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Tuesday 31 July 2018
Three Defendants Charged Federally with Cocaine Conspiracy Following Seizure of over 30 Pounds of Cocaine and More Than $664,000 in CashRead 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 Eric Young, 45, Chancellor Smith, 22, both of Huntsville, Alabama, and Lance Parker, 41, of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with the intent to distribute, and to distribute, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on July 20, 2018, deputies with the Erie County Sheriff’s Office Traffic Bureau conducted a commercial vehicle inspection stop of a tractor trailer tandem with Alabama plates that was headed eastbound on Interstate 90 near the Angola Service Center. Defendant Young was driving the tractor trailer with defendant Smith as a passenger. After the deputies became suspicious, Smith was instructed to drive to the Angola Service Center for further inspection.
During the inspection, deputies noted multiple violations including vehicle equipment and a lack of knowledge by the driver pertaining to certain equipment operation. Deputies also noted an irregular placement of the cargo in the trailer. Following the inspection, a K-9 was brought in and gave a positive indication for a narcotic odor on the cargo in the trailer and in the sleeper birth area of the tractor. Following the execution of a search warrant, no controlled substances were located.
Law enforcement officers continued to conduct an active investigation, including surveillance of the tractor trailer, as well as defendants Young and Smith. On July 25, 2018, the tractor trailer was observed parked in a bank parking lot on Slade Avenue in West Seneca, NY. Officers observed the defendants exit the vehicle and a short time later a black Ford pick-up truck arrived and parked next to the tractor trailer. Defendant Parker exited the pick-up truck and removed a large black bag from the covered cargo bed and carried it to the driver's side of the tractor trailer. Parker than returned to the pick-up truck carrying a second black bag, placed it in the covered cargo bed, and departed the area.
The pick-up truck was subsequently stopped by deputies on Interstate 190 in Buffalo. During the execution of a search warrant, officers recovered 17 individually packaged pressed powder bricks of cocaine. Parker was arrested at the scene.
Defendants Young and Smith were detained at the site of the tractor trailer. During a search warrant of the tractor trailer at that time, officers found 52 shrink-wrapped and taped bundles of currency, predominantly in $10,000 bundles, inside the black bag. In total, the bag contained $519,580. In addition, officers also located a hidden compartment in the rear wall of the sleeper area of the tractor trailer cab where they found another $145,000. Young and Smith were arrested at the scene.
Noting that “the defendants had been originally charged in New York State Court by the Erie County District Attorney’s Office,” U.S. Attorney Kennedy further indicated, “District Attorney Flynn and I regularly discuss cases and where they can best be prosecuted. By working cooperatively, our offices are able to maximize the impact of the prosecutions that we bring.”
The defendants made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and are being detained.
The complaint is the result of an investigation by the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Three Canadians and their Company Sentenced for Wholesale Distribution of Misbranded Prescription Drugs and Money LaunderingRead the Press Release
PITTSBURGH, PA – Three residents of British Columbia, Canada, and the company they operated have been sentenced in federal court in Pittsburgh on charges of conspiring to distribute wholesale quantities of misbranded prescription drugs made for the foreign market and money laundering, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon sentenced each of the defendants - Tony Lee, 41, of Vancouver, BC, Billy Lee, 43, of White Rock, BC, and Tarnjeet Uppal, 37, of Surray, BC, - to three years probation and a fine of $55,000. Judge Bissoon sentenced their company, Quantum Solutions, SRL, to a $150,000 fine and ordered it to forfeit of $4,235,000.
According to the information presented to the court, Tony Lee, Billy Lee and Tarn Uppal, all Vancouver, B.C. residents, operated Quantum Solutions, SRL (hereafter, Quantum), a company registered in Barbados. Quantum purchased prescription drugs made for foreign markets and sold wholesale quantities to three pharmacists in western Pennsylvania. Quantum purchased the drugs from suppliers located in Turkey, Great Britain and other countries. The defendants arranged for these misbranded drugs to be sent to a re-shipper in the United Kingdom (UK). The UK re-shipper was instructed to unpack the drugs, repack them in several small packages, put misleading labeling and shipping documentation on them and understate the dollar value of the contents in order to create the appearance to U.S. Customs and Border Protection that the drugs were health care products for the personal use of the addressee. The small packages were sent to Washington State and New York State re-shippers known to the U.S. Attorney, where they were once again unpacked and repacked for delivery in the United States. Wholesale quantities of these misbranded drugs intended for use in foreign markets were purchased by three pharmacists in western Pennsylvania. The wire transfers, checks and credit card payments from the pharmacists traveled from western Pennsylvania to Canada and Barbados. None of the re-shippers was licensed in the United States to conduct this business. None of the prescription drugs met FDA approval because they were made and labeled for use outside of the United States.
"Distributing prescription drugs produced and labeled for use outside of the United States within our borders not only violates federal law but also threatens the health and safety of our citizens," said U.S. Attorney Brady. "We are committed to investigating and prosecuting any drug company that illegally circumvents the regulated process for the distribution of prescription drugs."
"Criminals who distribute misbranded prescription drugs from outside the U.S. supply chain put the health of all U.S. consumers at risk," said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. "Our skilled cybercrime investigators will continue to disrupt and dismantle illegal prescription drug distribution networks."
"The role of IRS-Criminal Investigation in a case like this is to follow the money, which in turn allows us to disrupt and dismantle the organization", said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. "The defendants who perpetrated this scheme put the American public at risk. By providing our financial expertise, IRS-CI is committed to working with our partners at the FDA and the US Attorney’s Office to see to it that criminals like this are stopped."
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
The United States Attorney commended the United States Food and Drug Administration-Office of Criminal Investigations and the Internal Revenue Service-Criminal Investigations for the investigation leading to the successful prosecution of Tony Lee, Billy Lee and Tarn Uppal, and Quantum Solutions, SRL.
Texas men sentenced for using card skimmers to steal identities, moneyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that two men from Austin, Texas, were sentenced for using a credit card skimmer to steal people’s identities, then create fake credit cards and steal thousands of dollars from their private bank accounts.
Emicel Artigas Garcia, 39, was sentenced to 54 months in prison and Adalberto Ramos Cuellar, 42, was sentenced to 51 months in prison by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to commit wire fraud and one count of aggravated identity theft. They also face three years of supervised release and must pay $2,637.31.
According to the guilty pleas, the defendants were observed on July 14, 2017 at a Bossier City retail store’s self-checkout counter swiping multiple cards in order to purchase prepaid money and gift cards. Bossier City police later approached the defendants in the parking lot and found seven credit cards and three gift cards in Cuellar’s possession, which bore the defendants’ names. After the electronic information was obtained from the cards, law enforcement agents found that stolen identities were on the cards, even though they were labeled with the defendants’ names. Police later searched the defendants’ car and found seven USB thumb drives, one laptop, eight additional re-encoded cards, a cell phone, a gas pump key, and a gas pump skimmer. Gas pump skimmers are illegal devices used to steal credit card information. The evidence from the seized devices showed that the defendants downloaded private card information between October 2016 and July 2017. The cell phone contained pictures of screens showing the stolen information, and the laptop contained compromised credit/debit card data for 793 additional cards.
The U.S. Secret Service and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Ten Defendants Charged in Nationwide Marijuana and Money Laundering ConspiracyRead the Press Release
United States Attorney Matthew D. Krueger announced today that the following ten defendants have been charged in federal court with offenses related to nationwide conspiracies to distribute marijuana and commit money laundering:
Name
Age
Residence
Robert K. Malkin
62
Oxnard, CA
Seth C. Jacobs
28
Alexandria, VA
Lev B. Reys
38
Valley Village, CA
Jason J. Malkin
31
Los Angeles, CA
Mohammed E. Omar
35
Springfield, VA
Alae Arbi
28
Alexandria, VA
Nahom Hagos
29
Alexandria, VA
Fredric H. Birault
85
Valencia, CA
Lachelle Cook
31
Milwaukee, WI
The defendants currently reside in Milwaukee, Virginia, and California. This case is a part of a long-term nationwide federal drug and money laundering investigation.
The defendants are charged with drug and money laundering offenses, including: conspiracy to distribute and possess with intent to distribute marijuana, and conspiracy to commit money laundering. If proven that the drug conspiracy involved in excess of 100 kilograms of marijuana, the defendants charged with drug offenses will face up to forty (40) years in prison, with a mandatory minimum sentence of five (5) years in prison. The defendants charged with conspiracy to commit money laundering face up to twenty (20) years in prison.
Last week law enforcement officers arrested nine of the above defendants. Seth C. Jacobs remains at large. In addition to last week’s arrests, law enforcement officers executed two (2) federal search warrants in Milwaukee, eleven (11 ) search warrants in Virginia, ten (10) search warrants in California, and one search warrant in Washington, D.C., targeting members of this organization. Law enforcement recovered approximately $1.75 million in U.S. currency, two firearms, seven vehicles, marijuana, and other assets. Approximately 125 federal, state, and local officers participated in these arrests and search warrants.
In making today’s announcement about the federal charges, searches, and arrests, United States Attorney Krueger stated: “Drug-traffickers are motivated by money, pure and simple. These charges reflect our commitment to working with federal, state, and local law enforcement to seize drug money and prosecute drug crimes aggressively.”
Bureau of Alcohol, Tobacco, Firearms and Explosives Agent in Charge Joel L. Lee stated: “The highly successful outcome in this case came as a direct result of the tremendous partnership and teamwork shared with the Wisconsin Department of Justice – Division of Criminal Investigation and as well as contributing local counterparts. Communities in several states to include Wisconsin are better off with the dismantling of this criminal operation.”
Milwaukee Drug Enforcement Administration Agent in Charge Paul E. Maxwell, Jr. commended the collaborative and purposeful approach by state, local and federal law enforcement. “This investigation exemplifies multiple law enforcement agencies collaborating to fight the ongoing drug threat in Wisconsin and throughout the United States. The Drug Enforcement Administration is committed to working with our law enforcement partners and this case is a true reflection of those partnerships,” remarked Maxwell.
“A great group effort by federal, state, local and out-of-state law enforcement agencies has led to the disruption of yet another drug trafficking organization,” said Attorney General Brad Schimel. “We have made the community safer by working together to get drugs, guns, and money out of the hands of criminals.”
The defendants were charged after a lengthy investigation by the Wisconsin Department of Justice - Division of Criminal Investigation, along with the Milwaukee Police Department, North Central HIDTA, and the Bureau of Alcohol, Tobacco, Firearms and Explosives Milwaukee Field Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives Financial Investigators. The case was also supported by the Los Angeles HIDTA, City of Los Angeles Police Department, Los Angeles County Sheriff’s Department, Ventura County Sheriff’s Department, Shasta County Sheriff’s Department, Humboldt County Sheriff’s Department, Fairfax County Police Department, Alexandria Police Department, Virginia State Police, Northern Virginia HIDTA, and the Drug Enforcement Administration. In addition, the case was supported by the United States Attorney Offices in the Central District of California, Eastern District of Virginia, and Washington, D.C.
This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Monfils and Gail J. Hoffman.
A criminal complaint is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Summerdale Man Sentenced on Drug ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Nicholas Toth, 30, of Summerdale, Alabama, was sentenced on July 26, 2018, to 120 months imprisonment for possession with intent to distribute methamphetamine. Court documents show that Toth sold methamphetamine ice to a confidential informant three times during May of 2017. Toth was indicted on the federal charges of possession with intent to distribute methamphetamine in October of 2017. He pled guilty in March of 2018 to one of the drug sales.
United States District Court Judge William Steele sentenced Toth to 120 months’ imprisonment to be followed by eight years of supervised release when he is discharged from his custody sentence, during which he will undergo drug and alcohol abuse treatment. Toth was also ordered to pay $100 in mandatory special assessments, but no fine was imposed.
The case was investigated by the the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
St. Louis Man Pleads Guilty to Stealing Guns out of St. Louis County Police CarsRead the Press Release
St. Louis, MO – Joshua John Pollard, 20, of St. Louis, pled guilty to three counts of possessing stolen firearms. He appeared in federal court this afternoon before U.S. District Judge Henry Autrey.
According to court documents, on January 12, 2018, Pollard broke the windows of a St. Louis County Police vehicle and forcefully stole a Colt AR-15, fully loaded with a 20-round magazine and a Remington 870 pump action shotgun loaded with four rounds.
On January 29, 2018, Pollard broke a window of a second St. Louis County Police vehicle and forcefully stole a Rock River, AR-15 and a Remington 870 pump action shotgun.
On January 30, 2018, Pollard broke the window of a vehicle and stole a 40-caliber Glock model G23 generation 4 semi-automatic firearm. Investigation by members of the St. Louis County Police Department led to the arrest of Pollard on February 1st who admitted breaking into the two police vehicles and another vehicle in St. Charles.
“I greatly appreciate the hard work by all those who brought about the swift and successful conclusion to these investigations,” Colonel Jon M. Belmar, Chief of Police, said. “It is a fine example of the great collaborative work between local and federal authorities that we enjoy here in the St. Louis Region.”
Pollard faces up to 10 years’ imprisonment, a $250,000 fine or both on each count. Restitution to the victim is also mandatory. Sentencing has been set for October 30, 2018. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis County Police Department. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
South Bend Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND – Anthony Owens, 31 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after entering a plea of guilty for conspiracy to distribute over 1 kilogram of heroin, announced U.S. Attorney Kirsch.
Anthony Owens was sentenced to 180 months imprisonment followed by 5 years of supervised release.
According to documents in the case, from August 2017 through October 2017, Owens was a member of a group that sold heroin in the South Bend and Mishawaka areas. The members shared at least one cell phone which was used to arrange heroin sales. Members of the group would receive that phone, along with multiple pre-packaged small baggies of heroin, from one of the other members of the group. Buyers would call that phone, and whichever member of the group had the phone at the time would arrange a heroin transaction with the buyer. Sometimes sellers would work individually, while other times sellers would cooperate to arrange and conduct heroin transactions. The selling price was set by others higher in the group and individual sellers would not unilaterally vary from that price. The majority of the proceeds from the heroin sales would be turned back in to the higher-ranking members and the individual sellers would be allowed to keep the remainder of the payment. Together, they distributed kilograms of heroin through thousands of retail transactions.
This case was investigated by DEA, ATF, St. Joseph County Drug Investigations Unit, St. Joseph County Prosecutors Office, Indiana State Police, Mishawaka Police and the Elkhart Police Department. This case was prosecuted by Assistant United States Attorneys Joel Gabrielse and Molly Donnelly
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South Arkansas Men Sentenced to A Total of over 6 Years in Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Lawrence Shelton, age 69, of El Dorado, Arkansas was sentenced on July 30, 2018 to 36 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of money laundering; Ronald Murphy, age 70, of El Dorado, Arkansas was sentenced today to 18 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of structuring transactions to avoid reporting requirements; and Domanique Robinson, age 40, of Camden, Arkansas was sentenced today to 24 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of structuring transactions to evade reporting requirements. The defendants were additionally ordered to pay $310,000.00 total in restitution. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, Shelton was the Chief Executive Officer, director, and founder of 2ND CHANCE, a nonprofit organization that focused on “at risk” children from low-income households by helping to make them self-reliant and productive citizens through education and mentoring. 2nd CHANCE received federal funding from the United States Department of Agriculture (USDA) through a federal grant and was managed by Arkansas Department of Human Services (DHS). A joint investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service - Criminal Investigation Division (IRS) revealed that fraudulent claims were electronically submitted to DHS by 2ND CHANCE program director, Robinson, regarding the number of children attending the program. Robinson was responsible for receiving attendance sheets from each 2nd CHANCE location and submitting claims with attendance numbers to DHS for funding/reimbursement. Murphy was the owner of South West Economic Development Association (SWEDA). SWEDA served as a food vendor for the 2nd Chance afterschool and summer program from late 2011 until June 2014. Shelton, Robinson, and Murphy, conspired to falsify the claims to DHS by inflating or completely fabricating the number of children in attendance. The fraudulent claims resulted in overpayments made by DHS that were direct deposited into 2nd Chance bank accounts by interstate wire communications. Shelton, Robinson, Murphy, and others personally benefited from the excess funds. The total overpayments made by DHS exceeded $250,000 during the period of fraudulent activity.
Robinson and Murphy were indicted by a federal grand jury in 2015. Shelton was indicted by a federal grand jury in January 2016. Murphy pled guilty in January 2016. Shelton pled guilty in April 2017. Robinson pled guilty in January 2016.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Slaton High School Teacher Admits to Enticement of a MinorRead the Press Release
LUBBOCK, Texas — Dustin Ray Leonard, 28, of Lubbock, Texas, appeared yesterday in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Leonard faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release. Leonard has been in custody since his arrest on May 22, 2018, and will remain in custody pending sentencing.
According to the factual resume filed in the case, on July 16, 2016, Leonard was hired by the Slaton Independent School District (SISD), as a high school teacher and Coach. On April 12, 2018, the Slaton High School (SHS) and SISD Chief of Police learned of a possible inappropriate relationship that occurred between Leonard and an 11th grade female student, “Jane Doe.” The SISD Superintendent received an audio recording that another student had made of Leonard. In the recording, Leonard was telling a female student about his marital problems. Leonard, after being confronted by SISD about the recording, provided SISD a written letter of resignation, citing personal and family concerns. On May 8, 2018, the SISD school board met and accepted the resignation effective May 18, 2018.
On May 21, 2018, Slaton Police Department (SPD) was provided information regarding Leonard’s Snapchat account and an inappropriate relationship he was having with Doe. Leonard was later interviewed and admitted that he and Doe had been in a sexual relationship since January 2018.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Slaton Police Department, Slaton Independent School District Police Department, the Texas Rangers, the Federal Bureau of Investigation, and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
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Six Filipinos Indicted for Domestic and International Money Laundering and Conspiracy for Multi-Year Bribery and Fraud SchemeRead the Press Release
LOS ANGELES – A Filipino woman and her family members were indicted by a federal grand jury today for conspiring to funnel in and out of the United States approximately $20 million in Philippine public funds obtained through a multi-year bribery and fraud scheme. Charged in the indictment for Conspiracy to Commit Money Laundering, Domestic Money Laundering and International Money Laundering were:
Jannet Lim Napoles, 54,
Jo Christine Napoles, 34,
James Christopher Napoles, 33,
Jeane Catherine Napoles, 28,
Reynald Luy Lim, 52, and
Ana Marie Lim, 47.
Four defendants together with approximately 20 Philippines legislators and other government officials not charged in U.S. indictments converted to their own benefit hundreds of millions of dollars in Philippine public funds through the intricate scheme and then transmitted approximately $20 million from that scheme into the United States to purchase assets, including real property and luxury vehicles.
The defendants fraudulently converted money from a lump-sum discretionary “Priority Development Assistance Fund” granted to each member of the Philippines Congress as well as other government funds designed to benefit poor Filipinos.
The money was paid to dozens of non-governmental organizations controlled by Jannet Napoles pursuant to contracts that required the money to be spent on development projects. The projects were not performed. Instead, the money was diverted to kickbacks for the legislators and other government officials, and for the personal use of the Napoles family.
Approximately $20 million of those funds were diverted to money remitters in the Philippines and then wired to Southern California bank accounts where the money was used to purchase real estate, shares in two businesses, two Porsche Boxsters, and finance the living expenses of three family members residing in the United States: Jeane Napoles, Reynald Lim, and Ana Lim.
The charges handed down today pertain to events beginning in September 2012 and continuing through August 2014. In September 2012, an audit discovered the fraud. In July 2013, the fraud and the U.S. proceeds were exposed in the Filipino press. In August 2013, Jannet was arrested by Philippine authorities and Napoles family bank accounts were frozen in the Philippines. Thereafter, Napoles and her family members attempted to quietly liquidate the assets in the United States, secretly repatriate most of the resulting funds back to the Philippines and to other accounts in the U.S. and United Kingdom, and disburse some of the funds to Jeane Napoles, who used the money to finance her lifestyle and open a fashion business.
“Even after Jannet Napoles made a highly publicized statement admitting that she had bribed Philippine legislators in connection with these ‘ghost projects,’ the defendants attempted to convert the proceeds of this crime to their own use,” said United States Attorney Nick Hanna. “The efforts of the Philippine and American investigators demonstrates that there are consequences to abusing the public trust and we hope to deter such conduct in the future. To do this, we will work with our Philippine counterparts to secure the extradition of the defendants to the United States.”
According to court documents, approximately $12.5 million in Southern California real estate has been seized by the United States Attorney’s Office and is subject to a civil forfeiture case pending before United States District Judge James V. Selna. If the court orders the assets forfeited, the United States will work with Philippine officials in an attempt to return the stolen funds back to the Philippine government.
U.S. authorities have received ongoing cooperation and substantial assistance from the Philippine government, including the Department of Justice, the Office of the Ombudsman, the Anti-Money Laundering Council, and the Commission on Audit, which responded to official requests pursuant to the Mutual Legal Assistance Treaty between the Philippines and the United States and through the Financial Crimes Enforcement Network.
This case is being investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Daniel O’Brien, Deputy Chief of the Public Corruption and Civil Rights Section.
Sex Offender Sentenced to Thirty-Six Months in Prison for Failure to RegisterRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Kyle Lopez (46, Morgantown, West Virginia) to 36 months in federal prison, followed by 5 years of supervised release, for failure to register as a sex offender as required by the Sex Offender Registration and Notification Act (SORNA). Lopez had pleaded guilty on June 11, 2018.
According to court documents, Lopez, who had previous felony convictions for indecency with a child, sexual assault against a child, and failure to register, failed to register as a sex offender in Florida after moving from West Virginia to Florida in September 2017, in an attempt to abscond from his registration requirements. After receiving notification from West Virginia, the U.S. Marshals Service located Lopez on October 31, 2017, in Volusia County, Florida. He was then charged with failure to register as a sex offender in violation of SORNA.
This case was investigated by the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Kara M. Wick.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Serial Lawrence County “Mountain Dew” Robber Sentenced to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH, Pa., - A former resident of New Castle, Pennsylvania, has been sentenced to 10 years in federal prison for his convictions on federal robbery laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Eric Barbati, age 33.
According to the information presented to the court, on August 26, 2017, Eric Barbati robbed the BFS Foods Convenience Store, located at 1509 Wilmington Road, New Castle, PA 16105, of $292.00. Barbati then robbed two other convenience stores, the Red Apple Convenience Store (on August 31, 2017), located at 1010 Wilmington Avenue, New Castle, PA 16101, of $242.00; and the Market 24 Convenience Store (on September 4, 2017 and again on September 17, 2017), located at 719 W. Washington Street, New Castle, PA 16101, of $170.00 and $117.00, respectively. During all of the convenience store robberies, Barbati would approach the store clerk and attempt to pay for a bottle of Mountain Dew before using a knife or forcibly taking money from the drawer to commit the robbery.
On September 5, 2017, Barbati also robbed the PNC Bank, located at 2470 E. State Street, Hermitage, PA 16148, of $2,702.00, and on September 11, 2017, he robbed the Huntington Bank, located at 108 S. Market Street, New Castle, PA 16142, of $1,641.00.
Judge Cercone also ordered that Barbati pay restitution to all three businesses and both banks and also serve a term of three years of supervised release upon release from prison.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Hermitage Police Department, the New Wilmington Borough Police Department, the New Castle Police Department, and the Neshannock Township Police Department conducted the investigation leading to the guilty plea in this case.
Rochester Man Pleads Guilty in A Series of Store/Restaurant RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Fred Swan, Jr., 29, of Rochester, NY, pleaded guilty to Hobbs Act Robbery, Attempted Hobbs Act Robbery, and brandishing a firearm during a crime of violence before Chief U.S. District Judge Frank P. Geraci. The robbery charges carry a maximum penalty of 20 years in prison and a $250,000 fine. The firearms charge carries a mandatory minimum penalty of seven years in prison, which must be served consecutively to the sentence imposed on the robberies.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that the defendant robbed four establishments at gunpoint between February 11, 2017 and March 24, 2017:
o On February 11, 2017, the defendant robbed the China Star restaurant at 600 West Main Street in Rochester. Swan entered the store and pointed a handgun at a restaurant employee and demanded money. The defendant grabbed approximately $60 cash from the store employee’s hand and fled the restaurant on foot;
o On February 18, 2017, the defendant robbed Alice’s Market convenience store at 1477 South Avenue in Rochester. Swan entered the store, went up to the register, pointed a handgun at the store clerk, and demanded money. The clerk gave the defendant approximately $50 cash from the register. The defendant fled from the store and was driven away from the scene by another individual;
o On February 19, 2017, the defendant robbed the Mobil Quick Mart store at 1810 Mount Hope Avenue in Rochester. Swan entered the store and pointed a handgun at a store employee as he approached the counter and demanded money from the register. The employee refused to give Swan money. The defendant walked around the counter and struck the employee in the head with the handgun, and the two of them fell to the floor fighting. Swan eventually fled the store without getting any money; and
o On March 24, 2017, the defendant robbed the Fast Mart Inc. store at the Valero gas station at 931 South Clinton Avenue in Rochester. Swan entered the store, pointed a handgun at the store clerk, and demanded money. The clerk handed over $280 cash from the register. The defendant then demanded two packs of cigarettes, which the clerk handed to him. Swan fled the store with the cash and cigarettes.
On March 24, 2017, law enforcement officers searched the defendant’s apartment at 229 Meigs Street in Rochester and they recovered the .40 caliber handgun that was used in the Alice’s Market robbery.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for November 5, 2018, at 11:00 p.m. before Judge Geraci.
Reported Gun Crimes Down Significantly During First Half of YearRead the Press Release
Reported crimes with guns were down significantly during the first half of this year compared to last year in the city of Memphis and unincorporated parts of Shelby County, according to figures from the Project Safe Neighborhoods G.U.N. (Government United for Non-Violence) Unit.
From January through the end of June, there were 2,405 reported crimes with guns compared to 2,840 for the same period in 2017 – a 15.3 percent drop. The number is also 8.4 percent less than the 2,625 reported gun crimes in 2016.
Reducing gun crimes is a major focus of the current Operation: Safe Community crime plan, the development of which was spearheaded by the Memphis Shelby Crime Commission. Crime Commission president Bill Gibbons noted a number of objectives in the plan geared toward gun crime reduction, including:
- Vigorous enforcement of tough federal gun laws as part of Project Safe Neighborhoods which is being led by the U.S. Attorney’s office;
- Enactment of tougher state sentences for felons in possession of firearms – which was accomplished in 2017 – coupled with strong enforcement by the District Attorney’s office;
- With the goal of changing behavior, communicating the consequences of committing gun crimes through the FED UP media campaign;
- Enhancing the staff of the Multi-Agency Gang Unit in order to more effectively investigate gang-related crimes and prevent such crimes from occurring; and
- Ramped up data-driven deployment of law enforcement resources.
Since in office, U.S. Attorney Mike Dunavant has made prosecution of gun crimes in the federal system a top priority.
According to Dunavant, "Project Safe Neighborhoods (PSN) is a proven violent crime reduction strategy that works, and is now reinvigorated with additional resources and commitment from our partners at the ATF, Memphis Police Department, Shelby County Sheriff’s Office, and the Shelby County District Attorney’s Office. Since October, 2017, the U.S. Attorney’s Office has increased the number of federal firearms cases filed by over 59%, and the number of defendants charged with firearms offenses has increased over 73%. These efforts provide targeted prosecution of the worst-of-the-worst offenders in order to enhance public safety in Memphis by removing guns from the hands of dangerous people, and removing violent offenders from our communities."
Dunavant added, "These sustained decreases in reported gun crimes and all major violent crime categories is encouraging, and shows that our return to proven enforcement policies is working. Putting the right people in prison upholds the rule of law, deters criminal conduct with a strong message of significant consequences, and makes us all safer. The Department of Justice is open for business, and we are FED UP with gun crime in Memphis. Gun Crime is Max Time."
The reduction in reported crimes with guns is consistent with the reduction in reported violent crimes, the details of which were released earlier this month.
During the first half of this year, reported violent crimes were down 8.1 percent in the city of Memphis compared to last year and down 6.4 percent countywide, according to preliminary figures from the Tennessee Bureau of Investigation. The reduction occurred in all four major categories – murders, rapes, robberies, and aggravated assaults.
1 Reported gun crime incidents in city of Memphis and unincorporated parts of Shelby County.
Source: Project Safe Neighborhoods G.U.N. Unit2 A 8.4 percent decrease compared to 2016 and a 15.3 percent decrease compared to 2017.
Repeat Tax Fraud Offender Sentenced to 10 Years in PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ARTHUR DALE SENTY-HAUGEN, 51, for orchestrating a years-long tax fraud conspiracy while confined to the Minnesota Sex Offender Program. SENTY-HAUGEN, who pleaded guilty on January 23, 2018 to one count of conspiracy to defraud the United States, was sentenced earlier today to 10 years in prison before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
“Mr. Senty-Haugen’s lengthy criminal history and flagrant disregard for the law and the criminal justice system was appropriately addressed by this significant prison sentence,” said U.S. Attorney Erica MacDonald. “We appreciate the investigative work of our partners at the IRS and their dogged pursuit of this serial fraudster.”
“Today's sentencing of Arthur Senty-Haugen continues to emphasize the diligence of the Internal Revenue Service and U.S. Attorney’s Office in their continued pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system,” said Acting Special Agent in Charge Gabriel Grchan, IRS Criminal Investigation of the St. Paul Field Office. “Be assured that IRS Criminal Investigation Division, together with our law enforcement partners, will hold those who engage in similar behavior fully accountable, especially those like Senty-Haugen who repeatedly commit fraud.”
According to the defendant’s guilty plea and documents filed in court, since 1994, SENTY-HAUGEN has been confined to the Minnesota Sex Offender Program (“MSOP”) in Moose Lake, Minnesota. Beginning in early 2012 through late 2017, SENTY-HAUGEN devised and participated in a scheme to obtain money from the U.S. government by filing false federal income tax returns claiming fraudulent refunds on behalf of fellow clients of the MSOP (“the filers”). As part of the scheme, SENTY-HAUGEN prepared and filed the false tax returns using the filers’ names and social security numbers, as well as false wage and federal income tax withholding information. SENTY-HAUGEN enlisted the help of other individuals not confined at MSOP to assist him and the filers in preparing and filing the fraudulent returns as well as collecting and transferring the illicit proceeds. SENTY-HAUGEN admitted to filing a total of 92 fraudulent income tax returns for tax years 2011 through 2016, seeking more than $550,000 in refunds to which the filers were not entitled.
In 2000 and 2013, SENTY-HAUGEN was prosecuted in state court in Carlton County on fraud-related offenses. Additionally, in 2004, while confined at MSOP, SENTY-HAUGEN was indicted in federal court for tax fraud conspiracy, a scheme that was similar to the instant offense, and was sentenced to 57 months in prison followed by three years of supervised release. SENTY-HAUGEN began his new fraud scheme just two days after his term of supervised release expired.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division, and the Minnesota Department of Human Services, Office of Special Investigations.
Assistant U.S. Attorneys Amber M. Brennan and Julie E. Allyn prosecuted the case.
Defendant Information:
ARTHUR DALE SENTY-HAUGEN, 51
MSOP, Moose Lake, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
Sentenced:
- 120 months in prison
- Three years of supervised release
- $247,000 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pittsburgh Man Sentenced to 20 Months’ Incarceration for Cocaine ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone sentenced Michael King, 37, to serve 20 months in prison following his guilty plea on March 23, 2018, to one count of conspiracy.
In connection with his earlier guilty plea, King admitted that from in and around April 2016, and continuing thereafter to in and around October 2016, he conspired with others to distribute and possess with intent to distribute a quantity of cocaine, a Schedule II controlled substance. During his plea colloquy, the defendant admitted that on or about September 30, 2016, he possessed approximately four ounces of cocaine and that he sold cocaine for $1,200 per ounce.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pennsylvania man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Kevin J. Washington, Jr., of Glenolden, Pennsylvania, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Washington, age 30, pled guilty to one count of “Distribution of Oxycodone.” Washington admitted to selling oxycodone in Ohio County in February 2016.
Washington faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp., Jr. presided.
Pennsylvania Man Pleads Guilty to Misprision of a FelonyRead the Press Release
St. Thomas, USVI – Michael Leonard, 21, of Pennsylvania, pleaded guilty today in District Court before District Court Judge Curtis V. Gomez, to misprision of a felony, United States Attorney Gretchen C.F. Shappert announced. Sentencing is set for November 29, 2018. The federal definition of misprision requires that, (1) the principal committed and completed the felony alleged; (2) the defendant had knowledge of the commission of the felony; (3) the defendant failed to notify the authorities that the crime had been committed; and (4) the defendant took affirmative steps to conceal the crime.
According to court documents, Leonard traveled with Reynaldo Lerburds and other individuals to a secluded area of St. John and was present when a shipment of cocaine was delivered. Leonard took steps to help conceal the cocaine and did not make any effort to notify law enforcement of the receipt of the cocaine or his actions in concealing the cocaine. When Leonard was arrested on April 18, 2018, he failed to inform law enforcement of the receipt of the cocaine or the transport of the cocaine.
Leonard faces a maximum sentence of three years and a $250,000 fine.
The case was investigated by the Drug Enforcement Administration (DEA) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Northeast Ohio couple sentenced to prison for 16 robberies or attempted robberies to fund their drug habitRead the Press Release
A Northeast Ohio couple was sentenced to prison for 16 armed robberies or attempted robberies to fund their drug habit.
Casey Layne Liberty, 31, of Amherst, and Daniel T. Begin, 33, of Cleveland, were both sentenced to 71 months on prison. Both were ordered to pay $6,598 in restitution.
The pair previously pleaded guilty to conspiracy to commit bank robbery, bank robbery, conspiracy to commit Hobbs Act robbery and Hobbs Act robbery.
“This pair went on a monthlong crime spree in which they robbed banks and stores to feed their drug habit,” U.S. Attorney Justin Herdman said. “It’s a miracle no one was killed, and we’re gratified this duo will be off the street.”
“This pair posed a danger to people doing their banking or simply picking up lunch,” Anthony said. “The fine work of the FBI agents, along with nearly a dozen police departments, has made our community safer.”
Liberty wore a disguise and robbed banks and stores while Begin acted as the getaway driver, according to court documents.
The pair admitted to following bank robberies last year: Andover Bank in Conneaut on Sept. 19, Chase Bank in Medina on Sept. 28, First National Bank in Beachwood on Oct. 4 and the Chase Bank in Fairlawn on Oct. 12.
They also pleaded guilty to robbing a Subway in Findlay on Sept. 26, a Seven Eleven in Brunswick on Sept. 28, a Gamestop in Elyria on Oct. 7, a Domino’s Pizza in Madison on Oct. 10, a Mr. Hero in Canton on Oct. 11, a Subway in Avon on Oct. 15, a Subway in Elyria on Oct. 16, a Mr. Hero in Perkins Township on Oct. 19, a Domino’s Pizza in North Olmsted on Oct. 22 and a Mr. Hero in Berea on Oct. 22.
This case is being prosecuted by Assistant U.S. Attorneys Ranya Elzein and Robert J. Patton following an investigation by the FBI and the police departments of Conneaut, North Olmsted, Medina, Beachwood, Avon, Elyria, Findlay, Perkins Township, Madison, Berea and North Ridgeville.
North Ridgeville man sentenced to 10 years in prison for downloading multiple videos of young children being raped and sexually assaultedRead the Press Release
A North Ridgeville man was sentenced to more than 10 years in prison for downloading multiple videos of young children being raped and sexually assaulted.
Dana F. Cain, 49, previously pleaded guilty to distribution of child pornography and possession of a computer that contained child pornography. He was sentenced to 121 months in prison.
Cain downloaded nearly 500 movie files from May 2015 through January 2017. These movies include images of toddlers and young girls being rapes and sexually assaulted, according to court documents.
Cain possessed an Apple Macbook computer at his home on Avon Belden Road in North Ridgeville which contained child pornography, according to court documents.
"These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them," U.S. Attorney Justin Herdman, for the Northern District of Ohio, said in a news release. "We will continue to prosecute those who re-victimize these children by sharing and downloading these images."
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the FBI, the North Ridgeville Police Department, the Avon Police Department and the Ohio Internet Crimes Against Children Task Force.
New Orleans Man Pleads Guilty to Accessory to Murder, Carjacking, Robbery, and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that KWAME FLEMING, age 27, of New Orleans, pled guilty to one count of accessory to murder through use of a firearm, in violation of Title 18, United States Code, Section 924(j), two counts of carjacking, in violation of Title 18, United States Code, Section 2119, two counts of brandishing a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c), one count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and one count of discharging a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c).
According to court documents, KWAME FLEMING pled guilty to assisting two individuals who committed a murder on June 1, 2015, in New Orleans, and attempting to hinder and prevent their apprehension, trial, and punishment.
Furthermore, KWAME FLEMING also pled guilty to taking part in two carjackings, during which firearms were brandished.
KWAME FLEMING also pled guilty to Hobbs Act robbery, during which KWAME FLEMING and his co-conspirators stole items from a residence in Mississippi, including marijuana and an assault rifle.
For the accessory to murder offense, KWAME FLEMING faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
For the carjackings, KWAME FLEMING faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
For the Hobbs Act robbery offense, KWAME FLEMING faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
KWAME FLEMING faces a mandatory minimum sentence of seven years imprisonment for the first of the brandishing offenses. For his second brandishing offense and the discharge offense, KWAME FLEMING faces mandatory minimum sentences of 25 years for each offense. The maximum penalty that would be imposed for each firearms offense is life imprisonment. Each firearms offense must be served consecutively. KWAME FLEMING also faces fines of up to $250,000, up to five years of supervised release upon release from imprisonment, and a $100 special assessment for each firearms count.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the Zachary Police Department, and the Wilkinson County, Mississippi, Sheriff’s Office in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Organized Crime and Gang Section of the Department of Justice, are in charge of the prosecution.
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.
Man Sentenced for Falsely Pretending to be a General in the U.S. ArmyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that CHRISTIAN GERALD DESGROUX, age 58, of Raleigh, was sentenced by U.S. District Judge Terrence W. Boyle to 6 months imprisonment followed by 1 year of supervised release. On June 26, 2018, DESGROUX pled guilty to pretending to be a United States Army Lieutenant General in violation of Title 18, United States Code, Section 912.
On November 6, 2017, DESGROUX, while dressed in a military battle dress uniform (BDUs) with U.S. Army rank and insignia, disembarked a private helicopter that landed at the headquarters of Statistical Analysis Systems (SAS) located in Cary, North Carolina. SAS security officers approached DESGROUX who claimed that he was a Lieutenant General in the United States Army and was authorized by the President of the United States to land the helicopter there in order to pick up a female employee of SAS for a classified debriefing at Fort Bragg, North Carolina. After the female and the defendant entered the helicopter, they flew around the area, refueled at a local airport, and returned to SAS.
When questioned by law enforcement, the female stated she was unaware that DESGROUX would be picking her up via helicopter. She believed that although they were not in a romantic relationship, DESGROUX was trying to impress her by flying her around. Her understanding was she would be meeting with the defendant to assist with a design project, but she had no knowledge of DESGROUX’s claims of a debriefing or joint special assignment involving the U.S. President. Investigation revealed DESGROUX had never been in the U.S. military.
The case was investigated by the Department of Homeland Security and the Defense Criminal Investigative Service. Assistant United States Attorneys Jason Kellhofer and Eleanor Morales prosecuted the case for the government.
Lovelia C. Mendoza Sentenced to Prison in Drug Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LOVELIA C. MENDOZA, age 36, from Dededo, was sentenced in District Court to an eight-year term of imprisonment, to be followed by five years of supervised release, for Possession with Intent to Distribute Fifty Grams or More of Methamphetamine. The Court also ordered Mendoza to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On April 17, 2017, agents and task force officers with the Drug Enforcement Administration conducted a search of Mendoza’s residence. They discovered approximately 537.19 net grams of methamphetamine hydrochloride (“ice”) and approximately 30 gross grams of cocaine. Mendoza was also in possession of $98,555.00 in United States currency, Western Union receipts, plastic Ziploc bags, two fabricated glass pipes, digital scales, a "Pringles" container(s) with a hidden compartment, cut plastic straws, a Sony digital camera, thumb drive, Samsung tablet, Samsung cellular phone, and other digital devices. The evidence revealed that Mendoza possessed the drugs with the intent to distribute them to another person. On May 18, 2017, Mendoza pled guilty to the charge of Possession with Intent to Distribute Fifty Grams or More of Methamphetamine, in violation of 21 U.S.C. § 841(a)(1).
This prosecution was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to federal and local agencies involved in the investigation of drug-related crimes. The Drug Enforcement Administration was the lead investigative agency. Assistance was also provided by the Superior Court of Guam Probation Office. Assistant United States Attorney Rosetta San Nicolas prosecuted this case for the United States Attorney’s Office for the District of Guam.
Los Angeles man sentenced to 40 years for drug trafficking in Hardy and Grant CountiesRead the Press Release
ELKINS, WEST VIRGINIA – Cesar Navarro, of Los Angeles, California, was sentenced today to 480 months incarceration for mailing methamphetamine through the U.S. mail, United States Attorney Bill Powell announced.
“Methamphetamine is an increasing problem in this district. We have seen significant increases in laboratory produced crystal meth coming from other states and countries. With these increases, we have seen more addiction, more violence and more despair. Our prosecutors and law enforcement partners spent countless hours on this case, and it demonstrates the kind of resources will devote to prosecute anyone who thinks they can distribute these highly addictive and dangerous drugs in this district. I have devoted additional resources to the methamphetamine problem, and we will continue to aggressively pursue all those who are involved in its distribution in West Virginia—no matter where they live,” said Powell.
Navarro was also ordered to pay $350,600 in a money judgement.
Navarro, age 40, was found guilty by a federal jury of one count of “Conspiracy to Distribute More than 50 Grams of Methamphetamine,” two counts of “Unlawful Use of Communication Facility,” and two counts of “Distribution of Methamphetamine” in March 2018.
Navarro often mailed at least one pound of crystal methamphetamine at a time to drug dealers in Grant and Hardy Counties and in Frederick County, Virginia, in exchange for large amounts of cash. Over a period of two years, Navarro was responsible for trafficking into West Virginia approximately fifty pounds of highly pure crystal methamphetamine.
Assistant U.S. Attorneys Stephen Warner and Andrew R. Cogar prosecuted the case on behalf of the government. The United States Postal Inspection Service, The West Virginia State Police Bureau of Criminal Investigations, and the Frederick County, Virginia Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.Kansas Man Sentenced to 18 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Leavenworth, Kan., man was sentenced in federal court today for sexually abusing a 14-year-old victim and recording the abuse on his cell phone.
Cole Ryan Marshall, 19, was sentenced by U.S. District Judge Beth Phillips to 18 years in federal prison without parole. The court also sentenced Marshall to serve the rest of his life on supervised release following incarceration.
On April 12, 2018, Marshall pleaded guilty to the sexual exploitation of a child. Marshall admitted that he engaged in illicit sexual conduct with a 14-year-old child victim and recorded images and videos on his cell phone. The images and videos were taken at a location in Polk County, Mo.
Marshall also admitted that he used Dropbox’s online cloud storage program to store and share child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Kansas Internet Crimes Against Children Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man, Woman Sentenced for Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and woman were sentenced in federal court today for their roles in a three-month-long spree of armed robberies at metropolitan area businesses.
Isaac J. Williams, also known as “Dat Flyguy,” 25, and Rahnice J. Clay, 25, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Williams was sentenced to 11 years in federal prison without parole. Clay was sentenced to eight years in federal prison without parole.
On Jan. 31, 2018, Clay pleaded guilty to two counts of aiding and abetting robbery and two counts of aiding and abetting the brandishing of a firearm during a crime of violence. Clay admitted that she was involved in the Sept. 11, 2015, armed robbery of a metroPCS store at 723 Southwest Blvd., Kansas City, Mo., and the Sept. 12, 2015, armed robbery of a GameStop store at 906 Westport Rd., Kansas City, Mo.
On May 24, 2017, Williams pleaded guilty to participating in an armed robbery conspiracy, two counts of robbery and two counts of aiding and abetting the brandishing of a firearm during a crime of violence.
Williams admitted that he participated in a conspiracy from July 25 to Oct. 20, 2015, that involved 13 armed robberies of businesses in the metropolitan area. Approximately $19,500 in proceeds and property were stolen during the course of the conspiracy.
Williams also admitted that he was involved in the Aug. 18, 2015, armed robbery of the MetroPCS store at 4513 Independence Ave., Kansas City, Mo., and the Aug. 21, 2015, armed robbery of the Phillips 66 gas station at 7531 Troost Ave., Kansas City, Mo.
Co-defendant Deitra M. Turner, also known as “Detrix Mob Turner,” 25, pleaded guilty to the same charges as Williams and was sentenced on April 12, 2018, to eight years in federal prison without parole.
Co-defendant Donald L. Boggess, also known as “Old School,” 56, of Kansas City, Mo., has pleaded guilty to one armed robbery and awaits sentencing.
In the Aug. 18, 2015, metroPCS robbery, Boggess was armed with a silver handgun while Williams stood by the door looking out. When Boggess demanded money, the sales clerk motioned to the cash register and Boggess opened the drawer, took approximately $2,627, and stuffed it into his hooded sweatshirt pocket. While taking the cash from the drawer, Boggess continued to point the handgun at the clerk and another employee. Williams and Boggess then fled the store and got into the getaway car with the Turner and Clay. All four divided and shared in the proceeds from the robbery.
In the Aug. 21, 2015, Phillips 66 robbery, Williams and Turner entered the store, while Clay was at the gas pump as the lookout and Boggess remained in the car, as he was the getaway driver. The cashier was in the middle of a transaction with a customer who had just handed her a $100 bill when Williams pushed the customer out of the way and demanded the money in the register. He then pulled out a silver handgun that was wrapped in a t-shirt and pointed it at her. The cashier opened the cash register and took out all of the cash and placed it onto the counter. Williams grabbed the cash, then he and Turner (who was standing by the door as a lookout) left the store. They got into Boggess’s vehicle and Boggess drove away. The money from the robbery was split equally among the four of them.
Clay admitted that, in two robberies, she entered the store prior to the robbery then left the store when there were no other customers. A short time later, Williams and Turner entered the store. Williams, armed with a handgun, demanded money.
In the Sept. 11, 2015, metroPCS robbery, Turner grabbed a blue metroPCS bag from the store to put the money in to. The employee handed over approximately $312. Williams and Turner ordered her to the back to unlock the safe, but she was unable to unlock the safe.
In the Sept. 12, 2015, GameStop robbery, Turner took one of the employees to the back and collected game systems. The employee stated he handed over approximately $555 and games. Two witnesses outside the GameStop store saw Williams and Turner run to and get into Clay’s red Toyota; Clay, the getaway driver, was already in the car. Williams, Turner, and Clay split the money and video game systems.
Boggess pleaded guilty to the Aug. 30, 2015, armed robbery of a 7-Eleven store at 1701 Independence Ave., Kansas City, Mo.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department, the Grandview, Mo., Police Department, the Roeland Park, Kan., Police Department and the FBI.
Justice Department Announces Addendum to Swiss Bank Program Category 2 Non-Prosecution Agreement with Bank Lombard Odier & Co. Ltd.Read the Press Release
The Department of Justice announced today that it has signed an Addendum to a non-prosecution agreement with Bank Lombard Odier & Co., Ltd., of Zurich Switzerland. The original non-prosecution agreement was signed on December 31, 2015.
The Swiss Bank Program, which was announced on August 29, 2013, provided a path for Swiss banks to resolve potential criminal liabilities in the United States relating to offshore banking services provided to United States taxpayers. Swiss banks eligible to enter the program were required to advise the Department by December 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Swiss banks participating in the program were required to make a complete disclosure of their cross-border activities, provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers had a direct or indirect interest, cooperate in treaty requests for account information, and provide detailed information about the transfer of funds into and out of U.S.-related accounts, including undeclared accounts, that identifies the sending and receiving banks involved in the transactions.
The Department executed non-prosecution agreements with 80 banks between March 2015 and January 2016. The Department imposed a total of more than $1.36 billion in Swiss Bank Program penalties, including more than $99 million in penalties from Lombard Odier. Pursuant to today’s agreement, an addendum to Lombard Odier’s non-prosecution agreement, Lombard Odier will pay to the Department an additional sum of $5,300,000, and will provide to the Department supplemental information regarding its U.S.-related account population, which now includes 88 additional accounts.
Every bank that signed a non-prosecution agreement in the Swiss Bank Program had represented that it had disclosed all of its U.S.-related accounts that were open at each bank between August 1, 2008, and December 31, 2014. Each bank also represented that it would, during the term of the non-prosecution agreement, continue to disclose all material information relating to its U.S.-related accounts. In reaching today’s agreement, Lombard Odier acknowledges that there were certain additional U.S.-related accounts that it knew about, or should have known about, but that were not disclosed to the Department at the time of the signing of the non-prosecution agreement. Lombard Odier provided early self-disclosure of their unreported U.S.-related accounts and has fully cooperated with the Department.
“The Department of Justice and Internal Revenue Service have capitalized on information obtained under the Swiss Bank Program to analyze the flow of money of U.S. tax evaders from closed Swiss bank accounts to banks in other countries. As a result, the Department has learned more about the methods of those who continue to evade their tax obligations and those institutions that assist them,” said Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Department of Justice’s Tax Division. “I urge any banks that aided and abetted in these schemes, or that have received money from closed Swiss bank accounts owned or controlled by persons or entities that are U.S. related, to contact the Tax Division and disclose complete and accurate information about these activities before they are contacted by the Division or the IRS.”
Principal Deputy Assistant Attorney General Zuckerman thanked Trial Attorney Kimberly M. Shartar, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis, and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury Finds Baldwin County Kingpin Guilty of All ChargesRead the Press Release
MACON: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that Delma Goddard, a/k/a “Shug” and “Big Hxmie” age 38, of Milledgeville, Georgia, was found guilty by a jury of his peers of Conspiracy to Possess with Intent to Distribute more than 280 Grams of Crack Cocaine, more than 50 Grams of Methamphetamine, and more than 100 Grams of Heroin. The jury also convicted Mr. Goddard of four counts of Distribution of Methamphetamine; six counts of Distribution of Crack Cocaine; five counts of Possession of a Firearm by a Convicted Felon; five counts of Possessing a Firearm in Furtherance of a Drug Trafficking Crime; one count of Distribution of Heroin; and one count of Possession with Intent to Distribute Heroin. As a result of his conviction on these twenty three counts, Mr. Goddard is facing a minimum mandatory term of imprisonment of at least 125 years without parole.
Mr. Goddard was the lead conspirator and is a member of the Nine-Deuce gang in Baldwin County. The Nine-Deuce gang is affiliated with the Bloods national street gang. During the period between 2013 and 2016, the Nine-Deuce gang was responsible for numerous gang-related assaults in Baldwin County, Georgia. The gang is identified by its use of the color red, as well as particular hand signs, and it is fueled by proceeds from the sale of illegal drugs in Milledgeville and the surrounding counties. Mr. Goddard was responsible for obtaining, manufacturing and distributing crack cocaine, and also for distributing methamphetamine and heroin.
As part of the investigation, agents from the DEA, FBI, ATF and Ocmulgee Drug Task Force were responsible for removing more than 10 ounces of crack cocaine, more than 10 ounces of methamphetamine, and more than 10 ounces of heroin from the streets of Milledgeville. In addition, 17 firearms, including two assault rifles, were purchased from Mr. Goddard and/or seized during a search warrant executed at his residence.
Evidence established during the trial proved that Mr. Goddard sold various quantities of crack cocaine, methamphetamine and heroin to government operatives. Mr. Goddard has a prior conviction for the Sale of Cocaine in 2000.
As part of the original indictment in this case, fifteen other individuals, several of whom were Nine-Deuce gang members, entered guilty pleas to various charges:
- Chad Delacy Freeman, a/k/a “Big Bone” and “Bone Loco” – gang member
- Cynthia Bolston Smith, a/k/a “Cynt”
- Alonzo Butts
- Demetrius Jamel Harden, a/k/a “Meat Dawg” and “Meat Dog” – gang member
- Deshawn Ransom, a/k/a “Nephew” – gang member
- Eric Demetrius Veal
- Everett Hill
- Derrick Mosley, a/k/a “D Mo” – gang member
- Ishmawiyl Abdhal Davis, a/k/a “NY” and “New York” – gang member
- Travis Glenn, a/k/a “T” and “TG” – gang member
- Edward Antonio Brown, a/k/a “Plug” – gang member
- Montavious Jermell Barnes, a/k/a “Coot” and “Koot” – gang member
- Jevon Deshawn Clark, a/k/a “Dub” and “J Dub” – gang member
- Demale Hampton, a/k/a “Rabbit” and “Rab”
- Demond Monterio Dennis, a/k/a “Double Deuce” – gang member
Mr. Goddard will be sentenced in about 60 days following a pre-sentence investigation and report.
“These guilty pleas and convictions and the dismantling of this gang are the result of a true partnership between District Attorney Steve Bradley’s office, Baldwin County Sheriff Bill Massee’s office, the Ocmulgee Drug Task Force, DEA, FBI, ATF, and the Office of the United States Attorney for the Middle District of Georgia,” said United States Attorney Charles E. Peeler. “To those who choose to engage in drug trafficking, firearms trafficking and violent crime, take note: Federal and State law enforcement and prosecutors are teaming up to take you down. Providing the citizens of Middle Georgia with the safe neighborhoods and drug free communities they deserve is the top priority of this office. Thank you to the hard work of law enforcement in this matter.”
“Baldwin County residents can sleep better tonight knowing that a guilty verdict has been returned against this violent crack, powder cocaine and methamphetamine trafficker,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division. “This case demonstrates how DEA and its local, state and federal law enforcement partners and the U.S. Attorney’s Office present a united front to disrupt, dismantle and destroy gang-related drug trafficking organizations.”
“Nothing infects our communities more than the infiltration of drugs and guns onto our streets,” said Ricardo Grave de Peralta, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Goddard’s conviction is only the beginning of our efforts to protect the good citizens of Baldwin County from the menace this top level gangster and his fellow gang members posed.”
“Sheriff Bill Massee and I both appreciate the excellent coordination between our personnel and those in the Federal system. That partnership has led to a real, identifiable reduction in local gang and drug activity,” said Ocmulgee Judicial Circuit District Attorney Steve Bradley. “These were serious, historical offenders we took off the street, and Baldwin County is much safer as a result.”
The case was brought as part of OCDETF (Organized Crime Drug Enforcement Task Force) and Project Safe Neighborhoods (PSN) programs. OCDETF and PSN are programs that have been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
This case was investigated by the Baldwin County Sheriff’s Office; Ocmulgee Drug Task Force; Drug Enforcement Administration (DEA); Federal Bureau of Investigation (FBI) and Bureau of Alcohol, Tobacco’ Firearms and Explosives (ATF). Assistant U.S. Attorneys Charles Calhoun and Michael Solis are prosecuting the case for the Government with participation and cooperation of Ocmulgee Judicial Circuit District Attorney Steve Bradley.
Questions regarding this case should be addressed to Pamela Lightsey, Public Information Officer, at 478-731-1824 or [email protected].
Joliet, Illinois Man Sentenced to 51 Months in PrisonRead the Press Release
HAMMOND- Rigoberto Ortiz-Dominguez, 33, of Joliet, Illinois, was sentenced before District Court Judge Philip P. Simon on his plea to possession with intent to distribute heroin, announced U.S. Attorney Kirsch.
Ortiz Dominguez received a sentence of 51 months in prison followed by 2 years of supervised release.
According to documents filed in this case, DEA agents used a confidential source to negotiate with Michael Cruz, Ortiz-Dominguez’s co-defendant, for the purchase of kilograms of heroin on November 16, 2017. Cruz informed the confidential source that a courier would deliver the heroin later that same day. The courier was Ortiz-Dominguez. Hammond Police stopped Ortiz-Dominguez on his way to deliver the heroin. During a search of Ortiz-Dominguez’s car, police found 3.06 kilograms of heroin in a hidden compartment. Co-defendant Michael Cruz entered a guilty plea to the same charge on July 27, 2018.
This case was investigated by the Lake County HIDTA (DEA) with the assistance of the Hammond Police Department and was prosecuted by Assistant United States Attorney Thomas M. McGrath.
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Individual Found Guilty for DogfightingRead the Press Release
SAN JUAN, P.R. – Today, after a two-day trial and a 20-minute deliberation, a jury found Ehbrin Castro-Correa, a.k.a. “Chino” guilty of possessing and training an animal for purposes of having the animal participate in an animal fighting venture, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. United States District Court Chief Judge Gustavo Gelpí presided over the trial. Immigration and Customs Enforcement- Homeland Security Investigation (ICE-HSI) was in charge of the investigation.
On June 12, 2017, with jury selection about to begin, Castro-Correa entered a plea of guilty to participating in a dogfight on January 24, 2016 in Juncos, PR. However, at his sentencing hearing on December 19, 2017, Castro-Correa refused to take responsibility for his crime. The court vacated the defendant’s guilty plea and then set the case back on the trial schedule.
On January 24, 2016, defendant used his cellphone to film his dog and another dog engaged in a brutal and bloody dogfight in Juncos. The video was discovered during a search of defendant’s cellphone at the Pan American dock when he attempted to transport six canines to the Dominican Republic for dogfighting. The Dominican Republic is a notorious worldwide haven for dogfights. This discovery led to the execution of a search warrant at his residence, which resulted in the seizure of an additional 25 dogs, dogfighting training materials and instruments, and pharmaceuticals commonly used to condition dogs for dogfighting and treat their wounds.
“This is a bloody and brutal crime where dogs are trained and forced to tear each other apart for the amusement of sick and depraved individuals. It is important to inform the public that it is a violation of federal law to even attend a dogfight,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The protection of animals is a priority of the U.S. Attorney’s Office for the District of Puerto Rico. Today’s guilty verdict concludes satisfactorily the first case ever tried in the District of Puerto Rico involving dogfights. Individuals who attempt to profit from animal abuse crimes will be investigated, prosecuted, and punished accordingly.”
The defendant is facing up to five years in prison, a fine not to exceed two-hundred and fifty thousand dollars ($250,000.00), and a term of supervised release of at least three years. Assistant United States Attorney Scott H. Anderson was in charge of the prosecution of the case.
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Hartford Man Sentenced to Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISAIAH GAMBLE, also known as “Fresh” and “Zay,” 23, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s North End. In 2015, there was a spike of gang-related violence between the Hoodstarz and the Dumouts street gangs. GAMBLE was identified as a member of the Hoodstarz.
In the summer of 2015, investigators made multiple controlled purchases of narcotics from GAMBLE and others in the area of Westland Street in Hartford. On September 15, 2015, GAMBLE was arrested in possession of crack cocaine that he had arranged to sell to an undercover officer.
On March 2, 2016, GAMBLE pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
After his guilty plea and while released on bond and awaiting sentencing, GAMBLE had been participating in the U.S. District Court’s Support Court program. On May 2, 2018, Hartford Police arrested GAMBLE and two other individuals after they traveled by car to a location on Westland Street. A search of GAMBLE’s person revealed an “eight-ball” of crack cocaine, and a search of the car revealed 100 wax sleeves containing suspected fentanyl, quantities of crack and marijuana, a digital scale with white residue, and $3,395 in cash. GAMBLE was dismissed from Support Court after his arrest and his federal sentencing was scheduled.
On July 10, 2018, while awaiting sentencing in his federal case, GAMBLE was arrested again after a vehicle in which he was a passenger was stopped for motor vehicle violations. GAMBLE jumped out of the vehicle and began to run toward a residence. He was stopped before entering the house, and a search of his person revealed crack cocaine. A search of the vehicle revealed a digital scale covered with a white powder residue.
GAMBLE has been detained since July 16, 2018, when his bond was revoked.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gulfport Man Sentenced to 10 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Eric Jameson Graham, 39, of Gulfport, was sentenced today by U.S. District Judge Louis Guirola, Jr. to the maximum 120 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. He was also ordered to pay a $3,000 fine.
On October 4, 2017, an informant advised agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that Graham sold an SKS rifle to a known felon. On October 5, 2017, Agents obtained a search warrant for the home Graham shared with his codefendant Erin Woods, where they found marijuana, methamphetamine, and 21 firearms. The firearms were stolen from Woods’ father, a collector. Graham had a prior felony conviction for grand larceny and therefore is prohibited from possessing any firearm.
Co-defendant Woods previously pled guilty in federal court, before Judge Guirola on April 25, 2018, to being a user of controlled substances illegally possessing a firearm. Woods was sentenced on July 25, 2018 to the maximum penalty of 10 years in federal prison for that crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Annette Williams.
Georgia Man Sentenced on Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Anthony Desean Lee, 28, of Decatur, Georgia, was sentenced on July 26, 2018, to 120 months’ imprisonment for being a convicted felon in possession of a firearm. Court documents show that federal law enforcement officers were conducting an investigation into the whereabouts of Lee and another subject, both wanted on fugitive warrants from the state of Georgia. The officers traveled to a residence in Citronelle, where they arrested Lee in the yard. The officers received consent to search the residence, where Lee admitted he was staying, and they found a .9mm pistol and an AK47 rifle, along with numerous rounds of ammunition for both weapons. In addition to the outstanding arrest warrant, the investigation showed that Lee had prior convictions for Robbery and Aggravated Assault, Armed Robbery and Possession of a Firearm during the Commission of a Crime, Aggravated Assault with a Deadly Weapon, Possession of a Firearm during the Commission of a Felony, and a prior charge of Possession of a Firearm by a Convicted Felon. Lee was indicted on the federal gun charge in Mobile in October of 2017, and he pled guilty in March of 2018.
United States District Court Judge Callie V. S. Granade sentenced Lee to 120 months’ imprisonment, which is the maximum sentence permitted by law for the offense. When Lee is released from imprisonment, he will serve three years of supervised release, during which he will undergo drug and alcohol abuse treatment. Lee was also ordered to pay $100 in mandatory special assessments, but no fine was imposed.
The case was investigated by the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
Fugitive Lawyer Brought to South Florida to Face Federal Fraud ChargesRead the Press Release
Michael R. Casey, 71, a fugitive for over four years, wanted on federal charges related to an alleged $20 million investment fraud scheme, is scheduled to have his initial appearance today at 1:30 p.m. before United States Magistrate Judge Lauren F. Louis in Miami, Florida.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Amos Rojas, Jr., United States Marshal, United States Marshals Service (USMS), Miami Field Office, made the announcement.
According to allegations contained in the court record, Casey, originally of Fort Lauderdale, and co-defendants Patricia S. Saa, of Tampa, Louis N. Gallo, III, of Parkland, and James C. Howard, III, of Parkland, defrauded individuals who invested in Commodities Online LLC (COL). From approximately January 2010 through April 2011, Casey and his co-conspirators allegedly used material false and fraudulent representations and material omissions to obtain over $20 million from over 700 investors.
Casey and his co-conspirators allegedly used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. After receiving the funds for the COL ownership units, Howard and Saa diverted a large part of those funds for other purposes. Shortly after that, Casey became President of COL and learned that substantial investor funds had been diverted and did not disclose it to investors. In addition to selling COL ownership units, Casey and his co-conspirators offered investors the opportunity to fund purported contracts to buy and sell commodities. Casey and his co-conspirators offered a pre-determined percentage return on investment. Casey and his co-conspirators represented to investors that COL had a track record of profits on these purported contracts. However, COL did not have profits.
Casey and his co-conspirators also allegedly made material misrepresentations and omissions about the leaders of COL. After mid-2010, Casey and his co-conspirators represented that Howard was no longer managing COL, when in fact, Howard remained in charge. Also, Casey and his co-conspirators did not disclose to investors that both Howard and co-defendant Gallo had previously been convicted of federal felonies, and that Gallo was still serving a term of supervised release.
On August 30, 2012, Casey was charged by indictment in Case No. 12-20630-Cr-Lenard, along with Howard, Saa, and Gallo, with one count of conspiracy to commit mail and several counts of mail and wire fraud. Howard, Saa, Gallo, and another defendant, Rita Balbirer, were also charged with conspiracy to commit money laundering and various counts of money laundering.
In April of 2014, Casey failed to appear at a status hearing while pending trial. A bench warrant was issued for his arrest. In August of 2014, Casey was indicted for bond jumping in Case No. 14-20619-Cr-Moreno.
In September 2013, Howard, who was the founder of COL and had a prior criminal history that had not been disclosed to investors, pled guilty to one count of conspiracy to commit mail and wire fraud. In December 2013, Howard was sentenced to 189 months in prison.
In August of 2014, Gallo, who was a leader in the scheme and had a prior criminal history that had not been disclosed to investors, pled guilty to one count of conspiracy to commit mail and wire fraud. In October of 2014, Gallo was sentenced to 168 months in prison.
In July of 2014 Balbirer, an assistant to Gallo, pled guilty to two counts of money laundering. In September of 2015, Balbirer was sentenced to 17 months in prison.
In addition, other co-conspirators in the COL fraud scheme were charged separately with conspiracy to commit mail and wire fraud. In November 2013, three defendants pled guilty for their involvement in the scheme. In February 2015, Timothy Josselson was sentenced to 38 months in prison, in Case No. 13-20730-Cr-Altonaga. In February 2015, Kathryn Josselson was sentenced to 36 months in prison, in Case No. 13-20731-Cr-Moore. In March 2015, Robert Lananna was sentenced to 40 months in prison, in Case No. 13-20732-Cr-Ungaro.
Mr. Greenberg commends the investigative efforts of the FBI and USMS in this matter. Mr. Greenberg thanked the Mexican government for its assistance. This case is being prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John Gonsoulin.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fugitive Extradited in Border Patrol Agent Brian Terry Murder CaseRead the Press Release
NEWS RELEASE SUMMARY – July 31, 2018
SAN DIEGO, CA – Heraclio Osorio-Arellanes, who is charged with the first-degree murder of U.nited S.tates Border Patrol Agent Brian Terry, was extradited from Mexico to the United States today, announced Attorney General Jeff Sessions and Southern District of California U.S. Attorney Adam Braverman for the Southern District of California. He will be arraigned in U.nited S.tates District Court in, Tucson, Arizona, Wednesday tomorrow afternoon. Osorio-Arellanes has been in custody awaiting extradition since his arrest by Mexican authorities on April 12, 2017.
Agent Terry was fatally shot on Dec.ember 14, 2010, when he and other U.S. Border Patrol agents encountered Osorio-Arellanes and four other members of a “rip crew” (a criminal gang that attempts to steal from drug and alien smugglers) operating in a rural area north of Nogales, Arizona. Of the six defendants charged along with Osorio-Arellanes in the case, three have pleaded guilty, two were convicted following a jury trial, and one other defendant – Jesus Rosario Favela Astorga (arrested by Mexican authorities in October, 2017) – has not yet been tried. is pending extradition to the United States.
“The Department of Justice is pleased that the suspected killer of Border Patrol Agent Brian Terry has been successfully extradited to the United States and will now face justice for this terrible crime,” said Attorney General Jeff Sessions. “We are grateful for the efforts of the Federal Bureau of Investigation, U.S. Marshals Service and U.S. Customs and Border Protection as well as our law enforcement partners in Mexico. To anyone who would take the life of an American citizen, in particular an American law enforcement officer, this action sends a clear message: Working closely with our international partners, we will hunt you down, we will find you, and we will bring you to justice.”
“The arrest and extradition of Osorio-Arellanes reflects the steadfast commitment and tireless work of the United States and our law enforcement partners in Mexico, who shared the common goal of seeking justice for the murder of Agent Brian Terry,” said U.nited S.tates Attorney Adam Braverman. “When an agent makes the ultimate sacrifice while serving his country, we must hold all the individuals who played a part in this tragic outcome accountable for their actions. This extradition moves that important goal forward.”
The indictment charges the defendants with first-degree murder, second-degree murder, conspiracy to interfere with commerce by robbery, attempted interference with commerce by robbery, use and carrying a firearm during a crime of violence and assault on a federal officer. In addition to the murder of Agent Terry, the indictment alleges that the defendants assaulted U.S. Border Patrol Agents William Castano, Gabriel Fragoza and Timothy Keller, who were with Agent Terry during the firefight with the “rip crew.”
This case is being prosecuted in federal court in Tucson by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson and David D. Leshner. The U.S. Attorney’s Office for the District of Arizona is recused. The case is being investigated by the FBI. The Government of Mexico assisted in the apprehension and extradition. The Justice Department’s Office of International Affairs provided assistance with the extradition of defendant Osorio-Arellanes.
The public is reminded that an indictment is a formal charging document and defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Case No. 11-CR-00150-TUC-DCB (BPV)
Heraclio Osorio-Arellanes
AGENCIES
Federal Bureau of Investigation
U.S. Customs and Border Protection
United States Border Patrol
DOJ Office of International Affairs
Fourth Defendant Pleads Guilty in Wide-Ranging Cocaine Conspiracy; Admits Illinois Weapons Cache Was Part of ConspiracyRead the Press Release
NEWS RELEASE SUMMARY – July 31, 2018
SAN DIEGO – Juan A. Mexicano, aged 33, pleaded guilty today in federal court before U.S. Magistrate Judge Ruben B. Brooks to an expanding cocaine distribution conspiracy, extending from Mexico to San Diego to the Chicago, Illinois area. Mexicano, who remains in custody, is the fourth defendant to plead guilty in this case. He admitted to maintaining a narcotics stash house in Illinois to further the distribution of cocaine that emanated from a Mexican-based trafficker, identified in court documents as “El 99”, and which entered the United States via the Southern District of California. Mexicano also admitted that a cache of firearms and other weapons, including two live grenades, that law enforcement located in a storage facility rented in Mexicano’s name were possessed in relation to his involvement in the narcotics conspiracy.
Through his plea agreement, Mexicano admitted that the stash house, approximately 10 miles northwest of Chicago, was used for the temporary storage of cocaine before it was further distributed. Mexicano acknowledged that, up to approximately150 kilograms (approximately 330 pounds) of cocaine were stored at that property. In August 2016, shortly before a search warrant was executed at the property, Mexicano admitted that he removed bulk U.S. currency and cocaine from the property. Mexicano also admitted that, to further the conspiracy, he temporarily stored drug proceeds at a stash house before those proceeds were moved south from the Chicago area to Mexico.
The federal charges to which Mexicano has pleaded guilty carry a mandatory minimum ten year sentence and a maximum life sentence. Mexicano is scheduled to be sentenced on October 19, 2018 before U.S. District Judge Gonzalo P. Curiel in San Diego.
Notwithstanding his guilty plea in San Diego, Mexicano still faces weapons charges in Kane County, Illinois (Case No. 17CF1720) related to the discovery of the weapons cache in Elgin, Illinois. In addition to the live grenades, the weapons seized included fully automatic weapons, a submachine gun and others. A photograph of the weapons, previously released by the Elgin Police Department (see Report #2016-59306), is attached.
In addition to Mexicano, other defendants who have entered guilty pleas in the case are: Walter Rovidio Ipina, aged 40; David Castaneda-Solis, aged 33; and Zachary Vasquez, aged 27.
Through his plea agreement, Ipina admitted that, during 2016, he moved the cocaine provided by El-99 that entered the United States through the Southern District of California by using his family owned trucking business’ tractor-trailer to transport the cocaine from Southern California to the Chicago, Illinois area. In September 2016, he was stopped by law enforcement agents who seized the 32 kilograms (approximately 70 pounds) of cocaine that he was then carrying. Ipina is scheduled for sentencing on August 3, 2018 before Judge Curiel.
Castaneda-Solis pleaded guilty to laundering the narcotics proceeds. On August 12, 2016, Castaneda-Solis was caught by law enforcement while he was unloading $154,000 in narcotics proceeds from a hidden compartment in the dashboard of a Honda Pilot vehicle. The $154,000 was seized by law enforcement. Castaneda-Solis admitted that he placed these proceeds into a black bag to enable their further transport to their ultimate destination in Mexico. Castaneda-Solis is scheduled for sentencing on October 4, 2018.
Vasquez pleaded guilty to the cocaine conspiracy and admitted that he served as a narcotics load coordinator/recruiter. He admitted to coordinating with “El 99” in Mexico. Vasquez also admitted to recruiting and supervising a driver who smuggled cocaine through the San Ysidro Port of Entry on at least four occasions before that driver was arrested and the cocaine the load driver was then transporting was seized. Vasquez admitted that his activity involved more than 125 kilograms, but less than 150 kilograms (between approximately 275 and 330 pounds) of cocaine. Vasquez is scheduled for sentencing on September 13, 2018.
DEFENDANTS Case Number 17-cr-648
Juan A. Mexicano Age: 33 Addison, IL
Walter R. Ipina Age: 40 Victorville, CA
David Castaneda-Solis Age: 34 Mexico
Zachary Vasquez Age: 27 Anaheim, CA
SUMMARY OF CHARGES TO WHICH GUILTY PLEAS ENTERED
Mexicano, Ipina & Vasquez
Conspiracy to Unlawfully Distribute Cocaine, 21 U.S.C. 846
Maximum penalty: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; and at least five years’ supervised release up to life.
Castaneda-Solis
Conspiracy to Launder Monetary Instruments, 18 U.S.C. 1956(h)
Maximum penalty: 20 years custody; 3 years supervised release; and $500,000 fine.
INVESTIGATING AGENCIES
Homeland Security Investigations
Bureau of Alcohol Tobacco Firearms and Explosives
Ventura County, CA Sheriff’s Office
Police Departments of: Elgin, IL; Addison, IL.; Chicago, IL; Hoffman Estates, IL;
New Lenox, IL; Olympia Fields, IL; Streamwood, IL; and Lombard, IL
Sheriff’s Offices of: Kane County, IL; DuPage County, IL; Will County, IL
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Walter Gross, Jr., 58 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to one count of Possession of Material Depicting Minors Engaged in Sexually Explicit Conduct, announced U.S. Attorney Kirsch.
Gross, Jr. was sentenced to 120 months imprisonment followed by 5 years of supervised release.
According to documents in the case, on April 6, 2017, Gross Jr. was found to be in possession of images of minors engaged in sexually explicit conduct.
This case was investigated by the FBI, the Fort Wayne Police Department, and the Indiana State Police and was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Supreme Court Justice Charged with Wire FraudRead the Press Release
CHARLESTON, W. Va. – United States Attorney Mike Stuart announced today that former West Virginia Supreme Court of Appeals Justice Menis E. Ketchum II, age 75, was charged by Information with wire fraud. Justice Ketchum served as a Supreme Court Justice from January 1, 2008 through July 27, 2018.
“Corruption by public officials – any public official – is a priority of my office,” said United States Attorney Mike Stuart. “The people of West Virginia have worked too hard and too long to tolerate misconduct that strikes at the heart of the public’s trust by their elected officials. I believe it is a fundamental right of every West Virginian to have honest government with public officials worthy of the greatness of our citizens.”
The Information relates to Justice Ketchum’s repeated personal use of a State of West Virginia vehicle and State fuel credit card over the course of 2011 through 2014 in connection with his travel from his home in Huntington, West Virginia to and from a private golf club in western Virginia. The roundtrip mileage for each of these golf outings was approximately 400 miles and cost the taxpayers of West Virginia approximately $220 per trip.
Stuart praised the work of the Federal Bureau of Investigation, the West Virginia Legislative Commission on Special Investigations, and the Internal Revenue Service—Criminal Investigation Division.
“Throughout this investigation and including today’s filing of a federal information against Justice Ketchum, the system worked,” said United States Attorney Mike Stuart. “This is not a sad day for West Virginia but, rather, a day in which our citizens should be comforted. We are now one step closer to ending the crisis of this court.”
"West Virginians deserve public officials they can trust and who will represent them honestly and fairly," said Assistant Special Agent in Charge Nick Boshears. "The public needs to know they can have the highest confidence those who violate their trust will be held accountable."
The Information carries a penalty of up to 20 years imprisonment, a $250,000 fine, and a term of supervised release of up to 3 years.
Please note: An Information is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Former Police Officers Sent to PrisonRead the Press Release
McALLEN, Texas – Two former San Juan police officers have been ordered to federal prison for lying to federal agents, announced U.S. Attorney Ryan K. Patrick. Following two jury trials in December 2017 and May 2018, Salvador Hernandez, 30, of Mission, and Richard Leon Castillo, 27, of Pharr, were convicted of making materially false statements to agents with the Drug Enforcement Administration (DEA) who were conducting an investigation into missing bundles of cocaine.
Today, U.S. District Judge Micaela Alvarez ordered Hernandez to serve 24 months in prison, while Castillo received a 16-month sentence. Both will also serve three years of supervised release following their prison terms. In imposing the sentences, the court noted she had no doubt the defendants knowingly and intentionally lied and tried to mislead DEA agents while they were conducting the criminal investigation. As former officers, Judge Alvarez also stated that Castillo and Hernandez swore an oath to uphold and enforce the law and that their criminal conduct tainted the entire community by eroding the community’s trust in law enforcement. Judge Alvarez upwardly departed from the sentencing guidelines because of the serious nature of their conduct, their positions of trust within the community, the need to promote respect for the law and the need to prevent future criminal conduct.
During both trials, the juries heard that on Aug. 27, 2016, authorities seized a load of cocaine from an abandoned vehicle in a San Juan orchard. The investigation revealed 40 bundles of cocaine were intentionally left in the vehicle. However, officers with the San Juan Police Department logged only 37 bundles into evidence.
During the course of the investigation into the missing cocaine, agents discovered the drugs had been stored in a vehicle belonging to Hernandez at the scene. DEA agents interviewed Hernandez, at which time he claimed he never opened the hatch once the drugs were placed in his unit. He added that while assisting in the search for a suspect, he helped search a shed with fellow officer Castillo and Border Patrol (BP) agents.
Authorities also interviewed Castillo, at which time he claimed never to have seen the narcotics prior to their arrival at the police department and that he did not know who transported the cocaine.
DEA then obtained body camera footage from Castillo that showed both officers had lied to DEA agents. In the video, Hernandez and Castillo finished searching a shed and then Hernandez allowed Castillo to touch the cocaine bundles. The footage also demonstrated the two men were alone when they discussed the fact that the bundles had not yet been counted. In the video, Hernandez told Castillo to pick up a bundle. When Castillo reached for one, Hernandez said, “that one’s mine.”
Further evidence presented to the jury revealed that when agents asked Castillo whether he was involved in stealing three kilograms of cocaine, he looked down and refused to answer the question. At the time of Hernandez’s arrest on drug charges, he questioned being taken into custody, noting there were “bigger fish involved.”
Previously released on bond, both were permitted to remain on bond and surrender to a U.S. Bureau of Prisons facility to be determined at a later date.
The DEA, FBI and Department of Homeland Security – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kristen Rees and Bobby Lopez prosecuted the case.
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Former Jasper School District Employee Sentenced for $145,000 Embezzlement SchemeRead the Press Release
SPRINGFIELD, Mo. – A former employee of the Jasper R-5 School District was sentenced in federal court today for embezzling more than $145,000 from the district.
Karla Justice, also known as Karla Jessee, 56, of Columbus, Kan., was sentenced by U.S. District Judge M. Douglas Harpool to two years and six months in federal prison without parole. The court also ordered Justice to pay $145,726 in restitution.
On Feb. 7, 2018, Justice pleaded guilty to one count of wire fraud and one count of credit card fraud. Justice admitted that she embezzled a total of $145,726 from the school district over a three-year period from September 2013 to September 2016. Her criminal conduct involved hundreds of individual acts of fraud and embezzlement against the school district.
According to court documents, Justice’s fraudulent scheme not only bled the school district of essential resources, her actions aggravated the financial distress of the district as well. Justice’s fraud and embezzlement had grown to the point that the school district’s reserve account was all but entirely drained, while teaching positions were eliminated, salaries were capped and cut, programs were eliminated or reduced, and children were denied essential educational resources. The school district cut its weekly school calendar to four days, placed all support staff on part-time status, and eliminated their healthcare benefits.
Justice was employed as the head bookkeeper, payroll secretary, superintendent secretary, and board secretary for the Jasper R-5 School District from 2009 until her resignation on Sept. 22, 2016. Justice’s positions with the school district gave her unrestricted access to the account and payroll systems for the school district, as well as the district’s petty cash checkbook and signatory authority for this account. Justice essentially had unlimited access to every aspect of the account and human resources functions for the district.
Justice admitted that she paid herself $80,858 in additional payroll above and beyond the amount allowed under her employment contract. As a result of the fraudulently received payroll, Justice also received an additional $6,731 in employer retirement contributions and $6,530 in Social Security and Medicare contributions that she would not have received otherwise.
The investigation also discovered numerous transactions involving the petty cash account, including checks and E-checks that totaled $13,929 in transactions that were conducted by Justice to pay for personal expenses that were unrelated to the activities of the district, and were not authorized by the district.
Justice also opened and used a Home Depot credit card in the name of the district, without authority or the approval of any district official. Justice used the fraudulently opened Home Depot credit card to conduct several personal purchases between Jan. 6 and Sept. 1, 2016, totaling $2,133.
The investigation revealed numerous checks that had been written on the operating account for the district. Justice did not have authority to write checks to this account but she did have access to the signature stamps for school officials, who did have signatory authority over this account. Several district employees informed investigators that Justice repeatedly asked them to cash checks for her. School officials told investigators that each of the checks discovered during the investigation were fraudulently created and Justice’s request that other employees cash these checks and give her the money was done to bypass safety measures created to prevent employees from directly cashing checks made out to themselves.
According to court documents, school officials began analyzing the district’s budget when the district experienced financial difficulties. During this analysis, officials noted irregularities in payroll payments, unexplained credit card payments, and missing monies from the petty cash account. When asked to reconcile the irregularities, Justice immediately wrote out a letter of resignation.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Jasper County, Mo., Sheriff’s Department.
Former FBI Task Force Officer and Palm Beach County Sheriff’s Deputy Pleads Guilty to Making Materially False Statements in Official FBI ReportsRead the Press Release
West Palm Beach, Florida – United States Attorney Maria Chapa Lopez announces that Lorenzo Gatti (52, Delray Beach) yesterday pleaded guilty to one count of making materially false, fictitious, and fraudulent statements in official FBI reports. Gatti faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on July 27, 2013, Gatti, who at the time was a Palm Beach County Sheriff’s Deputy, assigned to the FBI as a task force officer, was involved in an automobile accident at an intersection in Boynton Beach, Florida. A few days later, in two separate FBI reports, Gatti stated that he was on official business at the time of the accident. Specifically, he claimed that the accident occurred after he had conducted a 24-mile surveillance on a target of a federal investigation.
At the time Gatti made these statements, he knew that his claims about conducting surveillance were false. In particular, records indicate that the target of the federal investigation did not, on the date of the accident, drive anywhere near the surveillance route that Gatti said he had followed.
This case was investigated by the U.S. Department of Justice - Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Sean P. Shecter and Ilianys Rivera Miranda.
Former Executive Director Sentenced to 37 Months in Federal PrisonRead the Press Release
Tracy Bronson embezzled $573,159 from the Calhoun Conservation District between 2014 and 2017
GRAND RAPIDS, MICHIGAN — Tracy Lynn Bronson, 57, of Marshall, Michigan, was sentenced to 37 months in federal prison for stealing from her former employer, the Calhoun Conservation District, a local special unit of government with a mission to maintain and improve land, water, and wildlife. Bronson also was ordered to pay $573,159.20 in restitution. Following release from prison, Bronson will serve three years on supervised release. U.S. District Judge Paul L. Maloney imposed the sentence.
Bronson was indicted by a grand jury in February 2018 and charged with five counts of theft concerning a program receiving federal funds. Bronson pled guilty to committing that offense. Between 2014 and 2017, the Calhoun Conservation District ("CCD") received more than $466,000 in federal funds. During that same period, Bronson embezzled $573,159 from the CCD while employed as its Executive Director. She committed the offense by writing more than 400 unauthorized checks to herself and by using CCD credit cards for personal expenses. Bronson attempted to hide her offense by altering CCD’s books and records, and creating fake monthly account statements, which she provided to CCD’s Board of Directors. Bronson admitted that most of the embezzled funds were spent at a local casino. She faced a maximum of 10 years in prison for the offense, but was sentenced within the range recommended by the federal Sentencing Guidelines.
In announcing the sentence today, U.S. Attorney Birge remarked, "Bronson stole not only from her loyal employer, but from the Calhoun County community and taxpayers. As a result of her selfish breach of trust, CCD has struggled to pay its bills and fulfill its important mission for future generations. Combatting financial fraud such as this serious embezzlement—particularly when it involves taxpayer money and vulnerable victims—remains a priority of federal law enforcement."
This case was investigated by the U.S. Environmental Protection Agency Office of Inspector General, the U.S. Fish and Wildlife Service Office of Inspector General, and the Michigan State Police, with computer forensic examination assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher M. O’Connor prosecuted the case.
END
Former Auburn, Georgia police officer sentenced for extortion and robberyRead the Press Release
ATLANTA - Charles Hubbard, a former police officer with the Auburn, Georgia Police Department, has been sentenced to federal prison for his role relating to conspiracies to commit extortion, traffic drugs, and commit robbery. Co-defendants, Shane J. Mattadeen, Wilfred Rivera, Michael L. Henley, Jr., Shaeib H. Morgan, Clem C. Williamson, and Martin Rosendary, were also charged in the scheme. “Instead of enforcing the laws he swore to uphold, Hubbard abused his positon as a law enforcement officer by stealing from drug traffickers for his own financial gain,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for our law enforcement partners who worked tirelessly to bring Hubbard and his co-conspirators to justice.” “The overwhelming majority of police officers perform their duties with honor and professionalism,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “This defendant abused his position of trust by robbing drug dealers and now he must spend well-deserved time in prison for his criminal acts. This case would not have been possible without the dedicated cooperation between HIDTA, DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office.” “The public places trust in law enforcement officials and expects for officers to protect and serve them,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “When an officer violates his oath, this trust is eroded. The defendant in this case unfortunately does not fairly reflect the honest and hardworking men and women of law enforcement who put their lives on the line daily to protect its citizens. This case is a reminder that no officer is above the law. It is also a great example of what can be achieved when DEA works hand-in-hand with its law enforcement counterparts and the U.S. Attorney’s Office.” According to U. S. Attorney Pak, the indictment, and other information presented in court: From 2009 until 2016, Hubbard partnered with at least six other people to identify, extort and rob drug dealers. After a several months’ long investigation, the planning for their latest exploit started on March 30, 2016, when a confidential source approached co-defendant Morgan with a plan to steal money from purported drug dealers who were going to give the confidential source $60,000 for a kilogram of heroin. The confidential source proposed that Morgan elicit Hubbard’s help, a sworn police officer with the Auburn, Georgia, Police Department, to conduct a fake traffic stop of the source and seize the money for the participants to split. That same day, Morgan presented the plan to Rosendary who, in turn, presented it to Hubbard. Hubbard agreed to participate in the robbery and extortion plan. On April 4, 2016, DEA agents gave the confidential source $40,000. The source drove to an apartment complex where Hubbard, wearing a tactical police vest and police badge, approached the source and took the money. Hubbard, Rosendary, and Morgan met briefly, divided the money, and departed. DEA agents then arrested all three, but not before Rosendary led the agents on a high-speed chase which ended after Rosendary lost control of his vehicle. Morgan, who was the passenger in the vehicle, fled on foot and was tracked down by a canine. When the dog found him, Morgan had $10,000 in his pants and another $10,000 nearby. Hubbard was found with $20,000 in his vehicle. Charles Hubbard, 54, of Loganville, Georgia was sentenced to nine years in prison to be followed by three years of supervised release on July 30, 2018. Hubbard pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 17, 2017. The other defendants pleaded guilty as follows: ●Martin Rosendary, 47, of Atlanta, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right, conspiracy to possess cocaine with the intent to distribute, and conspiracy to commit robbery by force on September 2, 2016. Rosendary is scheduled to be sentenced on August 15, 2018. ●Shane J. Mattadeen, 41, of Lilburn, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on July 10, 2018. Mattadeen was sentenced to eight years in prison to be followed by five years of supervised release on February 12, 2018. ●Wilfred Rivera, 38, of Sugar Hill, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on March 5, 2018. Rivera was sentenced to seven years, eight months in prison to be followed by three years of supervised release on June 4, 2018. ●Michael L. Henley, Jr., 32, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit robbery by force on February 26, 2018. Henley was sentenced to six years, three months in prison to be followed by three years of supervised release on June 7, 2018. ●Shaeib H. Morgan, 42, of Stone Mountain, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and distribution of heroin on August 18, 2016. Morgan was sentenced to three years, 10 months in prison to be followed by three years of supervised release on May 28, 2018. ●Clem C. Williamson, 43, of Lawrenceville, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 29, 2017. Williamson was sentenced to one year, six months in prison to be followed by three years of supervised release on April 24, 2018. This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area Program, and the Drug Enforcement Administration, with assistance from the Georgia State Patrol and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Special Assistant U.S. Attorney Tyler A. Mann prosecuted the case. For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.Foley Man Sentenced on Drug and Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Daren Lewis Doffee, 36, of Foley, Alabama, was sentenced on July 27, 2018, to 70 months imprisonment for possession with intent to distribute methamphetamine and using, carrying or possessing a firearm in furtherance of or in relation to a drug trafficking felony. Court documents show that Doffee was the driver of a vehicle stopped by Foley police for a traffic violation on County Road 12. Doffee told the officer that he had a gun in the vehicle, and the officer found a loaded .9mm pistol with two extra magazines in the center console. In the investigation that followed, the officers found methamphetamine, a scale, notes which appeared to represent records of prior drugs sales, and $1,810 in cash. Doffee was indicted on the federal charges in November of 2017, and he pled guilty in March of 2018.
United States District Court Judge Kristi K. Dubose sentenced Doffee to 70 months’ imprisonment, consisting of 60 months on the gun charge, with an additional 10 months on the drug charge, to run consecutively. When Doffee is released from imprisonment, he will serve six years of supervised release, during which he will undergo drug and alcohol abuse treatment. Doffee was also ordered to pay $200 in mandatory special assessments, but no fine was imposed.
The case was investigated by the Foley Police Department, the Daphne Police Department, and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
Five Sentenced in Federal Court for Role in Payment-Processing SchemeRead the Press Release
SALT LAKE CITY – Five individuals, who conspired to operate a payment-processing scheme for proceeds received by telemarketing call centers and other activities associated with fraudulent telemarketing programs, have been sentenced.
The merchant processing fraud supported telemarketing call centers throughout the country, including a large operation in Phoenix, Arizona. Several fraudulent products were sold through the call centers, including information guaranteeing government grants, business opportunities, and “Amazon rooms and accompanying advertising.”
Chad Gettel, age 43, of Salt Lake City, has been sentenced to seven years in federal prison for the scheme. The sentence will run concurrent to a sentence he received in the CC Brown case. According to federal prosecutors, the payment-processing scheme started while Gettel was on release in the CC Brown case. Gettel has been ordered to pay $558,837.00 in restitution.
Jamie White, age 41, of St. George, and Peter Ian Seldin, age 51, of Miami, Florida, will each serve 36 months in federal prison for their role in the fraud scheme. William B. Rogers, age 39, of Salt Lake City, will serve 12 months in prison. White, Seldin, and Rogers were ordered to pay $32,500 in restitution. Parker Crow, age 26, of St. George, was sentenced to five years of probation and will pay $15,000 in restitution.
To set up the merchant processing accounts, the co-conspirators contacted individuals and convincing them to open Limited Liability Companies (“LLCs”) and bank accounts in those company names in order to obtain the merchant accounts that were used to process the funds from the telemarketing rooms. These individuals are known as nominees because they mask the true nature of the operation that Gettel, White, Seldin and the others conducted on behalf of the partner fraudulent telemarketing operations.
The nominees were told that their business provided merchant processing services to smaller businesses who could not obtain their own merchant accounts. They were never informed that telemarketing was involved nor were they aware that the telemarketing sales were fraudulent.
In furtherance of the scheme, Gettel, Seldin, White and others created the LLCs and fraudulently set up merchant bank accounts through which the telemarketing fraud victims’ payments were processed. In executing the scheme to defraud, and in order to apply for and obtain merchant accounts the defendants created fraudulent documents they called “Creatives.” These documents included fabricated bank statements, profit and loss statements and fabricated and altered invoices. These nominees were unaware of the true purpose, use, and risk of the merchant banking accounts.
The merchant accounts enabled the telemarketers to capture, authorize, and process credit card account transactions; settle credit card transactions pursuant to merchant account agreements; and ultimately receive deposits from settled credit card transactions.
As part of the scheme, Gettel, White, Seldin, Rogers and Crow, along with others, contested charge-backs to these merchant accounts initiated by credit card customers of the telemarketing rooms. Ultimately, banks would freeze merchant accounts and discontinue allowing those accounts to accept credit card payments due to suspicious activity and the large numbers of charge back requests.
The loss to the telemarketing room victims and associated banks exceeded $9 million.
Special agents of the FBI and IRS Criminal Investigation Division investigated the case. The U.S. Attorney’s Office is prosecuting the case.
Federal Inmate Receives 7 Year Sentence for Assaulting a Correctional OfficerRead the Press Release
Montgomery, Alabama. – On Thursday, July 26, 2018, Elvis Mark Hartrick, 42, of Panama City, Florida, received a sentence of 84 months for assaulting a correctional officer with a deadly weapon, announced United States Attorney Louis V. Franklin, Sr. Hartrick pled guilty to the charge in April.
The assault took place in September 2017 while Hartrick was an inmate at Federal Prison Camp (FPC) Montgomery, located on Maxwell Air Force Base. FPC Montgomery staff received information about the location of contraband near a secluded fence line. Upon inspection of the area, staff discovered three packages and they waited to observe the individuals who would retrieve them. Hartrick and another inmate, Marvin Nathaniel Mobley, Jr., 29, of Jacksonville, Florida, arrived at the scene in a work truck. After retrieving the packages and placing them on the back of the truck, Hartick and Mobley got back into the vehicle. The correctional officer, who was unarmed, ordered Hartrick and Mobley to stop. Hartrick, who was driving the vehicle, ignored the command and accelerated the truck directly at the officer who was standing in the middle of the narrow roadway. Realizing that Hartick was not stopping, the officer jumped quickly out of the truck’s path to avoid being struck by the vehicle. The truck was later stopped by additional correctional staff.
The packages contained various items including cell phones, cigarettes, smokeless tobacco, and alcohol. Inmate Mobley received a two month sentence for possession of contraband.
The case was investigated by the Bureau of Prisons. Special Assistant U.S. Attorney Doug Howard prosecuted the case.
Federal Grand Jury Indictment Charging Six Individuals Is UnsealedRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on July 11, 2018, a Federal Grand Jury sitting in Macon, Georgia returned a sealed indictment. That indictment has now been unsealed, revealing charges against six individuals. An indictment is only an allegation of criminal conduct, and all of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
“I want to thank our federal and local law enforcement partners for their hard work bringing this case before the federal grand jury,” said United States Attorney Peeler.
The individuals charged were:
OCTAVIOUS STITT, age 24, of Cairo, Georgia, is charged Conspiracy to Possess with Intent to Distribute Alpha-PVP and N-Ethylpentylone (Count 1), Possession with Intent to Distribute Alpha-PVP (Count 2), and Possession with Intent to Distribute N-Ethylpentylone (Count 3). If convicted, Mr. Stitt faces a maximum sentence of twenty (20) years in prison, a $1,000,000 fine, or both, on each count.
PAUL MCGRIFF, age 50, of Cairo, Georgia, is charged with Conspiracy to Possess with Intent to Distribute Alpha-PVP and N-Ethylpentylone (Count 1) and Attempt to Possess with Intent to Distribute Alpha-PVP (Count 4). If convicted, Mr. McGriff faces a maximum sentence of twenty (20) years in prison, a $1,000,000 fine, or both, on each count.
REGINALD LADERRICK WILLIAMS, age 43, of Cairo, Georgia, is charged with Conspiracy to Possess with Intent to Distribute Alpha-PVP and N-Ethylpentylone (Count 1), and Attempt to Possess with Intent to Distribute Alpha-PVP (Count 4). If convicted, Mr. Williams faces a maximum sentence of twenty (20) years in prison, a $1,000,000 fine, or both, on each count.
SHAKIRA WILLIAMS, age 39, of Cairo, Georgia, is charged with one (1) count of money laundering. If convicted, Ms. Williams faces a maximum sentence of twenty (20) years in prison, a $500,000 fine, or both.
ALIZE MCGEE, age 22, of Cairo, Georgia, is charged with one (1) count of money laundering. If convicted, Ms. McGee faces a maximum sentence of twenty (20) years in prison, a $500,000 fine, or both.
DOMINIQUE COOPER, age 31, of Cairo, Georgia, is charged with one (1) count of money laundering. If convicted, Mr. Cooper faces a maximum sentence of twenty (20) years in prison, a $500,000 fine, or both.
The case was investigated by the Cairo Police Department and the Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Leah E. McEwen.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Federal Court Awards Nearly $3 Million in Damages and Penalties for Medicaid Fraud SchemeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that a federal court awarded a nearly $3 million judgment against Compassionate Home Care Services, Inc., Carol Anders, and Ryan Santiago for their participation in a fraud on the North Carolina Medicaid program in violation of the federal and North Carolina False Claims Acts.
The evidence at trial showed that between 2008 and 2013, Compassionate Home Care Services, Inc. billed the North Carolina Medicaid program $585,082.73 in fraudulent claims, including not only claims for services provided in violation of Medicaid policies, but also claims for services that were never provided at all. Anders ran the company and was responsible for the false billings. Worse, when the government began investigating, Anders and her son, Santiago, falsified hundreds of documents in an effort to conceal the fraud.
The federal and North Carolina False Claims Acts mandate that the government recover three times the damages caused by the fraud, plus civil penalties for every false or fraudulent claim. Applying those provisions and other applicable law, Chief United States District Judge James C. Dever, III awarded the government a judgment of $2,921,248.19.
Before the trial, Chief Judge Dever found that the defendants were liable for their participation in the scheme, concluding that the defendants “knowingly billed for services not rendered, knowingly billed for certain services provided to patients by unlicensed, non-certified aides, and knowingly billed for services provided to patients by close family members.” Chief Judge Dever also found that the defendants “falsified documents to conceal their obligation to repay the government and used false documents to support false claims previously submitted.”
“These defendants,” U.S. Attorney Higdon stated, “defrauded taxpayers of this State and this Country out of more than $500,000. They bilked a Medicaid program that is designed to protect children, the elderly, and the poor.” Mr. Higdon warned that “we will not tolerate providers who seek to fill their coffers with funds allotted to help people in need. We will not allow providers to undermine the solvency of our government programs to satiate their greed. We will continue to use every tool in our arsenal to aggressively pursue health care fraud, and to recover the taxpayer dollars lost to it.”
“When North Carolina’s taxpayers pay into the Medicaid program, they expect that money to be used correctly for people’s health care,” said North Carolina Attorney General Josh Stein. “Instead, these defendants defrauded taxpayers by charging for services that were not provided. My office takes Medicaid fraud seriously, and we will continue to fight against misuse and waste.”
The investigation of this case was conducted by Financial Investigators and sworn agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and Special Agents with the U.S. Department of Health and Human Services, Office of Inspector General. The Robeson County Sheriff’s Department provided substantial assistance in the investigation. The investigation and prosecution of this matter was handled in a partnership between the United States Attorney’s Office of the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Special Deputy Attorney General Stacy Race and Assistant Attorney General Lareena Phillips, both of whom also serve as Special Assistant United States Attorneys, and Assistant United States Attorney Michael Anderson, represented the United States of America and the State of North Carolina in this case.
Elkins man sentenced for manufacturing and using counterfeit moneyRead the Press Release
ELKINS, WEST VIRGINIA – Anthony Francis Silvester, III, of Elkins, West Virginia, was sentenced today to 30 months incarceration for making and possessing counterfeit money, United States Attorney Bill Powell announced.
Silvester pled guilty to one count of “Uttering Counterfeit Obligations and Securities” in May 2017. He admitted to passing a counterfeit bill in August 2016 at a business in Elkins, West Virginia.
Assistant U.S. Attorney Sarah M. Wagner prosecuted the case on behalf of the government. The United States Secret Service, the West Virginia State Police, and the Elkins Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Detroit-Area Restaurant Owner Indicted for Employment Tax FraudRead the Press Release
A federal grand jury sitting in the Eastern District of Michigan returned an indictment today charging a Walled Lake, Michigan restaurant owner with 24 counts of failing to account for and pay over employment taxes and one count of willful failure to file an income tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Johni Semma owned Bayside Sports Bar & Grill (“Bayside”), a restaurant, and The Coliseum, an adult entertainment business. As the owner of Bayside, Semma was allegedly responsible for collecting and paying over Bayside’s employment taxes. The indictment charges that during 2008 to 2015, Bayside accrued employment tax liabilities of more than $1 million and that Semma withheld those taxes from the pay of the restaurant’s employees. Semma then allegedly failed to fully pay over the amounts he withheld to the Internal Revenue Service (IRS).
The indictment further alleges that in 2012, Semma sold The Coliseum for more than $6 million with approximately $3.5 million of the purchase price paid during 2012. Despite receiving considerable income from the sale of The Coliseum and other sources, Semma allegedly did not file a 2012 income tax return.
If convicted, Semma faces a statutory maximum of five years in prison for each count of failure to pay over the employment taxes. He faces a statutory maximum of one year in prison for the one count of willful failure to file his income tax return. In addition, he faces a period of supervised release, restitution, and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Kenneth Vert and Brittney Campbell, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.