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5 September 2018
Bay Area CEO Pleads Guilty to Wire Fraud SchemeRead the Press Release
SAN FRANCISCO – Bay Area executive and Croatian national Renato Libric, the former Chief Executive Officer of Bouxtie, Inc., pleaded guilty this afternoon to wire fraud charges related to a $1.5 million investment fraud scheme, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Maxine M. Chesney, U.S. District Judge.
According to the plea agreement, Libric, 39, a resident of Redwood City, Calif., admitted that from August 2017 through February 2018, he devised and carried out a scheme to defraud potential investors in Bouxtie, Inc., a Delaware corporation based in the San Francisco Bay Area. Libric admitted that an essential purpose of the scheme was to overstate the financial condition and prospects of Bouxtie, and to induce potential investors to believe Libric had authority to sell shares in Bouxtie to investors.
Libric took multiple steps to convince members of a Las Vegas-based company to invest over a million dollars in Bouxtie. As part of the scheme, Libric fraudulently suggested to representatives of the potential investors that a large publicly-traded corporation was interested in purchasing Bouxtie at a price of $150 million. To bolster this claim, Libric fraudulently placed the signature of an executive with the alleged purchasing corporation on a forged Term Sheet that purported to indicate the large corporation was interested in the purchase of Bouxtie. In addition, Libric caused the falsified Term Sheet and a falsified bank statement to be transmitted to potential investors. The false bank statement suggested Bouxtie had a balance of over $2,000,000 in an account when, in fact, there was only $7,642.82 in the account. Furthermore, Libric placed the signatures of members of Bouxtie’s Board of Directors on a document that purported to authorize Libric to enter into agreements pursuant to which the investors would lend $1.5 million to Bouxtie and that the loan eventually would be converted into shares of Bouxtie.
As a result of his scheme, Libric convinced investors to transfer $1.5 million into accounts belonging to Bouxtie. Further, after the $1.5 million was deposited, Libric withdrew more than $130,000 of the invested funds from an account and put the funds into his own checking account.
On May 10, 2018, a federal grand jury indicted Libric, charging him with one count of wire fraud, in violation of 18 U.S.C. § 1343 and 2. Today, Libric pleaded guilty to the charge and agreed to make restitution to the victims for their losses.
Judge Chesney scheduled Libric’s sentencing for November 28, 2018. The maximum statutory penalties for wire fraud are 20 years in prison, a $250,000 fine, and 3 years of supervised release. Additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence will 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.
Assistant U.S. Attorney Matthew McCarthy is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
Art Gallery Owner Pleads Guilty in Manhattan Federal Court to Filing False Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today MARY BOONE, a Manhattan art gallery owner, pled guilty to charges arising from her filing of federal income tax returns that falsely claimed approximately $1.6 million in personal expenses as tax deductible business expenses in 2011. BOONE pled guilty before U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Geoffrey S. Berman said: “Mary Boone, a Manhattan art gallery owner, admitted to cheating the U.S. tax system by blatantly lying about her expenses and playing a shell game with bank accounts to hide her true assets. While tax evasion may seem like a victimless crime, it isn’t; all Americans must pay their taxes. And as Boone has learned, tax laws are not abstract.”
IRS-CI Special Agent-in-Charge James D. Robnett said: “Operating a Manhattan art gallery did not entitle Mary Boone to evade paying her taxes. It is a felony offense that carries severe consequences. By falsely claiming millions of dollars of personal expenses as business expenses, Ms. Boone cheated all Americans, since law abiding citizens are expected to pay their fair share.”
According to the allegations contained in the Information to which BOONE pled guilty and statements made in court:
BOONE owns and operates an art gallery (the “Gallery”) with two locations in Manhattan, New York. At all relevant times, BOONE operated the Gallery as a partnership and was solely responsible for the Gallery’s finances. In 2011, BOONE held a 90 percent partnership interest in the Gallery.
In 2012, BOONE caused her accountant to file false and fraudulent 2011 federal income tax returns for the Gallery and for BOONE individually. BOONE caused the Gallery’s 2011 partnership return, Form 1065, to report a false business loss of approximately $52,521, whereas, in reality, the Gallery made a profit of approximately $3.7 million in 2011. BOONE perpetrated this tax fraud in part by using business funds to pay for over $1.6 million in personal expenses and then falsely claiming these personal expenses as business deductions. For example, in 2011, BOONE issued approximately $800,000 in business checks to pay for the remodeling of BOONE’s Manhattan apartment, as well as approximately $120,000 more in business checks to pay for rent and other expenses for a second Manhattan apartment where BOONE lived while the remodeling was underway. In order to conceal the personal nature of these and other expenses, and thereby evade income taxes, BOONE falsely characterized approximately $1.6 million in personal expenses as tax deductible business expenses in handwritten check registers that BOONE provided to her accountant. For example, BOONE falsely characterized a $500,000 payment to a contractor for remodeling BOONE’s apartment as “commission.”
BOONE also caused the 2011 Form 1065 to report a false business loss by artificially inflating the Gallery’s stated expenses and, to a lesser degree, the Gallery’s stated income. BOONE did so by, among other things, providing check registers to her accountant that falsely characterized transactions such as bank transfers as income or expenses. For example, in 2011, BOONE transferred approximately $9.5 million from one business bank account to another, and falsely characterized these bank transfers as tax deductible business expenses, such as commissions to artists.
Through this conduct, BOONE also caused her 2011 individual income tax return, Form 1040, to be materially false. Instead of reporting BOONE’s partnership share of the Gallery’s $3.7 million profit, BOONE’s 2011 Form 1040 reported BOONE’s personal income as limited to a payment of approximately $50,000 and interest income of approximately $60,000, and offset that reported income by BOONE’s share of the Gallery’s false reported business loss. Through this scheme, BOONE evaded over $1.2 million in federal taxes and reported a false tax liability of merely $335 on the Form 1040.
BOONE engaged in similar tax fraud schemes for the calendar years 2009 and 2010. In all, BOONE caused the IRS losses totaling over $3 million, not including penalties and interest.
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BOONE, 66, of New York, New York, pled guilty to two counts of filing a false federal income tax return, each of which carries a maximum sentence of three years in prison. BOONE has agreed to pay restitution to the IRS in the amount of at least $3,097,160, which represents the additional tax due and owing as a result of BOONE’s filing of false individual and corporate income tax returns for the calendar years 2009, 2010, and 2011. Sentencing is scheduled for January 18, 2019, at 11 a.m. before Judge Hellerstein.
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.
Mr. Berman praised the outstanding work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
Armed Bank Robber in High-Speed Chase with Marietta Police Department SentencedRead the Press Release
ATLANTA – Donte Deshawn Alston has been sentenced for the armed robbery of a Fifth Third Bank in Smyrna, Georgia, and for brandishing a firearm during the commission of that crime.
“Alston threatened the life of a bank teller at gunpoint during this robbery then endangered the lives of other citizens and police officers during a dangerous high-speed car chase with law enforcement following the robbery,” said U.S. Attorney Byung J. “BJay” Pak. “His conviction and lengthy sentence resulted from a collaborative effort between federal and local law enforcement agencies that will allow Fifth Third Bank and its employees to put this traumatic chapter behind them.”
“This defendant’s complete disregard for the safety of innocent civilians is reprehensible,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thankfully the quick response by officers from the Marietta Police Department, the diligence of FBI agents who investigated this case, and the U.S. Attorney’s Office who prosecuted this case, Alston’s victims can take solace that he will not be a threat to traumatize anyone else.”
“Robbery is the epitome of a premeditated violent crime and fleeing from the police at a high rate of speed endangers the community as well as police officers,” said Marietta Police Chief Dan Flynn. “I appreciate both our officers who placed themselves in harm’s way to capture this violent criminal and our federal partners who effectively used Project Safe Neighborhoods to protect our community.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: On April 5, 2017, Alston robbed Fifth Third Bank in Smyrna at gunpoint then led police on a high-speed chase before hydroplaning into a fence. Alston entered the bank wearing a hooded sweater, black mask, and gloves. He fled the bank with approximately $2,500 in cash that he placed inside his backpack. Alston did not know that the bank’s funds included a GPS tracking device that allowed the Marietta Police Department (MPD) to immediately track the movement of a 2006 silver Chevy Aveo that he was driving.
Alston attempted to evade officers by speeding through a shopping center parking lot and local streets in excess of 70 miles per hour, before ultimately losing control of his vehicle in a residential neighborhood. Alston also tried to escape following the crash, but MPD officers apprehended him in a nearby wooded area. The officers recovered Alston’s backpack that contained a loaded firearm, the stolen bank funds, and the GPS tracking device.
Donte Deshawn Alston, 23, of Atlanta, Georgia was sentenced to 10 years, one month in prison, to be followed by three years of supervised release. Alston was convicted of the offenses of armed bank robbery and brandishing a firearm during a crime of violence after entering a guilty plea on May 1, 2018.
This case was investigated by the Federal Bureau of Investigation and the Marietta Police Department.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Alaskan Man Indicted for Selling Machine Guns with Obliterated Serial NumbersRead 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 a federal grand jury has returned a 15-count indictment charging Benjamin Handley, 25, of Homer, Alaska, with five counts each of unlawful shipment of defaced firearm, unlawful transfer of machinegun, and unlawful transport of firearm. The charges carry maximum penalties of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment, Handley is accused of shipping nine firearms from the State of Alaska to the State of New York in February, March, May, and July of 2018. Those firearms included four Glocks, three MAC9s, a MAC10, and a MAC11. All nine firearms were modified to fire automatic, as machine guns, and had their serial numbers obliterated.
The defendant was arraigned before Chief Magistrate Judge Deborah M. Smith in Anchorage, Alaska and ordered detained. He will be scheduled for arraignment upon his transport to Buffalo.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; ICE-HSI Anchorage; the United States Postal Service Inspection Service, Boston Division, under the direction of Acting Inspector-in-Charge Delany E. De Leon-Colon; and the Alaska Department of Public Safety, Division of Alaska State Troopers. The U.S. Attorney’s Office for the District of Alaska also assisted in Handley’s arrest.
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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"Top Ten" Alpha Criminal Pleads Guilty to Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Dannie Dee Dill, 47, of Tulsa, pleaded guilty in United States District Court this morning to participating in a methamphetamine and heroin distribution conspiracy and to possession of methamphetamine and heroin with intent to distribute.
Law enforcement previously identified Dill as a “Top Ten” suspect of Operation Alpha, a Project Safe Neighborhoods’ initiative targeting Northern Oklahoma’s most dangerous criminals, which began in mid-April 2018.
Dill also pleaded guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Destruction or Removal of Property to Prevent Seizure. As part of the plea agreement, Dill and the United States agreed to a sentence of 120 months in prison, criminal forfeiture in the amount of $8,500, and forfeiture of a Glock handgun and associated ammunition.
From approximately August 2017 to April 2018, Dill participated in a scheme to distribute illegal narcotics, including heroin and methamphetamine, in the greater Tulsa area. As part of the scheme, Dill stored narcotics and drug proceeds at two different locations, one in Broken Arrow and one in Tulsa. His narcotics source of supply sent illegal drug shipments for distribution from outside of the state of Oklahoma to the Broken Arrow location. To further his drug trafficking activities, Dill stored a loaded Glock handgun in the Broken Arrow home. Later, in April 2018, Dill removed drug proceeds totaling $15,000 in cash from his coconspirator’s house in an effort to prevent law enforcement from finding the money in a search.
“This is just one of more than 35 federal cases resulting from phase one of Operation Alpha. Alpha criminals are generally the most violent, aggressive, and problematic of the criminal world. We must continue to stop them so all of our neighborhoods can thrive,” said U.S. Attorney Trent Shores. “I am proud of the dedication and cooperation shown by local, county, and state law enforcement officers, as well as our Assistant U.S. Attorneys, in catching and prosecuting criminals like Dannie Dill.”
Phase One of the Operation Alpha initiative utilized crime mapping technology to target areas with high rates of crime and focused on the area surrounding 21st Street and Garnett Road in Tulsa. Phase one operations took place from mid-April through mid-June 2018 and resulted in 174 felony arrests and seizure of 106 firearms.
Several law enforcement agencies were involved in a coordinated effort to bring Dill into custody in connection with the crime, including the Tulsa Police Department, the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joel-lyn A. McCormick and Thomas E. Duncombe prosecuted the case.
4 September 2018
Windsor Locks Man Sentenced to 3 Years in Prison for Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSCAR MONTOYA, 62, of Windsor Locks, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MONTOYA’s wife, Christina Miles, who is a retired nurse, illegally possessed, dispensed and sold prescription medication and other controlled substances. MONTOYA knew of Miles’ illegal activity and, at Miles’ direction, dispensed pills to at least one of Miles’ drug customers. MONTOYA also was aware that family members outside of Connecticut were mailing pills to Miles at their Windsor Locks residence, and that his wife was selling the pills for profit.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of Miles and MONTOYA’s residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. Miles and MONTOYA were arrested on state charges after the search.
The investigation revealed that, through this drug trafficking conspiracy, Miles and MONTOYA amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, in April 2017, Miles and MONTOYA used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
Miles and MONTOYA were arrested on federal charges on November 16, 2017, and have been detained since their arrests. On February 2, 2018, another court-authorized search of their North Street residence revealed additional drug evidence and $41,904 in cash.
On May 21, 2018, MONTOYA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000.
Miles pleaded guilty to the same charges on May 15, 2018.
As part of this case, MONTOYA and Miles agreed to forfeit the Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Miles awaits sentencing.
On May 22, 2018, Miles’s daughter, Christy Miles, pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam. She also awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Marshals Service with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor, Manchester and Suffield Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Vallejo Defendant Pleads Guilty in Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Zalathiel Aguila, 45, of Vallejo, pleaded guilty last Friday to conspiring to commit wire fraud affecting a financial institution and bank fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, from September 2004 through February 2008, Aguila and co-conspirators Sergio Roman Barrientos and Omar Anabo operated an entity named Capital Access LLC, in Vallejo. Capital Access preyed on homeowners nearing foreclosure, convinced them to sign away title in their homes, spent any equity those homeowners had saved, and used straw buyers to defraud federally insured financial institutions out of millions of dollars in home loans obtained under false pretenses. The equity stripped from the properties was then used for operational expenses of the scheme and personal expenses of the conspirators. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and Todd A. Pickles are prosecuting the case.
Barrientos and Anabo are scheduled to be sentenced on September 21, 2018, and April 26, 2019, respectively.
Aguila is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on November 16, 2018. Aguila faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Mexican Nationals Facing Heroin Trafficking Charges Arising Out of Seizure of Five Pounds of HeroinRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging two Mexican nationals with heroin trafficking offenses arising from a New Mexico State Police seizure of approximately 5.3 pounds of heroin in southern New Mexico on Aug. 27, 2018. The Magistrate Judge also remanded Gerardo Hoyos-Hernandez, 29, and Antonio Mohamed Perez-Llanes, 22, into custody pending trial, which has yet to be scheduled, during this morning’s proceedings.
According to the criminal complaint, a New Mexico State Police officer executed a traffic stop on a vehicle, which Hoyos-Hernandez was driving and in which Perez-Llanes was a passenger, while on patrol in Anthony, N.M., on Aug. 27, 2018. During the traffic stop, the officer requested and allegedly obtained consent to search the vehicle. During his search of the vehicle, the officer allegedly found approximately 2.4 kilograms (5.3 pounds) of heroin in the vehicle.
The penalty for a conviction on the offense charged in the criminal complaint is a statutory minimum penalty of ten years and a maximum of life in federal prison. If convicted, the defendants will be deported after serving any prison sentence imposed. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Homeland Security Investigations and the New Mexico State Police. Special Assistant U.S. Attorney Joni Autrey is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Two Local Men Plead Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Antonio Whitehead, 31, and Richard Board III, 21, entered guilty pleas to an indictment charging them with aiding and abetting the distribution of methamphetamine. Stuart praised the investigation conducted by the Violent Crime and Drug Task Force West.
“Those who aid and abet are every bit as guilty of contributing to our drug crisis as the drug thugs who directly deal,” said United States Attorney Mike Stuart. “Nearly 1,100 West Virginians died last year as a result of overdose, primarily due to the poison peddlers who have made addiction their business. We are working aggressively and with a laser focus to zero in on poison peddlers, drug dealers and their agents and emissaries of despair.”
Whitehead admitted that on November 15, 2017, he met a confidential informant at Board’s residence in Huntington. The informant gave Board $1,000 for an ounce of methamphetamine. Board then gave Whitehead the money and Whitehead gave the informant approximately 28 grams of methamphetamine.
Whitehead and Board both face up to twenty years in federal prison when they are sentenced on December 17, 2018.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Two Illegal Aliens Indicted on Federal Drug Charges and Illegal Reentry after DeportationRead the Press Release
Jackson, TN – Two illegal aliens in West Tennessee have been indicted for conspiracy to distribute more than 50 grams of actual methamphetamine or ICE in the Union City, Tennessee area. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictments today.
On August 20, 2018, a federal grand jury in Jackson, Tennessee returned a three-count indictment that remained under seal until their arrests. The indictment contained counts against each defendant alleging violations under the Controlled Substances Act and illegal reentry after deportation. The charges stem from the defendants’ participation in a conspiracy to distribute and to possess with the intent to distribute ICE and illegal reentry into the United States after having been previously deported.
According to the charging instrument, a task force made up of special agents with the Drug Enforcement Administration and the Union City Police Department arrested the two subjects in an early morning raid on August 30, 2018, on federal drug trafficking charges and illegal reentry after deportation.
U.S. Attorney D. Michael Dunavant said, "This case combines two of the top priorities of the Department of Justice: illegal drug trafficking and criminal immigration enforcement. We work with our local and federal law enforcement partners to aggressively investigate and prosecute any and all suppliers that distribute illegal drugs in West Tennessee. At the same time, we work to identify, prosecute, and remove persons who violate our sovereign immigration laws, and our work focuses on criminal re-entry cases that will further deter and reduce illegality by criminal aliens. Clearly, these offenders pose a significant danger to public safety in Obion county and West Tennessee by their distribution of pure methamphetamine into the community."
The suspects arrested are:
Christino Alcazar-Ortiz, 42, Union City, Tennessee
Armando Alcazar-Ortiz, 37, Union City, Tennessee
Their arrests are the result of a yearlong investigation into a crystal methamphetamine (ICE) drug operation at Mi Tierra Caliente restaurant, owned by the defendants in Union City, Tennessee in which law enforcement officials have seized large amounts of methamphetamine, which was 95% pure.
Perry Barfield, Union City Police Chief said, "Our department would like to thank all the federal agencies involved in this operation, and especially for the working relations with our local drug enforcement officers. We are always grateful for any and all efforts that help rid our community of illegal drug activity."
If convicted, the defendants face not less than 10 years, up to life imprisonment; $1,000,000 fine and 5 years supervised release for the controlled substance violations; and not more than 20 years imprisonment, and a fine of $250,000 for the illegal reentry charges.
This case was investigated by the Drug Enforcement Administration (DEA) and the Union City Police Department.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless or until proven guilty.
Assistant U.S. Attorneys Jerry Kitchen and Lauren Delery are prosecuting this case on the government’s behalf.
Two High-Ranking Bloods Gang Leaders Sentenced to Twenty Years in Prison for Racketeering ConspiracyRead the Press Release
Two high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the set, who also served as “Chairman” of the UBN, and a second leader who held the rank of “Worldwide High” were each sentenced today to 20 years in prison for racketeering conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo, Light and Inferno, 45, of New York City, New York, was sentenced by Chief Judge Frank D. Whitney to serve 20 years in prison. James Baxton, aka Frank White and Grown, 44, of New York City, New York, was also sentenced by Judge Whitney to serve 20 years in prison. Both of these sentences will be served consecutively to the defendants’ current New York State sentences. Pedro Gutierrez, James Baxton, and Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 42, of Raleigh, North Carolina, had been convicted by a federal jury sitting in Charlotte on May 17, following a two-week trial. Cynthia Gilmore is awaiting sentencing.
“With today’s sentencings of two violent gang leaders, including the purported Godfather of the Nine Trey Gangsters, law enforcement has delivered yet another devastating blow to the Nine Trey Gangsters and the United Blood Nation,” said Assistant Attorney General Benczkowski. “The defendants committed crimes that spanned the East Coast, including trafficking deadly narcotics in North Carolina and New York and ordering a gang war in North Carolina. As demonstrated by the 61 defendants now adjudicated guilty in this case, when federal, state, and local law enforcement work together in sustained efforts, we can disrupt and erode violent prison and street gangs.”
“Drugs, thefts, guns, violent assaults, and murders are all crimes the Bloods commit every day to protect their turfs, increase their territory, control and recruit members, and intimidate rival gangs,” said U.S. Attorney Murray. “And all of it happens right here, in our neighborhoods, where honest, hard-working people are simply trying to raise their children without the fear of harm. We cannot overlook or underestimate the long-term impact of gangs on the well-being and prosperity of communities where gang activity is present. That is why the dismantling of criminal enterprises district-wide is both a priority for my office and a goal we share with law enforcement agencies throughout the Western District of North Carolina.”
In February 2017, President Trump directed the Department of Justice “to reduce crime in America,” and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General Rod Rosenstein mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said FBI Special Agent in Charge Strong. “The lengthy federal sentences they received today send a strong message to anyone who tries to fill the criminal void they leave behind. Do not be mistaken, we’ll come after you next with the full strength of our federal, local, and state law enforcement partners.”
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and “Godfather.”
Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, considered themselves “the last ones that God put in power” over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Trial evidence also established that Baxton was a “Worldwide High” of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates.
In all, 61 defendants have been adjudicated guilty in this case, including the two defendants who were found guilty at trial and sentenced today; 58 defendants have previously pleaded guilty in this investigation. This includes 10 defendants in high-ranking leadership positions:
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low.” Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
- Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of “High”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low;”
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN. Rosero was sentenced on July 31, to a sentence of 87 months in prison, to be served federally after completing a sentence in New York State;
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.” Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” Wilson was sentenced on July 30, to serve 82 months in prison.
The following 33 defendants have also pleaded guilty and have been sentenced in this investigation:
- Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
- Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
- Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
- Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
- Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
- Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
- Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25to serve 27 months in prison;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
- Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
- Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
- Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
- Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
- Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 15 defendants have also pleaded guilty and are awaiting sentencing in this case:
- Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
- Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
- Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
- John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
- Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
- Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence; and
- Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Two High-Ranking Bloods Gang Leaders Sentenced to 20 Years for Racketeering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Two high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the "Godfather" of the set, who also served as "Chairman" of the UBN, and a second leader who held the rank of "Worldwide High" were each sentenced today to 20 years in prison for racketeering conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo, Light and Inferno, 45, of New York City, New York, was sentenced by Chief Judge Frank D. Whitney to serve 20 years in prison. James Baxton, aka Frank White and Grown, 44, of New York City, New York, was also sentenced by Judge Whitney to serve 20 years in prison. Both of these sentences will be served consecutively to the defendants’ current New York State sentences. Pedro Gutierrez, James Baxton, and Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 42, of Raleigh, North Carolina, had been convicted by a federal jury sitting in Charlotte on May 17, following a two-week trial. Cynthia Gilmore is awaiting sentencing.
"With today’s sentencings of two violent gang leaders, including the purported Godfather of the Nine Trey Gangsters, law enforcement has delivered yet another devastating blow to the Nine Trey Gangsters and the United Blood Nation," said Assistant Attorney General Benczkowski. "The defendants committed crimes that spanned the East Coast, including trafficking deadly narcotics in North Carolina and New York and ordering a gang war in North Carolina. As demonstrated by the 61 defendants now adjudicated guilty in this case, when federal, state, and local law enforcement work together in sustained efforts, we can disrupt and erode violent prison and street gangs."
"Drugs, thefts, guns, violent assaults, and murders are all crimes the Bloods commit every day to protect their turfs, increase their territory, control and recruit members, and intimidate rival gangs," said U.S. Attorney Murray. "And all of it happens right here, in our neighborhoods, where honest, hard-working people are simply trying to raise their children without the fear of harm. We cannot overlook or underestimate the long-term impact of gangs
on the well-being and prosperity of communities where gang activity is present. That is why the dismantling of criminal enterprises district-wide is both a priority for my office and a goal we share with law enforcement agencies throughout the Western District of North Carolina."
In February 2017, President Trump directed the Department of Justice "to reduce crime in America," and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
"These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison," said FBI Special Agent in Charge Strong. "The lengthy federal sentences they received today send a strong message to anyone who tries to fill the criminal void they leave behind. Do not be mistaken, we’ll come after you next with the full strength of our federal, local, and state law enforcement partners."
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a "dog paw"; the acronym "M.O.B.," which stands for "Member of Bloods"; the words "damu," or "eastside"; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as "Billies."
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as "The 31," which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from "Scrap," "1-Star General" through "5-Star General," "Low," "High," and "Godfather."
Based on evidence introduced during the trial, Gutierrez was a "Godfather" of the Nine Trey Gangsters and had served since 2003 as the "Chairman" of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, considered themselves "the last ones that God put in power" over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Trial evidence also established that Baxton was a "Worldwide High" of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates.
In all, 61 defendants have been adjudicated guilty in this case, including the two defendants who were found guilty at trial and sentenced today; 58 defendants have previously pleaded guilty in this investigation. This includes 10 defendants in high-ranking leadership positions:
Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of "High," and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of "Low," and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of "High," and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of "Low." Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of "High";
Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort
Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of "High," and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of "Low;"
Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of "High," and to serving as an acting "Godfather" of the entire UBN. Rosero was sentenced on July 31, to a sentence of 87 months in prison, to be served federally after completing a sentence in New York State;
Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be "faded straight up." Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of "Low." Wilson was sentenced on July 30, to serve 82 months in prison.
The following 33 defendants have also pleaded guilty and have been sentenced in this investigation:
Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty
to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25to serve 27 months in prison;
Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 15 defendants have also pleaded guilty and are awaiting sentencing in this case:
Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to
racketeering conspiracy;
Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence; and
Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Two Columbia Men Plead Guilty to Prostitution OperationRead the Press Release
JEFFERSON CITY, Mo. – Two Columbia, Mo., men pleaded guilty in federal court today to their roles in a prostitution operation.
Barry Paul Manthe, 65, and Ronald James Clark, 67, each waived his right to a grand jury and pleaded guilty in separate appearances before U.S. Magistrate Judge Willie J. Epps to a federal information that charges them with using the internet to promote a racketeering enterprise, a prostitution business that operated out of a Columbia residence.
In a separate but related case, Kenneth Ronald Jones, 26, of Columbia, pleaded guilty on Aug. 6, 2018, to one count of the sex trafficking of a minor and two counts of transportation for illegal sexual activity by coercion and enticement.
FBI agents learned on June 29, 2016, that a 17-year-old runaway from Wisconsin – identified as “FV1” – was being held against her will and forced into prostitution by Jones. She was located at a residence in Columbia on that day and removed by law enforcement agents. Manthe and Clark operated a brothel at the residence.
FV1 told investigators that Manthe paid for escort advertisements on the website Backpage for the prostitutes utilizing the brothel. According to FV1, she was advertised under a pseudonym but the ads did not include her photograph. Jones found photographs of other females on the Internet and gave them to Manthe to post with the ad.
Clark collected the door fee from the prostitutes, which ranged from $10 to $30. FV1 gave the rest of the money she earned through prostitution to Jones. Clark applied the door fee income to the monthly bills, then split the remaining profit between himself and Manthe.
FV1 told investigators that she met Jones in May 2016 at a party in Milwaukee, Wis., and agreed to travel with him to Columbia to engage in prostitution. Within a few minutes of arriving at a Columbia residence that was used as a brothel, a man arrived soliciting prostitution. This man selected FV1 from the approximately five prostitutes present, and paid to have sex with her. FV1 subsequently engaged in prostitution almost every day, averaging two or three clients per day.
Although Jones knew that FV1 was 17 years old, he told everyone else at the brothel that L.V was 18 years old so she would be allowed to work there.
Another victim, identified as “FV2,” told police that she worked at the brothel every day and was advertised through Backpage. Jones physically abused her in the days prior to her running away in late May or early June 2016. She reported Jones pointed a 9mm handgun in her face and pulled the trigger, but the gun did not fire.
A third victim, identified as “FV3”, told investigators that Jones told her she needed to make money, and threatened to kick her to the streets if she did not do what he wanted. She witnessed Jones point guns and threaten the other victims.
Under federal statutes, Manthe and Clark are each subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Ashley S. Turner. They were investigated by the FBI, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Turlock Man Sentenced to 20 Years in Prison for Trafficking Child PornographyRead the Press Release
FRESNO, Calif. — Edward Paul Cragg, 38, of Turlock, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 20 years in prison for one count of receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
The prison term will be followed by 10 years of supervised release during which Cragg will be required to register as a sex offender, and his access to minors, computers, and the internet will be restricted. Cragg was also ordered to pay $3,000 to $5,000 in restitution to multiple victims whose images Cragg obtained and made available to others.
Evidence introduced at trial established that from approximately August 1, 2015, through March 1, 2016, Cragg used a file-sharing program to search for and save more than 130 child pornography videos. Some of the videos depicted images of infants or toddlers being subjected to sadistic or masochistic abuse.
In sentencing Cragg, Judge O’Neill found that Cragg had completely failed to acknowledge what he had done was wrong or criminal and described the defendant’s conduct as “beyond destructive” to the victims whose images were involved in the offense.
This case was the result of an investigation by the Turlock Police Department with assistance from the Ceres Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys David Gappa and Ross Pearson 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.
Tampa Man Sentenced to Nine Years for Credit Card Fraud and Identity Theft in Gas Pump Skimmer CaseRead the Press Release
Tampa, Florida – United States District Judge Charlene Edwards Honeywell today sentenced Yoel Graveran-Palacios (37, Tampa) to nine years in federal prison for conspiracy, credit card fraud, and identity theft. A federal jury found Yoel Graveran-Palacios and his twin brother, Noel Graveran-Palacios, guilty on April 24, 2018. Noel Graveran-Palacios is scheduled to be sentenced on September 19, 2018.
According to testimony and evidence presented at trial, Noel and Yoel Graveran-Palacios worked together, and with others, to place skimmers on gas pumps in the Tampa Bay area. Using the account numbers stolen from the skimmers, they made counterfeit credit cards and then used them to purchase merchandise including gas, toys, clothes, and gift cards, at area retailers. They then used the gift cards to purchase merchandise at home improvement stores, and later returned the items for cash. Trial evidence included hundreds of recovered stolen account numbers, as well as dozens of store surveillance videos featuring the conspirators using the counterfeit credit cards.
This case was investigated by the U.S. Secret Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
St. Croix Shooter and Convicted Felon Sentenced to Twenty-Three Years for Gun-Related ConvictionsRead the Press Release
St. Croix, USVI – District Court Judge Wilma A. Lewis, on August 31, 2018, sentenced Nathaniel Thomas, Jr. to eight years imprisonment for possession of a firearm by a felon, fifteen years imprisonment for unauthorized possession of a firearm, and five years imprisonment for reckless endangerment, United States Attorney Gretchen C.F. Shappert announced. The firearm sentences were imposed consecutively and the reckless endangerment sentence was imposed concurrently with the others. Judge Lewis also ordered Thomas to pay a fine of $2,000.00 and a special assessment of $100.00.
On March 13, 2018, a federal jury convicted Thomas after a two-day trial. According to the evidence presented at trial, Thomas drove a vehicle into the Gas For Less Service Station on St. Croix in the early morning hours of May 15, 2016. He was followed by individuals in a Ford Explorer. Thomas stopped his car, came out and hid between nearby vehicles as the Explorer reversed direction. At this point shots were being discharged. When the Explorer started to leave the service station, Thomas emerged and chased the Explorer on foot while discharging shots in the direction of the Explorer. He subsequently returned to his vehicle and left the scene. Individuals in the area ran for cover and hid during the shooting. Over fifty spent shell casings were recovered from the crime scene, many of which were on the nearby Queen Mary Highway. The Explorer collided with two vehicles and came to rest nearby. Bullet holes were discovered in the windshield, on the driver and passenger sides, and at the rear of the Explorer. Thomas was not authorized to possess a firearm and had previously been convicted of a felony offense.
Thomas faces additional federal charges stemming from his alleged escape on March 15, 2018 from the Golden Grove Correctional Facility, following his conviction two days earlier for the May 2016 shooting episode in St. Croix. Federal law enforcement agents located Thomas on April 7, 2018 in Puerto Rico.
This case was investigated by the Virgin Islands Police Department and by the Bureau of Alcohol Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States
Attorney Alphonso G. Andrews, Jr.
Rapid City Man Sentenced for Third Failure to Register as a Sex Offender ConvictionRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 4, 2018, by U.S. District Judge Roberto A. Lange.
Bradley Makes Room For Them, age 33, was sentenced to 20 months in federal prison, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Makes Room For Them was indicted by a federal grand jury on May 15, 2018. He pled guilty on June 27, 2018.
Makes Room For Them was convicted of Aggravated Sexual Abuse in September 2003. As a result of this conviction, he is required to register under the Sex Offender Registration and Notification Act. Makes Room For Them was convicted of Failure to Register as a Sex Offender in 2014 and again in 2016. In March 2018, Makes Room For Them was released from prison and began a period of supervised release. Initially Makes Room For Them properly updated his registration. In April 2018, Makes Room For Them updated his registration using a different address in Rapid City, but he subsequently failed to reside at that address. An arrest warrant was subsequently issued and on April 28, 2018, Makes Room For Them was arrested in Martin, South Dakota.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Makes Room For Them was immediately turned over to the custody of the U.S. Marshals Service.
Quebec Man Sentenced to 51 Months Imprisonment for Smuggling over 100 Handguns from Vermont to QuebecRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Alexis Vlachos, 41, of Montreal, Quebec, was sentenced today in United States District Court by Judge William K. Sessions III to 51 months imprisonment for smuggling of over 100 handguns from Vermont to Quebec. Vlachos previously pled guilty to conspiring to export, and actually exporting, firearms from the United States to Canada, without a license, in violation of the Arms Control Export Act.
As part of his guilty plea, Vlachos agreed to the following facts: From July 2010 to April 2011, Vlachos and other persons, including defendants Annette Wexler and Jaime Ruiz, executed a plan to smuggle over 100 handguns, purchased in Florida, to Quebec, Canada, by way of northern Vermont and northeast New York. As part of this conspiracy, Annette Wexler and another coconspirator purchased these handguns from multiple federally licensed firearms dealers in the Tampa, Florida area. At the time of purchasing these firearms at the gun stores, Wexler and a coconspirator made multiple misrepresentations about the nature of these purchases on forms required by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
After purchasing these firearms, Annette Wexler, Jaime Ruiz, and another coconspirator transported these firearms to Quebec through northeastern Vermont and northeastern New York. As part of the conspiracy, Vlachos would usually take custody of the firearms in Quebec, where he sold many of them.Some of the firearms smuggled into Quebec were first brought to the Haskell Free Library in Derby Line, Vermont by Annette Wexler and Jaime Ruiz. The Haskell Free Library building straddles the international border of Derby Line, Vermont and Stanstead, Quebec.
On at least two occasions, in about March of 2011, Annette Wexler and Jaime Ruiz worked together to stash several firearms contained in small backpacks inside the trashcan of the library bathroom. Wexler then coordinated with Vlachos, who had entered the library from Quebec, to retrieve the firearms from the bathroom. Vlachos then transported the firearms to Quebec, where he sold many of them.
In April 2011, a coconspirator in Florida purchased thirty-four firearms from a federally licensed firearms dealer in the Tampa, Florida area. Vlachos and Wexler then drove these guns to a remote section of northeastern Vermont near Lake Wallace. Vlachos hiked these firearms across the international border into Quebec.
This conspiracy involved the smuggling of at least 104 handguns from the United States to Canada. Neither Vlachos, nor any of the others involved in these offenses, obtained a license from the United States Department of State prior to exporting these handguns to Canada.
Annette Wexler previously pled guilty to conspiring to make false statements to licensed gun dealers and unlawful exportation. On July 25, 2017, United States District Judge J. Garvan Murtha sentenced Wexler to time-served and two years of supervised release. Ruiz also pled guilty to two offenses relating to this smuggling conspiracy but, due to his death by illness, the charges against him were dismissed.
Vlachos was originally charged with these offenses in January 2015 but the process of extraditing him to the United States took over two years to complete. Vlachos faced a maximum possible term of imprisonment of twenty years.U.S. Attorney Christina E. Nolan praised the multiagency investigation that led to the conviction of Vlachos. She stated: “Because Canadian and U.S. law enforcement agencies joined forces to conduct a thorough investigation and secure this conviction, a dangerous gun trafficker with a long criminal history is off the street and innocent Canadians and Americans are safer. This is an outstanding example of how we work as a cross-border law enforcement community with our partners in Quebec and support each other as we strive to secure justice and safer communities for our citizens.”
“Swanton Sector Border Patrol depends on the close and continued collaboration with our federal, state, local, tribal and international law enforcement partners to accomplish its mission to secure the border,” said Swanton Sector Acting Chief Patrol Agent Robert Garcia. “The country and border community is a safer place thanks to the hard work of all the partner agencies involved in this investigation.”
“Homeland Security Investigations is proud to stand with our domestic and foreign law enforcement partners in stemming the flow of cross-border arms trafficking,” said Peter C. Fitzhugh Special Agent in Charge, Homeland Security Investigations (HSI) Boston. “This investigation and the resulting prison sentence should be a clear indication of HSI’s commitment to disrupting and dismantling Transnational Criminal Organizations, both domestic and abroad.”
This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. Vlachos is represented by Paul Volk, Esq. of Burlington. This case was jointly investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Border Patrol. In addition, the Royal Canadian Mounted Police and the Surete du Quebec provided assistance in this investigation.Prior Sex Offender Sentenced to 10 Years for Child Sexual ObscenityRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man with a prior federal felony conviction for possessing child pornography was sentenced in federal court today for printing obscene images from a computer at a local public library.
David R. Buie, 63, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 10 years and one month in federal prison without parole. The court also sentenced Buie to a lifetime of supervised release following incarceration. The sentence in this case must be served consecutively to a four-month sentence imposed for violating the terms of his supervised release in an earlier, unrelated federal conviction for possessing child pornography.
On May 8, 2018, Buie was found guilty at trial of one count of possessing obscene images of the sexual abuse of children. Evidence introduced during the trial indicated that Buie printed images of child obscenity from a computer at a public library. On July 11, 2017, Buie printed about 50 pages from a computer he was using at the Mid-Continent Public Library at 9253 Blue Ridge Blvd., Kansas City, Mo. Buie didn’t realize that the printer stopped because it was out of toner, so his print jobs were interrupted and only about half of his pages were printed. After Buie left the library, the toner in the printer was changed and the remaining pages of his original print job were printed. As one of the librarians was cleaning up, she removed the remaining pages and observed they were color copies depicting minors from a graphic sex comic.
Library staff contacted the Kansas City, Mo., Police Department to make a report. Buie was identified because his library card was associated with the print job. Security cameras within the library showed him using a computer at the time of the printing.
The U.S. Probation Office was also contacted, because Buie was on supervised release for a prior federal felony conviction for possessing child pornography. When probation officers searched Buie’s residence, they found the images of child obscenity that Buie had printed at the library. Buie told investigators that he visited various public libraries about once a week to view child obscenity anime. Buie said he often printed the images on the library’s printer.
According to court documents, Buie violated the terms of his supervised release on several occasions prior to his criminal offense at the library by possessing incest-like storybooks, “barely legal” pornography and failure to register as a sex offender. While on supervised release, Buie was provided numerous opportunities to avail himself of treatment related to his sexual attraction to minor females, including individual therapy, group therapy, re-directive therapy, and inpatient therapy. He made no progress in therapy and was discharged.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Kansas City, Mo., Police Department and the U.S. Probation Office.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Portland Man Sentenced to Seven Years in Federal Prison for Drg and Firearm OffensesRead the Press Release
PORTLAND, Ore. – Christopher James Fleet, 23, of Portland, was sentenced today to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms when arrested by Multnomah County Sheriff’s Office (MCSO) deputies in August 2017.
On August 23, 2017, deputies from the MCSO Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.
During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.
Fleet previously pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense on May 1, 2018.
This case was investigated by the MCSO Special Investigation Unit and prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
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.
Operator of Loxahatchee Facility Sentenced for Inhumane Slaughter PracticesRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Larry S. Hortert, Regional Director, United States Department of Agriculture (USDA), Food Safety & Inspection Service (FSIS), announced that Victor H. Gonzalez, 53, of Loxahatchee, Florida, was sentenced on August 27, 2018, for his involvement in the inhumane slaughter of swine and the sale of swine meat for human consumption, in violation of the Humane Methods of Slaughter Act (HMSA), Title 71, United States Code, Section 1902(a) and the Federal Meat Inspection Act (FMIA), as amended, Title 21, United States Code, Section 610(b).
Gonzalez, who had previously pled guilty, was sentenced by U.S. District Judge Donald M. Middlebrooks, to three years of probation and a fine of $75,000. Judge Middlebrooks also barred Gonzalez from any activities connected with the slaughtering of meat products for any commercial sale or use for the term of probation. In imposing sentence, the Court exercised its discretion to vary upward and imposed a fine almost 10 times the guideline range for the economically driven offense.
According to the court record, including a Joint Factual Statement, Gonzalez was the president of El Milagro Nursery, Inc. (“Milagro”), a company with its principal place of business in Loxahatchee, Florida. Gonzalez was responsible for the day-to-day management and oversight of its activities, and engaged in the slaughtering, processing, handling, storing, and selling of meat and meat food products in commerce, for human consumption, including swine.
On December 17, 2016, federal officers conducted a surveillance and inspection visit at the Milagro facility. Employees were observed engaged in the slaughter and processing of swine for customers. The premises lacked proper, operable equipment to stun or otherwise render the animals insensible to pain, as required by law. The business practices at Milagro, as directed by Gonzalez, were not humane.
The HMSA established as the public policy of the United States, that the slaughtering or handling for slaughter of livestock, including swine, may only be carried out by humane methods. The law requires that such animals be rendered insensible to pain by one of the methods described in the law, prior to the animal being shackled, hoisted, thrown, cast, or cut. Title 7, United States Code, Sections 1901-1902(a).
Mr. Greenberg commended the investigative efforts of the USDA FSIS, Office of Program Evaluation, Enforcement and Review, Compliance & Investigations Division and thanked the Palm Beach County Agricultural Unit for their assistance. This matter was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Jersey Woman Sentenced to Prison for Heroin Distribution SchemeRead the Press Release
PITTSBURGH, PA. - A New Jersey resident has been sentenced in federal court to two years in prison on her conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Carolyn Spann, age 53, of Paterson, New Jersey.
According to information presented to the court, that from 2013 to September 2017, Spann conspired with others to possess with intent to distribute and distribute 100 grams or more of heroin.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
The Federal Bureau of Investigation along with the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police, conducted the investigation leading to the successful prosecution of Spann. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Moultrie Woman Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Maria Quijano, age 33, of Moultrie, Georgia, pled guilty to Possession with Intent to Distribute Methamphetamine before District Court Judge Leslie Abrams in Albany, Georgia on September 4, 2018. This plea subjects Ms. Quijano to a mandatory minimum sentence of 10 years in federal prison, up to a maximum sentence of life imprisonment, a maximum fine of $10 million, or both.
In her plea agreement, Ms. Quijano admitted that on September 24, 2016, Georgia State Patrol (GSP) Troopers were conducting an authorized child restraint checkpoint in Grady County. Ms. Quijano stopped at the checkpoint, and a GSP trooper noticed the smell of burnt marijuana coming from her car. A search of the car revealed 1 large bag of methamphetamine, 18 small baggies of methamphetamine, a Jimenez Arms 9mm handgun, a digital scale, and a small quantity of marijuana. Lab testing showed the methamphetamine weighed 163 grams with a purity of 79%.
Ms. Quijano was transported to the Sheriff’s office, where she waived her Miranda rights and spoke to the police. Ms. Quijano admitted that she was working off a debt to her drug suppliers by picking up drugs in Florida and Texas for them, and she had been doing so for 2-3 months. Ms. Quijano explained that she would transfer a portion of the methamphetamine to a supplier, and that she was responsible for selling the rest. Ms. Quijano admitted that the gun belonged to her.
The case was investigated by the Grady County Sheriff’s Department, the Georgia State Patrol, and the Georgia Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Leah E. McEwen.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Mission Residents Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that two Mission, South Dakota, individuals have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession of a Firearm During a Drug Trafficking Crime, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Walter Willard Wright, age 36, and Micole Lynn Menard, age 36, were indicted on August 13, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on August 31, 2018, and they both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, up to lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on between October 1, 2016, and January 31, 2017, Wright and Menard knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. The Indictment further alleges that on January 18, 2017, Wright and Menard, being unlawful users of and addicted to a controlled substance, did knowingly possess multiple firearms. The charges are merely accusations and Wright and Menard are presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Wright was released on bond, and Menard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Man Sentenced for Immigration CrimeRead the Press Release
Defendant had two prior felony convictions and three prior deportations
HUNTINGTON, W.Va. – A Mexican national man was sentenced to “time served” for the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Eduardo Martinez-Campeano, 47, has been in federal custody for nearly five months. Martinez-Campeano is also subject to deportation proceedings. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement.
“Two prior felony convictions and three prior deportations,” said United States Attorney Mike Stuart. “Illegal aliens pose a tremendous danger to our citizens. We prosecute 100 percent of these cases and will continue to do so. My advice to those who want to join in the greatness of this nation – GET IN LINE AND WAIT YOUR TURN.”
On April 10, 2018, Martinez-Campeano was traced to a hotel in Huntington, West Virginia by members of ICE after receiving a tip that defendant was in the country illegally and working at a restaurant in Barboursville, West Virginia. ICE agents approached Martinez-Campeano and he surrendered to them. Agents promptly confirmed that Martinez-Campeano was not in the United States legally, and took him into federal custody.
Martinez-Campeano fingerprints matched him to a 2007 Missouri felony Forgery conviction. After his felony sentence in Missouri was discharged, Martinez-Campeano was deported from the United States. Martinez-Campeano reentered the United States and was removed from the United States for a second time in 2010. Sometime afterword, Martinez-Campeano reentered the United States and was captured in Texas. He was convicted of the federal criminal offense of Reentry of a Removed Alien in 2012. Once again, defendant Martinez-Campeano was deported from the United States. Martinez-Campeano illegally reentered the United States for a fourth time prior to his capture in 2018. Martinez-Campeano admitted to ICE agents that he was a Mexican citizen subject to deportation proceedings. He entered a guilty plea on June 4, 2018.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Robert C. Chambers presided over the hearing.
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Maryland Man Sentenced to Prison in Bank Scam That Defrauded Victims Out of over $560,000Read the Press Release
A Maryland resident was sentenced today to 33 months in prison for defrauding victims into paying for falsified bank documents from a bank in the Dominican Republic.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
Mohammed Mohajer, 63, of Silver Spring, Maryland, previously pleaded guilty in the U.S. District Court for the Middle District of Florida to one count of wire fraud. U.S. District Judge Sheri Polster Chappell presided over the sentencing and also ordered Mohajer to serve three years of supervised release following his prison sentence, forfeit $194,000, and pay restitution in the amount of $565,000 to two victims.
According to the defendant’s admissions, Mohajer falsely told victims that he had a relationship with a bank in the Dominican Republic. He represented to the victims that in exchange for an up-front payment, he could help them access credit at the bank, and that the bank would issue SWIFT interbank messages to the victims’ designated banks showing that the victims had access to those funds. In fact, Mohajer had no relationship with the Dominican bank and provided the victims with fake documents that falsely showed that their promised bank documentation had been transmitted. In total, Mohajer defrauded the victims out of $565,000.
The investigation was conducted by the FBI. Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jesus Casas of the Middle District of Florida prosecuted the case.
If you believe that you have been a victim of this or a similar fraud scheme, please contact the FBI Washington Field Office at (202) 278-2000.
Man Pleads Guilty to Robbing Broken Arrow QuikTripRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Devon Deshon Thomas, 23, of Tulsa, pleaded guilty Tuesday to robbery of a Broken Arrow QuikTrip using coercion through force and fear.
The United States prosecuted Thomas under the Hobbs Act, which specifically targets violent criminals who negatively impact interstate commerce in any way. Thomas entered the plea to the entire indictment and is scheduled for sentencing on December 5, 2018.
Thomas admitted to robbing a Broken Arrow QuikTrip, located at 3502 West Kenosha Street, on May 30, 2018. Shortly after 3:30 a.m., two masked subjects brandishing what appeared to be firearms forced the QuikTrip attendant to open the cash register. The two stole nearly $300, then fled from the store in a four-door sedan with a damaged front-end.
U.S. Attorney Trent Shores stated, “In a collaborative effort to keep our communities safe, my office will consistently prosecute violent offenders as part of the Project Safe Neighborhoods initiative, a program reenergized last year due to its success in curbing violent crime. My office continues to work closely with law enforcement in the Northern District of Oklahoma to bring these criminals to justice.”
Through the course of the investigation, the Broken Arrow Police Department, in conjunction with the Federal Bureau of Investigation, linked Thomas to the vehicle used in the crime and identified him as one of the two subjects involved. Investigators then executed a search warrant and discovered two black air-propelled handguns that resembled actual firearms, as well as the clothes and mask matching descriptions previously provided to police. The two suspects were further implicated in surveillance video from a nearby Wal-Mart, where they could be seen shoplifting the air-propelled handguns shortly before the crime.
This prosecution was part of the Department of Justice’s Project Safe Neighborhoods initiative and resulted from a joint investigation conducted by the Broken Arrow Police Department, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Lower Brule Man Sentenced for Domestic AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on September 4, 2018, by U.S. District Judge Roberto A. Lange.
Cody Joseph Crazy Bull, age 27, was sentenced to 60 months in federal prison, 3 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crazy Bull was indicted by a federal grand jury on February 14, 2018. He pled guilty on June 12, 2018.
The conviction stems from an incident between October 14, 2017, and October 17, 2017, when Crazy Bull and his dating partner got into an argument and Crazy Bull verbally and physically assaulted her by briefly strangling her, grabbing and twisting her arm, and pulling chunks of her hair out.
At the time of the assault, Crazy Bull had a final conviction on at least two separate prior occasions, for offenses that would have been, if subject to Federal jurisdiction, an assault against a spouse and intimate partner.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Crazy Bull was immediately turned over to the custody of the U.S. Marshals Service.
Last of Nearly Two Dozen Defendants Sentenced to Federal Prison for His Role in a Drug Trafficking ConspiracyRead the Press Release
BLUEFIELD, W.Va. – The last of nearly two dozen defendants was sentenced today to federal prison for his role in a drug trafficking organization, announced United States Attorney Mike Stuart. Shaun Givens, 40, of Beckley, was sentenced to 5 years in federal prison. Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“The last of nearly two dozen drug thugs that no longer comprise a drug trafficking organization,” said United States Attorney Mike Stuart. “Out of business and behind bars – exactly what we want for every drug dealer and poison peddler in West Virginia. Great job by my prosecutor and our federal, state and local law enforcement partners.”
Shaun Givens previously admitted at his plea hearing that between August 2016 and June 28, 2017, he participated in a drug trafficking organization that distributed cocaine and heroin in and around Raleigh County. Givens admitted that during this time period, he received in excess of 500 grams of cocaine from other members of the drug trafficking organization that he distributed in the southern district of West Virginia. Givens also admitted that on June 28, 2017, police officers executed a search warrant at his residence in Beckley. During the execution of the search warrant, officers found over seven grams of a mixture containing heroin and fentanyl, a small amount of cocaine base, seven firearms, and $1,127 in cash that defendant admitted were the proceeds of his illegal drug trafficking.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
All of the other defendants in this case have already been sentenced. Velarian Carter of Beckley was recently sentenced to 240 months, or 20 years in federal prison for his participation in this drug trafficking organization. His sentence was ordered to run consecutively to a 20 year sentence Mr. Carter is already serving on unrelated drug charges. Detria Carter of Beckley, the sister of Velarian Carter, was recently sentenced to 151 months, or 12 years and seven months in federal prison. Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, were sentenced to 12 years, and 16 years and 8 months in prison, respectively. Rory White of Montgomery was sentenced to 125 months in federal prison. Tiffany Ramsey, also from Boomer, was sentenced to 46 months in federal prison. Dominic Copney, of Beckley, has been sentenced to 2 years in federal prison. Donald Scalise, of Montgomery, was sentenced to 3 years in federal prison for conspiring to distribute oxycodone.
On July 10 and July 11, 2018, Judge David A. Faber sentenced Esau Burnett, of Beckley, to 66 months in federal prison, Shawn Akiem Anderson, of Mount Hope, to 108 months in federal prison, and Shaun Jones, also of Beckley, to 120 months in federal prison. He also sentenced to Jonathan V. Moore, and Charles Hill, both of Beckley to 97 months and 60 months, respectively. Corey Larkin, of Beckley, was previously sentenced to 188 months in federal prison after he was determined to be a career offender.
David Shaun Coleman of Boomer was previously sentenced to 60 months in federal prison, while Rashaun Carter of Beckley and Derrick Staples of Charleston were each sentenced to 121 months in federal prison. Jonathan O. Brockman, the brother of George E. Brockman, II, of Kimberly, Fayette County, was sentenced to nine years in federal prison. Coleman, Carter, Staples and Brockman were also sentenced by Senior Judge David A. Faber.
On August 13, 2018, Judge David A. Faber sentenced James Rodney Staples, of Woodbridge, VA, to 151 in federal prison, Karl Funderburk, of Teays Valley, to 60 months in federal prison, and George E. Brockman, II, of Montgomery, to 108 months in federal prison.
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Jemez Pueblo Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
ALBUQUERQUE – Gerald Toya, 40, an enrolled member and resident of Jemez Pueblo, N.M., pled guilty on Aug. 31, 2018, to assaulting a federal officer.
Toya was arrested on May 24, 2018, on a two-count indictment charging him with assaulting a federal officer, and assault with a dangerous weapon. According to the indictment, Toya committed the offenses on Nov. 28, 2017, on the Jemez Pueblo in Sandoval County, N.M.
On Aug. 31, 2018, Toya pled guilty to assaulting a federal officer. In entering the guilty plea, Toya admitted that on Nov. 28, 2017, he threw a glass bottle at a federal law enforcement officer engaged in the performance of his official duty. Toya acknowledged that the glass bottle struck the officer in the hip.
At sentencing, Toya faces a maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Pueblo of Jemez Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
Houston Psychiatrist Sentenced to More Than 12 Years in Prison for Role in $155 Million Medicare Fraud SchemeRead the Press Release
A Houston psychiatrist was sentenced today to 150 months in prison for his role in a $155 million Medicare fraud scheme involving false and fraudulent claims for psychiatric services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (IRS-CI) Houston Field Office, Special Agent in Charge Kristin Osswald of the Railroad Retirement Board Office of Inspector General’s (RRB-OIG) Chicago Regional Office, and Unit Division Chief Stormy Kelly of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Riyaz Mazcuri, 67, a former attending psychiatrist at Riverside General Hospital (Riverside) of Houston, was sentenced by U.S. District Judge Vanessa D. Gilmore of the Southern District of Texas. Judge Gilmore also ordered Mazcuri to pay $20,607,410.22 in restitution to Medicare and $2,250,789.69 in restitution to Medicaid.
On May 23, 2017, following a five-day trial, a jury convicted Mazcuri of one count of conspiracy to commit health care fraud, and five counts of health care fraud.
According to the evidence at trial, from 2006 until February 2012, Mazcuri and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Riverside, approximately $155 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for patients with severe mental illness.
In addition, evidence presented at trial showed that Mazcuri indiscriminately admitted and readmitted patients into these intensive psychiatric programs – often for years on end – many of whom suffered from severe Alzheimer’s or dementia and were unable to participate in the treatment purportedly provided at the PHPs, and who therefore did not qualify for the services. Evidence also showed that Mazcuri falsified medical records and signed false documents to make it appear as if patients admitted to the PHPs qualified for, required, and actually received the intensive psychiatric services.
Evidence also demonstrated that Mazcuri personally billed Medicare for psychiatric treatment he purportedly provided to Riverside’s PHP patients – treatment he never actually provided. Mazcuri’s signature on patient documents enabled Riverside to bill Medicare for over $55 million of the total $155 million that Riverside billed Medicare for fraudulent psychiatric services, the evidence showed.
To date, 15 others have been convicted of offenses based on their roles in the fraudulent scheme, including Earnest Gibson III, 73, the former president of Riverside; Earnest Gibson IV, 41, the operator of one of Riverside’s PHP satellite locations; Regina Askew, 53, a group home owner and patient file auditor; and Robert Crane, 61, a patient recruiter, all of whom were convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison. Earnest Gibson IV was sentenced to 20 years in prison. Regina Askew was sentenced to 12 years in prison. Robert Crane was sentenced to serve 30 months in prison. Mohammad Khan, 68, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison. Sharon Iglehart, 61, a physician, was also convicted after a jury trial in August 2015. She was sentenced to 12 years in prison. Walid Hamoudi, 66, a physician, pleaded guilty in August 2015. He was sentenced to five years in prison.
The case was investigated by the FBI, HHS-OIG and IRS-CI with assistance by RRB-OIG and MFCU. The case was prosecuted by former Assistant Chief Ashlee Caligone McFarlane and Trial Attorneys Aleza Remis and Kevin Lowell of the Criminal Division’s Fraud Section.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 areas nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Head of Multinational Drug Organization Sentenced to Life ImprisonmentRead the Press Release
A man responsible for distributing hundreds of pounds of ice methamphetamine was sentenced today to a life sentence in federal prison.
Jose Maria Valencia, age 44, from La Ruana, Michoacán, Mexico, received the prison term after a February 6, 2018, guilty plea to conspiracy to distribute at least 500 grams of methamphetamine by a drug felon.
In 2013, Valencia was sent to California state prison after being convicted of conspiracy to commit murder. Despite his incarceration, Valencia continued to run his drug organization. Using contraband items such as cell phones, Valencia arranged to import methamphetamine from Mexico into the United States. Once the methamphetamine arrived in the United States, it would be transported to various locations, including Iowa, typically concealed in vehicles. Defendant was responsible for recruiting, managing, and supervising individuals in the organization. During the course of the conspiracy, defendant was responsible for distributing at least 250 pounds of ice methamphetamine.
Valencia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Valencia was sentenced to life imprisonment. There is no parole in the federal system.
“Valencia continued to push hundreds of pounds of deadly methamphetamine into our community despite being incarcerated in California for conspiracy to commit murder,” said U.S. Attorney Peter E. Deegan, Jr. “This case is a reminder that we must always remain vigilant in our effort fight back against national and international drug trafficking organizations.”
Valencia is being held in the United States Marshal’s custody until he can be returned to state custody in California.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2041.
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Fugitive Lawyer Pleads Guilty to Jumping BondRead the Press Release
Michael R. Casey, 71, who was apprehended in Mexico after being a fugitive for over four years, pled guilty on August 31, 2018 to knowingly failing to appear in court in 2014. United States District Judge Federico A. Moreno accepted the guilty plea in the bond jump matter, Case No. 14-20619-Cr-Moreno, and scheduled a sentencing hearing for November 15, 2018.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Amos Rojas, Jr., United States Marshal, United States Marshals Service (USMS), Southern District of Florida, made the announcement.
When Casey jumped bond, he was pending trial on federal charges related to an alleged $20 million investment fraud scheme. The investment fraud case is scheduled for trial before U.S. District Judge K. Michael Moore on October 29, 2018.
According to the court record, including facts agreed to by the defendant at the failure to appear plea hearing, Casey had been arrested and released on bond in September 2012 in United States v. James C. Howard, III, et al., Case No. 12-20630-Cr-Lenard (this matter is now pending before Judge Moore). Pursuant to bond conditions, the defendant’s travel was restricted to the Southern District of Florida, with the exception that he could travel to visit his mother in North Carolina with prior permission from the U.S. Probation Office.
During the course of the fraud case, U.S. District Judge Joan A. Lenard entered multiple Orders requiring Casey and his co-conspirators to be present at all hearings and conferences. Casey was present at status conferences from 2012 to 2014, including the one where the fraud trial was set for May of 2014. A further status conference was set for April 29, 2014.Casey received permission to travel, via car, to North Carolina and back to South Florida, prior to the April 29, 2014 status conference. On April 21, 2014, Casey rented a car in Tallahassee, Florida, drove over 2,000 miles, and returned the car on April 25, 2014 in Laredo, Texas, a city on the United States border with Mexico. On April 29, 2014, Judge Lenard held the status conference at the U.S. District Court in Miami-Dade County, Florida. Casey knowingly failed to appear at the hearing and Judge Lenard issued a bench warrant.
According to allegations contained in the court record of the fraud case, Casey, originally of Fort Lauderdale, and co-defendants Patricia S. Saa, of Tampa, Louis N. Gallo, III, of Parkland, and James C. Howard, III, of Parkland, defrauded individuals who invested in Commodities Online LLC (COL). From approximately January 2010 through April 2011, Casey and his co-conspirators allegedly used material false and fraudulent representations and material omissions to obtain over $20 million from over 700 investors.
Casey and his co-conspirators allegedly used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. Casey and his co-conspirators represented to investors that COL had a track record of profits on these purported contracts. However, COL did not have profits.
Casey and his co-conspirators also allegedly made material misrepresentations and omissions about the leaders of COL. After mid-2010, Casey and his co-conspirators represented that Howard, who had a prior federal criminal conviction, was no longer managing COL, when in fact, Howard remained in charge.
In September 2013, Howard pled guilty to one count of conspiracy to commit mail and wire fraud. In December 2013, Howard was sentenced to 189 months in prison.
In August of 2014, Gallo, pled guilty to one count of conspiracy to commit mail and wire fraud. In October of 2014, Gallo was sentenced to 168 months in prison.
In July of 2014 Balbirer, an assistant to Gallo, pled guilty to two counts of money laundering. In September of 2015, Balbirer was sentenced to 17 months in prison.
In addition, other co-conspirators in the COL fraud scheme were charged separately with conspiracy to commit mail and wire fraud. In November 2013, three defendants pled guilty for their involvement in the scheme. In February 2015, Timothy Josselson was sentenced to 38 months in prison, in Case No. 13-20730-Cr-Altonaga. In February 2015, Kathryn Josselson was sentenced to 36 months in prison, in Case No. 13-20731-Cr-Moore. In March 2015, Robert Lananna was sentenced to 40 months in prison, in Case No. 13-20732-Cr-Ungaro.
Mr. Greenberg commends the investigative efforts of the FBI and USMS in this matter. Mr. Greenberg thanks the Mexican government for its assistance with the defendant’s apprehension. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Franklin Man Sentenced to Federal Prison for Hit & Run on the Natchez Trace ParkwayRead the Press Release
NASHVILLE, Tenn. – September 4, 2018 – Marshall Neely III, 59, of Franklin, Tennessee, was sentenced today in U.S. District Court to 10 months in prison, after pleading guilty to charges stemming from a July 2017 incident where he struck and injured a bicyclist on the Natchez Trace Parkway and left the scene, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Chief U.S. District Judge Waverly D. Crenshaw, Jr., also ordered Neely to pay $2,260.00 in restitution to the victim.
Neely was indicted in July 2017, after he struck and injured a bicyclist with his vehicle while driving on the Natchez Trace Parkway on July 8, 2017. After striking the bicyclist, Neely failed to stop and left the scene. He pleaded guilty on May 21, 2018, to reckless aggravated assault; lying to a federal agent; and obstruction of justice.
According to court documents, on the morning of July 8, 2017, two individuals were riding their bicycles on the Natchez Trace Parkway when one was struck from behind by a black Volvo SUV. The impact knocked the rider to the ground and destroyed the bicycle. The bicyclist sustained injuries and was transported to Williamson County Medical Center by ambulance. The other bicyclist had a helmet-mounted camera which recorded the collision, as well as the Volvo driving away from the scene. The video of this incident was later posted online and contained a visible license plate and other decals which subsequently led to the identification of the vehicle and its driver, Marshall Neely III.
That same evening, law enforcement officers arrived at Neely’s house and found him unconscious on the floor. Neely later admitted that he had been driving on the Natchez Trace Parkway earlier in the day and claimed someone threw a bicycle at his car. He also admitted that after seeing the video posted online, he removed the decals from the rear window of his car because he knew the decals would lead to his identification.
This case was investigated by the National Park Service and the Williamson County Sheriff’s Department. Assistant U.S. Attorney Sara Beth Myers prosecuted the case.
Former Prince George’s County State Delegate Sentenced to 4 Years in Federal Prison for Accepting Bribes and for ConspiracyRead the Press Release
Greenbelt, Maryland –U.S. District Judge Paula Xinis sentenced former Maryland State Delegate Michael Lynn Vaughn, age 60, of Bowie, Maryland, today to four years in prison, followed by three years of supervised release, for a bribery conspiracy in connection with a scheme in which he accepted bribes in exchange for influencing the performance of his official duties. A federal jury convicted Vaughn of conspiracy and four counts of bribery on March 1, 2018. At today’s sentencing hearing, the government also presented evidence, which Vaughn did not dispute, that Vaughn stole campaign funds from early 2005 through 2016, totaling over $100,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“We expect our elected officials to place the interests of the citizens above their own,” said United States Attorney Robert K. Hur. “When they violate the trust placed in them and break the law, the U.S. Attorney’s Office will bring them to justice.”
According to court documents and evidence presented at his two-week trial, Vaughn was a Maryland State Delegate from January 2003 until January 2017, representing District 24, which covered portions of Prince George’s County, Maryland, and was the Deputy Majority Whip and a member of the Economic Matters Committee.
According to the evidence presented at trial, from January 2015 through April 2016, Vaughn conspired with former Prince George’s County Liquor Board member and later, Chief Liquor Inspector, David Dae Sok Son, liquor store owners Young Jung Paig, Shin Ja Lee, and others in order to enrich himself personally, in exchange for Vaughn performing and agreeing to perform favorable official action.
Specifically, the evidence showed that Vaughn took $19,000 in cash bribe payments from Paig, Lee, and others, in exchange for influencing and voting for the 2015 Sunday Sales Bill, which established up to 100 Sunday liquor sales permits in Prince George’s County for holders of Class A licenses and Class B licenses with an off-sale privilege; and the related 2016 Additional Sunday Permits Bill, both of which became Maryland law. Vaughn voted in favor of the bills, which benefitted Paig and Lee’s liquor stores, in the Prince George’s County Delegation meetings, in the Economic Matters Committee, and in the Maryland House of Delegates.
Also according to court documents and information presented at today’s sentencing hearing, from early 2005 through 2016, Vaughn diverted money donated to his campaign finance committee, Friends of Michael Vaughn (FOMV), for his personal use, totaling over $100,000. A candidate, such as Vaughn, is prohibited from personally making disbursements from a political committee established to promote his candidacy. According to the information presented at the sentencing hearing, the government’s sentencing memo, and other court documents, Vaughn withdrew campaign funds from the FOMV account to use for personal expenses, including electronically transferring money from the FOMV campaign account directly to Vaughn’s personal bank account, making payments to his personal credit card account, and making payments of his personal income tax to the Internal Revenue Service. In addition, during an interview on April 12, 2016, Vaughn admitted to stealing funds from his campaign account and spending them on a number of things, including his personal mortgage, his son’s school tuition, and credit card bills. As part of the wire fraud conduct, Vaughn received campaign contributions, deposited them into the FOMV account, and then converted them to his personal use without identifying the contributions on campaign finance reports made to the Maryland State Board of Elections. In order to conceal the scheme from FOMV and the FOMV campaign contributors, Vaughn caused the filing of fraudulent campaign finance reports with the Maryland State Board of Elections. For example, as of January 14, 2015, the campaign finance report filed with the Maryland State Board of Elections showed a balance in the FOMV account of $64,462.44. The expenditures identified in the report did not include substantial cash withdrawals made by Vaughn, and the account actual balance on that date, according to bank statements, was only $1,654.36.
United States Attorney Robert Hur commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Former Hamden Police Officer Who Distributed Steroids is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRYAN KELLY, 46, of Madison, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which KELLY must serve in home confinement with location monitoring, for distributing anabolic steroids. Judge Bolden also ordered KELLY to pay a $1,000 fine and perform 100 hours of community service.
According to court documents and statements made in court, in December 2017, the Statewide Narcotics Task Force West conducted a court-authorized search of an individual’s residence in Hamden and seized approximately 25,000 pills and 530 vials of anabolic steroids. Subsequent analysis of the individual’s cell phone revealed numerous text messages relating to KELLY’s purchase and redistribution of steroids. At the time of the search, KELLY was a police officer with the Hamden Police Department.
The investigation revealed that KELLY purchased steroids from his source of supply since approximately October 2016. He personally used some of the steroids and distributed some to friends and colleagues.
On May 21, 2018, KELLY pleaded guilty to one count of possession with intent to distribute anabolic steroids.
KELLY has retired from the Hamden Police Department.
This matter has been investigated by the Connecticut State Police, Statewide Narcotics Task Force West, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan with the assistance of the State’s Attorney for the New Haven Judicial District.
Former Coshocton Public Housing Director Pleads Guilty to Embezzling HUD FundsRead the Press Release
COLUMBUS, Ohio – The former Executive Director and Chief Financial Officer of the Coshocton Metropolitan Housing Authority (CMHA) has pleaded guilty in a federal public corruption case.
Gregory J. Darr, 64, of Coshocton, Ohio, pleaded guilty in U.S. District Court today to embezzling more than $431,000 from the United States Department of Housing and Urban Development (HUD).
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; Ohio Attorney General Mike DeWine; Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service; Coshocton County Sheriff Timothy L. Rogers, Richmond County (Georgia) Sheriff Richard Roundtree and Kimberly Cheatle, Special Agent in Charge, U.S. Secret Service, Atlanta; announced the plea entered into before Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, the Coshocton housing authority received federal HUD money each year to provide housing to low-income households. Money was provided for traditional public housing programs like Section 8 vouchers, as well as for certain “tenant participation activities” like a resident council – an organization of tenants that represents other public housing residents and puts on programming to support them.
Darr served as the Executive Director of the CMHA Resident Council, even though he had also been serving as the Executive Director and Chief Financial Officer of CMHA since 2001. Federal regulations prohibited him from serving in the resident council leadership capacity or from benefitting financially from the council.
“Over time, Darr consolidated power and authority over both CMHA and the resident council. Abuse of these positions of public trust enabled him to embezzle and convert federal funds and to conceal his crimes from others,” U.S. Attorney Glassman said.
Beginning in January 2012 and continuing through September 2017, Darr repeatedly embezzled money from both the CMHA and the Resident Council operating accounts for his own personal gain and for the gain of co-defendant Eric L. Blackwell, 54, of Coshocton.
Darr used the money for, among other things, restaurant bills, out-of-state expenses made in connection with real-estate ventures he co-owned with Blackwell, home improvements made to properties that he or Blackwell owned, and a marina slip and lot rental at Spend-a-Day Marina on Indian Lake, where he and Blackwell maintained a boat and mobile home.
While on the clock with CMHA, Darr routinely traveled to Georgia to manage his investment properties, all while being paid by CMHA to manage the agency’s day-to-day operations in Coshocton. He and Blackwell also improperly used CMHA office space and supplies to operate their joint business ventures.
In August 2017, Darr learned of a federal investigation into his unlawful activities when agents with the HUD Office of Inspector General executed search warrants at CMHA. He thereafter took steps to willfully obstruct and impede the investigation, by falsifying resident council meeting notes and attempting to conceal records relevant to the investigation.
Relatedly, Darr and Blackwell falsified claims to obtain monthly housing assistance payments on behalf of purported tenants who never actually resided in a housing project managed by the two defendants in Augusta, Ga.
Darr pleaded guilty to conspiring to embezzle money from the United States, a crime punishable by up to five years in prison. As part of his plea, Darr has agreed to pay restitution to HUD in the amount of $431,668.45.
Blackwell has also been charged with and has agreed to plead guilty to conspiring to embezzle money from the United States.
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from them.”
“Greg Darr violated the public trust and stole from the people he was supposed to serve,” Ohio Attorney General Mike DeWine said. “My office’s Economic Crimes Unit, acting on information received from the Coshocton County Sheriff’s Office, launched an investigation that uncovered a pattern of theft and abuse at the Coshocton Metropolitan Housing Authority. I sincerely appreciate the hard work our local and federal partners put into pursuing the case and holding this man accountable. Together we will continue to root out public corruption.”
U.S. Attorney Glassman commended the investigation of this case by federal and local law enforcement in Ohio and Georgia, as well as Assistant United States Attorneys Noah R. Litton and J. Michael Marous, who are representing the United States in this case.
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Florida Resident Sentenced to Prison for Stealing Government Funds and Obstructing the IRSRead the Press Release
A Ft. Myers, Florida man was sentenced to 18 months in prison for stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. Moreover, Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
In addition to the term of prison imposed, U.S. District Judge Sheri Polster Chappell ordered Kalmar to serve three years of supervised release, forfeit $274,019 and a piece of real estate to the United States, and pay $274,019 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague and Grace E. Albinson of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Resident Pleads Sentenced to Prison for Stealing Government Funds and Obstructing the IRSRead the Press Release
Fort Myers, FL - A Ft. Myers, Florida man was sentenced to 18 months in prison for stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. Moreover, Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
In addition to the term of prison imposed, U.S. District Judge Sheri Polster Chappell ordered Kalmar to serve three years of supervised release, forfeit $274,019 and a piece of real estate to the United States, and pay $274,019 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague and Grace E. Albinson of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Defendants Charged in Manhattan Federal Court with Racketeering and Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of a superseding indictment charging five defendants with various racketeering and narcotics offenses. Three defendants are charged in connection with their roles in the August 2, 2009, murder of Derrick Moore, 22, in the Bronx.
One of the defendants, LUIS ORTIZ, 41, was presented last week before United States Magistrate Judge Barbara C. Moses. Two of the defendants, HECTOR MARRERO, 27, and PETER GONZALEZ, 29, were arrested this morning and will be presented later today before United States Magistrate Judge Henry B. Pitman. The remaining two defendants, STEVEN BROWN, 39, and RAFAEL REYES, 37, are already in federal custody on other charges, and will be presented at a later date. The case has been assigned to United States District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Geoffrey Berman said: “As alleged in the superseding indictment, members of the Taylor Avenue and Creston Avenue Crews wreaked havoc on the streets of New York. On August 2, 2009, that violence resulted in the murder of Derrick Moore. He was 22 years old. Today, thanks to the dedication and perseverance of the NYPD, the DEA, and HSI, the defendants face charges for their alleged crimes.”
HSI Special Agent-in-Charge Angel M. Melendez said: “The members of these two crews are alleged to have been in involved in a slew of illegal activity ranging from drug trafficking to committing murder. We have seen the violence of street gangs bleed out into our communities, pushing their deadly drugs and committing violent acts. Strong collaborative efforts and information sharing are the foundation for law enforcement in New York to be more effective in ridding the streets of these alleged criminals.”
DEA Special Agent-In-Charge James J. Hunt said: “This investigation linked a brutal crime to members of a drug gang, which exemplifies the relationship between drug trafficking and violence. I commend our law enforcement partners on their hard work and collaboration.”
According to the allegations contained in the superseding indictment[1] and statements made in court:
The Taylor Avenue Crew was a criminal enterprise that operated principally in and around Taylor Avenue in the Bronx, New York, from at least 2007 up to and including 2015. Members of the Taylor Avenue Crew sold crack cocaine and committed acts of violence in that area.
The Creston Avenue Crew was a criminal enterprise that operated principally in and around Creston Avenue in the Bronx, New York, from at least 2003 up to and including 2011. Members of the Creston Avenue Crew sold cocaine and marijuana, and committed acts of violence, in that area.
Members of the Taylor and Creston Avenue Crews associated with each other and assisted each other by, among other things, carrying out acts of violence on each other’s behalf upon request by the leaders of the respective crews. One such act of violence was the murder of Derrick Moore on August 2, 2009. This murder was committed by Creston Avenue Crew members RAFAEL REYES and LUIS ORTIZ to assist Taylor Avenue Crew member STEVEN BROWN.
* * *
Count One of the Indictment charges BROWN with murder in aid of racketeering activity. Count Two of the Indictment charges REYES and ORTIZ with murder in aid of racketeering activity. Count Three of the Indictment charges BROWN, REYES, and ORTIZ with murder in connection with a drug crime. Count Four charges BROWN, REYES, and ORTIZ with murder through the use of a firearm. Counts One through Four all relate to the murder of Derrick Moore.
Count Five of the Indictment charges MARRERO and GONZALEZ with participating in a conspiracy to distribute crack cocaine.
A chart containing the names, charges, and penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, the DEA, and the NYPD.
Assistant U.S. Attorneys Maurene Comey, Jessica Lonergan, and Jason Swergold are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
PENALTIES
1
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
STEVEN BROWN
Mandatory minimum of life in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
RAFAEL REYES
LUIS ORTIZ
Mandatory minimum of life in prison
3
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
STEVEN BROWN
RAFAEL REYES
LUIS ORTIZ
Maximum: life in prison
Minimum: 20 years in prison
4
Murder through use of a firearm
18 U.S.C. § 9249(j)
STEVEN BROWN
RAFAEL REYES
LUIS ORTIZ
Maximum: life in prison
Minimum: 5 years in prison
5
Narcotics conspiracy
21 U.S.C. § 846
HECTOR MARRERO
PETER GONZALEZ
Maximum: Life in prison
Minimum: 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Fifteen Violent Jewelry Robbers Have Been Arrested for 11 Robberies and Attempted Robberies Targeting Traveling Jewelry Salesmen in Five StatesRead the Press Release
Fifteen defendants who were wanted by the FBI for their suspected involvement in a series of violent robberies against traveling jewelry salesmen across the United States, have been arrested, the last of whom on Sept. 2, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas and Special Agent in Charge Eric K. Jackson of the FBI Dallas Field Office.
An indictment and three superseding indictments, issued in Feb. 18, 2016; Jan. 24, 2017; Nov. 21, 2017; and Jan. 23, 2018, respectively, charge the 15 defendants, all Colombian nationals, with the following offenses relating to the 11 robberies/attempted robberies:
Jonathan David Malpica, 33
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Tito Andres Vargas Urbina, 31
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Roger Zamora, aka Jaime Alba Juarez, 40
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Camila Andrea Espitia, 23
Conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Mohammed Natour, 32
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Omar Gonzalez, 38
RICO conspiracy, conspiracy to interfere with commerce by robbery
Fabrizia Cavanna Sarmiento, aka Fabrizia Cavanna, 41
RICO conspiracy, conspiracy to interfere with commerce by robbery
Andres Felipe Henao, 32
Conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Brayan David Vargas Londono, aka Brayan Vargas, Brayan David Vargas Gonzalez, Mario Steven Cuellar, Joshua Steven
Cavarez, Blanco Elizanoro Recioachach, 25
Conspiracy to interfere with commerce by robbery
Rodolfo Vargas Londono, aka Christian Vargas, 30
Conspiracy to interfere with commerce by robbery
Luis Garcia, 31
Conspiracy to interfere with commerce by robbery
Catherine Salas, 34
Conspiracy to interfere with commerce by robbery
Erika Gutierrez Machado, aka Angela Cuebas, 45
Conspiracy to interfere with commerce by robbery
James Jeanphier Tobar Ramon, aka Panda, Jonathan Tapia, Jhonatan Vasquez Toloza, 27
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Jesus Jean Pool Tovar, aka Yakusa, 24
Conspiracy to interfere with commerce by robbery
The indictments charge the defendants for their alleged involvement in 11 robberies/attempted robberies in five states, from 2014 through 2016:
Date (on or about)
Robbery Location
Sept. 26, 2014
Oklahoma City, Oklahoma
Jan. 30, 2015
Dallas, Texas
March 31, 2015
Miami Beach, Florida
July 8, 2015
Houston, Texas
Sept. 3, 2015
Dallas, Texas
Oct. 26, 2015
Houston, Texas
Nov. 10, 2015
Hollywood, Florida
Nov. 15, 2015
Indianapolis, Indiana
Dec. 6, 2015
Vienna, Virginia
Jan. 21, 2016
Farmers Branch, Texas
Jan. 27, 2016
Dallas, Texas
The series of indictments charged that the members and associates of the robbery enterprise allegedly operated in the following ways:
- Members of the enterprise and their associates allegedly obtained rental vehicles, airline tickets, hotel rooms, and other short-term housing, and opened bank accounts and obtained bank cards and credit cards using fraudulent identification documents to facilitate the robberies and surveillance operations;
- Members of the enterprise and their associates allegedly conducted surveillance on diamond and jewelry stores and traveling diamond and jewelry salesmen in order to identify prospective robbery victims, using teams of individuals to watch the stores from their vehicles and on foot;
- Members of the enterprise and their associates allegedly blocked-in the vehicles of traveling diamond and jewelry salesmen and often disabled the vehicles by, among other means, flattening the vehicles’ tires and breaking the vehicles’ windows;
- Members of the enterprise and their associates allegedly used violence, threats of violence, and weapons, including BB guns, knives, blades, and center punches; and
- Members of the enterprise and their associates allegedly sold the stolen diamonds, jewels, jewelry, and other goods to individuals who buy and sell stolen goods (“fences”), including an individual who traveled from Colombia to the United States to purchase the stolen goods, and then split the proceeds of their unlawful activities.
Further investigative efforts led to the location and arrest of all 15 defendants, the most recent of which took place on Sept. 2, when Tobar was arrested in Miami, Florida, by the Miami Beach Police Department Robberies Unit, in coordination with the FBI.
Rodolfo Vargas Londono, Cavanna, and Brayan David Vargas Londono, were all arrested in Colombia by the Colombian National Police, DIJIN Vetted Team, on Oct. 27, 2017, Dec. 24, 2017, and Feb. 12, 2018, respectively.
The other 11 defendants were arrested in the United States from 2016 through 2017.
“The defendants allegedly embarked on a multi-state spree of violent robberies, putting the lives of their victims and other innocent civilians at risk,” said Assistant Attorney General Benczkowski. “Thanks to the dedication and cooperative efforts of prosecutors in the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office in the Northern District of Texas, along with our partners with the FBI Dallas Violent Crimes Task Force, all 15 defendants indicted for this interstate armed robbery conspiracy have been apprehended and now must face justice. I especially thank our Colombian law enforcement partners for their hard work in securing the arrest of three fugitives in this important case.”
“These individuals painstakingly surveilled, menaced, and violently robbed salespeople in the Northern District of Texas and elsewhere,” said U.S. Attorney Nealy Cox. “My office is committed to rooting out these kinds of criminal conspiracies. I thank our law enforcement partners – both here in the United States and in Colombia – for helping us bring these defendants to justice.”
“The investigation and indictments of this violent and dangerous foreign criminal enterprise by the personnel of the Dallas FBI Office, our law enforcement partners, and prosecutors hopefully have sent a clear message,” said FBI Special Agent in Charge Jackson. “We have no tolerance for those who would violate the sovereignty of the United States to further their criminal goals and we will bring you to justice no matter where in the world you are located.”
To date, nine defendants in total pleaded guilty to charges relating to the robberies:
- Gonzalez pleaded guilty to RICO conspiracy on July 27, 2017. Gonzalez was sentenced to 66 months in prison on Feb. 20.
- Urbina pleaded guilty to RICO conspiracy on Aug. 29, 2017, and is awaiting sentencing.
- Malpica pleaded guilty to RICO conspiracy on Sept. 5, 2017, and is awaiting sentencing.
- Machado pleaded guilty to conspiracy to interfere with commerce by robbery on Sept. 5, 2017. Machado was sentenced to 40 months in prison on Jan. 22.
- Salas pleaded guilty to conspiracy to interfere with commerce by robbery on Oct. 31, 2017, and is awaiting sentencing.
- Henao pleaded guilty to conspiracy to interfere with commerce by robbery on Jan. 9, and is awaiting sentencing.
- Natour pleaded guilty to RICO conspiracy on March 13, and is awaiting sentencing.
- Zamora pleaded guilty to RICO conspiracy on March 20, and is awaiting sentencing.
- Garcia pleaded guilty to conspiracy to interfere with commerce by robbery on March 27, and is awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI Dallas Violent Crimes Task Force investigated the case, with assistance from the Colombian National Police, DIJIN Vetted Team. The Justice Department’s Office of International Affairs provided significant assistance in the extradition matters. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Keith Robinson of the Northern District of Texas, are prosecuting the case.
FBI Recovers Stolen Ruby Slippers from the Wizard of OzRead the Press Release
FBI Seeking Information of Those Associated with Theft of Stolen Treasure
(Minneapolis) – Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI, and Christopher Myers, United States Attorney for the District of North Dakota, announced today that a pair of ruby slippers featured in the classic 1939 film The Wizard of Oz and stolen from the Judy Garland Museum in Grand Rapids, Minnesota in 2005, was seized in a sting operation conducted in Minneapolis earlier this summer.
While the FBI has identified suspects and has executed multiple search warrants in Minnesota and Florida in connection with the investigation, investigators are seeking the public’s help to identify all parties associated with the initial theft and the more recent scheme to defraud and extort the Markel Corporation, the owner of the slippers.
The ruby slippers are one of several pairs used in the production of the movie classic. Only four pairs of the shoes used in the film are known to remain and are widely viewed as among the most recognizable memorabilia in American film history. Current estimates value the slippers in the millions of dollars should they be sold at auction.
The recovered slippers, known as the "traveling pair," were stolen from the Judy Garland Museum in the overnight hours of August 27-28, 2005. Despite an investigation by local authorities, which included countless interviews, numerous theories, and even searches of abandoned iron ore pits, the slippers were never located and no arrests were made. The investigation remained a priority for the Grand Rapids Police Department, who requested FBI assistance in 2017 when the extortion plot against the Markel Corporation surfaced. Agents from the Minneapolis Division worked closely with the FBI’s Art Crime Team throughout the investigation, which is ongoing.
After the recovery in July, the FBI transported the slippers to the Smithsonian’s National Museum of American History in Washington, D.C., where conservators were able to conduct an in-depth examination and analysis, including evidence of wear and details unique to their use in the 1939 film. Examination of the recovered shoes showed that their construction, materials, and wear are consistent with the pair in the museum’s collection, which were donated to the museum by an anonymous donor in 1979.
"At the heart of nearly every art crime, we see greed woven into the fabric of the scheme—greed to take it, and greed to profit from its return," said Sanborn. "Dorothy’s slippers are a treasured piece of Americana, and we are hoping members of the public can help us better fill in the details that will finish the script of this mystery so we can hold accountable all those who were behind the scheme."
"When the slippers were snatched in the early morning burglary, the thieves not only took the slippers, they took a piece of history that will be forever connected to Grand Rapids and one of our city’s most famous children," said Grand Rapids Police Chief Scott Johnson. "We were confident this day would eventually come, and we are grateful to the FBI and all those who worked to bring this piece of cinematic treasure out of the shadows and into the light. After all," he said, quoting a famous line from The Wizard of Oz, ‘There’s no place like home.’"
U.S. Attorney Chris Myers added, "Thanks to the great work of the FBI and their local law enforcement partners, they have successfully preserved an iconic symbol of one of America’s greatest and best-loved movies. We will follow the evidence along the investigative road to ensure justice is done in this case."
This matter has been assigned to the United States Attorney’s Office for North Dakota pursuant to 28 U.S.C. § 515(a).
Anyone with information surrounding the theft or the extortion plot is encouraged to contact the FBI at 1-800-CALL-FBI (225-5324) or submit information via the FBI’s website at tips.fbi.gov. Tips can be anonymous.
Sanborn and Myers acknowledged the support of the FBI Criminal Investigative Division’s Art Crime Team; the Grand Rapids Police Department; FBI offices in Chicago, Atlanta, and Miami; the Smithsonian’s National Museum of American History; and the Markel Corporation.
Originating Press Release Contact:
FBI Office of Public Affairs
Michael Kulstad (763) 569-8095
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Edinburg Man Sentenced for Ramming BP AgentRead the Press Release
McALLEN, Texas – A 24-year-old Edinburg resident has been ordered to federal prison following his convictions for alien smuggling and assaulting a federal agent, announced U.S. Attorney Ryan K. Patrick. Victor Eduardo Acevedo-Ventura pleaded guilty Dec. 28, 2017.
Today, U.S. District Judge Micaela Alvarez handed Acevedo-Ventura a sentence of 50 months in prison to be followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted Acevedo-Ventura’s dangerous actions in ramming the Border Patrol (BP) agent’s vehicle and that this wasn’t his first time fleeing from law enforcement officers.
On Oct. 24, 2017, BP pulled over Acevedo-Ventura just south of the Falfurrias checkpoint. Authorities discovered he had just smuggled and dropped off six illegal aliens in order to bypass the checkpoint through the brush. Acevedo-Ventura initially complied with BP and pulled to the side of the road.
However, almost immediately thereafter, he fled at approximately 75 mph. Three Border Patrol agents pursued him. Acevedo-Ventura then slammed the Expedition he was driving into the lead agent’s patrol vehicle twice, before spinning out of control and leaving both vehicles with substantial damage.
At the hearing today, the court stated how fortunate Acevedo-Ventura was that he didn’t severely injure the agent. Judge Alvarez noted that did not diminish the seriousness of his conduct.
Acevedo-Ventura had been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the FBI conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
East Bay Resident Sentenced to Two Years in Prison for Defrauding Concert PromotersRead the Press Release
OAKLAND – Quincy Krashna was sentenced today to 24 months in prison, and ordered to pay $450,000 in restitution to European concert promoters, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Krashna, 50, of Albany, Calif., pleaded guilty on March 6, 2018. According to the plea agreement, Krashna admitted that he misrepresented to concert promoters his connections to the Red Hot Chili Peppers. The victims were interested in promoting Red Hot Chili Peppers concerts in Eastern Europe. Krashna further admitted he told the concert promoters that he would hold in an escrow account a $450,000 down payment to secure the band’s services and that the money would be returned to the promoters if Krashna was unable to secure the band’s services. Krashna admitted in the plea agreement that he created a fraudulent “Escrow Agreement” that had the appearance of being an escrow agreement used by Chase Bank, when in fact the alleged escrow account was a personal bank account that he controlled. The concert promoters wired $450,000 into the fake escrow account after receiving Krashna’s assurances.
Krashna admitted in the plea agreement that he continued to inform the concert promoters that their money was in an escrow account controlled by Chase Bank, when in fact he had transferred the money out of his personal account into other accounts that he controlled. Krashna admitted that he continued to misrepresent the whereabouts of the victims’ money until March 2012.
A federal grand jury indicted Krashna on January 12, 2017. He was charged with seven counts of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to the guilty plea, Krashna pleaded guilty to one count and the remaining counts were dismissed.
In addition to the prison term and restitution, Judge White ordered the defendant to serve a three-year term of supervised release to follow his prison term. The defendant will begin serving the sentence on November 6, 2018.
Assistant U.S. Attorneys Tom Green and Michelle Kane are prosecuting the case with the assistance of Noble Hughes and Katie Turner. The prosecution is the result of an investigation by the FBI.
East Bay Real Estate Agent Sentenced to More Than Six Years in Prison for Multimillion Dollar Property Scheme Related to Fraudulent LawsuitsRead the Press Release
SAN FRANCISCO –Robert Jacobsen was sentenced today to 78 months in prison for wire fraud and money laundering, announced United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero, and Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Tara Sullivan. The sentence was handed down by the Honorable Maxine M. Chesney, U.S. District Judge.
Jacobsen, 70, of Kensington, Calif., pleaded guilty to the charges on July 19, 2017. According to his plea agreement, Jacobsen admitted he created a scheme to sell homes to unsuspecting buyers who did not know the homes had unpaid mortgages attached to them. As part of the scheme, Jacobsen created a company called “American Brokers’ Conduit Corporation.” Jacobsen’s company was not related to an already-existing mortgage originator known as “American Brokers’ Conduit.” The previously-existing company had originated mortgages in the Bay Area and elsewhere. Jacobsen, through intermediaries, gained control of homes with mortgage liens that secured loans originated by the real “American Brokers’ Conduit.” Then, Jacobsen used intermediaries to sue the phony “American Brokers’ Conduit Corporation” in court, claiming that the legitimate mortgage liens were invalid. As he controlled both the plaintiff and the defendant in these lawsuits, Jacobsen then instructed the attorneys for both sides to enter into stipulated judgments, signed by the courts, resolving the lawsuits by purporting to declare the mortgage liens invalid. In so doing, he omitted to tell the courts that neither he nor any other person involved in the lawsuits was a legitimate representative of either the real “American Brokers’ Conduit” or the then-current owners of the liens. Jacobsen filed those agreements with the relevant county recorder’s offices, to give the appearance to anyone conducting a title search that the liens had been declared invalid by a court, and then sold the homes to unsuspecting buyers without paying off the original loans on the homes. Jacobsen kept the vast majority of the proceeds of these sales to himself, laundering the money through multiple bank accounts in the United States and in Belize, and buying property and a yacht with the money.
Jacobsen successfully completed his scheme by selling two homes, one in Danville, Calif., for $540,000, and the other in San Francisco, for $1.2 million. He also attempted the scheme on another home, in Monterey, Calif., which he attempted to sell for $3 million.
A grand jury indicted Jacobsen on November 5, 2015, charging him with thirteen counts of wire fraud, in violation of 18 U.S.C. § 1343, and engaging in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. § 1957. Pursuant to the plea agreement, Jacobsen pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions from specified unlawful activity. If Jacobsen complies with the plea agreement, the remaining counts will be dismissed.
In addition to the prison term, Judge Chesney sentenced Jacobsen to serve 3 years of supervised release. As part of the plea agreement, Jacobsen also agreed to the forfeiture of the yacht that he purchased with fraud proceeds. Judge Chesney scheduled a hearing on October 17, 2018, to determine the amount of restitution.
Assistant U.S. Attorneys Benjamin Kingsley, Gregg Lowder, and Meredith Osborn are prosecuting the case with assistance from Bridget Kilkenny and Beth Margen. The prosecution is the result of an investigation by the FBI, IRS-CI, and the Office of the Special Inspector General for the Troubled Asset Relief Program.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston for illegally reentering the United States after being deported.
Radhames Esmereldo Guerrero-Mejia, 34, a Dominican national residing in Boston, pleaded guilty to one count of illegal reentry of a deported alien. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 4, 2018.
On Feb. 8, 2018, law enforcement officers encountered Guerrero-Mejia and determined him to be illegally present in the United States. The defendant was previously deported on Nov. 17, 2015.
Guerrero-Mejia faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Rebecca Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting the case.
Crete Man Sentenced to 120 Months for 15 Counts of Wire FraudRead the Press Release
United States Attorney Joe Kelly announced that Mark Martin Ackerman, 32, of Crete, Nebraska, was sentenced in federal court in Lincoln, Nebraska, on August 30, 2018, for 15 counts of wire fraud. The Honorable Richard G. Kopf, Senior United States Court Judge, sentenced Ackerman to 10 years of imprisonment. There is no parole in the federal system. After his release from prison, Ackerman will begin a three-year term of supervised release.
Over the course of five years, Ackerman embezzled $1,400,000 from Vertical Horizons Contracting, Inc., a closely held corporation based in Lincoln, Nebraska. Ackerman was the office manager for VHC for ten years. Ackerman was ordered to pay more than $2,000,000 in restitution, with a portion of that money having already been paid to the Court. Ackerman was further ordered to forfeit numerous luxury vehicles and his home in Crete. It was determined that Ackerman purchased these assets with the stolen money from the small, family-owned business. These assets will be sold for the benefit of victim restitution.
This case was investigated by the Federal Bureau of Investigation.
Charleston Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CHARLESTON, W.Va. -- David Wayne McDaniel, 53, from Charleston, pled guilty today to possession of child pornography, announced United States Attorney Mike Stuart. Stuart commended the investigative work of the Federal Bureau of Investigation.
“Incomprehensible,” said United States Attorney Mike Stuart. “We will prosecute every one of these horrific crimes and put child predators behind bars.”
McDaniel admitted that he possessed over 600 images, including pornographic images of prepubescent minors and images containing sadistic or masochistic conduct, other depictions of violence, or sexual abuse or exploitation of an infant or toddler.
Because McDaniel has a prior conviction for sexual abuse of a minor, he faces a mandatory minimum of ten years in prison when he is sentenced on December 13, 2018.
Assistant United States Attorney Steve Loew is handling the prosecution. United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
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Bulgarian National Sentenced to Federal Prison for Defrauding FedExRead the Press Release
Memphis, TN – A Bulgarian national has been sentenced to 37 months in federal prison for mail fraud. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, Dimitar Petlechkov, 35, engaged in a scheme to defraud FedEx by fraudulently linking his FedEx shipping account to a national shipping account that had significant shipping discounts. Petlechkov was not entitled to receive these discounts. He then offered reduced shipping rates to third party shippers to use his FedEx account for their own shipping needs. Petlechkov offered them a better shipping rate than they could get on their own, but not the full discount he fraudulently received. The scheme ran for almost five years, from January 2009 to April 2014. Petlechkov made over $300,000 in profits during that time.
U.S. Attorney D. Michael Dunavant said, "This long-term fraudulent scheme had significant financial consequences to the corporate interests of the victim, FedEx Corporation, and created unfair business advantages in interstate commerce and the shipping industry. This office is committed to the protection of business and corporate interests in interstate commerce, and this sentence, restitution, and subsequent removal will hold the defendant accountable while providing justice for the victim."
On August 31, 2018, U.S. District Court Judge Jon P. McCalla sentenced Petlechkov to 37 months imprisonment; Petlechkov was also ordered to pay restitution of $801,000 to FedEx and faces deportation to Bulgaria at the conclusion of his sentence. Petlechkov has been in the United States illegally as a visa overstay since 2000.
The Federal Bureau of Investigation (FBI) investigated this case.
Assistant U.S. Attorney David Pritchard prosecuted this case on the government’s behalf.
Bluefield Men Sentenced on Federal Drug ChargesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that two Bluefield men were sentenced to federal prison on drug charges. Stuart praised the work of the Southern Regional Drug and Violent Crime Task Force.
“Communities all across West Virginia have paid a heavy price because pills invaded these valleys and mountains,” said United States Attorney Mike Stuart. “We are prosecuting with haste those whose illegal practices led to the scourge of pills that aided the path of addiction for which too many of our good citizens fell prey.”
Gerold Flack, 40, was sentenced to 78 months for distribution of hydromorphone. He pled guilty in April, admitting that on November 7, 2017, he distributed hydromorphone to an informant in Bluefield. He also admitted that from the summer of 2017 until about November 30, 2017, he distributed about 3375 hydromorphone pills.
Jamaal Crenshaw, 37, was sentenced to 30 months for distribution of oxycodone. He also pled guilty in April, and admitted that he sold several oxycodone and oxymorphone pills to an informant in September and October of 2017. He further admitted that when police searched his residence on October 5, 2017, they found over $5,000 which he had earned from selling drugs.
Assistant United States Attorney John File prosecuted the cases. The sentences were imposed by Senior United States District Judge David A. Faber.
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