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11 October 2018
Scott man sentenced to 67 months in prison for uploading child pornography to Dropbox accountRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Scott man was sentenced Tuesday to five years and seven months in prison for possessing child pornography on a Dropbox account.
Larry Guidry, 25, of Scott, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of possession of child pornography. He was also sentenced to 10 years of supervised release and must register as a sex offender. According to the July 10, 2018 guilty plea, law enforcement agents received information that an online Dropbox account was being used to store child pornography. Dropbox is internet service used to store digital information such as documents, images and other data. Agents searched the account and found 100 images and 23 videos of child pornography. Agents searched Guidry’s residence on February 21, 2018 and arrested him. He admitted to uploading the images to Dropbox.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and the National Center for Missing and Exploited Children conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Roswell Man Pleads Guilty to Being a Felon and Drug Addict Unlawfully in Possession of ExplosivesRead the Press Release
ALBUQUERQUE – Jeffrey Blake Vanover, 53, of Roswell, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to unlawfully possessing explosives. Vanover entered his guilty plea without the benefit of a plea agreement.
Vanover was arrested on April 7, 2018, on an indictment charging him with being a prohibited person in possession of explosives on Feb. 12, 2017, in Chaves County, N.M. According to the indictment, Vanover was prohibited from possessing explosives because he was an unlawful drug user and addict and because he was a convicted felon. The indictment stated that Vanover had prior felony convictions for distribution of methamphetamine, conspiracy to distribute methamphetamine, and commercial burglary.
At sentencing, Vanover faces a maximum penalty of ten years. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the HIDTA Chaves County Metro Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Rossford was indicted for failing to register as a sex offenderRead the Press Release
Lonnie Alton Butler, 34, of Rossford, was indicted for failure to register as a sex offender.
Butler was required to register as a sex offender but did not do so when he traveled between Michigan and Ohio between Aug. 19 and Sept. 26, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Marshals Service. The case is being handled by Assistant U.S. Attorneys Ashley A. Futrell and Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rochester Felon Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Williams, 49, of Rochester, NY, who was convicted of possession with intent to distribute cocaine, and being a felon in possession of a firearm and ammunition, was sentenced to serve 65 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that on March 2, 2017, in the area of Sullivan Street in Rochester, the defendant possessed over 300 “dime” bags of cocaine with the intent to distribute them to others. Williams also possessed a .357 Magnum caliber revolver. The defendant was previously convicted of three felony charges and is legally prohibited from possessing firearms and ammunition.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Mark Simmons, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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Revere Man Charged with Distributing FentanylRead the Press Release
BOSTON – A Revere man was arrested today and charged in federal court in Boston with distributing fentanyl.
Jassiel Ramirez, 23, was charged with one count of distribution of 40 grams or more of fentanyl. Ramirez will appear in federal court today at 4:00 p.m.
According to court documents, Ramirez distributed fentanyl in and around the Princeton Crossing apartment complex in Salem on Sept. 18 and 21, 2018.
The charge of distribution of 40 grams or more of fentanyl carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Man Convicted at Trial of Assault with a Dangerous WeaponRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Antonio Shaw, 31, of Philadelphia, PA, was found guilty today by a jury of one count of assault with a dangerous weapon.
On October 27, 2017, the defendant was an inmate at the Federal Detention Center in Philadelphia. The government introduced evidence at trial that the defendant was involved in a previous incident concerning a second inmate. Based on the previous incident, a third inmate attempted to grab the defendant and pull him into a cell to fight, but the defendant broke free and ran away. A short time later, after lying in wait a short distance from the cell, the defendant rushed the third inmate from his blind side and repeatedly stabbed and slashed him with a sharp object. The third inmate suffered 11 separate stab and slash wounds.
“The same laws apply inside and outside of prison,” said U.S. Attorney McSwain. “The defendant clearly has no respect for the law or the safety of others. If you assault another individual, whether out on the street or at the Federal Detention Center, we can and will hold you accountable for your crime.”
“Incarcerated prisoners cannot be allowed to engage in violent behavior with impunity,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Maintaining a safe environment for federal inmates and the Bureau of Prisons personnel responsible for them is essential to the operation of FDC Philadelphia, and the integrity of the justice system.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mark Miller.
Palm Beach County Resident Sentenced to Federal Prison for Falsely Impersonating a Deputy U.S. MarshalRead the Press Release
John Joseph O’Grady, 61, of Boynton Beach, was sentenced today to 4 months in prison and one year of supervised release, by U.S. District Judge Robin L. Rosenberg, after previously pleading guilty to falsely impersonating a Deputy U.S. Marshal.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Gadyaces S. Serralta, U.S. Marshal, United States Marshals Service (USMS), Miami Field Office, and Michael Gregory, Chief, Boynton Beach Police Department (BBPD), made the announcement.
On March 21, 2018, BBPD officers responded to a call from an employee of Best Buy in Boynton Beach, requesting that a man in a dark business suit, later identified as Defendant O’Grady, be issued a trespass warning because he had returned to the store after previously shoplifting an iPhone. As captured on police body camera footage, when BBPD officers responded and made contact with O’Grady, they observed him dressed in a suit jacket that displayed a USMS lapel pin (that is, a miniature replica of the USMS star within a circle badge). For officer safety, O’Grady was asked if he had any weapons on his person and responded in the affirmative. Officers discovered O’Grady to be in possession of a highly realistic replica of a semi-automatic pistol in a holster. O’Grady was also wearing an unauthorized U.S. Marshal badge on his belt. O’Grady falsely identified himself to law enforcement as “a Federal Marshal,” when in fact he was a limo driver.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USMS and BBPD in this matter. This case was prosecuted by Assistant U.S. Attorney John C. McMillan.
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.
Palm Beach County Resident Pleads Guilty to Falsely Impersonating a Federal AgentRead the Press Release
Gopaul Parmanand, 41, of Palm Beach Gardens, pled guilty today to falsely impersonating a Special Agent of U.S. Immigration and Customs Enforcement.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael T. Moreland, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility (ICE-OPR), Miami Field Office and Diane J. Sabatino, Director, Field Operations, Customs and Border Protection (CBP), Miami Field Office, made the announcement.
Parmanand is scheduled to be sentenced by U.S. District Judge Robin R. Rosenberg on December 20, 2018, in West Palm Beach. The defendant faces a maximum statutory sentence of up to three years in prison.
On July 31, 2018, Special Agents assigned to ICE-OPR responded to the Port of Palm Beach after receiving a call from CBP regarding a cruise ship passenger, Gopaul Parmanand, who was returning from a two-day voyage that originated at the Port of Palm Beach, with a stop in Freeport, Bahamas. Information had been received by CBP from cruise ship staff that Parmanand had been impersonating a federal agent during the voyage and to Bahamian Border Officials.
On July 29, 2018, while on the cruise ship Grand Celebration, Parmanand cut in front of other passengers to approach the shore excursion desk and asked how he could connect to the internet because he had to check his work emails. He then displayed a silver in color badge and stated that he was “Police ICE.” During the course of an examination of Parmanand’s luggage, pursuant to an inbound Custom’s inspection at the U.S. Point of Entry, law enforcement discovered a silver in color money clip in the shape of a badge that bore the exact likeness of an ICE Special Agent’s badge with the seal of the Department of Homeland Security at its center.
Parmanand has never been employed by the Department of Homeland Security in general, or ICE in particular, in any capacity.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-OPR and CBP in this matter. This case is being prosecuted by Assistant U.S. Attorney John C. McMillan.
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.
Over A Dozen Alleged Gang Members Charged with Federal Racketeering Conspiracy, Attempted Murder and Assault in Aid of Racketeering, and Other CrimesRead the Press Release
SAN JOSE- A federal grand jury indicted multiple Salinas-based gang members for a broad range of racketeering crimes, including racketeering conspiracy, conspiracy to commit murder and assault in aid of racketeering, attempted murder in aid of racketeering, and assault with a dangerous weapon in aid of racketeering, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The indictment handed down on October 3, 2013, and unsealed today alleges that the defendants are all gang members who committed crimes in and out of Monterey County Jail for the benefit of enhancing the wealth and reputation of the gang and themselves.
“As alleged, the Nuestra Familia prison gang and the Norteño street gangs have terrorized Monterey County residents for much too long,” said U.S. Attorney Tse. “The gangs have targeted anyone, even in jail, who does not obey their violent rules. We are thankful for the efforts of our federal and local partners to bring to justice individuals responsible for these alleged horrific criminal acts within our prison system.”
“In collaboration with our partners at the Monterey County Sheriff’s Office and the Monterey County Jail, we will continue to take action against groups who use violence, fear, and criminal behavior for their own power and gain,” said FBI Special Agent in Charge, John F. Bennett. “It is important for Monterey County and Salinas area residents to know that the FBI will not tolerate the presence of organized criminal enterprises in our neighborhoods. We will not allow fear or intimidation have a place in our communities.”
“This was an exhaustive and thorough 6-year effort by the FBI,” said Monterey Sheriff Steve Bernal, “We are proud to have partnered with our federal partners on this important investigation that will improve the safety of our entire community.”
According to the indictment, the defendants engaged in racketeering for the purpose of preserving the power, territory, reputation, and profits of the Nuestra Familia/Salinas Norteños Enterprise. The indictment describes how members, when not incarcerated, compete for control of lucrative illegal activities, such as drug dealing and robbery. Such competition leads to violence both on the streets and within custodial facilities. The indictment also describes how the gang developed a structure, philosophy, rules, rituals, and obligations for its members within custodial facilities in Monterey County. One rule includes the general principle that once an individual reaches a certain status within the gang, death, under most circumstances, is the only way to withdraw.
Nuestra Familia sees Monterey County as a stronghold for the gang. The indictment describes how the gang has targeted Monterey County for crimes, most specifically in and near Salinas. For example, Norteño cliques in the county fight with rival street gangs, and to a lesser extent other Norteño cliques, for control of territory in which to conduct narcotics trafficking and other crimes, as well as to recruit and influence non-gang members.
Inside the Monterey County Jail, Norteños work together to maintain the structure and follow the rules of Nuestra Familia without regard to what specific clique they are from. Nuestra Familia has come to regard inmates at Monterey County Jail as potential new members for the criminal organization. Norteños in Monterey County Jail are separated from other inmates—in part due to the Norteños predatory nature, and in part because Nuestra Familia rules prohibit them from preying upon each other—and Nuestra Familia now regards the jail as one of the better “training” facilities for new members. The gang considers inmates in the jail well-regimented, disciplined, and aligned with Nuestra Familia values.
In this case, the defendants have been charged with either directing or participating in assaults, attempted murders, and drug trafficking within Monterey County Jail as follows:
Johnny Magdaleno, a/k/a “Soldier Boy,”
Vincent Gerald Garcia, a/k/a “Chente,”
Rodney Luis Romero, a/k/a “Speedy,”
Michael James Rice, a/k/a “Redwood,”
Alberto Cervantes, a/k/a “Littles”
Alejo Alex Alegre, IV, a/k/a “Chino,”
Carlos Cervantes, a/k/a “Lil Huero,” a/k/a “Doug,”
Alberto Moreno, a/k/a “Doughboy,”
Steven Anthony Dorado, a/k/a “Castro,” a/k/a “Chinaman,”
Michael Abraham Cazares, a/k/a “Lil Rhino,”
Jeffrey Lopez, a/k/a “T-Bone,”
Juan Alvarez, a/k/a “Chucky,”
Erik Lopez, a/k/a “Bimbo,” and
Jorge Jasso
The indictment describes the crimes in which each defendant has participated, leadership positions within the gang, and a description of the defendants’ gang-related tattoos. The indictment centers largely on seven “removals,” by which inmates inflict violence on other inmates, often for violations of gang rules. The purpose of a removal is often to literally remove an inmate from a prison housing unit by killing that inmate or inflicting as much bodily harm as possible. Removals typically require authorization from gang leadership and members are instructed how to perpetrate the violent crime—members are instructed how and where a “hitter” should stab a victim in order to inflict as much injury as possible, and how “bombers” should follow up by assaulting the victim with hands and feet to inflict additional injuries and to distract prison guards long enough to allow a bomber to discard weapons and change out of blood-stained clothes.
In this case, the following removals are alleged:
(1) Removal of Victim 1 on December 2, 2012 (Victim 1 was stabbed at least 21 times in the chest and back with a jail-made shank for violating gang rules):
- Johnny “Soldier Boy” Magdaleno
- Erik “Bimbo” Lopez
- Jorge Jasso
- Alberto “Littles” Cervantes
(2) Removal of Victim 2 on February 25, 2013 (Victim 2 was stabbed in the head and face):
- Rodney “Speedy” Romero
- Alberto “Littles” Cervantes
- Johnny “Soldier Boy” Magdaleno
- Erik “Bimbo” Lopez
- Jorge Jasso
- Michael “Redwood” Rice
(3) Removal of Victim 3 on April 29, 2013 (Victim 3 was stabbed in the head, hands, arms, and wrists):
- Johnny “Soldier Boy” Magdaleno
- Vincent “Chente” Garcia
- Rodney “Speedy” Romero
- Michael “Redwood” Rice
- Carlos “Doug/Huero” Cervantes
- Alberto “Doughboy” Moreno
- Steven “Castro/Chinaman” Dorado
- Jorge Jasso
(4) Removal of Victim 4 on July 10, 2013 (Victim 4 was stabbed in the face, head, and neck):
- Michael “Little Rhino” Cazares
- Jeffrey “T-Bone” Lopez
(5) Removal of Victim 5 on October 23, 2013 (Victim 5 was stabbed in the neck):
- Vincent “Chente” Garcia
- Rodney “Speedy” Romero
- Juan “Chucky” Alvarez
(6) Removal of Victim 6 on November 13, 2013 (Victim 6 was stabbed in the head, torso, and arms approximately 10 times):
- Alejo “Chino” Alegre
(7) Removal of Victim 7 on April 14, 2014:
- Vincent “Chente” Garcia
In sum, the charges pending against each defendant are as follows:
Defendant
Age
Charges
Maximum Statutory Penalty
All Defendants
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
5 years of supervised release
$250,000 fine
JOHNNY MAGDALENO
31
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
VINCENT GERALD GARCIA
51
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
Attempted Murder (of Victim 5) in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Assault (of Victim 5) With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
20 years in prison
3 years supervised release
$250,000 fine
Attempted Murder (of Victim 7) in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Assault (of Victim 7) With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
20 years in prison
3 years supervised release
$250,000 fine
RODNEY LUIS ROMERO
33
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
Attempted Murder (of Victim 5) in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Assault (of Victim 5) With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
20 years in prison
3 years supervised release
$250,000 fine
MICHAEL JAMES RICE
34
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
ALBERTO CERVANTES
34
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
ALEJO ALEX ALEGRE, IV
26
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
Attempted Murder (of Victim 6) in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Assault (of Victim 6) With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
20 years in prison
3 years supervised release
$250,000 fine
CARLOS CERVANTES
30
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
ALBERTO MORENO
25
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
STEVEN ANTHONY DORADO
27
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
MICHAEL ABRAHAM CAZARES
26
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
JEFFREY LOPEZ
26
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
JUAN ALVAREZ
37
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
Attempted Murder (of Victim 5) in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Assault (of Victim 5) With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
20 years in prison
3 years supervised release
$250,000 fine
ERIK LOPEZ
24
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
Felon in Possession of a Firearm and Ammunition
18 U.S.C. § 922(g)
10 years in prison
3 years supervised release
$250,000 fine
JORGE JASSO
26
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
$250,000 fine
Conspiracy to Commit Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(6)
3 years in prison
1 year supervised release
$250,000 fine
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the FBI with assistance from the Monterey County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Salinas Police Department.
Over $350,000 Awarded to Assist Yellowstone Connect Develop Drug Reduction PlanRead the Press Release
BILLINGS—Yellowstone Substance Abuse Connect, a coalition organized to create a comprehensive community plan to reduce substance abuse in Yellowstone County, will be the beneficiary of a major federal grant awarded this week as part of a broader effort to fight violent crime in the community.
Montana U.S. Attorney Kurt Alme on Thursday announced that the Office of National Drug Control Policy awarded $358,741 to the Eastern Montana High Intensity Drug Trafficking Area Drug Task Force (HIDTA Task Force). The grant will be administered by the Billings Police Department on behalf of the HIDTA Task Force to fund the efforts of Yellowstone Connect.
Yellowstone Connect was organized through the leadership of United Way of Yellowstone County and Project Safe Neighborhoods (PSN), an enforcement initiative reinvigorated a year ago by the Department of Justice to reduce violent crime. Violent crime in Billings has increased 75 percent from 2010 through 2017, according to the Billings Police Department.
As part of PSN Yellowstone County, federal, state and local law enforcement identified meth trafficking and use as the leading cause of the increase in violent crime. Since April, PSN’s law enforcement partners have already made arrests leading to 90 individuals being charged with meth trafficking, armed robbery and illegal possession of firearms by felons and other prohibited persons.
Enforcement partners have recognized that more efforts in meth prevention, treatment and diversion also will be critical to turning the tide.
Yellowstone Connect will bring additional prevention, treatment and diversion to the initiative. Yellowstone Connect formed in May and already has more than 60 enforcement, judicial, corrections, medical, mental health, treatment and prevention organizations.
“We are pleased that the community received this money which will fund a key part of PSN’s goal to reduce violent crime by fighting meth trafficking and use. Vigorous enforcement is only part of the solution; we need the community’s help to reduce use through additional prevention, treatment and drug court diversion,” said U.S. Attorney Kurt Alme.
“I want to thank all our PSN federal, state and local law enforcement partners for their outstanding work to make this community safer, and especially the Billings Police Department for administering the HIDTA Task Force grants. I also want to thank United Way of Yellowstone County for its work to launch this coalition, and all of our Yellowstone Connect partners for recognizing the important need in this community to reduce the demand for meth and committing to be part of the solution,” Alme said.
Billings Police Chief Rich St. John said, “Supported by this grant, we now will be able to improve the coordination and effectiveness of drug enforcement, treatment and prevention efforts in Yellowstone County. Yellowstone Connect will bring stakeholders together to combat the serious meth crisis in our community.”
Kristin Lundgren, United Way’s Director of Impact, said, “We are lucky to have the right leadership at the Yellowstone Connect table to make the most of this opportunity. We have the enforcement leadership from the U.S. Attorney’s Office, the Montana Attorney General’s Office and the Yellowstone County Attorney’s Office and all federal, state and local law enforcement agencies. We have leadership from the Montana Department of Public Health and Human Services and our local leaders in treatment, prevention and diversion.”
“In our community, who hasn’t been touched by addiction in some way—crime, family chaos, inability to find workers who can pass a drug test, kids in foster care, elder abuse and domestic violence?” Lundgren said.
The Yellowstone Connect funding will be used to hire a full-time coordinator to oversee the initiative. The initiative has four main strategies: to conduct a needs assessment to determine prevention, diversion and treatment needs and community resources; to develop a plan to get more people into treatment and diversion programs and to prevent addiction; to put the plan into action; and to share the plan and methods with other coalitions in HIDTA areas.
Lundgren said she expects Yellowstone Connect to have a coordinator hired by the early 2019.
For more information about Yellowstone Connect, contact Lundgren at 406-272-8505.
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Operator of North Jersey Tax Preparation Business Sentenced to 30 Months in Prison for Tax FraudRead the Press Release
NEWARK, N.J. – A Kissimmee, Florida, man was sentenced today to 30 months in prison for tax fraud, U.S. Attorney Craig Carpenito announced.
Sixto Rodriguez was previously found guilty of all 17 counts of an indictment charging him with three counts of filing false tax returns on behalf of himself and fourteen counts of aiding and assisting in the preparation and presentation of false tax returns on behalf of his tax preparation clients. He was convicted following a one-week trial before U.S. District Judge Kevin McNulty.
According to documents filed in this case and statements made in court:
From 2004 through 2012, Rodriguez operated a tax preparation business in Teaneck, New Jersey, by the name of 1-2-3 Taxes. Rodriguez personally met with clients, prepared their individual income tax returns and filed the returns with the IRS.
Rodriguez inflated education credits, charitable donations, unreimbursed business expenses and rental losses that he knew his clients had not actually incurred. On average, for the clients charged in the indictment, this resulted in his clients receiving more than $4,000 in refunds per return, to which they were not entitled. Rodriguez also failed to report more than $230,000 in net profits he made from his business from 2007 through 2009 and personally avoided paying more than $89,000 in taxes as a result.
In addition to the prison term, Judge McNulty sentenced Rodriguez to one year of supervised release.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in John R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Daniel V. Shapiro of the Economic Crimes Unit in Newark and Assistant U.S. Attorney David M. Eskew, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
Ohio County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Justin Giesey, of Wheeling, West Virginia, has admitted to possessing child pornography, United States Attorney Bill Powell announced.
Giesey, age 31, pled guilty to one count of “Possession of Child Pornography.” Giesey admitted to having child pornography depicting a minor under the age of 12 in June 2017 in Ohio County.
Giesey 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.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J., Perri is prosecuting the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Police, and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New York Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Springfield to failure to register as a sex offender.
Jose Dones, 43, of Schenectady, N.Y., pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 22, 2019. Dones was charged in February 2018 in federal court, and has been in custody since Jan. 10, 2018, when he was arrested for violating his conditions of supervised release stemming from a 2016 conviction for failing to register as a sex offender.
In 1994, Dones was convicted of second degree rape, and in 2008, he was convicted of forcible touching. As a result, Dones is required to register as a sex offender and has received many notices informing him of his obligation. He has been convicted four times in New York state court of failure to register as a sex offender, and in 2016, he was convicted in federal court in Massachusetts of failing to register as a sex offender.
In November 2017, Dones was released from a halfway house in Boston, and, while on supervised release in connection with his 2016 federal conviction, he lived in Boston without registering as a sex offender. In December 2017, he moved to Schenectady, N.Y., where he again failed to register.
Dones faces a sentence of no greater than 10 years in prison, up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
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 locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Orleans Man Pleads Guilty to Firearms Charges and Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KENDALL CELESTINE, age 21, of New Orleans, has pleaded guilty to federal firearms and narcotics violations.
According to court documents, CELESTINE, conspired with others to distribute and possess with intent to distribute one hundred grams or more of heroin, in violation of Title 21, United States Code, Sections 841(b)(1)(B) and 846. On January 24, 2018, CELESTINE possessed a firearm in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A), 924(c)(1)(A)(ii)
The Court set sentencing in this matter for January 10, 2019. CELESTINE faces, as to count one of the indictment, a minimum of 5 years imprisonment and a maximum of 40 years imprisonment, a fine of $5,000,000, at least four years of supervised release after imprisonment, and a $100 special assessment. As to count sixteen, CELESTINE faces a minimum of 5 years and a maximum of life imprisonment to be served consecutive to any other sentence imposed, a fine of $250,000, up to five years of supervised release after imprisonment, and a $100 special assessment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department Multi-Agency Gang Unit, and the Drug Enforcement Administration in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.
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New Haven Man Sentenced to 13 Years in Federal Prison for Gun and Robbery OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS JOHNSON, 27, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 156 months of imprisonment, followed by four years of supervised release, for robbery and firearm offenses.
According to court documents and statements made in court, on June 30, 2016, at approximately 1:41 a.m., New Haven Police officers were dispatched to Ferry Street after a report that a person had been shot. At the scene, officers found two victims. One victim had been shot in the left elbow and was bleeding heavily, and the other victim was bleeding from the nose.
The investigation, which has included witness interviews, DNA evidence, ballistics evidence and footage from a surveillance video, revealed that JOHNSON and Shaquille Richardson attacked the two victims after they exited a convenience store in an attempt to steal marijuana and money from the victims. JOHNSON shot one of the victims in his elbow, and Richardson struck the other victim in the face with a gun.
Officers apprehended Richardson near the scene of the robbery. When Richardson was found, he was bleeding from a gash to his hand where one of the victims had slashed him with a knife in self-defense. JOHNSON was arrested on July 28, 2016, during a motor vehicle stop. At the time of his arrest, JOHNSON possessed the firearm he used during the robbery.
On April 4, 2018, JOHNSON pleaded guilty to one count of Hobbs Act Robbery, one count of possession of a firearm by a previously convicted felon, and one count of discharging a firearm in furtherance of a crime of violence.
Richardson pleaded guilty to related charges on January 31, 2018, and awaits sentencing.
JOHNSON and Richardson have been detained since their arrests.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
New Brunswick CPA Arrested for Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A New Brunswick certified public accountant (CPA) was arrested today for allegedly underreporting more than $650,000 of income on his personal tax returns, U.S. Attorney Craig Carpenito announced.
Amit Govil, 58, of New Brunswick, New Jersey, is charged by indictment with two counts of making and subscribing false tax returns. Govil was arrested earlier today at his home and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.According to documents filed in the case and statements made in court:
Govil is licensed in New York and New Jersey as a CPA. He operated a sole proprietorship referred to in the indictment as “Company A,” a business providing risk management and audit services to community banks, headquartered in East Brunswick, New Jersey.
For the tax years 2010 and 2011, Govil underreported and failed to report the gross receipts or sales of Company A on Schedule C of his personal tax returns, as he was obligated to do. Govil, through Company A, earned more than $3.9 million in gross receipts or sales for tax year 2010, and more than $4.3 million in gross receipts or sales for tax year 2011. Notwithstanding the actual gross receipts or sales that Govil earned through Company A, he reported gross receipts or sales of only $3,352,848 for tax year 2010, and $4,205,175 for tax year 2011.
Each count of making and subscribing false tax returns carries a maximum potential penalty of three years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited Special Agents of the IRS, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Jeffrey Alberts Esq., New York
Multi-State Major Drug Trafficking Network DismantledRead the Press Release
“PROJECT PARKERSBURG” ROLLED OUT THROUGH TAKEDOWN
Over 150 Pounds of Methamphetamine and 4 Pounds of Heroin
More than Two Dozen Arrested on Federal and State Charges
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced the formation of “PROJECT PARKERSBURG” and a major takedown today of drug traffickers resulting in the dismantling of a multi-state Drug Trafficking Organization (DTO) responsible for distributing methamphetamine and heroin in Parkersburg, West Virginia. As of the commencement of operations this morning, the investigation included the seizure of more than 150 pounds of methamphetamine and 4 pounds heroin. Joining United States Attorney Stuart in the announcement were Federal Bureau of Investigation Assistant Special Agent in Charge Nicholas Boshears of the Pittsburgh Field Office, Parkersburg Police Chief Joe Martin, Wood County Prosecuting Attorney Pat Lefebure, West Virginia State Police Captain Jason Davis, Bureau of Criminal Investigations, Wood County Sheriff Steve Stephens, Vienna Police Chief Mike Pifer, representatives of the Parkersburg Narcotics and Violent Crimes Task Force (PNTF) and Major Allen Tackett of the West Virginia National Guard. The West Virginia State Police, the Arizona State Police, and the FBI Field Offices in Tampa, Cincinnati, Detroit and Phoenix provided valuable assistance in this investigation. The FBI Safe Streets Task Force in the Dayton RA, Cincinnati Field Office is deserving of special recognition for their involvement in the seizure of the methamphetamine and arrests of the primary targets of the investigation.
"The vast majority of the methamphetamine and heroin in this country came across our Southern Border," Attorney General Sessions said. "Thanks to collaboration between law enforcement in Arizona, Florida, Ohio, and West Virginia, our prosecutors and law officers were able to dismantle a drug trafficking organization that brought methamphetamine 2,000 miles from the border to the small towns of Appalachia. As part of this operation, law enforcement has arrested some 30 defendants and seized 150 pounds of methamphetamine and heroin and tens of thousands of dollars in alleged ill-gotten gains. And so I want to thank U.S. Attorney Mike Stuart, the FBI's Tampa, Pittsburgh and Dayton offices, the West Virginia and Arizona state police, and all of the members of the Parkersburg Police and the Parkersburg Narcotics and Violent Crimes Task Force. By taking drug traffickers off of our streets, they are helping to keep the American people safe."
Today’s operation is the first public announcement of “PROJECT PARKERSBURG”, a project that has been ongoing but unannounced as a result of today’s dismantling of a drug trafficking organization. The takedown today was the result of a long-term investigation led by FBI and PNTF and involved the cooperation of law enforcement authorities in several states. A total of at least 29 individuals have been charged in federal and state court and final determinations of jurisdiction for charging will be made as a result of a review of today’s arrests.
In December 2017 members of the PNTF executed a search warrant at a residence in Parkersburg during which they learned that large amounts of methamphetamine were being shipped to West Virginia from Mexico. Witness interviews, financial records, and informant information led to the identification of Parkersburg residents Terrance McGuirk, Antoine Terry, and Aurelius Edmonds as individuals with access to the methamphetamine being shipped from the southern border to locations in West Virginia and Ohio. Over the course of nine months, agents and task force officers conducted an exhaustive investigation linking the Parkersburg DTO to sources in Arizona. On September 19, 2018, surveillance led investigators to Dayton, Ohio where Terry and Edmonds met with Arizona residents Todd Land and Troy Pastorino to pick up a large shipment of controlled substances to include more than 150 pounds of methamphetamine that had been offloaded from a truck into a rented storage unit. Investigators observed Pastorino load the drugs into the trunk of a Dodge Charger. Police seized the drugs after conducting a traffic stop of Pastorino. Terry, Edmonds, and Land were arrested at a nearby business, and McGuirk was arrested at his hotel near the Dayton airport.
While this investigation is ongoing, investigators have been able to dismantle a DTO operating across multiple states and responsible for distributing large quantities of methamphetamine, heroin, and cocaine. It is believed that the dismantling of this DTO removed all of the Parkersburg area individuals with access to the Arizona source and will significantly curtail the amount of methamphetamine available for distribution in Wood County and the surrounding area.
The arrests and seizures relating to this investigation break down, as of the issuance of this press release, as follows:
- 17 individuals have been charged in a federal indictment in the Southern District of West Virginia with conspiracy to distribute methamphetamine;
- 1 defendant has been charged with possession with intent to distribute methamphetamine and being a felon in possession of a firearm;
- 12 individuals are facing state charges filed by the Wood County Prosecuting Attorney;
- Over 150 pounds of methamphetamine were seized;
- Over 4 pounds of Heroin were seized;
- Over $84,000 in United States Currency was seized; and
- Several vehicles were seized that were used to transport controlled substances.
“Largest seizure of methamphetamine in our state’s history and a massive amount of heroin - Today is a significant day for West Virginia, the City of Parkersburg, Wood County and the surrounding multi-state area,” said United States Attorney Mike Stuart. “A significant drug trafficking organization with connections to sources of supply in Mexico has been dismantled. Today is a day in which every participating law enforcement officer should be very proud. The level of cooperation between our federal, state and local law enforcement agencies is unprecedented and reaches beyond West Virginia’s borders and beyond America’s borders. As a result, the largest seizure of methamphetamine in our state’s history and a massive amount of heroin was seized before it reached our streets. No doubt lives have been saved because of the exemplary work of law enforcement at every level, the Wood County Prosecutor’s Office and my team. Today’s actions as part of “PROJECT PARKERSBURG” are merely the first step in a long-term, sustained, aggressive effort to rid our streets of the drug dealers and drug thugs that cause chaos, havoc and despair in our communities and in our families.”
"Through collaboration with our federal, state and local law enforcement partners, we were able to target and dismantle this criminal organization," said FBI Pittsburgh Special Agent in Charge Robert Jones. "Drug-related crimes strangle communities. The FBI will always work to stop the violence, get drugs and weapons off the streets and justice for the people living in the communities we serve."
“The arrests made today are the culmination of many months of hard work by the PNTF and federal authorities and will have a significant impact in not only Wood County but our surrounding areas as well,” said Wood County Prosecuting Attorney Pat Lefebure.
“This investigation is an example of outstanding teamwork and collaboration of all law enforcement in this region of West Virginia that resulted in the largest seizure of methamphetamine and heroin,” said Parkersburg Police Chief Joe Martin. “I am very proud of the outcome of this investigation, as it is the largest seizure of both methamphetamine and heroin in the same criminal investigation in the Parkersburg area. Our mission is to identify and target these drug trafficking organizations that are polluting our city with poison. Once identified, we will do whatever is necessary to dismantle these organizations and partner with the U.S. Attorney to prosecute the members of these organizations. The long hours worked by the investigators involved proved to be successful and worthwhile. I am very pleased with the relationship between our federal law enforcement partners and the assistance from the U.S. Attorney for the Southern District of West Virginia, Mike Stuart. These investigators from the FBI and the Parkersburg Narcotics Task Force prevented hundreds of pounds of methamphetamine and heroin from getting to the streets of our community, and for this, I am very grateful.”
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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- SDWVNews and USAttyStuart
Monongalia County man sentenced for sex offender registry violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert W. Tucker, Jr., of Star City, West Virginia, was sentenced today to 34 months incarceration for a sex offender registration violation, United States Attorney Bill Powell announced.
Tucker, age 43, pled guilty to one count of “Failure to Update Sex Offender Registration” in June 2018. Tucker admitted to traveling from Monongalia County, West Virginia to South Carolina and North Carolina, without updating his registry, as required by law, in August 2016 and September 2017.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mission Man Charged with Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Brandon Jones, age 24, was indicted on August 13, 2018. He appeared before U.S. Magistrate Judge Veronica Duffy on October 10, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 16, 2018, Jones knowingly failed to appear for a scheduled hearing in federal court which he was ordered and required to appear at.
The charge is merely an accusation and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Jones was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Michigan man indicted for attempting to engage in sex acts with a childRead the Press Release
A Michigan man was indicted for attempting to engage in sex acts with a child.
Riley Thomas Griffin, 21, of Monroe, Michigan, was indicted on one count of traveling with intent to engage in sexual conduct with a minor and one count of receiving and distributing child pornography.
Griffin received and distributed numerous images of minors engaged in sexually explicit conduct. This took place in September, according to the indictment.
He also sent the images to an undercover agent and corresponded with this undercover agent about traveling from Michigan to Ohio to engage in sex acts with the undercover agent’s purported 9-year-old daughter, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, in Toledo, Ohio. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican National Sentenced for Meth Trafficking, Illegally Reentering the United StatesRead the Press Release
KANSAS CITY, Mo. – A Mexican national was sentenced in federal court today for methamphetamine trafficking and for illegally reentering the United States after having been deported three times.
Emilio Pena-Castro, 33, a citizen of Mexico residing in Kansas City, Kan., was sentenced by U.S. District Judge Gary A. Fenner to 10 years and one month in federal prison without parole.
On April 24, 2018, Pena-Castro pleaded guilty to possessing methamphetamine with the intent to distribute and to illegally reentering the United States after having been deported.
Pena-Castro was arrested on Sept. 9, 2017, following a traffic stop by a Missouri State Highway Patrol trooper. Pena-Castor, who was driving a 2003 Chevrolet Trailblazer, was stopped for speeding on I-29 near mile marker 58 in Missouri. Pena-Castro had no driver’s license and there was an active felony arrest warrant issued by the Maricopa County, Ariz., Sheriff’s Department.
During a search of the vehicle, officers seized a plastic bag that contained approximately 369.3 grams of methamphetamine concealed in the roof of the Trailblazer.
Pena-Castro was removed from the United States in March 2012 after being arrested in Phoenix, Ariz., for the offenses of aggravated assault, aggravated assault domestic violence – impede breathing, kidnap – apprehension of injury, and unlawful imprisonment. In August 2012 he was arrested in Arizona for offenses including possession/use weapon in drug offense, marijuana- transport and/or sell, and marijuana – possess/use. He was again removed from the United States. In October 2014, Pena-Castro was encountered at a residence in Phoenix in connection with an investigation regarding possible human smuggling activities. Federal agents seized approximately two kilograms of methamphetamine from the residence. Pena-Castro was convicted of illegally reentering the United States and was again removed to Mexico in January 2012.
This case was prosecuted by Special Assistant U.S. Attorney Kim Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Missouri State Highway Patrol.
Member of Large Drug Trafficking Organization Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced JERMAINE CHRISTOPHER PLEASANT a.k.a. “Plat Plat,” age 36, of Donaldsonville, Louisiana, to 80 months in federal prison following his convictions for conspiracy to distribute and possess with the intent to distribute heroin and unlawful use of communications facilities. The Court further sentenced PLEASANT to 5 years of supervised release following his term of imprisonment.
PLEASANT was charged in an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas. The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges. To date, investigative efforts have resulted in the seizure of over one and a half kilograms of heroin, substantial amounts of methamphetamine, crack cocaine, and oxycodone. Authorities have also seized seven firearms, over $314,000 in drug proceeds, and three vehicles allegedly used in the drug trafficking venture: a 2013 Porsche 911, a Mercedes CLS550, and a GMC Hummer.
From September 22, 2015 to April of 2016, PLEASANT conspired with eleven additional members of the drug trafficking organization to distribute in excess of 100 grams of heroin, in the Middle District of Louisiana, as set forth in the Indictment. As part of the conspiracy, Jason Muse purchased kilogram quantities of heroin from sources in Texas and then distributed the heroin to others in Baton Rouge and Ascension Parish. PLEASANT bought heroin from Muse to sell to others in and around Ascension parish.
To further the investigation into the organization’s drug trafficking activities, agents conducted court authorized interceptions of J. Muse’s wire and electronic communications. Through these interceptions, investigators learned that PLEASANT used telephones in furtherance of the conspiracy to distribute and possess with the intent to distribute heroin.
U.S. Attorney Fremin stated, “Thanks to the hard work of my office and our federal, state, and local law enforcement partners, we were able to remove this drug dealer from our streets with a significant jail sentence. We will continue to use our combined resources to keep dangerous drugs and drug dealers out of our communities.”
“Federal and local law enforcement have successfully collaborated in order to put this drug dealer in jail for 80 months as a result of his desire to supply the citizens in and around Ascension Parish with heroin. This successful prosecution should put others who engage in this type of criminal activity on notice: If you sell drugs, you will face federal charges and a lengthy prison sentence,” said DEA Assistant Special Agent in Charge Brad L. Byerley.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper pleaded guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Gary Herman, 45, of Chester, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 17, 2018. Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 months in prison. Herman was arrested on June 27, 2019, and subsequently released on conditions.
Herman was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Herman earned $227,826, which included approximately $63,053 in overtime pay.
Herman was paid for overtime shifts that he did not work at all or from which he left early. Herman concealed his abuse by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts. On multiple occasions Herman fabricated bogus citations, copying the driver information from citations that he had issued months earlier, in order to be paid for overtime that he did not work at all. In total, Herman collected $12,468 for overtime that he did not work.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Herman is the third Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, pleaded guilty, and on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree, pleaded guilty. Three other Troopers have been charged: on June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. On July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was charged.
Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 months in prison. The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao, Mark Grady, and Neil Gallagher of Lelling’s Criminal Division are prosecuting the case.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manhattan U.S. Attorney Announces Charges Against 5 Doctors and 2 Other Medical Professionals for Illegally Distributing OxycodoneRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), Scott Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), James P. O'Neill, Commissioner of the New York City Police Department (“NYPD”), and Mark G. Peters, Commissioner of the New York City Department of Investigations (“DOI”), announced today the unsealing five Indictments and a criminal Complaint in Manhattan federal court charging a total of 10 defendants with illegally distributing oxycodone.
U.S. Attorney Geoffrey S. Berman said: “These doctors and other health professionals should have been the first line of defense against opioid abuse, but as alleged in today’s charges, instead of caring for their patients, they were drug dealers in white coats. They hid behind their medical licenses to sell addictive, dangerous narcotics. This Office will do everything in its power to bring to justice anyone responsible for fueling the opioid epidemic that has taken so many lives.”
DEA Special Agent-in-Charge James J. Hunt said: “From drug cartels to street distributors, law enforcement is targeting all levels of drug traffickers amidst the worst drug crisis in American history. The worst villains in the fight against drug abuse are doctors whose criminal actions fuel addiction and overdoses. As a result of separate investigations from three DEA offices, five doctors, a pharmacist, a nurse practitioner and three associates have been arrested for their role in distributing millions of unnecessary oxycodone pills, allegedly. SAC Hunt commends the men and women from DEA’s Tactical Diversion Squads, our law enforcement partners and Southern District of New York for their commitment and hard work.”
IRS-CI Special Agent-in-Charge James D. Robnett said: “Medical professionals and others callously placed individuals in harm’s way simply because of greed. It takes a special kind of person to prey on the sick and vulnerable. The special agents of IRS Criminal Investigation will continue their mission to disrupt the flow of ill-gotten gains from these criminals.”
HHS-OIG Special Agent-in-Charge Scott Lampert said: “These individuals allegedly engaged in a greed-fueled scheme that put lives at risk and callously contributed to the opioid epidemic that continues to plague our society. These charges should serve as a warning to medical professionals that act like drug dealers and profit off of the vulnerable individuals they should be helping. Along with our law enforcement partners we are committed to ending the illegal distribution of opioids in this country and protecting the public’s health and welfare.”
NYPD Commissioner James P. O’Neill said: “Our entire country is suffering through an opioid abuse crisis, and we need to do everything we can to save as many lives as possible. We need to help people from falling into a black hole of addiction and fatal overdoses. We have to push New York City and our nation to thrive, and to turn this epidemic around. A good step in that direction is to investigate and put away the criminals who have so clearly betrayed their professional oaths – who have put illegal profits above their own integrity, and above the well-being of their fellow man. I commend each of our law enforcement partners on the Drug Enforcement Task Force, and all the New Yorkers who alert the police when they suspect criminality. This is how each of us – cops, prosecutors, and all the people we serve – are sharing the responsibility for public safety. And this is how we are making our way forward.”
DOI Commissioner Mark G. Peters said: “These joint investigations demonstrate the scourge that opioid abuse has on our community and the emphatic response from law enforcement: Any individual who seeks to promote prescription fraud and drug abuse will be exposed, arrested and prosecuted. DOI stands firmly with its federal partners on this serious issue and we will continue to work together to stop this crime and save lives.”
According to the allegations in the five Indictments and one Complaint unsealed today: [[1]]
DANTE A. CUBANGBANG, JOHN F. GARGAN, MICHAEL KELLERMAN, and LOREN PIQUANT, who together operated a medical clinic in Queens, were arrested yesterday evening and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, CUBANGBANG, a physician, and GARGAN, a nurse practitioner, prescribed over 6 million oxycodone pills to individuals they knew did not need the medication for any legitimate medical reason. CUBANGBANG and GARGAN prescribed more than twice as many oxycodone pills that were paid for by Medicare and Medicaid than the next highest prescriber in New York. CUBANGBANG and GARGAN doled out these prescriptions during office visits that lasted no more than a few minutes and involved little to no physical examination. Together with KELLERMAN and PIQUANT, who worked in the clinic and recruited patients, the defendants collected more than $5 million in all-cash office visit fees, which they laundered and divided amongst themselves.
CARL ANDERSON, a Staten Island physician, and ARTHUR GRANDE were arrested yesterday evening and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, ANDERSON prescribed nearly a million oxycodone pills to patients he knew had no legitimate medical need for the medication, including GRANDE, who sold the pills on the streets of New York. ANDERSON often saw his patients, some of whom displayed visible signs of drug addiction, without appointments and with little notice, in the middle of the night, and required that they pay hundreds of dollars in cash for each prescription. Noisy crowds of pill-seeking patients often gathered outside of ANDERSON’s office and in his waiting room, prompting occasional 911 calls from neighbors. Even after some of ANDERSON’s patients died of drug overdoses, he did not alter his prescribing practices.
ANTHONY PIETROPINTO, a psychiatrist residing in Manhattan, was arrested this morning and will be presented today before Magistrate Judge James L. Cott. According to the allegations in the Complaint unsealed today in Manhattan federal court, PIETROPINTO wrote thousands of medically unnecessary oxycodone prescriptions in exchange for $50 to $100 in cash per visit. PIETROPINTO wrote these prescriptions to drug-addicted individuals, including one patient who overdosed on drugs, and who had previously been prescribed by PIETROPINTO both oxycodone and naloxone, a medication used to block the effects of opioid overdoses, because PIETROPINTO was aware of, but disregarded, that patient’s addiction issues. PIETROPINTO saw these patients in a rented office space after hours, and instructed his patients to not fill prescriptions at large chain pharmacies because pharmacists at those pharmacies would call and question PIETROPINTO about why he wrote prescriptions for large amounts of oxycodone.
NKANGA NKANGA, a Staten Island physician, was arrested this morning and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, in exchange for cash payments, NKANGA wrote thousands of oxycodone prescriptions for patients, some of whom displayed visible signs of drug addiction, without conducting any physical examination, or even seeing them in an examination room. NKANGA also wrote prescriptions in the names of patients who did not even visit his medical office. On one occasion, for instance, NKANGA asked a patient, “how many people are you representing today,” and then wrote prescriptions in the names of people, even though three were not present. NKANGA regularly prescribed over 100 oxycodone pills per patient per month until July 2018 when he reduced all patients’ monthly allotment, telling one patient he was “very worried” about scrutiny from law enforcement.
NADEM J. SAYEGH, a physician with offices in the Bronx and Westchester, was arrested this morning and will be presented in Manhattan federal court today. According to the allegations in the Indictment unsealed today, SAYEGH maintained a corrupt relationship with a co-conspirator, issuing oxycodone prescriptions in his name, variations of his name, his family members’ names, and the names of other individuals in exchange for thousands of dollars in cash, expensive dinners, high-end whisky, cruises, and all-expense-paid trips. SAYEGH wrote some of these prescriptions, for which there was no legitimate medical purpose, for individuals who did not visit his medical office, including a patient who was overseas and another patient who was incarcerated.
MARC KLEIN, a pharmacist in White Plains, was arrested this morning and will be presented in Manhattan federal court. According to the allegations in the Indictment unsealed today, KLEIN filled oxycodone prescriptions that he knew were illegitimate, including prescriptions filled by a customer in multiple variations of his name and date of birth, and prescriptions filled in the names of individuals who never were present in the pharmacy. KLEIN filled thousands of these oxycodone prescriptions, “fronted” controlled substances, and made false reports to New York State authorities, in exchange for cash payments and a vacation. KLEIN admitted, in substance, that he and his employees could be called “licensed drug dealers” because “oxy pays the bills” at KLEIN’s pharmacy.
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CUBANGBANG, 50, of Franklin Square, New York, GARGAN, 62, of Manhattan, New York, KELLERMAN, 54, of Queens, New York, and PIQUANT, 37, of Bronx, New York, have been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison. CUBANGBANG, GARGAN, and KELLERMAN are also charged with one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
ANDERSON, 57, of Staten Island, New York, and GRANDE, 53, of Staten Island, New York, have been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison.
PIETROPINTO, 80, of Manhattan, New York, has been charged in a Complaint with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison, and two counts of distribution of controlled substances, each of which carries a maximum sentence of 20 years in prison.
NKANGA, 65, of Staten Island, New York, has been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison, and four counts of distribution of controlled substances, each of which carries a maximum sentence of 20 years in prison.
SAYEGH, 64, of Yonkers, New York, has been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison; one count of distribution of controlled substances, which carries a maximum sentence of 20 years in prison; one count of health care fraud, which carries a maximum sentence of 10 years in prison; making false statements, which carries a maximum sentence of five years in prison; and aggravated identity theft, which carries a two year mandatory minimum prison sentence to be served consecutive to any other term of imprisonment.
KLEIN, 47, of White Plains, New York, has been charged in an Indictment with one count of conspiracy to distribute controlled substances, which carries a maximum sentence of 20 years in prison, and 14 counts of distribution of controlled substances, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by their respective judges.
Mr. Berman praised the investigative work of the DEA Tactical Diversion Squads in New York, Long Island and Newark as well as HHS, DOI and IRS. DEA’s Tactical Diversion Squad, New York (Group TDS-NY) comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services and New York City Department of Investigation. DEA’s Long Island Tactical Diversion Squad (LIDO –TDS) comprises agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, Suffolk County Police Department, Port Washington Police Department and Internal Revenue Service. Newark Tactical Diversion Squad (Newark-TDS) comprises agents and officers from the DEA, Elizabeth Police Department, Essex County Sheriff’s Office, Toms River Police Department, Clinton Police Department, West Orange Police Department, Pohatcong Police Department, Long Branch Police Department, and Marlboro Police Department. Assistance was also provided by the Yonkers Police Department and Greenburgh Police Department.
Parts of this cases were conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
These cases are being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Michael Krouse and Louis Pellegrino are in charge of the prosecution in United States v. Cubangbang et al., Assistant U.S. Attorneys Stephanie Lake and Nicolas Roos are in charge of the prosecution in United States v. Pietropinto, and Assistant U.S. Attorney Nicolas Roos is in charge of the prosecutions in United States v. Anderson et al., United States v. Nkanga, United States v. Sayegh, and United States v. Klein.
The charges contained in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and Complaint, and the description of the Indictments and Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced in Connection with Gems and Gold Corner Jewelry Store Armed RobberyRead the Press Release
St. Thomas, USVI – Devon Davis, 28, of St. Thomas, was sentenced today for his role in the armed robbery of the Gems and Gold Corner jewelry store, located on the St. Thomas waterfront, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Curtis V. Gomez sentenced Davis to 61 months in prison for conspiracy to commit Hobbs Act robbery, three years of supervised release, a $100 special assessment, and ordered him to perform 400 hours of community service.
On March 5, 2018, Davis pleaded guilty to conspiring to commit a Hobbs Act robbery of Gems and Gold Corner Jewelry Store on St. Thomas, on September 16, 2013. According to the plea agreement, Davis and others conspired to rob the store and brandish weapons to threaten and intimidate store employees, and four of the individuals fled the store with merchandise. Davis rented a room at a guesthouse for four coconspirators prior to the robbery and drove the getaway car after the robbery.
Davis and coconspirators were ordered to pay restitution in the amount of $31,027.88 to Gems and Gold Corner and $130,322.12 to Dorchester Insurance.
This case is a result of an investigation conducted by the Federal Bureau of Investigation and the Virgin Islands Police Department and was prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
Lima man indicted for child pornography crimesRead the Press Release
A Lima man was indicted on child pornography charges.
Christopher L. Frater, 41, was indicted on one count of receipt and distribution of child pornography. He allegedly received numerous images of child pornography in 2017 and 2018.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
La Plata County Inmate Sentenced for Conspiracy to Commit Bank Fraud and Money LaunderingRead the Press Release
DURANGO –Anthony Ryan Lopez, age 30, was sentenced by U.S. District Court Judge Robert E. Blackburn yesterday to serve 24 months incarceration followed by three years of supervised release and ordered to pay restitution of $98,902.76. Lopez pled guilty on June 28, 2018. The sentence was announced by U.S. Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.
According to the information and plea agreement, Lopez and three co-conspirators, a/k/a The Fraud Squad, routinely committed criminal acts in order to unlawfully obtain credit card numbers and personal identifying information and used that information to fraudulently obtain goods or services.
On October 11, 2015, Durango Police officers arrested Lopez and took him to the La Plata County jail.
Throughout October and November of 2015, each inmate at the jail had an inmate account, which they were able to use for expenses incurred in the jail, such as commissary items and phone calls. The jail also permitted inmates to issue checks drawn against their inmate accounts. Lopez learned that non-inmates could deposit money into inmate accounts using an online kiosk. The kiosk permitted users to deposit funds to an inmate’s account using credit card information.
Between October 12, 2015, and November 23, 2015, Lopez conspired and agreed with his co-conspirators to fraudulently enter stolen personal identifying information and stolen credit card information on the kiosk website in order to deposit funds into Defendant Lopez’s inmate account and other inmates’ accounts. In October and November of 2015, the co-conspirators had possession of at least 36 sets of stolen credit card information.
Lopez knew that, when they entered the required information on the kiosk website, the co-conspirators falsely pretended to be the authorized credit card holders with the authority to direct the requested deposits. In 35 successful transactions, the Fraud Squad fraudulently entered stolen credit card information into the kiosk while pretending to be the authorized credit card holder, which caused banks to deposit a total of $98,902.76 into accounts belonging to Lopez and other inmates.
Lopez used the money from his inmate account for his own purposes, such as purchasing commissary items and making phone calls. In coordination with the other members of the Fraud Squad, Lopez also caused checks to be issued against his inmate account with the intent that the money be used for the benefit of himself and the Fraud Squad.
On November 11, 2015, Lopez willfully caused a check to be issued from his inmate account to a co-conspirator in the amount of $16,000. Lopez knew that these funds were from an illegal source. Lopez willfully caused this check to be issued to a co-conspirator to launder the illegal proceeds. In fact, on November 8, 2015, Lopez told a co-conspirator during a recorded jail call that once money was put into Lopez’s inmate account it was “clean and clear” and that no one could get arrested as a result of that money.
“It’s a special kind of person who sees county jail as a business opportunity for victimizing innocent citizens,” said U.S. Attorney Bob Troyer. “Those special people have proven they qualify for federal prison.”
“Identity theft is a contemptible modern-day menace,” said Steven Osborne, IRS Criminal Investigation Special Agent in Charge. “Law enforcement officers respond to it with every legal resource available. Let this sentence serve as a warning to those who are considering similar conduct.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorneys Pegeen D. Rhyne and Jeffrey Graves.
Justice Department and ATF Name 22 Sites to Receive New National Integrated Ballistic Information Network EquipmentRead the Press Release
Evidence based forensic tool to help solve violent crime
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:
- Anchorage, AK PD
- Aurora, IL PD
- Berks County, PA
- Charleston, WV PD
- Cheney, WA State Patrol
- Des Moines, IA PD
- Frederick County, MD Sheriff’s Office
- Ft. Myers, FL PD
- Glendale, AZ PD
- Nassau County, NY Public Safety Center
- Lexington, KY PD
- Miami Gardens, FL PD
- Orange County, NY Intelligence Center
- Pensacola, FL Escambia Co Sheriff
- Richmond, VA PD
- San Bernardino, CA PD
Six agencies are receiving additional equipment to enhance their successful crime gun intelligence programs:
- Baton Rouge, LA State Crime Lab
- Cincinnati, OH PD
- Denver, CO PD
- Detroit, MI PD
- Jacksonville, FL PD
- Philadelphia, PA PD
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.
Jasper County Man Pleads Guilty to Illegally Possessing Unregistered Machine GunRead the Press Release
Hattiesburg, Miss. – James Christopher Varner, 39, of Stringer, Mississippi, entered a guilty plea today before U.S. District Judge Keith Starrett to illegally possessing a machine gun that was not registered, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Varner, 39 of Stringer, faces a maximum of 10 years in prison on the charge. He further faces a fine of $10,000 along with 3 years of supervised release. Sentencing is set for January 3, 2019, at 10:00 a.m.
On January 22, 2018, deputies with the Jasper County Sheriff’s Office responded to a domestic violence call at a home in Stringer, Mississippi. Once there, they found a female who had been injured, along with several firearms. When Deputies tracked down Varner, they found additional firearms, along with controlled substances, a KKK robe, hood and literature. With the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, a total of 46 firearms were seized, including 4 machine guns, 2 sawed-off rifles, multiple silencers, multi-round magazines, machine gun conversion kits, and other weapons.
Hurst commended the incredible work of the Jasper County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives who investigated the case. The case is being prosecuted by Assistant United States Attorney Annette Williams.
Indictment: Retired City Clerk Covered up EmbezzlementRead the Press Release
WICHITA, KAN. – A retired city clerk of Caney, Kan., was indicted today on charges of stealing more than $36,500 from the city, U.S. Attorney Stephen McAllister said.
Carole Sue Coker, 69, Oronogo, Mo., is charged with one count of mail fraud and one count of bank fraud. The indictment alleges that Coker, who served as city clerk for about 40 years, employed a so-called “check for cash” embezzlement scheme to conceal the crimes.
The indictment alleges Coker embezzled a portion of cash payments made to the city. She covered up the crime by recording only a portion of some checks made out to the city. In this way, Coker made the city’s books appear to balance.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000 on the mail fraud count, and up to 30 years and a fine up to $1 million on the bank fraud count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
The former operator of the water system in Garden Plain, Kan., was charged today with falsifying reports on the quality of the city’s drinking water, U.S. Attorney Stephen McAllister said.
Arthur Wolfe, 62, Norwich, Kan., is charged with two counts of making false statements in reports required by the Environmental Protection Agency. The indictment alleges Wolfe certified bacteriological reports in which water samples taken from some locations were represented as samples taken at other locations.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each count. The Environmental Protection Agency investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Martin Urias-Sillas, 43, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 26, 2017, in Wichita, Kan.,
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal alien from Honduras indicted on multiple firearms charges, illegal re-entryRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that an illegal alien from Honduras was indicted on multiple firearms violations and illegally re-entering the country.
Selvin Ponce-Hernandez, 27, of Honduras, was indicted on one count of illegal re-entry of a removed alien, possession of a firearm by a prohibited felon, and possession of a firearm by an illegal alien. According to the indictment, Ponce-Hernandez was arrested on August 9, 2018 in Lafayette Parish. Law enforcement agents found that he was from Honduras and had previously been deported. He was also in possession of a Bersa Thunder .380 Deluxe pistol and ammunition. A review of his criminal record showed that he was also a convicted felon.
Ponce-Hernandez faces up to 10 years in prison for the illegal re-entry count, 10 years in prison for the possession of firearm by a prohibited felon count, and 10 years in prison for the possession of firearm by an illegal alien. He also faces three years of supervised release, a $250,000 fine, and possible deportation.
Homeland Security Investigations, the ATF and the Lafayette Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Hope Mills Man Sentenced on Drug and Gun ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced Tavares Graham, 40, of Hope Mills, to 120 months’ imprisonment followed by 5 years of supervised release.
On April 18, 2018, GRAHAM pled guilty to one count charging possession with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base (crack) and another count charging possession of a firearm in furtherance of a drug trafficking crime.
Officers of the Fayetteville Police Department, with assistance from the Hope Mills Police Department, obtained a search warrant for GRAHAM’s Hope Mills residence based on reports from informants and drug evidence found in GRAHAM’s trash. On May 25, 2016, law enforcement executed the search warrant, finding 720 grams of cocaine and 25 grams of crack cocaine in GRAHAM’s kitchen and garage. In the garage not far from the drugs, officers also found an Amadeo .38 special revolver and a separate magazine loaded with 12 9mm rounds. Other seized evidence included supplies to cook crack cocaine, digital scales, and torn sandwich bags.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation of this case was conducted by the Fayetteville Police Department, Hope Mills Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Jake D. Pugh represented the government in this case.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CELIO JAVIER JUAREZ-AGUILAR, age 42, a native of Honduras, pleaded guilty today to a one-count indictment charging him with illegal entry of a removed alien.
According to the court documents, JUAREZ-AGUILAR was previously removed from the United States on February 25, 2014. He was later found in the Eastern District of Louisiana on July 15, 2018, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
JUAREZ-AGUILAR faces a maximum term of imprisonment of 10 years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee. U.S. District Court Judge Eldon E. Fallon set sentencing for November 8, 2018.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hobbs Man Pleads Guilty to Violating Federal Drug Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Robert Pena, 38, of Hobbs, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal drug trafficking and firearms laws. Pena’s plea agreement recommends a prison sentence of 15 years followed by a term of supervised release to be determined by the court.
Pena was charged with federal drug trafficking and firearms offenses in a federal criminal complaint filed on April 26, 2018, and was arrested on May 8, 2018, after he was transferred from state custody to federal custody. According to the criminal complaint, Hobbs Police Department (HPD) officers arrested Pena in Jan. 2018, after finding a firearm and ammunition, approximately 152 grams (5.3 ounces) of methamphetamine, a small amount of cocaine and marijuana, and drug paraphernalia in Pena’s vehicle while executing a search warrant following a routine traffic stop.
A federal grand jury indicted Pena on July 18, 2018, and charged him with possession of methamphetamine with intent to distribute and possession of a firearm during and in relation to a drug trafficking crime. According to the indictment, Pena committed the offenses on Jan. 25, 2018, in Lea County, N.M.
During today’s proceedings, Pena pled guilty to the indictment and admitted that HPD officers stopped him on Jan. 25, 2018, because of a brake light malfunction on his vehicle, and during a canine sniff search, the narcotics canine alerted to the presence of drugs in his vehicle. Pena further admitted that the HPD officers subsequently found approximately 146.3 grams of pure methamphetamine and a loaded firearm in his vehicle during the execution of a search warrant. Pena admitted that he intended to distribute the methamphetamine to others in exchange for money, and that he carried the loaded firearm to protect himself and the drugs in furtherance of his drug trafficking activities.
Pena has been in custody since his state arrest in Jan. 2018, and will remain in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the DEA, the Hobbs Police Department, and the Lea County Drug Task Force with assistance from the 5th Judicial District Attorney’s Office. Special Assistant U.S. Attorney Joni Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hialeah Check Casher Pleads Guilty to Laundering over $100 million in Healthcare, Mortgage and Identity Theft Tax Refund Fraud ProceedsRead the Press Release
A Hialeah check casher pled guilty yesterday to laundering over $100 million in proceeds of healthcare, mortgage and identity theft tax refund fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Evelio Suarez, 53, of Miramar, pled guilty before U.S. District Judge Robert N. Scola, Jr. to one count of money laundering. Surarez is scheduled to be sentenced by Judge Scola on December 18, 2018, at 8:30 a.m.
According to the agreed upon factual proffer and court documents, from 2013 through 2015 (the “relevant period”), Suarez controlled a number of check-cashing stores located in Hialeah, Florida (the “Suarez Stores”). During this period, the defendant caused the cashing of checks at the Suarez Stores that were the proceeds of fraudulent activity, including identity-theft tax refund fraud, health care fraud, and mortgage fraud. On numerous occasions, Suarez cashed individual fraudulent Medicare checks exceeding $200,000 and individual U.S. Treasury tax refund checks exceeding $150,000. Suarez knew that the checks had been obtained from fraudulent activity and, on occasion, knowingly accepted fake identification documents.
According to the factual proffer, because Suarez knew the funds came from illegal sources, the defendant charged an additional fee on top of the standard fee charged by the check-cashing stores. Suarez charged this as a personal fee that he took in cash from the stores. Suarez also often withheld money from the checks and falsely claimed to the scammers that the money from their checks had been frozen by the banks or the authorities.
According to the factual proffer, during the relevant period, Suarez knowingly cashed at least $100 million in checks that came from either identity-theft tax refund fraud, healthcare fraud or mortgage fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and FBI in this matter. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Yisel Valdes.
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.
Groton Man Sentenced to 5 Years in Prison for Child Pornography OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that WILLIAM MILLETT, 28, of Groton, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by five years of supervised release, for a child pornography offense.
According to court documents and statements made in court, an HSI investigation revealed that an internet protocol (IP) address associated with MILLETT was being used to access child pornography. On November 7, 2017, investigators conducted a court-authorized search of MILLETT’s Groton residence and seized several electronic devices, including a thumb drive. Forensic analysis of the thumb drive revealed 198 images and two videos of child pornography, as well as multiple instructional guides related to the sexual abuse of children. An additional 37 images of child pornography were recovered from MILLETT’s email account.
MILLETT has been detained since his arrest on November 9, 2017. On June 20, 2018, he pleaded guilty to one count of receipt of child pornography.
This matter was investigated by Homeland Security Investigations (HSI) with the assistance of the Connecticut State Police and Town of Groton Police Department. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Guilty Plea Involving Drug Loads in the Parking Lot at Local High SchoolRead the Press Release
NEWS RELEASE SUMMARY – October 11, 2018
San Diego, California – Defendant Alejandro Barba pled guilty today to conspiracy to distribute methamphetamine, which carries a 10 year minimum mandatory sentence, before Magistrate Judge Nita Stormes of the U.S. District Court for the Southern District of California.
On May 1, 2018, Barba, who was parked on the grounds of San Ysidro High school, received five kilograms of methamphetamine from a juvenile courier who attended San Ysidro High School. Barba was arrested shortly thereafter by the San Diego Sheriff’s Office Border Suppression Team. Special Agents with Homeland Security Investigation and Drug Enforcement Administration assisted in the investigation.
During his guilty plea today, Barba admitted picking up methamphetamine on multiple occasions at the San Ysidro High School parking lot from juveniles, who smuggled methamphetamine into the United States.
His next court appearance is on January 4, 2019 for sentencing before District Court Judge Anthony Battaglia.
DEFENDANT
Criminal Case No. 18CR2850AJB
Alejandro Barba 27 years old San Diego, California
CHARGE
Conspirary To Distribute Methamphetamine (21 U.S.C. 841 & 846)
10 years minimum to life in custody; $1,000,000 fine
AGENCIES
San Diego County Sheriff’s Department
SDCO’s Border Suppression Team
Homeland Security Investigations
Drug Enforcement Administration
Fugitive Lawyer Pleads Guilty in Connection with $21 Million Fraud SchemeRead the Press Release
Michael R. Casey, 71, a fugitive for over four years, pled guilty today for his participation in a $21 million investment fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Gadyaces S. Serralta, U.S. Marshal, U.S. Marshals Service (USMS), Miami Field Office, made the announcement.
Casey pled guilty before U.S. Magistrate Judge Andrea M. Simonton, to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 12-20630-Cr-Lenard). Casey previously pled guilty to failing to appear in court in 2014 (Case No. 14-20619-Cr-Moreno). Casey is scheduled to be sentenced for both offenses of conviction on November 27, 2018, by Chief U.S. District Judge K. Michael Moore.
According to the court record, Casey, originally of Fort Lauderdale, and co-defendants James C. Howard, III, of Parkland, Patricia S. Saa, of Tampa, and Louis N. Gallo, III, of Parkland, defrauded individuals who invested in Commodities Online LLC (COL). From approximately January 2010 through April 2011, Casey and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 770 investors.
Casey and his co-conspirators used COL to sell: shares of ownership in COL; subscriptions to access the COL website and COL’s investment opportunities; and investments in purported transactions to buy and sell commodities, such as fish, iron ore and sugar. After receiving $2.2 million for the COL ownership shares in early 2010, Howard and Saa diverted $1.3 million of those funds for other purposes. By the summer of 2010, Casey learned that the funds had been diverted for other purposes, and did not disclose it to investors.
In addition to selling COL ownership units, Casey and his co-conspirators offered investors the opportunity to fund purported contracts to buy and sell commodities. Casey and his co-conspirators offered a stated percentage return on investment, such as 10% within 30 days or 20% within 70 days. However, the specific purported contracts – for which investors sent COL money – did not exist as represented to investors. Also, Casey and his co-conspirators represented to investors that COL had a track record of profits on these purported contracts. However, Casey and his co-conspirators knew that COL did not have profits.
Casey and his co-conspirators also made material misrepresentations and omissions about the leaders of COL. Howard, who was initially the President of COL, was arrested for a state fraud offense in March of 2010. As a result, Howard stepped down. Casey, who was initially outside counsel to COL, became the President of COL in May of 2010. From May 2010 to March 2011, Casey and his co-conspirators represented to investors that Howard was no longer managing COL, when in fact, Howard remained the top person in charge. Also, Casey and his co-conspirators did not disclose to investors that both Howard and Gallo had previously been convicted of felonies.
During the time COL was operating, COL paid about $3 million to investors using funds paid by later investors. The investors lost approximately $18,919,995.
On August 30, 2012, Casey was charged by indictment, along with Howard, Saa, and Gallo, with one count of conspiracy to commit mail and wire fraud, and several counts of mail and wire fraud. Howard, Saa, Gallo, and another defendant, Rita Balbirer, were also charged with conspiracy to commit money laundering and various counts of money laundering.
In April of 2014, Casey failed to appear at a status hearing while pending trial. In August of 2014, Casey was indicted for bond jumping.
In September 2013, Howard pled guilty to one count of conspiracy to commit mail and wire fraud. In December 2013, Howard was sentenced to 189 months in prison.
In August of 2014, Gallo pled guilty to one count of conspiracy to commit mail and wire fraud. In October of 2014, Gallo was sentenced to 168 months in prison.
In July of 2014, Balbirer pled guilty to two counts of money laundering. In September of 2015, Balbirer was sentenced to 17 months in prison.
In addition, other co-conspirators in the COL fraud scheme were charged separately with conspiracy to commit mail and wire fraud. In November 2013, three defendants pled guilty for their involvement in the scheme. In February 2015, Timothy Josselson was sentenced to 38 months in prison, in Case No. 13-20730-Cr-Altonaga. In February 2015, Kathryn Josselson was sentenced to 36 months in prison, in Case No. 13-20731-Cr-Moore. In March 2015, Robert Lananna was sentenced to 40 months in prison, in Case No. 13-20732-Cr-Ungaro.
U.S. Attorney Fajardo Orshan commends the investigative efforts of the FBI and USMS in this matter. This case is being prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John Gonsoulin.
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 on http://pacer.flsd.uscourts.gov.
Fresno Man Admits to His Role in Coordinating a Drug DealRead the Press Release
FRESNO, Calif. — Rafael Delatorre, 33, of Fresno, pleaded guilty on Wednesday to using a cellphone to facilitate a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 15, 2016, Delatorre used a cellphone to communicate with a local drug dealer and an out-of-town drug courier to coordinate the transfer of more than 30 pounds of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, the Fresno Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Melanie L. Alsworth and Kimberly Sanchez are prosecuting the case.
Delatorre is scheduled to be sentenced by Judge Dale A. Drozd on January 22, 2019. Delatorre faces a maximum statutory penalty of 4 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Office Manager of Boston Dental Practice Charged with Bank and Tax FraudRead the Press Release
BOSTON – The former office manager of a Boston-based dental practice was charged in an indictment unsealed today in connection with embezzling funds from her former employer.
Yuliya Vaysglus, a/k/a Julia Vaysglus, 35, of Cary, N.C., was charged with eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. Vaysglus will appear today in federal court in Boston.
The indictment alleges that from 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice. Her responsibilities involved tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, it is alleged that Vaysglus misappropriated more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the owner’s signature on the checks, and deposited them into her bank account. In order to conceal the scheme, Vaysglus did not record the insurance payments in the bookkeeping system. The indictment further alleges that Vaysglus failed to report the embezzled funds on her federal tax returns.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former NASA Contractor Pleads Guilty and Admits Computer Hacking and Threats Made to Obtain Nude Photos of Female VictimsRead the Press Release
LOS ANGELES – A Los Angeles man pleaded guilty this afternoon to federal charges of hacking into email and social media accounts to obtain nude photographs of women and then threating to publish the nude photos unless victims provided him with additional explicit pictures.
Richard Gregory Bauer, 28, a former contractor at NASA Armstrong Flight Research Center, pleaded guilty to three charges – stalking, computer hacking and aggravated identity theft.
Bauer, who used aliases that included “Steve Smith,” “John Smith,” and “Garret,” pleaded guilty before United States District Judge John F. Walter, who scheduled a sentencing hearing for December 17.
Bauer, who currently resides in the Mid-Wilshire District of Los Angeles, and who recently lived in the High Desert communities of Palmdale and Lancaster, admitted in court that he obtained unauthorized access to victims’ online accounts and threatened the women starting in early 2015 and continuing through early 2018.
In a plea agreement filed in United States District Court, Bauer acknowledged that he sent victims anonymous online messages threatening to disseminate nude pictures if they did not send additional photographs of themselves. In some cases, but not all, Bauer had explicit photographs in his possession. Bauer knew all of his victims, who were friends, family, acquaintances from high school and college, co-workers, and friends of friends.
Bauer hacked into the victims’ online accounts in two ways. In some cases, Bauer, using his true identity, contacted victims on Facebook and posed a series of questions, purportedly as part of a project he was working on for his “human societies class.” Some of the questions included typical questions used to reset online passwords, such as the name of your first pet or the city where your parents met. Armed with that information, Bauer reset passwords to gain access to his victims’ online accounts, primarily cloud-based iPhone backups, from which he harvested photographs, videos and documents containing passwords for other accounts.
In other instances, again using his true identity, Bauer convinced victims to install malware that he claimed was software that he needed help testing. The malware gave Bauer unauthorized access to the computers, and allowed him, among other things, to capture from the victims’ computers passwords for web sites and e-mail accounts.
As a result of today’s guilty pleas, Bauer faces a statutory maximum sentence of five years in federal prison for the stalking and computer hacking counts. The aggravated identity theft count carries a two-year, consecutive prison term.
This case is the result of an investigation conducted by NASA’s Office of Inspector General.
This matter is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes
Former Hamilton County Sheriff’s Deputy Sentenced for Lying to ATFRead the Press Release
WICHITA, KAN. – A former deputy with the Hamilton County Sheriff’s Department was sentenced Wednesday to a year and a day in federal prison for lying to investigators about a missing machinegun, U.S. Attorney Stephan McAllister said.
Robert W. Doty, 60, Guymon, Okla., pleaded guilty to one count of lying to a federal investigator. In his plea, Doty admitted that in March 2018 he was interviewed by an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The agent was investigating a report by the Hamilton County Sheriff’s Office that an Uzi machinegun was missing from its inventory.
Doty told the agent that he had cleaned the machinegun, taken it to the range to shoot it and then returned it to the Sheriff’s office. In fact, Doty did not return the machinegun. He took it to a third party’s house and left it there.
According to the Kansas Commission on Peace Officers’ Standards and Training, Doty’s certification as a law enforcement officer has been revoked.
McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Debra Barnett for their work on the case.
Former Georgia Department of Corrections officer pleads guilty to smuggling drugs into prisonRead the Press Release
ROME, Ga. – Tiffany Cook, a former Georgia Department of Corrections (GDC) officer, pleaded guilty to being paid by a prison inmate to smuggle methamphetamine and marijuana into Hays State Prison located in Trion, Georgia.
“Georgia correctional officers serve every day, faithfully executing their duties with integrity,” said U.S. Attorney Byung J. “BJay” Pak. “Cook, however, violated the oath of office she swore to uphold and the law when she smuggled drugs into prison. She must now account for her betrayal of trust.”
“It is very troubling that a sworn officer is willing to sell her badge for personal payoff, putting her fellow officers and inmates safety in jeopardy,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Cook not only betrayed the institution she was sworn to protect, she also betrayed every hard working corrections officers who uphold their oaths every day.”
“We are pleased to see that justice has been served on this individual, who chose to violate her oath and put other staff at risk by introducing contraband into our facility,” said Gregory C. Dozier, GDC Commissioner. “Our special agents are to be commended for their work in identifying the individual leading to her prosecution, and we are also proud of our officers for their diligence. The commitment to public safety by all of our law enforcement partners is paramount in maintaining safe and secure prisons, and we appreciate their support.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On May 17, 2010, Cook began working with the GDC as a correctional officer. Beginning in April 2017, Cook served as a correctional officer at Hays State Prison. Hays State Prison is located in Trion, Georgia in Chattooga County. The facility opened in 1990 and currently holds approximately 1,680 male prisoners.
In early July 2018, the GDC received information from an inmate that Cook was being paid to smuggle illegal drugs into the prison. On July 9, 2018, Cook arrived at Hays State Prison to report for her regularly-scheduled shift. As Cook approached the time clock, correctional officers asked Cook to walk into a conference room. Following the request, Cook stated that she felt ill and wanted to leave the prison. Correctional officers detained and ultimately searched Cook.
Pursuant to their search, correctional officers recovered more than 118 grams of actual methamphetamine (with a purity of 90%), and more than 150 grams marijuana from Cook’s vaginal cavity and bra. After seizing the methamphetamine and marijuana, correctional officers placed Cook under arrest.
Sentencing for Tiffany Cook, 34, of Summerville, Georgia, is scheduled for December 21, 2018, at 2:00 p.m. before U.S. District Judge Harold L. Murphy. Cook was charged in a criminal information with one count of possession, with intent to distribute, a controlled substance on October 11, 2018.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Corrections.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former District of Columbia Government Employee Pleads Guilty to Accepting Bribes from ConsultantRead the Press Release
WASHINGTON – A former employee of the District of Columbia Department of Human Resources pled guilty today to a federal bribery charge for accepting more than $140,000 in bribes from a consultant and independent contractor who did business with the government.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Latasha Moore, 38, of Washington, D.C., pled guilty before the Honorable Dabney L. Friedrich in the U.S. District Court for the District of Columbia. The charge of bribery carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Moore faces a possible range of 70 to 87 months in prison and a fine of up to $250,000. A sentencing date has not yet been set.
According to a statement of offense submitted at the plea hearing, Moore started work in 2002 for the D.C. Department of Human Resources; in 2012, she was promoted to the position of resource allocation analyst. In that role, among other duties, she was the main point of contact for a government contractor that had agreements with the District of Columbia Department of Human Resources to provide organizational skills training courses and human resources consulting to various D.C. government agencies.
As noted in the statement of offense, Moore and a consultant employed by the company engaged in a scheme in which Moore agreed to protect the government contracts held by the company and ensure that no complaints about its performance reached others in the District of Columbia government. The scheme began in approximately July 2014 and ran through August 2017. In return for her actions, according to the statement of offense, Moore accepted more than $140,000 from the consultant in checks and a PayPal money transfer.
According to the statement of offense, Moore had suspicions about more than $1 million in invoices that the consultant submitted from March 2015 through June 2017. Nonetheless, in return for the money the consultant paid her, Moore advised other D.C. government officials to approve the invoices for payment. As the scheme continued, according to the statement of offense, the company discovered that the consultant was acting on his own and retaining the profits for himself. Although Moore knew of the company’s concerns, she did not relay them to her supervisors and continued to advise other government officials to approve the consultant’s invoices.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Michael Marando, who is prosecuting the matter.
Former Correctional Officer Sentenced to 14 Months in Prison for Having Sex with an InmateRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of MARK MCSHANE, 37, a former correctional officer, to 14 months in prison for engaging in a sexual relationship with a female inmate. On June 7, 2018, MCSHANE pleaded guilty to a felony information charging him with one count of sexual abuse of a ward. MCSHANE was sentenced earlier today before Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minnesota.
Assistant U.S. Attorney Julie Allyn said, “The sentence handed down today was appropriate for Mr. McShane’s misconduct. When a correctional officer, a person in a position of authority, takes advantage of an inmate, it erodes trust throughout the institution and has a negative impact on every other inmate and employee.”
According to his guilty plea and documents filed in court, MCSHANE was employed as a correctional officer at the Federal Correctional Institution (FCI) in Waseca, Minnesota. From November 2016 through January 2017, MCSHANE engaged in a sexually inappropriate relationship with the inmate while she was incarcerated. Subsequently, in February 2017, MCSHANE became extremely intoxicated during a social outing and admitted to co-workers his sexual misconduct with the inmate.
This case is the result of an investigation conducted by the Department of Justice Office of the Inspector General.
This case was prosecuted by Assistant U.S. Attorney Julie E. Allyn.
Defendant Information:
MARK MCSHANE, 37
Owatonna, Minn.
Convicted:
- Sexual abuse of a ward, 1 count
Sentenced:
- 14 months in prison
- Five years of supervised release
# # #
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Folsom Man Sentenced to over Three and A Half Years for Investment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Jason E. Mininger, 50, of Folsom, CA, was sentenced today by United States District Judge Troy L. Nunley to 46 months in prison and ordered to pay $917,714 in restitution to the victims of the fraud, United States Attorney McGregor W. Scott announced.
According to court documents, Mininger was an investment broker and advisor in Folsom. Beginning in January 2014, and continuing until May 2017, Mininger misrepresented to his clients that he needed to use their previously invested funds as part of a new series of investments to be made or managed by Mininger. In truth, Mininger, after depositing the clients’ funds into his own bank account, used the investors’ money on his personal expenses. Mininger caused at least $917,714 in losses to his clients. Mininger also created false investment account statements and used a sham corporation to conceal his embezzlement of his clients’ funds.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Services-Criminal Investigations. Assistant United States Attorney Todd A. Pickles prosecuted the case.
Firing Nine Shots at an Occupied Building Leads to More Than Two Years in Federal PrisonRead the Press Release
An unlawful user of cocaine and marijuana who unlawfully possessed a loaded handgun he used to shoot at a club in Dubuque was sentenced today to more than two years in federal prison.
Ricardo Sanchez, age 33, from for Forest City, Illinois, received the prison term after a May 15, 2018, guilty plea to one count of possession of a firearm by an unlawful user of controlled substances.
Evidence at a prior detention hearing and information at the sentencing hearing showed that in the early morning hours of November 27, 2017, Sanchez arrived at a club in downtown Dubuque. After entering the club, Sanchez got into an argument with the club owner. He then left the club and returned to his van. Sanchez is then seen on traffic camera video retrieving something from the van. Sanchez returned to outside the club and fired a handgun towards the building multiple times, destroying the front window of the club. There were four people inside the club at the time. Police later recovered nine spent 9mm shell casings from the area of the shooting. After firing the handgun, Sanchez returned to his car and drove from Dubuque into Wisconsin and eventually Illinois. He was arrested later on November 27 in Galena, Illinois. Police recovered the 9mm pistol from along the road outside of Galena.
Sanchez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Sanchez was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sanchez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the Galena Police Department, and the Jo Daviess County Sheriff’s Office.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1003.
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Federal and state prosecutors join the Indiana State Board of Accounts to hold public officials accountableRead the Press Release
15 individuals charged with over $1 million in losses
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today a large-scale initiative bringing federal and state corruption-related charges against 15 individuals working in public service and governmental positions. “Operation Public Accountability” partnered the State Board of Accounts with the FBI, Indiana State Police, county sheriffs, the U.S. Attorney’s Office, and state and local prosecutors filing charges against local fire department officials, school employees and various municipal and county employees from around the state.
“Public officials work for the people not the other way around,” said Minkler. “When the trust we give them is shattered and public officials line their pockets with taxpayer dollars, they should expect the scrutiny of state and federal law enforcement. All citizens deserve better from their public officials and this office intends to hold them accountable.”
The State Board of Accounts is responsible for ensuring financial accountability of state and local governments in their handling and reporting of public funds. This is done by performing periodic financial audits and conducting special investigations based on concerns discovered during regular audits, referrals from law enforcement agencies, reports of misappropriation from local officials, and credible complaints from citizens. In each of the cases highlighted today, the State Board of Accounts collaborated with law enforcement and prosecutors to perform audit procedures to verify misappropriation concerns and assist in gathering evidence to support prosecutions.
Federal cases include:
Kellie Cline, 35, Greenwood, served as the Extra-Curricular Activity (ECA) Treasurer at Greenwood Middle School. She is alleged to have stolen approximately $50,000 from the school’s extra-curricular account.
Sami Dillon, 38, Crawfordsville, served as the Clerk-Treasurer of Cayuga, in Vermillion County and is alleged to have stolen approximately $44,000 by not depositing utility receipts.
Clint Madden, 51, Columbus, served as the Wayne Township Trustee and the Jonesville Volunteer Rural Fire Department Treasurer, in Bartholomew County. He is alleged to have misappropriated over $100,000 from the township and the fire department.
Mathew Mathis, 47, Columbus, served as the Treasurer of the Hope Volunteer Fire Department in Bartholomew County and is alleged to have stolen over $48,000 from the fire department.
Norman Burgess, 44, Danville, served as the Treasurer of the Wayne Township Fire Department in Hamilton County and is alleged to have stolen approximately $140,000 from the fire department.
State cases include:
Angela White, 44, Indianapolis, served as the ECA Treasurer for Robey Elementary School in Wayne Township, in Marion County. She is alleged to have stolen approximately $10,000 from the school. Charges are pending with the Marion County Prosecutors Office.
Rachel Bentz, 44, Portland, served as the Jay County Sheriff’s Department jail matron. She is alleged to have stolen approximately $9,000 by not depositing inmate trustee receipts. This case is pending with the Jay County Prosecutor’s Office.
Dallas Davis, 56, Russellville, served as the Clerk-Treasurer for the Town of Russellville, and is alleged to have stolen approximately $7,600 by not properly depositing utility receipts. This case is pending with the Putnam County Prosecutor’s Office.
David Buzzard, 50, Columbus, served as the trustee for the Rock Creek Township Trustee in Bartholomew County. He is alleged to have overpaid himself and his spouse approximately $27,000. This case is pending in Bartholomew County with a special prosecutor.
Jacqueline Fitzgerald, 54, and Monica Durrett, 56, worked at the Indianapolis Local Public Bond Bank and are alleged to have stolen approximately $400,000. This case is pending with the Marion County Prosecutor’s Office.
Nicole DeMunck, 35, Michigan City, served as the AK Smith Center Treasurer in the Michigan City School System. She is alleged to have stolen approximately $13,000. This case is pending with the LaPorte County Prosecutor’s Office.
Nichole Lowry, 47, Kewanna, served as the Pulaski County EMS Director. She is alleged to have stolen over $12,000 in training funds. This case is pending with the Pulaski County Prosecutor’s Office.
Cheryl Pruitt 50, Gary, served as the former Gary Schools Superintendent, is alleged to have received a $1,256.75 “reimbursement” for funds that she never spent.
Donald G. Minnick, 64, Gosport, served as an Owen County Commissioner. He improperly sold a vehicle to the county with a loss of $7500. He was found guilty in Owen County.
In total, the State Board of Accounts is civilly charging the individuals listed above for repayment of more than $1 million based on the misappropriations identified in these cases.
“These cases address core local government functions that impact the quality of life for residents of these communities - from public safety to after school activities to utility services – and erode public confidence in those trusted with public funds,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “These charges also demonstrate the strength of collaboration with our federal, state and local partners to mitigate the problem of corrupt officials across the state and the impact their greed has on their communities.”
“In recent years, the Board of Accounts has emphasized the importance of effective internal controls that detect and mitigate fraud risks. The vast majority of local units of government have enhanced their procedures to incorporate stronger internal controls,” said Paul Joyce, State Examiner. “Some officials and employees, however, still take advantage of system gaps and succumb to the temptation to use public funds for personal gain. We take those fraud cases seriously. These cases are good illustrations of the importance of our collaboration with law enforcement and prosecutors to hold these individuals accountable for violating the public trust.”
Indiana State Police Supt. Doug Carter said, “To say the least, it’s disheartening when public officials violate the public trust, which is why it is important for the public to know that the FBI, along with the State Board of Accounts and state police detectives worked together building prosecutable cases to hold these public officials accountable for their alleged criminal acts.” Carter concluded, “We appreciate the aggressive manner United States Attorney Minkler has moved forward to prosecute these cases and help restore public faith in their local government officials.”
Assistant United States Attorney Tiffany J. Preston is prosecuting all of the federal cases.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
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Federal Bribery Charges Added to List of Crimes Pending Against Oakland Resident Wing Wo MaRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco filed a Third Superseding indictment today adding bribery to the list of charges pending against Wing Wo Ma, a/k/a Mark Ma, a/k/a Fat Mark, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The new indictment amends drug distribution charges originally brought October 21, 2015, and conspiracy and murder charges filed April 6, 2017.
The third superseding indictment realleges charges brought in the April 6, 2017, superseding indictment that Ma, 52, of Oakland, was involved in a conspiracy to distribute marijuana between January and October of 2013. During the same period, Ma allegedly possessed a firearm in furtherance of the drug conspiracy and used a firearm to cause the death of two people: Jim Tat Kong and Cindy Bao Feng Che. Ma has been charged with one count each of conspiracy to cultivate and distribute and to possess with intent to distribute marijuana, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(B); use of a firearm causing murder, in violation of 18 U.S.C. § 924(j); and use of a firearm during and relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A).
Today’s third superseding indictment adds conspiracy to commit bribery allegations to the charges previously pending against Ma. Specifically, Ma bribed an Alameda County District Attorney’s Office Investigator to protect Ma from prosecution and investigation by law enforcement agencies. As alleged, Ma gave things of value to the now former investigator, including airfare for multiple trips to Las Vegas, free accommodation at high-end suites and hotel rooms at Las Vegas casinos, music concert tickets, and use of a new Mercedes Benz. In addition, Ma told criminal associates that the investigator would be able to protect them from investigations conducted by law enforcement agencies, given Ma’s relationship with the investigator. Ma also collected money from criminal associates for the purpose of bribing the investigator and represented to criminal associates that the investigator was an investor in Ma’s fraudulent investment projects. Furthermore, Ma used the investigator’s name and reputation to attract investors to his own fraudulent schemes.
The indictment charges Ma with one count of conspiracy to commit honest services fraud and bribery, in violation of 18 U.S.C. §§ 371, 666, 1343, and 1346.
All indictments merely allege that crimes have been committed, and all defendants, including Ma, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Ma faces a maximum statutory sentences as follows:
- Conspiracy to cultivate and distribute and to possess with intent to distribute marijuana: Maximum term of forty years imprisonment; maximum fine of $5,00,000; at least four years, but up to lifetime, supervised release. (Mandatory minimum prison term of 5 years.)
- Use of Firearm Causing Murder: maximum lifetime imprisonment, maximum fine of $250,000, maximum three years of supervised release.
- Use of a firearm during and in relation to a drug trafficking crime: maximum life imprisonment, maximum fine of $250,000, maximum five years of supervised release. (Minimum consecutive penalties include the following: 5 years consecutive mandatory minimum, 7 years if the firearm is brandished, and 10 years if the firearm is discharged.)
- Conspiracy to Commit Bribery: maximum penalty of five years imprisonment, maximum $250,000 fine, maximum three years of supervised release.
However, any sentence following a conviction of Ma would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Joseph Alioto and William Frentzen are prosecuting these cases with the assistance of Adria Trigovcich and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Fall River Mayor Arrested for Scheme to Defraud InvestorsRead the Press Release
BOSTON – Jasiel F. Correia II, the Mayor of Fall River, was arrested this morning and charged with wire and tax fraud in connection with a multi-year investment fraud scheme.
Correia, 26, was indicted on nine counts of wire fraud and four counts of filing false tax returns. Correia was arrested this morning and will appear in federal court in Boston this afternoon.
As alleged in the indictment, in 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. In approximately January 2013, Correia began seeking investors who were willing to provide investment money for SnoOwl in return for equity in the company. In order to incentivize potential investors, Correia falsely represented that he was a successful tech entrepreneur who previously sold another app for a large profit, that investment funds would be used to develop the app, and that he would not take a salary or otherwise draw compensation from SnoOwl.
According to the indictment, seven individuals invested a total of $363,690 in SnoOwl. However, rather than using the investment funds to develop the app as Corria certified in signed agreements with investors, it is alleged that Correia used at least $231,447 – approximately 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, the indictment alleges that Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos, and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.
As alleged in the indictment, Correia concealed the theft of funds from investors by providing false positive updates on SnoOwl’s status and refusing to provide the company’s financial records, which would have revealed his fraud. In addition, Correia concealed his ill-gotten gains from the IRS when filing his 2013 and 2014 individual tax returns.
In the spring/summer of 2015, Correia announced his candidacy for mayor of Fall River. Notwithstanding the facts that he had fraudulently taken hundreds of thousands of dollars of investor money and that SnoOwl was floundering, Correia touted his stewardship of SnoOwl to Fall River voters as one of his primary qualifications for mayor.
By May 2017, Correia was aware that SnoOwl was the subject of a federal investigation, and instructed an accountant to file amended 2013 and 2014 personal tax returns. Because the accountant relied on false information from Correia, the amended returns classified SnowOwl as a sole proprietorship, instead of a partnership, a critical distinction for tax purposes. As a result, Correia was not assessed any tax liability for any of the investor money that he took for himself, and he actually received a refund from the IRS in June 2017.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of up to twice the loss involved and restitution. The charge of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General, made the announcement. Assistant U.S. Attorneys Zachary Hafer, Chief of Lelling’s Criminal Division, and David Tobin, of Lelling’s Major Crimes Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.