Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 20 July 2018
Albuquerque Man Sentenced to Eleven Years for Synthetic Cannabinoid Trafficking ConvictionRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson and Special Agent in Charge Kyle W. Williamson of the DEA’s El Paso Division announced today that Fidal Abdeljawad, 51, of Albuquerque, N.M., was sentenced late yesterday afternoon in federal court to 132 months of imprisonment for his conviction on synthetic cannabinoids trafficking charges. Abdeljawad will be on supervised release for three years after completing his prison sentence.
Abdeljawad and co-defendant Ashley Watson, 31, also an Albuquerque resident, were charged with trafficking in synthetic cannabinoids in an indictment that was filed in Sept. 2015, and was superseded in Dec. 2015. The four-count superseding indictment charged Abdeljawad and Watson with participating in a synthetic cannabinoids trafficking conspiracy from March 2014 through Feb. 2015. The superseding indictment also charged the defendants with possessing synthetic cannabinoids with intent to distribute on May 8, 2014, and Feb. 19, 2015, and Abdeljawad with possessing synthetic cannabinoids with intent to distribute on May 7, 2014. Abdeljawad and Watson committed the crimes in Bernalillo County, N.M.
The controlled substances charged in the indictment are commonly referred to as synthetic cannabinoids or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Abdeljawad and Watson proceeded to trial on May 1, 2017. The jury returned a guilty verdict against Abdeljawad on all four counts of the superseding indictment on May 5, 2017. The jury also returned a guilty verdict against Watson on three counts of the superseding indictment charging her with conspiracy, possession of synthetic cannabinoids with intent to distribute and attempt to possess synthetic cannabinoids with intent to distribute.
Testimony at trial established that the DEA initiated an investigation into synthetic cannabinoids trafficking in Albuquerque in 2014, after receiving information that Abdeljawad, the owner of “Sean’s Smoke Shop” on Central Avenue SE in Albuquerque, and others were distributing synthetic cannabinoids. Law enforcement officers testified that on May 7, 2014, they executed searches of “Sean’s Smoke Shop” and Abdeljawad’s van, and seized 97 packets of synthetic cannabinoids and bundles of cash totaling more than $10,000. Abdeljawad was arrested that day on state charges and later was released on bond. The next day, the DEA learned that Abdeljawad had a storage unit near “Sean’s Smoke Shop,” which was leased in Watson’s name. During a search of the storage unit, the DEA seized 549 additional packets of synthetic cannabinoids.
Other evidence at trial, including telephone conversations and text messages captured through court-authorized wire-taps, established that despite his arrest on state charges, Abdeljawad continued to distribute synthetic cannabinoids in collaboration with Watson. Abdeljawad would order shipments of synthetic cannabinoids from suppliers, who delivered the synthetic cannabinoids to Watson and she distributed the synthetic cannabinoids to others in exchange for money. On Feb. 19, 2015, the DEA intercepted a package that had been shipped to Watson. The DEA opened the package pursuant to a search warrant, and found that it contained 100 packets of synthetic cannabinoids. The DEA arrested Abdeljawad and Watson in Sept. 2015, after they were indicted.
Watson was sentenced on Sept. 7, 2017, to 48 months in prison followed by five years of supervised release.
The Albuquerque office of the DEA investigated this case as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. Assistant U.S. Attorneys Timothy S. Vasquez and Kristopher N. Houghton prosecuted the case.
Abington Man Pleads Guilty to Robbing Three BanksRead the Press Release
BOSTON – An Abington man pleaded guilty yesterday in federal court in Boston to robbing three Greater Boston-area banks.
John Soule, 53, pleaded guilty to three counts of bank robbery. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Oct. 19, 2018. Soule was arrested and charged in September 2017 and has been detained since.
On July 12, 2017, Soule entered a branch of the Eastern Bank in Cambridge, where he jumped over the teller’s counter, stated that he had a knife, and demanded the bank’s money. The tellers gave Soule money from their drawers, and Soule exited the bank with $12,940.
On Aug. 9, 2017, Soule entered a branch of the Webster Bank on Franklin Street in Boston and announced a robbery. He jumped over the tellers’ counter and demanded the bank’s money. The tellers gave Soule money from their drawers, and he exited the bank with $3,137.
One month later, on Sep. 8, 2017, Soule entered a branch of the Rockland Trust on Quincy Street in Quincy, where he approached a teller demanding money and then jumped over the counter and entered the bank’s vault. A post-robbery audit determined that Soule stole $42,747 during the robbery.
Video surveillance cameras outside of all three banks captured images of Soule moments before the robberies and following the robberies on a mountain bike.
Throughout their investigation, law enforcement received various tips and information that Soule was the person responsible. On Sept. 29, 2017, law enforcement located and arrested Soule, who, at the time of his arrest, was in possession of over $8,000. Soule was later interviewed and admitted his involvement in the robberies, providing law enforcement with specific details.
Each charge of bank robbery provides for a sentence of no greater 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting this case.
24 Sentenced in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – Twenty-one members of a massive India-based fraud and money laundering conspiracy that defrauded thousands of U.S. residents of hundreds of millions of dollars were sentenced this week to terms of imprisonment up to 20 years. Three other conspirators were sentenced earlier this year for laundering proceeds for the conspiracy, which was operated out of India-based call centers that targeted U.S. residents in various telephone fraud schemes. This week’s sentencing hearings took place in Houston before the Honorable David Hittner of the Southern District of Texas.
Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA), and Special Agent in Charge David Green of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) made the announcement today.
“The stiff sentences imposed this week represent the culmination of the first-ever large scale, multi-jurisdiction prosecution targeting the India call center scam industry,” said Sessions. “This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public. The transnational criminal ring of fraudsters and money launderers who conspired to bilk older Americans, legal immigrants and many others out of their life savings through their lies, threats and financial schemes must recognize that all resources at the Department’s disposal will be deployed to shut down these telefraud schemes, put those responsible in jail and bring a measure of justice to the victims.”
“This type of fraud is sickening,” said Patrick. “However, after years of investigation and incredible hard work by multiple agents and attorneys, these con artists are finally headed to prison. Their cruel tactics preyed on some very vulnerable people, thereby stealing millions from them. These sentences should send a strong message that we will follow the trail no matter how difficult and seek justice for those victimized by these types of transnational schemes. We will simply not stand by and allow criminals to use the names of legitimate government agencies to enrich themselves by victimizing others.”
“Today’s sentences should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope that they provide a sense of justice to the victims as well,” said Benner. “There is no safe haven from U.S. law enforcement. HSI will continue to utilize our unique investigative mandate, in conjunction with our local, state and Federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”
“The sentences imposed on these defendants validate our efforts to bring to justice scammers who defraud taxpayers by impersonating employees of the IRS,” said George. “I wish to thank the Department of Justice, the multiple federal agencies involved and most importantly, my own investigators who continue to devote countless hours to these cases. Taxpayers must remain wary of unsolicited telephone calls from individuals claiming to be IRS employees. If any taxpayer believes they or someone they know is a victim of an IRS impersonation scam, they should report it to TIGTA at www.tigta.gov<http://www.tigta.gov> or by calling 1-800-366-4484.”
“The sentences imposed this week provide a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society,” said Green. “These scammers should know that their actions carry real consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will go above and beyond to find them, identify them and hold them accountable for their crimes.”
Miteshkumar Patel, 42, of Illinois, was sentenced to serve 240 months in prison followed by three years of supervised release on the charge of money laundering conspiracy. According to the factual basis of his plea agreement, Patel served as the manager of a Chicago-based crew of “runners” that liquidated and laundered fraud proceeds generated by callers at India-based call centers. Those callers used call scripts and lead lists to target victims throughout the United States with telefraud schemes in which the callers impersonated U.S. government employees from the IRS and U.S. Citizenship and Immigration Services (USCIS). The callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately. After the victims transferred money to the callers, a network of U.S.-based runners moved expeditiously to liquidate and launder fraud proceeds through the use of anonymous stored value cards. In addition to recruiting, training and tasking runners in his crew, Patel also coordinated directly with the Indian side of the conspiracy about the operation of the scheme. Patel was held accountable for laundering between $9.5 and $25 million for the scheme.
Hardik Patel, 31, of Illinois, was sentenced to serve 188 months in prison followed by three years of supervised release on the charge of wire fraud conspiracy. Hardik Patel consented to removal to India upon completion of his prison term. According to the factual basis of his plea agreement, Hardik Patel was a co-owner and manager of an India-based call center involved in the conspiracy. In addition to managing the day-to-day operations of a call center, Patel also processed payments and did bookkeeping for the various call centers involved in the fraud scheme. One of the India-based co-defendants with whom Patel communicated about the scheme was Sagar “Shaggy” Thakar, a payment processor that Indian authorities arrested in April 2017 in connection with call center fraud. After moving to the United States in 2015, Hardik Patel continued to promote the conspiracy by recruiting runners to liquidate fraud proceeds. He was held accountable for laundering between $3.5 and $9.5 million dollars for the scheme.
Sunny Joshi, aka Sharad Ishwarlal Joshi and Sunny Mahashanker Joshi, 47, of Sugar Land, Texas, was sentenced to serve 151 months in prison on the charge of money laundering conspiracy and 120 months in prison for naturalization fraud to run concurrently followed by three years of supervised release. According to the factual basis of his plea agreement, Joshi was a member of a Houston-based crew of runners that he co-managed with his brother, co-defendant Mike Joshi aka Rajesh Bhatt. Sunny Joshi communicated extensively with India-based co-defendants about the operations of the scheme and was held accountable for laundering between $3.5 and $9.5 million. Additionally, in connection with his sentence on the immigration charge, Judge Hittner entered an order revoking Joshi’s U.S. citizenship and requiring him to surrender his certificate of naturalization.
Twenty-two of the defendants sentenced before Judge Hittner were held jointly and severally liable for restitution of $8,970,396 payable to identified victims of their crimes. Additionally, the court entered individual preliminary orders of forfeiture against 21 defendants for assets that were seized in the case, and money judgments totaling more than $72,942,300.
Eighteen other defendants were also sentenced in Houston before Judge Hittner this week:
• Fahad Ali, 25, of Indiana, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
• Montu Barot, 30, of Illinois, was sentenced to serve 63 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Barot to India at the conclusion of his sentence.
• Rajesh Bhatt, aka Mike Joshi, 53, of Sugar Land, Texas, was sentenced to serve 145 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Bhatt to India at the conclusion of his sentence.
• Ashvinbhai Chaudhari, 28, of Pearsall, Texas, was sentenced to serve 87 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Jagdish Chaudhari, 39, of Alabama, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Chaudhari to India at the conclusion of his sentence.
• Rajesh Kumar, 39, of Arizona, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
• Jerry Norris, 47, of California, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
• Nilesh Pandya, 54, of Stafford, Texas, was sentenced to serve three years of probation on one count of conspiracy.
• Nilam Parikh, 46, of Alabama, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Bharatkumar Patel, 43, of Illinois, was sentenced to serve 50 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a judicial order to remove Patel to India at the conclusion of his sentence.
• Bhavesh Patel, 47, of Alabama, was sentenced to serve 121 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Dilipkumar A. Patel, 53, of California, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
• Dilipkumar R. Patel, 30, of Florida, was sentenced to serve 52 months in prison followed by three years of supervised release on one count of conspiracy.
• Harsh Patel, 28, of New Jersey, was sentenced to serve 82 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
• Nisarg Patel, 26, of New Jersey, was sentenced on one count of conspiracy. He received a prison term of 48 months in prison followed by three years of supervised release.
• Praful Patel, 50, of Florida, was sentenced to serve 60 months in prison followed by Three years of supervised release on one count of conspiracy.
• Rajubhai Patel, 32, of Illinois, was sentenced to serve 151 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Viraj Patel, 33, of California, was sentenced to serve 165 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
In addition to these 21 defendants, three others were previously sentenced for their involvement in the same fraud and money laundering scheme:
• Asmitaben Patel, 34, of Illinois, was sentenced before Judge Hittner on March 23. She received 24 months in prison on the charge of conspiracy.
• Dipakkumar Patel, 38, of Illinois, was sentenced before Judge Eleanor L. Ross in the Northern District of Georgia, on Feb. 14. Patel, who pleaded guilty to charges of conspiracy and passport fraud, was sentenced to serve a prison term of 51 months, to run concurrently. He was also ordered to pay restitution in the amount of $128,006.26.
• Raman Patel, 82, of Arizona, was sentenced before Judge John Tuchi in the District of Arizona on Jan. 29. In connection with his plea agreement, Raman Patel received a probationary sentence for his plea to conspiracy. He was also ordered to pay restitution in the amount of $76,314.38.
According to various admissions made in connection with the defendants’ guilty pleas, between 2012 and 2016, the defendants and their conspirators perpetrated a complex fraud and money laundering scheme in which individuals from call centers located in Ahmedabad, India, frequently impersonated officials from the IRS or USCIS in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Once a victim provided payment, the call centers turned to a network of runners based in the United States to liquidate and launder the extorted funds as quickly as possible by purchasing reloadable cards or retrieving wire transfers. In a typical scenario, call centers directed runners to purchase these stored value reloadable cards and transmit the unique card number to India-based co-conspirators who registered the cards using the misappropriated personal identifying information (PII) of U.S. citizens. The India-based co-conspirators then loaded these cards with scam funds obtained from victims. The runners used the stored value cards to purchase money orders that they deposited into the bank account of another person. For their services, the runners would earn a specific fee or a percentage of the funds. Runners also received victims’ funds via wire transfers, which were retrieved under fake names and through the use of using false identification documents, direct bank deposits by victims and Apple iTunes or other gift cards that victims purchased.
The indictment in this case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy and money laundering conspiracy. These defendants have yet to be arraigned in this case. An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG, and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys (EOUSA), Legal and Victim Programs, provided significant support to the prosecution.
Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
24 Defendants Sentenced in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
Twenty-one members of a massive India-based fraud and money laundering conspiracy that defrauded thousands of U.S. residents of hundreds of millions of dollars were sentenced this week to terms of imprisonment up to 20 years. Three other conspirators were sentenced earlier this year for laundering proceeds for the conspiracy, which was operated out of India-based call centers that targeted U.S. residents in various telephone fraud schemes. This week’s sentencing hearings took place in Houston, Texas, before the Honorable David Hittner of the Southern District of Texas.
Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA), and Special Agent in Charge David Green of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) Houston, Texas made the announcement today.
“The stiff sentences imposed this week represent the culmination of the first-ever large scale, multi-jurisdiction prosecution targeting the India call center scam industry,” said Attorney General Sessions. “This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public. The transnational criminal ring of fraudsters and money launderers who conspired to bilk older Americans, legal immigrants and many others out of their life savings through their lies, threats and financial schemes must recognize that all resources at the Department’s disposal will be deployed to shut down these telefraud schemes, put those responsible in jail, and bring a measure of justice to the victims.”
“This type of fraud is sickening,” said U.S. Attorney Patrick. “However, after years of investigation and incredible hard work by multiple agents and attorneys, these con artists are finally headed to prison. Their cruel tactics preyed on some very vulnerable people, thereby stealing millions from them. These sentences should send a strong message that we will follow the trail no matter how difficult and seek justice for those victimized by these types of transnational schemes. We will simply not stand by and allow criminals to use the names of legitimate government agencies to enrich themselves by victimizing others.”
“Today’s sentences should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope that they provide a sense of justice to the victims, as well,” said HSI Acting Executive Associate Director Derek N. Benner. “There is no safe haven from U.S. law enforcement. HSI will continue to utilize our unique investigative mandate, in conjunction with our local, state, and federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”
“The sentences imposed on these defendants validate our efforts to bring to justice scammers who defraud taxpayers by impersonating employees of the Internal Revenue Service,” said Inspector General J. Russell George. “I wish to thank the Department of Justice, the multiple federal agencies involved, and most importantly, my own investigators who continue to devote countless hours to these cases. Taxpayers must remain wary of unsolicited telephone calls from individuals claiming to be IRS employees. If any taxpayer believes they or someone they know is a victim of an IRS impersonation scam, they should report it to TIGTA at www.tigta.gov or by calling 1-800-366-4484.”
“The sentences imposed this week provide a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society,” said DHS-OIG Special Agent in Charge Green. “These scammers should know that their actions carry real consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will go above and beyond to find them, identify them and hold them accountable for their crimes.”
Miteshkumar Patel, 42, of Illinois, was sentenced to serve 240 months in prison followed by three years of supervised release on the charge of money laundering conspiracy. According to the factual basis of his plea agreement, Patel served as the manager of a Chicago-based crew of “runners” that liquidated and laundered fraud proceeds generated by callers at India-based call centers. Those callers used call scripts and lead lists to target victims throughout the United States with telefraud schemes in which the callers impersonated U.S. government employees from the IRS and U.S. Citizenship and Immigration Services (USCIS). The callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately. After the victims transferred money to the callers, a network of U.S.-based runners moved expeditiously to liquidate and launder fraud proceeds through the use of anonymous stored value cards. In addition to recruiting, training, and tasking runners in his crew, Patel also coordinated directly with the Indian side of the conspiracy about the operation of the scheme. Patel was held accountable for laundering between $9.5 and $25 million for the scheme.
Hardik Patel, 31, of Illinois, was sentenced to serve 188 months in prison followed by three years of supervised release on the charge of wire fraud conspiracy. Hardik consented to removal to India upon completion of his prison term. According to the factual basis of his plea agreement, Patel was a co-owner and manager of an India-based call center involved in the conspiracy. In addition to managing the day-to-day operations of a call center, Patel also processed payments and did bookkeeping for the various call centers involved in the fraud scheme. One of the India-based co-defendants with whom Patel communicated about the scheme was Sagar “Shaggy” Thakar, a payment processor that Indian authorities arrested in April 2017 in connection with call center fraud. After moving to the United States in 2015, Patel continued to promote the conspiracy by recruiting runners to liquidate fraud proceeds. Patel was held accountable for laundering between $3.5 and $9.5 million dollars for the scheme.
Sunny Joshi, aka Sharad Ishwarlal Joshi and Sunny Mahashanker Joshi, 47, of Texas, was sentenced to serve 151 months in prison on the charge of money laundering conspiracy, and 120 months in prison on the charge of naturalization fraud to run concurrent followed by three years of supervised release. According to the factual basis of his plea agreement, Joshi was a member of a Houston-based crew of runners that he co-managed with his brother, co-defendant Mike Joshi, aka Rajesh Bhatt. Sunny Joshi communicated extensively with India-based co-defendants about the operations of the scheme, and was held accountable for laundering between $3.5 and $9.5 million. Additionally, in connection with his sentence on the immigration charge, Judge Hittner entered an order revoking Joshi’s U.S. citizenship and requiring him to surrender his certificate of naturalization.
Twenty-two of the defendants sentenced before Judge Hittner were held jointly and severally liable for restitution of $8,970,396 payable to identified victims of their crimes. Additionally, the court entered individual preliminary orders of forfeiture against 21 defendants for assets that were seized in the case, and money judgments totaling over $72,942,300.
Eighteen other defendants were also sentenced in Houston before Judge Hittner this week:
- Fahad Ali, 25, of Indiana, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
- Montu Barot, 30, of Illinois, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Barot to India at the conclusion of his sentence.
- Rajesh Bhatt, aka Mike Joshi, 53, of Texas, was sentenced to serve 145 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Bhatt to India at the conclusion of his sentence.
- Ashvinbhai Chaudhari, 28, of Texas, was sentenced to serve 87 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Jagdish Chaudhari, 39, of Alabama, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Chaudhari to India at the conclusion of his sentence.
- Rajesh Kumar, 39, of Arizona, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner recommended deportation to India following his prison sentence.
- Jerry Norris, 47, of California, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
- Nilesh Pandya, 54, of Texas, was sentenced to serve three years probation on one count of conspiracy.
- Nilam Parikh, 46, of Alabama, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Bharatkumar Patel, 43, of Illinois, was sentenced to serve 50 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a judicial order to remove Patel to India at the conclusion of his sentence.
- Bhavesh Patel, 47, of Alabama, was sentenced to serve 121 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Dilipkumar A. Patel, 53, of California, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
- Dilipkumar R. Patel, 39, of Florida, was sentenced to serve 52 months in prison followed by three years of supervised release on one count of conspiracy.
- Harsh Patel, 28, of New Jersey, was sentenced to serve 82 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
- Nisarg Patel, 26, of New Jersey, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner recommended deportation to India following his prison sentence.
- Praful Patel, 50, of Florida, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
- Rajubhai Patel, 32, of Illinois, was sentenced to serve 151 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Viraj Patel, 33, of California, was sentenced to serve 165 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
In addition to these 21 defendants, three others were previously sentenced for their involvement in the same fraud and money laundering scheme:
- Asmitaben Patel, 34, of Illinois, was sentenced before Judge Hittner in the Southern District of Texas, Houston Division, on March 23. She was sentenced to serve 24 months in prison on the charge of conspiracy.
- Dipakkumar Patel, 38, of Illinois, was sentenced before Judge Eleanor L. Ross in the Northern District of Georgia, Atlanta Division, on Feb. 14. Patel, who pleaded guilty to charges of conspiracy and passport fraud, was sentenced to serve a prison term of 51 months, to run concurrently. He was also ordered to pay restitution in the amount of $128,006.26.
- Raman Patel, 82, of Arizona, was sentenced before Judge John Tuchi in the District of Arizona, Phoenix Division, on Jan. 29. In connection with his plea agreement, Raman Patel received a probationary sentence for his plea to conspiracy. He was also ordered to pay restitution in the amount of $76,314.38.
According to various admissions made in connection with the defendants’ guilty pleas, between 2012 and 2016, the defendants and their conspirators perpetrated a complex fraud and money laundering scheme in which individuals from call centers located in Ahmedabad, India, frequently impersonated officials from the IRS or USCIS in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Once a victim provided payment, the call centers turned to a network of runners based in the United States to liquidate and launder the extorted funds as quickly as possible by purchasing reloadable cards or retrieving wire transfers. In a typical scenario, call centers directed runners to purchase these stored value reloadable cards and transmit the unique card number to India-based co-conspirators who registered the cards using the misappropriated personal identifying information (PII) of U.S. citizens. The India-based co-conspirators then loaded these cards with scam funds obtained from victims. The runners used the stored value cards to purchase money orders that they deposited into the bank account of another person. For their services, the runners would earn a specific fee or a percentage of the funds. Runners also received victims’ funds via wire transfers, which were retrieved under fake names and through the use of using false identification documents, direct bank deposits by victims, and Apple iTunes or other gift cards that victims purchased.
The indictment in this case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy, and money laundering conspiracy. These defendants have yet to be arraigned in this case. An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG, and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys (EOUSA), Legal and Victim Programs, provided significant support to the prosecution.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Thursday 19 July 2018
“Porch Pirate” Heads to Federal Prison for Stealing PackagesRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man has been ordered to federal prison following his conviction of possessing stolen mail, announced U.S. Attorney Ryan K. Patrick along with Postal Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). Christopher Escobedo pleaded guilty March 29, 2018.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, handed Escobedo a 36-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that the four counts of conviction represented only those mail theft victims with camera surveillance on their porches and that Escobedo undoubtedly had numerous additional victims.
“As a result of investigative efforts, the sentence handed down in this case will send a clear message to mail thieves that they will be vigorously pursued and brought to justice. I commend the hard work and countless hours put forth by the USPIS and Corpus Christi Police Department (CCPD) which resulted in the arrest and prosecution of this individual,” said Gonzalez. “An important part of the USPIS mission is to ensure public trust in the mail and to defend the nation’s mail system from illicit financial gain.”
At the time of his plea, Escobedo admitted to stealing packages that the U.S. Postal Service (USPS) had left on the front porches of Corpus Christi residents between Dec. 31, 2017, and Jan. 8, 2018. Authorities identified Escobedo or his vehicle in video surveillance at a number of locations where packages were stolen. On one occasion, an observant neighbor confronted Escobedo as he attempted to take a package. The neighbor was able to supply the authorities with Escobedo’s description and a license plate number of the vehicle he was using. Postal inspectors used this information to track down Escobedo and link him to a number of other package thefts in the area.
Escobedo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The USPIS conducted the investigation with the assistance of CCPD. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Woman Pleads Guilty to Heroin and Fentanyl Distribution ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman pleaded guilty today to conspiracy to distribute heroin and fentanyl.
According to court documents, Paula Jean Sciotto, 36, participated in a heroin and fentanyl trafficking conspiracy in the Hampton Roads area from December 2015 until July 2017. During the course of the conspiracy, she distributed over 100 grams of heroin, as well as a quantity of fentanyl in Hampton and Newport News.
Sciotto pleaded guilty to conspiracy to distribute and possession with intent to distribute heroin and fentanyl. She faces a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison when sentenced on October 29. 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, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting 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. 4:18-cr-42.
Wise Resident Pleads Guilty to Opioid Importation Related ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that Kristofer Rucinski, 35, of Wise, Virginia, entered a guilty plea today in the United States District Court in Abingdon. Rucinski pleaded guilty to one count of using a communications facility to unlawfully import fentanyl and fentanyl analogues.
“Fentanyl and other deadly opioids have contributed to a public-health crisis in Western Virginia,” United States Attorney Cullen stated today. “We will continue to prosecute those who attempt to import these and other deadly drugs into the United States.”
According to evidence presented by Assistant United States Attorney Zachary Lee at today’s guilty plea hearing, Rucinski ordered and attempted to order fentanyl analogues over the internet to be delivered to his residence in Wise, Va. On February 15, 2018, Customs and Border Patrol officers intercepted a package sent from China containing a quantity of a fentanyl analogue that was addressed to Rucinski in Wise. A controlled delivery of the package was made on February 21 2018 at Rucinski’s residence, which resulted in a search warrant being executed at his residence and, ultimately Rucinski’s arrest. Additional analogue substances were located in the residence. Rucinski was interviewed by law enforcement and admitted that he had been ordering these drugs off the internet and using Bitcoin to pay for the drugs.
Rucinski is scheduled to be sentenced on October 11, 2018. He faces a potential maximum sentence of four years imprisonment and a fine of $250,000.
The investigation of the case was conducted by Homeland Security Investigations, Customs and Border Patrol, United States Postal Inspection Service, Drug Enforcement Administration, Wise Police Department and the Virginia State Police. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
West Lafayette, Indiana Couple IndictedRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced an indictment against Qingyou Han, age 59 and Lu Shao, age 51, of West Lafayette, Indiana for engaging in a scheme to defraud the National Science Foundation (“NSF”).
According to documents in this case, Dr. Qingyou Han, a Purdue University Professor and the Director of the Purdue Center for Materials Processing Research, and his wife Lu Shao, using a company they founded and operated called Hans Tech, applied for and received over $1.3 million in grants from NSF’s Small Business Innovation Research (“SBIR”) and Small Business Technology Transfer (“STTR”) programs and then used the funds at least in part to pay personal expenses and for the enrichment of themselves or their children. Among other claims, the indictment alleges that SHAO purchased a single family home in her name, signed a lease with herself on behalf of Hans Tech, and paid “rent” to herself from Hans Tech of $3,000 per month using grant funds. Funds were also purportedly used to pay Han and Shao’s minor children “salaries.” For example, in 2009, Dr. Han and Ms. Shao falsely represented to NSF that the research project’s “Secretary” and “Technical Assistant” earned $24,000 each via hourly wages and “consulting,” when, unbeknownst to NSF, the supposed employees were approximately 10 and 15 years old and they were Han and Shao’s own children.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of an investigation by the National Science Foundation’s Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Jill Koster and NSF OIG Investigative Attorney Sonia Khanzode.
# # #
Waterbury Man Sentenced to 8 Years in Federal Prison for Multi-State Robbery SpreeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ZACHARY PROVOST, 33, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 96 months of imprisonment, followed by five years of supervised release, for committing a series of robberies in Connecticut, Massachusetts and New Hampshire in late 2017.
According to court documents and statements made in court:
On November 29, 2017, PROVOST entered the Mobil gas station located at 385 Watertown Avenue in Waterbury, pulled out a knife, had the cashier open the cash register, and took approximately $700 from the register.
On November 30, 2017, PROVOST and another male entered the Cumberland Farms located at 1588 Watertown Avenue in Waterbury. After a knife was displayed and held to the cashier’s back, PROVOST and the other individual took approximately $50 from the cash register. They also stole other personal items from the cashier, and a customer’s wallet that contained approximately $150.
On December 1, 2017, PROVOST entered the TD Bank located at 121 Main Street in Southington, presented the teller with a note stating that he had a knife, and demanded that the teller provide him with money. The teller complied and gave PROVOST $350.
On December 1, 2017, PROVOST entered the Putnam Bank located inside of the Price Chopper at 251 Kennedy Drive in Putnam and presented the teller with a note stating that he had a knife. The teller provided PROVOST with $1,222.
On December 3, 2017, PROVOST entered the Walgreens located at 225 Boston Turnpike in Shrewsbury, Massachusetts, demanded cash from the cashier and lifted his sweatshirt to display a knife. The cashier provided PROVOST with $545.
On December 4, 2017, PROVOST entered the TD Bank located at 10 Gusabel Avenue in Nashua, New Hampshire, handed the teller a note, and told the teller to give him all of the money in the drawer. The teller complied and gave PROVOST $2,599.
On December 6, 2017, PROVOST entered the Key Bank located at 232 West Main Street in Avon and gave the teller a note stating “I have a gun, hundreds, fifties and twenties and no ones and no dye pack.” PROVOST also lifted his sweatshirt to reveal what appeared to be a firearm in his waistband. The teller provided PROVOST with $1,053. PROVOST fled the area in a vehicle driven by another man.
On December 8, 2017, PROVOST entered the Mobil Gas Station and Dunkin Donuts located at 750 Straits Turnpike in Middlebury. PROVOST first threatened the cashier at the Mobil station with what appeared to be a firearm, and instructed her to open the cash register and provide her with all of its contents. The cashier complied and provided him with $578. The cashier also complied with PROVOST’s demand that she give him cigarettes valued at approximately $131. PROVOST then went to the cashier at the Dunkin Donuts, lifted his shirt to display what appeared to be a firearm and demanded money. During the robbery, when a customer entered the premises, the PROVOST pointed the firearm at her and told her to keep her hands out of her pocketbook. The cashier gave PROVOST approximately $350. PROVOST then fled the premises in a vehicle driven by Anthony Vito.
On December 8, 2017, PROVOST entered the Thomaston Savings Bank located at 508 South Main Street in Thomaston and handed the teller a note stating “Robbery 20’s, 50’s, 100’s, quiet.” PROVOST also displayed what appeared to be a firearm. After the teller gave him money, PROVOST told her to get money from the other teller. The teller complied, and PROVOST left the bank with $1,471. He fled the area in a vehicle driven by Vito.
On December 9, 2017, PROVOST was arrested by Waterbury Police officers after they responded to a call of an overdose of a woman at a motel in Waterbury. At the scene, officers recovered a silver and beige handled CO-2 powered BB gun, a black ski mask, a gray ski mask, $542 in cash, multiple packs of cigarettes. Officers also seized a red Ford Explorer that had been used during several of the robberies.
Officers were able to revive the overdose victim, who had been staying in the same room as PROVOST.
PROVOST’s criminal history includes multiple state felony convictions for burglary and larceny, and he was on special parole at the time of this robbery spree.
PROVOST has been detained since his arrest. On April 26, 2018, he pleaded guilty to one count of armed bank robbery.
On June 8, 2018, Vito pleaded guilty to one count of aiding and abetting an armed bank robbery. He is detained while awaiting sentencing.
Judge Underhill ordered PROVOST to make restitution of $8,299.
This investigation is being conducted by the Federal Bureau of Investigation and the Waterbury, Southington, Thomaston, Putnam, Avon, Middlebury, Shrewsbury (Mass.) and Nashua (N.H.) Police Departments. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Virginia Beach Man Sentenced for Multiple Bank RobberiesRead the Press Release
RICHMOND, Va. – A Virginia Beach man was sentenced today to 20 years in prison for multiple bank robberies committed throughout Virginia and North Carolina.
According to court documents, Russell T. Carter, 50, committed 11 bank robberies and one attempted bank robbery beginning in March 2016 and continuing until November 2017. In almost all of the robberies, Carter would enter the bank and display a note to the teller that stated he had a firearm and demanded money. Carter robbed Union Bank and Trust branches located in Fredericksburg, Mechanicsville, and two branches in Henrico. He also robbed BB&T branches located in Hanover and Mechanicsville, and Wells Fargo branches located in Henrico and Durham, North Carolina. Carter also robbed a Citizens and Farmers Bank branch located in Mechanicsville, and a Cardinal Bank branch and PNC Bank branch, both located in Stafford.
In addition to the prison sentence, Carter was ordered to pay approximately $24,000 in restitution. In sentencing the defendant, U.S. District Court Judge John A. Gibney Jr., granted the government’s motion for upward variance and sentenced Carter to 20 years, which was above the advisory guidelines of 10 to 12 years.
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 Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Peter S. Duffey prosecuted the case.
This case was investigated by FBI Richmond’s Central Virginia Violent Crime Task Force.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-166.
U.S. Files Complaint to Forfeit $500,000 in EB-5 Visa Investment Funds and over $140,000 from Sanctioned Chinese Individual Accused of Procuring U.S. Origin Items for Sanctioned Iranian EntitiesRead the Press Release
WASHINGTON - The United States filed a civil complaint today to forfeit more than $640,000 in funds from Wang Wei, a/k/a Jack Wang, whose companies allegedly were procuring U.S.-origin items and illegally supplying them to sanctioned entities in Iran.
The announcement was made by Jessie K. Liu, U.S. Attorney for the District of Columbia, and Jill Sanborn, Special Agent in Charge of the FBI’s Minneapolis Division.
The complaint was filed in the U.S. District Court for the District of Columbia and seeks the civil forfeiture of one ownership unit in the EB-5 Investment Program Cleveland International Fund - Medical Mart Hotel, set to mature in 2020 and pay out $500,000, and $141,086 allegedly laundered into the United States to Reekay Technology, one of Wang’s sanctioned companies.
According to the complaint, a law enforcement investigation into an Iranian procurement network revealed that Wang was the Beijing-based owner of several Iranian procurement front companies. On November 12, 2015, the U.S. Department of Commerce sanctioned Wang and his affiliated companies, Sky Rise Technology Ltd, TiMi Technologies Co Ltd, 32 Group China Ltd., Caprice Group Ltd, and Reekay Technology, for supplying U.S.-origin items to an Iranian party associated with the Iranian defense industry and to an Iranian party whose customers include companies designated by the Department of Treasury as Specially Designated Nationals.
Additionally, on March 21, 2017, the U.S. Department of State sanctioned Wang and his affiliated companies for transfers to Iran’s missile program.
The complaint alleges that at Wang’s direction, front companies, located in mainland China and Hong Kong, purchased sensitive U.S. origin technology on behalf of Iranian end users without the licenses required by the U.S. government. According to the complaint, Wang and his companies conducted more than 100 wire transfers from offshore U.S. dollar accounts worth more than $1.1 million as part of this scheme. The complaint alleges that at least $641,086 of these wires related to illegal procurements from companies that exported U.S. origin items to Wang, which he failed to disclose were going to Iran. The remaining approximately $533,063 in transactions reflect Wang conducting U.S. dollar wire transfers between overseas electronics manufacturers, distributors and telecommunications companies to procure items for sanctioned Iranian entities, the complaint alleges. As part of this scheme, a Chinese front company allegedly wired $141,086 to Reekay Technology. These funds were seized as they transited through the United States for Iranian sanctions violations, and represent one of the defendant properties.
The EB-5 visa program provides a method for eligible immigrant investors to become lawful permanent residents (i.e., “green card holders”) by investing at least $500,000 to finance a business in a targeted employment area in the United States that will employ at least 10 American workers. The Cleveland International Fund (“CiF”) is an Ohio-based regional center offering foreign nationals the opportunity to make investments in the United States for the ultimate purpose of obtaining U.S. citizenship through the EB-5 investment visa program. Wang is an investor in CiF’s Medical Mart Hotel project, whose members consist of CiF as managing member, as well as individual overseas members who purchase their membership unit for $500,000, pursuant to EB-5 program. As alleged in the complaint, Wang laundered $500,000 into the United States in support of his EB-5 application, which was converted into one ownership unit in the Cleveland International Fund - Medical Mart Hotel, Ltd. These funds have been invested in a bond which will mature in 2020, and will result in a pay out at that time to Wang. The government seeks to forfeit Wang’s interest in the bond.
The complaint also seeks a civil monetary penalty against Wang for these sanctions and money laundering violations related to this scheme.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Minneapolis Divison, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) St. Paul, Minnesota, Office, and Department of Commerce are investigating the case. The case is being prosecuted by Assistant U.S Attorneys Zia M. Faruqui, Ari Redbord, and Brian P. Hudak, all of the U.S. Attorney’s Office for the District of Columbia, and Department of Justice Trial Attorney David Recker, of the National Security Division. Assistance is being provided by Paralegal Specialist Toni Anne Donato of the U.S. Attorney’s Office.
U.S. Attorney Brady Recognizes the Addition of Resources to the Western Pennsylvania Violent Crimes Against Children Task ForceRead the Press Release
PITTSBURGH, PA – United States Attorney Scott W. Brady commended the Pennsylvania Attorney General’s Office for devoting five investigators to the Western Pennsylvania Violent Crimes Against Children Task Force or VCAC.
In addition to the United States Attorney’s Office, the VCAC is comprised of law enforcement officers from the FBI, Pennsylvania Attorney General’s Office, U.S. Postal Inspection Service, Pittsburgh Police, Allegheny County Police and the Indiana County District Attorney’s Offices, and investigates child abductions, trafficking and child sexual exploitation enterprises. The number of new cases opened by the VCAC nearly doubled between fiscal year 2016 and 2017. During that same time period, 81 people were arrested and 24 children were identified and/or recovered.
U.S. Attorney Brady recognized the Pennsylvania Attorney General for the additional support of the VCAC. “This joint, cooperative effort enhances our ability to quickly identify and investigate those individuals who prey on children,” said United States Attorney Scott W. Brady. “The VCAC works closely with the United States Attorney’s Project Safe Childhood Task Force.” The United States Attorney’s Project Safe Childhood Task Force, which uses the weight of the federal justice system against sexual predators, where stronger sentences and harsher penalties exist for sexual predators, is headed by Assistant United States Attorney Heidi M. Grogan.
Tyler County woman and Wetzel County man admit to connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – John M. Talkington, of New Martinsville, West Virginia, and Miranda Stewart, of Sistersville, West Virginia, have admitted to their roles in a methamphetamine, cocaine, and heroin distribution operation that spanned multiple states, United States Attorney Bill Powell announced.
Talkington, age 29, and Stewart, age 23, each pled guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances.” Talkington and Stewart admitted to conspiring with others to distribute methamphetamine, heroin, cocaine, and cocaine base from 2016 to April 2018 in Wetzel County, parts of the southern district of West Virginia, Ohio, and Georgia.
Talkington and Stewart each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the cases on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James E. Seibert presided.
Two Indicted for Trafficking Counterfeit Oxycodone Pills Containing FentanylRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today charging Alfredo Sanchez, 39, of Madera, and Saybyn Borges, 27, of Sacramento, with conspiracy to distribute fentanyl, distribution of fentanyl, and possession with intent to distribute fentanyl, U.S. Attorney McGregor W. Scott announced. Sanchez was also charged with being a felon in possession of a firearm.
According to the indictment, between May 3, 2018, and June 7, 2018, in Placer, San Joaquin and Madera Counties, Sanchez and Borges conspired to distribute and possess with intent to distribute fentanyl. According to the criminal complaint, Sanchez and Borges were involved in the sale of approximately 7,500 counterfeit oxycodone pills that were found to contain fentanyl, a synthetic opioid.
A search warrant executed on Sanchez’s residence recovered four firearms: a Kel-Tec 12 gauge shotgun, Ruger .38-caliber revolver, Colt .38-caliber Mustang Pocketlite semi‑automatic pistol, and Colt Commander .38‑caliber pistol. Sanchez is prohibited from possessing firearms.
This case is the product of an investigation by the Drug Enforcement Administration Tactical Diversion Squad. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
If convicted of the fentanyl counts, Borges and Sanchez face a minimum five years and a maximum of life in prison and up to a $5 million fine. If convicted on the firearms possession charge, Sanchez faces up to 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Family Members Plead Guilty to Money LaunderingRead the Press Release
COLUMBUS, Ohio – Three members of a family from Mason, Ohio, have pleaded guilty to conspiring to launder nearly $3 million in proceeds from two fraudulently purchased life-insurance policies, which were taken out on another relative.
Patricia Stevenson, 57, and her daughter Candace G. Stevenson, 30, pleaded guilty in U.S. District Court here today to one count of money laundering conspiracy. Mitch G. Stevenson, 53, pleaded guilty on June 28.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the pleas entered before Chief U.S. District Judge Edmund A. Sargus Jr.
According to court documents, in 2009, Mitch Stevenson bought life insurance policies on a relative. The life-insurance applications claimed the relative was healthy, weighed 170 pounds and had an annual income of $133,000. In fact, the relative was ill, weighed nearly 400 pounds and was unemployed. Mr. Stevenson knew the applications were fraudulent at the time they were submitted. When the relative died, Candace and Patricia Stevenson, who were the beneficiaries of the policies, collected checks from the insurance company totaling $2,908,326.90. At Mitch Stevenson’s direction, Candace and Patricia Stevenson opened eight different bank accounts in an attempt to conceal the source of the funds.
“The defendants engaged in a complex sequence of transactions designed to conceal and disguise the ownership of the proceeds of the life-insurance fraud,” Glassman said.
Court documents also say the family members used the proceeds to buy a 2012 Bentley GT Convertible for approximately $247,000 and used approximately $284,000 as a down payment on a land contract on a home in Mason, Ohio. Other transactions included approximately $16,000 to World of Decor and nearly $33,000 to Facet Jewelry.
“The conduct detailed in this case is egregious. They went to great lengths to conceal the proceeds they received from the fraudulent life insurance policies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.”
A federal grand jury indicted the three in June 2017. Money laundering conspiracy is a crime punishable by up to 20 years in prison. Judge Sargus will schedule a date for sentencing.
As part of the plea, the defendants have agreed to pay the $2.9 million to the victim life insurance company. They have also agreed to forfeit to the United States the home in Mason, Ohio, that was purchased with the proceeds of the fraud.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
# # #
Three Drug Dealers Plead Guilty to Participating in A Drug Conspiracy Right Before Jury SelectionRead the Press Release
FOR IMMEDIATE RELEASE Contact MARCIA MURPHY
www.justice.gov/usao/md at (410) 209-4854
Baltimore, Maryland – Deandre Smith, age 28, Karron Wheeler, age 35, and Brandon Kellum, age 25, all of Baltimore, pleaded guilty on Tuesday, July 17, 2018, to a drug conspiracy involving the distribution of heroin and fentanyl, just before jury selection for their trial.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to Smith’s plea agreement, from at least July 2015 through April 28, 2016, Smith managed a large drug trafficking organization that supplied heroin and fentanyl to distributors in Baltimore, including Wheeler and Kellum. Smith also managed a drug trafficking operation that operated in and around Pedestal Gardens, an apartment complex located in the 300 block of McMechan Street in Baltimore.
Smith, Jamal Carter, and Dymir Rhodes maintained a “stash” house in Catonsville, Maryland, to store drugs and drug proceeds, and to process, and package drugs for distribution. Once packaged for distribution, Smith, Carter, and Rhodes supplied large quantities of heroin and/or fentanyl to several drug shops in Baltimore, including shops operated by Wheeler and Kellum. At Pedastal Gardens, Smith’s operation distributed “packs” of heroin and/or fentanyl and each “pack” typically contained between 25 and 50 gel capsules of the drugs, totaling approximately 2.5 to 5 grams.
As detailed in Smith’s plea agreement, a co-conspirator killed two individuals on August 10, 2016 and October 7, 2015, respectively, to further the Pedastal Gardens drug organization’s drug trafficking activities. The organization believed one of the individuals was distributing drugs in their territory, and the other individual was robbing drug dealers in the area and disrupting the organization’s drug trafficking.
On April 28, 2016, law enforcement officers executed a search warrant at the stash house in Catonsville. At the time of the search warrant, officers located Smith, Carter, and another conspirator inside the residence. During the search, officers discovered approximately 1,186 grams of fentanyl, 575 grams of heroin, and nine grams of cocaine, all of which was being packaged for distribution. Officers also discovered approximately two kilograms of Phenacetin, a substance commonly used to “cut” drugs, as well as approximately $15,465 in cash, and drug paraphernalia. Smith also had approximately $2,000 cash in his pocket.
According to Wheeler’s plea agreement, between at least March 2015 and August 26, 2016, Wheeler managed a drug organization that operated in several locations in Baltimore, including Pennsylvania Avenue and Laurens Street in West Baltimore. During the course of the conspiracy, Wheeler employed or directed more than five individuals. Wheeler admitted that, at his direction, the organization kept a firearm in close proximity to the drug shop for protection and to facilitate the drug operation.
According to Kellum’s plea agreement, from at least November 2015 until Febrary 18, 2016, he participated in the drug conspiracy. On February 18, 2016, law enforcement was conducting surveillance at a shopping center in Catonsville and saw Kellum and a co-conspirator arrive, followed shortly thereafter by Carter. Carter and Kellum met outside their vehicles, then after a brief conversation Carter got into Kellum’s vehicle and placed several plastic baggies containing fentanyl in the vehicle and received payment for the drugs. Carter and Kellum left the area and law enforcement followed Kellum’s vehicle to the 3400 block of Edmondson Avenue, where officers initiated a traffic stop. Law enforcement recovered 135 grams of fentanyl, which Kellum had given to his co-conspirator and which, Kellum admitted, they had intended to distribute to their customers.
Smith and Wheeler each admitted that during their participation in the conspiracy they and his co-conspirators distributed between one and three kilograms of heroin.
Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to 25 years in prison. No sentencing date for Smith has been set.
Wheeler and the government have agreed that if the Court accepts the plea agreement Wheeler will be sentenced to between 10 and 13 years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for September 12, 2018.
Kellum and the government have agreed that if the Court accepts the plea agreement Kellum will be sentenced to between five and seven years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for September 10, 2018.
Jamal Carter, age 24, and Dymir Rhodes, age 32, both of Baltimore, previously pleaded guilty to their participation in the drug conspiracy, and were sentenced to 11 years and 10 years in prison, respectively.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner and Christopher J. Romano, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Three Companies, Including “Crystal Geyser,” Charged with Illegally Transporting Hazardous Waste Containing ArsenicRead the Press Release
LOS ANGELES – A federal grand jury returned a 16-count indictment yesterday charging three companies, including the company that produces bottled water under the name “Crystal Geyser,” with violating the Resource Conservation and Recovery Act (“RCRA”) and the Hazardous Materials Transportation Act (“HMTA”). The charges center on the alleged failure of the defendants to disclose information regarding arsenic in wastewater transported from Crystal Geyser’s Olancha, California, facility in March and May 2015.
The indictment charges three companies:
-
CG Roxane, LLC (“Crystal Geyser”), a limited liability corporation that does business under the name “Crystal Geyser” and produces bottled drinking water in Olancha, California;
-
United Pumping Services, Inc. (“United Pumping”), a corporation located in the City of Industry that provides transportation services for customers needing transportation of hazardous and nonhazardous waste; and
-
United Storm Water, Inc. (“United Storm Water”), a corporation located in the City of Industry that provided environmental and lake draining services.
The investigation and indictment in this case focused on alleged violations involving Crystal Geyser’s wastewater, not the safety or quality of Crystal Geyser’s bottled water.
According to the indictment, in producing its bottled water, Crystal Geyser would draw water from natural sources that contained naturally occurring arsenic. Crystal Geyser would use sand filters to reduce the concentration of arsenic so that the water met federal drinking water standards. To maintain the effectiveness of the sand filters, Crystal Geyser would regenerate them by back-flushing a hydroxide and water solution through the sand filters, causing the filters to release arsenic into the hydroxide and water solution. This process would generate thousands of gallons of arsenic-contaminated wastewater.
The indictment alleges that Crystal Geyser discharged the arsenic-contaminated wastewater into a nearby manmade pond which Crystal Geyser called “the Arsenic Pond.” In September 2014, testing by the California Department of Toxic Substances Control (“DTSC”) showed that the wastewater stored in the Arsenic Pond constituted a hazardous waste. In October 2014, DTSC testing also showed that arsenic-contaminated wastewater generated by the regeneration process was a hazardous waste. After October 2014, Crystal Geyser stopped discharging regeneration wastewater into the Arsenic Pond.
The indictment further alleges that, in March 2015, Crystal Geyser regenerated and back-flushed the sand filters and, it hired United Pumping and United Storm Water to transport the resulting several thousand gallons of high pH, arsenic-contaminated wastewater to a hazardous waste facility in Los Angeles County. In transporting that hazardous wastewater, the defendants utilized manifests that did not disclose any information about the arsenic content of the wastewater, contrary to law.
According to the indictment, after that March regeneration, in April 2015, DTSC informed Crystal Geyser that the wastewater in the Arsenic Pond constituted a hazardous waste and instructed Crystal Geyser to remove that wastewater from the Arsenic Pond and to transport it, using a hazardous waste manifest, to an authorized facility permitted to accept that specific type of hazardous waste.
In May 2015, Crystal Geyser again hired United Pumping and United Storm Water, this time to drain and transport the Arsenic Pond. United Pumping and United Storm Water transported the contents of the Arsenic Pond to a facility in Fontana, California despite the fact that that facility was not permitted to treat hazardous waste. According to the indictment, Crystal Geyser, United Pumping, and United Storm Water transported the contents of the Arsenic Pond using non-hazardous waste manifests and did not identify the arsenic in the wastewater, even though they knew that the water constituted arsenic hazardous waste.
“Our nation’s environmental laws are specifically designed to ensure that hazardous wastes are properly handled from beginning to end – from the point of generation to the point of disposal,” said United States Attorney Nick Hanna. “The alleged behavior of the three companies charged in this indictment undermines that important objective and jeopardizes the safety of our community.”
Each of the defendants faces a statutory maximum fine of $8 million if convicted on all of the 16 counts in the indictment.
“EPA and its law enforcement partners are committed to the protection of public health and safety,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in California. “This case was opened due to the hazards posed by illegal management and transportation of hazardous wastes. Today’s charges demonstrate that those who refuse to comply with the law will be held to account and prosecuted.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation in this matter is being conducted by the United States Environmental Protection Agency Criminal Investigations Division and the United States Department of Transportation’s Office of Inspector General, with assistance from the California Department of Toxic Substances Control.
This case is being prosecuted by Assistant United States Attorneys Dennis Mitchell and Erik M. Silber of the Environmental and Community Safety Crimes Section.
-
Thirteen Gang Members and Associates Indicted in Federal CourtRead the Press Release
BOISE – A federal grand jury indicted thirteen members and associates of the Aryan Knights and Severely Violent Criminals gangs for crimes including drug distribution, conspiracy, and unlawful possession of firearms, U.S. Attorney Bart M. Davis announced. The charges stem from an investigation by the Treasure Valley Metro Violent Crimes Task Force.
The indicted defendants are Tyler James Campbell, 34 of Boise; Jesse Everett Ford, 43 of Kuna; Brian Cade Humphreys, 45 of Meridian; Jeremy Caine Lyons, 40 of Meridian; Jason Schepers, 33 of Caldwell; Kirstin Decker (aka Kirstin Walz), 39 of Boise; Jennifer Lee Sayer, 34 of Boise; Kimberly Ann Hale, 39 of Meridian; John Alan Redfern, 48 of Boise; Frank Lee Gorrell, 40 of Boise; Angela Marie Sheldon (aka Angela Marie Junkert), 43 of Boise; Keith Anthony Murphy, 28 of Boise; and Cameron James Ball, 31 of Boise. All were indicted on July 10, 2018.
Of the thirteen individuals indicted, eleven were indicted for drug charges including thirteen counts of distribution of methamphetamine and three counts of conspiracy to distribute methamphetamine. Two individuals were indicted for firearms charges including three counts of unlawful possession of a firearm.
Campbell, Ford, Sayer, Hale, Gorrell, and Ball are currently in custody at the Ada County Jail. Lyons is currently in custody at the Kootenai County Jail. Decker and Murphy are currently at the Idaho Department of Correction. Three of the remaining four defendants were arrested last night and this morning. Redfern remains at large.
Federal drug trafficking charges are generally punishable by up to twenty years in prison, a fine up to $1 million, and at least three years of supervised release. Where the defendants are charged with distributing more than five grams of pure methamphetamine, or conspiring to do the same, they face a minimum term of five years and up to forty years in prison, a fine up to $5 million, and at least four years supervised release. Where the defendants are charged with distributing more than fifty grams of pure methamphetamine, or conspiring to do the same, they face a minimum term of ten years and up to life in prison, a fine up to $10 million, and at least five years supervised release.
The charge of unlawfully possessing a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The indictments are the result of an investigation by the Treasure Valley Metro Violent Crime Task Force. The Task Force was created approximately twelve years ago and is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Homeland Security; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; the Canyon County Sheriff’s Office; and the Idaho Department of Correction. The Task Force conducts complex long-term investigations of criminal gangs.
The charges are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
The Bureau of Justice Assistance Awards $1 Million to Support Law Enforcement Response to Santa Fe, Texas, ShootingRead the Press Release
The Bureau of Justice Assistance (BJA) today awarded $1 million to the Texas Office of the Governor, Criminal Justice Division, to pay overtime expenses for law enforcement officers who responded to the scene of the deadly shootings on May 18 at Santa Fe High School in Santa Fe, Texas.
The State of Texas, the City of Santa Fe, and Galveston County incurred several million dollars in costs in responding to the incident. State and local officials continue to incur expenses and the grant will defray some of the costs.
"When there is a tragedy, the Department of Justice is there for police and first responders,” said Attorney General Jeff Sessions. “Today, we continue to help state and local police in Texas to rebuild after the tragic murder of ten people at Santa Fe High School. We have provided a total of $1 million to defray their expenses since that terrible day. We honor and respect the law officers who serve at the state, local, and tribal levels, and we continue to support them and their life-saving work every single day."
According to reports, on the morning of May 18, the assailant opened fire in a classroom and the school resource officer and state and local law enforcement personnel confronted the shooter. The assailant reportedly threatened to shoot the officers, firing several rounds while arguing with the police. Officers engaged the shooter and allowed for the safe evacuation of other students and faculty.
Ten people were tragically killed and more than a dozen others were injured.
BJA invited the Texas Governor’s Criminal Justice Division, which administers the Edward Byrne Memorial Justice Assistance Grants Program for the state, to apply for the funds. BJA is part of the Justice Department’s Office of Justice Programs.
Funds are made available from the Department’s Fiscal Year 2018 Emergency Federal Law Enforcement Assistance (EFLEA) grant program. The purpose of the EFLEA grant program is to help states respond to unanticipated emergencies that require law enforcement intervention, that are or threaten to become serious and that cannot be addressed with state and local resources alone.
For more information about the Bureau of Justice Assistance, please visit www.bja.gov.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Texas Resident Pleads Guilty to Heinz Field Mass Shooting ThreatRead the Press Release
PITTSBURGH, PA – A resident of San Antonio, Texas, pleaded guilty in federal court to a charge of Threatening Interstate Communications, United States Attorney Scott W. Brady announced today.
Yuttana Choochongkol, a/k/a Jason Manotham, 40, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
According to the guilty plea, on January 10 and 11, 2018, Choochongkol made three threats against the athletes and attendees of the National Football League Divisional Playoff Game on Sunday, January 14, 2018. Choochongkol used the internet to send threats to Pittsburgh, Pennsylvania through the KDKA.com and Heinzfield.com “contact us” portals that he was going to engage in mass shootings and suicide at the game.
“Threats of mass violence cannot be tolerated and will be aggressively prosecuted,” said U. S. Attorney Scott Brady. “Nothing is more important than ensuring the safety of the community, including at large public events such as Steelers games. Choochongkol would not have been quickly identified and arrested without tremendous work in a very short time frame by the FBI Joint Terrorism Task Force, Heinz Field Security and our Office, working with our counterparts in Texas.”
"I commend the work done by the FBI's Joint Terrorism Task Force to identify and apprehend Mr. Choochongkol quickly," said Assistant Special Agent in Charge Nick Boshears. "The members of the JTTF and its law enforcement partners are committed to bringing to justice those individuals who threaten our national security. We remain proactive in pursuing counter-terrorism cases because the risks involved are so great."
Judge Fischer scheduled the sentencing for November 27, 2018 at 1:00 p.m. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Yuttana Choochongkol.
Texas Man Sentenced in New Mexico to Federal Prison for Transporting Woman Across State Lines for ProstitutionRead the Press Release
ALBUQUERQUE – Markell Quashan Sweargin, 20, of Lubbock, Tex., was sentenced this morning in federal court in Las Cruces, N.M., to 30 months in prison for transporting a person in interstate commerce for the purpose of engaging in prostitution. Sweargin will be on supervised release for 15 years after completing his prison sentence.
Sweargin was arrested in June 2017, on a criminal complaint charging him with transporting a person in interstate commerce for the purpose of forcing the person to engage in a commercial sex act. According to the complaint, on June 14, 2017, officers of the Hobbs Police Department arrested Sweargin on state charges after responding to a domestic disturbance call from a woman (victim) who claimed that Sweargin strangled and assaulted her during an altercation arising from her refusal to engage in a sexual act with another man for money.
According to the criminal complaint, Sweargin, the victim and another person traveled from Lubbock to a hotel in Hobbs, N.M. Once in the hotel room, Sweargin attempted to coerce the victim into having sex with other men for money, and became angry when the victim refused. When Sweargin and the other person left the hotel room, a man came to the room with the expectation of having sex with the victim. After the victim refused to have sex with him, the man departed the room after telling the victim that he had come in response to an advertisement on a webpage known to advertise prostitution services. When Sweargin returned to the hotel room, he was very angry because the victim did not have sex with the man in return for money, began to hit the victim, and blocked the door to the hotel room to prevent the victim or the third person from leaving. The victim and third person fled from the room when Sweargin stepped away from the door.
On Sept. 7, 2018, Sweargin pled guilty to a felony information charging him with transporting a person across state lines for the purpose of engaging in prostitution. In entering the guilty plea, Sweargin admitted that on June 14, 2017, he traveled from Lubbock to Hobbs with the victim with the intention of having the victim engage in prostitution in New Mexico.
This case was investigated by the Homeland Security Investigations Las Cruces office and the Hobbs Police Department. Assistant U.S. Attorneys Marisa A. Ong and Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Texas Man Sentenced for Role in Drug ConspiracyRead the Press Release
BOSTON – A Texas man involved in a Lawrence-based narcotics trafficking operation was sentenced today in federal court in Boston.
Joel Jahamal Rougeau, 42, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 135 months in prison and three years of supervised release. In November 2017, Rougeau pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute fentanyl, heroin, and cocaine. On Aug. 12, 2015, Rougeau and three co-defendants, Jerri Martinez-Tejeda and Yoelly Carmenatty, both of Lawrence, and Lily Solis, of Texas, were indicted.
In March 2014, an investigation into a drug trafficking organization operating in Massachusetts, California and elsewhere led law enforcement to Martinez-Tejeda. In late May or early June 2015, Martinez-Tejeda hired Rougeau to pick up nine kilograms of narcotics in California and transport them to the Northeast. Solis, who was romantically involved with Rougeau, accompanied Rougeau to translate Spanish to English for him.
On June 4, 2015, law enforcement in Oklahoma intercepted Rougeau and Solis transporting the nine kilograms of fentanyl to Martinez-Tejeda and his partner, Carmenatty, in Lawrence for distribution. After the shipment was seized, Martinez-Tejeda and Carmenatty believed that Rougeau and Solis had faked the encounter with law enforcement in order to steal the fentanyl from them. They hired an “enforcer” from Mexico to go to Oklahoma and kidnap and torture Rougeau and Solis. Their plan was thwarted when Rougeau fled and Solis was taken into custody. Approximately 18 months later, Rougeau was captured in Mexico and turned over to U.S. authorities.
In June 2016, Solis was sentenced to 33 months in prison; in October 2016, Martinez-Tejeda was sentenced to 292 months in prison; and in January 2017, Carmenatty was sentenced to six years in prison. One additional defendant, Michael Bate, was charged in a superseding indictment for his role as a money courier for the drug trafficking organization. Bate was sentenced to three years in prison in November 2016.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit prosecuted the case.
Texas Man Pleads Guilty to Federal Charges Arising out of Northern New Mexico Violent Crime Spree in July 2017Read the Press Release
ALBUQUERQUE – Lane Michael Reed, 24, of Killeen, Texas, pled guilty today in federal court in Albuquerque, N.M., to armed robbery, carjacking and firearms charges arising out of a two-day violent crime spree in July 2017. Reed entered the guilty plea under a plea agreement that recommends that he be sentenced to 25 years of imprisonment followed by a term of supervised release to be determined by the court.
U.S. Attorney John C. Anderson said Reed is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
Reed was arrested in Aug. 2017, on a federal criminal complaint charging him with interfering with interstate commerce by robbery, taking a vehicle from another by force and violence, using, brandishing and discharging a firearm during crimes of violence, and being a felon in possession of firearms and ammunition. According to the criminal complaint, on the morning of July 25, 2017, Reed robbed a gas station and convenience store in San Jose, N.M., by brandishing a firearm at a clerk and a small child and taking money from the cash register. Shortly thereafter, the storeowner entered the store and Reed brandished a firearm at the storeowner and robbed the storeowner of the keys to his vehicle and a firearm. Reed then departed the store in the storeowner’s vehicle and soon encountered officers of the New Mexico State Police and Santa Fe County Sheriff’s Office who responded to a “be on the lookout” callout for Reed. While driving on the frontage road to Interstate 25 and southbound on the Interstate and seeking to evade the officers, Reed discharged a firearm in the direction of the officers, some of whom returned fire.
Officers of the New Mexico State Police and Santa Fe County Sheriff’s Office arrested Reed without incident on Interstate 25 near Mile Post 247, on state charges filed by the 1st Judicial District Attorney’s Office. Reed remained in state custody until he was transferred to federal custody on Aug. 28, 2017, to face the federal charges against him.
Reed was indicted on Sept. 21, 2017. The seven-count indictment charged Reed with robbing a gas station and convenience store, a business engaged in interstate commerce, in Raton, N.M., on July 24, 2017 and brandishing a firearm during the robbery. The indictment also charged Reed with robbing a gas station and convenience store, also a business engaged in interstate commerce, in San Jose, N.M., on July 25, 2017, and brandishing a firearm during that robbery. It also charged Reed with carjacking a vehicle in San Miguel County on July 25, 2017, and discharging a firearm during that carjacking. Finally, the indictment charged Reed with being a convicted felon unlawfully in possession of a firearm on July 24 and 25, 2017.
During today’s proceedings, Reed pled guilty to robbing the gas station and convenience store in San Miguel County and brandishing a firearm during the robbery, and to the carjacking charge. In entering the guilty plea, Reed admitted that on July 25, 2017, he violated the Hobbs Act by entering the Pecos River Station convenience store, pointing a firearm at the store clerk, threatening her with a firearm, and demanding money and keys to a vehicle. Reed also admitted confronting the storeowner, who was armed, and disarming the storeowner and taking his firearm and the keys to his vehicle.
In his plea agreement, Reed admitted that after robbing the Pecos River Station convenience store, he attempted to evade arrest by driving at speeds up to 140 miles an hour and discharged his firearm at the law enforcement officers who were pursuing him. During the pursuit, Reed caused extensive damage to the vehicle he stole as well as extensive damage to the law enforcement vehicles that were pursuing him.
Reed has been in federal custody since his arrest in Aug. 2017. He remains detained pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI, the New Mexico State Police and the Santa Fe County Sheriff’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Texas Husband and Wife and A Texas Attorney Indicted for Conspiring to Defraud the United StatesRead the Press Release
WASHINGTON - A federal a grand jury sitting in Fort Worth, Texas returned an indictment yesterday charging a husband and wife and a Texas attorney with conspiring to defraud the United States and separately charging the husband and wife with tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
According to the indictment, Thomas and Michelle Selgas, a married couple, conspired with John O. Green, an attorney licensed to practice in the State of Texas, to defraud the United States by obstructing the Internal Revenue Service (IRS) from assessing and collecting the Selgases’ federal income taxes. The indictment charges that in furtherance of the conspiracy the Selgases transferred personal funds to Green’s IOLTA and that Green would pay personal expenses of the Selgases from his IOLTA. An IOLTA is bank account used by a lawyer to hold money in trust for clients. The Selgases allegedly deposited the proceeds from the sale of gold coins and other income into Green’s IOLTAs, rather than accounts in their own name, and then caused their personal expenditures to be paid from Green’s IOLTAs, in order to evade paying their federal income taxes. The indictment further alleges that all three defendants were involved in the filing of a false partnership tax return related to a partnership co-founded by Thomas Selgas.
If convicted, Thomas and Michelle Selgas face a statutory maximum sentence of five years in prison on the tax evasion charges and five years on the conspiracy. John Green faces a maximum sentence of five years on the conspiracy. The defendants also face 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 and U.S. Attorney Cox and thanked agents of the IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert A. Kemins and Mara Strier, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Sutton, ND Man Sentenced on Multiple Offenses Involving the Production of Child PornographyRead the Press Release
Fargo – United States Attorney Christopher C. Myers announced that on July 19, 2018, Chief United States District Court Judge Daniel L. Hovland sentenced Brent Daigle, age 39, Sutton, ND, to serve 70 years in prison, followed by lifetime supervised release for three counts of Sexual Exploitation of Minors and one count of Possession of Materials Involving the Sexual Exploitation of Minors. Daigle was further ordered to pay $400 in special assessments to the Crime Victims’ Fund.
This case came to the attention of law enforcement after a 12-year-old girl reported that Daigle had repeatedly sexually abused her, including video recording such abuse. In the meantime, Daigle fled to Louisiana where he was arrested on state charges involving sexual abuse of the victim. A search of his person revealed a cell phone which contained videos depicting his sexual abuse of the victim.
This case was investigated by the Griggs County Sheriff’s Office; ND Bureau of Investigation; and Homeland Security Investigations.
Assistant United States Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Suboxone Clinic Physician Pleads Guilty to Distribution and Health Care FraudRead the Press Release
PITTSBURGH, PA - A resident of Coraopolis, Pennsylvania, pleaded guilty in federal court to charges of unlawfully distributing controlled substances, conspiracy to distribute controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Madhu Aggarwal, 68, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Aggarwal was a physician practicing at Redirections Treatment Advocates, a Suboxone clinic, located in Washington, PA. Aggarwal and others conspired together to create and submit unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, and then unlawfully dispensed those controlled substances to other persons. Aggarwal is also charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare for payments to cover the costs of the unlawfully prescribed buprenorphine.
Judge Schwab scheduled sentencing for November 28, 2018 at 10:30 a.m. The law provides for a total per count sentence of 10 years in prison, a fine of $500,000.00, or both, for the controlled substances offenses. Aggarwal faces an additional maximum term of imprisonment of 10 years and fine of $250,000.00 for the health care fraud charge. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Aggarwal on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, Department of Health and Human Services – Office of Inspector General and Internal Revenue Service – Criminal Investigations conducted the investigation leading to the indictment in this case.
Statement from U.S. Attorney Andrew Lelling Regarding Proposed Injection SitesRead the Press Release
“Supervised injection facilities” would violate federal laws prohibiting the use of illicit drugs and the operation of sites where illicit drugs are used and distributed. Employees and users of such a site would be exposed to federal criminal charges regardless of any state law or study.
I cannot envision any scenario in which sites that normalize intravenous use of heroin and fentanyl would be off limits to federal law enforcement efforts.
Heroin use fuels a deadly drug trade that is ravaging our state and the region, and my office is keenly focused on curbing the opioid and heroin epidemic. Providing a sanctuary to accommodate risky and lethal illegal drug use undermines all of the hard work of treatment providers and law enforcement across the Commonwealth.
The opioid epidemic requires that we remain laser-focused on prevention, treatment, and enforcement – not the normalization of intravenous use of heroin and fentanyl.
St. Croix Crack Cocaine Supplier Sentencing for Aiding and Abetting the Distribution of Cocaine BaseRead the Press Release
St. Croix, VI –Winston DeCastro, 45, of St. Croix, was sentenced in the District Court on July 19, 2018, on the charge of aiding and abetting the distribution of cocaine base, also known as "crack cocaine", United States Attorney Gretchen C.F. Shappert announced.
Chief Judge Wilma A. Lewis sentenced DeCastro to 60 months (5 years) imprisonment, followed by 4 years of supervised release, a $2,000 fine, and a $100 special assessment. DeCastro pled guilty to the charge on March 20, 2018.
A federal grand jury had previously returned an indictment against DeCastro, aka Moo Moo, on September 15, 2015. According to court documents, on April 21, 2015, DeCastro supplied crack cocaine to a co-defendant, Bruce McIntosh. DeCastro then transported McIntosh to McDonalds at the LaReine Shopping Center in St. Croix for the purposes of selling the cocaine to a buyer. Upon arrival, McIntosh exited DeCastro’s vehicle and sold the cocaine to the buyer for $1,800. Laboratory testing revealed that the drugs were cocaine base, a Schedule II controlled substance, with a net weight of 65.2 grams.
The case was investigated by the Drug Enforcement Administration (DEA) and Task Force Officers with the Virgin Islands Police Department. The case was prosecuted by Assistant U.S. Attorney Daniel H. Huston.
Spokane Man Sentenced to 14 Years in Federal Prison for Possessing Four Pounds of MethamphetamineRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Joey Alan Yamada, age 55, of Spokane, Washington, was sentenced today after having pleaded guilty on April 17, 2018, to possessing with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Chief United States District Judge Thomas O. Rice sentenced Yamada to a 168-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, while executing a warrant to search Yamada’s residence, Spokane Police officers seized approximately four pounds of methamphetamine secreted in a safe and behind a wall. Officers also seized sixteen firearms, including a sawed-off rifle, and other drug trafficking accoutrements.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Spokane Police Department, the DEA, and the ATF who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Spokane Resident Offices of the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Spokane Police Department. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
South Bend Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND – Charles D’Angelo Lockett, 23 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge Robert L. Miller, Jr. for being a felon in possession of one or more stolen firearms announced U.S. Attorney Kirsch.
Lockett was sentenced to 120 months in prison followed by 18 months supervised release.
According to documents in the case, Charles Lockett was in Wabash County when he was driving and hit a parked car. Lockett fled the scene of the accident, and police cars eventually caught up with him after a fifteen minute chase. During the chase, Lockett was throwing items out of the vehicle, driving over 90 miles per hour, and drove through stop signs. The car chase led to Lockett running away on foot, where police eventually detained him. In the car, police found that Lockett had 2 firearms and miscellaneous drugs.
This case was investigated by ATF, North Manchester Police Department, Wabash County Sheriff’s Department and prosecuted by Assistant United States Attorney Molly E. Donnelly.
###
Seventh Mississippi Real Estate Investor Pleads Guilty to Conspiring to Rig Bids at Public Foreclosure AuctionsRead the Press Release
Mississippi real estate investor Kimberly Foster became the seventh real estate investor to plead guilty in connection with the ongoing investigation into bid rigging at public real estate foreclosure auctions in Mississippi, the Department of Justice announced.
Felony charges against Foster were filed on June 28, 2018, in the U.S. District Court for the Southern District of Mississippi. According to those charges, from at least as early as August 20, 2009 through at least as late as December 14, 2016, Kimberly Foster conspired with others not to bid against one another for selected public real estate foreclosure auctions in the Southern District of Mississippi. Co-conspirators made and received payoffs in exchange for their agreement not to bid.
“The Division remains committed to holding accountable those who violate the antitrust laws, including real estate investors who take advantage of financial distress to line their own pockets,” said Assistant Attorney General Makan Delrahim of the Department of Justice Antitrust Division. “Today’s plea, along with the convictions of well over 100 other individuals who rigged foreclosure auctions all across the country, demonstrates that individual accountability remains a top priority for the Division.”
“Participation in illegal price-fixing at public auctions debilitates the economy and causes harm to those involved in the foreclosure process,” said Special Agent in Charge Christopher Freeze of the FBI in Mississippi. “Perpetrators who attempt to cheat the free market system will be held accountable for their actions.”
The Department stated that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds paid to the homeowner. According to court documents, these conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The investigation is being conducted by Antitrust Division attorneys in the Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit www.justice.gov/atr/report-violations.
Seventh Mississippi Real Estate Investor Pleads Guilty to Conspiring to Rig Bids at Public Foreclosure AuctionsRead the Press Release
WASHINGTON – Mississippi real estate investor Kimberly Foster became the seventh real estate investor to plead guilty in connection with the ongoing investigation into bid rigging at public real estate foreclosure auctions in Mississippi, the Department of Justice announced.
Felony charges against Foster were filed on June 28, 2018, in the U.S. District Court for the Southern District of Mississippi. According to those charges, from at least as early as August 20, 2009 through at least as late as December 14, 2016, Kimberly Foster conspired with others not to bid against one another for selected public real estate foreclosure auctions in the Southern District of Mississippi. Co-conspirators made and received payoffs in exchange for their agreement not to bid.
“The Division remains committed to holding accountable those who violate the antitrust laws, including real estate investors who take advantage of financial distress to line their own pockets,” said Assistant Attorney General Makan Delrahim of the Department of Justice Antitrust Division. “Today’s plea, along with the convictions of well over 100 other individuals who rigged foreclosure auctions all across the country, demonstrates that individual accountability remains a top priority for the Division.”
“Participation in illegal price-fixing at public auctions debilitates the economy and causes harm to those involved in the foreclosure process,” said Special Agent in Charge Christopher Freeze of the FBI in Mississippi. “Perpetrators who attempt to cheat the free market system will be held accountable for their actions.”
The Department stated that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds paid to the homeowner. According to court documents, these conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The investigation is being conducted by Antitrust Division attorneys in the Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit www.justice.gov/atr/report-violations.
Seven Puerto Rico Police Officers Charged with Rico Act ViolationsRead the Press Release
SAN JUAN, Puerto Rico– Seven Puerto Rico police officers from the Caguas Drug Unit have been charged in a superseding indictment for their alleged participation in criminal acts, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The FBI is in charge of the investigation.
On May 21, 2018, four police officers assigned to the Caguas Drug Unit (CDU): Eidderf Jhave Ramos-Ortiz, a.k.a. “Baby”; Juan Carlos Ortiz-Vázquez, a.k.a. “Juan C.;” Christian Rodríguez-Cruz; and Eric Velázquez-Martínez were charged by a federal grand jury in the District of Puerto Rico for drug trafficking and firearms violations. Today, those four defendants, along with Ramón Cotto-Centeno; Luis Rivera-Ruiz, a.k.a. “Chopa/Agua Dulce”; and Jorge Muñoz-Martínez were charged in a superseding indictment under the Racketeer Influenced and Corrupt Organizations Act (RICO Act).
From in or about July 2014 the defendants together with others known and unknown to the Grand Jury, being persons employed by and associated with the CDU, an enterprise engaged in, and the activities of which affected, interstate and foreign commerce, knowingly and unlawfully conducted and participated, directly and indirectly, in the conduct of the enterprise’s affairs through a pattern of racketeering activity. The pattern of racketeering activity consisted of the following acts: extortion, attempted extortion, extortion conspiracy and drug conspiracy, and possession with intent to distribute narcotics.
The defendants were sworn police officers with the CDU. The defendants violated the legitimate purposes of the CDU in order to enrich themselves through illegal conduct, including extortion, robbery, and the distribution of narcotics.
Eidderf Jhave Ramos-Ortiz is now facing one count for RICO Act violations, five counts for extortion under color of official right, three counts for conspiracy to possess with intent to distribute marihuana, five counts for carrying and using a firearm during and in relation to a drug trafficking crime, and three counts for possession with intent to distribute marihuana.
Defendant Juan Carlos Ortiz-Vázquez is facing one count for RICO Act violations, four counts for extortion under color of official right, three counts for conspiracy to possess with intent to distribute marihuana, and three counts for carrying and using a firearm during and in relation to a drug trafficking crime. Defendants Christian Rodríguez-Cruz and Eric Velázquez-Martínez are facing one count for RICO Act violations, four counts for extortion under color of official right, one count for conspiracy to possess with intent to distribute marihuana, and one count for carrying a firearm during and in relation to a drug trafficking crime.
Defendant Ramón Cotto-Centeno is facing one count for RICO Act violations, one count for extortion under color of official right, and one count for possession with intent to distribute tramadol, a Schedule IV Controlled Substance. Defendants Luis Rivera-Ruiz and Jorge Muñoz Martínez are facing one count for RICO Act violations.
“The purpose of the Caguas Drug Unit is to combat drug trafficking, firearms and ammunition trafficking, among other related crimes, and these officers were behaving like the criminals they were supposed to be apprehending. They not only betrayed the citizens they were sworn to protect, they also betrayed the thousands of honest, hard-working law enforcement officers who risk their lives every day to keep us safe. We will continue to work with our local law enforcement partners to pursue corruption wherever it lies,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
“Today’s charges represent a grave breach of the oath taken by these sworn officers. Fortunately, those accused represent only a very small percentage of the brave men and women of the Puerto Rico Police Department, who serve only to protect the citizens of Puerto Rico. In fact, the FBI’s continued efforts to clean up corruption and civil rights violations have been assisted by the full cooperation of the leadership of the Puerto Rico Police Department,’ stated Douglas Leff, Special Agent in Charge of FBI, San Juan.
Assistant U.S. Attorney José A. Contreras is in charge of the prosecution of the case. If found guilty, all defendants are facing up to 20 years for the RICO Act violations, 20 years for extortion under official rights, up to five years for drug trafficking violations, and five years up to life in prison for the firearms charges. The charges contained in the superseding indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.
# # #
San Francisco Area Certified Public Accountant Convicted of Tax FraudRead the Press Release
A jury in the Northern District of California convicted a San Francisco area Certified Public Accountant late yesterday of three counts of aiding and abetting the filing of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Alex G. Tse for the Northern District of California.
According to the evidence presented at trial, Marc Howard Berger, 67, of Walnut Creek, California, willfully assisted in the preparation of three false Form 1040s for G. Steven Burrill for the years 2011, 2012, and 2013. The guilty verdict followed a three-week jury trial before the Honorable Richard Seeborg, U.S. District Court Judge.
Berger was a CPA and partner with a regional tax preparation firm, Burr Pilger Mayer. Berger’s client, Burrill, was the owner and CEO of Burrill & Company, Burrill Capital, and several related entities. Through the entities, Burrill managed venture capital funds, including Burrill Life Sciences Capital Fund III, L.P. (the Fund), a $283 million investment fund focused on the life sciences industry. Between December 2007 and September 2013, Burrill transferred more than $18 million from the Fund to his management companies in excess of the management fees that were allowable under the agreements that governed the Fund. Berger intentionally prepared and filed false income tax returns for Burrill that did not report more than $18 million in income, resulting in unpaid taxes of more than $4.7 million. With Berger’s assistance, Burrill paid no individual income taxes for the years 2009 through 2013.
“The jury’s verdict should serve as a message to all professionals who assist their clients in evading their tax obligations that such assistance will be prosecuted,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman.
“We are gratified by the jury’s verdict,” said Acting United States Attorney Alex G. Tse. “Tax preparers must know that they cannot willfully assist clients in defrauding the IRS and failing to pay their fair share.”
Berger and Burrill were both indicted by a federal grand jury on September 14, 2017. Berger was charged with three counts of aiding and assisting in the preparation of a false tax return. Berger’s sentencing hearing has not yet been scheduled. Berger faces a maximum statutory penalty of three years in prison for each count.
Burrill pleaded guilty on December 7, 2017 to one count of investment-adviser fraud and one count of tax evasion. Burrill’s sentencing is scheduled for September 25, 2018. He faces a maximum penalty of five years in prison for investment-adviser fraud and five years in prison for tax evasion.
Berger and Burrill also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Tse thanked special agents of IRS Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant U.S. Attorney Robert S. Leach and Tax Division Trial Attorney Lori Hendrickson, who are prosecuting the case with the assistance of Maryam Beros, Lilian Arauz Hasse, Larry Garland, and Bridget Kilkenny.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Saint Albans Man Pleads Guilty to Federal Fentanyl ChargeRead the Press Release
CHARLESTON, W.Va. – A Saint Albans man pled guilty today to a federal fentanyl charge, announced United States Attorney Mike Stuart. Travis Raynard Edwards, 30, entered his guilty plea to possession with intent to distribute 40 grams or more of fentanyl before United States District Judge Irene C. Berger. Stuart commended the investigative efforts of the Drug Enforcement Administration.
“Our efforts are focused on getting guys like Edwards off the streets,” said United States Attorney Mike Stuart. “We will prosecute every dealer of fentanyl to the fullest extent of the law. As announced just last week, we are dedicating even more resources to address the problem of synthetic opioids.”
On March 2, 2018, DEA task force officers executed a search warrant at Edwards’ apartment on Shadyside Road in Saint Albans. They seized 195 grams of fentanyl and two firearms. Edwards has prior felony convictions of unarmed robbery and delivery of a controlled substance.
Edwards faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on October 25, 2018. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Project Safe Neighborhoods Cases Sentenced TodayRead the Press Release
SACRAMENTO, Calif. — As part the Eastern District of California’s strategy to reduce violent crime by focusing on eradicating illegal firearms, U.S. Attorney McGregor W. Scott announced the sentencing today of three federal firearms offenders.
U.S. District Judge Troy L. Nunley sentenced Tony Hill, 25, of Stockton to seven years and two months in prison for being a felon in possession of a firearm. According to court documents, Hill was found in possession of a stolen Smith & Wesson pistol with a speed-loader. Hill, who has multiple prior felony convictions, was on parole at the time of his arrest from a prior offense, and had been out of prison for less than four months. This case is the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Stockton Police Department. Assistant U.S. Attorney Cameron Desmond prosecuted the case. 2:17-cr-168 TLN
U.S. District Judge Morrison C. England Jr. sentenced Nicholas J. Lopez, 31, of Sacramento to seven years in prison for being a felon in possession of a firearm. According to court documents, in October 2016, Lopez was stopped for speeding on Interstate 5 in Glenn County. Because Lopez was driving with a suspended license, the car was seized and later searched. Inside the car the officers found a 9 mm handgun with a loaded 15-round magazine, two .40-caliber firearm magazines loaded with 10 rounds, and two 9 mm firearm magazines loaded with 10 rounds. Officers then executed a search warrant at Lopez’s residence where they found additional firearms. Because Lopez has previous felony convictions, he is prohibited from possessing firearms. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Glenn Interagency Narcotics Task Force and the California Highway Patrol. Assistant U.S. Attorney Owen Roth prosecuted the case.
2:17-cr-003 MCEJudge Nunley sentenced Lavell McDonald, 38, of Stockton, to five years in prison for being a felon in possession of a firearm. According to court documents, on February 16, 2016, McDonald was stopped while driving a moped in Stockton for an outstanding warrant. Officers searched him and found a 9 mm handgun with a bullet in the chamber. They also found a loaded magazine that matched the handgun nearby. McDonald had previously been convicted of a felony and was prohibited from possessing a firearm or ammunition. This case is the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stockton Police Department. Assistant U.S. Attorney Owen Roth prosecuted the case. 2:17-cr-010 TLN
These cases are 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.
Previously Convicted Illegal Alien Sentenced for Illegal ReentryRead the Press Release
RICHMOND, Va. – A Mexican citizen residing in Richmond was sentenced today to 37 months in prison for illegal reentry after being removed following a felony conviction.
According to court documents, Pablo Santos-Castro, 33, illegally entered the United States in 1999. He was removed and illegally returned to the United States several times thereafter. In 2009 and 2010, he was convicted of grand larceny in Richmond and Prince George. He was again removed from the United States before illegally returning and being apprehended in connection with an arrest for driving under the influence.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney S. David Schiller 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. 3:18-cr-21.
Port St. Lucie Resident Sentenced to More Than 12 Years in Prison for International Firearms TraffickingRead the Press Release
A Port St. Lucie resident was sentenced today to more than 12 years in prison for unlawfully exporting firearms, firearm accessories, and ammunition from South Florida to Rio de Janeiro, Brazil.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office; Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Ken J. Mascara, Sheriff, St. Lucie County Sherriff’s Office, made the announcement.
Frederik Barbieri, 47, of Port St. Lucie, Florida, previously pled guilty to one count of conspiracy to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, and one count of unlicensed exportation of defense articles, in violation of Title 22, United States Code, Section 2778. Today, U.S. District Court Judge Federico A Moreno sentenced Barbieri to 154 months in prison, to be followed by supervised release In addition, Judge Moreno entered a forfeiture money judgment against Barbieri in the amount of $9.6 million, which represents proceeds from the offenses, based on 122 shipments of water heaters containing approximately 915 firearms, and 15 shipments of air conditioning units containing approximately 45 firearms, a total of 960 firearms, with a profit of approximately $10,000.00 per firearm. Furthermore, the firearms and ammunition are subject to forfeiture.
According to stipulated facts filed in court, from May of 2013 through February of 2018, Barbieri conspired with others to: possess firearms with obliterated serial numbers; deliver packages containing those firearms to contract carriers for international shipment without providing notice that the packages contained firearms; and smuggle firearms, firearm accessories, and ammunition from the United States to Rio de Janeiro, Brazil.
During this period, a shipment sent by Barbieri was intercepted in Rio de Janeiro by Brazilian law enforcement and found to contain approximately thirty AR-15 and AK-47 rifles and firearm magazines, all concealed in four 38-gallon Rheem water heaters. The water heaters were hollowed out and loaded with the contraband, and the serial numbers on each of the firearms had been obliterated. The same day that Brazilian authorities intercepted his shipment, Barbieri called and requested that the freight forwarder destroy the related paperwork.
Documentation provided by the freight forwarder revealed Barbieri’s historical shipments. In addition to shipping the four Rheem water heaters in which he concealed approximately thirty rifles, Barbieri also shipped to Brazil an additional 120 Rheem water heaters, as well as 520 electric motors and 15 air conditioning units, from May of 2013 to May of 2017, using that freight forwarder. These items are all consistent with objects used to conceal the illegal international shipment of firearms and ammunition.
In February 2018, federal agents executed a warrant to search a storage unit rented by Barbieri in Vero Beach, Florida. In the storage unit, law enforcement discovered 52 rifles, 49 of which were wrapped for shipment with obliterated serial numbers. In addition, law enforcement discovered dozens of high capacity firearm magazines, over 2,000 rounds of ammunition, and packaging materials. Barbieri was arrested the following day.
It is illegal for civilians to possess firearms in Brazil. According to Brazilian law enforcement, AK and AR rifles have a black market value of approximately $15,000 to $20,000. The retail cost of those firearms in the United States is approximately $700 to $1,000.
Neither Barbeiri, nor any of his coconspirators, obtained a license or written approval from the United States Department of State to export any defense articles. Non-automatic firearms, firearm accessories, and ammunition are articles designated as “defense articles,” pursuant to federal regulations.
Mr. Greenberg commended the investigative efforts of ICE-HSI, ATF, and CBP in connection with this matter. This case was prosecuted by Assistant U.S. Attorney Brian J. Shack.
Related court documents and information can be found on the District Court for the Southern District of Florida’s website at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Phoenix, Arizona, Man Pleads Guilty to Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that Luis Lopez Arce, age 26, of Phoenix, Arizona pled guilty to Possession With Intent To Distribute Heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2, punishable by not less than 5 years nor not more than 40 years imprisonment, up to a $5,000,000.00 fine, or both.
The Indictment alleged that on or about April 24, 2018, within the Eastern District of Oklahoma, defendant, did knowingly and intentionally possess with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance.The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Owner of City Drug Co. in Maryville Pleads Guilty to Federal Drug and Firearms ChargesRead the Press Release
KNOXVILLE, Tenn. – On July 19, 2018, Randall Scott Jenkins, 55, of Maryville, Tennessee, pleaded guilty in U.S. District Court to an Information charging him with two counts of aggravated theft of pre-retail medical products from City Drug Co., and one count of unlawfully possessing firearms and ammunition while being an unlawful user of a controlled substance.
Sentencing is set for 10:00 a.m., Thursday, December 13, 2018. Jenkins faces up to five years in prison and a fine of up to $250,000, for each of the aggravated drug theft charges. He also faces up to 10 years in prison and a fine of up to $250,000 on the firearms charge. Additionally, he will be subject to supervision by U.S Probation for up to three years upon his release from prison.
According to the plea agreement on file with U.S. District Court, since approximately 2002 Jenkins was a licensed pharmacist and co-owner of City Drug Co. In April 2018, surveillance cameras caught him, on two separate occasions, stealing bottles of pre-retail oxycodone from the controlled substance vault of the business. Jenkins had no prescription for the oxycodone and subsequently admitted to stealing the drugs to satisfy his own personal addiction to the painkillers.
In May 2018, law enforcement agents questioned Jenkins about additional stolen prescription painkillers, including empty prescription bottles. While Jenkins admitted to having a drug addiction problem, he told investigators he did not keep “trophies,” referring to the empty prescription painkiller bottles. That same day, a bottle containing oxymorphone and a bottle containing oxycodone were found in his home, and a loaded semi-automatic pistol was found in his vehicle. Jenkins had no valid prescription for either drug. Later in May 2018, a federal search warrant executed at his home in Maryville, Tennessee, revealed hydrocodone in an unlabeled pill bottle, oxycodone in two pre-retail pill bottles hidden under clothes in his master bedroom, and 19 firearms and ammunition.
“The U.S. Attorney’s office will continue to use all criminal and civil remedies available under federal law to combat the rapidly growing drug crisis in America,” said U.S. Attorney J. Douglas Overbey. “Prescription opioids, such as oxycodone and oxymorphone, are potent, powerful, addictive and easily abused painkillers which are only available by a prescription issued by a licensed physician for a legitimate medical purpose. Our office will prosecute aggressively individuals in the health care industry, including physicians and pharmacists, who choose to abuse their authority and commit unlawful actions in furtherance of the opioid epidemic in east Tennessee,” added U.S. Attorney Overbey.
“This case reflects the level of cooperation between the men and women of the Drug Enforcement Administration and our law enforcement partners, as we work together to stop the diversion of dangerous pharmaceuticals,” said D. Christopher Evans, Special Agent In Charge of the Drug Enforcement Administration’s Louisville Field Division. “The DEA is proud to participate in the Opioid Fraud and Abuse Detection Unit, and remains committed to using every weapon in our arsenal to combat America’s deadly opioid epidemic.”
Agencies involved in this investigation include DEA-Tactical Diversion Squad and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney David Lewen, Jr. represents the United States in court proceedings.
In August 2017, Attorney General Jeff Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit to help combat the devastating opioid crisis that is ravaging families and communities across America. This unit focuses specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this prescription opioid epidemic. Federal prosecutors, working with FBI, DEA, HHS, as well as state and local partners, will help target and prosecute these doctors, pharmacies, and medical providers who are furthering this epidemic to line their pockets. The U.S. Attorney’s Office for the Eastern District of Tennessee was one of 12, out of 94 districts across the country, chosen to participate in this program.
###
Oklahoma City Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
OKLAHOMA CITY – JESUS FRANSISCO CERVANTES, 31, of Oklahoma City, pleaded guilty today to conspiring to possess methamphetamine with intent to distribute, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
A federal grand jury indicted Cervantes on March 20, 2018, for conspiracy and possessing methamphetamine with intent to distribute. He has been in the custody of the U.S. Marshals Service since his initial appearance on April 10, 2018.
Today Cervantes pleaded guilty to a superseding information filed on July 17, 2018, that charges him with conspiring to possess five grams or more of methamphetamine from November 19, 2017, to February 16, 2018. In a plea agreement, Cervantes acknowledges his crime involved 709.6 grams of actual methamphetamine, which is more than a pound-and-a-half.
At sentencing, Cervantes faces up to forty years in prison, including a mandatory minimum sentence of five years in prison. After release, he will be subject to supervision for no fewer than four years and up to life. This offense also carries a potential fine of $5,000,000. As part of his sentence, Cervantes has agreed to forfeit a 2006 Toyota 4-Runner Limited and $5,460 in cash. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Nicholas J. Patterson is prosecuting the case.
Reference is made to court filings for further information.
Ohio Man Sentenced in Connection with Meth Distribution ConspiracyRead the Press Release
CHARLESTON, W.Va. – An Ohio man was sentenced today to federal prison for his role in a methamphetamine distribution conspiracy, announced United States Attorney Mike Stuart. Joshua Gregory Richardson, age 34, of Columbus, Ohio, was sentenced to 71 months’ imprisonment. Richardson had previously pled guilty in in February of this year. Stuart praised the work of MDENT.
“The influx of meth continues,” said United States Attorney Mike Stuart. “I applaud this conviction that puts another meth dealer behind bars.”
From approximately December 1, 2016, to December 20, 2016, Richardson was a supplier of dealer amounts of methamphetamine to another dealer in Cross Lanes, West Virginia. On December 20, 2016, members of the Metropolitan Drug Enforcement Network Team (MDENT) conducted a controlled purchase of approximately 1 ounce of methamphetamine from the local Cross Lanes dealer. After the controlled purchase, but before the agents left the area, Richardson arrived to collect money owed him for methamphetamine he had previously provided the local dealer. Agents followed Richardson from Cross Lanes into Ohio, where Ohio authorities conducted a traffic stop of his vehicle. A drug dog was at the scene and positively indicated on the vehicle. No drugs were found at the time. Richardson, however, possessed $9883 in cash at the time of the stop, $900 of which was pre-recorded buy money from the controlled purchase conducted in Cross Lanes earlier that day. Agents also downloaded text messages between defendant and the local dealer in which they discuss the sale of methamphetamine. The court also ordered that the cash found on him in Ohio be forfeited to the United States.
United States District Court Judge Irene C. Berger imposed the sentence. Assistant United States Attorney R. Gregory McVey handled the prosecution.
Follow us on Twitter: SDWVNews
###
Norwalk Man Indicted for Escaping from Halfway HouseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment on July 2, 2018, charging BRANDEN HUERTAS, 36, formerly of Norwalk, with escape from the custody of the Bureau of Prisons.
According to the indictment, on or about June 22, 2018, HUERTAS escaped from the Chase Center in Waterbury. HUERTAS had been confined to the Chase Center to complete his term of incarceration after being convicted in 2015 of unlawful possession of a firearm.
HUERTAS was arrested on July 18, 2018, and is currently detained.
If convicted, HUERTAS faces a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.
Newport News Man Sentenced to 45 Years for 2009 MurderRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 45 years in prison for his role in a 2009 murder in Newport News.
Bryan Lamar Brown, 31, was convicted following a jury trial on April 17, along with co-defendants Mark Xavier Wallace of Williamsburg and Joseph James Cain Benson of Boston, for their respective roles in the 2009 murder of Louis Joseph Jr., in Newport News.
According to court documents, Joseph was beaten and shot multiple times at his Denbigh home while he babysat a five-year-old child. Brown, Benson and Wallace planned to commit a home invasion of Joseph to obtain money and drugs. Brown transported the co-defendants to Joseph’s house and also supplied the two firearms to commit the murder. After the murder, Brown drove the co-defendants away from the scene. Shortly thereafter, Brown had the firearms used in the murder transported to New York City to be resold for profit. Unbeknownst to Brown, law enforcement had a court authorized wiretap and overheard Brown setting up the deal to get rid of the murder weapons.
Benson and Wallace are scheduled for sentencing on July 24 and August 6, respectively.
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, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Lisa R. McKeel and Howard J. Zlotnick 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. 4:17-cr-45.
New York Man Sentenced to Nearly 12 Years for Furanyl Fentanyl and Crack TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Dejuan Rabb, also known as “Slim,” 36, of Brooklyn, New York, was sentenced yesterday in U.S. District Court by Judge George Z. Singal to 140 months in prison and six years of supervised release for distribution of furanyl fentanyl, a fentanyl analogue, and possession with intent to distribute, furanyl fentanyl and cocaine base, commonly known as “crack.” Rabb pled guilty on March 12, 2018.
Court records reveal that on August 30, 2017, Rabb distributed furanyl fentanyl to an individual working with police. The next day, after conducting a second purchase of furanyl fentanyl from Rabb’s co-conspirator, Donttey Collazo, agents searched two apartments used by Rabb and Collazo to distribute drugs and seized furanyl fentanyl, crack and $2,000.
In sentencing Rabb, Judge Singal noted: “fentanyl has eclipsed all other illicit substances in terms of its tragic impact on the population in this District.” On April 3, 2018, Judge Singal sentenced Collazo to 28 months in prison and three years of supervised release.
The investigation was conducted by the Maine Drug Enforcement Agency; the Lewiston and Auburn police departments; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Central Maine Violent Crimes Task Force, and was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Man Pleads Guilty in Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that STEFEN DAIGLE, age 31, of New Orleans pled guilty today to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana. DAIGLE faces a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least 5 years of supervised release.
U.S. District Judge Susie Morgan set sentencing for DAIGLE on October 24, 2018.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
New Haven Man Involved in Woodbridge Gun Shop Burglary Sentenced to 105 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL HENDERSON, also known as “Silly,” 26, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 105 months of imprisonment, followed by three years of supervised release, for his role in a Woodbridge gun shop burglary in 2015.
According to court documents and statements made in court, on June 17, 2015, at approximately 3:08 a.m., Woodbridge Police responded to a business alarm at Woodbridge Firearms Trading Post LLC, located on Selden Road in Woodbridge. When officers arrived, they found a car crashed through the front door of the business, but no individuals were in the vicinity of the store. Four firearms – two .38 caliber handguns, one .32 caliber handgun and one 9mm handgun – were taken from a glass case in the store. The car had been reported stolen from New Haven on June 15, 2015.
The investigation revealed that HENDERSON, Eric Lewis-Joyner and others committed the burglary. HENDERSON’s fingerprint was found on a bottle of cologne that was inside the car, and his DNA was found on the car’s passenger-side door handle. In the days following the robbery, HENDERSON tried to acquire .32 caliber and .38 caliber ammunition.
The day after the burglary, an unrelated court-authorized search of Eric Lewis-Joyner’s residence in Hamden revealed the stolen 9mm firearm. Investigators also subsequently recovered from the residence items that Joyner wore during the burglary. The three other stolen firearms have not been recovered.
HENDERSON has been detained since his federal arrest on October 30, 2015. While detained, HENDERSON made threats against an ATF special agent investigating this matter, the U.S. magistrate judge who signed HENDERSON’s criminal complaint, and a witness in this case. He also assaulted a guard at the detention center where he is being held. The guard suffered a concussion from the assault.
On July 14, 2016, HENDERSON pleaded guilty to one count of making a false statement to the ATF. On October 4, 2017, he pleaded guilty to one count of theft of a firearm from a federally licensed firearms dealer, one count of possession of a stolen firearm, and one count of possession of a firearm by a convicted felon.
Judge Bolden ordered HENDERSON to pay restitution in the amount of $52,225.80.
On February 10, 2016, Lewis-Joyner pleaded guilty to one count of burglarizing a federally licensed firearms dealer. On May 23, 2016, he was sentenced to 33 months of imprisonment, three years of supervised release, and restitution of $52,225.80.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the Woodbridge, New Haven and Hamden Police Departments. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Nevada Man Sentenced to Five Years for Interstate StalkingRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Donald Cain, 49, of Henderson, Nevada, and formerly of Conroe, Texas, and Columbia, South Carolina, was sentenced today in U.S. District Court by John A. Woodcock Jr. to five years in prison and three years of supervised release for interstate stalking. He pled guilty on January 11, 2018.
According to the indictment and evidence introduced at the plea hearing, Cain was married in August 2014 to a resident of Aroostook County. When they met, he worked in Calais, Maine, but soon relocated to San Antonio, Texas. His wife remained in Maine. Between November 2014 and December 2015, the defendant used a telephone to call and send threatening text messages which caused substantial emotional distress to his wife.
In imposing the statutory maximum sentence, Judge Woodcock noted that Cain’s conduct was “utterly reprehensible” and constituted a “psychological assault” and that he had “never before seen a stalking crime of such length, intensity, vulgarity, scope, sophistication and impact.”
The investigation was conducted by the Houlton Police Department, the San Antonio, Texas Police Department, the Maine Computer Crimes Task Force and the FBI in Maine and South Carolina.
Missoula Men Sentenced to Federal Prison on Drug and Gun ChargesRead the Press Release
MISSOULA - Allen Harwood, 41, and Dezmen Patron, 20, both of Missoula, were sentenced today to 138 months and 126 months in prison respectively to be followed by 5 years of supervised release. Both pleaded guilty to conspiracy to distribute methamphetamine and possessing a firearm in furtherance of drug trafficking. US District Judge Donald W. Molloy handed down the sentences.
Beginning in September of 2017 and continuing through February 6, 2018, Harwood and Patron distributed methamphetamine around the Missoula area. They would most often get the methamphetamine from Eastern Washington and return to Missoula to sell the methamphetamine out of Harwood’s residence. Harwood and Patron also carried firearms and exchanged firearms for methamphetamine on several occasions.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the FBI’s Montana Regional Violent Crime Task Force.
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.
Mississippi Certified Public Accountant Indicted for Tax FraudRead the Press Release
WASHINGTON - A federal grand jury returned an indictment on June 27, which was unsealed today, charging Hattiesburg, Mississippi certified public accountant Carl Nicholson with one count of conspiring to defraud the United States, four counts of filing false tax returns, and six counts of aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman, U.S. Attorney Mike Hurst for the Southern District of Mississippi, and Mississippi State Auditor Shad White.
According to the indictment, Nicholson was a CPA doing business in Forest County, Mississippi. From 2012 to 2015, Nicholson is alleged to have conspired with a local attorney, who was a client of Nicholson, to defraud the Internal Revenue Service by falsely classifying the attorney’s personal expenses as deductible business expenses and filing false tax returns on the attorney’s behalf. On one occasion, Nicholson is alleged to have directed that a $250,000 payment to one of the attorney’s personal trusts be classified as a business expense. The indictment also alleges that Nicholson falsified his own tax returns for a four-year period by claiming bogus business expenses.
"Those who personally defraud taxpayers and help others to do the same for personal profit will face swift and certain justice in this district,” said U.S. Attorney Hurst. “I commend our agents and state investigators for their tenacity and their unflinching manner in following the evidence wherever it led and bringing this defendant to justice. Mr. Nicholson has skirted the law for too long, and today’s indictment proves that no one can hide from justice.”
If convicted, Nicholson faces a maximum of five years in prison for the conspiracy charge and three years for each charge of filing false tax returns and aiding in the preparation of false tax returns. He also faces supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Hurst thanked special agents of Internal Revenue Service – Criminal Investigation and investigators with the Mississippi Auditor’s Office, who investigated the case, and Assistant United States Attorneys Jay Golden and Fred Harper, as well at Trial Attorney Nathan Brooks, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.