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28 September 2018
Justice Department Hosts Cybersecurity Industry RoundtableRead the Press Release
The Justice Department’s Criminal Division hosted a cybersecurity roundtable discussion yesterday on the challenges in handling data breach investigations. Assistant Attorney General Brian A. Benczkowski of the Criminal Division delivered opening remarks and served as moderator for the event. Deputy Attorney General Rod J. Rosenstein, Assistant Attorney General John C. Demers of the Department’s National Security Division and officials from the FBI, U.S. Secret Service, the White House’s National Security Council and U.S. Department of Homeland Security also delivered remarks at the event. The audience included many of the nation’s leading private-sector practitioners in the field of data breach response and representatives from premier cybersecurity and incident response firms in the country.
The Criminal Division held its inaugural cybersecurity roundtable in 2015, shortly after the creation of the Cybersecurity Unit within the Computer Crime and Intellectual Property Section (CCIPS). The goal of the first roundtable was to spur a conversation within the legal community about how the government can work more effectively with companies, firms, and organizations to prosecute and prevent data breaches. Three years later, the Department continues to exchange ideas with and look to the private sector’s expertise and insight about how to improve cooperation between law enforcement agencies and data breach victims.
In February of this year, Attorney General Jeff Sessions established a Cyber-Digital Task Force, which published its first report in July. The report provides a comprehensive assessment of the cyber-enabled threats confronting the nation, and catalogs ways in which the Justice Department combats those threats, including by partnering with the private sector.
“Public-private partnerships addressing cybercrime play a critical role in our efforts to hold criminals accountable for data breaches,” said Deputy Attorney General Rosenstein. “We depend on the private sector to help us maintain the rule of law in cyberspace at every stage of our work. That includes working together to obtain critical evidence for investigations and trials, and collaborating on developing the legal authorities needed to protect our 21st century economy. Today’s discussion aims to share best practices, common challenges, and emerging threats, and identify how the Department of Justice and our law enforcement partners can help private industry to protect Americans from harm while safeguarding privacy. Through roundtables like this and the continuing collaboration they fuel, we will meet emerging threats, protect America’s technological innovations, and preserve public safety and security.”
“The Criminal Division has long been recognized for its innovative and aggressive pursuit of the most sophisticated cybercriminals,” said Assistant Attorney General Benczkowski. “Active engagement with the private sector through events like the Cybersecurity Industry Roundtable is essential to our effectiveness as prosecutors because it allows us to draw upon a broad range of experience to get better at what we do. The Criminal Division’s commitment to fighting cybercrime is unwavering, and we look forward to continued close cooperation in that fight with our counterparts in the private sector.”
The Criminal Division created the Cybersecurity Unit within CCIPS in December 2014 to help channel CCIPS’s expertise and experience combatting cybercrime into the prevention of cybercrime. The Unit’s contributions during its brief existence have included issuing groundbreaking guidance to help organizations create vulnerability disclosure programs to improve detection of cyber vulnerabilities. The Unit’s outreach to the private sector has included participation by members of CCIPS in well over 100 cybersecurity events since 2015, such as RSA, Black Hat, DEFCON, and International CES, which has helped the Unit build relationships with and gather input from incident responders, potential victims, and key information security experts. This input has been put to good use. The Criminal Division released a document at the first roundtable providing guidance to help organizations prepare for a cyber incident, called “Best Practices for Victim Response and Reporting Cyber Incidents.”
As part of Thursday’s event, the Cybersecurity Unit released a new document providing even more comprehensive guidance that reflects input the Unit received during its outreach efforts. The revised guidance addresses new issues like working with incident response firms, cloud computing, ransomware, and information sharing. It is an example of the type of assistance that the Cybersecurity Unit was designed to provide—to help elevate cybersecurity efforts and build better channels of communication between law enforcement and industry.
Inmate Sentenced to Federal Prison for Smuggling Heroin into Goose Creek Correctional CenterRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an inmate has been sentenced in federal court for his role in a scheme to smuggle heroin into the Alaska Department of Corrections (DOC) Goose Creek Correctional Center (GCCC) for distribution to inmates in April 2016.
Spencer Daniel Johnson, 25, who was an inmate at GCCC at the time of the offense, was sentenced yesterday by U.S. District Judge Sharon L. Gleason, to serve 3.5 years in federal prison, after previously pleading guilty to possession with the intent to distribute a controlled substance. Johnson’s federal sentence is to be served consecutively to the 20-year sentence he is currently serving from an unrelated State of Alaska murder conviction in 2015.
According to court documents, Johnson and co-defendant Kalani Lemauga Maalona were both inmates at GCCC, and co-defendant Heaven Leigh Erick was Maalona’s girlfriend who was not in custody at the time. Between April 1, 2016, and April 8, 2016, Johnson worked with Maalona and Erick to smuggle drugs into GCCC for distribution to other inmates. Through manipulation, Johnson convinced a female associate, identified as “L.B.” in court documents, to deliver a package of heroin to Johnson during an in-person “contact” visit at GCCC on April 8, 2016. L.B., age 26, was an associate of Johnson’s, who had no criminal history, did not drive, and did not live independently due to an intellectual disability.
Johnson and Maalona placed a series of recorded jail calls to coordinate the drug delivery. By April 7, 2016, Johnson had provided L.B.’s name and number to Maalona. On an April 7, 2016, jail call to Erick, Maalona mentioned L.B. by name, provided L.B.’s phone number to Erick, and instructed Erick – in coded language – to obtain drugs, package them, and to give L.B. a ride to GCCC the next day. On April 8, 2016, Johnson provided directions to L.B. regarding what to wear in order to conceal the drugs, told her to meet with associates who would drive her to GCCC, and said he would provide her further guidance when the two met at GCCC in person. Despite L.B. voicing hesitation, Johnson coaxed her into following through.
The evening of April 8, 2016, Erick drove L.B. to GCCC, and L.B. met with Johnson. When Johnson hugged L.B., he reached inside the sleeve of L.B.’s shirt where Erick had told L.B. to hide the drugs, and obtained the package. During a brief exchange that followed, Johnson told L.B. she was a “good girl” for carrying out his instructions and assured her nothing would happen to her as long as everything went smoothly. Although Erick could have proceeded directly to her secured visit with Maalona, she stood and watched the drug delivery. GCCC correctional officers quickly observed the contraband exchange, and ordered Johnson to keep his hands on the table. Johnson refused to do so, and before the contraband could be seized, Johnson swallowed the package of drugs he obtained from L.B.
Over the next few days, Johnson refused to surrender the package to DOC personnel. On April 11, 2016, the drug package was surgically removed from Johnson’s body at a local hospital. Laboratory analysis revealed the package contained nearly 20 grams of heroin. Johnson admitted that he was paid $5,000 to smuggle the heroin into GCCC for distribution.
At the sentencing hearing, Judge Gleason noted the seriousness of Johnson’s offense due to the fact that he planned to distribute the drugs inside GCCC, the quantity of heroin Johnson’s crime involved, and that Johnson had involved L.B. in the scheme. Judge Gleason underscored the need to deter the flow of drugs into the prison system.
Kalani Lemauga Maalona, 32, is scheduled to be sentenced on Oct. 9, 2018, at 9:30 AM. Heaven Leigh Erick, 29, is scheduled to be sentenced on Oct. 26, 2018, at 2:00 PM. Both previously pleaded guilty to drug conspiracy, as charged in the indictment. Erick also pleaded guilty to a two-count information, which charged her with possessing heroin and cocaine with the intent to distribute the drugs and being a felon in possession of a firearm in Fairbanks one month after the April 8, 2016, GCCC offense.
The Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from DOC and the Alaska State Troopers Western Alaska Alcohol and Narcotics Team (WAANT), leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Andrea W. Hattan.
INTERPOL Washington Attends 12th Annual International Intellectual Property (IP) Crime ConferenceRead the Press Release
Held September 25-26, the International Law Enforcement IP Crime Conference sought to shape effective enforcement strategies in fighting international property violations. INTERPOL Washington—the U.S. National Central Bureau—was represented by the Assistant Director for Transnational Crime, Paul Layman.
The conference participants used operational case studies, best practices, and industry perspectives to address key IP issues related to artificial intelligence, crypto currencies, organized crime, money laundering, and free trade zones. The United States estimates the costs of intellectual property theft to the U.S. economy to be as high as $600 billion per year. These thefts damage American companies and threaten national security.
“The IPR conference provides INTERPOL Washington an opportunity to collaborate with our law enforcement counterparts across the globe to address international cooperation in enhancing international property protection, said Layman. “Sharing best practices in this crucial area of transnational crime will enable us to better support our U.S. law enforcement partners as they fight intellectual property crimes.”
Co-organized by the Dubai Police, the UAE Ministry of Interior and INTERPOL, in partnership with UL (Underwriters Laboratories), the International AntiCounterfeiting Coalition and the Emirates IP Association (EIPA), this gathering marked the first time the conference was held in the Middle East.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
INTERPOL Washington was one of the participants in the recent International IP Crime ConferenceHumboldt Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty September 27, 2018, in federal court in Sioux City.
Lisa Marie Stock, 31, from Humboldt, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Stock admitted her involvement in a conspiracy that distributed at least 1500 grams of mixed methamphetamine from January 2018 through February 2018. During a traffic stop of a vehicle Stock was driving on February 6, 2018, law enforcement seized over 800 grams of actual (pure) methamphetamine and three firearms, including a stolen AR-15 rifle with an extra capacity magazine. Stock admitted she and another possessed the methamphetamine with intent to distribute it and aided and abetted another’s possession of firearms during the time of the conspiracy.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Stock was released on bond previously set. Stock faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Humboldt County Sheriff’s Office, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3004. Follow us on Twitter @USAO_NDIA.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that JOSE CARLOS ESTRADA-MEZA, age 26, was charged today in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, JOSE CARLOS ESTRADA-MEZA (“ESTRADA”), reentered the United States after he was previously deported on August 22, 2014. If convicted, ESTRADA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Guilty Jury Verdict for Kouts ManRead the Press Release
SOUTH BEND – Michael Thomas, 41 years old, of Kouts, Indiana, was found guilty after a four-day trial before U.S. District Court Judge Jon E. DeGuilio, announced U. S. Attorney Thomas L. Kirsch II.
According to documents in this case, a grand jury charged Thomas in a four count indictment alleging that Thomas devised a scheme to defraud insurance companies. The indictment alleged that he and others took out insurance policies on several residences near North Judson, Indiana, that he owned, shortly before each residence burnt due to arson. The charged fires occurred in 2004, 2010, 2012 and 2013. He and others received over $600,000 from the insurance companies.
Mr. Thomas will be sentenced on January 17, 2019.
The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant United States Attorney Jesse Barrett.
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Greenwich Man Sentenced to Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PASQUALE F. FURANO, 48, of Greenwich, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by one year of supervised release, for tax evasion.
According to court documents and statements made in court, FURANO is the sole owner of Pasquale Furano Landscaping, which generated business income by providing landscaping and snowplowing services to approximately 150 to 200 commercial and residential customers in Fairfield County, Connecticut, and Westchester County, New York. For the 2009 through 2013 tax years, FURANO underreported more than $2.5 million in gross receipts on his federal tax returns. For those five years, FURANO falsely reported total taxable income of $264,697 when his actual total taxable income was $1,751,727. Consequently, he only paid a total of $44,213 in federal taxes when he actually owed an additional $540,182.
The investigation revealed that FURANO evaded the payment of his federal taxes by negotiating approximately 2,436 client checks, totaling approximately $1,295,990.23, at the bank for cash rather than depositing the checks into his business accounts, sometimes cashing up to 38 checks in one day. FURANO also did not disclose to his tax return preparer his receipt of cashed client checks and other deposited client checks.
On October 16, 2014, IRS special agents conducted a court-authorized search of FURANO’s residence and seized handwritten business records of his actual gross receipts and $613,842 in cash.
Prior to his sentencing, FURANO paid the IRS $1,099,471.87, which represents all of the back taxes he owed for the 2009 through 2013 tax years, plus interest and penalties.
FURANO also has paid the Connecticut Department of Revenue Services (DRS) $112,360 in sales tax he collected from his customers from 2009 to 2013, but did not pay to the DRS.
On March 15, 2018, FURANO pleaded guilty to one count of tax evasion.
FURANO, who is released on bond, was ordered to report to prison on November 2, 2018.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
Greensburg Physician Charged with Illegally Distributing Suboxone, Health Care FraudRead the Press Release
PITTSBURGH – A Greensburg physician has been indicted by a federal grand jury in Pittsburgh on charges of distribution of buprenorphine, a Schedule III controlled substance, outside the usual course of professional practice; using and maintaining a drug-involved premises; health care fraud; and money laundering, United States Attorney Scott W. Brady announced today.
The 25-count indictment, returned yesterday, named Nabil Jabbour, 67, a physician who practices in Greensburg and Connellsville, Pennsylvania, as the sole defendant.
According to the indictment, between July 27, 2016, and December 13, 2016, Jabbour distributed buprenorphine—also known as Suboxone, Subutex, or Zubsolv—on a total of 17 occasions, outside the usual course of professional practice and not for a legitimate medical purpose. The indictment further alleges that between January 2014, and December 2016, Jabbour operated the two locations of his medical practice as drug-involved premises. Jabbour is also charged with defrauding Medicare and Medicaid through his illegal dispensing practices, which resulted in the health care programs covering costs associated with fraudulent buprenorphine prescriptions. Finally, the indictment charges Jabbour with money laundering based on cash transactions in excess of $10,000 that he initiated at the Meadows Casino in Washington, Pennsylvania, on five occasions between July 26, 2015, and July 25, 2016.
Jabbour faces a maximum sentence of 10 years’ imprisonment and a fine of $500,000 for each distribution count; a maximum sentence of 10 years’ imprisonment and a fine of $500,000 for each drug-involved premises charge; a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for the health care fraud charge, and a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for each money laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing. The Pennsylvania State Police, the Pennsylvania Office of the Attorney General – Narcotics Unit, the Westmoreland County Sheriff’s Office and the Greensburg Police Department also provided assistance.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Government Settles $1.2 Million Lawsuit Against Florida Compounding Pharmacy and Its Owner for Excessive Charges to TRICARERead the Press Release
Tampa – U.S. Attorney Maria Chapa Lopez announces that the United States has settled allegations that a Tampa-based compounding pharmacy, now-defunct RS Compounding, LLC, and its owner, Renier Gobea, knowingly billed TRICARE excessive prices for compounded prescriptions. In reaching this settlement, the parties resolved allegations that, between January 1, 2012, and January 31, 2014, Gobea and RS Compounding charged TRICARE at least 2,000 percent more for drugs than they charged cash-paying customers, in violation of the False Claims Act.
TRICARE, the health care program for uniformed service members and their families, prohibits pharmacies from charging TRICARE more than the general public. Gobea and RS Compounding charged TRICARE vastly more than they charged the public, in some cases over 10,000 percent more. When Gobea and RS Compounding determined that this practice violated TRICARE policy in January 2014, they made mere prospective changes and did not return the profits secured by the overcharges. In an ability-to-pay settlement, the government agreed to accept $1.2 million to resolve these allegations.
TRICARE’s costs for compounded drugs rose from $5 million in 2004 to $514 million in 2014 and $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has pursued numerous actions involving fraud associated with compounding pharmacies, resulting in over $57 million in settlements.
“This case is part of our long-standing efforts to hold compounding pharmacies accountable,” said U.S. Attorney Chapa Lopez. “We will continue to combat unscrupulous practices in all forms, especially those that harm or interfere with the care received by our service members and their families.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to ensure that medical service providers do not unjustly enrich themselves by wasting and diverting precious taxpayer dollars. DCIS protects and preserves the integrity of TRICARE, a vital DoD program serving U.S. service members, retirees, and their families,” said Special Agent in Charge John F. Khin, Southeast Field Office.
This lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The case is captioned United States ex rel. McKenzie Stepe v. RS Compounding LLC, Renier Gobea, Case No. 8:13-cv-3150-T-33AEP (M.D. Fla.). McKenzie Stepe filed this qui tam case, and, although she passed away during the pendency of the case, her estate will receive $264,000 as part of the settlement.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by TRICARE, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Attorney’s Office for the Middle District of Florida. It was handled by Assistant U.S. Attorneys Shea Gibbons and Sean Keefe.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Charles McCreary, age 27, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa Springmann after pleading guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
McCreary was sentenced to 180 months in prison followed by 2 years of supervised release.
According to documents in the case, in January 2017, McCreary was in possession of a .40 caliber firearm after having three prior felony convictions in Allen County Court. These three convictions qualify him as an armed career criminal.
This case was investigated by the ATF, with the assistance of the Fort Wayne Police Department and prosecuted by Assistant United States Attorney Stacey R. Speith.
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Former State Senator, RI Businessman Pleads Guilty to Bank Fraud, Tax CrimesRead the Press Release
PROVIDENCE, RI – Former Rhode Island State Senator and businessman James E. Doyle, III, 46, of Pawtucket, today pleaded guilty in U.S. District Court in Providence to thirty-one counts of bank fraud and one count each of filing a false tax return and failing to file a tax return.
Appearing before U.S. District Court Judge William E. Smith, Doyle admitted to the Court that as owner of Doyle Respiratory, LLC and Doyle Sleep Solutions, LLC, he engaged in $74 million dollars in worthless bank transactions executed in check-kiting schemes through bank accounts he controlled at Bristol County Savings Bank, Alliance Blackstone Valley Federal Credit Union (ABVFCU) and Santander Bank. Doyle admitted that he executed the scheme through the use of checks, cash withdrawals, ATMs electronic transfers and ACH transfer payments.
Doyle’s guilty plea is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Harold H. Shaw.
Doyle admitted to the Court that he accomplished the check-kiting scheme by writing checks from accounts he knew were not backed by sufficient funds and depositing those checks into different accounts to cover daily overdrafts in that account. Simultaneously, he wrote checks out of the second account and deposited those checks back into the first bank account. The purpose and effect of writing and depositing these worthless checks was to manipulate the numerical balances in the checking accounts, and thereby create the false and fraudulent appearance that the accounts had sufficient available funds in the accounts and to deceive and trick the banks into honoring the checks drawn against the checking accounts with insufficient funds.
In order to avoid detection, Doyle admitted to the Court, he did this daily throughout the life of the scheme, at times undertaking in excess of 50 transactions per day. At times, he also utilized ATM machines in order to lengthen the time it took for checks to be presented for clearing.
The investigation revealed that over the life of the scheme the defendant wrote tens of thousands of worthless checks between the banks at which he maintained accounts.
Doyle also admitted to the Court that for tax years 2013 thru 2016 he and his wife failed to report to the IRS more than $1 million dollars in income and failed to pay $305,426 in taxes due the IRS.
Doyle is scheduled to be sentenced on January 18, 2019.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
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Former Honduran National Police Chief Sentenced to 14 Years in Prison for Conspiring to Import Cocaine into the United States and to Possess FirearmsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond Donovan, Special Agent in Charge of the Drug Enforcement Administration’s Special Operations Division, announced today that Carlos ALBERTO VALLADARES GARCIA, a former high-ranking member of the Honduran National Police, was sentenced yesterday to 14 years in prison for conspiring to import cocaine into the United States and for conspiring to possess firearms in furtherance of his drug-trafficking activities. VALLADARES pled guilty April 24, 2018, and was sentenced by U.S. District Judge Lorna G. Schofield.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Carlos Alberto Valladares Garcia, a former Honduran National Police chief, worked from the inside to ensure a criminal enterprise operated with impunity. Not only did he provide clearance for a drug trafficking organization’s drugs to flow through his country and into the United States, but Valladares – a sworn law enforcement officer – participated directly in drug-related murders and cover ups. For his heinous acts, Valladares will serve 14 years in an American prison.”
Special Agent in Charge Raymond Donovan said: “The sentencing of Carlos Alberto Valladares Garcia sends a strong message to drug traffickers across the globe. As a member of the Honduran National Police, Valladares betrayed the trust of the people he served. This case confirms that anyone who associates and benefits from drug trafficking can and will be held accountable.”
According to the Indictment, other court filings, and statements made during court proceedings:
From approximately 1995 through 2013, VALLADARES served as a member of the Honduran National Police, holding positions including, among others, Chief of the Homicide Division in San Pedro Sula; Chief of Police for the city El Progreso, Yoro Department; and Chief of Police for the city of Quimistan, Santa Barbara Department. Between at least approximately 2005 and 2013, VALLADARES worked with members of a drug-trafficking organization known as the Cachiros, which was a prolific and violent criminal syndicate that relied on connections to politicians, military personnel, and law enforcement to transport cocaine to, within, and from Honduras. During that time, and while VALLADARES was purportedly enforcing the law as a police officer, VALLADARES participated in the Cachiros’ criminal enterprise by engaging in acts of violence, including several murders, and supporting their drug-trafficking activities.
For example, in approximately 2008, VALLADARES participated in a shootout in a nightclub that left several people dead. Prior to the shooting, the then-leaders of the Cachiros—Devis Leonel Rivera Maradiaga and Javier Eriberto Rivera Maradiaga—and a Honduran congressman also working with the Cachiros agreed to kill an individual in retaliation for drug-related violence. Leonel Rivera and Javier Rivera lured the intended victim to a nightclub in San Pedro Sula where a shootout occurred in which VALLADARES participated by firing his weapon. Several members of the intended victim’s security team were killed during this incident. VALLADARES also participated in additional acts of violence with the Cachiros. In October 2011, VALLADARES drove Leonel Rivera to an airport in San Pedro Sula to observe a shootout between members of the Cachiros and rival drug traffickers, which left six people dead. Prior to the shooting, Leonel Rivera told VALLADARES that he would be witnessing a “war.” And in approximately 2012, VALLADARES helped Leonel Rivera kill two individuals by identifying them as perpetrators of a murder and assisting in their kidnapping.
VALLADARES also was a significant part of the Cachiros’ drug-trafficking operations. On several occasions, VALLADARES accompanied Leonel Rivera during the transportation of drugs; was present at airstrips when substantial quantities of drugs were received by the Cachiros; and communicated with Leonel Rivera while the Cachiros transported drugs through Honduras. VALLADARES also carried a firearm during some of this conduct and was present with security teams that were armed with assault rifles.
To commit these crimes, VALLADARES took advantage of his position as a member of the Honduran National Police. The abuse of his position began in approximately 2004 when VALLADARES met Leonel Rivera and agreed to end an investigation that had identified Leonel Rivera as the perpetrator of a homicide. Over the next decade, and while VALLADARES rose through the ranks of the Honduran National Police and received awards for his purportedly honorable conduct, VALLADARES continued to use his position to assist the Cachiros. For example, Valladares (i) convinced a witness to not press charges against Leonel Rivera for a homicide; (ii) provided information to the Cachiros concerning police checkpoints; (iii) recruited other Honduran National Police officers to assist the Cachiros; (iv) worked with other corrupt cops to remove a seized truck from a secure premises to recover approximately 100 kilograms of cocaine in exchange for approximately $80,000 in U.S. currency; and (v) recovered $2 million in U.S. currency in drug-trafficking proceeds that was seized by law enforcement and returned it to the Cachiros.
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In addition to the prison term, VALLADARES, 43, was sentenced to four years of supervised release.
Six other former members of the Honduran National Police, including, among others, Mario Guillermo Mejia Vargas, Victor Oswaldo Lopez Flores, Ludwig Criss Zelaya Romero, Juan Manuel Avila Meza, and Carlos Jose Zavala Velasquez, are also charged in this case with firearms and/or drug trafficking offenses relating to a separate conspiracy to import cocaine into the United States. Each of those individuals have pled guilty in federal court, along with co-conspirator Fabio Porfirio Lobo. On September 5, 2017, Lobo was sentenced to 24 years in prison; on February 6, 2018, Flores was sentenced to five years in prison; and on June 27, 2018, Velasquez was sentenced to 12 years in prison. The remaining defendants await sentencing by Judge Schofield.
Mr. Berman praised the outstanding efforts of the Special Operations Division of the DEA Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Matthew Laroche are in charge of the prosecution.
Former Bassist for the Ataris Pleads Guilty to Defrauding Thousands in Nationwide Telemarketing Real Estate ScamRead the Press Release
The former bass player for the rock band, The Ataris –best known for their 2003 hit cover of Don Henley’s "The Boys of Summer" – pleaded guilty earlier today to a charge of conspiracy to commit mail and wire fraud. Michael S. Davenport, 50, of Santa Barbara, California, appeared at the federal district courthouse in East St. Louis, Illinois, and admitted to owning and operating a telemarketing business that defrauded thousands of would-be renters and home-buyers throughout the United States from 2009 to 2016. Davenport’s Santa Barbara-based business changed names several times but was known variously as MDSQ Productions LLC, Housing Standard LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard. Court documents simply refer to the business as "American Standard."
As part of his guilty plea, Davenport admitted that American Standard posted ads on Craigslist listing certain houses for sale or rent at very favorable prices, when, in fact, the houses described in the ads didn’t exist. Consumers who responded to the ads were told they would have to purchase American Standard’s list of houses before they could see any additional information. Consumers were also told that the houses on American Standard’s list were in "pre-foreclosure," that they could purchase the properties by simply taking over the homeowners’ mortgage payments, and that the deeds to the homes would then be transferred into the customers’ names. The $199 fee that American Standard charged to access the list was purportedly to cover the cost of title searches and deed transfers. No matter what area of the country the consumer lived in, American Standard salespersons told them that the list contained numerous pre-foreclosure properties available in their area.
After consumers paid the $199 fee, they learned that the houses on American Standard’s list were not actually available for purchase. A substantial number of the addresses contained on the list were fictional, or there were simply no houses at those locations. In numerous other instances, the houses were not in pre-foreclosure or any financial distress and were not available to be purchased at below-market prices. If an American Standard customer asked for more
information about a specific house advertised on Craigslist, the company’s customer service department always told them that the house was no longer available.
Davenport acknowledged in court that his conspiracy and scheme to defraud operated from approximately January 2009 through at least October 5, 2016, over which time American Standard defrauded more than 100,000 people. The victims were located in all 50 states and the District of Columbia. Over 100 victims of the scam were located within the Southern District of Illinois, spread across 22 counties, with multiple victims in both St. Clair and Madison counties. American Standard’s list included 534 houses located in Southern Illinois. All told, the scheme took in more than $25 million.
Earlier this year, three of Davenport’s former employees also pleaded guilty in the Southern District of Illinois to participating in the American Standard fraud conspiracy. Mark A. Phillips (50) and Semjase E. Santana (37) were salespersons at American Standard’s headquarters in Santa Barbara, California. Carlynne L. Davis (33) was a salesperson in the company’s Lompoc, California branch office. All three are currently awaiting sentencing.
Criminal charges are also still pending against Cynthia L. Rawlinson, 51, of Santa Barbara, who is named as a co-defendant in Davenport’s indictment. Rawlinson allegedly started out as a salesperson but was later promoted to the sales manager position for American Standard’s Santa Barbara office. Rawlinson’s trial is set to begin on November 5, 2018, at the federal courthouse in East St. Louis, Illinois.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Davenport’s sentencing is set for December 28, 2018, at 10:00 a.m., in East St. Louis. Under the federal SCAMS Act, because the crimes involved telemarketing and victimized ten or more people over the age of 55, Davenport could receive as much as 30 years imprisonment and a fine of up to $250,000. He may also be ordered to pay restitution to his victims. Davenport’s plea agreement requires him to forfeit $853,210.11 taken from his merchant processing accounts, as well as $79,000 in cash that was seized from him last July as he was boarding a plane in Little Rock, Arkansas.
This case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The Office of the Honorable Joyce E. Dudley, District Attorney for Santa Barbara County, and the Santa Maria Office of the FBI have provided substantial assistance in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Former Air Force Senior Airman Found Guilty of Making a Fraudulent Demand Against the United StatesRead the Press Release
SACRAMENTO, Calif. — After a two-day trial, a federal jury found Alyssa L. Gervais, 25, of Lincoln, guilty today of making a fraudulent demand against the United States, a misdemeanor, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Gervais was a Senior Airman at Beale Air Force Base until her separation from the Air Force on January 10, 2019. During her three years in the Air Force, Gervais worked in the finance section at Beale Air Force Base. After her separation, in February 2018, Gervais filed a travel reimbursement request in the form of a “travel voucher” seeking reimbursement for post-separation travel from Beale Air Force Base to her home of record in Indiana. In the travel voucher, Gervais claimed that she, her husband, and their toddler son drove two vehicles over the course of eight days and over 2,000 miles. Gervais’s claimed expenses amounted to approximately $773. The finance section later discovered that Gervais and her family never took the trip and were in California the whole time. Gervais later confessed to investigators that she attempted to defraud the government by submitting a false travel voucher.
At trial, Gervais recanted her confession and instead testified that she lawfully submitted the travel voucher in an attempt to obtain a monetary advance for a trip to Indiana that the family planned to take in the future. Witnesses from the finance department contradicted this story by testifying that a request for an advance would have required a completely different form and procedure, and Gervais knew this because she had worked in the very department that processed travel vouchers and advances.
This case is the product of an investigation by Beale Air Force Base’s Security Forces Investigations Unit. Special Assistant U.S. Attorneys Eric Chang and Robert Artuz are prosecuting the case.
Gervais is scheduled to be sentenced by U.S. Magistrate Judge Kendall J. Newman on January 9, 2018. Gervais faces a maximum statutory penalty of one year in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Felon with 13 Prior Convictions Charged with Illegally Possessing HandgunRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on September 27, named Darnell James Shipman, age 28, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, during April and May of 2018, Shipman, a convicted felon, unlawfully possessed a 9 millimeter semi-automatic Carik pistol and 17 rounds of 9 millimeter ammunition. The indictment also alleges that the defendant has been convicted of 13 offenses in seven different cases between 2010 and 2018. Federal law prohibits an individual with any felony convictions from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in a America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal, State, and Local Authorities Charge 28 Individuals on Federal Drug Charges as part of Operation California Dreamin’Read the Press Release
Abingdon, VIRGINIA – Twenty-eight individuals suspected of trafficking methamphetamine from Southern California into Southwest Virginia, Northeast Tennessee, and Georgia have been charged via a federal criminal complaint with conspiring to possess with the intent to distribute methamphetamine. United States Attorney Thomas T. Cullen was joined in announcing the arrests by officials from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington County Sheriff’s Office, and the Sullivan County, Tennessee Second Judicial Drug Task Force.
“Although the opioid epidemic has gripped many communities in our district, methamphetamine is still the drug of choice in Southwest Virginia,” U.S. Attorney Cullen stated. “We are committed to working with the DEA, the ATF, the Virginia State Police, and our local partners to target the organizations and individuals responsible for trafficking this deadly drug and send them to federal prison.”
“ATF is committed to dismantling criminal organizations like this one and protecting the communities where they operate,” said Special Agent in Charge Thomas L. Chittum, Washington Field Division. “We are proud to work alongside our local, state and federal partners on operations like this, and will continue to do everything we can to take armed criminals off our streets and put them behind bars where they belong.”
In early 2017, an investigation was opened to examine the trafficking of methamphetamine between California and Southwest Virginia and Northeast Tennessee. According to the criminal complaint and supporting affidavit filed in court following today’s arrests, 28 individuals, located in California, Georgia, Virginia and Tennessee were identified as allegedly being involved in the trafficking and distribution of methamphetamine.
In addition, the investigation further revealed that some alleged sources of supply from California temporarily relocated to the Bristol, Virginia and Tennessee region in order to better facilitate their drug distribution operations.
Those charged today included:
- Shawn Wayne Farris
- Sean Phillip Maidlow
- Jair Medina Gutierrez
- Lacey Cheri Weir
- Andrea Nichole Stickel
- James Nicholas Howington
- James Robert Johnson
- Stephen A. Graham
- Christopher Lee Smiley
- Joshua Todd Chapman
- Saleemah Lashawn Roberson
- Donald Zachary Snyder
- James Skyler Sebastian
- Larry Levi Bennett
- Terry Melvin Dalton
- Heather Ashley Davis
- Brianna Nicole Woodby
- Donald Shane Hawthorne
- Gary Lee McFarlane
- Elizabeth Pauline Eaton
- Matthew Todd Mullins
- Anthony Chadwick Harless
- Kimberly Ann Drake
- Brandon Heath Whitt
- Melissa Darlene Barrett
- Susan Nicole Payne
- Bradley Scott Williams
- Devon Scott Coleman
The investigation of the case is being conducted by the Abingdon Police Department, Virginia State Police, Washington County Sheriff’s Office, Bristol, Tennessee Police Department, Bristol, Virginia Police Department, the Sullivan County, Tennessee Second Judicial Drug Task Force, Sullivan County Sheriff’s Department, Commerce, Georgia Police Department, New Jersey State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Postal Inspection Service. The Washington County Commonwealth’s Attorney’s Office, Bristol, Virginia Commonwealth’s Attorney’s Office, and the Sullivan County, District Attorney’s Office have assisted in the investigation. Western District of Virginia Criminal Chief Zachary T. Lee will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Federal Inmate Pleads Guilty and Receives Life Sentence for 2000 Carjacking, Kidnapping and Murder in VermontRead the Press Release
A federal inmate formerly residing in Pennsylvania pleaded guilty today to murder, carjacking and kidnapping, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Christina Nolan for the District of Vermont.
Donald Fell, 38, formerly of Wilkes-Barre, Pennsylvania, pleaded guilty to a federal indictment arising from the Nov. 27, 2000 kidnapping, carjacking and murder of 53-year old Teresca King.
Fell pleaded guilty to all four charges pending against him, including carjacking with death resulting, kidnapping with death resulting, brandishing a firearm in furtherance of a crime of violence and transportation of a firearm by a fugitive from justice. Chief U.S. District Court Judge Geoffrey W. Crawford accepted Fell’s guilty plea in U.S. District Court in Rutland, Vermont. Immediately after the guilty plea, Judge Crawford sentenced Fell to serve life in prison without the possibility of release. Fell also agreed to waive direct appeal.
During the plea, Fell admitted to murdering Rutland man Charles Conway while Fell’s friend and now deceased co-defendant Robert Lee murdered Fell’s mother Debra Fell, 46, in an apartment on Robbins Street in Rutland. The two men then carjacked and kidnapped Teresca King in Rutland and drove into New York State, where they killed Mrs. King. Lee and Fell were natives of Wilkes-Barre, Pennsylvania, who came to Vermont in late 2000.
According to the plea agreement, on the evening of Nov. 26, 2000, defendant Donald R. Fell, Robert Lee, Debra Fell, and Charles Conway were socializing in the apartment of Debra Fell on Robbins Street in Rutland. In the early morning hours of Nov. 27, 2000, Fell attacked Charles Conway with a knife and killed him. Robert Lee attacked Debra Fell with another knife, killing her.
After killing Conway and Debra Fell, Fell and Lee walked together to the Price Chopper grocery store in Rutland, carrying an unloaded Mossberg 12-gauge shotgun, looking for a car in which to leave Vermont. At approximately 3:30 a.m., Fell and Robert Lee confronted Teresca King when she arrived in her Vermont plated Plymouth Neon automobile at the Price Chopper to work her early morning shift. At shotgun point, Fell and Lee stole King’s car keys and forced her into the backseat of her car. The two men then took turns driving the car west out of Vermont into New York State, and then south for several hours. Shortly after dawn on Nov. 27, 2000, the men parked King’s car at the side of the road in rural Dover Plains, New York, and took King into the woods. In a spot not visible from the road, Fell and Lee battered King to death, kicking her in the head and striking her face with a rock as she lay on her back. Leaving King’s body in the woods, Fell and Lee continued driving south in her car.
The two men stopped in their hometown of Wilkes-Barre for a night. In Wilkes-Barre, they stole a pair of Pennsylvania license plates from another Plymouth Neon and put them on King’s car, and discarded King’s Vermont plates. Continuing southwest, the two men paused to refuel in Clarksville, Arkansas, where a local law enforcement officer stopped the Plymouth Neon due to the stolen plates. Fell and Lee were arrested, and the Mossberg 12-gauge shotgun was seized.
The United States extends its sympathy and gratitude to Mrs. King’s family, who closely followed the case since 2000, attending all court hearings and displaying remarkable patience with the extraordinary delays. The United States also extends its sympathy to the family members of Charles Conway. In his plea today, Fell acknowledged that he murdered Mr. Conway while Fell’s deceased co-defendant, Robert Lee, was murdering Fell’s mother, Debra Fell. By encompassing Fell’s role in these murders in the plea, the loss of the lives of Mr. Conway and Mrs. Fell are recognized.
The investigation was conducted by the FBI, the Rutland Police Department, the Vermont State Police, the New York State Police and the Clarksville, Arkansas Police Department. The U.S. Marshal’s Service also worked hard on the case over the years.
The case was prosecuted by Assistant U.S. Attorneys Bill Darrow and Jon Ophardt, along with Trial Attorney Sonia Jimenez of the Criminal Division’s Capital Case Section of the Department of Justice.
U.S. Attorney Christina Nolan commended U.S. Attorney’s Office prosecutors and staff for their commitment and tremendous work on this case for more than 17 years. She noted that Assistant U.S. Attorney Darrow has prosecuted this case with distinction and remarkable dedication over its entire lifespan, and she thanked the Department’s Capital Case Section and its prosecutors for their support and partnership. She acknowledged the tremendous toll that nearly 18 years of litigation has taken on the victims’ families and stated that, in supporting the plea agreement, the United States hoped to bring that protracted ligation to resolution and secure finality for the victims, the public, law enforcement, and all other parties involved.
Federal Inmate Pleads Guilty and Receives Life Sentence for 2000 Carjacking, Kidnapping and Murder in VermontRead the Press Release
WASHINGTON – A federal inmate formerly residing in Pennsylvania pleaded guilty today to murder, carjacking and kidnapping, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Christina Nolan for the District of Vermont.
Donald Fell, 38, formerly of Wilkes-Barre, Pennsylvania, pleaded guilty to a federal indictment arising from the Nov. 27, 2000 kidnapping, carjacking and murder of 53-year old Teresca King.
Fell pleaded guilty to all four charges pending against him, including carjacking with death resulting, kidnapping with death resulting, brandishing a firearm in furtherance of a crime of violence and transportation of a firearm by a fugitive from justice. Chief U.S. District Court Judge Geoffrey W. Crawford accepted Fell’s guilty plea in U.S. District Court in Rutland, Vermont. Immediately after the guilty plea, Judge Crawford sentenced Fell to serve life in prison without the possibility of release. Fell also agreed to waive direct appeal.
During the plea, Fell admitted to murdering Rutland man Charles Conway while Fell’s friend and now deceased co-defendant Robert Lee murdered Fell’s mother Debra Fell, 46, in an apartment on Robbins Street in Rutland. The two men then carjacked and kidnapped Teresca King in Rutland and drove into New York State, where they killed Mrs. King. Lee and Fell were natives of Wilkes-Barre, Pennsylvania, who came to Vermont in late 2000.
According to the plea agreement, on the evening of Nov. 26, 2000, defendant Donald R. Fell, Robert Lee, Debra Fell, and Charles Conway were socializing in the apartment of Debra Fell on Robbins Street in Rutland. In the early morning hours of Nov. 27, 2000, Fell attacked Charles Conway with a knife and killed him. Robert Lee attacked Debra Fell with another knife, killing her.
After killing Conway and Debra Fell, Fell and Lee walked together to the Price Chopper grocery store in Rutland, carrying an unloaded Mossberg 12-gauge shotgun, looking for a car in which to leave Vermont. At approximately 3:30 a.m., Fell and Robert Lee confronted Teresca King when she arrived in her Vermont plated Plymouth Neon automobile at the Price Chopper to work her early morning shift. At shotgun point, Fell and Lee stole King’s car keys and forced her into the backseat of her car. The two men then took turns driving the car west out of Vermont into New York State, and then south for several hours. Shortly after dawn on Nov. 27, 2000, the men parked King’s car at the side of the road in rural Dover Plains, New York, and took King into the woods. In a spot not visible from the road, Fell and Lee battered King to death, kicking her in the head and striking her face with a rock as she lay on her back. Leaving King’s body in the woods, Fell and Lee continued driving south in her car.
The two men stopped in their hometown of Wilkes-Barre for a night. In Wilkes-Barre, they stole a pair of Pennsylvania license plates from another Plymouth Neon and put them on King’s car, and discarded King’s Vermont plates. Continuing southwest, the two men paused to refuel in Clarksville, Arkansas, where a local law enforcement officer stopped the Plymouth Neon due to the stolen plates. Fell and Lee were arrested, and the Mossberg 12-gauge shotgun was seized.
The United States extends its sympathy and gratitude to Mrs. King’s family, who closely followed the case since 2000, attending all court hearings and displaying remarkable patience with the extraordinary delays. The United States also extends its sympathy to the family members of Charles Conway. In his plea today, Fell acknowledged that he murdered Mr. Conway while Fell’s deceased co-defendant, Robert Lee, was murdering Fell’s mother, Debra Fell. By encompassing Fell’s role in these murders in the plea, the loss of the lives of Mr. Conway and Mrs. Fell are recognized.
The investigation was conducted by the FBI, the Rutland Police Department, the Vermont State Police, the New York State Police and the Clarksville, Arkansas Police Department. The U.S. Marshal’s Service also worked hard on the case over the years.
The case was prosecuted by Assistant U.S. Attorneys Bill Darrow and Jon Ophardt, along with Trial Attorney Sonia Jimenez of the Criminal Division’s Capital Case Section of the Department of Justice.
U.S. Attorney Christina Nolan commended U.S. Attorney’s Office prosecutors and staff for their commitment and tremendous work on this case for more than 17 years. She noted that Assistant U.S. Attorney Darrow has prosecuted this case with distinction and remarkable dedication over its entire lifespan, and she thanked the Department’s Capital Case Section and its prosecutors for their support and partnership. She acknowledged the tremendous toll that nearly 18 years of litigation has taken on the victims’ families and stated that, in supporting the plea agreement, the United States hoped to bring that protracted ligation to resolution and secure finality for the victims, the public, law enforcement, and all other parties involved.
Etters Man Indicted for Armed Bank RobberyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brandon Black, age 34, of Etters, Pennsylvania, was indicted on September 26, 2018, by a federal grand jury for armed bank robbery.
According to United States Attorney David J. Freed, the indictment alleges that Black robbed the S&T Bank in Camp Hill, Pennsylvania, with a knife on August 31, 2018, taking approximately $2,823.
The case was investigated by the Federal Bureau of Investigation and the Camp Hill Borough Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for twenty-five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Elma Man Sentenced for Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kevin D. Waczkowski, 34, of Elma, NY, who was convicted of possession of child pornography, was sentenced to 36 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that on April 15, 2016, the Federal Bureau of Investigation’s Violent Crimes Against Children Task Force executed a search warrant at the defendant’s residence and seized several electronic devices. Forensic examination determined that Waczkowski was in possession of thousands of images of child pornography, some of which depicted prepubescent children less than 12 years of age, and some of which depicted images of violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
# # # #EOIR Announces Largest Ever Immigration Judge InvestitureRead the Press Release
The Executive Office for Immigration Review (EOIR) announces the investiture of 46 immigration judges, including two assistant chief immigration judges, marking for the second month in a row the largest class in the agency’s history.
“At this point in history your work is vitally important. The case backlog has reached more than 760,000. Great effort is surely needed,” said Attorney General Jeff Sessions at today’s investiture. “This situation is unacceptable. It cannot continue. Our nation’s chief executive supports you and all who strive to make our immigration system work.”
Attorney General Jeff Sessions appointed these new judges after a thorough application process and welcomed them during a ceremony held Sept. 28, 2018. Chief Immigration Judge MaryBeth Keller presided over the investiture held at the Department of Justice’s Great Hall in Washington, D.C.
“EOIR continues to make great progress in hiring the immigration judges needed to reduce a backlog of more than 760,000 pending immigration court cases,” said James McHenry, Director of EOIR. “Alongside our efforts to improve immigration judge productivity and modernize our information technology systems, growing our immigration judge corps remains a top agency priority.”
In 2017, Attorney General Sessions announced a “streamlined hiring plan” promoting the use of clear deadlines and efficient hiring processes, resulting in a reduction of 74 percent in the time it takes to onboard immigration judges since then. Since the end of January 2017, 128 immigration judges have been sworn in. EOIR anticipates two additional hiring classes this fall which will make for over 100 immigration judges hired during 2018.
“EOIR now has 395 immigration judges, an increase of 30 percent since January 2017,” said McHenry. “While we are pleased to welcome this historic class of judges, we are not done and expect additional hiring before the end of this year.”
The names of each new judge along with their assigned courts and biographical information is found in a notice issued by EOIR here.Duquesne Residents Charged with Violating Drug Laws following Investigation by DEA and Local PoliceRead the Press Release
PITTSBURGH, PA - Two residents of Duquesne, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on September 18 and unsealed today, named Donte Taylor, age 36,and Ericka Smith, age 38, as defendants.
According to the indictment presented to the court, on or about May 10, 2018, Taylor possessed with intent to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance, and quantities of mixtures and substances containing detectable amounts of cocaine, a Schedule II controlled substance, heroin, a Schedule I controlled substance, fentanyl, a Schedule II controlled substance and marijuana, a Schedule I controlled substance. The indictment charges Smith with aiding and abetting Taylor with commission of the offense.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the City of Duquesne Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Sentenced to Prison for his Involvement in National Conspiracy to Sell Identity Documents to Illegal AliensRead the Press Release
A Dominican national was sentenced to prison today for his role in a scheme to sell the identities of Puerto Rican U.S. citizens and corresponding identity documents to individuals illegally residing in the United States. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service Chicago Division made the announcement.
Reynaldo Rodriguez-Canario, aka Reinaldo Rodriguez, Reynaldo Rodriguez, Reinaldo Canario, Jose Almonte, Jose Martinez, Matatan and Ciego, 47, a citizen of the Dominican Republic residing in Puerto Rico, was sentenced to serve 57 months in prison followed by three years of supervised release by U.S. District Judge Aida M. Delgado-Colon of the District of Puerto Rico. Rodriguez-Canario pleaded guilty on Feb. 16, to conspiracy to possess and transfer identification documents, conspiracy to encourage an alien to reside in the United States for financial gain, and aggravated identity theft.
“Rodriguez-Canario and his co-conspirators sold identity documents to illegal aliens knowing that those documents would be used to commit crimes, including Social Security fraud,” said Assistant Attorney General Benczkowski. “The Department of Justice and its law enforcement partners will not tolerate criminal aliens who undermine the integrity of the U.S. immigration system. We will aggressively enforce U.S. immigration laws and seek stiff penalties against those who violate them.”
“Identity theft poses a severe threat to public safety by potentially enabling those with criminal intent to travel to or remain in the United States,” said HSI Executive Associate Director Benner. “HSI will continue to utilize its unique authorities, working closely with our law enforcement counterparts, to combat this crime and ensure justice for the victims.”
“The events of today serve as yet another example of the unending dedication of the Postal Inspection Service and its law enforcement partners to halt the devastating effects of identity theft,” said Inspector in Charge Goldberg. “Those who engage in this type of fraud must learn they cannot escape detection and will be brought to justice. The sentencing of Rodriguez-Canario is a victory for all who suffered financial and emotional distress because of his actions.”
According to admissions in his plea agreement, Rodriguez-Canario obtained identity documents of Puerto Rican U.S. citizens, usually consisting of birth certificates, social security cards and driver’s licenses, and shipped them to co-conspirators in the United States. Further, the plea agreement states that his co-conspirators sold social security cards and corresponding Puerto Rican birth certificates to individuals illegally residing on the mainland United States for prices ranging from $500 to $1,300 per set. The defendant admitted that the co-conspirators used money transfer services and the U.S. mail to complete their illicit transactions. Rodriguez-Canario also admitted that he knew that the customers who purchased the identity documents intended to commit social security fraud and other criminal offenses.
ICE’s Homeland Security Investigations (HSI) Chicago and the U.S. Postal Inspection Service led the investigation with assistance from HSI San Juan, Puerto Rico. The HSI Attaché Office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support, with assistance from ICE and U.S. Postal Inspection Service offices around the country.
Trial Attorneys Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website at: www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at: www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
Colombian Veterinarian Pleads Guilty in Brooklyn Federal Court to Heroin Importation ConspiracyRead the Press Release
Andres Lopez Elorez pleaded guilty today before United States Magistrate Judge Robert M. Levy in federal court in Brooklyn to conspiring to import heroin into the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, announced the guilty plea.
Elorez and his co-conspirators, based in Colombia, smuggled heroin into the United States using various methods to conceal narcotics from law enforcement, including the surgical implantation of liquid heroin into the bellies of puppies. When the puppies arrived in the United States from Colombia, the heroin was surgically removed from their bodies. Between September 8, 2004 and January 1, 2005, Elorez and his co-conspirators imported one kilogram or more of heroin into the United States. Elorez was extradited from Spain to the United States in May 2018.
When sentenced, Elorez faces a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment. Upon completion of his sentence, Elorez faces deportation from the United States.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan D. Reilly and Alicia N. Washington are in charge of the prosecution.
The Defendant:
ANDRES LOPEZ ELOREZ
Age: 39
Country of Birth: ColombiaE.D.N.Y. Docket No. 5-CR-835 (S-1) (SJ)
Buffalo Man Charged with Selling Fentanyl That Caused Serious Bodily InjuryRead 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 an indictment Julian Beavers, a/k/a Ock, a/k/a Marcel Ceasar, a/k/a BJ, 32, of Buffalo, NY, with possession with intent to distribute and distribution of fentanyl and acetyl fentanyl causing serious bodily injury, conspiracy to possess with intent to distribute heroin, furanyl fentanyl, acetyl fentanyl, and fentanyl, possession with intent to distribute, and distribution of, heroin, fentanyl, and furanyl fentanyl. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorneys Emmanuel O. Ulubiyo and Michael J. Adler, who are handling the case, stated that according to the indictment and a previously filed complaint, the Drug Enforcement Administration and the Cheektowaga Police Department had been conducting an investigation into the narcotics trafficking activities of the defendant, a heroin and fentanyl distributor with a large customer base in the Buffalo
On September 19, 2017, Beavers sold acetyl fentanyl and fentanyl, causing serious bodily injury to an individual identified as E.R.
On November 21 and November 28, 2017, investigators conducted two undercover purchases of heroin from Beavers. The defendant obtains heroin and fentanyl from an unidentified source of supply.
Beavers is scheduled to be arraigned on October 1, 2018 at 10:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Border Patrol Agent Arrested for Firearms OffensesRead the Press Release
TUCSON, Ariz. – On Sept. 25, 2018, Ramon Antonio Monreal-Rodriguez, 37, of Vail, Ariz., a U.S. Border Patrol agent assigned to the Three Points, Ariz. station, was arrested for conspiracy to make false statements in connection with the acquisition of firearms and aiding and abetting the commission of such offenses.
The indictment alleges that Monreal conspired to unlawfully acquire firearms on behalf of other individuals. As part of the conspiracy, Monreal and another co-defendant provided cash and instructions to a third co-defendant to buy firearms from licensed firearms dealers. The purchasing defendant would then make false statements and representations to the firearms dealers. Monreal has been employed as a U.S. Border Patrol agent for approximately ten years, and resigned upon his arrest.
The investigation in this case is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-18-01905-001-TUC-JAS
RELEASE NUMBER: 2018-124_Monreal-Rodriguez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Amite Woman Pleads Guilty to Conspiring to Obtain Forced Labor from Woman with DisabilitiesRead the Press Release
Bridget Lambert, 21, pleaded guilty on Thursday, Sept. 27 in the Eastern District of Louisiana to one count of a forced labor conspiracy for conspiring with members of her family to obtain forced labor from D.P., a woman with cognitive disabilities.
At the plea hearing, Lambert admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, she conspired with other members of her family to obtain D.P.’s uncompensated household labor and services by a number of means, including by force and threat of force. Lambert admitted that, as part of the conspiracy, she and the other conspirators forced D.P. to live in a locked shed in the backyard and to perform housework and yard work in exchange for food and water. The defendant admitted that the conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure her continued compliance with the family’s orders. The defendant further admitted that, on one occasion, she advanced the conspiracy by striking D.P. in the head with a wooden board, causing D.P. to bleed from her head, and on another occasion advanced the conspiracy by holding D.P.’s arm in place so that a fellow conspirator could punish D.P. by burning her with a cigarette lighter.
“Lambert conspired to brutally coerce a vulnerable victim with disabilities to work long hours in despicable conditions and no monetary compensation,” said Acting Assistant Attorney General John Gore. “The Department of Justice continues to combat human trafficking by forced labor and today’s guilty plea reflects our commitment to seeking justice for victims.”
“Human trafficking is modern day slavery and the U.S. Attorney’s Office is committed to seeking justice on behalf of all victims including vulnerable individuals such as D.P.,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “We will continue to partner with federal, state and local law enforcement to hold these human traffickers accountable for their crimes.”
“FBI New Orleans strives every day to protect the civil rights of all, however we make a concerted effort to defend those who cannot defend themselves,” said Special Agent in Charge Eric J. Rommal for the FBI New Orleans Field Office. “In this case the offender’s actions are inexcusable.”
Lambert will be sentenced on Dec. 20, and faces a maximum sentence of five years in prison.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Amite Woman Pleads Guilty to Conspiring to Obtain Forced Labor from Woman with DisabilitiesRead the Press Release
Bridget Lambert, 21, pleaded guilty on Thursday, Sept. 27 in the Eastern District of Louisiana to one count of a forced labor conspiracy for conspiring with members of her family to obtain forced labor from D.P., a woman with cognitive disabilities.
At the plea hearing, Lambert admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, she conspired with other members of her family to obtain D.P.’s uncompensated household labor and services by a number of means, including by force and threat of force. Lambert admitted that, as part of the conspiracy, she and the other conspirators forced D.P. to live in a locked shed in the backyard and to perform housework and yard work in exchange for food and water. The defendant admitted that the conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure her continued compliance with the family’s orders. The defendant further admitted that, on one occasion, she advanced the conspiracy by striking D.P. in the head with a wooden board, causing D.P. to bleed from her head, and on another occasion advanced the conspiracy by holding D.P.’s arm in place so that a fellow conspirator could punish D.P. by burning her with a cigarette lighter.
“Lambert conspired to brutally coerce a vulnerable victim with disabilities to work long hours in despicable conditions and no monetary compensation,” said Acting Assistant Attorney General John Gore. “The Department of Justice continues to combat human trafficking by forced labor and today’s guilty plea reflects our commitment to seeking justice for victims.”
“Human trafficking is modern day slavery and the U.S. Attorney’s Office is committed to seeking justice on behalf of all victims including vulnerable individuals such as D.P.,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana. “We will continue to partner with federal, state and local law enforcement to hold these human traffickers accountable for their crimes.”
“FBI New Orleans strives every day to protect the civil rights of all, however we make a concerted effort to defend those who cannot defend themselves,” said Special Agent in Charge Eric J. Rommal for the FBI New Orleans Field Office. “In this case the offender’s actions are inexcusable.”
Lambert will be sentenced on Dec. 20, and faces a maximum sentence of five years in prison.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Abbeville felon sentenced to one year in prison for possessing pistolRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that an Abbeville man was sentenced to 12 months and one day in prison for illegally possessing a pistol.
Carlin Jerrid Montgomery, 38, of Abbeville, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the July 2, 2018 guilty plea, law enforcement agents executed a search warrant at Montgomery’s home on April 28, 2017 and found a .45-caliber pistol and ammunition. The handgun was concealed in the exterior shell of a black metal stereo tuner lying on the floor under Montgomery’s bedroom window. The defendant was convicted on June 11, 2002 for possession of crack cocaine and is prohibited from possessing a firearm.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Homeland Security Investigations, U.S. Customs and Border Protection, and ATF conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
3 New Haven Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that three New Haven men have pleaded guilty in Hartford federal court to various charges related to their roles in a violent street gang.
According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating approximately 40 unsolved shootings in New Haven and Hamden. Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016. The investigation has revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging MILTON WESTLEY, CLIFFORD BRODIE, SEDALE PERVIS, DEJUAN WARD, MICHAEL BELLE, and MICHAEL VIA with racketeering, attempted murder, firearm and narcotics trafficking offenses. The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.
On September 21, 2018, SEDALE PERVIS, also known as “Scope,” 26, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of possession of a firearm in furtherance of a drug trafficking crime. In pleading guilty, Pervis admitted that, on September 2, 2016, he possessed a distribution quantity of marijuana, and also possessed a loaded Ruger model P85, 9mm handgun. During the investigation, law enforcement also recovered a .380 caliber firearm that contained Pervis’s DNA.
Pervis admitted that he knew that other GSB members planned to use the 9mm firearm to shoot an individual on May 27, 2016. Ballistics from both the 9mm and .380 firearm were found at the scene of the shooting on that date. The investigation revealed that the 9mm and .380 caliber firearms also were used in other shootings.
On September 26, 2018, CLIFFORD BRODIE, also known as Cliff G,” 21, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of brandishing of a firearm during and in relation to a crime of violence. In pleading guilty, Brodie admitted that he and other GSB members sold cocaine and heroin. He also admitted that he was present and brandished a firearm at a February 6, 2016, shooting of rival gang members during which a bystander was shot and almost died. He further admitted that, on April 4, 2016, after rival gang members were shot by a fellow GSB member, he drove the assailants home.
On September 27, 2018, MICHAEL BELLE, also known as “MB,” 20, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity. In pleading guilty, BELLE admitted that he was present at the January 23, 2016, shooting at a rival gang member’s house. He also admitted that he and other GSB members agreed to shoot an individual on April 3, 2016, because the individual had information that led to the conviction of a GSB member.
The charge of conspiracy to engage in a pattern of racketeering activity carries a maximum term of imprisonment of 20 years. As to Pervis, the charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory consecutive prison term of five years. As to Brodie, the charge of possession of a firearm during an in relation to a crime of violence carries a mandatory consecutive prison term of seven years.
Milton Westley, also known as “Reese,” and Michael Via, also known as “Mike Live,” previously pleaded guilty to related charges and await sentencing.
All of the defendants who have pleaded guilty are detained pending sentencing.
Dejuan Ward is awaiting trial. As to Ward, U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
This investigation is being conducted by ATF and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.
"Froggy Robber" Indicted in Federal Court on Five ChargesRead the Press Release
PORTLAND, Ore. – Diego Sanchez-Lopez, 23, of Clark County, Washington, known locally as the “Froggy Robber,” made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman.
The court previously unsealed a five-count indictment alleging Sanchez-Lopez robbed five Portland-area banks between November 2017 and April 2018. Sanchez-Lopez faces federal bank robbery charges in violation of 18 U.S.C. §§ 2113(a) and (d) for the following events:
- On November 27, 2017, $9,710 was stolen from the Albina Community Bank located at 2002 NE Martin Luther King Jr. Boulevard in Portland.
- On December 27, 2017, $26,000 was stolen from the Wells Fargo Bank located at 8699 SW Main Street in Wilsonville, Oregon.
- On January 11, 2018, $11,580.99 was stolen from the Wells Fargo Bank located at 6785 Beaverton Hillsdale Highway in Beaverton, Oregon.
- On January 30, 2018, $6,720 was stolen from the U.S. Bank located at 52313 Columbia River Highway in Scappoose, Oregon.
- On April 30, 2018, 33,357 was stolen from the Wells Fargo Bank located at 7200 NE Butler Street in Hillsboro, Oregon.
In each of the above listed events, Sanchez-Lopez is accused of using a knife to facilitate the robbery. In total, he is alleged to have stolen more than $87,000 from banks insured by the Federal Deposit Insurance Corporation (FDIC).
Sanchez-Lopez was detained pending trial. A four-day jury trial is scheduled for November 27, 2018 before U.S. District Court Judge Michael W. Mosman.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
27 September 2018
“BMB” Street Gang Member Sentenced for Murder of Bronx Teenager and Other Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DONQUE TYRELL, a/k/a “Polo Rell,” a member of a violent street gang in the Bronx called the “Big Money Bosses” (“BMB”), was sentenced today on racketeering, murder, and other charges. TYRELL was sentenced to the mandatory minimum sentence of life plus 55 years in prison for, among other crimes, aiding and abetting the June 22, 2014, murder of 17-year-old Keshon Potterfield. TYRELL was sentenced by United States District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey S. Berman said: “As a result of the BMB gang’s wave of violence, Keshon Potterfield – a teenager, just beginning his life – was senselessly killed. Today, the defendant has been sentenced for his role in this terrible murder. We will continue to work with our law enforcement partners to prevent gang violence and keep our streets safe.”
TYRELL was convicted of murder in aid of racketeering, racketeering conspiracy, and other offenses in connection with his membership in BMB after a six-day jury trial.
According to court documents, as well the evidence at trial and statements made during other public proceedings in this case:
BMB is a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx – including murders, attempted murders, and armed robberies – and sold crack cocaine, marijuana, and oxycodone.
TYRELL was a member of BMB. On June 22, 2014, TYRELL and other members of BMB attended a birthday party in the backyard of a residence on East 232nd Street in the Bronx. TYRELL obtained a gun from an associate at the party, pointed it in Keshon Potterfield’s direction, and then passed it to another BMB member who shot and killed Potterfield in connection with a gang rivalry. TYRELL celebrated Potterfield’s murder in public Facebook postings and in rap music videos posted on YouTube in which he taunted rival gang members and threatened future violence.
In addition to the murder in aid of racketeering conviction, TYRELL was convicted of conspiring to commit racketeering as a result of his membership in BMB, conspiring to sell narcotics, selling narcotics within 1000 feet of schools and playgrounds, using firearms in connection with the gang and drug offenses, an attempted assault with a firearm in connection with his BMB membership, and attempting to rob a livery cab driver in the Bronx by hitting him in the head with a firearm.
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TYRELL was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s (“NYPD”) Bronx Gang Squad, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx.
Mr. Berman praised the outstanding work of the NYPD’s Bronx Homicide Task Force, the NYPD’s 47th Precinct Detective Squad, the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Hagan Scotten, Jessica Feinstein, Drew Skinner, and Allison Nichols are in charge of the prosecution.
Woman Pleads Guilty to Embezzling from her Tulsa EmployerRead the Press Release
United States Attorney Trent Shores announced that Kristiana P. Collins, 44, formerly of Tulsa, pleaded guilty Thursday to wire fraud and to signing a false tax return.
In a plea hearing, Collins admitted to embezzling funds from her former employer between 2008 and 2014, when she responsible for paying the credit card accounts and handling bookkeeping operations at a company in west Tulsa.
“Kristiana Collins fraudulently took thousands of dollars from her employer. Embezzlement schemes like this cause serious financial consequences to local businesses,” said U.S. Attorney Trent Shores. “And the damage often isn’t limited to financial injury. When a trusted employee steals from company coffers, it collaterally impacts the firm's culture, morale and trust. My office strives to protect the integrity of the workplace by ensuring there is an accounting for criminals who embezzle from businesses in northeastern Oklahoma.”
While working in her position, Collins secretly obtained two Visa cards for herself under the company’s account, which was supposed to be used by various approved employees for company purposes. As part of her scheme, Collins made purchases for her own personal gain on both credit cards and later used company funds to pay the billed charges.
The plea agreement focused on a $4, 971.24 wire transfer, caused by Collins in 2013, made from the company’s bank account to the credit card company. Collins admitted that some of the purchases on the credit card statement were made fraudulently. She further agreed that she signed her 2013 tax return knowing it did not disclose the material income she had obtained through the use of her employer’s credit card.
Collins will be sentenced on January 7, 2019, at 10:30 a.m., by United States District Court Judge Claire V. Eagan. She faces a maximum sentence of 20 years in prison and three years supervised release for wire fraud as well as three years in prison and one year supervised release for knowingly signing a false tax return.
Investigative agencies involved in this case include the Creek County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Treasury, Internal Revenue Service—Criminal Investigation Division. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Washington Man Sentenced to over 12 Years in Prison for Meth OffenseRead the Press Release
MISSOULA - Salomon Mejia Preciado, a 36-year-old resident of Yakima, Washington, was sentenced today to 151 months in prison to be followed by 5 years of supervised release. Preciado pleaded guilty to conspiracy to distribute methamphetamine. Preciado is a former Federal felon and was prosecuted in the Eastern District of Washington and sentenced in 2003 to ten years in prison. U.S. District Judge Donald W. Molloy handed down the sentence.
In early September of 2017, law enforcement set up an undercover operation in which they purchased one pound of methamphetamine from Preciado in Missoula, Montana. Later in September, Preciado was apprehended in his vehicle with six pounds of methamphetamine while traveling back to Missoula for another deal. The methamphetamine totaled more than 3,000, grams which is the equivalent of more than 24,000 doses which would have otherwise reached users in Montana.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Missoula Drug Task Force.
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.
Virginia Man Pleads Guilty to Production of Child PornographyRead the Press Release
A Woodbridge, Virginia man pleaded guilty today to one count of production of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, made the announcement.
David Edward De Vere, 53, a former Equal Employment Specialist at the U.S. Patent and Trademark Office, pleaded guilty today before U.S. District Judge Liam O’Grady of the Eastern District of Virginia to production of child pornography. According to admissions made in connection with his plea, in March 2017, De Vere met and began communicating online with a 16-year-old minor living in Colorado. During the course of these communications, De Vere induced the minor to take and send him images of the minor engaging in sexually explicit conduct. Additionally, in April 2017, De Vere travelled from Virginia to Colorado in an attempt to engage in sexual activity with the minor, but failed to make contact with the minor.
De Vere is scheduled to be sentenced on Jan. 11, 2019.
The case is being investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is comprised of agents of the FBI, U.S. Marshals Service, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorney William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kellen S. Dwyer are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Violent Bank Robber Sentenced to 30 Years in Federal PrisonRead the Press Release
CHICAGO — A Chicago man has been sentenced to 30 years in federal prison for robbing a North Side bank at gunpoint.
JON GILES, 39, robbed a North Community Bank branch in Chicago’s Lincoln Park neighborhood on March 20, 2009. After casing the building from the outside, Giles entered the bank and pointed a loaded gun at a female employee who was sitting at a desk. He then forced a teller to fill a Ziploc bag with cash, screaming, “Give me the money or I will shoot her right now!” The teller complied and filled the bag with approximately $1,153. Giles then ordered the employee and the teller to lie face down on the floor while he fled the bank.
Giles was arrested in June 2009 on unrelated armed robbery charges and he has remained in custody. A federal jury earlier this year convicted him on bank robbery and firearm charges. U.S. District Judge Ronald A. Guzman on Wednesday imposed a 360-month sentence and ordered that Giles receive credit for time already served.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by the Chicago Police Department.
“The defendant is a manipulative, violent, career criminal who appears unable to stop harming other members of society by committing violent crimes,” Assistant U.S. Attorneys Christopher V. Parente and Elizabeth Pozolo argued in the government’s sentencing memorandum.
Both the bank employee and the teller testified about their ordeals at trial. The employee described how terrified she felt when Giles pressed the gun into her side and threatened to kill her. She recalled thinking that she would never see her children again.
Evidence at trial revealed that authorities matched Giles’s DNA to a glove he wore during the bank robbery.
USAO NDTX Weekly Roundup -- 9/27/18Read the Press Release
INDICTMENT* – James Maraia, 70
On Sept. 25, a federal grand jury indicted James Lawrence Maraia of Cedar Hill on child pornography charges. He allegedly used a peer-to-peer computer program to share and collect child pornography over a five year period. If convicted, Mr. Maraia faces up to 20 years for each count. The FBI investigated.INDICTMENT* - Larry Rider & Kevin Harris
On September 25, in two seperate cases, a federal jury indicted Larry Rider and Kevin Harris, both Dallas residents, for felon in possession of a firearm. If convicted, both men face up to 10 years in federal prison. The Dallas Police Department and FBI investigated the case.
INDICTMENT* – David Stallworth, 36
On Sept. 26, a federal grand jury indicted Aaron David Stallworth, aka “Ace,” for attempted carjacking. He allegedly used violence and intimidation to steal a 2010 Chevrolet Traverse. If convicted, Mr. Stallworth faces up to 45 years in federal prison. This case was brought as part of the U.S. Attorney’s Project Safe Neighborhood initiative, which brings together federal and local law enforcement to target the community’s most pressing crime problems. The Texas Rangers investigated.INDICTMENT* – Jesus Gonzales, 18
On Sept. 26, a federal grand jury indicted Jesus Antonio Gonzalez of Irving on drug trafficking and firearms charges. On August 20, Mr. Gonzales -- who was allegedly dealing cocaine and marijuana out of a Park Square apartment -- fired an AR-15 during his trafficking. Four days later, he was discovered carrying an AK-47 while engaged in drug trafficking. If convicted, Mr. Gonzalez faces up to life in federal prison. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Irving Police Department investigated the case.PLEA – Madison Brekke, 21
On Sept. 27, Madison Elizabeth Brekke of Coppell plead guilty to possession of a firearm by an unlawful user of a controlled substance. An admitted addict, Ms. Brekke confirms that in early August, she was using heroin, a Schedule I controlled substance. At that time, she admitted, she possessed a Sig Sauer SP2022 handgun. She now faces up to 10 years in federal prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Coppell Police Department investigated.PLEA – Kenntorro Armstrong, 24
On Sept. 27, Kenntorro Armstrong of Fort Worth pleaded guilty to delay or destruction of mail. Armstrong admits that while a postal employee, he detained a first-class envelope addressed to a customer in Fort Worth. He now faces up to 5 years in prison and a fine of up to $250,000. The USPS - Office of Inspector General investigated.* An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two Gresham Men Sentenced to Federal Prison for Defrauding Investors of $2.5 MillionRead the Press Release
PORTLAND, Ore. – Theodore B. Holbrook, 37, and George J. Arauz, Jr., 45, both of Gresham, Oregon, were sentenced today to 36 months in federal prison for defrauding 50 investors of nearly $2.5 million using a sham energy technology start-up company. Holbrook and Arauz were also ordered to pay more than $2.3 million each in restitution and will be on supervised release for three years after completing their prison sentences.
According to court documents, between 2008 and 2015, Holbrook and Arauz used their companies, Prisidio Capital, LLC, Altius Capital Management, LLC and Altius Capital Opportunities Fund, L.P., to solicit investments to develop energy technologies via a start-up company. In return, they gave investors Prisidio stock certificates and promised to convert these shares into the start-up company’s shares when it went public. In addition to funding the start-up company, Holbrook and Arauz told investors that their money would be invested in other emerging technology companies or the stock market directly.
Instead of using investor money as promised, Holbrook and Arauz diverted it for their own personal use, funding living expenses, travel, cars, credit card bills, medical bills, lulling payments and other expenses to keep the scheme going. The pair did not disclose this diversion of funds to their investors and, instead, actively took steps to conceal it. Holbrook and Arauz sent investors promotional and investment materials to falsely represent the nature and status of their investment.
Holbrook and Arauz both previously pleaded guilty to one count each of wire fraud and money laundering on March 7, 2018 and October 31, 2017, respectively.
This case was investigated by IRS Criminal Investigation. It was prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.
Two Bell Garden Locos Street Gang Members Sentenced for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced the sentencings of Grandview, Washington residents, Fidel Gonzalez-Molina, Jr., age 24, and Edvin Daniel Osorio, age 21, following their pleas of guilty to being previously convicted felons in possession of ammunition and a firearm. Gonzalez-Molina and Osorio are members of the “Bell Garden Locos” street gang. United States District Judge Salvador Mendoza, Jr. sentenced Gonzalez-Molina for unlawfully possessing ammunition to a 15-month term of imprisonment, to be followed by a 3-year term of court supervision following release from Federal prison. United States District Judge Stanley A. Bastian sentenced Osorio for illegally possessing a firearm to a 6-month term of home confinement, followed by a 3-year term of probation.
According to information disclosed during court proceedings, a Sunnyside Police Department officer initiated a stop on a vehicle with four occupants after receiving reports that someone in the vehicle was target shooting at street signs near Harrison and Sheller Road. The driver, Gonzalez-Molina, told officers he was a former member of the “Bell Garden Locos” street gang. Osorio, the front-seat passenger, was known by law enforcement to be a member of the same gang. During the stop, officers observed a plastic shopping bag fly from the passenger compartment. Officers retrieved it and found a sales receipt from a local sporting goods store for the recent purchase of .357 caliber ammunition. After obtaining consent to search the vehicle, officers found a Smith and Wesson .357 caliber revolver wrapped in a blue bandana inside the glove compartment. Officers then contacted the sporting goods store and reviewed its security video as it related to the time stamp on the sales receipt. The store’s video revealed Gonzalez-Molina and Osorio were involved in purchasing the ammunition.
Joseph H. Harrington said, “Convicted felons have no right to possess firearms and ammunition. If someone chooses to violate federal law, they will be prosecuted. I commend the outstanding work of the FBI, ATF, and Sunnyside Police Department in investigating this case.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Sunnyside Police Department, the Yakima Resident Office of the Federal Bureau of Investigation, and the Yakima Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
Two Armed Defendants Charged in Connection with Marijuana Manufacturing Grow Site in Mendocino National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Gregorio Moreno-Valencia, 26, and Alexandro Ayala-Acosta, 45, charging them in connection with a marijuana grow operation in the Mendocino National Forest in Tehama County, possession of firearms in furtherance of drug trafficking crimes, and the depredation of United States property, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement personnel arrested both defendants on August 27, 2018. Moreno-Valencia was armed with a Colt .22 caliber semi-automatic pistol and Ayala-Acosta was armed with a Mossberg short-barrel 12 gauge pump shotgun.
This case is the product of an investigation by the U.S. Forest Service, Tehama County Sheriff’s Department, California Department of Fish & Wildlife, California National Guard, and California Department of Justice.
If convicted of the marijuana counts, each defendant faces a mandatory minimum penalty of 10 years up to a maximum of life in prison and a $10 million fine. The maximum penalty for possession of a firearm in furtherance of drug trafficking crimes is a mandatory consecutive five years to life in prison and a fine of $250,000. The maximum penalty for possession of a short-barrel shotgun in furtherance of drug trafficking crimes is a mandatory consecutive 10 years to life sentence and a fine of $250,000. If convicted of depredation against United States property, each defendant faces a maximum 10 years in prison and a $250,000 fine. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twenty-Six Count Indictment Charges Convicted Sex Offender with Computer Hacking, Producing Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging BARTON GEORGE SCOTT, 35, with child pornography and computer hacking offenses. SCOTT made his initial appearance on September 25, 2018, before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota.
As alleged in the indictment, between April 30 and August 8, 2017, SCOTT gained unauthorized access to the Snapchat accounts of 25 victims. In several cases, SCOTT used extortionate tactics in an attempt to obtain sexually explicit images and videos from the victims, many of whom were minors.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the FBI at (763) 569-8000. Callers may remain anonymous.
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. Attorney’s 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.
This case is the result of an investigation conducted by the FBI, the Carver County Sheriff’s Office, the Stillwater Police Department, the Washington County Sheriff’s Office, the St. Croix County Sheriff’s Office, New Richmond Police Department, and the Anne Arundel County Sheriff’s Office.
Assistant U.S. Attorney Katharine T. Buzicky is prosecuting the case.
Defendant Information:
BARTON GEORGE SCOTT, 35
City of residence unknown
Charges:
- Production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
- Attempted production of child pornography, 6 counts
- Fraud and related activity in connection with computers 18 U.S.C. § 1030(a)(7)(B), 6 counts
- Fraud and related activity in connection with computers 18 U.S.C. § 1030(a)(2)(C), 12 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Three Mexican Nationals Indicted for Trafficking Methamphetamine and Heroin in Tehama CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Miguel Alverez Cervantes, 53, Maria Cervantes-Echevarria, 34, and Marta Jiminez Lopez, 26, all Mexican nationals living in Los Molinos, charging them with conspiracy to distribute methamphetamine and possessing methamphetamine and heroin for distribution, U.S. Attorney McGregor W. Scott announced. The indictment also charges Cervantes-Echevarria and Lopez with possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Maria Cervantes-Echevarria and Marta Lopez used their home in Los Molinos as a stash location for narcotics, firearms, and cash. Court records allege that in January 2018, the two women delivered a spare tire to a third party that was later found to contain approximately 22 pounds of methamphetamine. In addition, an undercover agent purchased over three pounds of methamphetamine from Miguel Cervantes during three controlled buys in August and September 2018. When agents searched Cervantes-Echevarria and Lopez’s home on September 17, 2018, they found three handguns and over $44,000 in cash in the master bedroom. Agents found over 34 pounds of methamphetamine, three pounds of heroin, and an AR-15-style rifle elsewhere on the property.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Land Management, the Tehama Interagency Drug Enforcement (TIDE) task force, the Shasta Interagency Narcotics Task Force (SINTF), and the Siskiyou Unified Major Investigations Team (SUMIT), with special assistance from the Federal Bureau of Investigation and the California Highway Patrol.
If convicted of the conspiracy charge or any of the narcotics charges, each defendant faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of possessing a firearm in furtherance of a drug‑trafficking crime, Cervantes-Echevarria and Lopez each face a mandatory five-year term in prison, which would run consecutive to any other sentence imposed in this case. Any sentence 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 several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Taylor County woman admits to bank fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Karen Kinsley, of Grafton, West Virginia, has admitted to taking out loans and opening accounts in bank customers’ names without their knowledge, United States Attorney Bill Powell announced.
Kinsley, age 46, pled guilty to one count of “Bank Fraud.” Kinsley admitted to originating several loans in bank customers’ names without their consent or knowledge, reopening closed checking and saving accounts without the customers’ knowledge, and used some of the loan proceeds for personal use and some for payments on other fraudulent loans. Kinsley committed the crime while she was a branch manager of the Clear Mountain Bank inside the Kroger store in Sabraton, Monongalia County from June 2014 to September 2017.
The government is seeking a money judgement in the amount of $170,219.19.
Kinsley faces up to 30 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Monongalia County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Statement of Jonathan D. Brightbill, Deputy Assistant Attorney General, Environment and Natural Resources Division, Before the House Oversight and Government Reform Subcommittee on the Interior, Energy, and EnvironmentRead the Press Release
Remarks as Prepared for Delivery
Chairman Gianforte, Ranking Member Plaskett, and Members of the Subcommittee, thank you for the opportunity to discuss this important topic. I also would like to recognize and thank Chairman Gowdy and/or Ranking Member Cummings.
I have the great privilege to serve as a Deputy Assistant Attorney General in the Environment and Natural Resources Division in the Department of Justice. The Division has broad responsibilities: enforcing the nation’s civil and criminal pollution control laws; representing the United States in matters concerning the stewardship of the nation’s environment and natural resources, wildlife, and public lands; and litigating cases concerning the resources and rights of Indian tribes and their members.
I personally supervise a stellar team of lawyers and other staff responsible for defending rulemakings and policies arising under a broad range of pollution control statutes and for acquiring property on behalf of the federal government.
The Division routinely handles attorney’s fee claims. Congress has authorized private-party litigation against federal agencies and has generally established two avenues by which opposing parties may seek the payment of attorney’s fees through taxpayer dollars in our cases.
First, the citizen suit and judicial review provisions in most environmental protection and some natural resources laws expressly provide for recovery of attorney’s fees against the United States.
Second, attorney’s fees may be payable under the Equal Access to Justice Act (known as “EAJA”) when not available under these statutes.
Under the leadership of Attorney General Sessions, ENRD is strongly committed to the rule of law and takes seriously the solemn obligation to protect taxpayer dollars. We closely scrutinize all demands for attorney’s fees to ensure that they are lawful, justified, and reasonable.
The Division does not, however, and cannot, challenge the payment of attorney’s fees in all cases. Some fee applications may be substantially justified and reasonable. But where it is appropriate to contest a claim of fees, my written statement chronicles some of our recent efforts in controlling their costs.
I would like to highlight five recurrent challenges the Division faces in handling attorney’s fee claims. Each is discussed in more detail in my written statement.
In some areas, it seems fee litigation and recoveries may have moved beyond Congress’s original intentions for providing reasonable access to the courts, without encouraging excessive litigation and enriching lawyers. Federal courts also are not consistent in their standards for awarding fees across the country.
(1) First, ineffective limits on hourly fee rates. Because most attorney-fee provisions do not contain a maximum hourly rate, we frequently see lawyers seek taxpayer-funded fee payments with exorbitant hourly rates. While EAJA does contain a presumptive cap on attorney’s fee payments of $125 per hour (plus inflation adjustment), it is subject to enhancement based on special factors.
In our experience, courts routinely award EAJA fees at more than $500 per hour to as high as $700 per hour.
(2) Second, no case cap. Most statutes under which ENRD litigates do not contain a maximum amount of fees the United States will subsidize on a matter. The Division has paid a number of multi-million dollar attorney fee awards in the past ten years.
(3) Third, low eligibility requirements. Under EAJA, large tax-exempt organizations with net worth exceeding $200 million can be eligible for—and have received—taxpayer-funded fees. And there are no qualification requirements at all under the environmental protection and natural resource statutes noted in my written statement.
As the D.C. Circuit has recognized, “Congress did not intend to subsidize the purchase of legal services by large entities easily able to afford legal services.” Yet many organizations are funded by outside contributions, and don’t require taxpayer subsidies.
(4) Fourth, fees on fees. Because parties can recover attorney’s fees for seeking payment of attorney’s fees, there is incentive for parties to claim exorbitant fees and then litigate the issue. In deciding whether to challenge a claim for attorney’s fees, the Division must weigh the cost and risk of the prospect of “fees on fees” if it is not entirely successful opposing.
(5) Fifth, inconsistent burden of proof. The United States is frequently successful defending litigation. However, courts have inconsistently interpreted the facially-neutral language of attorney’s fee provisions to more-readily permit attorney’s fee payments to prevailing plaintiffs than the United States.
Addressing these challenges would enhance the consistency, predictability, transparency, and efficiency of fee awards under the environmental statutes.
I would be happy to answer your questions concerning these challenges.
Sophia Monique Zayas Sentenced to 15 Years for Conviction on Child Abuse Resulting in Great Bodily Harm Charge That Resulted in the Death of Her Two-Month InfantRead the Press Release
ALBUQUERQUE – Senior U.S. District Judge Robert C. Brack sentenced Sophia Monique Zayas, 36, this afternoon in federal court in Las Cruces, N.M., to 15 years of imprisonment followed by five years of supervised release for her conviction on a child abuse resulting in great bodily harm charge. Sophia Zayas’ conviction arose out of conduct occurring on October 21 and 22, 2007, that resulted in the death of her two-month-old daughter. Judge Brack sentenced Sophia Zayas based on a guilty plea entered on Feb. 24, 2014.
U.S. Attorney John C. Anderson, Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division, and Special Agent in Charge Nicholas J. Dorval of the Air Force Office of Special Investigations, Detachment 814, announced Sophia Zayas’ sentence.
The FBI and the Air Force Office of Special Investigations arrested Sophia Zayas, 32, and her husband Peter John Zayas, 33, in April 2012 on charges that between Oct. 21, 2007 and Oct. 22, 2007, the couple caused the death of their two-month-old infant daughter. In Nov. 2012, a 16-count superseding indictment was filed charging the couple with second-degree murder, child abuse resulting in death, child abuse resulting in great bodily harm, and other child abuse-related offenses. At the time of the offenses alleged in the superseding indictment, Peter Zayas was a sergeant with the U.S. Air Force and was stationed at Holloman Air Force Base.
On Feb. 24, 2014, Sophia Zayas pleaded guilty to child abuse resulting in great bodily harm and admitted that from Aug. 16, 2007 through Oct. 22, 2007, she placed her daughter in a situation, which endangered the infant’s life. In her plea agreement, Sophia Zayas admitted that the infant suffered posterior transverse skull fractures, rib fractures, and radius and ulna fractures as a result of her conduct. The infant died of her injuries on Oct. 22, 2007.
Peter Zayas pleaded guilty to negligent child abuse five-days earlier, on Feb. 19, 2014. In his plea agreement, Peter Zayas admitted that from Aug. 16, 2007 through Oct. 22, 2007, he permitted his infant to be in a situation that endangered her life knowing that there was a foreseeable risk that she would be physically harmed or killed by leaving her in Sophia Zayas’ care knowing that Sophia Zayas had a history of alcohol abuse. Peter Zayas acknowledged that the infant died on Oct. 22, 2007, as a result of his negligence because it was foreseeable to him that leaving the infant in Sophia Zayas’ care could lead to harm given her alcohol consumption and binge drinking during the Oct. 14, 2007 through Oct. 22, 2007.
Sophia Zayas and Peter Zayas have been in federal custody since their arrests. Peter Zayas is scheduled for sentencing on Oct. 2, 2018.
This case was investigated by the FBI and the Air Force Office of Special Investigations and is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and John A. Balla of the U.S. Attorney’s Las Cruces Branch Office.
Seven Selma Residents Enter Guilty Pleas in Separate Cases to Being in Possession of Firearms After Felony ConvictionsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that seven residents of Selma, Alabama entered guilty pleas to violating Title 18 United States Code, Section 922(g)(1) – the felon in possession of a firearm statute.
On September 14, 2018, Daryl Dewayne Struggs pled guilty to possession of two Smith & Wesson, 9mm pistols found in his possession on March 28, 2017. Prior to March 2017, Struggs had been convicted of three felonies in Dallas County, Alabama Circuit Court, namely, Unlawful Possession of Marijuana, 1st Degree; Burglary 3rd Degree; and Robbery 3rd Degree. Struggs’ sentencing is set for December 11, 2018, before the Honorable William H. Steele. The Assistant U. S. Attorney Assigned to the case is Sinan Kalayoglu.
On September 17, 2018, Octavius Tyrone Peace pled guilty to possession of a Taurus, .38 caliber revolver found in his possession on May 20, 2018. Prior to May 2018, Peace had been convicted of two felonies in the United States District Court for the Western District of Kentucky, namely Bank Fraud; and Passing, Uttering, Presenting, Offering, Brokering Issuing or Selling False or Fictitious Instruments with the Intent to Defraud. Peace’s sentencing is set for December 14, 2018, before the Honorable Kristi K. Dubose. The Assistant U. S. Attorney assigned to the case is Alex Lankford.
On September 17, 2018, Antonio Demond Butler pled guilty to possession of a Taurus, 9mm pistol found in his possession on May 8, 2018. Prior to May 2018, Butler had been convicted of a felony, namely Unlawful Possession of a Controlled Substance in the Circuit Court of Tuscaloosa County, Alabama. Butler’s sentencing is set for December 14, 2018, before the Honorable Kristi K. Dubose. The Assistant U. S. Attorney assigned to the case is Michele O’Brien.
On September 19, 2018, Jimmy Lee Woods pled guilty to possession of a Phoenix Arms, .25 caliber, semi-automatic pistol found in his possession on May 16, 2018. Prior to May 2018, Woods had been convicted of a felony, namely, Burglary 3rd Degree in the Circuit Court of Perry County, Alabama. Woods sentencing is set for December 19, 2018, before the Honorable Callie V. S. Granade. The Assistant U. S. Attorney assigned to the case is Gloria Bedwell.On September 19, 2018, Willie James Collins, Jr. pled guilty to possession of three firearms, namely, a Glock, .45 caliber pistol; an ATI, .556 caliber rifle; and a Mossberg, .22 caliber pistol, found in his possession on December 8, 2017. Prior to December 2017, Collins had been convicted of a felony, namely Receiving Stolen Property 3rd Degree in the Circuit Court of Marengo County, Alabama. Collins sentencing is set for December 11, 2018, before the Honorable William H. Steele. The Assistant U. S. Attorney assigned to the case is Michele O’Brien.
On September 26, 2018, Dwight Contrell Tanker pled guilty to possession a Taurus, .380 caliber pistol found in his possession on April 26, 2018. Prior to April 2018, Tanker had been convicted of a felony, namely, Possession of Marijuana 1st Degree in the Circuit Court of Tuscaloosa County, Alabama. Tanker’s sentencing is set for January 9, 2019, before the Honorable Callie V. S. Granade. The Assistant U. S. Attorney assigned to the case is Michele O’Brien.
On September 26, 2018, Brandon Dejuan Ward pled guilty to possession of a High Point, 9mm pistol found in his possession on September 14, 2017. Prior to September 2017, Ward had been convicted of three felonies in Dallas County, Alabama Circuit Court, namely, Burglary 1st Degree; Receiving Stolen Property, 1st Degree; and Discharging a Firearm Into an Occupied Building. Ward’s sentencing is set for January 9, 2019, before the Honorable Callie V. S. Granade. The Assistant U. S. Attorney assigned to the case is Vicki Davis.
All of these cases were investigated collectively by officers of the Selma, Alabama Police Department, special agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, investigators of the Fourth Judicial Task Force, officers of the Alabama Law Enforcement Agency and investigators with the Alabama Attorney General’s Office.
Sentencings for September 18 - September 25, 2018Read the Press Release
STETSON LANE PIERCE, 21, of Evanston, Wyoming was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 25, 2018 for possession of a stolen firearm and being a felon in possession of a firearm. Pierce was arrested in Uinta County, Wyoming. He received forty-one months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $400.00 fine and a $200.00 special assessment. The Evanston Police Department, West Jordan Utah Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
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.
KYMBER MORGAN TIERNAN, 33, of Cheyenne, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on September 21, 2018 for conspiracy to distribute methamphetamine. Tiernan was arrested in Cheyenne, Wyoming. Tiernan received sixty-three months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay restitution in the amount of $500.00. The Wyoming Division of Criminal Investigation, Northern Colorado Drug Task Force, DEA, and Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
KAREN KAY STROBACH-ROBLES (a/k/a KAREN ROBLES, a/k/a KAREN STROBACH), 55, of Highland, California was sentenced by Federal District Court Judge Alan B. Johnson on September 18, 2018 for conspiracy to distribute methamphetamine. Strobach-Robles was arrested in Riverside, California. She received sixty months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay restitution in the amount of $500.00. The Wyoming Division of Criminal Investigation investigated this case.
STARR DANA MILLER, 25, of Arapahoe, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on September 25, 2018 for escape from custody. Miller was arrested in Casper, Wyoming. He received eighteen months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Lander Police Department, Natrona County Sheriff’s Office, BIA, and United States Marshalls Service investigated this case.
Sacramento Man Sentenced to Six Years in Prison for Fraud in Connection with Arson SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Brian J. Stone, 60, of Sacramento, to six years in prison and to pay over $243,000 in restitution and a $12,500 fine for his convictions on 13 counts of wire and mail fraud, U.S. Attorney McGregor W. Scott announced. After sentencing, Stone was remanded into custody.
Stone was formerly a California attorney but was disbarred in 2001. According to evidence presented at a four-day trial and at sentencing, Stone participated with co-defendant Jamal Shehadeh in a multiyear fraud scheme involving several fraudulent fire insurance claims in the Sacramento area that spanned from 2009 through 2013, often utilizing his legal skills in the process. Jamal Shehadeh separately pleaded guilty to arson and admitted to setting or causing to be set fires as a part of the fraud scheme. Among other things, Stone assisted Shehadeh with insurance claims after fires at 511 Broadway in June 2010, 5725 Marconi Avenue in September 2012, and at 2764 Fulton Avenue in June 2013.
In late 2012, co-defendant Jamal Shehadeh had rented space at that location in the name of a supposed auto parts supply business. Stone had been helping Shehadeh unsuccessfully fight an eviction action during the months prior to the fire. On the night the eviction took effect, the fire occurred at 2764 Fulton, and the supposed auto parts business later filed an insurance claim with State Farm. While helping with the insurance claim, Stone recruited a local contractor to create a fake invoice and lie to State Farm regarding debris removal work performed after the fire. In a series of emails, Stone directed the local contractor to keep 10 percent of the money that they would get from State Farm from this fraud, and send the other 90 percent to Stone in a cashier’s check.
The scheme was uncovered when the local contractor reported it to State Farm. The FBI later executed search warrants of Stone’s office and email account, finding copies of documents outlining the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales are prosecuting the case.
Two other defendants were charged in the case. Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony on February 10, 2018, and was sentenced to 30 years in prison. Saber Shehadeh was convicted of three counts of mail fraud on June 4, 2018, after a seven-day jury trial, and is scheduled to be sentenced on October 18, 2018.
River Ridge Man Sentenced After Previously Pleading Guilty to Stealing over $1,000,000 from EmployerRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DON MANUEL ZEMO, JR., age 55, a resident of River Ridge, Louisiana, was sentenced yesterday by United States District Judge Ivan L.R. Lemelle to 15 months imprisonment and supervised release after any term of imprisonment of 2 years after previously pleading guilty to conspiracy to commit mail fraud, in violation of 18 U.S.C. ' 371, for his role in stealing over $1,000,000 from his employer, a privately owned and operated company that provided portside services as a terminal operator and stevedore at the Port of New Orleans. ZEMO was also ordered to pay restitution to the victim in the amount of at least $1,033,639.54, subject to increase for inclusion of additional costs and fees incurred by the defendant, to be determined by December 11, 2018.
According to court documents, Company A hired ZEMO in 1999. Between 2003 and 2015, he served as the General Manager of Port Operations and earned in excess of $100,000 per year for his employment. As General Manager, ZEMO oversaw and managed Company A’s day-to-day operations at Company A’s terminal at the Port of New Orleans, including handling all financial documentation, personnel decisions, job scheduling, implementing of Company A’s policies at Company A’s Port of New Orleans terminal, and facilitating the billing of Company A’s customers.
In about August 2009, U.S. Gulf Trade, Inc. (“USGT”) was formed. Although ZEMO was not explicitly affiliated with USGT, he was involved in its day-to-day operations. Between January 29, 2012, and July 7, 2015, ZEMO and his co-conspirator, who was involved with the formation of USGT, diverted approximately $1,033,639.54 over the course of eighty (80) transactions from Company A to themselves and USGT. ZEMO did so by representing to Company A’s customers that USGT, and not Company A, had provided certain services and material to the customer when, in fact, Company A’s equipment, employees, and material was used to provide the services and directing customers to transmit payments to USGT, not Company A, for the services rendered and material provided, without Company A’s knowledge or authorization. Among the fraudulent transactions ZEMO caused was one on May 22, 2015, in which ZEMO caused a shipping company to send a check via U.S. Mail to USGT in the amount $49,498.49, when such funds should have been made payable to, and actually transmitted to, Company A.
U.S. Attorney Strasser praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
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Registered Sex Offender on Lifetime Federal Supervised Release Admits to Possessing Child PornographyRead the Press Release
PROVIDENCE, RI – A registered sex offender serving lifetime federal supervised release, having been convicted in 2012 and sentenced to 84 months in federal prison for possessing and receiving child pornography, pleaded guilty in federal court today to possessing child pornography.
Robert L. MacGregor, 55, of Providence, was arrested on February 7, 2018, by Homeland Security Investigations (HSI) agents and members of the Rhode Island State Police Internet Crimes Against Children (RI ICAC) task force, following an investigation that determined that MacGregor was in possession of approximately 100 images of child pornography.
According to court documents, during a routine home visit on January 24, 2018, a United States Probation Officer allegedly observed inappropriate materials on MacGregor’s cell phone. A subsequent forensic examination of the phone by members of the RI ICAC task force revealed approximately 100 images of child pornography.
On January 27, 2012, MacGregor was convicted in federal court in Providence on one count of possession of child pornography and two counts of receipt of child pornography. He was sentenced to 84 months imprisonment and a term of lifetime supervised release.
MacGregor’s guilty plea is announced by United States Attorney Stephen G. Dambruch; Peter C. Fitzhugh, Special Agent in Charge of HSI for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
MacGregor is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 19, 2019.
Possession of child pornography in this matter (2nd offense) is punishable by statutory penalties of a mandatory minimum of 10 years in prison, with a maximum penalty of 20 years of incarceration; lifetime supervised release; and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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