employees.
Bell and Jemison allegedly manufactured fake Mesa employee identification cards that the fliers used to board the fraudulently obtained flights. The indictment alleges that Lloyd attempted to use such a fake identification to board a Spirit flight leaving from Los Angeles International Airport on May 6, 2017.
An indictment is merely an allegation and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If they were to be convicted of the charges in the indictment, Bell would face a statutory maximum sentence of 30 years in federal prison. If there were to be convicted, Jemison and Lloyd would face a maximum sentence of 37 years in prison.
The case was investigated by special agents with the Federal Bureau of Investigation, who received substantial assistance from the Federal Air Marshal Service and the Transportation Security Administration.
This case is being prosecuted by Joseph D. Axelrad of the Violent and Organized Crime Section, and Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Bell has been in custody since June 2017 in relation to a gun-trafficking case. In that case, Bell pleaded guilty on August 13 to conspiracy to engage in the business of dealing in firearms without a license. In a plea agreement filed in that case, Bell admitted transporting firearms on flights between Houston and Los Angeles, and the guns were resold in California and Nevada. The gun case led to the investigation that culminated with the fraud and identity theft case being announced today. Bell is scheduled to be sentenced in the gun case by Judge Fitzgerald on December 3, at which time he will face a statutory maximum sentence of five years in federal prison.
Hot Springs Man Sentenced to over 12 Years in Federal Prison for Bank RobberyRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Henry Smith, age 67, of Hot Springs, was sentenced to 151 months in federal prison followed by three years of supervised release on one count of Bank Robbery. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November 2017, officers with the Hot Springs Police Department were dispatched to Citizens Bank on Airport Road regarding a bank robbery. The investigation revealed that Smith entered the bank wearing a ski mask and gloves. Smith demanded the teller to put money into a bag that he placed on the counter and represented that he possessed a firearm. Within minutes, officers from the Hot Springs Police Department responded to the area, viewed surveillance footage and observed Smith going into a nearby building. Smith was subsequently located and taken into custody. The currency taken from the bank was recovered.
Smith was indicted by a federal grand jury in December 2017 and pled guilty on March 5, 2018. Smith has a lengthy criminal history that includes prior convictions for bank robbery.
This case was investigated by the Hot Springs Police Department and assisted by the FBI. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Gulfport Man Receives over Five Years in Federal Prison for Illegally Possessing a Gun as a Drug UserRead the Press Release
Gulfport, Miss. – Jaquan Deshawn Carter, 21, of Gulfport, was sentenced yesterday by U.S. District Judge Sul Ozerden to 64 months in prison, followed by 3 years of supervised release, for illegally possessing a firearm as a drug user, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 6, 2015, Gulfport Police received a complaint of a person in a car flashing a gun. When officers stopped the car, they smelled the odor of marijuana. Officers found bullets in the backseat and a .44 caliber revolver in the seat pocket with Carter sitting in the backseat. Carter admitted the gun was his, which he explained he had for protection. On September 14, 2015, Gulfport police stopped a car, in which Carter was a passenger, whereby the police smelled a strong odor of burnt marijuana. Police found a .22 caliber handgun with an obliterated serial number in Carter’s pocket. In an interview, Carter admitted that he smoked marijuana every day since the age of 9.
Gulfport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Guilty Pleas Entered in Fraud Scheme Involving Local Environmental Company’s Improper Disposal of Toxic ChemicalsRead the Press Release
United States Attorney Erica H. MacDonald today announced that LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC., pleaded guilty to one count of mail fraud for the improper disposal of toxic waste. Co-defendants JOHN D. MILLER JR., 61, and JOSEPH V. MILLER, 58, previously entered guilty pleas for their roles in the fraud scheme.
“Luminaire defrauded its customers and, in doing so, exposed the community to the toxic chemicals they had been paid to safely destroy. The United States will vigorously pursue those who steal and pollute for their own profit,” said U.S. Attorney Erica MacDonald.
“The laws surrounding the safe management of PCBs exist to protect human health and the environment,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal enforcement program in Minnesota. “Instead of complying with those laws, the defendants defrauded their customers and put workers and the public at risk by removing PCB labels and selling PCB-containing fluorescent light ballasts to scrap metal recyclers. EPA and its law enforcement partners are committed to working aggressively to prevent these types of flagrant and dangerous violations.”
According to the defendant’s guilty plea and documents filed in court, LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC. (“LUMINAIRE”) provided recycling and waste disposal services to customers. Among other services, LUMINAIRE offered to pick up customers’ fluorescent light ballasts containing polychlorinated biphenyls (“PCBs”), transport the PCB-containing ballasts to the LUMINAIRE facility located in Plymouth, Minnesota, and remove and dispose of all the PCBs in accordance with the Toxic Substances Control Act (TSCA). In exchange, LUMINAIRE charged customers a fee of approximately $0.35 per pound of PCB lighting ballasts plus transportation costs. Because the PCBs contained in the ballasts are considered a toxic chemical, regulations promulgated by the United States Environmental Protection Agency (“EPA”) mandate special procedures and documentation for the transportation and disposal of PCB waste.
According to the defendant’s guilty plea and documents filed in court, between 2010 until 2015, JOHN MILLER, owner of LUMINAIRE, and other LUMINAIRE employees falsely represented to customers that LUMINAIRE would properly transport and dispose of customers’ toxic chemicals. Instead, after picking up loads of PCB-ballasts from customers, JOHN MILLER instructed LUMINAIRE employees to remove warning labels from the containers holding the PCB-ballasts, and then sell the PCB-ballasts as scrap metal to scrap yards and metal recycling facilities. In order to conceal the fact that the PCB-ballasts had not been received and processed at LUMINAIRE’S facility, JOHN MILLER directed LUMINAIRE employees, including JOSEPH MILLER, to falsely certify on shipping manifests that the PCB-ballasts had arrived at LUMINAIRE’S facility. At JOHN MILLER’S direction, LUMINAIRE employees also sent copies of the falsified shipping documentation by mail to customers and to certain state environmental agencies. In addition, JOHN MILLER instructed LUMINAIRE employees to prepare and deliver falsified invoices to customers who, in turn, made payments to LUMINAIRE. As a result of the scheme, LUMINAIRE fraudulently collected more than $1,000,000 in fees and additional profits.
This case is the result of an investigation conducted by the U.S. Environmental Protection Agency and the Hennepin County Department of Environmental Protection.
Assistant U.S. Attorneys Benjamin F. Langner and Amber M. Brennan are prosecuting this case.
Defendant Information:
LUMINAIRE ENVIRONMENTAL AND TECHNOLOGIES, INC.
Plymouth, Minn.
Convicted:
- Mail fraud, 1 count
JOHN D. MILLER JR., 61
Plymouth, Minn.
Convicted:
- Conspiracy to commit mail and wire fraud, 1 count
JOSEPH V. MILLER, 58
Chanhassen, Minn.
Convicted:
- Falsification of documents with intent to obstruct a federal matter, 1 count
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national pleaded guilty and was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Cesar Humberto Perez-Diaz, 48, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge Leo T. Sorokin, who sentenced Perez-Diaz to six months in prison and one year of supervised release. Perez-Diaz will be subject to deportation proceedings upon completion his sentence.
On July 31, 2018, the Lynn Police Department arrested Perez-Diaz and charged him with enticement of a child under 16 years old. Perez-Diaz was arraigned in the Lynn District court and ordered detained without bail. Immigration officials encountered Perez-Diaz at the Essex House of Corrections and determined that he was illegally present in the United States having been deported on two previous occasions.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Founder of Bogus Green Energy Firm Convicted of Running a $54 Million Ponzi SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Wayde McKelvy, of Colorado, was convicted by a jury of the following crimes: Conspiracy to Commit Wire Fraud (one count); Wire Fraud (seven counts); Conspiracy to Engage in Securities Fraud (one count); and Securities Fraud (one count). The trial was held before United States District Judge Joel H. Slomsky.
The government established at trial that McKelvy and his co-conspirators ran an elaborate Ponzi scheme operating as Mantria Corporation, which received more than $54 million in fraudulently obtained new investor funds. The co-conspirators promised investors huge returns, as high as 484%, for securities investments in supposedly profitable business ventures in real estate and green energy. In reality, Mantria was a classic Ponzi scheme in which new investor money was used to pay “returns” to early investors, and the business generated meager revenues and no actual profits.
To induce investors to invest money, McKelvy and his co-conspirators repeatedly made fraudulent representations and material omissions about the economic state of Mantria. McKelvy also promoted himself as a financial wizard through aggressive marketing tactics, even though he had little financial acumen and was an unlicensed securities salesman. McKelvy operated what he called “Speed of Wealth” clubs, which advertised on television, radio and the Internet, held seminars for prospective investors, and promised to make them rich. During those seminars and other programs, McKelvy lied to prospective investors to dupe them into investing in Mantria.
Mantria, based in Bala Cynwyd, Pennsylvania, sent McKelvy “commissions” via wire transfer to an entity he controlled called “Retirement TRACS, LLC.” Mantria also used wire transfers to pay for other portions of the Ponzi scheme, including payments for both the real estate and green energy projects. When the SEC shut down Mantria in November 2009, the pyramid scheme collapsed and was exposed.
“McKelvy repeatedly lied about Mantria’s bright future in the green energy business, often delivering his sales pitch before a live audience full of prospective investors in order to dupe as many people as he could into investing in the company. McKelvy and his co-conspirators talked a big game, promising investment returns as high as 484 percent – but it was all a ruse,” said U.S. Attorney McSwain. “Instead of high returns, the over 300 victims of this fraud unwittingly invested in uninhabitable land and a bogus trash-to-green energy business idea based on bogus scientific methodology. We are pleased that the jury held McKelvy accountable for his part in this massive fraud.”
“Wayde McKelvy actively marketed himself as some kind of financial genius, when in fact he was nothing but a fraud,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “He and his buddies lured investors in by promising sky-high returns on their money, taking full advantage of people’s trust and their hopes for the future. Ponzi schemes can do real damage to victims’ lives, and the FBI is determined to hold the perpetrators accountable.”
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert Livermore and Sarah Wolfe. Additionally, the Securities and Exchange Commission, Denver Regional Office, assisted with the investigation.