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4 September 2018
Albany Man Pleads Guilty to Possession of A Firearm by A Convicted FelonRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Rontavis Davis, age 37, of Albany, Georgia, entered a guilty plea to the offense of Possession of a Firearm by a Convicted Felon before United States District Judge Leslie Abrams in Albany on September 4, 2018. This plea subjects Mr. Davis to possible maximum term of life imprisonment, a maximum fine of $250,000, or both.
At his plea hearing, Mr. Davis admitted that on February 5, 2018, officers initiated a lawful traffic stop on a Chevrolet Cobalt in the 500 block of Clark Avenue in Albany, Georgia, because the driver of the car, Rontavis Davis, was not wearing his seatbelt. Upon making contact with Mr. Davis, officers smelled a strong odor of marijuana coming from within the car. Based on this odor, officers removed Davis from the car and began to search it. Officers advised Mr. Davis that he was being temporarily detained while the search was being conducted and asked him if there was any contraband or dangerous items on his person or in the vehicle. Mr. Davis stated that there was a digital scale in his pocket and a .45 caliber handgun on his front seat under a jacket.
Agents searched Mr. Davis and his car and located a loaded Colt .45 handgun, a small bag of cocaine, two jars of marijuana, and a digital scale. As officers found these items, Mr. Davis spontaneous stated, “You don’t have to keep looking, you found everything I had.” On March 22, 2018, agents advised Mr. Davis of his Miranda rights. Mr. Davis waived his Miranda rights and admitted that he had purchased the gun on the street for $100.
Mr. Davis is a convicted felon and prohibited from possessing a gun as a result. His previous convictions include (1) Theft by Receiving Stolen Property and Forgery; (2) Child Molestation; (3) Possession of Cocaine with Intent to Distribute, (4) Possession of a Firearm by a Convicted Felon; (5) Possession of Cocaine; (6) Failure to Register as a Sex Offender; and (7) Possession of Marijuana with Intent to Distribute.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Albany Bank Robber Pleads GuiltyRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Luis A. Mellado-Sanchez, age 20, of San Juan, Puerto Rico, pled guilty to Bank Robbery before District Court Judge Leslie Abrams in Albany, Georgia on September 4, 2018. This plea subjects Mr. Mellado-Sanchez to a maximum sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both.
At his plea hearing, Mr. Mellado-Sanchez admitted that on May 21, 2018, he entered the Regions Bank located at 333 West Broad Avenue in Albany. He passed a note to the bank teller that stated: “I want you to put all of the $100, $50, $20 bills in an envelope and hand it to me. If you do this quickly and without panic this will be over quickly and no one will get hurt and everyone will be happy, so please empty the cash drawers.” The bank teller provided Mr. Mellado-Sanchez with approximately $1400.00, along with a “dye pack” with four $20 dollar bill “bait bills.” Mr. Mellado-Sanchez placed the cash into a bag and left the bank.
After robbing the bank, Mr. Mellado-Sanchez went to a bus station, where he disposed of his disguise, along with the $20 bills wrapped around the ink pack. Next, Mr. Mellado-Sanchez went to a Dollar General store, where he purchased a change of clothes and a razor. Mr. Mellado-Sanchez used a church bathroom to shave his facial hair and change his clothes.
The case was investigated by the Albany Police Department, Camilla Police Department, Mitchell County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case on behalf of the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Accountant Sentenced for Tax Evasion and FraudRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old former Corpus Christi resident has been ordered to prison for wire fraud and tax evasion, announced U.S. Attorney Ryan K. Patrick. Brian Perez pleaded guilty March 1, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos handed Perez an 18-month sentence to be immediately followed by three years of supervised release. He was also ordered to pay $162,755 in restitution to his employer and an additional $42,435.18 in criminal restitution to the IRS. At the hearing, Assistant U.S. Attorney (AUSA) Robert Thorpe detailed prior thefts from a previous employer and additional thefts from another corporation affiliated with his current victim.
Perez’ family members testified about his lack of criminal history and made pleas for probation. However, the court noted such a sentence was not appropriate as there was a significant amount of loss and harm to multiple victims occurring over several years.
The court also ordered that funds fraudulently transferred to Perez’ tax withholding account at the IRS as part of the scheme be returned to victims. His tax refunds during his period of incarceration and supervised release will also be used to pay restitution to his victims.
Perez, now of San Antonio, was a Certified Public Accountant. As part of his plea, Perez admitted that while working as a bookkeeper, he orchestrated the fraudulent transfer of funds from his employer’s bank account to his personal tax withholding account. Perez also admitted he filed a false income tax return and requested a refund of the overpayment.
Through this scheme, Perez defrauded his employer of $162,755 between March 9, 2015, and Aug. 7, 2015.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
1 September 2018
Dover Two-Time Federal Defendant Sentenced to over 17 Years Imprisonment for Firearms and Drug Dealing OffensesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Malik Nasir, age 37, of Dover, Delaware, was sentenced on August 24, 2018 to 17 ½ years in federal prison for illegally possessing five (5) firearms after a prior federal and state drug and gun felony convictions. Nasir was also found guilty of possession with intent to deliver $12,000 worth of marijuana seized from his storage unit in Dover and a related charge for maintaining that storage unit for the purpose of illegal drug distribution.
Nasir was convicted following a two day federal jury trial in June 2017. According to court documents and proof offered at trial, the Delaware State Police (“DSP”) obtained a search warrant for Nasir’s storage unit in Dover in December 2015, after DSP receiving numerous complaints regarding suspicious activity in and around the unit. While officers were preparing to search, Nasir drove to the storage unit and was arrested there.
Arresting troopers located a duffel bag in Nasir’s car containing marijuana residue and a key to the storage unit. Using the key, the troopers opened the storage unit and seized $12,000 worth of marijuana found inside.
When subsequently searching Nasir’s second car (a 2009 Dodge Charger), the troopers found and seized five handguns—four of which were loaded and one of which had been reported as stolen—and 223 rounds of ammunition. Nasir was prohibited from possessing any firearms due to his prior state and federal felony convictions.
U.S. Attorney Weiss said, “The defendant’s decision to illegally possess multiple guns while engaging in the illicit drug trade represents a significant safety concern to the citizens of Delaware. This prosecution serves notice of the effectiveness of federal and state law enforcement working together to protect this community and hold gun offenders accountable.”
Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division said, “Mr. Nasir was previously convicted for drug and gun crimes, and shows his continued disregard for both the law and the well-being of others by choosing to distribute drugs into Delaware communities, along with his illegal possession of firearms. The investigative work done on this case by ATF Special Agents and our Delaware State Police partners, as well as prosecution by the U.S. Attorney’s Office, has undoubtedly made the citizens of Delaware safer.”
This case was investigated by the Delaware State Police and the ATF Baltimore Field Division, Wilmington Field Office and was prosecuted by Assistant U.S. Attorney Daniel Logan.
31 August 2018
York County Man Sentenced to over 12 Years’ Imprisonment for Threatening to Injure Police OfficersRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Chad Stoner, age 30, of Conewago Township, York County, Pennsylvania, was sentenced on August 30, 2018, to 150 months’ imprisonment by United States District Court Judge Yvette Kane for conspiracy and transmitting an interstate communication containing a threat to injure police officers and officials of Conewago Township, and possessing an AK-47 semi-automatic weapons illegally.
According to United States Attorney David J. Freed, Stoner was convicted of the charges after a three-day trial before Judge Kane on December 5, 2017. Stoner previously pled guilty to being a felon in possession of firearms after those charges were severed by the Court. On August 10, 2016, Stoner and his co-conspirator Emily Winand, age 28, of Conewago Township, agreed that Winand would use her Youtube account to post a video on which Stoner communicated a threat to injure police officers.
Winand pled guilty before Judge Kane on October 10, 2017, to conspiracy and obstruction of justice and is scheduled to be sentenced on September 12, 2018.
The investigation was conducted by the Harrisburg Resident Office of the Federal Bureau of Investigation, Joint Terrorism Task Force, the Northern York County Regional Police Department, and the West York Borough Police Department. Assistant United States Attorney Joseph J. Terz prosecuted the case.
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Wilmington Man Sentenced to 12 Years in Federal Prison for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Senior United States District Judge W. Earl Britt sentenced ANTONIO PIERRE SHUFFORD, 38 from Wilmington, North Carolina, to 144 months in prison, followed by 5 years of supervised release.
SHUFFORD was charged in a nine-count indictment filed in the Eastern District of North Carolina on January 31, 2018. On April 30, 2018, SHUFFORD pled guilty to count nine of the Indictment which charged him with possession with intent to distribute twenty-eight grams or more of cocaine base (crack) and a quantity of oxycodone.
The investigation revealed that on February 26, 2015, a search of SHUFFORD and six residences associated with SHUFFORD resulted in the seizure of $1,505 in U.S. Currency, plastic baggies, 14.24 grams of cocaine, and 8.09 grams of crack cocaine. As the investigation into SHUFFORD continuined, another residence and vehicle used by SHUFFORD were searched on March 8, 2017, and these searches resulted in the seizure of 152.53 grams of crack cocaine, 1,618.05 grams of liquid oxycodone, and 330 grams of oxycodone mixed with other liquids.
From the investigation, law enforcement determined that between at least May 1, 2009, through March 8, 2017, SHUFFORD was responsible for the distribution of over 1,900 grams of cocaine base (crack). Moreover, at the sentencing hearing, the court determined that the defendant was a “career offender” in that he had two previous convictions for drug trafficking offenses.
This case was prosecuted federally as part of the United States Department of Justice’s Opioid Initiative and the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina.
Implemented in March 2018, the Take Back North Carolina Initiative emphasizes the regional assignment of federal prosecutors to work with local, state and federal law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. The initiative targets those organizations and individuals who are responsible for increasing violent crime rates and drug trafficking – quickly routing the cases to federal court when prosecution in that venue would deliver the most significant impact.
The investigation of this case was conducted by the Wilmington FBI Coastal Carolina Criminal Enterprise Task Force consisting of the FBI, New Hanover County Sheriff's Office, Brunswick County Sheriff's Office, Wilmington Police Department, and the North Carolina State Bureau of Investigation. Assistant United States Attorney Laura Howard prosecuted the case on behalf of the United States.
Two Members of the Westside Crips Criminal Street Gang Plead Guilty to Racketeering Conspiracy Relating to Sex Trafficking, Drug Trafficking, and Other Violent CrimesRead the Press Release
NEWS RELEASE SUMMARY – August 31, 2018
SAN DIEGO – Two gang members of the Westside Crips pleaded guilty today for their participation in a racketeering conspiracy involving sex trafficking, narcotics trafficking, and other violent crimes as well as possession of a controlled substance with the intent to distribute.
Corey DeShawn Austin (aka “Westwood”) and Travion McHenry (aka “Too Much”) admitted their respective membership and association with the Westside Crips, who primarily operated in Oceanside and elsewhere. Sentencing for Austin is scheduled for December 14, 2018. McHenry is scheduled to be sentenced on October 19, 2018.
In furtherance of the RICO conspiracy, Austin, the lead defendant, admitted he engaged in promoting prostitution of adult females between 2013 and 2015, including while he was in state custody for another offense. Austin further admitted he possessed narcotics for sale in 2013 with co-defendant McHenry and posted photos of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2013-2016.
To further his role in the RICO conspiracy, McHenry admitted he committed a 2012 home invasion robbery with two other coconspirators during which the victims were robbed at gunpoint. He also admitted he possessed narcotics for sale in 2013 with co-defendant Austin and posted photos of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2012-2014.
“Gang members, their associates and those who assist them will not be permitted to exploit members of our community for their own personal gain and notoriety by promoting sex trafficking, narcotics trafficking, and violent crime,” said U.S. Attorney Adam L. Braverman.
“One of the top priorities for the DEA in San Diego is dismantling violent street gangs that profit by selling drugs in our community. The profit, cold hard cash, in turn fuels the violence on our streets,” said Special Agent in Charge Karen Flowers. “DEA will continue to target and put away violent street gang members like Mr. Austin and Mr. McHenry because it makes San Diego County a safer place to live.”
“For over a decade, this sophisticated street gang terrorized the streets of Oceanside and the surrounding areas for profit,” said IRS Criminal Investigation’s Special Agent in Charge R. Damon Rowe. “Our agency plays a unique role in federal law enforcement’s resolve to dismantle criminal gang enterprises. Our agents target the profit and financial gains of these violent organizations, following the money in an effort to disrupt these organizations and bring their members to justice.”
“The Oceanside Police Department would like to thank the US Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation. “It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.
The remaining defendant, William Bright, is set for a motion hearing on October 1, 2018. The other defendants have pleaded guilty and many have been sentenced for their participation in the RICO conspiracy.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 17cr0270-JAH
Corey DeShawn Austin aka “Westwood” Age: 38 Oceanside, CA
Travion McHenry aka “Too Much” Age: 26 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release
AGENCIES
North County Narcotics Task Force
Drug Enforcement Administration
Oceanside Police Department
Internal Revenue Service
Two Individuals Charged with Tax Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Marien Torres Acevedo, age 35, of Allentown, Pennsylvania, and Francisco Rodriguez Polanco, age 34, of the Bronx, New York, were indicted by a federal grand jury with conspiring to defraud the government, and six counts of theft of government money and aggravated identity theft. The indictment was returned on April 10, 2018, but remained under seal until the defendants were both apprehended.
According to United States Attorney David J. Freed, the indictment charges Acevedo, and Polanco with conspiring to defraud the government between January 1, 2015 and July 9, 2016. The indictment alleges that the coconspirators stole individuals’ identities, and used them to prepare and file false tax returns. The coconspirators then allegedly obtained the refund checks issued by the U.S. Treasury pursuant to those false tax returns. Acevedo and Polanco and their coconspirators took possession of the refund checks, forged names and social security numbers on them, and cashed them at check cashing businesses in the Middle District of Pennsylvania. Acevedo and Polanco and their coconspirators are charged with cashing at least $113,649.17 in fraudulently obtained Treasury checks, and attempting to cash an additional $41,349.67 worth of checks.
The case was investigated by the Department of the Treasury’s Office of the Inspector General, the Internal Revenue Service, Homeland Security Investigations, and other federal and state law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious charges are up to 10 years of imprisonment. The aggravated identity theft charges carry a two-year consecutive mandatory minimum term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Indicted for Making Corporate Contributions to U.S. Senate CampaignRead the Press Release
The former president of a Kentucky-based corporation and a political consultant were both indicted today for using corporate funds to make contributions to the campaign of a candidate for U.S. Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Office, made the announcement.
A federal grand jury in Lexington returned an indictment charging Gerald G. Lundergan, 71, of Lexington, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC, and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The indictment also charges Dale C. Emmons, 66, of Richmond, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements, and two counts of causing the falsification of documents with the intent to obstruct and impede.
The indictment alleges that Lundergan used the funds of S.R. Holding Company Inc. (“S.R. Holding”), a company he owned, to pay for services provided by consultants and vendors to a campaign for U.S. Senate in the 2014 election cycle. The candidate for this seat was Lundergan’s family member. The indictment alleges that Lundergan and another S.R. Holding employee issued a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls, and campaign consulting between July 2013 and December 2015. The payments referenced in the indictment allegedly totaled $194,270.39 over time.
According to the indictment, these payments included $119,145.45 paid from S.R. Holding to Emmons and his company during this period for services to the campaign. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Over time, according to the indictment, Emmons paid $38,603.80 to these vendors for recorded telephone calls, technological support services, and other campaign-related expenses.
The indictment alleges that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments allegedly caused the campaign unwittingly to file false reports with the FEC, in that the reports failed to disclose the source and amount of the corporate contributions.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI is investigating the case. Trial Attorney Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
Two Indicted for Making Corporate Contributions to U.S. Senate CampaignRead the Press Release
WASHINGTON – The former president of a Kentucky-based corporation and a political consultant were both indicted today for using corporate funds to make contributions to the campaign of a candidate for U.S. Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Office, made the announcement.
A federal grand jury in Lexington returned an indictment charging Gerald G. Lundergan, 71, of Lexington, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC, and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The indictment also charges Dale C. Emmons, 66, of Richmond, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements, and two counts of causing the falsification of documents with the intent to obstruct and impede.
The indictment alleges that Lundergan used the funds of S.R. Holding Company Inc. (“S.R. Holding”), a company he owned, to pay for services provided by consultants and vendors to a campaign for U.S. Senate in the 2014 election cycle. The candidate for this seat was Lundergan’s family member. The indictment alleges that Lundergan and another S.R. Holding employee issued a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls, and campaign consulting between July 2013 and December 2015. The payments referenced in the indictment allegedly totaled $194,270.39 over time.
According to the indictment, these payments included $119,145.45 paid from S.R. Holding to Emmons and his company during this period for services to the campaign. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Over time, according to the indictment, Emmons paid $38,603.80 to these vendors for recorded telephone calls, technological support services, and other campaign-related expenses.
The indictment alleges that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments allegedly caused the campaign unwittingly to file false reports with the FEC, in that the reports failed to disclose the source and amount of the corporate contributions.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI is investigating the case. Trial Attorney Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
Two Foreign Nationals Charged with Credit Card FraudRead the Press Release
The United States Attorney’s Office has charged two foreign nationals with credit card fraud. Mrejuica Madalin, 30, and Laszlo Solomes, 31, were arrested by St. Louis County Police on Tuesday, August 28, 2018 on suspicion of credit card fraud.
On Tuesday morning, the pair were observed using a succession of different cards at an ATM in the 4300 block of Telegraph Road in South St. Louis County. Responding to a citizen complaint, the St. Louis County Police stopped their vehicle and discovered a large quantity of cash, stolen mail and financial documents in the name of a third party. The investigation continued and a search of the pair’s hotel room revealed a large cache of counterfeit gift cards and stored value cards, a laptop computer and a card encoding machine.
The United States Attorney’s Office has sought detention of Madalin and Solomes as it appears neither is legally in the United States. Madalin was traveling under a counterfeit Belgian passport in the name of another. Solomes was in possession of a valid Hungarian passport but appears not to hold a valid visa to be in the United States.
Both men appeared in federal court on a criminal complaint charging them with possession of 15 or more counterfeit access devices in violation of Title 18, United States Code Section 1029(a)(3), which carries a maximum term of imprisonment of 10 years, a maximum fine of $250,000 or both.
The case was investigated by the St. Louis Office of the U.S. Postal Inspection Service, the St. Louis County Police Department, the Immigration and the Customs Enforcement (ICE) Bureau of the Department of Homeland Security. Tom Albus is handling the case for the United States Attorney’s Office.
Three Phoenix Residents Sentenced for Attempted Financial Aid Fraud of over $5 MillionRead the Press Release
PHOENIX – This week, Jacqueline Scroggins, 53, of Avondale, Ariz., was sentenced by U.S. District Judge David G. Campbell to 37 months’ imprisonment, followed by 100 hours of community service. Scroggins had previously pleaded guilty to conspiracy and mail fraud. Co-defendants Amethyst Nicole Henderson, 30, of Phoenix, Ariz., previously pleaded guilty to conspiracy and financial aid fraud and was sentenced to 27 months’ imprisonment and 50 hours community service, and Jamar Britt, 36, of Phoenix, Ariz., also previously pleaded guilty to conspiracy and was sentenced to 15 months’ imprisonment and 50 hours community service. Restitution of $1,669,166 was ordered jointly as to all defendants.
All defendants admitted to conspiring to commit mail and financial aid fraud to further a scheme to attempt to obtain approximately $5,295,116 in federally-insured student aid from the United States Department of Education and colleges within the Maricopa County Community College District. As part of the scheme, they applied for aid in the names of approximately 483 people who did not plan to attend college and caused the payment of approximately $1,669,166 in student aid to the College District and the conspirators.
The investigation in this case was conducted by the Department of Education – Office of Inspector General, United States Postal Inspection Service, and the Federal Bureau of Investigation. The prosecution was handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-1461-PHX-DGC
RELEASE NUMBER: 2018-116_ Scroggins etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Individuals and a Corporation Plead Guilty in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Alcohol and Drug Addiction Treatment Centers and Clinical Laboratories Scheme Involving Alcohol and Drug Addiction Treatment CentersRead the Press Release
Smart Lab LLC, the corporation’s Chief Executive and Chief Operating Officers, as well as the top sales representative pled guilty for their participation in a multi-million health care fraud scheme that involved the filing of fraudulent insurance claim forms, defrauding health care benefit programs, and money laundering.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
H. Hamilton Wayne, a/k/a “Hawkeye,” 40, of Palm Beach Gardens, Justin Morgan Wayne, 39, of Boca Raton, and Smart Lab LLC, of Palm Beach Gardens, pled guilty today to one count of conspiracy to commit health care fraud. The Waynes and the corporation are scheduled to be sentenced on November 1, 2018 at 11 a.m. before United States District Judge Donald M. Middlebrooks.
Yesterday, Lanny Fried, 41, of Miami, pled guilty to one count of conspiracy to commit money laundering. Sentencing for Fried is scheduled for November 7, 2018 at 3 p.m. before United States District Judge Robin Rosenberg.
According to court documents, Smart Lab LLC was established by Chief Executive Officer H. Wayne, and Chief Operating Officer J. Wayne, to perform confirmatory urinalysis testing. Smart Lab, H. Wayne and J. Wayne established bank accounts to receive proceeds of insurance claims for medically unnecessary urinalysis testing and to pay kickbacks and bribes to individuals and entities that referred urine samples to Smart Lab for testing.
H. Wayne and J. Wayne established employment agreements wherein H. Wayne and co-conspirators would solicit bodily fluid samples from substance abuse treatment centers that would be submitted to Smart Lab for expensive confirmatory drug testing. In exchange, Smart Lab would kick back a portion of the insurance reimbursements, disguised as payments for sales commissions, to co-conspirators, understanding that a portion of these payments would then be paid, directly or indirectly, to owners, operators, or clinicians at the substance abuse treatment centers that referred the testing of urine samples from insured patients.
To achieve the goal, Smart Lab, H. Wayne, J. Wayne, and co-conspirators developed form standing orders and drug testing protocols that provided for duplicative, medically unnecessary, and expensive confirmatory testing regardless of the individual needs of any patients. To further the scheme, co-conspirator treatment center owners required the insured substance abuse treatment center patients to submit to confirmatory drug testing approximately three times per week, which Smart Lab, H. Wayne, J. Wayne, and others could bill to the insurance plans. Smart Lab, H. Wayne and J. Wayne elected not to collect mandatory co-payments, deductibles, and other co-insurance from patients that could cause patients to be unable or unwilling to submit to testing. The defendants did not inform the insurance plans that they were not collecting the required co-insurance payments.
In addition, Fried, a top Smart Lab sales representative, had an agreement with Smart Lab to receive commissions of approximately 50% of the insurance reimbursements for the substance abuse treatment facilities he referred to Smart Lab. These payments were classified as commissions when in reality they were kickbacks for the referral of excessive, medically unnecessary, fraudulent and duplicative confirmatory drug testing. Fried served as the sales representative for Smart Lab’s largest account, Reflections Treatment Center in Margate, Florida. Fried used a portion of these commissions to pay Reflections’ owner, Kenneth Chatman, illegal cash kickbacks to induce him to continue referring urine samples to Smart Lab. Using Fried as a “middleman” for the payments to Chatman disguised the true ownership and purpose of the funds. From 2005 through 2017, Smart Lab paid Fried over $600,000. These payments came from proceeds of health care fraud.
Fried also recruited friends and business associates to engage in similar activity. These individuals signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to Fried and others were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Fried and the others involved did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud. These funds were then disbursed to others, per Fried’s instructions.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB. These cases are being prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
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 at www.usdoj.gov/usao/fls.
The United States files False Claims Act complaint against Charles C. Adams, M.D. and affiliated entitiesRead the Press Release
ATLANTA – The United States has filed a False Claims Act complaint against Charles C. Adams, M.D.; Charles C. Adams, M.D., P.C. d/b/a Full Circle Medical Center and Personal Integrative Medicine PLLC (the “Adams Defendants”). The lawsuit alleges that the Adams Defendants were responsible for the submission of false claims to Medicare for medically unnecessary chelation therapy.
“When healthcare providers seek to defraud Medicare by billing for medically unnecessary services, they deplete the funds available to patients who are in need of legitimate medical procedures, while also putting their patients potentially at risk,” said U. S. Attorney Byung J. “BJay” Pak. “This complaint should serve as notice to others who consider similar practices that we will vigorously pursue them.”
“Medically unnecessary services waste millions in taxpayer dollars each year and undercut the public’s trust in the medical profession,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The OIG will continue to work with the Department of Justice to ensure the financial well-being of federal health care programs.”
The United States’ complaint alleges that, between November 2008 and September 2015, Dr. Adams undertook chelation therapy and administered the chelation drug edetate calcium disodium (EDTA) to Medicare beneficiaries who were not suffering from lead poisoning. Chelation therapy is a rarely used treatment that is generally only indicated for individuals suffering from lead poisoning and other forms of heavy metal poisoning. EDTA, one of the drugs used in chelation therapy, is indicated only for lead poisoning and lead encephalopathy.
Lead poisoning is diagnosed by determining whether the patient has had recent exposure to lead, and by testing the patient’s blood lead level (BLL). A symptomatic adult patient should only be chelated if there is a significantly heightened BLL (e.g. in excess of 50 mcg/dL). Dr. Adams chelated patients with no lead detected in their blood, or with only exceedingly low BLLs (e.g., less than 2 mcg/dL).
Additionally, Dr. Adams admitted that he does not treat lead poisoning or any other type of heavy metal poisoning. Nonetheless, he submitted hundreds of claims for Medicare beneficiaries for his use of EDTA. Dr. Adams advertised chelation as “alternative” and “integrative” therapy that can be used as an “anti-aging” treatment, and as a way to “improve circulation problems, stimulate bone growth, improve cholesterol and lower blood pressure.” However, Medicare does not cover EDTA chelation therapy for alternative uses such as these.
The United States contends that these chelation treatments are contrary to the standard of care and medically unnecessary. EDTA has a black box warning indicating that it “is capable of producing toxic effects which can be fatal.” Its adverse side effects include fever, chills, malaise, fatigue, myalgia, arthralgia, hypotension, cardiac rhythm irregularities, acute necrosis of proximal tubules (which may result in fatal nephrosis), nausea, vomiting, hypercalcemia, tremors, headaches, numbness and others. Inappropriate use of EDTA risks these harms without benefit.
This matter was investigated by Assistant U.S. Attorney Paris Wynn with the U.S. Attorney’s Office for the Northern District of Georgia and the Department of Health and Human Services - Office of Inspector General.
The claims asserted against the defendants are allegations only and there has been no determination of liability. The lawsuit is captioned United States v. Charles C. Adams, M.D., et al., Civil Action No. 4:18-cv-00191-HLM (N.D.Ga. 2018).
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.
Texas Man Pleads Guilty to "Sextorting" Minors in IllinoisRead the Press Release
PEORIA, Ill. – Sentencing is scheduled in January 2019, for a Texas man, Mark P. Barnwell, 35, who pleaded guilty to producing child pornography in 2016 and threatening minor victims in Illinois and seven other states while he was required to register as a sex offender.
Barnwell, of Whitehouse, Texas entered guilty pleas in Peoria before U.S. District Judge Joe Billy McDade on Aug. 29. Sentencing is scheduled on Jan. 9, 2019.
According to admissions made in connection with his guilty plea, Barnwell, a registered sex offender, used false personas on Facebook and controlled multiple female-presenting profiles to contact female Facebook users, including minors, and advertised a modeling opportunity he claimed would pay up to thousands of dollars per photo shoot.
At Barnwell’s urging, the minors who accepted the offer then took, and sent to him, photographs which they believed were being produced for the purposes of a modeling portfolio. The minor victims believed they would be paid by cash, check, or direct deposit once they completed the modeling portfolio process. At Barnwell’s explicit direction, the photographs taken by the minors progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once he obtained compromising images, Barnwell threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with demands for additional images. In total, Barnwell used this scheme to obtain nude photographs from 43 minor victims located in nine judicial districts across eight states.
In addition to the material, including videos and images, relating to sexual exploitation of children discovered on Barnwell’s devices, law enforcement authorities also found multiple videos captured by Barnwell, including several where he filmed up women’s skirts in public or attempted to do so. Authorities additionally discovered a large number of videos where Barnwell surreptitiously filmed women using public bathrooms. The authorities also discovered what is believed to be the hidden camera he used to capture the videos.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Vital assistance was provided by the United States Attorneys’ offices for the Central District of California, Southern District of Mississippi, District of Nevada, Eastern District of Texas, Northern District of Texas, Western District of Washington, Northern District of Iowa, and Southern District of West Virginia. The matter is being prosecuted by Assistant U.S. Attorneys Ronald Hanna and Katherine Legge of the Central District of Illinois and Trial Attorney William Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Summit Man Sentenced to Seven Years in Federal Prison for Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced today that U.S. District Judge Charles B. Kornmann sentenced a Summit, South Dakota, man convicted of sexual abuse of a child on August 29, 2018.
Desi Duncan Campbell, age 39, was sentenced to 7 years in federal prison, followed by 5 years of supervised release, and ordered to pay $100 in a special assessment to the Federal Crime Victims Fund.
Between approximately 2004 and 2008, Campbell engaged in sexual acts with a child. At the times of Campbell’s conduct, the victim was under the age of twelve.
This case was investigated by the Sisseton-Wahpeton Sioux Tribe’s Law Enforcement, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
Campbell will self-surrender to federal prison on September 11, 2018, to begin serving his sentence.
Suboxone Clinic Doctor Pleads Guilty to Unlawfully Dispensing Controlled Substances, Health Care FraudRead the Press Release
PITTSBURGH, PA - A prescribing physician with SKS Associates, an opioid treatment facility located in Johnstown, PA, guilty in federal court to charges of dispense and distribution of controlled substances, conspiracy to distribute controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Dr. Michael Cash, 50, of Indiana, PA pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Cash conspired to create and submit unlawful prescriptions for buprenorphine, and then unlawfully dispensed those controlled substances to other persons. Cash also committed health care fraud by submitting fraudulent claims to Medicare, for payments to cover the costs of the unlawfully prescribed buprenorphine.
Judge scheduled sentencing for January 17, 2019 at 2:15 p.m. The law provides for a total sentence of 30 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Cash on bond
Assistant United States Attorney Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
Southern Colorado Man Sentenced for False Statement in the Application and Use of PassportsRead the Press Release
DENVER – A Southern Colorado man, Ronald Ray Horner, age 58, of Huerfano County, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 27 months in federal prison, followed by 3 years on supervised release for making false statements in the application and use of passports, U.S. Attorney Bob Troyer, and Angela Brenner, Resident Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service, Denver Resident Office (DSS) announced. Horner, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
On March 15, 2017, Horner was indicted by a federal grand jury in Denver. On June 18, 2018, Horner was found guilty following a one-day trial. The jury deliberated for about 30 minutes before reaching their verdict.
During the summer of 2016, Horner was indicted in the District of Montana for the offense of Transportation of Child Pornography. As a result of that offense, the defendant appeared in court, and was released on bond, subject to various conditions. Two of those conditions were that he was required to surrender his passport and was ordered not to obtain another one.
On August 9, 2016, the defendant went to the United States Post Office in Walsenburg, Colorado and submitted an application for a passport. He claimed that he had lost his passport, explaining, “Passport was left in suitcase after vacation (Jan 2016). Suitcase had torn seam and was discarded. I forgot the passport was in the suitcase.” The defendant further explained that he threw the suitcase in a dumpster outside the Mini Mart in Walsenburg, Colorado in January 2016. He submitted these forms, along with the requisite forms of identification, as his application for a new passport.
Shortly thereafter, the defendant received a new passport in the mail. He left Colorado, traveled to Mexico on September 3, 2016, and then made his way through multiple countries in South America, including Brazil, Uruguay, and Guyana. He ultimately ended up in Trinidad and Tobago after being deported from Guyana. A DSS Special Agent spoke with Horner in Trinidad and Tobago, confiscated the passport, and arranged for the defendant’s transportation back to the United States. Following the defendant’s return to the United States, he was convicted of Transportation of Child Pornography in Montana and sentenced to 154 months. Judge Brimmer ordered the 27-month sentence in this case to be served consecutively to that sentence.
“This case demonstrates why keeping our passport system secure is so important,” said U.S. Attorney Bob Troyer. “By lying to get a new passport, a person charged with child porn crimes was able to travel to 5 other countries while he was under indictment. We can’t and won’t allow that.”
“The Diplomatic Security Service is firmly committed to making sure that those who commit passport and visa fraud face consequences for their criminal actions,” said Resident Agent in Charge Angela Brenner of the Diplomatic Security Service. “The strong relationship we enjoy with the U.S. Attorney’s Office and other law enforcement agencies around the world is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
This case was investigated by the U.S. State Department’s Diplomatic Security Service. The defendant was prosecuted by Special Assistant U.S. Attorneys Daniel McIntyre and Assistant U.S. Attorneys Robert Brown and Rebecca Weber.
Six Freeport Men Arrested on Drug ChargesRead the Press Release
ROCKFORD — Six Freeport residents were arrested yesterday on criminal charges as part of a joint federal and state investigation into heroin and cocaine sales in the Freeport area. The arrests follow criminal indictments returned Tuesday by a federal grand jury in Rockford.
Arrested were JOSEPH COLEMAN, also known as “Big Joe,” 34, who was charged with three counts of distributing heroin and one count of possession with intent to distribute heroin and cocaine between April 2017 and June 2017; TRISTAN EUELL, also known as “Whip,” 35, charged with one count of distributing heroin in May 2017; ANTHONY THOMPSON, also known as “Blimp,” 42, charged with one count of distributing cocaine in April 2017; FRANK HOWARD, also known as “Nub,” 36, charged with four counts of distributing cocaine and one count of possession with intent to distribute cocaine between February 2018 and April 2018; KYRAN WILLIAMS, also known as “Skinny,” 23, charged with four counts of distributing heroin between April 2017 and June 2018; and TERRANCE YOUNG, also known as, “Sleepy,” 45, charged with three counts of distributing cocaine between July 2017 and December 2017.
During the investigation, law enforcement seized four firearms, distribution quantities of heroin, cocaine, and marijuana, and over $65,000 in cash.
The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Leo P. Schmitz, Director of the Illinois State Police; and Todd Barkalow, Freeport Police Chief. The investigation was conducted by the Rockford Area Violent Gang Task Force, the Stateline Area Narcotics Team (“SLANT”), a task force led by the Illinois State Police, and the Freeport Police Department. The Rockford Area Violent Gang Task Force is led by the Federal Bureau of Investigation and includes members of the FBI and the Rockford, Loves Park, and Freeport Police Departments. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
“Heroin and cocaine are dangerous narcotics that are ravaging families and communities in northwestern Illinois,” said U.S. Attorney Lausch. “These indictments are the result of the diligent efforts of investigators and prosecutors to identify and dismantle a significant drug trafficking organization.”
“These arrests and seizures demonstrate our unwavering commitment to work with our partners to put an end to drug-related violence anywhere it's found in northern Illinois,” said FBI SAC Sallet. “We are proud to work side by side with the U.S. Attorney's Office, the Rockford Area Violent Gang Task Force, the Freeport Police Department and the Illinois State Police's State Line Area Narcotics Team to bring these individuals to justice. Those who endanger our communities with drugs should realize, you will be stopped.”
“The arrests are the result of a multiagency initiative that targeted drug trafficking in our city,” said Freeport Chief Barkalow. “This investigation, spanning 24 months, is in cooperation with the FBI Safe Streets Task Force and the Illinois State Police, that targeted upper-level narcotic dealers. These arrests should send a loud and clear message to those in our city committing drug offenses: we know who you are, the community knows who you are, and you could be next.”
“The work with the FBI is an example of multiple agency work across city, state and federal agencies to address criminal elements in the City of Freeport,” said Lowell Crow, Freeport City Manager.
Defendants Coleman, Thompson, Howard, Williams, and Terrance Young all appeared yesterday before U.S. Magistrate Judge Iain D. Johnston in federal court in Rockford, and pleaded not guilty. Detention hearings are set for next week. Defendant Euell is scheduled to appear before U.S. Magistrate Johnston on Wednesday, Sept. 6, 2018, for an initial appearance and detention hearing.
Each count of the indictment carries a mandatory minimum penalty of five years in prison and a maximum penalty of up to 40 years in prison. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Seven Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that seven previously deported aliens were indicted separately on August 29, 2018, by a federal grand jury for illegal re-entry into the United States.
According to United States Attorney David J. Freed, Mario Mendez-Morales, age 41, of Mexico, was previously deported from the United States to Mexico in August 2009, March 2010, May 2010, and February 2013. He is alleged to have illegally re-entered the United States sometime after February 2013 and was found in the United States in Schuylkill County, Pennsylvania after eluding examination or inspection by immigration officers.
Mendez-Morales faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Bernardo Palma-Flores, age 32, of Mexico, was previously deported from the United States to Mexico in March 2018. He is alleged to have illegally re-entered the United States sometime after March 2018, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Carlos Sales-Picazo, age 27, of Mexico, was previously deported from the United States to Mexico in January 2010. He is alleged to have illegally re-entered the United States sometime after January 2010, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Sixto Hernandez-Arias, age 44, of El Salvador, was previously deported from the United States to El Salvador in June 2012. He is alleged to have illegally re-entered the United States sometime after June 2012, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Eigner Zunun-Gonzalez, age 27, of Mexico, was previously deported from the United States to Mexico in August 2009. He is alleged to have illegally re-entered the United States sometime after August 2009, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Facundo Gregorio-Gonzalez, age 42, of Mexico, was previously deported from the United States to Mexico in August 2015. He is alleged to have illegally re-entered the United States sometime after August 2015, and was found in the United States in Union County, Pennsylvania after eluding examination or inspection by immigration officers.
Mario Castillo-Carmona, age 28, of Mexico, was previously deported from the United States to Mexico in May 2011. He is alleged to have illegally re-entered the United States sometime after May 2011, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Palma-Flores, Sales-Picazo, Hernandez-Arias, Zunun-Gonzalez, Gregorio-Gonzalez, and Castillo-Carmona all face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scott County Hunters Plead Guilty, Sentenced for Hunting Doves over Baited FieldRead the Press Release
Jackson, Miss. – Eleven hunters pled guilty last week before U.S. Magistrate Judge Linda Anderson to federal charges of hunting mourning dove over a baited field in Scott County last September, announced U.S. Attorney Mike Hurst.
On September 2, 2017, agents from the U.S. Fish and Wildlife Service found eleven men hunting mourning dove over a field in Scott County, Mississippi, that had been baited with cracked corn, millet and rice. The field had been under surveillance after having been previously identified as illegally baited for purposes of hunting mourning dove.
The following individuals pled guilty to hunting over a baited field: Richard Carl Boozer, 38, of Morton; George Mitchell Davis, 38, of Brandon; James Nicholas Davis, 34, of Forest; Dink Rainey Gibson IV, 38, of Morton; John Nick Harrison, 34, of Brandon; Mark Edward Holifield, 52, of Raleigh; Michael L. Parks, 61, of Brandon; Hiram Luther Richardson, 35, of Morton; Justin Cochran Russell, 37, of Forest; Preston Lamar Woods, 38, of Forest; and Roger Douglas Woods, 65, of Forest. They were each sentenced to a one year term of probation, during which time they forfeit their right to hunt anywhere in the world, and a $600 fine.
Additionally, Dink Rainey Gibson IV pled guilty to illegally placing the bait on the field and was ordered to pay an additional fine of $2,400 and serve two years of probation. Justin Cochran Russell pled guilty to hunting without a license and was ordered to pay an additional $600 fine. Richard Carl Boozer pled guilty to hunting migratory birds with a shotgun capable of holding more than three shotgun shells and was sentenced to pay an additional $600 fine.
All eleven defendants were charged under the Migratory Bird Treaty Act, a federal law that regulates the hunting of migratory birds. Hunting over a baited field carries a maximum possible sentence of up to six months in prison and up to a $15,000 fine. Placement of bait carries a maximum possible sentence of up to one year in prison and up to a $100,000 fine.
The case was investigated by the U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Dave Fulcher.
Rochester Man Pleads Guilty to Fentanyl and Heroin TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Andrew Lynch, 37, of Rochester, pleaded guilty to distributing fentanyl and heroin.
According to court documents and statements made in court, on two occasions in May and June of 2017, Lynch sold an individual cooperating with the Drug Enforcement Administration a total of 190 pills that contained quantities of fentanyl and heroin.
The types of pills involved in this case are commonly referred to as “dirty 30s.” These pills are extremely dangerous because they are often sold as 30 milligram oxycodone pills to individuals who are unaware that the pills actually contain fentanyl and/or heroin.
Lynch is scheduled to be sentenced on December 12, 2018.
“Fentanyl and heroin are deadly drugs that have caused grave damage to our community,” said U.S. Attorney Murray. “When individuals buy pills on the street, they are putting themselves at risk because the pills may not be legitimate and could be extremely dangerous. In order to protect the citizens of New Hampshire, we work closely with our law enforcement partners to identify and prosecute drug dealers who sell these dangerous substances.”
This investigation was conducted by the DEA. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Real Estate Developer, Wife, Charged with Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on August 29, 2018, a federal grand jury in New Haven returned a 21-count superseding indictment charging ROBERT V. MATTHEWS, 60, LESLIE R. EVANS, 71, and MARIA MATTHEWS, also known as “Mia Matthews,” 48, all of Palm Beach, Florida, with various offenses stemming from a scheme that defrauded foreign investors.
On March 14, 2018, a grand jury returned a 20-count indictment charging Robert Matthews and Evans with fraud and money laundering offenses. The superseding indictment adds one count of tax evasion against Robert Matthews and Maria Matthews.
According to the indictment, Robert Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach. Robert and Maria Matthews, who are married, maintained residences in both Florida and Connecticut. Evans is a real estate attorney.
The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.
The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.
The indictment alleges that Robert Matthews, Evans and others defrauded EB-5 investors, SARC and the one-percent owner of PHH by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use either into an account controlled by Robert Matthews, Evans and their agents, or into Evans’ Interest on Trust Account (“IOTA”) that was used to maintain his clients’ funds.
The indictment alleges that, while Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. The indictment further alleges that Robert Matthews, Evans and others used EB-5 funding for purposes not related to the PHH project, including for Robert and Maria Matthews’ personal gain. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.
As part of this alleged scheme, Robert Matthews, Evans and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert and Maria Matthews’ credit card debts, to purchase two properties located in Washington Depot, Connecticut, and to assist in Robert Matthews’ purchase of a 151-foot yacht. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Evans, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.
Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut.
The indictment further alleges that, between approximately 2009 and March 2017, Robert and Maria Matthews willfully attempted to evade paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and the Evans IOTA account to pay for personal expenses. In addition, after Robert and Maria Matthews received notice from the IRS that a failure to pay their delinquent income tax liabilities by September 2, 2016, would result in the seizure of all of their assets, Robert Matthews sold, on September 2, 2016, a Mercedes for $82,000 and, after paying off a lien, caused the proceeds of the sale to be wired into the Evans IOTA account.
The indictment charges Robert Matthews with eight counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years, one count of bank fraud, an offense that carries a maximum term of imprisonment of 30 years, one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years, and 10 counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years.
The indictment charges Evans with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank and wire fraud, and one count of illegal monetary transactions.
Robert Matthews and Maria Matthews are charged with one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Robert Matthews and Evans were arrested on March 15, 2018, and are released on bonds. Maria Matthews and Robert Matthews are scheduled to be arraigned by U.S. Magistrate Judge Robert M. Spector in New Haven on September 4 at 10:30 a.m.
On March 7, 2018, Gerry Matthews, of Middlebury, Connecticut, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit wire fraud. On March 12, 2018, Laudano, of Boynton Beach, Florida, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions. They await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.
Port St. Lucie Man Sentenced to 14 Years in Prison for Possessing Child PornographyRead the Press Release
Yesterday, Donald Rowley, 62, of Port St. Lucie, Florida, was sentenced by U.S. District Court Robin L. Rosenberg to 168 months in prison and a lifetime of supervised release, after previously pleading guilty to possessing and receiving child pornography.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to the court record, from July through December 2017, Rowley used a peer-2-peer internet network to search for, receive and share child pornography. Upon executing a search warrant at Rowley’s home, law enforcement discovered computers with over 450 videos of child pornography, search terms for child pornography, and peer-2-peer software.
Rowley had previously pled guilty to committing a sex offense involving two young girls in 1988, in the State of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
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.
Ponchatoula Man Pleads Guilty to Receipt of Materials Involving the Sexual Exploitation of Minors and for Violation of the Federal Gun Control ActRead the Press Release
DANIEL JUSTIN MAHAN, age 42, a resident of Ponchatoula, Louisiana, pleaded guilty yesterday to receipt of materials involving the sexual exploitation of minors and violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to previously filed court documents, MAHAN was arrested on March 15, 2018, by Special Agents of the Federal Bureau of Investigation (FBI) subsequent to the execution of a search warrant at his home. MAHAN was found to be in possession twenty-four (24) weapons and over 26,000 rounds of ammunition. MAHAN has a prior felony conviction for bank robbery which prohibits him from possessing firearms and ammunition. The FBI’s investigation further revealed that MAHAN was also in possession of a laptop computer which contained images depicting the sexual victimization of prepubescent children.
MAHAN faces a mandatory minimum five year term of imprisonment and a maximum sentence of twenty years imprisonment to be followed by up to a life term of supervised release, and a $10,000,000.00 fine as to the child exploitation charge. As to the weapons charge, he additionally faces a maximum sentence of maximum sentence of ten years imprisonment to be followed by a three year term of supervised release, and a fine of up to $250,000. Mahan will be sentenced on November 29, 2018.
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.”
This case was investigated by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Tracey N. Knight.
Pittston Man Sentenced to Six Years’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Samuel Lombardo, age 53, of Pittston, Pennsylvania was sentenced to 72 months’ imprisonment on August 29, 2018, by United States District Court Judge James M. Munley for drug trafficking and firearms offenses.
According to United States Attorney David J. Freed, Lombardo was convicted after a two-day jury trial in April 2018, for selling heroin on August 12 and 13, 2018, possessing with intent to distribute heroin, and carrying a .25 caliber Armi Tanfolio semi-automatic handgun during his drug trafficking activities.
The evidence at trial proved that Lombardo sold more than 60 grams of heroin during the course of one year, which is the equivalent to approximately 2,500-3,000 individual doses of heroin.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Kingston Police Department. Assistant United States Attorneys Evan Gotlob and Phil Caraballo prosecuted the case
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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.
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Peever Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Peever, South Dakota, man has been indicted by a federal grand jury for aggravated sexual abuse of a child.
David Moses Seaboy, Sr., age 56, was indicted on August 7, 2018. He appeared before U.S. Magistrate Judge William Gerdes on August 28, 2018, and pled not guilty to the Indictment.
The maximum penalties upon conviction are as follows: mandatory minimum of thirty (30) years and up to life imprisonment, $250,000 fine, or both; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution.
According to the Indictment, in November 2007, Seaboy did knowingly engage in and attempt to engage in a sexual act with a person who had not attained the age of 12, that is, the intentional touching, not through the clothing, of the genitalia of a child. The Indictment alleges that Seaboy acted with an intent to abuse, humiliate, harass, and degrade the child, or to arouse and gratify his sexual desires.
The charge is merely an accusation and Seaboy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Seaboy was remanded to the custody of the U.S. Marshal’s Service. A trial date of October 16, 2018, has been set.
Over 20 MS-13 Gang Members Arrested in California for Assault and Drug TraffickingRead the Press Release
As part of a multi-agency operation, more than 20 individuals associated with Mara Salvatrucha (MS-13) were arrested in Mendota and Los Angeles, California on federal and state charges in connection with their gang activities, including assault with a dangerous weapon in aid of racketeering and conspiracy to distribute and possess with intent to distribute controlled substances. Additionally, two federal indictments were unsealed today: one charging two MS-13 members with kidnapping and murder in aid of racketeering and another charging three MS-13 gang members with conspiracy and assault with a dangerous weapon in aid of racketeering.
The charges were announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott for the Eastern District of California, California Attorney General Xavier Becerra, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office, Fresno County District Attorney Lisa Smittcamp, Fresno County Sheriff Margaret Mims, and Special Agent in Charge Ryan L. Spradlin of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) for northern California and northern Nevada.
The investigation leading to yesterday’s arrests began following reports that MS-13 had established a presence in Fresno County, California. The investigation centered in and around the City of Mendota, a Central Valley town 35 miles west of Fresno. Investigators found evidence of broad criminal activity, including murder, assault, firearms possession and drug trafficking activity.
“MS-13 is a brutal transnational criminal organization that has wreaked havoc in communities across the United States,” said Assistant Attorney General Benczkowski. “The gang engages in indiscriminate and senseless acts of violence, as demonstrated by the charges announced today, which allege murder, attempted murder, and drug trafficking in the State of California. Dismantling MS-13 and other violent gangs that terrorize our streets will remain a top priority of the Department of Justice. Today’s announcement is the result of comprehensive and coordinated federal, state, and local law enforcement action, and I commend the Eastern District of California and all of our partners for their hard work on this case. It is precisely this kind of coordinated effort that allows us to most effectively protect our communities and hold MS-13 members accountable for their heinous crimes.”
“The operation leading to today’s arrests reflects the incredible teamwork between our federal, state, and local law enforcement partners, and our shared commitment to keeping our communities safe from violent criminal gangs like MS-13, said U.S. Attorney Scott. “This investigation had a strong impact not only in Fresno County, but across the state and country as we were able to provide information and leads to law enforcement in Los Angeles, Nevada, Texas, New York, and elsewhere to help prevent and solve serious crimes, including murder. Criminal enterprises like MS-13 will not be tolerated in any of our towns, no matter how small.”
“Global criminal organizations like the MS-13 strike fear into our local communities here in the United States by committing violent and often brutal crimes in our backyards; but by all levels of law enforcement working together, their vicious and dangerous acts will not go unpunished,” said HSI Special Agent in Charge Spradlin. “While transnational gangs may have tentacles that reach globally, Homeland Security Investigations does as well and is well‑equipped to intercept these threats to our national security.”
“The FBI is committed to aggressively investigating and disrupting gang activity,” said FBI Special Agent in Charge Ragan. “Through the Safe Streets Task Force and the Transnational Anti-Gang Initiative, the FBI leverages resources to target MS-13--the first and only street gang to be designated by the U.S. government as a transnational criminal organization--by focusing on the gang’s structure and leadership. To ensure success, the FBI it committed to working in close cooperation with federal, state, local and foreign law enforcements partners to coordinate operations and share information.”
The first federal charges filed as a result of the investigation were filed in January but were not unsealed until today. That indictment alleges that on Dec. 18, 2017, two MS-13 gang members operating out of Mendota – Israel Rivas Gomez and John Doe, aka, “Marcos Castro,” “Seco,” “Calakas,” and “Flaco,” – kidnapped and murdered a man in Fresno County in furtherance of MS-13’s criminal gang enterprise. Another indictment filed in April and unsealed today alleges that on May 5, 2017, Luis Reynaldo Reyes Castillo, aka “Molesto,” Jose Audon Reyes Barrera, aka “Calacas,” and Nilson Israel Reyes Mendoza, committed an assault with dangerous weapons for the purpose of maintaining MS-13’s presence in the community and to gain status within MS-13.
Several other MS-13 gang members were arrested yesterday based on a complaint filed this week and unsealed today. The complaint charges 16 individuals affiliated with MS-13 in Fresno County with various crimes, including two separate, gang-related assaults and drug trafficking activity to support the gang’s activity. Those documents allege that on Aug. 12, Lorenzo Amador, aka Catracho, along with two others, stabbed a rival gang member in the back at an intersection in Mendota. The victim was transported to the hospital, underwent surgery, and survived. Court documents also allege that on May 14, Denis Barrera-Palma, aka Gunner, Ever Membreno, aka Canecho, and Edgar Torres-Amador, participated in a gang-related assault of a man walking near an elementary school, which ended after school employees arrived on the scene while one gang member beat the victim with a metal pipe.
Additionally, the complaint alleges that between May 2017 and August 2018, 16 members of the MS-13 enterprise participated in a drug trafficking conspiracy in both Fresno County and Los Angeles. These defendants allegedly obtained, sold, and profited from street level drug dealing, and used the proceeds to further MS-13’s criminal objectives.
As part of this operation, 19 federal and four state search warrants were served in Mendota, Kerman, and Los Angeles. Additionally, California Department of Corrections and Rehabilitation conducted searches of 37 cells in 11 state prisons in California on individuals related to this investigation. Among the items seized were cellphones, drugs and weapons.
Amongst the 21 charged federally include:
- Henry Castro aka “Marcos,” 20, of Mendota, is charged with kidnapping and murder;
- Israel Rivas Gomez, aka “Pirra,” 23, of Mendota, is charged with kidnapping and murder;
- Ever Membreno, aka, “Canecho,” 18, of Mendota, is charged with assault with a dangerous weapon – a pipe and drug conspiracy;
- Edgar Torres-Amador, 21, of Mendota, is charged with assault with a dangerous weapon – a pipe;
- Lorenzo Amador, aka, “Catracho,” 20, of Mendota, is charged with assault with a dangerous weapon – a stabbing instrument and drug conspiracy;
- Denis Barrera-Palma, aka “Gunner,” 24, of Mendota, is charged with assault with a dangerous weapon – a pipe and drug conspiracy;
- Luis Reyes, aka Molesto, 24, of Mendota, is charged with conspiracy to commit and commission of assault with a dangerous weapon;
- Jose Audon Reyes-Barrera, 21, of Mendota, is charged with conspiracy to commit and commission of assault with a dangerous weapon;
- Nelson Hernandez, 20, of Mendota, is charged with conspiracy to commit and commission of assault with a dangerous weapon;
- Mario Garcia-Villanueva, aka “Ton,” 31, of Mendota, is charged with drug conspiracy;
- Francisco Lizano, aka, “Javi,” and “Activo,” 24, of Mendota, is charged with drug conspiracy;
- Jefferson Guevara, aka “Chino,” 19, of Los Angeles, is charged with drug conspiracy;
- Jose Wilson Navarette-Mendez, aka “Wilson,” 21, of Mendota, is charged with drug conspiracy;
- Denis Alfaro-Torres, aka Payin, 22, of Mendota, is charged with drug conspiracy;
- Santos Bonilla, aka Cuervo, 26, of Mendota, is charged with drug conspiracy;
- Henry Bonilla, aka “Repollo” and “Repollin,” 18, of Mendota, is charged with drug conspiracy;
- Marvin Villegas-Segovia, aka, “Chaparro,” 21, of Mendota, is charged with drug conspiracy;
- Christian Hidalgo, aka “Guero,” “Hero,” “Werito,” and “White Boy, “21, of Mendota, is charged with drug conspiracy;
- Brenda Yajaira Morales, aka “Yari,” 25, of Mendota, is charged with drug conspiracy;
- Claudia Lizaola, aka “Maniaka,” 39, of San Bernardino, is charged with drug conspiracy; and
- Oscar Reyes, aka “Tamagas,” 29, of Mendota, is charged with drug conspiracy.
Six additional MS-13 members were charged with state crimes.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the FBI, HSI, the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers.
Assisting in the arrests were the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Clovis Police Department.
Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section of the Justice Department, Assistant U.S. Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, Ross Pearson and Angela Scott of the Eastern District of California and Senior Deputy District Attorney Dennis Lewis are handling the prosecutions.
The charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Opioid Distributor Sentenced to 100 Months in Custody for Using Fraudulent Medical Prescriptions to Acquire OxycodoneRead the Press Release
NEWS RELEASE SUMMARY – August 31, 2018
SAN DIEGO – Today, United States District Court Judge Gonzalo P. Curiel sentenced Edwin Fuller to 100 months in custody following a November 2017 jury trial where he was convicted of conspiring to possess with the intent to distribute oxycodone, in violation of Title 21, U.S.C., Section 841(a)(1) and 846.
Fuller used fraudulent medical prescriptions to acquire approximately 20,520 tablets of oxycodone for the purpose of distribution. In handing down today’s sentence, Judge Curiel stated oxycodone is a very dangerous drug and defendant was responsible for acquiring and distributing large amounts of tablets.
DEFENDANTS Case Number 16cr0867-GPC
Edwin Fuller Age: 39 Los Angeles, CA
SUMMARY OF CHARGES
Conspiracy to possess controlled substances with the intent to distribute – Title 21, U.S.C., Section 841(a)(1) and 846
Maximum penalty: 20 years imprisonment
AGENCY
Drug Enforcement Administration
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
North Carolina Man Sentenced in Cigarette Trafficking ConspiracyRead the Press Release
United States Attorney Duane A. Evans announced that ATALLA age 40, of Wilmington, North Carolina, was sentenced yesterday after previously pleading guilty to conspiracy to traffic in contraband cigarettes and evading the federal excise tax imposed on tobacco.
U.S. District Martin L.C. Feldman sentenced ATALLA one (1) year and one (1) day term of imprisonment to be followed by a two (2) year term of supervised release. ATALLA was additionally ordered to pay restitution in the amount of $ 235,698.39.
According to previously filed court documents, co-defendants Justin Brown, Joshua Carthon and Garrett Partman, all local law enforcement officers at the time of the Indictment, were utilized to protect and transport the shipment of contraband cigarettes across state lines. ATALLA, along with co-defendants Anwar Abdelmajid-Ahmad and Jadallah Saed, would then distribute and sell the contraband cigarettes in North Carolina and other states where the cigarette taxes are higher than Louisiana, resulting in a total tax loss to the federal and state governments of between $400,000 and $900,000.
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Division and Immigration and Customs Enforcement/Homeland Security Investigations. Assistant United States Attorneys Tracey N. Knight and Irene Gonzalez are in charge of the prosecution.
New Jersey Man Indicted for Promoting Tax Fraud SchemeRead the Press Release
A federal grand jury sitting in Camden, New Jersey has returned an indictment, which was unsealed today, charging an Atlantic City man with conspiring to defraud the United States by promoting a tax refund scheme, filing false claims, and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Kenneth Crawford, Jr., and his co-conspirators, between 2015 and 2016, promoted and executed a “mortgage recovery” tax fraud scheme by assisting client taxpayers in obtaining the payment of false claims for tax refunds from the Internal Revenue Service (IRS). The alleged scheme was premised on a false claim that clients could recover, through tax refunds, mortgage debt they owed and paid to financial institutions. To promote the scheme, Crawford allegedly recruited and convinced clients, many of whom were behind on mortgage payments and faced foreclosure, to file false tax returns seeking tax refunds. Crawford and his co-conspirators then allegedly caused false tax forms to be filed with the IRS to make it appear that clients were eligible for refunds by falsely claiming that substantial amounts of taxes had been withheld and paid to the IRS.
The indictment further alleges that when the IRS discovered the fraud and attempted to recover the refunds issued, Crawford supplied clients with false documents to send to the IRS in response to IRS demands and warning letters. Crawford allegedly instructed clients on how to deceive the IRS by, among other things, concealing his role in causing the false returns to be filed.
The indictment charges that Crawford’s scheme resulted in over $2.3 million in fraudulent refund claims being submitted to the IRS, of which the IRS paid out more than $1.3 million. Crawford allegedly charged his clients a fee for his services of approximately 25 percent of the refund obtained.
If convicted, Crawford faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each false claim count, and three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution, and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief John Kane and Trial Attorney Sean Green of the Tax Division, who are prosecuting the case.
Morgan City man sentenced to 15 months in prison for omitting more than $250,000 of income on tax returnRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that a Morgan City man was sentenced to one year and three months in prison for failing to report more than $250,000 in income on his 2012 tax return.
Victory Nam Ho, 39, of Morgan City, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of filing a false tax return. The defendant was also sentenced to one year of supervised release and was ordered to pay $69,167 in restitution. According to the May 23, 2018 guilty plea, Ho engaged in stock transactions and made $251,196 in 2012, but when he filed his taxes, he reported $14,742 as his income. As a result, he paid no income tax that year, which resulted in a loss of $69,167 to the U.S. Treasury.
The IRS conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Mission Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Jodie Brave, a/k/a Jody Brave, age 47, was indicted on August 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 29, 2018, Brave unlawfully committed a domestic assault against a spouse or intimate partner and that, at the time of the domestic assault, Brave had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The charge is merely an accusation and Brave is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Brave was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minnesota Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Moose Lake, Minnesota, man has been indicted by a federal grand jury for aggravated sexual abuse of a child and for abusive sexual contact of a child under twelve years.
Roland Joseph Brant, age 63, was indicted on June 6, 2018. He appeared before U.S. Magistrate Judge William Gerdes on August 28, 2018, and pled not guilty to the Indictment.
The maximum penalties upon conviction for each count are as follows: life imprisonment, a $250,000 fine, or both; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
According to the Indictment, between February and July, 2007, in Roberts County, South Dakota, Roland Joseph Brant did knowingly engage in and attempt to engage in sexual acts with a child who had not attained the age of 12.
The charges are merely accusations and Brant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Brant was remanded to the custody of a facility in Minnesota. A trial date of October 16, 2018, has been set.
Mini-Cassia Drug Task Force and Eastern Idaho Partnership Announce Federal Prosecutions from Minidoka and Cassia CountiesRead the Press Release
POCATELLO – United States Attorney Bart M. Davis, Minidoka County Sheriff Eric Snarr, and Cassia County Sheriff Jay Heward have announced that in the last year, fourteen individuals from Minidoka and Cassia Counties have been charged in federal court with drug trafficking and firearm crimes. The criminal prosecutions are a result of collaborative efforts between the two sheriffs’ offices, prosecutors from Minidoka and Cassia County, the U.S. Attorney’s Office, and the Eastern Idaho Partnership.
Under the direction of the two sheriffs, the Mini-Cassia Drug Task Force has worked closely with federal investigators from the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to investigate federal drug trafficking and firearm cases. The cases were presented to a Special Assistant United States Attorney (SAUSA) employed by the Eastern Idaho Partnership, and charged federally.
Minidoka County Sheriff Eric Snarr said, “We’ve made a concerted effort to work together with our prosecutors, nearby agencies, and the Eastern Idaho Partnership to crack down on drug trafficking and firearms in Minidoka and Cassia Counties. These fourteen prosecutions represent a lot of hard work, teamwork, and commitment from all involved.”
According to documents filed in federal court, the following fourteen individuals have been charged federally through the efforts:
- Emmanuel Garza, Adolfo Mata Lopez, and Gabriela Martinez-Esteban were charged in November 2017 and January 2018 with conspiracy to distribute methamphetamine. If convicted, they face up to 40 years imprisonment, a $5,000,000 fine, and at least four years supervised release.
- Crystal Ruiz was charged with possession with intent to distribute methamphetamine. Ruiz faces up to twenty years imprisonment, a $1,000,000 fine, and at least three years supervised release.
- Wifredo Quezada-Hernandez, David Ochoa-Navarro, Miguel Cruz-Tarin, and Sylvia Luna-Ochoa were charged jointly with conspiracy to distribute methamphetamine. A ten-count superseding indictment filed in federal court in May charged Quezada-Hernandez with five counts of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, and conspiracy to distribute methamphetamine. Ochoa-Navarro, Cruz-Tarin, and Luna-Ochoa are each charged with two counts of possession with intent to distribute methamphetamine, and one count of conspiracy to distribute methamphetamine. If convicted, each faces terms of at least five years imprisonment. Ochoa-Navarro and Cruz-Tarin face up to forty years imprisonment, a $5,000,000 fine, and at least four years supervised release. Quezada-Hernandez and Luna-Ochoa face up to life imprisonment, a $10,000,000 fine, and at least five years supervised release.
- Stephen Gary Graf and Jose Antonio Vazquez were charged jointly with conspiracy to distribute methamphetamine in April. Both are also charged independently in the indictment with one count of possession with intent to distribute methamphetamine. If convicted, each faces up to forty years imprisonment, a $5,000,000 fine, and at least four years supervised release.
- Robert Mark Fisk, Benito Nevarez Molina, and Jesus A. Diaz Rubio were jointly charged with conspiracy to distribute methamphetamine in May. If convicted, each faces up to forty years imprisonment, a $5,000,000 fine, and at least four years supervised release.
- Alan Ray Mooso was charged with possession of a firearm by a prohibited person in August. According to the indictment in his case, Mooso possessed a firearm after being convicted of a felony. If convicted, Mooso faces up to 10 years imprisonment, a $250,000 fine, and three years supervised release.
“We are taking drug and firearm crime very seriously in the Mini-Cassia area,” said Cassia County Sheriff Jay Heward. “We will continue to work hard with those in the Eastern Idaho Partnership to help Minidoka and Cassia counties to be the safe places they are.”
The Mini-Cassia Drug Task Force is a joint group of deputy-detectives from the Minidoka County and Cassia County Sheriff’s offices. The task force focuses its efforts at interdicting drug, firearm, and other criminal activity in the area.
The eastern Idaho SAUSA program is sponsored by the Eastern Idaho Partnership (EIP), a coalition of local city and county officials in eastern Idaho. The Partnership provides approximately 30 percent of the SAUSA’s salary and benefits; the State of Idaho, through the Idaho Department of Correction, contributes the remaining 70 percent.
The current SAUSA, Bryan Wheat, works out of the U.S. Attorney’s Office’s Pocatello branch and serves agencies and cities involved in the Partnership. The Partnership’s goal is to federally prosecute serious drug trafficking, firearm, and violent crime in eastern Idaho, focusing on persistent offenders. Individuals who are prosecuted in federal court and ordered to serve federal prison sentences serve their sentences in federal prisons, rather than in Idaho-funded prisons and jails. Federal sentences are served out of state, which helps to disrupt criminal networks. Additionally, prosecuting offenders in federal court allows law enforcement and prosecutors to pursue longer sentences through the federal sentencing structure.
Sheriff Snarr also said, “By working together, we multiply our efforts. We are very happy with the hard work and accomplishments of everyone involved in this joint effort. We are saving Idaho taxpayer money, while holding serious offenders accountable. We believe our citizens have and will continue to see real benefits to our community from this.”
"The Cassia County Prosecuting Attorney's Office diligently serves with the Mini-Cassia Drug Task Force and the eastern Idaho SAUSA program in aggressively investigating and prosecuting individuals for illegal drug trafficking, delivery, and possession and unlawful possession of firearms in Cassia County,” said Cassia County Prosecutor Abenroth. “The support provided by the United States Attorney for the District of Idaho is integral to the successful investigation and prosecution of these individuals within our county and individual communities in the past year."
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Miami-Dade Police Officer Indicted on Conspiracy and Theft of Government Money ChargesRead the Press Release
A Miami-Dade Police Officer had her initial appearance today on conspiracy and theft of government money charges.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Ebony Nesbitt, 28, of North Miami, was charged by indictment with one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371; and one count of theft of government money, in violation of Title 18, United States Code, Section 641. If convicted, Nesbitt faces a maximum statutory sentence of 5 years in prison for the conspiracy and 10 years in prison for the theft. Nesbitt is scheduled to be arraigned on the indictment on September 12, 2018.
According to the indictment, Nesbitt participated in a scheme in which she and her co-conspirators designated Nesbitt’s Higher One, Inc. bank account to receive the direct deposit of a fraudulently obtained federal income tax refund. The refund was deposited into Nesbitt’s Higher One, Inc. account on October 2, 2013, before Nesbitt joined the MDPD as a police officer.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty in a court of law.
Mr. Greenberg commends the investigative efforts of the FBI, IRS-CI, MDPD, and FBI Miami Area Corruption Task Force in this matter. This case is being prosecuted by Assistant U.S. Attorney Brian Dobbins. Per U.S Attorneys Office Ebony Nesbitt was acquitted of the charges at trial
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.
McLaughlin Man Charged with Possession of Firearms by a Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for possession of firearms by a prohibited person.
Jesse Boyd Brown Otter, age 37, was indicted on August 7, 2018. He appeared before U.S. Magistrate Judge William Gerdes on August 28, 2018, and pled not guilty to the Indictment.
The maximum penalties upon conviction are as follows: ten (10) years in prison; $250,000 fine; three (3) years supervised release, two (2) additional years if revoked; $100 special assessment for victim/witness fund; forfeiture of the firearms; restitution may be ordered.
According to the Indictment, on or about the 28th day of December, 2017, in the District of South Dakota, Jesse Boyd Brown Otter, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of a controlled substance, did knowingly possess a firearm and ammunition. The indictment alleges that Brown Otter possessed a Bond Arms, Model “Cowboy Texas Defender” 45 Long Colt caliber/410 gauge derringer-style handgun, bearing serial number 33176, and a Bond Arms, Model “Snake Slayer” 45 Long Colt caliber/410 gauge derringer-style handgun, bearing serial number 61571, and 4 rounds of Starline 45 Long Colt ammunition.
The charge is merely an accusation and Brown Otter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Brown Otter was released by the court. A trial date of October 16, 2018, has been set.
McLaughlin Man Charged with Assaulting Two Federal Officers and Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for assault of a federal officer (two counts) and domestic assault by an habitual offender.
Daniel Lee Hoisington, age 37, was indicted on August 7, 2018. He appeared before U.S. Magistrate Judge William Gerdes on August 28, 2018, and pled not guilty to the Indictment.
The maximum penalties upon conviction for assault of a federal officer are as follows: eight (8) years in prison; and/or a $250,000 fine; a period of supervised release of three (3) years; $100 special assessment; restitution may be ordered. The maximum penalties upon conviction of domestic assault by an habitual offender are as follows: five (5) years in prison; and/or a $250,000 fine; a period of supervised release of three (3) years; $100 special assessment; restitution may be ordered.
According to the Indictment, on or about the 29th day of June, 2018, in McLaughlin, Hoisington did forcibly assault, resist, oppose, impede, intimidate, and interfere with two officers, while the officers were engaged in the performance of their official duties. The officers were employed as federal law enforcement officers with the Bureau of Indian Affairs, Department of Interior, assigned to perform law enforcement functions.
The Indictment further states on or about the 29th day of June, 2018, Hoisington did unlawfully commit a domestic assault upon a person, when at the time of the domestic assault, Daniel Hoisington 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.
The charges are merely an accusation and Hoisington is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Hoisington was remanded to the custody of the U.S. Marshal’s Service. A trial date of October 16, 2018, has been set.
Maryland Man Charged with Bank RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Donnell, age 56, of Freeland, Maryland, was indicted on August 29, 2018, by a federal grand jury for bank robbery.
According to United States Attorney David J. Freed, the indictment alleges that on May 23, 2018, Donnell robbed the BB&T Bank located in Shrewsbury Township, York County, Pennsylvania of $1,584.
The case was investigated by the Southern Regional Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation, with assistance from the Maryland State Police. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is twenty years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Man and Woman Charged with Illegal Wildlife OffenseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lone Wolf (formerly known as Jeffrey B. Myers), age 40, and Deborah Burnett, age 55, both of Havre de Grace, Maryland, were charged in separate criminal informations on August 30, 2018, for illegal possession of wildlife.
According to U.S. Attorney David J. Freed, Wolf and Burnett were charged in one-count criminal informations with illegal receipt of wildlife parts. The criminal informations allege that Wolf and Burnett bartered for and bought bald eagle parts, a great blue heron carcass and a snowy owl carcass in violation of the Lacey Act, which prohibits the sale and receipt of wildlife taken in violation of other laws, including the Bald and Golden Eagle Protection Act.
The charges stem from an investigation conducted by the U.S. Fish and Wildlife Service and the Pennsylvania Game Commission. Assistant U.S. Attorney James T. Clancy is prosecuting the cases.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these Lacey Act charges is one-year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Man Sentenced for Drug Trafficking and Illegally Dealing 200 GunsRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man was sentenced today to 12 years in prison for running a drug trafficking conspiracy and illegally dealing over 200 firearms.
According to court documents, beginning in August 2015 and continuing through his arrest in March 2018, Bobby Perkins, Jr., 29, supervised a conspiracy to distribute marijuana, ecstasy, cocaine, crack cocaine, and heroin in Fredericksburg and Stafford County. During the course of the conspiracy, Perkins routinely carried on his person semi-automatic pistols to avoid being robbed of his drugs and the proceeds of his drug-distribution activities. Additionally, Perkins supplied his co-conspirators with firearms, which they used in furtherance of the conspiracy.
“This man represents a danger to society through his pedaling of poison and trafficking of illegal firearms,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Perkins trafficked large amounts of potentially lethal drugs and sold over 200 guns, some of which were found at crime scenes, including homicides. Together with our law enforcement partners we are targeting areas where firearms and the drug trade are fueling violence and endangering the safety of those communities. We are committed to our mission of public safety and will continue to aggressively pursue those who choose to endanger the safety of the communities we serve.”
Separately, during an approximately five-month period in 2015, in Stafford County, Hanover County, and Henrico County, Perkins engaged in the business of dealing in firearms without a license. Perkins acquired and re-sold over 200 semi-automatic pistols, at least 93 of which have been recovered by law enforcement, including at the scene of homicides. Most of the firearms were recovered in Washington, D.C., with others found in Maryland, Virginia, New York, New Jersey, and Pennsylvania. Perkins knew that several of the individuals to whom he sold the firearms were convicted felons.
“ATF works every day with our law enforcement partners to rid our streets of crime, not only in large cities but also in small-town areas, like Stafford and Henrico Counties,” said Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Knowingly selling firearms without a license and selling firearms to convicted felons is a violation of federal law. When you commit a crime, there is a price to pay, and we will hold those responsible who violate federal laws.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Alexander E. Blanchard and Carina A. Cuellar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-214.
Man Pleads Guilty to Threatening to Murder Family of FCC ChairmanRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to threatening to kill the family of Ajit Pai, Chairman of the Federal Communications Commission, for Pai’s role in repealing regulations relating to net neutrality.
According to court documents, on or about Dec. 19 and 20, 2017, Markara Man, 33, of Norwalk, California, sent three emails to Chairman Pai’s email accounts. The first email accused Chairman Pai of being responsible for a child who allegedly had committed suicide because of the repeal of net neutrality regulations. The second email listed three locations in or around Arlington, and threatened to kill the Chairman’s family members. The third email had no message in its body, but included an image depicting Chairman Pai and, in the foreground and slightly out of focus, a framed photograph of Chairman Pai and his family. The FBI traced the emails to Man’s residence in Norwalk, California, and when initially confronted in May 2018, Man admitted to the FBI that he sent the email threatening Chairman Pai’s family.
Court documents further show that during the FBI’s search of his residence, Man factory reset a cell phone upon learning of the search and before law enforcement could seize the phone. This action caused data to be wiped from the device. When asked about the phone being in setup mode, Man lied to the FBI and claimed that he had received it a month earlier and not set it up yet.
Man faces a maximum penalty of 10 years in prison when sentenced on December 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and M. Jay Farr, Arlington County Chief of Police, made the announcement after the plea was accepted by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Alexander P. Berrang is prosecuting the case.
The FBI’s Los Angeles Field Office, and the Federal Protective Service provided significant assistance in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-CR-308.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on August 30, 2018, by Magistrate Mark A. Moreno
Tyler Harmon, age 27, was sentenced to 2 years probation, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Harmon was indicted by a federal grand jury on February 15, 2017. He pled guilty on May 16, 2018.
The conviction stems from an incident on November 12, 2016, at Lower Brule, when a Bureau of Indian Affairs officer approached an intoxicated Harmon in an attempt to arrest him for public intoxication. At which point, Harmon forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with the officer, while said officer was employed and engaged in the performance of his official duties with the Bureau of Indian Affairs. Harmon continued to resist arrest and would not comply with the officer’s commands until he was taken into custody.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Harmon was released.
Lockport Man Pleads Guilty to Selling HeroinRead 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 Dion Cheatham, 44, of Lockport, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder to conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who are handling the case, stated that between June 2013 and September 2015, the defendant distributed heroin and fentanyl to multiple customers that was supplied to him by co-defendant Trent Hamilton. Prior to engaging in drug transactions, Cheatham went to Hamilton's house at 184 High Street in Lockport to obtain heroin and fentanyl for resale. On December 13, 2014, the defendant was intercepted on the phone engaging in a coded conversation with Hamilton for the purpose of acquiring controlled substances for re-distribution. Soon after the intercepted phone call, video surveillance captured Cheatham arriving at 184 High Street.
Charges are pending against co-defendant Trent Hamilton. 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.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.
Sentencing will be scheduled at a later date.
Las Vegas Man Pleads Guilty to Participating in Large-Scale Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD, N.H. - United States Attorney Scott W. Murray announced that Edward Espejo, 44, formerly of Las Vegas, Nevada, pleaded guilty in federal court to participating in a conspiracy to distribute methamphetamine.
According to court documents and statements made in court, from at least July of 2016 through May of 2018, Espejo supplied drug distributors in New Hampshire with shipments of methamphetamine ranging in size from a few ounces to more than 20 pounds at a time.
The investigation began in late 2016, when the DEA and the Postal Inspection Service began to see numerous parcels mailed from Las Vegas, Nevada, to New Hampshire that were suspected of containing methamphetamine. In addition, law enforcement officers began to investigate parcels mailed from New Hampshire to Las Vegas containing large amounts of money, as well as suspected drug payments made through money transfers from New Hampshire to Las Vegas.
Law enforcement agents eventually arrested several members of a methamphetamine distribution ring operating in New Hampshire, and traced the source of their drugs to Espejo. On May 8, 2018, investigators arrested Espejo at his residence in Las Vegas.
Several of the New Hampshire-based drug distributors supplied by Espejo already have been sentenced in federal court. These individuals include: (1) Brian Lacourse, who was sentenced to six years in prison on August 23, 2018; (2) Katrina Jones, who was sentenced to 200 months in prison on August 9, 2018; (3) Dustin Moss, who was sentenced to 25 years in prison on August 2, 2018; and (4) Sabrina Moss, who was sentenced to six years in prison on June 28, 2018.
Espejo is scheduled to be sentenced on December 7, 2018.
“Methamphetamine is a dangerous, and sometimes deadly, drug that presents a growing threat to the Granite State,” said U.S. Attorney Murray. “This conspiracy was responsible for distributing disturbingly large quantities of methamphetamine that posed a grave risk to public health and safety. I commend the hard work of the investigating agents who were able to dismantle this significant cross-country drug trafficking operation.”
“Today’s plea is an example of the U.S. Postal Inspection Service’s commitment to dismantling drug trafficking organizations that use the U.S. Mail to facilitate the distribution of narcotics such as methamphetamine. We will continue to be focused on aggressively pursuing those who disregard our laws and bring these drugs into our state and our communities,” said Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division
This matter was investigated by the U.S. Postal Inspection Service and the DEA. The case is being prosecuted by Assistant U.S. Attorneys Johns S. Davis and Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Kernersville Man Sentenced in Child Pornography CaseRead the Press Release
GREENSBORO, N.C. – A Kernersville man who pleaded guilty to receipt of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
WILLIAM MICHAEL FOURES, 45, of Kernersville, North Carolina, pleaded guilty on March 8, 2018, to one count of receipt of child pornography. He was sentenced by United States District Judge N. Carlton Tilley, Jr. to 78 months of imprisonment followed by 25 years of supervised release.
In May 2017, Kernersville Police Department received a tip that FOURES possessed child pornography on his laptop computer. Police questioned FOURES and, with his permission, reviewed his web browser history. They then obtained a search warrant for his residence. The subsequent search revealed that FOURES possessed well over 1,000 image and numerous video files depicting child pornography. The files were stored on two laptops and 70 CDs. In addition, FOURES had used his printer to print over 100 of the child pornography images. When questioned, FOURES admitted to possessing the contraband for his sexual gratification.
This case was investigated by the Kernersville Police Department, a member of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The North Carolina State Bureau of Investigation conducted computer forensic analysis on the electronics seized and Homeland Security Investigations adopted the case for federal prosecution. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Jury Finds Texas Man Guilty of Aggravated Assault with Hate/Bias-Crime EnhancementRead the Press Release
WASHINGTON – Dylan Millhausen, 26, of Houston, Texas, has been found guilty by a jury of aggravated assault, with a hate-crime enhancement, for beating an Indian Sikh man two years ago in Northwest Washington, U.S. Attorney Jessie K. Liu announced today.
The verdict was returned on Aug. 30, 2018, following a trial in the Superior Court of the District of Columbia. The jury added the bias-related enhancement relating to the targeting of the victim because of race, religion, or national origin. The charge of aggravated assault carries a statutory maximum of 10 years in prison. With the enhancement, the statutory maximum increases to 15 years. The Honorable Ronna L. Beck scheduled sentencing for Nov. 30, 2018.
According to the government’s evidence, in the early morning hours of Aug. 21, 2016, the victim, who wears a turban, was out with friends in an area south of Dupont Circle. The victim, then 27, had gone to a lounge with his business school friends. As they were leaving, at approximately 2:45 a.m., Millhausen - a complete stranger to the group - came up behind the victim, pulled off his turban, and punched him in the face until he was unconscious. The beating necessitated a hospital visit and diagnostic treatment.
Millhausen was quickly apprehended at the scene by officers with the Metropolitan Police Department (MPD). Upon being apprehended by the police, the defendant told the police about his world view, likening the victim to Islamic extremists to whom terrorist attacks and plots in Europe had been attributed throughout 2016.
Following a short period of civilian custody in Washington, D.C., Millhausen was found guilty of unrelated charges by a military judge in court martial proceedings within the United States Air Force and sentenced to a period of further incarceration.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by law enforcement partners in the U.S. Marshals Service and United States Air Force. She acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Allen; Victim/Witness Service Coordinator Katina Adams-Washington; Paralegal Specialists Debra McPherson, Tamaya Reid, and Tierra Nanches, and Assistant U.S. Attorneys Sonali D. Patel, Puja Bhatia, and Ethan Carroll, who investigated and prosecuted the case.
Jacksonville Man Indicted for Possessing Short Barreled Rifle While Under A Repeat Violence InjunctionRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Joshua Lee Hill (32, Jacksonville) with possessing a short-barreled rifle that was not registered to him and with possessing a firearm while he was subject to a state order of protection against repeat violence. If convicted on all counts, Hill faces a maximum penalty of 20 years in federal prison.
According to the indictment, on August 28, 2018, Hill possessed a Smith & Wesson rifle with a barrel less than 16 inches in length, which was not registered to him in the National Firearms Registration and Transfer Record. Rifles with barrels of less than 16 inches in length are required by federal law to be registered. The indictment also charges that, at the time Hill possessed the short-barreled rifle, he was subject to an injunction for protection against repeat violence that had been issued in 2015 and that prohibited Hill from stalking or threatening an intimate partner. Individuals who are subject to such an order are prohibited from possessing any firearms.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Indiana Man Sentenced for Counterfeiting at Dayton Dragons GameRead the Press Release
DAYTON – Kenneth Stopkotte, 53, of Unionville, Ind., was sentenced in U.S. District Court to 21 months in prison for using counterfeit money. He was also sentenced to an additional nine months in prison, to be served consecutively, for violating his terms of previous supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, and Dayton Police Chief Richard S. Biehl announced the sentence imposed today by U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, Stopkotte was on supervised release following a federal conviction for bank larceny, money laundering and access device fraud when he purchased more than 200 counterfeit $20 bills off a website on the “dark web.”
In April 2018, Stopkotte traveled from his home in Unionville, Ind. to Dayton to attend a Dayton Dragons minor league baseball game. He carried with him most of the counterfeit money and made numerous purchases, including his ticket, food and beverage and other concessions. He had previously used some of the fake $20 bills at a sporting event in Arizona.
He used 41 of the counterfeit $20 bills at the Dayton Dragons game, receiving genuine currency back on his purchases. As investigators approached him at the game, he attempted to hide 54 other bills under a stadium refrigerator. Law enforcement officials also discovered Stopkotte hid $166 in genuine currency in the sole of his shoe, and he had additional genuine currency elsewhere in his clothing.
Investigators later found an additional 136 fake $20 bills hidden in the cover of a boat at his residence in Indiana.
Stopkotte’s iPhone history revealed numerous searches regarding counterfeiting and research on the dark web.
Stopkotte pleaded guilty in this case in May 2018.
All of the above activity took place while Stopkotte was still on supervised release after a different federal conviction in the Middle District of Tennessee in 2014, in which the defendant stole more than $66,000 by taking donation checks out of the mailboxes of multiple churches. He was sentenced to 26 months in prison.
As part of the sentence imposed today, Stopkotte will forfeit 231 fake $20 bills, an iPhone and the nearly $495 in cash he had in his possession at the time of his arrest.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Dayton Police, as well as First Assistant United States Attorney Vipal J. Patel, who is representing the United States in this case.
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Illinois Man Admits to Perpetrating Identity Theft and Unemployment Benefits Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RICHARD M. LACH, 32, of Richton Park, Illinois, pleaded guilty yesterday in New Haven federal court to wire fraud and aggravated identity theft in connection with a scheme to defraud state unemployment insurance programs in Connecticut and 37 other states.
According to court documents and statements made in court, LACH fraudulently filed claims with the Connecticut Department of Labor for unemployment benefits in the names of identity theft victims, using their names, dates of birth and social security numbers. LACH directed that the unemployment benefits be directly deposited to Green Dot debit cards that he opened in the names of other identity theft victims. For claims that were approved, the unemployment benefits were deposited to the Green Dot cards, and LACH withdrew the funds or otherwise spent the funds for his own personal use and benefit.
In addition to fraudulently obtaining unemployment benefits from the Connecticut Department of Labor, LACH admitted that he fraudulently filed or attempted to file for unemployment benefits, in the names of identity theft victims, from unemployment agencies in Alabama, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington DC, Wisconsin, and West Virginia.
In pleading guilty, LACH admitted that, in some cases, he purchased the personal information of identity theft victims through online websites, including a website that sold the information for $1, in bitcoins, per identity. LACH shared his account on that website. He also shared his Green Dot cards, and several email accounts he used, with other individuals so that they also could file fraudulent claims for unemployment benefits.
In total, LACH and others purchased identity information for approximately 845 identity theft victims through LACH’s account on the website that sold the information. Between February 2017 and January 2018, LACH and others filed approximately 380 fraudulent claims for unemployment benefits in the names of identity theft victims. If the state agencies had approved and paid benefits on all 380 claims, the total loss from this scheme would have exceeded $3.8 million. However, the state agencies approved and paid benefits on only 42 of the claims, resulting in an actual loss of $54,006.
LACH further admitted that he fraudulently purchased cars and obtained car loans in the names of two identity theft victims. In September 2017, he fraudulently purchased a car for approximately $59,000 from a dealership in Florida and had it shipped to Illinois. LACH provided copies of a fake driver’s license and utility bill in the name of in an identity theft victim in order to obtain a car loan to purchase the vehicle. Similarly, in January 2018, LACH fraudulently purchased a car for approximately $83,000 from a dealership in Tennessee. Again, LACH provided copies of a fake driver’s license, utility bill, W-2, and paystub in the name of an identity theft victim.
LACH pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, an offense that carries a mandatory, consecutive two-year term of imprisonment. LACH is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on November 27, 2018.
LACH has been detained since his arrest on February 2, 2018.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, New York State Department of Labor, State of New Jersey Department of Labor and Workforce Development, and Matteson (Illinois) Police Department, with assistance from the unemployment agencies in the other states.
This case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.