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7 September 2018
Haughton man sentenced to 10 years in prison for distribution of methamphetamine obtained in DallasRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a Haughton man was sentenced to 120 months in prison for distribution of methamphetamine, which he obtained in Dallas.
Jason Rich, 47, of Haughton, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to the May 15, 2018 guilty plea, a Louisiana State Police trooper stopped Rich’s vehicle May 3, 2018 near the intersection of Interstate 220 and Louisiana Highway 80. The trooper searched the vehicle and found a semi-automatic handgun, 141.3 grams of methamphetamine, 36.5 grams of the marijuana and three blue and white capsules containing approximately 31.1 grams of methamphetamine. Rich said he knew about the firearm and had purchased 4 ounces of methamphetamine from two different sources in the Dallas area.
The DEA and the DEA task force, which consists of state and local agencies, including the Louisiana State Police and Caddo Parish Sheriff’s Office, investigated the case. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Grand Jury Indicts "Joe Exotic" for Murder-For-HireRead the Press Release
OKLAHOMA CITY – JOSEPH MALDONADO-PASSAGE, also known as Joseph Allen Maldonado, Joseph Allen Schreibvogel, and "Joe Exotic," 55, formerly of Wynnewood, Oklahoma, has been indicted on two counts of hiring a person to commit murder.
On September 5, 2018, a federal grand jury returned an indictment that accuses Maldonado-Passage of hiring an unnamed person in November 2017 to murder "Jane Doe" in Florida. According to the indictment, Maldonado-Passage gave the unnamed person $3,000 to travel from Oklahoma to South Carolina and then to Florida to carry out the murder. He allegedly agreed to pay thousands more after the deed. The indictment alleges Maldonado-Passage caused the person to travel to Dallas to get fake identification for use in the plot. According to the indictment, the person traveled from Oklahoma to South Carolina on November 26, 2017.
In a second count, the indictment alleges that beginning in July 2016, Maldonado-Passage repeatedly asked a different unnamed person to find someone to murder Jane Doe in exchange for money. The second person put Maldonado-Passage in contact with an undercover FBI agent. Maldonado-Passage met with the undercover agent on December 8, 2017, to discuss details of murdering Jane Doe.
Jane Doe did not suffer any physical harm.
The U.S. Marshals Service arrested Maldonado-Passage today in Gulf Breeze, Florida. He will make his initial appearance before a U.S. Magistrate Judge today in the Pensacola Division of the Northern District of Florida, followed by further proceedings in the Western District of Oklahoma.
If Maldonado-Passage is found guilty of murder-for-hire, he could be imprisoned on each count up to ten years. He would also be subject to up to three years of supervised release and a fine of up to $250,000 per count.
This case is the result of an investigation by the U.S. Fish and Wildlife Service Office of Law Enforcement and the FBI, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Amanda Green and Charles W. Brown are prosecuting the case.
The public is reminded that these charges are merely allegations and that Maldonado-Passage is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Gettysburg Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Gettysburg, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 4, 2018, by U.S. District Judge Roberto A. Lange.
Christopher Arpan, age 52, was sentenced to 30 months in federal prison, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Arpan was indicted by a federal grand jury on November 14, 2017. He pled guilty on June 12, 2018.
The conviction stems from an incident that occurred on August 24, 2017. Cheyenne River Sioux Tribe law enforcement was dispatched to a house in Eagle Butte, South Dakota, for a report of an individual bleeding from a head wound. Arpan had assaulted the individual by beating him about his head with a wooden cane; the beating caused serious bodily harm to the individual including 5 wounds to his head that required multiple staples to close.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Arpan was immediately turned over to the custody of the U.S. Marshals Service.
Gary Hirst Sentenced to 8 Years in Prison for Defrauding Tribal Entity and Pension Funds of Tens of Millions of DollarsRead the Press Release
Robert Khuzami, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that GARY HIRST was sentenced today by U.S. District Judge Ronnie Abrams to 8 years imprisonment for defrauding a Native American tribal entity and numerous pension fund investors of tens of millions of dollars in connection with the issuance of bonds by the tribal entity. HIRST pled guilty May 15, 2018, to conspiracy to commit securities fraud, securities fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud before U.S. Magistrate Judge Barbara Moses.
Attorney for the United States Robert Khuzami said: “This complex and brazen securities fraud scheme lined the pockets of Gary Hirst and his co-defendants but left the Native American tribal entity, the Wakpamni Lake Community Corporation $60 million in debt. Hirst, who is already in prison for a separate securities scheme prosecuted by this Office, now faces additional time behind bars for this criminal conspiracy.”
According to the allegations contained in the Indictment filed against HIRST and statements made in related court filings and proceedings, including the trial of co-defendants John Galanis, Devon Archer, and Bevan Cooney:
From March 2014 through April 2016, HIRST, Jason Galanis, John Galanis, Devon Archer, Bevan Cooney, Michelle Morton, and Hugh Dunkerley, engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by HIRST, Morton, and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
The WLCC was convinced to issue the Tribal Bonds through false and fraudulent representations by John Galanis. Simultaneously, Jason Galanis, with the backing of Archer and Cooney, worked to acquire Hughes Capital Management (“Hughes”), a registered investment adviser. HIRST and Morton were installed as Hughes’s chief investment officer and chief executive officer, respectively. Within weeks of taking control of Hughes, HIRST and Morton placed the entire $28 million first series of Tribal Bonds with Hughes clients but failed to disclose material facts about the Tribal Bonds, including that the Tribal Bonds fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients. Indeed, HIRST himself signed the trade tickets to purchase the bonds after other employees of Hughes refused to do so. In addition, Hughes’s clients were not told about substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
The defendants and their co-conspirators then misappropriated the proceeds of the first Tribal Bond issuance. Specifically, although the Tribal Bonds were supposed to be invested in an annuity, the proceeds were deposited into an account opened by HIRST and over which both HIRST and Dunkerley had signatory authority. HIRST and Dunkerley, at the direction of Jason Galanis, then transferred significant amounts of the bond proceeds from that account to support the defendants’ business and personal interests. Jason Galanis, for example, used a portion of the proceeds of the first Tribal Bond issuance to finance the purchase of a $10 million luxury apartment in Tribeca. John Galanis, similarly, secretly received $2.35 million in proceeds of the first bond issuance, which he spent on a variety of personal expenses and luxury items, including cars, jewelry, and hotel expenses.
In addition, after John Galanis induced the WLCC to issue a second round of Tribal Bonds, Archer and Cooney used $20 million of bond proceeds from the first issuance to buy the entirety of the second issuance. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase. The bonds purchased by Archer and Cooney were then used to meet net capital requirements at two broker dealers in which Archer and Cooney had interests. Cooney also obtained a $1.2 million loan based on his purported ownership of the bonds, which he subsequently failed to repay. In addition, millions of dollars in bond proceeds from the bond issuances were used to finance the acquisition of companies that the defendants and their co-conspirators acquired as part of a strategy to build a financial conglomerate.
In the spring of 2015, John Galanis induced the WLCC to issue an additional $16 million worth of Tribal Bonds. Simultaneously, Jason Galanis, Archer, and others – in consultation with HIRST – purchased a second investment adviser, Atlantic Asset Management (“Atlantic”), and installed Morton as the chief executive officer. Within days of obtaining control of Atlantic, Morton placed the entirety of the $16 million Tribal Bond with an Atlantic client, without the client’s consent and without disclosing the fact that the Tribal Bonds were outside the client’s investment parameters and that numerous conflicts of interest existed. The proceeds of the $16 million issuance were again not invested in an annuity as promised, but instead were diverted, among other things, to finance the defendants’ acquisition of another company in furtherance of their plan to build a financial conglomerate and to make payments to one of the broker dealers in which Archer and Cooney had interests. HIRST also directed that significant portions of the bond proceeds be funneled through other secret accounts and used to purchase significant portions of a technology stock’s IPO – which was itself secretly controlled by several of the defendants.
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In addition to the prison term, GARY HIRST, 66, was sentenced to 3 years of supervised release. HIRST was also ordered to forfeit $1.3 million and to make restitution in the amount of $43,785,176.
Jason Galanis, who pled guilty to conspiracy to commit securities fraud, securities fraud, and investment adviser fraud, was sentenced to a term of 173 months in prison on August 11, 2017. Michelle Morton, who pled guilty to conspiracy to commit securities fraud and investment adviser fraud, is scheduled to be sentenced on November 30, 2018. John Galanis, who was convicted at trial of conspiracy to commit securities fraud and securities fraud, is scheduled to be sentenced on November 2, 2018. Devon Archer and Bevan Cooney, who were convicted at trial of conspiracy to commit securities fraud and securities fraud, are scheduled to be sentenced on November 9, 2018. Hugh Dunkerley, who pled guilty to conspiracy to commit securities fraud, two counts of securities fraud, bankruptcy fraud, and falsification of records with the intent to obstruct a government investigation, is scheduled to be sentenced on March 8, 2019.
This conviction represents HIRST’s second conviction in this District in a little more than a year. On August 3, 2017, following his conviction at trial, HIRST was sentenced by U.S. District Judge P. Kevin Castel to 78 months in prison in connection with his participation in a scheme to manipulate the market for Gerova Financial Group, Ltd., a publicly traded company listed on the New York Stock Exchange, and to defraud the shareholders of that company.
Mr. Khuzami praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Brendan F. Quigley, and Negar Tekeei are in charge of the prosecution.
Fugitive Lawyer Involved in Largest Social Security Fraud Scheme Sentenced to 15 Years in Prison for His Escape and Related CrimesRead the Press Release
A former fugitive and social security disability lawyer was sentenced to 15 years in prison today for his role in retaliating against an informant and fleeing from the United States. The sentence is to run consecutive to the 12 years in prison previously imposed for his role in the underlying scheme to defraud the Social Security Administration (SSA) of more than $550 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (IRS-CI) Cincinnati Ohio Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 58, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Conn to pay $72,574,609 in restitution. On June 4, Conn was convicted of one count of conspiracy to defraud the United States, one count of conspiracy to escape, and one count of conspiracy to retaliate against an informant. Judge Reeves further ordered that the 15-year term of imprisonment imposed run consecutive to the 12-year term of imprisonment the Court imposed on July 12, 2017, for convictions of paying illegal gratuities to a Social Security Administrative Law Judge and theft of government money. In total, for his role in the largest fraud scheme in the history of the Social Security program, Conn was sentenced to serve 27 years in prison.
“After orchestrating a massive $550 million social security fraud, Eric Conn tried to escape justice by fleeing to Honduras,” said Assistant Attorney General Benczkowski. “But thanks to the tremendous work of U.S. law enforcement, not only was Conn’s fraud discovered and prosecuted, he was brought back to the United States to answer for his crimes. This case should serve as a strong warning to those who think they can steal from our taxpayer funded programs and escape liability: our law enforcement partners will find you and you will be brought to justice.”
“Mr. Conn directed a scheme that defrauded millions of dollars from Social Security and affected many people in Kentucky and West Virginia,” said SSA-OIG Special Agent in Charge McGill. “Despite his best efforts to escape justice for his actions, Mr. Conn has finally been held accountable with today’s significant sentencing. The SSA-OIG thanks all of our law enforcement partners for their assistance during this investigation, and we remain committed to pursuing Social Security fraud and improving disability program integrity.”
“Conn’s sentencing brings closure to the promise the FBI made that we would not rest until Conn was held accountable for the lives he devastated and the trust he betrayed,” said FBI Special Agent in Charge Hess.
“Theft from American taxpayers in any capacity is a serious crime,” said IRS-CI Special Agent in Charge Ryan L. Korner. “Eric Conn’s actions were particularly egregious, as he victimized those who are most vulnerable and then made a cowardly attempt to escape punishment. Thanks to the coordinated efforts of our law enforcement partners and their commitment to seeking justice for all Americans, Conn was made to face the consequences of his actions.”
“When individuals are approved for certain Social Security and SSI benefits, they become entitled to Medicare or Medicaid,” said HHS-OIG Special Agent in Charge Jackson. “As a result, a large portion of Conn’s fraudulent scheme drained federal health care plans and cheated needy patients out of the limited dollars available for these vital taxpayer-funded programs.”
According to admissions made as part of Conn’s June 2018 plea, from October 2004 to December 2017, Conn participated in a scheme with former SSA administrative law judge David Black Daugherty, multiple doctors, including clinical psychologist Alfred Bradley Adkins, and others to submit thousands of falsified medical documents to the SSA to fraudulently obtain disability benefits totaling more than $550 million for thousands of individuals. According to the admissions, upon a former SSA employee discovering and providing information about the scheme to federal agents, Conn and former SSA administrative law judge Charlie Paul Andrus conspired and acted to have the former SSA employee terminated in an effort to discredit the employee. Finally, Conn admitted that after pleading guilty in March 2017, and prior to being sentenced on June 2, 2017, he fled the country with the help of Curtis Lee Wyatt by severing the electronic monitoring device from his ankle and fleeing across the Mexican border.
Conn was originally charged in April 2016, along with Daugherty and Adkins, in an 18-count indictment with conspiracy to commit mail and wire fraud and other related offenses in connection with the disability fraud scheme. Conn subsequently pleaded guilty on March 24, 2017, to a two-count information charging him with theft of government money and paying illegal gratuities, and, after fleeing, he was sentenced in absentia on July 14, 2017 to 12 years in prison on those charges. After his flight from the United States, Conn was charged, along with Wyatt, in September 2017, in a seven-count indictment with conspiracy to escape, escape and other related offenses. On Dec. 5, 2017, Conn was returned to the United States from Honduras after being apprehended by Honduran authorities.
Andrus pleaded guilty in June 2016 to a one-count information charging him with conspiracy to retaliate against an informant, and was sentenced Aug. 7, 2017 to six months in prison. Daugherty pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on Aug. 25, 2017, to four years in prison. Adkins was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements, and was sentenced on Sept. 22, 2017, to 25 years in prison. Wyatt pleaded guilty in March 2018, and, on June 29, 2018 was sentenced to seven months in prison.
The case was investigated by the SSA-OIG, FBI, IRS-CI and HHS-OIG. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case, with previous co-counsel including Assistant U.S. Attorneys Elizabeth G. Wright of the District of Maryland and Trey Alford of the Western District of Missouri as well as Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Four Walton County Residents Sentenced in Continued Dismantling of Monroe Drug and Gun ConspiracyRead the Press Release
ATHENS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that four defendants were sentenced on September 5, 2018, by the Honorable C. Ashley Royal in Athens for their roles in an illegal drug and firearms distribution conspiracy.
In approximately May 2015, Monroe Police Department (MPD) officers began investigating drugs and gang activities in and around Davis Street and Lacy Street in Monroe, Georgia. Members of the Monroe Police Department Drug Unit partnered with the Federal Bureau of Investigation to tackle the increased activity by Gangster Disciples gang members in the area. Ultimately, numerous co-conspirators were identified and indicted in the Middle District of Georgia on a variety of drug and firearm distribution charges.
The following four (4) defendants were sentenced on September 5, 2018:
• Lachievious Smith a/k/a “Chief,” “Cheese,” “Chiev,” age 30, of Monroe , Georgia
Guilty plea entered: June 14, 2018
Offense: Distribution of Crack Cocaine
Sentence: 200 months imprisonment
• Chauncey Brantley a/k/a “Murder,” age 23, of Monroe, Georgia
Guilty plea entered: June 13, 2018
Offenses: Distribution of Methamphetamine;
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Sentence: 120 months imprisonment
• Kendarious Gaither a/k/a “KD,” age 22, of Monroe, Georgia
Guilty plea entered: June 1, 2018
Offense: Possession of a Firearm in Relation to a Drug Trafficking Crime
Sentence: 60 months imprisonment
• Emmanuel Smith, a/k/a “Man-Man,” age 32, of Monroe, Georgia
Guilty plea entered: June 1, 2018
Offense: Distribution of Crack Cocaine
Sentence: 30 months imprisonment
The following defendants were previously sentenced:
• Anthony Smith, a/k/a “Ant,” “Unc,” of Monroe, Georgia
Guilty plea entered: January 3, 2018
Offense: Distribution of Crack Cocaine
Sentence date: April 17, 2018
Sentence: 34 months imprisonment
• Brittany Porter, of Monroe, Georgia
Guilty plea entered: January 3, 2018
Offense: Distribution of Crack Cocaine
Sentence date: April 17, 2018
Sentence: 10 months imprisonment
• Krysty Davis-Smith, of Monroe, Georgia
Guilty plea entered: November 16, 2017
Offense: Distribution of Crack Cocaine
Sentence date: February 4, 2018
Sentence: 3 years of probation
Another co-defendant, James Anthony Johnson, entered a guilty plea on June 4, 2018, to Distribution of Crack Cocaine Mr. Johnson’s sentencing is scheduled for October 3, 2018.
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.
“Organizations that attempt to control areas of our community so they can deal drugs and sell guns with no regard for the safety of others will not be tolerated,” said United States Attorney Charles E. Peeler. “I want to thank the FBI and the Monroe Police Department for their hard work in this investigation.”
This case was investigated by the FBI and the Monroe Police Department. Assistant U.S. Attorney Tamara Jarrett handled the prosecution of the defendants.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or [email protected].
Four Chinese State-Owned Industrial Companies Arraigned in Economic Espionage ConspiracyRead the Press Release
OAKLAND – Four state-owned Chinese companies were arraigned on a Third Superseding Indictment charging each of the companies and two of their officers with conspiring to commit economic espionage and related crimes, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The companies were arraigned yesterday before U.S. Magistrate Judge Donna M. Ryu on charges that the defendants conspired and attempted to engage in economic espionage by seeking to acquire misappropriated trade secrets for the production technology for chloride-route titanium dioxide (TiO2) from E.I. du Pont de Nemours & Company (DuPont).
According to the indictment that was filed January 5, 2016, between 1998 and 2011, Pangang Group Company, Ltd. (also known as Panzhihua Iron and Steel (Group) Co., Ltd.) allegedly conspired with Chinese nationals Hou Shengdong and Dong Yingjie as well as three of the company’s subsidiaries and others to acquire stolen or misappropriated trade secrets. The defendant subsidiaries companies are:
- Pangang Group Steel Vanadium & Titanium Company, Ltd.;
- Pangang Group Titanium Industry Company Ltd.; and
- Pangang Group International Economic & Trading Company.
The trade secrets relate to TiO2 technology from DuPont. DuPont had developed the technology and controlled a significant amount of the world’s TiO2 sales. The defendants are alleged to have obtained confidential trade secret information including photographs related to TiO2 plant technologies and facilities. Further, the defendants are alleged to have paid an Oakland company at least $27,000,000 between 2006 and 2011 for assistance with TiO2 technology, including obtaining DuPont trade secrets. The defendants also allegedly attempted, between 2008 and 2011, to commit economic espionage related to DuPont’s TiO2 processes.
In sum, the indictment charges the four companies and two officers with one count of conspiracy to commit economic espionage, in violation of 18 U.S.C. § 1831(a)(5), and one count of attempted economic espionage, in violation of 18 U.S.C. §§ 1831(a)(1), (2), (3), and (4). The indictment also seeks forfeiture of any property used in the offenses or derived from the commission of the offenses.
The four companies appeared before Magistrate Judge Ryu through an attorney and pleaded not guilty to all charges.
Initial appearances are scheduled for October 2, 2018, in Oakland, before the Honorable Jeffrey S. White, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant company faces a maximum sentence five years of probation and a fine of $10,000,000 for each count of conviction. Hou and Dong face 15 years of imprisonment, a $500,000 fine, and a maximum of 3 years of supervised release for each count in the indictment. Restitution, if appropriate, may also be ordered. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s Office. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former World Boxing Champion Sentenced in Manhattan Federal Court to 10 Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that AVTANDIL KHURTSIDZE, a former world boxing champion and the chief enforcer for Razhden Shulaya, was sentenced to 10 years in prison by United States District Judge Katherine B. Forrest, following KHURTSIDZE’s conviction in June on charges of racketeering and fraud conspiracy.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Avtandil Khurtsidze, a former middleweight boxing champion and heavyweight enforcer for the Shulaya Enterprise – a massive ‘elite’ criminal enterprise of the former Soviet Union – was convicted of intimidating and punishing associates of the organization. Thanks to our dedicated law enforcement partners around the globe, Khurtzide’s reign of extortion and violence has been halted, as he is now sentenced to 10 years in federal prison.”
According to the Indictments filed in Manhattan federal court, previous court filings, and statements made at public court proceedings:
The Shulaya Enterprise was an organized criminal group operating under the direction and protection of Razhden Shulaya, a/k/a “Brother,” a/k/a “Roma,” a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals. As a vor, Shulaya had substantial influence in the criminal underworld and offered assistance to and protection of the members and associates of the Shulaya Enterprise. Those members and associates, and Shulaya himself, engaged in widespread criminal activities, including acts of violence, extortion, the operation of illegal gambling businesses, fraud on various casinos, identity theft, credit card frauds, trafficking in large quantities of stolen goods, money laundering through a fraudulently established vodka import-export company, payment of bribes to local law enforcement officers, and the operation of a Brooklyn-based brothel.
The Shulaya Enterprise operated through groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks. While many of these crews were based in New York City, the Shulaya Enterprise had operations in various locations throughout the United States (including in New Jersey, Pennsylvania, Florida, and Nevada) and abroad. Most members and associates of the Shulaya Enterprise were born in the former Soviet Union and many maintained substantial ties to Georgia, Ukraine, and the Russian Federation, including regular travel to those countries, communication with associates in those countries, and the transfer of criminal proceeds to individuals in those countries.
AVTANDIL KHURTSIDZE, formerly a middleweight boxing champion, acted as Shulaya’s chief enforcer and, as such, engaged in multiple acts of extortion and violence. KHURTSIDZE was captured on video twice assaulting others in service of the Shulaya Enterprise, participated in recorded acts of extortion of gambling debts, and planned additional acts of violence with Shulaya targeting associates of the Shulaya Enterprise whom KHURTSIDZE and Shulaya perceived as having disrespected Shulaya’s status as a vor.
KHURTSIDZE also participated in a scheme to defraud casinos by targeting particular models of electronic slot machines using a complicated algorithm designed to predict the behavior of those machines. Shulaya and other members of the Enterprise obtained the technology used to commit that fraud through violence, including through the 2014 kidnapping of a software engineer in Las Vegas. KHURTSIDZE, working at Shulaya’s direction, then assisted in refining that technology by training lower-level members of the Shulaya Enterprise to execute this casino scam using smartphones and software developed by the Shulaya Enterprise.
Following a two-week trial before the Honorable Katherine B. Forrest, KHURTSIDZE was found guilty of one count of racketeering conspiracy and one count of wire fraud conspiracy.
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In addition to the prison term, KHURTSIDZE, 38, of Kutaisi, Republic of Georgia, was sentenced to two years of supervised release
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation and its Eurasian Organized Crime Squad, as well as U.S. Customs and Border Protection, and the New York City Police Department for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams, Andrew Thomas, and Andrew Chan are in charge of the case.
Former Pasadena Police Lieutenant Agrees to Plead Guilty to Illegally Trafficking ‘Off Roster’ Guns and Lying on ATF FormRead the Press Release
LOS ANGELES – A Sierra Madre man who until earlier this year served as a lieutenant in the Pasadena Police Department has agreed to plead guilty to two federal felony offenses related to the illegal sale of more than 100 firearms over the course of three years.
Vasken Kenneth Gourdikian, 48, who resigned from the Pasadena Police Department in March after a 22-year career, has signed a plea agreement that was filed this morning in United States District Court.
Gourdikian agreed to plead guilty to engaging in the business of dealing in firearms without a license, and making a false statement during the purchase of a firearm.
Gourdikian has agreed to appear before United States District Judge Stephen V. Wilson on September 20 to formally enter guilty pleas to the two felony offenses.
From March 2014 through February 2017, Gourdikian sold at least 108 firearms without a license. Gourdikian used his official status as a police officer to purchase firearms that were not available to the general public, and then sold restricted firearms, known as “off roster” firearms, through third-party transfers to members of the public, Gourdkian would often highlight the unique status of “off roster” firearms in order to solicit a buyer’s interest and to generate higher sale prices. “Many of the firearms that defendant sold were “off roster” firearms, that is, firearms that defendant’s non-law enforcement customers could not have purchased directly from a licensed firearms dealer,” according to the plea agreement.
While police officers were not prohibited from selling “off roster” firearms to members of the general public, Gourdikian “made a business of dealing firearms without a license, in part, by abusing exemptions made available to him under California law as a sworn peace officer,” he admitted in the plea agreement.
The false statement offense relates to an ATF “re-certification” form Gourdikian signed in 2014 when he took possession of a handgun. Gourdikian admitted in the plea agreement that he “misrepresented that he was the actual buyer of a firearm when, in fact, and as defendant then well knew, he was purchasing the firearm for another individual.” Gourdikian admitted that he re-sold the gun to another person on the same day he acquired it from the gun dealer.
Gourdikain further admitted that he “capitalized on his peace officer status” that allowed him to circumvent the usual 10-day waiting period and enabled him to purchase more than one handgun in a 30-day period.
“Mr. Gourdikian used his positon as a law enforcement officer to purchase firearms generally not available to the public so he could turn around and illegally sell them for profit,” said United States Attorney Nick Hanna. “His actions clearly violated federal law and introduced unauthorized firearms into the community. By his participating in these illegal acts, Gourdikian compromised public safety and violated the public’s trust.”
“It is ATF’s duty and obligation to conduct criminal investigations whenever presented with credible evidence of violations of federal firearms laws,” said ATF Los Angeles Field Division (LAFD) Special Agent in Charge Bill McMullan. “Through analysis conducted by ATF’s Crime Gun Intelligence Center, it was discovered that one of the firearms sold by Gourdikian was recovered at a crime scene two months after its purchase, increasing the risk to the public and law enforcement personnel. ATF’s mission is to focus our efforts on firearms traffickers and trigger pullers and we will continue to pursue individuals engaged in this type of illegal activity.”
In the plea agreement, the government, in exchange for Gourdikian’s acceptance of responsibility and agreement to forfeit 68 firearms, has agreed to recommend a prison sentence of 30 months. This recommendation, however, will not be binding on Judge Wilson, who could impose a sentence of up to 15 years in prison after Gourdikian pleads guilty to the two charges.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorneys Elisa Fernandez of the Public Corruption and Civil Rights Section and Jennifer Chou of the Violent and Organized Crime Section.
Former Medical Assistant Sentenced for Oxycodone ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Maryland woman was sentenced today to 10 years in prison for her role in leading a conspiracy to distribute oxycodone.
“Ms. Edwards was responsible for supplying large amounts of a dangerous opioids for distribution,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “She abused the trust of the doctors who employed her, and in doing so, became the pipeline that spread poison in the community. The Eastern District will continue to make the prosecution of opioid related crimes a top priority.”
According to court documents, Louise S. Edwards, 38, was previously employed as a medical assistant at doctor’s offices in Arlington and Alexandria. From 2011 through December 2017, Edwards stole blank prescription pads and electronically-generated fraudulent prescriptions using a medical recordkeeping system to which she had access by virtue of her position as an employee. Edwards had others write or fill the fraudulent prescriptions and return the full bottles to her. Edwards then sold the full bottles for further distribution. During the conspiracy, Edwards facilitated the fraudulent filling of at least 353 prescriptions, totaling 42,360 pills of 30 milligram oxycodone.
“Today's sentence serves as a reminder of the responsibility those in the medical profession have in serving the community and a deterrent for anyone thinking about trying to make a buck while fueling the opioid epidemic,” said Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office. “The FBI remains dedicated to working with our partners to stop the flow of illegal opioids into our communities.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Matthew A. Anzaldi and Assistant U.S. Attorney Alexander E. Blanchard prosecuted the case. Former Special Assistant U.S. Attorney Matthew Evans provided assistance investigating the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-155.
Former Insurance Agent Sentenced to Prison for Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Ashburn woman was sentenced today to two years in prison for engaging in a fraud scheme that resulted in an attempted loss of approximately $182,000.
Semyya Cunningham, 41, was convicted by a federal jury on February 1. According to court records and evidence presented at trial, Cunningham was an agent and licensed representative of the Western Reserve Life Assurance Co. of Ohio, a company that issued life and other forms of insurance. In April 2014, Cunningham sold a life insurance policy to her close friend (identified in court records as Victim A). The policy included an accelerated death benefit option that permitted the holder, in the event he or she were ever diagnosed with a terminal illness, of claiming the proceeds before death. In July 2014, Victim A was diagnosed with a terminal illness. Shortly thereafter, Cunningham engaged in a scheme to fraudulently obtain the proceeds of the insurance policy for herself. Cunningham changed all of the contact information on the policy to her information, changed the beneficiaries on the policy from Victim A’s family members to friends of hers, and submitted a claim for the accelerated death benefit without Victim A’s knowledge or consent. Western Reserve paid the claim, and because the contact info had been changed to Cunningham’s information, the check was mailed to Cunningham’s residence. Cunningham then deposited the money into her own account, and then transferred the bulk of the money through several accounts in an apparent attempt to prevent the transaction from being reversed.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Matthew Burke and Grace L. Hill prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-177.
Former Golf Professional Pleads Guilty to Tax FraudRead the Press Release
BOSTON – A former golf professional, who worked at two courses owned by the City of Springfield, pleaded guilty today in federal court in Springfield to tax fraud.
Ryan McDowell, 32, of Springfield, pleaded guilty to six counts of tax fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 6, 2018.
Between 2011 and 2016, McDowell worked as an Assistant Golf Professional for a golf management company that contracted with the City of Springfield to manage its two municipal golf courses, Franconia and Veterans Memorial Golf Courses. During that time period, McDowell skimmed approximately $101,050 from golf revenues belonging to the City and then filed false tax returns each year that intentionally omitted the stolen money. McDowell’s filing of the false tax returns resulted in a federal tax loss of $34,236.
Each of the tax fraud charges provides for a sentence of no greater than three years in prison, up to three years of supervised release, and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division, made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Former Chief Executive Officer of BioCube, Inc. Sentenced to Three Years in Prison for Securities FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Boris Rubizhevsky, the former Chief Executive Officer (“CEO”) of BioCube, Inc. (“BioCube”), was sentenced by Judge Roslynn R. Mauskopf to 36 months’ imprisonment for conspiracy to commit securities fraud. Rubizhevsky’s conviction arose out of his participation in a scheme to pump and dump BioCube’s stock, which traded under the ticker symbol BICB. The defendant and his co-conspirators planned to acquire BioCube stock at a low price, artificially inflate its price through manipulative and deceptive means, and then sell it at a higher price—all to the detriment of BioCube’s other stockholders. Rubizhevsky was arrested in April 2017 and pleaded guilty in January 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the sentence.
“With today’s sentence, Boris Rubizhevsky has been held responsible for abusing his former position as CEO of BioCube to help devise a pump and dump of the company’s stock designed to defraud BioCube’s own stockholders,” stated United States Attorney Donoghue. “This Office is committed to protecting the investing public and the integrity of the financial market from fraudulent schemes.” Mr. Donoghue also expressed his thanks to the United States Securities and Exchange Commission (“SEC”), New York Regional Office, for its assistance in the case.
“Rubizhevsky defaced his former official title as CEO when he aimed to defraud those who invested their money and trust in Biocube, Inc.,” stated FBI Assistant Director-in-Charge Sweeney. “Fraudulent conspiracies and schemes are not a route to success – but a gateway to prison, as manifested by today’s sentence. Still, the work of the FBI and our law enforcement partners does not stop here, as we will be relentless in investigating those who deviously plot against the securities industry.”
“The stock market is a crucial component to our economy and investors must have faith in the CEO’s of those publicly traded companies,” stated IRS-CI Special Agent-in-Charge Robnett. “The special agents of IRS-CI are proud to lend their financial expertise with investigations that protect the integrity of our financial systems.”
According to court documents, Rubizhevsky engaged in a scheme to defraud BioCube’s investors and potential investors by concealing a co-conspirator’s beneficial ownership and control of BioCube shares, so that the co-conspirator could exercise control over the price and trading volume of BioCube’s stock. Rubizhevsky’s co-conspirator had a history of being sanctioned by regulatory authorities and being banned from the securities industry by the SEC. The plans to pump and dump BioCube’s stock after the co-conspirator gained control of the stock were captured in conversations between Rubizhevsky and the co-conspirator on a wiretap recording. The scheme was thwarted by law enforcement before investors could suffer significant losses.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn L. Cooley, Tyler Smith, and Kaitlin T. Farrell are in charge of the prosecution.
The Defendant:
BORIS RUBIZHEVSKY
Age: 67
Closter, New JerseyE.D.N.Y. Docket No. 17-CR-339
Florida Man Pleads Guilty to $2 Million Insider Trading Scheme Involving Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ROBERTO RODRIGUEZ pled guilty today before United States Magistrate Judge Henry B. Pitman to conspiracy to commit securities fraud and fraud in connection with a tender offer for his role in an insider trading scheme involving material nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. In August 2017, RODRIGUEZ, Michael Siva, Rodolfo Sablon, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three insider trading schemes, all stemming from securities trades based on information misappropriated by Rivas. Rivas and an additional participant, James Moodhe, had previously pled guilty and are cooperating with the Government in this investigation. Since the unsealing of the Indictment, Sablon, Zoquier, and Rogiers, in addition to RODRIGUEZ, have pled guilty and will be sentenced by U.S. District Judge Alison J. Nathan.[1]
U.S. Attorney Geoffrey S. Berman said: “As Roberto Rodriguez admitted today, he traded on confidential corporate information stolen by his longtime friend Daniel Rivas, reaping millions of dollars in illegal profits. Further, Rodriguez and another conspirator, Rodolfo Sablon, planned to use these illicit proceeds as seed money to start their own investment fund, intending to give an ownership stake to Rivas. Our Office is committed to identifying and prosecuting insider trading networks that undermine our nation’s securities markets.”
According to the allegations contained in the Indictment filed against RODRIGUEZ and his co-conspirators, and statements made in related court filings and proceedings:
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition (“M&A”) transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rodriguez Tipping Chain
RODRIGUEZ was a member of the second of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to RODRIGUEZ, a childhood friend of Rivas with whom Rivas had maintained a close relationship as adults, and Sablon.
Since 2014, RODRIGUEZ lived and worked in Miami, Florida, with Sablon, with whom he was also friends. In 2015, RODRIGUEZ introduced Rivas to Sablon. Rivas and Sablon then communicated with each other directly and developed an independent relationship.
In the fall of 2015, Rivas disclosed to RODRIGUEZ that Rivas had access to Inside Information by virtue of his position as a corporate insider at an Investment Bank. At RODRIGUEZ’s request, Rivas also agreed to share Inside Information with Sablon. While Rivas had originally agreed to divulge Inside Information to RODRIGUEZ because of their history of friendship, Rivas also learned that RODRIGUEZ and Sablon intended to start an investment fund with the proceeds of the insider trading scheme. Rivas understood that in exchange for the Inside Information Rivas was providing to RODRIGUEZ and Sablon, Rivas would be invited to join the investment fund as a partner once it was successfully launched.
At first, Rivas communicated with RODRIGUEZ and Sablon primarily via phone and text message. As the scheme progressed, however, RODRIGUEZ and Sablon increased their efforts to hide their illegal activity. On several occasions, Rivas met personally with RODRIGUEZ and/or Sablon in Miami in order to provide them with Inside Information. Rivas also provided RODRIGUEZ and Sablon with Inside Information using an encrypted mobile messaging application (the “Messaging App”), which allows users to set a timer to messages to irretrievably “self-destruct.”
In order to maximize the illicit profits that could be earned using Rivas’s Inside Information, RODRIGUEZ and Sablon, in consultation with Rivas, initiated an aggressive strategy of purchasing short-term, out-of-the money call options. In total, from 2015 through April 2017, RODRIGUEZ and Sablon earned more than $2 million in illicit profits through insider trading in more than two dozen securities based on Inside Information divulged by Rivas.
* * *
RODRIGUEZ, 33, of Miami, Florida, pled guilty to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer (Count 21), which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. RODRIGUEZ will be sentenced before Judge Nathan.
The allegations contained in the Indictment as to Michael Siva, the sole defendant who had not pleaded guilty, are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
[1] As for the defendant who has not pled guilty (Michael Siva), the charges described herein constitute only allegations, and Siva is presumed innocent unless and until proven guilty.
Florida Escort Service Owner Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
A Miami escort service owner was sentenced today to 24 months in prison for filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to court documents, Dennis Zarudny was the director and 100% shareholder of Denzar Inc., which did business as “Elite Miami Escorts” and “Elite Escort Service” in the Miami area. According to Denzar’s internet website, the company was a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.” Zarudny previously pleaded guilty in April 2018 to filing a false individual income tax return for 2012 that underreported his total income from his escort business.
For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business income. Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card. Zarudny reported income from credit card transactions but did not fully report the income he received from customers who paid in cash and check.
In addition to the term of imprisonment imposed, Zarudny was ordered to serve one year of supervised release. The court scheduled a hearing to determine restitution to the IRS on December 7, 2018.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Greenberg commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Joshua Rothstein and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
FBI Director Christopher Wray and September 11th Victim Compensation Fund Special Master Rupa Bhattacharyya Held Public Forum on Benefits for Federal Law Enforcement Officers Who Responded on 9/11 and Now Suffer 9/11-Related IllnessesRead the Press Release
Each year, as the anniversary of the Sept. 11, 2001, terrorist attacks approaches, the country is reminded of the unprecedented losses suffered. As we approach the anniversary and honor the fallen, the Justice Department also honors the survivors, particularly those who are experiencing 9-11 health related illnesses. The September 11th Victim Compensation Fund (VCF) is increasing its efforts to identify those who may be eligible for compensation because they suffer physical health effects as a result of their exposure but are not aware of the VCF, and seeks to award compensation to those who continue to suffer. As part of this outreach effort, FBI Director Christopher Wray and VCF Special Master Rupa Bhattacharyya hosted a public forum for approximately 150 federal law enforcement officers today to provide vital information about federal programs that are available to those who responded to the attacks in New York City, at the Pentagon, and in Shanksville, Pennsylvania, on Sept. 11, 2001.
“Like so many first responders, our agents were fearless in their response on September 11 and in the days and months that followed, exposing themselves to what we now know were toxic conditions,” said FBI Director Wray. “We are here today to spread the word about the VCF and the World Trade Center Health Program – two long-standing programs that provide vital assistance to those who have become sick as a result of their 9/11 exposure.”
“We are extremely grateful to have Director Wray, Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York with us here today to raise awareness of the VCF as a resource for this brave community,” said VCF Special Master Bhattacharyya. “In addition to providing critical relief from financial hardship that results from 9/11 injuries and deaths, the VCF compensates victims – at least to some degree - for their pain and suffering, and can provide some peace of mind, though sadly, for many who fear leaving their families in need.”
After opening comments by the National September 11th Memorial and Museum President Alice Greenwald, Director Wray spoke with the group about the first responders who served their country in its greatest hour of need. “You fought for justice,” he said. “You fought to bring peace to the families who lost their loved ones. You fought to make sure that what happened that day would never -- ever -- happen again. So let us help you now. Let us fight for you. We’re in this together, and we’ll tackle it together, just as we have in the past 17 years.”
Director Wray was followed by retired FBI Supervisory Special Agent Lu Lieber, who talked about becoming sick years after her 9/11 exposure, and failing to connect the two until being invited to an FBI/VCF information sharing event last October. “Prior to Oct. 11, 2017, I was unaware of the World Trade Center Health Program and unaware that I was eligible to file a claim with the VCF,” said Lieber. “I did not connect my symptoms to 911 exposure. I have since registered with the WTC Health Program, and I am certified with six different conditions related to 911 exposure. Even if you don't feel sick, it is crucial to register with the World Trade Center Health Program and the VCF if you are certified with WTC related conditions. These programs are vital, they are available to help you and they may save your life.”
Lt. (Fmr.) Michael O’Connell, retired FDNY but a rookie when he was a first responder, spoke of his 9/11 experience and the illnesses that followed, and he, too, encouraged audience members to sign up for the World Trade Center Health Program, and to register with the VCF. “Those two programs saved my life, and saved my family,” said O’Connell. “They are there for you – go find them.”
The public forum, which included representatives from the World Trade Center Health Program, Department of Justice’s Bureau of Justice Assistance, the FealGood Foundation, 9/11 Health Watch, the FBI Agents Association, and the Federal Law Enforcement Officers Association, featured presentations on both the VCF and the World Trade Center Health Program, followed by a Q&A session with Special Master Bhattacharyya and Lieutenant Commander Brittany Rizek, Medical Benefits Team Lead of the World Trade Center Health Program. The audience was largely federal law enforcement officers who responded on 9/11 to the attacks in New York City, at the Pentagon, and at the Shanksville site.
“It’s critically important that we continue to reach out to individuals who may qualify for medical benefits through the World Trade Center Health Program,” said Lieutenant Commander Brittany Rizek. “We are dedicated to helping all eligible members affected by the September 11th attacks receive expert care.”
The VCF is also participating in the Voices of 9/11 17th Annual Day of Remembrance Information Forum on Monday, Sept. 10, to increase awareness and answer questions regarding the VCF.
As of Aug. 31, the VCF has found 20,874 claimants eligible for compensation. The VCF has made initial award determinations on 19,204 of those claims, and has issued revised awards on 5,011 claims due to an amendment or appeal. The total amount awarded to date is more than $4.28 billion to VCF claimants. In all, the VCF has compensated claims from more than 15,300 responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as almost 3,500 others who lived, worked, or traveled through areas of lower Manhattan and were exposed to debris and toxins generated by the attacks and their aftermath.
For additional information about the VCF and how to file a claim, please visit the VCF’s website at www.vcf.gov. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
District Man Sentenced to Seven Years in Prison for Carjacking of Nun in Northeast WashingtonRead the Press Release
WASHINGTON – Brandon Brown, 20, of Washington, D.C, was sentenced today to seven years in prison on charges stemming from the carjacking of a nun who he accosted at gunpoint in a parking lot in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Brown pled guilty in May 2018, in the Superior Court of the District of Columbia, to charges of carjacking and carrying a pistol without a license. The plea, which was subject to the Court’s approval, called for an agreed-upon sentence in the range of seven and 10 years in prison, to be followed by three years of supervised release. The Honorable Marisa Demeo accepted the plea and sentenced Brown accordingly.
According to a proffer of facts submitted at the plea hearing, on April 9, 2018, at approximately 6:45 p.m., the victim, who was wearing full clerical garb, was walking to a parking lot in the 1300 block of Quincy Street NE to retrieve something from a minivan. As she neared the parking lot, she observed Brown, who had a bandana covering his face.
The victim continued into the parking lot and opened the passenger side door of a white Dodge Caravan belonging to the convent. She turned on the minivan and retrieved a compact disc from the stereo. She then began to walk away from the vehicle as Brown approached her. When he was within a few feet of her, Brown demanded the car keys. The victim did not say anything, but continued to hold onto the keys. At this point, Brown brandished a firearm and pressed it to her left temple and once again demanded the keys. The victim held out the key and Brown took it from her. She then told him: “May God bless you.”
Brown got into the Caravan and drove off. The victim walked into a nearby building, told others what happened, and one individual called 911. Officers with the Metropolitan Police Department (MPD) quickly spotted the Caravan at 21st Street and Maryland Avenue NE. They attempted to stop Brown at 26th Street, but he got out of the minivan and fled.
He was eventually apprehended, and officers recovered a loaded, small gray semi-automatic handgun in the front right pocket of his sweatpants. They also recovered a red bandana. Brown was arrested and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jennifer Kerkhoff and Victim/Witness Advocate James Brennan. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Ellen D’Angelo, who investigated and prosecuted the case.
Dexter Jones Sentenced to Life in Prison and Darrion Jones Sentenced to 25 Years in Drug Trafficking ConspiracyRead the Press Release
Hattiesburg, Miss – Dexter Jones, 42, of Hattiesburg, Mississippi, and Darrion Jones, 33, of Heidelburg, Mississippi, were sentenced yesterday by U.S. District Judge Keith Starrett for their roles in a drug trafficking conspiracy, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration.
Dexter Jones was sentenced to serve life in federal prison for possession with intent to distribute methamphetamine, while Darrion Jones was sentenced to serve 300 months in federal prison for conspiracy to possess with intent to distribute methamphetamine. Dexter Jones was ordered to pay a $25,000 fine and Darrion Jones was ordered to pay a $20,000 fine.
An investigation of Dexter Jones’s drug trafficking activity began in 2015 based on information from a confidential source. The investigation revealed that Dexter Jones, Darrion Jones, and several other individuals were distributing large quantities of methamphetamine in the Hattiesburg and Laurel, Mississippi areas. Also indicted in the drug trafficking conspiracy were Jamie Wheat, John Foster, Mitchell Jones, and John Baxter. Wheat pled guilty and was sentenced to 188 months; John Foster pled guilty and will be sentenced on September 18, 2018; Mitchell Jones pled guilty and will be sentenced on September 27, 2018. Baxter’s case is still pending.
The case was investigated by the Lamar County Sheriff’s Department, Jones County Sheriff’s Department, Forrest County Sheriff’s Department, Mississippi Bureau of Narcotics, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Department of State Contractor Sentenced to 30 Months in Prison for Theft of Government FundsRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Mauricio Andulo Hidalgo, age 43, of Costa Rica, was sentenced to a term of 30 months in prison by the United States District Court in Charleston for stealing from the United States Government.
Hidalgo previously pled guilty to Theft of Government Funds, a violation of 18 U.S.C. § 641. United States District Judge Patrick Michael Duffy, of Charleston, imposed the sentence, which also includes three years of supervised release and mandatory restitution.
Evidence presented at a change of plea hearing established that Hidalgo used his position as President of SafetyPay-Central America to steal over $293,832 of government funds that were supposed to be transferred to a bank account maintained by the Department of State's Global Financial Services Center in Charleston. SafetyPay-Central America had been hired as a subcontractor to handle the processing of visa application fees for the United States Embassy in Costa Rica. As part of the scheme, Hidalgo diverted the funds from a SafetyPay bank account in Costa Rica to another Costa Rican account under his sole control.
The case was investigated by special agent Katherine Kovacek of the Department of State/Office of Inspector General, which is led by Inspector General Steve A. Linick. Assistant United States Attorneys Marshall "Matt" Austin and Nathan Williams both of the Charleston Office prosecuted the case.
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Denham Springs Woman Pleads Guilty to Theft of Disaster Assistance FundsRead the Press Release
U.S. Attorney Brandon J. Fremin, who also serves as the Executive Director of the National Center for Disaster Fraud, announced today that LISA ELIZABETH CORONA, 37, of Denham Springs, Louisiana, pled guilty to theft of $30,644 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 flooding that affected numerous local areas, to include Livingston Parish. As a result of her conviction, CORONA faces a significant term of imprisonment, fine, and period of supervised release.
Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who had emergency needs for food, shelter, and clothing because of the flood. In order to qualify for assistance based on home ownership, an individual must have, among other things, resided in the home at the time of the storm.
According to the indictment, CORONA is alleged to have submitted a false application for FEMA assistance for a Denham Springs residence where she did not reside at the time of the August 2016 flooding. In her application, she is also alleged to have lied in asserting that, because of the damage to the Denham Springs residence, she had emergency needs for food, clothing, and shelter.
U.S. Attorney Fremin stated, “The acts of this defendant, and those like her, are despicable and likely deprived honest, hard-working victims of the flood of benefits and services they so desperately needed. This conviction should send a strong message to would-be fraudsters who target victims of natural disasters and federal funding that they too will become targets. My office along with the National Center for Disaster Fraud and our federal, state, and local partners will continue our already robust efforts to identify, investigate, and prosecute those who seek to steal disaster assistance funds from the Federal Government or from our people. I am especially grateful to our prosecutors and staff and to the investigators at DHS-OIG who made today’s conviction possible.”
Special Agent in Charge David Green, Houston Field Office, Department of Homeland Security, Office of Inspector General, stated, “The DHS OIG will not tolerate those who attempt to exploit natural disasters. False claims like these slow the process for those who actually need help and the false claim is stealing money from the hardworking US Taxpayer. The DHS OIG will continue to investigate these false claims.”
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Department of Homeland Security, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Paul L. Pugliese.
Convicted Felon found Guilty of Possession of Firearm, Multiple Drug Charges, and Aiding and AbettingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Richard Winn, 35, of Philadelphia, PA, was found guilty after a jury trial for possession of a firearm by a convicted felon; possession with intent to distribute crack cocaine, heroin, and marijuana; and possession of a firearm in furtherance of a drug trafficking crime.
During the course of an unrelated homicide investigation, police learned of the address of a house at 1208 West Venango Street in Philadelphia where Winn and his co-defendant, Ameen Green, supplied drugs to other drug dealers and stored weapons to further their drug trafficking. The charges in this case stemmed from items found during the execution of a search warrant on September 15, 2017.
The defendant is a felon and qualifies as an Armed Career Criminal. Co-defendant Green previously pleaded guilty.
“Convicted felons have no business possessing deadly firearms for any reason, let alone to facilitate drug crimes that plague our community,” said U.S. Attorney McSwain. “Drugs and gun crimes decimate millions of lives every year, and as today’s verdict demonstrates, my Office will do everything in its power to fight for safer streets in our District.”
“Today’s verdict confirms the FBI’s commitment to working with our law enforcement partners to take back our communities from violent offenders and make our streets safer,” said Special Agent in Charge Michael Harpster.
This case was investigated by Special Agent Will Becker of the Federal Bureau of Investigation, with substantial assistance from the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Nancy Winter.
Convicted Felon Sentenced to over Six Years in Prison for Possession of Stolen FirearmsRead the Press Release
Hattiesburg, Miss. – Ulric S. Crossland, 27, of Hattiesburg, was sentenced yesterday by U.S. District Judge Keith Starrett to a term of 78 months in federal prison, followed by 3 years of supervised release, for possession of two stolen firearms, announced U.S. Attorney Mike Hurst, and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation. Crossland was also ordered to pay a $10,000 fine. He pled guilty before Judge Starrett on May 14, 2018.
On July 17, 2017, in Lamar County, Mississippi, law enforcement officers conducted a search of Crossland’s apartment. In his apartment, officers found Crossland in possession of a Romarm/Cugir 7.62x39 mm caliber rifle (with a high capacity magazine), a Taurus 9mm pistol, and a Glock .40 caliber pistol. Both the Taurus and Glock pistols were stolen. On November 2, 2017, in Forrest County, Mississippi, law enforcement officers again found Crossland in possession of a Smith & Wesson semi-automatic pistol. Crossland was previously convicted of possessing a controlled substance while in possession of a firearm.
The case was investigated by the FBI’s Southeast Mississippi Safe Streets Task Force, which consists of FBI agents and officers from the Mississippi State Auditor’s office, the Mississippi Bureau of Narcotics and the Hattiesburg Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Canadian Woman Arrested for Slapping A CBP OfficerRead 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 Tianna Natasha McPherson, 40, of Kitchener, Ontario, was arrested and charged by criminal complaint with assaulting, resisting, or impeding an officer of the United States. The charge carries a maximum penalty of eight years in prison and a $250,000.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that according to the complaint, on September 2, 2018, the defendant was dropped off at the Rainbow Bridge port of entry by a taxi cab. McPherson stated she intended on visiting the Niagara Falls State Park for a few hours. Due to derogatory information related to the defendant’s previous attempted crossings into the United States, McPherson was referred for a secondary inspection, denied admittance into the United States, and advised that she would be returned to Canada.
At this point, the defendant became verbally combative and uncooperative, indicating she did not want to go back to Canada, and stating that she was an American citizen. However, McPherson offered no credible or verifiable information to support her claim to U.S. citizenship. The defendant stated that she wanted to go before an American judge, and grabbed her baggage, and began walking towards the exit of the lobby. A Customs and Border Protection officer positioned herself in front of the exit and informed McPherson she was not to leave and to sit down. The defendant asked the officer, “What if I punch you in the face?” The officer again ordered McPherson to sit down. The defendant then stated that she wanted to be charged criminally. At this time, McPherson open-hand slapped the officer on the left side of her face. The defendant was subsequently restrained and escorted to a holding cell.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Michael J. Roemer and is being held. A detention hearing is scheduled for September 13, 2018, at 1:30 p.m.The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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.
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Bronx Man Convicted in White Plains Federal Court in Connection with Fatal Carjackings of Two Livery Cab DriversRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TYRONE FELDER, a/k/a “Man Man,” was found guilty of participating in the fatal carjackings of two livery cab drivers: Maodo Kane, who was killed in the Bronx on August 5, 2014, and Aboubacar Bah, who was killed in the Bronx on August 12, 2014. FELDER was also found guilty of participating in two armed robberies in Yonkers on August 5, 2014, as well as firearms offenses related to the carjackings and the robberies. The jury convicted FELDER yesterday on all nine counts of the Indictment following a two-week trial before U.S. District Judge Vincent L. Briccetti.
U.S. Attorney Geoffrey S. Berman said: “Tyrone Felder’s days of reckless and deadly violence are over. This unanimous verdict means that Felder will spend the rest of his life in prison, but it will not bring back the two men that Felder murdered.”
According to the allegations contained in the Indictment and the evidence presented in court during the trial:
On August 5, 2014, FELDER participated in the armed carjacking of Maodo Kane. During the course of the carjacking, FELDER shot and killed Mr. Kane in the vicinity of Hunter Avenue, in the Bronx. FELDER then used the stolen car to participate in two gunpoint robberies of businesses in Yonkers. Subsequently, on August 12, 2014, FELDER participated in the carjacking of Aboubacar Bah. During the course of the carjacking, FELDER shot and killed Mr. Bah in the vicinity of Bryant Avenue, in the Bronx.
* * *
FELDER, 29, was found guilty of two counts of carjacking resulting in death, two counts of robbery, four counts of firearms possession, and one count of conspiracy to commit robbery. FELDER faces a maximum potential sentence of life in prison and a mandatory minimum sentence of 100 years in prison, which must run consecutively to any other term of imprisonment imposed. FELDER is scheduled to be sentenced by Judge Briccetti on January 18, 2019.
FELDER’s co-defendants, Kareem Martin, a/k/a “Jamal Walker,” Takiem Ewing, a/k/a “Mulla,” and Tommy Smalls, a/k/a “Tommy Guns,” previously pled guilty to participating in the fatal carjackings described above.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, the City of Yonkers Police Department, and the Federal Bureau of Investigation’s Westchester County Safe Streets Task Force.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Hagan Scotten, Anden Chow, Scott Hartman, Michael Gerber, and Celia Cohen are in charge of the prosecution.
Braintree Man Sentenced for Cocaine TraffickingRead the Press Release
BOSTON – A Braintree man was sentenced today in federal court in Boston on drug trafficking charges.
Vaughn Lewis, 38, was sentenced by U.S. District Court Chief Judge Patti B. Saris to nine years in prison and three years of supervised release. In April 2018, Lewis pleaded guilty to one count of conspiracy to distribute cocaine and cocaine base, also known as crack cocaine.
During an investigation into a network of street gangs trafficking illegal firearms and drugs, investigators identified Lewis as a Brockton-based drug dealer. Lewis was a customer of, and distributor for, Luis Rivera, a/k/a “Fat Louie,” a major cocaine supplier in the Brockton area. Lewis was arrested and charged on June 9, 2016, at which time a search warrant was executed on his property. During the search, drugs, drug trafficking paraphernalia and a loaded handgun were recovered.
According to court documents, Lewis had a lengthy criminal record, including convictions for drug trafficking in Massachusetts in 1997 and 2009.
Lewis is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that created alliances to traffic weapons and drugs throughout Massachusetts and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
Biotech Officer Pleads Guilty to Securities Fraud and Obstruction of SEC ProceedingRead the Press Release
BOSTON – The former Vice President of Investor Relations for PixarBio Corp., a Boston-based biotech company, pleaded guilty today to charges of securities fraud in connection with a scheme to manipulate trading in the company’s shares and obstruction of proceedings before the Securities and Exchange Commission (SEC).
Kenneth Stromsland, 46, of Rumson, N.J., pleaded guilty today to one count of securities fraud through manipulative trading and one count of obstructing an agency proceeding. On April 24, 2018, Stromsland was arrested and charged.
At his plea, Stromsland admitted that beginning in or about November 2016, he engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included orders to buy at a price much higher than the price of the preceding market transaction.
Stromsland also admitted that during a 2017 SEC investigation into manipulative trading in PixarBio’s stock, he testified falsely before the SEC. In his testimony on three different days, Stromsland falsely denied that he had purchased shares of PixarBio to affect the share price and falsely denied that he had been instructed to do so by PixarBio’s then Chief Executive Officer.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. The charge of obstruction of an agency proceeding provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
Auto Sales Office Manager & Bookkeeper Charged with Bank Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE – A South Kingstown woman was arrested and made her initial appearance in U.S. District Court in Providence today on charges that she allegedly forged business checks and stole as much as $400,000 from a Cranston auto dealership where she was employed as an office manager and bookkeeper.
Michelle Saritelli, 45, appeared before U.S. District Court Magistrate Judge Lincoln D. Almond on a criminal complaint charging her with bank fraud and aggravated identity theft. It is alleged that Saritelli employed several schemes to defraud the owners of Stamas Auto and Truck Center.
Saritelli’s arrest and initial appearance in U.S. District Court are announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Cranston Police Chief Colonel Michael J. Winquist.
According to court documents, on September 27, 2017, the owners of Stamas Auto were notified that their bank accounts had been frozen. An internal review of the accounts by the business owners was begun which determined that several check ledgers were missing, funds were unaccounted for, and that numerous checks had been forged and/or fraudulently cashed. The owners notified Cranston Police detectives who sought the assistance of the FBI.
The majority of missing bank ledgers were located during a court-authorized search of Saritelli’s residence on June 7, 2018.
A forensic audit conducted by the FBI determined that for several years, Saritelli, who was employed at Stamas Auto Center from April 2008 to October 2018, allegedly fraudulently wrote, signed, and cashed and/or deposited Stamas Auto Center non-payroll checks into her own personal bank accounts; pocketed substantial portions of checks written and cashed on a weekly basis to fund the dealership’s petty cash fund; provided fraudulent checks to her husband for auto repair services and parts sales not provided; and stole portions of cash payments made by customers to Stamas Auto Center.
The forensic audit revealed hundreds of bank transactions of cash deposits and withdrawals from Saritelli’s personal bank accounts which often coincided with the issuance of fraudulent Stamas Auto Center business checks and unaccounted for cash. The majority of cash withdrawals from Saritelli’s accounts were made from ATMs at banks located near Saritelli’s South Kingstown residence and at casinos in Newport, Lincoln, and at Foxwoods and Mohegan Sun.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Saritelli was released on unsecured bond following her initial appearance today in U.S. District Court.
According to court documents, Saritelli was convicted in Rhode Island State Court in May 2004 on charges that she embezzled approximately $30,000 from a Johnston auto dealership.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Ashtabula man with a history of violence sentenced to 10 years in prison for firearms and drug crimesRead the Press Release
An Ashtabula man with a history of violence was sentenced to 10 years in prison for firearms and drug crimes.
Michael Thomas, 51, was sentenced to 120 months of incarceration by U.S. District Judge Solomon Oliver. Thomas pleaded guilty earlier this year to possession with intent to distribute crack cocaine and being a felon in possession of a firearm.
“This is a defendant with a history of violent crime who was dealing drugs and illegally had a firearm,” said U.S. Attorney Justin Herdman. “Ashtabula is a safer place because law enforcement worked together to remove this threat from the community.”
Thomas was arrested in Ashtabula on Nov. 26, 2017, and found to be in possession of Ruger Model P95 pistol and more than 32 grams of crack cocaine. He was prohibited from having a firearm because of prior convictions for felonious assault, assault on a peace officer, possession of crack cocaine, possession of cocaine with a firearm specification, and other crimes, according to court documents.
Thomas was ordered to forfeit the firearm.
The case was prosecuted by Assistant U.S. Attorney Patrick Burke following an investigation by the Drug Enforcement Administration, with the assistance of the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, and the Trumbull/Ashtabula County Narcotics Task Force (TAG).
Arrests Made on San Antonio’s Eastside Based on Federal Drug Trafficking and Money Laundering ChargesRead the Press Release
Federal and state authorities have arrested nine individuals for their alleged roles in narcotics distribution and money laundering activities on San Antonio’s Eastside, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division; San Antonio Police Chief William McManus; Bexar County Sheriff Javier Salazar; and Texas Department of Public Safety Director Steven McCraw.
A two-count federal grand jury indictment unsealed today charges the defendants with conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering. Defendants, who were arrested yesterday and charged in this indictment, include: 44-year-old Leroy Sarpenter; 38-year-old Roy Perkins; 37-year-old Demetrius Goode (aka “Dale Wilkins”); 44-year-old Andre Johnson; 28-year-old Jacob Cavazos (aka “J-Dawg”); 44-year-old Kenneth Brown (aka “Bean”); 41-year-old Terrance Stevenson; 39-year-old Damaneion Goode (aka “D-Down”); and, 46-year-old Larry Johnson (aka “Skull”).
The indictment alleges that these defendants distributed multi-kilograms of cocaine since January 2015.
All of the defendants remain in federal custody pending detention hearings expected to occur next week in U.S. Magistrate Court in San Antonio. Upon conviction, the defendants face between ten years and life in prison on the drug conspiracy charge and up to 20 years in federal prison on the money laundering conspiracy charge.
The Drug Enforcement Administration, the San Antonio Police Department, the Bexar County Sheriff’s Office, and the Texas Department of Public Safety are investigating this case with assistance from Homeland Security Investigations (HSI), Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Castle Hills Police Department, Live Oak Police Department, Leon Valley Police Department, Hollywood Park Police Department, and Comal County Sheriff’s Office. Assistant U.S. Attorney Russell Leachman is prosecuting this case on behalf of the Government.
“SAPD is pleased with the success of the recent collaborative operations with our law enforcement partners. We want to thank all the taskforces involved for their dedication. The recent arrests takes us a step closer to making our community safer. We will continue to work to bring justice to those who threaten the safety of our great city,” stated SAPD Chief McManus.
“The Bexar County Sheriff’s Office is proud of our ongoing relationship with our area Law Enforcement partners. This operation’s success is a direct testament to what happens when we all work together for the greater good of our community,” stated Bexar County Sheriff Salazar.
“This cocaine distribution investigation is a great example of the valuable partnerships between local, state and federal law enforcement in Texas, which is critical to combatting crime in our communities,” said DPS Director Steven McCraw. “Thanks to the collaborative efforts during this investigation, the community is safer today with these suspects behind bars.”
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Armed Robber Sentenced to Prison for Multiple Tidewater RobberiesRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 14 years in prison for committing a series of armed robberies of convenience stores.
“Violent criminals, especially those carrying firearms, represent a serious danger to our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We remain steadfast in our fight against violent crime, and together with our local law enforcement partners we are zeroing in on violent criminals like Mr. Roscoe, who are carrying firearms and driving crime in Tidewater.”
According to court documents, Lorenzo Roscoe, 30, committed five armed robberies of various convenience stores in Portsmouth, Norfolk and Chesapeake, including 7-Eleven and Dollar General stores. Roscoe would enter the stores wearing a disguise and brandishing a firearm while demanding money and cartons of Newport cigarettes. After Roscoe’s vehicle was identified on surveillance video, law enforcement setup surveillance on Roscoe’s vehicle. They followed Roscoe as he drove to another Dollar General store wearing the same clothing he wore for the other robberies. As Roscoe was about to enter the store the police apprehended him. In a bag that he carried with him to all the robberies, the police found a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney William D. Muhr prosecuted the case.
This case was investigated by a multi-agency team including the Portsmouth Police, Chesapeake Police and the FBI’s Tidewater Violent Crime Task Force.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-57.
Alien Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging JOSE GUADALUPE BURGOS-SOTO, age 33, of Mexico, with illegal reentry.
If convicted of Illegal Reentry of a Deported Alien, BURGOS-SOTO, previously deported four times and found in Johnston County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by ICE’s Enforcement and Removal Operations.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Jesus Manuel Almanza, 23, of Albuquerque, N.M., pled guilty yesterday in federal court to a bank robbery charge. Almanza entered the guilty plea without the benefit of a plea agreement.
The FBI arrested Almanza in April 2018, on a criminal complaint charging him with robbing the Wells Fargo bank branch located at 7827 4th Street NW, in Albuquerque on April 24, 2018. According to the complaint, Almanza jumped over the teller station in the bank, demanded money, opened the bank teller’s drawer, and took its contents. Almanza then stole money from another bank teller before casually walking out of the bank and departing the area in a vehicle.
According to the complaint, the Bernalillo County Sheriff’s Office (BCSO) was able to obtain a residential address in Albuquerque, based on the registered owner of the vehicle in which Almanza left the scene of the bank robbery. Later that day, BCSO deputies arrested Almanza at the Albuquerque residence. Thereafter, the FBI executed a consensual search at the residence with the homeowner’s consent and seized a large sum of cash and found the vehicle in the garage.
Almanza was indicted on May 9, 2018, and was charged with bank robbery on April 24, 2018, in Bernalillo County, N.M.
Almanza was remanded into custody after entering his guilty plea; he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Almanza faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Howard Thomas is prosecuting the case.
2 Shreveport felons plead guilty and another sentenced on firearm chargesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that one Shreveport felon was sentenced and two other felons pleaded guilty this week to possessing firearms prosecuted under the Project Safe Neighborhoods program.
Shreveport felon sentenced to 30 months in prison for illegally possessing firearm in car at Quail Creek Road apartment
Charles M. Thomas, 21, of Shreveport, was sentenced Tuesday to two and a half years in prison by U.S. District Judge S. Maurice Hicks Jr. on one count of felon in possession of a firearm. He was also sentenced to three years of supervised release. According to the February 21, 2018 guilty plea, a Shreveport Police officer observed a vehicle idling in the parking lot of an apartment complex on Quail Creek Road. When the officer approached the vehicle, he observed Thomas, the driver, placing a handgun under his seat. The firearm was loaded with four rounds of .45 caliber ammunition. Thomas had previously been convicted of three counts of aggravated assault with a firearm in 2016. The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Shreveport felon pleads guilty to possessing pistol at Monkhouse Drive hotel
Kevin Summerfield, 26, of Shreveport, Louisiana, pleaded guilty today before U.S. District Judge Elizabeth E. Foote to one count of felon in possession of a firearm. According to the guilty plea, a Shreveport Police officer encountered Summerfield at a hotel on Monkhouse Drive. The officer observed that Summerfield had a firearm in his waistband, and he was subsequently arrested. The firearm was a Hi-Point, Model CF380, .380-caliber pistol and was loaded with 13 rounds of ammunition. Summerfield was previously convicted of two burglary felonies in 2011 and was not allowed to possess a firearm according to federal law. Summerfield faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for December 19, 2018. The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Shreveport felon pleads guilty to possessing pistol in car at Dickinson Street
Kenneth W. Robinson, 33, of Shreveport, Louisiana, pleaded guilty today before U.S. District Judge Elizabeth E. Foote to one count of felon in possession of a firearm. According to the guilty plea, law enforcement officers observed Robinson on January 25, 2018 sitting in a vehicle on Dickinson Street. When officers approached, Robinson fled the vehicle on foot to a nearby apartment. Officers saw a Smith & Wesson SW9VE, 9 mm pistol on the driver’s side floorboard where Robinson had been sitting. They also located Robinson’s mobile phone next to the firearm. He was later arrested and admitted that the firearm was his. Robinson was previously convicted of illegal use of a weapon in 2004, possession of a controlled dangerous substance in 2008 and possession of a firearm by a convicted felon in 2013. The felonies restricted him from possessing a firearm under federal law. Robinson faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for December 20, 2018. The ATF, Caddo-Shreveport Narcotics Unit and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
These cases were 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.
15 Defendants and Five India-Based Call Centers Indicted in Phone Scam Targeting U.S. VictimsRead the Press Release
ATLANTA – An indictment was unsealed yesterday charging 20 individuals and entities for their alleged involvement in a transnational criminal organization that victimized over 2,000 people in the United States through a fraudulent India-based call-center scheme, resulting in over $5.5 million in losses. In connection with the scheme, seven individuals were arrested yesterday in the United States. Seven defendants and five call centers in India were also charged for their alleged involvement.
“IRS and payday loan phone schemes seek to profit by exploiting United States citizens, including the most vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak. “This indictment and yesterday’s arrests demonstrate our commitment to identifying and prosecuting those who hide behind these types of phone scams.”
“This indictment makes clear that the IRS impersonation scam has risen to a new level, with indictments against five call centers and seven co-conspirators in India who allegedly directed their employees to participate in the scam,” said J. Russell George, Treasury Inspector General for Tax Administration. “I wish to congratulate my investigative team, who labored many long hours to untangle the intricate web of financial transactions that the defendants allegedly completed as part of a transnational conspiracy to extort money from taxpayers and conceal and disguise the proceeds of their unlawful activities. Since 2013, the IRS impersonation scam has been on a relentless path, claiming more than 14,000 victims who have lost upwards of $71 million to the scammers,” the Inspector General noted. “TIGTA will continue to be just as relentless in our pursuit of individuals who fraudulently represent themselves as IRS officials in order to extort money from taxpayers. We will not back down from our pursuit of these criminals, and will continue to work with all law enforcement partners to bring them to justice.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The indictment alleges that the defendants were involved in a sophisticated scheme organized by co-conspirators in India, including a network of call centers in Ahmedabad, India. Using information obtained from data brokers and other sources, call center operators allegedly called potential victims while impersonating officials from the Internal Revenue Service or individuals offering fictitious payday loans.
The call center operators would then threaten potential victims with arrest, imprisonment, or fines if they did not pay taxes or penalties to the government. If the victims agreed to pay, the call centers allegedly would immediately turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds by purchasing prepaid debit cards or through wire transfers, including through MoneyGram and Western Union, to the attention of fictitious names and U.S.-based defendants and their co-conspirators.
The indictment charges the following defendants and entities with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering:
- Excellent Solutions BPO,
- ADN Infotech Pvt. Ltd.,
- Infoace BPO Solutions Pvt. Ltd.,
- Adore Infosource, Inc.,
- Zurik BPO Services Pvt. Ltd.,
- Shylesh Kumar Sharma,
- Dilipkumar Kodwini,
- Radhishraj Natarajan,
- Shubham Sharma,
- Nirav Janakbhai Panchal,
- Athar Parvez Mansuri,
- Mohmmad Samir Memon,
- Mohamed Kazim Momin,
- Palak Kumar Patel,
- Mohmed Sozab Momin,
- Rodrigo Leon-Castillo,
- Devin Bradford Pope,
- Nicholas Alezander Deane,
- Drue Kyle Riggins, and
- Jantz Parrish Miller
Mohamed Kazim Momin, Patel, Mohmed Sozab Momin, Pope, Deane, Riggins and Miller were arraigned yesterday before U.S. Magistrate Judge Janet F. King.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S Attorney Jeffrey A. Brown, Deputy Chief of the Complex Frauds Section, and Assistant U.S. Attorney Jolee Porter are prosecuting 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.
6 September 2018
Woman Pleads Guilty to Hoax Bomb Threat Against Claremore SchoolsRead the Press Release
TULSA, Okla. — United States Attorney Trent Shores announced that Stephanie Louise Montgomery pleaded guilty Thursday to providing False Information about Bombs in Schools, a crime that carries a maximum penalty of five years imprisonment and a $250,000 fine.
As part of the plea agreement, Montgomery will pay restitution totaling approximately $12,000 to law enforcement agencies and first responders, including the Claremore Police and Fire Departments, the Tulsa Police Department, and the Oklahoma Highway Patrol, for costs incurred when responding to and investigating the false threat.
On March 27, 2018, Montgomery made a threatening phone call to Claremore High School, indicating there were five bombs in backpacks at the high school and ten more bombs located at elementary schools. Students and staff from all Claremore schools were evacuated or sheltered in place until being transported to alternate safe locations. Law enforcement performed sweeps of the seven area schools but found no explosive devices. The threat followed shortly after the Marjory Stoneman Douglas High School mass shooting in Parkland, Florida.
“Our schools should be safe havens for students and teachers, not places where they feel threatened. People like Montgomery exploit school shooting tragedies and the resulting fear in communities. Their threats create undo anxiety in our children and worry among parents. Hoax threats cause the use of significant law enforcement resources. We take every school threat with the utmost seriousness and will respond accordingly,” said U.S. Attorney Trent Shores.
Montgomery’s sentencing hearing is scheduled for December 11, 2018, at 10:30 a.m. Chief Judge Gregory K. Frizzell presided over the case in U.S. District Court, and Assistant U.S. Attorney Robert T. Raley prosecuted the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Investigative agencies handling in the incident include the Federal Bureau of Investigation, the Rogers County Sheriff’s Department, the Rogers County District Attorney’s Office, the Oklahoma Highway Patrol Bomb Squad, the Claremore Police Department, and the Tulsa Police Department.
Waterbury Resident Pleads Guilty to Violating Sex Offender Registration LawsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ISMAEL SANCHEZ COLON, 44, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to violating the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, in December 2001, SANCHEZ COLON was convicted in the State of Wisconsin of the felony offense of causing a child between the ages of 13 and 18 to view sexual activity. He was sentenced to 60 days of incarceration and five years of probation. He also was ordered to comply with sex offender registration requirements for a period of 15 years after completion of his term of probation.
In March 2009, SANCHEZ COLON advised the State of Wisconsin that he had moved to Puerto Rico.
SANCHEZ COLON began residing in Connecticut in approximately April 2016, based on evidence that he obtained food stamps and Husky healthcare benefits at that time, and did not register as a sex offender in this state, as required by law. He subsequently began working at a restaurant in Waterbury, and he obtained a Connecticut driver’s license. Between April 2016 and March 2018, SANCHEZ COLON was registered in Puerto Rico, and he traveled to Puerto Rico to update his registration. At no time did SANCHEZ COLON advise Wisconsin and Puerto Rico of his Connecticut residence.
SANCHEZ COLON’s non-compliance with sex offender registration requirements in Connecticut was discovered when he used his Waterbury address in the process of renewing his U.S. passport.
SANCHEZ COLON has been detained since his arrest on April 12, 2018.
Judge Bolden scheduled sentencing for November 29, at which time SANCHEZ COLON faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Urbandale Man Convicted of Transporting and Receiving Child PornographyRead the Press Release
DES MOINES, IA – On September 5, 2018, following a two-day trial, a jury found Nedzad Juhic, age 46, of Urbandale, Iowa, guilty of receipt of child pornography and transportation of child pornography, announced United States Attorney Marc Krickbaum. Sentencing will be at a later date before United States District Court Judge Stephanie M. Rose. Juhic was ordered detained pending sentencing.
According to evidence at trial, in June 2015, a law enforcement investigation discovered an unknown person who made available for download fifty-two child pornography files via the Internet. This activity was traced to Juhic’s residence in Urbandale, Iowa. After a search warrant at the residence, Juhic agreed to turn over a laptop computer to law enforcement officers, and a forensic examination of this laptop found over 1,500 videos of child pornography, saved in his personal user directory.
Both receipt and transportation of child pornography carry a potential sentence of between five and twenty years in prison, five years to life of supervised release, a fine of up to $250,000, and a $100 special assessment to the Crime Victims Fund. Also, Juhic will be required to forfeit his laptop, and may be ordered to pay restitution. He will be required to register as a sex offender.
The case was investigated by the U.S. Department of Homeland Security—Homeland Security Investigations, and assisted by the Iowa Department of Criminal Investigation’s Internet Crimes against Children Task Force, the Urbandale Police Department, the Pleasant Hill Police Department, and the Perry Police Department.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Two Men Given Federal Prison Sentences for Trafficking Drugs into OregonRead the Press Release
PORTLAND, Ore. – In separate criminal cases, two men have been sentenced to federal prison for trafficking illegal narcotics into Oregon for distribution in the Portland and Salem, Oregon metropolitan areas.
Marcial Aguirre, 55, was sentenced today to 135 months in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine. Aguirre previously pleaded guilty on March 19, 2018.
Christian Jensel Chaidez, 33, of Salem, was sentenced on September 4, 2018 to 120 months in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine. Chaidez previously pleaded guilty on May 31, 2018.
U.S. v. Marcial Aguirre
According to court documents, Aguirre led a drug trafficking organization responsible for shipping distribution quantities of methamphetamine and cocaine from California for sale in Oregon and Washington state. Aguirre employed three drug runners or “mules” that would transport drugs between states in hidden vehicle compartments. He directed the runners where to pick up the loaded vehicles and where to deliver them.
At times, Aguirre would drive ahead or follow the loads into Oregon and meet the runners at local convenience stores in Salem. He would exchange his vehicle with the runner’s vehicle and transfer the loads to various co-conspirators for delivery. Using intercepted wire calls, investigators began to piece together the organizational structure of Aguirre’s network, identifying his co-conspirators and runners.
On September 24, 2016, on a return trip to California, agents stopped the van Aguirre was traveling in, executed an arrest, and seized approximately $74,000 in cash. Over the course of a year-long investigation, investigators seized approximately $229,000 in cash, two vehicles, three firearms, more than one hundred pounds of methamphetamine, and ten pounds of cocaine.
U.S. v. Christian Jensel Chaidez
Chaidez was a local affiliate of a drug trafficking network responsible for importing methamphetamine, heroin, cocaine and marijuana from Los Angeles to Salem. Using intercepted wire calls, investigators learned that a co-defendant would provide Chaidez with quantities of heroin that Chaidez would, in turn, sell in and around Salem. In November and December 2016 investigators used an undercover informant to purchase one half pound of methamphetamine from Chaidez on two different occasions.
By June 2017, when federal prosecutors unsealed a 12-person indictment, the network, which began primarily as a methamphetamine and cocaine distribution organization, was rapidly expanding into the heroin market. The arrests of Chaidez and others have significantly disrupted the distribution of methamphetamine, cocaine, and other narcotics in the Salem area.
Both cases were investigated by the U.S. Drug Enforcement Administration (DEA) and prosecuted by Kemp L. Strickland, Assistant U.S. Attorney for the District of Oregon.
Two Indiana Men Plead Guilty to Insider Trading in Advance of 2014 AcquisitionRead the Press Release
Two Indiana men pleaded guilty to conspiracy and other charges today, in relation to a 2014 scheme to trade in options ahead of SAP SE’s acquisition of Concur Technologies, which netted them hundreds of thousands of dollars in profits.
Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Criminal Investigations Group Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service (USPIS), and Special Agent in Charge Jeffrey S. Sallett of the FBI’s Chicago Field Office made the announcement.
Douglas M. Miller, 42, of Dyer, Indiana, and Edward M. Miller, 45, of Munster, Indiana, each pleaded guilty to one count of conspiracy to commit securities and wire fraud before U.S. District Judge Philip P. Simon of the Northern District of Indiana. Douglas Miller also pleaded guilty to one count of making a false statement. Edward Miller pleaded guilty to one count of obstruction of justice.
According to admissions made in connection with their guilty pleas, Douglas and Edward Miller obtained material, non-public information about SAP’s September 2014 acquisition of Concur from Christopher Salis, a global vice president at SAP. Douglas and Edward Miller and others then purchased securities in Concur based on this information for the purposes of profiting from these transactions and returning a portion of the profits to Salis. Following the acquisition, the Millers and their co-conspirators sold the securities and earned hundreds of thousands of dollars in profits.
The Millers also admitted to taking further steps to conceal their scheme by structuring financial transactions and using “burner” phones to communicate with their co-conspirators. Upon learning of federal investigations into the insider trading scheme, Edward Miller took steps to hinder and impede the investigation, including by destroying electronic data found on the “burner” phones. Doug Miller also admitted to lying to federal investigators.
The Millers are the second and third individuals to plead guilty as a result of the investigation into insider trading ahead of SAP’s acquisition of Concur. In February 2017, Salis pleaded guilty to one count of conspiracy to commit securities and wire fraud in connection to the scheme. Sentencing for the Millers is scheduled for Jan. 11, 2019. Salis is scheduled to be sentenced on Jan. 25, 2019.
The case is being investigated by the U.S. Postal Inspection Service’s Mail Fraud Team and the FBI’s Chicago Field Office. The case is being prosecuted by Assistant Chief Justin D. Weitz and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section. Trial Attorneys Gary Winters, Jennifer Ballantyne of the Fraud Section and former Fraud Section Trial Attorney L. Rush Atkinson previously worked on this matter. The Department appreciates the substantial assistance of the Securities and Exchange Commission.
Potential victims of the scheme can find information about their rights under relevant law at the following website: https://www.justice.gov/criminal-vns/case/salis-miller-concurtrading
Tulsa Man Sentenced to 30 Years in Federal Prison for Armed RobberyRead the Press Release
TULSA, Okla. — United States District Court Judge Gregory K. Frizzell sentenced Tracy Allen Crawford, 32, of Tulsa, Wednesday, to a term of 30 years imprisonment for robbing a local fast food restaurant.
On June 5, 2018, Crawford pleaded guilty to brandishing a firearm during and in relation to a crime of violence.
Crawford and another individual stole $900 from a Burger King located at 3242 E. 11th Street, on February 13, 2017. He pointed a hand gun at one of the employees and demanded she open the safe. When the employee could not open the safe, Crawford was directed to an office that contained cash register drawers. Crawford and the other individual took the money from the drawers before leaving.
The court further ordered Crawford to pay more than $19,000 in restitution, in part, to Burger King. As part of a plea agreement, Crawford will also pay a portion of the restitution to local establishments he admitted to robbing between February and May 2017, including No. 1 Kitchen, Family Dollar, and Cash America Pawn.
“Any gun crime means hard time. Federal prosecutors and law enforcement agencies are together focused on combatting violent crime in Tulsa. In close partnership with the Tulsa Police Department, we will make this community safer,” said U.S. Attorney Shores.
The United States Attorney’s Office consistently works to improve collaboration between federal and local law enforcement in order to help identify cases that can be prosecuted in federal courts. Through Project Safe Neighborhoods and the Public Safety Partnership initiatives, U.S. Attorney Shores hopes to bring more resources, best practices, and enforcement strategies to northeastern Oklahoma to help reduce violent crime.
This prosecution resulted from an investigation by the Tulsa Police Department Robbery Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Dennis A. Fries prosecuted the case.
Tuba City Man Sentenced to Prison for Assaulting Navajo Nation OfficerRead the Press Release
PHOENIX – This week, Raymond Wilson Jr., 25, of Tuba City, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 12 months and one day of imprisonment, to be followed by three years of supervised release. Wilson, an enrolled member of the Navajo Nation, had previously pleaded guilty to assault on a federal officer.
On Nov. 21, 2017, a Navajo Nation police officer was dispatched to Wilson’s residence after receiving reports that Wilson was intoxicated and acting disorderly. When the officer attempted to place Wilson under arrest, he resisted, swung his fist at the officer, and wrestled the officer to the ground. After being handcuffed, Wilson pushed, kicked, and head-butted the officer.
The investigation in this case was conducted by the Federal Bureau of Investigation and Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08064-PCT-SPL
RELEASE NUMBER: 2018-117_Wilson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three More Defendants Arrested and Charged in Investigation of an Open Drug Market from a D.C. BarbershopRead the Press Release
WASHINGTON – Three additional area men have been arrested on federal narcotics charges as part of an ongoing investigation into a drug market that was operated out of a barber shop in Southeast Washington. A total of eight men have now been charged in the case, including two who earlier pled guilty to federal offenses.
The charges were announced by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Those arrested today include Lacy Hamilton, 41, of Camp Springs, Md., Lonnell Tucker, 41, of Temple Hills, Md., and Calvin Wright, 41, of Washington, D.C. They were indicted, along with two other defendants who were previously arrested, by a grand jury in the U.S. District Court for the District of Columbia. Previously arrested were Anthony Fields, 45, and Abdul Samuels, 44, both of Washington, D.C. Another indicted defendant is still being sought.
Hamilton, Tucker and Wright made their first court appearances today and were ordered held pending a detention hearing set for Sept. 11, 2018.
The indictment charges the six defendants with conspiracy to distribute and possess with the intent to distribute 100 grams or more of PCP, 100 grams or more of heroin, 40 grams or more of fentanyl, and a detectable amount of buprenorphine (suboxone).
The first individuals were charged on Feb. 1, 2018, when law enforcement agents from ATF, MPD and the Prince George’s County, Md. Police Department executed search warrants on three locations and five vehicles, which led to the seizure of firearms, ammunition, and quantities of narcotics. Specifically, in addition to recovering three firearms from the barbershop and one firearm in a residence, law enforcement seized more than $7,000 in cash, and without packaging, more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents.
The investigation earlier led to two guilty pleas. James Venable, 46, of Fort Washington, Md., pled guilty on Aug. 10, 2018 to narcotics and firearms charges stemming from his commission of two separate drug trafficking offenses while in the possession of loaded firearms. Venable’s sentencing has been scheduled for Oct. 16, 2018. Darryl Smith, 41, of Washington, D.C., was sentenced on Aug. 15, 2018 on federal narcotics and firearms charges following two separate arrests in the 2400 block of Martin Luther King, Jr. Avenue SE, where Smith managed the Next Level Cuts barbershop that was used by multiple individuals to traffic narcotics.
The charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In announcing the recent arrests and unsealed indictment, U.S. Attorney Liu, Special Agent in Charge Chittum, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who are handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli of the Violent Crime and Narcotics Trafficking Section, Special Assistant U.S. Attorney Rebecca Caruso of the Asset Forfeiture and Money Laundering Section, and Paralegal Specialists Candace Battle, Kim Hall, and Teesha Tobias, and Legal Assistant Aiesha Bynum.
Texas Woman Sentenced to Prison for Federal Cocaine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Candy May Gonzales, 34, of Canutillo, Texas, entered a guilty plea today in federal court in Las Cruces, N.M., to cocaine trafficking charges arising from the seizure of 4.06 kilograms (8.95 pounds) of cocaine at the U.S. Border Patrol Checkpoint near Las Cruces. Immediately following the change of plea hearing, Gonzales was sentenced to 37 months in prison followed by four years of supervised release.
The DEA arrested Gonzales and co-defendant Carlos Ivan Todd, 31, also of Canutillo, Texas, in Oct. 2017, on a criminal complaint charging them with possession of 4.0 kilograms of cocaine with intent to distribute in Dona Ana County, N.M. According to the complaint, U.S. Border Patrol agents arrested Todd and Gonzales at the U.S. Border Patrol Checkpoint on I-25 near Las Cruces after the agents seized three bundles of cocaine concealed in the vehicle in which Todd and Gonzales were traveling.
Gonzales subsequently was indicted and charged with participating in a cocaine trafficking conspiracy from Aug. 2017 through Oct. 8, 2017, and possessing cocaine with intent to distribute on Oct. 8, 2017. According to the indictment, Gonzales committed the offenses in Dona Ana County.
During today’s proceedings, Gonzales pled guilty to a felony information charging her with conspiracy and possession of cocaine with intent to distribute. In entering the guilty plea, Gonzales admitted that on Oct. 8, 2017, she and her co-defendant drove a vehicle containing approximately 4.06 kilograms of cocaine hidden in a compartment in the vehicle into the U.S. Border Patrol Checkpoint on I-25 north of Las Cruces. Gonzales further admitted that she and her co-defendant agreed with others to drive the cocaine from El Paso, Texas to Albuquerque, N.M., where the drugs would be distributed further.
On Jan. 4, 2018, Todd pled guilty to similar charges, and was sentenced on May 16, 2018.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Texas Man Sentenced for his Involvement in Multi-Drug ConspiracyRead the Press Release
Gulfport, Miss. - Jose Luis Chavez a/k/a "Big Head," 47, of Edinburg, Texas, was sentenced today by U.S. District Judge Sul Ozerden to 143 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute 500 grams or more of cocaine, 50 grams or more of actual methamphetamine, 100 kilograms or more of marijuana, and 100 grams or more of heroin, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA). Chavez was also ordered to pay a $15,000 fine.
In March 2016, agents with the Drug Enforcement Administration opened an investigation into the drug trafficking organization of Chavez. Agents learned and confirmed Chavez was a major source of supply of cocaine, marijuana, methamphetamine and heroin for the Mississippi Gulf Coast. With the help of at least three others, Chavez conspired to traffic these narcotics from Texas to Mississippi. Agents arrested Chavez in Texas, and brought him to Mississippi for prosecution. Chavez pleaded guilty to the conspiracy charge on January 26, 2018.
The case was investigated by the DEA and the FBI Safe Streets Task Force. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Tahlequah Woman Sentenced to 8 Months for Uttering, Passing Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alyssia Marie Jae Carey, age 26, of Tahlequah, Oklahoma, was sentenced to 8 months imprisonment and 2 years supervised release for two counts of Uttering A Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 472; and for Passing A Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 472. The charge arose from an investigation by the Tahlequah Police Department and the United States Secret Service.
The indictment alleged that on three different days in November 2017, the defendant, with the intent to defraud, passed and uttered counterfeited twenty-dollar and five-dollar Federal Reserve Notes to three different Tahlequah businesses, knowing the Notes were falsely made, forged and counterfeited. The businesses, Clear Creek 66, Hit-N-Run, and Dollar General, reported the receipt of the counterfeit money to the Tahlequah Police Department.
United States Attorney Brian J. Kuester said, “The local businesses discovered that they had received the counterfeit bills and reported it to the Tahlequah Police Department, which conducted a thorough investigation and with the assistance of the United States Secret Service brought Carey to justice. The prompt recognition and reporting of the counterfeit money was key to the successful investigation and prosecution of the defendant. I urge businesses to continue to keep a watchful eye out for counterfeit money and report it to your local law enforcement agency as soon as possible after you have discovered it.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Stockton Man Sentenced to over 11 Years in Prison for Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. —Ricky Lee Richardson Jr., 42, of Stockton, was sentenced today my U.S. District Judge Troy L. Nunley to 11 years and three months in prison for sex trafficking of a child, U.S. Attorney McGregor W. Scott announced.
According to court documents, in November 2011, Richardson recruited a minor victim to engage in sex acts for money. Between December 2011 and March 2012, Richardson caused the then 16-year-old victim to engage in commercial sex acts in Stockton and elsewhere in Northern California. Richardson arranged for photos to be taken of the victim and he posted prostitution advertisements on the internet that contained nude photos of the victim. Richardson drove the victim to motels and gave her false identification cards that she used to rent rooms for the prostitution activity. Richardson took the money that the victim obtained from that activity.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Stockton Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
South Florida Man Sentenced to Prison for Hate Crime by Threatening to Blow up MosqueRead the Press Release
U.S. District Judge Federico A. Moreno sentenced a Miami area man to four years in prison, three years’ supervised release, and $1,800 in restitution for obstructing the free exercise of religious beliefs by threatening, in a phone message, to detonate a bomb at a mosque in Pembroke Pines, Florida, Acting Assistant Attorney General of the Civil Rights Division John Gore, U.S. Attorney Benjamin G. Greenberg, and Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office announced.
Dustin Allen Hughes, 26, pleaded guilty in June 2018 in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs for making the threatening call. During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque.
“The sentence handed down today reflects the seriousness of threats to places of worship, which can instill fear in whole communities,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“This prosecution sends a clear message that committing hate crimes has serious consequences,” said U.S. Attorney Benjamin Greenberg. “Along with our law enforcement partners, the U.S. Attorney’s Office will continue to prosecute those individuals who threaten members of our South Florida community because of their religious beliefs.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, the Miami-Dade Police Department, and the City of Miami Police Department also provided assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
South Florida Man Sentenced to Prison for Hate Crime by Threatening to Blow up MosqueRead the Press Release
U.S. District Judge Federico A. Moreno sentenced a Miami area man to four years in prison, three years’ supervised release, and $1,800 in restitution for obstructing the free exercise of religious beliefs by threatening, in a phone message, to detonate a bomb at a mosque in Pembroke Pines, Florida, U.S. Attorney Benjamin G. Greenberg, Acting Assistant Attorney General of the Civil Rights Division John Gore, and Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office announced.
Dustin Allen Hughes, 26, pleaded guilty in June 2018 in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs for making the threatening call. During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque.
“This prosecution sends a clear message that committing hate crimes has serious consequences,” said U.S. Attorney Benjamin Greenberg. “Along with our law enforcement partners, the U.S. Attorney’s Office will continue to prosecute those individuals who threaten members of our South Florida community because of their religious beliefs.”
“The sentence handed down today reflects the seriousness of threats to places of worship, which can instill fear in whole communities,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, the Miami-Dade Police Department, and the City of Miami Police Department also provided assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.
Sex Trafficker Pleads Guilty in Manhattan Federal Court to Victimizing Minor Girls and Adult Women for Nearly Two DecadesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GREVY GERARD PIERRE-LOUIS, a/k/a “Cadillac Slim,” a/k/a “Caddy,” pled guilty yesterday before Chief United States District Judge Colleen McMahon to conspiracy to commit sex trafficking and conspiracy to transport minors interstate for the purpose of prostitution.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendant spent most of his adult life profiting from his victimization of girls and women through extreme physical and psychological abuse. All the while, he bragged about being a pimp and a player. Thanks to the extraordinary work of the FBI, the defendant’s so-called game is now over, and he will face the consequences of his actions. We can only hope that the defendant’s guilty plea brings some measure of justice for the survivors of his vicious crimes.”
According to the Indictment, Superseding Information, publicly-filed documents, and statements made in court:
Starting in or about 1998 and continuing through 2016, PIERRE-LOUIS compelled his victims to engage in prostitution through extreme violence, psychological and verbal abuse, coercion, and threats of violence to them and their family members. PIERRE-LOUIS victimized girls and women in numerous states, all for his own profit.
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PIERRE-LOUIS, 46, of Queens, New York, was arrested on August 17, 2016, and has been in federal custody since. PIERRE-LOUIS pled guilty to one count of conspiracy to commit sex trafficking, which carries a maximum sentence of life in prison; and one count of conspiracy to transport minors interstate for the purpose of prostitution, which carries a mandatory minimum sentence of ten years in prison, and a maximum sentence of life in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PIERRE-LOUIS is scheduled to be sentenced by Judge McMahon on December 12, 2018.
Mr. Berman praised the outstanding investigative work of the FBI. Mr. Berman also thanked the New York City Police Department, the U.S. Attorney’s Office for the Southern District of Florida, the Miami Field Office of the FBI, the United States Secret Service, the City of Miami Police Department, the Miami Beach Police Department, and the Miramar Police Department for their cooperation throughout the investigation.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amanda Kramer and Jessica K. Fender are in charge of the prosecution.
Sentencings for September 4 & 5, 2018Read the Press Release
SPENCER RICH, 28, of Vernal, Utah was sentenced by Federal District Court Judge Alan B. Johnson on September 5, 2018 for being a felon in possession of a firearm. Rich was arrested in Lander, Wyoming. He received one hundred months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $9,645.95 and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
JASON ARNOLD MILLER, 41, of Cheyenne, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on September 4, 2018 for possession of child pornography. Miller was arrested in Laramie County, Wyoming. He received one hundred twenty months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay restitution in the amount of $5000.00 and a $100.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
RANDY ALAN MERRILL, 52, of Denver, Colorado was sentenced by Federal District Court Judge Alan B. Johnson on September 5, 2018 for being a felon in possession of a firearm. Merrill was arrested in Crowley County, Colorado. He received thirty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.