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17 September 2018
Three Area Postal Service Employees Indicted Separately for Violations Including Misappropriation of Postal Funds, Theft of Mail, and/or Delay or Destruction of MailRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced Friday, September 14, 2018 three indictments of United States Postal Service employees. JACQUELINE M. BATISTE, a/k/a/ JACQUELINE BATISTE FRANCOIS (“BATISTE”), age 47, of Harvey, Louisiana, was indicted for Misappropriation of Postal Funds. BRIA DAVIS (“DAVIS”), age 25, of New Orleans, Louisiana, was indicted for Theft of Mail and Delay or Destruction of Mail. COURTNEY C. DUPLESSIS (“DUPLESSIS”), age 30, of New Orleans, Louisiana, was indicted for Theft of Mail and Delay or Destruction of Mail.
According to the first indictment, BATISTE was employed by the United States Postal Service as a City Letter Carrier/Supervisor at the New Orleans Bywater Station Post Office. One of BATISTE’s responsibilities was to prepare and dispatch the Bywater Station Post Office’s daily remittances for deposit with the New Orleans Process and Delivery Center Registry Section. After an investigation by the Office of Inspector General for the U.S. Postal Service (“Postal agents”), it was determined that BATISTE stole approximately $1,214.00 from the Bywater Station Post Office.
According to the second indictment, DAVIS was a U.S. Postal Service Postal Support Employee/Sales Distribution Clerk at the Slidell Post Office, and worked at the retail window counter and performed a variety of tasks including Postal sales, delivering mail to customer P.O. Boxes, and assisting customers with P.O. Box related business. After an investigation by the Office of Inspector General for the U.S. Postal Service, it was determined that on various dates from September 2016 to January 2017, DAVIS stole several pieces of mail containing checkbooks, gift cards, cash, and checks. Postal agents also discovered approximately ten additional articles of stolen mail in DAVIS’s personal vehicle.
According to the third indictment, DUPLESSIS was employed by the United States Postal Service as a Letter Carrier originally assigned to the Carrolton Station Post Office and then to the Elmwood Station Post Office. After an investigation by the Office of Inspector General for the U.S. Postal Service, it was determined that on various dates from October 2017 to June 2018, DUPLESSIS stole several pieces of mail containing gift cards and cash. Postal agents also discovered approximately 54 articles of stolen mail in DUPLESSIS's personal vehicle.
“The indictments obtained are a reflection of the hard work of our special agents who vigorously investigated these theft schemes and should serve as a deterrent for those that abuse the position entrusted in them,” said U.S. Postal Service Office of Inspector General Special Agent in Charge Christopher Cave, Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations. Our agency will remain vigilant in enforcing these types of crimes.”
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of each defendant must be proven beyond a reasonable doubt.
If convicted, BATISTE faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine. DAVIS and DUPLESSIS face a maximum penalty of five (5) years imprisonment as to each count, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
These cases were all investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). Additionally, the Slidell Police Department assisted the USPS-OIG in the DAVIS matter. The prosecution of all three of these cases is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
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Terminix Virgin Islands Branch Manager Pleads Guilty to Four Counts of Illegally Applying Restricted-Use Pesticide to Multiple Residences in the U.S. Virgin IslandsRead the Press Release
Jose Rivera, 58, former Branch Manager of TERMINIX INTERNATIONAL USVI, LLC (TERMINIX USVI), pleaded guilty today to four counts of an indictment charging violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a family of four fell seriously ill in 2015, after the unit below them was fumigated, United States Attorney Gretchen C.F. Shappert announced today.
According to the plea agreement, defendant Rivera was certified as a pesticide applicator by the Virgin Islands Department of Planning and Natural Resources and received pesticide applicator training from the University of the Virgin Islands. Based on his training, the defendant knew that he was required to read the pesticide label and follow all instructions when using any pesticide. In short, the defendant was instructed that federal law requires applicators to follow the pesticide use instructions on the label. The label on methyl bromide states that its use is restricted to the location and manner on the label, and the label does not authorize application of methyl bromide in a residential unit. Rivera applied methyl bromide, a registered restricted-use pesticide, in a manner inconsistent with the use instructions on the label at the residences named in the counts of conviction.
"This prosecution demonstrates the importance of complying with environmental laws and regulations," said United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands. "Tragically, the defendant’s failure to do what was required of him resulted in catastrophic injuries to the victims and exposed many others to similar harm. Here in the Virgin Islands, the United States Attorney’s Office is committed to the enforcement of environmental laws. We will take all necessary steps to hold those who violate these laws criminally accountable and to protect residents and visitors of the Virgin Islands."
In 1984, EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they must only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. These pesticides can be very toxic, and it is critically important that they be used only as approved by EPA.
After the government began its investigation, TERMINIX LP voluntarily ceased its use of methyl bromide in the U.S. and in U.S. territories, except for one remaining supervised government contract.
On March 23, 2017, the companies TERMINIX LP and TERMINIX, USVI, Rivera’s employer, pleaded guilty and were sentenced on four counts charging violations of FIFRA. The companies paid a total of approximately $10 million in criminal fines, community service, and restitution payments. In addition, TERMINIX LP has discontinued using pesticides containing methyl bromide in the United States and U.S. Territories.
EPA worked cooperatively with the Agency for Toxic Substances and Disease Registry and the Department of Justice in its investigation. U.S. Attorney Shappert expressed appreciation to Assistant United States Attorney Kim Chisholm and Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section who prosecuted the case with the assistance of Patricia Hick, EPA Region II Regional Criminal Enforcement Counsel.
Terminix Virgin Islands Branch Manager Pleads Guilty to Four Counts of Illegally Applying Restricted-Use Pesticide to Multiple Residences in the U.S. Virgin IslandsRead the Press Release
Jose Rivera, 58, former Branch Manager of TERMINIX INTERNATIONAL USVI LLC (TERMINIX USVI), pleaded guilty today to four counts of an indictment charging violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) for illegally applying fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a family of four fell seriously ill in 2015, after the unit below them was fumigated, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
According to the plea agreement, defendant Rivera was certified as a pesticide applicator by the Virgin Islands Department of Planning and Natural Resources and received pesticide applicator training from the University of the Virgin Islands. Based on his training, the defendant knew that he was required to read the pesticide label and follow all instructions when using any pesticide. In short, the defendant was instructed that federal law requires applicators to follow the pesticide use instructions on the label. The label on methyl bromide states that its use is restricted to the location and manner on the label, and the label does not authorize application of methyl bromide in a residential unit. Rivera applied methyl bromide, a registered restricted-use pesticide, in a manner inconsistent with the use instructions on the label at the residences named in the counts of conviction.
“Toxic pesticides can have devastating human health consequences, and that’s why those who are certified to apply them must do so responsibly and lawfully,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The facts in this case show that the defendant, despite his training and experience, knowingly applied the pesticide methyl bromide in an illegal and unsafe manner, which tragically exposed a family of four to profoundly debilitating injuries.”
“This prosecution demonstrates the importance of complying with environmental laws and regulations,” said United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands. “Tragically, the defendant’s failure to do what was required of him resulted in catastrophic injuries to the victims and exposed many others to similar harm. Here in the Virgin Islands, the United States Attorney’s Office is committed to the enforcement of environmental laws. We will take all necessary steps to hold those who violate these laws criminally accountable and to protect residents and visitors of the Virgin Islands.”
“When you break a law that protects public health, there are real victims and real consequences, as this case tragically shows,” said Assistant Administrator Susan Bodine for Enforcement and Compliance Assurance at EPA. “This incident illustrates how important it is for EPA to enforce environmental laws and hold violators accountable for endangering human health and the environment. Today’s guilty plea should send a clear message to those entrusted with handling dangerous chemicals to take necessary steps to ensure this can’t happen again.”
In 1984, EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they must only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. These pesticides can be very toxic, and it is critically important that they be used only as approved by EPA.
After the government began its investigation, TERMINIX LP voluntarily ceased its use of methyl bromide in the U.S. and in U.S. territories, except for one remaining supervised government contract.
On March 23, 2017, the companies TERMINIX LP and TERMINIX, USVI, Rivera’s employer, pleaded guilty and were sentenced on four counts charging violations of FIFRA. The companies paid a total of approximately $10 million in criminal fines, community service, and restitution payments. In addition, TERMINIX LP has discontinued using pesticides containing methyl bromide in the United States and U.S. Territories.
EPA worked cooperatively with the Agency for Toxic Substances and Disease Registry and the Department of Justice in its investigation. Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm of the District of the Virgin Islands prosecuted the case with the assistance of Patricia Hick, EPA Region II Regional Criminal Enforcement Counsel.
For more information about EPA’s pesticide program and its requirements, visit www.epa.gov/pesticides/.
Stamford Man Guilty of Federal Offenses in Connection with Surgical Glove Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal jury in Bridgeport today found THOMAS J. CONNERTON, 66, of Stamford, guilty of numerous offenses stemming from an investment scheme that defrauded individuals, including several women he met on a dating website, of more than $2 million.
The trial before U.S. District Judge Stefan R. Underhill began on August 28.
According to the evidence presented during the trial, CONNERTON was the founder, president, and CEO of Safety Technologies, LLC (“Safety Tech”), a Connecticut company that had its principal place of business at various times in Simsbury, Madison, Westport and Stamford. Safety Tech was founded in 2006, purportedly for the purpose of developing and commercializing what was represented to be a highly durable puncture and cut resistant material that was to be used in the surgical glove market and other related markets. Safety Tech has not yet obtained any patents from the U.S. Patent and Trademark Office, and CONNERTON did not register Safety Tech’s securities with the U.S. Securities and Exchange Commission (“SEC”).
Beginning in approximately June 2009, CONNERTON induced victim-investors to provide him funds and to purchase Safety Tech securities by falsely representing that the valuation of Safety Tech was realistically in the tens or hundreds of millions of dollars, that a lucrative deal to sell or license his glove technology was imminent, and that he would use their funds for research and development, product testing, and to bring the product to market. CONNERTON offered his investors small amounts of equity in Safety Tech through “Subscription Agreements” or investments contracts through which he sold what he described as “Units.”
Several of the victim-investors were women who were drawn into the scheme after CONNERTON met them on a popular dating website.
CONNERTON made numerous other false representations to victim-investors, including stating in September 2015, “I will go on the record to state that there is not a single investor that will lose one dollar invested in Safety Technologies.”
Even though CONNERTON represented to victim-investors and potential victim-investors that the funds they invested would be used to fund research and development, for product testing, for business expenses and for legal fees, he used invested funds to pay personal expenses including, on two separate occasions, to purchase two diamond engagement rings from Tiffany & Co. CONNERTON also used funds to repay loans to an earlier investor.
Through this scheme, CONNERTON defrauded more than 50 victim-investors of more than $2.2 million.
The investigation also revealed that CONNERTON engaged in monetary transactions in an attempt to conceal from the FBI and the SEC the nature and source of funds received by Safety Tech from the sale of Safety Tech securities. CONNERTON negotiated checks and purchased bank checks in order to move the fraudulent proceeds from one account to another.
The investigation further revealed that CONNERTON willfully failed to pay $293,033 in federal income taxes between 2003 and 2015.
The jury found CONNERTON guilty of 12 counts of wire fraud, one count of mail fraud and 16 counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. CONNERTON also was found guilty of four counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.
The government is seeking full restitution for the victim-investors and forfeiture of the two engagement rings that CONNERTON purchased with proceeds of the fraud scheme. CONNERTON also owes more than $490,000 in back taxes, interest and penalties.
A sentencing date is not scheduled.
CONNERTON has been detained since his arrest on March 9, 2017.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division.
U.S. Attorney Durham also acknowledged the important assistance of the Securities and Exchange Commission.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Lauren C. Clark.
Springfield Man Sentenced for Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for distributing crack cocaine.
Kayvon Lovejoy, 26, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 17 months in prison and six years of supervised release. In May 2018, Lovejoy pleaded guilty to two counts of distribution of crack cocaine. Lovejoy was arrested in February 2018 and has been in custody since.
Lovejoy distributed crack cocaine on Aug. 9, 2017, and Aug. 15, 2017. On each occasion, Lovejoy sold approximately two grams of crack cocaine for $160 to a government witness.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Shrewsbury Man Arraigned on Federal Gun Charges Involving Unlawful Possession of Machine GunRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Frank Weir, 56, of Shrewsbury, appeared in federal court today for an arraignment on a two-count indictment charging him with possessing a machine gun without a permit in February 2016. According to the government’s allegation, the firearm in question was a Thompson U.S. Navy 1928 submachine gun, .45 caliber (manufactured by Colt). The second charge alleges that this same firearm had an obliterated serial number.
Weir pleaded not guilty in federal court today before Magistrate Judge John M. Conroy, who ordered that Weir be held in the custody of the U.S. Marshals Service until trial. Until recently, Weir was in the custody of the State of Vermont pursuant to the State’s second-degree murder charge against Weir for the shooting death of Donna Marzilli on February 15, 2016. The machine gun at issue in this federal case is not alleged to be related to the State’s murder charge.
Pursuant to a plea agreement between Weir and the State of Vermont filed today, the State of Vermont dismissed, without prejudice, its charge against Weir to permit the federal charges to proceed first. Under the State plea agreement, it is contemplated that Weir will first resolve the federal case and the State will then refile its Second Degree Murder charge.
The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty. Under the National Firearms Act, a person may not possess a machine gun unless it is registered to that person in the National Firearms Registration and Transfer Record. A violation carries a maximum penalty of ten years. Under the Gun Control Act, it is unlawful to possess a firearm with an obliterated serial number. This offense carries a maximum sentence of five years. If Weir is convicted, the Court would determine the actual sentence after consideration of the advisory sentencing guidelines.
This case is being investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Vermont State Police. The United States is represented by Assistant U.S. Attorney Joe Perella and Frank Weir is represented by Peter Langrock, Esq. of Middlebury.
Sarasota Felon Pleads Guilty to Largest Explosives Seizure in FloridaRead the Press Release
Tampa, Florida – Marc Jason Levene (57, Sarasota) has pleaded guilty to two counts of possession of explosives by a convicted felon. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing has been set for December 12, 2018.
According to the plea agreement, in 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Levene for selling explosives without a federal license or permit. Based on Levene’s multiple prior felony drug convictions, he was prohibited from possessing or selling any explosive materials. In January 2016, the ATF and the Sarasota County Sheriff’s Office seized various explosive fuses from a shed behind Levene’s home in Sarasota.
In late 2017, ATF learned that Levene was selling explosive fuses online, notwithstanding the prior seizure and prohibition. The ATF initiated an undercover investigation that confirmed Levene was selling the fuses online through a website called ThePyroPro.com. Agents also learned that Levene was maintaining a storage unit at a self-storage facility in Sarasota. An explosives detection K-9 alerted to the presence of explosives in the storage unit.
In February 2018, special agents and explosives specialists with ATF, bomb technicians and detectives with the Sarasota County Sheriff’s Office, and hazardous devices technicians with the Bureau of Fire, Arson and Explosives Investigations executed multiple search warrants at Levene’s residence and his storage unit. During the searches, law enforcement personnel seized thousands of pounds of explosive fuses and hundreds of rounds of ammunition. In total, during this investigation, the ATF, Sarasota County Sheriff’s Office, and the Bureau of Fire, Arson and Explosives Investigations seized approximately 7,733 pounds of explosive fuses from Levene.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota County Sheriff’s Office, and the Bureau of Fire, Arson and Explosives Investigations. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
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.
Salem County, New Jersey, Man Admits Dealing Guns Without A LicenseRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man with a previous felony record today admitted illegally possessing guns and selling guns without a license, U.S. Attorney Craig Carpenito announced.
Corey Moore, 32, of Salem, pleaded guilty before U.S. district Judge Noel L. Hillman in Camden federal court to two counts of an indictment charging him with dealing in firearms without a license and unlawfully possessing firearms after having been convicted of a felony offense.
According to documents filed in this case and statements made in court:
From July 20, 2016, through Dec. 20, 2016, Moore sold firearms. On Oct. 24, 2016, Moore sold two loaded firearms – an Intratec, Model AB10, 9 millimeter Luger pistol, and a Smith & Wesson, Model 642 (marked LadySmith), .38 caliber revolver – to a man who was a confidential informant working with federal law enforcement officers. Moore, who did not have a license, sold the firearms to the informant at a convenience store in Logan Township, New Jersey. He also unlawfully possessed two additional loaded firearms: an Iberia Firearms Inc. (Hi-Point), Model JCP, .40 caliber pistol, and a Ruger, Model Security-Six, .357 magnum caliber revolver. Both of those firearms were fully operable and had been transported in interstate commerce prior to Moore’s possession of them.
Moore faces a maximum potential term of imprisonment of up to five years in prison for on the count of dealing in firearms without a license, and up to 10 years in prison on the count of being a felon in possession of a weapon. He also faces a fine of up to $250,000. Sentencing is scheduled for Jan. 4, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of John B. Devito, with the investigation.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the Criminal Division in Camden.
Defense counsel: Anne C. Singer Esq., Haddonfield, New Jersey
Rhode Island Woman Convicted at Trial Following Her Involvement in International Lottery Fraud SchemeRead the Press Release
On Sept. 14, a federal jury in North Dakota convicted a Providence, Rhode Island woman after a week-long trial, on all 15 counts for her participation in a Jamaican lottery fraud scheme, which has affected about 100 identified victims with reported losses totaling more than $6.7 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Christopher Myers of the District of North Dakota, and Special Agent in Charge Jill Sanborn of FBI Minneapolis Division, made the announcement.
Melinda Bulgin, 28, was convicted on conspiracy and substantive mail fraud and wire fraud charges, as well as one count of money laundering conspiracy. According to the evidence presented at trial, Bulgin worked with members of a Jamaican lottery fraud conspiracy in the United States and Jamaica, and had multiple roles in the scheme. The scheme’s conspirators located in Jamaica purchased lists containing information about U.S. citizens, and contacted them over the phone. They told victims they had won large cash prizes and cars, but would need to pay taxes and fees in order to receive the prize. The scammers deliberately targeted victims over the age of 55. Victims were first courted with the lure of prizes, and additional scam callers would then also identify themselves as FBI, IRS or other trusted authorities that falsely confirmed that the prize winnings were real. Some victims lost their savings, their life insurance and their homes before running out of money and turning to public or family assistance. Victims lost anywhere from $200 to more than $100,000.
Evidence presented at trial further showed that Bulgin participated in the scheme via several roles - by buying the names of future victims to call, by collecting checks and cash from victims at her home address, and via wire transfers victims sent to her bank accounts. She also sent fraudulent mailings, such as letters and photos of the fake checks, to victims to convince them of their prize. She was caught while carrying $14,800 to Jamaica to share with her conspirators, money from an elderly woman in Arizona, who testified that she wired the money to Bulgin as advance fees for a large prize she had been told she won.
“Melinda Bulgin and her coconspirators deliberately targeted senior citizens as part of a lottery fraud scheme that affected dozens of victims, some of whom lost their life savings, life insurance, and even their homes,” said Assistant Attorney General Benczkowski. “The conviction in this case is the result of the hard work and determination of our domestic and foreign law enforcement partners, along with the prosecutors in the District of North Dakota and Criminal Division—and it demonstrates our firm commitment to stopping those who exploit senior citizens and other vulnerable populations.”
“This case involves a unique kind of victimization,” said U.S. Attorney Myers. “It is an assault of victims’ trust and dreams, in addition to their pocket books. Victims are targeted because their age or personal circumstances make them particularly vulnerable; the resulting harm is financial, psychological, and physical. Until recently, these scammers operated with impunity. We are helping to find them and hold them accountable for their crimes.”
“The bedrock of the FBI lies in protecting our most vulnerable, including older Americans who often find themselves on fixed incomes and tight budgets,” said FBI Special Agent in Charge Sanborn. “While nothing can fully replace the victimization felt by those who fell prey to this scheme, we hope that this conviction ensures the defendants will never be able to harm anyone again. I’m grateful to all of our law enforcement partners who worked beyond borders to ensure the defendants could not hide and that justice was done.”
The government’s case included testimony by an FBI case agent who traced victim money from around the country to Bulgin, several American and Jamaican cooperators, one of whom was extradited from Jamaica, multiple banks, Fedex, and remitters such as Western Union. A Jamaican law officer who questioned Bulgin when she landed in Jamaica from the United States with $14,800 in cash also testified at trial. In addition, multiple victims testified to the financial devastation, fear and emotional toll caused by the scammers; several victims who testified had sent money directly to Bulgin, via cash, check or wire, totaling over $100,000.
In addition to Bulgin, 14 other defendants from Jamaica and the United States were charged in the same indictment, many of whom have pleaded guilty. The FBI led investigation of Bulgin and others has led to the successful prosecution of more than 30 defendants in related cases and the extradition of 14 Jamaican nationals.
U.S. v. Melinda Bulgin, et al. arises from the investigation of Sanjay Williams, Lavrick Willocks and others who led and operated criminal advance fee lottery telemarketing fraud organizations, with operations in the United States, Jamaica, Canada, United Kingdom, Israel, Costa Rica and elsewhere. The Jamaican lottery fraud scheme is listed in the United States as a Top International Criminal Organization Target (TICOT). Nationwide, the number of Jamaican Lottery Fraud victims is in the millions, with some estimates of annual losses in excess of $1 billion. The lottery scam victims in the United States are not the only victims of Melinda Bulgin’s crimes. Top Jamaican law enforcement officials emphasize that lottery scamming has directly led to a dramatic increase in violent crime – including murder, shootings, and extortion - in Jamaica, as rival scammers battle one another over the names of potential victims and profits.
The FBI, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and a host of state and local authorities throughout the United States, along with foreign enforcement authorities, including Jamaican Constabulary Force (JCF) Major Organised Crime and Anti-Corruption Agency (MOCA) and Jamaican Operations Linked to Telemarketing (JOLT) task force, have assisted in the investigation and the extradition of the defendants in the indictment. The Justice Department’s Office of International Affairs provided significant assistance in the extraditions. Trial Attorney Leila E. Babaeva of the Criminal Division Fraud Section, and Assistant U.S. Attorneys Clare Hochhalter, James Patrick Thomas, Nick Chase and Jonathan O’Konek of the District of North Dakota are prosecuting the case.
Portland Marijuana Business Owner Receives Federal Prison Sentence for Tax CrimesRead the Press Release
PORTLAND, Ore. – Matthew Price, 32, of Portland, was sentenced today to seven months in federal prison and ordered to pay more than $262,000 for willfully failing to file federal income tax returns in four consecutive years.
“Matthew Price attempted to live a double life—advising OLCC officials on how to regulate state-legal marijuana sales, while privately evading his personal and business tax obligations,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Marijuana businesses and business owners are subject to the same federal tax laws as every other business and will be scrutinized for criminal wrongdoing. Tax cheaters will not be tolerated in any industry.”
According to court documents, in 2010, Price, then 25 years old, came to Portland with the financial backing of a business partner in Colorado to start a state-legal marijuana business in anticipation of Oregon’s full retail legalization. Price had previously been working in a marijuana store in Colorado owned by his business partner. In December 2010, Price began operating a marijuana farmers market in Portland called Cannabliss. In mid-2013, Price and his business partner converted the business to a medical marijuana dispensary. In 2014, the pair opened two additional Cannabliss dispensaries, a second in Portland and one in Eugene, Oregon.
Price failed to file personal income tax returns in four consecutive years between 2011 and 2014, despite retaining the services of three different certified public accountants. Price’s taxable income steadily grew from $42,000 in 2011 to $590,000 in 2014. In 2015, Price was a member of the Oregon Liquor Control Commission’s (OLCC) Recreational Marijuana Technical Advisory Retail Subcommittee. In this capacity, Price, with other retailers, advised the OLCC in its rulemaking process for Oregon Measure 91, the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act.
Price previously pleaded guilty to four counts of willfully failing to file personal income tax returns in violation of 26 U.S.C. § 7203 on May 31, 2018. Upon completion of his prison sentence, Price will be on supervised release for three years with six months of home detention.
The IRS Criminal Investigations investigated this case. It was prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Pennsylvania Nurse Anesthetist Pleads Guilty to Tax EvasionRead the Press Release
PITTSBURGH, PA - A Penn Hills, Pennsylvania resident pleaded guilty in federal court to two counts of income tax evasion, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to documents and information provided to the court, Loren Pulliam, 53, a certified registered nurse anesthetist, pleaded guilty to one count of evasion of payment and one count of evasion of assessment. Between 2002 and 2005, Pulliam earned over $500,000 in income, and over $1.2 million in additional income between 2008 and 2016, working as a nurse anesthetist at medical facilities in the Pittsburgh area. In 2008, the U.S. Tax Court entered an order against Pulliam finding over $280,000 in tax and penalties due and owing for tax years 2002 through 2005. Pulliam evaded these tax liabilities by establishing a nominee entity called LJP Enterprises in 2006, directing her employers to pay compensation to a bank account for that entity, and then using the LJP Enterprises bank account to pay personal expenses. These actions also prevented the Internal Revenue Service (IRS) from assessing the amount of Pulliam’s tax liability for tax years 2011 through 2014. The total tax loss resulting from Pulliam’s conduct for tax years 2002 through 2006 and 2008 through 2014 is approximately $766,624.67.
Senior United States District Judge Donetta W. Ambrose scheduled sentencing for January 8, 2019, at 10:30 a.m. Pulliam faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady thanked agents of IRS – Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Brittney N. Campbell and Assistant U.S. Attorney Adam N. Hallowell, who are prosecuting the case.
Pennsylvania Nurse Anesthetist Pleads Guilty to Tax EvasionRead the Press Release
A Penn Hills, Pennsylvania resident pleaded guilty in federal court to two counts of income tax evasion, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to documents and information provided to the court, Loren Pulliam, 53, a certified registered nurse anesthetist, pleaded guilty to one count of evasion of payment and one count of evasion of assessment. Between 2002 and 2005, Pulliam earned over $500,000 in income, and over $1.2 million in additional income between 2008 and 2016, working as a nurse anesthetist at medical facilities in the Pittsburgh area. In 2008, the U.S. Tax Court entered an order against Pulliam finding over $280,000 in tax and penalties due and owing for tax years 2002 through 2005. Pulliam evaded these tax liabilities by establishing a nominee entity called LJP Enterprises in 2006, directing her employers to pay compensation to a bank account for that entity, and then using the LJP Enterprises bank account to pay personal expenses. These actions also prevented the Internal Revenue Service (IRS) from assessing the amount of Pulliam’s tax liability for tax years 2011 through 2014. The total tax loss resulting from Pulliam’s conduct for tax years 2002 through 2006 and 2008 through 2014 is approximately $766,624.67.
Senior United States District Judge Donetta W. Ambrose scheduled sentencing for January 8, 2019. Pulliam faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady thanked agents of IRS – Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Brittney N. Campbell and Assistant U.S. Attorney Adam N. Hallowell, who are prosecuting the case.
Peekskill Narcotics Trafficker Sentenced in White Plains Federal Court to 135 Months in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Donald Halmy, the Chief of the Peekskill Police Department, announced that EDWARD HOLLIMAN was sentenced to 135 months in prison for conspiring to distribute crack cocaine in Peekskill, New York, between 2013 and 2017. Holliman pled guilty on April 24, 2018, before U.S. District Court Judge Cathy Seibel, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Edward Holliman used a housing project in Peekskill as his personal market, peddling his drugs with no regard to their addictive destruction. Thanks to the coordinated efforts of the FBI and the Peekskill Police Department, Holliman’s marketplace is closed for good.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The malignant creep of illegal drugs and violence into the once peaceful suburbs is a major focus of our FBI Westchester County Safe Streets Task Force. Our goal is to build strong and lasting partnerships with local law enforcement agencies like Peekskill Police to be a force multiplier, stopping the dealers and pushers from further infecting the community.”
Peekskill Police Chief Donald Halmy said: “Edward Holliman has been a persistent threat to the public safety of Peekskill residents and a major distributor of crack cocaine in Bohlmann Towers for the past 15 years. His arrest and successful prosecution will surely serve to improve the quality of life of residents of the building. I’d like to praise the City of Peekskill detective division, FBI Safe Streets Task Force and the Office of the United States Attorney for their tireless efforts in this investigation.”
According court filings and statements made at public court proceedings:
Over the course of many years, HOLLIMAN supplied and distributed crack cocaine in and around Bohlmann Towers, a large housing project in Peekskill, New York. To facilitate his narcotics distribution business, HOLLIMAN had several “workers,” co-conspirators whom Holliman managed and supervised, and who distributed crack cocaine that HOLLIMAN supplied to them to users. HOLLIMAN used his mother’s apartment in Bohlmann Towers to store crack cocaine. During the execution of a search warrant at that apartment on the day of HOLLIMAN’s arrest in October 2017, law enforcement recovered more than 50 grams of cocaine belonging to HOLLIMAN. Between 2013 and 2017, HOLLIMAN sold and distributed between 2.8 and 8.4 kilograms of crack cocaine as part of the charged conspiracy.
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In addition to the prison term, HOLLIMAN, 63, of Peekskill, New York, was sentenced to five years of supervised release and ordered to pay forfeiture in the amount of $30,000.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the Peekskill Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Olga I. Zverovich is in charge of the prosecution.
Oregon Military Department Employee Charged with Wire Fraud and Making False StatementsRead the Press Release
PORTLAND, Ore. – Dominic Caputo, 46, of Clackamas County, Oregon, was indicted today on allegations that, as a civilian program manager for the Oregon National Guard Oregon Sustainment Maintenance Site (OSMS), he submitted false reimbursement requests to the U.S. Army Communications-Electronics Command (CECOM) and misrepresented the operational status of equipment used to maintain a war-ready posture.
The court unsealed a five-count indictment alleging Caputo falsely certified that the refurbishment of equipment was complete or in-process. Caputo’s certifications prompted CECOM to remit payment for more than 1,300 pieces of equipment at a cost of more than $6 million to OSMS with the expectation the equipment was ready to be shipped to other military installations and put back into service, when it was not.
Caputo faces four counts of wire fraud, and one count of false statements in a document.
Caputo made his initial appearance in federal court today before U.S Magistrate Judge Beckerman and was released pending trial. A 7-day jury trial is scheduled for November 20, 2018 before U.S. District Court Judge Anna J. Brown.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Okemah Man Pleads Guilty to False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Paul Buie, age 57, of Okemah, Oklahoma, entered a guilty plea to False Statement Or Fraud To Obtain Federal Employees’ Compensation, in violation of Title 18, United States Code, Section 1920, punishable by up to 5 years imprisonment, up to a $250,000.00 fine or both.
The Information alleged that beginning in or about September 2015 and continuing through May 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, knowingly and with intent to defraud, did willfully falsify, conceal and cover up a material fact, to-wit: his true medical condition and that he was physically capable to perform work, such concealed fact caused the payment of federal employees compensation in excess of $1,000.00.
The charges arose from an investigation by the Department of the Army U.S. Army Corp. of Engineers.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Christopher Wilson represented the United States.
Okemah Man Pleads Guilty to Aggravated Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Johnny Wayne Harjo Jr., age 41, of Okemah, Oklahoma, entered a guilty plea to Aggravated Sexual Abuse, in violation of Title 18, United States Code, Sections 1153, 2241(a) and 2246, punishable by a term of imprisonment of any number of years up to life, a fine of up to $250,000.00, or both; and to Sexual Abuse Of A Minor, in violation of Title 18, United States Code, Sections 1153, 2243(a) and 2246, punishable by up to 15 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about January 25, 2018, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly cause and attempt to cause the victim to engage in and attempt to engage in a sexual act as defined in Title 18, United States Code, Section 2246, to wit, the penetration, however slight, of the genital opening of the victim by a hand or finger and the intentional touching, not through the clothing, of the genitalia of the victim, a person who has not attained the age of 16 years, with an intent to arouse or gratify the sexual desire of any person, accomplished by the use of force against the victim.
The Indictment further alleged that on or about January 25, 2018, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly engage and attempt to engage in a sexual act as defined in Title 18, United States Code, Section 2246 with the victim, a person who had attained the age of 12 years but had not attained the age of 16 years and was at least four years younger than the defendant, to-wit, the penetration, however slight, of the genital opening of the victim by a hand or finger and the intentional touching, not through the clothing, of the genitalia of the victim, a person who has not attained the age of 16 years, with an intent to arouse or gratify the sexual desire of any person.The charges arose from an investigation by the Creek Nation Lighthorse Police and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Ohio physician sentenced to nearly five years for fraudulently distributing controlled substancesRead the Press Release
WHEELING, WEST VIRGINIA – Dr. Tod Hagins, of Wintersville, Ohio, was sentenced today to 57 months incarceration for writing fraudulent prescriptions to be sold on the streets from his Weirton, West Virginia practice, United States Attorney Bill Powell announced.
“This case should send a clear message to all those who practice medicine that neither their medical license nor their white lab coat will protect them from enormous consequences of illegal drug distribution and medical fraud. This doctor violated both our laws and his solemn oath as a physician. He will now pay for those violations.” said Powell.
Hagins, age 52, pled guilty to one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” one count of “Healthcare Fraud,” and one count of “Money Laundering” in April 2018.
Hagins operated a general medical practice, as well as the Weirton Suboxone Clinic, on Washington Street in Weirton, West Virginia. Hagins admitted to prescribing oxycodone to several individuals without a legitimate medical purpose to be sold on the streets for a share in the profits. Hagins also admitted to writing the prescriptions for oxycodone in a manner that would allow the individual filling said prescriptions to be paid for by West Virginia Medicaid. As a part of the conspiracy, Hagins deposited $4,000 into a business equity line of credit to be used in the scheme, with the intention of concealing the criminal activity.
Hagans was also ordered to pay $130,160 in a money judgement, and pay $809.62 in restitution.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Federal Bureau of Investigation; the Office of the Inspector General at the U.S. Department of Health and Human Services; the West Virginia Offices of the Insurance Commissioner Fraud Division; the West Virginia Medicaid Fraud Control Unit; the Office of Ohio Attorney General Health Care Fraud Unit; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Jefferson County, Ohio Drug & Violent Crimes Task Force; and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Oakland, California Man Sentenced for Credit Union FraudRead the Press Release
United States Attorney Joe Kelly announced today that on September 14, 2018, United States District Court Judge Robert F. Rossiter, Jr., sentenced Sherman Clemons, age 36, of Oakland, California, for his conviction for Credit Union Fraud. Clemons was sentenced to twenty-four months’ imprisonment, a five-year term of supervised release, and ordered to pay restitution in the amount of $33,000.
Clemons and others unjustly enriched themselves by obtaining cash advances from various financial institutions in Nebraska and Kansas through the use of insufficiently funded Visa prepaid debit cards and counterfeit identification documents. As a result of the defendant’s fraudulent scheme, various financial institutions, including Centris Credit Union in Bellevue, Nebraska, suffered losses of approximately $33,000.
This case was investigated by Bellevue Police Department.
North Dakota U.S. Attorney’s Office Continues Attack on Transnational Criminal Organizations in ‘Operation Hard Copy’Read the Press Release
Melinda Bulgin found Guilty on all Fifteen Counts of Transnational Crime including Fraud and Conspiracy to Commit International Money Laundering
BISMARCK – Melinda Bulgin, of Providence, Rhode Island, was found guilty on September 14, 2018, by a federal jury on all 15 counts of Conspiracy to Commit Wire Fraud or Mail Fraud, Wire Fraud, Mail Fraud, and Conspiracy to Commit International Money Laundering, in connection with her participation in a transnational criminal advance fee telemarketing (“lottery”) fraud.
The FBI led the investigation of Bulgin and others that resulted in the extradition of 14 Jamaican nationals and successful prosecution of 31 defendants in North Dakota. The FBI, United States Postal Inspection Service, Homeland Security Investigations, Customs and Border Protection, and a host of state and local authorities throughout the United States have assisted in the investigation, along with the Jamaican Constabulary Force (JCF), Major Organized Crime and Anti-Corruption Agency (MOCA), Jamaican Operations Linked to Telemarketing (JOLT) Task Force, and other U.S. and international authorities.
Bulgin was found guilty of conspiring with Sanjay Williams and others. A federal jury in North Dakota found Williams guilty of similar charges in 2015. Williams was sentenced to serve 20 years imprisonment following his conviction. He was the first Jamaican national tried and convicted in the United States for selling lead lists for use in international cyber-fraud schemes. Lead lists or “client” lists consist of the names, telephone numbers, and personal information of potential victims. Such lists are compiled by brokers and sold to scammers. Lead lists are created by wholesalers who send out bogus mass mailings, purporting to be sweepstakes entries. Consumers, thinking the mailings are legitimate, pay to enter the non-existent sweepstakes. The list wholesalers pocket the entry fee and then sell the prospective victims’ contact information to scammers for as much as $10 per name. These scammers target victims over the age of 55 and would sometimes threaten the safety of the victims and their families.
Over 100 known victims of the conspiracy were personally identified, with reported losses totaling over $6 million. The FBI identified and interviewed known victims of the conspiracy in 31 states and 97 cities across the United States. Thousands more victims were located, whose losses were not personally identified. Individual victims lost as little as $199 and as much as $850,000. Nationwide, the number of victims targeted by scammers is likely in the millions, with estimates of annual losses in excess of $1 billion.
"Melinda Bulgin and her coconspirators deliberately targeted senior citizens as part of a lottery fraud scheme that affected dozens of victims, some of whom lost their life savings, life insurance, and even their homes," said Assistant Attorney General Benczkowski. "The conviction in this case is the result of the hard work and determination of our domestic and foreign law enforcement partners, along with the prosecutors in the District of North Dakota and Criminal Division—and it demonstrates our firm commitment to stopping those who exploit senior citizens and other vulnerable populations."
“This case involves a unique kind of victimization. It is an assault of the victims’ trust and dreams, in addition to their pocket books. Victims are targeted because their age or personal circumstances make them particularly vulnerable. The resulting harm is financial, psychological, and physical. Until recently, these scammers operated with impunity. What is amazing about this case is what an impact such a small team of investigators and prosecutors from North Dakota has had on this criminal organization,” said U.S. Attorney Myers. “They have poured their heart and soul into this case for over six years.”
The investigation was begun and led by Special Agent Frank Gasper of the North Dakota office of the Federal Bureau of Investigation (FBI) and the United States Postal Inspection Service (USPIS) in Florida, with assistance from many other federal and state law enforcement agencies, as well as Jamaican law enforcement agencies.
The case was prosecuted by Assistant U.S. Attorneys Clare Hochhalter, James Patrick Thomas, Nicholas Chase, Jonathan O’Konek, and Department of Justice Trial Attorney Leila Babaeva.
Sentencing for Bulgin has been set for December 17, 2018.
The U.S. Attorney’s Office in North Dakota continues to be a leader in the battle against transnational organized crime and will be recognized by the International Association of Chiefs of Police in October. https://www.justice.gov/usao-nd/pr/north-dakota-us-attorney-s-office-receives-international-leadership-award
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New York man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stephan Cotterrell, of New York, New York, was sentenced today to 84 months incarceration for using a firearm during a crime of violence, United States Attorney Bill Powell announced.
Cotterrell, age 21, pled guilty to one count of “Use of a Firearm During a Crime of Violence” in April 2018. He admitted to brandishing a .22 caliber revolver during a robbery in January 2017 in Morgantown, West Virginia.
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.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
New Haven Man Pleads Guilty to Federal Racketeering Charge, Admits Gang-Related ShootingsRead the Press Release
John Durham, United States Attorney for the District of Connecticut, today announced that, on September 14, 2018, MILTON WESTLEY, also known as “Reese,” 20, of New Haven, pleaded guilty before U.S. District Judge Michael P. Shea in Hartford to a federal racketeering charge stemming from his role in a New Haven street gang.
According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating approximately 40 unsolved shootings in New Haven and Hamden. Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016. The investigation has revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
In pleading guilty, WESTLEY admitted that he was a member of GSB, that he sold drugs with other GSB members, and that he was involved in two gang-related shooting incidents.
The first shooting incident occurred after GSB members believed that an individual had disrespected them over social media and GSB members sought to retaliate. In the early morning hours of January 23, 2016, GSB members fired multiple shots into the individual’s house in New Haven. WESTLEY video recorded himself at the scene while shots were being fired and sent the video to other GSB members.
In the early morning hours of May 27, 2016, in the area of Sperry Street and Whalley Avenue in New Haven, WESTLEY shot an individual from afar, and then, while the victim was on the ground, shot him in the head at close range. The victim survived the shooting.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging WESTLEY and five other individuals with racketeering, attempted murder, firearm and narcotics trafficking offenses. The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.
WESTLEY pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, an offense that carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
WESTLEY had been detained since his arrest on August 9, 2017.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
This investigation is being conducted by ATF and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Peter D. Markle and Rahul Kale.
New Haven Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ADRIAN BELLE, also known as “A.B.,” 24, of New Haven, pleaded guilty today in Bridgeport federal court to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on March 18, 2018, BELLE was the passenger in a vehicle stopped by New Haven Police officers. When the officers asked BELLE to step out of the vehicle, he reached into the center console, exited the vehicle and then began to flee on foot. Officers observed BELLE throw an object during the pursuit.
Once BELLE was stopped and secured in handcuffs, officers located a Smith and Wesson .380 Caliber firearm with an obliterated serial number in BELLE’s front right jacket pocket. Officers also retrieved a loaded firearm magazine that BELLE had thrown while running.
BELLE’s criminal history includes a conviction in October 2014 for robbery in the first degree, and, in August 2011, convictions on three counts of assault on personnel.
The charge of possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
BELLE has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Firearms, Tobacco and Explosives, and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
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 neighborhoods safer for everyone.
Navajo Man from McKinley County Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Joe Lee Haines, 36, an enrolled member of the Navajo Nation who resides in Tinian, N.M., pled guilty today in federal court in Albuquerque, N.M., to a child abuse charge. Haines’ plea agreement recommends a prison sentence of a year and a day followed by a term of supervised release to be determined by the court.
Haines was arrested on Sept. 21, 2017, on a criminal complaint charging him with child abuse. According to the complaint, Haines placed the barrel of a firearm into the mouth of an 11-year-old child. Haines subsequently was indicted on Oct. 11, 2017, and charged with child abuse on Sept. 1, 2017, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Haines pled guilty to the indictment and admitted that on Sept. 1, 2017, while he was intoxicated, he accused a child under the age of 18 years of stealing money from his wallet. After the child fell asleep, Haines admitted that he placed a rifle into the child’s mouth, accused the child of taking money and threatened to pull the trigger.
A sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
Miami-Based Violent Criminal Enterprise Members and Associates Convicted at TrialRead the Press Release
Charges of Conviction Included Racketeering, Drug Trafficking, Armed Robberies, and Firearms Used in Furtherance of Drug Trafficking and Violent CrimesBenjamin G. Greenberg, United States Attorney for the Southern District of Florida; Special Agent in Charge Ari C. Shapira for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Special Agent in Charge Robert Lasky for the Federal Bureau of Investigation (FBI), Miami Field Office; Special Agent in Charge Adolphus P. Wright for the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Chief Jorge R. Colina of the City of Miami Police Department (MPD); and Director Juan J. Perez of the Miami-Dade Police Department (MDPD) announced the trial convictions of ten members and associates of a violent criminal enterprise operating in Miami, Florida, as part of the Southern District of Florida Violence Reduction Partnership (VRP) initiative.
This prosecution resulted from the Operation Northern Light Organized Crime and Drug Enforcement Task Force (OCDETF) that began in May of 2015. The Operation Northern Light Task Force is jointly-led by the United States Attorney’s Office in Miami, the FBI, ATF, and DEA, with participation from MPD, MDPD, and other state and local law enforcement agencies, and focuses on the investigation and reduction of organized violent crime in the north end of Miami-Dade County.
In 2017, fourteen individuals were charged by indictment with various criminal acts, including participating in a racketeering conspiracy; facilitating a conspiracy to possess with intent to distribute narcotics, including crack cocaine; commercial armed robberies; and the use of firearms in furtherance of robberies and narcotics trafficking.
Ten of the charged individuals, all of Miami, proceeded to trial and were convicted on September 14, 2018, of the following offenses:
Antonio Glass was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Glass faces a mandatory minimum term of 10 years and up to life in prison.
Jerimaine Bryant was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and three counts of Possession of a Controlled Substance with Intent to Distribute. Jerimaine Bryant faces a mandatory minimum term of 20 years and up to life in prison.
Samuel Hayes was convicted of one count of Racketeering Conspiracy, two counts of Robbery, and one count of Possession of a Firearm in Furtherance of a Crime of Violence. Hayes faces a mandatory minimum term of 5 years and up to life in prison.
Curtis Bryant was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Curtis Bryant faces a mandatory minimum term of 10 years and up to life in prison.
Levi Bryant was convicted of one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Levi Bryant faces a mandatory minimum term of life in prison.
Michael Walker was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count Possession of a Controlled Substance with Intent to Distribute. Walker faces a mandatory minimum term of 10 years and up to life in prison.
Reginald Graham was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Graham faces a mandatory minimum term of 10 years and up to life in prison.
Daniel Jones was convicted of one count of Drug Distribution Conspiracy. Daniel Jones faces a mandatory minimum term of 10 years and up to life in prison.
Torivis Ingram was convicted of one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Ingram faces a mandatory minimum term of life in prison.
Mario Rodriguez was convicted of one count of Drug Distribution Conspiracy, one count of Possession of a Controlled Substance with Intent to Distribute, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Rodriguez faces a mandatory minimum term of 15 years and up to life in prison.
U.S. District Judge Jose E. Martinez has scheduled the sentencing hearings of the defendants, who were convicted at trial, on various dates throughout December 2018.
Prior to the trial, co-defendants Vencess Toby, Donzell Jones, and Latitia Houser pled guilty to one count of Conspiracy to Possess a Controlled Substance with Intent to Distribute. Toby was sentenced to 60 months in prison. Donzell Jones was sentenced to 188 months in prison. Houser is scheduled to be sentenced on September 18, 2018.
Quincy Bryant, the last remaining defendant charged under the indictment, is scheduled to proceed to trial on October 29, 2018, before Judge Martinez. An indictment is merely an accusation. A defendant is presumed innocent until proven guilty in a court of law.
During the trial, evidence was presented, including civilian and law enforcement witness testimony, that proved how the charged racketeering enterprise, which used names such as the Dub Side Blood Family (DSBF), conducted its unlawful business practices and controlled the South Gwen Cherry Housing Complex in the Allapattah neighborhood of Miami for over seventeen years. Witness testimony established how the DSBF members routinely robbed victims at gunpoint and sold narcotics. The enterprise’s criminal spree included five commercial businesses, including MetroPCS locations, a Food Plus store, and the armed robberies of drug dealers.
The evidence at trial showed that the DSBF became so emboldened that they told a future homicide victim’s own mother that her son would be killed. The DBSF followed through on that promise with his subsequent murder. Similarly, trial evidence showed members of the group celebrated after killing another victim by posting images of the deceased’s body in a casket. The trial evidence also included jailhouse phone calls and private messages which captured DSBF members discussing the operation of their organization and proposed responses to circumvent law enforcement’s investigation into the criminal enterprise. Trial evidence from the defendants’ social media and cellular phone records demonstrated the group’s ability to continue criminal activity despite periods of time when members were incarcerated.
U.S. Attorney Benjamin Greenberg said, "Justice has been served for the residents of Allapattah, with the convictions of members and associates of a violent criminal enterprise that threatened the public’s safety". Today’s announcement leaves no doubt that the lure of gang culture and criminality does not pay. The U.S. Attorney’s Office and our Violence Reduction Partners stand ready to continue our enforcement efforts, in order to protect our South Florida communities and combat violent crime.
ATF Special Agent in Charge Ari C. Shapira stated, “I am pleased by the results of this outstanding investigation worked jointly with our federal, state and local partners. It highlights the value of our collaborative effort to reduce violent crime in our community. Dedicated ATF Special Agents, Task Force Officers and their partners will relentlessly continue to help improve those vulnerable neighborhoods plagued by gun violence.”
“Drugs and the violent gangs that profit from them have a devastating effect on our communities and we will continue to work with our law enforcement partners to make South Florida a safer place,” said Scott A. Rottman, acting Special Agent in Charge, FBI Miami. “The FBI is committed to using every legal means available, including federal racketeering statutes, to dismantle these criminal enterprises who plague our society.”
“The dismantlement of this violent organization has allowed for a major criminal element to be removed from the community of Allapattah,” stated DEA Special Agent in Charge Adolphus Wright. “The efforts from those involved illustrates the devotion and success of the Violence Reduction Partnership which has allowed law enforcement partners at the federal and local levels to work together to rid communities of the criminal afflictions which have plagued them for far too long, and to continue efforts to keep these communities as safe as possible.”
MPD Chief Colina stated, “We are pleased with the outcome of this joint investigation, and are always available to work with our local and federal partners to make the City of Miami and Miami-Dade County the safest community in the nation.”
“The professionalism exhibited during this investigation and the commitment to work together, solidifies the collaboration between federal and local law enforcement. The dedication and efforts of United States Attorney’s Office for the Southern District of Florida are to be commended.” said Juan J. Perez, MDPD Director. “The Miami-Dade Police Department is committed to this collaborative endeavor and will not stop working toward our goal of establishing a safe and secure environment, free from crime and the fear of crime.”
The investigation of this enterprise was jointly led by the ATF, FBI, DEA, MPD, and MDPD. Key participants in the investigation included the MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; the MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. The investigation was also supported by the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department the Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force.
Through the collaborative Violence Reduction Partnership (VRP), the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
This case is being prosecuted by Assistant U.S. Attorneys Ignacio J. Vazquez and Ilham Hosseini.
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.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jarod Arthur Blakney, of Martinsburg, West Virginia, has admitted to cocaine distribution, United States Attorney Bill Powell announced.
Blakney, also known as “Papi,” age 28, pled guilty to one count of “Distribution of Cocaine Base.” Blakney admitted to selling cocaine base in Berkeley County in June of 2017.
Blakney faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marlborough Business Owner Sentenced for Bank FraudRead the Press Release
BOSTON – A Marlborough business owner was sentenced today in federal court in Worcester in connection with a scheme to commit bank fraud.
James R. Faro, 61, of Dover, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison, three years of supervised release, and ordered to pay $1,121,155 in restitution. In March 2018, Faro pleaded guilty to conspiring to commit bank fraud. Faro and co-conspirator John J. Crowley, 62, of Boca Raton, Fla., were charged in January 2018. Crowley has also pleaded guilty and is scheduled to be sentenced on Sept. 24, 2018.
Faro is the former owner and president of Sea Star Seafood Corporation, a company previously headquartered in Marlborough that distributed frozen seafood products. Crowley is the former chief financial officer for Sea Star.
From October 2010 until August 2012, Sea Star maintained an asset-backed loan agreement whereby a bank agreed to loan Sea Star up to $6 million pursuant to a revolving line of credit. Sea Star pledged its assets – most notably its inventory and accounts receivable – as collateral for the loan.
Between November 2010 and August 2012, Faro and Crowley conspired to intentionally overstate the value of Sea Star’s outstanding accounts receivable that it reported to the bank. By doing so, Faro and Crowley fraudulently increased the level of assets against which Sea Star could borrow from the bank. In August 2012, Sea Star informed the bank that it had discovered a “discrepancy” of well over $2.5 million in its reported versus actual accounts receivable. Sea Star declared bankruptcy and discontinued its business operations approximately one week later.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
Man Indicted for Stealing Almost $100,000 in Social Security Disability PaymentsRead the Press Release
Special Assistant U.S. Attorneys Jeffrey D. Hill (619) 546-7924 or Lisa J. Sanniti (619) 546-8811
NEWS RELEASE SUMMARY – September 17, 2018
SAN DIEGO – Andre Lorenzo Jackson, aka “Andre The Player Jackson,” was indicted by a federal grand jury on charges of stealing almost $100,000 in Social Security disability benefits by concealing his residency in Germany for almost a decade. An arrest warrant has been issued for Jackson, who authorities believe is still living in Germany.
In order to be eligible to receive Supplemental Security Income – a program designed to provide a floor of income for the aged, blind or disabled who have little or no income or resources – an individual must reside within the United States of America. As alleged in the ten-count indictment returned last week, Jackson started defrauding the Social Security Administration (SSA) in February 2005 by falsely claiming to reside in San Diego, California, and concealing his extensive foreign travel, in order to continue collecting Supplemental Security Income he started receiving in 1986. While collecting monthly Supplemental Security Income payments, Jackson traveled abroad extensively and promoted himself through social media as a professional athlete, entertainer, and musician.
According to the indictment, Jackson fraudulently represented to the SSA on numerous occasions that he continued to be eligible to receive these benefits. During the decade he fraudulently received benefits into a United States bank account, Jackson would withdraw the funds using ATMs or debit card transactions to pay for his personal expenses.
“Jackson is accused of stealing tens of thousands of dollars intended to help our country’s most vulnerable,” said United States Attorney Adam L. Braverman. “Individuals who abuse the trust and generosity of federal programs will be brought to account.”
“Supplemental Security Income provides a lifeline for the elderly and disabled located within the United States. Because foreign residency fraud takes resources from this vital program and steals directly from the American taxpayer, the Social Security Administration’s Office of the Inspector General vigorously investigates allegations of residency fraud. My office is pleased to see charges brought in this case, and grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of this vital income security program,” said Robb Stickley, Special Agent in Charge of the Inspector General’s Office of Investigations in San Francisco.
This case was investigated by the San Diego division of the Social Security Administration, Office of the Inspector General, and is being prosecuted by Special Assistant United States Attorneys Jeffrey Hill and Lisa Sanniti, both of the Social Security Administration’s Office of General Counsel.
DEFENDANT Case Number 18-cr-4055
Andre Lorenzo Jackson Age: 58 Billigheim, Germany
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C. Section 1343
Maximum penalties: 20 years’ custody; 3 years’ supervised release; $250,000 fine; restitution; forfeiture.
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalties: 10 years’ custody; 3 years’ supervised release; $250,000 fine; restitution; forfeiture.
Investigating Agency
Social Security Administration, Office of the Inspector General
*The charges and allegations in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Long Island Chiropractor Arrested for Multi-Million Dollar Health Care FraudRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging chiropractor Raymond R. Pellegrino with health care fraud. The indictment alleges that Pellegrino billed Anthem Blue Cross Blue Shield over $2 million for health care services that were never performed. Pellegrino was arrested today in Texas, and will be arraigned at a later date in the Eastern District of New York.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Pellegrino abused his position as a licensed medical professional by brazenly stealing millions of dollars in fraudulent billings,” stated United States Attorney Donoghue. “Today’s arrest demonstrates the resolve of this Office and the FBI to hold accountable health care fraudsters who line their pockets at the expense of insurance companies and, ultimately, consumers, who pay the cost of higher premiums.” Mr. Donoghue expressed his grateful appreciation to the New York State Department of Financial Services for its assistance in the case.
“Defrauding our healthcare system, regardless of the amount of money stolen or nature of the crime, eventually harms all of us,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI and our law enforcement partners are aggressively searching out practitioners, suppliers and fraudsters to stop their illegal behavior, and keep the bills we each pay from ballooning out of control.”
As alleged in the indictment and court filings, Pellegrino operated chiropractic offices in West Hempstead and Hicksville, New York. Pellegrino hired medical doctors for part-time work and then billed Anthem Empire Blue Cross Blue Shield under the taxpayer identification numbers of those doctors for osteopathic manipulation and other services purportedly provided to beneficiaries. Between December 2003 and September 2014, Pellegrino was paid over $2 million for fraudulent claims filed with Anthem Blue Cross/Blue Shield, billing for medical services that he knew the doctors had not provided.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.
If convicted of health care fraud, Pellegrino faces up to 10 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
RAYMOND R. PELLEGRINO
Age: 50
McKinney, TexasE.D.N.Y. Docket No. 18-CR-496 (JFB)
Little Rock Man Sentenced to over 5 Years in Federal Prison for Felon in Possession of A Firearm ViolationRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Nico Deshawn Daniels, age 27, of Little Rock, was sentenced today to 70 months in federal prison followed by three years of supervised release on one count of Felon in Possession of a Firearm. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in July 2017, officers with the Arkadelphia Police Department were dispatched to multiple businesses that were receiving counterfeit $100 bills. During the investigation, officers were able to locate and stop a vehicle operated by Daniels. During the search of the vehicle, officers located a .38 caliber revolver in the floorboard of the seat that Daniels was sitting in. A criminal history checked showed that Daniels was a convicted felon and on parole.
Daniels was indicted by a federal grand jury in October 2017 and was found guilty by a jury in March 2018.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Arkadelphia Police Department. Assistant United States Attorney’s Denis Dean and Amy Driver prosecuted the case for the United States.
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.
Kotzebue Man Charged in Connection with the Investigation into Ashley Johnson-Barr’s DeathRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Peter Wilson, 41, of Kotzebue, Alaska, has been charged with making false statements to a federal agent, in connection with the investigation into the disappearance and death of 10-year-old Ashley Johnson-Barr. Wilson was arrested on Friday, Sept. 14, 2018, and is scheduled to appear in court on Sept. 18, 2018, at 1:30 p.m.
According to the complaint affidavit, during the course of the investigation, “JJ” was interviewed and advised law enforcement that, on the night of Sept. 6, 2018, she found Johnson-Barr’s cell phone in the pocket of a jacket belonging to Wilson, who occasionally stays with JJ. She found the cell phone after hearing it repeatedly ring from Wilson’s jacket. When she picked the phone up, she saw Johnson-Barr’s name displayed on the screen. JJ called Johnson-Barr’s mother, who advised that Johnson-Barr was missing. Johnson-Barr’s father retrieved the phone from JJ’s residence and turned it over to the Kotzebue Police Department. When asked by Johnson-Barr’s father and JJ where he found the phone, Wilson stated he found it near the NANA building, which is at the intersection of 2nd and 3rd Avenue in Kotzebue.
JJ also advised law enforcement that on Sept. 6, 2018, she and Wilson were present at JJ’s mother’s (“SM”) house throughout the day. This location is approximately one mile from Rainbow Park, which is where Johnson-Barr was last seen. JJ and SM both advised law enforcement that at approximately 5:20 pm on that same day, SM asked Wilson to pick up JJ’s child and one other child (not Johnson-Barr). Wilson left the house on a 4-wheeler at approximately 5:20 pm. JJ advised that Wilson was gone until approximately 7:20 pm, and did not have any children with him when he returned. Johnson-Barr’s parents were interviewed by law enforcement, who reported that Johnson-Barr and Wilson knew each other and that he had been to their house on numerous occasions.
The complaint alleges that, when Wilson was interviewed by the FBI, Wilson denied using a 4-wheeler at any time on Sept. 6, 2018, denied that he knew Johnson-Barr, and denied seeing Johnson-Barr’s name on her cell phone while he had it in his possession. Also during the interview, Wilson repeatedly stated that he had found Johnson-Barr’s cell phone near the NANA building; however, investigators determined that the cell phone had travelled to areas well south and east of the location where she was last seen and where Wilson said he found the phone. On Sept. 14, 2018, investigators initiated a search of the area where Johnson-Barr’s cell phone had travelled. At approximately 4:15 pm, Johnson-Barr’s body was discovered one quarter mile off the road on the tundra.
The Alaska State Troopers (AST), the Federal Bureau of Investigation (FBI), and the Kotzebue Police Department conducted the investigation leading to the charges in this case. This case is being prosecuted by Criminal Chief Frank Russo. Russo stated, “The U.S. Attorney’s Office has been working with the FBI, the State Troopers, the Kotzebue Police Department, and the Department of Law on the investigation of Ashley Johnson-Barr’s death. We will continue to work with our state and federal partners on the investigation and to assess where to file further charges, as well as what charges to be filed.”
A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Kansas City, Kan., Man Pleads Guilty to Producing Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man pleaded guilty Monday to producing child pornography, U.S. Attorney Stephen McAllister said.
Ronny Peters, 40, Kansas City, Kan., pleaded guilty to one count of producing child pornography. In his plea, he admitted the investigation began when the FBI received a report that Peters had turned in a company cell phone to his former employer containing child pornography. Investigators were able to identify the 10-year-old victim in the images.
Sentencing is set for Dec. 10. He faces a penalty of not less than 15 years and not more than 30 years in federal prison. McAllister commended the FBI and Assistant U.S. Attorney Scott Rask for their work on the case.
Illegal Alien MS-13 Member Convicted of Assaulting a Federal Witness, Drug Distribution, Immigration and Firearms ViolationsRead the Press Release
An illegal alien and MS-13 gang member from El Salvador was convicted today by a federal jury of using physical force to tamper with a witness; being an illegal alien in possession of a firearm; illegally re-entering the United States after previously being deported; multiple counts of cocaine distribution; and multiple counts of other firearms violations, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Gerson Serrano-Ramirez, aka “Frijole,” 31, was indicted in August 2017 and convicted today after a three-day jury trial in U.S. District Court in Nashville, Tennessee.
“MS-13 is one of the most violent and dangerous gangs in America, and the conduct that occurred in this case is further evidence of the gang’s ruthlessness,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement colleagues are committed to combatting MS-13 here in the Middle District of Tennessee and in every other jurisdiction where the gang operates. We will seek out members of MS-13 and other violent gangs wherever they may be and prosecute them to the fullest extent of the law.”
“The jury’s verdict will ensure that another violent criminal alien will be removed from our community for a very long period of time and he will have little, if any chance of ever inflicting harm outside of his new home - a federal penitentiary,” said U.S. Attorney Cochran. “I commend the excellent work of our law enforcement partners and our prosecutors and appreciate the jury’s time and attention during this trial.”
According to evidence and testimony presented at trial, in July 2017, the activities of Serrano-Ramirez and other MS-13 gang members were disrupting the normal operation and business of a local nightclub and this was brought to the attention of Serrano-Ramirez by an acquaintance, with a request to tone down their disruptive behavior. Serrano-Ramirez later invited the individual to his home in the Antioch, Tennessee area, where he subsequently assaulted him by pointing an assault rifle at him; strangling him with the rifle strap; spraying bleach into his eyes and then attempted to suffocate him by placing a plastic bag over his head. Finally, while clamping the individual’s finger with a pair of pliers and holding an assault rifle on him, Serrano-Ramirez told the individual that if he told anyone about the assault that he would kill him and his mother.
Evidence introduced during the trial also included video of the assault which was captured on an in-home security system at Serrano-Ramirez’ house and videos of him packaging and selling cocaine from the residence. This video was discovered and seized during the subsequent execution of a search warrant. Also seized during this search was an AK-47 assault rifle, multiple rifle magazines, 582 rounds of ammunition, body armor and a small amount of cocaine and marijuana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Metropolitan Nashville Police Department Gang Unit. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ahmed Safeeullah of the Middle District of Tennessee.
Illegal Alien MS-13 Member Convicted of Assaulting a Federal Witness, Drug Distribution, Immigration & Firearms ViolationsRead the Press Release
NASHVILLE, Tenn. – September 17, 2018 – An illegal alien and MS-13 gang member from El Salvador was convicted today by a federal jury of using physical force to tamper with a witness; being an illegal alien in possession of a firearm; illegally re-entering the United States after previously being deported; multiple counts of cocaine distribution; and multiple counts of other firearms violations, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Gerson Serrano-Ramirez, aka Frijole, 31, was indicted in August 2017 and convicted today on all counts after a 3-day jury trial in U.S. District Court in Nashville.
“The jury’s verdict will ensure that another violent criminal alien will be removed from our community for a very long period of time and he will have little, if any, chance of ever inflicting harm outside of his new home - a federal penitentiary,” said U.S. Attorney Cochran. “I commend the excellent work of our law enforcement partners and our prosecutors and appreciate the jury’s time and attention during this trial.”
“MS-13 is one of the most violent and dangerous gangs in America, and the conduct that occurred in this case is further evidence of the gang’s ruthlessness,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law enforcement colleagues are committed to combatting MS-13 here in the Middle District of Tennessee and in every other jurisdiction where the gang operates. We will seek out members of MS-13 and other violent gangs wherever they may be and prosecute them to the fullest extent of the law.”
According to evidence and testimony presented at trial, in July 2017 the activities of Seranno-Ramirez and other MS-13 Gang members were disrupting the normal operation and business of a local night club and this was brought to the attention of Seranno-Ramirez by an acquaintance, with a request to tone down their disruptive behavior. Seranno-Ramirez later invited the individual to his home in the Antioch, Tennessee area, where he subsequently assaulted him by pointing an assault rifle at him; strangling him with the rifle strap; spraying bleach into his eyes; and then attempted to suffocate him by placing a plastic bag over his head. Finally, while clamping the individual’s finger with a pair of pliers and holding an assault rifle on him, Seranno-Ramirez told the individual that if he told anyone about the assault that he would kill him and his mother.
Evidence introduced during the trial also included video of the assault which was captured on an in-home security system at Seranno-Ramirez’ house and videos of him packaging and selling cocaine from the residence. This video was discovered and seized during the subsequent execution of a search warrant. Also seized during this search was an AK-47 assault rifle; multiple rifle magazines; 582 rounds of ammunition; body armor; and a small amount of cocaine and marijuana.
Serrano-Ramirez faces a mandatory minimum sentence of at least 30 years, up to life in prison when he is sentenced on January 28, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; Homeland Security Investigations – Immigration & Customs Enforcement; and the Metropolitan Nashville Police Department Gang Unit. Assistant U.S. Attorney Ahmed Safeeullah and Department of Justice Trial Attorney Matthew Hoff prosecuted the case.
Idaho Residents Present During Shooting at Las Vegas Route 91 Harvest Festival Are Eligible for Victim ServicesRead the Press Release
BOISE – Bart M. Davis, U.S. Attorney for the District of Idaho, is hoping to reach Idahoans, who were present during the mass shooting at last year’s Route 91 Harvest Festival in Las Vegas, Nevada, as they may be eligible for victim assistance through the Nevada Victims of Crime program, even if they are not Nevada residents. The last day to submit an application for the Nevada Victims of Crime program is October 1, 2018, which is the one-year deadline from the date of the incident.
Funds from the Nevada Victims of Crime program may help reimburse victims for out-of-pocket expenses resulting from the shooting, such as medical bills or counseling co-pays not covered by insurance. Even if victims do not have eligible expenses right now, they are urged to apply for the program before the application due date so any future expenses can be considered for coverage. Mental health experts say it is not uncommon for survivors of mass violence and trauma to seek counseling months or years after an incident occurred.
Applications for compensation from the Nevada Victims of Crime Program are on the Vegas Strong Resiliency Center’s website at VegasStrongRC.org. Caring staff at the center is available to answer questions about the Nevada Victims of Crime Program, and they can assist anyone who needs help completing an application.
Every state has a Victims of Crime program affiliated with the U.S. Department of Justice. Funding for the program comes from court-ordered fines and fees and helps victims of violent crimes pay for expenses related to the crime.
The Vegas Strong Resiliency Center opened on October 23, 2017, to provide free resources and support to anyone affected by the Route 91 Harvest Festival shooting including survivors, family members of victims, responders and those who witnessed the incident or tried to assist victims. Since the Vegas Strong Resiliency Center opened, it has served more than 6,800 people. Services include victim advocacy and support, legal consultations for civil legal matters, grief counseling and spiritual care referrals, and technical assistance accessing online resources including FBI Victim Assistance Services for claiming personal items left behind at the Route 91 concert venue.
The Vegas Strong Resiliency Center can be reached by phone at (702) 455-2433 (AIDE) or toll-free at (833) 299-2433, and by email at: [email protected]. The center also has a Facebook page at Facebook.com/VegasStrongResiliencyCenter.
Nevada’s Clark County Television produced a video posted on YouTube that walks viewers through the application process: youtube.com/watch?v=EJv9zadqgGg.
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Husband and Wife Convenience Store Owners Indicted for Fraud Involving Food Stamp ProgramRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Russell Leroy Dotson, Jr. (61) and Maria Luisa Dotson (64), both of Jacksonville, with conspiracy to commit wire fraud. If convicted, each faces a maximum penalty of 20 years in federal prison. The indictment also notifies Russell and Maria Dotson that the United States is seeking a money judgment in the amount of $886,130, the proceeds of the alleged conspiracy. The couple made their initial appearance in federal court today and was released on a $5,000 bond. Their arraignment is set for Monday, September 24, 2018.
According to the indictment, the Dotsons owned and operated Asmarina Food Mart with two locations in Jacksonville. Upon opening the convenience stores, they applied for and received approval from the Food and Nutrition Service, an agency of the United States Department of Agriculture, to participate in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. After receiving this approval, the Dotsons trained their employees on ways to conduct fraudulent transactions with SNAP recipients using their Electronic Benefit Transfer (EBT) card. The Dotsons instructed their employees to ring up fraudulent transactions to make it appear that SNAP recipients had purchased eligible food products from the store using their EBT cards. The employees then gave the SNAP recipients cash representing approximately one-half of the amount of the fraudulent transaction, while the Dotsons received the remainder of the money. Over approximately 27 months, Russell and Maria Dotson defrauded the United States out of $886,130.
This indictment is part of a long-term investigation into SNAP fraud occurring at the two Asmarina Food Mart locations. To date, 10 others have pleaded guilty and have been sentenced, or are pending sentencing, for their roles in this scheme. Shelly Rowe Sullivan, Teighlor Michelle Wicker, Tracy Lynn Hammock, Shannon Marie Whaley, Denise Diane Taylor, and Ormetre Patterson were previously sentenced to supervised release and ordered to pay a total of $37,420.34 in restitution to the United States. Cierra Elizabeth White, Laura Lockwood, Shanelle Bryant, and Felicia Meadows are pending sentencing and have agreed to pay a total of $168,294.87 in restitution to the United States.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the U.S. Secret Service - Jacksonville Field Office, and the U.S. Department of Agriculture - Office of Inspector General. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Dent, of Bridgeport, West Virginia, was sentenced today to 27 months incarceration for illegally possessing a firearm, United States Attorney Bill Powell announced.
Dent, age 33, pled guilty to one count of “Unlawful Possession of a Firearm” in May 2018. Dent, who had previously been convicted of crimes in New Jersey, admitted to having a 9mm caliber pistol in May 2017 in Harrison County.
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.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Great Falls Felon Sentenced for Gun PossessionRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 45-year-old George Goodrie was sentenced to 38 months in prison, 2 years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
During the early morning hours of January 17, 2016, Great Falls police searched for Goodrie in relation to an earlier reported incident regarding a robbery in Great Falls. Law enforcement found a truck Goodrie stole in a casino parking lot. Officers went into the casino and arrested Goodie.
Officers searched the stolen truck and observed a handgun on the seat underneath the center console. This firearm appeared to be the same firearm previously identified as being associated with Goodrie. Goodrie has an extensive criminal history that includes over 20 prior felony convictions for thefts, violent conduct, and drugs, which precludes him from possessing firearms.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
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.
Grant County Man Facing Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Timothy Marquez, 23, of Bayard, N.M., made his initial appearance today in federal court in Las Cruces, N.M., on a criminal complaint charging him with receiving and possessing child pornography. Marquez remains in federal custody pending a preliminary hearing and a detention hearing, both of which are currently scheduled for Sept. 25, 2018.
According to the criminal complaint, the investigation leading to Marquez’s arrest began in Dec. 2017, when the New Mexico State Police (NMSP) followed up on a report from the National Center for Missing and Exploited Children regarding an email address subscribed to Marquez’s Bayard residence that allegedly was used to upload at least 22 files of child pornography. On May 15, 2018, the NMSP executed a search warrant at the residence.
While executing the search warrant, the officers seized several items including several digital media devices. The complaint further alleges that Marquez used online social networking websites to receive and view child pornography.
The statutory penalty for a conviction on a receipt of child pornography charge is a statutory mandatory minimum penalty of five years and maximum penalty of 20 years of imprisonment. The statutory penalty for a conviction on a possession of child pornography charge is a statutory maximum penalty of ten years imprisonment. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by Homeland Security Investigations, the NMSP and the Las Cruces Police Department. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Turtle Creek Man Pleads Guilty to Possessing Firearms while on Parole for HomicideRead the Press Release
PITTSBURGH, Pa – A former resident of Turtle Creek, PA pleaded guilty in federal court to violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Hashim Rashad, age 25, pleaded guilty to one count of possession of firearms by a convicted felon before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on October 18, 2017, Pittsburgh Police executed a search warrant at on Larimer Avenue in Turtle Creek, PA while Hashim Rashad was detained in the house. Police recovered an EZ9 9mm handgun with an obliterated serial number from the couch of the location. Police then recovered a Bryco Arms Jennings J-22, 22LR handgun, inside a purse in the living room of the house. The Bryco Arms Jennings 22 handgun was previously reported stolen. Prior, to possessing these firearms, Rashad was previously convicted voluntary manslaughter, a crime punishable by more than one year and was on parole for that same crime at the time of the offense.
Judge Bissoon scheduled sentencing for February 15, 2019 at 2:15 p.m. The law provides for a maximum total sentence of up to ten 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 prior record of the defendant. Rashad will continue to be detained pending sentencing.
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.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Agency and the Pittsburgh Bureau of Police – Narcotics and Vice Unit conducted the investigation leading to the plea in this case.
Former Postal Worker Sentenced for Fraudulent Credit CardsRead the Press Release
United States Attorney Joe Kelly announced that Domonic L. Harris, 44, of Lincoln, Nebraska, was sentenced September 14, 2018, in Lincoln, Nebraska, to nine months in prison by United States District Judge John M. Gerrard, for illegal transactions with an access device. In addition to his prison sentence, Harris will also serve two years on supervised release and pay $3,688.27 in restitution.
In 2017, while Harris was a mailman for the U.S. Postal Service, a victim reported to the postal service that an unknown person had completed a fraudulent change of address on his/her behalf. The victim was notified that all mail was being delivered to the fraudulent address, including a Chase Bank credit card to which charges totaling over $1,000 had been made. One of the charges was to a RedBox Rental Service location at a Walgreen’s on North 48th. Surveillance video showed a silver Ford Explorer in the parking lot with the front wheel missing the hubcap. Investigation of that vehicle by law enforcement led officers to Harris.
A search warrant was obtained and executed at Harris’s residence in Lincoln. Stolen mail from 45 persons was found. Investigation determined that Harris had received at least 12 credit cards in the victims’ names and charged approximately $6,000 on these cards.
This case was investigated by the Office of Inspector General for the United States Postal Service and the Lincoln Police Department.
Former Oklahoma State Senator Sentenced to Fifteen Years for Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – RALPH ALLEN LEE SHORTEY, 36, has been sentenced to fifteen years in prison for soliciting a minor to engage in a commercial sex act.
"Today’s sentence shows that federal law enforcement will take whatever steps are necessary to protect children from sexual exploitation, regardless of the status or position of the defendant," said Robert J. Troester of the U.S. Attorney’s Office.
FBI Special Agent-in-Charge Kathryn Peterson said: "This investigation reinforces the message that the victimization of children will not be tolerated by law enforcement. The FBI will continue to meticulously investigate these crimes, which cause irreparable harm and trauma to the victims."
Shortey pleaded guilty on November 30, 2017, to one count of child sex trafficking. In particular, he admitted he solicited a minor identified as "John Doe" to engage in a commercial sex act on March 8 and 9, 2017. According to a September 2017 indictment, Doe advised Shortey on March 8 via Kik, a mobile messaging app, that he needed money for spring break. Shortey replied: "I don’t really have any legitimate things I need help with right now. Would you be interested in ‘sexual’ stuff?" After Doe responded "yes," the Kik conversation included explicit references to sex acts. Just after midnight on March 9, Shortey drove Doe to a Super 8 Motel in Moore, Oklahoma, where Shortey rented a room with his credit card. Based on information provided by Doe’s father, officers of the Moore Police Department knocked on the motel room door at approximately 1:00 a.m. and discovered Doe with Shortey, whose backpack contained an open box of condoms.
Shortey was serving as an Oklahoma State Senator at the time of the offense. He resigned in March 2017, shortly after his conduct led the Cleveland County District Attorney to charge him with state crimes. A federal grand jury returned a four-count indictment against Shortey on September 5, 2017. That indictment included three counts relating to child pornography: emailing videos of a prepubescent girl and young boys in October 2013 and producing child pornography by persuading John Doe to send him a sexually explicit image. As a result of a plea agreement, the United States dismissed these counts. The court, however, was still entitled to consider them in determining an appropriate sentence.
Today U.S. District Judge Timothy D. DeGiusti sentenced Shortey to prison for 180 months, or fifteen years, in addition to ten years of supervised release. The sentence also requires him to pay $5,100 in special assessments. Restitution will be determined at a later time.
This case is the result of an investigation by the FBI and the Moore Police Department, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys K. McKenzie Anderson and Brandon Hale prosecuted the case.
Reference is made to court filings for further information.
Former Officer of Cocoa Trading Company Sentenced to 30 Months in Prison for $350 Million FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PETER B. JOHNSON was sentenced to 30 months in prison for leading a scheme to defraud a group of lenders (the “Banks”) by submitting false “borrowing base” reports designed to secure and maintain a $400 million line of credit for his family’s cocoa trading company, Transmar Commodity Group Ltd. (“Transmar” or the “Company”). JOHNSON pled guilty on March 9, 2018, to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution. The sentence was imposed by United States District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey S. Berman said: “Peter B. Johnson conspired to defraud lenders by misrepresenting how much credit-eligible collateral his company had. When the company went bankrupt, it owed its lenders over $360 million. For his role in lying to lenders, Johnson has been sentenced to prison.”
According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Transmar was a closely held, family-run cocoa commodity trading company founded by the PETER B. JOHNSON’s father, Peter G. Johnson. PETER B. JOHNSON was an officer of Transmar, as well as responsible for the operations of Transmar affiliate Euromar Commodities GMBH (“Euromar”).
From at least 2014 through at least December 2016, Transmar maintained a credit facility from the Banks that varied from approximately $250 million to approximately $400 million. To secure and maintain these hundreds of millions of dollars in credit, PETER B. JOHNSON, Peter G. Johnson, Transmar’s Vice President of Finance, Thomas Reich, and others schemed to misrepresent material information about Transmar’s finances, making it appear that Transmar had far more credit-eligible collateral than it actually had.
The scheme centered on periodic “borrowing base” reports (“BB Reports”) that the Banks required Transmar to submit, sometimes as frequently as weekly, as a condition to continued credit extension. The BB Reports were supposed to accurately reflect and quantify those portions of Transmar’s collateral that qualified for financing under the terms of credit agreements between Transmar and the Banks.
Beginning no later than 2014, Transmar employees, acting with JOHNSON’s knowledge and at his direction, manipulated the BB Reports and related documents to give the false impression that Transmar had sufficient eligible collateral to support the amount of credit the Banks were extending. The manipulation involved, among other devices, counting inventory that Transmar had already sold or was otherwise ineligible for inclusion, counting accounts receivable for which Transmar had already received payment, recording fake accounts receivable, and arranging “circle” transactions through which amenable third-party intermediaries agreed to “buy” goods from Transmar with Transmar’s own money, funneled to the third parties through Euromar.
Following the discovery of the fraud, Transmar filed for bankruptcy in December 2016. At that time, the Company owed the Banks approximately $360 million.
* * *
In addition to the prison term, PETER B. JOHNSON, 39, of Morristown, New Jersey, was also sentenced to two years of supervised release, and ordered to forfeit $1,790,000.
Peter G. Johnson, 69 of Harding Township, New Jersey was sentenced by Judge Rakoff on August 13, 2018 to three years in prison.
Thomas Reich, 60, of Montvale, New Jersey, pled guilty to the same offenses for his participation in the scheme to defraud the Banks. He is scheduled to be sentenced on September 21, 2018.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Benet J. Kearney and Daniel M. Tracer are in charge of the prosecution.
Former Boston Police Officer Convicted by Federal Jury in Connection with Straw Purchases of FirearmsRead the Press Release
BOSTON – A former Boston Police Officer was convicted today by a federal jury in Boston with illegally purchasing two firearms on behalf of acquaintances.
Adarbaad Karani, 38, of West Roxbury, was convicted following a five-day jury trial of two counts of making a false statement during the purchase of firearms and two counts of making a false statement in a record. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 10, 2018. In May 2017, Karani was indicted.
On two different occasions, in November 2014 and September 2015, Karani acted as the “straw purchaser” of two firearms, a Glock, model 27, .40 caliber pistol and a Glock, model 30S, .45 caliber pistol, which he purchased for two acquaintances. Karani purchased the firearms, which cannot be acquired by civilians, using his police identification and falsely certified that the firearms were for his official police use. During one purchase, Karani also indicated that the firearm was not for resale.
Straw purchases interfere with firearm regulation and recordkeeping, and federal law prohibits making false statements to a firearms dealer in connection with the sale of a firearm.
The charging statutes each provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Former Biscayne Park Chief of Police Pleads Guilty to Conspiring with Other Officers to Violate Victims’ Civil Rights by Making False ArrestsRead the Press Release
Former Village of Biscayne Park Chief of Police, Raimundo Atesiano, pleaded guilty in federal court to conspiring with subordinate officers to violate individuals’ civil rights by making false arrests, announced U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE).
According to documents filed in connection with the plea entered today, Atesiano was acting under color of law as chief of police when on three separate occasions he ordered officers under his command to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that on one occasion he instructed an officer to falsely arrest and charge an individual for several vehicle burglaries based upon what Atesiano knew were false confessions. According to the documents, Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.
Guillermo Ravelo, a former Biscayne Park Officer who is named in the superseding indictment, previously entered a guilty plea for his role in the conspiracy with Atesiano to violate individuals’ civil rights. Charlie Dayoub and Raul Fernandez, former Biscayne Park officers who also are named in the superseding indictment, previously entered guilty pleas for their roles in effecting false arrests.
The Court set the sentencing date for Atesiano on Nov. 27. Guillermo Ravelo is scheduled to be sentenced on Oct. 4, and Charlie Dayoub and Raul Fernandez are scheduled to be sentenced on Oct. 16.
“The vast majority of law enforcement officers across the nation serve our communities with honor and integrity,” stated U.S. Attorney Benjamin G. Greenberg. “We will not allow the minority of officers who cast aside their oaths to tarnish the reputation of those who protect us all. Instead, as evidenced today with former Chief Raimundo Atesiano’s guilty plea, we will continue to hold them accountable in federal court for criminal acts that threaten our constitutional guarantees.”
“The right to be free from false arrests is fundamental to our Constitution and system of justice,” said Acting Assistant Attorney General John Gore. “Law enforcement officers who abuse their authority and deny any individual this right will be held accountable. As the Chief of Police, Defendant Atesiano was trusted by his community to lead their police officers by example; he has failed his community and the officers of Biscayne Park.”
“Law enforcement officers are entrusted with a great deal of responsibility and authority and therefore must be held to a high standard. Raimundo Atesiano failed to meet this standard by abusing his authority and breaking laws,” said Scott A. Rottman, Acting Special Agent in Charge, FBI Miami. "Unfortunately, the actions of a very few dishonest officers, such as Atesiano and his co-conspirators, undercut the public’s trust and they must be rooted out. His actions do not represent the overwhelming majority law enforcement officers who are diligent, honorable professionals who are worthy of that trust."
“It is a deliberate injustice to intentionally charge and arrest an innocent man. Police Chief Raimundo Atesiano’s actions were intended to give his community a false sense of security and were a betrayal of his oath to protect the residents of Biscayne Park and all the people of Miami-Dade County,” commented State Attorney Katherine Fernandez Rundle. “I applaud the combined efforts of our law enforcement partnership to end this calculated abuse of power.”
“Law enforcement officers must be held to the highest moral standards and when that trust is broken, FDLE will work aggressively to investigate and find the truth ensuring all citizens are treated justly,” said FDLE Miami Special Agent in Charge Troy Walker.
The case was investigated by the FBI, the FBI Miami Area Corruption Task Force and the FDLE, with assistance from the Miami-Dade State Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice, and Assistant State Attorney Trent Reichling.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Father and Son Sentenced to Prison for Million-Dollar FraudRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak and Andrew J. Galvin (619) 546-9709 and (619) 546-9721
NEWS RELEASE SUMMARY – September 17, 2018
SAN DIEGO – A father and son who fraudulently won over $4 million of federal contracts using false financial statements and other lies were sentenced to prison today and ordered to pay over $1 million in restitution. The father also admitted to stealing more than half a million dollars from his consulting clients, and then using some of the laundered money to close escrow on a Rancho Santa Fe mansion.
U.S. District Judge Roger T. Benitez sentenced Joseph Glenn Osborne, Sr., 68, to 57 months in prison for wire fraud and participating in a wire fraud conspiracy with his son and codefendant, Joseph Glenn Osborne, II, 31. Osborne, II was sentenced to 12 months for falsely making a writing to obtain money from the United States.
In handing down the sentence, Judge Benitez told the father it appeared he’d “made a life out of lying and cheating.”
In his plea agreement, Osborne, Sr. admitted that he stole $588,489 from three different small businesses that had hired him as a consultant for securing federal contracts. According to court documents and his own admissions, Osborne, Sr. promised to help the victims get contracts with the U.S. Department of Agriculture (USDA). Osborne, Sr. then misused his position as their agent to change banking information in an online government system, so when USDA paid on his clients’ contracts, Osborne, Sr. diverted the funds to his own accounts.
According to his plea agreement, Osborne, Sr. laundered some of the stolen money and used it to make a down payment on a $2.7 million mansion in Rancho Santa Fe, California. Osborne, Sr. then forged a pair of emails to conceal the source of the money by falsely claiming that it was an early retirement withdrawal from his government benefits account. In fact, according to court filings, Osborne, Sr. had no such account; the agency he impersonated did not actually exist; and he had simply altered an email from a real government employee.
In 2013, after Osborne, Sr.’s clients terminated him, the Osbornes agreed to submit fraudulent financial statements to qualify Osborne, II’s new business—Worldwide Connect LLC (WWC)—as an approved USDA contractor. As set out in their guilty pleas, the Osbornes recruited Osborne, II’s friend and bookkeeper to prepare false financial statements that substantially overstated WWC’s financial health. For example, the statements fraudulently converted WWC’s 2013 year-end cash position from a $5,546 shortfall to a $37,954 surplus.
The Osbornes also falsely certified that none of WWC’s principals was suspended or debarred from federal contracting. In fact, according to documents filed in the case, Osborne, Sr. was suspended and debarred from all federal contracting from November 2013 to October 2016, due to conduct at his prior business, Global Health & Safety.
As a result of its fraud, WWC was approved for federal contracting and won over $4 million of USDA food supply contracts. Four of the five contracts were terminated for contractor default, however, after WWC failed to deliver over 100,000 cases of fruit juice and raisins to community food banks and lunch programs. The Osbornes admitted that WWC caused its suppliers and financing company over $1.5 million in losses. Meanwhile, as set out in the plea agreements and court filings, the Osbornes paid themselves approximately $285,245 of WWC funds in little more than a year. They also used other company money for personal expenses—including almost $10,000 of nightclub charges and luxury hotel stays, and thousands more for escrow and renovating expenses for Osborne, Sr.’s new personal residence.
After their contracts were terminated, the Osbornes applied to the Small Business Administration (SBA) to be readmitted to federal contracting. As part of that application, Osborne, II misstated Osborne, Sr.’s military history, falsely claiming his father was a retired colonel in the Marine Corps. Osborne, II also supplied a variety of falsified tax returns to the SBA for himself and WWC, including an altered tax return that converted his real $14,870 tax liability into a fake $5,427 tax overpayment.
In addition to their prison terms, each defendant was ordered to pay restitution to their victims in the amounts of approximately $1.7 million for Osborne, Sr. and $1.5 million for Osborne, II.
“Government contracting depends upon the basic integrity and honesty of the people who seek to do business with the United States,” said U.S. Attorney Adam L. Braverman. “We will investigate and prosecute white collar criminals who think that they can manipulate the contracting system and enrich themselves through lies and deception.”
FBI Special Agent in Charge John Brown said, “The FBI and our partner at USDA-OIG uncovered repeated deceit, theft and fraud by the Osbornes. Today, the personal greed and self-promotion ended with a federal sentence of custodial time and $1.7 million ordered in restitution to the victims. The American taxpayers and their government funded programs deserve the dogged pursuit of justice exemplified by this case.”
Special Agent-in-Charge Lori Chan, United States Department of Agriculture (USDA), Office of Inspector General (OIG), Western Region, stated, “The USDA OIG has the responsibility for protecting the integrity of the Agriculture Marketing Service, Commodity Procurement Program. OIG conducts investigations in each region of the U.S. to deter and uncover criminal activity that undermines the Commodity Procurement Program. Contractors who engage in financial fraud exploit the public’s trust. The OIG at USDA works to ensure the integrity of USDA programs.”
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Andrew J. Galvin.
DEFENDANT Case Number 16CR2546-BEN
Joseph Glenn Osborne, Sr. Age: 68 Carlsbad, California
Joseph Glenn Osborne, II Age: 31 Carlsbad, California
SUMMARY OF CHARGES
Osborne, Sr.: Wire Fraud, in violation of Title 18 U.S.C. § 1343; term of custody including 20 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution.
Osborne, Sr.: Wire Fraud Conspiracy, in violation of Title 18 U.S.C. § 1349; term of custody including 20 years in prison, $250,000 fine, and 3 years of supervised release, and mandatory restitution.
Osborne, II: Falsely Making a Writing to Obtain Money From the United States, in violation of Title 18 U.S.C. § 495; term of custody including 10 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution.
AGENCIES
U.S. Department of Agriculture, Office of Inspector General
Federal Bureau of Investigation
Fairfield County Doctor Pleads Guilty to Health Care Fraud and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that Dr. RAMIL MANSOUROV, 49, of Darien, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to health care fraud and money laundering offenses.
According to court documents and statements made in court, MANSOUROV is a physician who operated out of Family Health Urgent Care, located at 235 Main Street in Norwalk. The medical practice was formerly known as Immediate Health Care, which was owned by Dr. Bharat Patel. In approximately 2012, MANSOUROV purchased the practice from Patel and renamed it Family Urgent Health Care, and Patel continued to work at the practice.
Between 2014 and November 2016, MANSOUROV billed Medicaid approximately $4,994,027 for home, office and nursing home visits that never occurred. MANSOUROV transferred some of the stolen funds to a bank account in Switzerland and then moved more than $1.3 million from the Swiss bank account to at least three of his own domestic bank accounts. The investigation revealed that MANSOUROV used the stolen funds for both personal and business purposes.
Judge Arterton scheduled sentencing for December 5, 2018, at which time MANSOUROV faces a maximum term of imprisonment of 30 years, a fine of up to approximately $10 million, and an order of restitution. MANSOUROV also has agreed to forfeit $50,000, and surrender his federal controlled substances registration to the Drug Enforcement Administration.
MANSOUROV has been detained since July 13, 2017, when he was apprehended after fleeing to Canada.
On June 25, 2018, Patel pleaded guilty to narcotics distribution and health care fraud offenses. Patel admitted that he wrote hundreds of medically unnecessary prescriptions for oxycodone and hydrocodone, and received $158,523.95 from federal health programs as a result of this and related criminal conduct. Patel has been detained since his arrest on July 12, 2017.
This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad and the Norwalk Police Department, with the critical assistance of the Connecticut Office of the Attorney General. The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Eufaula Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Erickson Clay Ward, age 57, of Eufaula, Oklahoma, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(B), punishable by not less than 5 nor more than 40 years imprisonment, up to a $5,000,000.00 fine, or both; and to Possession Of Firearm In Furtherance Of Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years to run consecutive to any other term of imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about May 3, 2018, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about May 3, 2018, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm, to-wit: Cobra Enterprises, Inc. / Kodiak Ind., Model FS380, 380 caliber pistol, serial number FS049344, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine.The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Christopher Wilson represented the United States.
Elizabeth, PA Cocaine Dealer Will Spend 5 Years in Federal PrisonRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to a term of imprisonment of 60 months, to be followed by four years of supervised release, on his convictions of conspiracy and possession with intent to distribute 500 grams or more of cocaine, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Christopher Joseph Lubic, age 33, of Elizabeth, Pennsylvania.
According to information presented to the court, between July 2015 and August 2016, Lubic received several packages containing cocaine from California. Lubic sent money orders as payment. On August 18, 2016, law enforcement obtained a search warrant to open a package sent from California to an address associated with Lubic in Duquesne, PA. The package contained cocaine. An electronic monitoring device was inserted into the package in preparation for a controlled delivery. Shortly after the package was delivered to the defendant, authorities were alerted that the package was opened. When agents entered the residence, they found the open parcel containing cocaine on the floor. A portion of the label was on the defendant’s shoe. The search of the residence revealed additional cocaine, for a total of over 513g, cocaine "cut", a cocaine press, $60,000, drug paraphernalia and materials used in prior deliveries from California.
Lubic agreed to speak with postal inspectors and admitted to receiving packages containing cocaine. He also admitted to purchasing a cocaine press and "cut" to increase the volume of cocaine. He acknowledged sending money orders to CA. He stated that he was going to pay $20,000 for the delivery and sell the cocaine to another individual for $22,000.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The United States Postal Investigation Service and the Pennsylvania State Police conducted the investigation that led to the prosecution of Lubic.
Department of Justice Announces ADA Settlement with Owner of Kentucky TheatersRead the Press Release
LEXINGTON, Ky. – The Department of Justice today announced a settlement agreement with the owner of four Kentucky theaters, resolving complaints alleging violations of the Americans with Disabilities Act (“ADA”). The complaints, filed with the Department, asserted that Tenth Frame Cinemas, LLC, in Mt. Sterling, Ky.; Danville Cinemas, LLC, in Danville, Ky.; Somerset Cinemas, LLC, in Somerset, Ky.; and Morehead Cinemas, LLC, in Morehead, Ky. had failed to provide adequate closed captioning technology, which would allow individuals with hearing and/or sight impairments to enjoy newly released movies. The ADA generally requires places of public accommodation to take the steps necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than other individuals because of the absence of auxiliary aids and services.
The settlement agreement resolves the complaints without litigation and requires the owner/operator of the four theaters to (1) provide sufficient closed-captioning devices, receivers, and headsets, for the assisted listening systems and audio description technology, in the theaters; (2) provide necessary training to theater staff regarding the availability and use of the equipment; (3) properly test, repair and maintain the equipment; (4) establish procedures to notify the public if the equipment is inaccessible or non-functioning; (5) establish a policy regarding refunds and future viewings for individuals who have purchased tickets, but are unable to view movies because the equipment is non-functioning; and (6) advertise the availability of the equipment.
“The purpose of the ADA is to ensure that individuals with disabilities are included, and that services that are provided to the public are reasonably available to them,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “This settlement furthers that purpose, by making theater movies more accessible to individuals with disabilities in these Kentucky communities. We want to commend the theaters involved, both for their cooperation throughout the investigation and their willingness to reach a prompt resolution that benefits individuals with disabilities. We look forward to working together with them to implement the settlement agreement.”
People interested in finding out more about the ADA can call the Justice Department’s toll-free Information Line at 800-514-0383 (TDD), or access the ADA homepage at www.ada.gov.
Defendant Pleads Guilty in Connection with Ohio Labor Trafficking Scheme Involving Immigrant MinorsRead the Press Release
Pablo Duran Ramirez, 50, pleaded guilty today in U.S. District Court in Cleveland, Ohio, to encouraging the illegal entry of Guatemalan nationals, including unaccompanied minors, into the United States for financial gain, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Justin E. Herdman of the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division. Duran Ramirez is the fourth defendant to plead guilty in connection with a labor trafficking scheme that forced Guatemalan minors to work at egg farms in central Ohio.
According to the defendant’s plea agreement and admissions in court, the defendant, through his company, Haba Corporate Services, contracted to provide labor to Trillium Farms, knowing that the workers were unlawfully present in the United States. He further admitted to knowing that some of the workers were unaccompanied minors who had been coerced or threatened to enter the United States and then housed in an isolated trailer park in Marion, Ohio. In 2013 and 2014, Trillim Farms paid the defendant’s company approximately $6 million for its labor services.
“Motivated by greed, the defendant violated the immigration laws and contributed to the exploitation of vulnerable children who lacked immigration status,” said Acting Assisting Attorney General Gore. “The Department of Justice will use its resources to prosecute individuals who unlawfully victimize others for their own monetary profit.”
“This defendant profited off the desperation of children and their parents and other relatives,” said U.S. Attorney Justin Herdman for the Northern District of Ohio. “He knew some of the workers he delivered to Trillium Farms were underage, in the country illegally and were threatened or coerced. We will continue to work to eliminate human trafficking in all its forms.”
“This defendant, in conspiracy with three other previously convicted individuals, coerced and assisted individuals to enter the United States illegally, many of them children, forcing them to live in deplorable conditions and work for little to no wages,” said Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division. “These reprehensible actions are unacceptable and rest assured the FBI will continue to work with our partners to bring to justice those who engage in human trafficking.”
Duran Ramirez faces a sentence of up to 10 years in prison. His sentencing date has been set for Jan. 7, 2019.
Three other defendants—Aroldo Castillo-Serrano, of Guatemala, Ana Angelica Pedro-Juan, of Guatemala, and Conrado Salgado-Soto, of Mexico—previously pleaded guilty for their roles in the same labor trafficking scheme. Castillo-Serrano, the lead smuggler and primary enforcer, was sentenced to 188 months in prison; Pedro-Juan, who oversaw the victims in Ohio, was sentenced to 120 months; and Salgado-Soto, a subcontractor hired by Duran Ramirez, was sentenced to 51 months.
Those defendants admitted to recruiting workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. During their sentencing, Senior United States District Judge James G. Carr found that they had threatened workers with physical harm and withheld their paychecks in order to compel them to work. Eight minors and two adults were identified as victims of the scheme.
Three additional defendants, including Duran Ramirez’s son, pleaded guilty for their roles in encouraging the workers’ illegal entry into the United States.
This case is being investigated by the FBI’s Cleveland Office, Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Chelsea Rice.