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17 August 2018
Guardian of Justice Award: KC Detectives, Federal Agents Honored for InvestigationsRead the Press Release
KANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, announced today that local and federal law enforcement officers were recognized for their work on two significant cases as recipients of the 2018 Guardian of Justice Award.
Kansas City, Mo., Police Detective Leland Blank and FBI Special Agent Ryan Williams were recognized for their investigation of two men who were convicted after a week-long trial of charges related to the kidnapping and murder of another man.
Kansas City, Mo., Police Detective Don Stanze and U.S. Postal Inspector Justin Lewis were recognized for their investigation into a conspiracy to distribute large amounts of PCP, which was shipped in gallon-sized containers from California. This successful investigation resulted in the trial conviction of the California supplier as well as the successful prosecution of numerous local defendants.
The award recipients were honored on Thursday, Aug. 16, 2017, during the 16th Annual LECC Training Seminar in Springfield, Mo.
USA v. King and Ross
Raynal King and Howard R. Ross III were each sentenced to multiple life terms in federal prison without parole for the carjacking, kidnapping and murder of Jaime Patton, following the investigation by Blank and Williams.
Patton was returning home from the hospital, where he had been caring for a family member, sometime after 5 a.m. that day when King and Ross kidnapped him and stole his 2014 Jeep Patriot. They held Patton at gunpoint and drove him around in his Jeep to ATM machines, attempting to force him to provide his PIN number for his debit card so they could withdraw cash from his bank account. Patton was unable to provide a working PIN number to withdraw cash. King and Ross became upset with the lack of cooperation from Patton and shot him in his upper thigh to make sure he knew they were not playing around.
King and Ross then drove Patton in his Jeep south on Holmes Road while they discussed what to do with him. At approximately 6:30 a.m., shortly after traveling south on Holmes Road through the intersection with 135th Street and further out of the city, Patton jumped out of his Jeep while it was moving. Patton was shot multiple times while attempting to jump and he fell to the roadway. King and Ross then fled from the area in Patton’s Jeep, leaving him to die on the side of the road.
Blank and Williams expended tremendous investigative efforts in this case and further demonstrated their dedication to justice during trial preparations and throughout the trial. It is important to note that after the jury was excused, several members of the jury were compelled to personally commend the dedication to seeking justice and thoroughness of the investigative efforts by law enforcement in this case. This type of acknowledgement by members of our community who were randomly selected to serve as jurors in this case is truly an honor.
USA v. Hamilton
Ladronal S. Hamilton, a resident of Hawthorne, California, was sentenced to life in federal prison following the investigation by Stanze and Lewis. Hamilton was the organizer and supplier to large-scale Kansas City PCP distributors, each of whom has been convicted and sentenced in federal court. He organized and arranged the cross-country shipment of numerous multi-kilogram containers of PCP from California.
Investigators made three seizures of PCP from Hamilton that totaled approximately 14 kilograms. In addition, the testimony of cooperating witnesses during the trial established that Hamilton distributed additional amounts in excess of 37 kilograms of PCP. Hamilton also possessed firearms in relation to drug trafficking during the timeframe of the conspiracy. One investigator testified that he recovered cocaine and three firearms from Hamilton’s California residence.
PCP is an exceptionally dangerous and volatile hazardous material requiring hazmat units or certified laboratories for proper handling. PCP in the mail creates a tremendous safety risk for postal employees and customers.
Hamilton was identified as the supplier in two additional federal investigations that resulted in the convictions of 31 defendants in separate cases.
In seeking the life sentence for Hamilton, the government’s court filings refer to the serious nature of the crime and to Hamilton’s extensive prior criminal record, which includes felony convictions for armed bank robbery, second-degree murder, first-degree assault, armed criminal action and possession with intent to distribute a controlled substance. A career offender for violent crimes and narcotic offenses, Hamilton’s s interstate distribution of large quantities of PCP began within three years of his release from federal prison for armed bank robbery as a result of his second revocation from supervised release.
Stanze joined the Kansas City, Mo., Police Department following his service as a soldier in the United States Army. During his 20-year career as a police officer, Stanze has become a subject matter expert in narcotics trafficking. As an undercover drug detective, Stanze purchased nearly every type of illegal drug available on the streets of Kansas City. He has used that experience to build long-term, federal investigations against some of Kansas City’s most prolific and violent drug dealers. Stanze has been sought out by federal investigators to lead or assist on multiple OCDETF investigations due to his experience and work ethic.
Lewis has worked for the U.S. Postal Service almost his entire adult life. He began working for the Post Office in college and spent approximately eight years working as a clerk, branch supervisor, and in the accounting department, before he became an inspector with the U.S. Postal Inspection Service, where he has served for 15 years. As an inspector, Lewis has focused his career on seizing illegal drugs and conducting investigations for the successful prosecution of high-level drug dealers. Lewis is also one of a select few postal inspectors who is qualified as a Dangerous Mail Specialist and since 2003, Lewis is one of a select few inspectors trained to respond to mail or parcels containing hazardous materials. Based on his extensive experience, Lewis has been a subject matter expert in narcotics interdiction and an instructor for drug interdiction for new U.S. Postal Inspectors for approximately five years. Were it not for his focus and keen insight into Hamilton’s use of the mail to facilitate his PCP shipments, the evidence to prosecute the case may have never been discovered.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.
Greenville Man Pleads Guilty to Wire FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Timothy L. Ware, age 52, of Greenville, pled guilty in federal court in Anderson, to wire fraud, a violation of Title 18, United States Code, Section 2252A. United States District Judge Timothy M. Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Seaboard Corporation (“Seaboard”) intended to wire $352,929 (“the Funds”) to Advantage Ford Commercial Sales (“Advantage”) related to a legitimate business transaction. Unbeknownst to either Seaboard or Advantage, an Advantage email account was compromised and instructions were sent to Seaboard to wire the Funds to a Branch Banking & Trust (“BB&T”) account in the custody and control of Ware. On July 8, 2016, the Funds were wired from Seaboard to the BB&T account of Ware.
On July 8, 2016, Ware began transferring the Funds from his BB&T account to accounts at the Bank of Travelers Rest and Navy Federal Credit Union. On that same day Ware withdrew $40,000 in cash from his BB&T account. Similarly, Ware obtained three BB&T cashier checks in the amounts of $87,500, $52,500, and $87,500, respectively.
The case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Gang Member Sentenced to 7 Years in Federal Prison for Distributing Heroin and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTWANE WILLIAMS-BEY, also known as “Buck,” 27, of East Windsor, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking by members and associates of the Orange Street Killas (OSK) in Hartford’s Parkville neighborhood. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the drugs on the streets of Hartford.
The investigation revealed that WILLIAMS-BEY, an OSK member, supplied heroin and crack to other OSK members for street sale. WILLIAMS-BEY also used the home of a family member on Sterling Street in Hartford to store narcotics and service drug customers.
WILLIAMS-BEY was arrested on February 10, 2017. On that date, a search of his East Windsor residence revealed approximately 800 bags of heroin and $1,650 in cash. A search of the home on Sterling Street revealed distribution quantities of heroin and crack cocaine.
WILLIAMS-BEY has been detained since his arrest. On February 22, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
WILLIAMS-BEY’s criminal history includes convictions for firearm, drug and assault offenses. The assault conviction stems from an incident in August 2009 when he shot a man from a car sunroof in West Hartford.
Sixteen individuals were charged and convicted as a result of this investigation.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fulton Sex Offender Indicted for Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A prior sex offender residing in Fulton, Mo., has been indicted by a federal grand jury for attempting to entice a minor to engage in illegal sexual activity.
Michael James Collins, 21, was charged in a three-count indictment returned by a federal grand jury in Jefferson City, Mo., on Thursday, Aug. 16, 2018. Collins, who was a resident at the Community Supervision Center in Fulton, has a prior felony conviction for sexual misconduct involving a child.
The federal indictment charges Collins with using the internet and a cell phone from July 21 to Dec. 10, 2017, to attempt to entice a minor under the age of 14 to engage in illegal sexual activity. Collins is also charged with one count of transporting a minor under the age of 14 across state lines with the intent to engage in illegal sexual activity. The indictment also alleges that Collins committed those felony offenses when he was required to register as a sex offender.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Fulton, Mo., Police Department, the FBI, the Callaway County, Mo., Prosecutor’s Office and the Callaway County Children’s Division.
Fraudsters in Eastern, North Carolina Beware! U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) has Identified Raleigh as an Expansion Site to Create a New Document and Benefit Fraud Task Force (DBFTF)Read the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced today that his Office is “proud to partner with Homeland Security Investigations and other top-tier law enforcement agencies to pursue benefit fraud investigations and prosecutions. Immigration fraud is a significant national problem, and we need to address it with all available resources."
Established in April 2006, these task forces, known as DBFTFs focus their efforts on detecting, deterring and disrupting both benefit fraud and document fraud. Investigators from a variety of agencies with expertise in different aspects of document and benefit fraud collaborate with U.S. Attorney’s Offices around the country to formulate a comprehensive approach in targeting the criminal organizations and the beneficiaries behind these fraudulent schemes.
“Immigration benefit fraud harms everyone who seeks to enter the United States lawfully by cluttering the system with fraudulent applications,” said Homeland Security Resident Agent in Charge Brian Padian. “Benefit fraud wastes government resources better spent on adjudicating legitimate applications. Document and benefit fraud task forces allow HSI/ICE to partner with federal, state, and local agencies to combat immigration fraud, protect the integrity of the immigration system, and punish those who profit from promoting fraudulent schemes.”
ICE partners with the U.S. Citizenship and Immigration Services (USCIS), U.S. Department of State, U.S. Department of Labor, Social Security Administration, and various state and local law enforcement agencies on these task forces.
“This task force expansion is another example of a DHS-wide effort to combat fraud” said Roxroy Collins, USCIS Atlanta District, Fraud Detection and National Security Chief. “Immigration fraud undermines the integrity and fairness of our immigration system and can provide dangerous individuals access to our country. Together with our DHS colleagues, we are committed to holding those accountable that commit fraud to enter or remain in the United States as well as on those who prey on immigrants with the false promise of services and benefits.”
“Passport and visa fraud are potential threats to our national security. United States passports and visas are among the most coveted documents in the world. Terrorists and criminals could use fraudulent passports and visas to enter the United States to commit acts of violence. Travel document fraud makes the United States more vulnerable to crime and terrorism, plain and simple,” said David Monroe, Resident Agent in Charge of the U.S. State Department’s Diplomatic Security Service.
Supporting these DBFTFs is ICE’s Forensic Document Laboratory, the only federal crime laboratory dedicated to the forensic examination of travel and identity documents, and its Cyber Crimes Center, and USCIS’ Office of Fraud Detection and National Security.
DBFTFs currently operate in 17 major cities including Atlanta, Baltimore, Boston, Chicago, Dallas, Denver, Detroit, Los Angeles, Miami, New York, Newark, Philadelphia, Phoenix, Saint Paul, San Francisco, Tampa, Washington, D.C./Northern Virginia, and now Raleigh, North Carolina.
During the 2017 fiscal year alone, Homeland Security Investigations initiated more than 601 criminal investigations that resulted in 459 indictments and 445 criminal arrests, along with 254 convictions and seizures totaling $5,911,875.
Document fraud refers to the manufacture, sale, or use of counterfeit identity documents such as fake driver’s licenses, birth certificates, Social Security cards or passports – for immigration fraud or other criminal activity. Document fraud also involves efforts to obtain genuine identity documents through fraudulent means and often supports the crime of benefit fraud.
Benefit fraud refers to the misrepresentation or omission of material facts on applications to obtain immigration benefits the beneficiary is not entitled to, such as U.S. citizenship, adjustment of status, employment, or visas. Because these benefits provide the ability to freely enter, work or reside in this country, they are highly valued by illegal aliens, terrorists, and other criminals.
Using fake documents and making false statements to obtain government benefits and vote in the United States is a threat to national security and undermines the principles, integrity, and fairness of all government institutions, programs, and our national immigration system. The coordinated interagency efforts of the DBFTF in Raleigh, North Carolina, will help prevent future abuses, while enabling the identification of criminals who make false statements, and utilize and manufacture false documentation.
Four Indicted in Crack Cocaine Distribution Conspiracy Run from Inside RI State PrisonRead the Press Release
PROVIDENCE, RI – A Project Safe Neighborhoods investigation by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and members of the Rhode Island ATF Task Force has resulted in the indictment of four individuals, three of them alleged to be members or associates of the C-Block street gang, for their alleged roles in a crack cocaine distribution conspiracy run from inside the Adult Correctional Institutions.
According to information presented to the Court, it is alleged that the conspiracy operated at the direction of James Gomes, 29, an inmate at the Adult Correctional Institutions. The grand jury indictment charges Gomes, and his mother, Lisa Ellis, 50, of Pawtucket, with conspiracy, distribution of 28 grams or more of cocaine base, and three counts of distribution of cocaine base.
The indictment also charges Joshua Moore, 28, of Pawtucket with conspiracy and three counts of distribution of cocaine base, and Gerald Price, 33, of Cranston, with conspiracy and distribution of 28 grams or more of cocaine base.
According to information presented to the Court, it is alleged that Gomes, Moore and Price are members or associates of the C-Block street gang.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The investigation and resulting indictment are announced by United States Attorney Stephen G. Dambruch and Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
According to information presented to the Court, it is alleged that from inside the prison, Gomes arranged crack cocaine sales to individuals outside of the prison. It is alleged that Gomes, using his prison call account and the accounts of others, placed calls to people outside of the prison directing them to distribute narcotics to certain individuals.
It is alleged that Gomes frequently called his mother, Lisa Ellis, and would direct her to establish conference calls with Moore and Price. During the conference calls, it is alleged that Gomes would direct Ellis, Moore and/or Price to sell crack cocaine to others. Some of the sales were made to an undercover law enforcement officer. After the sales, Ellis, kept a small portion of the proceeds for herself and deposit the rest of the money into Gomes’s ACI prison account.
It is alleged that members of the conspiracy were responsible for the sale of a total of approximately 112 grams of crack cocaine.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Milind M. Shah.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Cranston Police Department, Rhode Island State Police, and the Rhode Island Department of Corrections.
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Former U.S. Navy Captain and Two Chief Petty Officers Latest to be Indicted in International Navy Bribery and Fraud ScandalRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – August 16, 2018
SAN DIEGO – U.S. Navy Captain (Retired) David Williams Haas was indicted by a federal grand jury yesterday on charges that he received at least $145,000 in bribes from foreign defense contractor Leonard Francis, who plied him with parties at luxurious hotels, prostitutes, top-shelf booze and food.
In separate indictments, Master Chief Petty Officer (Retired) Ricarte Icmat David and Chief Petty Officer (Retired) Brooks Alonzo Parks were charged with honest services fraud for receiving cash, luxury travel, lavish hotel suites, dining and the services of prostitutes from Francis, owner and chief executive of Glenn Defense Marine Asia. The company provided services such as tugboats, security, fuel, food, water and trash removal to U.S. Navy ships during port visits in Asia Pacific.
According to three indictments returned today in San Diego, the trio reciprocated by using their influence within the Navy’s Seventh Fleet to approve inflated invoices by GDMA, to steer ships to GDMA-controlled ports and otherwise advance the interests of Francis and GDMA. The indictment further alleges that they and their co-conspirators used their access to slip GDMA classified and proprietary U.S. Navy information, and helped GDMA recruit other U.S. Navy officers to join the conspiracy.
According to the eight-count indictment, Haas received the following bribes, among others, from Francis:
- On November 5, 2011, while Haas was director of Maritime Operations for the Seventh Fleet staff aboard the USS Blue Ridge, Francis took Haas and others to dinner at the Ritz Carlton in Tokyo, Japan, and provided them with prostitutes at a cost of more than $20,000.
- On May 11-15, 2012, Francis paid for rooms at the Shangri-La in Jakarta, Indonesia, plus dinner, entertainment at a night club, alcohol and prostitutes for Haas and others.
- On June 29-30, 2012, in Tokyo, Japan, Francis paid for a two-day party for Haas and others including transportation, dinner at Nobu Restaurant and entertainment at several hostess clubs where the services of prostitutes were provided, at a cost of more than $75,000.
- On November 30, 2012, Francis provided a car and driver for Haas and his subordinate and co-conspirator Commander Michael Misiewicz from Yokosuka, Japan, to the Ritz Carlton Hotel in Tokyo, where Francis was staying. (Misiewicz pleaded guilty and was sentenced to 78 months in prison for conspiracy and bribery in April 2016). In Francis’s room, with Haas present, Misiewicz handed Francis an envelope of classified long-range Seventh Fleet ship schedules and Seventh Fleet organization charts. The schedules were stamped “SECRET” and projected ship visits approximately 14 months in advance. These classified schedules included information related to the U.S. Navy ballistic missile defense operations in the Pacific. After reviewing the ship schedules, Francis, Haas and Misiewicz pored over the Seventh Fleet organizational chart, which Haas and Misiewicz had brought with them, in an effort to identify and evaluate potential successors to the corrupt relationship with Francis when Misiewicz departed the Seventh Fleet the following month, in December 2012. Following these discussions, Francis took Haas and Misiewicz to a strip club where food and prostitutes were provided at a cost of approximately $7,000.
A separate indictment alleges that Master Chief Petty Officer David conspired with Francis, GDMA and others to defraud the United States of David’s honest services. In exchange for breaching his fiduciary duties to the United States Navy and the American public, David received cash, hotel rooms, and prostitutes. According to the indictment, David conspired to accept things of value from Francis and other GDMA employees in exchange for David approving fraudulently inflated invoices following port visits, passing classified information to GDMA, advocating for GDMA in contracting disputes, and providing GDMA with internal U.S. Navy information concerning competitors.
Francis gave David cash in exchange for David approving GDMA’s fraudulently inflated ship husbanding invoices, the indictment alleges. After the receipt of one cash installment, on November 16, 2005, David emailed Francis thanking him for the “wonderful Christmas present.” David, thereafter, repeatedly asked Francis for cash to build his retirement home in the Philippines, among other things. During the course of the conspiracy, David received a total of approximately $40,000 in cash from Francis.
A third indictment alleges that Parks received gifts, lavish hotel suites, airline tickets and various other benefits in exchange for Parks providing sensitive and proprietary U.S. Navy information, including competitor pricing and U.S. Navy ship and personnel movement information, among others.
So far, 32 defendants have been charged and 20 have pleaded guilty in the U.S. Navy bribery and fraud scandal.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the U.S. Attorney’s Office for the Southern District of California.
DEFENDANT Case Number: 18CR3656
Captain (Retired) David Williams Haas Age 50 Kailua, Hawaii
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater
Bribery, in violation of 18 U.S.C. § 201
Maximum Penalty: 15 years in prison, a $250,000 fine
Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine or twice the gross pecuniary gain or gross pecuniary loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater
DEFENDANT Case Number: 18CR3655
Master Chief Petty Officer (Retired) Ricarte Icmat David Age 61 Tarlac Province, Philippines
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine
DEFENDANT Case Number: 18CR3657
Chief Petty Officer (Retired) Brooks Alonzo Parks Age 46 Naples, Italy
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
- On November 5, 2011, while Haas was director of Maritime Operations for the Seventh Fleet staff aboard the USS Blue Ridge, Francis took Haas and others to dinner at the Ritz Carlton in Tokyo, Japan, and provided them with prostitutes at a cost of more than $20,000.
Former Ohio Businessman Associated with Demolition Companies Sentenced to Prison for Tax CrimesRead the Press Release
A former Cincinnati, Ohio resident was sentenced today to 24 months in prison for tax and structuring crimes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, Hugo Santamaria pleaded guilty in August 2017 to structuring cash transactions to avoid currency transactions reports and conspiring to defraud the United States. Beginning in 2006, Santamaria owned and operated multiple demolition companies and conspired with his business partner in those companies to conceal income from the Internal Revenue Service (IRS) and evade their personal income taxes. In order to further his scheme, Santamaria engaged in acts of evasion such as opening bank accounts for his co-conspirator to hide income and serving as a nominee for his co-conspirator’s businesses. Santamaria also wrote, signed, and cashed numerous checks and made cash withdrawals in amounts less than $10,000 on consecutive days to evade bank-reporting requirements.
Santamaria and his co-conspirator also paid workers in cash and failed to withhold and pay over any payroll taxes. Santamaria admitted to paying himself a weekly salary from company bank accounts, and paying personal expenses including food, lodging, clothing, gym memberships, and tuition for private school out of the business bank accounts, all in an effort to avoid paying personal income taxes. Santamaria has not filed a personal tax return since 2007.
In addition to the term of imprisonment imposed, U.S. District Judge Timothy Black ordered Santamaria to serve three years of supervised release and to pay $26,213 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Richard M. Rolwing of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Norwalk Resident Pleads Guilty to Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIGUEL ANGEL ARCOS-VASQUEZ, also known as “Dimas Fernando Herrarte,” 26, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of illegally reentering the U.S. after being deported. ARCOS-VASQUEZ, a citizen of either Mexico or Guatemala, last resided in Norwalk.
According to court documents and statements made in court, ARCOS-VASQUEZ illegally entered the U.S. in or before 2014. In March 2014, he was arrested by the Stratford Police Department for a burglary offense. In April 2014, he also was charged with failure to appear. He was not encountered by U.S. Immigration and Customs Enforcement at this time.
In January 2016, ARCOS-VASQUEZ attempted to enter the U.S. three times through Texas, but was removed to Mexico after each attempt.
On January 24, 2017, ARCOS-VASQUEZ was arrested by the Stamford Police Department on charges of threatening in the first degree. On January 27, 2017, under the name of Dimas Herrarte-Ramirez, he was charged by the Norwalk Police Department with sale of a hallucinogen/narcotic and criminal possession of a firearm. ARCOS-VASQUEZ has been detained since that time, and U.S. Immigration and Customs Enforcement was notified.
Chief Judge Hall scheduled sentencing for November 14, 2018, at which time ARCOS-VASQUEZ faces a maximum term of imprisonment of two years.
In October 2017, the state charges against ARCOS-VASQUEZ were resolved and he is currently serving a state sentence of five years of imprisonment, execution suspended after two years.
Immigration authorities are in the process of determining if ARCOS-VASQUEZ is a citizen of Mexico or Guatemala.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Former FCI Ray Brook Corrections Officer Admits Accepting BribeRead the Press Release
ALBANY, NEW YORK – Carlos Ochoa, age 32, of Puerto Rico, pled guilty today to accepting a bribe in exchange for smuggling a cell phone to an inmate at Federal Correctional Institution (FCI) Ray Brook.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and Guido Modano, Special Agent in Charge of the New York Field Office of the U.S. Department of Justice Office of the Inspector General (DOJ OIG).
As part of his plea, Ochoa admitted that from approximately September 2012 to October 2012, while employed as a corrections officer at FCI Ray Brook in Ray Brook, New York, he accepted cash to smuggle a cell phone and charger to inmate Richard Coleman.
United States Attorney Grant C. Jaquith stated: “For a few hundred dollars, Ochoa sold his integrity as a federal corrections officer to a prisoner by smuggling in a cell phone. His brazen violation of prison rules risked the safety of all who worked in the prison. As thousands of officers protect us with courage and integrity, we will continue to work with the FBI, DOJ OIG, and the Bureau of Prisons to prosecute the few corrections officers who put illicit personal profit before public trust and prison security.”
“Any law enforcement officer who violates their oath to protect the community and instead takes part in criminal activity should expect the same outcome as a criminal," said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “This case serves as a reminder that no one is above the law and that the FBI is committed to working with the law enforcement community to prevent the erosion of trust that accompanies incidents like this one.”
DOJ OIG Special Agent in Charge Modano stated: “Ochoa abused a position of trust for personal gain and by doing so risked the security of FCI Ray Brook. The DOJ OIG is committed to rooting out such corruption within our federal prison system.”
On September 27, 2012, Coleman directed his then-girlfriend, Kara Coneeny, to purchase a cell phone for him to use while incarcerated at FCI Ray Brook, a medium-security federal prison in Essex County that houses more than 700 inmates. On October 1, 2012, Coleman told Coneeny that an employee at FCI Ray Brook would smuggle the phone into the prison for money. Coleman directed Coneeny to contact Kia Barnes, a friend of Coleman’s cellmate, Nathaniel Bernard.
On October 6, 2012, as directed by Coleman, Coneeny purchased an iPhone 4S and iPhone chargers. On October 17, 2012, Coneeny withdrew $500 cash from her account at an ATM and on October 18, 2012, Coneeny activated the iPhone and withdrew another $400 cash from her account.
On October 19, 2012, Coneeny drove to Saranac Lake, New York, met with Barnes, and gave Barnes the iPhone and at least $600 cash. On October 21, 2012, Barnes met with Ochoa and gave him the iPhone and cash.
On October 21, 2012, Ochoa smuggled the iPhone into FCI Ray Brook and gave it to Coleman and Bernard, while keeping the cash. Officers found the cell phone on March 8, 2013.
Ochoa faces up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI, the U.S. Department of Justice Office of the Inspector General, and the U.S. Bureau of Prisons, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.
In U.S. District Court for the District of Puerto Rico, Ochoa faces unrelated charges of bribery, providing contraband in prison, and gun and drug charges. He is innocent of those charges unless and until proven guilty.
Fifteen Prosecuted for Illegal Reentry in JulyRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that 15 individuals were prosecuted in July by his office for illegal reentry into the country after having been deported and removed. All defendants convicted of “Illegal Reentry” are subject to deportation proceedings following their sentences.
Eleven individuals were indicted by a Grand Jury on July 12, 2018 for “Illegal Reentry”. An indictment is only an allegation of criminal conduct. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. Those indicted were:
1. JESUS ALONSO-JAIMES, age 42, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on December 7, 2016 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Alonso-Jaimes was found unlawfully in Athens-Clarke County, Georgia on July 2, 2018. If convicted, Mr. Alonso-Jaimes faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Tamara Jarrett.2. JESUS BELMONTES-GUDINO, age 40, a citizen of Mexico is charged with Illegal Reentry after being deported and removed from the United States on May 4, 2013 and March 2, 2017 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Belmontes-Gudino was found unlawfully in Terrell County, Georgia on April 25, 2018. If convicted, Mr. Belmontes-Gudino faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Jim Crane.
3. CUTBERTO CHARLES-VALERO, age 46, a citizen of Mexico is charged with Illegal Reentry after being deported and removed from the United States on August 23, 2013 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Charles-Valero was found unlawfully in Oconee County, Georgia on June 14, 2018. If convicted, Mr. Charles-Valero faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Kim Easterling.
4. RICARDO GARFIAS-TINOCO, age 38, a citizen of Mexico, is charged in a two-count indictment. In Count One, he is charged with the offense of Illegal Reentry after being deported and removed from the United States on July 30, 2003 and August 28, 2007 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Garfias-Tinoco was found unlawfully in Athens-Clarke County, Georgia on June 14, 2018. If convicted of Count One, Mr. Garfias-Tinoco faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both. In Count Two, he is charged with the offense of Possession of a Firearm by an Illegal Alien. If convicted of Count Two, Mr. Garfias-Tinoco faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both.
The case was investigated by the Homeland Security Investigations, and it is being prosecuted by Assistant U.S. Attorney Kim Easterling.5. MIGUEL GUZMAN-BERNAL, age 22, a citizen of Guatemala, is charged with one (1) count of Illegal Reentry after being deported and removed from the United States on December 4, 2015 and January 26, 2017 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Guzman-Bernal was found unlawfully in Harris County, Georgia on June 6, 2018. If convicted, Mr. Guzman-Bernal faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Crawford Seals.6. JOSE FRANCISCO, age 43, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on June 9, 2011 and June 4, 2013 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Francisco was found unlawfully in Lowndes County, Georgia on June 5, 2018. If convicted, Mr. Francisco faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Sonja Profit.7. ELIAS LOPEZ-GOMEZ, age 33, a citizen of Guatemala, is charged with Illegal Reentry after being deported and removed from the United States on July 30, 2003 and July 18, 2012 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Lopez-Gomez was found unlawfully in Butts County, Georgia on June 8, 2018. If convicted, Mr. Lopez-Gomez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Paul McCommon.8. LUIS MALAGON-GALVAN, age 40, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on June 4, 2015 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Malagon-Galvan was found unlawfully in Colquitt County, Georgia on May 22, 2018. If convicted, Mr. Malagon-Galvan faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Robert McCullers.
9. CARLOS MENDEZ-RAMIREZ, age 38, a citizen of Guatemala, is charged with Illegal Reentry after being deported and removed from the United States on March 30, 2015, September 18, 2015 and April 29, 2016 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Mendez-Ramirez was found unlawfully in Berrien County, Georgia on March 18, 2018. If convicted, Mr. Mendez-Ramirez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Julia Bowen.
10. ABEL MENDOZA-SANCHEZ, age 40, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on March 30, 2017 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Mendoza-Sanchez was found unlawfully in Muscogee County, Georgia on February 14, 2018. If convicted, Mr. Mendoza-Sanchez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Melvin E, Hyde, Jr.
11. JAVIER PENA-CASAS, age 41, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on February 23, 2008, October 31, 2015 and May 3, 2016 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Pena-Casas was found unlawfully in Madison County, Georgia on June 6, 2018. If convicted, Mr. Pena-Casas faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Kim Easterling.
Two individuals pled guilty to the charge of Illegal Reentry in July. Those who pled guilty are:
JUAN PEZA-RAMIREZ a/k/a Jose Hernandez-Saldana, a citizen of Mexico, entered a guilty plea to Illegal Reentry on July 31, 2018, before U.S. District Court Judge Tillman E. Self, III. Mr. Peza-Ramirez was indicted on the charge on April 10, 2018 after being removed and deported from the United States on January 19, 2007, October 21, 2011 and April 24, 2012 and returning without the consent of the Attorney General of the United States or the Secretary for Homeland Security to re-apply for admission. He was found in Houston County unlawfully on February 15, 2015. Sentencing is set for October 16, 2018. Mr. Peza-Ramirez faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both. This case is being prosecuted by Assistant U.S. Attorney Elizabeth S. Howard.
ARISTEO RAMIREZ-HERNANDEZ, a citizen of Mexico, entered a guilty plea to Illegal Reentry on July 10, 2018 before Senior U.S. District Court Judge C. Ashley Royal. Mr. Ramirez-Hernandez was indicted on the charge on May 9, 2018 after being removed and deported from the United States on July 31, 2014, September 19, 2014 and December 30, 2014 and returning without the consent of the Attorney General of the United States or the Secretary for Homeland Security to re-apply for admission. Mr. Ramirez-Hernandez was arrested for Battery and Family Violence/Battery in Athens-Clarke County on May 7, 2017 and determined to be in the United States illegally. Sentencing is set for September 5, 2018. Mr. Ramirez-Hernandez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both. This case is being prosecuted by Assistant U.S. Attorney Peter D. Leary.
Two individuals were sentenced for Illegal Reentry in July. Those who were sentenced are:
FRANCISCO BUESO, a citizen of Honduras, and EDY EDWIN SOLIS-LOPEZ, a citizen of Guatemala, were sentenced for Illegal Reentry by Senior U.S. District Court Judge C. Ashley Royal to time served on July 11, 2018 and delivered to the Bureau of Immigration and Customs Enforcement for deportation proceedings and ordered not to re-enter the United States unless they obtain legal means of entry. The pair was discovered in a van in Franklin County with six others on February 15, 2018. Mr. Bueso had previously been removed and deported on October 31, 2017, and Mr. Solis-Lopez had previously been removed and deported on January 19, 2006. This case is being prosecuted by Assistant U.S. Attorney Peter D. Leary.
Questions concerning these cases should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Ewa Beach Man Sentenced to 88 Months for Fireworks, Methamphetamine ChargesRead the Press Release
HONOLULU – Malcolm Militante, 51, formerly a resident of Ewa Beach, Hawaii, was sentenced yesterday to 88 months’ imprisonment for possession of explosives, namely display fireworks, and for possession with intent to distribute methamphetamine. As part of his sentence, Militante must pay $2,966.60 in restitution to Hawaii Explosives & Pyrotechnics (HEP), the company from which Militante stole the fireworks.
U.S. Attorney Kenji M. Price stated that, according to court documents and information presented in court, HEP produces commercial fireworks shows, including the Friday night fireworks show at the Hilton Hawaiian Village in Waikiki. On November 25, 2016, HEP reported that the company truck had been stolen, and HEP’s storage bunker, which had contained display and general use fireworks, fireworks supplies, and equipment, had been burglarized. The next day, the Honolulu Police Department received an anonymous tip that Militante possessed the stolen fireworks at a residence in Ewa beach that he shared with his mother. HPD officers searched the residence, found the stolen fireworks, and seized them. Militante was later indicted for stealing the fireworks from HEP and for being a convicted felon in possession of explosives, namely the fireworks. On November 9, 2017, Militante was arrested on those charges. At the time of the arrest, HPD recovered a backpack containing about 29 grams of methamphetamine, a digital scale, other drug paraphernalia, and $6,000 in cash. Militante was later indicted in a separate case for possessing the 29 grams of methamphetamine with the intent to distribute it.
On January 16, 2018, Militante pleaded guilty to possession of explosives, namely display fireworks, and possession with intent to distribute methamphetamine. The two cases were joined for purposes of sentencing. U.S. District Judge Derrick K. Watson, imposed a sentence of 88 months to be followed by a five-year term of supervised release. In imposing sentence, Judge Watson noted that possession of display fireworks is inherently dangerous. He further stated that, while Militante did not attempt to modify or destroy the fireworks, the possession of them in an unsecured place like his residence, which he shared with his mother, put them both at risk.
The case was jointly investigated by the Honolulu Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorney Marshall H. Silverberg.
Ethiopian Human Rights Abuser Arrested for Fraudulently Obtaining U.S. CitizenshipRead the Press Release
A naturalized U.S. citizen residing in Alexandria, Virginia, was arrested today by special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) after being indicted on a felony charge of having fraudulently obtained U.S. citizenship.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Special Agent in Charge Patrick J. Lechleitner of HSI Washington, D.C made the announcement.
Mergia Negussie Habteyes, 58, is charged in an indictment, which was returned by a grand jury for the Eastern District of Virginia on Aug. 14, alleging that Negussie told a series of lies to U.S. immigration authorities in the course of obtaining authority to enter the United States as a refugee, subsequently obtaining lawful permanent-resident status, and ultimately obtaining U.S. citizenship. Specifically, the indictment asserts that, when he applied for naturalization in the United States, Negussie falsely stated that he never persecuted persons because of their political opinion, and he failed to disclose that he had committed a crime or offense for which he was not arrested. In fact, according to the indictment, Negussie served as a civilian interrogator in the Higher 3 prison in Ethiopia in the late 1970s, during a period known as the Red Terror. In that role, Negussie is alleged to have participated in the persecution, through brutality, of individuals imprisoned because of their political opinion. Additionally, Negussie falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits.
Negussie’s initial court appearance is at 2:00 p.m. before U.S. Magistrate Judge Michael S. Nachmanoff of the Eastern District of Virginia.
“Negussie allegedly concealed his role in persecuting Ethiopian prisoners for their political opinions during that country’s so-called Red Terror period when he applied for, and ultimately obtained, U.S. citizenship,” said Assistant Attorney General Benczkowski. “As this case demonstrates, the Justice Department will not allow the United States to become a safe haven for human rights violators, and we will continue to aggressively prosecute those who seek to exploit our immigration system through fraud and deceit.”
“Negussie sought to outrun his past by allegedly employing deception to fraudulently obtain United States citizenship,” said U.S. Attorney G. Zachary Terwilliger. “This indictment reflects the government’s dedication to investigating and prosecuting criminal immigration cases, including those involving alleged human rights violators.”
“The persecution of individuals for their political opinion and expression violates one of our most basic and foundational tenets as a nation,” said HSI Special Agent in Charge Lechleitner. “We will not allow human rights violators to use lies, fraud and deceit to exploit our laws.”
If convicted, Negussie faces up to 10 years in federal prison. Conviction would also result in automatic revocation of Negussie’s U.S. citizenship as well as likely removal to Ethiopia.
The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by HSI with the support of the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders. The HRVWCC is comprised of ICE HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Section, FBI’s International Human Rights Unit and DOJ’s Human Rights and Special Prosecutions Section (HRSP).
The case is being jointly prosecuted by Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Alexander Blanchard of the Eastern District of Virginia.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863, or through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Esteban Santiago-Ruiz Sentenced to Life in Prison in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
Esteban Santiago-Ruiz (Santiago) was sentenced today to life in prison by United States District Judge Beth Bloom, after previously pleading guilty to charges of committing acts of violence at an international airport resulting in five deaths and serious injuries, in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
“While nothing can ever heal the wounds inflicted by the defendant’s unspeakable and horrific acts of violence, we hope that the life sentence imposed today provides at least some sense of justice for the victims and their loved ones,” said U.S. Attorney Benjamin G. Greenberg. “Though we all hope that such tragedy never again occurs, law enforcement remains committed to making our community safer and caring for victims of crime when tragedy strikes.”
“My thoughts are with the victims, their loved ones and everyone affected by this senseless and cowardly act of violence,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “While this sentence cannot erase what happened, may it serve to demonstrate society’s commitment to honor and remember those who suffered that day.”
“Since this horrible tragedy first occurred, my prayers have remained with the families,” Sheriff Scott Israel said. “Though this sentencing won’t change the outcome, I hope everyone affected by this killer’s heinous actions can find a way to move forward and heal.”
On May 23, 2018, Santiago pled guilty to five counts of committing acts of violence at an international airport causing death (Counts 1-5) and six counts of committing acts of violence at an international airport causing serious bodily injury (Counts 6-11), all in violation of Title 18, United States Code, Section 37(a)(1). Judge Bloom sentenced Santiago to five consecutive terms of life imprisonment on Counts 1-5, and consecutive terms of 20 years imprisonment on Counts 6-11.
According to court documents, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and seriously wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies. The FBI investigated the case along with the U.S. Attorney’s Office.
Mr. Greenberg commended the investigative assistance of FBI and BSO in this matter. This case was prosecuted by Assistant United States Attorneys Ricardo A. Del Toro and Lawrence D. LaVecchio.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eighth Circuit Casts Doubt on Medtronic’s Transfer Pricing MethodRead the Press Release
The Court of Appeals for the Eighth Circuit issued an opinion yesterday reversing a Tax Court decision that had rejected the Commissioner’s valuation method in a closely watched transfer-pricing case, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Travis A. Greaves of the Justice Department’s Tax Division.
In Medtronic, Inc. & Consolidated Subsidiaries v. Commissioner, No. 17-1866, the Eighth Circuit held that the Tax Court had rejected the Commissioner’s transfer-pricing method, and adopted that of the taxpayer, without first engaging in the analysis required under Treasury’s transfer-pricing regulations. Because the Tax Court failed to make the necessary factual findings under those regulations, the Eighth Circuit was unable to determine whether the court “applied the best transfer pricing method for calculating an arm’s length result or whether it made proper adjustments under its chosen method.” Accordingly, it vacated the Tax Court’s order and remanded the case for further consideration by the Tax Court.
Principal Deputy Assistant Attorney General Zuckerman thanked Tax Division attorneys Richard Farber and Judith Hagley, who handled the case on appeal for the government.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Eight people indicted for their roles in a conspiracy to create a methamphetamine and cocaine trafficking supply chain from Mexico to Northeast OhioRead the Press Release
Eight people were indicted in federal court for their roles in a conspiracy to create a methamphetamine and cocaine trafficking supply chain from Mexico to Northeast Ohio.
Named in the 13-count indictment are: Jesus Cota Medina, 26, of Mexico; Deon Johnson, 48, of Cleveland; Michelle Dailey, 44, of Cleveland; Shauheen Sohrabi, 32, of Akron; Joseph Terlizzi, 28, of Bedford; Tyrone Rogers, 36, of Maple Heights; Hector Manuel Ramos-Nevarez, 26, of Mexico, and Gilbert Treviso-Garcia, 24, of Mexico.
All eight are charged with conspiracy to manufacture and possess with intent to distribute methamphetamine. Terlizzi is additionally charged with possessing a firearm in relation to drug trafficking and being a felon in possession of a firearm. Ramos-Nevarez and Treviso-Garcia are charged with interstate travel in aid of racketeering.
“Member of this group traveled from Ohio to Mexico to set up a drug supply chain and then actively plotted a murder when they believed someone robbed from them,” U.S. Attorney Justin Herdman said. “This case demonstrates that the threat posed by Mexican criminal organizations to our region is very real,”
“This indictment are yet another example of the prevalence of drugs and the demand for drugs in the Cleveland area and surrounding communities,” said DEA Special Agent in Charge Timothy Plancon. “The DEA continues our efforts to target drug traffickers.”
Johnson, while incarcerated, organized and orchestrated a plan to distribute methamphetamine in Ohio. Co-conspirators Dailey and Rogers traveled from Ohio to Mexico for the purpose of creating a drug trafficking chain of supply, organized by Johnson and Cota-Medina, according to the indictment.
Johnson, Rogers, Terlizzi and others arranged, through Sohrabi, to use a warehouse located on Old Eight Road in Boston Heights to the purpose of making crystal methamphetamine and preparing it for sale, according to the indictment.
The conspirators intended to sell enough methamphetamine to eventually begin to buy and ship large amounts of cocaine into Ohio, according to the indictment.
Dailey and Rogers traveled from Cleveland to Tucson in January 2018, then crossed into Mexico. They met with Cota-Medina on Jan. 12, and Johnson and Cota-Medina talked by phone about drug shipments to Ohio, according to the indictment.
Rogers began sending money to Cota-Medina. Ramos-Nevarez and Treviso-Garcia entered the United States on visitors’ visas in March 2018. Rogers met them in Ohio on March 21 while in regular contact with Cota-Medina and Johnson, according to the indictment.
Terlizzi talked to Rogers on March 22 about ordering a quantity of drugs. They agreed to meet and Rogers went to Terlizzi’s house on West 23rd Street in Cleveland.
On March 23, Rogers picked up Ramos-Nevarez and Treviso-Garcia from the Boston Heights warehouse and drove them to where they were staying in Aurora. The next day, law enforcement did a delayed-notice search at the warehouse and a large amount of methamphetamine as well as tools and paraphernalia used to cook the drug, according to the indictment.
Approximately eight hours later, Sohrabi called Rogers and informed him that it appeared someone broke into the warehouse. Rogers stated: “Somebody gotta die. I don’t give a (expletive) who gotta die. Somebody gotta die,” according to the indictment.
In subsequent calls, Cota-Medina, Rogers and Johnson discussed how they believed Sohrabi stole the drugs. Johnson told Rogers: “The call is made, he’s (Sohrabi) through,” according to the indictment.
Law enforcement eventually seized a total of more than 140 pounds of methamphetamine from the warehouse. It is believed to be the largest seizure of methamphetamine in Ohio history.
Terlizzi was arrested on March 26 and found to have cocaine, heroin and two firearms that he used in relation to drug trafficking. Terlizzi was prohibited from having the Ruger .380mm pistol and Smith & Wesson revolver because of a prior conviction for drug trafficking, according to the indictment.
This case was is an Organized Crime Drug Enforcement Task Force investigation led by the Cleveland DEA Task Force, which includes representatives from the Lake County Narcotics Agency, Cuyahoga County Sheriff’s Office, Euclid Police Department, Aurora Police Department, Summit County Sheriff’s Office, Boston Heights Police Department, Cleveland Heights Police Department, Cleveland Division of Police, Ashtabula County Sheriff’s Office, Ohio State Highway Patrol, Ohio BCI and U.S. Border Patrol.
It is being prosecuted by Assistant U.S. Attorney Marisa T. Darden.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Dutch National Sentenced to 17 Years for Multiple Fraudulent Investment SchemesRead the Press Release
For more than ten years, Pieter Roor, also known as Pedro Dispenza, 66, of The Netherlands, duped thousands of unsuspecting American investors into sending him money with the promise of large returns. Instead of investing the money, Roor took it for himself. The U.S. Attorney’s Office for the Southern District of Illinois today announces that Roor’s run has come to an end.
On August 16, Senior United States District Judge J. Phil Gilbert sentenced Roor to 17 years in federal prison, U.S. Attorney Steven D. Weinhoeft announced. The sentence comes on the heels of Roor’s conviction earlier this year on two counts of wire fraud and one count of conspiracy to commit wire fraud after a three-day bench trial in Benton, Illinois. In rendering the verdict, Judge Gilbert observed that the evidence the government presented against Roor was "absolutely crushing."
The evidence established that, from 1998 to 2010, Roor and his then-wife, Heleen Potman, operated a series of internet-based Ponzi schemes, which were offered to on-line consumers as high-yield investment opportunities. The schemes had various names, including Oxford Savings Club, AceInvest, MiAmigo Services, Dollar Dazzler, X-Wire, Private Clearing Brokers, the Happy Society, and We Let Your Money Grow. Some promised returns of as much as 4.2% per day, with occasional partial payouts to help string investors along. Through each iteration, as investors learned their investments were not being returned, the phony program would close and re-open under another name.
In total, the fake investment schemes landed Roor and Potman more than $2.5 million.
To conceal the illegal nature of their activity, Roor and Potman regularly incorporated businesses within the United States, as well as other countries throughout the world, including Great Britain, the Netherlands, Panama, and Belize. A multi-national investigation showed that the husband and wife duo routed investor’s money globally through multiple PayPal accounts, on-line currency accounts such as eGold and eBullion, and bank accounts in Latvia, Germany, The Netherlands, Great Britain, the United States, Belize, and Egypt. In furtherance of the scheme, Roor adopted a pseudonym, Pedro Dispenza, and obtained a Belizian passport and driver’s license in that name. One of the victims – identified in court documents as "H.D." – was a resident of Carbondale, Illinois, who invested approximately $150,000 in the scams.
Roor and Potman were both indicted in the Southern District of Illinois in 2010. While that case was pending, the pair were tried, convicted and sentenced for a host of crimes in the Netherlands. After serving their Dutch sentences, they were extradited separately to the United States to face prosecution on the American charges. In 2015, Potman pled guilty in the Southern District of Illinois to her role in the conspiracy and was sentenced to five years in prison. After serving approximately one year in federal custody awaiting the resolution of her case, Potman was transported back to the Netherlands to serve the remainder of her sentence.
In addition to his 204-month prison sentence, Roor was also ordered to pay in excess of $900,000 in restitution to his known victims and to forfeit his Dutch home and $3.2 million in fraudulent proceeds.
The investigation was conducted by the United States Postal Inspection Service, with extensive cooperation from the Dutch Fiscal Information and Investigation Service (FIOD).
Dominican National Pleads Guilty to Passport FraudRead the Press Release
BOSTON - A Dominican national illegally residing in the United States using false identities pleaded guilty today in federal court in Boston to passport fraud.
Alejandro Valera, 40, a Dominican national residing in Mattapan, pleaded guilty to knowingly making false statements in applying for a U.S. passport. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Nov. 13, 2018.
On Nov. 10, 2011, Valera, who, according to court records, has a lengthy criminal record, used the name, date of birth and Social Security number of a U.S. citizen from Puerto Rico to submit a fraudulent application for a passport. He also falsely stated that he had never used any other names or previously applied for a passport, yet, in 2002, Valera unsuccessfully applied for a passport using the same false identity.
Valera faces a sentence of no greater than 10 years in prison, up to three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Theodore Merritt of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Sentenced to 10 Years in Prison for Repeatedly Sexually Assaulting Female CousinRead the Press Release
WASHINGTON – A 24-year-old man from Washington, D.C. was sentenced today to 10 years in prison for engaging in sexual acts in his home with a cousin who was 9 and 10 years old at the time, announced U.S. Attorney Jessie K. Liu.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in April 2018, in the Superior Court of the District of Columbia, to two counts of second-degree child sexual abuse. He was sentenced by the Honorable Danya A. Dayson. Once released from prison, the defendant will be placed on three years of probation. He will also be required to register as a sex offender for 10 years.
According to the government’s evidence, between Sept. 1, 2016 and Oct, 31, 2017, the defendant engaged in sexual acts with the young girl at his residence in Southeast Washington. He was arrested on Feb. 13, 2018, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu praised detectives from the Metropolitan Police Department’s Youth Division; as well as employees of the girl’s school, who upon learning of the sexual abuse, immediately notified the police. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Juanita Harris. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Deputy Assistant Attorney General David Rybicki of the Justice Department’s Criminal Division Delivers Remarks at the Alaska Wellness Summit 2.0: Confronting Alaska’s Crime WaveRead the Press Release
Good afternoon. And thank you Senator Sullivan for that gracious introduction. It’s a pleasure to be here in the great State of Alaska to participate in the Alaska Wellness Summit 2.0.
I also want to thank Senator Sullivan for his leadership in convening this important event, along with everyone whose hard work went into organizing it.
Senator Sullivan is a long-time public servant and former Attorney General of Alaska, and I know he has a great appreciation for our men and women in law enforcement.
It is also a pleasure to be here with my friend and colleague, U.S. Attorney Bryan Schroder, who is doing a tremendous job leading the U.S. Attorney’s Office for the District of Alaska.
U.S. Attorney Schroder and I have worked together on violent crime issues and I applaud his leadership in Alaska’s law enforcement community.
As this event recognizes, crime—especially violent crime—remains a significant problem throughout our country, including here in Alaska.
We also face an ongoing crisis involving opioids and other dangerous drugs.
We have violent gangs terrorizing communities across our country.
Criminals in the United States and overseas are targeting Americans in financial fraud schemes that destroy people’s hard earned savings, often taking a particular toll on our seniors.
Cyber criminals are stealing our private information, hacking into our online accounts, and stealing intellectual property from our businesses.
And criminals are coming up with new schemes every day to steal taxpayer dollars from our federal health care programs, like Medicare, Medicaid, and the TRICARE program that provides healthcare to our military families.
But we are making progress.
Under the leadership of President Trump and Attorney General Sessions, we are taking an all-hands approach to law enforcement.
Last June, Attorney General Sessions announced the largest surge in federal prosecutors in decades. Across the country, we are hiring more federal prosecutors, including right here in Alaska.
In the Criminal Division at the Justice Department, where I work, we recently marked a particularly important milestone—our Assistant Attorney General Brian Benczkowski, was just confirmed by the U.S. Senate a few weeks ago.
Under his leadership, we will continue the Division’s commitment to the rule of law and protecting our citizens, working more closely than ever with our federal, state, and local law enforcement partners.
Partners like the Coast Guard, which under Admiral Shultz is our primary defense to drug smuggling on the high seas and which works closely with DOJ’s Narcotic and Dangerous Drugs Section.
DOJ is working with State Attorneys General, like Jahna Lindemuth, not only to investigate and prosecute cases, but also to educate the public and prevent crime through programs such as our Elder Justice Initiative. Under that initiative, which was announced by Attorney General Sessions in February, we now have an Elder Justice Coordinator in each of our 93 U.S. Attorney’s Offices, including here in Alaska.
I know this is a particularly important issue for U.S. Attorney Schroder as well, who has made it a priority to prosecute elder fraud cases, working together with FBI, the U.S. Postal Inspection Service, and the State of Alaska’s Office of Elder Fraud and Assistance.
Just this past December, his office secured a 10-year sentence against a Washington State man who defrauded Alaskans out of approximately 2.7 million dollars as part of an advance-fee scheme that preyed upon the sick and elderly.
In connection with the focus on elder justice that I just mentioned, this February Attorney General Sessions announced the coordination of a nationwide elder fraud sweep that involved approximately 200 criminal defendants who were engaged in a variety of fraud schemes, ranging from mass mailing to telemarketing and investment scams, targeting seniors in Alaska and around the nation.
In my current role as Deputy Assistant Attorney General in the Department’s Criminal Division, I am tasked with overseeing the Organized Crime and Gang Section. I’m in a position to see all of the great work that our 700 federal prosecutors in the Criminal Division are doing each day to protect the American people across the country, often with prosecutors in U.S. Attorney’s Offices, and with federal, state and local law enforcement, to bring violent gang members to justice—members of gangs like MS-13.
Fighting violent crime is a top priority of this Attorney General and this Administration—and I know it’s a priority for all of our citizens, and particularly for the people of Alaska. Between 2014 and 2016, the national violent crime rate increased by around seven percent, and the murder rate went up by roughly 20 percent. As of the most recent FBI statistics, in 2016, Alaska had the highest rate of violent crime per capita of any state at approximately 800 offenses per 100,000 persons.
Under U.S. Attorney Schroder, the U.S. Attorney’s Office here has doubled down in its efforts against violent crime. Bottom line is that Bryan’s office went from 154 violent crime cases filed in calendar year 2016, to 186 cases filed in calendar year 2017. That’s a 20.7 percent increase. The number of defendants charged went up even more, from 198 in calendar year 2016, to 243 in calendar year 2017, a 22.7 percent increase.
In October last year, he announced the Office’s Anti-Violent Crime Strategy, which brings together city, state, and federal authorities to combat rising crime in Alaska. He did it as part of the Attorney General’s October 2017 renewal of “Project Safe Neighborhoods,” a nationwide program that partners federal, state, and local law enforcement agencies.
A key part of the anti-violent crime strategy here in Alaska involves greater collaboration with local law enforcement. Here in Anchorage, the FBI has assigned a Special Agent to work full time with the Anchorage Police Department’s homicide unit.
The Anchorage Police Department is also using the Integrated Ballistic Identification System, a national system hosted by the ATF that allows local law enforcement to quickly enter ballistics information and search against evidence from their jurisdiction, neighboring ones, and others across the country.
I’d like to switch gears now and address a few of the other significant threats to public safety and public health that Attorney General Sessions has made a priority for federal prosecutors.
Health Care Fraud.
We’re working to protect the federal health care system that benefits Alaskans and all Americans. The success of the Department’s approach to health care fraud was on full display a few weeks ago when Attorney General Sessions and U.S. Department of Health and Human Services (HHS) Secretary Azar announced the largest ever health care fraud enforcement action in history.
This year’s takedown involved charges against 601 defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. These are cases that impact every American taxpayer. When a criminal in Miami steals money from Medicare, it impacts taxpayers in Anchorage.
As a result of our focus on health care fraud, in Miami and Detroit, we have seen a 20 percent drop in Medicare Part A and B billings. That amounts to over $2 billion in savings for all taxpayers annually.
Just as important as the fraud charges, 162 defendants, including 57 medical professionals, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
The opioid epidemic has hit Alaska hard.
Admissions for treatment of opioid abuse increased almost 60 percent in 2014. Recent data show that over 200,000 Alaskans out of a state population of around 740,000, obtained prescriptions Schedule 2 controlled substances, including opioids—that’s 27 percent of the population. According to the National Institute on Drug Abuse, approximately 80 percent of heroin users reported starting their addiction with these kinds of prescription opioid painkillers.
While the majority of those opioids were initially prescribed in good faith by doctors trying to do right by their patients, the data indicate that there is unfortunately no shortage of medical professionals only too willing to prescribe opioids for any reason, or for no reason all—and that’s a crime.
By investigating and prosecuting corrupt doctors and pharmacists who are illegally prescribing and distributing prescription opioids, we can stem the flow of these dangerous narcotics onto our streets. As we reduce the flow of prescription opioids, we seek to prevent the next generation of addicts.
We are also attacking other cases involving opioids, including by charging suppliers in China who are manufacturing deadly fentanyl that is being sold over the internet to people in the United States.
And we continue our work in dismantling drug trafficking organizations and cartels that continue to flood our streets with deadly poisons here and in the lower 48.
On the cyber and child exploitation front, in April of this year, the Department announced charges against seven individuals and the seizure of Backpage.com, the internet’s leading forum for prostitution ads, including ads advertising the prostitution of children. Backpage was allegedly used as a platform that allowed human traffickers to thrive.
Also this year, prosecutors in our Organized Crime and Gang section charged 36 cybercriminals from the United States and 17 countries on five continents who participated in a transnational cyber enterprise called “Infraud.”
Members of the Infraud Organization used the forum to coordinate and conduct online criminal activities that included identity theft, bank fraud, wire fraud and computer crimes, resulting in more than $530 million in losses to financial institutions, merchants, and private individuals in all 50 states.
Our prosecutors work day and night, across the country, side by side with our law enforcement partners, as we tackle these problems that are so important to the Department, the people of Alaska, and the nation.
While many of our investigations are taken out of the public eye, know that we are here, we are dedicated, and we will not waiver in our mission of protecting the American public. Our goal is simple—we will use every lawful tool available to ensure that our citizens, our businesses, and our country can thrive, without fear of crime.
As federal prosecutors, we are not here to fill up the prisons or manage crime — that’s not our goal. Our goal is to reduce crime — to bend that trend curve downward in Alaska and across the nation.
Thank you for your time today. I look forward to the remainder of the program.
Defendants Who Cashed More than $2.6 Million in IRS Tax Refunds Sentenced for Participating in Stolen Identity Refund Fraud SchemeRead the Press Release
Philadelphia – United States Attorney William M. McSwain announced today that Jose Castillo, 40 formerly of Allentown, and Ivan German Sierra, 32, also formerly of Allentown, were sentenced today by Judge Edward G. Smith to 57 month and 54 month, respectively. On January 23, 2018, Castillo pleaded guilty to conspiracy to submit false claims to the United States and to misuse of a social security number. German Sierra pleaded guilty on January 31, 2018, to conspiracy to submit false claims to the United States. Judge Smith also ordered both defendants to pay restitution to the United States in the amount of $2,644,604.33.
Castillo and German Sierra conspired with others, including Juan Carlos Ortiz and Jessenia Cordero, to obtain lists of Puerto Rico residents’ names and social security numbers and to use the victims’ stolen identifying information to file fraudulent tax returns with the Internal Revenue Service (IRS). The IRS sent refund checks payable to the victims, and the co-conspirators cashed checks totaling more than $2.6 million. Ortiz was sentenced to 3 years’ imprisonment, in addition to repaying 2.5 million in restitution. Cordero was sentenced to 3.5 years’ imprisonment and ordered to repay more than $4 million in restitution.
“Crooks never stop looking for ways to take what isn’t theirs, regardless of the consequences to their victims,” said U.S. Attorney McSwain. “Identity theft is a serious matter, and those who seek to cheat the government by filing phony tax returns and collecting refund checks using stolen identities will be prosecuted to the fullest extent of the law.”
"Stealing money from the government through identity theft and fraud schemes negatively impacts everyone, as much needed funding is diverted to individuals for their own selfish gain instead of the intended government programs" said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. "HSI will continue to work with our law enforcement partners to detect and hold accountable those individuals who exploit and compromise the integrity of the taxpayer system."
“Jose Castillo and Ivan German-Sierra thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Guy Ficco, IRS Criminal Investigation Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. IRS Criminal Investigation is serious about investigating these crimes and holding accountable those who defraud the government.”
The case was investigated by the Division, Immigration and Customs Enforcement-Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney David J. Ignall.
David Michael Sare Sentenced to over 10 Years in Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant DAVID MICHAEL SARE, was sentenced on August 16 in the District Court of Guam to ten years and one month imprisonment. SARE, age 42, from Corona, California, was convicted of Conspiracy to Distribute Fifty (50) grams or more of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 846. SARE had an extensive criminal history including previous convictions for possessing drugs while armed, burglary and receiving stolen property. The Court acknowledged SARE’s statements that his drug addiction had contributed to his long criminal history. The Court also ordered SARE to pay a mandatory $100 assessment fee and serve five years of supervised release after his term of imprisonment. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From March 1, 2016 until August 15, 2016, in Guam and in California, SARE conspired with co- defendant Katlyn Scully to distribute methamphetamine. SARE assisted Scully in procuring the methamphetamine, and prepared the drug so that Scully could carry it into Guam inside of her body. SARE also assisted Scully in arranging a trip to Guam to deliver the drugs to co-defendant Timothy Duenas who was to distribute the methamphetamine on island.
On August 15, 2016, SARE and Scully arrived on Guam via United Airlines Flight #201 from California, by way of Hawaii. Guam Customs and Quarantine Agency Officers were suspicious of their behavior and sent them through secondary customs inspection where two condoms containing methamphetamine were found in their luggage. Scully also had additional condoms containing methamphetamine seized from her purse, and had additional methamphetamine inside of her body cavities. The total amount of drugs seized was 407.3 grams of ice, 98% pure, with a street value of over $200,000.
The case was investigated by the Drug Enforcement Administration, Guam Customs and Quarantine Agency and the Department of Homeland Security, Homeland Security Investigations. Belinda Alcantara, an Assistant United States Attorney for the District of Guam, represented the government during sentencing proceedings.
DOJ and DEA Propose Significant Opioid Manufacturing ReductionRead the Press Release
ALEXANDRIA, Va. – The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year.
Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
“The opioid epidemic that we are facing today is the worst drug crisis in American history,” Attorney General Jeff Sessions said. “President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
On July 11, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
In setting the aggregate production quota (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
“Investigating and prosecuting opioid related crimes is a top priority of this office as we continue to battle this deadly epidemic,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Cutting opioid prescription rates and production quotas will reduce the amount of diverted drugs on the streets and help law enforcement in our pursuit of keeping our communities safe from this poison. Diversion and illicit use of these addictive substances has resulted in the death of far too many Virginians and destroyed the lives of the loved ones they have left behind.”
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl. See PDF attached to this message.
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Convicted Alien Smuggler Sentenced to 44 Months for Actions Resulting in Injury to Border Patrol AgentRead the Press Release
Assistant U. S. Attorney Timothy D. Coughlin (619) 546-6768
NEWS RELEASE SUMMARY – August 17, 2018
SAN DIEGO – Jaime Aburto, a United States citizen with a prior alien smuggling conviction, was sentenced in federal court today to forty-four months in prison for his role in a smuggling incident that left a Border Patrol Agent injured.
The sentence was handed down by U.S. District Judge Gonzalo P. Curiel following the defendant’s guilty plea in May to one count of Transportation of Certain Aliens for Financial Gain, in violation of Title 8, United States Code, Section 1324. During today’s sentencing, the Court heard testimony from United States Border Patrol Agent Francisco Hurtado, who was seriously injured in apprehending Aburto.
“Smugglers see customers as dollar signs and have no concern for the safety and well-being of those they smuggle,” said U.S. Attorney Adam Braverman. “This office is committed to prosecuting smugglers, particularly when it results in an injury to a border patrol agent performing his duties.”
According to Agent Hurtado, he was performing his assigned duties in the Chula Vista Border Patrol Station’s area of responsibility when he was notified by a fellow agent that she had observed two suspected aliens attempting to conceal themselves in a construction area near the border. Agent Hurtado responded to the area and positioned himself to make contact with any vehicle that may attempt to pick up the two suspected aliens. In fact, a white van stopped and the two suspected aliens jumped into the van. Agent Hurtado began to follow the van and activated his emergency lights and siren as he observed the vehicle traveling westbound on State Route 11. Agent Hurtado gave the driver of the van, later determined to be Defendant Aburto, an opportunity to pull over and stop at a safe location. Aburto did not stop and accelerated to a speed of over 100 miles per hour and merged onto State Route 125.
Over the next several miles of his pursuit, Agent Hurtado saw defendant Aburto make a dangerous U-turn in the center median of SR 125, speed through a red traffic light across oncoming traffic near Otay Mesa Road, swerve around moving traffic, drive over the dividing median on Siempre Viva Road, drive through two heavily populated retail commercial lots and finally drive onto the sidewalk along the southbound lane of Roll Avenue, where he struck a pole and came to a stop.
The defendant jumped from the van and began to run southbound on Roll Avenue towards the Otay Mesa, California Port of Entry. Agent Hurtado engaged in a foot pursuit of Aburto and was able to overtake him. There was a brief struggle as both Agent Hurtado and Aburto ended up wrestling on the ground. Agent Hurtado placed Aburto under arrest with the assistance of fellow border patrol agents.
As a result of Aburto’s actions of resisting arrest, Agent Hurtado sustained a serious leg injury which required him to be out of work for several weeks. He is still working to recover full mobility. Agent Hurtado spoke at Aburto’s sentencing detailing his prior military service and his 15-year career with the Border Patrol. Judge Curiel departed upward given the injury sustained by Agent Hurtado and sentenced Aburto to 44 months in custody.
DEFENDANTS Case Number: 18cr1975-GPC
Jaime Aburto Age: 38 San Diego, California
SUMMARY OF CHARGES
One Count – Transportation of Certain Aliens for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(1)(A)(ii) and (a)(1)(B)(i)
AGENCIES
Homeland Security Investigations
U.S. Border Patrol
Clinton County Man Sentenced for Unlawful Asbestos RemovalRead the Press Release
On August 16, 2018, Joseph Michael Kehrer, 63, was sentenced to five months of imprisonment for failing to notify regulatory authorities before removing asbestos material, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Kehrer had previously pled guilty to the charge, which is a felony violation of the federal Clean Air Act. Upon release from imprisonment, Kehrer will be placed on supervised release for a term of one year, with the first five months on home confinement subject to electronic monitoring. The district court also ordered Kehrer to pay a criminal fine of $50,000.
Kehrer admitted that in February and March of 2015, he was the owner of a building formerly as the Okawville Elementary School in Okawville, Illinois (Washington County). During that time and during a renovation activity, Kehrer caused the removal of a combined amount of material containing asbestos greater than 160 square feet. Under such circumstances, Kehrer was required by law to notify regulatory authorities – in this instance, the Illinois Environmental Protection Agency (IEPA) – at least ten working days prior to removing the asbestos material. Kehrer admitted he knowingly failed to provide the prior notification to IEPA.
At sentencing, the district court considered as aggravating factors Kehrer’s role in the offense as a manager or supervisor of the activity, as well as efforts he made to obstruct and impede the administration of justice during the investigation. Specifically, when the Occupational Safety and Health Administration went to inspect the former school, Kehrer told inspectors that the only asbestos present was contained on the pipe insulation. In fact, Kehrer had received an asbestos inspection report in 2014 documenting additional asbestos within the school. Kehrer also denied knowing about the grinding and sanding of the former school floors when, in fact, he was the one who directed the workers to sand and grind.
"This case demonstrates that those who place communities at risk by failing to abide by the law will be held accountable for their actions," said Special Agent in Charge Jeffrey Martinez of EPA’s criminal enforcement program in Illinois.
The investigation is being conducted by the U.S. Environmental Protection Agency’s Criminal Investigation Division and the U.S. Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney William E. Coonan, with the assistance of David P. Mucha, Regional Criminal Enforcement Counsel, U.S. Environmental Protection Agency.
California Man Sentenced to 22 Years in Federal Prison for Unlawfully Possessing Firearms in Twin FallsRead the Press Release
BOISE – On Wednesday, Eric Courtney Hunter, 39, of Victorville, California, was sentenced to 262 months in federal prison for unlawful possession of firearms by a felon, U.S. Attorney Bart M. Davis announced. Hunter was indicted by a grand jury on February 15, 2017. The case went to trial on January 31, 2018, and ended with the jury finding Hunter guilty of all counts on February 5, 2018.
According to evidence presented at trial, on December 6, 2016, Twin Falls police officers responded to a 911 call reporting shots fired at a Twin Falls residence. Officers found evidence that a gun had been fired, including a hole in the window and shotgun shells on the ground. Witnesses at trial confirmed it was Hunter who fired the shotgun. A month later on January 6, 2017, a woman reported to Twin Falls police that Hunter stole her BMW and $27,000. When police found the BMW, Hunter was driving the vehicle and had $27,100 in his pocket. During a search of the car, police found the shotgun in the backseat and ammunition in Hunter’s suitcase. Hunter was prohibited from possessing firearms because he was convicted of felony crimes, including witness intimidation in Twin Falls County, Idaho on May 29, 2015.
Additional information presented at the sentencing hearing established that Hunter had eight prior felony convictions, three of which were violent felonies resulting in Hunter’s classification as an armed career criminal. Because of his status as an armed career criminal, Hunter was required to serve a minimum sentence of fifteen years. After considering everything, Chief U.S. District Judge B. Lynn Winmill sentenced Hunter to 262 months in federal prison followed by five years of supervised release.
This case was investigated by the Twin Falls Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Twin Falls County Sheriff’s Office, and in coordination with the Twin Falls County Prosecuting Attorney’s Office.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Bitcoin Dealer Indicted on Money Laundering Charges; Held without BondRead the Press Release
Assistant U. S. Attorney Robert Ciaffa (619) 546-7748
SAN DIEGO – Jacob Burrell Campos, a 21-year-old Bitcoin dealer, was ordered held without bail today in connection with a 31-count indictment charging him with operating an illegal money transmitting business, failing to maintain an anti-money laundering program, international money laundering and conspiracy to structure monetary transactions. Burrell was arrested on August 13 as he tried to enter the United States from Mexico at the Otay Mesa Port of Entry.
According to statements made in court by Assistant U.S. Attorney Robert Ciaffa during today’s bond hearing, Burrell was a prolific Bitcoin dealer who sold approximately $750,000 worth of Bitcoin to hundreds of buyers throughout the United States. He conducted 971 separate transactions with over 900 individual customers, and accepted cash in person, through his bank accounts, and through MoneyGram. AUSA Ciaffa told the court today that Burrell operated as a Bitcoin “exchanger,” and his activities constituted a “money transmitting business.” As such, he was required to register with the Department of Treasury, and comply with all anti-money laundering requirements, including reporting suspicious cash transactions. In this case, Burrell accepted cash “with no questions asked,” and in return for a 5% fee, supplied hundreds of individuals with an easy outlet to avoid the anti-money laundering laws applicable to all financial institutions, including licensed and registered Bitcoin exchanges. According to AUSA Ciaffa, Burrell’s activities “blew a giant hole” through the legal framework of U.S. anti-money laundering laws by soliciting and introducing into the U.S. banking system close to $1 million in unregulated cash.
Burrell is also charged with 28 counts of international money laundering. According to the indictment, Burrell sent 28 wire transfers totaling over $900,000 from his bank accounts in the United States to a bank account in Taiwan in the name of Bitfinex. Bitfinex is a crypto-currency exchange located in Hong Kong. According to AUSA Ciaffa, Burrell sent the money from the United States to buy Bitcoin and fund his business. With these and other funds, Burrell bought over $3 million worth of Bitcoin in over 2,600 transactions. Burrell resorted to buying Bitcoin through Bitfinex after his account was closed by Coinbase, a U.S.-based Bitcoin exchange, for circumventing its ID verification process.
The indictment also charges Burrell with conspiracy to structure the importation of monetary instruments. According to statements made by AUSA Ciaffa in court today, Burrell agreed with others to smuggle over $1 million in U.S. dollars into the United States from Mexico, in amounts slightly less than $10,000, in order to avoid the currency reporting requirements.
U.S. Magistrate Judge Karen S. Crawford found that Burrell had significant ties to Mexico, citizenship in three countries, no steady employment in the United States, the ability to access large sums of cash, and a disdain and unwillingness to comply with U.S. laws. She concluded that Burrell posed a substantial risk of flight, and ordered him held without bail.
Burrell was born in San Diego, and lives in Rosarito, Baja California.
DEFENDANT Case Number 18CR3554-H
Jacob Burrell-Campos Age: 21 Rosarito, Baja California, Mexico
SUMMARY OF CHARGES
Count 1: Conducting an unlicensed money transmitting business, in violation of 18 USC 1960.
Statutory maximum: Five years in prison, $250,000 fine.
Count 2: Failing to maintain an anti-money laundering program, in violation of 18 USC 5318(h), 5322(b)
Statutory maximum: Ten years in prison, $500,000 fine.
Counts 3-30: International money laundering, in violation of 18 USC 1956(a)(2).
Statutory maximum: Twenty years in prison for each count, $500,000 fine.
Count 31: Conspiracy to structure international instrument transactions, in violation of 18 USC 371 and 31 USC 5324(c)(3)
Statutory maximum: Five years in prison, $250,000 fine.
AGENCIES
Homeland Security Investigations
Internal Revenue Service
Postal Inspection Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Alleged Human Rights Abuser Arrested for Naturalization FraudRead the Press Release
ALEXANDRIA, Va. – An alleged human rights abuser who participated in persecution during the Red Terror period in Ethiopia was arrested today for allegedly having fraudulently obtained United States citizenship.
“Negussie sought to outrun his past by allegedly employing deception to fraudulently obtain United States citizenship,” said U.S. Attorney G. Zachary Terwilliger. “This indictment reflects the government’s dedication to investigating and prosecuting criminal immigration cases, including those involving alleged human rights violators.”
According to allegations in the indictment, Mergia Negussie Habteyes, 58, a naturalized United States citizen residing in Alexandria, told a series of lies to United States immigration authorities in the course of obtaining authority to enter the United States as a refugee, subsequently obtaining lawful permanent-resident status, and ultimately obtaining U.S. citizenship. Specifically, the indictment asserts that, when he applied for naturalization in the United States, Negussie falsely stated that he never persecuted persons because of their political opinion, and he failed to disclose that he had committed a crime or offense for which he was not arrested. In fact, according to the indictment, Negussie served as a civilian interrogator in the Higher 3 prison in Ethiopia in the late 1970s, during a period known as the Red Terror. In that role, Negussie is alleged to have participated in the persecution, through brutality, of individuals imprisoned because of their political opinion. Additionally, Negussie falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits.
“Negussie allegedly concealed his role in persecuting Ethiopian prisoners for their political opinions during that country’s so-called Red Terror period when he applied for, and ultimately obtained, U.S. citizenship,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “As this case demonstrates, the Justice Department will not allow the United States to become a safe haven for human rights violators, and we will continue to aggressively prosecute those who seek to exploit our immigration system through fraud and deceit.”
“The persecution of individuals for their political opinion and expression violates one of our most basic and foundational tenets as a nation,” said Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. “We will not allow human rights violators to use lies, fraud and deceit to exploit our laws.”
Negussie is charged with unlawful procurement of naturalization. If convicted, he faces a maximum penalty of 10 years in prison. Conviction would also result in automatic revocation of Negussie’s United States citizenship as well as likely removal to Ethiopia. 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.
The case is being investigated by HSI with the support of the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders. The HRVWCC is comprised of ICE HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Section, FBI’s International Human Rights Unit and DOJ’s Human Rights and Special Prosecutions Section (HRSP).
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement. Assistant U.S. Attorney Alexander Blanchard and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863, or through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-350.
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.
Alaska Resident Sentenced to Life in Prison in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
MIAMI, FL - Esteban Santiago-Ruiz (Santiago) was sentenced today to life in prison by United States District Judge Beth Bloom, after previously pleading guilty to charges of committing acts of violence at an international airport resulting in five deaths and serious injuries, in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
“While nothing can ever heal the wounds inflicted by the defendant’s unspeakable and horrific acts of violence, we hope that the life sentence imposed today provides at least some sense of justice for the victims and their loved ones,” said U.S. Attorney Benjamin G. Greenberg. “Though we all hope that such tragedy never again occurs, law enforcement remains committed to making our community safer and caring for victims of crime when tragedy strikes.”
“My thoughts are with the victims, their loved ones and everyone affected by this senseless and cowardly act of violence,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “While this sentence cannot erase what happened, may it serve to demonstrate society’s commitment to honor and remember those who suffered that day.”
“Since this horrible tragedy first occurred, my prayers have remained with the families,” Sheriff Scott Israel said. “Though this sentencing won’t change the outcome, I hope everyone affected by this killer’s heinous actions can find a way to move forward and heal.”
On May 23, 2018, Santiago pled guilty to five counts of committing acts of violence at an international airport causing death (Counts 1-5) and six counts of committing acts of violence at an international airport causing serious bodily injury (Counts 6-11), all in violation of Title 18, United States Code, Section 37(a)(1). Judge Bloom sentenced Santiago to five consecutive terms of life imprisonment on Counts 1-5, and consecutive terms of 20 years imprisonment on Counts 6-11.
According to court documents, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and seriously wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies. The FBI investigated the case along with the U.S. Attorney’s Office.
Mr. Greenberg commended the investigative assistance of FBI and BSO in this matter. This case was prosecuted by Assistant United States Attorneys Ricardo A. Del Toro and Lawrence D. LaVecchio.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
16 August 2018
Youngstown man indicted for using firearm and a drug house to sell marijuana, crack cocaine and other drugsRead the Press Release
A Youngstown man was indicted for using a firearm and drug house to distribute marijuana, crack cocaine and other drugs.
Rafael Samaniego, 26, was indicted on one count each of maintaining a drug involved premises, possession with the intent to distribute marijuana, possession of firearm in furtherance of drug trafficking crime and being felon in possession of firearm/ammunition.
Samaniego distributed marijuana beginning in April 2018. He also maintained a place on West Marion Avenue in Youngstown for distributing marijuana, crack cocaine and other drugs, according to the indictment.
Samanigo on April 11 possessed a Taurus .40-caliber pistol in relation to his drug trafficking. He was also prohibited from having a firearm because of a prior federal conviction for conspiracy to possess with intent to distribute heroin, according to the indictment.
The case is being prosecuted by Assistant U.S. States Attorney David M. Toepfer following an investigation by the Youngstown Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Woman Pleads Guilty to Meth Conspiracy and Prostitution ChargesRead the Press Release
NORFOLK, Va. – A Chesapeake woman pleaded guilty today to her involvement in a methamphetamine distribution conspiracy, promoting the prostitution of several adult women and two minor girls, and to a charge of tampering with a witness against her.
According to court documents, Randi Brooke Creef, 22, worked with several co-conspirators in Virginia and California to receive and distribute parcels of methamphetamine throughout Hampton Roads. She also helped the conspiracy in its efforts to prostitute several women – including at least two minor females – in hotels in Chesapeake and Virginia Beach. Creef rented hotel rooms, provided narcotics, collected proceeds of the commercial sex acts, and helped as otherwise needed. Creef sent the proceeds of her methamphetamine dealing and the commercial sex acts of the women to a co-conspirator in California. After her indictment, Creef began a campaign using her social media accounts to threaten and harass an individual she believed to be a witness against her, in an effort to dissuade that individual from further cooperating with law enforcement.
Creef pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine, use of facilities in interstate commerce to promote prostitution, and witness tampering. She faces a mandatory minimum term of five years in prison, and a maximum penalty of 40 years in prison when she sentenced on December 11. 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, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, James A. Cervera, Chief of Virginia Beach Police, and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney V. Kathleen Dougherty and Darryl J. Mitchell are 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. 2:18-cr-65.
Willmar Man Pleads Guilty to Federal Charges Related to Illegal Cache of Machine Guns, Pipe Bombs, SilencersRead the Press Release
United States Attorney Erica H. MacDonald announced the guilty plea of CHAD LEE MONSON, 46, for illegally possessing machine guns, pipe bombs, and silencers. MONSON, who was indicted on June 5, 2018, entered his guilty plea today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. A sentencing hearing is yet to be scheduled.
U.S. Attorney MacDonald thanked the ATF and CEE-VI Gang and Drug Task Force investigators for their skilled work in the case and for making the Willmar community a safer place.
According to the defendant’s guilty plea and documents filed in court, on January 30, 2018, law enforcement officers executed a search warrant at MONSON’S residence in Willmar, Minnesota. Inside the residence, officers found personal use amounts of illegal narcotic drugs, as well as sixteen firearms, and a large quantity of ammunition. On February 21, 2018, law enforcement officers executed two additional search warrants at a commercial utility building near MONSON’S residence. There, officers found ten machine guns, two of them with obliterated serial numbers, three pipe bombs, and three unregistered silencers. MONSON admitted to owning the weapons and acknowledged that he knew that the machine guns had been illegally converted to be capable of firing in “fully automatic” mode. As part of his guilty plea, MONSON must forfeit to the United States 12 firearms, three pipe bombs, and three silencers.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the CEE-VI Gang and Drug Task Force, with assistance from the Kandiyohi County Attorney’s Office.
Assistant United States Attorney John Docherty is prosecuting the case.
Defendant Information:
CHAD LEE MONSON, 46
Willmar, Minn.
Convicted:
- Possession of a machine gun, 1 count
- Possession of an unregistered destructive device (pipe bomb), 1 count
- Possession of an unregistered silencer, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Justin Herdman praises the Justice Department and DEA's proposal to reduce opioid quotasRead the Press Release
United States Attorney Justin E. Herdman issued the following statement on the Justice Department and DEA's proposal to reduce the manufacturing quotas for opioids:
"The efforts announced by the Justice Department will restrict the supply of opioids on the front end of the overdose crisis. We have seen the death and destruction that can result from addiction. Our communities in Northern Ohio will be better off now and in the future thanks to this critical step."
U.S. Attorney Duncan Supports Justice Department, DEA Proposal to Reduce Controlled Substances Manufactured in the United StatesRead the Press Release
LEXINGTON, Ky. –The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019, by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
“In the Eastern District of Kentucky, we have all seen and been touched by the tragic consequences of opioid abuse and addiction,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Illicit diversion of prescription opioids has been a significant catalyst for the epidemic and it is a critically important area to focus efforts to stem the tide. The proposed quota adjustment is another tool in this fight. We support the proposed adjustment, as it will reduce the amount of highly addictive opioids potentially available for illicit diversion.”
The press release announcing the proposal can be viewed at:
https://www.justice.gov/opa/pr/justice-department-dea-propose-significant-opioid-manufacturing-reduction-2019
U.S. Attorney Brady Fully Supports Justice Department, DEA’s Proposal to Significantly Reduce Opioid Manufacturing in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl.
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“We enthusiastically support DOJ-DEA proposal to reduce manufacturing quotas for the most-frequently misused opioids,” stated U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “From prosecuting doctors who illegally divert prescription opioids, to disrupting online Darknet marketplaces selling fentanyl, to aggressively prosecuting drug trafficking organizations, our office is mobilizing all available resources to fight the opioid epidemic. DOJ-DEA’s action today is a critical step in ensuring that prescription opioids are not diverted and misused, as we combat the worst drug crisis in our nation’s history.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Two “Rip Crew” Affiliates Head to PrisonRead the Press Release
McALLEN, Texas – Two additional defendants involved with a rip crew responsible for multiple home invasions and carjackings to steal narcotics in Hidalgo County have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Danny Cano, 31, Mission, pleaded guilty to possessing with the intent to distribute more than 500 grams of cocaine, while Marlyn Gonzalez 39, also of Mission, admitted to conspiring to possess with the intent to distribute more than five kilograms of cocaine.
Today, U.S. District Judge Micaela Alvarez ordered Cano to serve 108 months in prison. Gonzalez received a 50-month-term of imprisonment. Cano and Gonzalez were further ordered to serve four and three years, respectfully, following their prison terms. The court considered the offense and stated that the serious conduct was attributable to greed and a lot of people willing to do anything for money. Judge Alvarez also stated that people in a home and residents in a neighborhood, even those involved in criminal activity themselves, should not be the target of home invasions but rather face justice through the judicial system in place. In particular, the court noted Cano’s involvement in brokering a transaction involving 20 kilograms of cocaine in February 2017 and Gonzalez’s role as a lookout during a February 2016 armed home invasion in Hidalgo involving the theft of more than 10 kilograms of cocaine.
Others who have also pleaded guilty in the conspiracy and are pending sentencing including Antonio Javier Gomez aka “Little T,” 28, Arturo Vargas aka “Petu” or Cholo,” 35, Francisco Javier Montemayor aka “Fat Boy” or “el Fat” or “Rambo,” 31, and Roberto Lee Rodriguez aka “el Tio” or “Pica,” 39, all of Mission; Mexican nationals Miguel Marin Cerda aka “Tigre,” 30, Jose Garcia-De La Torre aka “Coco,” 22, Carlos Guadalupe Aquino-Pacheco aka “Tomy,” 20, Alfredo Avalos-Sanchez aka “Chore,” 26, Gustavo Angel DeLeon-Covarrubias aka “Tripa,” 19, Jose Arturo Reyes-Sanchez aka “Gordo,” 19; and Cesar Alejandro Tovar-Guillen aka “Nucho” or “el Sobrino,” 31; and Juan Antonio Flores, 27, of Weslaco.
Cano and Gonzalez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI Safe Streets Task Force and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol, Immigrations and Customs Enforcement’s Homeland Security Investigations, Hidalgo County Sheriff’s Office, Texas Department of Public Safety Regional Crime Lab and police departments in McAllen, Pharr, San Juan, Mission and Palmview. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.
Two Union Officials Charged with Labor Extortion ConspiracyRead the Press Release
WASHINGTON - Two Indiana men are charged with labor-related extortion offenses in a three-count Indictment unsealed today, announced Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana, Special Agent in Charge James Vanderberg of the U.S. Department of Labor Office of Inspector General’s Chicago Regional Office and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office.
Thomas R. Williamson, 67, of Schererville, Indiana and Jeffrey R. Veach, 55, of Portage, Indiana, were arrested earlier today and each charged in a three-count indictment filed in the Northern District of Indiana with one count of Hobbs Act Extortion Conspiracy and two counts of Attempted Hobbs Act Extortion. Williamson and Veach had their initial court appearances and arraignment earlier today before U.S. Magistrate Judge John E. Martin for the Northern District of Indiana and were released on $20,000 unsecured bond.
According to the indictment, Williamson and Veach used threats of violence and actual violence against non-union ironworkers in the course of their extortion plot. The defendants allegedly sought to extort a labor contract from “John Doe #1,” who owned a steelworking company, and a business contract from “John Doe #2,” who owned a construction company.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Department of Labor Office of Inspector General and the FBI with the assistance of the Dyer Indiana Police Department. Trial Attorneys Conor Mulroe and Robert Tully of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Northern District of Indiana.
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Two Union Officials Charged with Labor Extortion ConspiracyRead the Press Release
Two Indiana men are charged with labor-related extortion offenses in a three-count Indictment unsealed today, announced Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana, Special Agent in Charge James Vanderberg of the U.S. Department of Labor Office of Inspector General’s Chicago Regional Office and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office.
Thomas R. Williamson, 67, of Schererville, Indiana and Jeffrey R. Veach, 55, of Portage, Indiana, were arrested earlier today and each charged in a three-count indictment filed in the Northern District of Indiana with one count of Hobbs Act Extortion Conspiracy and two counts of Attempted Hobbs Act Extortion. Williamson and Veach had their initial court appearances and arraignment earlier today before U.S. Magistrate Judge John E. Martin for the Northern District of Indiana and were released on $20,000 unsecured bond.
According to the indictment, Williamson and Veach used threats of violence and actual violence against non-union ironworkers in the course of their extortion plot. The defendants allegedly sought to extort a labor contract from “John Doe #1,” who owned a steelworking company, and a business contract from “John Doe #2,” who owned a construction company.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Department of Labor Office of Inspector General and the FBI with the assistance of the Dyer Indiana Police Department. Trial Attorneys Conor Mulroe and Robert Tully of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Northern District of Indiana.
Two Sentenced for Their Roles in an Opioid Overdose DeathRead the Press Release
United States Attorney Trent Shores announced the sentencing of Jennifer Elizabeth Boyce and Christina Ann Dempsey for their participation in a conspiracy to distribute oxycodone resulting in death. Today, United States District Judge John E. Dowdell sentenced Christina Ann Dempsey to eight years imprisonment for her role in supplying 80mg oxycodone pills (Oxy80s) to Boyce, who then sold the Oxy80s to customers for profit. Yesterday, Judge Dowdell sentenced Boyce to ten years imprisonment for her role in selling the Oxy80s she received from Dempsey to Jennifer Blake McNulty, who subsequently overdosed and died on October 24, 2014.
Both Dempsey and Boyce accepted responsibility, cooperated fully in the federal investigation, and provided sworn testimony against themselves and others before the filing of federal charges. The third conspirator is Michael Allen Miers, whose case is still pending before Judge Dowdell.
U.S. Attorney Shores stated, “Attorney General Jeff Sessions directed United States Attorneys to consider every lawful tool at our disposal to combat the deadly opioid epidemic. We have taken that direction to heart by using all available criminal and civil remedies to stop opioid abuse and distribution in the Northern District of Oklahoma. We are pleased with the sentences in these cases. Illegal opioid distributors must be held accountable in courts of law. It is a matter of saving lives.”
In commenting about the extent of the opioid epidemic nationwide, U.S. Attorney Shores recounted the staggering statistics:
- Since 2009, drug overdose deaths have outpaced traffic accidents as the leading cause of injury death in the United States.
- Nearly 64,000 Americans died of drug overdoses in 2016–more drug related deaths in one year when compared to total number of combat losses during the entire Vietnam War.
- Emergency Department visits for opioid overdoses rose 30% in all parts of the country from July of 2016 through September of 2017.
- Life expectancy in the United States dropped for two years in a row after more than a century of steady progress.
- The number of children admitted to hospitals for opioid overdose has nearly doubled since 2004, according to a study recently published in the journal Pediatrics.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pryor Police Department, and the Mayes County District Attorney’s Office investigated the case. Assistant U.S. Attorney Timothy L. Faerber, the Deputy Chief of the Criminal Division, and Brian Surber, the First Assistant District Attorney for Mayes County and a Special Assistant U.S. Attorney, prosecuted the case.
U.S. Attorney Shores observed, “Collaborative law enforcement is good law enforcement. I want to express my deep appreciation and profound thanks to all the women and men of law enforcement–federal, state, and local–for working together on this investigation. The Mayes County District Attorney’s Office has also been a great partner. The work they did on this case was essential.”
Two Georgia Residents Charged with Targeting Individuals in Business Email Compromise SchemesRead the Press Release
SALT LAKE CITY – Trial dates have been scheduled in U.S. District Court in Salt Lake City for two individuals charged in a five-count indictment in connection with an alleged Business Email Compromise (BEC) scheme. Charges include conspiracy to commit bank fraud by opening bank accounts under false identities in order to receive criminal proceeds generated by impersonating the officers of businesses and directing employees to wire money into the fraudulently opened accounts.
Saheed Yusuf, age 32, of Atlanta, and a co-defendant, Vanisha Wright Matthis, age 46, also of Atlanta, were charged in June by federal prosecutors in Utah as a part of a coordinated national enforcement operation targeting thousands of individuals now facing federal charges for alleged BEC schemes.
U.S. Attorney for Utah John W. Huber, FBI Special Agent in Charge of the FBI Salt Lake Field Office Eric Barnhart, and Utah Department of Public Safety Commission Keith Squires announced the Utah indictment, which was unsealed Friday.
An FBI Cyber Task Force Officer from the Utah Department of Public Safety investigated the case and located the alleged defendants in the case.
U.S. Marshals returned Yusuf to Utah following his arrest in Lithonia, Georgia, on July 6, 2018. He arrived in Utah last week. He appeared Friday before U.S. Magistrate Judge Paul M. Warner. He entered pleas of not guilty to the charges. A four-day jury trial was set for Oct. 16, 2018, before U.S. District Judge Robert J. Shelby. Federal prosecutors requested Yusuf be detained pending trial and Magistrate Warner ordered him to remain in custody.
Matthis had an initial appearance on the indictment in late June and entered pleas of not guilty to the charges in the indictment. She is not in custody. A two-week trial has been set for Sept. 14, 2018, before U.S. District Judge Robert J. Shelby.
Yusuf and Matthis are charged with conspiracy to commit bank fraud, two counts of wire fraud, aggravated identity theft and money laundering.
“These scammers target victims by convincing them to transfer money to bank accounts they control. Often the scheme is facilitated by impersonating a key employee or business partner. Employees of the business think they are responding to a request from a company leader and transfer the funds to what turns out to be a shell bank account,” Huber said. “The U.S. Attorney’s Office in Utah and our local and federal partners will continue to focus on this cyber-enabled financial fraud,” Huber said.“Perpetrators of business email compromise schemes manipulate and exploit trusting individuals who believe they are conducting legitimate business. The result can be devastating not only financially but emotionally. The sophistication and evolving nature of these scams mean businesses should have increased awareness and prevention efforts in place. If you’ve believe you’ve fallen victim to a BEC scam, contact your financial institution and local FBI immediately and file a complaint with www.ic3.gov,” Eric Barnhart, Special Agent in Charge of the FBI Salt Lake City Field Office said.
"The Department of Public Safety and its agents are committed to protecting Utah business owners and will go after cyber criminals wherever they might be," said Commissioner Squires said today. "We value the partnership we have with the FBI to work as one in this fight against cybercrime."
According to the indictment, the defendants and their co-conspirators opened at least two bank accounts under the name of a business called Allied Logistics Group Inc., using false business names to disguise their identities and make it seem like a legitimate business rather than a shell company used to commit fraud.
With the accounts established, the defendants sent dozens of emails to businesses in the United States and the United Kingdom using the names of business executives without their knowledge or authorization. The apparent purpose of these emails, the indictment alleges, was to engage with employees of these businesses and give them wire instructions to wire the company’s funds.
For example, on July 11, 2016, the defendants and their co-conspirators sent a series of email communications to a business in Utah, purporting to be a corporate officer whose initials are “B.B.” and using his name with the email address [email protected]. At about 9:06 a.m., the defendants sent an email using the name of the real person with the initials B.B., who was an officer of the company, with wire instructions for one of the Allied Logistics Group Inc. Bank accounts, and directed an employee of the victim business to send $58,000 from the business’s Utah account to the defendants’ account. At about 4:50 p.m. that same day, the wire of $58,000 was completed as requested by the defendants and was received by the bank account they had created for that purpose. Later that day, the defendants started moving money out of the account through transfers and subsequent withdrawals. After the successful completion of the fraud against the Utah business, the bank accounts created for Allied Logistics Group Inc. were closed.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court. The potential maximum charges for the charges in the indictment are 30 years for conspiracy to commit bank fraud; 20 years for the wire fraud and money laundering counts; and a two-year mandatory minimum for the aggravated identity theft count, which would run consecutive to any other sentence.
The national operation was funded and coordinated by the FBI. Private sector partners, including Symantec, provided significant assistance to the FBI Salt Lake City Cyber Task Force investigating BEC cases.
Two Charged with "Fishing" Mail from Postal Service Collection Boxes, Bank FraudRead the Press Release
PROVIDENCE, RI – Two Providence men have been charged in federal court in Providence with theft by “fishing” mail from enclosed United States Postal Service collection boxes and bank fraud.
“Fishing” is a term which describes of obtaining items, as in these alleged incidents from U.S. Postal Service collection boxes, by utilizing common items such as plastic water bottles, duct tape, glue, and string. A device covered in a sticky substance such as glue is lowered into the closed box, and mail that adhered to the sticky surface of the device is pulled out and retrieved.
It is alleged in court documents that the two men, and others working at their direction, deposited in area banks stolen checks obtained as the result of “fishing” Postal Service collection boxes. The funds from the stolen checks were later withdrawn from ATMs and through the use of debit cards.
Gerald Reinoso-Pichardo, 22, and Emmanuel Jose Torres, 18, have been charged by way of federal criminal complaints with theft or receipt of stolen mail, conspiracy to commit bank fraud, and bank fraud, announced United States Attorney Stephen G. Dambruch, Raymond D. Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Stephen Marks, Special Agent in Charge of the U.S. Secret Service.
The two men were released on unsecured bond at initial appearances in U.S. District Court before U.S. District Court Magistrate Judge Lincoln D. Almond.
According to court documents, in September 2017, U.S. Postal Service Inspectors initiated an investigation into the theft of mail from collection boxes outside of the Elmwood Station Post Office. The investigation began when a local businessman reported that numerous checks drawn on his business bank accounts and deposited into U.S. Postal Service collection boxes outside the Elmwood Station Post Office were never received by the intendent recipients.
The investigation determined that the businessman mailed 77 checks valued at a total of approximately $195,000. Thirty-two of the checks were found to have been fraudulently negotiated and deposited into bank accounts at various banks. The bank accounts were quickly drawn down through the use of debit cards and/or by withdrawing cash from ATMs.
As the investigation expanded, U.S. Postal Inspectors learned that numerous checks and other mail deposited into U.S. Postal Service collection boxes at locations around Providence and Pawtucket did not reach their intended recipients. Postal Service Inspectors determined that many of the missing checks that had been placed in Postal Service collection boxes were found to have been fraudulently endorsed, deposited into bank accounts, and the cash withdrawn from ATMs or through the use of debit cards.
As part of the investigation, U.S. Postal Inspectors installed surveillance cameras outside of the Elmwood Station and Washington Park Post Offices, focused on collection boxes. Surveillance video showed several individuals allegedly “fishing” the mailboxes, often times in the early morning hours. Among those identified by U.S. Postal Service Inspectors were Gerald Reinoso-Pichardo and Emmanuel Jose Torres.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the United States Postal Inspection Service and the United States Secret Service, with the assistance of the East Providence, Providence and Seekonk Police Departments.
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Three people indicted in federal court for drug trafficking in Lorain County, the latest charges in a coordinated, cooperative law enforcement effort targeting opioid distribution thereRead the Press Release
Three people were indicted in federal court for drug trafficking in Lorain County, the latest charges in a coordinated, cooperative law enforcement effort targeting opioid distribution there.
Indicted are Doyal Cannon, 33, of Elyria, Aaron Matthews, 35, of Lorain, and Ramon Collins, 36, of Cleveland.
Cannon was indicted on charges of possession with the intent to distribute heroin, fentanyl and cocaine, as well as firearms charges.
Cannon on June 13 had more than two grams of a mixture of fentanyl and heroin and seven grams of cocaine.
He also had a Glock .40-caliber handgun and ammunition, despite prior convictions that made it illegal for him to have a firearm, including cocaine trafficking, being a felon in possession of a firearm and other crimes. Cannon was on supervised release from a previous federal firearm conviction on June 13, according to court documents.
Matthews was indicted on 11 counts related to the distribution of heroin, fentanyl, 3-Methylfentanyl and/or cocaine, as well as two firearms counts.
Matthews possessed a Kel-Tec 9 mm Luger pistol and ammunition on Dec. 13, 2017, in relation to his drug trafficking activities. It was also illegal for Matthews to have a firearm because of his prior drug and firearms convictions, according to court documents.
Collins was indicted on charges of distribution of fentanyl and distribution of heroin and fentanyl.
Collins on July 17 possessed nearly seven grams of femtanyl. Four days later, he possessed nearly 29 grams of a mixture of been heroin and fentanyl, according to court documents.
“These indictments, along with our activities of the past month, should make it clear that Lorain County is closed for business when it comes to drug trafficking,” U.S. Attorney Justin Herdman said. “Many of these defendants are dangerous because they illegally have firearms while selling opioids and other drugs that have caused so much death and destruction in our community. All of our law enforcement partners are working together to stem the flow of these drugs into our neighborhoods – if you sell opioids in Lorain County, you are facing federal prison time.”
Elyria Police Chief Duane Whitely said: “The Elyria Police Department is grateful for the outstanding working relationship we share with the U.S. Attorney’s Office. Officers from our department investigated several drug complaints and were able to build a case and arrest several drug dealers. The U.S. Attorney’s Office took the cases and received indictments on all of them. I look forward to working together to take many more drug dealers off the streets of Elyria.”
Operation S.O.S. was announced last month by Attorney General Jeff Sessions and U.S. Attorney Justin E. Herdman. Since then, numerous individuals have been charged or indicted in federal court. Among them:
Kenneth Ward has been charged in a multiple count indictment with various drug distribution counts, including the sale of heroin, fentanyl and cocaine.
Christopher Robinson Jr.: has been indicted in a multiple count indictment with various drug distribution counts, including the sale of heroin and fentanyl.
Dennis A. Smith has been indicted on multiple counts of drug distribution, including the sale of heroin and fentanyl.
Ronald Johnson Jr. has been indicted for distributing heroin.
Dwayne Taylor has been charged with distribution of heroin and fentanyl. At the time of Taylor’s arrest he possessed a firearm and ammunition.
Christopher D. Chapman has been indicted on charges of distribution of N-Methyl Norfentanyl and cocaine.
Todd Colema has been charged with distribution of cocaine and fentanyl.
These cases are being prosecuted by the Elyria Police Department, DEA, Lorain County Drug Task Force, Lorain County HIDTA, Lorain Police Department and FBI. They are being prosecuted by Assistant U.S. Attorneys Robert F. Corts and Vasile Katsaros.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three More Florida Residents Sentenced in $6,000,000 Investment FraudRead the Press Release
DENVER – Steven Dykes, age 61, of Fort Lauderdale, Florida, Pasquale Rubbo, age 51, of Coral Springs, Florida, and Angela Monaco, age 45, of Coconut Creek, Florida, were sentenced today by U.S. District Court Judge R. Brooke Jackson for their role in a six-million-dollar investment fraud. The sentences were announced by U.S. Attorney Bob Troyer, Federal Bureau of Investigation Denver Division Special Agent in Charge Calvin Shivers, and the Internal Revenue Service – Criminal Investigation Special Agent in Charge Steven Osborne. U.S. District Court Judge R. Brooke Jackson sentenced Steven Dykes to 108 months imprisonment, Pasquale Rubbo to 106 months imprisonment, and Angela Monaco to 74 months imprisonment. Each of the defendants previously pled guilty to conspiracy to commit fraud and money laundering.
According to court documents, including the stipulated facts contained in the defendants’ plea agreements, from December 2012 to November 2017, along with two other, engaged in a conspiracy to defraud more than thirty mostly elderly investors, including two investors in Colorado, of more than $6,000,000 in an investment fraud scheme. The investment fraud scheme focused on a television production company based in South Florida, VIP Television, LLC, as well as a cleaning product, the “Scrubbieglove,” which was also patented in Florida. Investors sent money to both of these companies as a result of false statements about VIP Television’s merger opportunities and interest in the Scrubbieglove by entities such as QVC, Walgreens, and Bed, Bath & Beyond. All of the defendants except Monaco had previous convictions for similar criminal activity.
Two other members of the conspiracy, Joseph Rubbo and Nicolas Rubbo were previously sentenced in a related case in United States District Court for the District of Colorado to 60 months and 48 months of imprisonment, respectively.“These defendants cheated vulnerable, elderly Coloradans and others out of their hard-earned money. Now they get what they deserve,” said U.S. Attorney Bob Troyer.
“The FBI will continue to work with our law enforcement partners and the United States Attorney’s Office to protect our citizens from those who engage in complex white-collar fraud schemes," said FBI Denver Special Agent in Charge Calvin Shivers. “Today’s sentencing of Steven Dykes, Pasquale Rubbo, and Angela Monaco should send a strong message the FBI will hold those who exploit innocent investors for personal gain accountable for their actions.”
“Investment fraud has brought ruin to many Americans” said IRS Criminal Investigation Special Agent in Charge Steven Osborne. “IRS Criminal Investigation is committed to partnering with other law enforcement agencies to stop financial crimes being committed by people such as Monaco and the Rubbos, and today’s sentence is a reflection of that commitment.”
The case was investigated by the FBI and IRS-CI. The defendants are being prosecuted by Assistant United States Attorneys Hetal J. Doshi and Matthew T. Kirsch.
Texas Man Sentenced to More Than Ten Years in Prison for Possessing over Thirty Kilograms of CocaineRead the Press Release
Gulfport, Miss. – Mario Guadalupe Pecina, 44, of San Antonio, Texas, was sentenced today by U.S. District Judge Sul Ozerden to 123 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute 5 kilograms or more of cocaine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans. Pecina was also ordered to pay a $7,500 fine.
On January 11, 2018, a United States Border Patrol officer stopped Pecina for committing a traffic violation while traveling on Interstate 10 in Harrison County, Mississippi. During the stop, the officer learned that Pecina was previously arrested for smuggling cocaine in 2009. While speaking with the officer, Pecina began displaying signs of nervous behavior. Pecina consented to a search of the vehicle, and upon searching, the officer located 31 kilograms of cocaine concealed within the door and rear hatch panels of the vehicle. Pecina pled guilty on May 9, 2018.
Pecina was also revoked and sentenced to 30 months for violating the terms of the court imposed supervised release from his 2009 conviction for smuggling 9 kilograms of cocaine. The sentences will run consecutive for a total of 153 months in prison.
The case was investigated by Homeland Security Investigations and the United States Border Patrol. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Texas Man Pleads Guilty to Transporting Illegal Aliens from Mexico with Cousin from Pickaway CountyRead the Press Release
COLUMBUS, Ohio – A second defendant has pleaded guilty to unlawfully transporting illegal aliens, primarily Mexican citizens, within the United States.
Robert G. Smith, 58, of Natalia, Texas, pleaded guilty today, and his cousin, Bromley D. Hackney, 57, of Ashville, Ohio, pleaded guilty in January.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Ohio State Highway Patrol Superintendent Col. Paul A. Pride and officials with U.S. Border Patrol announced the plea entered into before U.S. District Judge Michael H. Watson.
According to an affidavit filed in support of the Criminal Complaint charging Smith, in October 2016, HSI agents received information from the Ohio State Highway Patrol regarding the suspected unlawful transportation of aliens. The source alleged that Hackney was using a semi-truck to move undocumented aliens within the United States for profit.
In December 2016, Hackney was stopped at a Border Patrol checkpoint near Laredo, Texas and agents found four undocumented aliens attempting to conceal themselves in hidden compartments in the cabin of the freight box truck. All of the individuals were taken into custody and later released.
Hackney agreed to be interviewed by investigators in Ohio in March 2017 and said he “knew that this day would come” and was going to go to a Border Patrol station soon to inquire about a possible investigation involving him. He admitted that he unlawfully transported aliens, which he and Smith began to do during the year 2011.
Smith, who was interviewed in June 2017, told investigators he would arrange transports, which he did approximately four times per week. He earned at least $2,000 per week coordinating the transactions.
Smith unlawfully transported aliens at least 72 times from 2011 through 2016 and transported four individuals each time. At first, he charged $800 per person and after the first two years increased the cost to $1,000 per person. The total amount of proceeds from the offense was nearly $269,000.
Transportation of an alien within the United States is a federal crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the HSI, Ohio State Highway Patrol and U.S. Border Patrol, as well as Assistant United States Attorney Timothy D. Prichard, who is the District’s Immigration and Border Security Coordinator and who is representing the United States in this case.
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Stow man indicted on methamphetamine chargesRead the Press Release
A Stow man was indicted for on charges of possession with intent to distribute methamphetamine.
Jusean Foster, 30, possessed at least 50 grams of methamphetamine on June 5, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the Portage County Drug Task Force, the Portage County Sheriff’s Office and the Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Statement of Attorney General Jeff Sessions on State of Washington v. U.S. Department of StateRead the Press Release
The Department of Justice yesterday filed a brief in opposition to a preliminary injunction in the State of Washington v. U.S. Department of State, a case about 3D printed guns.
After the filing, Attorney General Jeff Sessions issued the following statement:
"Under federal law, it is illegal to manufacture or possess plastic firearms that are undetectable. Violation of this law is punishable by up to five years in prison. Such firearms present a significant risk to public safety, and the Department of Justice will use every available tool to vigorously enforce this prohibition. We will work with federal, state and local law enforcement to identify any possible cases for prosecution.
"We will not stand for the evasion, especially the flouting, of current law and will take action to ensure that individuals who violate the law by making plastic firearms and rendering them undetectable, will be prosecuted to the fullest extent."
Please find the Justice Department's brief here.
St. Croix Woman Sentenced to 12 Months in Tax Fraud SchemeRead the Press Release
St. Croix, USVI – Indica Greenidge, 27, of St. Croix, was sentenced on Wednesday, August 15, 2018, before District Court Chief Judge Wilma A. Lewis to 12 months’ imprisonment for her conviction of conspiracy to defraud the United States, United States Attorney Gretchen C.F. Shappert announced. Judge Lewis also sentenced Greenidge to 3 years of supervised release, $75,171 in restitution, and a $100 special assessment.
According to the plea agreement filed with the court, from September 2011 to July 2012, Greenidge and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information used to electronically file falsified tax returns for tax years 2010 and 2011. Specifically, with Greenidge’s knowledge, her co-conspirators filed tax returns in individuals’ true names and actual social security numbers and dates of birth but falsified the individuals’ income earned, tax withholding amounts, credits, and other information, and thereby claimed refunds to which they were not entitled. The co-conspirators designated bank accounts for receipt of the refunds, which Greenidge and her co-conspirators then withdrew and spent for personal use. As a result of the scheme, $77,767 was designated to Greenidge’s bank account, of which $75,171 was actually deposited therein.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Meredith J. Edwards and Alphonso Andrews, Jr.
Southern Indiana Man Sentenced to 10 years for Seeking Sex with MinorRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge David Hale sentenced Donald L. Martin, of Floyds Knobs, Indiana to federal prison for 10 years for seeking sex with a minor and traveling with intent to engage in illicit sexual conduct, today announced United States Attorney Russell M. Coleman.
“We will protect our kids,” stated US Attorney Russell Coleman. “Predators of this nature should seek professional help or seek a defense lawyer as we will pursue them with every legal weapon in our arsenal.”
Martin, age 69, was arrested on September 2, 2017 at Pope Lick Park in Jefferson County, Kentucky where he had traveled with the intent of having sex with a 15-year old female he believed to be communicating with; Martin was actually communicating with cyber investigators working for the Kentucky Office of the Attorney General, Department of Criminal Investigations. Undercover investigators conducted a two-week investigation into Martin who sent sexually explicit text messages and emails to cyber investigators. At the time of Martin’s arrest he was in possession of sexual paraphernalia, generic Viagra, an empty packet of Cialis, an over-the-counter medication for male sexual performance enhancement, along with a handgun.
At trial, a jury found Martin guilty of Attempted Enticement and Traveling with Intent to Engage in Illicit Sexual Conduct.
This case was prosecuted by Assistant United States Attorney Spencer McKiness and Jo E. Lawless, and was investigated by the Kentucky Office of the Attorney General, Department of Criminal Investigations, with assistance from the Louisville Metro Police Department and United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Solano County Man Sentenced to 5 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Jerry Lyle Andrews Jr., 35, of Vallejo, was sentenced today by U.S. District Judge Morrison C. England Jr., to five years in prison for being a felon in possession a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 26, 2017, law enforcement officers executed a search warrant at Andrews’ home in Vallejo and at a hotel in Fairfield where Andrews was staying. When officers arrived at the hotel parking lot, they confronted Andrews, who discarded a .40‑caliber semi-automatic handgun under a car before he was arrested. The gun was loaded with 12 rounds of ammunition, including seven rounds of hollow point ammunition. Andrews cannot lawfully possess firearms because he has previously been convicted of felony offenses, including a January 2016 conviction in Solano County for assault with a firearm on a police officer.
This case was the product of an investigation by the Vacaville Police Department, the Fairfield Police Department, and the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force.
This case was brought as a 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 of Justice’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.