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Thursday 30 August 2018
Former City of Detroit Employee Sentenced to Prison for Embezzling $265,000 from the CityRead the Press Release
A former City of Detroit employee, Masharn Franklin, 53, of Detroit, was sentenced to 18 months in prison, followed by 3 years supervised release, and ordered to pay $265,573 in restitution to the city of Detroit based on her conviction for embezzlement, United States Attorney Matthew Schneider announced today.
Franklin was employed by the City of Detroit in its audit and payroll department in 2016 and 2017. During that time, Franklin was responsible for overseeing the execution of garnishment orders for the salaries of Detroit city employees. While so employed, Franklin concocted a scheme to embezzle hundreds of thousands of dollars from the city by causing money to be “garnished” from city funds in the names of Franklin’s relatives. Once the city had issued checks in the names of Franklin’s relatives in the amounts dictated by Franklin, Franklin then deposited the checks into bank accounts held jointly by her and her relatives. As a result of her embezzlement scheme, Franklin stole approximately $265,573 from the City of Detroit. The FBI has already seized $58,000 in criminal proceeds from Franklin’s bank accounts.
Besides being sentenced to prison, the Court ordered Franklin to pay restitution to the City of Detroit for the additional $207,000 that she has yet to repay.
Schneider was joined in the announcement by Timothy Slater, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation.
United States Attorney Schneider said, “Detroit employees who embezzle money from the city steal from all citizens of the city, depriving them of needed public services and projects. The Court’s sentence today vindicates the rule of law and demonstrates that such conduct will not be tolerated as the city continues its comeback.”
“Make no mistake, city employees who exploit their positions of trust in order to enrich themselves at the expense of the taxpayers will be held accountable”, said Timothy R. Slater, Special Agent in Charge, Detroit FBI.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.
Florida Man Pleads Guilty in Case Targeting Opioid Trafficking on the DarknetRead the Press Release
PITTSBURGH, PA. - A Florida resident pleaded guilty in federal court to charges of conspiracy to distribute 40 grams or more of fentanyl and a quantity of carfentanil, as well as distribution of quantities of methamphetamine, carfentanil, and ecstasy, United States Attorney Scott W. Brady announced today.
Robert M. Gilner, a/k/a Gman19635, 30, of St. Petersburg, FL, pleaded guilty to four counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Gilner conspired with others, in the Western District of Pennsylvania and elsewhere, to distribute 40 grams or more of fentanyl and a quantity of carfentanil. Additionally, on March 10, 2017, he distributed a quantity of methamphetamine and, on March 22, 2017, he distributed a quantity of carfentanil and a quantity of ecstasy to the Western District of Pennsylvania.
Judge Bissoon scheduled sentencing for January 17, 2019 at 10 a.m. The law provides for a total sentence of five years and up to life in prison, a fine of $13,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
"Gman19635 is the fifth defendant investigated and charged in Western Pennsylvania since Attorney General Jeff Sessions announced the creation of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative in Pittsburgh earlier this year," said U.S. Attorney Brady. "Through our office’s expertise in opioids and cybercrime, we are aggressively targeting drug trafficking of fentanyl and other opioids on the Darknet."
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and U.S. Immigration and Customs enforcement/Homeland Security Investigations as part of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative.
Federal jury finds Abbeville man guilty of marijuana shipping schemeRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a federal jury found an Abbeville man guilty Wednesday of shipping marijuana to himself.
Jabori Huntsberry, 36, of Abbeville, Louisiana, was found guilty of one count of conspiracy to possess with intent to distribute marijuana, one count of unlawful use of a communication facility, one count of possession with intent to distribute marijuana, and one count of possession of a firearm by a convicted felon. United States District Judge Elizabeth E. Foote presided over the trial, which started Monday and ended Wednesday. The jury returned a guilty verdict after deliberating for approximately one hour and 45 minutes.
Evidence admitted at trial revealed that the defendant conspired to receive packages of marijuana from a California source using U.S. mail from October 2011 to February 2014. United States Postal Inspectors discovered that, at multiple times and using different addresses and names, Huntsberry shipped marijuana to himself. He had money transferred to a California contact before each package was sent. Law enforcement agents conducted a controlled delivery of one of the packages on February 14, 2014, to a residence next to Huntsberry’s home in Abbeville. After an occupant took the package, agents searched both homes. A search of Huntsberry’s home produced a notebook documenting drug activity, U.S. Postal Service mail labels, money transfer receipts, a Ruger model P-89, 9 mm semiautomatic pistol, and a Romarm Model CUGIR, 7.62X39 semiautomatic rifle.
The defendant shipped approximately 200 kilograms of marijuana to himself and electronically transferred nearly $300,000 to the source in California during the conspiracy.
The defendant faces 10 years to life in prison, at least five years of supervised release and a $10 million fine. Sentencing has been set for December 6, 2018.
The ATF, U.S. Postal Inspection Service and Vermilion Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and John Luke Walker are prosecuting the case.
Federal Grand Jury Indicts St. Clair County Trio as Operators of Moody Pill MillRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Springville couple and a Moody physician on charges they operated a pill mill in St. Clair County for four years, announced U.S. Attorney Jay E. Town, Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Thomas J. Holloman.
A 20-count indictment filed in U.S. District Court charges CINDY LOUISE HYCHE DUNN, 53, her husband, THOMAS MASON DUNN, 56, and Dr. JOHN LADD BUCKINGHAM, 85, in a conspiracy to operate a clinic in Moody for the main purpose of illegally distributing or dispensing controlled substances outside the usual course of professional practice and not for a legitimate medical purpose. The object of the conspiracy was for the participants to enrich themselves, according to the indictment. The group ran Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM) from January 2012 through December 2015.
“Personal greed motivates the people who operate illegal pain clinics, mass-prescribing opioids without medical justification and with no regard to the larger pain they bring to individuals, families and communities,” Town said. “The Department of Justice is determined to stamp out the operation of illegal pain clinics by all legal means as part of the fight against opioid abuse, and the Northern District of Alabama is fully committed to the fight. As one of 12 districts across the county participating in the department’s pilot Opioid Fraud and Abuse Detection Unit, we are taking advantage of data collection and analysis and joining together federal, state and local law enforcement to investigate and shut down illegal pill mills for good.”
“The abuse of prescription drugs is a serious problem in our communities – leading to addiction, shattered lives, and even death,” Hamilton said. “For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally obtain and distribute these potentially dangerous drugs. We hope that these indictments serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause.”
“This was a classic example of a pill mill and these individuals will be held accountable,” Holloman said. “We will continue to work with our law enforcement partners in tackling the opioid epidemic head on in the state of Alabama. In following the money, you can trace the drug proceeds to the beneficiaries and bring the entire conspiracy ring to justice.”
The indictment includes 16 counts charging Cindy Dunn and Buckingham with unlawfully dispensing a controlled substance, all containing opioids. As part of the conspiracy and in disregard for usual standards of professional medical practice, Cindy Dunn, Buckingham and other co-conspirators prescribed more than 13,500 methadone-based pills to one patient and more than 8,200 oxycodone-based pills to another patient, according to the indictment. They also prescribed more than 7,900 oxycodone-based and methadone-based pills, collectively, to a single patient, and 7,700 oxycodone-based and methadone-based pills, collectively, to a different patient, the indictment says.
Cindy Dunn, owner and president of CDPM, operated the clinic, including hiring and directing physicians and staff and making financial decisions. She mainly hired relatives as clerical staff and, for the vast majority of the clinic’s operation, did not employ formally trained nurses or medical assistants, according to the indictment. Cindy Dunn had no known medical education of her own.
Thomas Dunn performed various administrative and financial duties for CDPM and received prescriptions for opioids from the clinic, according to the indictment. Buckingham was a licensed physician in Alabama, but was not a certified pain management specialist.
CDPM typically charged a $25 patient application fee, a $200-$300 clinic visit fee for new patients, then a $90-$125 monthly fee for follow-up visits, according to the indictment. The clinic did not accept insurance, requiring cash or credit payments. Patient examinations were “infrequent, and were typically minimal and cursory,” and Cindy Dunn and CDPM staff often issued controlled substance prescriptions that were pre-signed by Buckingham or other physician co-conspirators, according to the indictment.
The indictment charges Cindy Dunn and Buckingham with maintaining a drug-involved premises, and charges all three defendants with participating in a money-laundering conspiracy by opening bank accounts for the clinic and conducting financial transactions with illegally obtained funds in order to keep the illicit business operating.
The final count of the indictment charges Cindy Dunn with engaging in a monetary transaction involving criminally derived property valued at more than $10,000. The charge cites a $25,000 deposit into a CDPM account at Regions Bank with money from a clinic account at Metro Bank.
Both the conspiracy to distribute controlled substances outside the usual course of professional practice charge and each substantive count of illegally distributing controlled substances carry a maximum penalty of 20 years in prison and a $1 million fine. The charge of maintaining a drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine. Money-laundering conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine. Engaging in monetary transactions involving criminal proceeds carries a maximum penalty of 10 years in prison and a $250,000 fine.
DEA and IRS-CI investigated the case, which Assistant U.S. Attorney Mohammad Khatib is prosecuting.
Federal Grand Jury Indicts Separate Fraud Conspiracies Targeting Sam’s ClubsRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted two Tampa men and a Georgia trio in similar fraud conspiracies targeting Sam’s Club membership stores, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
Both cases involve counterfeit access devices – debit or credit cards – used at a wide range of Sam’s Club locations to purchase goods or pre-paid gift cards. The Georgia defendants are charged with using counterfeited cards at Sam’s Clubs trailing from Indiana to Alabama, with excursions to Las Vegas and Oklahoma.
“The defendants in both of these cases are facing federal charges because of the collaborative work of the Secret Service Financial Crimes Task Force, Regions Bank and Walmart Global Investigations,” Town said. “We appreciate their work and recognition of the fact that when businesses suffer financial loss from criminal activity, oftentimes the community will incur higher costs and fees,” Town said.
“These indictments will serve as a strong deterrent to criminals who travel across state lines to commit financial crimes in the Northern District of Alabama,” Williams said.
A three-count federal indictment charges SWIFT OGDEN SPEER, 48, and EMERALD SANDERS-JACKSON, 28, both of Atlanta, and CHAKERA DENISE RICHARDSON, 27, of Austell, Ga., with conspiring between January and March in Jefferson County to traffic in counterfeit access devices by using them to obtain money, goods and services. The indictment also charges them with separate counts of using a counterfeit device and possessing device-making equipment on March 16 in Jefferson County.
As part of the conspiracy, Speer and Sanders-Jackson used four different Sam’s Club membership accounts as they visited stores in six states between Jan. 18 and March 16, buying goods and pre-paid gift cards with counterfeit credit and debit cards. They hit stores in Bloomington, Ind., Lexington and Bowling Green, Ky., Nashville, Memphis and Chattanooga, Tenn., and Huntsville and Florence, Ala., before showing up in a Las Vegas store on Feb. 26, according to the indictment. Speer and Sanders-Jackson next made fraudulent purchases at Sam’s Clubs in Homewood and Trussville, Ala., and in Edmond, Okla., before returning to stores in Trussville and Hoover, Ala., on March 16. According to the indictment, Richardson drove Speer and Sanders-Jackson to the Hoover and Trussville stores on March 16.
A separate three-count indictment charges PARALTA CHACON, 27, and LAZARO MARTINEZ QUINTANA, 24, both of Tampa, Fla., with conspiring between May and June in Jefferson County to traffic in counterfeit access devices by using them to obtain money, goods and services. The indictment also charges them with separate counts of using the counterfeit devices to make purchases and with possessing device-making equipment on June 21.
As part of the conspiracy, Chacon and Quintana created a Sam’s Club account in a name different from theirs and used counterfeit cards to make purchases on that account at stores in Columbus, Ga., Auburn, Homewood, Hoover and Trussville, Ala., and in Tampa.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty both for making purchases with the counterfeit access devises and for possessing device-making equipment is 10 years in prison and a $250,000 fine.
The Secret Service Financial Crimes Task Force investigated the cases in conjunction with Regions Bank and Walmart Global Investigations. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the cases.
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Ex-Director of Facilities for the Municipality of Toa Baja Pleads Guilty to Bribery and Conspiracy to DefraudRead the Press Release
SAN JUAN, P.R. – On August 30, 2018, Edgar Arroyo-Amezquita pleaded guilty before Magistrate Judge Silvia Carreño-Coll to bribery and conspiracy to obtain property by fraud from a program receiving federal funds, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
As a part of the guilty plea, Arroyo admitted that he served as Director of Facilities for the Municipality of Toa Baja during the time of the conspiracy, which was from May 2011 through May 2013. In his position as Director of Facilities, Arroyo conspired to defraud the municipality and accepted multiple bribes, paid in cash and totaling $39,999, in exchange for causing contracts to be awarded and payments to be made by the Municipality of Toa Baja to enrich co-defendant Luis Serrano Perdigon.
As a part of the conspiracy, Arroyo personally submitted fraudulent quote documentation to the purchasing office of the Municipality of Toa Baja using a fictitious company named Professional Sales & Service. In doing so, Arroyo utilized, without consent or legal authority, the name and signature of a real person on the fraudulent quote documentation submitted to the municipality. Arroyo then caused checks to be issued by the municipality to Professional Sales & Service, which were deposited into a bank account in the name of ALS Electronic Service, a company alleged to be controlled by co-defendant Luis Serrano Perdigon.
Sentencing has been scheduled before the Honorable Carmen C. Cerezo on December 5, 2018. Arroyo and the United States have agreed to recommend a sentence of imprisonment for a term of 30 months and restitution in the full amount of $39,999. Arroyo faces a maximum sentence of five years of imprisonment for the conspiracy to obtain property by fraud from a program receiving federal funds and a maximum sentence of 10 years imprisonment for bribery concerning programs receiving federal funds. The case is being prosecuted by Assistant United States Attorney Seth Erbe and was investigated by the Federal Bureau of Investigation.
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El Salvadoran National Pleads Guilty to Transporting Illegal AliensRead the Press Release
U.S. Attorney Duane A. Evans announced that FRANCISCO ARENIVAR-CASTILLO, age 37, a citizen of El Salvador, pled guilty yesterday to a one-count bill of information with transporting aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(ii).
According to the bill of information, on March 8, 2018, ICE agents intercepted FRANCISCO ARENIVAR-CASTILLO while he was driving an illegal alien from Houston, Texas to Miami, Florida through St. Tammany Parish. FRANCISCO ARENIVAR-CASTILLO knew his passenger was illegally present in the United States, but nevertheless agreed to transport the individual to a work-site in Miami.
FRANCISCO ARENIVAR-CASTILLO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, up to three years of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for November 14, 2018.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Eagle Butte Woman Charged with TheftRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from an Indian Tribal Organization.
Memoree Ducheneaux, age 27, was indicted on August 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 24, 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 between November 2016 and August 2017, Ducheneaux did willfully and knowingly steal, embezzle and convert to her own use, goods and assets in an amount greater than $1,000 belonging to the Lakota Thrifty Mart, in Eagle Butte, which is an Indian tribal organization.
The charge is merely an accusation and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Ducheneaux was released on bond pending trial. A trial date has not been set.
The case was brought as part of The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Eastern District of Michigan Announces Record-Setting Hospital Drug Diversion Civil Penalty Settlement with the University of Michigan Health SystemRead the Press Release
The United States Attorney’s Office for the Eastern District of Michigan announced today that the University of Michigan Health System (UMHS) has agreed to pay the United States $4.3 million as part of a settlement resolving allegations that UMHS violated certain provisions of the Controlled Substances Act (CSA), 21 U.S.C. §§ 801-904. The settlement, which is civil in nature, resulted from a years-long Drug Enforcement Administration (DEA) investigation of UMHS’s handling of controlled substances. It is the nation’s largest settlement of its kind involving allegations of drug diversion at a hospital.
DEA began its investigation after two tragic incidents occurred in December 2013 involving two UMHS employees – a nurse and an anesthesiology resident. Both overdosed on opioids, including fentanyl, at a UMHS facility. The nurse’s overdose was fatal.
Following its investigation, DEA concluded that a number of the hospital’s practices concerning controlled substances were in violation of the CSA. For example, UMHS failed to secure DEA registrations for 15 off-site ambulatory care locations throughout Ann Arbor and Southeast Michigan, each of which received narcotics from the main hospital’s pharmacy and dispensed them to patients. The failure to secure DEA registrations rendered unlawful all of the narcotics distributions from the main hospital to the unregistered off-site locations, as well as the unregistered locations’ subsequent dispensing of these narcotics to their patients. DEA also determined that UMHS committed a number of significant recordkeeping violations, some of which included failing to maintain complete and accurate records of certain controlled substances that it received, sold, delivered or otherwise disposed of, and failing to notify DEA in a timely manner regarding certain instances of thefts or significant losses of controlled substances. DEA concluded that UMHS’ deficient recordkeeping negatively impacted UMHS’ ability to guard against the theft and diversion of controlled substances.
“Every professional and every institution throughout our health care system has a responsibility to comply with the laws governing the regulation of controlled substances,” said United States Attorney Matthew Schneider. “Even the University of Michigan Health System, which does great work every single day, has an obligation to its patients, to its employees, and to the public to responsibly control its drug inventory.”
DEA Special Agent in Charge Timothy Plancon stated, “Through rigorous investigation, DEA Diversion Investigators uncovered system-wide violations within the University of Michigan Health System, highlighting the fact that anything short of full compliance can have grave public health consequences. This case should alert all health systems – large or small – that complying with the Controlled Substance Act is not only their legal responsibility but also a matter of public trust.”
As part of the settlement, UMHS has entered into a three-year Memorandum of Agreement with DEA, which prescribes the hospital’s drug-handling responsibilities going forward. That Memorandum also recognizes the substantial steps that UMHS has already taken to address deficiencies in its handling of controlled substances.
A main objective of the CSA is controlling illegitimate traffic in controlled substances. To prevent the diversion of controlled substances, the CSA regulates persons, companies and other entities that manufacture, distribute and dispense controlled substances. The government’s investigation and resolution of this matter illustrates the government’s emphasis on combating the prescription opioid crisis.
This matter was investigated by Diversion Investigator Brian Bishop from DEA’s Detroit Field Division and Assistant U.S. Attorneys Peter Caplan and Caroline Burgunder from the United States Attorney’s Office for the Eastern District of Michigan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Downingtown Man Convicted of Exploiting USDOT Disadvantaged Business ProgramRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Stamatios “Tom” Kousisis, 60, of Downingtown, PA, and his employer Alpha Paining and Construction, Inc., were found guilty today by a jury of one count of conspiracy to commit wire fraud, three counts of wire fraud, and ten counts of making false statements. He was acquitted of two counts of wire fraud. The illegal scheme involved exploiting the U.S. Department of Transportation Disadvantaged Business Enterprise (“DBE”) Program, which is a program designed to provide small businesses owned and controlled by economically disadvantaged individuals with a fair opportunity to compete for federally funded transportation contracts.
A co-defendant, Emanouel “Manny” Frangos, 41, of Campbell, OH was acquitted of five counts of wire fraud, and a jury was unable to reach a verdict on the remaining 11 counts against him regarding conspiracy to commit wire fraud and making false statements.
Kousisis was the Project Manager of Alpha Painting & Construction Co., Inc., of Baltimore MD, and Frangos was an owner of Liberty Maintenance, Inc., of Youngstown, OH, which were both bridge painting contractors, although neither was a certified DBE in Pennsylvania. The scheme involved Alpha-Liberty JV, a joint venture between Liberty Maintenance and Alpha Painting, and Markias, Inc., a now-defunct certified DBE.
Kousisis concocted a scheme to obtain and keep two Pennsylvania Department of Transportation (“PennDOT”) contracts to rehabilitate two bridges in the Philadelphia area, the Girard Point Bridge and the 30th Street Station Bridge. These contracts required Kousisis to use a qualified DBE to provide supplies for those projects. Operating through a joint venture between Liberty Maintenance and Alpha Painting, Kousisis employed a pass-through company, Markias, to give the appearance that they had contracted with a legitimate minority “regular dealer” when, in reality, Markias performed no legitimate or economically useful function.
Without any involvement from the purported DBE “regular dealer,” Kousisis and his employees directly ordered supplies from third-party vendors, arranged for those vendors to deliver those supplies to the defendant’s job-sites, and directly negotiated the prices and other terms of those supplies with the third-party vendors. To falsely give the appearance that Markias was performing an economically useful function, Kousisis arranged for the true suppliers to send invoices to Markias, which marked the invoices up by 2.25% and forwarded them to the Kousisis. In turn, Kousisis issued two sets of checks to Markias: one to pay Markias’ fee for acting as a bogus pass-through, and the other for Markias to forward to the true suppliers to pay for the goods. Kousisis also used Markias as a vehicle through which to funnel out-of-state expenses to give the appearance that those expenses had been incurred in connection with the two Philadelphia-area bridge projects. Kousisis caused a total of approximately $4.5 million of false claims for DBE credits to be submitted to PennDOT, based on Markias’ fraudulent invoices.
Joyce Abrams, the owner of Markias, has previously pleaded guilty to conspiring to defraud PennDOT and the U.S. Department of Transportation with respect to this scheme.
“The purpose of the DBE program is noted in its title: to help disadvantaged businesses in Pennsylvania,” said U.S. Attorney McSwain. “When people like Kousisis undermine the DBE rules by cheating the system, not only is it a crime, but also it serves to harm certified DBE owners who are playing by the rules and who should be benefitting from the program. Our Office will continue to hold individuals and businesses accountable when they choose to circumvent the law for their own gain.”
“Today’s convictions demonstrate how DBE fraud harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts,” said Douglas Shoemaker, Regional Special Agent-in-Charge of the U.S. Department of Transportation (DOT) Office of Inspector General. “Our special agents will continue to work with Federal, State, and local law enforcement and prosecutorial partners to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs throughout Pennsylvania and elsewhere.”
Kousisis faces a statutory maximum sentence of 130 years in prison, a possible fine, supervised release, and a $1400 special assessment. Sentencing has not yet been scheduled by the Honorable Wendy Beetlestone.
The case was investigated by the U.S. Department of Transportation Office of Inspector General, the FBI, the Department of Labor Office of Inspector General, and Amtrak Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Paul Shapiro and David Troyer.
Detroit Man Sentenced to 7 Years in Prison for Involvement in Easter ShootingRead the Press Release
A Detroit man was sentenced to 7 years (84 months) in federal prison on the charge of being a felon in possession of a firearm, announced United States Attorney Matthew Schneider.
Vincent Samuel Hill, Jr., was sentenced yesterday before United States District Judge Arthur J. Tarnow in Detroit, Michigan.
Hill pleaded guilty on July 9, 2018, to one count of being a felon in possession of a firearm. Hill had illegally possessed a stolen firearm on Easter Day when he brandished the firearm at Dane’s Social Club on W. McNichols. Detroit Police Department Officers responded to a shooting at Dane’s Social Club on Easter Day where Hill was shot multiple times. Initial reports were that Hill was shot in the crossfire when with his girlfriend, who rushed him to the hospital. Upon further investigation, Detroit Police Officers learned that those reports were not true. Surveillance video showed that Hill was shot only after brandishing a firearm with a laser sight into the crowd. Detroit Police Department executed a search warrant of Hill’s home following their investigation and recovered the firearm with the laser sight. Hill was arrested at that time. Hill also has a pending domestic violence case in Wayne County and a federal supervised release violation in federal court.
“Keeping guns out of the hands of felons is a priority of our office,” stated United States Attorney Schneider. “Felons and violent offenders should take notice that they will go to prison if they illegally possession firearms.”
“Today’s sentence is another example of ATF’s relentless effort to reduce violent crime in the City of Detroit and we will continue to work with our law enforcement partners to target dangerous individuals,” Special Agent in Charge James Deir said.
Hill’s case signals the commitment by ATF and the United States Attorney’s Office to take violent individuals off the streets. This case was a joint investigation by the Detroit Police Department, Wayne County Prosecutor’s Office, special agents of the ATF and prosecuted by Assistant United States Attorney Mitra Jafary-Hariri in conjunction with the Project Safe Neighborhood initiative.
Delaware County Convicted Murderer, Opioid Dealer, and Armed Robber Sentenced to Life in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that his office secured a life sentence today in a case involving a Delaware County man convicted of murder through the use of a firearm and conspiracy to distribute oxycodone. Michael Vandergrift, 31, of Chester, was sentenced by U.S. District Judge Gerald J. Pappert to a life sentence for murder, and an additional 240 months for the drug conspiracy conviction. In December 2017, Vandergrift and Anthony Vetri, 30, of Essington, were convicted after trial of conspiracy to distribute oxycodone from 2008 until June 4, 2013. During the conspiracy, Vetri illegally obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area. Vetri then supplied Vandergrift with oxycodone, and both distributed the drugs throughout Delaware and Philadelphia Counties. During the course of the conspiracy, over 400,000 oxycodone tablets were distributed by Vetri, Vandergrift, and the other conspirators, earning over a million dollars in drug proceeds.
During the drug conspiracy, Patel illegally provided oxycodone to others, including his business partner, Gbolahan Olabode. Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a competitor to boost Vetri and Vandergrift’s oxycodone supply from Patel. Vetri and Vandergrift ultimately decided to murder Olabode, and Vandergrift recruited Michael Mangold and Allen Carter to assist. On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home. When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he carried groceries into his home. The assailants struck the victim 13 times in his head and body, killing him.
Patel, Mangold, and Carter all previously pled guilty to charges for their respective involvement in drug distribution, the murder of Olabode, and other offenses. In earlier proceedings, Judge Pappert sentenced Patel to a term of 15 years imprisonment, Mangold to a term of 35 years imprisonment, and Vetri received a life sentence. Carter is awaiting sentencing.
Today, Vandergrift was also sentenced for his involvement in a separate crime. On April 9, 2018, Vandergrift pled guilty to committing an armed robbery of a suspected drug dealer, “R.D.” In that incident, Vandergift lured R.D. to a home in Philadelphia with a promise of a lucrative drug transaction. Once inside the residence, R.D. was struck in the head with a firearm and held at gun point as he was robbed by Vandergrift and others of approximately $20,000. As R.D. was being led away from the scene of the robbery, he fired a concealed firearm in the direction of his robbers. No one was struck by R.D.’s shots. Vandergrift’s robbery conspirators and R.D. were convicted and sentenced in earlier proceedings.
“The defendant is a danger to the community in every sense of the word,” said U.S. Attorney McSwain. “Drug trafficking is dangerous and violent, and there is no doubt that the defendant’s victims continue to struggle with opioid addiction because of his crimes. Not only did Vandergrift flood the streets with illegal drugs, but also he murdered one drug rival in cold blood and held up another in an armed robbery. We are all safer with the defendant spending the rest of his life behind bars.”
"Michael Vandergrift and his buddies were prolific pill-pushers, cashing in on our area's opioid crisis," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "To maximize their profits, they moved to minimize their competition--ambushing and brutally murdering a drug rival. There were 27 shots fired, 13 that hit, and just one motive: sheer greed."
The cases were investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer are prosecuting the case.
Cuban National Pleads Guilty to Conspiring to Steal Credit Card Numbers from Gas PumpsRead the Press Release
A Cuban national who had been residing in Miami, Florida pleaded guilty yesterday, to conspiracy to commit access device fraud, U.S. Attorney Duane A. Evans announced today. ALAYN ALVAREZ CASTRO, age 29, was arrested in December 2017 in Miami, Florida and later ordered detained pending trial in New Orleans. As part of his guilty plea today, CASTRO admitted that he agreed with others to obtain credit and debit card numbers that had been skimmed from gas pumps.
According to the factual basis filed in the case, CASTRO directed others to the location of skimmers installed in the Baton Rouge and New Orleans areas. YUSNIEL HERNANDEZ PEREZ, age 32, YADIER ALUIJAS FERNANDEZ, age 31, and HENRY DAVID MARTINEZ, age 23, have previously pleaded guilty in this case. These defendants, who are awaiting sentencing, admitted that they traveled to the Eastern District of Louisiana from Texas in July 2017. They then went to locations in Louisiana where skimmers had been previously installed, returned to Texas, and then came back to Louisiana with counterfeit access devices, which they used to make purchases as a local merchant. For his part, CASTRO further admitted that he flew to Phoenix Arizona as part of the conspiracy and sent the addresses of Houston, Texas-area gas stations to a coconspirator.
Judge Feldman set sentencing for CASTRO for November 14, 2018. At sentencing, he faces a statutory maximum sentence of five years in prison, along with monetary penalties, supervised release, and mandatory restitution.
U.S. Attorney Evans commended special agents of the United States Secret Service, as well as Jefferson Parish Sheriff’s Deputies, who investigated the case and Assistant U.S. Attorney Hayden Brockett, who is prosecuting this case.
Colombians Charged with Trafficking CocaineRead the Press Release
U.S. Attorney Duane A. Evans announced that JHON ALBEIRO PINEDA JIMENEZ, age 36, and PEDRO ANTONIO JIMENEZ, age 64, citizens of Colombia, were charged today in a two-count Indictment with conspiracy to distribute five kilograms or more of cocaine and possession with intent to distribute five kilograms or more of cocaine, while on board a vessel subject to the jurisdiction of the United States. If convicted, each defendant faces a mandatory minimum sentence of 10 years and a maximum possible penalty of life in prison for each count.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of each defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement, and the United States Coast Guard in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Cleveland men indicted for armed robberies in Cleveland Heights and Richmond HeightsRead the Press Release
Two Cleveland men were indicted in federal court for using firearms while robbing a Cleveland Heights store and attempting to rob a bank in Richmond Heights last month.
Otis Pamplin, 18, and Joseph Kyle Sanders, 19, are charged with one count of attempted bank robbery, one count of violating the Hobbs Act, and two counts of using a firearm in a crime of violence.
Pamplin, Sanders and someone identified in court documents as R.E. used a firearm on July 11 in attempting to rob the Ohio Savings Bank at 720 Richmond Road on July 11. Later that day, the three used a firearm to rob LoanMax at 13216 Cedar Road, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This case is part of Project Safe Neighborhoods, 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.
This cases is being prosecuted by Assistant U.S. Attorney Scott Zarzycki following an investigation by the FBI, Cleveland Heights Police Department and Richmond Heights Police Department.
A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clairton Woman Sentenced to Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH, PA – A resident of Clairton, Pennsylvania, has been sentenced in federal court to 12 months and one day’s imprisonment, followed by two years’ supervised release on her conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jean Hull, 52.
According to information presented to the court at the time she entered a guilty plea, Hull regularly purchased heroin from her codefendant, Skyler Carter, for further distribution, and was responsible for the distribution of between 20 and 40 grams. Hull is the seventh of the 21 defendants charged in the conspiracy to be sentenced.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chicago Man Charged with Lying to Federal Authorities After Alleged Fake Abduction ReportRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging ALEJANDRO MARIO CORTES, 45, with one count of making false statements to federal authorities after allegedly claiming he was abducted from his home in Chicago, Illinois earlier this spring. CORTES was arrested yesterday and made his initial appearance today before Magistrate Judge Jon T. Huseby in U.S. District Court in Saint Paul, Minnesota.
According to a criminal complaint, in the early morning hours of April 17, 2018, law enforcement officers responded to a report by a snowplow driver that he discovered a man near Randolph Avenue in St. Paul, Minnesota whose hands were bound and had duct tape over his mouth. Law enforcement officers located the individual, who later identified himself as CORTES.
CORTES told responding officers that he had been kidnapped from Chicago several days earlier by several unknown men. During the alleged abduction, CORTES claimed that a bag was put over his head, and he was held for several days and threatened with death. He further claimed that he was finally thrown out of a vehicle and into a snowbank after being told he would be killed if he contacted the police.
In a later meeting with FBI agents, CORTES further described his abduction, the circumstances surrounding his confinement, and details of the threats made against him and his family. CORTES claimed to have received threatening text messages, some in Spanish and some in English. These text messages made reference to CORTES’ relatives and included photos of his residence in Chicago.
During follow up interviews with CORTES, he admitted to FBI investigators that he often used false identities to avoid detection after a prior DUI arrest and was living illegally in the United States.
According to the complaint, law enforcement traced the alleged threatening text messages to Pinger, an online texting application, and determined the IP address used to create the text messages belonged to an associate of CORTES. After an interview with investigators, the associate indicated that CORTES faked his own kidnapping in ordered to be considered a crime victim so he could obtain a visa to stay in the United States and gain citizenship.
According to the complaint, CORTES asked the associate to facilitate the kidnapping, even asking the associate to allow him to stay in a storage facility with food, water, a sleeping bag and heater during his alleged abduction. To complete the abduction and kidnapping ruse, CORTES instructed the associate to place duct tape on his mouth and his wrists before dropping him off in St. Paul.
This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.
Assistant U.S. Attorney Angela Munoz-Kaphing is prosecuting the case.
Defendant Information:
ALEJANDRO MARIO CORTES, 45
Chicago, Ill.
Charged:
- False Statement or Representation Made to an Agency of the United States, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
California Woman Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Tracy Estelle Fuentez, 43, of Fresno, Calif., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
The DEA arrested Fuentez in April 2017, after seizing approximately 1.5 kilograms (3.31 pounds) of methamphetamine from her luggage during an interdiction investigation on April 27, 2017, in Albuquerque. Fuentez was indicted on May 24, 2017, and was charged with possession of methamphetamine with intent to distribute on April 27, 2017, in Bernalillo County, N.M.
During today’s proceedings, Fuentez pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Fuentez admitted possessing methamphetamine while traveling through Albuquerque on April 27, 2017, and that she intended to distribute the methamphetamine to other individuals.
At sentencing, Fuentez faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in federal prison. She remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Howard R. Thomas.
California Man Pleads Guilty to Fentanyl Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OMAR VILLARREAL, 27, of La Puente, California, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to fentanyl trafficking offenses.
According to court documents and statements made in court, on December 21, 2016, law enforcement officers stopped a tractor trailer on Route 34 in Derby. A search of the cab of the tractor trailer revealed a box that contained 25 kilograms of fentanyl. The driver of the vehicle, Erick Crespo-Escalante, was placed under arrest. The investigation revealed that Crespo-Escalante was delivering the shipment of fentanyl to a location in Waterbury.
In pleading guilty, VILLARREAL admitted that, in October 2016, he traveled from California to Connecticut for the purpose of overseeing the shipment of the narcotics to Connecticut, took up residence in Waterbury for approximately two months for the purpose of coordinating the delivery, and established a “stash” location in Waterbury to which the shipment could be delivered. After returning to California, VILLARREAL engaged in multiple phone calls with Crespo-Escalante to arrange the delivery via tractor trailer to Connecticut.
VILLARREAL pleaded guilty to one count of aiding and abetting the possession of fentanyl with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years, and one count of traveling in interstate commerce to promote an unlawful activity, an offense that carries a maximum term of imprisonment of five years.
Judge Thompson scheduled sentencing for November 28, 2018.
VILLARREAL has been detained since his arrest on May 15, 2017.
On April 4, 2017, Crespo-Escalante pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl. He awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and prosecuted by Assistant U.S. Attorney Dave Vatti.
California Man Charged with Making Violent Threats Against Boston Globe EmployeesRead the Press Release
BOSTON – A California man was arrested today and charged with making violent threats against Boston Globe employees in retaliation for the newspaper’s editorial response to political attacks on the media.
Robert D. Chain, 68, of Encino, California, is charged with one count of making threatening communications in interstate commerce. Chain will appear in federal court in Los Angeles this afternoon and be transferred to Boston at a later date.
“In the past few months, this office has charged people with threatening to bomb a minority commencement ceremony at Harvard, threatening to shoot people at a Second Amendment rally, offering money to anyone who kills a federal agent, and mailing white powder and threatening notes to certain public figures,” said U.S. Attorney Andrew Lelling. “Anyone – regardless of political affiliation – who puts others in fear for their lives will be prosecuted by this office. In a time of increasing political polarization, and amid the increasing incidence of mass shootings, members of the public must police their own political rhetoric. Or we will.”
“Everyone has a right to express their opinion, but threatening to kill people, takes it over the line and will not be tolerated,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s arrest of Robert Chain should serve a warning to others, that making threats is not a prank, it’s a federal crime. All threats are taken seriously, as we never know if the subject behind the threat intends to follow through with their actions. Whether potentially hoax or not, each and every threat will be aggressively run to ground. These investigations are expensive and are costly to the taxpayers, can put innocent people at risk, divert law enforcement from responding to actual emergencies, and cause undue stress to victims. I commend the great work of the Boston and Los Angeles Joint Terrorism Task Forces for their diligence and professionalism, and continue to seek the public’s support to immediately report threats or suspicious activity to law enforcement.”
On Aug. 10, 2018, the Boston Globe announced that it was requesting that other newspaper publications around the country publish a coordinated editorial response to political attacks on the media. The coordinated editorial response was to be published on Thursday, Aug. 16, 2018.
According to court documents, immediately following the announcement, Chain began making threatening calls to the Boston Globe’s newsroom. In the calls, Chain referred to the Globe as “the enemy of the people” and threatened to kill newspaper employees. In total, it is alleged that Chain made approximately 14 threatening phone calls to the Globe between August 10 and 22, 2018.
It is further alleged that on Aug. 16, 2018, the day the coordinated editorial response was published in the Boston Globe, Chain called the Globe newsroom and threatened to shoot Globe employees in the head “later today, at 4 o’clock.” As a result of that call, local law enforcement responded to the Globe’s offices and maintained a presence outside the building to ensure the safety of the employees.
The charge of making threatening communications in interstate commerce provides for a sentence of no greater than five years, one year 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.
U.S. Attorney Lelling and FBI SAC Shaw made the announcement today. Valuable assistance was provided by the Bureau of Alcohol Tobacco, Firearms and Explosives, Los Angeles Field Division; the Drug Enforcement Administration, Los Angeles Division; the U.S. Postal Inspection Service, Los Angeles Division; the California Highway Patrol; and the Los Angeles Police Department. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit is 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.
California Man Arrested for Heroin, Fentanyl TraffickingRead the Press Release
BOSTON – A California man was arrested yesterday in connection with drug trafficking activities that resulted in the seizure of approximately 11 kilograms of narcotics, including four kilograms of suspected heroin and five kilograms of suspected fentanyl.
Daniel Hernandez Ixta, 37, of Rancho Santa Margarita, Calif., was charged today with possession with intent to distribute and distribution of one kilogram or more of heroin and 400 grams or more of fentanyl. He made an initial appearance in federal court in Boston this afternoon and was detained pending a probable cause and detention hearing on Tuesday, Sept. 4, 2018.
According to court documents, an individual arranged to purchase four kilograms of heroin, five kilograms of fentanyl, and 5,000 pills from a narcotics distributor for a total purchase price of $517,000. The distributor agreed to arrange to have the drugs transported and delivered to the individual in North Andover. On Aug. 29, 2018, Hernandez, an associate of the distributor, allegedly met with the individual in an industrial warehouse park in North Andover near the Lawrence Municipal Airport to complete the transaction. After giving the individual a black duffle bag, agents responded to the scene and arrested Hernandez. It is alleged that nine kilograms of suspected narcotics were found in the duffle bag, and two additional kilograms of suspected narcotics and approximately 5,000 pills were found in Hernandez’s truck.
The charge of possession with intent to distribute and distribution of one kilogram or more of heroin and 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years in prison and up to life, at least five years and up to a lifetime of supervised release, and a fine of up to $10 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Jared Dolan of Lelling’s Narcotics and Money Laundering Unit is 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.
California Man Charged with Making Violent Threats Against Boston Globe EmployeesRead the Press Release
BOSTON – A California man was arrested today and charged with making violent threats against Boston Globe employees in retaliation for the newspaper’s editorial response to political attacks on the media.
Robert D. Chain, 68, of Encino, California, is charged with one count of making threatening communications in interstate commerce. Chain will appear in federal court in Los Angeles this afternoon and be transferred to Boston at a later date.
“In the past few months, this office has charged people with threatening to bomb a minority commencement ceremony at Harvard, threatening to shoot people at a Second Amendment rally, offering money to anyone who kills a federal agent, and mailing white powder and threatening notes to certain public figures,” said U.S. Attorney Andrew Lelling. “Anyone – regardless of political affiliation – who puts others in fear for their lives will be prosecuted by this office. In a time of increasing political polarization, and amid the increasing incidence of mass shootings, members of the public must police their own political rhetoric. Or we will.”
“Everyone has a right to express their opinion, but threatening to kill people, takes it over the line and will not be tolerated,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s arrest of Robert Chain should serve a warning to others, that making threats is not a prank, it’s a federal crime. All threats are taken seriously, as we never know if the subject behind the threat intends to follow through with their actions. Whether potentially hoax or not, each and every threat will be aggressively run to ground. These investigations are expensive and are costly to the taxpayers, can put innocent people at risk, divert law enforcement from responding to actual emergencies, and cause undue stress to victims. I commend the great work of the Boston and Los Angeles Joint Terrorism Task Forces for their diligence and professionalism, and continue to seek the public’s support to immediately report threats or suspicious activity to law enforcement.”
On Aug. 10, 2018, the Boston Globe announced that it was requesting that other newspaper publications around the country publish a coordinated editorial response to political attacks on the media. The coordinated editorial response was to be published on Thursday, Aug. 16, 2018.
According to court documents, immediately following the announcement, Chain began making threatening calls to the Boston Globe’s newsroom. In the calls, Chain referred to the Globe as “the enemy of the people” and threatened to kill newspaper employees. In total, it is alleged that Chain made approximately 14 threatening phone calls to the Globe between August 10 and 22, 2018.
It is further alleged that on Aug. 16, 2018, the day the coordinated editorial response was published in the Boston Globe, Chain called the Globe newsroom and threatened to shoot Globe employees in the head “later today, at 4 o’clock.” As a result of that call, local law enforcement responded to the Globe’s offices and maintained a presence outside the building to ensure the safety of the employees.
The charge of making threatening communications in interstate commerce provides for a sentence of no greater than five years, one year 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.
U.S. Attorney Lelling and FBI SAC Shaw made the announcement today. Valuable assistance was provided by the Bureau of Alcohol Tobacco, Firearms and Explosives, Los Angeles Field Division; the Drug Enforcement Administration, Los Angeles Division; the U.S. Postal Inspection Service, Los Angeles Division; the California Highway Patrol; and the Los Angeles Police Department. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit is 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.
Broward Resident Sentenced to Prison for Theft of Government MoneyRead the Press Release
On August 28, 2018, a Broward resident was sentenced to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $988,175 in restitution for theft of government money.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting 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.
Anthony Charles Dwight Box, 57, of Plantation, Florida, previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to court documents, in late 2012, a federal income tax return was filed on behalf of Box for tax year 2011 that included a fake Form W-2G claiming gross gambling winnings of $3,775,000 from a poker tournament and claiming federal tax withholdings of $1,057,000. The defendant’s Form 1040 also claimed $3,525,266 in gambling losses, which were used to offset Box’s purported income from gambling winnings, thereby generating a claimed refund of $986,618.
The IRS approved payment of Box’s refund and applied over $250,000 to Box’s 2005 and 2006 tax liabilities and to non-IRS debt. The remainder of the refund was sent to Box via a United States Treasury check in the amount of $735,463.69. Box endorsed and deposited the check knowing that he was not entitled to the refund and that it did not belong to him.
The IRS determined that Box’s 2011 federal income tax return was fraudulent and the claimed gambling winnings, withholdings, and losses were false. The fraudulent misrepresentations on Box’s tax return resulted in a loss of $988,175 to the IRS.
Mr. Greenberg commended the investigative efforts of IRS-CI and the FBI. This case was prosecuted by Assistant U.S. Attorney Daya Nathan.
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.
Bridgeport Felon Pleads Guilty to Possessing FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYESHON KING, 31, of Bridgeport, pleaded guilty today in New Haven federal court to one count of possession of firearms and ammunition by a convicted felon.
According to court documents and statements made in court, on March 24, 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department conducted a court-authorized search of KING’s Bridgeport residence and seized a loaded 9mm semi-automatic pistol and a loaded .40 caliber semi-automatic pistol that had been reported stolen in Bridgeport in 2015. Investigators also seized items used to process and package narcotics for street sale.
KING’s criminal history includes a state conviction in May 2007 for attempted assault in the first degree. He received a sentence of 15 years of incarceration, suspended after three years, on that conviction.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
KING has been detained since his federal arrest on July 13, 2017. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on November 19, 2018, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Dave Vatti.
Bleckley County Man Sentenced to Thirty Months Imprisonment for Making Threats Against Two United States SenatorsRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Jason Kenneth Bell, age 41, of Cochran, Georgia, was sentenced to serve 30 months in prison on two counts of Anonymous Telecommunications Harassment. The sentence was handed down by U.S. District Court Judge Marc T. Treadwell on August 30, 2018.
In his plea agreement, Mr. Bell admitted that on March 1, 2017, he called the office of U.S. Senator Charles Schumer. Mr. Bell left several messages after first speaking with an intern. Mr. Bell did not identify himself in these calls, but he said he wished Senator Schumer did not have personal protection, and said that “I would hit you until I couldn’t lift my arms anymore.”
Mr. Bell further admitted that on October 23, 2017, he called the office of U.S. Senator Timothy Scott and, without identifying himself, stated that he was going to kill Senator Scott. During that call, Mr. Bell also asked “are we as a white people supposed to just stand for this injustice or do we do what Dylann Roof did” referring to the self-declared white supremacist convicted of murdering nine African-American worshipers and attempting to murder more at Emanuel African Methodist Episcopal Church in Charleston, South Carolina in 2015.
Following his release from prison, Mr. Bell will be placed under the supervision of the United States Probation office for a period of one year. He is prohibited from contacting Senator Schumer, Senator Scott, any of their respective offices, or any member of their staff.
“Mr. Bell’s repeated threatening, abusive, and harassing phone calls landed him a deserving place in federal prison,” said United States Attorney Charles E. Peeler. “Everyone has the right to express their views, no matter how distasteful, under the First Amendment, but no one has the right to threaten, abuse, or harass those they disagree with. When civil discourse crosses the line to criminal activity, my office will vigorously prosecute those who violate the law.”
The case was investigated by the Macon Office of the Federal Bureau of Investigation with assistance from the United States Capitol Police in Washington, D.C. Assistant United States Attorney C. Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Belmont Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Joseph C. Callahan, 35, of Belmont, New Hampshire, pleaded guilty in federal court to possession of methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 31, 2017, the Belknap County Drug Task Force executed a search warrant at defendant Callahan's residence in Belmont, New Hampshire. During the search, officers recovered more than 30 grams of methamphetamine, three stolen firearms, drug paraphernalia, and $13,122 in cash that was subsequently forfeited.
Callahan is scheduled to be sentenced on December 6, 2018.
“Methamphetamine is a dangerous and deadly drug that is appearing in New Hampshire with increased frequency” said U.S. Attorney Murray. “This deadly substance poses a serious threat to our community and those who distribute it will be prosecuted aggressively. I commend the law enforcement officers whose efforts protected the public by stopping this individual’s drug dealing and also recovering several stolen guns.”
This matter was investigated by the Belknap County Drug Task Force, Belmont Police Department, Tilton Police Department, U.S. Drug Enforcement Administration, U.S. Marshals Service, Merrimack County Department of Corrections, Metro Las Vegas Police Department, and the Nevada Highway Patrol. The case is being prosecuted by Assistant U.S. Attorneys John S. Davis and Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Beckley Man Sentenced on Federal Gun ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that a Beckley man was sentenced yesterday to 36 months in federal prison on a gun charge. James David Morris Jr., 39, pled guilty in May to being a felon in possession of a firearm.
“Another felon with a firearm,” said United States Attorney Mike Stuart. “You would think the message would be clear – prohibited persons with guns will be prosecuted federally and put behind bars.”
Morris admitted that on October 14, 2017, he was riding a motorcycle in Harper Heights when he was stopped by a Raleigh County Sheriff’s Deputy, who found that Morris had a revolver in the waistband of his pants. The revolver was stolen. Morris was prohibited from possessing a firearm by virtue of his 2013 federal conviction of being an unlawful drug user in possession of a firearm.
The case was investigated by the Raleigh County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney John File prosecuted the case. United States District Judge Irene C. Berger imposed the sentence.
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.
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Beckley Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
BECKLEY, W.Va. – A Beckley man pled guilty yesterday to a federal methamphetamine distribution and gun crime, announced United States Attorney Mike Stuart. Jason Cook, 33, entered his guilty plea to distribution of methamphetamine and possession of a firearm during and in relation to a drug trafficking crime. U.S. Attorney Stuart commended the investigative efforts of the Beckley/Raleigh County Drug and Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Unfortunately, we see it far too often – a previously convicted felon selling firearms and drugs,” said United States Attorney Mike Stuart. “In partnership with ATF and state and local law enforcement, we have successfully prosecuted a significant number of these types of cases so far this year. This United States Attorney is committed to reducing the drug and violent crime that has plagued our communities for far too long.”
Cook admitted that on January 29, 2018, he sold methamphetamine, that he had manufactured himself, to a confidential informant working with the Beckley/Raleigh County Drug and Violent Crime Unit. At the same time that he sold the methamphetamine to the informant, he also sold a Taurus, Model 66, .357 caliber revolver handgun. Cook further admitted that he knew this was illegal, because he was a convicted felon and was not supposed to possess any firearms. Cook also admitted to selling heroin and methamphetamine to the same informant on different dates.
Cook faces up to 20 years in federal prison for the distribution of methamphetamine to be followed by a mandatory consecutive sentence of not less than 5 years for possessing the firearm during a drug trafficking offense when he is sentenced on December 5, 2018.
Assistant United States Attorneys Miller Bushong and Timothy D. Boggess are responsible for the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as 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.
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Bay Area Medical Professionals Indicted for Kickback SchemeRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted three doctors and three additional health care workers with conspiracy to pay and receive kickbacks for health care referrals and the receipt and payment of kickbacks for health care referrals, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. One defendant also was charged with obstruction of justice.
According to the indictment, filed August 16, 2018, and unsealed today, between April 2013 and May 2017, three doctors, Abdelsalam Mogasbe, 51, of San Jose, Jaime Cortes, 52, of Vacaville, and James Nickolopous, 70, of San Leandro, conspired to receive kickback payments, and did receive such payments, in exchange for referring Medicare patients to Medics Choice Home Health, Inc, a Milpitas home health care agency. The indictment also alleges that three employees of Medics Choice, Felina Roque, 62, of Sunnyvale, Loreta Dario, 57, of Hayward, and Lorena Gerisomav, 40, of Vacaville, conspired with the doctors to pay, and actually did pay, kickbacks.
All six defendants were charged with one count of conspiracy to pay and receive remuneration for the referral of Medicare beneficiaries, in violation of 18 U.S.C. § 371. Cortes Mogasbe, and Nickolopoulos were each charged with three counts of receipt of remuneration for referral of a Medicare patient, in violation of 42 U.S.C. § 1320a-7b(b)(1)(A). Roque, the owner of Medics Choice, was charged with 16 counts of payment of remuneration for referral of a Medicare patient, in violation of 42 U.S.C. § 1320a-7b(b)(2)(A), and Dario and Gerisomav were each charged with three counts under the same statute.
The indictment also alleges that Roque obstructed an investigation into Medics Choice that was being conducted by the FBI. Specifically, the indictment alleges Roque threatened former employees of Medics Choice who were voluntarily interviewed by FBI agents. Roque was charged with one count of obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 5 years imprisonment and a fine of $250,000, plus restitution for each violation of 18 U.S.C. § 371; 5 years imprisonment and a fine of $25,000, plus restitution for each violation of 42 U.S.C. § 1320a-7b(b)(1)(A) and (2)(A); and 20 years imprisonment and a fine of $250,000, plus restitution for obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI.
Aurora Man Sentenced for Fraud and Money LaunderingRead the Press Release
DENVER -- Justin Manning, age 40, of Aurora, Colorado, was sentenced to serve 22 months of incarceration followed by 3 years of supervised release by U.S. District Court Judge Wiley Y. Daniel for wire fraud and money laundering. Manning was also ordered to pay restitution of $830,000. The sentence was announced by U.S. Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.
According to information contained in the indictment, between 2012 and 2015, Manning was employed as an asset protection manager and assistant store manager at a local Walmart. In those job positions, Manning had access to blank Money Network Checks used in Walmart’s Money Network System. Beginning in approximately October 2013 and continuing through January 2015, Manning fraudulently filled out money network checks, and caused others to fill out the checks, in the name of third parties in order to deceive other Walmart employees into believing they were legitimate checks. Manning used his management positions to access the store’s deposit bundles in a safe at the store and took cash from those deposit bundles. To hide the fact that he took the cash, defendant Manning created fake loans to one of the store’s cash registers. Manning then placed in those cash registers fraudulent Money Network Checks totaling the same amount as the cash taken so that the total balance would be correct and other Walmart employees would not realize cash had been taken from the safe. Manning also knowingly engaged in a financial transaction utilizing the proceeds of the wire fraud. Specifically, Manning transferred funds between accounts at a financial institution.
“I don’t suggest messing with our white collar prosecutors or IRS Criminal Investigators,” U.S. Attorney Bob Troyer said. “There’s no future in it. Except prison.”
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Steven Osborne, Special Agent in Charge, Denver Field Office. “This sentence shows there are detrimental consequences for individuals who engage in financial fraud.”
This case was investigated by Internal Revenue Service – Criminal Investigation (IRS CI). This case was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Asheville, N.C. Man Sentenced to Nine Years for Possessing and Receiving Child Pornography from the Dark WebRead the Press Release
ASHEVILLE, N.C. – Carl Jack Hall, 51, of Asheville, N.C. was sentenced today by U.S. District Judge Martin Reidinger to 108 months in prison on charges of possession and receipt of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Hall to serve a lifetime of supervised release and to register as a sex offender.
According to court documents, the prosecution of this case stems from the FBI’s investigation into “Playpen,” a sophisticated child pornography website that operated on the anonymous “TOR” network. Using the dark web, Playpen’s more than 150,000 total members, anonymously stored and shared with each other videos and images that depicted children being sexually abused. Court records show that the website also included discussion forums pertaining to the sexual exploitation of children, including tips for grooming children and avoiding detection by law enforcement.
Court documents show that, over the course of the investigation, the FBI identified a member of the website who went by the name “Amoura,” later determined to be Hall. In July 2015, law enforcement conducted a search warrant at Hall’s residence and seized his laptop. A forensic analysis of the laptop revealed that Hall possessed hundreds of images of children being sexually abused. A web browser for the TOR network was also located on the computer, and contained a bookmark for the Playpen website. Hall initially lied to an FBI agent about his knowledge of TOR, and denied any knowledge of child pornography or of the Playpen website on his device.
On January 19, 2018, a federal jury convicted Hall of possession and receipt of child pornography.
In making today’s announcement, U.S. Attorney Murray commended the work of the FBI and highlighted the success of this operation which to date has led to the arrest of at least 350 U.S.-based individuals nationwide, the prosecution of 25 producers of child pornography, and the prosecution of at least 51 alleged hands-on abusers. Also, 55 American children who were subjected to sexual abuse have been rescued.
The U.S. Attorney’s Office in Asheville prosecuted 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 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.justice.gov/psc.
Armed Robbers Sentenced to 15+ Years in PrisonRead the Press Release
WILMINGTON, Del. – Two men who robbed twenty stores in Delaware, Pennsylvania, and Maryland were sentenced today. Chief U.S. District Court Judge Leonard P. Stark sentenced Michael Kolmonen to 15 years in prison and Brian Branch to 16½ years in prison.
In the summer and fall of 2016, Branch and Kolmonen combined to rob twenty (20) stores, almost all of them together. In almost every robbery, Branch entered the store, brandished a gun, and demanded money from the register. The two men victimized thirty (30) people, most of whom were teenagers or the elderly. The victims were as young as 17 and as old as 76 years old. They robbed:
1. BP, 2360 Pulaski Highway, New Castle, DE
2. Walgreens 4114 Ogletown-Stanton Rd, Newark, DE
3. Walgreens 1500 Beaverbrook Plaza, New Castle, DE
4. Walgreens 2608 Naamans Creek Road, Boothwyn, PA
5. Walgreens 19 Marrows Road, Newark, DE
6. Rite Aid 738 Pulaski Highway, Elkton, MD
7. Walgreens 2719 Pulaski Highway, Newark, DE
8. Walgreens 372 Possum Park Road, Newark, DE
9. CVS 366 East Chestnut Hill Road, Newark, DE
10. CVS 1545 Pulaski Highway, Bear, Newark, DE
11. Dunkirk Liquors 2 Dunlinden Drive, Wilmington, DE
12. Walgreens 1508 Philadelphia Pike, Wilmington, DE
13. Walgreens 1120 Pulaski Highway, Bear, Newark, DE
14. Walgreens 2608 Naamans Creek Road, Boothwyn, PA
15. Walgreens 301 East Pulaski Highway, Elkton, MD
16. Rite Aid 501 East Basin Road, New Castle, DE
17. Papa John’s 529 East Basin Road, New Castle, DE
18. Rite Aid 4607 Stanton-Ogletown Road, Newark, DE
19. CVS 366 East Chestnut Hill Road, Newark, DE
20. Valero Shore Stop, 796 N. Old Baltimore Pike, New Castle, DE
In sentencing the defendants, Chief Judge Stark stated that the defendants engaged in a “reign of terror for several months and both defendants had equal roles in it.”
“These robberies were particularly brazen; the defendants robbed stores in broad daylight and their victims were often the most vulnerable among us—employees whose only crime was trying to make a living,” U.S. Attorney Weiss said. “This case was cracked because of the outstanding work of the Delaware State Police and the FBI Baltimore, Wilmington Office. They, like our office, are dedicated to rooting out violent crime and catching anyone who threatens our communities.”
Colonel Nathaniel McQueen Jr., Superintendent of the Delaware State Police shared, “The sentencing hearings were centered around the victims, and the lasting effect that these violent crimes had and will continue to have on their lives going forward. The investigation, arrest and successful prosecution of these individuals was a direct result of our continued partnerships with federal, state, and local jurisdictions in Delaware, Maryland, and Pennsylvania. There is no doubt that the open communication and coordination of resources throughout these agencies prevented others from being victimized.”
"Serial armed robbers like Mr. Kolmonen and Branch require more than ever close collaboration between the FBI and our local and state law enforcement partners to bring them to justice," said Gordon B. Johnson, Special Agent in Charge of the Baltimore FBI. “I am extremely proud of the collaborative effort put forth in order to ensure these defendant were brought to justice and will no longer be able to terrorize or threaten the hardworking citizens and businesses in both Delaware and Pennsylvania. The citizens of Delaware have the FBI’s commitment that we will work with our local, state and federal partners to remove violent criminals from their neighborhoods.”
This case was investigated by the FBI Baltimore, Wilmington Office, the Delaware State Police, Upper Darby (PA) Police Department, and Elkton (MD) Police Department. Assistant U.S. Attorney Alexander S. Mackler prosecuted the case.
Armed Mexican National Indicted for Marijuana Cultivation Operation in National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Marco Lizandro Duarte-Beltran, aka Marco Antonio Duarte-Beltran, 32, an undocumented alien from Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, damaging public lands and natural resources, being an alien in possession of firearms, and being a previously deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers located 1,865 marijuana plants in the Millwood Creek area of the Sequoia National Forest after a two-month investigation. Duarte-Beltran was apprehended at the marijuana cultivation site. He was armed with a loaded revolver and had access to a loaded rifle at his campsite where he was living while growing the marijuana.
The marijuana cultivation operation caused significant damage to the land and natural resources. Native vegetation and tree limbs had been cut and thinned out to make room for the plants. Three areas had been terraced for the campsite. Water had been diverted from a water source on federal land to irrigate the plants. Throughout the grow site, law enforcement officers found irrigation tubing, trash, seed trays, seed pots, fertilizers, and pesticides.
This case was the product of an investigation by the U.S. Forest Service with assistance from Homeland Security Investigations (HSI) and Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California National Guard, Fresno Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy and manufacturing offense, Duarte-Beltran faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The environmental, firearms, and immigration crimes all carry a maximum statutory penalty of 10 years and a fine of up to $250,000. In addition, Duarte-Beltran may be liable for restitution to the U.S. Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Apprehended in an Internet “Sting” Operation, St. Croix Man Pleads Guilty to Attempted Coercion and Enticement for Illegal Sexual Activity Involving Internet PostingsRead the Press Release
St. Croix, USVI – On Thursday, August 30, 2018, Josue Navarro, 36, of St. Croix, Virgin Islands, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to attempted coercion and enticement for illegal sexual activity, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, on or about June 23, 2017 to June 25, 2017, law enforcement officers operating in an undercover capacity created and posted ads online. The post was captioned "home 4 the summer, looking fun in the sun NSA." The ad was posted by a law enforcement officer posing as a 14-year-old female named "Niema."
On June 24, 2017 at 8:43 p.m., "Niema" asked the defendant if he brought something "cause I don’t wanna get pregnant, my mother will kill me," to which the defendant responded "yes." At 9:03 "Niema" told the defendant she was 14. At 9:18 p.m., the defendant said "[L]emme come get you n we go get whatever it is u want."
At 11:02 the defendant texted the following to "Niema" and in highly graphic language offered suggestions as to methods and means for sexual penetration which he offered to provide to "Niema."
On June 25, 2017, at 1:19 p.m., the defendant texted "Niema," asking to engage in other sex acts involving carnal knowledge. At 4:35 p.m., the defendant told "Niema" "[L]et me come pick you up." The defendant was to meet with "Niema" at an arranged location in St. Croix and was taken into custody by law enforcement.
Navarro faces a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has been set for January 2, 2019.
The case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Alien and Native and Citizen of Honduras Indicted for Illegal Reentry after DeportationRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced that Lester Antonio Dionicio-Elias, 33, of Drexel Hill, PA, was charged today by indictment with illegal reentry after deportation.
The indictment alleges that the Dionicio-Elias, an alien and native and citizen of Honduras, was previously deported from the United States on or about May 7, 2008. At some point between May 2008 and 2013, Dionico-Elias allegedly reentered the United States illegally. If convicted of this current illegal reentry offense, the defendant faces a maximum possible sentence of 2 years’ imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ICE”), and is being prosecuted by Assistant United States Attorney Meaghan A. Flannery.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alabama Woman Pleads Guilty to Stealing over $700,000 from Her Employer and Filing False Tax ReturnsRead the Press Release
An Alabama woman pleaded guilty today to six counts of wire fraud and three counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Louis V. Franklin Sr. for the Middle District of Alabama.
According to court documents, from February 2007, through May 2014, Alita Baker Edeker, a resident of Valley, Alabama, embezzled $700,000 of her employer’s funds for her own personal benefit, by directing her company’s clients’ payments to debit and credit cards she controlled. Edeker made false statements and representations in the company’s books and records in order to conceal her embezzlement. After embezzling the funds, Edeker willfully filed false tax returns for tax years 2011, 2012, and 2013, that did not report the money.
Edeker faces a statutory maximum sentence of 20 years in prison for each wire fraud count and three years in prison for each count of filing a false tax return. Edeker also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Richard E. Zuckerman and United States Attorney Louis V. Franklin Sr. commended special agents of IRS-Criminal Investigation and the Auburn, Alabama Police Department, who investigated the case, and Assistant United States Attorney Ben Baxley and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Akron man indicted for using a fraudulent Social Security number and falsely overstating his income to obtain $300,000 mortgageRead the Press Release
An Akron man was indicted for using a fraudulent Social Security number and falsely overstating his income to obtain a mortgage of more than $300,000.
Bobbie W. Williams, a.k.a. Robert W. Williams, 56, was indicted on one count of bank fraud and two counts of bankruptcy fraud.
The indictment alleges Williams falsified information on his loan application in order to secure the purchase of the property located on Ridgewood Road in Akron. Then, after WILLIAMS could not make the payments on the property and it went into foreclosure, he falsified information in his bankruptcy petition, including his true identity and his ownership of the Ridgewood Road property.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Mark S. Bennett, and Special Assistant U.S. Attorney Amy Good, Trial Attorney, United States Trustee, after an investigation conducted by the U.S. Department of Housing and Urban Development, Office of Inspector General and the Cleveland office of the Federal Bureau of Investigation.
20 Individuals Charged with Drug Trafficking in Puerto Rico Project Safe Neighborhoods Enforcement EffortRead the Press Release
SAN JUAN, Puerto Rico – On August 23, 2018, a federal grand jury in the District of Puerto Rico returned an indictment against 20 defendants charged with conspiracy to distribute controlled substances in the municipality of Guaynabo, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD), Bayamón Strike Force Unit, are in charge of the investigation. This case is part of the US Department of Justice’s Project Safe Neighborhoods initiative.
The indictment alleges that beginning in or about 2013, the organization distributed heroin, cocaine base (crack), cocaine, marihuana, Oxycodone (commonly known as Percocet), Alprazolam (commonly known as Xanax), and Tramadol all within 1,000 feet of the real property comprising the La Rosaleda Public Housing Project, a housing facility owned by a public housing authority, the Yambele Ward (“Barrio Yambele”), and other areas nearby, and within the Municipalities of Guaynabo and San Juan, Puerto Rico, all for significant financial gain and profit.
The 20 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, runners and sellers. Thirteen of the defendants are facing one charge of possession of firearms in furtherance of drug trafficking crime.
According to the indictment, it was further part of the manner and means of the conspiracy that individuals suspected of cooperating with law enforcement, or who were suspected of not being loyal to the organization or its members, were forcefully evicted from their apartments at the La Rosaleda Public Housing Project. Organization members would then keep the apartments, at times with the acquiescence of La Rosaleda’s administration.
As part of the conspiracy, armed conspirators provided security to the drug point. The organization and its leaders would maintain contact with its incarcerated members through the use of cell phones.
The defendants are: [1] Jean Carlos Benitez-Meléndez, a.k.a. “Wako/Yanki/W”; [2] Santos Daniel Rondón-García, a.k.a. “Dan”; [3] Allen Miranda-Meléndez, a.k.a. “Duke/Alex Miranda/Dk”; [4] Santos Meléndez-Pizarro, a.k.a. “Peligro/Danger/Kiko/K”; [5] José Cabrera-Cañuelas, a.k.a. “Cheo”; [6] Jesús Alexis Pastrana-González, a.k.a. “Alexis Pastrana/Pastrana”; [7] Javier Meléndez Castro, a.k.a. “Verdugo/Melen”; [8] Brian D. López-Torres, a.k.a. “El Gordo”; [9] Pedro Cuevas-Berrios, a.k.a. “Piri/Goldo”; [10] Edgar Cana-Serrano; [11] Joshua Joel Luna-Irizarry; [12] Brandon Joseph Alago-De Jesús; [13] Ángel Luis Rosado-Meléndez, a.k.a. “Chino”; [14] Eduardo Benitez-Meléndez, a.k.a.“Mamel”; [15] Adams García-Camacho, a.k.a. “Adam”; [16] Ángel Damian Febus-Meléndez, a.k.a. “Damian/Ak”; [17] Ian Dariel La Santa-Rodríguez, a.k.a. “Menor”; [18] Nelson O. López-Ortega, a.k.a. “Zombi”; [19] Luis Albert Bonilla, a.k.a. “Albert”; [20] Julio David Andino-Diaz, a.k.a. “Jdian”.
“This indictment and the arrests this morning are a significant victory in our efforts to combat drug trafficking and violent crime,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to conduct investigations with our counterparts to dismantle these criminal organizations and to send a clear message that drugs, firearms, and violence will not be tolerated in our neighborhoods.”
“This successful investigation was a result of the dedicated efforts of the men and women of ATF Puerto Rico who work diligently, every day, to ensure the safety of our citizens,” said Ari Shapira, ATF Special Agent in Charge of the Miami Field Division.
Assistant U.S. Attorney Teresa S. Zapata-Valladares is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring 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 each community’s most violent criminals. Attorney General Sessions directed all U.S. Attorney’s Offices to work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
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12 Members/Associates of the CBL/BFL Gang Indicted, Charged with Murder and Assault in Aid of Racketeering, Racketeering and Narcotics Conspiracy, and Gun PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a superseding indictment charging 12 members and associates of the CBL/BFL Gang with racketeering and narcotics conspiracy; possession of firearms in furtherance of a crime of violence; and possession of firearms in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Named in the indictment are:
• Shawn Woods, a/k/a Pif, 26;
• Michael Walker, a/k/a Yam, 27;
• Mikel Lowe, a/k/a L-O, 24;
• Aaron Mack, a/k/a Dean, a/k/a Deano, 26;
• Shameris Washington, a/k/a GB, 20;
• Maurice Rice, a/k/a Reese, 20;
• Dalvon Curry, a/k/a Dale, a/k/a Dalo, 22;
• Dajon Nettles, a/k/a Gucc, 24;
• Larell Watkins, a/k/a 90-Ls, 20;
• Larry Watkins, Jr., 26;
• Larquon Watkins, a/k/a 90, 25; and
• Rashad Rose, a/k/a Gotti, 23.In addition:
• Defendant Dalvon Curry is charged with two murders in aid of racketeering. On December 5, 2015, he is accused of shooting and killing rival gang member Jaquan Sullivan. And on January 1, 2017, he is accused of shooting and killing Xavier Wimes.
• Defendant Larell Watkins is charged with one murder in aid of racketeering for providing Dalvon Curry with the firearm used to shoot and kill Xavier Wines.
• Defendants Shawn Woods, Rashad Rose, and Aaron Mack are charged with assault in aid of racketeering.Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the indictment, the defendants are members and associates of the CBL/BFL Gang which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other controlled substances.
The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang. An attack on a member typically resulted in retaliation by all members of the gang. Members and associates also used social media, such as Facebook and Snapchat, to display gang affiliation, brandish firearms, display quantities of currency and narcotics, and show participation in violent acts. They also produced, sang, and appeared in music videos at locations in and around the gang's territory that promoted the enterprise and its activities.
In order to enforce the authority, members and associates maintained a ready supply of firearms. Certain members and associates carried and discharged firearms. These "enforcers" or "shooters," retaliated with deadly force against threats of encroachment and violence, both actual and perceived, from rival gangs or individuals. CBL/BFL gang members also threatened witnesses who they suspected might testify or provide information to law enforcement about the crimes committed by the gang.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Wednesday 29 August 2018
Waterbury Man Involved in Connecticut-to-Maine Drug Trafficking Sentenced to More Than 7 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAMIEN PERRY, also known as “Damian Perry” and “Primo” 36, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 92 months of imprisonment, followed by four years of supervised release, for trafficking heroin and crack cocaine.
According to court documents and statements made in court, in 2016, the Drug Enforcement Administration received information that PERRY, Luis “Twin” Padilla and others were trafficking heroin, crack cocaine and other narcotics from the Waterbury area to Eastern Maine. On October 11, 2016, in Waterbury, investigators saw PERRY and Padilla meeting with Cecil Stanley, a resident of Maine, and saw Padilla stuff a package in the rear passenger area of Stanley’s vehicle. The next day, investigators followed Stanley’s vehicle and another vehicle containing PERRY and Padilla as the cars traveled in close proximity to each other from Waterbury on I-84 East. Connecticut State Police stopped Stanley’s vehicle in East Hartford and found approximately 55 grams of heroin and 95 grams of crack cocaine in a “trap” in the rear seat area of the car.
After State Police stopped Stanley’s vehicle, the vehicle containing PERRY and Padilla returned to Waterbury.
Subsequent analysis of text messages contained on Stanley’s cellphone revealed that PERRY and Padilla supplied Stanley with narcotics, which Stanley distributed in Maine.
On December 7, 2016, a grand jury in Bridgeport returned an indictment charging PERRY, Padilla and Stanley with heroin and crack cocaine trafficking offenses.
PERRY was arrested on December 15, 2016, and was released on a $25,000 bond. On March 29, 2017, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Subsequent investigation revealed that PERRY continued to traffic narcotics while he was released on a bond. On July 18, 2018, a grand jury in Bangor, Maine, returned an indictment charging PERRY, Padilla and five other individuals with conspiracy to distribute and to possess with intent to distribute heroin, fentanyl and crack cocaine.
PERRY has been detained since September 8, 2017.
Padilla and Stanley pleaded guilty in the District of Connecticut. On February 27, 2018, Padilla was sentenced to 78 months of imprisonment and Stanley was sentenced to 24 months of imprisonment.
This matter has been investigated by the DEA New Haven Task Force with the assistance of the Connecticut State Police and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
The indictment in the District of Maine is pending.
Waste Management to Forfeit $5.5 Million for Hiring Illegal AliensRead the Press Release
HOUSTON – Waste Management Texas has entered into a non-prosecution agreement with the government based upon a pattern and practice of hiring illegal aliens at the company’s Houston location, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Waste Management Inc. is North America’s leading provider of waste disposal and collection headquartered in Houston. The company serves nearly 20 million municipal, commercial, industrial and residential customers. Waste Management of Texas employed at least three managers at its Afton location who actively encouraged and induced aliens to work illegally between 2003 and April 2012.
The five-year HSI investigation resulted in the execution of search warrants in April 2012 where authorities discovered 16 illegal aliens at the Afton location with at least 100 employees in company records verified as fraudulently documented or using an identity that did not belong to them.
“The non-prosecution agreement requires Waste Management to continue its substantial remedial measures to address all past immigration violations and forfeit more than $5.5 million in proceeds gained from hiring an illegal workforce at the Afton location,” said Patrick. “In considering whether to enter into such agreements, we must take into account the collateral consequences that a criminal prosecution would have on the company’s contracts with many municipalities across the country and the thousands of employees for the conduct of three managers at one operating unit in Houston.”
“Federal law requires employers to hire only U.S. citizens and aliens who are authorized to work in the country,” said Dawson. “This company hired manual laborers with little or no regard for their legal status for almost 10 years at their Afton location. Today, they paid a substantial price for that conduct. We will continue to vigorously enforce immigration law where we find employers engaging in a pattern or practice of hiring unauthorized individuals in reckless disregard of the law.”
Waste Management of Texas hired various staffing agencies to provide contract laborers. Many were hired or rehired at the Afton location in reckless disregard of the fact that they were not authorized to work. The undocumented workforce allowed the company to maintain their preferred helper workforce to maximize profits and productivity. The estimated proceeds to the company derived from this conduct at the Afton location is $5,527,091.55, the amount forfeited to the United States today.
Managers at the Afton location fired at least 10 employees in January 2012 because they lacked documentation. The aliens were told to assume the identity of actual U.S. citizens or individuals with legal status in order to work there. Managers also engaged in an identity theft scheme providing the terminated aliens with names and identifiers of actual individuals with status in the United States to allow the illegal aliens to be employed and added to the company’s payroll.
A federal grand jury indicted three managers in May 2014 for engaging in a conspiracy between 2008 and 2012 to induce and encourage unlawful immigration through a scheme to employ undocumented aliens as helpers on waste trucks picking up garbage in and around Houston. All were convicted and received sentences of 27 - 94 months.
Waste Management of Texas cooperated with the government’s criminal investigation and conducted their own internal investigation. They determined the managers at their Afton location intentionally thwarted pre-existing immigration compliance procedures that have since been enhanced to prevent future hiring of unauthorized aliens seeking employment by fraud or identity theft.
HSI conducted the long-term investigation. Assistant U.S. Attorneys Casey N. MacDonald, Douglas Davis and Edward Gallagher prosecuted the case and negotiated the non-prosecution agreement with the company.
Vero Beach Attorney, Property Developer, and Buyer Sentenced to Prison for Conspiracy and Making False Statements to a Federally Insured InstitutionRead the Press Release
Today, three individuals, a Vero Beach attorney, a property developer and a condominium buyer were sentenced to prison for participating in a criminal conspiracy and making false statements to a federally insured institution. Two of the three men were ordered to forfeit a total of approximately $290,000.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Edwin Bonano, Special Agent in Charge, Tampa, Florida, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) made the announcement.
According to the court record, in 2009, Eric Granitur, age 60, a member of the Florida Bar, owned and operated Live Oak Title, which conducted two real estate closings for the purchase of five condominiums at the Vero Beach Hotel and Spa. The seller and developer of the Vero Beach Hotel and Spa, George Heaton, age 75, of West Palm Beach, paid numerous incentives to buyer Stephen McKenzie, age 46, of Melbourne, to purchase the condominiums. Heaton agreed to pay the “cash-to-close” amount that the buyer McKenzie was expected to bring to closing, and nearly $380,000 in additional cash after closing.
Granitur’s title company, Live Oak Title, conducted the closings for the sales of the Vero Beach Hotel and Spa condominium units sold to buyer McKenzie. As an escrow agent, Granitur was required to truthfully and accurately prepare and distribute a settlement statement to the financial institutions, known as a “HUD-1,” in preliminary form for review by the financial institution, prior to the closing of escrow. The closing statement was required to accurately reflect, among other information, the sales price, the closing funds provided by the borrower and all of the seller’s contributions. As an escrow agent, Granitur was responsible for receiving and holding in trust, in an escrow account, the mortgage loan proceeds from the financial institutions that financed the purchase of the condominium units, and he was responsible for disbursing those loan proceeds only after final approval by the financial institutions.
On two occasions, involving Vero Beach Hotel and Club condo units sold by Heaton to McKenzie, Granitur knowingly caused a false closing statement to be transmitted to a federally insured financial institution. The HUD-1 closing statements failed to truthfully disclose seller credits and incentives. Additionally, the closing statements failed to disclose that the seller was paying the buyer’s “cash-to-close.” The financial institutions relied upon the closing statement in authorizing the release of funds.
U.S. District Judge Robin L. Rosenberg sentenced Granitur, Heaton and McKenzie to prison today.
Granitur was sentenced to 12 months and one day in prison, to be followed by 5 years of supervised release. He was ordered to forfeit approximately $28,000.
Heaton, who pleaded guilty and cooperated with the government, was sentenced to 6 months in prison, 3 years of supervised release, and forfeited approximately $263,000.
McKenzie, who pleaded guilty and cooperated with the government, was sentenced to 4 months in prison and 3 years of supervised release.
Mr. Greenberg commended the investigative efforts of the FBI and FHFA-OIG in this matter. This case was prosecuted by Special Assistant U.S. Attorney Joseph A. Capone and Assistant U.S. Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Vendors, Consultants, and School Administrator Charged in Wide-Ranging Scheme to Defraud Federal “E Rate” Subsidy ProgramRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney, Assistant Director in Charge, Federal Bureau of Investigation (the “FBI”), David L. Hunt, Inspector General of the Federal Communications Commission (the “FCC-OIG”), and Thomas P. Zugibe, the District Attorney for Rockland County, announced today the return of an Indictment charging SIMON GOLDBRENER, a/k/a “Simon Goldbrenner,” a/k/a “Shimon Goldbrenner,” PERETZ KLEIN, SUSAN KLEIN, a/k/a “Suri Klein,” BEN KLEIN, a/k/a “Benzion Klein,” a/k/a “Benzi Klein,” MOSHE SCHWARTZ, SHOLEM STEINBERG, and ARON MELBER, a/k/a “Aharon Melber,” with conspiracy to commit wire fraud and wire fraud charges in connection with the federal program known as “E‑rate,” which provides subsidies for affordable telecommunications equipment and related services to qualified schools This case has been assigned to United States District Judge Kenneth M. Karas.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, for years, these defendants stole money from the E‑rate program, billing the E-rate program for equipment and services which were not in fact provided. The defendants allegedly fraudulently obtained millions of dollars in E rate funds to which they were not entitled, and which should lawfully have been spent to help provide access to technology to educate underprivileged children. This indictment is important not only because fraudsters should be held to account for their crimes, but also because the next generation of students should have access to telecommunication services, internet access, and related equipment, irrespective of their means and in spite of the fact that people like the defendants seek to line their own pockets at the expense of underprivileged children.”
FBI Assistant Director in Charge William F. Sweeney said: “Schools have to fight for every dollar these days to supply their students with the high-tech, expensive equipment and technology they need in this day and age to succeed in life. The suspects in this investigation allegedly used funding from a program designed to give underprivileged schools internet access to pad their own bank accounts. To add insult to injury, school officials, who see the day-to-day struggle to even find money for pencils and paper, were allegedly involved in the scheme. The FBI and our law enforcement partners will hold these criminals accountable, and stop others from defrauding not only the government and tax payers, but students who depend on these programs to get a better education.”
Rockland County District Attorney Thomas P. Zugibe said: “These individuals concocted a scheme that not only defrauded taxpayers, but also deprived local students of access to affordable technology equipment and Internet service. In short, the defendants are accused of shamelessly stealing millions of federal dollars earmarked to broaden young minds. The Rockland County District Attorney's Office will continue to work collaboratively with the U.S. Attorney and FBI to root out fraud and abuse - especially misconduct that impacts children. Offenders must be dealt with swiftly to prevent further fraud of this magnitude from occurring.”
According to the allegations made in the Indictment[1]:
The E‑rate distributes funds to schools and libraries mostly serving economically disadvantaged children, so that those institutions can afford needed telecommunication services, internet access, and related equipment. Over 30,000 applications from schools and libraries seeking funds to serve economically disadvantaged children were received each year during the relevant time period; every year, requests for E‑rate funds have exceeded funds available. In order to obtain those funds, educational institutions certify that they are purchasing equipment and services from a private vendor; if approved, the program defrays the cost by up to 90%. The educational institution is supposed to enter into an open bidding process in order to select a vendor, and the educational institution and vendor submit a series of certifications that they comply with a number of requirements of the E‑rate program. A school applying for E‑rate funds may employ a consultant, but that consultant must be independent of the vendors competing to sell E‑rate funded equipment and services.
PERETZ KLEIN, SUSAN KLEIN, BEN KLEIN, and SHOLEM STEINBERG (collectively, the “Vendor Defendants”) held themselves out as vendors to schools participating in the E‑rate program. Corporations controlled by the Vendor Defendants requested over $35 million in E‑rate funds, and received over $14 million in E‑rate funds, from in or about 2010 to in or about 2016.
SIMON GOLDBRENER and MOSHE SCHWARTZ (collectively, the “Consultant Defendants”) held themselves out as consultants who assisted educational institutions that desired to participate in the E rate program. The Consultant Defendants, and individuals acting at their direction, completed and filed E‑rate documents that resulted in the payment of millions of dollars in E‑rate funds to the Vendor Defendants.
ARON MELBER is an official at a private religious school in Rockland County, New York. MELBER and his school have participated in the E‑rate program with certain of the Vendor Defendants and Consultant Defendants, and filed certifications purporting to have obtained authorized E‑rate funded equipment and services from Vendor Defendants selected through a fair and open bidding process. From in or about 2009 through in or about 2015, MELBER’s school received over one million dollars in E‑rate funds.
From at least 2009 up to and including 2016, certain private religious schools, including MELBER’s school, sought and received E‑rate funds for the purpose of paying the Vendor Defendants for equipment and services that the schools, the Vendor Defendants, and the Consultant Defendants falsely claimed the Vendor Defendants had provided to the schools.
However, the schools never received millions of dollars’ worth of these items and services. In other cases, the schools, Vendor Defendants, and Consultant Defendants requested hundreds of thousands of dollars of sophisticated technology that served no real purpose for the student population. For example, from 2009 through 2015, one day care center that served toddlers from the ages of 2 through 4 requested over $700,000—nearly $500,000 of which was ultimately funded—for equipment and services—including video conferencing and distance learning, a “media master system,” sophisticated telecommunications systems supporting at least 23 lines, and high-speed internet—from companies controlled by PERETZ KLEIN and SUSAN KLEIN, using the Consultant Defendants as their consultants. In still other instances the schools received equipment and services that fulfilled the functions for which the schools had requested E‑rate funds (such as providing the school with internet access), but the schools, Vendor Defendants, and Consultant Defendants materially overbilled the E‑rate program for the items provided, in order to enrich themselves at the expense of the underprivileged children the program was designed to serve.
As alleged, the defendants also perverted the fair and open bidding process required by the E‑rate program. The Consultant Defendants—who held themselves out in filings as independent consultants working for the schools, but, in truth, worked with and for the Vendor Defendants—and the Vendor Defendants presented the schools with forms to sign or certify, awarding E‑rate funded contracts to the Vendor Defendants. As a result of false and misleading E‑rate filings, the Vendor Defendants received millions of dollars in E‑rate funds for equipment and services that the Vendor Defendants did not in fact provide and which the schools did not use, and the Consultant Defendants accepted payments totaling hundreds of thousands of dollars from the Vendor Defendants, despite falsely presenting themselves as independent of the Vendor Defendants.
In return for their participation in the scheme to defraud the E‑rate program, certain schools and school officials received a variety of improper benefits from the Vendor Defendants, including: a percentage of the funds fraudulently obtained from E‑rate for equipment and services that were not in fact provided to the schools; free items paid for with E‑rate funds but not authorized by the program, such as cellphones for school employees’ personal use and alarm systems and security equipment (which the E‑rate program does not authorize) installed at the schools; and free services for which the E‑rate program authorizes partial reimbursement (such as internet access) but for which the Schools did not—contrary to their statements in filings—make any payment at all.
The defendants and the counts with which they are charged in the Superseding Indictment are set forth in the attached list.
* * *
Mr. Berman thanked the FBI, the FCC-OIG, and the Rockland County District Attorney’s Office for their outstanding work on the investigation. This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael D. Maimin, Hagan Scotten, and Vladislav Vainberg are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
18-296 ###
United States v. Simon Goldbrener, et al.
Defendant
Age
Residence
Charges and Maximum Penalties
Simon Goldbrener
55
Monsey, New York
Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison
Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (three counts): 20 years in prison per count
Peretz Klein
64
Spring Valley, New York
Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison
Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Susan Klein
57
Spring Valley, New York
Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison
Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Ben Klein
39
Monsey, New York
Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison
Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Moshe Schwartz
45
Monroe, New York
Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison
Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Sholem Steinberg
39
Monsey, New York
Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison
Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (two counts): 20 years in prison per count
Aron Melber
42
Monsey, New York
Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison
Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Vantage Trust Federal Credit Union Agrees to Settle Ejectment Action Involving It’s Building on Premises of Wilkes-Barre VA Medical CenterRead the Press Release
SCRANTON - The United States Attorney’s office for the Middle District of Pennsylvania announced today that the United States has reached a settlement with Vantage Trust Federal Credit Union. The United States had sued Vantage seeking to remove Vantage from federal land and to recover money damages. The suit was brought because Vantage continued to occupy a building on the property of the Wilkes-Barre VA Medical Center after its license to occupy that building had ended. Damages were also sought because Vantage had no basis for continuing to occupy the building after its license had expired.
Vantage has agreed to turn over the building which previously housed the credit union to the US Department of Veterans Affairs. Vantage also agreed to pay to the United States $205,000. The settlement was reached after a mediation conducted by United States Magistrate Judge Joseph F. Saporito, Jr.
The case was handled by Assistant United States Attorney Justin Blewitt together with Dennis J Kulish, Office of General Counsel, U.S. Department of Veterans Affairs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
# # #
Utica Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Shawn Bunnell, 35, of Utica, New York, pled guilty today to ten counts of transportation of child pornography via the internet and one count of possession of child pornography, announced United States Attorney Grant C. Jaquith, Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI) and Oneida County Sheriff Robert M. Maciol.
As part of his guilty plea, Bunnell admitted that from on or about May 30, 2017 through on or about August 15, 2017, he transported a number of image files depicting minors engaged in sexually explicit conduct through computer servers maintained by Google, Inc. and Dropbox, Inc. Further, the defendant also admitted to possessing on his a cellular telephone several video files depicting minors engaged in sexually explicit conduct.
As a further part of his federal guilty plea, Bunnell also admitted that on March 27, 2003, he was previously convicted in Oneida County Court of Sexual Abuse in the First Degree, in violation of New York Penal Law, Section 130.65(3), relating to the sexual abuse of a child under the age of 11, and was sentenced to 5 years imprisonment, 3 years post-release supervision, and was required to register as a sex offender.
Sentencing is scheduled for January 10, 2019, in United States District Court in Syracuse. If the Court accepts the binding plea agreement executed by the parties, Bunnell, who remains detained, will be sentenced to serve fifty years in prison to be followed by a lifetime term of supervised release. He will also be required to once again register as a sex offender.
Bunnell’s case was investigated by the Oneida County Sheriff’s Office, Oneida County Child Advocacy Center, Whitesboro Police Department, Utica Police Department, New York State Police, and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher, Project Safe Childhood Coordinator, Geoffrey J.L. Brown and Sahar L. Amandolare.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to 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 https://www.justice.gov/psc.
U.S. Soldier Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Ikaika Erik Kang, 35, a Sergeant First Class in the U.S. Army stationed at Schofield Barracks, pleaded guilty today in federal court to four counts of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Kang was indicted on terrorism charges on July 19, 2017. As part of a plea agreement reached with the United States, Kang agreed to serve 25 years in prison and at least 20 years, and up to life, of supervised release. Kang will be sentenced on Dec. 10, by Senior U.S. District Judge Susan Oki Mollway. If Judge Mollway accepts the plea agreement at that time, the 25-year term of imprisonment will be binding.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Kenji M. Price for the District of Hawaii, and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office.
“Kang swore to defend the United States as a member of our military, but betrayed his country by swearing allegiance to ISIS and attempting to provide material support to the foreign terrorist organization,” said Assistant Attorney General Demers. “With today’s plea, he will be held accountable for his crimes. I want to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“This Office will vigorously prosecute anyone who attempts to provide material support to terrorists who seek to spread fear and cause mayhem in our communities through senseless acts of violence,” said U.S. Attorney Price. “The prosecutors and law enforcement agencies who brought the defendant to justice in this case work shoulder-to-shoulder, every day, promoting our national security interests and keeping our communities safe.”
“This is the first case in the State of Hawaii where someone was convicted of attempting to provide material support to a designated foreign terrorist organization,” Special Agent in Charge Kaul. “This should serve as reminder that even though we are 2,500 miles from the U.S. Mainland, these crimes can and do happen everywhere. I would like to personally thank the United States Attorney’s Office, the Unites States Army, the Naval Criminal Investigative Service, the Honolulu Police Department, and the entire Joint Terrorism Task Force Community here in Hawaii for bringing this investigation to a successful conclusion. Today, our community is a safer place due to their tireless efforts.”
According to court documents and information presented in court, Kang became sympathetic to ISIS by at least early 2016. He regularly watched ISIS propaganda videos online, including videos that depicted ISIS members violently executing civilian and military victims. Kang made numerous statements in support of ISIS, expressed a desire to join ISIS, and spoke approvingly about committing acts of violence. At the time, Kang made these statements, he owned an AR-15-style assault rifle and a pistol, both of which he kept at his residence on Oahu. Kang was under ongoing physical surveillance by law enforcement from the beginning of the investigation until the time of his eventual arrest.
In late June and early July of 2018, Kang met numerous times with undercover FBI agents who he believed had connections to ISIS. He provided them with sensitive, non-public military documents, some of which were classified at the SECRET level, which he intended that they later provide to ISIS. The documents included, among other things: classified air traffic control documents that describe call signs, aircraft types, route points, directives, mission procedures, and radio frequencies; the U.S. military’s “weapons file,” which describes all the armament capabilities of the U.S. armed forces; details about a sensitive mobile airspace management system used by the U.S. military; and documents containing personally identifiable information of U.S. service members.
Kang later provided the undercover agents with a commercially purchased small aerial drone, a military chest rig, and other military-style clothing and gear. Kang described how ISIS could operationally utilize the drone to track U.S. troop movements and gain tactical advantage by evading American armored vehicles. Kang then met two additional undercover FBI personnel, one who purported to be a high-ranking ISIS leader, or “sheikh,” and another who played the role of an ISIS fighter. Kang lead them in a hand-to-hand military combatives training session using his weapons, in order to train the purported ISIS member in fighting techniques. The sessions were video-recorded, with the understanding that the video would be taken back to ISIS-controlled territory and used to train other ISIS fighters in hand-to-hand combat and weapons techniques.
On July 8, 2017, Kang swore an oath of loyalty, known as “bayat,” to ISIS and its leader, Abu Bakr al-Baghdadi, in a ceremony conducted by the purported ISIS sheikh. After the ceremony, Kang kissed the ISIS flag. Kang then said that he wanted to get his rifle and go and fight; just go to downtown Honolulu and Waikiki strip and start shooting. Kang was subsequently arrested and taken into custody.
This case was investigated by the Joint Terrorism Task Force in Honolulu; the FBI; and the U.S. Army, Criminal Investigative Division, and was prosecuted by Assistant U.S. Attorneys Kenneth M. Sorenson and Marc A. Wallenstein of the District of Hawaii, and Trial Attorney Taryn M. Meeks of the National Security Division’s Counterterrorism Section.
U.s. Soldier Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
HONOLULU – Ikaika Erik Kang, 35, a Sergeant First Class in the U.S. Army stationed at Schofield Barracks, pleaded guilty today in federal court to four counts of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Kang was indicted on terrorism charges on July 19, 2017. As part of a plea agreement reached with the United States, Kang agreed to serve 25 years in prison and at least 20 years, and up to life, of supervised release. Kang will be sentenced on December 10, 2018 by Senior U.S. District Judge Susan Oki Mollway. If Judge Mollway accepts the plea agreement at that time, the 25-year term of imprisonment will be binding.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Kenji M. Price for the District of Hawaii, and Special Agent in Charge Sean Kaul of the FBI’s Honolulu Field Office.
“Kang swore to defend the United States as a member of our military, but betrayed his country by swearing allegiance to ISIS and attempting to provide material support to the foreign terrorist organization,” said Assistant Attorney General Demers. “With today’s plea, he will be held accountable for his crimes. I want to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“This Office will vigorously prosecute anyone who attempts to provide material support to terrorists who seek to spread fear and cause mayhem in our communities through senseless acts of violence,” said U.S. Attorney Price. “The prosecutors and law enforcement agencies who brought the defendant to justice in this case work shoulder-to-shoulder, every day, promoting our national security interests and keeping our communities safe.”
“This is the first case in the State of Hawaii where someone was convicted of attempting to provide material support to a designated foreign terrorist organization,” Special Agent in Charge Kaul. “This should serve as reminder that even though we are 2,500 miles from the U.S. Mainland, these crimes can and do happen everywhere. I would like to personally thank the United States Attorney’s Office, the Unites States Army, the Naval Criminal Investigative Service, the Honolulu Police Department, and the entire Joint Terrorism Task Force Community here in Hawaii for bringing this investigation to a successful conclusion. Today, our community is a safer place due to their tireless efforts.”
According to court documents and information presented in court, Kang became sympathetic to ISIS by at least early 2016. He regularly watched ISIS propaganda videos online, including videos that depicted ISIS members violently executing civilian and military victims. Kang made numerous statements in support of ISIS, expressed a desire to join ISIS, and spoke approvingly about committing acts of violence. At the time, Kang made these statements, he owned an AR-15-style assault rifle and a pistol, both of which he kept at his residence on Oahu. Kang was under ongoing physical surveillance by law enforcement from the beginning of the investigation until the time of his eventual arrest.
In late June and early July of 2018, Kang met numerous times with undercover FBI agents who he believed had connections to ISIS. He provided them with sensitive, non-public military documents, some of which were classified at the SECRET level, which he intended that they later provide to ISIS. The documents included, among other things: classified air traffic control documents that describe call signs, aircraft types, route points, directives, mission procedures, and radio frequencies; the U.S. military’s “weapons file,” which describes all the armament capabilities of the U.S. armed forces; details about a sensitive mobile airspace management system used by the U.S. military; and documents containing personally identifiable information of U.S. service members.
Kang later provided the undercover agents with a commercially purchased small aerial drone, a military chest rig, and other military-style clothing and gear. Kang described how ISIS could operationally utilize the drone to track U.S. troop movements and gain tactical advantage by evading American armored vehicles. Kang then met two additional undercover FBI personnel, one who purported to be a high-ranking ISIS leader, or “sheikh,” and another who played the role of an ISIS fighter. Kang lead them in a hand-to-hand military combatives training session using his weapons, in order to train the purported ISIS member in fighting techniques. The sessions were video-recorded, with the understanding that the video would be taken back to ISIS-controlled territory and used to train other ISIS fighters in hand-to-hand combat and weapons techniques.
On July 8, 2017, Kang swore an oath of loyalty, known as “bayat,” to ISIS and its leader, Abu Bakr al-Baghdadi, in a ceremony conducted by the purported ISIS sheikh. After the ceremony, Kang kissed the ISIS flag. Kang then said that he wanted to get his rifle and go and fight; just go to downtown Honolulu and Waikiki strip and start shooting. Kang was subsequently arrested and taken into custody.
The case was investigated by the Joint Terrorism Task Force in Honolulu, the FBI, and the U.S. Army, Criminal Investigative Division, and was prosecuted by Assistant U.S. Attorneys Kenneth M. Sorenson and Marc A. Wallenstein of the District of Hawaii, and Trial Attorney Taryn M. Meeks of the National Security Division’s Counterterrorism Section.
# # #
Two Men Sentenced to Prison for Roles in Central Connecticut Drug Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that two men involved in trafficking narcotics in central Connecticut were sentenced today in Hartford federal court. U.S. District Judge Vanessa L. Bryant sentenced LEONEL QUIROS, also known as “Haze,” 34, of New Britain, to 27 months of imprisonment and four years of supervised release, and DERRICK BRYANT, 27, of Middletown, to approximately 13 months of imprisonment, time already served, and five years of supervised release.
This matter stems from a joint investigation headed by the DEA New Haven Task Force into a central Connecticut cocaine and crack cocaine trafficking ring. The investigation, which included the use of court-authorized wiretaps, controlled purchases of crack cocaine and seizures of cocaine and cash proceeds, revealed that Westley Northrup, also known as “Piff,” operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody at the Cheshire Correctional Institution. Northrup conspired with Carlos Roman, also known as “Frizz,” of Middletown, to purchase cocaine from suppliers, including Omar Rivera, convert some of the cocaine to crack cocaine, and then distribute crack and cocaine through a network of dealers, including BRYANT.
Further investigation revealed that Rivera, of New Britain, was being supplied with cocaine by Orlando Quiros, of Suffield, who regularly received packages containing multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico. Quiros’s operation was assisted by his brother, LEONEL QUIROS, and individuals who agreed to accept delivery of the packages.
On July 12, 2017, law enforcement officers intercepted and seized approximately $210,000 in cash that Orlando Quiros had in a vehicle he was driving from Connecticut to New York.
LEONEL QUIROS, BRYANT and others involved in this narcotics trafficking conspiracy were arrested on July 26, 2017. On that date, investigators executed multiple search warrants and seized approximately seven kilograms of cocaine, several pounds of marijuana, three firearms, and nearly $100,000 in cash. One of the firearms was found in LEONEL QUIROS’s residence
On February 15, 2018, LEONEL QUIROS pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine. On May 31, 2018, BRYANT pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and cocaine base (“crack”).
Northrup, Roman, Rivera and Orlando Quiros pleaded guilty to related charges. On April 12, 2018, Roman was sentenced to 120 months of imprisonment. Northrup, Rivera and Orlando Quiros await sentencing.
This matter is being investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Two Men Illegally Present in the U.S. Arrested and Charged with Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Juan Humberto Martinez-Vega, 47, and Giovani Ramirez-Soto, 26, both citizens of Mexico, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and distribution of, methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, on July 26, 2018, a New York State Police Trooper conducted a traffic stop of a vehicle, with Alabama license plates, driving on Route 20A in the Town of Warsaw in Wyoming County. The trooper approached the vehicle which was being driven by Martinez-Vega with Ramirez-Soto as a passenger. Martinez-Vega gave the trooper an expired Georgia identification card. The defendant also told the trooper he was looking for work.
Martinez-Vega gave the trooper consent to search the vehicle. A NYSP K9 Trooper was brought to the scene. A K9 alerted to several areas of the vehicle and a subsequent search recovered 1,200 grams of suspected heroin, and approximately 421 grams of suspected methamphetamine hidden behind the front dashboard of the vehicle.
Further investigation determined that the defendants were illegally present in the United States.
Ramirez-Soto made an initial appearance today before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained. Martinez-Vega will make an initial appearance on August 30, 2018.
The criminal complaint is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Florida Men Sentenced to Federal Prison for Walgreens RobberyRead the Press Release
Orlando, FL –U.S. District Judge Carlos E. Mendoza has sentenced Windesthon Junior Pierre (22, Winter Garden) to 12 years and 3 months in federal prison for robbery. Judge Mendoza also sentenced Stephon Tevonta Johnson (22, Kissimmee) to 11 years and 9 months’ imprisonment for the same offense. Another individual, Sly Shaniel De Los Santos (23, Kissimmee), is awaiting sentencing for his role in this case. All three pleaded guilty earlier this year.
According to court documents, on September 21, 2017, Pierre, Johnson, and De Los Santos robbed a Walgreens store in Orlando. During the robbery, the men wore Halloween masks and latex gloves, and carried firearms. They corralled pharmacy employees into an office and demanded that they open two safes. They then attempted to gain access to the pharmacy by firing a gun into the pharmacy door, but were unsuccessful. However, they were able to steal $4,850 in cash.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Alejandro J. Salicrup.