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14 August 2018
Two Individuals Indicted in August 2018 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the August 2018 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A Grand Jury Indictment does not constitute evidence of guilt. A Grand Jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
JOHNNY RAY WEBB, age 51, of Broken Bow, OklahomaFelon In Possession Of Firearm & Ammunition
The Indictment alleges that on or about March 14, 2018, within the Eastern District of Oklahoma, the defendant, JOHNNY RAY WEBB, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Christopher Wilson
TJ CAIN, a/k/a Thomas J. Cain, age 47, of Stilwell, Oklahoma
Felon In Possession Of Firearm
Felon In Possession Of AmmunitionThe Superseding Indictment alleges that on or about September 29, 2017, within the Eastern District of Oklahoma, the defendant, TJ CAIN, a/k/a Thomas J. Cain, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Tanfoglio, Model Witness-P, .40 caliber, semi-automatic pistol, serial number MT12307, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Superseding Indictment further alleges that on or about September 29, 2017, within the Eastern District of Oklahoma, the defendant, TJ CAIN, a/k/a Thomas J. Cain, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition, to-wit: Five (5) rounds of Remington Peters .22 caliber ammunition; and Four (4) rounds of CCI (Cascade Cartridge Inc.) .22 caliber ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Stilwell Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Dean Burris
Three Residents of Manchester Charged with Bank Fraud and ConspiracyRead the Press Release
CONCORD - Ariel Mendoza, 26, Angel Forteza-Concepcion, 18, and Katyushkanair Baez Vega, 18, all of Manchester, have been charged with conspiracy to commit bank fraud and bank fraud, announced United States Attorney Scott W. Murray.
According to an Indictment that was unsealed last week, Mendoza and Forteza-Concepcion knowingly deposited stolen checks and money orders to bank accounts at Service Credit Union, TD Bank, Bank of America, and St. Mary’s Bank. The Indictment also alleges that Mendoza and Forteza-Concepcion used the proceeds of the fraudulent deposits to withdraw cash from the accounts and conduct debit card purchases with ATM cards assigned to the accounts. The Indictment also charges Mendoza with stealing a check from a mailbox in Salem, New Hampshire.
According to a second Indictment that was unsealed last week, Mendoza and Baez Vega deposited stolen checks and money orders to bank accounts at Bank of America, TD Bank, Service Credit Union, and Digital Credit Union. The Indictment also alleges that Mendoza and Baez Vega used the proceeds of the fraudulent deposits to withdraw cash from the accounts and conduct debit card purchases with ATM cards assigned to the accounts.
Mendoza and Forteza-Concepcion were arrested in Federal Heights, Colorado area on August 4, 2018. Baez Vega was arrested in Concord, New Hampshire, on August 9, 2018.
The public is reminded that an Indictment is merely an accusation and Mendoza, Forteza-Concepcion, and Baez Vega are presumed to be innocent unless the charges are proven beyond a reasonable doubt.
The cases are being investigated by the United States Postal Inspection Service, the Manchester Police Department, and the Salem Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert Kinsella.
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The Royal Bank of Scotland Agrees to Pay $4.9 Billion for Financial Crisis-Era MisconductRead the Press Release
BOSTON – The U.S. Attorney’s Office in Massachusetts announced a $4.9 billion settlement with The Royal Bank of Scotland Group plc (RBS Group) resolving federal civil claims that RBS Group’s subsidiaries in the United States (RBS) misled investors in the underwriting and issuing of residential mortgage-backed securities (RMBS) between 2005 and 2008. The penalty is the largest imposed by the Justice Department for financial crisis-era misconduct at a single entity under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which allows the Justice Department to seek civil penalties for violations of criminal statutes.
“This resolution – the largest of its kind – holds RBS accountable for defrauding the people and institutions that form the backbone of our investing community,” said Andrew E. Lelling, U.S. Attorney for the District of Massachusetts. “Despite assurances by RBS to its investors, RBS’s deals were backed by mortgage loans with a high risk of default. Our settlement today makes clear that institutions like RBS cannot evade responsibility for the damage caused by their illicit conduct, and it serves as a reminder that the Justice Department, and this Office, will hold those who engage in fraudulent conduct accountable.”
“Many Americans suffered lasting economic harm as a result of the 2008 financial crisis,” said Acting Associate Attorney General Jesse Panuccio. “This settlement holds RBS accountable for serious misconduct that contributed to that financial crisis, and it sends an important message that the Department of Justice will pursue financial institutions that illicitly harm the American economy and our consumers.”
“The actions of RBS resulted in significant losses to investors, including Fannie Mae and Freddie Mac, which purchased the Residential Mortgage-Backed Securities backed by defective loans,” said Associate Inspector General Jennifer Byrne of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG). “We are proud to have partnered with the U.S Attorney’s Office for the District of Massachusetts on this matter.”
The settlement includes a statement of facts that details – using contemporaneous calls and emails of RBS executives – how RBS routinely made misrepresentations to investors about significant risks it failed to disclose about its RMBS. For example:
- RBS failed to disclose systemic problems with originators’ loan underwriting. RBS’s reviews of loans backing its RMBS (known as “due diligence”) confirmed that loan originators had failed to follow their own underwriting procedures, and that their procedures were ineffective at preventing risky loans from being made. As a result, RBS routinely found that borrowers for the loans in its RMBS did not have the ability to repay and that appraisals for the properties guaranteeing the loans had materially inflated the property values. RBS’s RMBS contained, as its Chief Credit Officer put it, “total f***ing garbage” loans with “random” and “rampant" fraud that was “all disguised to, you know look okay kind of . . . in a data file.” RBS never disclosed that these material risks both existed and increased the likelihood that loans in its RMBS would default.
- RBS changed due diligence findings without justification. RBS's due diligence practices did not remove fraudulent and high-risk loans from its RMBS. In fact, RBS executives internally discussed how RBS’s due diligence process was “just a bunch of bullsh**.” For example, when RBS’s due diligence vendors graded loans materially defective, RBS frequently directed the vendors to “waive” the defects without justification. One due diligence vendor, which tracked waivers by most major participants in the RMBS industry, concluded that RBS waived material defects 30% more frequently than the industry average. RBS’s waiver of material defects routinely resulted in the securitization of loans with excessive risk. When it engaged in such waivers, RBS never included enhanced “scratch-and-dent” disclosures that would have alerted investors that loans with excessive risks were included in the RMBS.
- RBS provided investors with inaccurate loan data. RBS’s due diligence frequently found that loan data – which RBS passed on to investors, who used the data to analyze the risks associated with its RMBS – were riddled with errors. Many inaccuracies made the loans look less risky than they actually were. RBS, however, did not require originators to correct the data errors. In one deal, where RBS identified over 600 data errors associated with 563 loans (including debt-to-income ratios understated by as much as 2700%), RBS failed to disclose these errors even to the originator; instead, RBS reassured the originator that RBS had not required originators to correct data errors in the past and did not anticipate doing so for that deal.
- RBS failed to disclose due diligence and kick-out caps. To develop and maintain business relations with originators, RBS agreed to limit the number of loans it could review (due diligence caps) and/or limit the number of materially defective loans it could remove from a RMBS (kick-out caps). RBS’s scheme reached its height in two deals issued in October 2007. In both of these RMBS, RBS identified hundreds of underlying loans that carried a particularly high risk of default and would cause losses to the RMBS investors. RBS kept these materially risky loans in the RMBS, without disclosing their inclusion to investors, because RBS had agreed to a kick-out cap limiting the number of defective loans that RBS could exclude from the securities in exchange for receiving a lower price for the loan pool. As a result, over the entirety of its scheme, RBS securitized tens of thousands of loans that it determined or suspected were fraudulent or had material problems without disclosing the nature of the loans to investors.
Through its scheme, RBS earned hundreds of millions of dollars, while simultaneously ensuring that it received repayment of billions of dollars it had lent to originators to fund the faulty loans underlying the RMBS. RBS used RMBS to push the risk of the loans, and tens of billions of dollars in subsequent losses, onto unsuspecting investors across the world, including non-profits, retirement funds, and federally-insured financial institutions. As losses mounted, and after many mortgage lenders who originated those loans had gone out of business, RBS executives showed little regard for this misconduct and made light of it.
These are allegations only, which RBS disputes and does not admit, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
U.S. Attorney Lelling, Acting Associate Attorney General Panuccio and FHFA-OIG Associate Inspector General Byrne made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Brian M. LaMacchia, Elianna J. Nuzum, Steven T. Sharobem, and Sara M. Bloom of Lelling’s Office handled the matter.
Springfield Man Indicted for Bomb Threat at Veterans ClinicRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was indicted by a federal grand jury today for making a bomb threat at the Veterans Affairs Clinic in Mount Vernon, Mo.
Richard Leslie Turner III, 48, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Turner on July 19, 2018.
The federal indictment alleges that Turner threatened on July 13, 2018, to blow up the Community Based Outpatient Clinic located at 600 N. Main St. in Mount Vernon.
According to an affidavit filed in support of the original criminal complaint, Turner arrived at the clinic on July 13, 2018, for an appointment but was told the appointment had been changed. Turner became angry and left the clinic, the affidavit says, then shortly afterward another patient informed a staff member that Turner was in the parking lot making statements about obtaining explosives and blowing up the clinic. When Turner was contacted by authorities about making the threats, he allegedly became angry and stated that he really intended to blow up the clinic because the police had called him.
On July 17, 2018, Turner allegedly called the clinic and told a staff member that he intended to travel to the clinic and kill him.
The charge contained in this indictment is an accusation, and not evidence of guilt. Evidence supporting the charge 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 Patrick Carney. It was investigated by the FBI, the Mount Vernon, Mo., Police Department, the Veteran’s Affairs Police Department and the Department of Veterans Affairs, Office of Inspector General.
South Carolina Man Sentenced to 30 Months in Prison for Interstate StalkingRead the Press Release
PITTSBURGH, PA. - A South Carolina resident has been sentenced in federal court to 30 months imprisonment followed by three years supervised release on his conviction of interstate stalking, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Dunlap, 30, of Clover, South Carolina.
According to information presented to the court, Dunlap placed false and fraudulent food delivery orders online, using the identity of other individuals, which placed the victim, a resident of Western Pennsylvania, under substantial emotional distress.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service and United States Postal Inspection Service for the investigation leading to the successful prosecution of Dunlap.
Sex Trafficking Operation Results in ArrestsRead the Press Release
PIERRE, S.D. - Attorney General Marty Jackley, United States Attorney Ron Parsons, Pennington County States Attorney Mark Vargo, Rapid City Police Chief Karl Jegeris, and Pennington County Sheriff Kevin Thom announce that the Division of Criminal Investigation, the South Dakota Internet Crimes Against Children (ICAC) Task Force, and Homeland Security Investigations have conducted investigations into sex trafficking in Rapid City.
“Law enforcement has joined together in a cooperative operation that focuses on removing sexual predators from our streets. Our operations continue to protect children and send a message that South Dakota is off-limits to anyone seeking to harm our children,” said Jackley.
The investigation resulted in the following felony arrests for sex crimes:
Robert Bungert, 55, Sturgis, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Zam Mung, 29, Rapid City, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Jeremiah Stertz, 30, Yankton, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Paul Heib, 50, Rapid City, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Connor Harmon, 20, Sturgis, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
Adam Myosky, 38, Port Clinton, Ohio, Attempted Enticement of a Minor Using the Internet (18 USC 2422(b))
All these individuals are presumed innocent until such time as proven guilty.
Searsmont Man Pleads Guilty to Firearms ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Mark White, 28, of Searsmont, Maine, pled guilty today in U.S. District Court to providing false information during the purchase of two firearms.
According to court records, on January 31, 2017, White sought to purchase a Smith and Wesson .40 caliber pistol from a federally licensed firearms dealer. In doing so, he completed a Firearms Transaction Record form in which he falsely reported that he was the actual purchaser of the firearm. On February 6, 2017, White began the purchase of a Glock 9 millimeter pistol from the same federally licensed dealer, again claiming he was the actual purchaser of the firearm. White completed the purchase of each firearm after a background check. On both occasions, White was actually buying the firearms for another individual.
White faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Massachusetts State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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.
Schenectady Man Admits to Leading Capital Region Drug Trafficking RingRead the Press Release
ALBANY, NEW YORK – Darren Clay Robinson, aka “Mountain,” age 54, of Schenectady, New York, and Teaneck, New Jersey, pled guilty today to conspiring with more than 10 people to distribute heroin, crack cocaine and cocaine throughout the Capital Region.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Robinson admitted that from August 2016 to May 2017, he worked with others to distribute heroin, cocaine base (aka crack cocaine) and cocaine in Albany and Schenectady Counties. Robinson admitted to distributing between 3.5 kilograms and 5 kilograms of cocaine as part of the conspiracy.
Robinson stored drugs at a Schenectady residence that he shared with co-defendant Lashaunda Tarver. On May 11, 2017, law enforcement executing a warrant there seized approximately 300 grams of cocaine, 75 grams of heroin and 25 grams of crack cocaine. At the residence, Robinson also possessed various glass mixing cups, 4 digital scales, cutting agents, and various packaging materials, all used in the packaging and distribution of drugs.
Also, on May 10, 2017, law enforcement in Ulster County found, hidden in the engine compartment of the car that Robinson was driving, a bag containing approximately 100 grams of cocaine.
Robinson, who has 3 prior drug felony convictions, faces at least 10 years and up to life in prison, and at least 8 years of post-imprisonment supervised release, when he is sentenced by United States District Judge Mae A. D’Agostino on December 14, 2018. 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.
The following defendants have also pled guilty in connection with the conspiracy:
Name
Age
Jose Gilberto Harris
58
Lashaunda Tarver, aka “Shaunda”
39
Bobby R. Graham
51
Marty Humphrey
66
Jalessa Scott
27
Willie C. Hayes, aka “Man”
46
Kimberly Petties, aka “Shorty”
49
Manuel Clemente
62
Corey J. White, aka “Stacks”
35
Shenika Boyd, aka "Misses" 38As part of this investigation, Scott also pled guilty in Schenectady County Court to criminal possession of a firearm.
The following defendants still face charges in this case: Yusef Boothman, aka “Rocket,” age 38, of Schenectady, and Kristy L. Smith, age 39, of Schenectady. The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, Schenectady County District Attorney’s Office, Albany County Sheriff’s Office, New York State Police, and the New York Department of Corrections and Community Supervision. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
San Francisco Tax Preparer Sentenced to 30 Months in Prison for Wire Fraud, Money LaunderingRead the Press Release
SAN FRANCISCO – San Francisco former certified public accountant Cary S. Collins was sentenced to 30 months in federal prison for wire fraud and money laundering, announced United States Attorney Alex G. Tse and Acting Special Agent in Charge Internal Revenue Service (IRS-CI) Tara Sullivan. The sentence was handed down today by the Honorable Richard Seeborg, U.S. District Judge.
Collins, 56, pleaded guilty to the charges on January 31, 2018. According to his plea agreement, Collins admitted that between February 2012 and April 2013, he devised and executed a plan to defraud a client of more than $1.3 million. Collins described the victim as a “client and friend.” Nevertheless, the defendant admitted he used his education and experience as a CPA, the position of trust he had developed as a financial advisor, and his personal relationship to convince the client to provide funds for the fraud. To perpetrate the scheme, Collins promised the client that if funds were transferred directly into Collins’ company’s bank account, Collins would transfer the money to an account at a new investment firm in the client’s name. On the basis of these representations, Collins convinced the victim to complete wire transfers to Collins’ company’s bank account. The client made four wire transfers to Collins in the aggregate amount of $1,325,000 between February 21, 2012, and March 5, 2012.
Collins received the wire transfers but never deposited the funds with the new investment firm. Instead, Collins spent the money on his own personal expenses, debts, and liabilities, including, among other things, payments for a vacation rental in Hawaii, payment of a contempt order against him, and payments to other entities such as Audi Financial Services, American Express, CitiCards, and Bi-Rite.
In April of 2012, the client inquired with Collins as to why the money had not been transferred to her new investment account. Collins responded with numerous false excuses and fraudulent explanations over the course of the following year as to the whereabouts of the money and his purported intention to repay the funds. The client ultimately was able to obtain the money back in July 2013, but only after obtaining a security interest on Collins’ home.
On November 17, 2015, a federal grand jury indicted Collins, charging him with four counts of wire fraud, in violation of 18 U.S.C. § 1343; four counts of money laundering, in violation of 18 U.S.C. § 1957; and one count of aiding and assisting in preparing a false tax return, in violation of 26 U.S.C. § 7206(2). Pursuant to his plea agreement, Collins pleaded guilty to one wire fraud count and one money laundering count. The remaining wire fraud and money laundering charges were dismissed. The aiding and assisting in preparing a false tax return count remains pending.
In addition to the prison term, Judge Seeborg ordered that Collins be placed on a three-year term of supervised release following his release from prison and that he pay a criminal fine in the amount of $10,000. Judge Seeborg ordered Collins to begin serving his sentence on January 2, 2019.
Assistant U.S. Attorney Brian R. Faerstein prosecuted the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the IRS.
San Francisco Resident Sentenced to Six Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
SAN FRANCISCO – Gerard Jones was sentenced today to 72 months in prison for distributing and possessing child pornography, announced United States Attorney Alex G. Tse and Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge.
Jones, 60, of San Francisco, pleaded guilty to the charges on April 2, 2018. In pleading guilty, Jones admitted that on September 13, 2016, officers from the San Francisco Police Department Internet Crimes Against Children (ICAC) Unit received a tip that a social media account holder uploaded a video of suspected child pornography to a private on-line channel. An investigation resulted in a search of Jones’s San Francisco residence and the discovery of numerous electronic devices containing tens of thousands of images and hundreds of videos of child pornography.
A federal grand jury indicted Jones on February 7, 2017, charging him with one count each of distributing child pornography, in violation of 18 U.S.C. § 2252(a)(2), and possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Jones pleaded guilty to both charges.
In addition to the prison term, Judge Chhabria sentenced the defendant to a five-year period of supervised release and ordered Jones to pay an assessment of $10,200. Judge Chhabria also scheduled a hearing for October 4, 2018, to determine the amount of restitution to be paid to his victims. The defendant was ordered to begin serving his sentence on November 30, 2018.
Assistant United States Attorney Meredith Osborn is prosecuting the case with the assistance of Lance Libatique. The prosecution is the result of an investigation by HIS with assistance from the ICAC.
Royal Bank of Scotland Agrees to Pay $4.9 Billion for Financial Crisis-Era MisconductRead the Press Release
The Justice Department announced today a $4.9 billion settlement with The Royal Bank of Scotland Group plc (RBS) resolving federal civil claims that RBS misled investors in the underwriting and issuing of residential mortgage-backed securities (RMBS) between 2005 and 2008. The penalty is the largest imposed by the Justice Department for financial crisis-era misconduct at a single entity under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including wire and mail fraud.
“Many Americans suffered lasting economic harm as a result of the 2008 financial crisis,” said Acting Associate Attorney General Jesse Panuccio. “This settlement holds RBS accountable for serious misconduct that contributed to that financial crisis, and it sends an important message that the Department of Justice will pursue financial institutions that illicitly harm the American economy and our consumers.”
"This resolution – the largest of its kind – holds RBS accountable for defrauding the people and institutions that form the backbone of our investing community,” said Andrew E. Lelling, U.S. Attorney for the District of Massachusetts. “Despite assurances by RBS to its investors, RBS’s deals were backed by mortgage loans with a high risk of default. Our settlement today makes clear that institutions like RBS cannot evade responsibility for the damage caused by their illicit conduct, and it serves as a reminder that the Justice Department, and this Office, will hold those who engage in fraudulent conduct accountable.”
“The actions of RBS resulted in significant losses to investors, including Fannie Mae and Freddie Mac, which purchased the Residential Mortgage-Backed Securities backed by defective loans,” said Associate Inspector General Jennifer Byrne of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG). “We are proud to have partnered with the U.S Attorney’s Office for the District of Massachusetts on this matter.”
The settlement includes a statement of facts that details – using contemporaneous calls and emails of RBS executives – how RBS routinely made misrepresentations to investors about significant risks it failed to disclose about its RMBS. For example:
- RBS failed to disclose systemic problems with originators’ loan underwriting. RBS’s reviews of loans backing its RMBS (known as “due diligence”) confirmed that loan originators had failed to follow their own underwriting procedures, and that their procedures were ineffective at preventing risky loans from being made. As a result, RBS routinely found that borrowers for the loans in its RMBS did not have the ability to repay and that appraisals for the properties guaranteeing the loans had materially inflated the property values. RBS never disclosed that these material risks both existed and increased the likelihood that loans in its RMBS would default.
- RBS changed due diligence findings without justification. RBS’s due diligence practices did not remove fraudulent and high-risk loans from its RMBS. For example, when RBS’s due diligence vendors graded loans materially defective, RBS frequently directed the vendors to “waive” the defects without justification. One due diligence vendor, which tracked waivers by most major participants in the RMBS industry, concluded that RBS waived material defects 30% more frequently than the industry average. RBS’s waiver of material defects routinely resulted in the securitization of loans with excessive risk. When it engaged in such waivers, RBS never included enhanced “scratch-and-dent” disclosures that would have alerted investors that loans with excessive risks were included in the RMBS.
- RBS provided investors with inaccurate loan data. RBS’s due diligence frequently found that loan data – which RBS passed on to investors, who used the data to analyze the risks associated with its RMBS – were riddled with errors. Many inaccuracies made the loans look less risky than they actually were. RBS, however, did not require originators to correct the data errors. In one deal, where RBS identified over 600 data errors associated with 563 loans (including debt-to-income ratios understated by as much as 2700%), RBS failed to disclose these errors even to the originator; instead, RBS reassured the originator that RBS had not required originators to correct data errors in the past and did not anticipate doing so for that deal.
- RBS failed to disclose due diligence and kick-out caps. To develop and maintain business relations with originators, RBS agreed to limit the number of loans it could review (due diligence caps) and/or limit the number of materially defective loans it could remove from a RMBS (kick-out caps). RBS’s scheme reached its height in two deals issued in October 2007. In both of these RMBS, RBS identified hundreds of underlying loans that carried a particularly high risk of default and would cause losses to the RMBS investors. RBS kept these materially risky loans in the RMBS, without disclosing their inclusion to investors, because RBS had agreed to a kick-out cap limiting the number of defective loans that RBS could exclude from the securities in exchange for receiving a lower price for the loan pool. As a result, over the entirety of its scheme, RBS securitized tens of thousands of loans that it determined or suspected were fraudulent or had material problems without disclosing the nature of the loans to investors.
Through its scheme, RBS earned hundreds of millions of dollars, while simultaneously ensuring that it received repayment of billions of dollars it had lent to originators to fund the faulty loans underlying the RMBS. RBS used RMBS to push the risk of the loans, and tens of billions of dollars in subsequent losses, onto unsuspecting investors across the world, including non-profits, retirement funds, and federally-insured financial institutions. As losses mounted, and after many mortgage lenders who originated those loans had gone out of business, RBS executives showed little regard for this misconduct and made light of it.
These are allegations only, which RBS disputes and does not admit, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
The settlement was the result of a multi-year investigation by the U.S. Attorney’s Office of the District of Massachusetts. Assistant U.S. Attorneys Justin D. O’Connell, Brian M. LaMacchia, Elianna J. Nuzum, Steven T. Sharobem, and Sara M. Bloom of Lelling’s Office investigated RBS’s conduct in connection with RMBS, with the support of the Federal Housing Finance Agency’s Office of the Inspector General.Red Bud Pharmacy Owner and Pharmacist Pleads Guilty to Healthcare FraudRead the Press Release
Steven P. Gibson, 29, pharmacist and owner of Gibson’s Discount Drugs in Red Bud, Illinois, pled guilty in federal court today to charges that he engaged in a scheme to defraud health care benefit programs by submitting false claims for fraudulent prescription medications to Medicare, Medicaid, and private insurance companies that were not authorized by a physician, nurse practitioner, or a physician’s assistant as required. Sentencing is set for November 27, 2018. Gibson will face up to 10 years in prison, a fine of up to $250,000, and up to three years of supervised release on each of the two counts to which he pled guilty.
During his plea hearing, Gibson admitted that he submitted false and fraudulent claims in the names of family members and pharmacy customers for prescription medication. Gibson often selected expensive prescription medications that he knew would be paid for by insurance companies (including Medicare and Medicaid). One such medication was Creon, a drug used to treat chronic pancreatitis. Another such medication was Pentasa, a drug used to treat ulcerative colitis. A third medication was Hydroxychloroquine, a drug used to treat or prevent malaria.
These and other prescription medications were not authorized by any physician, nurse practitioner, or physician’s assistant and were not dispensed to any of the family members or
pharmacy customers. Instead, these "make believe" prescriptions were created by Gibson for the sole purpose of generating money.
In total, Gibson received payments of over $630,000 from Medicare, Medicaid, and private insurance companies.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Illinois State Police, Medicaid Fraud Control Bureau; the Federal Bureau of Investigation; the Drug Enforcement Administration; United States Postal Inspection Service; and the National Insurance Crime Bureau. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Rapid City Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on August 13, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gordon Bagneschi, age 22, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in an amount to be determined within 90 days.
Bagneschi was charged on September 19, 2017. The charge relates to Bagneschi receiving over a thousand images containing child pornography via the Internet between December 2016 and September 2017 at Rapid City.
The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Rapid City Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rayford Featherman, age 69, was sentenced on August 9, 2018, to time served, 1 year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Featherman was indicted for the charge by a federal grand jury in February 2014. The charge related to Featherman assaulting two females with a metal bat on September 5, 2013, in Oglala.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Project Safe Neighborhoods Prosecution Results in 252 Month Sentence for Violent Federal Drug “Kingpin”Read the Press Release
District Judge Claire V. Eagan sentenced Larry O. Douglas, Jr., 45, of Tulsa, to 252 months in prison followed by 60 months of supervised release for Continuing Criminal Enterprise and Conspiracy to Carry, Brandish, and Use a Firearm During and in Relation to a Crime of Violence. Douglas must also pay a special monetary assessment of $200.00.
Douglas was convicted of the federal drug “Kingpin” statute which is reserved for the most serious drug violators. Beginning as early as September 2012, and continuing through March 11, 2018, Douglas was the leader of a criminal enterprise and conspiracy which involved using and maintaining a facility in which to possess, distribute and manufacture “crack” cocaine, methamphetamine and marijuana. Douglas also used physical force and firearms to intimidate and threaten witnesses to prevent them from communicating to law enforcement of his commission of federal crimes.
United States Attorney Shores stated, “Drug trafficking and violent crimes are tearing away at the fabric of our society. Kingpins like Larry Douglas can wreck communities. Drug organizations destroy families by facilitating substance abuse and addiction problems. Larry Douglas sold methamphetamine, crack cocaine, powder cocaine, and marijuana in northeastern Oklahoma. His organization utilized fear and violence as tools of the trade. We are all safer with Larry Douglas in federal prison. I am thankful to the collaborative efforts of the Oklahoma and Kansas investigators as well as the FBI who joined forces to take down this criminal enterprise.”
This prosecution was part of the Department of Justice’s Project Safe Neighborhoods and resulted from a joint investigation conducted by the Federal Bureau of Investigation and the Tulsa Police Department. United States Attorney Trent Shores and Assistant United States Attorneys Allen J. Litchfield and Eric O. Johnston handled the prosecution of this case.
President of Baltimore Tax Preparation Business Sentenced to 4 Years in Federal Prison for Assisting in the Filing of False Tax Returns and for Failing to File Corporate Tax ReturnsRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Tynisha Martin Kadiri, age 40, of Baltimore, Maryland, on August 13, 2018, to four years in prison, followed by one year of supervised release, for assisting in the filing of false income tax returns and for failing to file corporate tax returns. Judge Bredar also ordered Kadiri to pay restitution of $90,895. A federal jury convicted Kadiri on April 16, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Evidence presented at the six-day trial showed that Kadiri, who owned three tax preparation businesses in west Baltimore, filed false and fraudulent tax returns for her client-taxpayers. These false returns included business receipts that the taxpayers did not receive, business losses that the taxpayers did not incur, and false or fictitious businesses. As a result of these false statements, Kadiri’s clients received larger refunds than those to which they were entitled. In addition, evidence presented at trial proved that Kadiri did not file federal corporate income tax returns for her businesses for tax years 2014 and 2015.
United States Attorney Robert K. Hur commended the IRS-CI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew Maddox, who prosecuted the case.
Portland Man Sentenced to Home Detention, Probation for Hoax Bomb Threat on MAX TrainRead the Press Release
PORTLAND, Ore. – Wilfredo Reyes, 60, of Portland, was sentenced today to three years’ probation including eight months of home detention for falsely reporting a suspicious package on a TriMet MAX train.
According to court records, on June 9, 2017, Reyes called 9-1-1 to report a suspicious package with protruding wires on a MAX train in Portland. During the call, he intentionally conveyed false and misleading information that led the Portland Bureau of Emergency Communications and local law enforcement to believe an explosive had been planted on the MAX train. TriMet police and more than 40 officers from multiple agencies responded to the scene. The Metropolitan Explosive Disposal Unit rendered the device safe and concluded that it did not contain a bomb.
Surveillance cameras revealed that Reyes boarded the train with a backpack, placed it in a seat, walked to another part of the train, and then proceeded to call 9-1-1. He was interviewed by officers at the scene and initially denied being the caller. After the backpack was determined not to contain a bomb, officers found items in it with Reyes's name on them. He was arrested and admitted to owning the backpack and arranging the contents to look like a bomb.
Reyes’ conduct caused a substantial disruption to multiple law enforcement agencies and local businesses. Two business near the Hollywood/NE 42nd Avenue MAX station were evacuated. The station, several streets, and the westbound lanes of Interstate 84 were closed during the investigation.
Reyes previously pleaded guilty to one count of conveying a hoax bomb threat in violation of 18 U.S.C. § 1038(a) on April 26, 2018.
The Portland FBI Joint Terrorism Task Force investigated this case in coordination with its first response partners Portland Police Bureau, Portland Fire and Rescue and TriMet. The case was prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to 10 Years in Federal Prison for Armed Bank RobberyRead the Press Release
PORTLAND, Ore. – Jesse Lee Brockner, 32, of Portland, was sentenced today to 120 months in federal prison for armed bank robbery and possessing a firearm in furtherance of a crime of violence. Upon completion of his prison sentence, Brockner will be on supervised release for three years.
According to court records, on August 30, 2017, three men burglarized a barn in Yamhill County, Oregon, stealing the victim’s vehicle. Two of the suspects fled in the moving truck and a third in the victim’s vehicle. After Yamhill County Sheriff deputies located, arrested and interviewed the two suspects who fled in the moving truck, they identified Brockner as the third suspect. During a search of the moving truck, deputies found a backpack containing approximately $4,000, drug paraphernalia, and Brockner’s driver’s license.
Later the same morning, Brockner robbed a U.S. Bank branch in Beaverton, Oregon wearing a welding mask and holding a firearm. While executing the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the victim teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the vehicle stolen earlier that morning from the barn in Yamhill County.
Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the description of the stolen vehicle on the 3900 block of SE Powell Boulevard in Portland. After confirming Brockner’s identity, multiple marked PPB patrol units responded to assist the Task Force Officer. A high risk traffic stop was attempted and led to a vehicle pursuit. The pursuit ended in a crash and an officer involved shooting at NE 55th Avenue between East Burnside Street and NE Couch Street in Portland. Brockner was arrested and transported to Legacy Emanuel Hospital to receive medical attention.
Brockner previously pleaded guilty to one count of armed bank robbery in violation of 18 U.S.C. §§ 2113(a) and (d) and one count of brandishing a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c) on May 2, 2018.
This case was investigated by the FBI and prosecuted by Craig Gabriel, Benjamin Tolkoff and John Brassell, Assistant U.S. Attorneys for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Porcupine Man Sentenced for Possession of a Firearm and Ammunition by a Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dre Red Feather, age 26, was sentenced on August 10, 2018, to 60 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Red Feather was indicted for the charge by a federal grand jury on August 8, 2017. The charge related to Red Feather discharging a firearm at another male at Pine Ridge on July 30, 2017. Red Feather is prohibited from possessing firearms and ammunition, based on a previous felony conviction for Assault on a Federal Officer in 2012.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Oglala Sioux Tribe Public Safety, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Red Feather was immediately turned over to the custody of the U.S. Marshals Service.
Picayune Man Sentenced to over 13 Years in Prison for Trafficking Cocaine and MethamphetamineRead the Press Release
Gulfport, Miss. – Patrick Johns, 46, of Picayune, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 160 months in federal prison, followed by 3 years of supervised release, for distributing cocaine and methamphetamine in Picayune, Mississippi, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations.
Johns pled guilty on January 11, 2018 to one count of possession with intent to distribute cocaine. He was part of a five-person indictment against a group of individuals who were distributing cocaine and methamphetamine in the Picayune area. During the course of the investigation, law enforcement purchased cocaine from Johns on two occasions and methamphetamine on two other occasions. Johns was also held accountable as a supplier to one of his co-defendants, Antonio Irwin. Irwin was sentenced on March 30, 2018 to 128 months in prison for distributing methamphetamine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Philadelphia Woman Indicted for Social Security FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Saudia Shuler, 44, of Philadelphia, Pennsylvania, was charged today by indictment with six counts of wire fraud, one count of theft of government funds, and two counts of social security fraud.
According to the indictment, the defendant applied for benefits from the Social Security Administration, claiming she was disabled and unable to work. After Social Security approved the benefits, the defendant allegedly continued working, including operating her own restaurant. This work and income were never reported to Social Security, in violation of program rules. The defendant’s alleged actions resulted in a loss to the government of $36,785.67.
If convicted, the defendant faces a maximum sentence of 140 years’ incarceration, a period of supervised release, full restitution to the government of $36,785.67, a fine, and a special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Woman Charged with Stealing $160,000 in Social Security Benefits, Federal Student Financial AidRead the Press Release
TRENTON, N.J. – An Allentown, Pennsylvania, woman was arrested this morning for allegedly stealing $136,879.24 in social security benefits and over $23,000 in federal student financial aid, U.S. Attorney Craig Carpenito announced.
Martha Aguilar, 56, a former resident of Middletown, New Jersey, is charged by indictment with one count each of theft of government funds, social security fraud, false statements in furtherance of social security fraud, and student loan fraud. She will appear this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to the indictment:
From November 2004 to January 2015, Aguilar collected approximately $136,879.24 in social security benefits that she was not entitled to receive. During that time, Aguilar indicated in forms to the Social Security Administration (SSA) that she was completely disabled and unable to work.
However, Aguilar regularly worked during that 10-year time period as a paralegal for various law firms and attorneys. Aguilar also fraudulently applied for and received temporary disability from the state of New Jersey totaling $13,622 and unemployment benefits from the state of New Jersey totaling $103,738, all of which she concealed from the SSA. Overall, Aguilar failed to report over $470,000 in benefits and income she received from November 2004 to January 2015.
In addition, Aguilar falsified her son's applications for federal student financial aid by indicating she had no income other than social security benefits. As a result, her son was given $23,195 in federal financial aid that he was not entitled to receive.
The theft of government funds count is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. The false statement and social security fraud counts are each punishable by a maximum potential penalty of five years in prison and a $250,000 fine. The student loan fraud count is punishable by a maximum potential penalty of five years in prison and a $20,000 fine.
U.S. Attorney Carpenito credited special agents of the SSA, Office of the Inspector General, under the direction of John F. Grasso; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the New Jersey Department of Labor & Workforce Development, Division of Fraud Prevention & Risk Management-Special Investigations Unit, with the investigation.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Orchard Park Woman Charged with Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dolores Plumer, 39, of Orchard Park, NY, was charged by criminal complaint with possession with intent to distribute, and distribution of, cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, between June and July of 2017, the defendant on three occasions sold cocaine to an individual working with the Drug Enforcement Administration. On August 3, 2017, DEA special agents executed a search warrant at Plumer’s residence at 5125 Berg Road in Orchard Park and recovered digital scales with suspected cocaine residue and a box of plastic baggies for drug packaging.
The defendant made her initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
North Alabama Man Pleads Guilty to Online Drug-Trafficking ConspiracyRead the Press Release
BIRMINGHAM – A Madison man known on the internet’s dark markets as OlympusXans, or OX, pled guilty today in federal court to conspiracy to traffic drugs, including fentanyl, and to possessing firearms in furtherance of drug trafficking, announced U.S. Attorney Jay E. Town and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
JOSEPH WILLIAM DAVIS, 25, entered his plea before U.S. District Judge Madeline Hughes Haikala. A federal grand jury indicted Davis on the drug-trafficking and firearms charges in May. According to the indictment, Davis conspired in 2016 and 2017 to traffic methamphetamine, Alprazolam and fentanyl in Madison and Cullman counties. He is scheduled for sentencing Dec. 19.
“Fentanyl overdose deaths continue to soar in the United States while drug traffickers hide behind their computers, ordering up potent synthetic opioids and other drugs from the darkest corners of the internet,” Town said. “The Postal Inspection Service and the U.S. Attorney’s Office know how to unmask these criminals and send them to federal prison without the refuge of parole.”
“Dangerous life-threatening drugs have no place in the U.S. Mail,” Gonzalez said. “This case should serve as a deterrent by reminding criminals that postal inspectors and their law enforcement partners continuously strive to keep the U.S. Mail safe.”
Davis acknowledged in his guilty plea that he used encrypted internet chats to arrange smuggled shipments of illegal drugs, which he arranged to be delivered to addresses in Madison County via U.S. Mail.
One package seized during the investigation in 2017 contained 10,580 pills containing Alprazolam, an anti-anxiety medication. Another package contained 602 Alprazolam pills and 611 pills containing fentanyl, a deadly synthetic opioid 50 times more potent than heroin.
For purposes of sentencing, Davis was deemed responsible for distributing, possessing with intent to distribute and conspiring to distribute or to possess with intent to distribute more than 50 grams of methamphetamine, more than 40 grams of fentanyl, 2.81 grams of cocaine, and more than 80,000 units of Alprazolam, according to his plea.
The penalty for the conspiracy charge is 10 years to life in prison and a maximum $10 million fine. The penalty for possessing firearms in furtherance of drug-trafficking crimes is five years to life in prison, served consecutively to any other prison term imposed, and a maximum $250,000 fine.
U.S. Postal Inspectors, the Drug Enforcement Administration, Huntsville-Madison County STAC, and the Cullman County Sheriff's Department investigated the case, which Assistant U.S. Attorney Jonathan S. Keim is prosecuting.
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Newark Physician Faces up to 60 Years in Prison Following Guilty Plea to Child Exploitation OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Dr. David Blasczak, 69, of Newark, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to three counts of receiving child pornography. The charges carry a combined maximum penalty of 60 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that the defendant was a physician at the Clyde Family Health Center in Clyde, NY. Between September 1, 2015, and January 18, 2018, Blasczak subscribed to a website from his home that offered child pornography for purchase. The defendant created an account and purchased images and videos of child pornography which were emailed to Blasczak. The images and videos depicted prepubescent children engaged in sexual conduct with adults and other children, as well as prepubescent children, infants, and toddlers subjected to sexual abuse. In total, the defendant received and/or possessed approximately 2557 images and 78 videos depicting child pornography.
In addition to receiving images and videos of child pornography, as part of his plea agreement with the government, Blasczak also admitted to the following:
• Between approximately 1990 and 2000, Blasczak hosted slumber parties at his home which were attended by minor females between the ages of seven and 12. On several occasions, the defendant entered the room in which the minor females were sleeping, manipulated their clothing, and subjected them to sexual contact. This behavior typically consisted of Blasczak touching private areas of the minors’ bodies. The defendant also took photographs of the minors’ exposed private areas when he was able to remove their clothing. Blasczak engaged in as many as 40 different incidents of such sexual conduct involving approximately eight to 10 minor females.
• The defendant also stole children’s underwear from various places, including a friend’s house, for his sexual gratification.
• In his position at the Clyde Family Health Center, Blasczak took nude photographs of the genitals of multiple minor female patients at his medical office. The defendant represented to parents that the photographs were needed for a “study,” which was neither sanctioned, funded, nor approved by any official medical body or learning institution. During a search of the defendant’s medical office, Homeland Security Special Agents discovered prepubescent child sex dolls, and novels that the defendant wrote concerning the sexual abuse of children.
During the course of the investigation, Homeland Security Special Agents conducted interviews with close to 30 individuals who were exposed to some type of inappropriate conduct by the defendant.The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for November 20, 2018, at 9:15 a.m. before Judge Siragusa.
Nampa Man Sentenced to Prison on Federal Gun ChargeRead the Press Release
BOISE – Peter Albert Rodriguez, 28, of Nampa, was sentenced yesterday to 70 months in prison for unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced. U.S. District Court Judge David C. Nye ordered that upon completion of that sentence, Rodriguez serve an additional three years of supervised release. A federal grand jury indicted Rodriguez on December 12, 2017.
According to court records, in October 2017, law enforcement agents used a confidential informant to purchase three firearms and marijuana from Rodriguez. Agents later executed a search warrant at Rodriguez’s residence and vehicle. Inside the vehicle, agents located three additional firearms. Rodriguez is a gang member and has a prior conviction for unlawful possession of a firearm.
The indictment was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Nampa Police Department, and the Boise Police Department.
This case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
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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Mishawaka Man Sentenced to 210 Months in PrisonRead the Press Release
SOUTH BEND - Michael Scott Barber, age 22, of Mishawaka, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for his role in the break in and theft of firearms from a federally licensed firearms dealer, announced U.S Attorney Kirsch.
Barber was sentenced to 210 months imprisonment followed by 2 years of supervised release on federal charges. The federal sentence is to be served consecutively with two separate state sentences.
According to documents in this case, Barber was convicted by jury of theft of firearms from a FFL, being a felon in possession and possession of one or more stolen firearms after a three-day trial that concluded on May 9, 2018. On February 9, 2017, Barber went to hunting supply store in Shipshewana, Indiana to scope out the store for the best way to break in and steal firearms. Barber and two accomplices drove to the store in the middle of the night. Barber and one of the accomplices broke into the store and stole fifteen firearms and a crossbow. Over the next several days, Barber distributed some of the stolen firearms to others. The day after the break in, Barber returned to the area of the theft in an unsuccessful attempt to retrieve a firearm that he had dropped when he fled the store. Law enforcement recovered eight of the stolen firearms, one in Chicago during the arrest of a person suspected of shooting another in the chest and another that was used in a Chicago Heights armed robbery committed by a person who was on parole for second degree murder. Seven of the guns are still missing. Barber has previously been convicted of second degree home invasion in Michigan along with burglary, theft and auto theft in Indiana. Before being apprehended on these charges, Barber committed and was convicted of assault by strangulation and assault with intent to commit great bodily harm in Michigan. Ten days after breaking into the Shipshewana located FFL, Barber fled from and attacked a Michigan state trooper.
This case was investigated by the ATF with assistance from the LaGrange County Sheriff’s Department, Indiana State Police, Shipshewana Police Department, Middlebury Police Department, Mishawaka Police Department, St. Joseph County Police Department, and St. Joseph County Drug Investigation Unit. The case was handled by Assistant U.S. Attorney Molly Donnelly.
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Minkler calls for reduction in gun violence in IndianapolisRead the Press Release
U.S. Attorney’s Project Safe Neighborhoods initiative targets the most violent offenders while collaborating with community members, business leaders and faith-based groups
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today a meeting he held in his office with members of the Indianapolis community to help reduce gun violence. The meeting was held to discuss Project Safe Neighborhoods on ICE, an initiative linking the federal prosecutor’s office with members of (I) Individual Community Members, (C) Council of Private Sector Partners and (E) Evangelical and faith-based members.
“Law enforcement alone cannot stem the violent crime trend alone, it takes us all,” said Minkler. “If we broaden our base of those vested in the problem by force-multiplying our strengths, we can make a difference.”
The Department of Justice has identified Indianapolis as a city with 2.5 times the national average for violent crime. To date Indianapolis has experienced 91 criminal homicides and approximately 275 non-fatal shootings; an unacceptable statistic for a vibrant city like Indianapolis. To help reduce the violent trend, Minkler has assigned an Assistant United States Attorney to each of the IMPD Districts to focus federal resources on the most violent criminals using guns to terrorize our neighborhoods. Working with IMPD’s District Commanders, the ultimate goal is to reduce the number of criminal homicides and non-fatal shootings. To date approximately 150 federal defendants face criminal charges which carry more significant penalties and helps to insure safer neighborhoods.
Today’s meeting introduced members of varying groups from Indianapolis to brainstorm other ideas for violence reduction. The group’s task was to identify the Big Picture Goal, Identify the Problem, Solutions to the Problem and what Action Steps are needed.
The meeting also included Ms. DeAndra Yates-Dycus whose son DeAndre Knox was shot in 2014, while attending a friend’s birthday party. DeAndre was shot in the head and survived but is not able to speak or walk and is confined to a wheel chair. In addition, Ms. Cheree Sampson spoke to the group. Her 14-year-old son Daron Johnson was shot and killed in June of this year while attending a birthday party in Lawrence. Both were very powerful speakers that brought home the point that their lives are forever changed.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime using firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3
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Mexican Man Pleads Guilty to Unlawfully Re-Entering the United StatesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Benigno Godinez-Cortez, 45, of Ahuacuotzingo, Guerrero, Mexico, pleaded guilty today in U.S. District Court to unlawfully re-entering the United States after being deported.
According to court records, on July 10, 2018, the defendant entered the United States illegally from Canada by crossing a railroad trestle near Calais. U.S. Border Patrol agents located the defendant shortly after he entered. He is a citizen of Mexico who had been deported after his arrest in 1994 on immigration charges and did not have immigration documents allowing him to enter.
The defendant faces up to two years in prison and a $250,000 fine. He will be sentenced after completion of a presentence report by the U.S. Probation Office.
The investigation was conducted by the U.S. Border Patrol and U.S. Customs and Border Protection.
Man Sentenced to 20 Years in Federal Prison for Bank Robbery of a Charleston BankRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced that Cory Ray Christie, age 38, of Guyton, Georgia, was sentenced yesterday in federal court for bank robbery. On August 23, 2017, Christie pleaded guilty to bank robbery in violation of Title 18, United States Code, Section 2113(a). Evidence presented in court established that on August 17, 2016, Christie entered the South State Bank on Savannah Highway in Charleston. Christie entered the bank, approached the teller, and stated “just give me the money and no one gets hurt.” Christie stole approximately $2,880. The bank’s surveillance system captured Christie during the robbery and officers were able to obtain a description of his vehicle, which was tracked travelling south on Savannah Highway. After his arrest, officers found a shirt matching the shirt worn by the robbery suspect in Christie’s car and shoes matching the suspect’s shoes at Christie’s home. Further, cell site records confirmed that Christie’s phone was located very close to the coordinates of the South State Bank at the time of the robbery. Christie’s phone search history indicated that on the same day as the robbery, his cell phone was used to conduct a google search of “Charlestown sc bank robbery.”
On August 10, 2018, United States District Judge Richard M. Gergel sentenced Christie to 240 months imprisonment. Citing Christie’s 16 prior bank robbery convictions, Judge Gergel imposed the maximum penalty under the law. At sentencing, Judge Gergel recognized that Christie robbed the South State Bank only a few months after his release from a 137-month federal prison sentence for bank robbery.
The City of Charleston Police Department investigated the case in conjunction with the FBI. Assistant United States Attorney Emily Limehouse of the Charleston office prosecuted the case.
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Man Pleads Guilty in Scheme to Violate U.S. Sanctions Against SyriaRead the Press Release
SANTA ANA, California – A Walnut man has pleaded guilty to a charge of conspiring to export U.S.-origin tactical gear to Syria in violation of the International Emergency Economic Powers Act and Syria Sanctions.
Rasheed Al Jijakli, 57, a Syrian-born naturalized U.S. citizen, pleaded guilty Monday before United States District Judge James V. Selna.
In a plea agreement filed in this case, Jijakli admitted that, from April 2012 through March 2013, he conspired with other individuals to export tactical gear, including U.S.-origin laser boresighters, day- and night-vision rifle scopes, and other items from the United States to Syria.
Jijakli and one of the co-conspirators purchased the tactical gear, and on July 17, 2012, Jijakli traveled with the tactical gear from Los Angeles to Istanbul, Turkey with the intent that it would be provided to Syrian rebels training in Turkey and fighting in Syria. Jijakli provided some of the equipment, specifically the laser boresighters, to a second co-conspirator, who Jijakli learned was a member of Ahrar Al-Sham. Jijakli also provided the goods to other armed Syrian insurgent groups in Syria and Turkey.
In total, Jijakli and his co-conspirators provided at least 43 laser boresighters, 85 day rifle scopes, 30 night-vision rifle scopes, tactical flashlights, a digital monocular, five radios, and a bulletproof vest to Ahrar Al-Sham and other Syrian rebels in Syria, or with knowledge that the tactical gear was going to Syria.
Further, in August and September 2012, Jijakli directed co-conspirators to withdraw thousands of dollars from Palmyra Corporation, a check-cashing services company where Jijakli was the chief executive officer, to pay for tactical gear for Syrian rebels.
Judge Selna is scheduled to sentence Jijakli on December 4, at which time he will face a maximum statutory sentence of 20 years in federal prison.
This case is the product of an investigation conducted by the FBI, U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations, the U.S. Department of Commerce’s Office of Export Enforcement, and IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorney Mark Takla of the Terrorism and Export Crimes Section and DOJ Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Lincoln Man Sentenced to 20 Years for Possessing and Viewing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Derrick Coffin, 36, of Lincoln, Maine, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock Jr. to 20 years in prison and supervised release for life for possessing child pornography and accessing child pornography with the intent to view it. He was also ordered to pay $13,000 in restitution. Coffin pleaded guilty on March 12, 2018.
According to court records, on March 18, 2016, Coffin possessed hundreds of child pornography images on his laptop computer that were discovered during a probation check at his home. Coffin was subject to an enhanced sentence due to a prior conviction for gross sexual assault.
The investigation was conducted by U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Lincoln and Bangor Police Departments, the State of Maine Probation & Parole Office, and the Maine State Police and 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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Liberian National Sentenced for Resisting and Injuring Federal Officer During Removal ProcessRead the Press Release
BOSTON - A Liberian national was sentenced today in federal court in Boston for resisting a federal officer at Logan International Airport. The defendant struck deportation officers, injuring one, as the officers attempted to facilitate the defendant’s removal from the United States.
Mohammed Kenneh, 35, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison and two years of supervised release. In January 2018, Kenneh pleaded guilty to one count of resisting a federal officer.
“The public needs to be aware that this office will aggressively pursue a ‘zero tolerance’ policy in cases involving physical assaults on agents and officers who enforce our Nation’s federal immigration laws,” said United States Attorney Andrew E. Lelling. “Working in an increasingly politicized and hostile environment, these men and women are simply doing their jobs.”
“Individuals who think they can get away with assaulting ICE Deportation Officers should think again,” said Rebecca J. Adducci, Interim Field Office Director, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston. “This case powerfully demonstrates the priority that our justice system places not just on the enforcement of federal immigration law, but on the importance of protecting the dedicated men and women who put their lives on the line every day to enforce those laws.”
Between 2002 and 2012, Kenneh, a lawful permanent resident of the United States, was served with four restraining orders, issued by three different women. In 2015, Kenneh was convicted of violating a restraining order and sentenced to one year in jail; and in 2008, Kenneh was convicted of breaking and entering and sentenced to probation. His convictions rendered him deportable, and he was ordered removed by an immigration judge in Boston in July 2016.
On Aug. 29, 2017, two deportation officers assigned to accompany Kenneh to Liberia, began the removal process. When the officers attempted to process Kenneh for removal, he was verbally disruptive and physically resisted. The officers then handcuffed Kenneh and escorted him to a van for transport to Logan International Airport.
Upon arrival at the airport, Kenneh refused to exit the van. When one of the officers entered the van to remove Kenneh, he became physically aggressive. Kenneh used his shoulders and head to strike the officer, knocking him to the floor. Kenneh then wrapped his handcuffs around the officer’s wrist and twisted them forcibly. As a result of the physical altercation, the officers aborted the removal proceedings and returned Kenneh to Immigration and Customs Enforcement custody.
USA Lelling and Interim Field Office Director Aducci made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Lexington Man Sentenced to 150 Months for Using Internet to Attempt to Entice Minors to Engage in Sexual ActivityRead the Press Release
LEXINGTON, Ky. - A Lexington man, who previously admitted to attempting to entice minors to permit him to engage in illicit sexual conduct, has been sentenced to 150 months in federal prison.
Yesterday, Senior U.S. District Judge Joseph M. Hood sentenced Timothy Mark Poynter, II, 33, for using the Internet, with his cellular telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor, to engage in sexual activity.
According to the plea agreement, Poynter previously admitted to communicating with two different undercover law enforcement agents, who both responded to an ad Poynter posted on Craigslist.com. One undercover officer portrayed himself as the father of a 14-year old step-daughter, and the other officer posed as the mother of an 11-year old daughter. Poynter engaged in conversations during which he indicated his interest in engaging in sexual intercourse with both of the fictitious minors. He traveled to a meeting place in Lexington, designated by the undercover officer posing as the father, on April 26, 2017. Poynter admitted that he was the person who had been communicating with the officer, and that those communications contained sexually explicit conversations.
Poynter pleaded guilty to the charge in May of 2018.
Under federal law, Poynter must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for the remainder of his life.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven Igyarto, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations; Rick Sanders, Commissioner of the Kentucky State Police, and Kentucky Attorney General Andy Beshear jointly announced the sentence.
The investigation was conducted by Homeland Security Investigations, the Electronic Crimes Branch of the Kentucky State Police, and the Cyber Crimes Branch of the Office of the Attorney General of Kentucky. Assistant U.S. Attorney David A. Marye represented the federal government in the case.
Leader of International Drug Money Laundering Organization Sentenced to 30 Years in PrisonRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that JESUS RODRIGUEZ-JIMENEZ was sentenced today to 30 years in prison by United States District Judge Katherine B. Forrest in Manhattan federal court. RODRIGUEZ-JIMENEZ ran an international money laundering business with ties to Mexico, Italy, Hungary, Panama, and China, facilitating the movement of hundreds of millions of dollars in drug proceeds on behalf of drug cartels in Mexico and Central America. Through a web of front companies, shell bank accounts, and money couriers throughout the United States and Europe, RODRIGUEZ-JIMENEZ successfully laundered in excess of $250 million, directly facilitating the trafficking of massive quantities of narcotics throughout the world.
U.S. Attorney Geoffrey S. Berman said: “Jesus Rodriguez-Jimenez led an international money laundering operation that handled the proceeds of cocaine and heroin trafficking by Mexican and Central American cartels. The Rodriguez-Jimenez organization laundered more than a quarter of a billion dollars in illegal drug trafficking proceeds through front companies, sham bank accounts, and money drops in several U.S. cities. Thanks to the efforts of the DEA, Rodriguez-Jimenez will now spend considerable time in prison for his crimes.”
According to the charging and other documents filed in the case, as well as statements made during RODRIGUEZ-JIMENEZ’s sentencing proceeding:
Since July 2013, the U.S. Drug Enforcement Administration (“DEA”) has been investigating JESUS RODRIGUEZ-JIMENEZ’s international money laundering organization and its cartel clients, which together have been involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering narcotics proceeds through a variety of methods, including through a network of shell corporations under their control. To date, the investigation has resulted in charges against eight defendants, including the successful extradition of alleged high-level money launderer Filippo Magni from Italy earlier this summer.
Through a network of front companies, couriers, and his own armored car company, RODRIGUEZ-JIMENEZ succeeded in repatriating millions of drug dollars from the streets of New York, Chicago, Detroit, Philadelphia, and other cities across the United States, back to cartel interests in Mexico. By introducing these drug dollars into the banking system, RODRIGUEZ-JIMENEZ was able to move money wherever the cartel interests directed it, including repatriating this value to Mexico through trade-based money laundering: At the direction of his cartel clients, RODRIGUEZ-JIMENEZ would wire drug dollars to companies in China, Hong Kong, and Taiwan. These companies would, in turn, ship merchandise to Mexico or other drug producing countries. There, merchants would accept the shipment of goods, and pay a reduced price, in local currency, to the cartels. In this way, RODRIGUEZ-JIMENEZ turned street cash in the United States into value in Mexico.
RODRIGUEZ-JIMENEZ controlled his laundering empire through fear and intimidation. For example, in July 2015, pursuant to the investigation, the DEA seized $100,000 in drug money in Atlanta from Organization courier Sergio Urbina (ultimately a co-defendant of RODRIGUEZ-JIMENEZ). When he learned of the seizure, RODRIGUEZ-JIMENEZ ordered Urbina to come to Monterrey, Mexico, to explain himself. After enduring a multiple-day interrogation by RODRIGUEZ-JIMENEZ’s underlings, complete with the administration of a false polygraph test, RODRIGUEZ-JIMENEZ coerced Urbina to execute a false promissory note that RODRIGUEZ-JIMENEZ later used to try to hold Urbina liable for the value of the seizure – even commencing a fraudulent civil action against Urbina, which RODRIGUEZ-JIMENEZ continued to pursue from jail.
In total, RODRIGUEZ-JIMENZ laundered at least $250 million on behalf of the cartels during the course of the scheme.
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In addition to the prison term, RODRIGUEZ-JIMENZ, 47, of Monterrey, Mexico, was ordered to forfeit $284 million in laundered funds.
Mr. Berman praised the outstanding work of the Las Vegas Division of the DEA and the Las Vegas Office of the Internal Revenue Service, Criminal Investigation, in the investigation of this case.
This case is being handled by this Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Andrew C. Adams and Noah Falk are in charge of the prosecution.
Lafayette man sentenced to nearly 13 years in prison for conspiring to distribute multiple quantities of fentanyl, heroin, opioids and other controlled substances and illegally possessing a firearmRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Lafayette man was sentenced Monday to 151 months in prison for conspiring to distribute multiple quantities of narcotics and illegal possessing a 9 mm handgun.
Jacob Glen Collett, 35, of Lafayette, was sentenced by U.S. District Judge Dee D. Drell on one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a firearm and ammunition by a prohibited person. He was also sentenced to five years of supervised release. According to the April 19, 2018 guilty plea, Collett was arrested during an ongoing narcotics investigation in Lafayette and Jeff Davis parishes that took place from April 2017 to August 2017. Law enforcement agents found Collett in possession of 705.2 grams of methamphetamine, 222 dosage units of LSD, 56 tablets containing fentanyl, 4.01 grams of MDMA, 38.9 grams of heroin, 16.5 grams of cocaine, 52.3 grams of a mixture and substance containing THC, a Berretta 9 mm model 92FS handgun, and 16 rounds of ammunition.
The DEA, ATF, Lafayette Parish Sheriff’s Department, Lafayette Police Department, Lafayette Metro Narcotics Task Force, Calcasieu Combined Anti-Drug Task Force and Jefferson Davis Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Lafayette Man Sentenced to 78 Months in PrisonRead the Press Release
HAMMOND- David L. Adams, 62, of Lafayette, Indiana, was sentenced before District Court Judge James T. Moody on his plea to possession of child pornography, announced U.S. Attorney Kirsch.
Adams received a sentence of 78 months in prison followed by 5 years of supervised release.
According to documents filed in this case, a Task Force Officer (TFO) of the FBI’s Child Exploitation Task Force in Indianapolis reported internet-connected activity with a file sharing network they were monitoring using law enforcement software, that connects and downloads or attempts to download known child pornography images. The TFO using this software observed 72 videos containing child pornography from an Internet Protocol (IP) address that was later determined to be the defendant’s home, where he lived with a relative. A search warrant was obtained for the defendant’s home where electronics containing additional images and videos of child pornography were seized. During the search warrant, the defendant was not initially home, however, he arrived while the search warrant was still being executed, and attempted to flee in his vehicle when he saw law enforcement at his home. In the process of fleeing, the defendant almost hit several agents and TFOs that were on scene with his vehicle. The defendant did return a short time later, and was charged locally for his assault on law enforcement. The forensic examination of Adam’s computer revealed 81 videos and 6 images of child pornography with children under 12, including some videos with file names indicating the children were as young as 8 or 9 years old.
This case was investigated by the FBI and was prosecuted by Assistant United States Attorney Maria N. Lerner.
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Kansas Man Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Deon Terrell Culberson, 39, of Wichita, Kan., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
The DEA arrested Culberson in Feb. 2018, after seizing approximately 0.7 kilograms (1.54 pounds) of methamphetamine from his luggage during an interdiction investigation on Feb. 20, 2018, in Albuquerque. Culberson was indicted on March 13, 2018, and was charged with possession of methamphetamine with intent to distribute on Feb. 20. 2018, in Bernalillo County, N.M.
During today’s proceedings, Culberson pled guilty to the indictment and admitted that on Feb. 20, 2018, he possessed approximately 660 grams of methamphetamine while traveling from Las Vegas, Nev., to Albuquerque. Culberson further admitted that he intended to deliver the methamphetamine to others upon reaching his final destination of Newton, Kan.
At sentencing, Culberson faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
KCK Man Sentenced to 15 Years for Illegal Firearm, ThreatsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kan., man was sentenced in federal court today for illegally possessing a firearm and making threats following a confrontation with law enforcement officers at the Richard Bolling Federal Building.
James E. Everett, Jr., 32, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole.
On Jan. 8, 2018, Everett was found guilty at trial of threatening a federal law enforcement officer, forcibly resisting a federal law enforcement officer, and being a felon in possession of a firearm.
Everett arrived at the Richard Bolling Federal Building, 601 E. 12th St., Kansas City, Mo., at about 8:30 a.m. on March 10, 2016. He parked in an emergency vehicle-only parking space on 12th Street. At the building’s lobby entrance, Everett began yelling and demanded to speak to a federal judge. Four Federal Protective Service officers responded and encountered Everett on federal property, approximately 10 yards from the entrance. During the encounter, Everett threatened the officers, stating that he was going to “blow (their) brains out.” The officers then attempted to arrest Everett who fought them as they attempted to put him in handcuffs. It took all four FPS officers, as well as two Kansas City, Mo., police officers who responded to the scene, to restrain Everett.
During his arrest, Everett attempted to bite one FPS officer and spit on another. Three FPS officers received medical treatment following the encounter. After identifying the car in which Everett had arrived, a police officer found a loaded Ruger 9mm pistol underneath the driver’s seat.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Everett has prior felony convictions for aggravated robbery and arson.
This case was prosecuted by Assistant U.S. Attorneys Jeffrey Q. McCarther and Courtney R. Pratten. It was investigated by the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Protective Service.
Justice Department Reaches Agreement with the City of Minneapolis to Resolve Disability and Genetic Information Discrimination ComplaintRead the Press Release
The Justice Department today announced that it reached an agreement with the City of Minneapolis to resolve its lawsuit alleging discrimination on the basis of disability and genetic information. The Justice Department’s complaint alleges that the Minneapolis Police Department failed to hire a veteran because of his post-traumatic stress disorder (PTSD) in violation of the Americans with Disabilities Act (ADA). The complaint also alleges that Minneapolis violated Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA) by routinely requesting and obtaining genetic information from applicants for police officer positions during the pre-employment examination process. This is the Department’s first lawsuit challenging discrimination under Title II of GINA.
Based on its investigation, the Department concluded that the Minneapolis Police Department violated the ADA by refusing to hire a veteran because of his PTSD, even though he was qualified for the job and his condition did not interfere with his ability to work. After the applicant was rejected, he was hired as a police officer at another police department and was promoted to the SWAT team. The Department also determined that Minneapolis routinely obtained genetic information, including family medical history, from applicants for police officer positions. Title II of GINA prohibits employers from requesting or requiring genetic information with respect to employees, applicants, or family members of employees or applicants.
Under the three-year agreement, Minneapolis will pay $189,338.89 in back pay and other damages to the complainant. In addition, Minneapolis will implement policies, practices, and procedures to ensure that it does not discriminate in its hiring practices on the basis of disability, and does not request, require, or unlawfully obtain information in violation of the ADA or GINA. Minneapolis will also train Police Department employees who are involved in hiring-related personnel decisions, or who have access to applicants’ confidential medical information, on the ADA and GINA.
“Veterans who are qualified should not face discriminatory barriers to employment because they have post-traumatic stress disorder or other disabilities, and no applicant or employee should be asked to disclose genetic information unlawfully, including family medical history,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to protect veterans and other people with disabilities from discrimination in the workplace, and we commend the Minneapolis Police Department for committing to change its policies, train staff, and compensate the complainant.”
This matter was based on a referral from the Equal Employment Opportunity Commission’s Minneapolis Area Office.
To read the settlement agreement, please click here, and to read the complaint, please click here. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the Civil Rights Division’s Disability Rights Section, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Jury Finds Three Time Convicted Felon Guilty of Heroin ConspiracyRead the Press Release
A man who conspired to distribute heroin within protected locations was convicted by a jury on August 14, 2018, after a 3 ½-day trial in federal court in Sioux City.
Shelton Oliver, a/k/a Sinbad, 47, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute heroin and four counts of distribution of heroin, all within 1000 feet of a protected location. The verdict was returned following approximately two hours of jury deliberations.
The evidence at trial showed that Oliver distributed heroin on February 7, 14, and 27, 2018, and March 13, 2018, to a confidential informant utilized by law enforcement. Evidence also showed at trial that Oliver was involved in a conspiracy to distribute heroin in the Sioux City area from 2016 through on or about March 27, 2018. Evidence proved that the conspiracy and the four separate distributions all occurred within 1000 feet of protected locations, namely: Dale Street Park, Grandview Park, Alfred Thompson Children’s Park, Dinosaur Park, and Hunt Elementary School, in Sioux City, Iowa.
Evidence at trial also showed that on October 6, 2017, Oliver distributed heroin to Ty Olsen, who later died on this same date from a heroin overdose. The evidence at trial further showed that on March 13, 2018, Oliver distributed heroin to the confidential informant in a vehicle while Michael Pinney was overdosing in the passenger seat but was later revived by medical personnel.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Oliver remains in custody of the United States Marshal pending sentencing. Oliver faces a mandatory minimum sentence of life imprisonment, a $20,000,000 fine, and at least 6 years of supervised release, if ever released from imprisonment.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and Mikala Steenholdt and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4038.
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Illegal Alien from Guatemala to Spend Six Months in Prison before Being DeportedRead the Press Release
PITTSBURGH, PA - An illegal alien found in Oakmont, Pennsylvania, has been sentenced in federal court to six months incarceration to be followed by immediate deportation on his conviction of Illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentencing on Edvin Delgado Escobar, aka Alexis Romero, aka Eddie Romero, aka Edwin Delgado, age 27, of Guatemala.
According to the information presented to the court, Edvin Delgado Escobar, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on December 30, 2010 and November 7, 2012. Edvin Delgado Escobar was found to be illegally present in Oakmont, Pennsylvania, on May 23, 2018.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
The United States Attorney commended the U.S. Immigration and Customs Enforcement/Homeland Security Investigations for the investigation leading to a successful prosecution.
Husband and Wife Plead Guilty to Federal ChargesRead the Press Release
Abingdon, VIRGINIA – A St. Paul, Virginia man who illegally possessed more than a dozen firearms, and his wife who lied to federal agents to try to keep him out of trouble, have both pleaded guilty to federal charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced today.
Crystal Dione Hyde, 34, pleaded guilty today in U.S. District Court in Abingdon to one count of lying to a federal agent. At sentencing, Hyde faces a maximum sentence of up to five years in prison. She will be sentenced on November 19, 2018.
Patrick Steven Hyde, 39, pleaded guilty last week to one count of being a previously convicted felon illegally in possession of a firearm. At sentencing, Patrick Hyde faces a maximum statutory penalty of up to ten years in prison. He will be sentenced on November 8, 2018.
“As this case indicates, we will continue to work with our federal, state, and local partners to investigate and prosecute convicted felons who unlawfully possess firearms,” U.S. Attorney Cullen stated. “I am grateful for the leadership of the ATF and the participation of the Virginia Attorney General’s Office in this important violence-reduction initiative.”
“Keeping firearms out of the hands of dangerous individuals has been a top priority for me,” said Attorney General Mark Herring. “It is all too easy for felons to get their hands on firearms in Virginia and I appreciate the dedication of our law enforcement partners to investigate these cases. My office will continue to collaborate with law enforcement to bring those who illegally possess guns to justice and keep our communities safe.”
According to evidence presented at previous hearings by Assistant Attorney General and Special Assistant United States Attorney Suzanne Kerney-Quillen, on December 17, 2015, agents with the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a search of the mobile home and outbuilding in St. Paul, Virginia where Steven and Crystal Hyde resided. During that search, investigators recovered 14 firearms and many rounds of ammunition. The firearms recovered included five semi-automatic rifles and two semi-automatic pistols. Steven Hyde is a previously convicted felon who is barred from legally possessing a firearm.
When interviewed by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Crystal Hyde told investigators she purchased and possessed all of the weapons and ammunition recovered during the search. However, subsequent investigation revealed that the firearms and ammunition did in fact belong to Steven Hyde and that Crystal Hyde had helped her husband, whom she knew to be prohibited from possessing firearms, acquire the weapons. The investigation further revealed that Crystal Hyde lied to investigators about the firearms.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case for the United States.
Honduran National Sentenced in Hardin County ShootingRead the Press Release
BEAUMONT, Texas – A 42-year-old Honduran national illegally in the United States has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Santos Alfredo Paz-Ruiz pleaded guilty on May 10, 2018, to being an illegal alien in possession of a firearm and was sentenced to 33 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Nov. 4, 2017, Paz-Ruiz was confronted by an off-duty law enforcement officer for driving erratically on a rural road in Hardin County, Texas. During the confrontation, Paz-Ruiz brandished a hand gun and fired a shot. Paz-Ruiz was then tackled by the off-duty officer’s son and a struggle ensued. During the struggle, the firearm discharged striking the off-duty officer’s son in the ankle. The injury was not life-threatening. Further investigation revealed Paz-Ruiz was illegally in the United States and prohibited from owning or possessing a firearm. Paz-Ruiz was indicted by a federal grand jury on Jan 10, 2018 and charged with firearms violations.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Department of Homeland Security/Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Guatemalan Man Pleads Guilty to Being in the United States IllegallyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Victor Yobany Archila-Rojas, 28, of Guatemala, pleaded guilty today in U.S. District Court to entering the United States after having been removed and deported.Court records reveal that on July 29, 2018, the defendant entered the United States from Canada in Sandy Bay Township, Maine at a location not designated for entry. U.S. Border Patrol agents located the defendant shortly after he entered. He is a citizen of Guatemala and had been removed from the United States in 2013.
The defendant faces up to two years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Border Patrol.
Fresno Men Plead Guilty to Firearms OffensesRead the Press Release
FRESNO, Calif. — On Monday, Devone Johnson, 32, and Anthony Thomas, 26, pleaded guilty to unlawfully possessing firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, on October 9, 2016, Johnson and Thomas possessed an Uzi Model A, 9 mm rifle. Thomas was prohibited from possessing firearms because of a previous felony conviction. Johnson was prohibited from possessing firearms because of a misdemeanor domestic violence conviction.
Johnson and Thomas were arrested on November 3, 2016, along with 18 other defendants following a year-long multi-agency investigation that targeted criminal street gangs in Fresno. Other defendants also have pleaded guilty to various firearms and drug offenses, including:
- Garry Sampson, 40, pleaded guilty on August 1, 2018, to unlawfully possessing a firearm. He is scheduled to be sentenced on October 22, 2018.
- Raymond Jones, 61, pleaded guilty on August 6, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
- Danny Valenzuela, 51, pleaded guilty on July 30, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
- Stephen Hill, 28, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On December 18, 2017, Hill was sentenced to two years and eight months in prison.
- Rashad Halford, 31, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On March 12, 2018, Halford was sentenced to two years and two months in prison.
These cases are the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the California Department of Justice’s Bureau of Investigation Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno Police Department, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, and the California Highway Patrol Special Operations Unit (SOU). The Fresno County Sheriff’s Office, the Clovis Police Department, Fresno County Probation, and the California Highway Patrol assisted in the investigation. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the cases.
Johnson and Thomas are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on October 29, 2018, and November 5, 2018, respectively. They face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Former Arizona DEA Agent Pleads Guilty to Illegally Selling Assault RiflesRead the Press Release
TUCSON, Ariz. – A former DEA Supervisory Special Agent who was assigned to the Nogales Office as part of the DEA Tucson District Office pleaded guilty today in federal court in Tucson, Arizona, to illegally selling firearms without a Federal Firearms License (FFL). The case is being prosecuted by the U.S. Attorney’s Office for the District of Nevada because the U.S. Attorney’s Office for the District of Arizona is recused from the case.
Joseph Michael Gill, 42, of Tucson, pleaded guilty to one count of dealing in firearms without a licensee. He resigned from his position with the DEA on June 30, 2018. United States Magistrate Judge Lynnette C. Kimmins accepted the guilty plea and scheduled sentencing for November 26, 2018. The maximum penalty is five years in prison and a $250,000 fine.
According to the affidavit for a search warrant for Gill’s residence obtained in connection with the investigation, in December 2012, Gill applied for a Federal Firearms License with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), but he subsequently withdrew the application. Subsequent to withdrawing that application, Gill purchased multiple firearms from licensed firearms dealers and sold them on the internet utilizing the website Gunbroker.com. Upon further investigation into Gill’s use of Gunbroker.com, ATF learned that Gill had engaged in approximately 645 transactions.
According to the plea agreement, on June 12, 2016, Gill purchased three Colt .223/5.56 caliber rifles from an online FFL located in Lexington, Kentucky. He paid a total of $1,896. The rifles were shipped to a FFL in Sahuarita, Arizona, and Gill picked up the rifles on June 18. Then, on July 27 and 28, 2016, Gill sold two of the rifles to two different individuals who he had reason to believe intended to use or dispose of the firearms unlawfully.
The case is being investigated by the ATF and the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Phillip N. Smith Jr. of the District of Nevada is prosecuting the case.
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Florida Computer Store Operator Is Sentenced to 15 Months for Wire FraudRead the Press Release
CHARLOTTE, N.C. – Alan F. Luboff, 51, of Parkland, Florida, was sentenced yesterday by U.S. District Judge Max O. Cogburn, Jr. to 15 months in prison and three years of supervised release on wire fraud charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered the defendant to pay restitution in the amount of $119,900.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to documents filed with the Court and yesterday’s sentencing hearing, Luboff was the operator of “Triple Play Sales,” a computer store located in Coral Springs, Florida. As part of his operation of Triple Play Sales, Luboff purchased and sold computer products and earned commission on those transactions. Court records show that on January 25, 2018, Luboff emailed a past business associate, identified in court documents as “S.F.,” proposing a transaction to help Luboff finance 600 central processing units (CPUs). S.F. is a business owner and resident of Cornelius, N.C.
According to court records, Luboff falsely represented to the victim that if S.F. gave him $131,400 to help purchase the CPUs, Luboff would provide S.F. with a $20,000 profit within one week. To further induce S.F. to give him the money, Luboff lied to the victim and said that he was going to invest $30,000 of his own money to complete the transaction. The victim wired $131,400 to Triple Play Sales in accordance with Luboff’s instructions.
According to court records, contrary to what he told S.F., Luboff did not have a proposed transaction for CPUs lined up, and Luboff had no intention of using S.F.’s money to purchase CPUs. Rather, Luboff spent S.F.’s money on personal expenditures, such as to pay for car insurance and law care expenses, among other things.
When S.F. confronted Luboff about his failure to return S.F.’s principal and income from the transactions, Luboff told the victim a series of lies, including that federal law enforcement agents had frozen the money because a party to the purported transaction had business overseas.
In handing down Luboff’s sentence, Judge Cogburn said that the defendant engaged in “classic lulling,” and that the sentence is important to deter others. Judge Cogburn also increased the defendant’s sentencing range because the defendant caused falsified documents to be submitted to the government during the course of the investigation.
Luboff will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanks the FBI for investigating the case, and the Cornelius Police Department for their invaluable assistance over the course of the investigation.
Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Firearms Trafficker Sentenced to Nearly Four Years in PrisonRead the Press Release
RICHMOND, Va. – An Henrico man was sentenced today to 46 months in prison for conspiracy to make a false statement to acquire firearms, aiding and abetting another in making a false statement to acquire firearms, and using the mail to traffic marijuana.
“Preventing the illegal purchase and sale of firearms is a top priority,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to use federal firearms laws to prosecute straw purchasers and hold them accountable for their role in trafficking illegally purchased firearms. Every straw purchased firearm is a gun that can wind up in the hands of a prohibited person. I want to commend the ATF for their commitment to investigating these important cases.”
According to court documents, Toddai Deveaux, 21, enlisted an individual, J.M., to purchase approximately 13 firearms throughout spring and summer 2017 on Deveaux’s behalf. In doing so, J.M. falsely represented on forms required by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and used by all federally licensed firearms dealers, that he was purchasing the firearms for himself, rather than on behalf of Deveaux. After learning of these purchases and the false statements that J.M. made during each of these purchases, ATF agents confronted and arrested Deveaux. Law enforcement also learned that J.M. and Deveaux traveled to New York and Connecticut to sell several of the purchased firearms, with Deveaux keeping most, if not all, of the proceeds from those sales.
“The straw purchasing and illegal trafficking of firearms is a dangerous activity and often puts guns in the hands of criminals,” said Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “ATF remains dedicated to removing those that illegally possess firearms from the streets and communities of law abiding citizens.”
Additionally, in September 2017, Deveaux asked a student at Old Dominion University if Deveaux could have a package delivered to the student’s on-campus mailing address. Subsequently, in October 2017, Deveaux again asked if he could have a package delivered to the student’s on-campus mailing address. However, on this occasion campus police intercepted the package under suspicion the package contained marijuana. The package contained 861.09 grams of marijuana which Deveaux intended to sell and distribute to others.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-39.
Felon in Possession of Stolen Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced AUGUST NETTLES, a 21-year-old resident of Baton Rouge, to 42 months in federal prison following his conviction of possession of a firearm by a convicted felon. That sentence is to run consecutively to any sentence NETTLES receives from a pending 2nd degree murder charge in East Baton Rouge Parish. The Court further sentenced NETTLES to 3 years of supervised release following his term of imprisonment. The Court also ordered that the firearm possessed by NETTLES be forfeited.
On July, 27, 2017, East Baton Rouge Sheriff’s deputies, in connection with a homicide investigation, sought to locate and interview several persons who may have had information concerning the incident. NETTLES was listed among the persons law enforcement officers sought to contact. The officers’ investigation ultimately led them to a Motel 6, located here in the Middle District of Louisiana. NETTLES was located in Room 208, along with a female associate.
A search of the room revealed an Arcus, 98DA Model, 9mm caliber pistol, lodged between the mattress and box springs of the bed wherein NETTLES had been lying. NETTLES provided a statement admitting possession of the firearm.
Additional investigation revealed that on July 27, 2017, NETTLES had already been convicted of at least one felony offense. Specifically, on September 29, 2016, Nettles pled guilty to Illegal Possession of a Stolen Firearm, a felony offense, in East Baton Rouge Parish.
U.S. Attorney Fremin stated, “The seriousness of convicted felons carrying guns in our neighborhoods cannot be overstated. Our community is safer as a result of this conviction and sentence, and I am extremely proud of the joint efforts of our prosecutors, the ATF and Sheriff Gautreaux’s office in this and many other important matters.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our law enforcement partners continue to serve our communities by focusing our efforts on removing armed violent felons from our streets. I am proud of the work we are conducting in conjunction with our community. We will continue to work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana U.S. Attorney’s Office for federal prosecution.”
East Baton Rouge Sheriff Sid Gautreaux stated, “This indictment is one example of the collaboration of local, state and federal agencies to get dangerous criminals and weapons off our streets. The EBR Sheriff's Office is committed to continuing to work with all our law enforcement counterparts to ensure the safety of our residents. I'm grateful to the U.S. Attorney's Office for their hard work and dedication in prosecuting these cases that our agents have worked so hard to develop”.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the East Baton Rouge Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Jefferson.