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21 September 2018
Peter G. Strasser Takes Oath of Office as the United States Attorney for the Eastern District of LouisianaRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser held his investiture today at the Hale Boggs Federal Court Building in front of his former colleagues, members of the judiciary and a host of well-wishers. United States District Judge Lance Africk presided over the Oath of Office ceremony. On June 20, 2018, Mr. Strasser was nominated by President Trump and was confirmed by the Senate on August 28, 2018 and was sworn in by United States District Chief Judge Nannette Jolivette Brown on September 10, 2018.
Over the course of his career, he has been a partner at Chaffe McCall, LLP; an Assistant U.S. Attorney; a diplomat; a Navy officer; and a Tulane adjunct professor. In recognition of his career and community accomplishments, Mr. Strasser was selected as a New Orleans CityBusiness Leadership in Law Honoree.
As an Assistant U.S. Attorney for Louisiana’s Eastern District, he was the head of the organized crime and economic crime sections. Among his trial accomplishments were the convictions of former Louisiana Governor Edwin Edwards and associates on racketeering charges. As a Special Assistant U.S. Attorney in the District of Puerto Rico, Mr. Strasser prosecuted at bench trials and argued on appeal the convictions of the Navy-Vieques protestors. As a result of his dedicated and superior efforts in law enforcement, he received the U.S. Attorney General’s John Marshall Award and the Metropolitan Crime Commission’s Excellence in Law Enforcement Award.
Serving overseas for 12 years as a DOJ OPDAT Resident Advisor at Embassies in Eastern Europe, Asia, and Africa, Mr. Strasser designed and implemented rule of law programs to assist host countries improve prosecutorial capacity to combat high-priority criminal activity, help strengthen independent judiciaries, and develop new criminal procedure codes. He served as an OSCE Parliamentary Election Monitor over the elections that led to the 2003 Rose Revolution in the Republic of Georgia. He later served as an OECD Anti-Corruption Monitor for Georgia. In the book “The Contractor: How I Landed in a Pakistani Prison and Ignited a Diplomatic Crisis,” Mr. Strasser was featured for his integral role in the release of a former Special Forces soldier who had been charged with double homicide for shooting two apparent robbers on the streets of Lahore. For his exemplary activities in Georgia and Pakistan, he twice received the DOJ Special Achievement Award.
U.S. Attorney Strasser is a retired Navy Reserve Captain, JAGC, having served world-wide and as a military judge. For his exemplary service, he was awarded the Legion of Merit Medal. Mr. Strasser received his B.A., with distinction, from the University of Virginia and his J.D. from Washington and Lee Law School. Fluent in German, he also attended the University of Vienna (Austria).
Paterson Police Officer Charged with Civil Rights and Other OffensesRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a City of Paterson police officer for multiple offenses arising from the assault of an attempted suicide victim at St. Joseph’s Medical Center in Paterson, U.S. Attorney Craig Carpenito announced.
Police Officer Roger Then, 29, of Paterson, was charged in a five-count indictment with one count of conspiring to violate an individual’s civil rights; two substantive counts of violating an individual’s civil rights; misprision of felony for concealing the civil rights violation; and falsifying a record for submitting a false police report about the assault. Then was previously charged by criminal complaint in May 2018. He will be arraigned in federal court on a date to be determined.
According to documents filed in this case and statements made in court:
Then and Ruben McAusland were police officers with the Paterson Police Department. On March 5, 2018, they responded to a call from an attempted suicide victim. The victim called 911 and was taken by the Paterson Fire Department to St. Joseph’s Medical Center. Then and McAusland responded to the victim’s residence and subsequently followed the Fire Department to the hospital to monitor the victim.
Two videos captured some of the events that took place in the hospital that night. A hospital surveillance video shows the victim sitting in a wheelchair and McAusland standing at the hospital admissions desk. The victim appeared to throw an object down the hallway. McAusland, looking angry, pushed the victim’s wheelchair with his hands and punched the victim in the face. As the victim fell towards the ground, still in the wheelchair, Then grabbed the victim by the back of the neck and pushed the victim to the ground.
In the second video, taken by Then using his cellular telephone, the victim was on his back in a hospital bed. The victim said, “right here? See my cheek?” Then turned the camera toward himself and smiled. Then next turned the camera back towards the victim and McAusland. The victim said, “ha, ha, bitch.” McAusland responded, “I’m a what?” The victim said, “do it.” McAusland put on a pair of hospital gloves and proceeded to violently strike the victim twice across the face. McAusland then stood over the victim and said, “I ain’t fucking playing with you.” The victim covered his face with his hands and was silent. McAusland continued, “calm your ass down.” Rather than intervening to stop McAusland’s assault of the victim, Then recorded it.
Then and McAusland submitted a police report in connection with the events of March 5, 2018. The police report did not mention that McAusland punched the victim and that Then grabbed the victim by the neck and pushed the victim towards the ground, as captured in the first video. The police report also did not mention that McAusland violently struck the victim, twice, in a hospital room, as depicted in the second video. Nor did the police report mention that Then had recorded the second assault on his cell phone and failed to intervene to stop it from happening.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
The conspiracy to violate civil rights count and the two substantive violation of civil rights counts each carries a maximum penalty of 10 years in prison. The misprision of felony count carries a maximum penalty of three years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
On June 27, 2018, McAusland pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with possessing with intent to distribute narcotics and deprivation of civil rights under color of law. He is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal, Deputy Chief of the Criminal Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Owner of Los Angeles-Area Clothing Outlets Pleads Guilty and Admits Failing to Report $3.7 Million in Income to the Internal Revenue ServiceRead the Press Release
LOS ANGELES – A Downey man who operates second-hand clothing stores across the Los Angeles area pleaded guilty today to failing to report $3.7 million in corporate income to the Internal Revenue Service.
Jose Martin Andrade Flores, 53, the owner and operator of American Superior Used Clothing, Inc., pleaded guilty this afternoon to subscribing to a false corporate tax return for the 2013 tax year.
According to a plea agreement filed in this case, American Superior was in the business of recycling used clothing, which it then resold at retail stores located on Melrose Boulevard and in Hollywood, Echo Park and Pasadena. The company also engaged in bulk wholesale transactions with buyers worldwide, as well as selling merchandise at Rose Bowl swap meets and sidewalk locations in East Los Angeles.
From 2012 through 2016, Flores concealed from his corporate tax preparer cash sales and deposits into foreign bank accounts that were made on behalf of American Superior. As a result, Flores admitted in court, the tax returns he filed for American Superior for those five years failed to report a total of $3,766,473 in income to the IRS.
At today’s hearing, Flores specifically pleaded guilty to subscribing to a false corporation income tax return (Form 1120) that he filed for American Superior for 2013. In that year, American Superior had income of approximately $3,440,769, but Flores instead reported only $2,505,183, omitting income of $935,586.
Flores pleaded guilty before United States District Judge Christina A. Snyder, who scheduled a sentencing hearing for December 3. As a result of today’s guilty plea, Flores faces a statutory maximum sentence of three years in federal prison.
As part of this case, Flores agreed to pay all back taxes, interest and penalties associated with his willful failure to accurately report American Superior’s income. Flores has paid the IRS $1,189,331, which includes $439,632 in penalties.
This case was investigated by IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorney Ranee Katzenstein, Chief of the Major Frauds Section.
Operator of Counter Antivirus Service “Scan4you” Sentenced to 14 Years in PrisonRead the Press Release
A Latvian “non-citizen,” meaning a citizen of the former USSR who resided in Riga, Latvia, was sentenced to 168 months in prison today for offenses related to his operation of “Scan4you,” an online counter antivirus service that helped computer hackers determine whether the computer viruses and other malicious software they created would be detected by antivirus software, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division.
Ruslans Bondars, 38, was convicted on May 16, following a five-day jury trial, of one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of conspiracy to commit wire fraud, and one count of computer intrusion with intent to cause damage and aiding and abetting.
“Ruslans Bondars helped malware developers attack American businesses,” said Assistant Attorney General Benczkowski. “The Department of Justice and its law enforcement partners make no distinction between service providers like Scan4You and the hackers they assist: we will hold them accountable for all of the significant harm they cause and work tirelessly to bring them to justice, wherever they may be located.”
“Ruslans Bondars designed and operated a service that provided essential aid to some of the world’s most destructive hackers,” said U.S. Attorney Terwilliger. “This prosecution demonstrates our commitment to combating global computer crime by taking away the essential tools upon which hackers rely.”
“We continue to face sophisticated cyber threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists,” said FBI Special Agent in Charge DeSarno. “This prosecution should serve as an example to those who assist or facilitate criminal hacking activity that they will be exposed and held accountable no matter where they are in the world.”
According to testimony at trial and court documents, from at least 2009 until 2016, Bondars operated Scan4you, which for a fee provided computer hackers with information they used to determine whether their malware would be detected by antivirus software, including and especially by antivirus software used to protect major U.S. retailers, financial institutions and government agencies from computer intrusions.
A Scan4you customer, for example, used the service to test malware that was subsequently used to steal approximately 40 million credit and debit card numbers, as well as approximately 70 million addresses, phone numbers and other pieces of personal identifying information, from retail store locations throughout the United States, causing one retailer approximately $292 million in expenses resulting from the intrusion.
Another Scan4you customer used the service to assist the development of “Citadel,” a widely used malware strain that was used to infect over 11 million computers worldwide, including in the United States, and resulted in over $500 million in fraud-related losses. The Citadel developer took advantage of a special feature of Scan4you that allowed its integration directly into the Citadel malware toolkit through an Application Programming Interface, or API. The API tool allowed Scan4you users the flexibility to scan malware without the need to directly submit the malware to Scan4you’s website.
At its height, Scan4you was one of the largest services of its kind and had at least thousands of users. Malware developed with the assistance of Scan4you included some of the most prolific malware known to the FBI and was used in major computer intrusions committed against American businesses.
Scan4you differed from legitimate antivirus scanning services in multiple ways. For example, while legitimate scanning services share data about uploaded files with the antivirus community and notify their users that they will do so, Scan4you instead informed its users that they could upload files anonymously and promised not to share information about the uploaded files with the antivirus community.
In issuing the sentence, the court found a loss amount of $20.5 billion. In addition to the term of imprisonment, U.S. District Judge Liam O’Grady ordered Bondars to serve three years of supervised release. A decision regarding forfeiture and payment of restitution to victims of the offenses is forthcoming.
The FBI Washington Field Office investigated the case. Trial Attorneys C. Alden Pelker and Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Kellen Dwyer and Laura Fong of the Eastern District of Virginia prosecuted the case. The Government of Latvia, including the Latvia State Police International Cooperation Department, the Latvia State Police Cybercrime Unit, and the General Prosecutor’s Office of the Republic of Latvia – International Cooperation Division, provided assistance and support during the investigation. Additional assistance was provided by the Criminal Division’s Office of International Affairs, the FBI’s Atlanta Field Office and the Operational Technology Division, and the U.S. Attorney’s Offices for the District of Minnesota and the Northern District of Georgia.
Omaha Men Sentenced for Walgreen’s RobberyRead the Press Release
United States Attorney Joe Kelly announced that Kevin Mitchell, age 32, was sentenced in federal court today in Omaha, Nebraska, for one count of robbery. The Honorable Robert F. Rossiter, Jr., sentenced Mitchell to 151 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Mitchell will begin a three-year term of supervised release.
On January 17, 2018, Mitchell, brandishing a machete, robbed the Walgreen’s at 3001 Dodge Street in Omaha, Nebraska. While waiving the machete, he scratched the clerk’s arm and stated “see it’s sharp” before demanding cash from the store’s safe. He obtained $4,300 from the store that Omaha Police Officers recovered a short time later. Mitchell was tracked to 3021 Burt Street and was located with $2,690 in his pocket. An additional $1,682 was found in a ceiling tile in the lower level of an apartment building.
U.S. Attorney Joe Kelly remarked that Mitchell having two prior robbery convictions contributed to Judge Rossiter giving the 12 ½ year sentence. Repeat violent offenders will be pursued vigilantly by federal authorities.
The case was investigated by the Federal Bureau of Investigation Great Plains Violent Crimes Task Force and Omaha Police robbery unit.
Omaha Man Sentenced to 7 years for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Jon C. Carr was sentenced on September 20, 2018, for distributing child pornography in federal court in Omaha. The Honorable John M. Gerrard sentenced Carr to 84 months of imprisonment. There is no parole in the federal system. After his release from prison, Carr will begin a 5-year term of supervised release. He was further ordered to pay $3,000 in restitution to the victims depicted in the images.
The investigation began with a cyber-tip from AOL. AOL reported that an IP address traced to Carr’s residence distributed an image during an online chat. That image depicted the genitalia of a 2- to 4-year-old girl and was determined to be child pornography.
A search warrant was served on Carr’s Omaha residence. Two hundred images of child pornography were recovered from his phone. A dropbox link was observed. A search warrant for Carr’s dropbox account recovered more than 50 videos and images of child pornography with victims as young as 2 years old.
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 Attorney’s 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.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Oakland Man Found Guilty of Conspiracy to Distribute Methamphetamine and Money LaunderingRead the Press Release
Jackson, Miss – Michael Maes, age 30, of Oakland, California was found guilty today on 8 of 9 charges of distribution of methamphetamine and money laundering after a three and a half day jury trial in front of U.S. District Judge Halil Sul Ozerden, announced U.S. Attorney Mike Hurst and HSI Special Agent in Charge Jere T. Miles and DEA Special Agent in Charge Derryle Smith.
Between June 2016 and February 2017, Maes was sending packages of methamphetamine to addresses in Slidell, Louisiana for distribution in the Southern District of Mississippi. The individuals distributing that methamphetamine would then deposit proceeds from those sales into Wells Fargo accounts in Biloxi and Gulfport at Maes’s direction. All of the individuals distributingmethamphetamine on the Mississippi Coast had previously pled guilty to their activities. The jury, after several hours of deliberation, found him guilty of conspiracy to distribute methamphetamine, attempt to possess with intent to distribute methamphetamine, conspiracy to commit money laundering and five specific acts of money laundering. He was acquitted of one specific act of money laundering.
Maes will be sentenced on December 13, 2018, by Judge Ozerden, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by Homeland Security Investigations and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorneys John Meynardie and Kathlyn Van Buskirk.
North Carolina Man Found Guilty of Failing to Pay $58,400 in Child SupportRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that a jury returned a verdict yesterday finding Steve Matisko, Jr., 54, of Raleigh, North Carolina, guilty of willfully failing to pay child support. The trial was held before Chief United States District Judge Nancy Torresen sitting in Bangor.
Evidence introduced at trial showed that in 1997 the Maine District Court found that Matisko was the legal and biological father of a child and ordered Matisko to pay $56 per week in child support. The evidence showed that Matisco willfully failed to make child support payments for the next approximately 20 years. The evidence also showed that Matisko lived in Maine, Alaska, Ohio, Texas and North Carolina during that period of time and worked for cash so as to avoid his support obligations. Matisko’s unpaid child support obligation totaled $58,406.
Chief Judge Torresen will sentence Matisko after the United States Probation Office conducts a presentence investigation. He faces up to two years in prison and one year of supervised release, a $250,000 fine and court-ordered restitution in the amount of $58,406.
The investigation was conducted by the Office of the Inspector General for the U.S. Department of Health and Human Services as well as the Division of Support Enforcement and Recovery for the Maine Department of Health and Human Services.
Myrtle Beach Man Arrested Following Federal Indictment for Felon in Possession of a FirearmRead the Press Release
Florence, South Carolina ------- United States Attorney Sherri A. Lydon announced today that Jadarius Oshar McCray, age 22, of Myrtle Beach, South Carolina, was arrested following a single-count federal Indictment charging felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). The maximum penalty McCray could receive is ten years imprisonment. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Myrtle Beach Police Department. The case is assigned to Assistant United States Attorney Lauren Hummel of the Florence office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Monongalia County man admits to child pornography productionRead the Press Release
ELKINS, WEST VIRGINIA – Ian Michael Toothman, of Morgantown, West Virginia, has admitted to a child pornography charge, United States Attorney Bill Powell announced.
Toothman, age 29, pled guilty to one count of “Aiding and Abetting Production of Child Pornography.” Toothman admitted to producing child pornography in December 2017 in Monongalia County.
Toothman faces up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Resident Pleads Guilty to Unlawful Use of Merchant Mariner CredentialsRead the Press Release
JEFFREY M. DESALVO, age 35, a resident of Picayune, Mississippi, pleaded guilty yesterday to three counts of unlawful use of a merchant mariner license in violation of Title 18, United States Code, Section 2197.
According to court documents, on February 4, 2015, DESALVO entered into a settlement with the U.S. Coast Guard wherein he agreed to surrender his merchant mariner credentials in lieu of having them permanently revoked. In connection with the settlement agreement, DESALVO submitted an affidavit to the U.S. Coast Guard in which he stated that his credentials had been destroyed, when, in truth and fact, his credentials had not been destroyed. In addition to the foregoing, DESALVO illegally used his suspended credentials to obtain work as a boat captain for four different companies that operated on the Mississippi River.
DESALVO faces a maximum term of imprisonment of not more than five years, a supervised release term of three years, and a fine of $250,000.00 for each count. U.S. District Judge Nannette Jolivette Brown set sentencing for December 13, 2018.
U.S. Attorney Strasser praised the work of the United States Coast Guard in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Mexican National and Co-Conspirator Sentenced to Prison for Attempting to Transport Drugs from California to AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two men have been sentenced in Juneau for attempting to transport cocaine and marijuana from California to Alaska for distribution.
Jorge Lopez-Villareal, 29, a citizen of Mexico residing in Juneau, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve three years in prison, followed by four years of supervised release. His co-conspirator, Carlos Zavala-Flores, 39, of Juneau, was previously sentenced in June 2018 to serve three years in prison, followed by five years of supervised release. Both have pleaded guilty to drug conspiracy charges.
According to court documents, on April 19, 2017, Zavala-Flores and Lopez-Villareal flew together from Juneau to Los Angeles. On April 26, 2017, the two were traveling up the I-5 in a vehicle, which contained quantities of cocaine and marijuana intended for distribution in Alaska. Later that day, Oregon State Police conducted a traffic stop on the vehicle after observing the vehicle crossing over the centerline several times. At the traffic stop, the Trooper noticed a strong odor of fabric softener and marijuana emanating from the vehicle. When Zavala-Flores was questioned, the Trooper learned that both Zavala-Flores and Lopez-Villareal intended on driving the vehicle up the I-5 to Seattle so they could ship the vehicle to Juneau. Upon arriving in Seattle, the two were planning to split the cost to barge the vehicle to Juneau, and both later intended to fly up to Juneau from Washington via a commercial airline.
A subsequent search of the vehicle revealed approximately 6.8 pounds of cocaine and 22 pounds of marijuana intended for distribution in Juneau. A search of Lopez-Villareal revealed he was carrying $6,750 in U.S. currency.
Homeland Security Investigations (HSI) and Oregon State Police (OSP) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Mexican National Residing in Modesto Is Sentenced to 17.5 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Feliciano Ochoa Reyes, 34, of Mexico and Modesto, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 17 and a half years in prison for conspiring to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Reyes supplied methamphetamine to various distributors in the Sacramento and Modesto areas between 2014 and 2015. Reyes was arrested on March 29, 2015, after law enforcement officers watched one of his employees receive a delivery of 15 kilograms of methamphetamine at a Modesto stash house. The methamphetamine delivery was worth approximately $50,000. When agents searched the property, they found a laboratory for converting liquid methamphetamine to crystal methamphetamine and more than $23,000 in cash. On December 3, 2014, officers pulled over the car of a Reyes customer who had just received four kilograms of methamphetamine from Reyes.
This case was the product of an investigation by the Drug Enforcement Administration, the Central Valley High Intensity Drug Trafficking Area, and the California Multi-Jurisdictional Methamphetamine Enforcement Team. Assistant U.S. Attorney Amanda Beck prosecuted the case.
Co-defendants Jose Acosta and Jorge Rios have each been sentenced to 87 months in prison. Co-defendant Jose Luis Aguilar was sentenced to 48 months in prison. Co-defendant Luis Garcia Barreto was sentenced to 47 months in prison. Co-defendant Diego Velasquez was sentenced to 30 months in prison. Juan Antonio Mendoza Meraz was sentenced in a related case to 56 months in prison. Charges are pending against the final co-defendant, Jose Vasquez. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican Man Sentenced to Time Served for Unlawfully Re-Entering the United StatesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced Benigno Godinez-Cortez, 45, of Ahuacuotzingo, Guerrero, Mexico was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to time servied (70 days) in prison for unlawfully re-entering the United States. He pled guilty on August 14.
According to court records, on July 10, the defendant entered the United States illegally from Canada by crossing a railroad trestle near Calais. U.S. Border Patrol agents located the defendant shortly after he entered. He is a citizen of Mexico who had been deported after his arrest in 1994 on immigration charges and did not have immigration documents allowing him to enter.
The investigation was conducted by the U.S. Border Patrol and U.S. Customs and Border Protection.
Mexican Man Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used a fraudulent identification document to obtain a job was sentenced today to almost four months in federal prison.
Jose Castaneda-Rivera, age 49, a citizen of Mexico illegally present in the United States and living in Britt, Iowa, received the prison term after a July 9, 2018, guilty plea to one count of false use of an immigration identification document.
In a plea agreement, Castaneda-Rivera admitted he used a fraudulent State of Iowa Non-Driver Identification Card when he completed an employment form on April 4, 2013, at a business in Forest City, Iowa. Castaneda-Rivera knew the identification card was false and had not been issued to him by the State of Iowa. Castaneda-Rivera used the fraudulent identification card to falsely claim he was authorized to work in the United States when Castaneda-Rivera knew he was not authorized to work.
Castaneda-Rivera was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Castaneda-Rivera was sentenced to 114 days’ imprisonment and fined $2,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Castaneda-Rivera is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the Department of Homeland Security, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3010-LRR. Follow us on Twitter @USAO_NDIA.
Member of Nevada City-Based Conspiracy Sentenced to over 7 Years in Prison for Multi-Million Dollar Bank and Title Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Larry Allen Todt, 66, formerly of Malibu, was sentenced to over seven years in prison and ordered to pay over $3,000,000 in restitution for his role in a fraudulent mortgage elimination scheme, U.S. Attorney McGregor W. Scott announced.
On December 6, 2017, Todt was convicted following trial on one count of conspiracy and one count of bank fraud.
According to court documents, between April 22, 2010, and November 18, 2011, Todt was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity, Pillow Foundation. The conspirators indicated to the homeowners that these entities would offer protection against the banks.
Todt ran a branch of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the sale of the homes. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home with the proceeds split between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.
One co-defendant, George B. Larson, formerly of San Rafael, was convicted at trial along with Todt and sentenced to 121 months in prison. One other co-defendant, Michael Romano, of Benicia, was sentenced to 37 months in prison following his guilty plea. Remus A. Kirkpatrick, formerly of Oceanside, and Laura Pezzi, of Roseville have previously pleaded guilty. Tisha Trites and Todd Smith, both of San Diego, pleaded guilty in related cases. All are awaiting sentencing.
Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are awaiting trial. The charges against DiChiara and Castle are only allegations; both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Melbourne Man Sentenced to Thirty Years for Sexually Exploiting Minors and Assaulting A Federal Officer with A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced David Hardman (55, Melbourne) to 30 years in federal prison for sexually exploiting minors and for forcibly assaulting a federal officer with a deadly weapon. The court also ordered Hardman to forfeit the proceeds obtained from the sale of his residence, which he had used to commit the sexual exploitation offenses, and to forfeit the digital devices he used to commit his offenses. Hardman pleaded guilty on April 26, 2018.
According to court documents, Hardman produced DVD videos of minors engaged in sexually explicit activity and sold the DVDs to buyers throughout the United States. During a period of seven years, Hardman exploited nine identified minors and made $346,664 from the sale of the DVDs. On August 17, 2017, FBI agents and officers from the Melbourne Police Department executed a search warrant at Hardman’s home. Hardman hid in his bathroom with a firearm. When the officers entered the room, Hardman pointed the weapon at the officers as he tried to chamber a round. The officers tackled Hardman and retrieved the firearm.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Massena Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Brandon Jock, age 35, of Massena, New York, was sentenced yesterday to serve 30 years in federal prison following his plea of guilty to five federal felonies relating to child pornography offenses, announced United States Attorney Grant C. Jaquith, James Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI) and New York State Police Superintendent George P. Beach II.
In March of 2018, Jock pled guilty to Advertising Child Pornography, as a part of his participation in on-line groups that he administered specifically for the trading of child pornography. In addition, Jock was convicted of transporting child pornography over the internet into both an online group, and into cloud storage accounts that he then shared with others. The federal investigation resulted in the recovery of over 13,000 images and videos of child pornography that Jock had transported over the Internet to store in those accounts in order to trade.
This case was investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and was prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, the Project Safe Childhood Coordinator for the Northern District of New York.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Man Residing in California Convicted of Drug-related Money Laundering in OmahaRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr., sentenced Alberto Martinez-Salcido today to a term of time served following a 13-month period of incarceration. He received a two-year term of supervised release. Martinez-Salcido pleaded guilty to Conspiracy to Commit Money Laundering and Use of Facilities in Interstate Commerce in Aid of Racketeering, both felony offenses.
Defendant, then residing in California, and a co-conspirator residing in Nebraska laundered more than $14,000.00 of funds derived from the sale of controlled substances in Nebraska through bank accounts in the U.S. and Mexico. U.S. Immigration and Customs Enforcement has filed a detainer in the case.
This was a joint investigation led by the Omaha Division of Drug Enforcement Administration, Omaha Division, assisted by the Federal Bureau of Investigation Safe Streets Task Force, and additional state and local partners.
MS-13 Gang Member Pleads Guilty to April 2017 Quadruple MurderRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Freiry Martinez, a member of the Herndon City Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, pleaded guilty to racketeering charges in connection with his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos. The guilty plea was entered before United States District Judge Joseph F. Bianco.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
Martinez, who is now 17 years old and was 15 years and 11 months old at the time of the April 11 murders, initially was charged by a juvenile information that was filed under seal in the Eastern District of New York on July 10, 2017. Martinez fled from New York to Virginia and later to Maryland after the April 11 murders, and remained a fugitive until November 21, 2017, when he was arrested in Montgomery County, Maryland. Martinez, an illegal alien from El Salvador, subsequently was turned over to the Federal Bureau of Investigation and removed to the Eastern District of New York in custody by the United States Marshals Service. Following the government’s application to transfer Martinez to adult status for prosecution, the motion was granted today by Judge Bianco.
“Prosecution by prosecution, defendant by defendant, we are dismantling the MS-13 through an effort that will not end until they are ended,” stated United States Attorney Donoghue. “The unwavering resolve of the Eastern District, the FBI’s Long Island Gang Task Force and all our law enforcement partners will bring justice for the victims and the perpetrators alike.” Mr. Donoghue extended his sincere appreciation to the United States Marshals Service Fugitive Task Force, United States Attorney’s Office for the Eastern District of Virginia, United States Attorney’s Office for the District of Maryland, Montgomery County Police Department and Montgomery County State’s Attorney’s Office for assisting in this investigation.
“Most 15-year-olds are worried about a chemistry test at school or making the football team, not plotting a grotesque attack and murder of four other teenagers,” stated FBI Assistant Director-in-Charge Sweeney. “Our work with our law enforcement partners on the FBI Long Island Gang Task Force is proof a combined and concentrated effort to combat the evil that is MS-13 will work to stop more senseless murders. We want to assure the community we won’t let up in our pursuit of rounding up these gang members and stopping them from terrorizing neighborhoods on Long Island.”
“This guilty plea is a result of the dedicated work and collaboration of the Suffolk County Police Department, the Long Island Gang Task Force and the Eastern District,” stated SCPD Commissioner Hart. “We applaud the effort of prosecutors to ensure that Martinez would be tried as an adult to face the stiffest penalties possible. The deaths of these four young men committed at the hands of MS-13 gang members is incomprehensible and we hope today’s plea will send a clear message to gang members that we will not waver or tire from our commitment to dismantle gangs in Suffolk County. It is our hope that holding these perpetrators accountable will bring some measure of comfort and healing to the victims’ friends and families.”
“Due to the exceptional work by all of the law enforcement investigators involved and their agencies, Defendant Freiry Martinez will not be able to terrorize our communities and residents any longer,” stated NCPD Commissioner Ryder. “We have four families that have lost loved ones to the hands of MS-13 in these brutal and senseless killings. Rest assured, we will continue to engage this violence with our zero tolerance approach and will continue to remove these offenders from our streets.”
According to court filings and statements by the defendant at the guilty plea proceeding, on the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip at the direction of Martinez and other MS-13 members. The MS-13 members believed the victims to be members of a rival gang who were disrespectful toward the MS-13. Martinez and several MS-13 members and associates met in a wooded area behind the park where they distributed weapons, discussed the plan to kill the victims and then awaited their arrival. Once the female MS-13 associates arrived at the park, they led the victims to a wooded area and sent the MS-13 members a text message describing their location. Pursuant to their previously devised plan, Martinez and the other MS-13 members and associates surrounded the victims and killed Llivicura, Lopez, Tigre and Villalobos using machetes, knives and wooden clubs. The fifth intended victim escaped. After the attack, Martinez and his associates dragged the victims’ bodies to a more secluded spot and fled. The victims’ bodies were discovered the following evening.
When sentenced, Martinez faces a maximum of life in prison. Upon completion of his sentence, he faces deportation from the United States.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in this district. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in this district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, New York State Police and Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Michael T. Keilty and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
FREIRY MARTINEZ (also known as “Discreto,” “Sovietico” and “Freddy”)
Age: 17
Brentwood, New YorkE.D.N.Y. Docket No. 17-CR-364 (S-1)(JFB)
MEDIA ADVISORY-- Federal Officials to Hold Press Conference to Make Significant Law Enforcement AnnouncementRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Special Agent in Charge James C. Langenberg of the Albuquerque Division of the FBI, and Commander Todd J. Turner of the Air Force Office of Special Investigations, Detachment 814, will hold a press conference at 11:00 AM, TODAY, FRIDAY, SEPTEMBER 21, 2018, at the U.S. Attorney’s Office in Albuquerque, N.M., to make a significant law enforcement announcement.
WHO:
U.S. Attorney John C. Anderson
Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division
Commander Todd J. Turner of the Air Force Office of Special Investigations, Detachment 814
WHAT:
Press Conference
WHEN:
TODAY, FRIDAY, SEPTEMBER 21, 2018
11:00 A.M.
WHERE:
U.S. Attorney’s Office, District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials. Media representatives may begin to arrive at 10:30 a.m. Inquiries regarding logistics should be directed to USAO Media Coordinator Alyssa Ferda, contractor, at 505-224-1480 or [email protected].
Louisville Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Jackson, Miss. – Tray Beamon, 32, of Louisville, pled guilty today before Chief United States District Judge Daniel P. Jordan III, to conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On August 31, 2017, law enforcement agents executed a search warrant at Beamon’s residence. During the search, agents found 2 kilograms of methamphetamine, 30 pounds of marijuana, and 3 firearms. The case is the result of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed AOperation Highlife,@ which began as an operation targeting illegal narcotics distribution in east central Mississippi area that involved the distribution of methamphetamine, cocaine and marijuana. The distribution network encompasses the States of California, Tennessee, Alabama, Georgia and Mississippi.
"Methamphetamine has devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area," said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. "Today’s guilty plea stems from an extensive HSI effort with its federal, state and local partners to dismantle a drug trafficking organization that decimated parts of Mississippi and Alabama with methamphetamine smuggled into the U.S. from Mexico. This operation is a testament to the seamless partnership between HSI, the Mississippi Bureau of Narcotics and the Drug Enforcement Administration, and we are thankful for their assistance as well as the U.S. Attorneys’ to improve the lives of law-abiding residents throughout Mississippi and Alabama."
Beamon will be sentenced by Judge Jordan on December 21, 2018, at 9:00 a.m. and faces a maximum penalty of Life in prison and a $10,000,000 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug
trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, Mississippi Highway Patrol, United States Attorney=s Office for the Southern District of Mississippi and the United States Marshal’s Service. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Louisiana Man Sentenced to 30 Months in Prison for Possession of Firearms After Conviction of Misdemeanor Crime of Domestic ViolenceRead the Press Release
The United States Attorney, Richard W. Moore, announces that Antoine Q. Washington, a 29 year old resident of Monroe, Louisiana was sentenced to 30 months of incarceration for illegal possession of two firearms after being convicted of misdemeanor domestic violence.
According to a factual statement Washington signed in connection with his guilty plea, on February 10, 2017, ALEA Corporal Christen conducted a traffic stop of a vehicle driven by Washington for improper lane change. Washington was the sole occupant of the vehicle. During the stop, Corporal Christen smelled marijuana emanating from inside the vehicle. He then asked Washington to exit the vehicle. Corporal Christen then issued Washington a warning citation and detained him to conduct a probable cause search of the vehicle. Seized during the search, was an Arsenal, AK-47 rifle and a Ruger .40 caliber pistol. Also seized was more than 500 rounds of ammunition described as .940 Berdan-primed 7.62 x 39mm, FMJ, lead core Ammunition; .260 Wolf Ammunition 9mm x 19mm and Magtech Ammunition. Washington confessed to possession of the firearms and ammunition saying that he bought them off the street for $400.
At that time, Washington had been convicted of two domestic violence crimes, namely, Domestic Abuse Battery, on September 18, 2012, in the Fourth Judicial District Court, Parish of Ouachita, State of Louisiana case number, 12-M-002036; Assault DV, on July 14, 2009, in the County Criminal Court, Dallas County, Texas, case number MA0833712L.
Officers of the Alabama Law Enforcement Agency (ALEA) along with special agents of the Federal Bureau of Investigation (FBI) investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney Gina S. Vann.
Local Resident Pleads Guilty to Access Device FraudRead the Press Release
United States Attorney Peter G. Strasser announced that VINCENTIA ROQUES (“ROQUES”), age 40, of New Orleans, Louisiana, pleaded guilty yesterday to access device fraud.
According to documents filed in federal court, ROQUES worked part-time as a bookkeeper and office manager for several businesses located within the Eastern District of Louisiana. As the bookkeeper, ROQUES gained access to passwords and account numbers related to accessing bank accounts associated with each business. ROQUES also obtained direct access to financial account information and identifiers that permitted her to conduct fraudulent and unauthorized financial transactions with the money and credit accounts belonging to her employers.
The maximum penalty for access device fraud is ten years of imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victims. United States District Judge Carl J. Barbier set the sentencing hearing for December 13, 2018.
United States Attorney Peter Strasser praised the work of the United States Postal Investigative Service Internal Revenue Service in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Leader of Lawrence-Based Fentanyl, Heroin Trafficking Organization Sentenced to 135 Months in Federal PrisonRead the Press Release
BOSTON – The former leader of a Lawrence-based opioid trafficking organization was sentenced today in federal court in Boston for fentanyl, heroin, and cocaine conspiracy.
Santo Ramon Gonzalez Nival, 41, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge Denise J. Casper to 135 months in prison and five years of supervised release. Gonzalez Nival will be subject to deportation upon completion of his sentence. In June 2018, Gonzalez Nival pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine, and fentanyl and one count of illegal reentry of a deported alien.
On May 30, 2017, a large scale law enforcement operation dismantled two Lawrence-based drug trafficking organizations, one run by Juan Anibal Patrone, and another led by Gonzalez Nival, who was a source of supply for Patrone. Gonzalez Nival and approximately 28 co-conspirators were arrested, including nine members of his drug trafficking organization.
During the course of the investigation, over 500 grams of fentanyl were seized in connection with the Gonzalez Nival organization. During a wiretap, law enforcement intercepted Gonzalez Nival talking to one of his suppliers, Santo Ramon Nivar, about a “blue one” - believed to be fentanyl - that “was killing people.” Gonzalez Nival discussed wanting more of that fentanyl because his customers liked the strength and it could be cut multiple times, which meant more profit for him.
At the time of his arrest, Gonzalez Nival was illegally in the United States, having reentered after being deported most recently on May 19, 2009. During the investigation, Gonzalez Nival fled after being stopped by police when they took his false identification card to run it. In a subsequent intercepted call, Gonzalez Nival admitted to having been deported from the United States four times previously, and explained that he ran to avoid detectives who might fingerprint him.
Gonzalez Nival and the nine members of his organization have all been convicted: two sources of supply, Robert Frett Sierra and Santo Ramon Nivar; a drug preparer, Julio Baez Gonzalez; two couriers, Geronimo Gonfessor Gonzalez Nivar and Ruddy Rafael Soto Lara; and four redistributors, Bernaldo Rosario Santiago, Carlos Hernandez, Rory Connolly, and Diosmary Burgos.
Patrone pleaded guilty on Sept. 19, 2018, and is scheduled to be sentenced in January 2019.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Massachusetts State Police and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments assisted with the investigation. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
Lancaster County Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Lamonta Roberts, age 25, of Lancaster, South Carolina, has entered a guilty plea in federal court in Columbia, to possession with the intent to distribute methamphetamine and cocaine, a violation of 21 U.S.C. § 841(a)(1) and possession of a firearm during a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Chief Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on May 4, 2017, the Lancaster County SWAT team executed a search warrant at the home that Roberts and his brother shared. The search warrant was for clothing that the brother wore during a robbery. As the officers entered the residence, they saw cocaine in plain view. The officers obtained a second search warrant for the drugs. During their search, the officers found two (2) Glock pistols (one under a pillow on the bed and the other in a safe that also contained cash), narcotics and a digital scale from Roberts’ dresser with his identification. Following his arrest, the police heard Roberts’ state “the police got both of my guns”. Also, Roberts’ girlfriend gave a statement that she later retracted claiming ownership of everything in the house. The drugs were tested and determined to be methamphetamine and cocaine.
Ms. Lydon stated the maximum penalty for these charges is life imprisonment and/or a fine of $1,000,000.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Lancaster County Sheriff's Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
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Lafayette green company owner indicted for stealing more than $2 million from investorsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that a Lafayette man who owned a company that purported to sell chemical free disinfection machines was indicted for stealing more than $2 million from investors.
John K. Morrow, 48, of Lafayette, was indicted on four counts of wire fraud. According to the indictment, Morrow was the owner of a Louisiana company called UVC Technologies LLC, which was formed in 2011. UVC Technologies represented itself as providing green, chemical free disinfection machines utilizing ultraviolet germicidal irradiation. Instead of operating the business as represented to investors, he defrauded the investors out of $2,066,923 from 2011 to 2016. Although Morrow told investors that he would use funds for business expenses, he spent their funds on personal expenses.
Morrow faces up to 20 years in prison, three years of supervised release, restitution, forfeiture and a $250,000 fine.
The FBI investigated the case. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Justice Department honors Ohio County Sheriff’s Deputy in Second Annual Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
WASHINGTON – United States Attorney Bill Powell joined Attorney General Jeff Sessions and Justice Department leadership this week in announcing the recipients of the Second Annual Attorney General’s Award for Distinguished Service in Policing, recognizing the exceptional work of 25 law enforcement officers and deputies from 12 jurisdictions across the country.
“The Trump Administration supports law enforcement at all levels—and we always will,” said Attorney General Sessions. “The awards honor the incredible work that is being done across this country every day. This Department of Justice takes pride in announcing today’s winners of the Attorney General’s Award for Distinguished Service in Policing.”
“I was enormously proud to be there when Corporal White received the Attorney General’s Award. He was so deserving, but incredibly humble. Corporal White is a fantastic representative of our law enforcement community. So many members of law enforcement do incredible things every day for our communities without fanfare. It was great to see such a deserving person honored’” said Powell.
Ohio County Sheriff’s Corporal Richard White, III, was one of the honorees. He was recognized for his bravery and quick action in rescuing a 13-year-old girl and an adult female from swift flood waters along Wheeling Creek near Greenwood Cemetery on June 24, 2017. Corporal White put his life at risk to save others, preventing a tragedy.
The Justice Department has been committed to supporting law enforcement and continues to back the “women and men in blue,” as directed by President Trump’s February 2017 Executive Order. The Department has recently awarded grants to assist law enforcement and first responders who supported mass shootings in Las Vegas, Nevada, Parkland, Florida, and Santa Fe, Texas. In addition, the Department has helped police departments across America to hire hundreds more police officers through the COPS grant program.
The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. The Department received 207 nominations for 469 individuals ranging from state police departments, to local police, to campus public safety agencies. This award highlights the work that officers and deputies do to prevent, intervene in, and respond to crime and public safety issues.
Justice Department Seeks to Shut Down Tax Return Preparer Operating Stores in FloridaRead the Press Release
The United States filed a civil injunction suit seeking to bar Phillip Mott Harris II and his Florida-based business, 24/7 Tax Services, LLC from owning, operating, or franchising a tax return preparation business or preparing tax returns for others, the Justice Department announced today.
The complaint, filed in United States District Court in Florida, also requests that the court require Harris and the LLC to disgorge ill-gotten fees that they obtained from the U.S. Treasury through the alleged false tax return preparation.
According to the complaint, Harris and his tax preparation business prepare and file tax returns to falsely increase their customers’ refunds, and profit through exorbitant, often undisclosed fees, at the expense of their customers and the U.S. Treasury.
The complaint alleges that Harris and the LLC engage in misconduct, including:
- Falsely claiming the Earned Income Tax Credit;
- Claiming improper filing status (e.g., head of household even though the person is not entitled to that status);
- Fabricating businesses and related business income and expenses; and
- Charging deceptive and unconscionable fees.
According to the complaint, Harris previously worked at LBS Tax Services. Since September 2014, the United States has filed over 20 similar lawsuits in Florida, North Carolina, and Georgia, including suits against the franchisor of LBS and numerous former LBS franchisees and managers, many of whom allegedly rebranded and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained permanent injunctions and money judgments disgorging millions in ill-gotten tax preparation fees.
The IRS has a list of steps on its website that you can take and ten tips for choosing a tax preparer. Each year, the IRS releases the top 12 scams, known as the Dirty Dozen. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018, and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division at [email protected] with details.
Iowa Farmer Sentenced to Ten Months in Federal Prison for Using Money He Pledged to the USDARead the Press Release
A man who operated a northern Iowa farm and used farm proceeds for personal expenses, instead of paying off his USDA-backed line of credit, was sentenced today to ten months in federal prison.
David Pitz, age 36, from Elma, Iowa, received the prison term after an April 6, 2018, guilty plea to Conversion of Property Pledged to a Farm Credit Agency.
In a plea agreement, Pitz admitted he received a $125,000 guaranteed line of credit from the United States Department of Agriculture, to facilitate a loan with a local Elma, Iowa, bank. The line of credit was designed to be advanced to Pitz early each year to cover his farming expenses. Pitz was required to apply any crop sale proceeds, or other farm-related income, towards the debt owed on the line of credit. Instead of paying the money towards what he owed to the bank and USDA, Pitz used $117,020.68 in crop proceeds for personal expenses, including his purchase of a non-farm related building. After interest and other fees, Pitz acknowledged owing the bank and USDA over $177,000.
Pitz was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Pitz was sentenced to ten months’ imprisonment and was ordered to make $177,269.24 in restitution. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Pitz was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by United States Department of Agriculture – Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2012.
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Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Guatemalan man who used false identification documents to obtain a job was sentenced today to more than four months in federal prison.
Misael Saqueo Lopez-Tubac, age 36, a citizen of Guatemala illegally present in the United States and living in Waterloo, Iowa, received the prison term after an August 6, 2018, guilty plea to one count of unlawful use of identification documents.
In a plea agreement, Lopez-Tubac admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed employment paperwork and tax forms on July 23, 2015, at a business in Urbana, Iowa. The Social Security number and the Alien Registration number on the “green card” were issued other persons. Lopez-Tubac also used the same fraudulent Social Security card and “green card” when applying for work in Waterloo, Iowa, in September 2015, in Urbana in March 2016, and in Shell Rock, Iowa, in April 2016.
On May 8, 2018, ICE agents encountered Lopez-Tubac during a traffic stop in Waterloo. Lopez-Tubac told the agents that when he illegally entered the United States in March 2005, he was advised to enter the country with a woman and child and falsely claim they were his wife and child so that he would be released by immigration authorities if encountered. Lopez-Tubac and a woman and child were encountered by immigration authorities on March 30, 2005, and were released to maintain family unity pending immigration proceedings. Lopez-Tubac was not related to either the woman or the child.
A warrant was later issued for Lopez-Tubac’s arrest for unlawfully using another person’s social security number at a business in Postville, Iowa, but he was not found during an immigration enforcement action in May 2008. Lopez-Tubac’s whereabouts were unknown to immigration officials until his arrest on May 8, 2018.
Lopez-Tubac was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Lopez-Tubac was sentenced to 124 days’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Tubac is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
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-3020-LTS.
Follow us on Twitter @USAO_NDIA.
Illegal Alien Sentenced to Five Years on Immigration and Firearm OffensesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Jose Luis Alonso DeLeon was sentenced today by United States District Judge William Steele. DeLeon pled guilty without benefit of a plea agreement to an indictment charging him with possession of a firearm by an illegal alien, a violation of 18 USC Section 922(g), which carried a maximum penalty of up to ten years imprisonment and three years of supervised release; and illegal reentry of a removed alien, which carried a maximum penalty of up to two years imprisonment and one year of supervised release. DeLeon was sentenced to the maximum two years in prison for illegal reentry and five years in prison for possession of a firearm by an illegal alien, both sentences to be served concurrently. Following his sentence, the judge ordered that DeLeon be delivered to immigration authorities for deportation proceedings.
The United States argued at the sentencing hearing that the Guidelines, which recommended a sentence of 15-21 months, did not adequately account for several significant facts which should be considered by the Court in determining an appropriate sentence. Instead, the United States recommended that the defendant be sentenced to five years in prison.
First, the United States argued that the Court should consider that in addition to the defendant’s criminal history calculation, it should also consider that DeLeon, a citizen of Mexico, was found in the United States on March 25, 2014 and was ordered removed. He departed on March 27, 2014 from the Laredo, Texas Port of Entry. He had also been encountered previously in the United States by the Border Patrol on May 5, 1999, February 28, 2000, March 19, 2000; March 24, 2014, March 25, 2014 and April 24, 2014.
After the April 24, 2014 encounter he was charged with violating Title 8, U.S.C. 1325, entry without inspection. He pled guilty and served 30 days imprisonment. Despite these continued contacts, DeLeon kept returning to Baldwin County in flagrant disregard of the laws of the United States.
Most significantly, the United States argued that the Guidelines did not consider the devastating consequences of DeLeon’s presence in the United States. The defendant had admitted as part of his guilty plea that the United States could prove that on March 25, 2018, Police Officers of the Fairhope, Alabama, Police Department encountered Jose Luis Alonso DeLeon at the laundromat located at 139 Baldwin Square Shopping Center in Fairhope. Officers were in the area looking for a maroon truck that had just struck and killed a bicyclist moments before.
DeLeon was still sitting behind the steering wheel in the maroon truck. Officers observed a Glock model 26 9mm pistol on the floorboard of the truck. The Glock had one round in the chamber and had been reported stolen.
Judge Steele noted that both illegal reentry and possession of a firearm by a prohibited person were serious crimes, and both were crimes frequently prosecuted in federal court. Before imposing sentence, the judge pointed out that what made this case different from others was that the defendant came to the attention of law enforcement officers as a result of their investigation into three serious felonies under Alabama law: manslaughter, leaving the scene of an accident, and receiving stolen property.
Although the federal charges arose on the same date as DeLeon’s pending charges with District Attorney Bob Wilters in Baldwin County, they are separate from the Alabama state charges of manslaughter, leaving the scene of an accident, and receiving stolen property. DeLeon is charged in state court with causing the death of Amy Hawkins who was riding her bicycle in the northbound lane of County Road 13 in Fairhope, Alabama on March 25, 2018.
The United States Attorney, Richard W. Moore, said, “Federal law in this case is inadequate to fully address the defendant’s criminal conduct and we will support fully our law enforcement partner Baldwin County District Attorney Bob Wilters in his state court prosecution on manslaughter charges. As our prosecutor Assistant U.S. Attorney Maria Murphy argued to Judge Steele, the federal sentencing guidelines do not adequately capture the totality of the defendant’s criminal activity while he was in the United States illegally. Judge Steele today recognized the inadequacy of the federal sentencing guidelines (15-21 months) and gave the defendant a much higher sentence (60 months) to more properly address the defendant’s criminal conduct. No one, however, can believe that even this enhanced sentence can begin to assuage the grief of losing a wife and mother under these tragic circumstances. I am under no such illusion.
This case dramatically demonstrates the folly of having an open border with Mexico. There are real consequences to not enforcing border security. Amy Hawkins and her family paid the price of our failed immigration policies of the past. We have to do better for the American people.”
Attorney General Jeff Sessions has previously stated that: “The American people made clear their desire to secure our borders and prioritize the public safety and national security of our homeland. …….They want us to seize this opportunity that we have right now….The United States will not stand by as our immigration laws are ignored and our nation’s safety is jeopardized.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations; the Bureau of Alcohol, Tobacco Firearms and Explosives; the Fairhope Police Department; and ALEA. This case was prosecuted by AUSA Maria E. Murphy.
Hampshire County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA –Ashley N. Rohrbaugh, of Purgitsville, West Virginia, has admitted to a heroin distribution charge, United States Attorney Bill Powell announced.
Rohrbaugh, age 31, pled guilty to one count of “Conspiracy to Distribute Heroin.” Rohrbaugh admitted to conspiring with another to distribute heroin in Hardy County from January to April 2017.
Rohrbaugh faces 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. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Hardy County Sheriff’s Office investigated.
U.S. Magistrate Michael John Aloi presided.
Hagerstown Man Pleads Guilty to Charges Related to Managing a Fentanyl Distribution Conspiracy that Resulted in at Least Two Fatal OverdosesRead the Press Release
Baltimore, Maryland – Antoine Jamel Henderson age 35, of Hagerstown, Maryland, pleaded guilty today to conspiracy to distribute 40 or more grams of fentanyl—as little as 2 milligrams of fentanyl can be a lethal dose. In his plea agreement, Henderson admitted that he and others distributed at least 280 grams of fentanyl in the area of Washington County, Maryland—enough fentanyl to kill most of the residents of Washington County. As part of his plea, Henderson admitted that the drug trafficking organization that he supervised sold fentanyl that resulted in both fatal and non-fatal overdoses, including the fatal overdoses of two Pennsylvania men.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; the Washington County Narcotics Task Force, led by Washington County Sheriff Douglas Mullendore; and Washington County State’s Attorney Charles P. Strong, Jr.
U.S. Attorney Robert K. Hur stated, “Working together with our local, state, and federal partners, we will reduce the number of opioid overdose deaths in Maryland. We’re particularly targeting those who sell fentanyl, the drug that is killing the most of our citizens. Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution.”
According to his plea agreement, from at least 2017 through January 2018, Henderson conspired with others to distribute at least 280 grams of fentanyl in the area of Washington County, Maryland. Henderson knew that the fentanyl that was distributed during the conspiracy resulted in both fatal and non-fatal overdoses, including the fatal overdoses of Marc Brumbaugh, age 27, and Nathan Bolden, age 31, both from Waynesboro, Pennsylvania.
Between August and September 2017, investigators conducted at least six controlled purchases of either fentanyl or crack cocaine from Henderson or his co-defendant. According to the plea agreement, the controlled purchases were supposed to be heroin, but lab results showed that the substances provided by Henderson and his co-defendant were in fact fentanyl, not heroin.
On January 17, 2018, search warrants were executed at two locations and three vehicles involved in the Henderson Drug Trafficking Organization (DTO). At Henderson’s stash house, located on Atlantic Drive in Hagerstown, agents recovered 80.22 grams of fentanyl. The fentanyl was located in the bottom compartment of a Coca-Cola vending machine in the garage. The agents also recovered 9 mm ammunition, a drug press, digital scales, drug packaging equipment, plastic bags containing fentanyl residue, cellular phones, and other drug paraphernalia.
At Henderson’s primary residence, located on Lantern Lane in Hagerstown, the agents recovered additional cellular phones, a currency counter, jewelry, and a garage opener that opened the garage at the stash house. Search warrants were obtained for the 28 cellular phones that were recovered from the houses and cars, as well as for the DVD from the surveillance system located at the stash house. Also on Henderson’s iPhone, agents found iPhone “notes” tracking law enforcement surveillance.
Henderson and the government have agreed that if the Court accepts the plea agreement, Henderson will be sentenced to between 10 and 15 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 10, 2019, at 3:00 p.m.
United States Attorney Robert K. Hur commended the DEA; the Washington County Narcotics Task Force, led by Washington County Sheriff Douglas Mullendore; and Washington County State’s Attorney Charles P. Strong, Jr. for their work in the investigation. U.S Attorney Hur thanked Franklin County (PA) District Attorney Matt Fogal, the Waynesboro (PA) Police Department, the Franklin County Drug Task Force, the Franklin County Coroner’s Office, the Washington County Special Response Team, and the Maryland Natural Resources Police for their assistance in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorneys Joan C. Mathias and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Guilty Pleas Entered in Inver Grove Heights Cell Phone Store RobberyRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JAMAAL MARQUIE MAYS, 33, for the armed robbery of an Inver Grove Heights business. MAYS and his co-defendant, JAQUON KESHAWN MOMAN, 26, were charged in a superseding indictment on February 7, 2018. MAYS entered his guilty plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. MOMAN pleaded guilty on August 1, 2018.
According to the defendant’s guilty plea and documents filed in court, on August 17, 2017, MAYS and MOMAN entered a Verizon Wireless store in Inver Grove Heights, Minnesota, armed with a .45 caliber semi-automatic pistol. After waiting for customers to leave the store, MAYS and MOMAN held the store employee at gunpoint while demanding money and cell phones. The employee pretended to comply, but then shot MAYS in self-defense with a firearm the employee was licensed to carry. MAYS’ firearm was also discharged. During the exchange of gunfire, a stray bullet grazed a worker in an adjacent restaurant. MAYS was wounded and remained at the scene, while MOMAN fled on foot.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Inver Grove Heights Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat violent crime.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
JAMAAL MARQUIE MAYS, 33
Unknown
Convicted:
- Hobbs Act robbery, 1 count
- Discharging a firearm during and in relation to a crime of violence, 1 count
JAQUON KESHAWN MOMAN, 26
Unknown
Convicted:
- Hobbs Act robbery, 1 count
- Discharging a firearm during and in relation to a crime of violence, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Guatemalan Who Used Fake Documents to Get a Job Sentenced to PrisonRead the Press Release
A Guatemalan man who used false identification documents to obtain a job was sentenced today to more than two months in federal prison.
Rudi Zamora-Samol, age 18, a citizen of Guatemala illegally present in the United States and living in Postville, Iowa, received the prison term after an August 21, 2018, guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Zamora-Samol admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on May 2, 2018, at a business in Independence, Iowa. The Social Security number was invalid and the Alien Registration number on the “green card” had been issued to another person. Zamora-Samol also used the same fraudulent Social Security card and “green card” when applying for work in Garnavillo, Iowa, in April 2017.
Zamora-Samol was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Zamora-Samol was sentenced to 73 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Zamora-Samol is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
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-2036-LTS. Follow us on Twitter @USAO_NDIA
Greenfield Woman Pleads Guilty to Conspiracy to Hide $486,000 from Federally Insured Financial InstitutionRead the Press Release
BOSTON – A Greenfield woman pleaded guilty in federal court in Springfield yesterday in connection with concealing nearly half a million dollars from a federally insured financial institution.
Marlene Borer, 68, pleaded guilty to one count of conspiracy to make false statements to a federally insured financial institution and one count of false statements to a federally insured financial institution. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 19, 2018.
According to the plea agreement, in August 2011, Borer’s brother and his then-wife owed Wells Fargo Bank approximately $1.32 million in outstanding loans. In March 2012, Borer, who was acting as her brother’s bookkeeper, received approximately $1.1 million, which related to a judgment from a Honduran court, in her Massachusetts bank account. $486,000 of the $1.1 million judgment belonged to Borer’s brother and his then-wife. A few days after Borer received the money, her brother e-mailed her to “keep [the] bulk” of their funds in her account because “Wells Fargo might be conducting an asset search on us to try and recover the judgments. Just transfer what is needed to pay bills as they arrive.” Borer distributed their funds from her account as he requested.
On or about May 24, 2012, Borer prepared a false personal financial statement for her brother and his then-wife, stating that they only had $4,200 in the bank. Borer’s brother provided the personal financial statement to Wells Fargo, which relied upon it to negotiate their debt. On Oct. 31, 2012, Borer’s brother and his then-wife executed a settlement agreement with the bank, in which Wells Fargo agreed to forgive their personal obligations in exchange for a payment of $50,000. Wells Fargo would not have settled for $50,000 had it known that Borer’s brother and then-wife had received $486,000 in cash from the Honduran judgment.
The conspiracy charge provides for sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. The false statements charge provides for a sentence of no greater than 30 years in prison, up to five years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division made the announcement. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Green Island Man Indicted for Intending to Distribute Crack and CocaineRead the Press Release
ALBANY, NEW YORK – Richard Thomas, age 53, of Green Island, New York, was arraigned yesterday on a charge that he possessed and intended to distribute crack cocaine and cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment, on September 10, 2018, Thomas possessed and intended to distribute more than 28 grams of cocaine base (a/k/a crack cocaine) and cocaine. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Thomas is in custody pending trial. If convicted, Thomas faces at least 10 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 8 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. Alicia Suarez.
Grass Valley Man Sentenced to 5 Years in Prison for Unlawfully Manufacturing Ghost Guns and Selling Them on Dark WebRead the Press Release
SACRAMENTO, Calif. — Michael Paul Grisham Smith, 44, of Grass Valley, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to five years in prison for unlawful manufacturing and dealing in firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, Smith contacted a firearms vendor on the dark web seeking to sell AR-15-style “ghost” guns. Firearms without serial numbers are sometimes referred to as ghost guns. The firearms vendor was in fact an undercover agent. Between December 1, 2017, and February 15, 2018, Smith manufactured and sold eight AR‑15‑style firearms without serial numbers to the undercover agent in exchange for payment in bitcoin.
This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.
Former Rite Aid Vice President and Atlanta Business Owners Charged in $5.7 Million Vendor Kick-Back SchemeRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Rite Aid Vice President and the two owners of an Atlanta based company have been charged for their role in a $5.7 million vendor kick-back scheme.
According to U.S. Attorney David J. Freed, James W. Pilsner, age 60, of Harrisburg, Pennsylvania, was charged in a criminal information filed on September 20, 2018, with one count of wire fraud and one count of federal income tax evasion. The criminal information alleges that Pilsner, a former Vice President for Advertising for Rite Aid, engaged in a kick-back scheme with Larry Nuckols and Vance Taylor, the owners of Nuvision, Inc., an Atlanta, Georgia based company, between 1995 and August of 2017.
According to the criminal information, Pilsner entered into an agreement with Nuckols and Taylor whereby Pilsner would approve Nuvision’s invoices, some of which were false and inflated, for payment. In exchange, Nuckols and Taylor would “kick-back” a significant portion of Rite Aid’s payments to Pilsner.
The criminal information alleges that between 2001 and August of 2017, Rite Aid paid Nuvision approximately $45.3 million dollars. Pilsner allegedly received no less than $5,124,862 in kick-backs over that time period, with another $634,300 paid to other Rite Aid employees designated by Pilsner.
The criminal information also charges Pilsner with Income Tax Evasion for tax year 2013. In March of 2014, Pilsner allegedly filed an income tax return with the IRS that did not report his receipt of $411,500 in kick-back money during 2013, thereby avoiding approximately $157,648, in federal income taxes. The information also seeks the forfeiture of Pilsner’s interests in $5,743,162 and his Harrisburg, PA residence.
Larry D. Nuckols, age 69 of Valdosta, Georgia, is also charged in the same criminal information as Pilsner with one count of wire fraud. The information seeks the forfeiture of Nuckols’ interests in nine properties located in Florida, Georgia, Alabama, and Costa Rico, plus Nuckols’ half interest in a $1.3 million yacht, to the government.
Vance Taylor, age 71, of Acworth, Georgia, also owner of Nuvision, was indicted on September 19, 2018, by a federal grand jury and charged with 40 counts of mail fraud, wire fraud and unlawful monetary transactions. The indictment seeks the forfeiture of $1,239,058 in U.S. Currency, eight cash/investment accounts, 73 tracts of real estate in Georgia, Florida and Alabama, and Taylor’s half interest in the $1.3 million yacht.
No date yet has been scheduled for the defendants’ initial appearances and arraignments on their charges before the U.S. District Court in Harrisburg.
The case is being investigated by the Harrisburg offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Mail Fraud and Wire Fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Unlawful Monetary Transactions is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for Income Tax Evasion is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Priest Extradited from Morocco to Face Federal Child Sexual Abuse Charges in New MexicoRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson for the District of New Mexico, Special Agent in Charge James C. Langenberg of the FBI Albuquerque Division and Special Agent in Charge Nicholas J. Dorval of the Air Force Office of Special Investigations, Detachment 814, announced today that Arthur Perrault has been extradited from Morocco to the United States to face federal child sexual abuse charges in New Mexico.
Perrault, 80, a former Catholic priest who served in New Mexico under the Archdiocese of Santa Fe from 1973 to 1992, is charged in a seven-count indictment with engaging in acts constituting aggravated sexual abuse and abusive sexual contact with a minor under the age of 12. The indictment alleges that Perrault repeatedly sexually abused the minor victim in 1991 and 1992 while on federally-protected land, Kirtland Air Force Base in Bernalillo County, N.M., and the Santa Fe National Cemetery in Santa Fe County, N.M.
“The indictment alleges a profound breach of trust by an individual who was widely perceived as a mentor to young people and a respected figure in the community,” said U.S. Attorney Anderson. “Although the indictment charges acts allegedly committed many years ago, this indictment should make clear that the U.S. Attorney’s Office will pursue justice for victims despite the passage of time or the many miles this defendant sought to put between himself and these alleged offenses.”
“Bringing Arthur Perrault back to New Mexico took a lot of patience and perseverance, but the FBI and our partners were determined to make sure he faced justice, no matter how long it took or how far we had to go to get him,” said FBI Special Agent in Charge Langenberg. “We also owed it to this victim. The FBI would like to thank the U.S. Attorney’s Office and the Air Force Office of Special Investigations for their support during this long investigation, and also extend our gratitude to the Moroccan government and our staff in that country for helping make this day possible.”
“The involvement of the Air Force Office of Special Investigations in this investigation was predicated on its role as the primary federal investigative agency for serious criminal issues affecting U.S. Air Force installations and personnel worldwide, and its responsibility to advise senior Air Force military and civilian leadership on all criminal issues affecting the Air Force,” said AFOSI Special Agent in Charge Dorval. “Our partnership with the FBI and the U.S. Attorney’s Office brought key capabilities to this investigation that were essential to filing charges in this case.”
Moroccan law enforcement authorities arrested Perrault on Oct. 12, 2017, in Morocco on a provisional arrest warrant issued based on the charges in the indictment, which was filed under seal on Sept. 21, 2017. The FBI assumed custody of Perrault from Moroccan authorities on Sept. 20. The indictment was unsealed earlier today after the U.S. Attorney’s Office notified the Court that the FBI had arrested Perrault and transported him from Morocco to the United States, and was in the process of transporting him to the District of New Mexico. Perrault is scheduled to make his initial appearance before U.S. Magistrate Judge Karen B. Molzen later this afternoon.
If convicted of the aggravated sexual abuse charges in the indictment, Perrault faces a statutory maximum penalty of a lifetime term of imprisonment. The abusive sexual contact charge carries a maximum penalty of 10 years of imprisonment. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI Albuquerque office with assistance from the Air Force Office of Special Investigations, Detachment 814, and is being prosecuted by Assistant U.S. Attorneys Sean J. Sullivan and Holland S. Kastrin of the District of New Mexico. The extradition of Perrault is the result of close cooperation between these investigating agencies and prosecutors, the Morocco Ministry of Justice, Moroccan law enforcement authorities, the Justice Department’s Office of International Affairs, and the FBI Legal Attaché in Morocco.
Perrault is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Criminal Division’s 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 information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Starting today, information about the federal prosecution of Perrault, including the indictment, will be available at https://www.justice.gov/usao-nm/priest-prosecution. Also starting today, individuals may inquire about the pending charges or provide information about other conduct by Perrault by emailing the U.S. Attorney’s Office at [email protected] or calling the FBI’s Albuquerque Division at 1-800-CALL-FBI.
Perrault IndictmentFormer Marine Receives 33 Months for Embezzling over $500,000 from Marine Corps and over $20,000 from Toys for TotsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Senior United States District Judge Callie V.S. Granade sentenced former United States Marine Corps Staff Sergeant Christopher Aragon, 32, a resident of Mobile, Alabama, to 33 months imprisonment for conspiring with his wife, co-defendant Teneshia Aragon, and co-defendant Dana Davis to commit wire fraud. As part of the sentence, the judge also ordered that Christopher Aragon undergo three years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, receive mental health treatment, undergo credit restrictions, pay restitution totaling $534,044.08 to the U.S. Marine Corps Forces Reserve, and pay restitution totaling $20,044.70 to the Marine Toys for Tots Foundation. Moreover, the judge ordered that a residence traceable to criminal proceeds be subject to forfeiture to the United States for disposition in accordance with the law.
According to documents filed with the court as part of his guilty plea, Christopher Aragon’s offense conduct consisted of two conspiracies to defraud. First, between October 2014 and August 2016, Mr. Aragon, a former Staff Sergeant and Unit Supply Chief for 3d Force Reconnaissance Company (3d Force Recon) in the Marine Corps in Mobile, Alabama, conspired with Teneshia Aragon and Dana Davis, owner and sole proprietor of the Runway Café, a restaurant in Mobile, Alabama, to achieve personal financial gain by defrauding the Marine Corps. Christopher Aragon made unauthorized, fraudulent charges to a unit travel card assigned to 3d Force Recon. The card was a government credit card used to pay for food and lodging expenses for reservists performing drill functions with 3d Force Recon. Christopher Aragon was the authorizing official for the unit travel card and approved fraudulent charges from Runway Café. He prepared false documents, such as invoices and personnel rosters, and submitted them to the Marine Corps, which later conducted an audit and noticed excessive discrepancies in food expenditures. For example, the Marine Corps noticed that (1) many Runway Café invoices did not match official 3d Force Recon activities and, therefore, did not support a legitimate need for food services, (2) Runway Café’s invoices were for more meals than could be consumed by the number of Marines assigned to 3d Force Recon, (3) the personnel rosters, which contained the names of 3d Force Recon Marines who supposedly consumed the meals, were fabricated, and (4) Runway Café’s invoices contained unauthorized service fees. The criminal conspiracy caused a financial loss to the Marine Corps of around $554,044.08. Since Runway Café issued a $20,000 refund to the Marine Corps during the conspiracy, the Marine Corps is owed $534,044.08.
Second, between December 2013 and December 2014, Christopher and Teneshia Aragon conspired to achieve personal financial gain by defrauding the Marine Toys for Tots Foundation, a tax exempt, not-for-profit public charity that serves as the fundraising and support organization for the Marine Corps Reserve Toys for Tots Program. Christopher Aragon served as 3d Force Recon’s Toys for Tots program coordinator and possessed a credit card issued linked to funds in 3d Force Recon’s local Toys for Tots account. With the card, he could buy toys and pay for expenses associated with the Toys for Tots Foundation. Unbeknownst to the foundation, Christopher Aragon used the credit card to make unauthorized payments to himself. As part of the conspiracy with his wife, Christopher Aragon prepared fraudulent documents, such as invoices, and submitted them to the Toys for Tots Foundation, which ultimately lost around $23,044.70 due to the criminal conduct. The Aragons later credited $3,000 back to the foundation, leaving a balance of $20,044.70.
On March 29, 2018, a federal grand jury for the Southern District of Alabama charged Dana Davis with one count of conspiracy for seeking to defraud the Marine Corps, and the Aragons with two counts of conspiracy for seeking to defraud the Marine Corps and the Toys for Tots Foundation. In May 2018, all three defendants pleaded guilty before Senior Judge Granade to conspiring to defraud the Marine Corps. On August 20, 2018, Dana Davis was sentenced to six months imprisonment and ordered to make full restitution to the Marine Corps. On September 10, 2018, Teneshia Aragon was sentenced to five years of probation with the first six months in home confinement, and ordered to make full restitution to the Marine Corps and the Toys for Tots Foundation.The Naval Criminal Investigative Service and Defense Criminal Investigative Service investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Former Kossuth County Farmer Sentenced to a Year in Federal Prison for Lying to Bank to Secure a Farm Loan and CreditRead the Press Release
A former farmer who lied to his bank about how much land he was farming and how much crop he had in storage in order to secure a loan and a line of credit was sentenced September 20, 2018, to a year in federal prison.
Mark Laubenthal, age 36, from Bancroft, Iowa, received the prison term after a March 30, 2018 guilty plea to one count of making a false statement to a bank.
In a plea agreement, Laubenthal admitted he was farming land in north Iowa in 2015. He received a farm operating loan worth $160,000 and a line of credit worth $750,000 from a bank in the area. In order to get the loan and line of credit, Laubenthal had to fill out a financial statement listing his assets. Laubenthal admitted he provided false information to the bank on the financial statement he completed. Laubenthal told the bank he had $432,040 of crops in storage, when he actually had a substantially lower amount of crops in storage. In the plea agreement, Laubenthal also admitted he made other false statements to the bank over the course of 2015, including telling the bank he was farming 1,100 acres of land when he was only farming less than 300 acres and that he had a number of pieces of farm equipment that he did not actually have or own.
Evidence at sentencing showed that when Laubenthal failed to make payments on the loans, the bank declared him to be in default in 2016. During mediation meetings with the bank, Laubenthal made additional false statements. He told the bank that he had 120,000 bushels of corn in storage and had planted nearly 300 acres of crops for 2016. In fact, at the time he made those statements, Laubenthal had no crop in storage and had not planted any crops for 2016. Laubenthal defaulted on the entirety of the $160,000 loan and on $731,401.58 from the line of credit.
Laubenthal was sentenced in Cedar Rapids by Chief United States District Court Leonard T. Strand. Laubenthal was sentenced to 12 months and a day in federal prison. He was ordered to make $1,044,881.82 in restitution to the victim bank. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Laubenthal was released on the bond previously set and is to surrender to the United States Marshal on October 11, 2018.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation and the United States Department of Agriculture – Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-3007.
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Former Investigator with District Attorney’s Office for the 22nd Judicial District Charged with Making False Statements to Federal AuthoritiesRead the Press Release
U.S. Attorney Peter G. Strasser announced that JEFFERY B. MONTALBANO, age 58, a resident of Mandeville, Louisiana, was charged yesterday in a one-count bill of information with making false statements to federal authorities, in violation of 18 U.S.C. ' 1001(a)(2).
According to the bill of information, on January 23, 2018, MONTALBANO met with a special agent with the Federal Bureau of Investigation at 3601 Highway 190, Mandeville, Louisiana, within the Eastern District of Louisiana and said that neither he, nor an associate (Person 1), had ever received money from a particular individual (Defendant A), and that he had no idea federal agents visited the Office of the District Attorney for the 22nd Judicial District to investigate whether MONTALBANO had received money from Defendant A. MONTALBANO knew that both of these statements were false because, as MONTALBANO knew, in November and December 2013, Person 1 received payments from Defendant A, half of which he then gave to MONTALBANO, and that Special Agents with the Federal Bureau of Investigation visited the Office of the District Attorney for the 22nd Judicial District on about October 8, 2015, to investigate MONTALBANO’S conduct during the prosecution of Defendant A.
If convicted, MONTALBANO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
District Attorney Warren Montgomery also commended the F.B.I. and U.S. Attorney’s Office for their work. “My office has been cooperating and continues to cooperate with federal authorities,” stated D.A. Montgomery. “Mr. Montalbano no longer is employed at the District Attorney’s Office, having resigned on April 9, 2018.”
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Former Clay County High School Teacher Arrested and Charged with Distribution of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Christopher Shawn Potter (age 49, Jacksonville) has been arrested and charged by criminal complaint with distributing child pornography. Potter faces a minimum mandatory penalty of 5 years, and up to 20 years in federal prison. He had been detained pending a hearing on September 26, 2018.
According to the
complaint , in February 2018, Potter, utilizing the username “Catsfan1987” and the screenname “Mr. Fireball,” responded to a notice posted online by an undercover officer with the Orange Park Police Department who was using the persona of a 14-year-old child. Potter engaged in online conversations with the undercover officer during which Potter requested photos of the “child” and discussed meeting the “child” for sex. Potter sent the undercover officer a video clip depicting a young child being sexually abused and a video of Potter performing a sexual act.On September 20, 2018, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, along with other law enforcement officers executed a search warrant at Potter’s home and seized several computer devices and smart phones. Potter told the agents that he had worked as a teacher at Clay High School in Green Cove Springs from 2016-2017, and that he was a teacher at Orange Park High School from 1997-2004.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Orange Park Police Department, the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office, and the Palatka Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Athens County Assistant Prosecutor Sentenced for Tax FraudRead the Press Release
COLUMBUS, Ohio – Michael (also known as Mickey) A. Prisley, 53, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison for participating in a conspiracy to file hundreds of false income tax returns and assisting co-conspirators in obtaining a quarter of a million dollars in false refunds.
Prisley pleaded guilty in April to one count of conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). As part of the plea, Prisley agreed to pay more than $250,000 in restitution to the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentence imposed today by U.S District Judge James L. Graham.
According to court documents, Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014.
Between the fall of 2009 and September 2015, Prisley conspired with others to defraud the IRS by filing hundreds of false income tax returns in an attempt to obtain fraudulent income tax refunds.
Prisley deposited fraudulently obtained income tax refund checks into his bank accounts and withdrew the funds in cash in order to pay his co-conspirators their share. Prisley also received controlled substances in exchange for cashing the fraudulently obtained income tax refund checks.
In addition, Prisley provided his co-conspirators with false power of attorney forms so that his co-conspirators could cash fraudulently obtained income tax refund checks without the listed taxpayer's knowledge.
As a result of the fictitious income tax return filings, a total of $466,842 in fraudulent income tax refunds was released by the IRS, of which Prisley assisted his co-conspirators in obtaining $250,220.99.
“As a former assistant prosecuting attorney, Mr. Prisley knows that stealing from the government is a serious crime,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “No one is entitled to an undeserved windfall and those who try to steal the taxpayers’ money face severe consequences, including incarceration and having to pay back all the stolen refund money.”
Co-defendants Tawnya Writesel (also known as Tawnya Rutan), Amy K. France and Denard T. Nelson were also charged in relation to this case.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution. Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
Writesel was indicted in November 2017 on one count of conspiracy to submit false claims for income tax refunds and four counts of filing false claims for income tax refunds. She pleaded guilty in May to one count of conspiracy to submit false claims. Her sentencing date is yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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First of Three Atlanta Men Charged with Theft of Mail Pleads GuiltyRead the Press Release
St. Louis - The first of three Atlanta-area men charged last month with stealing mail as part of an identity theft ring pleaded guilty this morning. Willie Joe Trice, 28, of Atlanta, pleaded guilty to conspiracy to steal mail and faces up to five years’ imprisonment, a fine of $250,000 or both.
According to court documents, Trice admitted that, when he was stopped by St. Charles County police late in the evening of August 6, 2018, he had stolen mail from a business in the area and intended to acquire personally identifiable information from the mail and use that information on counterfeit checks and access devices. Trice also admitted he had traveled to the St. Louis area from Atlanta for the purpose of obtaining personal information to be used in the conspiracy.
Trice appeared before U.S. District Judge Catherine D. Perry who accepted his plea and deferred sentencing until December 20, 2018. Trice remains in federal custody pending sentencing.
“It is rare to apprehend an identity thief in the act of stealing personal information. Too often, these offenders are not identified until they have stolen information and successfully exploited it many times. Thanks to the good work of this federal-local investigation, that will not be the case here,” said U.S. Attorney Jeffrey B. Jensen.
The case was investigated by the St. Charles County Police Department and the U.S. Postal Inspection Service with assistance from the St. Charles County Prosecuting Attorney’s Office. Tom Albus is handling the case for the U.S. Attorney’s Office.
Fifth Defendant in the Armed Robbery of A Federally Licensed Firearms Dealer Sentenced to 13 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced David Wise, a/k/a Rambo and Rampage, age 23, of Baltimore, to 13 years in prison, followed by three years of supervised release, for the armed robbery of a federally licensed firearms dealer.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
“David Wise and his co-defendants targeted a gun dealer in order to steal and resell the guns on the street. Through the coordinated efforts of our law enforcement partners, many of the guns were recovered, and a group of armed robbers has been put behind bars,” said U.S. Attorney Robert K. Hur.
“These five felons terrorized innocent employees, they victimized a law-abiding business owner, and they stole these firearms with purely criminal intentions in mind,” said ATF Special Agent in Charge Cekada. “Federal firearms licensees are more than businesses—they are the livelihood of the FFL owner and their employees. Violent acts like this are a threat to public safety and we will do everything in our power to bring offenders like these to justice.”
According to his plea agreement and other court documents, on August 5, 2016, Wise and four co-conspirators robbed a bait, tackle, and gun store in Dundalk, Maryland, that was a federally licensed firearms dealer. Specifically, Raymond McCullough, the principal planner and orchestrator of the robbery, drove the co-conspirators in a stolen pick-up truck to the store to conduct the robbery. The group had specifically targeted the store in order to pilfer firearms for subsequent sale and use, and brought firearms to force the victims to submit and zip-ties to bind the victims. Wise and Lerron Sheppard entered the store, pointed guns at the store owners, and demanded money and guns. Fearing for their lives, the victims complied. Wise and Sheppard bound one victim with zip-ties, then ordered the second victim to assist them in getting the cash and firearms. While Wise stood guard over the victims, Sheppard unlocked the front door of the store (which had automatically locked) so that Smith and Hawkins could enter. McCullough backed the pick-up truck to the front of the store and waited outside. Wise, Smith, Hawkins, and Sheppard then proceeded to plunder the store of cash and 37 firearms, including three assault rifles and a silencer. The men packed the firearms in duffel bags and backpacks and carried them outside to the pick-up truck. Sheppard then pushed the second victim in a safe and locked her inside. The men then fled to an apartment in Baltimore, where they divided the cash and firearms among themselves. Wise received several guns, including one of the assault rifles.
The victims reported that Wise had removed a shotgun from the safe before Sheppard locked the second victim inside. Wise did not take the shotgun, but left it in the store next to the earbuds he had worn during the robbery. Investigators were able to obtain a fingerprint from the shotgun which matched Wise’s fingerprint. A search warrant was subsequently executed at Wise’s residence. Law enforcement recovered several items stolen in the robbery, including firearms with the sales tags still attached. Officers also recovered the loaded pistol that Wise pointed at the victims during the robbery.
During the investigation of this robbery, law enforcement recovered many of the firearms taken during the robbery and learned that the defendants had committed additional robberies in the weeks before the robbery of the firearms dealer. As part of their plea agreements and/or at their sentencing hearings, David Wise, Raymond McCullough, and Lerron Sheppard admitted committing these additional robberies.
Wise is the fifth, and final, defendant to be sentenced to federal prison in this case.
Co-defendants:
Raymond McCullough, a/k/a Troop, age 35, of Baltimore, pleaded guilty to an armed commercial robbery and admitted committing another robbery with David Wise. Sentenced to 20 years in federal prison;
Reginald Smith, a/k/a Young Loc and Loc, age 25, of Baltimore, pleaded guilty to an armed commercial robbery. Sentenced to 115 months in federal prison;
Tavon Hawkins, a/k/a G and Tay, age 36, of Baltimore, pleaded guilty to an armed commercial robbery. Sentenced to 17 years in federal prison; and
Lerron Sheppard, a/k/a D-Loc, age 25, of Baltimore, pleaded guilty to an armed commercial robbery and admitted committing another robbery. Sentenced to 17 years in federal prison.
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 the ATF, FBI and Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys David Metcalf and Patricia C. McLane, who prosecuted the case.
Federal Jury Convicts St. John Parish Resident of Narcotics Distribution and Firearms OffensesRead the Press Release
U.S. Attorney Peter G. Strasser announced yesterday that a federal jury convicted TROY KENDRICK, JR., a St. John Parish resident, for violations of the Federal Controlled Substances Act and the Federal Gun Control Act. Following a four-day trial, the jury found KENDRICK guilty of conspiring to distribute and to possess with the intent to distribute cocaine, and of possessing a firearm after being convicted of a prior felony.
According to the evidence presented at trial, from January to August of 2016, KENDRICK and his co-conspirators distributed cocaine in Reserve, Louisiana. KENDRICK sold cocaine to lower-level drug dealers, who in turn sold both powder cocaine and crack cocaine to other dealers and to users. In June of 2016, while federal agents had a wiretap on KENDRICK’s telephone, KENDRICK was involved in a shootout in LaPlace, Louisiana. On August 17, 2016, when law enforcement officers arrested KENDRICK and searched his home pursuant to a search warrant, they found five firearms, a digital scale, over $10,000 cash, a money counter, body armor, ammunition, and a ski mask.
KENDRICK faces up to 30 years in prison for the charge of conspiring to distribute cocaine, and he will be sentenced as a career offender, because of his two prior felony convictions for drug distribution. KENDRICK faces up to 10 years in prison for the charge of possessing a firearm as a convicted felon. He faces at least 6 years of supervised release following any term of imprisonment. Sentencing will take place before Judge Jane Triche Milazzo.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the St. John Parish Sheriff’s Office. Assistant United States Attorneys Nicholas D. Moses and Edward Rivera were responsible for the prosecution.
Executive Director of RARES Sentenced for Filing False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Brian Mount, 60, of Pittsford, NY, who was convicted of filing a false tax return, was sentenced to serve five months in prison followed by five months of home confinement by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that Mount was the executive director of Regional Area Recreation and Employee Services (RARES), a non-profit business located at 312 West Commercial Street in East Rochester. The non-profit provides discounted tickets and services to subscribing companies. The defendant received salary and commissions from RARES that he failed to report on his 2010 through 2013 federal tax returns. In total, Mount failed to report approximately $227,835.77 in additional income on his tax returns, which resulted in the defendant failing to pay $60,977 in taxes to the Internal Revenue Service.
Today’s sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
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