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17 September 2018
Corrections Officer Sentenced for Scheme to Smuggle Opioids into Prison for InmateRead the Press Release
BOSTON – A corrections officer at the Massachusetts Correctional Institute facility in Norfolk (MCI-Norfolk) was sentenced today in federal court in Boston for a conspiracy to smuggle Suboxone strips into the facility for an inmate.
William Holts, 51, of Pawtucket, R.I., was sentenced by U.S. District Court Judge Indira Talwani to time served in prison, two years of supervised with the first three months to be served in home confinement, and ordered to pay a fine of $2,000. Holts previously forfeited a 2006 M35 Infinity and $1,250 in cash. In July 2018, Holts pleaded guilty to one count of conspiracy to possess a controlled substance.
Beginning around April 30, 2018, Holts advised an inmate, for whom he had smuggled other contraband, that he was willing to smuggle drugs into MCI-Norfolk in exchange for cash. In a series of recorded calls, Holts arranged to meet with a source outside the correctional facility to get the cash and obtain drugs to be smuggled in. Holts agreed to bring in over 100 Suboxone strips in exchange for $2,000 in cash.
According to court documents, Suboxone is a Class III controlled substance intended to treat heroin addiction, but some abuse the drug to get high. It is coveted contraband in prisons across the nation and particularly in New England. Suboxone strips, which dissolve under the tongue, may be tucked behind envelope seams and stamps.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Thomas A. Turco III of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Comic Book Artist Admits Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A comic book artist from Essex County, New Jersey, today admitted distributing thousands of images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Timothy Yates, 31, of West Orange, New Jersey, pleaded guilty today before Senior U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of distribution of child pornography. Yates was previously arrested and charged by complaint on April 4, 2018.
According to documents filed in this case and statements made in court:
Yates is a comic book artist and the author of a comic book series which features a young female heroine on various adventures. Yates traveled to locations across the country to promote his work and attend comic book conventions, which were frequently attended by children.
On several instances in 2016 and 2017, undercover law enforcement officers accessed a publicly available peer-to-peer network and observed a computer with a certain Internet Protocol address logged into the network that was sharing child pornography images and videos. The computer and IP address were associated with Yates. Law enforcement officers executed a search warrant at the defendant’s residence and discovered electronic devices belonging to Yates, which contained thousands of images and videos of child sexual abuse.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Jan. 14, 2019.U.S. Attorney Carpenito credited special agents with U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael; inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; the West Orange Police Department, under the direction of Chief James P. Abbott; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
Child Predator Sentenced to 100 Years’ ImprisonmentRead the Press Release
PHILADELPHIA – Lawrence Jamieson, 59, of Malvern, Pennsylvania was sentenced today to 100 years in federal prison for sexual abuse of a minor girl, manufacture of hundreds of sexually explicit videos and images of his abuse, and the collection of more than 14.4 million images of child pornography that he downloaded from the Internet.
Jamieson began collecting images of children being sexually assaulted approximately 15 years ago. He collected some of the most demented images imaginable of toddlers and infants being sexually assaulted by adult men and women, and in some cases, by animals.
During the same time that he was trafficking in child pornography, Jamieson’s conduct escalated, and he engaged in a plot to sexually assault a victim child who was in his care. Jamieson was well acquainted with the victim; he knew she had been diagnosed on the Autism spectrum and suffered from learning disabilities and mental health issues. He targeted this underage girl by first recruiting another adult male to pose as a teenaged boy so that they could dupe the victim into believing he was her boyfriend and gain her trust. The “boyfriend” then engaged her in sexual activity, photographed and videotaped her, and distributed the videos and images back to Jamieson. Her images were also distributed out to others over the Internet.
“Jamieson is the worst of the worst type of criminal – a child predator who derives satisfaction from abusing society’s must vulnerable members,” said U.S. Attorney McSwain. “The details in this case are horrific. This defendant amassed a collection of child pornography that exceeded 14.4 million images, reportedly the largest collection in Pennsylvania. And on top of that, he concocted and carried out a plan to sexually abuse a child within his care – someone he knew was susceptible to his influence. For more than 18 months, Jamieson and his co-defendant repeatedly lied to his victim and engaged in an unconscionable course of sexual abuse and exploitation.”
U.S. Attorney McSwain continued, “When it comes to protecting children from child predators, our actions will be swift and severe. Predators, take note: No matter who you are or where you come from, we will hunt you down, prosecute you, and put you in a jail cell for a very long time.”
In addition to the term of imprisonment, the court ordered that the defendant have no contact with the victim or her family for the rest of his life.
The case was investigated by the FBI, the Willistown Police Department, and the Chester County District Attorney’s Office. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Carson City Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
RENO, Nev. – A Carson City resident who possessed more than 125 images and 8 videos of child pornography was sentenced today by U.S. District Judge Larry R. Hicks to 120 months in federal prison and lifetime supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Ryan Ray Tetirick, 44, previously pleaded guilty to one count of possession of child pornography. In addition to the prison term, he is required to register as a sex offender upon his release from prison.
According to information in the plea agreement, on April 19, 2017, law enforcement members from the Northern Online Child Exploitation Task Force executed a search warrant at Tetirick’s residence. During the execution of the search warrant, Tetirick agreed to a consensual interview with law enforcement officers. During the interview, he admitted he downloaded and possessed child pornography in the past, but denied doing so recently. He also stated his electronic files were password protected and that he used a “cleaner” software program to delete files. He provided a username and password for officers to search his computer. A forensic examination of his computer and other electronic devices revealed approximately 125 images and 8 videos of child pornography, including infants. One computer and one external hard drive were seized.
The case was investigated by the Northern Online Child Exploitation Task Force which includes members from the FBI, ICE-HSI, the Nevada Attorney General’s Office, the Carson City Sheriff’s Office, and the Washoe County Sheriff’s Office. Assistant U.S. Attorney James E. Keller prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) CyberTipline at www.cybertipline.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Broken Bow Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Johnny Ray Webb, age 51, of Broken Bow, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about March 14, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the McCurtain 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.
Boulder, Colorado, Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jorge Barron, age 21, of Boulder, Colorado, 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)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about April 24, 2018, within the Eastern District of Oklahoma, defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The charges arose from an investigation by the Henryetta Police Department and the Drug Enforcement Administration.
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 Rob Wallace represented the United States.
Bothell Man Pleads Guilty to Sex Crimes Involving 14-Year-Old ChildRead the Press Release
A 24-year-old Bothell, Washington man pleaded guilty today in U.S. District Court in Seattle to two federal charges related to his sexual molestation of a 14-year-old child, announced U.S. Attorney Annette L. Hayes. THOMAS MAHONEY faces a mandatory minimum sentence of 10 years in prison when sentenced by U.S. District Judge John C. Coughenour on December 18, 2018. MAHONEY was arrested in October 2017. Today he pleaded guilty to travel with intent to engage in a sexual act with a minor and enticement of a minor.
According to records filed in the case, Facebook notified the National Center for Missing and Exploited Children (NCMEC) about sexual conversations and photos being exchanged between an adult and child over its network. The information was provided to law enforcement in California where the young victim was located, and to the Seattle Internet Crimes against Children Task Force (ICAC) which traced the internet address to MAHONEY. Law enforcement served a court authorized search warrant on MAHONEY’s residence and obtained his electronic devices for analysis. Travel records confirm information from the victim that MAHONEY traveled to California three times in 2016 and 2017 to have sex with the victim. The victim was approximately 13- years-old when MAHONEY ‘friended’ the victim on Facebook and was 14 years-old when MAHONEY initiated sex. MAHONEY made videos of the sexual contact, thereby producing child pornography.
Under the terms of the plea agreement, both the prosecution and defense will recommend a ten-year prison term. The recommendation does not bind Judge Coughenour. The maximum penalty is life in prison. MAHONEY will be required to register as a sex offender.
The case is being investigated by Homeland Security Investigations (HSI) in coordination with the Seattle Police Department and the Internet Crimes Against Children Task Force (ICAC). The Contra Costa County California District Attorney’s Office, the U.S. Attorney’s Office in the Northern District of California, and the Snohomish County Sheriff’s Department are key partners in the investigation.
The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson, with assistance from Assistant United States Attorney Christina McCall of the Northern District of California. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Beverly Hills Plastic Surgeon Sentenced to Year in Federal Prison for Concealing Offshore Bank Account from Federal OfficialsRead the Press Release
LOS ANGELES – A Beverly Hills plastic surgeon was sentenced today to one year and one day in federal prison for failing to disclose to federal authorities a foreign bank account in which he deposited some of the nearly $1.3 million he earned while working in Dubai.
Marc Edward Mani, 50, was sentenced by United States District Judge R. Gary Klausner.
Mani pleaded guilty In July 2017 to one count of failing to file a foreign bank and financial account report (FBAR) for the 2013 tax year. When he pleaded guilty, Mani admitted failing to file FBARs with the Treasury Department for both the 2012 and 2013 tax years. He also admitted that he failed to report on his federal income tax returns the vast majority of the approximately $1.28 million in foreign income he earned in Dubai for the years 2012, 2013 and 2014.
Mani began to travel to Dubai in 2011 to perform plastic surgery for a foreign medical center. Mani’s accountant, who was aware that Mani was earning foreign income, informed him that he would be required to report to U.S. authorities any foreign bank accounts under his control. In 2012, Mani opened an account with a Dubai-based bank and began depositing income he earned from abroad into this account. He liquidated the account in 2013, when it held more than $400,000 in foreign currency.
United States citizens who have an interest in or authority over a financial account in a foreign country with assets over $10,000 are required to disclose and report the foreign financial account to the United States Department of Treasury for each year the financial account exists.
This case is the product of an investigation by IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorney James C. Hughes of the Tax Division.
Another Pharmacist Pleads Guilty Relating to Largest Health Care Fraud Case Ever in MississippiRead the Press Release
Hattiesburg, Miss. – Marco Bisa Hawkins Moran, 45, of Raymond, pled guilty Thursday before U.S. District Judge Keith Starrett to a Criminal Information outlining his role in a more than $22 million dollar scheme to defraud TRICARE, the health care benefit program serving our nation’s military, veterans, and their respective family members, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, IRS-Criminal Investigation Acting Special Agent in Charge Thomas Jay Holloman, III, and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s Southeast Field Office.
Spell will be sentenced by Judge Starrett on November 27, 2018, at 9:45 a.m.
From approximately May 2014 through January 2016, Moran co-owned and operated Medworx Compounding, LLC inMadison County, Mississippi, and Custom Care Pharmacy, LLC in Hinds County, Mississippi. During this time, Moran and other co-conspirators mass-produced high-yield compounded medications on behalf of the pharmacies. Rather than formulating compounded medications based on the individualized needs of patients, formulas were selected to maximize profit based upon reimbursements from TRICARE and other health care benefit programs.
Moran’s pharmacies submitted fraudulent claims to TRICARE and other health care benefit programs. In order to further their scheme, Moran and his co-conspirators took measures to conceal their waiver of beneficiary copayments from TRICARE and other health care benefit programs. Acting on behalf of Medworx and Custom Care, Moran and his co-conspirators paid kickbacks and bribes to marketers and physicians in order to obtain prescriptions for compounded medications from prescribers for beneficiaries who were covered by the most lucrative health care benefit programs, including TRICARE, irrespective of whether the compounded medications were medically necessary for the treatment of beneficiaries.
As a result of this fraudulent activity, Medworx and Custom Care submitted fraudulent claims to TRICARE and other health care benefit programs totaling approximately $22,068,144.00.
This case has been designated as a related prosecution to cases charged earlier this year in the Southern District of Mississippi. Thomas Edward Spell, Jr., a licensed pharmacist, pled guilty on August 9, 2018, to conspiracy to commit health care fraud regarding a scheme to defraud health care benefit programs, including TRICARE, of more than $243 million. To date, a total of 12 people have been charged and 9 convicted in the compounding pharmacy scheme in the Southern
District of Mississippi. The investigation is ongoing and prosecutions are occurring nationwide to include California, Tennessee, Arkansas, and Connecticut.
The case is being prosecuted by Assistant United States Attorney Mary Helen Wall and U.S. Department of Justice trial attorneys Katherine Payerle and Sean Welsh.
15 September 2018
Jury Convicts Oil Company Owner of FraudRead the Press Release
OKLAHOMA CITY – A jury has convicted KEVIN WIECK, 52, of Cromwell, Oklahoma, on ten counts of wire fraud and five counts of money laundering.
On July 3, 2018, a federal grand jury returned a fifteen-count superseding indictment against Wieck, who owned and operated Wieck Oil Company, LLC. According to the indictment, Wieck’s fraudulent scheme involved two types of oil wells: three "vertical" wells and a "horizontal" well. Wieck sold working interests in the vertical wells that supposedly guaranteed investors percentages of oil revenue. He allegedly kept the majority of the money for himself rather than paying investors. Wieck sold and attempted to sell percentages of his supposed ownership interest in the horizontal well, when he in fact never actually owned—and therefore had no right to sell—any portion of that well. The five money laundering counts involved transfers of criminal proceeds in amounts larger than $10,000 between bank accounts. According to the indictment, Wieck fled to Mexico around late August 2014. He has been in the custody of the U.S. Marshals Service since April 11, 2018.
Trial began on September 11, 2018. Eight investors from Tulsa, Edmond, Michigan, Illinois, and elsewhere testified about Wieck’s false promises and misrepresentations in connection with the vertical wells. These investors had invested cash, co-signed loans with Wieck, or provided in-kind services such as drilling, road work, and construction on the wells at reduced rates. Two investors testified that Wieck solicited investments in the horizontal well. A local energy company executive who later assumed control of the three vertical wells confirmed that Wieck had a right to participate in the horizontal well but had never paid to exercise that right. He further explained that Wieck filed oil and gas assignments late and failed to secure division orders to pay investors directly. Instead, he exercised a "quick pay" option, which funneled all revenue into his own bank accounts.
An FBI forensic accountant confirmed during trial that Wieck received more than $1.17 million in revenue and—even after production and operating costs—pocketed at least $600,000, in addition to the value of investors’ in-kind contributions. Wieck’s ex-wife corroborated that she and Wieck splurged on hotel stays, vacations, and large purchases when investments came in.
After three days of testimony, a jury deliberated for approximately two hours before returning guilty verdicts on all counts on September 14.
Sentencing will take place in approximately 90 days. Wieck could receive twenty years in prison on each count of mail fraud and ten years on each count of money laundering. Each conviction could also carry a fine of up to $250,000 and supervised release of up to three years. He will also be required to pay restitution to victims of his fraudulent scheme.
This case is the result of an investigation by the FBI. Assistant U.S. Attorneys Julia E. Barry and William Farrior are prosecuting the case.
Reference is made to court filings for further information.
14 September 2018
“Broker” Sentenced to Two Years in Prison for Bribing DMV Employees to Alter Records so Unqualified Drivers Could Receive Commercial Driver LicensesRead the Press Release
SACRAMENTO, Calif. — Damanpreet Singh, 33, of Los Angeles, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years in prison for conspiring to commit bribery, identity fraud and unauthorized access of a computer, U.S. Attorney McGregor W. Scott announced.
According to court documents, between April 2016 and July 2017, Singh conspired with two DMV employees, Lisa Terraciano and Aaron Gilliam, who, in exchange for bribe payments, would alter DMV records to fraudulently show that individuals had passed DMV tests needed to obtain commercial licenses, which the applicants had not taken or passed. At least 60 individuals’ DMV records were fraudulently updated as a result of Damanpreet Singh’s conspiracy with the DMV employees. Singh received approximately $90,000 for his role in the conspiracy, some of which he in turn paid to the corrupt DMV employees.
Terraciano and Gilliam have pleaded guilty to conspiring to commit bribery, identity fraud and unauthorized access of a computer and are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on October 5, 2018.
This case is part of a series of ongoing investigations by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust are prosecuting the cases.
Wisconsin Man in State Custody Indicted for Hate Crime by Threatening Jewish Community Center in Whitefish Bay, WisconsinRead the Press Release
WASHINGTON – The Justice Department today announced that a federal grand jury in Wisconsin returned an indictment charging Chadwick Grubbs, 33, with obstruction and attempted obstruction of the free exercise of religious beliefs, by mailing threats on three separate dates in May to the Harry and Rose Samson Family Jewish Community Center in Whitefish Bay. In addition to three religious obstruction charges, the indictment also charges Grubbs with three counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive.
The defendant is currently being held in state custody on separate cases.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The FBI is leading the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting this case.
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For additional information contact:
Public Information Officer, Dean Puschnig, 414-297-1700
Winsted Man Pleads Guilty to Selling Heroin to Teen Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTHONY HUNT, 19, of Winsted, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on June 2, 2017, at approximately 5:41 p.m., members of the Connecticut State Police responded to a family-owned boat in Washington, Connecticut, on the report of a 17-year-old male in cardiac arrest. Attempts to revive the victim were not successful and he was pronounced deceased. Law enforcement officers seized various drug and non-drug evidence from the boat, including suspected heroin, miscellaneous pharmaceutical pills and an iPhone.
The State of Connecticut Medical Examiner determined that the victim died from toxicity associated with a number of controlled substances, including heroin and alprazolam (Xanax).
The investigation, which has included witness interviews and analysis of the seized iPhone, revealed that HUNT sold heroin and Xanax to the victim between May 17 and June 1, 2017, and that the victim traveled to Winsted to purchase drugs from HUNT the day before the victim died.
HUNT was arrested on a criminal complaint on March 22, 2018.
HUNT is scheduled to be sentenced by U.S. District Judge Vanessa L Bryant on December 12, 2018, at which time HUNT faces a maximum term of imprisonment of 20 years. He is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration New Haven Task Force and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
West Hartford Man Admits Downloading Child Pornography from Dark Web SiteRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, today announced that MARK ROHRER, 37, of West Hartford, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to one count of receipt of child pornography.
According to court documents and statements made in court, ROHRER had a user account on a dark web internet site that promoted child pornography. Using Bitcoin, ROHRER downloaded images and videos of child pornography from the website in January 2016.
Images of child pornography were found on ROHRER’s home computers after a court-authorized search of his residence in April 2018.
ROHRER faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years when he is sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport. A sentencing date is not yet scheduled.
ROHRER is released on a $50,000 bond pending sentencing.
This matter is being investigated by Homeland Security Investigations with assistance of the West Hartford Police Department and Connecticut State Police. The case is being prosecuted by Sarah P. Karwan.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Union County, New Jersey Man, Sentenced to Two Years in Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced to 24 months in prison for his role in a scheme to steal money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Craig Carpenito announced today.
Armand Joseph, 46, of Linden, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with conspiring to defraud the United States and theft of government funds. Judge Wigenton imposed the sentence on Sept. 13, 2018, in Newark federal court.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
Beginning in January 2012, members of the conspiracy obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking refunds to which they were not entitled. They directed the checks to addresses in New Jersey that they controlled so they could receive them. Joseph used his position as a teller at a check-cashing business to cash checks for the conspirators.
In addition to the prison term, Judge Wigenton sentenced Joseph to three years of supervised release and ordered him to pay restitution of $247,344, and to forfeit the same amount.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur in Newark;, inspectors with the U.S. Postal Service Office of Inspector General, under the direction of Inspector in Charge James Buthorn; and Carl Riley, Public Safety Director, Plainfield Police Division, Criminal Investigation Bureau, with the investigation leading to today’s charges and arrests.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division, Newark.
Defense counsel: Paul Condon Esq., Jersey City, New Jersey
USAO NDTX Weekly Roundup - 9/13/18Read the Press Release
SENTENCING – Nemelee Jiao, 48
On September 6, Nemelee Jiao of Irving, TX was sentenced to more than 8 years in federal prison for her role in operating a $3.4 million Ponzi-scheme investment fraud. In December 2017, Jiao pleaded guilty to one count of wire fraud after FBI agents identified 41 victims who invested in fake securities related to two schools in the Philippines.SENTENCING – Mark Stein, 38
On September 10, Mark Demetri Stein, the 38-year-old final defendant in a high-profile north Texas “foreclosure rescue” case was sentenced for his role in the scheme, which swindled nearly a quarter of a million dollars from at least 70 homeowners facing foreclosure. Stein, of Carrollton, Texas – who pleaded guilty in April to one count of mail fraud – was sentenced to 6 years in prison and ordered to pay $215,138 in restitution to homeowner victims. Release here.SENTENCING -- Sergio Gonzalez, 34
On September 10, Sergio Guadalupe Gonzalez was sentenced to more than 3 years in federal prison for his role in a cocaine distribution conspiracy. In March, Gonzalez pleaded guilty to conspiracy to possess with intent to distribute cocaine, after the FBI initiated an investigation into several DFW subjects’ importation and distribution of cocaine and methamphetamine.SENTENCING – Shetoia Mitchell, 31
On September 10, Shetoia Mitchell was sentenced to nearly 3 years in federal prison for her role in an attempted bank robbery. In February, Mitchell pled guilty to an attempt to commit a bank robbery on July 11, 2017, but was believed to have actually committed four prior robberies in the summer of 2017, in which she wore a purple burka-style covering and red running shoes. The FBI and the Dallas Police Department investigated.INDICTMENT* – Richard Lein, 35 & Marcus Pierson, 47
On September 11, a federal grand jury indicted Richard Lein and Marcus Pierson on drug trafficking charges stemming from DEA’s seizure of almost three kilos of methamphetamine. If convicted, Lein faces up to 20 years imprisonment, while Pierson faces a minimum of 10 years and up to life for the drug charges and a minimum of 5 years and up to life for possessing a firearm in furtherance of a drug trafficking crime.INDICTMENT* – Richard Blankenship, 32
On September 11, a federal grand jury indicted Richard Blankenship of Lewisville on felon in possession of a firearm and drug trafficking charges. A formerly convicted felon, Blankenship allegedly possessed more than 50 grams of methamphetamine, baggies and a scale, along with a .45 caliber pistol. If convicted, he faces 10 years to life in federal prison. The Drug Enforcement Agency-High Intensity Drug Trafficking Areas (“HIDTA”) investigated the case.INDICTMENT* – Chelsea Williams
On September 11, a federal grand jury indicted Chelsea Shanae Williams of Dallas for possession of cocaine with the intent to distribute. If convicted, Williams faces up to almost 6 years in federal prison. The ATF and Dallas Police Department investigated.INDICTMENT* -- Zachery Leatch, 24 & Tara Jones, 37
On September 11, a federal grand jury indicted Leatch and Jones, of Dallas, for possession of a firearm by a prohibited person and possession of a firearm in a school zone. The defendants, both convicted of prior felonies, allegedly brought a .40 caliber pistol into the gym of the Thompson Elementary School in Mesquite during a youth basketball game. If convicted, they face up to 120 months in federal prison. Mesquite PD and ATF investigated the case.SENTENCING – Israel De la Cruz Sotelo, 42
On September 13, Israel De la Cruz Sotelo, also known as “Rale,” was sentenced to 12 ½ years in prison for his role in a methamphetamine and marijuana conspiracy. After being extradited from Mexico, De la Cruz Soleto pled guilty in November and December to federal charges. De la Cruz Sotelo’s case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCDETF). The DEA, Dallas Police Department, and Garland Police investigated; U.S. Marshals, CBP, ICE, and Homeland Security Investigations (HIS) assisted.INDICTMENT* -- Demoushae & Tashonna Marsh
On Sept. 14, the straw purchasers of a gun used to murder an innocent man appeared in federal court, charged with making false statements during the acquisition of a firearm. Sisters Demoushae and Tashonna Marsh allegedly purchased two 9-millimeter Glock pistols from Academy Sports + Outdoors, each claiming on her application she was the “actual buyer” of the firearm, while knowing the guns were intended for someone else. Release here.* An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
U.S. Attorney’s Office Celebrates First RespondersRead the Press Release
WHEELING, WEST VIRGINIA – Families from across the Ohio Valley will have the chance to see their favorite emergency response, military and construction vehicles up close this weekend, thanks to the United States Attorney’s Office, Cabela’s, first responders, and other businesses in our community.
United States Attorney Bill Powell proud to announce the third “Meet and Greet the Safety Fleet” event at the Highlands in Triadelphia. This event offers a chance for children and their families to meet their local law enforcement and first responders and “touch a truck.” Participants can sit in their favorite vehicles, take pictures, and explore.
“We see this event as an important way to connect families and those that keep them safe in their communities. Children will have the opportunity to have personal and positive interaction with law enforcement, first responders, and more,” said Powell.
The event is open and free to the public. It will be held Saturday, September 15, from 10 a.m. to 2 p.m. at Cabela’s in Triadelphia. There will be character appearances and a special appearance of AirEvac’s medical helicopter (weather permitting).
U.S. Attorney's Office Hosts "Addiction and Suicide: Communities in Crisis" ConferenceRead the Press Release
SIOUX FALLS, SD – United States Attorney Ron Parsons announced that the U.S. Attorney’s Office for the District of South Dakota, together with Avera Health, hosted a conference on “Addiction and Suicide: Communities in Crisis” on September 6, 2018 at the Sioux Falls Convention Center.
One of the highest priorities of the United States Department of Justice, as outlined by Attorney General Jeff Sessions, is to reduce drug overdose deaths. “We are currently facing an addiction crisis of historic proportions: 64,000 Americans lost their lives to drug overdoses in 2016, the highest drug death toll and fastest increase in American history. In 2017, 72,000 American lost their lives to drug overdoses. That’s almost half of the population of Sioux Falls – vanishing in a single year. For Americans under the age of 50, drug overdose is now the leading cause of death. That wasn’t true even five years ago,” said U.S. Attorney Ron Parsons. “These are not just numbers – they are moms, dads, daughters and sons, spouses, friends, and neighbors. Addiction and suicide touch all levels of society, in every part of our state: large cities, small towns, Indian reservations, and rural areas alike.”
Suicide is also a growing problem across the nation and in South Dakota. “The state Department of Health reported 192 suicide deaths in South Dakota last year – the highest number ever recorded in the state. Suicide is third highest cause of death for children ages 5-14 in the state, and the second highest cause of death for young adults ages 15-24,” said Deb Fischer-Clemens, Senior Vice President for Public Policy at Avera Health. “Addiction and suicide are interrelated problems that are hitting right in the heart of America, right where we live.”
The keynote speaker for the conference was Ryan Leaf, former NFL player and collegiate football coach, who experienced addiction to prescription opioids and now is a voice for recovery, with a mission to reach anyone in need of hope.
More than 400 conference attendees also heard stories from individuals who had personal or family experience with the tragedies of addiction, depression and suicide. U.S. Attorney Parsons moderated a panel on Drug Crisis Intervention and Prevention with Dr. Benjamin Aaker, Emergency Medicine Specialist with Avera Medical Group, Sioux Falls Police Chief Matt Burns, and Dr. Kenneth Snell, Minnehaha County Coroner and Medical Examiner. In addition, Janet Kittams, President of the Helpline Center, and J.R. LaPlante, Director of Tribal Relations at Avera, moderated panels on the topic of Suicide Crisis Intervention and Prevention in general and from a tribal perspective.
This was the fifth annual conference sponsored by Avera and the U.S. Attorney’s Office to explore issues of justice, well-being and safety in our state and region. Past topics have included human trafficking, living with disabilities, child sexual abuse and the opioid epidemic.
The goal of the conference was to reduce overdose and suicide deaths by opening up a larger conversation between people from all walks of life in South Dakota. Attendees represented the legal system, government, health care, education, social work, ministries and more.
“I hope we can all consider ways in which we can reach out and intervene before that accident, before that arrest, before that overdose, before that suicide attempt or other moment of crisis,” said U.S. Attorney Parsons at the close of the conference. “And that we remember: there is always hope.”
Two Sentenced on Tax ChargesRead the Press Release
PITTSBURGH, PA - A resident of Belle Vernon and a resident of Greensburg, Pennsylvania, have been sentenced in federal court on their convictions of conspiracy and filing a false tax return, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed sentences on Robert Richards and Jennifer Morrison. Richards was convicted of one count of filing a false income tax return, and was sentenced to 4 years’ probation, the first 180 days of which are to be served under home detention. Morrison was convicted of one count of conspiracy to defraud the United States, and was sentenced to two years’ probation, the first 90 days of which are to be served under home detention. Additionally, both Richards and Morrison were ordered to jointly pay $141,732 in restitution and interest to the Internal Revenue Service (IRS), in monthly amounts no less than 10 percent of their individual earnings.
According to information presented to the court, Richards and Morrison, conspired to defraud the United States and the IRS during the period January 2006 to April 2010, by impeding the IRS in the collection of income taxes due from the operation of Richards’ used car dealerships in Greensburg, Jeannette, and McKeesport. Richards secreted his income from the IRS by placing his dealerships and more than 30 business bank accounts, through which he funneled proceeds of his business, in the names of nominee owners. One such nominee was Jennifer Morrison, who handled all of the business bookkeeping and who worked in tandem with Richards to funnel more than $1 million in gross business receipts through the nominee accounts. Richards and Morrison extracted funds from the business accounts for personal expenditures.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
Pennsylvania State Police and the Internal Revenue Service conducted the investigation that led to the successful prosecution of Richards and Morrison.
Two North Sound Men Indicted for Trafficking FentanylRead the Press Release
Two men were charged today in a multi-count indictment for their scheme to traffic fentanyl disguised as fake oxycodone pills in Snohomish, Skagit and Whatcom Counties, announced U.S. Attorney Annette L. Hayes. BRADLEY WOOLARD, 39, of Arlington is charged in all five counts of the indictment alleging drug distribution and illegal firearms possession. GRIFFIN THOMPSON, 30, of Bellingham is charged in two of the counts: conspiracy and possession of fentanyl with intent to distribute. THOMPSON was arrested last night and will appear in U.S. District Court at 2:00 today. WOOLARD was arrested as he attempted to cross into the U.S. from Mexico on September 1, 2018. He remains in custody in San Diego and will likely make his appearance in the Western District of Washington later this month.
“Fentanyl is an incredibly potent and dangerous drug that has been linked to overdose deaths across the country,” said U.S. Attorney Annette L. Hayes. “To make matters worse, the fentanyl in this case has been pressed into pills meant to look like the prescription drug oxycodone. Along with all the usual and terrible risks associated with illegal drugs, these pose the added problem of appearing to be one thing – oxycodone – when they are something altogether different, and even more dangerous.”
According to records filed in the case, on July 27, 2018, acting on a tip, law enforcement observed THOMPSON as he traveled from Bellingham to WOOLARD’s Arlington home. After THOMPSON spent a short time at the house, he began the return drive to Bellingham. After a traffic stop, a drug detection dog alerted to THOMPSON’s car and investigators found three bags each containing 1,000 fake oxycodone pills. THOMPSON also had more than $8,000 in cash.
Law enforcement obtained multiple court-authorized search warrants for WOOLARD’s home. On July 28, 2018, they found more than 10,000 fentanyl pills designed to look like 30 mg oxycodone prescription narcotic. The pills ultimately tested positive for fentanyl. The pills are pale blue in color and have “M” printed on one side and “30” on the other side. Over the course of multiple searches law enforcement seized $400,000 in cash from two safes, another $270,000 from behind the water heater and tool chest in the shop area, and an additional $200,000 hidden in the dishwasher. Additional searches turned up $110,000 in cash that had been hidden behind drywall in the house, along with jars of gold coins. Investigators also discovered a hidden room containing 29 firearms ranging from handguns to assault rifles, including three silencers. The room also contained a large amount of ammunition.
Based on the seized firearms, WOOLARD is charged with being a felon in possession of firearms due to his 2004 felony conviction in Island County for use of a building for unlawful drug activity. He is also charged with possession of firearms in furtherance of drug trafficking.
Conspiracy and possession of fentanyl with intent to distribute is punishable by a mandatory minimum ten years in prison and up to life in prison. Being a felon in possession of a firearm is punishable by up to ten years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five- year prison sentence that is in addition to the sentence for the drug trafficking activity.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation is being led by the Drug Enforcement Administration (DEA) with assistance from the Snohomish Regional Drug and Gang Task Force (SRDGTF) and the Whatcom County Drug and Gang Task Force.
The case is being prosecuted by Assistant United States Attorneys Kate Vaughan and Karyn Johnson.
Three Brothers Charged in Conspiracy to Distribute More than 20,000 Tablets of FentanylRead the Press Release
Assistant U. S. Attorney Orlando B. Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – September 14, 2018
SAN DIEGO – Jose Atalo Felix-Beltran, Arturo Felix-Beltran (U.S. citizens), and Osvaldo Felix-Beltran (U.S. resident) living in Indio, California, were arraigned in federal court today on charges that they conspired to distribute over 20,000 tablets of fentanyl. These three defendants are brothers who were arrested together on September 13, 2018, in El Centro, California,
According to a federal criminal complaint, these three brothers drove together to a restaurant located in El Centro, California, where they intended to sell 20,000 tablets of fentanyl to a purchaser who, unbeknownst to them, was an undercover Special Agent with the Drug Enforcement Administration. Two of the brothers attempted to flee the scene, but were apprehended following a brief foot chase. The third brother was not able to flee and, following a brief period of forcible resistance, was ultimately taken into custody.
This arrest followed a series of prior transactions where the brothers, together and at times alone, sold undercover DEA agents additional tablets of fentanyl.
At the brothers’ initial appearance in El Centro today before U.S. Magistrate Judge Ruth Bermudez Montenegro, the United States requested detention based on risk of flight. Judge Bermudez Montenegro scheduled a detention hearing for September 21, 2018 at 1:30 p.m. and a preliminary hearing for September 27, 2018 at 1:30 PM.
The fentanyl tablets that were to be sold to undercover agents on September 13, 2018 (depicted below), were tablets of fentanyl manufactured to look like 30mg tablets of oxycodone. The combined weight of the tablets seized from the three brothers on September 13, 2018, was approximately 2.23 kilograms of fentanyl (Schedule II). The retail street value of these fentanyl tablets is estimated to be $600,000.
“This is a significant seizure and I’m very happy that thousands of deadly pills will not make it to the streets,” said U.S. Attorney Adam Braverman. “But we are seizing fentanyl at an alarming rate. Despite our relentless efforts to interdict this dangerous drug and educate the community, people are still risking their lives. The next pill you take could very well be your last. Don’t do it.”
“We are at a cross road - We can either continue to let the drug cartels destroy American lives with deadly pills or we can commit to raising the intensity of our war against foreign criminals who profit from destroying American lives,” said DEA Special Agent in Charge Karen Flowers. “Drugs are deadly and fentanyl has changed the game. We are no longer dependent on the coca or the poppy plant. We can create chemicals to mimic whatever affect we desire. Our drugs are not Non-GMO certified. They are all engineered in a laboratory. They are cheap, easy to get and manufacture. That line of coke, no longer is just cocaine. That hit of smack is hyped up with fentanyl. Crystal is not in your dining room, it is in your arm. They are all potentially laced with a profit-induced additive called fentanyl. No one is strong enough to win that battle. It wins, you die.”
DEFENDANTS Case Number 18MJ10424
Jose Atalo Felix-Beltran, Age: 27 Indio, CA
Arturo Felix-Beltran Age: 30 Indio, CA
Osvaldo Felix-Beltran Age: 19 Indio, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances (Felony) – Title 21 U.S.C. § 841 and 846
Maximum penalty: Life imprisonment and $10,000,000.00 fine.
AGENCIES
Drug Enforcement Administration; (Imperial County and Riverside);
Imperial County Sheriff’s Office;
United States Border Patrol;
Imperial County Probation Department;
El Centro Police Department;
United States Customs and Border Protection;
Homeland Security Investigations;
Drug Enforcement Administration - San Diego Air-wing; and
United States Attorney’s Office
Imperial County District Attorney’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is the result of 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 high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Texas Man Convicted of Tax EvasionRead the Press Release
A federal jury in the Western District of Texas convicted a San Antonio man today of three counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John F. Bash for the Western District of Texas.
According to court documents and evidence presented at trial, between October 2000 and December 2013, Robert Steven Powell evaded the payment of more than $900,000 in income taxes for the years 1999 through 2009. Powell evaded payment of his taxes by submitting false Internal Revenue Service (IRS) Forms W-4 to his employer, which falsely claimed that he was exempt from federal tax withholding. Powell also placed a house and recreational vehicle in nominee names and attempted to conceal his physical address from the IRS by obtaining identification documents from multiple states using false personal residence addresses.
Powell evaded the assessment of his 2010 and 2011 tax liabilities by maintaining, rather than correcting, false documents submitted to his long-term disability payer, on which he falsely claimed to be exempt from federal income tax withholding. Moreover, Powell did not file a tax return for those years, despite an obligation to do so. In total, the government’s evidence established a tax loss of more than $900,000.
Sentencing has not yet been scheduled. Powell faces a statutory maximum of five years in prison on each count, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney John Bash commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney Bill Harris and Trial Attorney Gregory Bailey of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and and its enforcement efforts may be found on the division’s website.
Tamarac Resident Sentenced to over 12 Years in Prison for Being a Felon Unlawfully in Possession of a Loaded FirearmRead the Press Release
Yesterday, a Tamarac resident was sentenced to over 12 years in prison by United States District Senior Judge James I. Cohn, for being a felon unlawfully in possession of a loaded firearm while being the subject of a Domestic Violence Protection Order.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Terry Cadet, 34, of Tamarac, Florida, previously pled guilty to being a felon in possession of a firearm and ammunition, while also being the subject of a Domestic Violence Protection Order that prohibited the defendant from possessing any firearm or ammunition. The defendant was sentenced to a total of 151 months in prison, to be followed by 3 years of supervised release.
According to the court record, on February 18, 2018, BSO Deputies responded to a domestic violence call in Hallandale Beach, Florida. During the course of Cadet’s arrest for domestic violence, BSO deputies discovered a 9mm pistol, with an obliterated serial number, secreted on Cadet’s person. The firearm was loaded with ten rounds of ammunition. At the time of his arrest, Cadet was a convicted felon and thereby prohibited from being in possession of a firearm or ammunition. In addition, a pending Domestic Violence Protection Order required Cadet to have previously surrendered any firearms and ammunition in his possession to the Broward County Sheriff’s Office.
This case stems from Project Safe Neighborhoods (PSN), a program that brings 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.
Mr. Greenberg commended the investigative efforts of the ATF and BSO in this matter. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
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.
Suspected Meth Trafficker Arrested with Huge Haul of Drugs in CarRead the Press Release
Assistant U. S. Attorney Michael Wheat (619) 546-8437
SAN DIEGO – Marisol Chavez-Morales was arrested and charged this week with methamphetamine trafficking in connection with the seizure of 156 pounds, one of the largest in recent history in the Southern District of California.
According to a complaint, a confidential source for the Drug Enforcement Administration identified the defendant as a methamphetamine trafficker who had “offered to sell large amounts of methamphetamine and heroin” to the source. At the direction of the agent, the source negotiated with Chavez, who agreed to provide 130 kilograms of meth, 6 kilograms of black tar heroin and 11 kilograms of “China White” heroin for $775,000. They agreed to meet at a San Diego restaurant on September 7, 2018, to exchange the drugs for money.
According to the complaint, DEA agents established surveillance at the restaurant and observed a silver Chevrolet Cruze enter in the parking lot and park next to the source’s vehicle. The driver of the Chevrolet Cruze was later identified as Chavez. Agents approached the vehicle and Chavez and discovered approximately 71.5 kilograms of methamphetamine in the trunk and the back seat. The methamphetamine was separated into different packaging and concealed within both a large tire located in the back seat and a large suitcase and small bag located in the trunk. Additionally, agents found multiple vacuum-sealed brick packages containing suspected heroin contained within several boxes located in the back seat of the Chevrolet Cruze. Chavez was arrested.
During a hearing yesterday, the defendant declined to seek bond. The next court date is scheduled for September 25.
Methamphetamine seized in Chavez’s car on Sept. 7.
DEFENDANTS Case Number 18MJ04833
Marisol Chavez-Morales Age: 34 Highland , CA
SUMMARY OF CHARGES
Possession with Intent to Distribute Methamphetamine – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Mandatory minimum 10 years, up to life imprisonment and $10 million fine.
AGENCY
U.S. Drug Enforcement Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Suburban Pittsburgh Man Brought Ohio Teen to Western PA to Produce Porn Videos that He Sold on the InternetRead the Press Release
PITTSBURGH, PA - A resident of Millvale, Pennsylvania, pleaded guilty in federal court to a charge of producing material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Daniel Kundrat, 35, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti. In connection with the guilty plea, the court was advised that on August 10, 2016, Kundrat traveled to Columbus, Ohio, picked up a 14-year old female with whom he had been communicating, and brought her back to his residence in Millvale where they engaged in sexual activity, including intercourse. Over the course of approximately three weeks, Kundrat persuaded and coerced her into producing videos of their sexual activity, which he then offered for sale, for a nominal sum, over the Internet. Kundrat acknowledged producing sexually explicit videos on August 22, 2016, which he distributed to an undercover law enforcement officer investigating the whereabouts of the minor female.
In addition to the guilty plea, Kundrat acknowledged his responsibility for the remaining counts of the indictment, charging him with traveling with intent to engage in illicit sexual conduct, interstate transportation of a minor for the purpose of engaging in unlawful sexual activity, distribution of material depicting the sexual exploitation of a minor, and possession of material depicting the sexual exploitation of a minor
Judge Conti scheduled sentencing for January 9, 2019, at 3:30 p.m. The law provides for a total sentence of not less than 15 and not more than 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Kundrat remains incarcerated pending sentencing.
Assistant United States Attorney Carolyn Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County Police Department, Allegheny County District Attorney’s Office, and Millvale Police Department conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood Marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Spokane Man Sentenced to 135 Months in Federal Prison for Defrauding Individuals in Connection with Advance Fee SchemeRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Derrick John Fincher, age 48, of Spokane, Washington, was sentenced today after being found guilty by a jury of Conspiracy to Commit Wire Fraud. Chief United States District Judge Thomas O. Rice sentenced Fincher to a 135-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Fincher was also ordered to pay $2,015,000 in restitution to his victims.
According to information disclosed during court proceedings, Fincher and his conspirators, Vassily Anthony “Tony” Thompson and John Patrick Nixon, orchestrated an advance fee fraud scheme that duped their victims into paying $160,000 to $1 million as “show money” or “insurance fees” to purportedly obtain loans of millions of dollars from the Export-Import Bank and other lending institutions. The victims sought these loans for legitimate business ventures the victims were pursing including: a celebrity golf tournament in Coeur d’Alene, Idaho, a movie studio in Montana, and a housing development near Charlotte, North Carolina. In reality, Fincher and his co-conspirators used the victim’s money to pay their own personal living expenses. The victims were defrauded out of $2,015,000.
Joseph H. Harrington said, “Posing as legitimate businessmen, the defendant and his conspirators used false promises to extract significant fees from their victims, but they provided nothing in return. Their promises of loans were empty as they were nothing more than a fraudulent scheme designed to line their pockets. The sentence imposed sends a strong message to others who may engage in similar conduct. I commend the FBI and the Special Agents for their tenacity and dedication in uncovering and investigating this advance fee scheme. The United States Attorney’s Office for the Eastern District of Washington will continue to prosecute aggressively white collar crime occurring in this District.”
The Court previously sentenced Fincher’s conspirators, Thompson and Nixon, to 9-year and 2-year terms of imprisonment, respectively, followed by a 3-year term of court supervision, and ordered them to pay $2,015,000 in restitution.
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation. This case was prosecuted by Scott Jones and Joseph Derrig, Assistant United States Attorneys for the Eastern District of Washington.
Sixteen MS-13 Gang Members Indicted for Assault and Drug TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno returned a five-count indictment Thursday against 16 members and associates of La Mara Salvatrucha (MS-13), Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott for the Eastern District of California announced.
The defendants are charged with assault with a dangerous weapon in aid of racketeering (two counts); conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, and marijuana; and being an alien in possession of a firearm (two counts). The defendants are:
- Denis Barrera-Palma, 24, of Mendota, charged with assault with a dangerous weapon (a pipe) and drug conspiracy;
- Mario Alexander Garcia, 31, of Mendota, charged with drug conspiracy;
- Francisco Lizano, 24, of Mendota, charged with drug conspiracy and alien in possession of a firearm;
- Jefferson Guevara, 19, of Los Angeles, charged with drug conspiracy;
- Ever Membreno, 18, of Mendota, charged with drug conspiracy;
- Edgar Torres-Amador, 21, of Mendota, charged with assault with a dangerous weapon (a pipe);
- Lorenzo Amador, 20, of Mendota, charged with assault with a dangerous weapon (a stabbing instrument) and drug conspiracy;
- Jose Wilson Navarette-Mendez, 21, of Mendota, charged with drug conspiracy;
- Denis Alfaro-Torres, 22, of Mendota, charged with drug conspiracy;
- Santos Bonilla, 26, of Mendota, charged with drug conspiracy;
- Henry Bonilla, 18, of Mendota, charged with drug conspiracy;
- Marvin Villegas-Segovia, 21, of Mendota, charged with drug conspiracy;
- Christian Hidalgo, 21, of Mendota, charged with drug conspiracy;
- Brenda Yajaria Morales, 25 of Mendota, charged with drug conspiracy and alien in possession of a firearm;
- Claudia Lizaola, 39, of San Bernardino, charged with drug conspiracy; and
- Oscar Reyes, 29, of Mendota, charged with drug conspiracy.
According to court documents, the defendants were members of MS-13 operating in Mendota and Los Angeles. MS-13 is a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. Its members span the nation and are active internationally as well. The charges allege that in May 2018, Denis Barrera-Palma and Edgar Torres-Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase their status within, MS-13. They further allege that in August 2018, Lorenzo Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase his status within, MS-13. The charges also allege that all defendants, except Amador-Torres, engaged in a conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and marijuana.
These charges follow initial charges filed via complaint in August 2018, after which most of the defendants were arrested on August 30. As set forth in the complaint, MS-13 allegedly engaged in street level drug sales to fund the gang’s various criminal activities. The gang allegedly would acquire drugs, parse them out among members with a directive that they sell the drugs within a certain period of time and return all proceeds to the gang. Those proceeds would then allegedly be used for a variety of purposes, including funding trips to obtain drugs or commit acts of violence, putting money on the books of incarcerated MS-13 members, sending money to MS-13 members in El Salvador, and obtaining more narcotics to sell. Among the alleged assaults gang members engaged in were the May 2018 pipe attack in front of an elementary school in Mendota and an August 12 stabbing in Mendota. Both events involved MS‑13 members assaulting individuals believed to be members of a rival gang to MS-13.
A number of the defendants are also facing charges in Fresno County Superior Court, including Denis Barrera-Palma and Ever Membreno, who are charged with conspiracy to commit murder with a gang enhancement.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers. Trial Attorney Marianne Shelvey of the U.S. Department of Justice’s Organized Crime and Gang Section, along with Assistant U.S. Attorneys Ross Pearson, Angela Scott, Kathleen Servatius and Kimberly Sanchez are prosecuting this and related cases. Senior Fresno County Deputy District Attorney Dennis Lewis is prosecuting related cases in Fresno County Superior Court.
All defendants, except Lorenzo Amador are in custody. Amador is at large and a warrant for his arrest is outstanding. The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
Six-Time Felon and Illegal Alien SentencedRead the Press Release
ALEXANDRIA, Va. – An El Salvadoran man with no fixed address, who has resided off and on in the United States for over 20 years, was sentenced yesterday to three years in prison for illegally re-entering the United States after deportation and subsequent to a felony conviction.
According to court proceedings, Juan Carlos Garcia Torres, 41, was detained on October 26, 2017, in Fairfax County, Virginia for his sixth DUI arrest. ICE took the defendant into custody on October 30, 2017. The defendant has never gained lawful status in the United States and he was convicted previously in 2011 in the Southern District of Texas for another felony illegal reentry offense. At the time of his arrest on October 26, the defendant had four prior DUI convictions in northern Virginia and six felony convictions overall.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Dennis M. Fitzpatrick and Christopher Cook are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-2.
Sentencings for September 4 - 10, 2018Read the Press Release
YUNIEL AGUILA DARIAS, 36, of Miami, Florida was sentenced by Federal District Court Judge Alan B. Johnson on September 4, 2018 for possession with intent to distribute methamphetamine. Daria was arrested in Benton City, Washington. He received forty-six months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay community restitution in the amount of $900.00. The Wyoming Division of Criminal Investigation and U.S. Department of Homeland Security investigated this case.
JOSE GUADALUPE MORALES-SIMON, 56, of Chilpancingo, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on September 10, 2018 for illegal re-entry of a previously deported alien into the United States. Morales-Simon was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The Office of Homeland Security Investigations investigated this case.
MAXIMILLIANO BERISTAIN-GALICIA, 26, of Calpulalpan, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on September 10, 2018 for illegal re-entry of a previously deported alien into the United States. Beristain-Galicia was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The Office of Homeland Security Investigations investigated this case.
CHRISTINE RENEE MOFFAT, 39, of Casper, Wyoming was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 6, 2018 for conspiracy to distribute methamphetamine. Moffat was arrested in Casper, Wyoming. She received seventy months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay community restitution in the amount of $500.00. The Casper Police Department and the Wyoming Division of Criminal Investigation investigated this case.
Second Man Charged in Alleged Plot to Hijack Internet DomainRead the Press Release
Rossi Lorathio Adams II, also known as “Rossi Adams” and “Polo,” from Cedar Rapids, Iowa, has been charged with one count of Conspiracy to Interfere with Commerce by Threats and Violence. The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.
The Indictment alleges that, in about June 2017, Adams conspired to obtain an Internet domain, doitforstate.com, from E.D., by extortion. That is, it is alleged that Adams conspired to obtain E.D.’s consent to obtain the domain by the wrongful use of force, violence, and fear.
Adams’s arrest follows the arrest, prosecution, and conviction of Sherman Hopkins, Jr. for Interference and Attempted Interference with Commerce by Threats and Violence. In June 2018, Hopkins was sentenced to the statutory maximum sentence, twenty years’ imprisonment, after he pled guilty to the crime of Interference and Attempted Interference with Commerce by Threats and Violence.
If convicted, Adams faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
Adams appeared today in federal court in Cedar Rapids and was released on bond. Adams’s next appearance is set for November 13, 2018.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Cedar Rapids Police Department. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-86-CJW. Follow us on Twitter @USAO_NDIA.
Second Former Glaxosmithkline Scientist Pleads Guilty to Stealing Trade Secrets to Benefit Chinese Pharmaceutical CompanyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Dr. Tao Li, 45, of San Diego, California, pleaded guilty today to conspiracy to steal trade secrets from GlaxoSmithKline (GSK) to benefit a Chinese pharmaceutical company named Renopharma.
Dr. Li and two of his friends, Dr. Yu Xue and Dr. Yan Mei, created Renopharma in Nanjing, China, supposedly to research and develop anti-cancer drugs. In reality, though, Renopharma was used as a repository of stolen information from GSK. Renopharma received financial support and subsidies from the government of China. At the time, Xue was employed as a scientist at GSK working on developing biopharmaceutical products. These products typically cost in excess of $1 billion to research and develop.
Xue sent a substantial number of GSK’s scientific documents, some of which contained GSK trade secrets, to Li and Mei at Renopharma in China. The data contained information regarding multiple biopharmaceutical products under development, GSK research data, and GSK processes regarding the research, development, and manufacturing of biopharmaceutical products. Xue typically sent the documents via e-mail or transferred the documents via portable electronic storage devices. Xue sent these documents to Li and Mei with the intention to convert GSK’s information for their economic benefit. On January 5, 2016, the FBI arrested Li and seized his computer on which they found a number of GSK documents containing trade secret and confidential information which he had received from Xue. Xue previously pleaded guilty on August 31, 2018.
“Dr. Li illegally stole trade secrets to benefit himself and his company, which was financed by the Chinese government,” said U.S. Attorney McSwain. “The lifeblood of companies like GSK is its intellectual property, and when that property is stolen and transferred to a foreign country, it threatens thousands of jobs here in America. Not only is this a serious crime, but it is literally a form of economic warfare against American interests. Such criminal behavior must be prosecuted to the fullest extent of the law.”
“GSK spends top dollar on research and development to bring new medications to market,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The theft of valuable trade secrets threatens products in the pipeline, to the detriment of both the company and the patients those drugs might help. It adds insult to injury when that know-how is diverted for the benefit of a foreign economic rival. The FBI is determined to stand up for the innovators creating products that improve people’s lives, by investigating and holding accountable those who would steal trade secrets.”
Tao Li is scheduled to be sentenced on January 4, 2018 before the Honorable Joel H. Slomsky. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and Katherine E. Driscoll.
Sanford Man Found Guilty of Bank RobberyRead the Press Release
Orlando, Florida – A federal jury has found Jurden Rogers (29, Sanford) guilty of bank robbery and brandishing a firearm during the bank robbery. Rogers faces a maximum penalty of life in federal prison. His sentencing hearing is set for November 29, 2018.
Rogers was indicted in February 2018, along with his co-defendant Jerad Hanks (26, Daytona Beach). Hanks previously pleaded guilty to the same offenses for his involvement in the robbery.
According to evidence presented at trial, on January 18, 2018, Rogers and Hanks robbed a Seacoast Bank in Sanford. Rogers backed the getaway car up to the front entrance of the bank and Hanks exited the vehicle wearing a ski mask and holding a shotgun. Hanks then entered the bank and brandished the shotgun at tellers while demanding cash. After robbing the bank tellers of more than $2,300, Hanks returned to the waiting getaway car, and Rogers drove them to a nearby apartment complex. When law enforcement officers located Rogers and Hanks at the apartment complex later that day, Rogers hid his half of the robbery proceeds in the waste pipe of his toilet and tried to escape out of a third-story apartment window.
This case was investigated by the Federal Bureau of Investigation and the Sanford Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt. Assistant United States Attorney Nathan W. Hill assisted with the prosecution.
San Felipe Pueblo Man Pleads Guilty to Aggravated Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Alvin J. Valencia, 60, an enrolled member and resident of San Felipe Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an aggravated sexual abuse charge. Valencia entered the guilty plea under a plea agreement that recommends a term of imprisonment within the range of 180 to 240 months followed by a term of supervised release to be determined by the court. Valencia also will be required to register as a sex offender.
Valencia was arrested in Feb. 2018, on a criminal complaint charging him with repeatedly sexually abusing a San Felipe Pueblo child between the ages of 12 and 16 years from Jan. 2017 through Dec. 2017.
Valencia subsequently was charged in a two-count indictment filed on Feb. 14, 2018, with sexually abusing a minor between the ages of 12 and 16 years from May 2017 through Sept. 2017, on the San Felipe Pueblo in Sandoval County, N.M.
During today’s proceedings, Valencia pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Valencia admitted that between May 2017 and Sept. 2017, he sexually abused a 14-year-old victim.
Valencia was remanded into federal custody after entering his guilty plea and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Joseph M. Spindle is prosecuting this 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 more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Resident of Puerto Rico Charged with Conspiracy to Possess with Intent to Distribute More Than 10 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A resident of Puerto Rico was charged today with attempting to smuggle more than 10 kilograms of cocaine into the United States through Newark Liberty International Airport, U.S. Attorney Craig Carpenito announced.
Raynee Emrico Gilbert Contreras Crespo, 21, is charged by complaint with conspiracy to possess with intent to distribute more than five kilograms of cocaine. He had his initial appearance on the charges today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and was detained.
According to documents filed in this case:
On Sept. 13, 2018, the Drug Enforcement Administration (DEA) was conducting an operation at Newark Liberty International Airport in which they were observing passengers and bags that could potentially be transporting narcotics. Agents identified two bags that potentially contained narcotics that were checked on a flight from Puerto Rico, observing that the bags were heavily weighted for their size. DEA agents in Newark established surveillance at the assigned luggage carousel for the flight and saw Crespo retrieve the bags and leave the airport.
The agents approached Crespo and asked him if his bags contained narcotics. After initially denying that the bags contained narcotics, Crespo subsequently admitted that they did, and signed a written consent to allow the agents to search the bags. Approximately 12 kilograms of a mixture and substance that field-tested positive for cocaine was found.
The drug conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life, and a $10 million fine.
U.S. Attorney Carpenito credited the special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, with the arrest.
The government is represented by Assistant U.S. Attorney Stephen Ferketic of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Previously Convicted Felon from Essex County, New Jersey, Admits Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted negotiating the sale of 17 firearms over a five-month period while he was a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Reginald Moultrie, 49, of Newark, pleaded guilty before U.S. District Claire C. Cecchi to an information charging him with one count of possessing a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
On July 20, 2017, Moultrie, who had at least one prior felony conviction in Essex County Superior Court, possessed an assault rifle capable of accepting a large capacity magazine. Moultrie also acknowledged that between May 1, 2017, and Sept. 30, 2017, he negotiated the sale of 17 firearms.
The felon in possession charge carries a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 16, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation, leading to today’s guilty plea. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
Defense counsel: Patrick McMahon Esq., Newark
Port Charlotte Doctor Sentenced to Five Months in Prison for Obstruction of an AuditRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merrday has sentenced Dr. John Janick (73, Port Charlotte) to five months in prison, followed by three years of supervised release, for obstructing a Medicare audit. As part of his sentence, Janick is required to pay $118,831.62 in restitution to the Medicare program.
According to the plea agreement, Janick lied to a Medicare program integrity contractor who was auditing Janick Medical Group. Specifically, Janick falsely claimed that a third-party employer was paying rent for office space utilized by his wife, Lisa McLaren Janick. The office space, located within the Janick Medical Group practice, was used by Lisa McLaren Janick to improperly access sensitive patient data that was then used to generate referrals from Dr. Janick to her third- party employer without regard for medical necessity.
Lisa McLaren Janick previously pleaded guilty to health care fraud charges in a related case. In her plea agreement, McLaren Janick acknowledged her role in falsifying Janick Medical Group patient records as part of a scheme to create bogus patient referrals to her third-party employer. McLaren Janick will be sentenced on October 10, 2018.
This case was investigated by Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Rachel Jones and Gregory Pizzo.
Pittsburgh Felon Sentenced to Nearly 8 Years in Prison for Illegally Possessing Loaded PistolRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 92 months’ imprisonment on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Marcus Smith, age 23.
According to information presented to the court, on February 2, 2017, Smith, an individual with several prior felony convictions, did knowingly and unlawfully possess a Glock 9mm pistol loaded with an extended magazine. Smith committed this offense while under supervision for three prior Allegheny County criminal convictions. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorneys Heidi M. Grogan and Amy L. Johnston prosecuted this case on behalf of the government. 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.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Smith.
Pensacola Tax Preparer Sentenced to 41 Months in Prison for Preparing False Tax ReturnsRead the Press Release
PENSACOLA, FLORIDA – Benell English, 57, of Pensacola, was sentenced to 41 months in federal prison Wednesday and ordered to pay $182,877 in restitution to the Internal Revenue Service after having been found guilty on May 23 of preparing false tax returns. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
English, the tax return preparer at Select Tax Service on E Street in Pensacola, prepared and filed false tax returns with the Internal Revenue Service between 2013 and 2017 by fraudulently increasing or decreasing taxpayers’ income to maximize refunds. A jury convicted English of 18 counts of preparing false tax returns in May.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the Social Security Administration-Office of Inspector General. Assistant United States Attorney Alicia H. Forbes prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Organized Crime Associate Pleads Guilty to Attempted MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VINCENT BRUNO pled guilty today before United States Magistrate Judge Paul E. Davison to attempting to kill, and conspiring to kill, a Bronx man in 2012. In May 2017, BRUNO and 18 other members and associates of the Luchese Family of La Cosa Nostra were arrested and charged in a nine-count Indictment, for their involvement in offenses including racketeering, murder, attempted murder, narcotics trafficking, and gun crimes. Since the unsealing of the Indictment, BRUNO and nine other defendants have pled guilty, and have been or will be sentenced by U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “Bruno’s attempt to murder a man at the behest of his mob superiors has ended where it should: With Bruno behind bars. We will continue to work with the FBI and our other partners in law enforcement to stamp out the remnants of La Cosa Nostra.”
According to the superseding information to which BRUNO pled guilty, his statements when pleading guilty, the allegations in the Indictment, and statements made in related court filings and proceedings:
In 2012, armed members and associates of the Bonanno Family of La Cosa Nostra forced their way into a Bronx social club controlled by the Luchese Family. During the ensuing confrontation, one of the Bonanno Family associates (the “Associate”) acted in a manner that a leader of the Luchese Family, Steven L. Crea (“Crea Sr.”), perceived as a personal affront. To avenge this supposed offense, Crea Sr. ordered his son, Steven D. Crea (“Crea Jr.”), to have the Associate killed. Crea Jr. passed the order to Paul Cassano Jr., a/k/a “Paulie Roast Beef,” and BRUNO. On a subsequent night, BRUNO and Cassano travelled to the Associate’s Bronx residence. There BRUNO, armed with a gun, tried to find the Associate in order to kill him, but failed. The dispute between the rival families was then resolved before the murder was carried out.
In conjunction with this incident, Cassano pled guilty to attempted assault in aid of racketeering in 2017. Crea Sr. and Crea Jr. are also charged with attempting to have the Associate killed and other crimes, and are scheduled to begin trial before Judge Seibel in 2019.
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BRUNO, 34, pled guilty to one count of attempted murder in aid of racketeering, and one count of conspiracy against the United States. In total, the counts to which BRUNO pled guilty carry a maximum sentence of 15 years. BRUNO will be sentenced before Judge Seibel.
The allegations contained in the Indictment as to Crea Sr., Crea Jr., and the other defendants who have not pled guilty are merely accusations, and these defendants are presumed unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the FBI’s Joint Organized Crime Task Force, which comprises agents and detectives of the FBI, NYPD, Homeland Security Investigations, and the Waterfront Commission of New York Harbor. He also thanked the Queens County District Attorney’s Office.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Scott Hartman, Hagan Scotten, and Jacqueline Kelly are in charge of the prosecution.
North Dakota Man Convicted of Threatening to Murder A Federal JudgeRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of ROBERT PHILIP IVERS, 65, for threatening to murder a federal judge and interstate transmission of a threat to injure. IVERS was found guilty today following a jury trial before Judge Robert W. Pratt, in United States District Court in Saint Paul, Minnesota.
“This defendant has a long history of using words to frighten and intimidate. Because of the excellent work of the United States Marshal’s Service, he is now being held accountable for making threats against a sitting United States District Court Judge in retaliation for the performance of her duties,” said Assistant U.S. Attorney Julie Allyn. “We are grateful to the jury for their careful attention to the evidence and their serious deliberation, resulting in a just verdict.”
As proven at trial, in January 2017, a United States District Court Judge (the “Victim Judge”) held a bench trial on a lawsuit brought by IVERS. The Victim Judge ruled against IVERS. He responded by sending a series of threatening letters and calling a court employee to say he was crazy angry at the Victim Judge and described himself as a “walking bomb.” IVERS was told repeatedly by Deputy U.S. Marshals to stop his threatening language.
On November 9, 2017, IVERS filed another civil lawsuit alleging the same facts as those in the case he lost before the Victim Judge. As part of the new civil case, IVERS was referred to two volunteer lawyers for a telephone consultation. After the lawyers discussed his case and told IVERS they did not believe he had a valid legal claim, IVERS began talking about his previous case with the Victim Judge. One of the lawyers described IVERS as becoming “intensely angry” and making threatening statements including:
• “This [expletive] judge stole my life from me.”
• “I had overwhelming evidence.”
• The Judge “stacked the deck” to make sure I lost this case.
• “She is lucky” I was “going to throw some chairs.”
• “You don’t know the fifty different ways I planned to kill her.”
After the lawyer reported the threats IVERS made during the phone conversation, two Deputy U.S. Marshals went to a residence in West Fargo, North Dakota to speak with IVERS about the threats. When confronted, IVERS became extremely agitated, and screamed at the Deputies, among other things, that he was glad the Victim Judge was scared, because “that [expletive] judge stole my life.”
This case is the result of an investigation conducted by the United States Marshals Service.
Assistant U.S. Attorneys Julie E. Allyn and Timothy C. Rank tried the case.
Defendant Information:
ROBERT PHILIP IVERS, 65
West Fargo, N.D.
Convicted:
- Threatening to murder a federal judge, 1 count
- Interstate transmission of a threat to injure the person of another, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
New York Man Convicted of Federal Fraud Charges Related to Multi-Million Dollar Pyramid Scheme that Targeted Chinese-AmericansRead the Press Release
LOS ANGELES – A federal jury has returned guilty verdicts against a New York man who was a high-level promoter of a fraudulent company that solicited more than $200 million for a company that purported to market web-based children’s educational courses, but in reality was nothing more than a pyramid scheme.
Daliang “David” Guo, 55, of Hyde Park, New York, was convicted Thursday afternoon of conspiracy and nine counts of wire fraud for participating in the scheme that solicited investments primarily from members of Chinese-American communities in Los Angeles, San Francisco and New York City.
Guo and other members of the conspiracy made false representations about the company – known as CKB 168, but also sometimes known as CKBMax and Cyber Kids Best Education Limited – including claiming that it generated substantial revenues from the sale of courses, that investments could be quickly liquidated for significant returns, that investors would get pre-IPO shares of CKB, and that the company would go public through an IPO. The evidence presented at trial showed that, in reality, the only way for investors to earn any meaningful returns was for them to actively recruit new investors.
Guo and his co-conspirators promoted CKB through YouTube videos and other postings on the internet, as well as through meetings with prospective investors and live presentations about the purported investment opportunity.
Four other defendants charged in this case previously pleaded guilty and are pending sentencing. They are:
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Cheong Wha “Heywood” Chang, 50, formerly of Hacienda Heights;
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Chang’s wife, Toni Chen, 49;
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Wen Chen “Wendy” Lee, 56, formerly of Rowland Heights; and
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Chih Hsuan “Kiki” Lin, 53, formerly of Los Angeles and Las Vegas.
During the course of the scheme, which ran from mid-2011 until January 2014, Guo and his co-conspirators solicited investments in increments of $1,380, which gave investors “Profit Reward Points” they claimed were worth $750 in cash, would only increase in value, and could be converted to pre-IPO shares of CKB. Guo and his co-conspirators collected money from new investors and simply pocketed the cash to pay themselves the “commission” they earned from CKB, and lulled investors by providing them with essentially worthless Profit Reward Points.
Guo and his group of promoters collected approximately $142 million out of the more than $200 million raised by CKB from investors.
Guo is scheduled to be sentenced by United States District Judge Dale S. Fischer on January 14, 2019, at which time he will face a statutory maximum sentence of five years in federal prison for the conspiracy count and up to 20 years in prison for each of the wire fraud charges.
This case is the result of an investigation by the Federal Bureau of Investigation.
The Securities and Exchange Commission provided valuable assistance.
The case against Guo was tried by Assistant United States Attorneys Jill Feeney and Ann C. Kim of the Major Frauds Section.
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New Orleans Resident Indicted for Westbank RobberiesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today that a federal grand jury in the Eastern District of Louisiana has indicted DARRYL HENRY, age 27, for three robberies with a firearm on August 24, 2018. If convicted, HENRY faces a maximum sentence of life in prison.
HENRY is accused of attempting to rob the Walmart Supercenter and the Winn-Dixie Supermarket in the Algiers neighborhood of New Orleans. HENRY is also accused of robbing the Walmart Neighborhood Market in Harvey, Louisiana, of $6,992.00.
U.S. Attorney Strasser stated that an indictment is only an allegation, and that the defendant is presumed innocent unless and until proven guilty.
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.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation’s New Orleans Violent Crime Task Force, New Orleans Police Department, and the Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Myles Ranier is handling the prosecution.
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New Orleans Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEVIN WILLIAMS, age 23, of New Orleans, pleaded guilty to a two-count indictment charging him with being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
According to court documents, WILLIAMS was found in possession of a Taurus 9mm PT111 firearm on August 29, 2016 and a .40 caliber Smith and Wesson firearm on November 6, 2017. WILLIAMS had previously been convicted of a felony in Orleans Parish Criminal Court.
WILLIAMS faces a maximum term of imprisonment of ten years on each count, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Jersey Man Pleads Guilty to Interference with Flight CrewRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that JOEL MICHAEL BANE, age 39, of New Jersey, pleaded guilty yesterday to a one-count bill of information for interference with flight crew.
According to the court documents, JOEL MICHAEL BANE intimidated and threatened flight attendants while on Southwest Airlines flight number 208, which departed from Chicago, Illinois, with a destination of New Orleans, Louisiana. The defendant also refused to comply with the captain’s directives to take his seat for landing. After the airplane landed, JOEL MICHAEL BANE assaulted the police officers who escorted him off of the airplane.
JOEL MICHAEL BANE faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment. U.S. District Judge Milazzo set sentencing for December 13, 2018.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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Monroe County Man Guilty of Heroin ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Eddie Pace, age 44, of East Stroudsburg, Pennsylvania, pleaded guilty today to conspiracy to distribute more than 100 grams of heroin and more than 500 grams of cocaine, before Senior U.S. District Court Judge James M. Munley.
According to United States Attorney David J. Freed, Pace admitted to committing the offense between 2012 and 2015. Pace also admitted to conspiring with others to travel to Patterson, New Jersey, to obtain multiple bricks of heroin which were then sold to sub-distributors and customers from Pace’s barbershop in the Monroe County area of Pennsylvania, and elsewhere. One hundred grams of heroin is equivalent to approximately 4,000 retail bags of heroin.
Pace was one of seven people charged by a federal grand jury in a superseding indictment in March 2015. The others charged—Shawnette Isaac, Daryl Trent, Myron Owens, William Young, Catherine Abbey, and Anton Woodson—all previously entered guilty pleas in the case. Trent was recently sentenced to 90 months’ imprisonment on drug and gun charges, and Isaac was recently sentenced to 30 months’ imprisonment for her role in the drug conspiracy. The other defendants are awaiting sentencing.
Judge Munley ordered a presentence report to be completed, and scheduled Pace’s sentencing for December 14, 2018.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum penalty of ten years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper pleaded guilty today in federal court in Boston in connection with being paid over $5,900 for overtime hours that he did not work.
Kevin Sweeney, 40, of Braintree, pleaded guilty to one count of embezzlement from an agency receiving federal funds and one count of wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled the sentencing for Dec. 11, 2018. On Aug. 17, 2018, Sweeney was charged and agreed to plead guilty.
Sweeney was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Sweeney earned $218,512, which included over $97,000 in overtime pay.
Sweeney admitted that between Sept. 1, 2016, and Dec. 31, 2016, he was paid over $5,900 for overtime shifts that he either did not work at all or from which he left early. Sweeney concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
For example, on Dec. 14, 2016, Sweeney claimed in MSP payroll submissions and other paperwork to have worked a “D AIRE” overtime shift from 7:00 p.m. to 11:00 p.m. Sweeney claimed to have written eight motor vehicle citations during that shift and submitted copies of those citations to MSP as evidence that he had worked. Yet, Sweeney’s cruiser radio was not turned on during the overtime shift, he did not run any driver histories during the shift, and Registry of Motor Vehicle (RMV) records reflect that none of the motorists that Sweeney claims to have cited actually received a citation that day.
In another instance, on Dec. 21, 2016, the RMV did have copies of two of the citations Sweeney claimed to have written during the shift, but closer inspection revealed that Sweeney had falsified the times of those citations on the copies submitted to the MSP. The RMV copies revealed that the citations had been written at 5:00 p.m. and 5:05 p.m., which was written on the citations in military time as “1700” and “1705.” On the copies of those same citations submitted to MSP, however, Sweeney changed “1700” and “1705” to “700” and “705” so that it would appear to MSP that the citations had been written during the overtime shift that Sweeney did not work. And, like Dec. 14, Sweeney’s cruiser radio was not turned on during the overtime shift, he did not run any driver histories during the shift, and Registry of Motor Vehicle (RMV) records reflect that the other six motorists that Sweeney claims to have cited did not actually receive a citation that day.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers assigned to target vehicles traveling at excessive speeds.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants. Sweeney received payment for overtime hours he did not work through direct deposits into his bank account that had travelled through interstate and foreign wires.
Sweeney is the sixth trooper charged as a result of the ongoing investigation. On June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; Trooper Gary Herman, 45, of Chester, and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. Wilson has since been indicted. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, was charged and pleaded guilty. On July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was initially charged by criminal complaint and has since been indicted.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit and Neil Gallagher of Lelling’s Economic Crimes Unit are prosecuting the case.
Maryland Man Sentenced to 24 Years in Prison for 2016 Murder in Northwest WashingtonRead the Press Release
WASHINGTON – Christian Romero, 26, of Hyattsville, Md., was sentenced today to 24 years in prison for fatally stabbing a man, a complete stranger, in an unprovoked attack near a restaurant in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Romero was found guilty by a jury in February 2018 of a charge of second-degree murder while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Juliet McKenna. Following his prison term, Romero will be placed on five years of supervised release.
According to the government’s evidence, the victim, Dimas Fuentes-Lazo, was out with an old friend for drinks on the evening of April 23, 2016. They spent several hours together at different restaurants before parking in front of a restaurant in the 800 block of Kennedy Street NW. At approximately 10:30 p.m., while they waited on the sidewalk out front before going in, they saw Romero across the street, slapping the side-view mirrors of the cars parked along Kennedy Street, including their car. Mr. Fuentes-Lazo’s friend called out, “Hey, that’s my car,” and then Romero aggressively crossed the street to confront the two men.
Words were exchanged, and Romero stepped toward the men, raising his arms aggressively. Romero bent down to pick up a knife he had dropped, stood back up, and lunged at Mr. Fuentes-Lazo, stabbing and slicing him multiple times. Shortly thereafter, Mr. Fuentes-Lazo, 38, was pronounced dead as a result of the stabbing.
Romero ran off, leaving behind a wristwatch, a Coca-Cola bottle, and the switchblade he used to kill the victim. An investigation by the Metropolitan Police Department (MPD) led to Romero’s arrest on June 29, 2016, and he has been in custody ever since. Forensic testing confirmed that Romero’s DNA was on both the Coke bottle and the handle of the switchblade.
At the time of the murder, Romero was on probation for a 2012 stabbing that he committed in Prince George’s County, Md. He faces revocation of his probation along with additional prison time in that case.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department and the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist; Investigative Analyst Zachary McMenamin; Litigation Technology Specialists Leif Hickling, Anisha Bhatia, and William Henderson; Victim/Witness Advocate Jennifer Clark, and Victim/Witness Service Coordinator Katina Adams-Washington.
Finally, she commended the work of Assistant U.S. Attorneys Christian Natiello and Christopher Bruckmann, who investigated and prosecuted the case.
Maryland Man Pleads Guilty to Participating in Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – Everette Reel, 46, of Upper Marlboro, Md., pled guilty today to trafficking in crack and cocaine following an investigation into a narcotics conspiracy involving eight individuals in Washington, D.C. and Maryland, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Reel pled guilty before the Honorable Richard J. Leon in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a detectable amount of cocaine. The charge requires a mandatory minimum sentence of five years of incarceration and up to 40 years in prison. Judge Leon scheduled sentencing for Dec. 14, 2018.
Reel was arrested with seven other individuals in March 2018 on charges stemming from a conspiracy to distribute and possess with intent to distribute cocaine and 280 grams or more of crack. In May 2015, the FBI, with the assistance of the Metropolitan Police Department (MPD), began a long-term investigation into a drug trafficking organization that operated in the Montana Terrace neighborhood of Northeast Washington and extended into Maryland. Numerous defendants also were charged with possessing and distributing various narcotics, including crack, cocaine, PCP and fentanyl, during the period of the investigation.
During the execution of a search warrant on Reel’s residence, FBI agents recovered approximately 15 grams of cocaine, a .40 caliber Springfield Armory pistol, 12 rounds of ammunition in two separate calibers, a gun box, and approximately $16,000 in cash.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge McNamara, commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeannette Litz and Teesha Tobias, Assistant U.S. Attorney Thomas Swanton, of the Asset Forfeiture & Money Laundering Section, who assisted with forfeiture related issues, and Christopher Macchiaroli and Kevin L. Rosenberg of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and are prosecuting the remaining defendants.
Man Pleads Guilty to Defrauding Investors of More Than $875,000 in a Sports Marketing SchemeRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Timothy Paul Hamilton, Jr., 31, of Dallas, Texas, pleaded guilty Friday to conspiracy to commit wire fraud in a scheme that defrauded investors of $875,300. Additionally, Gena Catherine Hamilton, 53, and Timothy Paul Hamilton, 56, both of Collinsville, pleaded guilty to giving a false statement to a financial institution.
Timothy Hamilton Jr., who goes by T.J. Hamilton, admitted to promoting false investment opportunities relating to business ventures that were purportedly going to produce and market sportswear and nutritional supplements. At the time of his crime, T.J. Hamilton was a resident of Oklahoma.
As part of the scheme, T.J. Hamilton, established and claimed to be the President and CEO of multiple companies. The Clean Athlete, LLC, established in 2011, promoted sportswear that could supposedly control the sweat and odor that comes with athletic play. Two other companies, Clean Athlete Nutrition, LLC, and Complete Athlete Nutrition, LLC, both established in 2012, claimed to create supplements that would improve athletes’ metabolism. His parents, Gena and Timothy Hamilton, were managing members of the companies. They both pleaded guilty today for providing false income information in order to receive a car loan in 2011.
Upon receipt of investor funds, the Hamiltons used a majority of the money for personal gain, primarily for T.J. Hamilton’s country music career ambitions.
“T.J. Hamilton’s fraudulent scheme reeked of deceit, greed, and selfish intent. He scammed investors, many from Oklahoma, by taking advantage of his reputation as a former athlete. His criminal scheme included defrauding one victim out of her life savings. Scam artists like T.J. Hamilton will be held accountable by my office. We will pursue justice and restitution for his victims,” stated U.S. Attorney Trent Shores.
As part of his plea, T.J. Hamilton agreed to a criminal forfeiture money judgement in the sum of $869,300, representing proceeds obtained through the conspiracy. All monies will go to provide restitution to the victims.
United States Magistrate Judge Jodi F. Jayne presided over the three plea hearings. T.J. Hamilton’s sentencing date is scheduled for December 13, 2018. He could face a maximum penalty of five years in prison. Gena and Timothy Hamilton’s sentencing hearings are also scheduled for December 13, 2018.
The Department of Treasury, Internal Revenue Service—Criminal Investigation Division investigated the case. Assistant U.S. Attorneys Kevin C. Leitch, Richard M. Cella, Charles M. McLoughlin, and Catherine J. Depew prosecuted the case.
Man Guilty of Distributing Fentanyl Causing Serious Bodily InjuryRead the Press Release
ALEXANDRIA, Va. – A Dumfries man pleaded guilty today to distribution of fentanyl causing serious bodily injury, for which he faces a mandatory minimum of 20 years in prison.
“Sorensen placed lives at risk every time he chose to distribute these dangerous and deadly drugs into our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting heroin and fentanyl trafficking crimes is a top priority of this office as we continue to battle this deadly epidemic.”
According to court records, Christopher Louis Sorensen, 31, admitted that in February 2018 he distributed fentanyl to a female friend who later suffered respiratory arrest, a life-threatening condition that required medical intervention, including CPR and Narcan, a life-saving opioid overdose reversal drug used by first responders.
“Fentanyl is a dangerous drug that can kill a user after just one use and have widespread negative effects on our communities,” said Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office. “This plea is just one example of the substantial work the FBI is doing with partners across the region to stem the flow of opioids into our neighborhoods.”
According to the statement of facts, Sorensen admitted that from 2015 to 2018, he sold over 400 grams of fentanyl, which he purchased from drug dealers in Baltimore. Additionally, Sorensen admitted that from 2009 to 2018, he sold over 5,000 tablets of 30 milligram oxycodone pills, acquired from a medical provider in Maryland, and filled by a pharmacy in the Eastern District of Virginia, and often sold the tablets in the vicinity of the pharmacy that filled the prescription.
Sorensen pleaded guilty to distribution of fentanyl causing serious bodily injury, and faces a mandatory minimum of 20 years and a maximum penalty of life in prison when sentenced on December 21, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney James L. Trump and Special Assistant U.S. Attorney Kaitlin Paulson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-237.