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20 September 2018
Nineteen (19) Arrested in Waco on Federal Drug Trafficking ChargesRead the Press Release
Federal and state authorities have arrested 19 individuals for their alleged roles in a methamphetamine distribution operation in the Waco area, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Waco Police Chief Ryan Holt; and Texas Department of Public Safety Director Steven McCraw.
A federal grand jury indictment unsealed today charges the defendants with one count of conspiracy to possess with intent to distribute methamphetamine. The defendants include:
Name Age Residence Statutory Maximum Penalty
Rene Marquez Lopez 42 Waco 10 years to life imprisonment
Peter Nino 34 Waco 10 years to life imprisonment
Brandon Roy Stout 34 Waco 10 years to life imprisonment
Lloyd Ray Gatlin 44 Waco 10 years to life imprisonment
**Justin Rene Hernandez 31 Dallas 10 years to life imprisonment
Cruz Oviedo 26 Austin 10 years to life imprisonment
Kyle Anthony Baker 33 Waco 5 to 40 years imprisonment
Juli Jenice Aleman (aka Juli Jenice Garcia) 41 Waco 5 to 40 years imprisonment
**Devito Dembinsky 30 Waco 5 to 40 years imprisonment
Benito Rodriguez 37 Waco 5 to 40 years imprisonment
**Decedreon Miller 38 Waco 5 to 40 years imprisonment
Ricky Rivera 43 Waco 5 to 40 years imprisonment
Julian Rivera 39 Waco 5 to 40 years imprisonment
Shauna Gilstrap 39 Waco 5 to 40 years imprisonment
James Leroy McMillion 54 Waco 5 to 40 years imprisonment
Brent May 55 Whitney, TX 5 to 40 years imprisonment
Sandra Oviedo (aka Sandra Cardenas) 25 Austin 5 to 40 years imprisonment
**Jesus Juan Lopez 41 Waco 5 to 40 years imprisonment
Nicholas Charles Caufield 43 Waco 5 to 40 years imprisonment** Already in custody prior to today
Authorities allege that since January 2017, these defendants were responsible for the distribution of large amounts of methamphetamine throughout Waco and surrounding areas.
During this investigation, authorities seized approximately nine pounds of methamphetamine.
All of the defendants remain in federal custody pending detention hearings expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
The DEA, FBI, Texas Department of Public Safety, and Waco Police Department are investigating this case. The U.S. Marshals Service and the McLennan County Sheriff’s Office provided valuable assistance with today’s arrests. Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting these cases on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
New York Resident and New Jersey Corporation Sentenced in $14 Million Conspiracy to Commit Tobacco Excise Tax FraudRead the Press Release
SACRAMENTO, Calif. — The corporate officer of the House of Oxford Inc., a New Jersey corporation, Alex Goldman, 43, of Great Neck, New York, was sentenced today to three years in prison, for conspiracy to commit tobacco excise tax fraud, U.S. Attorney McGregor W. Scott announced.
In addition, House of Oxford was sentenced to two years of probation where it will be subject to search and required to have financial records monitored. Additionally, House of Oxford and Alex Goldman agreed to the civil forfeiture of approximately $14 million in assets that represented the proceeds of the fraud scheme including cash, various investments, vehicles, artwork and jewelry.
According to court documents, House of Oxford conspired with multiple individuals and other business entities operating in California to provide tens of millions of dollars in untaxed other tobacco products (OTP) to businesses with the knowledge that the OTP would be sold illegally in the state of California. In total, House of Oxford and Goldman, defrauded the State of California out of approximately $14 million in tobacco excise tax revenue.
A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California. As a result of this case, approximately $14 million in forfeited assets were returned to the State of California through the U.S. Department of Justice’s remission program.
“This case is the result of a highly successful collaborative effort involving federal and state investigators and prosecutors, working side-by-side,” said U.S. Attorney Scott. “The judgment handed down today should serve as a warning to those who consider stealing from the public. We will work hard to recover those funds and ensure that those responsible are held accountable.”
“This partnership has helped California recover approximately $14 million,” said California Department of Tax and Fee Administration (CDTFA) Director Nick Maduros. “The CDTFA, in collaboration with law enforcement, is committed to recovering revenue lost to tax evasion and fraud in order to help fund the vital public services on which Californians rely.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the former California State Board of Equalization, now the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust prosecuted the case.
New Orleans Attorney Sentenced to 18 Months Probation for Bank TheftRead the Press Release
NEW ORLEANS, LOUISIANA – HILLIARD FAZANDE, III (“FAZANDE”), age 50, of New Orleans, Louisiana, was sentenced today by Chief U.S. District Court Judge Nannette Jolivette Brown to 18 months probation and was ordered to pay restitution in the amount of $5,000 to Hancock Whitney Bank, announced United States Attorney Peter G. Strasser.
According to court documents, on October 26, 2015, FAZANDE opened a bank account at the Whitney branch located at 3001 Holiday Drive in New Orleans, Louisiana. On October 30, 2015, FAZANDE endorsed and deposited a TD Bank $387,000 cashiers check made payable to “Attorney Hilliard C. Fazande III” into his account at the Whitney branch located at 3001 Holiday Drive in New Orleans, Louisiana. On October 31, 2015, FAZANDE went to the Whitney branch located at 8300 Louisiana Highway 23 in Belle Chasse, Louisiana and presented a bank teller with a temporary Whitney check in the amount of $5,000.00 knowing that he did not have sufficient funds to cover the transaction due to a bank hold on the $387,000.00 check. FAZANDE then made a $5,000.00 cash withdrawal from his account. On November 4, 2015, a Whitney employee contacted FAZANDE and advised him that the $387,000.00 check was counterfeit and that he must return the $5,000.00 he withdrew. FAZANDE never returned the money to the Whitney Bank.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
New Jersey Heroin Supplier Sentenced to More Than 14 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID MONSERATTE TORRES, 30, of New Jersey, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 170 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police into a drug trafficking organization led by Wilfredo Gutierrez, also known as “Bean” and “Big Pun,” and his brother, Bobby Gutierrez, also known as “B.O.” The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Wilfredo Gutierrez, Bobby Gutierrez and others conspired to distribute at least 10 kilograms of heroin in Fairfield County between September 2015 and May 2016. TORRES was the Gutierrez brothers’ main source of heroin for several years.
TORRES was arrested on May 31, 2016. On July 5, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin, and admitted that he was involved in the distribution of more than 30 kilograms of heroin.
After TORRES pleaded guilty and while he was released on bond pending sentencing, an investigation revealed that he had purchased U-47700, a synthetic opioid also known as “Pink,” over the dark web. On March 7, 2017, TORRES was arrested by the DEA in New York. A search of his person and vehicle revealed approximately 60 grams of U-47700, approximately 100 grams of heroin, and $8,600 in cash.
TORRES has been detained since his arrest on March 7, 2017.
Nine individuals were charged as a result of the investigation. All pleaded guilty, and TORRES is the last to be sentenced.
On March 16, 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment and, on April 24, 2017, Bobby Gutierrez was sentenced to 160 months of imprisonment. Bobby Gutierrez also was ordered to forfeit $171,462 in cash.
On April 13, 2018, TORRES pleaded guilty in the Southern District of New York to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin. He awaits sentencing in that case.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Nashua Resident Pleads Guilty to Defrauding Federal Employee Disability Benefit ProgramRead the Press Release
CONCORD – Kenneth Dunn, 60, of Nashua, pleaded guilty to making false statements to obtain federal employee disability benefits, announced United States Attorney Scott W. Murray.
The United States Department of Labor, Office of Workers’ Compensation Program (“OWCP”) provides workers’ compensation benefits to employees of the federal government, including the United States Postal Service (USPS), who are totally or partially disabled due to injuries sustained during the course of their employment. While receiving the benefits, a disabled employee is required to report all employment for which he or she received a salary, wage, or payment of any kind in annual reports submitted to the OWCP. A disabled employee is also required to provide documentation from a medical doctor to demonstrate his or her continued eligibility for the benefits and report any improvements to his or her physical condition.
According to documents and statements made in court, Dunn was hired as a Rural Letter Carrier in April 1985. In November 2010, Dunn began to receive OWCP disability benefits due to employment-related injuries to his neck, back, and arm. While receiving the disability benefits, Dunn repeatedly reported to the OWCP that was not able to work in any capacity and he was not engaged in any employment activity.
However, from 2010 through 2017, Dunn conducted thousands of transactions related to the purchase and sale of comic books on the internet, and failed to report the business activity to the OWCP. In addition, on several occasions from October of 2016 to February of 2018, a Special Agent from the USPS – Office of Inspector General observed Dunn engaged in physical activities inconsistent with his reported symptoms and alleged total disability. The activities included: entering and exiting his car; clearing substantial amounts of snow off, and from around, his car; driving; walking up and down a flight of 30 stairs; conducting personal and business-related errands for several hours; and lifting and carrying items of various size, shape, and weight. Dunn was able to perform these tasks without any apparent physical limitation, pain, or discomfort and in conflict with medical documentation from Dunn’s treating physician.
At a Comicon event in Manchester on September 17 and 18, 2016, Dunn set up a vendor booth and repeatedly bent over to place or pick up large boxes filled with comic books. He set up and dismantled a comic book display, sold comic books for cash, and stood and sat for long periods without any apparent physical limitation or discomfort. Dunn repeated the same activities at the Comicon event in Manchester on September 16 and 17, 2017.
The court documents also reveal that Dunn provided false information about his physical condition to a doctor in February 2017 and March 2018, and false information about his physical condition and work-history to the OWCP in February 2017 and 2018 in order to receive the disability benefits. Because of this fraudulent conduct, Dunn received disability benefits totaling $87,736 from September of 2016 through July of 2018.
Dunn will be sentenced on January 3, 2019.
“Workers’ compensation benefits are an important source of financial support for individuals who cannot work due to their disabilities,” said U.S. Attorney Murray. “Unfortunately, some individuals seek to take advantage of the system to obtain money that they don’t deserve. In order to protect taxpayer money, we will not hesitate to prosecute those who defraud workers’ compensation or other benefit programs.”
“The federal Workers’ Compensation program was created to help those who are recovering from injuries obtained on-the-job,” stated USPS-OIG Special Agent-in-Charge Matthew Modafferi. “When a former Postal Service employee defrauds the Workers' Compensation program, the Special Agents of the U.S. Postal Service Office of Inspector General will work tirelessly with the U.S. Attorney’s Office to protect the integrity of this federal benefit program.”
The case was investigated by the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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Multistate Drug Organization Dismantled; 31 Defendants Face Federal Drug and Firearms ChargesRead the Press Release
LITTLE ROCK—In arrest operations that stretched across the country for the past week, law enforcement officers have arrested multiple defendants in an effort to disrupt a transnational drug-trafficking organization responsible for distributing hundreds of pounds of methamphetamine in central Arkansas.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Justin C. King, Assistant Special Agent in Charge of the Drug Enforcement Agency (DEA) Little Rock Field Office, announced the arrests and the unsealing of a federal indictment charging 31 defendants with 53 counts that include federal drug, firearm, and money laundering offenses. This afternoon, two defendants in California were arraigned on money laundering charges, bringing the total number of people arrested thus far to 23. In operations that began last Thursday, the DEA and its law enforcement partners have arrested four people in California and 19 in central Arkansas. Of the 19 local defendants served with arrest warrants, four were already in state custody and two in federal custody. Eight defendants remain fugitives, four in Arkansas and four in California.
This drug-trafficking organization is alleged to be led by Eric Baldwin, 29, and Nicholas Robinson, Jr., 23, both of Little Rock. The indictment named 23 defendants from the central Arkansas area—where the drugs were distributed—and eight defendants from southern California, which is alleged to be the source of the drugs.
“This criminal organization stretched from Arkansas to California, and was responsible for distributing large quantities of illegal drugs here in our neighborhoods, ”U.S. Attorney Hiland said. “This indictment demonstrates that our federal reach does not stop at the Arkansas border. If you sell illegal drugs in Arkansas, we will prosecute you. If you send illegal drugs to Arkansas, we will prosecute you. Our goal continues to be to ensure criminals pay a consistent, painful cost for hurting our people and poisoning our communities.”
This ongoing investigation was the result of several law enforcement agencies, led by the DEA, attacking the drug-trafficking organization on multiple fronts. During the course of the investigation in 2017 and 2018, the DEA utilized three court-authorized wiretaps to intercept hundreds of drug-trafficking calls. Law enforcement officers, including DEA agents and local police departments, conducted more than a dozen controlled purchases of drugs, resulting in seizures of more than 1.5 kilograms of methamphetamine, as well as oxydocone and ecstasy pills.
In addition, the DEA worked closely with the U.S. Postal Inspection Service once agents discovered the organization’s primary method for getting drugs into Arkansas— the U.S. mail. Agents intercepted more than 15 packages, which contained 13 kilograms of methamphetamine and four kilograms of marijuana. Additional operations, including the execution of search warrants and state arrests, led to the seizure of another 7.5 kilograms of methamphetamine, 8 kilograms of marijuana, 7 firearms, and more than $25,000 in drug proceeds.
The DEA also conducted an extensive financial investigation which revealed what is alleged to be the organization’s method of payment for the drugs—Wal-Mart to Wal- Mart wire transfers from Arkansas to California. During the investigation, it is alleged that individuals associated with this organization sent more than $250,000 to California for the purchase of controlled substances.
“The wreckage caused by drugs affects everyone,” DEA ASAC King said. “No matter the amounts of drugs they sell, drug dealers breed crime in our neighborhoods and are a danger to our children. The arrests in this multi-jurisdictional investigation demonstrate to the citizens of central Arkansas and across the nation that federal, state, and local law enforcement can come together and accomplish great things. It should also serve as a warning to drug dealers here and beyond—regardless of your innovative tactics, we will arrest you and prosecute you to the fullest extent of the law.”
The investigation was conducted by the DEA, in conjunction with the United States Postal Inspection Service, and with assistance from multiple agencies, including: Bureau of Alcohol, Tobacco, Firearms & Explosives, Arkansas State Police, Little Rock Police Department, Pulaski County Sheriff’s Office, Benton Police Department, Saline County Sheriff’s Office, Conway Police Department, Faulkner County Sheriff’s Office, First Judicial District Drug Task Force, Central Drug Task Force, Arkansas Department of Community Corrections, and the Arkansas National Guard Counter Drug Task Force. The agencies assisting on arrest operations include: the FBI, U.S. Marshal Service, Office of Inspector General-Social Security Administration, North Little Rock Police Department, Jacksonville Police Department, and the Office of the Arkansas Attorney General.
The charges in today’s unsealed indictment include conspiracy to distribute methamphetamine, marijuana, and oxycodone; distribution and possession with intent to distribute methamphetamine, marijuana, and oxycodone; possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm; use of a phone to facilitate a drug-trafficking crime; and conspiracy to commit money laundering offenses.
The maximum penalty for the drug charges is not less than 10 years in prison and up to life imprisonment, and a $10,000,000 fine. The maximum penalty for possessing a firearm in furtherance of a drug-trafficking crime is not less than five years in prison and up to life imprisonment, and a $250,000 fine. The maximum penalty for being a felon in possession of a firearm is 10 years in prison, and a $250,000 fine. The maximum penalty for using a phone to facilitate a drug-trafficking crime is not more than four years in prison, and a $250,000 fine. The maximum penalty for money laundering is not more than 20 years in prison, and a $500,000 fine.
Trial is set for October 22, 2018, before Chief District Judge Brian S. Miller. The case, docketed as Case No. 4:18-cr-00466 BSM, is being prosecuted by Assistant U.S. Attorney Chris Givens. The defendants charged include:
Khambria Allen, 22, Little Rock, AR %
Eric Baldwin, 29, Little Rock, AR $
John Bowman, 34, Bryant, AR
John Christopher Burch, 46, Conway, AR *
Justin Collins, 29, Augusta, AR
Kamie Collins, 31, Augusta, AR
Jason Flowers, 36, Little Rock, AR %
Windell Fountain, 50, Victorville, CA %
Jennifer Gosnell, 27, Conway, AR
Blake Gray, 36, Judsonia, AR
Deketric Harper, 23, Judsonia, AR %
Roderick Isom, 35, Little Rock, AR
Aundre Lamar Jones, 31, Los Angeles, CA ^
Patricia Janae Kennon, 30, Los Angeles, CA %
Chad Lane, 23, Mabelvale, AR *
Robert McIntosh, III, 35, Little Rock, AR
Lewis Miles, 47, Blytheville, AR $
Aaron Lynn Parks, 35, Conway, AR *
Deaundry Peoples, 27, Little Rock, AR *
Ryan Rielly, 28, Benton, AR
Joseph Riggins, Jr., 27, Little Rock, AR
Nicholas D. Robinson, Jr., 23, Little Rock, AR %
Nicholas D. Robinson, Sr., 46, Little Rock, AR
Christopher Sanders, 39, Burbank, CA ^
Francis Andre Scott, 35, Los Angeles, CA %
Lemar Devon Steward, 23, Benton, AR
Autumn Talley, 30, Paramount, CA ^
April Treat, 30, Greenbrier, AR
Lorene Wilhite, 51, Los Angeles, CA^
Ortez Williams, 25, Benton, AR
George Perry Wright, 35, North Hollywood, CA %
$ already in federal custody
* already in state custody
^ arrested in California
% fugitive
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar Twitter:
@EDARNEWS
Multiple Defendants Indicted for Heroin and Fentanyl CrimesRead the Press Release
RICHMOND, Va. – A federal grand jury returned a seven-count indictment yesterday charging Caroline County residents and a City of Richmond man with conspiracy to distribute heroin and fentanyl and a number of other drug trafficking crimes, including distribution and possession with intent to distribute a mixture containing heroin and fentanyl, the use of which resulted in the death of Elizabeth Rosie on or about Nov. 28, 2017.
According to the indictment, Leonus Stevenson Peterson, 43, of Richmond, Gregory Kenneth Rosie, 42 of Caroline County, Marcus Ian Watson, 43, of Caroline County and Jenna Rose Queen, 33, of Caroline County, were charged with conspiring to distribute and possess with the intent to distribute more than 100 grams of heroin and more than 40 grams of fentanyl over a twelve-month period of time. If convicted of this count, the defendants face a mandatory minimum term of 5 years in prison and a maximum penalty of 40 years in prison.
According to the indictment, Peterson and Rosie also were charged with distribution and possession with intent to distribute a mixture that contained heroin and fentanyl on or about Nov. 28, 2017, the use of which resulted in the death of Elizabeth Rosie, who was Greg Rosie’s wife. If convicted, the men face a mandatory minimum penalty of 20 years in prison.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Virginia State Police Superintendent, and Tony Lippa, Jr., Caroline County Sheriff, made the announcement. Assistant U.S. Attorney Olivia L. Norman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-90.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Most Wanted Fugitive Arraigned on Multi-Million Dollar Health Care FraudRead the Press Release
Etienne Allonce is scheduled to be arraigned today before United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip on charges of health care fraud and conspiracy, for allegedly defrauding Medicare and Medicaid out of millions of dollars. Allonce was expelled from Haiti to face the charges in the indictment pending here, and turned over to the custody of law enforcement agents. Prior to his return to the United States, Allonce was placed on the Most Wanted list of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
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), and Scott J. Lampert, Special Agent-in-Charge, HHS-OIG, Office of Investigations, New York Region, announced the charges.
According to the indictment returned in 2007, Allonce and his wife, Helen Michel, were co-owners and operators of Medical Solutions Management, Inc. (MSM), a medical equipment company located in Hicksville, New York. MSM provided durable medical equipment and supplies to nursing homes. Between April 2003 and March 2007, Allonce and Michel allegedly submitted $10 million in false claims to Medicare and Medicaid seeking payment for medical supplies purportedly provided to patients at nursing homes, when those medical supplies had not been provided. Allonce fled the United States hours before federal agents arrested Michel. Michel was tried and convicted by a jury in August 2012 and she was sentenced in April 2013 to 12 years’ imprisonment and ordered to forfeit $1.3 million that had been seized by the government. Michel served her sentence and was released from prison in December 2017.
“Today begins the process of holding Allonce responsible for his crimes, more than a decade after he was indicted for healthcare fraud and left the United States,” stated United States Attorney Donoghue. “The prosecution of Allonce demonstrates the resolve of this Office and our law enforcement partners to bring to justice those who defraud vital benefit programs relied upon by millions of Americans.”
“Mr. Allonce allegedly thought he could escape his crimes by leaving the United States, and hiding as a fugitive for more than a decade, leaving his wife behind to answer for their defrauding American taxpayers,” stated Assistant Director-in-Charge Sweeney. “Regardless of the crime, be it healthcare fraud or bank robbery, if criminals break the law and are charged, they will be held accountable.”
“We are committed to investigating those responsible for health care fraud, including this former HHS-OIG Most Wanted fugitive, who stole scarce taxpayer money intended to pay for legitimate patient care,” stated HHS-OIG Special Agent-in-Charge Lampert. “The pursuit and arrest of Mr. Allonce is a reflection of our determination, and that of our law enforcement partners, to hold fraudsters accountable for their crimes no matter where they run or try to hide.”
The charges in the indictment are allegations, and the defendant Etienne Allonce is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly, Burton T. Ryan, Jr. and Madeline O’Connor.
The Defendant:
ETIENNE ALLONCE
Age: 55
Port au Prince, HaitiE.D.N.Y. Docket No. 07-889(JFB)
Milledgeville Felon Sentenced to 72 Months in Prison for Gun Possession Under Project Safe NeighborhoodsRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Arthur Lee Bennett, age 45, of Milledgeville, Georgia was sentenced to serve 72 months in federal prison for Possession of a Stolen Firearm before U.S. District Judge Marc T. Treadwell in Macon, Georgia on September 19, 2018.
In his plea agreement, Mr. Bennett admitted that the Georgia State Patrol stopped him for speeding on August 12, 2017. While waiting for confirmation that Mr. Bennett had an outstanding probation violation warrant, a Trooper attempted to detain him, but Mr. Bennett fled on foot. An inventory of Mr. Bennett’s car revealed a loaded .380 caliber pistol which had been reported as stolen from an evidence locker at the Milledgeville Police Department. Mr. Bennett was subsequently arrested, and the police confirmed he had felony convictions for Burglary, Possession of Cocaine, Armed Robbery and Interference with Government Property.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
“Felons with stolen guns are headed to federal prison,” said U.S. Attorney Charles E. Peeler. “I commend the ATF and Georgia State Patrol for bringing Mr. Bennett to justice.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Georgia State Patrol. Assistant U.S. Attorney Kimberly Easterling is prosecuting the case.
Questions regarding this case should be addressed to Pamela Lightsey, Public Information Officer, at 478-731-1824 or [email protected]
Michigan City Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND – Shed Woods, 38 years old, of Michigan City, Indiana, was sentenced by U.S. District Court Judge Robert L. Miller, Jr. after pleading guilty to being a felon in possession of a firearm, announced U. S. Attorney Kirsch.
Woods was sentenced to 180 months in prison followed by 2 years of supervised release.
According to documents in the case, in November 2017, Woods possessed a firearm while having been convicted of four prior felonies. Wood also has two misdemeanor convictions and eleven other contacts with the law.
This case was investigated by the ATF and prosecuted by Assistant United States Attorney Frank E. Schaffer.
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Mexican National Sentenced for East Texas Drug TraffickingRead the Press Release
MARSHALL, Texas - A 20-year-old Mexican national has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Benigno Guzman Ortiz pleaded guilty on May 21, 2018, to possession with intent to distribute more than 500 grams of methamphetamine and was sentenced to 58 months in federal prison by U.S. District Judge Rodney Gilstrap.
According to information presented in court, on Sep. 29, 2017, Ortiz was stopped for a traffic violation in Cass County, Texas. During the stop, law enforcement officers requested consent to search the van Ortiz was driving. Ortiz gave consent and the search revealed 15 bundles of methamphetamine concealed within the rear hatch of the van. Ortiz was arrested and admitted that he had been recruited to drive the van containing methamphetamine from Houston to Texarkana, Arkansas. Ortiz was indicted by a federal grand jury on Oct. 18, 2017, and charged with drug trafficking violations.
This case was investigated by the Texas Department of Public Safety Highway Patrol and Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Jim Noble.
Mexican National Indicted on Heroin Trafficking ChargesRead the Press Release
BOSTON – A Mexican national was indicted by a federal grand jury yesterday in connection with drug trafficking activities that resulted in the seizure of approximately four kilograms of suspected heroin.
Miguel Angel Torres Morales, 39, was indicted on one count of possession with the intent to distribute one kilogram or more of heroin. Torres Morales was arrested on Aug. 21, 2018, and charged by criminal complaint; he has been detained since then.
According to court documents, a cooperating witness arranged to purchase four kilograms of “china white,” referring to fentanyl, from a large-scale narcotics distributor for $55,000 per kilogram. The distributor agreed to deliver the drugs to the cooperating witness using a courier. On Aug. 20, 2018, Torres Morales drove a tractor trailer to the area of the “Park and Ride” parking lot on Granite Avenue in Milton to deliver the drugs. Federal agents stopped the tractor trailer and, in a cabinet behind the driver’s seat, located four brick-packed kilograms of tan powder wrapped in cellophane. A field test of the powder tested positive for heroin.
The charge of possession with intent to distribute one kilogram or more of heroin provides for a mandatory minimum sentence of 10 years in prison and up to life, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. Torres Morales will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Alejandro Olvera-Servin, age 38, and a citizen of Mexico, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Olvera-Servin admitted as part of his guilty plea that he is a citizen of Mexico, and that he was removed from the United States to Mexico on March 19, 2016 and again on April 27, 2018. On each occasion, Olvera-Servin had been arrested by immigration authorities in Texas after he entered the United States without inspection from Mexico.
On June 19, 2018, he was arrested by a Border Patrol Agent in Mooers, New York, after he illegally entered the United States from Canada by walking across the border approximately 10 miles to the west of the Champlain Port of Entry, thereby avoiding immigration and customs inspection. Olvera-Servin admitted that he returned to the United States without permission following the 2016 and 2018 removals. Olvera-Servin claimed to have been living in Oklahoma City, Oklahoma, prior to his 2016 removal.
Olvera-Servin faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on January 17, 2019. 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 was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Massachusetts Man Sentenced to Ten Years for Fentanyl TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Steven Talbot, 32, of Wakefield, Massachusetts, was sentenced today in U.S. District Court by Judge Jon D. Levy to ten years in prison and eight years of supervised release for possession with intent to distribute fentanyl. He pleaded guilty on March 23, 2018.
Court records reveal that on December 4, 2017, Talbot transported 80 grams of fentanyl from Massachusetts to Maine for distribution to a person working with law enforcement. Law enforcement agents arrested Talbot and seized the fentanyl upon his arrival at the meeting location.
Talbot faced an enhanced penalty based upon a prior felony conviction for drug trafficking.
The investigation was conducted by the U.S. Drug Enforcement Administration with assistance from the Maine State Police, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Manchester Woman Sentenced to 18 Months in Prison for Firearm CrimeRead the Press Release
CONCORD - Sara Johnson, 36, of Manchester, was sentenced to serve 18 months in prison for federal firearms crimes, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Johnson purchased a rifle in a private sale from an individual in New Hampshire sometime in 2015. Johnson subsequently provided the rifle to an individual Johnson knew to be a convicted felon who was prohibited from possessing a firearm.
Johnson also purchased a pistol in 2015 in a private sale in Bow, New Hampshire. At the time of the purchase, the pistol’s serial number was intact. On June 9, 2016, law enforcement officers executed a search warrant at Johnson’s residence. A pistol with an obliterated serial number was found underneath a mattress. Testing later confirmed it to be the same pistol Johnson had purchased in 2015. Possessing a firearm with an obliterated serial number is a violation of federal law.
Johnson previously pleaded guilty on February 15, 2018.
“Those who violate federal firearms laws jeopardize public safety and often put guns in the hands of criminals,” said U.S. Attorney Murray. “Because those who provide firearms to felons increase the risk that those felons will commit violent crimes, we use Project Safe Neighborhoods and our other partnerships with law enforcement to identify and prosecute those who commit gun-related offenses.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives is committed to targeting individuals who are prohibited under federal law from possessing firearms and have further engaged in trafficking those firearms into other criminals hands,” said Special Agent in Charge, Mickey Leadingham.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced for Methamphetamine Trafficking in Omaha After Multiple Prior Immigration Removals to MexicoRead the Press Release
United States Attorney Joseph P. Kelly announced that on September 20, 2018, United States District Judge John M. Gerrard sentenced Bernardo Williams-Jauregui, of Campeche, Mexico, to a 120-month term of imprisonment, to be served in the U.S. Bureau of Prisons. He received a four-year term of supervised release. Williams-Jauregui pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, Reentry of a Removed Alien after a prior felony conviction, and Use of Facilities in Interstate Commerce in Aid of Racketeering, all felony offenses.
On October 2, 2016, Williams-Jauregui entered the United States unlawfully through the U.S./Mexico border in California and made his way east to Omaha, arriving in the local area on approximately October 5, 2016. Williams-Jauregui conspired with other parties in Omaha and in Mexico to distribute methamphetamine in the Omaha area, and began trafficking methamphetamine almost immediately upon arrival.
On October 17, 2016, investigators seized a 21-pound load of methamphetamine that had recently arrived in Omaha and was intended for distribution in the local area. Investigators arrested three of Williams-Jauregui’s associates on October 17, 2016. U.S. Immigration and Customs Enforcement arrested Williams-Jauregui on February 28, 2017. Williams-Jauregui had been removed from the United States to Mexico by immigration authorities on multiple prior occasions.
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, the Iowa Division of Narcotics Enforcement, the Omaha Police Department, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement.
Leader of Lawrence-Based Drug Trafficking Organization Pleads Guilty to Heroin, Fentanyl ChargesRead the Press Release
BOSTON – The leader of a Lawrence-based heroin and fentanyl drug trafficking organization pleaded guilty yesterday in federal court in Boston in connection with orchestrating a wide-ranging operation that distributed multiple kilos of fentanyl and cocaine to customers in Lawrence and surrounding areas – including New Hampshire and Maine.
Juan Anibal Patrone, 28, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine, and 400 grams or more of fentanyl and one count of being an alien in possession of a firearm. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 10, 2019. Patrone has been in custody since his arrest in May 2017.
On May 30, 2017, a large scale law enforcement operation dismantled two Lawrence-based drug trafficking organizations, one run by Patrone, and another led by Santo Ramon Gonzalez Nival, who was a source of supply for Patrone. Patrone and approximately 28 co-conspirators were arrested, including Gonzalez Nival and nine members of his drug trafficking organization. Gonzalez Nival previously pleaded guilty and is scheduled to be sentenced on Sept. 21, 2018.
Patrone ran his organization like a business. He bought drugs from suppliers, such as co-conspirator Domingo Gonzalez Martinez, who supplied drugs to Patrone out of the Corniel Market in Lawrence. He personally paid rent for stash houses, including 277 Merrimack Street and 20 Cambridge Street in Lawrence, and paid his brother, Josuel Moises Patrone-Gonzalez, and Oscar Marcano, to prepare and package drugs in those stash houses. He ran a crew of couriers, including some who worked in cars, like Luis Lugo and Leonel Vives, and others who walked the street, such as Daniel Diaz and Andruery Fanas Burgos, telling them specifically where to go and who to see. Similarly, Patrone personally directed his redistributors where to go to purchase narcotics to distribute, including Matthew Shover, Stacey Littlefield, Lacey Picariello, Reynaldo Duran Lora, and Rafael Arce – some of whom came from New Hampshire and Maine to obtain drugs to redistribute outside of Massachusetts. Patrone also paid Euclides Alcantara to register and insure his fleet of vehicles in false names, and to carry drug proceeds to the Dominican Republic.
In addition, Patrone openly discussed the size of his drug business with others, including family. In intercepted calls, he admitted that he had worked in the business for seven years and wanted to return to the Dominican Republic, where he planned to get out of the drug business and live well. Investigators learned from these calls that Patrone’s assets are primarily in the Dominican Republic, and the government has undertaken efforts to freeze and forfeit them as part of his sentence in this case.
Furthermore, during a search of Patrone’s home, agents found a 10mm Auto-Ordnance Corp, loaded with a magazine containing six 10mm rounds of ammunition.
In addition to yesterday’s plea, a member of the Nival Gonzalez organization was sentenced in federal court.
Bernaldo Rosario Santiago, 27, of Puerto Rica, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison, four years of supervised release, and ordered to forfeit approximately $18,000. In June 2018, Santiago was convicted by a federal jury of one count of conspiracy to possess with intent to distribute and to distribute heroin and at least 40 grams of fentanyl. Santiago was a redistributor for the Nival Gonzalez organization.
Patrone faces a mandatory minimum sentence of 10 years and up to life in prison, five years and up to a lifetime of supervised release, a fine of up to $10 million, and will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; 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.
Knoxville Resident Convicted of Attempted Enticement of a Minor for Unlawful SexRead the Press Release
KNOXVILLE, Tenn.- On September 19, 2018, after a two-day trial before the Honorable Thomas A. Varlan, Chief U.S. District Judge, a jury found James Michael Hood, 54, of Knoxville, Tennessee, guilty of one count of attempted enticement of a minor for unlawful sex.
Sentencing has been set for February 13, 2019. Hood faces up to life in prison.
According to evidence revealed during the trial, in June 2017, Hood attempted to communicate with the 17-year-old female victim by friending her on Facebook. The victim blocked him after less than a day of him sending her inappropriate messages. The victim and her mother reported the inappropriate messages to law enforcement, who initiated an undercover operation posing as the young girl. Hood was provided with a phone number to use if he wanted to text the victim. Believing he was communicating with the young girl, within two minutes of receiving the number, he began texting her. Within 48 hours, he was sending her explicit sexual messages. Hood set up a meeting with the victim; however, instead of being met by the victim, he was met by law enforcement and arrested.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force, University of Tennessee Police and U.S. Homeland Security Investigations. Assistant U.S. Attorney Jennifer Kolman represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.projectsafechildhood.gov.
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Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pled guilty yesterday to a federal drug crime, announced United States Attorney Mike Stuart. Fabian Lee Woodson, 36, of Elkview, entered his guilty plea to possession with intent to distribute a quantity of heroin. Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team (MDENT).
“Yet another heroin dealer off the streets,” said United States Attorney Mike Stuart. “We are laser focused on removing these poison peddlers from our communities.”
Woodson admitted that in early January of 2016, he possessed over 50 grams of heroin for distribution at his home in Elkview, West Virginia. He further admitted that he had four firearms in his home. Woodson also admitted that on two occasions in December 2015, he sold .8 grams of heroin to a confidential informant. Officers with MDENT conducted these controlled purchases and then executed the search warrant on Woodson’s home where the drugs and guns were recovered.
Woodson faces up to 20 years in federal prison when he is sentenced on December 19, 2018.
The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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###Justice Department Will Award up to $246 Million in Grants to Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
ARIZONA – The District of Arizona’s First Assistant United States Attorney Elizabeth A. Strange joined the Department of Justice today in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities. The tribes in Arizona receiving grants that were announced today are Fort McDowell Yavapai Nation, Hualapai Tribe, Navajo Nation, Pascua Yaqui Tribe, Salt River Pima Maricopa Indian Community, San Carlos Apache Tribe, Havasupai Tribe, White Mountain Apache Tribe, and Yavapai-Apache Nation. The link below shows estimated award amounts.
“These awards to nine Arizona tribes demonstrate our continued support and commitment to improving public safety in Indian Country,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “These resources will help our tribal partners to combat violent crimes and domestic abuse, which predominantly target women and children, as well as to provide expanded services for the victims of these crimes.”
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation (CSTAS), a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico. “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety.”
The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A specific listing of today’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.
RELEASE NUMBER: 2018-122_ Public Safety Awards (IC)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Will Award up to $246 Million in Grants to Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
BOISE – U.S. Attorney Bart M. Davis joined the Department of Justice yesterday in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities. Two tribes in the District of Idaho, the Nez Perce and the Shoshone-Bannock, were awarded grants totaling $1,852,587.
North Idaho’s Nez Perce Tribe will receive a $236,687 Justice Systems and Alcohol and Substance Abuse grant. East Idaho’s Shoshone-Bannock Tribe will receive a $750,000 Justice Systems and Alcohol and Substance Abuse grant and an $865,900 Violence Against Women Tribal Governments Program grant.
“Providing these grants to our tribes in Idaho reinforces that my office and the Department of Justice are committed to protecting and providing victim services to our communities,” said U.S. Attorney Bart Davis. “These resources will help strengthen Idaho tribal communities for years to come.”
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico. “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety.”
The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
Yesterday's announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of yesterday’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.
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Justice Department Will Award up to $246 Million in Grants to Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – U.S. Attorney Billy J. Williams joined the Department of Justice in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities, including: the Columbia River Inter-Tribal Fish Commission; Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians; Confederated Tribes of the Umatilla Indian Reservation; Confederated Tribes of the Warm Springs Reservation; Coquille Indian Tribe; Cowcreek Band of Umpqua Tribe of Indians; and Klamath Tribes.
“Pursuing justice on behalf of tribal communities and supporting the development and growth of tribal law enforcement agencies, courts, and victim services has been a key focus of the U.S. Attorney’s Office for many years,” said U.S. Attorney Williams. “These awards mark the Justice Department’s continued commitment to ensuring all tribes have the resources necessary to keep their communities safe and effectively enforce the administration of justice on tribal land.”
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico. “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety.”
The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of the announced CTAS awards is available at: go.usa.gov/xP2uc.
Jury convicts Maple Heights man of leading a conspiracy in which they filed more than 800 tax returns to falsely claim $15 million in refundsRead the Press Release
A Maple Heights man was convicted by a jury for leading a conspiracy in which they filed more than 800 tax returns annually between 2012 and 2015 resulting in approximately $15 million in refunds being issued, a portion of which neither they nor their clients were entitled.
Keith Jeffries, 44, was convicted of conspiracy to defraud the United States and multiple counts of aiding and abetting the preparation of false tax returns. He is scheduled to be sentenced Jan. 8.
Defendants Brian Peacock, of Sandusky, Linnette Coleman, and Nicole Pugh, both of Cleveland, previously pleaded guilty to their roles in the conspiracy.
Jeffries operated a tax preparation business under the name Krew Time, LLC. Jeffries, Peacock, Coleman and Pugh all prepared returns for Krew Time clients. The company operated out of three locations – from Jeffries’ residence on Friend Avenue in Maple Heights, from the back offices of a MetroPCS store on East 71st Street in Cleveland and from a commercial building on East 140th Street in Cleveland, according to court documents.
The defendants filed false, fictitious and fraudulent tax returns in the name of Krew Time clients. The clients received the majority of the refunds with the defendants receiving a portion of the refund as their tax preparation fee, according to court documents.
They did this by filing false itemized deductions, business income expenses, tax credit information, medical expenses, false filing status and other information to obtain income tax refunds to which the taxpayers were not entitled. This took place between 2011 and 2016, according to court documents.
“This group spent years riping off the federal government by filing hundreds of fake tax returns,” U.S. Attorney Justin E. Herdman said. “These defendants took advantage of programs designed to help sick people or struggling students and instead used them to enrich themselves.”
“These defendants wreaked havoc on the IRS by misusing their Electronic Filing Identification Number and Preparer Tax Identification Number to electronically file fraudulent income tax returns for their clients that generated inflated false income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case was investigated by the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Carmen Henderson and Alejandro Abreu.
Jury Convicts Stockton Special Education Teacher on Charges Related to Long-Term Sexual Abuse of MinorsRead the Press Release
SACRAMENTO, Calif. — A federal jury has found Rodney Flucas, 49, of Stockton, guilty of transportation of minors with intent to engage in criminal sexual activity and one count of transporting an adult daughter across state lines with intent to engage in incest, U.S. Attorney McGregor W. Scott announced.
“Cases like these are difficult to investigate. We must ask the victims to relive trauma and face a person they would rather forget. Rodney Flucas underestimated the strength and grace of his victims, and we thank them for their courage,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We are grateful for opportunities to investigate crimes against minors-often in concert with local, state, and federal partners — to ensure those who exploit their naiveté and innocence face justice.”
According to court documents and evidence produced at trial, Flucas engaged in long‑term, concurrent sexual abuse of three of his daughters and two others, all of whom were minors when he began abusing them. The abuse came to light in February 2017 when his teenaged daughter tried to commit suicide by driving into a lamppost hoping that her death would lead to the discovery of the abuse. She was transported to the hospital where she disclosed the abuse to authorities. After this, five other victims began disclosing the sexual abuse Flucas inflicted on them since they were children. They made such disclosures despite Flucas’s aggressive campaign to get them to lie to child protection authorities and the police, and despite the family mantra Flucas had programmed into minors in his home from a young age: “what happens in the family, stays in the family.” DNA testing confirmed that Flucas is the father of 10 children born to victims who testified in this case.
According to evidence produced at trial, Flucas began abusing four of his victims when the family lived in Valdosta, Georgia around the year 2000. He owned or controlled upward of four houses on the same street in Valdosta where his wife, ex-wife, other partners and children lived. In 2014, the Georgia Division of Family and Children Services began to investigate allegations of child abuse, made by a grandmother of four of Flucas’s children, including allegations that Flucas had impregnated two of his daughters, but closed its investigation. In August 2014, Flucas moved his family to Americus, Georgia where he continued to sexually abuse some of his children. He began working as a teacher of the deaf and hard of hearing but was fired after one month amidst sexual abuse allegations.
By September 2014, Flucas moved the family, including four of his victims, to Klamath Falls, Oregon and continued the abuse. Once in Oregon, Flucas also began sexually abusing a 15‑year-old girl, who had befriended Flucas’s daughter at school. That girl moved into Flucas’s home, and Flucas eventually impregnated her when she was 16. He also impregnated an adult daughter for the third time in Oregon. Flucas continued his abuse of his victims throughout their entire time in Oregon.
After more allegations arose in Oregon in 2015, Flucas moved his family to Stockton. He moved his victims, including the then-pregnant family friend, and continued to sexually abuse them in California until the car crash that brought the allegations to light.
Evidence at trial also demonstrated that on the heels of his daughter’s disclosure to police in Stockton, Flucas began searching the internet for places to move overseas, including China, Kenya, Ethiopia, Canada, Panama, and Nepal. He also searched for the U.S. dollar to Mexican peso conversion rate.
According to evidence presented at trial, in addition to his ties to Georgia, Oregon, and California, Flucas has ties to or has lived in Baltimore, Maryland, Washington, D.C., and Harrisburg, Pennsylvania; he has a current Pennsylvania driver’s license and testified at trial he has a home there and travels there often. Additionally, Flucas has fathered at least 23 children, including three who were the subject of this trial, by numerous women. Also presented at trial was evidence that Flucas had visited a website that provided information about the statute of limitations for rape in the state of Texas.
This case is the product of an investigation by the Federal Bureau of Investigation, which originated from an investigation by the Stockton Police Department. Assistant U.S. Attorneys Nirav Desai and Jeremy Kelley are prosecuting the case. The defendant is also the subject of charges filed by the San Joaquin County District Attorney’s Office, as a result of the Stockton Police Department’s separate investigation.
Flucas is scheduled to be sentenced before U.S. District Judge Kimberly J. Mueller on December 17, 2018. Flucas faces a statutory mandatory minimum sentence of 20 years in prison and up to a maximum of life in prison and a $250,000 fine for the count of transportation minors with intent to engage in criminal sexual activity. On June 26, a separate jury had found Flucas guilty of one count of attempted witness tampering, and he faces up to 20 years in prison and a $250,000 fine for that count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Joseph Percoco, Former Executive Aide and Campaign Manager to N.Y. Governor, Sentenced to 6 Years in Prison for Accepting BribesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOSEPH PERCOCO, the former executive deputy secretary to the Governor of the State of New York, was sentenced to six years in prison for soliciting and accepting more than $315,000 in bribes in return for taking official state action to benefit energy company Competitive Power Ventures (“CPV”) and Syracuse-based real estate developer COR Development (“COR”). On March 13, 2018, PERCOCO was convicted of two counts of honest services fraud conspiracy and one count of bribery following an eight-week trial before United States District Judge Valerie E. Caproni, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Joseph Percoco, the former executive deputy secretary to the Governor, was a powerful New York State official who sold his influence and his office in exchange for more than $300,000 in bribes. For those crimes, he will now serve time in federal prison. Today’s sentence sends a strong message that public officials who violate their duties to faithfully serve the citizens of New York will be held accountable for their corrupt actions.”
Judge Caproni stated during the sentencing: “I hope this sentence will be heard in Albany.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
PERCOCO, who served as the executive deputy secretary to the Governor between January 2012 and mid-2014, and again in 2015, abused his official position and extensive influence within the executive branch of New York State (the “State”) by seeking and accepting bribe payments from executives at companies that were seeking benefits and business from the State, in exchange for PERCOCO’s use of his official authority and influence to benefit those companies.
PERCOCO solicited the bribe payments from executives at two clients of Todd Howe – CPV and COR – both of which had retained Howe as a consultant to help them obtain official State action. In email correspondence between PERCOCO and Howe, PERCOCO and Howe referred to the bribe payments as “ziti,” a reference to a term for money used by the characters in the television show “The Sopranos.”
Bribes from CPV
PERCOCO, Howe, and others conspired for PERCOCO to receive more than $287,000 in bribe payments in exchange for PERCOCO’s official assistance for CPV on an as-needed basis.
State action was critical to CPV’s business. Starting as early as 2010, CPV provided personal benefits to PERCOCO, including expensive meals and a Hamptons fishing trip, in an effort to cultivate access to PERCOCO. In response to CPV’s requests for official State assistance, PERCOCO, who was experiencing financial difficulties at the time, requested that CPV hire his then-unemployed wife. In or around the end of 2012, CPV executive Peter Galbraith Kelly Jr. created a position for PERCOCO’s wife that paid approximately $90,000 per year while requiring PERCOCO’s wife to do little work. In exchange for these payments, PERCOCO agreed to use his official position and influence, and did in fact use his official position and influence, to help CPV with specific State matters as the opportunities arose.
Among other things, PERCOCO agreed to use his official position and influence to assist the CPV’s efforts to obtain (i) a valuable agreement from the State allowing CPV to buy lower-cost emissions credits in New York for a power plant proposed to be built in New Jersey and (ii) a long-term power purchase agreement with the State guaranteeing a buyer for the power to be produced at a power plant proposed to be built in New York, which was expected to save CPV approximately $100 million in development costs.
CPV’s payments to PERCOCO’s wife were concealed in various ways to hide their true source. For example, monthly payments to PERCOCO and his wife were made through a consultant who worked for CPV in order to disguise the source of the payments. For his part, PERCOCO concealed the criminal scheme by failing to include CPV as the source of payments on his State-mandated financial disclosure forms.
Bribes from Aiello and the Syracuse Developer
Beginning in early 2014, PERCOCO was also paid bribes totaling approximately $35,000 from COR. These bribe payments were orchestrated by Steven Aiello, the COR president. Aiello arranged for the payment of these bribes in exchange for PERCOCO’s official assistance for COR on an as-needed basis.
Specifically, PERCOCO agreed to, and did, take official action for the benefit of COR to (a) reverse an adverse decision by the Empire State Development Corporation, which is the State’s main economic development agency, that would have required COR to enter into a costly labor peace agreement for a development project in Syracuse, (b) free up a backlog of more than $14 million in State funds that had already been awarded to COR but were delayed in payment, and (c) secure a substantial pay raise for Aiello’s son, who worked in the executive chamber.
To disguise the nature and source of the bribe payments, COR’s bribes to PERCOCO were funneled through bank accounts and a shell company set up by Howe.
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In addition to the prison term, PERCOCO, 49, of South Salem, New York, was sentenced to three years of supervised release. Restitution and forfeiture amounts will be determined at a later date.
PERCOCO is the first defendant who has been sentenced after being convicted in this case. Steven Aiello, who was found guilty at the same trial of one count of honest services fraud conspiracy, will be sentenced on November 29, 2018. Peter Galbraith Kelly Jr., who pled guilty on May 11, 2018, to one count of conspiracy to commit wire fraud, will be sentenced on October 16, 2018.
Mr. Berman praised the outstanding work of the Buffalo Field Office of the Federal Bureau of Investigation and the New York Office of the Internal Revenue Service, Criminal Investigation, as well as the Special Agents from the U.S. Attorney’s Office, who jointly conducted the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Janis Echenberg, Robert Boone, David Zhou, and Matthew Podolsky are in charge of the prosecution.
Jacksonville Man Sentenced to More Than Four Years in Federal Prison for Firearms OffenseRead the Press Release
Jacksonville, Florida– U.S. District Judge Timothy J. Corrigan has sentenced Daryl D. Shack (28, Jacksonville) to four years and three months in federal prison for possessing a firearm as a convicted felon. Shack pleaded guilty on May 15, 2018.
According to court documents, on July 17, 2017, officers from the Jacksonville Sheriff’s Office conducted a traffic stop on a car in which Shack was a passenger. The driver’s two-year-old daughter was also in the car. Shack possessed a loaded Beretta pistol, which had previously been reported stolen, between his feet. He also had a baggie of cocaine in his pocket. Officers later recovered a baggie of marijuana, a knife, and an axe from the vehicle. At the time, Shack had a previous conviction for armed robbery, and therefore, was prohibited from possessing a firearm by federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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 two months in federal prison.
Melvin Caguach-Samol, age 21, a citizen of Guatemala illegally present in the United States and living in Postville, Iowa, received the prison term after an August 9, 2018, guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Caguach-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 10, 2018, at a business in Independence, Iowa. The Social Security number and the Alien Registration number on the “green card” were issued to other persons. Caguach-Samol also used the same fraudulent Social Security card and “green card” when applying for work in Garnavillo, Iowa, in April 2016.
Caguach-Samol was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Caguach-Samol was sentenced to 72 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. Caguach-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-2035-LTS. Follow us on Twitter @USAO_NDIA.
Hurricane Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Hurricane man pled guilty today to a federal gun charge, announced United States Attorney Mike Stuart. Michael Shawn Alford, 38, entered his guilty plea to being a felon in possession of a firearm. Stuart commended the investigative efforts of the Cabell County Sheriff’s Office, the Dunbar Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Another felon in possession conviction,” said United States Attorney Mike Stuart. “ATF and our state and local law enforcement partners have intensified their efforts and worked a significant number of gun crime cases over the last nine months. By doing so, they are making West Virginia safer for all of us.”
Alford admitted that On September 24, 2017, he was riding a motorcycle in the area of Dry Ridge Road in Milton. The motorcycle broke down and Alford began to push it down the road. When a deputy from the Cabell County Sheriff’s Office arrived on scene, Alford went behind a tree in the woods close to the road. The deputy heard Alford in the woods and asked him to come out to the road. The deputy then went behind the tree where Alford had been and recovered a Smith and Wesson, Model M&P Shield, 9mm handgun. Alford was prohibited from possessing any firearm under federal law because of felony convictions in Kanawha County Circuit Court for aggravated robbery in 2001 and for unlawful assault in 2009.
Alford faces up to 10 years in federal prison when he is sentenced on January 14, 2019.
Assistant United States Attorneys Clint Carte and Stephanie Taylor are responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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###Hudson County, New Jersey, Woman Charged with Using U.S. Mails to Promote Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey woman was arrested and charged today for promoting a voter bribery scheme by use of the U.S. mail, U.S. Attorney Craig Carpenito announced.
Lizaida Camis, 55, of Hoboken, is charged by complaint with a violation of the Travel Act for causing the mails to be used to aid voter bribery contrary to New Jersey state law. She is scheduled to have her initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
Under New Jersey law, registered voters are permitted to cast a ballot by mail rather than in person. To receive a mail-in ballot, voters must complete and submit to their county clerk’s office an Application for Vote By Mail Ballot (VBM Application). After the application is processed, voters receive a mail-in ballot.
From October 2013 through November 2013, Camis agreed to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Camis provided these voters with VBM Applications and then delivered the completed applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Camis went to their apartments and, in some cases, instructed the voters to vote for the candidates for whom Camis was working. Camis promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at an office on Jefferson Street in Hoboken. Bank records show that voters living in Hoboken received $50 checks from entities associated with the campaigns that employed Camis.
Camis faces a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Houston Physician and a Pain Management Clinic Owner Each Sentenced to 35 Years in Prison for Running Pill Mill That Provided Unlawful Prescriptions for Millions of Doses of Opioids and Other Controlled SubstancesRead the Press Release
A Houston physician and the owner of a pain management clinic were each sentenced to 420 months in prison today for their roles in running a pill mill that provided tens of thousands of unlawful prescriptions for millions of doses of opioids and other controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas and Special Agent in Charge Will R. Glaspy of the U.S. Drug Enforcement Administration’s (DEA) Houston Field Office made the announcement.
Gazelle Craig D.O., 42, and Shane Faithful, 49, both of Houston, Texas, were sentenced by U.S. District Judge David Hittner of the Southern District of Texas. Craig and Faithful were convicted at trial in March 2018 of one count of conspiracy to unlawfully distribute controlled substances and three counts of unlawfully distributing and dispensing controlled substances. The defendants were charged in an indictment returned on July 6, 2017.
“Today’s sentences should serve as a stark warning to any medical professional considering exploiting the opioid crisis for profit: you will be caught, you will be prosecuted, and you will pay a steep price for abusing your prescription power for personal gain,” said Assistant Attorney General Benczkowski. “In the midst of the deadliest drug crisis in our country’s history, Gazelle Craig and Shane Faithful sold millions of opioids and endangered the safety of an untold number of Americans. We should all be proud of the hard work being done by DEA’s Tactical Diversion Squad and the prosecutors in the Department of Justice’s Fraud Section.”
“Dr. Craig, along with clinic owner Shane Faithful, used their position of trust to illegally distribute over 2 million dosage units of hydrocodone into local communities across Houston,” said DEA Special Agent in Charge Glaspy. “It is this kind of illegal distribution of prescription drugs that feed the opioid epidemic and destroys families. The sentencing of Dr. Craig and Mr. Faithful is a victory for our communities while at the same time making a nationwide statement that the DEA and DOJ will not tolerate this type of illegal activity.”
According to evidence presented at trial, from March 2015 through July 2017, Craig and Faithful ran Gulfton Community Health Center (Gulfton), which operated as an illegal pill mill. The evidence showed that Craig unlawfully wrote approximately 18,252 prescriptions for over 2.1 million dosage units of hydrocodone, a Schedule II controlled substance, and approximately 15,649 prescriptions for over 1.3 million dosage units of carisporodal, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
Craig regularly issued unlawful prescriptions for controlled substances to more than 60 patients a day, the evidence showed. “Crew leaders” ferried numerous patients to Gulfton so that Craig could provide them with unlawful prescriptions for controlled substances. Faithful and Craig charged approximately $300 for each prescription and required payment in cash. The defendants divided each day’s cash proceeds, often in excess of $15,000, from the sale of the unlawful prescriptions.
This case was investigated by the DEA. Trial Attorneys Scott Armstrong and Devon Helfmeyer of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Houston Attorney Charged in Offshore Tax Evasion SchemeRead the Press Release
A federal grand jury sitting in Houston, Texas returned an indictment today charging a Houston attorney with one count of conspiracy to defraud the United States and three counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
According to the indictment, Jack Stephen Pursley, also known as Steve Pursley, conspired with another individual to repatriate more than $18 million in untaxed earnings from the co-conspirator’s business bank account located in the Isle of Man. Knowing that his co-conspirator had never paid taxes on these funds, Pursley allegedly designed and implemented a scheme whereby the untaxed funds were made to appear to be stock purchases in United States corporations owned and controlled by Pursley and his co-conspirator.
The indictment alleges that Pursley received more than $4.8 million and an ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme. The indictment further alleges that for tax years 2009 and 2010 Pursley evaded the assessment of and failed to pay the incomes taxes due on this money by, amongst other means, withdrawing the funds as purported non-taxable loans or returns of capital. Pursley allegedly used the money he received to purchase personal assets, including a vacation home in Vail, Colorado and property in Houston.
If convicted, Pursley faces a statutory maximum sentence of five years in prison for the conspiracy count, and five years in prison for each count of tax evasion. He also faces a period of supervised release, monetary penalties, and restitution.
An indictment merely alleges that a crime has been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick commended special agents of IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Nanette Davis, Trial Attorney Grace Albinson, and Trial Attorney Sean Beaty of the Tax Division, who are prosecuting this case.Honduran Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Honduran man who illegally returned to the United States after being deported was sentenced today to almost five months in federal prison.
Edi Lenin Chirinos-Najera, age 26, a citizen of Honduras illegally present in the United States and residing in Muscatine, Iowa, received the prison term after a May 23, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Chirinos-Najera admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government in 2017. Chirinos-Najera was found by immigration agents in April 2018 following Chirinos-Najera’s arrest for public intoxication. That matter remains pending. While Chirinos-Najera initially denied ever being deported, an analysis of his fingerprints confirmed that he had been deported in 2014.
Chirinos-Najera was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Chirinos-Najera was sentenced to 143 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.
Chirinos-Najera 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-41-LTS. Follow us on Twitter @USAO_NDIA.
Haitian Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Obanette Jean, age 35, and a citizen of Haiti, was sentenced today to time served (55 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Jean was ordered removed from the United States to Haiti on April 1, 2015. On October 12, 2017, Jean departed the United States while the removal order was pending, and entered Canada. On July 27, 2018, she was arrested by a Border Patrol Agent just south of the border after she entered the United States from Canada without inspection approximately one-quarter mile west of the Champlain Port of Entry. Jean admitted that she returned to the United States without permission.
Following the sentencing, Jean was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Greenwich Man Charged with Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on September 12, 2018, a federal grand jury in New Haven returned an indictment charging LEONID POLLAK, also known as “Lenny,” 58, of Greenwich, with federal offenses related to an investment fraud scheme.
POLLAK was arrested this morning. He appeared this afternoon before U.S. Magistrate Judge Robert M. Spector in New Haven and was ordered detained.
As alleged in the indictment, POLLAK owned a Norwalk-based company that organized trade shows and expositions throughout the U.S. In mid-2013, POLLAK induced an acquaintance to invest $290,000 in a new business venture that was supposed to organize similar expositions in Ukraine. Instead of using the money to build the new business, POLLAK spent nearly all of it on unrelated business and personal expenses, including POLLAK’s home mortgage loan, groceries and clothing, automobiles, and private school tuition.
The indictment charges POLLAK with six counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count, and two counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Secret Service, with assistance from the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Ft. Mitchell Man Sentenced to 97 Months for Receipt of Child PornographyRead the Press Release
LEXINGTON, Ky. – Jeffrey W. Harney, 53, of Ft. Mitchell, Kentucky, was sentenced today to 97 months in federal prison, by United States District Judge David L. Bunning, for receipt of child pornography. Harney was also order to pay $18,964.93 in restitution to the victims in this case.
Harney pled guilty in March 2018 and admitted that he used computer equipment to download child pornography from the internet. Law enforcement officers executed a search warrant on his residence and located approximately 3,640 images (including 1,199 videos) of child pornography on Harney’s computer equipment.
Under federal law, Harney must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 15 years. He will also have to register as a sex offender.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Mike Christman, Acting Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement. The investigation was conducted by the Federal Bureau of Investigation. The United States was represented by Assistant United States Attorney Tony Bracke.
Former Police Officer Charged with Using Unreasonable Force, Obstructing JusticeRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Robert Wells, 49, of Pataskala, Ohio, with crimes related to using excessive force as a law enforcement officer in an indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Prosecutor Ron O’Brien announced the charges.
According to the indictment, on May 1, while acting in his then official capacity as a Franklin County Township Police Officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.
Additionally, the indictment alleges that Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.
Deprivation of rights under color of law is a federal crime punishable by up to 10 years in prison when it results in bodily injury. Obstructing a federal investigation carries a potential maximum sentence of up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Former Missouri County Executive and His Chief of Staff Sentenced to Prison for Stealing Campaign ContributionsRead the Press Release
A former elected county executive for Jackson County, Missouri and his chief of staff were sentenced to 27 months and six months in prison, respectively, for engaging in a scheme to steal campaign contributions, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Michael Sanders, 51, of Independence, Missouri, and Calvin Williford, 60, of St. Joseph, Missouri, were sentenced by U.S. District Judge Roseann A. Ketchmark of the Western District of Missouri. Sanders was sentenced on Wednesday to serve 27 months in prison followed by three years of supervised release and ordered to pay $40,000 in forfeiture. Williford was sentenced today to serve six months in prison followed by three years of supervised release and ordered to pay $36,000 in forfeiture. The defendants each pleaded guilty to a one-count information charging them with conspiracy to commit wire fraud on Jan. 26.
According to admissions made in connection with their pleas, Sanders was the elected County Executive for Jackson County from January 2007 until December 2015. Prior to serving as County Executive, Sanders was the elected Prosecuting Attorney for Jackson County. Williford was a senior staff member for Sanders, and then later chief of staff, in the Office of the County Executive from 2007 to December 2015. Prior to then, Williford served as Sanders’s Director of Public Affairs at the Jackson County Prosecuting Attorney’s Office. Sanders and Williford defrauded political committees with which Sanders was affiliated by converting campaign contributions for their personal use. Sanders and Williford misappropriated the money by directing the political committees to issue checks to certain individuals who performed little or no campaign-related work. Instead, the individuals cashed the checks and then returned a portion of the money to Sanders or Williford, who used the cash at times to pay for personal expenses.
The case was investigated by the FBI’s Kansas City Division. The case is being prosecuted by Trial Attorneys Lauren Bell and Edward P. Sullivan of the Criminal Division’s Public Integrity Section.
Former Employee of Restaurant Reservation Company Charged with Fraud for Intentionally Disrupting the Business of a CompetitorRead the Press Release
CHICAGO — An employee of a restaurant-reservation company used fake names and email addresses to create hundreds of fraudulent restaurant bookings through a competitor’s system, according to a criminal charge filed today by the U.S. Attorney’s Office in Chicago.
STEVEN ADDISON worked as an Enterprise Operations Specialist in the Chicago office of a San Francisco-based company that provides an online reservation system for restaurants. From November 2017 until February 2018, Addison booked more than 300 fraudulent reservations at Chicago restaurants that use Reserve, a competing reservation service, according to a criminal information filed in federal court in Chicago. Many of the bogus reservations were made on busy days, including New Year’s Eve and Valentine’s Day, when Addison knew restaurants would suffer financial losses when no diners showed up to claim the reservation, the information states. Addison’s scheme intended to demonstrate to Chicago restaurants that Reserve had an inferior reservation system, the charge alleges.
The information charges Addison, 30, of Chicago, with one count of wire fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Assistant U.S. Attorney Sunil R. Harjani represents the government.
According to the information, Addison began his scheme after discovering that Reserve’s software did not prevent reservations from users who entered a fake email address or a fake phone number. Addison made reservations using names such as “Hans Gruber,” “Richard Ashcroft” and “Jimmy Smits,” bogus email addresses such as “[email protected],” and fake phone numbers such as “199-999-99999,” the information states.
Addison made the reservations on his own accord and did not personally profit from the scheme, the information states.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Elementary School Teacher Charged with Attempted Enticement of a Minor and Viewing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Andrew Stephen Lund, 36, of Vallejo, charging him with attempted online enticement of a minor to engage in sexual activity and accessing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2018, Lund, attempted to persuade, induce, and entice a minor to engage in sexual activity. Between April 2016 and April 2018, Lund also accessed and viewed child pornography. Until his resignation in April 2018, Lund was an elementary school teacher in Vallejo.
This case was the product of an investigation by Homeland Security Investigations and Silicon Valley Internet Crimes Against Children Task Force. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Anyone with relevant information in this case is urged to call the Homeland Security Investigations Tip Line: 866-DHS-2-ICE.
If convicted, Lund faces a mandatory statutory minimum of 10 years in prison and a maximum of life in prison, as well as a fine up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety.
Former Detroit Man Admits Role in Jared Jewelry Store Robbery in North Fayette in 2015Read the Press Release
PITTSBURGH, Pa. – An inmate who is now serving a prison sentence at FCI McKean pleaded guilty in federal court to a charge of robbing a Jared Jewelry store in 2015, United States Attorney Scott W. Brady announced today.
Lonnie James Moton, age 28, formerly of Detroit, Michigan, pleaded guilty to one count of robbery before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the Court was advised that, on October 23, 2015, Moton and three other men robbed Jared-The Galleria of Jewelry store located at the Pointe in North Fayette. The robbers entered the store and used sledgehammers to smash the glass display cases inside the store. The robbers were able to get away with jewelry and precious stones with an approximate retail value of $680,000. Moton is currently serving a sentence at FCI McKean for two other "smash and grab" robberies he committed in North Carolina and Michigan.
Judge Ambrose scheduled the sentencing for January 8, 2019 at 1 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the North Fayette Police Department conducted the investigation that led to the prosecution of Lonnie James Moton.
Former Comptroller of Poughkeepsie Companies Sentenced in White Plains Federal Court for Multimillion-Dollar FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MARK CINA, a former comptroller of two Poughkeepsie companies, was sentenced to 41 months in prison for mail fraud and tax evasion. CINA pled guilty on April 11, 2018, before U.S. District Judge Cathy Seibel, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman stated: “Mark Cina embezzled millions of dollars to line his pockets at the great expense and suffering of his trusting employer, a Hudson Valley entrepreneur and small businessman. Theft like the defendant’s is intolerable, and today’s sentencing shows that an employee’s choice to engage in such a crime is a choice to go to prison.”
As set forth in the Complaint and Information in the case, other court filings, and during court proceedings:
During all times relevant to the case, two manufacturing companies were in operation, with plants located in the Town of Poughkeepsie (“Company-1” and “Company-2,” collectively the “Companies”). Company-1 designed and manufactured solar energy products such as solar-powered roof shingles. Company-1’s work included, for example, a solar-powered ring of lights encircling the top of MetLife Stadium, in New Jersey. Company-2 fabricated molded plastic.
The Companies were founded by an entrepreneur (“Victim-1”). Victim-1 was the primary investor in, and owner of, the Companies.
In 2008, Victim-1 hired CINA as a part-time bookkeeper for Company-1. In 2010, CINA became employed full-time for the Companies as comptroller. In his position, CINA was responsible for the day-to-day financial operations of the Companies. CINA had authority to sign checks for the Companies and to carry and use the Companies’ credit cards and ATM cards. CINA remained so employed until August 2015, when he was terminated.
In September 2015, Victim-1 appeared at a New York State Police barracks in Dutchess County. Victim-1 reported, in part and substance, that a former employee of the Companies had stolen company funds. Thereafter, the New York State Police commenced an investigation, which federal law enforcement officers later joined. As summarized in the Complaint, the investigation yielded voluminous evidence showing that CINA had defrauded Victim-1, via the Companies, of millions of dollars over the course of at least seven years. CINA did so by, among other things, using the Companies’ funds for himself to gamble, pay his rent, drive rental cars, dine out, get his car washed, bail out an arrestee, and, in one instance, pay a phone charge for an inmate’s call.
According to, among other things, business and financial records obtained during the criminal investigation, and a forensic report prepared by an accounting firm, CINA made the following disbursements of the Companies’ funds, from 2009 through 2015, which were not authorized, and which had no apparent or recorded business purpose:
- Payments to a mini-mart (approximately $457,000)
- Payments to a gas station (approximately $180,000)
- Payment of CINA’s rent (approximately $25,000)
- Payment of CINA’s personal credit card bills (approximately $125,000)
- Checks payable to CINA (non-payroll) (approximately $599,000)
- Checks payable to cash (approximately $282,000)
- Cash withdrawals (approximately $825,000)
- Additional unauthorized charges (including charges to pharmacies, medical and dental facilities, a rental car company, a car wash facility, an inmate phone service, and for purported loans from family members of CINA)
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In addition to the prison term, CINA, 56, of Poughkeepsie, New York, ordered to pay restitution in the total amount $3,385,665 and forfeiture in the total amount $2,548,820.
Mr. Berman praised the outstanding investigative efforts of the United States Postal Inspection Service, the New York State Police, the Internal Revenue Service, Criminal Investigation, and the Office’s Special Agents. He also thanked the Dutchess County District Attorney’s Office for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Benjamin Allee are in charge of the prosecution.
Former CFO of Vancouver Business Management Company Indicted for Certifying False Financial ReportsRead the Press Release
The former Chief Financial Officer of a Vancouver, Washington business management company was indicted yesterday in connection with his false certifications of the company’s periodic filings with the U.S. Securities and Exchange Commission, announced U.S. Attorney Annette L. Hayes. JAMES DOUGLAS MILLER, 54, of Washougal, Washington, served as the CFO of Barrett Business Services, Inc. (BBSI) from 2008 to 2016. MILLER was fired in 2016 when he disclosed to the company that he had falsified entries in the company’s books to improperly report workers’ compensation expenses as payroll taxes and fees. As a result of MILLER’S accounting improprieties, BBSI underreported approximately $12 million in workman’s compensation expenses in 2013. At the same time as he falsified BBSI’s books and falsely certified the periodic reports filed with the U.S. Securities and Exchange Commission, MILLER profited on BBSI stock, by exercising stock options worth 35,300 shares for $467,261 and selling it for more than $2.4 million.
MILLER is scheduled to appear in U.S. District Court in Tacoma at 2:30 this afternoon.
According to records filed in the case, on four different occasions in 2013 and 2014, MILLER falsely certified periodic reports filed with the SEC. MILLER’s certifications contained a number of false statements, including, among others, statements that BBSI’s periodic reports fairly presented, in all material respects, the results of BBSI’s operations, that BBSI had designed and maintained effective internal controls over its financial reporting to ensure that BBSI’s financial statements complied with generally accepted accounting principles, and that MILLER had reported any fraud, whether or not material, that involved management who had a significant role in BBSI’s internal control over financial reporting. Contrary to his representations, MILLER knew that during each calendar quarter of 2013, he had circumvented BBSI’s internal controls and created a number of accounting entries that improperly classified workers’ compensation expenses as payroll and payroll tax expenses in violation of generally accepted accounting procedures.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The U.S. Securities and Exchange Commission today filed a civil complaint following their separate investigation.
Willful certification of a false periodic report is punishable by up to 20 years in prison and a fine of up to $5,000,000.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorneys Justin Arnold and Francis Franze-Nakamura
Foreign National Sentenced to Two Years in Prison for Conspiring to Bribe a Public OfficialRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Constantin Schiller, 65, of Romania, today to two years in prison for conspiracy to commit bribery, U.S. Attorney McGregor W. Scott announced.
According to court documents, Schiller and co-defendants Anamaria Cruceru, 51, and Marcelle Banaga, 43, also of Romania, were employees of a Romanian company, Polaris M. Holdings, owned and operated by co-defendant Dumitru Martin, 57, of Romania. Between June 2014 and December 2015, the defendants conspired with each other to bribe a high-level United States Air Force contracting officer in an effort to win multiple multimillion-dollar contracts for Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of any contract awarded. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Kogalniceanu Air Base in Romania. The contract was valued at over $10 million. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal various bribe payments totaling just over $1 million. Thereafter, as part of the conspiracy, the defendants caused Polaris to wire $100,000 from Romania to a bank account in the United States as the initial bribe payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement, and there was no contract to be awarded to Polaris.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
On April 6, 2017, Martin was sentenced to 13 years in prison. Banaga and Cruceru have pleaded guilty to conspiracy to commit bribery and are scheduled to be sentenced by Judge Nunley on November 8, 2018, and November 15, 2018, respectively. They each face a maximum statutory penalty of five years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Florida Man Pleads Guilty to Surreptitiously Producing and Distributing Pornographic Audio and Video Recordings of Himself Engaged in Sexual Activity with at Least 80Read the Press Release
A Homestead, Florida man who was charged with surreptitiously producing and distributing pornographic audio and video recordings of himself engaging in sexual activity with multiple men, pleaded guilty today in federal court in Miami.
Bryan Deneumostier, 32, also known by the screen name “susanleon33326,” pleaded guilty to two counts of illegal interception of oral communications.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today. Judge Cecilia M. Altonaga scheduled the sentencing hearing for Nov. 29. Deneumostier was arrested in July 2018 and has been held in custody since then.
According to the indictment to which Deneumostier pleaded guilty and to other facts he admitted in his plea agreement, Deneumostier assisted in the operation of a subscription-based pornography website. The site offered for streaming approximately 619 “hook up” videos that depicted sexual activity between Deneumostier and other men. The defendant had surreptitiously made audio and video recordings of the sexual encounters, without the victims’ knowledge or consent. He later sold the “hook up” videos to a third party located overseas and caused them to be posted onto the website. The indictment and plea agreement refer to three known victims whose identities are being withheld to protect their privacy. Deneumostier admitted that he recorded himself engaging in sexual activity with approximately 150 men that were featured on his website and that approximately 80 of those did not know that he was recording them.
The investigation was conducted by HSI. Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Pleads Guilty to Surreptitiously Producing and Distributing Pornographic Audio and Video Recordings of Himself Engaged in Sexual Activity with at Least 80 OthersRead the Press Release
A Homestead, Florida man who was charged with surreptitiously producing and distributing pornographic audio and video recordings of himself engaging in sexual activity with multiple men, pleaded guilty today in federal court in Miami.
Bryan Deneumostier, 32, also known by the screen name “susanleon33326,” pleaded guilty to two counts of illegal interception of oral communications.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today. Judge Cecilia M. Altonaga scheduled the sentencing hearing for Nov. 29. Deneumostier was arrested in July 2018 and has been held in custody since then.
According to the indictment to which Deneumostier pleaded guilty and to other facts he admitted in his plea agreement, Deneumostier assisted in the operation of a subscription-based pornography website. The site offered for streaming approximately 619 “hook up” videos that depicted sexual activity between Deneumostier and other men. The defendant had surreptitiously made audio and video recordings of the sexual encounters, without the victims’ knowledge or consent. He later sold the “hook up” videos to a third party located overseas and caused them to be posted onto the website. The indictment and plea agreement refer to three known victims whose identities are being withheld to protect their privacy. Deneumostier admitted that he recorded himself engaging in sexual activity with approximately 150 men that were featured on his website and that approximately 80 of those did not know that he was recording them.
The investigation was conducted by HSI. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida are prosecuting the case.
Federal Jury Finds Federal Probationer Guilty of Assaulting Federal OfficersRead the Press Release
St. Louis, MO – After a two-day trial, a federal jury returned a guilty verdict for the United States finding Philandias Samuel Calvin guilty of assaulting federal law enforcement officers as they attempted to arrest him pursuant to two valid arrest warrants.
According to evidence at trial, on December 6, 2017, Calvin was present inside the United States Probation Office located in the Thomas F. Eagleton federal courthouse. Days earlier, two arrest warrants had been issued as a result of Calvin’s continued violations of his federal supervised release. (Calvin had previously been convicted of at least two separate federal crimes and, as part of his sentence following incarceration, Calvin was placed on federal supervised release.)
As two United States Probation Officers and three Deputy United States Marshals informed Calvin of his arrest warrants, Calvin became verbally combative. Calvin then punched one Deputy United States Marshal in the face. Calvin continued to resist arrest as the federal officials attempted to arrest him, injuring two other federal officials.
U. S. Attorney Jeff Jensen applauded the courage, efforts and support of the United States Marshal Service and United States Probation Office that directly resulted in this verdict, “The evidence showed these federal officers and professionals were injured in the course of their duties which included trying to help the Defendant through his court supervision. I am pleased the jury agreed and vindicated their efforts.”
Calvin, 33, St. Louis, MO, was indicted on January 10, 2018 charging him with one felony count of assaulting a federal official engaged in their duties.
He faces up to eight years of imprisonment for the conviction, and a potential fine of $250,000. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
Sentencing has been set for December 20, 2018 before the Honorable Catherine D. Perry.
The case was investigated by the United States Marshal Service with the assistance of the United States Probation Office.
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Federal Indictment Charges Minneapolis Man in Lakeville Gun Store BurglaryRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging PRESLEY AARON PELTIER, 22, with stealing four firearms from a federally licensed firearms dealer. PELTIER, who was arrested on August 17, 2018, made his initial appearance earlier today before Magistrate Judge Becky R. Thorson in U.S. District Court in Saint Paul, Minnesota.
According to the indictment and law enforcement reports, on August 3, 2018, PELTIER and another individual, drove a stolen SUV into the rear entrance of a federally licensed firearms dealer’s storefront in Lakeville, Minnesota, causing significant damage. PELTIER and the other individual stole four firearms from the store, including a Beretta, model 9000S, .40-caliber semiautomatic pistol, a Ruger, model SR45, .45ACP-caliber semiautomatic pistol, a Smith & Wesson, model 5906, nine-millimeter-caliber semiautomatic pistol, and a Ruger, model SR45, .45ACP-caliber semiautomatic pistol, and fled the scene in the stolen SUV. PELTIER and the other individual then abandoned the stolen SUV in a south Minneapolis school parking lot.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lakeville Police Department, and the Minneapolis Police Department. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:
PRESLEY AARON PELTIER, 22
Minneapolis, Minn.
Charges:
- Theft of firearms from a federally licensed dealer, 1 count
- Possession of stolen firearms, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
FCI-Greenville Inmate Pleads Guilty to AssultRead the Press Release
A former inmate at the Federal Correctional Institution in Greenville, Illinois, pled guilty earlier today to assaulting a fellow inmate. Michael Griesinger, 23, admitted striking the victim – identified only as J.B. in court records – with his fists. As a result of the assault, J.B. suffered a broken jaw.
Griesinger’s sentencing is scheduled for December 18, 2018, in East St. Louis, Illinois. He faces up to 10 years on the charge, in addition to the time remaining on his original sentence.
The case was investigated by the Federal Bureau of Prisons’ Special Investigations Section. The case is assigned to Assistant United States Attorney Angela Scott.
Durham Man Arrested for Mailing Bomb Threat HoaxesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that MICHAEL DEXTER BRODIE was arrested today, September 20, 2018.
On September 6, 2018, a federal grand jury sitting in the Eastern District of North Carolina returned an indictment charging BRODIE with two counts of mailing bomb threat hoaxes, in violation of 18 U.S.C. § 844(e). As stated in open court during the initial appearance, the alleged conduct includes bomb threats received by government offices in the Raleigh area, resulting in multiple evacuations. If convicted, BRODIE would face as to each charge a maximum term of 10 years’ imprisonment, a $250,000 fine, and a term of up to three years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case is being conducted by the United States Postal Inspection Service and Raleigh Police Department, with assistance by the Federal Bureau of Investigation.
Dubai Man Indicted for Credit Card Fraud and Aggravated Identity Theft ConspiracyRead the Press Release
NEWARK, N.J. – A Dubai man was indicted today for his alleged participation in a long-running credit card fraud and aggravated identity theft conspiracy, U.S. Attorney Craig Carpenito announced.
Olusegun Akinlade, a/k/a “Shadow Walker,” 29, of Dubai, United Arab Emirates, is charged by indictment with one count of bank fraud conspiracy and one count of aggravated identity theft.
According to the indictment:
From October 2015 to January 2018, Akinlade, Henry Abdul, a conspirator who pleaded guilty in August 2018 to his role in the scheme, and others participated in a conspiracy to obtain control of and use credit card accounts of others through a fraudulent scheme commonly referred to as a “credit card takeover.” As part of the scheme, a person who is not the account owner or authorized user of a credit card account contacts the financial institution and poses as the account owner in order to change the personal information associated with the account to information familiar to the unauthorized user. This may include the residence, email address, or telephone number associated with the account. These changes to the account are designed to give the unauthorized user control of the account without the actual account owners’ knowledge or authorization, and may permit the unauthorized user to receive new credit cards associated with the compromised accounts. Once in control of the account, the unauthorized users make purchases, transfer funds to other accounts under their control, or sell the account information to third parties.
Akinlade and his conspirators allegedly purchased the victim account holders’ personal identifying information from hackers located outside of the United States. They then used the stolen information when contacting victim banks to carry out the account takeovers, or to open new accounts. Akinlade, who was in Dubai during the scheme, received from Abdul and other conspirators merchandise that they had purchased with the compromised credit card accounts, and a percentage of any profits the conspirators made selling such merchandise.
The bank fraud conspiracy charge carries a maximum potential penalty of up to 30 years in prison and a fine of up to $1 million. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must run consecutive to any other term of imprisonment imposed by the Court.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, special agents with U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.