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Tuesday 14 August 2018
Burien, Washington Felon Sentenced to Prison for Trading Guns and DrugsRead the Press Release
A Burien, Washington felon was sentenced today in U.S. District Court in Seattle to seven years in prison and five years of supervised release for three drug and firearm related crimes, announced U.S. Attorney Annette L. Hayes. JERMAINE HICKLES, 46, pleaded guilty in May 2018 to being a felon in possession of firearms, possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. When King County Sheriff’s Detectives executed a court-authorized search warrant on HICKLES’ Burien apartment and storage locker, they found 17 firearms, most of them stolen, and nearly two pounds of methamphetamine. HICKLES is prohibited from possessing firearms due to prior felony convictions. At the sentencing hearing, U.S. District Judge John C. Coughenour said HICKLES, “was in possession of one of the largest collections of dangerous weapons that I’ve seen in my three or four decades on the bench.”
“This defendant was prosecuted because he was a convicted felon who possessed 17 firearms, most of them stolen, all while dealing dangerous drugs, said U.S. Attorney Annette L. Hayes. The combination of illegal drugs and guns is a ticking time bomb that risks the lives of real people and the safety of our communities. I commend the King County Sheriff’s Office and ATF’s Violent Crime Task Force for their diligent work to ensure this defendant is held to account and can no longer sow harm in our neighborhoods.”
According to records filed in the case, in summer 2017, a person working with law enforcement purchased heroin from HICKLES on multiple occasions. On September 30, 2017, officers served a search warrant on HICKLES two-bedroom apartment. One bedroom was filled with more than 200 bottles of stolen liquor – many with the store security tags still attached. In the apartment were 16 firearms – eight of them were loaded and hidden under the mattress in HICKLES main bedroom and one was loaded and in the drawer of the bedside table. Officers also found nearly $50,000 in cash and approximately two pounds of methamphetamine. In a storage unit HICKLES rented, they found a 17th firearm. Evidence from the apartment and from HICKLES’ electronic devices demonstrate he was trading drugs for cash and a variety of stolen goods, including firearms and alcohol.
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.
The case was investigated by the King County Sheriff’s Office, with assistance from members of ATF’s Violent Crime Task Force. The case is being prosecuted by Special Assistant United States Attorney Jessica Manca. Ms. Manca is a Senior King County Deputy Prosecutor specially designated to prosecute firearms cases in federal court.
Buffalo Man Sentenced for Producing Child PornographyRead 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 Michael Milton, Sr., 42, of Buffalo, NY, who was convicted of production of child pornography, was sentenced to serve 262 months in prison and 10 years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney, Aaron J. Mango, who handled the case, stated that on August 14, 2015, the defendant coerced a 17 year-old minor (Victim 1) to engage in sexual intercourse and oral sexual activity inside a 2003 Chevrolet Tahoe vehicle that Milton owned at the time. The defendant produced visual depictions of the sexual activity using a cellular telephone. Those images were then stored on electronic storage devices. The investigation determined that Milton engaged in sexual contact with Victim 1 on various occasions between at least December 21, 2014, and November 6, 2015.
Milton was previously convicted of Rape in Erie County Court involving Victim 1 and another minor female, and he was sentenced to serve 25 years to life on that charge.
The federal sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Australian Woman Pleads Guilty to Encouraging and Inducing Illegal EntryRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Sarah Louise Branch, 37, of New South Wales, Australia pleaded guilty today in U.S. District Court to encouraging and inducing the entry of an illegal alien into the United States.
According to court records, on July 10, 2018, U.S. Customs and Border Protection agents searched the vehicle the defendant was driving when she sought admission to the United States at a Port of Entry in Calais, Maine and discovered a Mexican passport, male clothing and photographs of a male, later identified as Benigno Godinez-Cortez. The defendant admitted that she dropped her boyfriend, Godinez-Cortez, off in Canada near the U.S. border knowing that he was a citizen of Mexico and would not be admitted into the United States and that she intended to pick him up after he entered the United States illegally.
She faces up to five years in prison and a $250,000 fine. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office. Godinez-Cortez pled guilty today in U.S. District Court to unlawfully re-entering the United States and awaits sentencing.
The investigation was conducted by U.S. Customs and Border Protection.
Monday 13 August 2018
Wetzel County man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Daniel P. Sprowl, of New Martinsville, West Virginia, was sentenced today to 33 months incarceration for possessing child pornography, United States Attorney Bill Powell announced.
Sprowl, age 54, pled guilty to one count of “Possession of Child Pornography” in April 2018. Sprowl admitted to possessing images of child pornography involving children under the age of 12 in November 2016 in Wetzel County.
Sprowl was also ordered to pay $8,000 in restitution and ordered to forfeit his electronic devices used in the crime.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Western Massachusetts Man Charged with Traveling to Meet Minor for SexRead the Press Release
ALBANY, NEW YORK – Joseph A. Defilippi, age 55, of Chicopee, Massachusetts, was arrested Friday and charged with traveling across state lines with the intent to engage in a sexual act with a minor.
The announcement was made by United States Attorney Grant C. Jaquith and James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The criminal complaint alleges that between February 28, 2018 and August 10, 2018, Defilippi exchanged e-mails with an undercover investigator who was posing as a 13-year-old boy named “Dylan.” Many of the electronic communications sent by Defilippi to “Dylan” involved Defilippi expressing his desire to engage in sexual acts with “Dylan.”
In early August 2018, Defilippi and “Dylan” discussed plans in which Defilippi would travel from Massachusetts in order to meet “Dylan” at a park in Menands, New York. On the morning of August 10, 2018, Defilippi drove from Chicopee to the park in Menands. Shortly after Defilippi’s arrival at the park, he was encountered by law enforcement and admitted that he had travelled from Massachusetts to New York intending to engage in sexual acts with “Dylan.”
Defilippi appeared today before United States Magistrate Judge Daniel J. Stewart and was ordered detained pending further proceedings.
The charge filed against Defilippi carries a maximum sentence of 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Washington State Man Sentenced to Prison for Role in Connection with Reveton RansomwareRead the Press Release
A former Microsoft employee was sentenced today to 18 months in prison after pleading guilty to conspiracy to commit money laundering in connection with the spread of a particular type of ransomware commonly referred to as Reveton.
U.S. Attorney Benjamin C. Greenberg for the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division made the announcement.
Raymond Odigie Uadiale, 41, of Maple Valley, Washington, was sentenced by U.S. District Court Judge William P. Dimitrouleas for the Southern District of Florida following his June 4 guilty plea. The indictment charged Uadiale with one count of conspiracy to commit money laundering and one count of substantive money laundering. As part of the plea agreement, the government dismissed the substantive count. In addition to his prison sentence, Uadiale was also sentenced to three years of supervised release.
According to the factual proffer filed in connection with the plea agreement, Uadiale helped to “cash out” the payments of victims whose computers were infected with Reveton, a type of ransomware that displayed a splash screen on the victim’s computer with the logo of a law enforcement organization. The splash screen would include a message falsely telling the victim that the law enforcement organization had found illegal material on the infected computer and required the payment of a “fine” to regain access to the computer and its data. The ransomware directed the victim to purchase a GreenDot MoneyPak and enter the account number into a form on the splash screen. Using prepaid debit cards, Uadiale transformed the MoneyPak funds into cash, kept a portion for himself, and sent a portion back to Reveton’s distributor, who resided in the United Kingdom.
“This was a sophisticated scheme to conceal the proceeds of a particularly insidious type of ransomware,” said U.S. Attorney Greenberg. “By claiming to originate from law enforcement agencies, Reveton not only victimized computer users, it also exploited the agencies in whose names the ransomware claimed to be acting. Today’s sentence demonstrates that those who seek to profit from the spread of such malicious software face serious consequences.”
“By cashing out and then laundering victim payments, Raymond Uadiale played an essential role in an international criminal operation that victimized unsuspecting Americans by infecting their computers with malicious ransomware,” said Assistant Attorney General Benczkowski. “This conviction and sentence is another demonstration of the Department of Justice’s commitment to prosecuting cybercriminals and shutting down the networks they use to launder their criminal proceeds. We are grateful for the outstanding collaboration of our U.S. and international law enforcement partners in this successful investigation.”
According to court documents, Uadiale used the digital currency platform Liberty Reserve to transfer approximately 70 percent of the ransomware proceeds back to the ransomware distributor. Between October 2012 and March 27, 2013, while he was a graduate student at Florida International University, Uadiale sent approximately $93,640 in Liberty Reserve dollars to his co-conspirator as part of their scheme. Public records show that Uadiale was hired by Microsoft as a network engineer after the conspiracy charged in the indictment ended.
The case was investigated by the FBI, with assistance from the U.K.’s National Crime Agency, and was prosecuted by Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel W. Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section, with assistance from the U.S. Attorney’s Offices for the Eastern District of Virginia and the Western District of Washington.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Washington State Man Sentenced to Prison for Role in Connection with Reveton RansomwareRead the Press Release
A former Microsoft employee was sentenced today to 18 months in prison after pleading guilty to conspiracy to commit money laundering in connection with the spread of a particular type of ransomware commonly referred to as Reveton.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Benjamin C. Greenberg for the Southern District of Florida and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division made the announcement.
Raymond Odigie Uadiale, 41, of Maple Valley, Washington, was sentenced by U.S. District Court Judge William P. Dimitrouleas for the Southern District of Florida following his June 4 guilty plea. The indictment charged Uadiale with one count of conspiracy to commit money laundering and one count of substantive money laundering. As part of the plea agreement, the government dismissed the substantive count. In addition to his prison sentence, Uadiale was also sentenced to three years of supervised release.
According to the factual proffer filed in connection with the plea agreement, Uadiale helped to “cash out” the payments of victims whose computers were infected with Reveton, a type of ransomware that displayed a splash screen on the victim’s computer with the logo of a law enforcement organization. The splash screen would include a message falsely telling the victim that the law enforcement organization had found illegal material on the infected computer and required the payment of a “fine” to regain access to the computer and its data. The ransomware directed the victim to purchase a GreenDot MoneyPak and enter the account number into a form on the splash screen. Using prepaid debit cards, Uadiale transformed the MoneyPak funds into cash, kept a portion for himself, and sent a portion back to Reveton’s distributor, who resided in the United Kingdom.
“By cashing out and then laundering victim payments, Raymond Uadiale played an essential role in an international criminal operation that victimized unsuspecting Americans by infecting their computers with malicious ransomware,” said Assistant Attorney General Benczkowski. “This conviction and sentence is another demonstration of the Department of Justice’s commitment to prosecuting cybercriminals and shutting down the networks they use to launder their criminal proceeds. We are grateful for the outstanding collaboration of our U.S. and international law enforcement partners in this successful investigation.”
“This was a sophisticated scheme to conceal the proceeds of a particularly insidious type of ransomware,” said U.S. Attorney Greenberg. “By claiming to originate from law enforcement agencies, Reveton not only victimized computer users, it also exploited the agencies in whose names the ransomware claimed to be acting. Today’s sentence demonstrates that those who seek to profit from the spread of such malicious software face serious consequences.”
According to court documents, Uadiale used the digital currency platform Liberty Reserve to transfer approximately 70 percent of the ransomware proceeds back to the ransomware distributor. Between October 2012 and March 27, 2013, while he was a graduate student at Florida International University, Uadiale sent approximately $93,640 in Liberty Reserve dollars to his co-conspirator as part of their scheme. Public records show that Uadiale was hired by Microsoft as a network engineer after the conspiracy charged in the indictment ended.
The case was investigated by the FBI, with assistance from the U.K.’s National Crime Agency, and was prosecuted by Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel W. Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section, with assistance from the U.S. Attorney’s Offices for the Eastern District of Virginia and the Western District of Washington.
Victims of Tom Petters Ponzi Scheme Receive Initial Distribution of More Than $16 Million in Forfeited FundsRead the Press Release
The Department of Justice announced today that an initial distribution of $16,440,674.35 has been issued to victim investors of the THOMAS PETTERS fraud scheme. These funds, forfeited to the United States through criminal and civil forfeiture proceedings prosecuted in the District of Minnesota, will be sent to approximately 364 victims worldwide.
On December 1, 2008, THOMAS JOSEPH PETTERS, of Wayzata, Minnesota, was indicted on multiple counts of mail fraud, wire fraud, money laundering, and conspiracy for orchestrating a $2.1 billion Ponzi scheme. On December 2, 2009, a federal jury found PETTERS guilty of all 20 counts against him and was later sentenced by U.S. District Judge Richard H. Kyle to 50 years in federal prison. Other defendants were convicted in related criminal proceedings. As part of their sentencing judgments, PETTERS and other defendants were ordered to forfeit assets obtained through their criminal activity, including real estate, bank and investment accounts, vehicles and other assets. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victim investors who lost money in connection with the scheme. The proceeds of all forfeited assets are being distributed to victim investors.
Additional forfeited funds will be distributed to victim investors through the remission process when pending forfeiture proceedings are completed. The total distribution amount is yet to be determined.
The forfeiture proceedings were part of a coordinated effort to compensate victim investors. In October 2008, the United States obtained an injunction against the fraud in a separate civil case, and the Court appointed a receiver to assist in the recovery of assets. Thereafter, multiple bankruptcy proceedings were filed in Minnesota and other states. In September 2010, the U.S. District Court and the U.S. Bankruptcy Court approved a Coordination Agreement governing the asset recovery efforts of the United States, the bankruptcy trustees, and the Court appointed receiver. In addition to the funds distributed via remission payments, additional payments are being made to victim investors and creditors through these ongoing bankruptcy and receivership proceedings in various states including Minnesota, Illinois and Florida.
For more information about the PETTERS criminal case, victim compensation, and the asset forfeiture remission process, please visit https://www.justice.gov/usao-mn/tom-petters-case
The Petters’ remission payments would not have been possible without the efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the District of Minnesota, the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States Reaches Settlement with Providence Schools to Ensure Equal Opportunities for English Learner StudentsRead the Press Release
The Justice Department’s Civil Rights Division and the United States Attorney’s Office for the District of Rhode Island today announced a settlement agreement with the Providence public school district that will provide English language services to the district’s 8,000 students who currently lack fluency in English. The agreement, which stems from the United States’ investigation under the Equal Educational Opportunities Act of 1974, will ensure that these English Learner students receive the services they need to succeed in the district’s educational programs.
Under the agreement, the district will:
- Properly identify and place English Learner students when they enroll in the district’s 41 schools, and communicate with parents about program offerings and other essential information in a language they understand;
- Provide adequate English language services to all English Learner students so that they can become proficient in English and access grade-level core content instruction;
- Ensure appropriate services for English Learner students with disabilities;
- Secure a sufficient number of teachers who are certified in English as a Second Language, and train the administrators and teachers who implement the English Learner programs; and
- Monitor and evaluate the effectiveness of its English Learner programs over time.
“The Department of Justice commends the district for cooperating throughout the investigation, and the Superintendent for his commitment to helping English Learner students succeed and thrive in school,” said Acting Assistant Attorney General John Gore. “We look forward to working together to implement this promising settlement agreement.”
“As a result of this settlement agreement, English Learner students will now receive all of the services they are legally entitled to and deserve,” said U.S. Attorney Stephen G. Dambruch for the District of Rhode Island.
The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
United States Reaches Settlement Agreement with Providence Schools to Ensure Equal Opportunities for English Learner StudentsRead the Press Release
PROVIDENCE, RI – The Justice Department’s Civil Rights Division and the United States Attorney’s Office for the District of Rhode Island today announced a settlement agreement with the Providence public school district that will provide English language services to the district’s 8,000 students who currently lack fluency in English. The agreement, which stems from the United States’ investigation under the Equal Educational Opportunities Act of 1974, will ensure that these English Learner students receive the services they need to succeed in the district’s educational programs.
Under the agreement, the district will:
- Properly identify and place English Learner students when they enroll in the district’s 41 schools, and communicate with parents about program offerings and other essential information in a language they understand;
- Provide adequate English language services to all English Learner students so that they can become proficient in English and access grade-level core content instruction;
- Ensure appropriate services for English Learner students with disabilities;
- Secure a sufficient number of teachers who are certified in English as a Second Language, and train the administrators and teachers who implement the English Learner programs; and
- Monitor and evaluate the effectiveness of its English Learner programs over time.
“The Department of Justice commends the district for cooperating throughout the investigation, and the Superintendent for his commitment to helping English Learner students succeed and thrive in school,” said Acting Assistant Attorney General John Gore. “We look forward to working together to implement this promising settlement agreement.”
“As a result of this settlement agreement, English Learner students will now receive all of the services they are legally entitled to and deserve,” said U.S. Attorney Stephen G. Dambruch for the District of Rhode Island.
The matter was litigated by Assistant U.S. Attorney Amy R. Romero of the United States Attorney’s Office for the District of Rhode Island and Trial Attorney Andrea Hamilton of the Education Opportunities Section, Civil Rights Division of the United States Department of Justice.
The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
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Tyler County and Wetzel County men admit to connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Joshua Cathers, of Sistersville, West Virginia, and Ronald Morgan, of New Martinsville, West Virginia, have admitted to their involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Cathers, age 38, pled guilty today to one count of “Distribution of Methamphetamine.” Cathers admitted selling methamphetamine in November 2017 in Tyler County.
Morgan, age 50, pled guilty on Friday, August 10, 2018 to one count of “Aiding and Abetting Distribution of Methamphetamine” Morgan admitted to selling methamphetamine in March 2017 in Tyler County.
Cathers and Morgan each face up to 20 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. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the cases on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the cases.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two people from Northwest Ohio indicted on firearms chargesRead the Press Release
Two people from Northwest Ohio were indicted for federal firearms crimes.
Jason M. Calton, 44, of Liberty Center, was charged with being a prohibited in possession of a firearm. Calton on June 24 possessed a Harrington & Richardson .22-caliber revolver despite a previous conviction for domestic violence, according to the indictment.
Laquan Hardin, 28, of Toledo, was charged with being a felon in possession of a firearm. Hardin possessed a Ruger 9mm pistol and a Raven Arms . 25-caliber pistol in June despite prior convictions for domestic violence and attempted failure to comply, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in these cases is the Bureau of Alcohol, Tobacco, Firearms and Explosives. The cases are being handled by Assistant United States Attorney Matthew D. Simko.
These cases are being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Two men indicted for child pornography offensesRead the Press Release
Two Northwest Ohio men was indicted for receiving and distributing child pornography.
Michael D. Butler, 50, of Defiance, received and distributed in 2015 numerous computer files containing images of children in sexually explicit conduct, according to the indictment.
Michael S. Crawford, 63, of Gomer, received and distributed numerous computer files containing images of children in sexually explicit conduct between 2014 and 2018, according to the indictment.
Their cases are unrelated.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in these cases is the Federal Bureau of Investigation. The cases are being handled by Assistant U.S. Attorneys Thomas P. Weldon and Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Chicago Pharmacy Technicians Indicted for Stealing Opioids and Selling Them for a ProfitRead the Press Release
CHICAGO — Two technicians at a Chicago pharmacy stole more than 56,000 pills of Hydrocodone and sold them for a profit, according to an indictment returned in federal court in Chicago.
ELIZABETH CRUZ and JACQUELINE GREEN worked at Allcare Discount Pharmacy, located in the 2700 block of West North Avenue in Chicago. From September 2015 to December 2017, the pair conspired to steal approximately 56,108 pills of Hydrocodone and sell them outside the pharmacy for a profit, the indictment states. Cruz and Green concealed the scheme by falsifying the pharmacy’s inventory to make it look like the pills had either not been received from the distributor or were dispensed to patients, according to the charges.
The indictment charges Cruz, 33, of Stone Park, and Green, 27, of Chicago, with conspiracy to possess a controlled substance with the intent to deliver. Both defendants were arrested on Aug. 9, 2018. Detention hearings are scheduled for today at 3:00 p.m., before U.S. Magistrate Judge Maria Valdez in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. The government is represented by Assistant U.S. Attorney Nani M. Gilkerson.
“Diversion of opioids contributes to addiction and illegal drug sales in our communities,” said U.S. Attorney Lausch. “Pharmacy employees who divert prescription drugs for their own profit will be prosecuted to the full extent of the law.”
“This investigation illustrates that the DEA and the U.S. Attorney’s Office will bring to justice those responsible for the theft and diversion of controlled substances, not only on the street, but also in pharmacies,” said Special Agent-in-Charge McKnight.
The conspiracy charge carries a maximum penalty of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines. The public is reminded that charges are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Three More Defendants Sentenced to Federal Prison for Their Roles in a Drug Trafficking ConspiracyRead the Press Release
Defendants are the latest to be sentenced out of nearly two dozen defendants after long-term narcotics investigation
BLUEFIELD, W.Va. – Three more defendants were sentenced today to federal prison for their roles in a drug trafficking organization, announced United States Attorney Mike Stuart. James Rodney Staples, 39, of Woodbridge, Virginia, was sentenced to 151 months, or 12 years and 7 months, in federal prison. Karl Funderburk, 32, of Teays Valley, and George Brockman II, 38, of Montgomery, were sentenced to federal prison for 60 months and 108 months, respectively.
Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“I cannot say enough about the outstanding work of our law enforcement partners,” said United States Attorney Mike Stuart. “This was a complex, long-term investigation of a significant drug trafficking organization that was wreaking havoc in southern West Virginia. As a result of the tireless efforts of our law enforcement officers, this drug business has been shut down.”
James Rodney Staples previously entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 5 kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin. At the plea hearing Staples admitted that between August 2016 and June 28, 2017, he took part in a drug trafficking conspiracy with multiple participants involving the distribution of cocaine, cocaine base, also known as “crack,” and heroin. Staples admitted that Velarian Carter, another co-defendant in this case, requested his help in operating the drug trafficking organization while Carter was incarcerated on other drug charges. Staples admitted he paid other members to assist him in distributing the controlled substances and to collect money acquired through the illegal drug trafficking. As part of the agreement, Staples agreed to the forfeiture of $50,000, which represented proceeds of his illegal drug trafficking activity.
Funderburk previously entered a guilty plea to using and carrying a firearm during a drug trafficking crime. At his plea hearing Funderburk admitted that between August 2016 and March 1, 2017, he assisted Velarian Carter, Detria Carter, and others, in operating a drug trafficking organization. Funderburk also admitted that on March 1, 2017, he was arrested in Charleston, and during a subsequent search, police discovered that he possessed cocaine, crack, and methamphetamine. Funderburk also possessed a Glock 27, .40 caliber, semi-automatic pistol, that he admitted was used for protection of his drugs and drug proceeds.
George E. Brockman, II previously entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone. At the plea hearing, Brockman had admitted that between August 2016 and June 28, 2017, he took part in a drug trafficking conspiracy with multiple participants involving the distribution of heroin, cocaine, and oxycodone. Brockman further admitted that he obtained over 100 grams of heroin from another co-defendant in this case, and intended to distribute the heroin in the southern district of West Virginia. Brockman also admitted that due to quality issues, he requested another co-defendant, James Rodney Staples, to exchange the heroin for cocaine, which he also planned to distribute in the southern district of West Virginia. Brockman was working with other members of the drug trafficking organization to obtain a kilogram of heroin and approximately 2000 oxycodone tablets to distribute around Fayette County. On June 28, 2017, pursuant to searches performed by law enforcement, police officers recovered 84.49 grams of heroin from a truck that Brockman possessed and over $124,000 that Brockman admitted were drug proceeds. $115,000 of that money was found in the trunk of a 2008 Ford Mustang GT500. Brockman has agreed to forfeit the cash as well as the Ford Mustang. As part of the plea defendant further agreed to the forfeiture of a 2016 Chevrolet Corvette.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. Senior United States District Judge David A. Faber imposed the sentences.
Shaun Givens is the sole defendant that is still awaiting sentencing. Givens faces at least five years and up to 40 years in federal prison when he is sentenced on August 27, 2018.
Several defendants in this case have already been sentenced. Velarian Carter of Beckley was recently sentenced to 240 months, or 20 years in federal prison for his participation in this drug trafficking organization. His sentence was ordered to run consecutively to a 20 year sentence Mr. Carter is already serving on unrelated drug charges. Detria Carter of Beckley, the sister of Velarian Carter, was recently sentenced to 151 months, or 12 years and seven months in federal prison. Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, were sentenced to 12 years, and 16 years and 8 months in prison, respectively. Rory White of Montgomery was sentenced to 125 months in federal prison. Tiffany Ramsey, also from Boomer, was sentenced to 46 months in federal prison. Dominic Copney, of Beckley, has been sentenced to 2 years in federal prison. Donald Scalise, of Montgomery, was sentenced to 3 years in federal prison for conspiring to distribute oxycodone.
On July 10 and July 11, 2018, Judge David A. Faber sentenced Esau Burnett, of Beckley, to 66 months in federal prison, Shawn Akiem Anderson, of Mount Hope, to 108 months in federal prison, and Shaun Jones, also of Beckley, to 120 months in federal prison. He also sentenced to Jonathan V. Moore, and Charles Hill, both of Beckley to 97 months and 60 months, respectively. Corey Larkin, of Beckley, was previously sentenced to 188 months in federal prison after he was determined to be a career offender.
David Shaun Coleman of Boomer was previously sentenced to 60 months in federal prison, while Rashaun Carter of Beckley and Derrick Staples of Charleston were each sentenced to 121 months in federal prison. Jonathan O. Brockman, the brother of George E. Brockman, II, of Kimberly, Fayette County, was sentenced to nine years in federal prison. Coleman, Carter, Staples and Brockman were also sentenced by Senior Judge David A. Faber.
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Three Men Sentenced to Prison Terms for 2015 Slaying of Man Near Shaw/Howard Metro StationRead the Press Release
WASHINGTON – Andre Dudley, 22, Marcus King, 22, and Christopher Proctor, 28, all of Washington, D.C., were sentenced today to prison terms on charges stemming from the August 2015 slaying of Matthew Shlonsky, an innocent bystander who was shot three years ago on a crowded street in Northwest Washington. Dudley was sentenced to an 18 ½-year prison term for the murder, King was sentenced to 17 ½ years, and Proctor was sentenced to 14 years.
The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The three defendants pled guilty in June 2018 to one count of voluntary manslaughter while armed and two counts of assault with a dangerous weapon. Dudley also pled guilty to a charge of attempted assault with a dangerous weapon stemming from a jailhouse stabbing. The pleas took place in the Superior Court of the District of Columbia.
Dudley’s plea, which was contingent upon the Court’s approval, called for him to be sentenced to an agreed-upon 18 ½-year prison term for the shooting and an additional 22 months for the jailhouse stabbing, for a total of 20 years and four months of incarceration. King’s plea called for an agreed-upon sentence of 15 to 20 years, and Proctor’s plea called for an agreed-upon term of 12 to 14 years. The Honorable Juliet McKenna accepted the pleas and sentenced the defendants accordingly. Following their prison terms, the defendants will each be placed on five years of supervised release.
According to the government’s evidence, King and Proctor both associated with the Ninth Street neighborhood of Northwest Washington. On Saturday, Aug. 15, 2015, at approximately 4:45 p.m., King and Proctor were standing near a liquor store at the intersection of Seventh and S Streets NW, both armed with firearms. Dudley, meanwhile, drove to the area of Seventh and S in a red Chrysler 300 sedan. While stopped at the intersection of 8th and S Streets, Dudley got into an argument with Ninth Street crew members. One pulled out a gun, and Dudley pulled out his gun as well. King and Proctor were both nearby, and Proctor yelled out to other crew members to find out the identity of the person in the red car.
Dudley then turned from Eight Street onto S Street and headed east. He adjusted his position so that his head and arms were outside the sunroof. He then pointed his gun at individuals on the south side of S Street, near Seventh. King and Proctor both fired shots at Dudley as he crossed their path. King fired seven shots from a .40-caliber semiautomatic firearm and Proctor fired 10 shots from a different .40-caliber semiautomatic. Dudley extended his arm out and fired several shots in the direction of King and Proctor.
Mr. Shlonsky, 23, had just gotten out of an Uber with friends and was heading to a concert at the Howard Theatre. He was walking in the 1800 block of Seventh Street NW, near the entrance to the Shaw/Howard University Metro station, when one of the bullets from the shootout struck him in the chest. He was pronounced dead a short time later.
While King and Proctor were firing their weapons, a couple was walking on the sidewalk of the 700 block of S Street NW. The man and woman were each pushing strollers that had two young children inside each of them. Hearing the gunshots, the couple sprinted away, however, their proximity to the gunfire put them in the zone of harm.
While Dudley drove east on S Street NW, his vehicle came head-to-head with a vehicle turning left on S Street, NW, from Sixth Street NW. Blocked, Dudley again lifted his head and arms out of the sunroof, pointed a gun at the driver, threatened to kill him, and yelled at him to move his car. Scared, the driver moved his vehicle and Dudley then continued across S Street; as he sped into the 1900 block of Fourth Street NW, another man yelled at Dudley to slow down. In response, Dudley slammed on the brakes, rolled down his window, pointed an imitation firearm at the man, which the man believed was an actual firearm, and fired shots in the general vicinity of the man. Dudley then left the area. Dudley pled guilty to two counts of assault with a dangerous weapon for these crimes.
As part of the plea agreement, Dudley admitted to his role in the May 17, 2018 stabbing of a fellow inmate at the District of Columbia Jail. The victim of that incident sustained non-life-threatening injuries.
Dudley was arrested on a warrant in a burglary case on Sept. 11, 2015, and charged with the murder in December 2015. King was arrested on Aug. 21, 2015. Proctor was arrested on Feb. 23, 2016. All have been in custody since their arrests.
In announcing the sentences, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI, including the FBI’s Cellular Analysis Survey Team, and the District of Columbia Department of Forensic Sciences.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Kimberley Nielsen, Laura A. Bach, Jeffrey Nestler, Julianne Johnston, and Sharon Marcus-Kurn; former Assistant U.S. Attorney Shana Fulton; Paralegal Specialists Lornce Applewhite and Sharon Newman; Investigative Analyst Zachary McMenamin; Litigation Technology Specialist Leif Hickling; Criminal Investigator Durand Odom, and Victim/Witness Advocate Marcia Rinker.
Finally, they commended the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the case.
Texas Chicano Brotherhood Gang Member Heads to Federal PrisonRead the Press Release
McALLEN, Texas – A 38-year-old Edinburg man has been ordered to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan Patrick. Ismael Tovar-Zavala pleaded guilty Aug. 8,2018.
Today, U.S. District Judge Micaela Alvarez ordered him to federal prison for 100 months. The court noted his lengthy and violent criminal history in assessing the sentence.
On April 21, 2016, authorities stopped Tovar-Zavala for a traffic offense. Upon investigation, they determined he was in possession of a loaded 7.62x39 mm Yugoslavia assault rifle with a high capacity magazine attached. As a seven-time convicted felon, he is prohibited from possessing a firearm or ammunition per federal law. He was further determined to be a Texas Chicano Brotherhood gang member.
Tovar-Zavala claimed he had the assault rifle for his “protection.”
He has been and will remain in custody pending Transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Hidalgo County Sheriff’s Office. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Springfield Man Sentenced to 20 Years in Prison for Sex Trafficking Underage GirlsRead the Press Release
SPRINGFIELD, Ill. – U.S. District Judge Sue E. Myerscough today ordered Calvin S. Williams, 35, of Springfield, Ill., to serve 20 years in prison followed by a term of 10 years supervised release. Williams, also known as “Cadillac Hustle,” “Cadillac,” “Caddy,” was also ordered to register as a sex offender.
Williams has remained in the custody of the U.S. Marshals Service since his arrest in June 2016.
On Mar. 16, 2018, Williams entered a plea of guilty to sexual exploitation of children. Williams was charged by complaint in June 2016, and indicted on charges of sex trafficking minors, production of child pornography, and distribution and possession of child pornography in 2015 in Springfield.
The charges are the result of investigation by the FBI and Springfield Police Department. Assistant U.S. Attorneys Matthew Z. Weir and Gregory M. Gilmore represented the government in the case prosecution.
Regional Medicare Fraud Strike Force Launched and Additional Federal Prosecutors Assigned to PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and Assistant Attorney General Brian A. Benczkowski of the U.S. Justice Department’s Criminal Division announced today the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force. The Strike Force will bring together the resources and expertise of prosecutors, data analysts, and law enforcement agencies to investigate and prosecute cases involving fraud, waste, and abuse within our federal healthcare programs and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics. In addition to the information sharing and resource coordination the Strike Force will bring to bear on these complex matters, the Eastern District of Pennsylvania will add two additional attorneys to its ranks who will focus entirely on these matters.
The prosecutors assigned to the Eastern District of Pennsylvania come from the Health Care Fraud Unit in the U.S. Justice Department’s Criminal Division’s Fraud Section, where they have gained a wealth of subject-matter expertise. The federal investigative agencies and state partners participating in the Strike Force include Department of Health and Human Services Office of Inspector General (HHS-OIG); Drug Enforcement Administration (DEA); Federal Bureau of Investigation (FBI); U.S. Postal Inspection Service (USPIS); Department of Defense, Office of Inspector General, Defense Criminal Investigative Services (DOD-OIG); and Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit.
As part of the kickoff event, U.S. Attorney McSwain and Assistant Attorney General Benczkowski met with senior leadership from the law enforcement partners involved to discuss the Strike Force’s work. Assistant Attorney General Benczkowski then offered remarks to the entire Eastern District Office before departing for Washington, DC.
“Combatting the opioid epidemic and healthcare fraud abuses are major priorities of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Pennsylvania,” said U.S. Attorney McSwain. “Healthcare fraud schemes are driven by greed, and all American taxpayers pay the price for criminals who prey on providers and beneficiaries alike. My Office is honored and proud to welcome the DOJ Medicare Fraud Strike Force to our District in order to attack these problems with our law enforcement partners.”
“The devastation the opioid epidemic is inflicting on communities across the country and here in the Mid-Atlantic region is staggering—and health care fraud has played a role in feeding that epidemic,” said Assistant Attorney General Benczkowski. “It is estimated that each year tens of billions of dollars in American taxpayer money are lost to fraud, waste, abuse and improper payments. According to the CDC, in 2016, more than 40 percent of all U.S. opioid overdose deaths involved a prescription opioid. Our Medicare Fraud Strike Forces, which we have now expanded into Newark and Philadelphia, constitute one of our most important and effective means for containing these threats to the American people.”
On June 28, 2018, Attorney General Jeff Sessions recently noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action on Health Care Fraud Takedown Day. The takedown involved 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the prosecutors in the 10 Medicare Fraud Strike Force locations have charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
“Bringing the time-tested, proven-effective Strike Force model along with additional prosecutors and investigators to the Philadelphia region will no doubt be highly successful in our ongoing battle against health care fraud,” said Maureen Dixon, Special Agent in Charge for HHS-OIG. “We look forward to working closely with the U.S. Attorney for PA’s Eastern District and our fellow law enforcement partners to protect taxpayer funds supporting federal health programs and the millions who rely on those benefits.”
“In addition to its drug law enforcement mission, the Drug Enforcement Administration regulates more than 13,000 registrants in Philadelphia and over 76,000 registrants across the Commonwealth of Pennsylvania. A small number of these registrants engage in the unlawful diversion of prescription medications and are responsible for the illegal distribution of opioids and other dangerous narcotics,” said Jonathan Wilson, Special Agent in Charge of the DEA Philadelphia Field Division. “Using its law enforcement and regulatory authorities, the DEA will work closely with our partner agencies in the Regional Strike Force as it investigates the unlawful diversion of controlled substance medications and health care fraud.”
“Medicare fraud shorts the pool of funds available for truly necessary treatment and services, and costs American taxpayers money,” said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “As for prescription fraud—that can cost people their lives. Here in Philadelphia, in the heart of the opioid epidemic, it seems like the FBI is opening pill mill cases right and left. This Regional Strike Force allows us to pool our resources, intelligence, and expertise against doctors and other medical professionals who put their own financial health ahead of their patients’ wellbeing.”
“The United States Postal Inspection Service is committed to the Health Care Fraud Task Force and combating the opioid crisis,” said Inspector-in-Charge Daniel Brubaker. “USPIS will continue to work with our partners every day to protect the public from opioid related schemes that unlawfully use the U.S. Mail.”
“The opioid epidemic requires a strong, coordinated law enforcement response,” Attorney General Josh Shapiro said. “So far in 2018, my office has destroyed more than 26 tons of drugs. I believe that the strike force will have a direct impact on our efforts to get even more drugs and drug dealers off our streets. That is why I am proud to partner with the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Department of Health and Human Services’ Office of Inspector General, the Drug Enforcement Agency and the Justice Department’s Criminal Division on this important new initiative.”
Rapid City Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on August 10, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Waylen Block, age 45, was sentenced to 20 years in federal prison, followed by 10 years of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in an amount to be determined within 90 days.
Block was charged on April 18, 2017. The charge related to Block receiving thousands of images containing child pornography via the Internet between April 2016 and September 2016 at Rapid City. Block also produced several images of child pornography and distributed them via the Internet.
The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Pittsburgh Man Distributed Child PornographyRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Jeffrey E. Goehring, age 46, of Pittsburgh, pleaded guilty on August 10, to one count before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Goehring uploaded approximately 13 images of child pornography to a Yahoo Flikr account. After investigators obtained a search warrant for Goehring’s residence, they recovered 111 videos and 862 images depicting child pornography on his electronic devices. Goehring admitted that he has had an addiction to pornography since the 1990s and that he has gradually switched to child pornography in the last 10 years.
Judge Bissoon scheduled sentencing for December 6, 2018. The law provides for a term of imprisonment of not less than five years, a fine of $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, if any, of the defendant.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation with the help of the Allegheny County District Attorney’s Office conducted the investigation leading to the Indictment in this case.
Phony music booking agent sentenced for defrauding victims out of almost $1 millionRead the Press Release
ATLANTA - Octaveon Woods has been sentenced after pleading guilty to defrauding colleges, music festivals organizers, and others by claiming that he was a booking agent for famous musicians such as Migos, Lil Yachty, and Post Malone. Woods continued to operate the scheme even after he pleaded guilty in this case.
“Woods convinced dozens of victims to pay him almost a million dollars to ‘book’ artists for concerts and festivals, when he had no relationship with the artists at all,” said U. S. Attorney Byung J. “BJay” Pak. “Woods will now face the consequences of his actions and his victims will receive a measure of justice.”
According to U.S. Attorney Pak, the charges and other information presented in court: Woods owned and operated several companies, including Global Talent Agency, GTA Bookings, and National Artist Agency, that claimed to be booking agencies in the entertainment industry. Woods advertised that these agencies represented dozens of famous musicians, comedians and other artists, including hip-hop and rap artists Migos, Lil Yachty, and Post Malone.
Student groups at Emory University, the University of Missouri, and victims overseas hired Woods’s fake companies to book artists for concerts and festivals. In reality, Woods had no relationship with the artists. After his victims wired him money to book the concerts, Woods transferred the funds to other accounts and then made cash withdrawals. Hours after he pleaded guilty in April 2018, Woods continued to lure more victims into transferring him money for concerts that were never going to happen.
Octaveon Woods, 27, of Decatur, Illinois was sentenced to three years, 10 months in prison to be followed by three years of supervised release on August 10, 2018. Woods was convicted of the charges on April 16, 2018, after he pleaded guilty.
This case was investigated by the U.S. Department of Education, Office of the Inspector General.
Assistant U.S Attorney Lynsey Morris Barron prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Owner of Bakersfield Catholic-Interest Website Sentenced to 21 Months in Prison for Tax EvasionRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Michael Galloway, 63, of Bakersfield, to 21 months in prison for tax evasion, U.S. Attorney McGregor W. Scott announced. Galloway was ordered to surrender to serve his sentence beginning on November 14, 2018.
On March 21, 2018, a jury in Fresno returned a guilty verdict today, convicting on four counts of tax evasion. Galloway owns and operates the website, Catholic Online. According to court documents, Galloway generated revenue by selling advertising and hosting to faith-based businesses.
“No matter what the source of income, all income is taxable,” said Tara Sullivan, Special Agent in Charge, IRS Criminal Investigation. “Mr. Galloway received income from many sources, however, he failed to disclose his true income to the IRS. This sentence should send a clear message: tax evasion is a violation of federal law and can have severe consequences that can result in jail time.”
For tax years 2003 through 2006, Galloway improperly deducted personal expenses as business expenses, including his homeowner’s association fees for his personal residence, car payments and insurance, utilities and cable service for his personal residence, tile work, and personal legal fees.
For the four charged years, Galloway reported an income of $13,241 (2003); $28,846 (2004); $-60,438 (2005); and $23,053 (2006). During this time the defendant owned a 4,600 square-foot residence on a golf course in Bakersfield that he had purchased for $850,000. He made mortgage payments those years totaling $81,943 (2003); $78,694 (2004); $79,372 (2005); and $80,411 (2006). For the four years in question, these figures amounted to a claim by the defendant that he earned only $4,702 and yet was able to make $320,420 in mortgage payments.
Cumulatively, he underreported his and his spouse’s taxable income during those years by at least $671,755, resulting in an additional tax due and owing of over $102,000. The jury also found that he falsely claimed to IRS agents during a 2010 interview that he made his mortgage payments from cash that he had saved over 40 years. The jury found that this statement was an attempt to evade income tax.
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Megan A. S. Richards and Michael Tierney prosecuted the case.
Oil and Gas Repairman Sentenced to 33 Months for $450,000 False Invoice SchemeRead the Press Release
OKLAHOMA CITY – LUIS ENRIQUE DAMAZO, also known as Luis Enrique Cassinelli, 54, of Oklahoma City, has been sentenced to 33 months in prison for defrauding a Texas company of more than $450,000 through fictitious invoices, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed on December 29, 2017, Damazo was employed as a repair technician by Dexter Field Services LP, a company headquartered in Austin, Texas. Dexter Field Services provides leak detection, environmental monitoring, and consulting services to industrial clients in the energy sector. Damazo’s job was to repair toxic vapor analyzers used to detect leaks at oil and gas refineries, which often required ordering replacement parts.
Rather than ordering parts from the original equipment manufacturer, Damazo ordered parts from BC Environmental, a company he secretly created and controlled. From November 2009 through October 2015, Damazo submitted fictitious invoices from BC Environmental to Dexter Field Services for equipment, replacement parts, and tools that Dexter Field Services never received. Damazo took steps to conceal his involvement with BC Environmental, including using a false identity to lease office space, opening bank accounts in his sons’ names, and creating fake identities for the purported employees of BC Environmental. Dexter Field Services paid more than $450,000 to BC Environmental as a result of Damazo’s scheme, which he used for his personal benefit.
On February 2, 2018, Damazo pleaded guilty to a single count of mail fraud related to a fraudulent invoice he mailed to Dexter Field Services in March 2015. Today, U.S. District Judge Stephen P. Friot sentenced him to 33 months in prison, to be followed by three years of supervised release. Damazo must also pay $456,863.59 in restitution to Dexter Field Services.
This case is the result of an investigation by the FBI. It was prosecuted by Assistant U.S. Attorneys Jessica L. Perry and William E. Farrior.
Reference is made to court filings for further information.
Oconee Woman Pleads Guilty to Meth ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Tabitha A. Hammond, age 37, of Seneca, pled guilty to possession with the intent to distribute methamphetamine, a violation of Title 21, United States Code, Section 841. United States District Judge Donald C. Coggins, of Spartanburg, accepted the guilty plea and will sentence Hammond after he has a chance to review the Presentence Report prepared by the United States Probation Office.
Evidence presented at the change of plea hearing established that on August 8, 2017, an Oconee County deputy sheriff was patrolling in the Fair Play area when he observed a vehicle turn without signaling and then turn quickly into a residence before he could initiate a traffic stop. The vehicle stopped at the residence for just a few minutes and resumed travel. Upon observing a defective break light, he initiated a traffic stop. There were four persons in the car and no one had a valid license with them. The deputy observed much suspicious behavior to include extreme nervousness, attempts to hide the contents of various bags, and one passenger giving indications of flight. The deputy received consent to search from the driver and located more than five pounds of methamphetamine in a bag belonging to Hammond. After being given her Miranda warnings, Hammond admitted to engaging in drug trafficking activity.
Ms. Lydon stated the maximum penalty Hammond can receive is a fine of $20,000,000 and/or imprisonment for life, plus a special assessment of $100.
This case was investigated by the Oconee County Sheriff’s Office and the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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North Carolina Man Sentenced to Prison for Obstructing the IRSRead the Press Release
A Monroe, North Carolina resident was sentenced today to 18 months in prison for attempting to interfere with the due administration of the Internal Revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, between October 2007 and September 2011, Billy Darryl Floyd committed acts in order to obstruct and impede the Internal Revenue Service. These acts include filing false income tax returns, which falsely reported that his income was zero. Additionally, Floyd submitted fictitious “Surety Bonds” to the Internal Revenue Service (IRS) attempting to satisfy his outstanding tax liability. Floyd also disrupted the IRS sale of property seized from him to satisfy his outstanding tax liabilities by threatening IRS employees conducting the sale and threatening to sue the buyer of the property. At the sale, Floyd falsely told potential buyers that the sale was illegal and that they would not receive good title to the property. These actions caused IRS personnel to halt the public sale of this property. Floyd’s obstructive acts caused a tax loss of approximately $170,471.
In addition to the term of prison imposed, U.S. District Court Judge Max O. Cogburn Jr. ordered Floyd to serve one year of supervised release and to pay $170,471 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Gregory Bailey of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and and its enforcement efforts may be found on the division’s website.
Newark Man Charged with Firearms Offenses in Connection with Shooting of 5-Year Old ChildRead the Press Release
NEWARK, N.J. – A Newark man made an initial appearance in federal court today on charges of being a convicted felon in possession of a handgun, U.S. Attorney Craig Carpenito announced.
Jamar Battle, 30, was charged by complaint Aug. 10, 2018, with one count of being a convicted felon in possession of a firearm and ammunition. He was arrested on Aug. 11, 2018, and appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and ordered detained.
According to the complaint filed in the case:
On July 4, 2018, Battle, who was convicted in 2015 for illegally possessing a firearm, fired a handgun on Avon Avenue in Newark after engaging in a verbal dispute with another person. While the defendant did not hit his intended target, he did hit a 5-year-old child who had been walking down the same street with her father. The child was injured and required medical treatment.
The charge of being a felon in possession of a weapon carries a maximum potential penalty of 10 years in prison and a fine of up to $250,000.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; special agents of the Department of Alcohol Tobacco and Firearms, under the direction of Special Agent in Charge John B. Devito; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel Robert Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Michigan and Ohio Residents Sentenced for Conspiracy to Distribute FentanylRead the Press Release
The prosecution involved more than 200 grams of the powerful and dangerous opioid
ASHLAND, Ky. – Demetre Brown-Lovelace, 27, of Belleville, Mich., and Noelle Tufts, 24, of Ironton, Ohio, were sentenced to federal prison today, by United States District Judge David L. Bunning, for a conspiracy to distribute fentanyl. Brown-Lovelace was sentenced to ten years and Tufts was sentenced to five years.
Brown-Lovelace and Tufts previously admitted that in April 2017, they conspired together and with others to distribute 209 grams of fentanyl. Brown-Lovelace had a prior conviction for trafficking in a controlled substance, heroin, from the Boyd Circuit Court, in April 2016. Brown-Lovelace and Tufts entered a plea to the conspiracy charge in May 2018.
Under federal law, Brown-Lovelace and Tufts must serve 85 percent of their prison sentence; and, upon their release, they will be under the supervision of the United States Probation Office for eight years and four years, respectively.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Robert Allan Jones, Special Agent in Charge, FBI, Pittsburgh Field Office; and Richard Sanders, Commissioner of the Kentucky State Police; jointly made the announcement.
The investigation was conducted by the FBI, Huntington, WV Resident Agency and the Kentucky State Police. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
Mexican Man Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used a false identification document to obtain a job was sentenced today to six months in federal prison.
Jose Lopez-Garcia, age 35, a citizen of Mexico illegally present in the United States and living in Cedar Rapids, Iowa, received the prison term after a June 7, 2018, jury verdict finding him guilty of one count of unlawful use of an identification document.
Evidence at trial showed that Lopez-Garcia used a fraudulent permanent resident card, also known as a “green card,” bearing a number assigned to a female born in Cuba in 1934, when he completed an employment form on November 18, 2016, at a business in Cedar Rapids. Lopez-Garcia also used a fraudulent “green card” when he applied for work at another Cedar Rapids business on February 22, 2017.
Lopez-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lopez-Garcia was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Garcia is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-24-LRR.
Follow us on Twitter @USAO_NDIA.
Merced Former CEO and Licensed Nurse Practitioner Pleads Guilty to Health Care FraudRead the Press Release
FRESNO, Calif. — Sandra Haar, 57, of Merced, pleaded guilty today to health care fraud and conspiracy to receive kickbacks, U.S. Attorney McGregor W. Scott announced.
Haar was the founder and chief executive officer of Horisons Unlimited, a nonprofit public benefit corporation that provided health and dental services in Merced and surrounding communities. According to court documents, between January 1, 2014, and March 2017, Haar orchestrated a scheme to bill Medicare and Medi-Cal for services she knew were not reimbursable, and she profited by over $3.7 million from her fraud. For example, Haar billed Medi‑Cal for health and dental services that were not rendered and for unnecessary health care services. She also billed Medi-Cal for office visits with purportedly licensed doctors when the patients instead were dispensed Suboxone, an opioid medication, in the parking lots of McDonald’s and Rite Aid in baggies.
According to the plea agreement, Haar also received thousands of dollars in kickbacks in cash from an account executive at a laboratory in exchange for using it for Horisons patients’ laboratory testing.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), the California Department of Health Care Services, and the California Bureau of Medi-Cal Fraud & Elder Abuse. Assistant U.S. Attorneys Lee S. Bickley and Michael Tierney are prosecuting the case.
Haar is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on January 28, 2019. Haar faces a maximum statutory penalty of 20 years in prison and a fine of twice the value of Haar’s gain. 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.
Massapequa High School Teacher Charged with Transportation and Possession of Child PornographyRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Joseph Zanco with transportation and possession of child pornography. The charges relate to images and videos of child pornography in Zanco’s Google account and on electronic devices found in his residence when members of law enforcement executed a search warrant. Zanco was arrested today and will be arraigned this afternoon before United States Magistrate Judge Anne Y. Shields.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the charges.
“As alleged, Zanco possessed and transported hundreds of images of child pornography, crimes that contribute to the victimization of minor children, while he was employed in a position of trust as a teacher,” stated United States Attorney Donoghue. “The protection of innocent children is a priority for this Office and our law enforcement partners. We will continue to make every effort to ensure that those who contribute to the victimization of children will be brought to justice.” Mr. Donoghue extended his grateful appreciation to ICE-HSI’s Child Exploitation Group for its investigative work and assistance.
“This case is particularly troubling because the defendant allegedly committed these crimes while employed as a teacher,” stated HSI Special Agent-in-Charge Melendez. “HSI actively works with our law enforcement partners in the shared fight against those who are engaged in the spread of this content, especially those who have been entrusted with the education of our youth.”
According to court filings, beginning on April 13, 2018, Zanco, a teacher at Massapequa High School, began uploading hundreds of images of child pornography to the Google Drive storage feature of his Google account. Google, in accordance with its policies and federal law, flagged these uploads, suspended Zanco’s account and notified law enforcement. Thereafter, law enforcement obtained search warrants for Zanco’s residence and his Google account. The search of the Zanco’s Google account uncovered child pornography, and the search of his laptop computer and cell phone revealed additional images and videos of child pornography.
If convicted of the transportation of child pornography count, Zanco faces a mandatory minimum of five years’ imprisonment and a maximum of 20 years’ imprisonment.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, 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.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael R. Maffei is in charge of the prosecution.
The Defendant:
JOSEPH M. ZANCO
Age: 43
Massapequa, New YorkE.D.N.Y. Docket No. 18-CR-412 (JFB)
Maryland MS-13 Member Ordered to Serve Two Consecutive Life Sentences for Federal Racketeering Conspiracy, Murder, and Other Violent CrimesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Raul Ernesto Landaverde-Giron, a/k/a “Humilde,” a/k/a “Decente,” age 28, of Silver Spring, Maryland, today to two consecutive sentences of life in prison for conspiracy to participate in a racketeering enterprise in connection with his gang activity as a member of La Mara Salvatrucha, or MS-13, and other violent crimes, namely murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; using, carrying, and discharging a firearm during a crime of violence; and murder resulting from the use, carrying, and discharging of a firearm during a crime of violence. A federal jury convicted Landaverde-Giron of those charges on March 14, 2018, after a three-week trial.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur; Attorney General Jeff Sessions; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Captain Amal Awad, Interim Chief of the Hyattsville City Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Evidence presented at trial showed that branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Montgomery County, and Prince George’s County, Maryland. Landaverde-Giron was a member of the MS-13 Normandie Locos Salvatrucha Clique.
According to evidence presented at the trial, from at least 2012 through at least 2016, MS-13 members planned and committed numerous crimes, including murders and attempted murders in Prince George’s County and Frederick County. Gang members also extorted owners of illegal businesses, among other crimes. Witnesses testified that MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Serious violations of MS-13 rules, such as cooperating with law enforcement, could result in the issuance of a “greenlight,” or order to be killed. Participation in violent acts directed at rival gangs, or as directed by gang leadership, increased the respect accorded to that member.
Trial evidence showed that on November 30, 2013, Landaverde-Giron, along with two other Normandie Clique members, murdered an individual in Frederick, Maryland, who had fled El Salvador to escape a greenlight imposed by MS-13 members in El Salvador. After a co-conspirator recognized the victim in Frederick, Normandie Clique members called an MS-13 leader in prison in El Salvador to confirm that the greenlight was still in effect. A co-conspirator then lured the victim to a wooded area in Frederick, where he shot the victim in the head and Landaverde-Giron and another co-conspirator stabbed the victim in the face and neck. Landaverde-Giron was promoted within the Normandie Clique for his participation in this murder.
Landaverde-Giron pleaded guilty today to illegally reentering the U.S. after having been deported, and was sentenced to six months in prison. Landaverde-Giron has been detained since his arrest.
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.
United States Attorney Robert K. Hur commended HSI Baltimore, Frederick Police Department, Prince George’s County Police Department, Hyattsville City Police Department, and Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Lindsay Eyler Kaplan and William D. Moomau, and Trial Attorney Francesca Liquori with the Justice Department’s Organized Crime and Gang Section, who prosecuted the case.
Maryland MS-13 Member Ordered to Serve Two Consecutive Life Sentences for Federal Racketeering Conspiracy, Murder, and Other Violent CrimesRead the Press Release
Raul Ernesto Landaverde-Giron, aka “Humilde,” and “Decente,” 28, of Silver Spring, Maryland, was sentenced today by U.S. District Judge Peter J. Messitte to two consecutive sentences of life in prison for conspiracy to participate in a racketeering enterprise in connection with his gang activity as a member of La Mara Salvatrucha, or MS-13, and other violent crimes, namely murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; using, carrying and discharging a firearm during a crime of violence; and murder resulting from the use, carrying and discharging of a firearm during a crime of violence. A federal jury convicted Landaverde-Giron of those charges on March 14, after a three-week trial.
The conviction was announced by Attorney General Jeff Sessions; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Captain Amal Awad, Interim Chief of the Hyattsville City Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Evidence presented at trial showed that branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. Landaverde-Giron was a member of the MS-13 Normandie Locos Salvatrucha Clique.
According to evidence presented at the trial, from at least 2012 through at least 2016, MS-13 members planned and committed numerous crimes, including murders and attempted murders in Prince George’s County and Frederick County. Gang members also extorted owners of illegal businesses, among other crimes. Witnesses testified that MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Serious violations of MS-13 rules, such as cooperating with law enforcement, could result in the issuance of a “greenlight,” or order to be killed. Participation in violent acts directed at rival gangs, or as directed by gang leadership, increased the respect accorded to that member.
Trial evidence showed that on Nov. 30, 2013, Landaverde-Giron, along with two other Normandie Clique members, murdered an individual in Frederick, Maryland, who had fled El Salvador to escape a greenlight imposed by MS-13 members in El Salvador. After a co-conspirator recognized the victim in Frederick, Normandie Clique members called an MS-13 leader in prison in El Salvador to confirm the greenlight was still in effect. A co-conspirator then lured the victim to a wooded area in Frederick, where he shot the victim in the head and Landaverde-Giron and another co-conspirator stabbed the victim in the face and neck. Landaverde-Giron was promoted within the Normandie Clique for his participation in this murder.
Landaverde-Giron pleaded guilty today to illegally reentering the United States after having been deported, and was sentenced to six months in prison. Landaverde-Giron has been detained since his arrest.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by HSI Baltimore, Frederick Police Department, Prince George’s County Police Department, Hyattsville City Police Department, and Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office. The case was prosecuted by Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland.
Manhattan U.S. Attorney Announces Criminal Charges Against Zürcher Kantonalbank of Switzerland, with Deferred Prosecution Agreement Requiring Payment of $98.5 Million, as Well as Guilty Pleas of Two Zürcher Kantonalbank BankersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, and Don Fort, Chief, Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced the filing of criminal charges against ZÜRCHER KANTONALBANK (“ZKB”), a financial institution headquartered in Zurich, Switzerland. ZKB is charged with conspiring to help U.S. taxpayer-clients evade their U.S. tax obligations, file false federal tax returns, and otherwise hide hundreds of millions of dollars in offshore bank accounts held at ZKB.
Mr. Berman also announced a deferred prosecution agreement with ZKB (the “Agreement”), under which ZKB admitted to its unlawful conduct in assisting U.S. taxpayer-clients in violating their legal duties. The admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement requires ZKB to pay a total of $98.5 million. The $98.5 million figure reflects, in part, a credit given to ZKB because of its cooperation in this case. However, the amount of ZKB’s cooperation credit was reduced by the Government due to ZKB’s actions, as described in the Statement of Facts, in dissuading two indicted ZKB bankers from cooperating with U.S. authorities for years after their indictment. Those indicted bankers, STEPHAN FELLMANN and CHRISTOF REIST, also pled guilty today.
The criminal charge against ZKB is contained in an Information (the “Information”) alleging one count of conspiracy to willfully and knowingly (1) defraud the IRS, (2) file false federal income tax returns, and (3) evade federal income taxes. If ZKB abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charges.
ZKB has also agreed to provide ongoing assistance to the Department of Justice, including providing detailed information about accounts in which U.S. taxpayers have a direct or indirect interest, including detailed information as to other banks that transferred funds into those accounts or that accepted funds when the ZKB accounts were closed. In addition, ZKB has agreed to cooperate with prosecutors in making treaty requests to Switzerland or other countries for account information.
Manhattan U.S. Attorney Geoffrey S. Berman said: “ZKB and two of its bankers have admitted to conspiring to assist U.S. taxpayers in evading their tax obligations. The bank enabled taxpayers to hide accounts from the IRS and actively sought to win the business of Americans looking to evade taxes. After doing so, ZKB dissuaded the two bankers from cooperating with U.S. authorities, which has today resulted in a reduction in the bank’s cooperation credit. The substantial financial penalties imposed on the bank, and the two bankers’ pleas, should make clear that helping U.S. taxpayers to be tax evaders will not be tolerated.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “ZKB and the other defendants in this case knew that U.S. taxpayers were maintaining undisclosed ‘black money’ accounts at ZKB in order to avoid their tax obligations and did nothing to prevent it. Today’s agreement and guilty pleas send a clear message that this type of conduct will not be tolerated. The Department will continue to work with our partners at IRS-CI to prosecute financial institutions and individuals that conspire to defraud the United States.”
IRS-CI Chief Don Fort said: “Today’s resolution with ZKB and the guilty pleas of two bank employees send a strong message of enforcement and commitment to the international banking community as well as U.S. taxpayers. When individuals and entities hide behind shell corporations and anonymous bank accounts, they are not only cheating the U.S. government, they are cheating the honest taxpaying citizens who are obeying the law and doing the right thing.”
According to the Information, statements made during the proceedings today, and other documents filed in Manhattan federal court, including the Statement of Facts to the Agreement:
The Offense Conduct
From at least in or about 2002 through in or about 2009, ZKB helped certain U.S. taxpayers with accounts at ZKB evade their U.S. tax obligations, file false federal tax returns with the IRS, and otherwise hide accounts held at ZKB from the IRS (hereinafter, “undeclared accounts”). ZKB did so by opening and maintaining undeclared accounts for U.S. taxpayers at ZKB, and by allowing third-party asset managers to open undeclared accounts for U.S. taxpayers at ZKB. ZKB held approximately 2,000 undeclared accounts on behalf of U.S. taxpayer-clients, who collectively evaded over $39 million in U.S. taxes, between 2002 and 2013.
In furtherance of a scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, ZKB undertook, among other actions, the following:
- ZKB entered into approximately 349 “code word agreements” with U.S. taxpayer-clients under which the bank agreed not to identify the U.S. taxpayers by name on bank documents, but rather to identify the U.S. taxpayers by code name, in order to reduce the risk that U.S. tax authorities would learn the identities of the U.S. taxpayers. ZKB understood that a primary reason why U.S. taxpayers sought these “code word” accounts was to evade detection by U.S. tax authorities.
- ZKB opened and maintained accounts for many U.S. taxpayer-clients held in the name of non-U.S. corporations, foundations, trusts, or other legal entities (collectively, “structures”), thereby helping those U.S. taxpayers conceal their beneficial ownership of the accounts. Some of the structures had no business purpose (“sham structures”), but rather, existed solely for the purpose of helping ZKB’s U.S. taxpayer-clients hide their offshore assets.
- ZKB agreed to hold bank statements and other mail relating to approximately 750 accounts of U.S. domiciled taxpayer-clients at ZKB’s offices in Switzerland, rather than send them to U.S. taxpayer-clients in the United States, which helped ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
- ZKB solicited new business through the website www.swiss-bank-accounts.com, which was operated by a third party, and which resulted in the opening of accounts at ZKB for U.S. taxpayer-clients whose accounts were undeclared.
ZKB knew that certain U.S. taxpayer-clients were maintaining undeclared accounts at ZKB in order to evade their U.S. tax obligations, in violation of U.S. law. ZKB understood the legal prohibitions regarding tax evasion to be distinct from ZKB’s obligations under its Qualified Intermediary Agreement. Certain ZKB bankers commonly used the term “Schwarzgeld” – German for “black money” – internally to refer to undeclared accounts, including those held by U.S. citizens. Until the middle of 2008, ZKB did not prevent any U.S. persons from opening an account if they refused to fill out a Form W-9, even though ZKB knew that such accounts were, or were highly likely to be, undeclared. Indeed, in May 2006, internal ZKB documents explicitly discussed the profitability of “[n]on-disclosed U.S. persons.”
At its high-water mark in 2008, ZKB had approximately $794 million in assets under management relating to undeclared accounts held by U.S. taxpayer-clients. From 2002 through 2013, ZKB earned approximately $21 million in profits on approximately $24 million gross revenues from its undeclared U.S. taxpayer accounts, including accounts held through structures.
In early 2008, U.S. enforcement actions against the Swiss banking institution UBS became public. In or about July 2008, UBS announced that it would cease providing cross-border private banking services to U.S.-domiciled clients. Rather than immediately closing down its own U.S. taxpayer undeclared accounts as a result of the UBS investigation, ZKB, through its external asset manager (“EAM”) desk, instead treated UBS’s decision to stop accepting U.S. taxpayer-clients as a business opportunity, and actively sought to increase its U.S. taxpayer-client base. ZKB gained many U.S. taxpayer-clients through EAMs working with the bank.
However, in 2008 and 2009, at the same time as ZKB’s EAM Desk proactively sought to increase its U.S. taxpayer-client base, ZKB also began implementing a number of measures that gradually limited securities accounts held by U.S. taxpayer-clients. At first the restrictions applied only to former UBS clients, but ZKB expanded its restrictions over time. By June of 2009, ZKB decided to close its business with all U.S. domiciled clients holding securities accounts, and in 2011, ZKB decided to exit its business with all remaining U.S.-domiciled customers. By 2012, ZKB had closed virtually all accounts held by U.S. domiciled taxpayers, and for those U.S. clients domiciled outside of the U.S., ZKB sought a Form W-9 and proof of U.S. tax compliance. ZKB has now terminated all U.S. cross-border business.
Indictment of ZKB Employees and ZKB’s Response to the Indictment
Despite ZKB’s cooperation with the Government in this case, the Government views the actions of ZKB with respect to indicted bankers FELLMANN and REIST, described in the Statement of Facts, as inconsistent with a policy of full cooperation. Those actions, accordingly, have reduced the amount of cooperation credit afforded by the Government to ZKB.
In December 2012, three ZKB bankers – FELLMANN, REIST, and Otto Hüppi – were charged in the Southern District of New York with conspiracy to defraud the United States and the IRS for their role in ZKB’s offense. Although ZKB retained independent U.S. counsel for the bankers, beginning in 2013 and continuing through 2015, ZKB’s in-house counsel and, at times, ZKB employees from the Human Resources department and other departments, regularly met with FELLMANN and REIST. At those meetings, which were not attended by FELLMANN and REIST’s independent U.S. counsel, ZKB, among other things, made statements that caused FELLMANN and REIST to feel dissuaded from reaching out to the U.S. Attorney’s Office in order to explore the possibility of cooperating. In addition, ZKB’s in-house counsel suggested to FELLMANN that he did not have any information of value to contribute to the U.S. Attorney’s Office’s ongoing investigation. Furthermore, based on conversations with ZKB, FELLMANN and REIST felt that their continued employment at ZKB and ZKB’s ongoing payment of their legal fees would be threatened should they take steps that were viewed by ZKB as inconsistent with the bank’s own interests. Due in part to these discussions with ZKB, FELLMANN and REIST did not seek to cooperate with the investigation until the summer of 2015, approximately two and a half years after being indicted.
* * *
FELLMANN, 53, a Swiss citizen, and REIST, 60, a Swiss citizen, each pled guilty to one count of conspiracy to willfully fail to file returns, supply information, or pay tax. FELLMANN and REIST each face a maximum sentence of one year in prison. The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentences imposed on the defendants will be determined by the judge.
FELLMANN and REIST are each scheduled to be sentenced before U.S. District Judge J. Paul Oetken on November 30, 2018.
Hüppi remains a fugitive.
Mr. Berman praised the outstanding investigative work of IRS-CI, and thanked the Justice Department’s Tax Division for its assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul, Noah Solowiejczyk, and Andrew D. Beaty are in charge of the prosecution.
- ZKB entered into approximately 349 “code word agreements” with U.S. taxpayer-clients under which the bank agreed not to identify the U.S. taxpayers by name on bank documents, but rather to identify the U.S. taxpayers by code name, in order to reduce the risk that U.S. tax authorities would learn the identities of the U.S. taxpayers. ZKB understood that a primary reason why U.S. taxpayers sought these “code word” accounts was to evade detection by U.S. tax authorities.
Manchester Resident Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Debra Kerouac, 28, of Manchester, New Hampshire, pleaded guilty to one count of producing child pornography.
A sentencing hearing is scheduled for November 20, 2018. Under the terms of a plea agreement, which is subject to review and approval by the court, Kerouac will serve 25 years in prison and remain under supervised release for 20 years after she is released from prison.
According to documents filed in the case and statements made at the change of plea hearing, sometime before May 24, 2017, Kerouac produced visual depictions of a minor female engaging in sexually explicit conduct. Kerouac used a cellular phone to produce the images. Kerouac’s activities were discovered based on a lead from a case investigated by the FBI in Duluth, Minnesota. A Duluth FBI agent notified the Bedford office of the FBI and an arrest warrant and search warrant were executed on May 24, 2017 in Manchester.
“Few crimes are as reprehensible as the sexual exploitation of a child,” said U.S. Attorney Murray. “The impact of such acts on the child, family members, and those close to them may be severe and long-lasting. The U.S. Attorney’s Office is committed to protecting our children and making our community safer by prosecuting those who produce child pornography.”
“The production of child pornography is an assault against the most vulnerable members of our society, and with today's plea, Ms. Kerouac is accepting responsibility for preying on and exploiting her young victim,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI is committed to working with our law enforcement partners to identify and apprehend predators like her who carry out these heinous crimes.”
The FBI and the Manchester Police Department participated in the investigation of this case. Staff from the Hillsborough County Child Advocacy Center assisted in the case. Assistant United States Attorneys Donald A. Feith and Helen White Fitzgibbon prosecuted the case.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Man Sentenced to Federal Prison for Concealing Assets During His BankruptcyRead the Press Release
MISSOULA - Randall Alan Franz, a 59-year-old resident of Sandpoint, Idaho, was sentenced on Thursday to 8 months in prison followed by three years of supervised release, and ordered to pay $205,084.79 in restitution after pleading guilty to concealing assets in bankruptcy. Chief U.S. District Judge Dana Christensen announced the sentence.
Franz’s mother passed away in 2009. Franz was appointed as personal representative of her estate in October, 2010, a responsibility he held until he was removed in September of 2015. Franz was to split his mother’s estate, ultimately valued at almost $600,000, equally between himself and his two brothers. While one brother received approximately $120,000, Franz made no distribution to his other brother.
In the meantime, Franz filed a chapter 11 bankruptcy in July 2010, which was converted to a chapter 7 bankruptcy in January 2013. During his bankruptcy, Franz liquidated assets from his mother’s estate and hid his share of the proceeds from his Chapter 7 Trustee. Though Franz withdrew more than $270,000 of probate estate funds between April and October of 2013, Franz’s bankruptcy trustee received none of it. Based on this deception, the United States Bankruptcy Court revoked Franz’s discharge on November 5, 2015, and Franz was referred for criminal prosecution.
“The bankruptcy system is an important safety net for all Americans. People like the defendant who misuse it for their own personal gain threaten its integrity and will be prosecuted, ” said Kurt Alme, U.S. Attorney for the District of Montana.
The case was prosecuted by Assistant United States Attorneys Chad C. Spraker and Keith A. Jones, and investigated by the Federal Bureau of Investigation and the United States Trustee’s Office.
Lower Brule Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Thaddeus James Grant, age 26, was indicted on July 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 10, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 4, 2018, Grant assaulted a female victim and said assault resulted in serious bodily injury.
The charge is merely an accusation and Grant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Grant was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Laveen Man Sentenced to 30 Months in Prison for Strangling GirlfriendRead the Press Release
PHOENIX – Today, Colin Lee Juan, 33, of Laveen, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 30 months in prison followed by three years of supervised release. Juan had previously pleaded guilty to assault by strangulation of an intimate partner.
Juan admitted to strangling the victim, his then-girlfriend, impeding her airflow. The incident occurred on the Gila River Indian Community, and both Juan and the victim are members of that tribe.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-1134-PHX-DJH
RELEASE NUMBER: 2018-106_Juan
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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.
Kansas Man Sentenced for Federal Gun and Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – A Kansas man who was caught with crystal methamphetamine and a firearm in Hurricane in November of 2017 was sentenced today to 132 months, or 11 years, in federal prison, announced United States Attorney Mike Stuart. Bunthia Can Thach, 39, previously pled guilty to possession with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. U.S. Attorney Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hurricane Police Department.
“Patrolling our highways is inherently dangerous, because law enforcement officers never know what they are going to face when they approach a car,” said United States Attorney Mike Stuart. “I’m so grateful for the brave men and women that do this work. They take dangerous drug dealers like Thach off our streets.”
Around midnight on November 10, 2017, an officer with the Hurricane Police Department observed a vehicle parked just off the Interstate 64 exit ramp at Hurricane. The officer noted the vehicle had Kansas registration plates, was not running, and approached the vehicle to see if it contained a stranded motorist. The officer located Thach and another individual in vehicle. The officer also observed that Thach was wearing a gun holster and saw a loose bullet in the floorboard of the vehicle. Thach subsequently told the officer he hid a handgun under the passenger seat when the officer was approaching the vehicle. Officers then recovered a loaded Glock .45 caliber handgun with a 30-round extended magazine from under the seat. Officers also located approximately 54 grams of methamphetamine from a bag in the rear of vehicle.
Thach admitted that he traveled from Kansas to purchase a large quantity of marijuana which he was going to transport to North Carolina. Thach further admitted that he intended to sell the methamphetamine and that he brought the handgun from Kansas for protection during the trip. Officers also discovered that Thach had previously been convicted of multiple felony offenses and was prohibited from possessing a firearm.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Kansas City, Kan., Man Pleads Guilty to Meth TraffickingRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man pleaded guilty Monday and admitted he was arrested with almost 1.5 pounds of methamphetamine found in both his car and residence, U.S. Attorney Stephen McAllister said.
Edgar Martinez-Quintana, 36, Kansas City, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted the Kansas City Kan., Police Department stopped his car on Aug. 25, 2017. They found methamphetamine hidden in a roof console and more than $1,900 in cash. A later search of Martinez-Quintana’s residence by officers uncovered more methamphetamine.
Sentencing is set for Oct. 29. Both parties have agreed to recommend 10 years in federal prison. McAllister commended the Kansas City, Kan., Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Jared Maag for their work on the case.
Justice Department Settles Race Discrimination Lawsuit Against Mississippi Delta Community CollegeRead the Press Release
The Justice Department today announced that it has reached a settlement with Mississippi Delta Community College (MDCC) to resolve allegations that MDCC discriminated against Pamela Venton on the basis of race in violation of Title VII of the Civil Rights Act of 1964, as amended. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin, and religion.
According to the United States’ complaint, filed today in the United States District Court for the Northern District of Mississippi, MDCC did not have a legitimate, nondiscriminatory reason for paying Pamela Venton, who is black, a significantly lower annual salary than four of her white coworkers working in the same position with the same duties and responsibilities. Ms. Venton complained internally about the wage disparities and, while MDCC agreed to adjust her salary beginning with the next academic school year, it did not compensate Ms. Venton for her lost wages.
“This settlement agreement reflects the Civil Rights Division’s continued commitment to vigorous enforcement of Title VII’s prohibition against race-based pay decisions,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
Under the terms of the settlement agreement, MDCC has agreed to pay $75,000 in back pay and compensatory damages to Ms. Venton. In addition, MDCC has agreed to implement appropriate training on identifying and correcting unlawful wage discrimination.
Ms. Venton originally filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Jackson, Mississippi, office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The United States is represented in this case by Trial Attorney Torie Atkinson of the Civil Rights Division’s Employment Litigation Section.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at http://www.justice.gov/crt.
Justice Department Secures the Denaturalization of Individual Convicted of Sexual Abuse by a Substitute Parent/CustodianRead the Press Release
RALEIGH – United States Attorney Robert, J. Higdon, Jr., the U.S. Department of Justice, U.S. Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS) jointly announced that on August 8, 2018, Chief Judge James C. Dever III of the U.S. District Court for the Eastern District of North Carolina entered an order that revoked the naturalized U.S. citizenship of a child sex offender, restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship, and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities. The court found that prior to naturalizing, Agyemang engaged in sexual abuse of his minor stepchild, for which he was later convicted after pleading guilty. This prior conduct rendered Agyemang ineligible U.S. citizenship because he did not show the moral conduct necessary for naturalization. Additionally, throughout his naturalization proceedings Agyemang misrepresented and hid his unlawful activity.
Mr. Higdon commented: “Under our laws, United States citizenship is conferred on those who demonstrate honesty and integrity, who respect our laws, and who can demonstrate the moral character necessary to be a positive and cultivating member of American society. The defendant fell short of that mark in every regard and we are satisfied that this Court saw fit to revoke his naturalized citizenship. As part of the Justice Department’s mission to enforce the nation’s immigration laws, we will seek denaturalizations in cases where individuals are dishonest and where criminal activity demonstrated the lack of moral character necessary for American citizenship.”
“The Justice Department is committed to preserving the integrity of our nation’s immigration system and the propriety of the government’s adjudication of immigration benefits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue the denaturalization of individuals who lie on their naturalization applications or lie during the naturalization interview, especially in a circumstance like this one, which involved an alien who repeatedly sexually abused the minor victim on almost a daily basis.”
Prempeh Ernest Agyemang, a native of Ghana, was admitted to the United States in 1989. Agyemang then married a United States citizen who had a young child. When the child was in fourth grade, Agyemang began sexually abusing her starting in late 1999 or early 2000. Notably, after the sexual abuse began, while under oath during his naturalization interview, Agyemang stated that he had never committed a crime or offense for which he was not arrested. Relying on this answer, USCIS granted his naturalization application and Agyemang became a U.S. citizen later that year. On November 5, 2003, Mr. Agyemang pleaded guilty to sexually assaulting his minor stepchild on April 1, 2000. Specifically, Mr. Agyemang pleaded guilty to Sexual Activity by a Substitute Parent or Custodian.
“This order sends a clear message to individuals who commit any type of sexual offense, particularly those involving children, during the naturalization process – we will investigate you and seek you out to ensure that justice is done,” said Acting ICE Director Ronald D. Vitiello. “ICE will continue to work with our partners at the Justice Department’s Office of Immigration Litigation – District Court Section to hold individuals responsible for sexual offenses, especially those involving child victims.”
“Mr. Agyemang repeatedly sexually abused a minor child and then lied about the sexual abuse to obtain naturalization," said USCIS Director L. Francis Cissna. "By doing so, he threatened to undermine the hard work our officers do every day to protect the integrity of the immigration system. USCIS is glad to see him held accountable and applauds our partners at the Justice Department for helping bring him to justice.”
This case was investigated by ICE Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was litigated by John Inkeles of OIL-DCS, with support from ICE Assistant Chief Counsel Cori White, Gaston County District Attorney Locke Bell, and the United States Attorney’s Office for the Eastern District of North Carolina.
Justice Department Secures Denaturalization of Guardian Convicted of Sexual Abuse of A MinorRead the Press Release
On Aug. 8, Chief Judge James C. Dever III of the U.S. District Court for the Eastern District of North Carolina entered an order that revoked the naturalized U.S. citizenship of a child sex offender; restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship; and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system and the propriety of the government’s adjudication of immigration benefits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue the denaturalization of individuals who lie on their naturalization applications or lie during the naturalization interview, especially in a circumstance like this one, which involved an alien who repeatedly sexually abused the minor victim on almost a daily basis.”
“Under our laws, United States citizenship is conferred on those who demonstrate honesty and integrity, who respect our laws, and who can demonstrate the moral character necessary to be a positive and cultivating member of American society,” said U.S. Attorney Robert J. Higdon. “The defendant fell short of that mark in every regard and we are satisfied that this Court saw fit to revoke his naturalized citizenship. As part of the Justice Department’s mission to enforce the nation’s immigration laws, we will seek denaturalization in cases where individuals are dishonest and where criminal activity demonstrated the lack of moral character necessary for American citizenship.”
Prempeh Ernest Agyemang, a native of Ghana, was admitted to the United States in 1989. Agyemang then married a United States citizen who had a young child. When the child was in fourth grade, Agyemang began sexually abusing her starting in late 1999 or early 2000. Notably, after the sexual abuse began, while under oath during his naturalization interview, Agyemang stated that he had never committed a crime or offense for which he had not been arrested. Relying on this answer, U.S. Citizenship and Immigration Services (USCIS) granted his naturalization application and Agyemang became a U.S. citizen later that year. On Nov. 5, 2003, Mr. Agyemang pleaded guilty to sexually assaulting his minor stepchild on April 1, 2000. Specifically, Agyemang pleaded guilty to sexual activity by a Substitute Parent or Custodian.
“This order sends a clear message to individuals who commit any type of sexual offense, particularly those involving children, during the naturalization process – we will investigate you and seek you out to ensure that justice is done,” said U.S. Immigration and Customs Enforcement (ICE) Acting Director Ronald D. Vitiello. “ICE will continue to work with our partners at the Justice Department’s Office of Immigration Litigation – District Court Section to hold individuals responsible for sexual offenses, especially those involving child victims.”
"Mr. Agyemang repeatedly sexually abused a minor child and then lied about the sexual abuse to obtain naturalization," said USCIS Director L. Francis Cissna. "By doing so, he threatened to undermine the hard work our officers do every day to protect the integrity of the immigration system. USCIS is glad to see him held accountable and applauds our partners at the Justice Department for helping bring him to justice.”
This case was investigated by ICE Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was litigated by John Inkeles of OIL-DCS, with support from ICE Assistant Chief Counsel Cori White, Gaston County District Attorney Locke Bell, and the United States Attorney’s Office for the Eastern District of North Carolina.
Justice Department Reaches Settlement Agreement with Native American Community Health Center Resolving the USERRA Claims of United States Navy ReservistRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Native American Community Health Center (Native Health), a private corporation located in Phoenix, Arizona. The settlement agreement resolves allegations that Native Health violated the employment rights of Commander Mario L. Islas, a Navy Reservist, under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). USERRA safeguards the rights of uniformed servicemembers, including Reservists, to all benefits of employment following periods of absence due to military service obligations.
Commander Islas was a Family Practice Physician for Native Health before being promoted to Medical Director in September 2014. According to the complaint that Commander Islas filed with the Department of Labor (DOL), his military service and status as a Navy Reservist were motivating factors in Native Health’s decision not to renew his employment contract in 2016. The DOL complaint alleged that on Oct. 30, 2015, Commander Islas notified Native Health that he would be attending pre-mobilization training in December 2015 and January 2016; would be deployed overseas starting in March 2016; and would return to his position as Medical Director in early 2017. In a letter dated Jan. 25, 2016, Native Health notified Commander Islas that it would not be renewing his employment contract.
Under the terms of the settlement, Native Health has agreed to pay Commander Islas $25,000 in monetary relief for lost wages and benefits. In addition, Native Health will provide training on servicemembers’ rights to its managers, supervisors and administrative staff, and will review and revise, if necessary, its employee handbook to ensure that current and future employees are aware of their USERRA rights.
“Members of our Navy Reserve, like Commander Islas, make many sacrifices in defense of our country, including spending months or years away from their jobs and families,” said Acting Assistant Attorney General John Gore. “The Department of Justice is committed to ensuring that our servicemembers’ employment rights are protected while they are away defending our country.”
Commander Islas initially filed his complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS), which investigated the matter and attempted to reach a resolution between the parties. VETS referred the complaint to the Justice Department’s Civil Rights Division, Employment Litigation Section, after resolution efforts failed.
The Justice Department’s Civil Rights Division gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s website at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Jury convicts cybercriminal for hacking universitiesRead the Press Release
ATLANTA – Olayinka Olaniyi, a citizen of Nigeria, was convicted by a federal jury on August 9, 2018, after a three-day trial, on charges of conspiracy to commit wire fraud, computer fraud and aggravated identity theft. Co-defendant, Damilola Solomon Ibiwoye, pleaded guilty to similar charges and was sentenced on January 31, 2018.
“These defendants used trickery to lure and exploit their unsuspecting victims, but they will now face the consequences of their scheme in federal prison,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for the collaborative work by our national and international law enforcement partners in this case, and we will continue to vigorously prosecute cybercriminals who hide behind the anonymity of the internet to commit these types of crimes.”
“The FBI is determined to arrest criminals who believe they can hide out on the internet, protected by geographic boundaries, and prey on the American people and our institutions,” said J. C. “Chris” Hacker, Special Agent in Charge of the FBI Atlanta Division. “This case clearly shows the benefits of global cooperation between the United States and international law enforcement.”
“We were proud to support our federal partners in bringing down this criminal enterprise,” said Georgia Attorney General Chris Carr. “We will remain vigilant in investigating and prosecuting all who attempt to defraud honest, hard-working Georgians.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Olaniyi and Ibiwoye were behind several “phishing scams” that targeted colleges and universities in the United States, including the Georgia Institute of Technology (“Georgia Tech”) and the University of Virginia. While both are Nigerian citizens, they committed their crimes while living in Kuala Lumpur, Malaysia, and were extradited to the United States to face these charges.
A “phishing scam” is the act of sending fraudulent emails that appear to come from legitimate enterprises for the purpose of tricking the recipients into providing personal information, including usernames and passwords. Olaniyi and Ibiwoye directed phishing emails to college and university employees. Once they had possession of employee logins and passwords, they were able to steal payroll deposits by changing the bank account into which the payroll was deposited. Also, while logged into the university system through the stolen logins and passwords, these defendants were able to gain access to employee W2 forms, which they used to file fraudulent tax returns. The attempted theft was over $6 million.
The stolen funds were routed into U.S. bank accounts, and the evidence showed that access to these bank accounts was acquired through the use of romance scams, where fraudsters pose on dating sites and apps as potential partners to gain the trust of their victim. At some point, the fraudster will make a request to deposit money into their victim’s account and claim to need all of the account information, including their account number, routing number, passwords, and answers to security questions. In this case, all of that information was then used to funnel the proceeds of theft through those accounts and out of the country.
Olayinka Olaniyi, 34, of Nigeria is scheduled to be sentenced on October 22, 2018, at 10:00 a.m., before U.S. District Judge Steve C. Jones.
Damilola Solomon Ibiwoye, 29, of Nigeria was sentenced to three years, three months in prison to be followed by three years of supervised release on January 31, 2018.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey A. Brown, Deputy Chief of the Complex Frauds Section, and Special Assistant U.S. Attorney Laura D. Pfister prosecuted the case.
Joplin Woman Sentenced for Meth Conspiracy, Package Shipped via UPSRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., woman was sentenced in federal court today for her role in a conspiracy to distribute methamphetamine that was shipped via UPS from Arizona.
Jennifer M. Conant, 38, of Joplin, was sentenced by U.S. District Judge Roseann Ketchmark to 10 years in federal prison without parole.
On March 28, 2018, Conant pleaded guilty to participating in a conspiracy to distribute methamphetamine. Conant admitted that she had a package shipped via UPS, which contained approximately one pound of methamphetamine, to a residence in Seneca, Mo. On May 6, 2017, law enforcement officers tracked the suspicious package from its origin in Arizona and upon its arrival at the Joplin UPS conducted a search to confirm the package contained methamphetamine.
A federal agent conducted a controlled delivery of the package to its Seneca destination on May 7, 2017. Shortly after the package was delivered, officers executed a search warrant and located the package in a bedroom of the residence. An occupant of the residence told investigators that Conant had the package shipped to his address and that she had inquired about the package just prior to law enforcement executing the search warrant. He then contacted Conant, who arrived at the residence approximately 45 minutes later to pick up the package and was arrested.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Newton County, Mo., Sheriff’s Department and the Ozark Drug Enforcement Team.
Jefferson County, Ohio man sentenced for counterfeit chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Travis Knight, of Mingo Junction, Ohio, was sentenced today to 37 months incarceration for counterfeit currency charges, United States Attorney Bill Powell announced.
Knight, age 33, pled guilty to one count of “Uttering Counterfeit Currency,” and one count of “Attempted Uttering of Counterfeit Currency” in April 2018. Knight admitted to passing counterfeit $50 bills and attempting to pass counterfeit $50 bills in Marion and Monongalia Counties in October and November 2017.
Knight was also ordered to pay $12,450 in restitution for the crimes.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The United States Secret Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.Jamaican Woman Sentenced for Lottery Scam Targeting Elderly VictimsRead the Press Release
ALEXANDRIA, Va. – A Jamaican citizen was sentenced today to six years in prison for orchestrating a lottery fraud that scammed elderly victims out of approximately $385,000.
“The financial and emotional harm these scams cause elderly victims and their family members can be devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This office will continue to aggressively prosecute crimes involving elder fraud, and we are firmly committed to bringing the offenders to justice, no matter where they reside.”
According to court documents, Tessicar Karelle Jumpp, 34, conspired with several of her family members and associates to scam elderly victims out of their savings. From her home in Jamaica, Jumpp contacted victims in the United States and used an alias to pretend to be a representative of Publishers Clearing House. Jumpp falsely informed her victims that they had won a lottery prize of millions of dollars, but that in order to collect their winnings, they would need to pay taxes and advance fees. Jumpp then instructed her victims to send funds through wire transfers and in packages of cash mailed to her co-conspirators in the United States. Those co-conspirators would keep a portion of the funds and then send the remainder to Jumpp and others in Jamaica. Jumpp’s victims included an 85-year-old woman from Great Falls who was scammed out of over $335,000, and an 85-year-old Massachusetts man who was defrauded out of almost $50,000.
“The U.S. Postal Inspection Service is grateful for the strong working relationships that led to the successful resolution of this case,” said Eric Shen, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “Postal Inspectors will continue to work together with our other federal law enforcement partners to ensure that criminals who target elderly and vulnerable victims in the United States cannot hide behind international borders.”
Earlier this year, the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
“This case is an excellent example of the interagency cooperation required to dismantle an international scheme designed to target elderly U.S. citizens,” said Brian A. Michael, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark Field Office. “HSI’s financial expertise coupled with our international footprint demonstrates even those criminals operating outside of the United States will be pursued vigorously.”
“This investigation exemplifies the positive outcomes that the FBI and our partner law enforcement agencies are bringing about in a continued effort to protect all American citizens, but particularly our senior citizens, from scams,” said Matthew J. DeSarno, Special Agent in Charge of the Criminal Division, FBI Washington Field Office. “In addition to the Special Agents, Intelligence Analysts, and Inspectors, I want to thank our foreign partners in Jamaica for their coordination, which led to today’s sentencing.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Eric Shen, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Brian A. Michael, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Samantha Bateman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-416.
Inmate Sentenced for Mailing Threats, Powder to Federal OfficialsRead the Press Release
CINCINNATI – Rodney D. Cydrus, 48, formerly of Chillicothe, was sentenced in U.S. District Court to 36 months in federal prison for mailing threatening letters to federal officials. Cydrus was an inmate at Lebanon Correctional Institution at the time of the offense.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Michael R. Barrett.
According to court documents, on five separate occasions in January 2017, Cydrus mailed letters threatening to injure numerous government officials, including the President of the United States, federal judges, the FBI and the Federal Public Defender’s Office. Four of the letters were addressed to the FBI and one letter was addressed to the Federal Public Defender’s Office.
For example, one letter to the FBI states “You are one dead motherfucker…As soon as I get out I’m going to get everybody I can in your office…Die Die Die…I promise my word I’ll get at least 30 of you before you kill me.” Cydrus further stated he wanted to “go out with a bang” by killing or kidnapping a federal agent.
As part of the threats, Cydrus included a powdered substance (namely his own medication) in the at least one letter.
“Cydrus caused a HAZMAT team to respond twice, requiring the employees who opened the letters to be quarantined,” U.S. Attorney Glassman said. “The federal officials whom Cydrus targeted have hard enough jobs as it is. Disrupting operations and creating an atmosphere of fear is a serious offense, and it’s important to deter this kind of intimidation campaign.”
Cydrus was indicted by a federal grand jury in February 2017 and pleaded guilty on January 18 to one count of mailing threatening communications.
U.S. Attorney Glassman commended the investigation of this case by the FBI and U.S. Secret Service, as well as Assistant United States Attorney Timothy S. Mangan, who represented the United States in the case.
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Illegal Alien Pleads Guilty to Unlawful Re-entry After RemovalRead the Press Release
Gulfport, Miss. – Joaquin Luna-Cijeros, age 27, a citizen of Mexico, pleaded guilty today before U.S. District Judge Sul Ozerden, to the crime of unlawful re-entry by an alien after removal, announced U.S. Attorney Mike Hurst, and Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans.
In May, 2018, a Homeland Security Investigations (HSI) confidential informant identified Luna-Cijeros as an alien who was illegally present in the United States and who had been previously removed. The confidential informant told officials that Luna-Cijeros was working as a kitchen worker at Juan Tequila’s Restaurant in Saucier, Mississippi. Based on this information, HSI began an investigation which revealed that Luna-Cijeros was living in Long Beach, Mississippi, and working in Saucier.
Immigration databases revealed that on or about February 3, 2015, the U.S. Border Patrol had encountered, apprehended, and processed Luna-Cijeros for removal near Rio Grande Valley, Texas. Luna-Cijeros was lawfully ordered removed and, on or about February 4, 2015, Luna-Cijeros was verified by federal officials as having been physically removed from the United States pursuant to his removal order. At that time, he was given notice that he could not lawfully re-enter the United States for a minimum of five years, and that an unlawful re-entry could subject him to criminal prosecution.
Luna-Cijeros will be sentenced by Judge Ozerden on November 13, 2018. He faces a maximum penalty of 2 years in prison and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
The case was investigated by Homeland Security Investigations and U.S. Customs & Border Protection. Assistant United States Attorney Stan Harris is the prosecutor for the case.