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12 September 2018
Waterloo Man Sentenced to More Than Six Years in Prison for Unlawfully Possessing a .45 Caliber HandgunRead the Press Release
A two-time convicted felon and methamphetamine user who unlawfully possessed a firearm was sentenced September 11, 2018, to more than 6 years in federal prison.
Gage Tyler Bondy, age 22, from Waterloo, Iowa, received the prison term after a May 24, 2018, guilty plea to possession of a firearm by a prohibited person.
Court documents show that in the early morning of February 19, 2018, Bondy stole a car parked in front of a house in Waterloo. Officers located the car, but Bondy sped away from the officers, going over 90 miles per hour, until he crashed into a utility pole. Officers found a Ruger .45 caliber handgun in Bondy’s waistband and a used methamphetamine syringe in his sock. They transported Bondy to a local hospital.
Bondy was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade to 77 months’ imprisonment. Bondy must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Bondy is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Waterloo Police Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-20.
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Washington, PA Felon Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A federal grand jury returned a superseding indictment yesterday against a resident of the City of Washington, Washington County, Pennsylvania, on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count superseding indictment named Romone Barnes, 32, as the sole defendant.
According to the superseding indictment, Barnes distributed and possessed with intent to distribute a quantity of fentanyl on or about June 26, 2017, and possessed with intent to distribute a quantity of methoxyacetyl fentanyl on or about September 25, 2017. Barnes is further charged with possession of a firearm and ammunition by a convicted felon on or about July 6, 2017. Barnes has several prior felony drug convictions; it is a violation of federal law for a convicted felon to possess a firearm or ammunition.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
Task Force Officers with Pennsylvania State Police and Washington County District Attorney’s Office Drug Task Force conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Walpole Man Sentenced to 20 Years in Federal Prison for Sexually Exploiting Two ChildrenRead the Press Release
BOSTON – A Walpole man was sentenced today in federal court in Boston for producing child pornography.
Steven Bennett, 52, was sentenced by U.S. District Court Judge Allison D. Burroughs to 20 years in prison and five years of supervised release. In April 2018, Bennett pleaded guilty to two counts of sexual exploitation of children. Bennett has been in custody since his arrest in May 2017.
On May 25, 2017, as a result of an April 2017 investigation into various individuals seeking nude pictures of underage girls via Craigslist, authorities executed a federal search warrant at Bennett’s home. Bennett admitted that he secretly video recorded two minor females who were known to him. Subsequent forensic analysis of several devices seized from Bennett during the search revealed more than 100 videos of the girls in the nude.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Walpole Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Virginia Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
An Alexandria, Virginia man pleaded guilty today to one count of receipt of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department made the announcement.
Edward Thomas Parsons, 64, a former physical security specialist with the Department of Defense, pleaded guilty today before Senior U.S. District Judge Claude M. Hilton of the Eastern District of Virginia to receipt of child pornography. According to admissions made in connection with his plea, Parsons administered an online group chat on Kik Messenger, a mobile messaging application, dedicated to soliciting child pornography from other Kik users. Between January 2015 and August 2015, Parsons received and distributed images and videos of child pornography from this Kik group chat. In addition, through the course of its investigation, law enforcement seized Parsons’s personal desktop computer and cell phone and found hundreds of images and videos of child pornography on the devices.
Parsons is scheduled to be sentenced on Feb. 1, 2019.
FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, specifically the Alexandria Police Department, is investigating the case. The Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorneys James E. Burke IV, Gwendelynn Bills and William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the 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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Las Vegas Residents Sentenced for Multimillion Dollar Telemarketing Scheme Targeting Small Business OwnersRead the Press Release
LAS VEGAS, Nev. – Two Las Vegas residents were sentenced today to a total of 18 years in federal prison for their involvement in a $14 million dollar telemarketing fraud scheme targeting small business owners, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.
Alan W. Rodrigues, 59, was sentenced to 120 months, and Mark L. Bausch, aka Mark Eting, 44, was sentenced to 96 months. Each defendant pleaded guilty in May to one count of conspiracy to commit wire fraud, 30 counts of wire fraud, and 6 counts of money laundering. In addition to the prison terms, Bausch and Rodrigues agreed to pay $13,966,329.30 in restitution to victims and to pay between $631,142 and $1,050,955 in a criminal forfeiture money judgment. United States District Judge Kent J. Dawson presided over the hearings.
According to their individual plea agreements, from March 2009 to about October 2010, Bausch, Rodrigues, and their co-conspirators organized and operated Small Business Funding Co., Inc., Company Funds, Inc., Foundation Research, Inc., and Silver State Holding Company, all telemarketing companies. They charged a fee for their services and offered to help small business owners obtain grants from public and private entities.
In order to perpetuate their fraud scheme, the defendants made false statements to victims to make it appear that they were likely to or guaranteed to receive a grant. They hired salespersons to market the services and to provide false information to the customers. In order to convince the customers that their service was legitimate, the defendants instructed their employees to conduct research about funding entities and send letters to customers and funders, knowing that many of the customers would not qualify for the grants. The defendants also solicited customers by conducting seminars throughout the United States. Throughout the entire scheme, the telemarketing companies received numerous complaints from customers, and the defendants facilitated giving false statements to victims in order to prevent or delay them from contacting law enforcement. Bausch and Rodrigues used the proceeds from the scheme to enrich themselves and others and to pay the expenses necessary to continue operating the scheme.
In December 2014, Bausch, Rodrigues, and co-defendants were indicted for their roles in the telemarketing fraud scheme. Several co-defendants have already pleaded guilty and have been sentenced for their role in the scheme, including Craig Rudolph who was sentenced to 77 months in prison; Jonas Bowen who was sentenced to 63 months in prison; Lee Panelli who was sentenced to 41 months in prison; and David Bergstrom who was sentenced to 51 months in prison. In a separate case, co-defendant Joseph Marfoglia was sentenced to 125 months in prison.
The case was investigated by the FBI and IRS Criminal Investigation. Assistant U.S. Attorneys Daniel R. Schiess and Jared L. Grimmer prosecuted the case.
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Two Individuals Indicted in September 2018 Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the September 2018 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
JEANNIE IRENE STEGNER, age 52, of Valley View, Texas
Theft By Officers Or Employees Of An Indian Gaming Establishment (2 counts)The Indictment alleges that on June 9, 2018, in the Eastern District of Oklahoma, the defendant, while an employee of the Chickasaw Nation WinStar World Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away property of a value of $1,000.00 or less belonging to the Chickasaw Nation WinStar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission, in violation of Title 18, United States Code, Section 1168(a), punishable by up to 5 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on June 24, 2018, in the Eastern District of Oklahoma, the defendant, while an employee of the Chickasaw Nation WinStar World Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away property of a value of $1,000.00 or less belonging to the Chickasaw Nation WinStar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission, in violation of Title 18, United States Code, Section 1168(a), punishable by up to 5 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs.
Assistant United States Attorney John David Luton
STACEY BECKER LAWSON, age 41, of Henryetta, Oklahoma
Theft, Embezzlement Or Misapplication By Bank EmployeeThe Indictment alleges that from in or about 2015, the exact date unknown to the Grand Jury, until on or about June 13, 2018, in the Eastern District of Oklahoma, the defendant, being an employee of, and connected in a capacity with, American Exchange Bank of Henryetta, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said American Exchange Bank of Henryetta, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets and securities entrusted to the custody and care of American Exchange Bank of Henryetta, Oklahoma, in that the defendant withdrew cash and transferred funds from the bank and misapplied, embezzled, abstracted and purloined the funds, in violation of Title 18, United States Code, Section 656, punishable not more than 30 years imprisonment, a fine up to $1,000,000.00 or both.
The charges arose from an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Clay Compton
Two Fort Smith Men Sentenced to A Total of over 32 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jose Escalante, age 36, of Fort Smith, was sentenced today to 200 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine and Jose Alonso Garcia, age 38, of Fort Smith, was sentenced today to 188 months in federal prison followed by five years of supervised release on one count of Aiding and Abetting Possession with Intent to Distribute Methamphetamine The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, in September of 2016, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in the Fort Smith area by Escalante. During the investigation, DEA arranged and conducted multiple controlled purchases of methamphetamine from Escalante. During one of the transactions, Garcia drove Escalante to meet with an undercover agent and assisted with the transaction. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained actual methamphetamine.
Escalante and Garcia were indicted by a federal grand jury in March 2018. Escalante entered a guilty plea in May 2018 and Garcia entered a guilty plea in April 2018.
This case was investigated by the Drug Enforcement Administration (DEA), Alcohol Tobacco and Firearms (ATF), Crawford County Sheriff’s Office, Fort Smith Police Department, Barling Police Department, Sebastian County Sheriff’s Office, Van Buren Police Department and the 12th/21st Judicial District Drug Task Force. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
Two Bemidji Residents Found Guilty in Home Invasion CaseRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of SHANISE FRANCES OSTLUND, 29, and KEVIN ROBERTSON, 32, for committing a home invasion on the Red Lake Indian Reservation. OSTLUND and ROBERTSON were found guilty today following a jury trial before Judge Susan Richard Nelson in United States District Court in Duluth, Minnesota. Two additional defendants, DEREK PADDY and CHERAI CLARK, each pleaded guilty to one count of burglary in the second degree.
United States Attorney MacDonald said, “Robberies, home invasions and other crimes involving domestic violence are all too common on the Red Lake Reservation. These crimes threaten the safety and stability of communities, and they will not be tolerated. I am grateful to the jury for their swift verdict and to our federal and tribal law enforcement partners for their investigative work on this case.”
As proven at trial, in the early morning hours of November 24, 2017, following a brawl at a local Walmart store, OSTLUND, ROBERTSON, PADDY and CLARK drove together to the victim’s residence with intentions to confront the victim and steal their property. When the defendants arrived, PADDY and CLARK kicked in the front door and entered the residence along with OSTLUND and ROBERTSON. The defendants expected to find the victim inside the residence; however, the victim escaped by jumping out of a window. The defendants stole various items from the residence before leaving the property.
This case is the result of an investigation conducted by the FBI, the Red Lake Police Department, and the Bemidji Police Department.
Assistant U.S. Attorney Clifford B. Wardlaw tried the case.
Defendant Information:
SHANISE FRANCES OSTLUND, 29
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
KEVIN ROBERTSON, 32
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three Defendants Sentenced to Years in Federal Prison for Trafficking Ice Methamphetamine into DubuqueRead the Press Release
Three people were sentenced to federal prison on September 10 and 11, 2018, for their roles in a conspiracy to transport methamphetamine from Dallas, Texas, and distribute it in Dubuque, Iowa.
Kevin John Heim, age 31, and Stacy Lynn Weidenbacher, age 45, both from Dubuque, received their prison terms after May 7, 2018 guilty pleas to conspiracy to distribute methamphetamine. Anthony Dewayne Crosby, age 38, from Dallas, Texas, received his prison term after a May 2, 2018 guilty plea to possession with intent to distribute methamphetamine.
Court documents and evidence presented at court hearings showed that in mid-January 2018, Heim drove a rental car from Dubuque to Dallas, where he picked up approximately twenty ounces of ice methamphetamine. Crosby then accompanied Heim back to Dubuque. Heim, Weidenbacher, and others then sold the methamphetamine in Dubuque and Crosby collected the money from the sales. Afterwards, Heim sent two of his associates back to Dallas with Crosby. Heim’s associates bought several more ounces of methamphetamine in Dallas.
On January 22, 2018, Heim and Weidenbacher drove a rental car back to Dallas. Police investigators had attached a tracking device to the rental car before it left Iowa. Once in Dallas, Heim and Weidenbacher met Crosby, who stayed with them while they waited until the next shipment of methamphetamine arrived on a semi-truck from Mexico.
Once they had received the methamphetamine, Heim and Crosby loaded it into compartments under the hood of the rental car. On January 29, 2018, investigators stopped Heim, Weidenbacher, and Crosby as they drove back into Dubuque County. Investigators searched the rental car and seized the methamphetamine.
Heim, Weidenbacher, and Crosby were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Heim and Crosby were sentenced to 170 months’ imprisonment. Weidenbacher was sentenced to 76 months’ imprisonment. All three defendants must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Drug Task Force, Dubuque County Sheriff’s Office, Dubuque Police Department, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation, Cascade Police Department, and Dyersville Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1006-LRR.
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The U.S. Attorney’s Office Joins with Community Partners Host a Daylong Opioid Awareness SummitRead the Press Release
SACRAMENTO, Calif. — The U.S. Attorney’s Office has teamed up with the Drug Enforcement Administration, the Sierra Sacramento Valley Medical Society, the Sacramento County Opioid Coalition, the U.S. Department of Health and Human Services, and Sacramento State University, to host a daylong conference focused on finding and implementing solutions to the opioid and narcotics epidemic.
U.S. Attorney Scott stated: “Today’s Opioid Awareness Summit brings educators, treatment professionals and law enforcement together to address one of the most urgent law enforcement and public health challenges facing our country today. Law enforcement’s efforts to remove illicit drugs from our streets are insufficient on their own; we need the help of all our partners. This summit highlights the our office’s ongoing commitment to working together to erase the menace of drug addiction and overdose deaths from our communities and to ensure a brighter future for all Americans.”
“DEA is committed to ending the opioid crisis occurring in our communities and preventing prescription drug misuse,” said DEA Assistant Administrator John Martin. “This summit presents a unique opportunity for government agencies and community partners to come together to discuss solutions to this complex issue and work together to reduce the illegal use and sale of opioids across the country.”
“The Sierra Sacramento Valley Medical Society provides ongoing safe prescribing education to physicians, encourages complimentary methods of pain management as appropriate, and works proactively to increase access to naloxone. We are proud to sponsor and participate in the important educational event,” said Aileen E Wetzel, CEO, SSVMS.
Sacramento State’s Pharmacist in Charge Janet Dumonchelle stated: “Sac State is proud to be part of this historic collaborative effort to educate and to call to action our Sacramento community and government partners in combating this epidemic. We will not be able to solve this epidemic today, but we can solve it together.”
“The opioid epidemic is a serious and challenging public health problem,” said Dr. Olivia Kasirye, Sacramento County Public Health Officer. “In 2016 when Sacramento County faced a crisis with counterfeit fentanyl pills being sold on the street, it took a collaborative effort including Public Health, the hospitals and medical community, law enforcement and service providers to end that crisis; we need to sustain that collaborative effort as a community to turn the tide on the opioid epidemic.”
Wednesday’s agenda focuses on three aspects: law enforcement efforts, treatment, and prevention solutions. During the first part of the day, the U.S. Attorney and Drug Enforcement Administration officials will discuss national and local trends, U.S. Department of Justice policy, and current enforcement efforts aimed at reducing the illegal use and sale of opioids in our communities.
Drawing on his extensive experience as a Special Agent with the Drug Enforcement Administration, and more recently his service as the Assistant Administrator of the Diversion Control Division of the DEA, John Martin will outline the scope of the national opioid epidemic, with particular attention to heroin, fentanyl and other synthetic opioids. He will discuss in detail the DEA’s coordinated law enforcement response to the crisis, including both clandestine and diverted opioid supply chains and other DEA efforts.
During the second half of the day, physicians will discuss safer prescribing practices, complementary pain management techniques, and medication-assisted treatment programs. Industry experts will cover best practices for the treatment and prevention of opioid abuse. Edward Heidig, Regional Director, U.S. Department of Health and Human Services will speak about the U.S. Health and Human Services’ policy priorities in the area of opioid abuse and prevention.
Thackerville Man Sentenced to 36 Months for Wire Fraud, Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Ashley Bond, age 34, of Thackerville, Oklahoma, was sentenced to a total of 36 months’ imprisonment: 12 months’ imprisonment for Conspiracy To Commit Wire Fraud, in violation of Title 18, United States Code, Section 1343; and to 24 months’ imprisonment for Aggravated Identity Theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. The sentences will be served consecutively. The charges arose from an investigation by the Marietta Police Department, the Love County Sheriff’s Office, the United States Postal Inspection Service, and the United States Secret Service.
The Indictment alleged that from April 2017 and continuing until June 23, 2017, the Defendant, and others, knowingly conspired, agreed and confederated to execute and attempt to execute a scheme and artifice to defraud seven named victims and others known and unknown to the Grand Jury, to obtain money and property by means of materially false and fraudulent pretenses, representations and promises which the Defendant transmitted or caused to be transmitted by means of wire communications in interstate commerce.
The Indictment also alleged that on or about June 8, 2017, the Defendant knowingly transferred, possessed and used, without lawful authority, a means of identification of another person during and in relation to a felony violation enumerated in 18 U.S.C. § 1028A(c), Conspiracy to Commit Wire Fraud, knowing that the means of identification belonged to another actual person.
United States Attorney Brian J. Kuester said, “Identity thieves wreak havoc on the lives of their victims. Fortunately, due to diligent victims and local and federal law enforcement agencies, this identity thief was caught and is being brought to justice for his crimes. This investigation and prosecution is a great example of how watchful citizens bringing information to their local law enforcement agency can lead to a team effort between local and federal investigators and prosecutors, and ultimately lead to a successful prosecution.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Tennessee Jail Supervisor Pleads Guilty to Making False Statements to the FBIRead the Press Release
The Justice Department announced that Gary Ola, 54, a sergeant at the Cheatham County Jail in Ashland City, Tennessee, pleaded guilty late yesterday to two counts of making false statements to FBI agents.
Ola was indicted on June 26 and the charges resulted from false statements about his knowledge of an incident in which another corrections officer used a Taser to stun a restrained detainee inside the Cheatham County Jail. The other corrections officer was charged in a separate indictment with two counts of deprivation of rights under color of law and two counts of obstruction of justice and his trial is set for early 2019. He is presumed innocent until proven guilty.
In his plea agreement, Ola admitted to making false statements during two separate interviews with federal agents investigating the Taser incident. In the first interview in August 2017, Ola falsely told agents with the FBI and the Tennessee Bureau of Investigation that, after he helped secure a detainee in a restraint chair in the Cheatham County Jail on Nov. 5, 2016, he walked away and did not see another corrections officer deploy a Taser and stun the detainee. In a second interview with the FBI in May 2018, the Ola stated that he did not see the corrections officer stun the detainee after officers placed the detainee in handcuffs. Ola admitted that he made these false statements because he feared retaliation if he reported that the corrections officer had used his Taser in violation of the jail’s policy and training.
Ola faces a maximum sentence of five years in prison and a $250,000 fine on each count. A sentencing date has yet to be scheduled.
This case was investigated by the FBI and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
Tampa Woman Indicted for Workers’ Compensation FraudRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Elizabeth Correa (60, Tampa) with three counts of wire fraud, three counts of false statement or fraud to obtain federal employees’ compensation, one count of theft of government funds, and one count of making a false statement to a federal agency. If convicted, Correa faces a maximum penalty of 20 years’ imprisonment on each wire fraud count, up to 10 years in prison for the theft of government funds count, and 5 years’ imprisonment on each count of making a false statement. The indictment also notifies Correa that the United States is seeking a money judgment in the amount of $212,923, the alleged proceeds of the wire fraud and theft of government funds.
According to the indictment, Correa concealed her physical capabilities, emotional state, and employment activities from the Office of Workers’ Compensation in order to continue receiving federal workers’ compensation benefits. She also made material false statements about her employment activities on forms that she submitted to the Office of Workers’ Compensation and to the Social Security Administration. In addition, Correa received Social Security Disability Insurance Benefits to which she was not entitled.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Postal Service Office of Inspector General and the Social Security Administration Cooperative Disability Investigations Unit. It will be prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Tampa Real Estate Agent Pleads Guilty to Defrauding Fannie MaeRead the Press Release
Tampa, FL –David Lyle Morgan (53, Tampa) has pleaded guilty to one count of bankruptcy fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Morgan was a licensed realtor who entered into a contract with a homeowner to sell a property in foreclosure. In order to prevent the Federal National Mortgage Association (commonly known as Fannie Mae) from lawfully foreclosing on the homeowner’s property, Morgan devised and executed a bankruptcy fraud scheme wherein he filed a fraudulent bankruptcy petition in the name of the homeowner, without the homeowner’s knowledge or consent, just prior to the scheduled foreclosure sale date. The fraudulent bankruptcy invoked the automatic stay provision of the bankruptcy code, which prevented Fannie Mae from conducting the foreclosure sale and obtaining title to the property.
The fraudulent bankruptcy petition filed by Morgan allowed him to continue efforts to sell the property in order to obtain ill-gotten real estate commissions.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Statesboro Investigation Nets 20 Defendants for Drug Trafficking, Weapons PossessionRead the Press Release
STATESBORO, GA: A federal indictment unsealed today, Sept. 12, charge a Mexican national and 19 other Statesboro-area residents with multiple felonies including drug distribution, illegal firearms possession and related offenses resulting from a more than two-year joint operation of federal, state and local law enforcement agencies.
Natividad Dias, 38, also known as “Nat,” “Nate,” “Amigo” or “Huevos,” is among 20 individuals charged with multiple counts of trafficking in methamphetamine, cocaine and marijuana. Others also are charged with possession of firearms by convicted felons.
The multi-agency investigation began in 2015 as a result of citizen complaints about drug-trafficking activities and violent crime in Screven County and surrounding communities, including an unsolved homicide case. In 2016, the Screven County Sheriff’s Office, along with the Governor’s Taskforce/Drug Suppression, seized more than 500 marijuana plants from a residence in Screven County relating to the charged conspiracy. As the investigation expanded, it revealed the trafficking of methamphetamine and marijuana in Screven, Effingham, Jenkins, Bulloch and Evans counties. Law enforcement agencies participating in the operation conducted various controlled purchases, state search warrants and traffic stops. In addition to the marijuana plants, the agencies seized methamphetamine, cocaine and other drugs, along with multiple firearms.
Federal prosecutors used the information compiled during the investigation to secure an indictment under seal for the 20 defendants. Most of the defendants in the case are in custody and some have made their initial appearances in federal court, while one of the defendants remains a fugitive. The indictment was unsealed today.
The federal charges and maximum penalties include:
- Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances, 21 U.S.C. § 846, which carries a sentence of 10 years imprisonment to life, along with fines of up to $10 million.
- Possession with Intent to Distribute a Controlled Substance (100 or more marijuana plants regardless of weight), 21 U.S.C. § 842(a) and (b)(1)(B), with sentences ranging from five to 40 years imprisonment and fines of up to $5 million.
- Possession with Intent to Distribute a Controlled Substance (5 grams or more of Methamphetamine, 50 grams or more of a mixture of Methamphetamine, 500 grams of a mixture of Cocaine), 21 U.S.C. § 841(a)(1) and (b)(1)(B), which carries a sentence of five to 40 years’ imprisonment and a fine of up to $5 million.
- Distribution of Controlled Substances, and Possession of Controlled Substances with Intent to Distribute, 21 U.S.C. § 841(a)(1), which typically carries a maximum sentence of 20 years’ imprisonment, but may carry increased minimum and maximum terms of imprisonment based on the quantity of controlled substances involved and the prior drug convictions of the defendant.
- Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. § 924(c), which carries a minimum sentence of five years’ imprisonment, and up to a life imprisonment, consecutive to any other sentence imposed.
- Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment. However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the sentence ranges from a minimum of 15 years’ imprisonment to a maximum of life imprisonment.
Those charged in the investigation are:
Natividad Dias, 38
John Timothy Collins, 48
John Kenneth Joyner, 47
Palmer Alton Bazemore II, 51
Cassie Jo Barbee, 36
Jaime Elton Newsome, 39
Megan Nicole Bazemore, 30
Christina Elizabeth Davis, 32
Derrick Riggs, 42
Quinn Cullen Neal, 32
Dylan Anthony Davis, 26
Gary Paul Joyner, 51
Monica Isabell Jimenez, 22
Zackary Allen Durrence, 26
John Dillon Joyner, 25
Jonathan Travis Oliver, 36
Michael Shane Bishop, 44
Jonathon Evan Oglesby, 27
Alfred Anthony Woods, 28
Noah Quinn Pope, 25
This indictment arose from a joint operation of federal agencies including the Drug Enforcement Administration, Homeland Security Investigations, the bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Postal Inspection Service. Participating state agencies included the Georgia Bureau of Investigation, Georgia State Patrol, Georgia Department of Natural Resources, and the Ogeechee Judicial Circuit District Attorney’s Office. Local law enforcement included the Screven County Sheriff’s Office, Sylvania Police Department, Effingham County Sheriff’s Office, Jenkins County Sheriff’s Office, Bulloch County Sheriff’s Office, Evans County Sheriff’s Office; and the Claxton Police Department. Assistant United States Attorney Marcela C. Mateo is prosecuting the case for the United States.
This investigation took place under the umbrella of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority, with the reinvigorated PSN as the centerpiece of crime reduction strategies developed by all U.S. Attorney’s Offices.
“This multi-jurisdiction operation represents a significant step toward making our communities safer by removing violent criminals from the streets,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We are committed to working with law-abiding citizens to help break the cycle of criminal activity that feeds so much of the insecurity and despair in many of our neighborhoods, and that begins with getting these serial felons off the streets.”
“This criminal network posed a clear and present danger to the safety and security of the citizens in the Statesboro, Georgia area. Statesboro is a thriving college town and DEA and its law enforcement partners will see to it that this community is a safe haven for our children to obtain a higher education there,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The removal of these drug traffickers from this town automatically makes this community a safer place. These arrests area a perfect example of the success that can be achieved through multilevel law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office.”
Screven County Sheriff Mike Kile added, “This multi-agency joint investigation was initiated following the large volume of citizen complaints about illegal drug activity in Screven County and surrounding area and the unsolved murder of Lisa Scott and unknown location of missing person Travis Tankersley. Anyone with information regarding these incidents are asked to contact the Screven County Sheriff’s Office or Georgia Bureau of Investigation at 912-871-1121.”
An indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
For any questions, please contact Barry Paschal at (912) 652-4422.
- Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances, 21 U.S.C. § 846, which carries a sentence of 10 years imprisonment to life, along with fines of up to $10 million.
Staten Island-Based Health Care Service Agrees to Pay More than $1.6 Million to Settle False Claims Act Suit Alleging Fraudulent Billing PracticesRead the Press Release
Centers Plan for Healthy Living (“Centers Plan”), a Staten Island-based company that provides services to people who are chronically ill or who need long-term health care services, has agreed to pay $1,650,000 to settle civil fraud allegations that Centers Plan billed the Medicaid Program for services that it did not provide to Medicaid beneficiaries. The settlement agreement, which resolved claims under both the Federal and New York State False Claims Acts, was approved yesterday by United States District Judge Eric N. Vitaliano.
“When health care providers engage in fraudulent billing practices to improperly obtain Medicaid funds, they jeopardize the very integrity of Medicaid, a critical program that provides health coverage to millions of Americans,” stated United States Attorney Donoghue. “This Office will continue to vigorously prosecute those who seek to exploit Medicaid for their own enrichment.” Mr. Donoghue thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General and the Office of the Inspector General of the U.S. Department of Health and Human Services for their assistance in the investigation.
The government’s investigation revealed that, from April 2013 through December 2015, Centers Plan fraudulently enriched itself at the expense of Medicaid by knowingly and systematically submitting false claims for payment to Medicaid. In one scheme, Centers Plan improperly enrolled into its managed long-term health care plan individuals who were actually only eligible for Social Adult Day Care or transportation services. In another scheme, Centers Plan failed to disenroll members from its managed long-term health care plan who were no longer receiving qualified community-based long-term care services.
The allegations were brought to the government’s attention through the filing of a complaint pursuant to the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery.
The United States’ case is being handled by Assistant United States Attorney Joseph A. Marutollo of the Office’s Civil Division.
E.D.N.Y. Docket No. 14-CV-6129 (ENV)
St. Thomas Man Sentenced to 71 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
St. Thomas, USVI- Rehelio Trant, 39, of St. Thomas, was sentenced today in District Court for possession of a firearm by a convicted felon, United States Gretchen C.F. Shappert announced.
District Court Judge Curtis V. Gomez sentenced Trant to 71 months incarceration which will be consecutive to any other sentence the defendant may serve. In addition, Judge Gomez ordered that Trant be placed on three years supervised release, complete 300 hours of community service, and pay a $100 special assessment and a $2,000 fine.
According to the evidence presented at trial, on October 16, 2017, the Virgin Islands Police Department (VIPD) received a report from an individual that Trant brandished a firearm after a verbal confrontation with that individual. Trant had a prior conviction for a crime punishable by imprisonment for a term exceeding one year and firearms are not manufactured in the Virgin Islands.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
St. Croix Man Responsible for Frederiksted Grow Operation Pleads Guilty to Manufacture of MarijuanaRead the Press Release
St. Croix, USVI – On Tuesday, September 11, 2018, Roy Christian, 63, of St. Croix, Virgin Islands, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to manufacture of marijuana, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, on or about March 30, 2017, agents and officers of the DEA St. Croix Office executed a search warrant at the defendant’s residence in Frederiksted. Over 313 marijuana plants were seized growing in pots and in different stages of growth. A large quantity of processed marijuana and U.S. currency were also found. Defendant later admitted that he grew and sold marijuana. Laboratory analysis confirmed the plants were marijuana.
Christian faces a maximum sentence of five years in prison and a $250,000 fine. A sentencing date has been set for January 10, 2019.
The case was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Southeastern Provision Owner James Brantley Pleads Guilty to Federal InformationRead the Press Release
GREENEVILLE, Tenn. – On September 12, 2018, James Brantley, 61, of Bean Station, Tennessee, pleaded guilty before the Honorable J. Ronnie Greer, U.S. District Judge, to tax fraud, wire fraud, and employment of unauthorized illegal aliens. Brantley is the owner of Southeastern Provision, LLC (Southeastern Provision), a slaughterhouse and meatpacking plant located in Bean Station, Tennessee.
Brantley faces up to five years in prison, a $250,000 fine, and three years of supervised release for the tax counts. He faces a maximum of 20 years in prison, a $250,000 fine, and three years of supervised release on the wire fraud charge. Finally, he faces up to six months in prison and a fine of not more than $3,000 per unauthorized alien on the employment of unauthorized alien charge. Brantley also agreed to pay restitution to the United States government in the total amount of $1,423,588 on or before the date of his sentencing. Sentencing has been set for 1:30 p.m., February 4, 2019, in U.S. District Court.
A detailed account of Brantley’s scheme is contained in his plea agreement on file with the U.S. District Court and available to the public. According to the plea agreement, beginning in 1988 and continuing through April 2018, Brantley knowingly hired, or caused others employed by him to hire, unauthorized aliens to work as employees at Southeastern Provision. The unauthorized aliens were knowingly hired to reduce Brantley and Southeastern Provision’s FICA tax obligations, unemployment insurance premiums, unemployment tax obligations, and workers’ compensation insurance premiums.
In April 2018, a federal search warrant was executed at Southeastern Provision, during which agents discovered at least 104 unauthorized aliens employed there. Evidence showed that Brantley had previously reported to the Internal Revenue Service (IRS) that he had only 44 wage-earning employees. Further investigation revealed that he paid the unauthorized aliens in cash at a rate of $8-$10 per hour. The employees were also often asked to work overtime at their standard rate of pay, rather than the “time and a half” required by the Fair Labor Standards Act for overtime work.
“The April 2018 raid on Southeastern Provision came after a lengthy investigation by the Internal Revenue Service-Criminal Investigations and Homeland Security Investigations and resulted in the discovery of the unlawful employment of many illegal aliens and the seizure of voluminous records which documented the operation of Mr. Brantley’s wire and tax fraud schemes,” said U.S. Attorney J. Douglas Overbey. “The agents and prosecutors working on this case have diligently poured over the records and evidence since the raid to ensure that charging Mr. Brantley would result in bringing him to justice and ultimately his conviction. With this guilty plea, that has been accomplished.”
“As ICE Homeland Security Investigations has stated repeatedly – this agency is equally focused in its worksite enforcement efforts on the foreign nationals who unlawfully seek employment as well as the employers who knowingly hire them. This case was a criminal investigation from day one, not simply an immigration enforcement action, and today’s guilty plea clearly illustrates HSI’s dual focus on the issue,” said ICE Homeland Security Investigations New Orleans Special Agent in Charge Jere T. Miles. “Tax fraud is an outrage to hard-working Americans directly harmed when criminals cheat their obligation to society by failing to pay their fair share, and the employment of illegal workers also poses a serious threat to public safety as the use of fraudulent identity documents exposes Americans to potential identity theft and other financial harm.”
"Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizens that are harmed when someone tries to manipulate our nation's tax system for their personal gain," said Matthew D. Line, Special Agent in Charge. "Business owners like Mr. Brantley have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service. Failure to do so not only results in the loss of tax revenue to the United States government, but it also harms employees who lose future social security or Medicare benefits and creates an unfair business advantage over those employers who follow the law. Investigating cases of employment tax fraud is an investigative priority for IRS Criminal Investigation.”
Being neither a flight risk nor posing a danger to the community, Mr. Brantley was released on a recognizance bond pending sentencing.
This case was investigated by IRS-Criminal Investigation, U.S. Homeland Security Investigations, and Tennessee Highway Patrol. Assistant U.S. Attorneys TJ Harker and Meghan Gomez represented the United States in court proceedings.
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Shelby County Woman Sentenced to Prison for Stealing from EmployerRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a Shelby County woman to nearly two years in prison for stealing from the Bessemer company where she worked as a bookkeeper, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge Virginia Emerson Hopkins sentenced LUCY WOODS, 52, of Pelham, to 21 months in prison on four counts of wire fraud related to her stealing more than $150,000 from her former employer, Robert Warnock Co. Inc. Woods pleaded guilty to the charges in May. She must report to prison Nov. 12.
“This defendant blatantly abused the trust of her employer,” said Assistant U.S. Attorney Robin Beardsley Mark. “This sentence is a strong and clear message that abuse of trust and misuse of funds is unacceptable and anyone who considers engaging in similar conduct should know that it can lead to federal prison.”
“Ms. Woods exploited her position of trust with repeated conduct that was deliberate, deceptive and self-enriching, and the court has held her accountable,” Sharp said. “I, particularly, want to thank our partners with the Bessemer Police Department for their assistance in this case.”
Robert Warnock Co. is a manufacturer’s representative that sells capital equipment for the oil and gas industry. While employed by Robert Warnock, Woods fraudulently charged personal expenses totaling more than $30,000 on a corporate credit card account. She also forged, and made payable to herself, more than $120,000 in unauthorized checks from the corporate bank account, according to court records.
The FBI investigated the case in conjunction with the Bessemer Police Department, and Mark prosecuted the case.
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Serial Robber Sentenced to 32 Years in PrisonRead the Press Release
A Miami resident was sentenced, on September 7, 2018, to 32 years in prison by United States District Judge William P. Dimitrouleas for committing a string of armed robberies.
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, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Sergio Velazquez, Chief, Hialeah Police Department, made the announcement.
Damon Woodard, 27, of Miami, Florida, previously pled guilty to two counts of brandishing a firearm in furtherance of a crime of violence, in violation of, Title 18, United States Code, Section 924(c)(A)(1)(ii). Woodard was sentenced to a total of 384 months in prison, to be followed by 5 years of supervised release.
According to the court record, on December 9, 2017, Woodard robbed Murphy Gas Station in Miami Gardens, Florida, at gunpoint. On December 13, 2017, Woodard robbed a BP Gas Station in Dania Beach, Florida, at gunpoint. Woodard subsequently robbed numerous other businesses, including two check-cashing stores in Hialeah, Florida with codefendant Suwayne Hylton. In total, Woodard admitted his involvement in approximately 20 additional armed robberies in Broward and Miami-Dade Counties.
Hylton previously pled guilty to two counts of Hobbs Act Robbery. On July 9, 2018, Hylton was sentenced by Judge Dimitrouleas to 84 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $16,392 in restitution.
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, BSO and Hialeah Police Department in this matter. He also thanked the Davie Police Department, Hollywood Police Department, Hallandale Beach Police Department, Miami-Dade Police Department, Virginia Gardens Police Department, North Miami Beach Police Department, Miami Gardens Police Department, Fort Lauderdale Police Department, Pembroke Pines Police Department, and Miramar Police Department for their assistance. 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.
Senator Abel Nazario Quiñones Indicted and Arrested for Falsifying Documents and Wire FraudRead the Press Release
SAN JUAN, P.R. – Today, Senator Abel Nazario-Quiñones was arrested and charged in a 39-count indictment alleging the making or use of false documents and wire fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Puerto Rico Comptroller’s Office, the U.S. Department of Labor (DOL) Office of Inspector General (OIG), and the FBI are in charge of the investigation.
Defendant Nazario-Quiñones was first elected Mayor of Yauco, a municipality in Southwest Puerto Rico, in 2000, and continued to be the mayor until December of 2016. In May 2013, during a routine audit of the Municipality’s records, the PR Comptroller’s Office discovered that municipal employees were required to work two voluntary hours per day. This issue was referred to the DOL Wage and Hour Division (WHD), which determined that this voluntary work requirement was a violation of the Fair Labor Standards Act.
On February 2015, Nazario-Quiñones signed a Back Wage Compliance Payment Agreement with the DOL Wage and Hour Division in which he agreed to pay back wages totaling $588,961.43 to 177 municipal employees for the period of August 1, 2012 to July 31, 2014 according to a predetermined schedule listing each employee who was owed wages, the amount they were owed, and the date by which each employee had to be paid. The Agreement allowed the Municipality until February 2018 to complete all the payments.
In August 2016, during their next routine audit of the Municipality’s records, the PR Comptroller’s Office learned that, although employees had been receiving lump sum payments according to the terms of the Agreement, the Municipality unilaterally began withholding the employees’ regular wages without the knowledge or consent of the DOL WHD. This issue was referred to the DOL WHD who, in November 2016, referred it to the DOL Office of Inspector General (OIG).
The DOL OIG ultimately identified 30 contract municipal employees who, by the end of his mayoral term in 2016, Nazario-Quiñones had certified were paid their back wages pursuant to the Agreement. The DOL OIG also determined that those 30 contract municipal employees, after receiving the wages to which they were entitled under the Agreement, had their regular pay with-held for certain periods of time at the direction of Nazario-Quiñones while he provided various explanations to the employees as to why they were receiving these lump sum checks.
According to the indictment, between February 2015 and December 2016, Nazario-Quiñones falsely certified to the Department of Labor that he had paid back wages to the employees, according to the terms of the Agreement, and that he would not take any retaliatory action against the employees for accepting the payment. In fact, however, Nazario-Quiñones directed the payroll department to withhold future earnings of these employees for varying lengths of time, despite their continued work for the municipality. It is also alleged that defendant committed wire fraud as some of the forms used to certify the payments to the DOL WHD were sent via email.
“The defendant’s conduct undermines the confidence employees place in those who are supposed to protect and represent them,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “Government officials are governed by rules that are supposed to protect employees and the public. Yauco’s former mayor, skilled at convincing individuals to place their trust in him, engaged in a scheme to defraud his own employees. We will continue investigating and prosecuting this type of financial fraud to the full extent of the law.”
“An important mission of the Office of Inspector General is to investigate allegations that relate to U.S. Department of Labor programs designed to protect the wages of the American workforce. We will continue to work with our local and federal law enforcement partners to investigate these types of allegations,” stated Michael C. Mikulka, Special Agent-in-Charge, New York Region, U. S. Department of Labor Office of Inspector General.
The case is being prosecuted by Assistant United States Attorney Scott Anderson. The case was investigated by the Puerto Rico Comptroller’s Office, the U.S. Department of Labor (DOL) Office of Inspector General (OIG), and the FBI. Defendant Nazario-Quiñones is facing a maximum term of imprisonment of 20 years, and a fine not to exceed $1,000,000.
An indictment is only an accusation and not evidence of guilt. The defendant is presumed innocent until proven guilty.
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Second Baltimore Man Sentenced to over 5 Years in Federal Prison for Assaulting a Federal OfficerRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Earl Williams, age 30, of Baltimore, today to 66 months in prison, followed by 3 years of supervised release, for assaulting a federal officer.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; and Interim Police Commissioner Gary Tuggle of the Baltimore Police Department.
“This officer, like all law enforcement officers, put his life on the line in order to make our community safer,” said United States Attorney Robert K. Hur. “We will find and hold accountable those who assault the brave men and women who have sworn to protect us.”
“ATF Special Agents and Task Force Officers risk their safety and lives every day investigating violent offenders, including those who push drugs onto Baltimore’s streets. We do this to protect the community, and remove criminals and violence from their neighborhoods,” said ATF Baltimore Special Agent in Charge Rob Cekada. “Earl Williams and Devin Braxton showed no regard for human life when they violently beat our Task Force Officer, a member of our ATF family. We are immensely grateful that this TFO has made a full recovery and that these men are being held responsible for their crime.”
According to Williams’ plea agreement, on January 18, 2017, an ATF Task Force Officer (TFO) was working undercover in an investigation of a drug dealer in Baltimore.
While wearing an audio recording device, the TFO met the target drug dealer in front of a carryout store in the 1800 block of North Gay Street in Baltimore, where the drug dealer gave the TFO packaged crack cocaine in exchange for cash. While the TFO was engaged in the transaction, Earl Williams approached the TFO and poked his finger into the TFO’s hand that was holding the crack cocaine. The TFO attempted to excuse Williams, who persisted in his confrontation and began threatening the TFO. Williams and his co-defendant Devin Braxton then blocked the exit to the business. The TFO attempted to push Williams into the corner of the store, but, as the TFO struggled with Williams, Braxton began striking the TFO. Williams then wrestled the TFO to the ground, where Braxton and Williams punched and kicked the TFO, causing serious injuries. Hearing the commotion over the TFO’s audio recording device, ATF agents rapidly responded to the scene. Before agents could arrive, Braxton and Williams left the store. As they fled, Williams took the TFO’s cell phone and Braxton took the TFO’s service weapon.
ATF agents apprehended Braxton and Williams a short time later. They also recovered the TFO’s phone and service weapon. The TFO was taken to the hospital for treatment of his injuries.
Co-defendant: Devin Braxton, age 28, of Baltimore, was sentenced to five years in prison, followed by 3 years of supervised release, for assaulting a federal officer.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney John W. Sippel, who prosecuted the case.
Salem Man Sentenced for Assaulting TSA Security Officers at Portland International AirportRead the Press Release
PORTLAND, Ore. – Anthony Wayne Tavoloni, Jr., 45, of Salem, Oregon, was sentenced today to three years’ probation including three months of home detention for assaulting two Transportation Security Administration (TSA) Transportation Security Officers (TSO) at Portland International Airport (PDX).
According to court documents, on August 20, 2017, Tavoloni entered PDX, passed through the customer service and baggage claim areas, and entered the TSA checkpoint and screening zone leading to Concourses D and E. Upon entering the TSA checkpoint, a TSO asked Tavoloni for his boarding pass and identification. He replied, “No.” The TSO asked for Tavoloni’s boarding pass a second time to which he replied, “You really want to do this?” as he stepped toward the TSO. Tavoloni then walked behind the TSO’s table prompting the TSO to jump from her chair, back away from him, and yell, “Stop, Stop, Stop!” Tavoloni grabbed the TSO by her forearms and attempted to wrestle her to the ground.
Alerted, a number of passengers rushed to assist the TSO. Two passengers restrained Tavoloni, while others attempted to separate the TSO from his grip. With multiple TSOs now standing between Tavoloni and the victim, Tavoloni exclaimed “We’re about to have a bad day, do you really want to do this?” to which another TSO replied “No one needs to have a bad day.” Tavoloni then lunged at this TSO, striking him in the face with his hand. Tavoloni was promptly wrestled to the ground and held until Port of Portland Police arrived.
Tavoloni previously pleaded guilty to two counts of assaulting certain officers or employees in violation of 18 U.S.C. § 111(a)(1) on May 21, 2018.
This case was investigated by TSA and the FBI and prosecuted by John Brassell, Assistant U.S. Attorney for the District of Oregon.
Russian National Who Operated Kelihos Botnet Pleads Guilty to Fraud, Conspiracy, Computer Crime and Identity Theft OffensesRead the Press Release
Peter Yuryevich Levashov, aka “Petr Levashov,” “Peter Severa,” “Petr Severa” and “Sergey Astakhov,” 38, of St. Petersburg, Russia, pleaded guilty today in U.S. District Court in Hartford, Connecticut, to offenses stemming from his operation of the Kelihos botnet, which he used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Brain C. Turner of the FBI’s New Haven Division made the announcement.
“For over two decades, Peter Levashov operated botnets which enabled him to harvest personal information from infected computers, disseminate spam, and distribute malware used to facilitate multiple scams,” said Assistant Attorney General Benczkowski. “We are grateful to Spanish authorities for his previous arrest and extradition. Today’s guilty plea demonstrates that the Department will collaborate with our international law enforcement partners to bring cybercriminals to justice, wherever they may be.”
“Mr. Levashov used the Kelihos botnet to distribute thousands of spam e-mails, harvest login credentials, and install malicious software on computers around the world,” said U.S. Attorney Durham. “He also participated in online forums on which stolen identities, credit card information and cybercrime tools were traded and sold. For years, Mr. Levashov lived quite comfortably while his criminal behavior disrupted the lives of thousands of computer users. Thanks to the collaborative work of the FBI and our partners in law enforcement, private industry and academia, a prolific cybercriminal has been neutralized, and has now admitted his guilt in a U.S. courtroom.”
“Today justice has finally arrived for Peter Levashov, who is perhaps better known in the cyber community by his online identity, Peter Severa,” said FBI Special Agent in Charge Turner. “The FBI’s New Haven Division has been engaged in a multiyear investigation of Levashov, with evidence gathered from a number of countries around the world. Today’s guilty plea should serve as an unequivocal reminder to all those who use the internet for illicit purposes: The FBI will pursue you regardless of what country you live in and the length of time it might take to secure your eventual arrest. As we move forward, no cyber criminal should rest easy. The men and women of the FBI’s New Haven Division, along with the members of our Cyber Task Force and our many other federal, state, local, and tribal partners across the state, will continue to employ the same dedication and hard work, which made this effort such a success, to the continued protection of the citizens of Connecticut and the nation as a whole.”
According to court documents and statements made in court, a botnet is a network of computers infected with malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Since the late 1990s until his arrest in April 2017, Levashov controlled and operated multiple botnets, including the Storm, Waledac and Kelihos botnets, to harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov disseminated spam and distributed other malware, such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself. Over the course of his criminal career, Levashov participated in and moderated various online criminal forums on which stolen identities and credit cards, malware and other criminal tools of cybercrime were traded and sold.
Spanish authorities arrested Levashov in Barcelona on April 7, 2017, based upon a criminal complaint and arrest warrant issued in the District of Connecticut. At the time of Levashov’s arrest, Kelihos infected at least 50,000 computers.
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
On April 20, 2017, a grand jury in the District of Connecticut returned an indictment charging Levashov with multiple offenses related to this scheme. Levashov was extradited to the United States in February.
Levashov pleaded guilty before U.S. District Judge Robert N. Chatigny to one count of causing intentional damage to a protected computer, one count of conspiracy, one count of wire fraud and one count of aggravated identity theft.
Judge Chatigny scheduled sentencing for Sept. 6, 2019. Levashov is detained pending sentencing.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police. Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. The University of Alabama at Birmingham, ThreatStop, SpamHaus, Cisco, Cambridge University, and Cloudmark also provided invaluable assistance in the investigation and prosecution of Mr. Levashov.
Russian National Who Operated Kelihos Botnet Pleads Guilty to Fraud, Conspiracy, Computer Crime and Identity Theft OffensesRead the Press Release
Peter Yuryevich Levashov, aka “Petr Levashov,” “Peter Severa,” “Petr Severa” and “Sergey Astakhov,” 38, of St. Petersburg, Russia, pleaded guilty today in U.S. District Court in Hartford, Connecticut, to offenses stemming from his operation of the Kelihos botnet, which he used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Brian C. Turner of the FBI’s New Haven Division made the announcement.
“For over two decades, Peter Levashov operated botnets which enabled him to harvest personal information from infected computers, disseminate spam, and distribute malware used to facilitate multiple scams,” said Assistant Attorney General Benczkowski. “We are grateful to Spanish authorities for his previous arrest and extradition. Today’s guilty plea demonstrates that the Department will collaborate with our international law enforcement partners to bring cybercriminals to justice, wherever they may be.”
“Mr. Levashov used the Kelihos botnet to distribute thousands of spam e-mails, harvest login credentials, and install malicious software on computers around the world,” said U.S. Attorney Durham. “He also participated in online forums on which stolen identities, credit card information and cybercrime tools were traded and sold. For years, Mr. Levashov lived quite comfortably while his criminal behavior disrupted the lives of thousands of computer users. Thanks to the collaborative work of the FBI and our partners in law enforcement, private industry and academia, a prolific cybercriminal has been neutralized, and has now admitted his guilt in a U.S. courtroom.”
“Today justice has finally arrived for Peter Levashov, who is perhaps better known in the cyber community by his online identity, Peter Severa,” said FBI Special Agent in Charge Turner. “The FBI’s New Haven Division has been engaged in a multiyear investigation of Levashov, with evidence gathered from a number of countries around the world. Today’s guilty plea should serve as an unequivocal reminder to all those who use the internet for illicit purposes: The FBI will pursue you regardless of what country you live in and the length of time it might take to secure your eventual arrest. As we move forward, no cyber criminal should rest easy. The men and women of the FBI’s New Haven Division, along with the members of our Cyber Task Force and our many other federal, state, local, and tribal partners across the state, will continue to employ the same dedication and hard work, which made this effort such a success, to the continued protection of the citizens of Connecticut and the nation as a whole.”
According to court documents and statements made in court, a botnet is a network of computers infected with malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Since the late 1990s until his arrest in April 2017, Levashov controlled and operated multiple botnets, including the Storm, Waledac and Kelihos botnets, to harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov disseminated spam and distributed other malware, such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself. Over the course of his criminal career, Levashov participated in and moderated various online criminal forums on which stolen identities and credit cards, malware and other criminal tools of cybercrime were traded and sold.
Spanish authorities arrested Levashov in Barcelona on April 7, 2017, based upon a criminal complaint and arrest warrant issued in the District of Connecticut. At the time of Levashov’s arrest, Kelihos infected at least 50,000 computers.
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
On April 20, 2017, a grand jury in the District of Connecticut returned an indictment charging Levashov with multiple offenses related to this scheme. Levashov was extradited to the United States in February.
Levashov pleaded guilty before U.S. District Judge Robert N. Chatigny to one count of causing intentional damage to a protected computer, one count of conspiracy, one count of wire fraud and one count of aggravated identity theft.
Judge Chatigny scheduled sentencing for Sept. 6, 2019. Levashov is detained pending sentencing.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut and Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. The University of Alabama at Birmingham, ThreatStop, SpamHaus, Cisco, Cambridge University, and Cloudmark also provided invaluable assistance in the investigation and prosecution of Mr. Levashov.
Rock Hill Man Sentenced to 150 Months on Federal Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Zadgery Collins McNeil, age 32, of Rock Hill, was sentenced in federal court to a total of 150 months imprisonment, to be followed by 4 years of supervised release. McNeil plead guilty earlier this year to felon in possession of a firearm and ammunition and possession with intent to distribute marijuana, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(D), and 851. Chief United States District Judge Terry L. Wooten of Columbia imposed the sentence, which consisted of 100 months imprisonment on the firearm charge and a consecutive 50 months imprisonment on the marijuana charge.
Evidence presented in court established that at approximately 1:25 pm on December 6, 2016, Rock Hill Police Department received numerous 911 calls regarding a shooting on Jones Avenue, at McNeil’s residence. Investigation revealed that individuals were shooting at McNeil, when he went around the corner of the house and came back with a handgun. Thereafter, the other individuals fled from the scene in an SUV and McNeil fled in his car. An officer responding to the shooting encountered McNeil’s car at the intersection of South Stonewall Street and Arch Drive. The officer observed McNeil step out of his car, fire a handgun several times at an SUV that was approaching, and then speed away. Officers attempted a traffic stop and McNeil pulled into the driveway of a residence. McNeil bailed from his car, which then crashed into the porch of the house. A footchase ensued during which McNeil threw down the handgun. McNeil ran into a nearby home and the residents, who had children in the home, alerted law enforcement. McNeil was placed under arrest a short time later and officers recovered $550 and the discarded loaded Smith and Wesson .40 caliber handgun. A search of McNeil’s vehicle revealed approximately 348 grams of marijuana and a spent shell casing along with other items linked to McNeil.
McNeil is prohibited under federal law from possessing firearms and ammunition based upon his prior separate South Carolina state convictions for possession of crack cocaine (2006), assault and battery of a high and aggravated nature (2007), possession with intent to distribute marijuana (2012), possession with intent to distribute marijuana near a park (2014), and distribution of marijuana 2nd offense (2014). At the time of the instant offense, McNeil was on state probation for a North Carolina conviction for possession of a firearm by a felon (2014).
The case was investigated by the Federal Bureau of Investigation (FBI) and the Rock Hill Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Queen Anne’s County Couple Pleads Guilty to Multi-State Crime Spree Including ATM Burglaries and Transportation of Stolen VehiclesRead the Press Release
Baltimore, Maryland –Matthew Dale Bush, age 39, and Crystal French, a/k/a “Crystal Lynn Bush,” age 34, both of Grasonville, Maryland, pleaded guilty to conspiring to commit bank larceny, interstate transportation of stolen goods, and interstate transportation of stolen vehicles. Bush also pleaded guilty to bank robbery and to illegal possession of a firearm and ammunition. Bush entered his guilty plea on September 11, 2018, and French pleaded guilty today.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to their respective plea agreements, from September 2017 through October 23, 2017, Bush and French conspired to break into retail businesses in order to steal Automated Teller Machines (ATMs) and the money contained inside. The couple admitted that they used stolen vehicles to travel to and from the scenes of the crimes.
In September and October 2017, the couple stole six ATMs that contained over $38,900, and attempted to steal two other ATMs. As part of the conspiracy, the couple traveled to, and stole from, businesses in: Stevensville, Maryland; Chester, Maryland; Kent County, Delaware; Sterling, Virginia; Broadlands, Virginia; Dover, Delaware; Stevensville, Maryland; and Cambridge, Maryland. Generally, Bush entered the store wearing a mask, attached a chain or rope to the ATM, and pulled the ATM out of the store through the front glass window. Bush and French then transported the ATM and its contents to their home in Grasonville, where they hid the proceeds. Bush and French spent the proceeds of the crimes they committed on personal items, including heroin and other illegal narcotics. Bush and French married on October 14, 2017, during the crime spree.
Law enforcement obtained a state search warrant for Bush and French’s residence. On October 19, 2017, just prior to the execution of the search warrant, the police saw Bush and French leave the residence in a green Mercedes. When Bush and French saw a marked Queen Anne’s County patrol vehicle, they sped away. During the search, police recovered the following evidence: tow straps used to pull the ATM machines from the stores; sledgehammers used to break the glass at the burglaries; masks and clothing worn by the suspects in the surveillance videos at the burglaries; the license plate to one of the stolen pickup trucks, cut in numerous pieces; packaging for “walkie-talkies” used by Bush and French during some of the ATM burglaries; and a van containing several damaged ATM machines. The police also found French’s cell phone, a loaded 12 gauge shotgun near the bed where Bush slept, and additional shotgun ammunition in the garage. Bush is prohibited from possessing a firearm due to previous felony convictions, including 2010 convictions for assault and burglary related to a number of Delaware ATM burglaries.
On October 22, 2017, Bush and French stole a pick-up truck in White Marsh, Maryland, and drove to a gas station in Harford County. Bush entered the gas station and demanded money, but the clerk refused to give Bush the cash. Bush and French then drove to Lancaster County, Pennsylvania, where they left the pick-up truck stolen in White Marsh and stole another pick-up truck. Bush and French then drove the second stolen pick-up truck to a convenience store in Harford County, Maryland. Bush and another person, both wearing masks and hats, broke into the convenience store and stole approximately 86 packs of cigarettes. Later that morning, Bush and French drove to a bank on Bel Air Road in Perry Hall, Maryland. While French remained in the passenger seat of the truck, Bush entered the bank and displayed a note demanding money to the teller, who complied with Bush’s demands. Bush stole $4,820, fled the bank, got into the truck and drove away in the stolen truck.
Officers spotted Bush and French leaving the bank and attempted a traffic stop. Bush refused to stop. He drove away in a reckless manner, fled into Baltimore City, finally crashing into another vehicle. Bush then got out of the truck, helped French out of the passenger side, and the two ran away, followed by at least two police officers. Bush and French were caught and arrested. The cigarettes stolen from the convenience store were found in the stolen truck.
French faces a maximum sentence of five year in prison for the conspiracy. Bush and the government have agreed that if the Court accepts the plea agreement Bush will be sentenced to between four and 10 years in prison for the conspiracy, bank robbery, and gun charge. U.S. District Judge Richard D. Bennett has scheduled sentencing for Bush on December 11, 2018 at 3:00 p.m. and for French on December 12, 2018, at 3:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the HSI, the Maryland State Police, the Delaware State Police, the Queen Anne’s County Sheriff’s Office, the Harford County Sheriff’s Office, the Baltimore County Police Department, and the Loudon County, Virginia Sheriff’s Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul Budlow and Sandra Wilkinson, who are prosecuting the case.
Pittsburgh Felon Illegally Possessed A Pistol and AmmunitionRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Deondre Steave, age 25, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on or about September 28, 2017, Steave, an individual with prior felony convictions for Conspiracy to Possess with the Intent to Distribute 100 Grams or More of Heroin and Escaping from Federal Custody, did knowingly and unlawfully possess a Kahr CW .40 caliber pistol and ammunition. 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.
Judge Bissoon scheduled sentencing for February 5, 2019 The law provides for a total sentence of not more than 10 years in prison, a fine of not more than $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.
Pending sentencing, the court ordered the prior detention order to remain in effect.
Assistant United States Attorney Brendan T. Conway is prosecuting 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.
The Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Steave.
Philadelphia Man Sentenced to 20 Years in Prison Plus 20 Years of Supervised Release for Videotaping Children with Hidden CameraRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Roger Wallach, 38, of Philadelphia, PA was sentenced today to 240 months in federal prison for manufacturing videos and images of two girls, ages 10 and 11, over a period of three months.
Wallach previously pleaded guilty to nine counts of manufacturing and attempting to manufacture child pornography, and one count of possession of child pornography. As part of his guilty plea, Wallach admitted that he concealed a spy watch in a bathroom and surreptitiously recorded the 10- and 11-year-old girls as they undressed, used the bathroom, and showered. He also used the webcam on his laptop computer to record them undressing and in various states of nudity. All total, he had hundreds of sexually explicit images of both girls that he saved on his cell phone, in his iCloud account, on his laptop, and on the memory of his spy watch.
In addition to the term of imprisonment, the court imposed a 20-year term of supervised release and ordered that the defendant undergo a sex offender evaluation and treatment after his release from federal prison.
“Child predators are among the worst type of criminals,” said U.S. Attorney McSwain. “They prey on those whose very innocence makes them the most likely to be targeted. While the lengthy prison sentence and 20-year term of supervised release ordered today does not erase the defendant’s deplorable actions, it is a stern punishment that will help to protect some of society’s most vulnerable victims.”
“Wallach’s heinous crimes robbed these young girls of their innocence and childhood,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. Although, today’s sentence cannot repair the damage Wallach caused, it sends the message to other predators that the FBI remains committed to hunting them down and holding them accountable.”
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Michelle Rotella.
Paterson, New Jersey, Man Admits Distributing Fake Percocet Pills Containing HeroinRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted distributing thousands of pills containing heroin in New Jersey, U.S. Attorney Craig Carpenito announced.
Juan Vidal, 33, of Paterson, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of conspiring to distribute, and possess with intent to distribute, more than 100 grams of substances containing heroin.
According to documents filed in this case and statements made in court:
At his residence, Vidal manufactured pills containing heroin that were made to resemble Percocet pills. He used a press to make the pills, and he another individual, Karen Rojas, sold the pills for approximately $5 per pill. Between February 2018 and April 2018, Vidal manufactured, and Rojas sold, thousands of pills.
On April 18, 2018, for example, in a recorded transaction, Rojas was asked by a cooperating witness for 100-150 heroin pills. Rojas sold the cooperating witness 40 heroin pills for approximately $200, and Rojas indicated that Vidal needed to “get supplies,” meaning purchase more heroin, in order to make additional pills. Vidal and Rojas were previously charged by criminal complaint in April 2018 with conspiracy to distribute these drugs.
The distribution of narcotics offense carries a mandatory minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Dec. 18, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Rojas’ case is pending. The charge and allegations against her are merely accusations, and she remains innocent unless and until proven guilty.
Passaic County, New Jersey, Woman Sentenced to 37 Months in Prison for Crime Spree that Included Robbing Bergen County BankRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, woman, was sentenced today to 37 months in prison for her role in a month-long crime spree that included attempting to rob a Citizens Bank, in Tannersville, Pennsylvania, at gunpoint, conspiring to rob a Keystone Bank in Scotrun, Pennsylvania, and robbing a Spencer Savings Bank in Garfield, New Jersey, at gunpoint, U.S. Attorney Craig Carpenito announced.
Melisa Aquino Arias, 24, of Passaic, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging her with one count of attempted bank robbery, one count of attempted conspiracy to steal from a bank, and one count of bank robbery. Judge Chesler imposed the sentence today in Newark federal court.
Her co-defendant, Swahilys Pedraza-Rodriguez, 20, of New Haven, Connecticut, pleaded guilty before Judge Chesler on April 5, 2018, to an information charging her with the same offenses. She is scheduled to be sentenced Sept. 13, 2018.
According to documents filed in this case and statements made in court:
On Aug. 28, 2017, Arias and Pedraza-Rodriguez, both disguised in nuns’ habits, entered a Citizens Bank in Tannersville, Pennsylvania. While inside, Arias acted as a lookout as Pedraza-Rodriguez took out what appeared to be gun and demanded money from a bank teller. Arias signaled to Pedraza-Rodriguez that they should leave the bank and the women fled empty-handed.
On Sept. 20, 2017, Arias and Pedraza-Rodriguez agreed to steal money from the drive-through ATM machine at a Keystone Bank in Scotrun, Pennsylvania. Arias drove them, both wearing hijabs, to the ATM machine and again acted as a lookout while Pedraza-Rodriguez attempted to pry open the ATM machine with a screwdriver. Those attempts were unsuccessful, and the women again fled the scene.
On Sept. 27, 2017, Pedraza-Rodriguez and Arias entered a Spencer Savings Bank in Garfield, New Jersey, and asked a bank teller for information about opening a bank account. Arias, who was wearing a blue hijab, took out what appeared to be a black handgun and demanded money, while Pedraza-Rodriguez stood guard by the bank manager. After a bank teller handed them some cash, the defendants left the bank and employees immediately alerted the police. Law enforcement officers responded to the scene, but did not immediately locate the robbers.
On Oct. 15, 2017, Pedraza-Rodriguez and Arias entered an NVE Bank in Teaneck, New Jersey. Arias wore an orange hijab and Pedraza-Rodriguez wore a black head covering. They approached a bank employee and requested information about opening a bank account. The employee recognized the women as the alleged perpetrators of the Garfield bank robbery. As the employee went to alert the police, the women left the bank. Pedraza-Rodriguez and Arias were apprehended soon after by law enforcement officers.
In addition to the prison term, Judge Chesler sentenced Aria to three years of supervised release and ordered her to pay $2,900 in restitution to Spencer Savings Bank.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Garfield Police Department, under the direction of Chief Raymond Kovach; the Teaneck Police Department, under the direction of Chief Glenn M. O'Reilly; the Leonia police department, under the direction of Chief Thomas P. Rowe; and the Pocono Township Police Department, under the direction of Chief Kent Werkheiser with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Parma Heights man indicted for four bank robberiesRead the Press Release
A Parma Heights man was indicted for robbing four banks this summer.
Joshua Allen Duncan, 32, was indicted on four counts of bank robbery.
According to the indictment, Duncan robbed:
- PNC Bank at 330 E. Main Street in Ravenna on July 17.
- Dollar Bank at 7450 W. Ridgewood Dr. in Parma on Aug. 6
- KeyBank at 6284 Pearl Road in Parma Heights on Aug. 14
- Andover Bank at 1853 State Route 45 North, Austinburg on Aug. 21
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Federal Bureau of Investigation and police departments of Ravenna, Parma and Parma Heights.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ohio Man Charged with Distributing Heroin in Western PARead the Press Release
PITTSBURGH, PA – An Ohio man has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on August 29, 2018, named Frank Christian, 45, of Youngstown, Ohio, as the sole defendant.
According to the indictment, on or about February 22, 2016, in the Western District of Pennsylvania, Christian possessed with the intent to distribute and distributed heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania State Police, and New Castle Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio Man Charged with Large Scale Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gilroy Stewart, age 48, of Cleveland, Ohio, was indicted by a federal grand jury on drug trafficking charges.
According to United States Attorney David J. Freed, the indictment charges Stewart with possession with intent to distribute in excess of five kilograms of cocaine on or about August 28, 2018, in Carbon County, Pennsylvania.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. Assistant United States Attorney Robert J. O’Hara 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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge carries a mandatory minimum sentence of ten years in prison. The maximum penalty under federal law is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Odessa Businessman Sentenced to Federal Prison for Money Laundering and Tax EvasionRead the Press Release
In Midland today, a federal judge sentenced 40-year-old Jose Abelardo Dominguez to three years in federal prison for his role in money laundering and tax evasion schemes, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge D. Richard Goss, Houston Field Office; Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton, El Paso Division; and, Texas Department of Public Safety Director Steven McCraw.
In addition to the prison term, U.S. District Judge David Counts ordered that Dominguez pay $1,971,072.45 in restitution to the IRS, a $10,000 fine and a money judgement in the amount of $5,088,507.98. Judge Counts further ordered Dominguez to forfeit to the Government seven real estate properties in Ector and Midland counties; approximately $375,000 in U.S. currency seized from various bank accounts; approximately $140,000 in U.S. Currency seized from two of his Odessa properties; and, four vehicles. Judge Counts also ordered that Dominguez be placed on supervised release for a period of three years after completing her prison term.
According to court records, an investigation conducted by the FBI, IRS-CI, HSI, and Texas DPS revealed that Dominguez operated an illegal sports wagering enterprise from 2011 to 2016. Dominguez provided gamblers opportunities to place bets using websites www.betvegas365.com and www.1betvegas.com. Gambling debts owed to Dominguez were usually paid through U.S. currency, checks, wire transfers or direct deposits into one of several bank accounts controlled by Dominguez. Dominguez used those funds to purchase real property and vehicles or to fund business ventures. Dominguez created two businesses—Peps Properties in June 2011 and Permian Basin Consulting, LLC in January 2014—and used them and their corresponding business bank accounts to launder proceeds from his sports wagering operation and conceal the source and/or nature of those proceeds. In 2014, Dominguez received in excess of $2.3 million dollars in gambling proceeds.
On June 19, 2018, Dominguez pleaded guilty to one count of money laundering and one count of tax evasion. By pleading guilty, Dominguez admitted that in August 2014, he engaged in a monetary transaction with criminally derived proceeds. Dominguez also admitted that he provided a federal income tax return for 2014 in which he falsely underreported his taxable income as $63,496.
Assistant U.S. Attorney William F. Lewis prosecuted this case on behalf of the Government.
Norwood Man Sentenced to 22 Years in Federal Prison for Heroin TraffickingRead the Press Release
BOSTON – A Norwood man was sentenced today in federal court in Boston for distributing heroin in the Taunton area.
Oristel Soto-Peguero, 25, was sentenced by U.S. District Court Judge Rya W. Zobel to 22 years in prison and five years of supervised release. In April 2018, Soto-Peguero was convicted by a federal jury of possession with intent to distribute more than one kilogram of heroin, conspiring to distribute more than one kilogram of heroin, and discharging a firearm during and in relation to a drug offense.
In early 2015, federal agents conducted a wiretap investigation of Eddyberto Mejia-Ramos, a regional heroin trafficker operating in Taunton. In May and June, agents identified Soto-Peguero as Mejia-Ramos’ primary source of supply. On July 6, 2015, law enforcement intercepted calls in which Mejia-Ramos asked Soto-Peguero to send him something “heavy,” to which Soto-Peguero responded that his girlfriend was on her way. At that time, agents were conducting surveillance outside Soto-Peguero’s Norwood apartment and observed co-conspirator Mercedes Cabral exit the apartment and drive towards Taunton. During a subsequent traffic stop, officers found 10 blocks of heroin (918 grams) protruding from Cabral’s purse.
After seizing the heroin, law enforcement officers attempted to secure Soto-Peguero’s apartment in anticipation of obtaining a federal search warrant. They knocked on the door and announced the presence of police, but no one answered. As officers began a forced entry through the front door, someone inside fired a gunshot through the front door. Fortunately, no one was shot. Officers eventually gained entry and arrested two men, identified as Soto-Peguero and Luis Guzman-Ortiz. The next day, officers executed a search warrant at the home and seized two kilograms of heroin, a loaded semiautomatic pistol, two hydraulic drug presses, and other evidence that showed the apartment was being used to prepare and package heroin. Gunshot residue testing and other evidence established that Soto-Peguero fired the shot through the door.
In September 2016, Mejia-Ramos was sentenced to 90 months in prison. In May 2017, Cabral was sentenced to time served (22 months) and three years of supervised release. Guzman-Ortiz was convicted by a federal jury in June 2018. He has not yet been sentenced.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Investigative assistance was provided by the Massachusetts State Police and the Massachusetts State Police Criminal Laboratory; the Bristol County Sheriff’s Office; and the Norwood, Taunton, Bridgewater, Fall River, New Bedford, Fairhaven, Westport, and Attleboro Police Departments. Assistant U.S. Attorneys Theodore Heinrich and Brian Pérez-Daple of Lelling’s Criminal Division prosecuted the case.
North Dakota Woman Charged with Making False Statements to Federal AgencyRead the Press Release
United States Attorney Ron Parsons announced that a Fort Totten, North Dakota, woman has been indicted by a federal grand jury in North Dakota for Making False Statements to Federal Agency.
LaRon Greywater, age 44, was indicted on September 5, 2018. She appeared before U.S. Magistrate Judge Alice Senechal on September 10, 2018, in Grand Forks, North Dakota, and pled not guilty to the Indictment.
Greywater faces up to 15 years in federal prison and/or a $250,000 fine, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Greywater, a former Bureau of Indian Affairs police officer, was on duty and driving in a BIA vehicle on September 20, 2017. She failed to stop at a stop sign and yield the right of way to other traffic at an intersection on the Spirit Lake Indian Reservation. A collision occurred and she allegedly made false representations about the brakes on her vehicle malfunctioning which caused the wreck.
The charges are merely accusations and Greywater is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, Internal Affairs Division. Assistant U.S. Attorney Tim Maher is prosecuting the case on behalf of the United States Attorney General and United States Attorney Ron Parsons. Greywater was released on pretrial conditions pending trial. A jury trial date has not been set yet.
Nicholas Rivecca, Sr., and Sonag Ready Mix, LLC to Pay $629,732 to Resolve False Claims Act Allegations Regarding Disadvantaged Business EnterprisesRead the Press Release
United States Attorney Matthew D. Krueger announced today that Nicholas Rivecca, Sr., of Hartland, Wisconsin, and his company, Sonag Ready Mix, LLC, located in Milwaukee, Wisconsin, have agreed to pay $629,732 to resolve allegations that they violated the False Claims Act by defrauding the United States Department of Transportation’s Disadvantaged Business Enterprise (“DBE”) program.
The DBE program provides small businesses owned and controlled by socially and economically disadvantaged individuals a fair opportunity to compete for federally funded transportation contracts. At the time of the alleged fraud, Rivecca was an owner of Sonag Ready Mix, and Sonag Remedy Mix was not eligible to participate in the DBE program. The government alleges that Rivecca and others conspired to obtain fraudulently DBE certification for another entity, Nuvo Construction Company, Inc. Rivecca and others then used Nuvo’s improper DBE certification to obtain ready-mix concrete contracts based on the false representation that Nuvo provided ready-mix concrete independently when, in truth, Sonag Ready Mix and its employees performed almost all of the work. All of the profits from Nuvo’s ready-mix concrete contracts, moreover, passed through to Sonag Ready Mix (and, ultimately, to Rivecca and his co-owner).
In a related criminal case, Case No. 18-CR-64, Rivecca pleaded guilty to a criminal information charging him with conspiracy to use Nuvo’s DBE status to win government-funded contracts. This settlement resolves related civil allegations that Rivecca and Sonag Ready Mix caused the submission of false claims to the government and thus improperly obtained government funds. As a result of the settlement, the federal government will receive $629,732.
United States Attorney Krueger stated: “This settlement reflects our commitment to protecting federally funded programs from fraud. Firms that seek public funds must understand that cheating and lying to win government-funded contracts will not be tolerated.”
“Disadvantaged Business Enterprise (DBE) fraud harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts,” said Thomas J. Ullom, Regional Special Agent-in-Charge of the U.S. Department of Transportation (DOT) Office of Inspector General. “Our agents will continue to work with Federal, State, and local law enforcement and prosecutorial partners to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs throughout Wisconsin and elsewhere.”
FBI Special-Agent-in-Charge R. Justin Tolomeo added: “The FBI is proud to be part of the continued interagency collaboration on this matter, and appreciates the efforts of the U.S. Attorney’s Office that led to this settlement.”
“The Defense Criminal Investigative Service will investigate all allegations of abuse related to Government set aside programs designed to encourage and support veteran, woman and minority owned small businesses. DCIS will pursue all appropriate criminal, civil and administrative actions against individuals who abuse these programs for illicit financial gain, stated John F. Khin, Special Agent in Charge, Southeast Field Office.”
The civil matter is being handled by Assistant United States Attorney Michael Carter. The following agencies are participating in the investigation: U.S. Department of Transportation, Office of Inspector General; the Federal Bureau of Investigation; U.S. General Services Administration, Office of Inspector General; Department of Veterans Affairs, Office of Inspector General; Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; U.S. Small Business Administration, Office of Inspector General, Investigations Division; Defense Contract Audit Agency; and U.S. Army Criminal Investigations Command Major Procurement Fraud Unit.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
New Jersey Man Pleads Guilty to Tax Evasion in Connection with Sale of Purportedly Original Caravaggio PaintingRead the Press Release
A New Jersey man pleaded guilty today to tax evasion in connection with over $1.2 million in income related to the proceeds of a sale of a purportedly original Caravaggio painting.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Matthew D. Line, Acting Special Agent in Charge of IRS Criminal Investigation’s (IRS-CI) Nashville Field Office and Special Agent in Charge Troy Sowers of the FBI’s Knoxville Field Office made the announcement.
Brian Gimelson, 48 of Lawrenceville, New Jersey, pleaded guilty to two counts of attempting to evade or defeat a tax before U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana. He is scheduled to be sentenced on Feb. 1, 2019 by Judge Pratt.
According to admissions made in connection with his guilty plea, Gimelson earned a substantial income for his role in a transaction involving the sale of a purportedly original painting by the Italian painter Michelangelo Merisi, commonly known as Caravaggio titled David With the Head of Goliath (the Caravaggio Painting). Despite earning over $1.2 million in income on this transaction, Gimelson did not timely file income tax returns and he did not timely pay tax due and owing to the United States.
In order to conceal his income and evade the payment of his tax liabilities, Gimelson created a company, had his wife serve as managing member of the company, and used this company to facilitate the Caravaggio Painting transaction. Despite creating this company in his wife’s name, Gimelson admitted that he controlled the company and its bank accounts, including the fees Gimelson received for his role in the Caravaggio Painting transaction. Gimelson further admitted that he directed his wife to make frequent and substantial cash withdrawals on his behalf from company accounts, and Gimelson used company funds to purchase collectibles and precious metals, among other things.
The case is being investigated by IRS-CI’s Nashville Field Office and the FBI’s Knoxville Field Office. The case is being prosecuted by Trial Attorneys Danny Nguyen and Caitlin Cottingham of the Criminal Division’s Fraud Section.
New Jersey Broker Charged in “Cherry-Picking” SchemeRead the Press Release
BOSTON – A former New Jersey broker was arrested and charged today with defrauding his clients by engaging in a multi-year “cherry-picking” scheme.
Michael Bressman, 61, of Montville, N.J., was arrested and charged in an indictment unsealed today with securities fraud and investment advisor fraud. Bressman will appear this afternoon in federal court in New Jersey.
The indictment alleges that Bressman misused his access to an omnibus or “allocation” account to obtain at least $700,000 in illicit trading profits over a six-year period ending in February 2018. Bressman allegedly used the allocation account to place trades and cherry-picked profitable trades, which he then transferred to his own account and the account of two family members, while placing unprofitable trades in other customers’ accounts.
In a parallel action, the Securities and Exchange Commission (SEC) in New York today announced civil charges against Bressman.
The charge of securities fraud provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $5 million. The charge of investment advisor fraud provides for a sentence of no greater than five years in prison, two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The SEC’s Market Abuse Unit in New York provided assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mississippi Officer Sentenced for Assault of Restrained Juvenile DetaineeRead the Press Release
Edward Gibson, a former officer at a Mississippi juvenile detention facility, was sentenced today in federal court to 24 months incarceration followed by three years supervised release for beating a shackled juvenile, announced Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney William C. Lamar of the Northern District of Mississippi, and Christopher Freeze, Special Agent in Charge of the FBI, Jackson Field Division.
Gibson, 28, was working as an officer at the Leflore County Juvenile Detention Center on June 16, 2016, when he assaulted a teenage victim who was in handcuffs and leg shackles. Gibson threw an electric fan at the victim, hitting him in the upper chest. Gibson then punched the victim multiple times before being pulled off by two other officers. The other officers had to step in two more times to prevent Gibson from further assaulting the victim, who was in restraints throughout the entire incident.
According to admissions made by Gibson during the plea hearing, the victim was never physically aggressive toward Gibson, and Gibson assaulted him only because the victim made statements that angered him. Gibson weighed approximately 315 pounds; the victim weighed approximately 130 pounds.
Gibson’s supervisor, Dianne Williams, was sentenced on Aug. 23 to time served for helping cover up the assault. She had pleaded guilty to misprision of a felony, admitting that she knew the assault had occurred, did not inform a responsible authority, and helped cover it up by writing a false report.
“Detention officers have an important duty to protect juveniles in their care from abuse or bodily harm,” said Acting Assistant Attorney General John Gore. “This Department will continue to prosecute detention officers who engage in illegal acts of violence or attempts to obstruct justice, in order to better protect the civil rights of detained individuals.”
“We are morally, constitutionally, and legally obligated to treat people humanely and we will continue to enforce the laws protecting the civil rights of all individuals,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi.
“Deprivation of civil rights by a public official compromises the public’s trust,” said Special Agent in Charge Freeze. “The FBI will continue to rigorously investigate violations of civil rights.”
This case was investigated by the Jackson Division of the FBI, with the cooperation of the Leflore County Detention Center and the Leflore County Detention Center. It was prosecuted by Assistant United States Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Miami-Dade County Resident Sentenced to 22 Years in Prison for Multiple Robberies of Commercial EstablishmentsRead the Press Release
On August 28, 2018, Alfredo Garcia, 35, of Miami-Dade County, was sentenced to a total of 264 months in prison by U.S. District Court Judge Federico A. Moreno, after previously pleading guilty to three counts of Hobbs Act robbery and one count of brandishing a firearm in furtherance of a crime of violence.
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 Jorge R. Colina, Chief, City of Miami Police Department (MPD), made the announcement.
According to court records, between February 11, 2016, and February 14, 2016, Garcia robbed a Stop & Shop convenience store, a Valero Gas Station, and a Westar Gas Station, all in Miami-Dade County. In each robbery, Garcia approached the cashier, stated that he had a firearm, and demanded money from the cash register. During the robbery of the Stop & Shop convenience store, Garcia displayed the butt of a firearm that was in his jacket pocket.
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 investigatory efforts of the ATF and MPD in this matter. This case was prosecuted by Assistant United States Attorney David Turken.
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.
Miami Woman Sentenced for her Role in a Methamphetamine Distribution Conspiracy Orchestrated from PrisonRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Robin Tracy Zumwalt, 36, of Miami, Oklahoma, was sentenced today in United States District Court to three years of probation with eight months of home detention for her role in a methamphetamine drug distribution conspiracy.
At a plea hearing on June 7, 2018, Zumwalt admitted to discussing the distribution of more than 500 grams of methamphetamine facilitated by cell phone calls with an inmate, Slint Tate, who used contraband cell phones. When the calls were made, Zumwalt was living in Miami, Oklahoma, while Tate was serving a life sentence in Oklahoma state prison. On Tuesday, United States District Judge Claire V. Eagan sentenced Tate to 20 years in prison for orchestrating the drug conspiracy.
“This drug trafficking organization wreaked havoc in the lives of many in northeastern Oklahoma. Zumwalt and her co-conspirators earned the punishments received,” said U.S. Attorney Shores. “This prosecution was successful because of strong partnerships among federal, state, and local law enforcement officials. Working together, we achieved a result that makes our communities safer.”
This prosecution resulted from a joint investigation, known as “Operation Mama Tried,” conducted by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, State of Oklahoma District 13 Task Force, Oklahoma Bureau of Narcotics, Miami Police Department, and Grove Police Department. Assistant U.S. Attorneys Shannon Cozzoni and Catherine Depew prosecuted the case.
Men from Cleveland and Euclid indicted for federal firearms violationsRead the Press Release
Two men from Northeast Ohio were indicted on federal firearms charges.
Steven Kennedy, 29, of Euclid, and Eric T. Gibson, Jr., 23, of Cleveland, were both indicted for being felons in possession of firearms.
Gibson possessed a Smith & Wesson 9 mm pistol and 16 rounds of ammunition on July 13 despite a previous conviction for robbery with a firearm specification, according to the indictment.
Kennedy possessed a Smith & Wesson .40-caliber pistol and 14 rounds of ammunition on Aug. 21, despite a previous conviction for domestic violence, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
These cases are being prosecuted by Assistant U.S. Attorney Brian Deckert following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police (Gibson) and the Euclid Police Department (Kennedy).
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Extended Deadline for NYCHA Monitor ApplicationsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States Attorney’s Office for the Southern District of New York has extended the deadline for receiving applications from qualified individuals to serve as Court-appointed monitor in connection with a proposed consent decree submitted to the Court for approval in the case of United States v. New York City Housing Authority, 18 Civ. 5213 (WHP). Specifically, applications will be accepted until the date that the Court enters the proposed consent decree.
Applications will continue to be considered on a rolling basis as they are submitted, and applicants are encouraged to submit applications as soon as possible. In addition, individuals who have already submitted applications are invited to supplement those applications as appropriate.
Pursuant to the terms of the consent decree, the Government will propose a monitor for approval by the Court. As set forth at greater length in the proposed consent decree, the monitor will be responsible for the remediation of extensive health and safety deficiencies in NYCHA housing, as well as oversight and reform of NYCHA management, controls, and operations.
The application and related materials, and instructions for submission, are available at https://www.justice.gov/usao-sdny/monitors-receivers-claims-administrators.
The consent decree remains subject to review and approval by the Court.
Manhattan U.S. Attorney and FBI Announce Return of Nazi Looted Renoir to Its Rightful OwnerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeny Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return to its rightful owner of a painting looted by the Nazis during World War II. The painting, Deux Femmes Dans Un Jardin, painted in 1919 by Pierre Auguste Renoir (the “Renoir”), was stolen by the Nazis from a bank vault in Paris in 1941. Mme. Sylvie Sulitzer, the last remaining heir of her grandfather Alfred Weinberger, a prominent art collector in pre-war Paris from whom the Renoir was stolen, received the work today during a ceremony at the Museum of Jewish Heritage in New York City.
Manhattan U.S. Attorney Geoffrey Berman said: “Today, as we celebrate the just return of this painting to its rightful owner, we also remember the uniqueness of the Holocaust and reaffirm our commitment to ensure that the words ‘never forget, never again’ never ring hollow. Hopefully this event brings some measure of justice to Madame Sylvie Sulitzer and her family.”
FBI Assistant Director-in-Charge William F. Sweeny Jr. said: “The atrocities that took place during World War II at the hands of the Nazis cannot be summed up in a few words. They murdered, tortured, and plundered during their attempt to take over Europe and the world. In the process, they also carried out smaller acts of evil behavior, stealing hundreds of thousands of these pieces of priceless artwork. Some of those pieces are lost to our culture forever. However, we take a bit of pride in returning a painting looted during the war, and helping repair some of the destruction decades ago.”
During World War II, the Nazis created a division known as the Einsatzstab Reichleiter Rosenberg (the “ERR”) in order to “study” Jewish life and culture as part of the Nazis’ propagandist mission against the Jews. Principally, the ERR confiscated artworks and other cultural holdings of “the enemies of the Reich” on a massive scale, and meticulously registered and identified those artworks – even photographing them – thereby leaving behind a detailed record of the works that they stole.
In December 1941, during the Nazi occupation of Paris, the ERR seized the Renoir, along with numerous other works, from a bank vault where Alfred Weinberger had stored his collection when he fled Paris at the outset of the war. In the decades that followed, Mr. Weinberger sought to recover his property, registering his claim to the Renoir with the French restitution authorities in 1947 and the German restitution authorities in 1958.
The Renoir resurfaced after the war at an art sale in Johannesburg, South Africa, in 1975. It subsequently found its way to London, where it was sold again in 1977, and then appeared at a sale in Zurich, Switzerland, in 1999. Ultimately, the Renoir found its way to Christie’s Gallery in New York, where it was put up for auction by a private collector in 2013. It was then that Mme. Sulitzer learned of the pending sale and made a claim to the work as part of her grandfather’s collection. Christie’s alerted the FBI, and ultimately the purported owner of the work voluntarily agreed to relinquish its claim. The U.S. Attorney’s Office and the FBI are now returning the painting to Mme. Sulitzer.
Mr. Berman thanked the FBI’s Art Crime Team for their assistance.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Noah Falk is in charge of the case.
Manchester Man Sentenced to 14 Years in Prison for Illegal Possession of FirearmsRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Daniel Sullivan, 35, of Manchester, was sentenced to 168 months (14 years) in federal prison for the illegal possession of firearms.
According to court documents and statements made in court, in 2015 and 2016, Sullivan purchased and traded several firearms in New Hampshire with the help of his partner, Sara Johnson. At the time of these transactions, Sullivan was a convicted felon who could not legally possess firearms. In several instances, Sullivan contacted private individuals who had posted firearms for sale online, then utilized Johnson – who was not a convicted felon – to assist in the purchase of the firearms. Once these firearms transactions came to the attention of law enforcement, federal agents obtained a search warrant for Sullivan and Johnson’s residence in Manchester, which resulted in the seizure of a .40 caliber pistol with an obliterated serial number.
Sullivan previously pleaded guilty to four counts of possession of a firearm by a prohibited person on May 31, 2018.
Johnson pleaded guilty to firearms charges on February 15, 2018. She is scheduled to be sentenced on September 20, 2018.
“Keeping guns out of the hands of criminals helps to make our community safer,” said U.S. Attorney Murray. “When felons unlawfully obtain guns, those weapons all too frequently can be used to commit violent crimes. This substantial sentence demonstrates our commitment to work closely with our law enforcement partners to improve public safety.”
“This sentence illustrates the seriousness of prohibited individuals illegally possessing firearms,” said Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “ATF will continue its tireless pursuit of both firearm traffickers and illegal possessors, by coordinating our efforts with our federal, state and local partners.”
This matter was investigated by the ATF and was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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MS-13 Member Sentenced for RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member was sentenced today in federal court in Boston for racketeering conspiracy involving the murder of a 16-year-old boy in East Boston.
Rigoberto Mejia, a/k/a “Ninja,” 32, a Salvadoran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 330 months in prison and five years of supervised release. Mejia will be subject to deportation upon completion of his sentence. In April 2018, Mejia pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
During the multi-year investigation of MS-13, Mejia was identified as a “homeboy,” or full member, of MS-13’s Trece Locos Salvatrucha (TLS) clique. Evidence further showed that on Jan. 10, 2016, Mejia and three other MS-13 members murdered a 16-year-old boy whom they believed to be a member of the rival 18th Street gang. Mejia’s alleged co-conspirators stabbed the victim multiple times while Mejia shot the victim.
Mejia is one of 49 defendants who have been convicted as part of this ongoing prosecution. Sixteen of those defendants, including Mejia, have been held responsible for racketeering conspiracy involving murder. Forty of the 49 convictions, including Mejia, were the result of guilty pleas prior to trial. Nine other defendants were convicted after trial.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.
Lockport Men Sentenced for Their Roles in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Darius Dix, 27, and Kurtis Washington, 27, both of Lockport, NY, who were convicted of conspiracy to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, were sentenced to serve 72 months and 96 months respectively in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between May 2016 and June 2017, Ramone Westbrook operated a high traffic and extremely profitable cocaine and crack cocaine distribution network. Westbrook obtained cocaine and crack cocaine from several sources of supply in Atlanta, Georgia, North Carolina and New York City and from a local source of supply in Niagara Falls. Westbrook then supplied co-defendant Rico Freeman for further distribution in the Lockport area during the course of the conspiracy. Dix and Washington were also part of the drug trafficking organization, distributing cocaine and crack cocaine in the Lockport area.
On February 14, 2017, Dix sold a quantity of cocaine to a confidential informant working with law enforcement officers. He was arrested on December 27, 2016 by Lockport Police officers who recovered 10 grams of cocaine from Dix.
On four occasions between March 3, 2017, and May 11, 2017, Washington sold cocaine to a Niagara County Drug Task Force confidential source. Washington was arrested by Buffalo Police officers on June 19, 2017. He was in possession of 26 grams of cocaine Washington tried to flee during a pat-down search and attempted to discard the cocaine.
Ramone Westbrook and Rico Freeman were previously convicted.
Today’s sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, Special Agent Shane Nastoff, and Task Force Officer Eric Herrington; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood. Additional assistance was provided by the Niagara County District Attorney’s Office, under the direction of District Attorney Caroline A. Wojtaszek.
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