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Wednesday 27 June 2018
Justice Department Reaches Agreement with Teachers Test Prep to Ensure Equal Access for Individuals with DisabilitiesRead the Press Release
The Justice Department today reached a settlement agreement with Teachers Test Prep Inc, (TTP), to resolve allegations that it violated Title III of the Americans with Disabilities Act (ADA) by not offering its online courses in a manner accessible to individuals who are deaf or hard of hearing and by not providing its one-on-one tutoring sessions in an accessible manner.
TTP offers preparation courses for licensing and credentialing examinations in California. Its services include tutoring, online classes, and live classes at locations throughout California. The Department initiated its investigation in response to a complaint that TTP’s online video courses were inaccessible to deaf individuals because they did not provide closed captions and that TTP failed to offer one-on-one online tutoring in an accessible manner. The complainant enrolled in a TTP course to prepare to take the California Basic Educational Skills Test (CBEST), designed to test basic reading, mathematics, and writing skills. The complainant worked as a school counselor, and her employer required that she pass the CBEST as a condition of her employment. Because TTP’s course was not offered in a manner accessible to deaf individuals, the complainant was denied equal access to TTP’s test preparation services.
“Exam preparation courses should be provided in a manner that is accessible to individuals with disabilities,” said Acting Attorney General John Gore of the Civil Rights Division. “The Department of Justice will work to ensure that individuals who are deaf or hard of hearing have an equal opportunity to participate in such courses.”
The ADA mandates that a private entity that offers test preparation courses, such as TTP, provide its services in a manner accessible to individuals with disabilities. It also requires TTP to make modifications to its courses as are necessary to ensure that the courses are accessible to individuals with disabilities and to provide appropriate auxiliary aids and services, unless TTP can demonstrate that doing so would fundamentally alter the course or would result in an undue burden.
Under the two-year agreement, TTP will adopt ADA course-modification policies and procedures; provide ADA training to its staff; caption its online video content; and provide notice on its website about how to request course modifications and auxiliary aids or services, including sign language interpreters. In addition, TTP will pay the complainant $5,000 and allow the complainant to enroll in another course free of charge.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
NOTE: The settlement agreement can be found here.
Joplin Man Sentenced to 25 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for recording cell phone videos of his sexual assaults upon a 9-year-old victim.
Richard James York, 27, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole.
On Jan. 31, 2018, York pleaded guilty to the sexual exploitation of a child. York admitted that he used a nine-year-old minor (identified as Jane Doe) to produce child pornography from March 1, 2017, to March 16, 2017. York sexually assaulted the child victim and made several videos of the assault with his cell phone. Those videos were discovered by another person, who contacted law enforcement.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Jasper County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jefferson County Woman Guilty of Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 56-year-old Beaumont woman has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Minnie Annette Coleman pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and conspiracy to launder money on June 26, 2018 before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, since December 2012, Coleman was involved in a drug trafficking organization that distributed crack cocaine in the Beaumont, Texas, area. During this time, Coleman allowed drugs and drug proceeds to be stored at her home in the 3300 block of Paris Street in Beaumont and she was personally responsible for delivering crack cocaine to others in the Beaumont area. Coleman was indicted by a federal grand jury and charged with drug trafficking violations on Feb. 7, 2018.
Under federal statutes, Coleman faces at least 10 years in federal prison at sentencing. The minimum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and the Beaumont Police Department and is being prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
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Jacksonville Felon Sentenced to More Than Eight Years for Committing Armed RobberyRead the Press Release
Jacksonville, FL – U.S. District Judge Timothy J. Corrigan today sentenced Roderick Randolph Lester (39, Jacksonville) to eight years and four months in federal prison for robbery, possessing a firearm as a convicted felon, and for violating his federal supervised release. The court also ordered Lester to forfeit the firearm and ammunition used in the offense.
Lester pleaded guilty on February 8, 2018.
According to court documents, on September 26, 2016, Lester went to a tire store in Jacksonville and asked the clerk for a used tire. Lester was quoted a price, and then told the clerk that he should not have to pay for the tire because of his business relationship with the owner of the store. The clerk informed Lester that he would need to contact the store’s owner to verify that information; Lester then cursed at the clerk and stated that he was taking the tire. Lester loaded the tire into his truck, at which point the clerk attempted to take the tire from him. Lester then pulled a pistol from a holster on his waist, pointed it at the clerk, and stated that he was taking the tire.
Officers with the Jacksonville Sheriff’s Office responded to the scene and apprehended Lester a few blocks from the tire store. A search of the scene revealed that Lester had discarded the pistol on top of a hedge nearby. The stolen tire was found in the back of Lester’s truck. During an interview with officers, Lester admitted that he had possessed the firearm and that he knew he was not allowed to carry firearms.
At the time of these incidents, Lester was on federal supervised release for a 2010 federal firearms conviction. He also had previous convictions for manslaughter, burglary, and an additional firearms possession charge, and therefore was prohibited by federal law from possessing firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Inmates at FCI-Berlin Sentenced after Assaulting another InmateRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Leonard Johnson and Robert Dales, both inmates at the Federal Correctional Institution FCI-Berlin, were sentenced to 12 months and 10 months, respectively for assaulting another inmate at the prison. The court ordered that their sentences run consecutively to the sentences they are currently serving.
According to documents filed with the court and statements made during the sentencing hearings, on May 23, 2017, Johnson and Dales were in Unit A-4 of the prison when they attacked another inmate. The attack, which was captured on videotape, included Johnson and Dales punching, kicking and stomping on their victim. Johnson and Dales continued the attack even though prison staff ordered them to stop. Only after the defendants were threatened with use of pepper spray did the attack end.
The victim was treated for his injuries at Androscoggin Valley Hospital. He suffered lacerations and bruising to his head, eyes, and ears.
Both defendants previously pleaded guilty to committing the assault.
The staff at FCI-Berlin conducted the investigation of this case. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Inmate and Leader of Multi-State Drug Trafficking Organization SentencedRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Dustin Tiller, age 32, was sentenced to 220 months (or 18 years and 3 months) imprisonment in federal court in Greenville.
The evidence presented at Tiller’s guilty plea and sentencing hearings revealed that Tiller, an inmate in the South Carolina Department of Corrections, was the mastermind and leader of a multi-state drug trafficking organization that facilitated the transportation and distribution of multiple kilograms of methamphetamine in the Upstate of South Carolina, Atlanta, Georgia, Kentucky, and elsewhere. During the course of the conspiracy, Tiller directed other conspirators, both inmates in the South Carolina Department of Corrections and individuals on the outside, to travel to Atlanta, Georgia, to retrieve kilogram quantities of methamphetamine, to sell the methamphetamine in Greenville and Anderson Counties, and to transport drug proceeds back to the source(s) of supply in Georgia and elsewhere. The investigation culminated in the arrest of Tiller and others in August and September of 2016, after federal agents intercepted a load of methamphetamine that members of the organization were transporting from Georgia to South Carolina.
Assistant U.S. Attorney Andy Moorman, Deputy Chief for the Narcotics Unit, is the lead prosecutor.
The Drug Enforcement Administration, the Drug Enforcement Task Force, the Anderson County Sheriff’s Office, the Anderson Police Department, and the Franklin County (GA) Sheriff’s Office investigated the case.
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Indictment: Developer of Oread Hotel Collected $400,000+ in Fraudulent Tax RefundsRead the Press Release
TOPEKA, KAN. – The developer of the Oread Hotel and his bookkeeper were indicted Wednesday on federal charges of scheming to collect more than $400,000 in fraudulent tax refunds from the City of Lawrence.
Thomas S. Fritzel, 52, Lawrence, Kan., and Keela Lam, 46, Lawrence, Kan., are charged with one count of conspiracy to defraud the city and one count of interstate transportation of stolen funds. Also named as defendants are companies controlled by Fritzel including Oread Construction LC, Oread Wholesale LC, Oread Inn LC and R6 LC.
The indictment alleges that in 2008 Fritzel signed an agreement with the City of Lawrence to develop the Oread Hotel in Lawrence, a seven-story hotel with restaurants, bars and a gift shop.
The city set up a Tax Increment Financing District and a Transportation Development District around the hotel and agreed to reimburse Fritzel for his development costs. The funds to pay Fritzel were to come from property tax and sales taxes collected inside the redevelopment district.
The indictment alleges Fritzel and Lam conspired to defraud the city by seeking reimbursement for hundreds of transactions that were not generated within the redevelopment district. The indictment alleges the defendants fraudulently sought refunds for taxes paid on furniture and appliances, work on houses Fritzel owned in Lawrence and Colorado, landscaping materials, party tent rentals, car batteries, equipment for a car wash and other items.
A separate indictment alleges Fritzel and others violated the requirements of the Clean Air Act for disposal of asbestos.
The indictment charges Fritzel, Casey Stewart, 38, Lawrence, Kan., Wesley Lynch, 60, Lawrence, Kan. and Tucker Fritzel, 25, Lawrence, Kan., with one count of conspiracy (count one), one count of failing to notify the Environmental Protection Agency of the removal of asbestos materials (count two), one count of failing to wet materials that contained asbestos during demolition (count three) and one count of failing to dispose of asbestos waste in leak-tight containers (count four).
Also named as defendants in the second indictment are DFC Company of Lawrence, LC; Eagle 1968, LC of Lawrence and R&R Supply Company, LC of Lawrence.
The indictment alleges the defendants conspired with Fritzel to violate federal laws for handling asbestos in order for Fritzel to save money on demolition and renovations at the Alvamar Country Club in Lawrence.
In the first indictment, upon conviction, the defendants face up to five years in federal prison and a fine up to $250,000 on the conspiracy count, and up to 10 years and a fine up to $250,000 on the count charging interstate transportation of stolen funds.
In the second indictment, upon conviction, the defendants face up to five years in federal prison and a fine up to $250,000 on count one, up to two years and a fine up to $250,000 on count two and up to five years and a fine up to $250,000 on counts three and four.
The FBI and the Lawrence Police Department investigated the Oread Hotel indictment. The Environmental Protection Agency – Criminal Investigation Division investigated the other indictment. Assistant U.S. Attorney Richard Hathaway is prosecuting both cases.
OTHER INDICTMENTS
Alan J. Haag, 53, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 13, 2018, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
Kasey A. Haag, 25, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 13, 2018, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
Anthony Hervey, 36, is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 13, 2018, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran National Police Officer Sentenced to 12 Years in Prison for Conspiring to Import Cocaine into the United StatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond Donovan, Special Agent in Charge of the Drug Enforcement Administration’s Special Operations Division, announced that Carlos Jose Zavala Velasquez, a former high-ranking member of the Honduran National Police, was sentenced yesterday to 12 years in prison for conspiring to import cocaine into the United States. VELASQUEZ previously pled guilty before U.S. District Judge Lorna G. Schofield, who imposed yesterday’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Carlos Jose Zavala Velasquez was a high-ranking Honduran police official who betrayed his duty and sold his office and sensitive law enforcement information to drug traffickers. Velasquez assisted a major trafficking organization and its leader by tipping them off about investigations and even accompanying them during a shipment of cocaine. Now he has been sentenced for his crimes.”
Special Agent in Charge Raymond Donovan said: “Any corrupt law enforcement official who contributes to instability and drug-related violence around the world deserves American justice and that is what Mr. Velasquez will get. Velasquez helped facilitate huge cocaine shipments bound for the United States and elsewhere and was a key facilitator for a significant Honduran drug trafficking and criminal network. DEA is pleased at the result of this investigation and we will continue to pursue and attack those who threaten the United States and do damage to countless lives, families, and communities.”
According to the Information, other court filings, and statements made during court proceedings:
From approximately 1991 through 2016, VELASQUEZ served as a member of the Honduran National Police, holding positions including, among others, second in command to the Chief of Police for the city San Pedro Sula; Chief of Police for the city Villanueva; Chief of Regional Special Services, a position responsible for investigations into organized crime; and the officer in charge of the “COBRAs” in San Pedro Sula, a commando-style unit dedicated to combatting organized crime. Between at least approximately 2009 and 2012, VELASQUEZ facilitated the drug trafficking activities of an organization operated by one of the most significant drug traffickers in Central America, Hector Emilio Fernandez Rosa, a/k/a “Don H.” On numerous occasions, and while VELASQUEZ was purportedly responsible for investigating Fernandez Rosa, VELASQUEZ provided information to Fernandez Rosa’s organization regarding ongoing law enforcement investigations so that the traffickers could plan transportation routes through Honduras for large loads of cocaine. On at least one occasion, VELASQUEZ accompanied members of the drug trafficking organization during the transportation of a load of cocaine. VELASQUEZ was paid between $5,000 and $20,000 each time he assisted the organization.
Six other former members of the Honduran National Police, including Mario Guillermo Mejia Vargas, Victor Oswaldo Lopez Flores, Ludwig Criss Zelaya Romero, Juan Manuel Avila Meza, and Carlos Alberto Valladares, are also charged in this case with firearms and/or drug trafficking offenses relating to a separate conspiracy to import cocaine into the United States. Each of those individuals has pled guilty in federal court, along with co-conspirator Fabio Porfirio Lobo. On September 5, 2017, Lobo was sentenced to 24 years in prison, and on February 6, 2018, Flores was sentenced to five years in prison. The remaining defendants await sentencing by Judge Schofield.
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In addition to the prison term, VELASQUEZ, 46, was sentenced to three years of supervised release.
Mr. Berman praised the outstanding efforts of the Special Operations Division of the DEA Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Matthew Laroche are in charge of the prosecution.
Hartford Gang Member Sentenced to 40 Months in Federal Prison for Distributing Heroin and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC SMITH, also known as “Hood,” 30, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 40 months of imprisonment, followed by five years of supervised release, for distributing heroin and crack cocaine in Hartford.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking by members and associates of the Orange Street Killas (OSK) in Hartford’s Parkville neighborhood. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members, including SMITH, acquired heroin and crack cocaine and then sold the drugs on the streets of Hartford.
SMITH has been detained since his arrest on February 10, 2017. On March 30, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”) and heroin.
Sixteen individuals were charged as a result of the investigation.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fraudster Pleads Guilty to Scamming Elderly Victims of more than $396,000 through Advance Fee SchemeRead the Press Release
Greenbelt, Maryland – Onijah Crighton, age 23, of Chillum, Maryland, pleaded guilty on June 26, 2018, to conspiracy to commit mail and wire fraud, in connection with a scheme to defraud more than 100 elderly victims through an advance fee scheme, specifically, by falsely representing that the victims had won a lottery or sweepstakes and demanding taxes or other fees before the victims could receive the prize.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, Matthew J. DeSarno; and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service – Washington Division.
According to his plea agreement, beginning in April 2013, Crighton and a co-conspirator began contacting Victim 1, an elderly man living in Virginia who suffered from Parkinson’s disease. Crighton falsely told Victim 1 that he was the second-place winner of the $10 million “grand prize draw” that Publisher’s Clearing House and the Better Business Bureau sponsored. Crighton fraudulently represented that the second-place prize was $2.5 million. Over the following months, Crighton and his co-conspirator contacted Victim 1 hundreds of times, convincing Victim 1 to send the conspirators 44 payments totaling approximately $112,000. Victim 1 made the payments through Western Union, by adding money to Green Dot cards controlled by Crighton and his co-conspirator, or by sending cash in the mail.
During the course of the conspiracy, Crighton emailed a “leads list provider” to purchase a list of names and personal identification information that Crighton could use to mass-market the lottery scam to elderly individuals across the country. Crighton and other members of the conspiracy successfully defrauded over 100 elderly victims of at least $396,157.
Crighton admitted that, beginning in 2012, he also used the personal identifying information of elderly individuals to fraudulently enroll debit cards in their names without their knowledge or consent. To conceal his involvement in the scheme, Crighton listed a number of different email addresses on the debit card applications, and listed street addresses on the applications that belonged to others involved in the scheme. In this manner, Crighton enrolled or caused to be enrolled hundreds of debit cards that were applied for using the stolen identities of at least 10 elderly individuals.
Crighton and the government have agreed that if the Court accepts the plea agreement, Crighton will be sentenced to 57 months in prison and will be required to pay restitution in the full amount of the victims’ losses, which is at least $396,157. U.S. District Judge Paula Xinis has scheduled sentencing for August 30, 2018 at 9:00 a.m.
Earlier this year, the Department of Justice and its law enforcement partners conducted the largest, coordinated sweep of elder fraud cases in history that involved more than 250 defendants and over one million American victims, most of whom were elderly.”
United States Attorney Robert K. Hur commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Dana J. Brusca, who are prosecuting the case.
Franklin County Man Sentenced to over Seventeen Years’ Imprisonment for Conspiring to Distribute FentanylRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Chief United States District Court Judge Christopher C. Conner sentenced Nathan A. Ott, age 34, of Chambersburg, Pennsylvania, to 210 months’ imprisonment for conspiring to distribute fentanyl.
According to United States Attorney David J. Freed, Ott pled guilty in July 2017 to conspiring to distribute fentanyl in Chambersburg between October 2015 through May 2017.
Ott obtained kilogram quantities of fentanyl and then pressed and distributed the fentanyl pills. Ott began by using a manual pill press but was unable to keep up with demand and purchased a motorized press capable of making 5,000 pills an hour. Ott purchased the ingredients to manufacture the fentanyl pills on the internet through the “dark web.” Ott distributed the fentanyl pills via the internet and to his co-conspirators who further distributed the pills to consumers. Ott began to sell the pills over the internet, using the dark web, in March 2017.
Chief Judge Conner also ordered Ott to forfeit $164,010 in cash and 19.7128804 in Bitcoin (with a current value of approximately $120,000).
Ott was charged in July 2017 with six other individuals. All of his co-defendants are awaiting trial.
The case was investigated by the Federal Bureau of Investigation, the Franklin County District Attorney’s Office, the Franklin County Drug Task Force, the Chambersburg and the Shippensburg Police Departments and the Pennsylvania State Police. Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.
Fentanyl is a powerful synthetic opioid analgesic that is similar to morphine, but is 50 to 100 times more potent than heroin.
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 also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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FourWinds Consultant Gary Cain Sentenced to 68 Months in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced FourWinds Logistics, Inc. (FourWinds) consultant Gary Cain to 68 months in federal prison, announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge D. Richard Goss, San Antonio Field Office.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Cain pay, jointly and severally, $6,345,441 restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Ezra also ordered Cain to surrender by September 25, 2018, or upon notification by U.S. Bureau of Prisons officials, to begin serving his federal prison term.
Yesterday, Judge Ezra sentenced Cain’s co-defendant, San Antonio attorney and former District 19 Texas State Senator Carlos I. Uresti to 12 years in federal prison and the same amount of restitution.
In February, a jury found Cain and Uresti guilty on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars. Charges against Cain included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering and seven counts of engaging in monetary transactions with property derived from specified unlawful activity. Charges against Uresti included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker. Prior to jury selection, former FourWinds Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering.
Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production. Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds. Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes. Evidence and testimony also revealed that Uresti, Cain and Bates engaged in money laundering with the proceeds of wire fraud.
Bates is scheduled to be sentenced at 1:30pm on August 6, 2018, in front of Judge Ezra. For each fraud related charge, Bates faces up to 20 years in federal prison upon conviction. For each money laundering charge, Bates faces up to ten years in federal prison upon conviction.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant U.S. Joseph E. Blackwell, William R. Harris, Mark Roomberg, Erica Giese and Sean O’Connell are prosecuting this case on behalf of the Government.
Four Georgia Men Indicted for Heflin Bank RobberyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted four Georgia men for the May robbery of an east Alabama bank, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
A two-count indictment filed in U.S. District Court charges DERRICK ANTONIO OWENS, 47, KENYATTA DELAFAYETTE COSBY, 46, and BRICE MERCIVIOUS KIMBRO, 22, all of Atlanta, and TRAVIS OMERE MONTFORD, 30, of Decatur, Georgia, with conspiracy to rob and with robbing Small Town Bank in Heflin on May 2.
“I commend the quick and courageous actions taken by Heflin Police officers in apprehending these suspects in flight from the scene of a bank robbery,” Town said. “Because of their professional response, and great work done by the FBI, these four defendants all face federal felony bank robbery charges where, if convicted, they will face federal time in a federal prison.”
According to the indictment, the four men traveled together to the Heflin bank and robbed it as follows:
Cosby entered the bank, jumped the teller counter and shoved a teller to the floor. Montford and Kimbro stood in front of the teller line to take money from the tellers, while Owens remained at the door “urging his coconspirators to act expeditiously.”
Owens also drove the car that the four men sped away from the bank in after the robbery.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for bank robbery is 20 years in prison and a $250,000 fine.
Heflin Police and the FBI investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
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Former Massachusetts Man Arraigned on Charges Linked to IRS Fraud SchemeRead the Press Release
BOSTON – An Illinois man, who previously lived in Massachusetts, was arraigned today in federal court in Worcester on charges associated with a wire fraud scheme whereby victims were told they owed money to the Internal Revenue Service (IRS).
Ashokkumar Patel, a/k/a Andy Patel, 28, of Hoffman Estates, Ill., and formerly of Plainville, Mass., was indicted on June 14, 2018, on one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of money laundering. In June 2017, Patel was arrested and charged by criminal complaint. He was released from custody on conditions.
According to the charging documents, from December 2013 to October 2014, Patel was part of a conspiracy whereby victims in the United States were contacted by individuals, primarily in India, and falsely told that they owed money to the IRS. The victims were told that in order to avoid imminent arrest, they had to purchase MoneyPak, or other types of prepaid stored value cards, load thousands of dollars onto the cards, and provide the serial numbers to the callers. After doing so, the victims’ money was quickly transferred to a prepaid debit card, such as Green Dot Debit Cards, and then the prepaid debit cards were used to purchase money orders. Patel was responsible for purchasing the prepaid debit cards, using the prepaid debit cards to purchase money orders and depositing the purchased money orders into various bank accounts, including his own.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the property involved in the transaction. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former DMV Employee Found Guilty of Conspiring to Issue Fraudulent California Driver’s LicensesRead the Press Release
SACRAMENTO, Calif. — On Tuesday, after a four-day trial, a federal jury found Robert S. Turchin, 68, of Salinas, guilty of one count of conspiracy to commit bribery and identity fraud and three counts of identity fraud, U.S. Attorney McGregor W. Scott announced.
“This prosecution of a California state employee for bribery resulting in grave danger to public safety is very troubling,” U.S. Attorney Scott stated. ”It is alarming to think that unqualified persons were licensed to operate big rigs and buses on our public roadways. We will continue to do everything we can to root out public corruption at any level, and hold those in positions of trust accountable for their greed.”
According to evidence presented at trial, Turchin was an employee at the Salinas field office for the Department of Motor Vehicles, including between 2012 and 2015. Turchin was responsible for conducting tests for applicants for commercial licenses to operate 18-wheel tractor-trailers and commercial buses.
The trial evidence demonstrated that truck school owner Mangal Gill offered to get people commercial licenses without having to pass the written tests or even take the required behind-the-wheel tests. Gill worked with Turchin and another DMV employee, Emma Klem, to have them access the DMV database to fraudulently update the tests at Gill’s request.
During the investigation, confidential operatives were able to obtain three official commercial licenses in 2013 and 2014. Collectively, they paid Gill over $12,000 after Turchin and Klem accessed the DMV database to fraudulently enter passing scores for the operatives despite the fact that the operatives did not pass or otherwise take the required tests. The trial evidence also demonstrated that Gill and Turchin continued to be involved in this fraudulent conduct until March 28, 2015, days before agents executed search warrants and found in Turchin’s vehicle slips of paper containing the numbers of fraudulently updated driver license records as well as several envelopes full of cash totaling over $10,000. The trial evidence showed that Turchin and his co-conspirators falsified DMV database records for at least 40 individuals for the purpose of obtaining commercial licenses.
This case is the product of a series of ongoing investigations by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the California DMV Office of Internal Affairs. Assistant U.S. Attorneys Todd A. Pickles and Rosanne Rust are prosecuting the case.
Co-defendants Gill and Klem previously pleaded guilty to counts of conspiracy to commit bribery and identity fraud and are awaiting sentencing.
Turchin is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on September 21, 2018. Turchin faces a maximum statutory penalty of five years in prison for the conspiracy count and a maximum of 15 years in prison for the fraud involving identification documents counts, and up to a $250,000 fine per each count. 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.
Florissant Man Indicted on Fentanyl and Weapons ChargesRead the Press Release
St. Louis, MO – Jaleel Zakee Adams, a/k/a “Jay,” 23, of Florissant, MO, was indicted on June 21, 2018 for allegedly distributing acetyl-fentanyl to R.I. on November 15, 2017, resulting in the death of R.I. In addition, Adams is charged with possessing a firearm during a drug trafficking crime, and with possessing a stolen firearm. Deputy United States Marshals arrested Adams on June 26, 2018 at a hotel in Hazelwood, Missouri, and he appeared the same day in federal court before United States Magistrate John Bodenhausen for his initial appearance.
R.I. was found deceased in his Florissant, MO home on November 15, 2017. The Medical Examiner determined that R.I. died as a result of acetyl-fentanyl intoxication. Acetyl-fentanyl is an analogue of Fentanyl and, unlike Fentanyl, acetyl-fentanyl has no legitimate medical use. Investigation revealed that Adams was the likely source of the acetyl-fentanyl, and the Florissant Police Department executed a search warrant at his parent’s home on December 29, 2017. During the search, the Florissant Police recovered six firearms, including a stolen handgun recovered from Adams’ rented vehicle.
If convicted of the distribution of a controlled substance resulting in death, Adams faces a minimum mandatory term of 20 years in prison, and he could be ordered to serve up to life. The offense also carries a fine of up to $1 million. Upon conviction of possession of a firearm in furtherance of a drug trafficking crime, Adams would be required to serve an additional term of at least five years, which must be served consecutively to any other sentence, along with a fine of up to $250,000. Possession of a stolen firearm carries a maximum penalty of 10 years in prison and/or a fine of $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
“The toxic drug fentanyl is a scourge on our community and represents a serious danger not only to its users but to the law enforcement officers who encounter it. I applaud the hard work of the Florissant Police Department and the skillful assistance of the ATF in bringing this offender to justice,” said U.S. Attorney Jeffrey B. Jensen.
This case was investigated by the Florissant Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs and More Than $23.6 MillionRead the Press Release
WASHINGTON – On June 26, 2018, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
These results were announced by Deputy Attorney General Rod J. Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent-in-Charge Angel M. Melendez of HSI New York Field Office, Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) New York Division, Assistant Director Kenneth Jenkins of the U.S. Secret Service (USSS) Office of Investigations, and Special Agent in Charge James J. Hunt of the U.S. Drug Enforcement Administration (DEA) New York Division.
“Criminals who think that they are safe on the Darknet are wrong,” said Deputy Attorney General Rosenstein. “We can expose their networks, and we are determined to bring them to justice. Today, we arrested more than 35 alleged Darknet vendors. We seized their weapons, their drugs, and $23.6 million of their ill-gotten gains. This nationwide enforcement effort will reduce the supply of deadly drugs like fentanyl that are killing an unprecedented number of Americans. I want to thank our federal prosecutors, and the dedicated federal agents with DEA, Homeland Security Investigations, the Postal Inspection Service, and the Secret Service for their outstanding work.”
“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit,” said HSI Executive Associate Director Benner. “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”
“Postal Inspectors and their law enforcement partners will spare no resource or expense to shine a light on the sale and distribution of illicit and dangerous items on the Darknet, that serve to destroy the lives of many through addiction and despair,” said Inspector in Charge Rendina. “Today’s announcement of our law enforcement partnership and operation sends a strong message to those who choose this illegal path, we are watching and will bring you to justice for your crimes against the American public.”
“The Secret Service is proud to work with our law enforcement partners to help combat one of the largest threats to the U.S. financial infrastructure, money laundering with virtual currency,” said U.S. Secret Service Assistant Director Jenkins. “The Secret Service continues to adapt along with these cyber criminals to maintain our level of success in stopping them.”
“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt. “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”
The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
- Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
Amongst those charged federally, include:
- Joshua Sweet, 26, of Hazleton, Pennsylvania, was charged in a criminal complaint by the U.S. Attorney’s Office for the Middle District of Pennsylvania with possession with intent to distribute controlled substances. Sweet operated an online drug business, obtaining alprazolam, typically sold under the brand name Xanax, LSD, and other substances from foreign sources and selling them on the dark web. At the time of arrest, agents had already seized over 18,000 alprazolam tablets and other controlled substances, 60.65 Bitcoin, and an additional $25,000 in cash. As part of this drug trafficking scheme, Sweet also laundered over $200,000 in bitcoin.
- Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
- Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
- Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
- Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
- Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
- Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
- In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the District of Utah, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.
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Financial Advisor Indicted on Fraud Charges for Allegedly Swindling Investors out of $4.7 MillionRead the Press Release
CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been indicted for allegedly defrauding those clients out of $4.7 million.
DARAYL DAVIS falsely represented to clients that they were guaranteed to receive annual interest payments of at least 6% if they invested with Davis’s two firms, Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC, according to a superseding indictment returned Tuesday in U.S. District Court in Chicago. Davis also claimed that his clients’ principal investments were protected against losses and that some of the purported investments were backed by a well-known multinational life insurance company, the superseding indictment states. The charges describe how Davis defrauded some of his 22 victims by causing them to “roll over” their retirement savings into an account controlled by Davis. In reality, Davis did not invest the funds as promised, and none of the purported investments offered by Davis through FAC and AAG had any affiliation with the life insurance company, the charges allege.
Instead of investing his clients’ money, Davis spent the money for his own personal benefit, including $706,000 on credit card payments, $476,500 to rent a mansion in Los Angeles, $102,000 on airline tickets, $45,000 on car rentals, $42,500 on membership in an exclusive club, $42,000 on luxury hotels, and $25,000 on theater tickets, the indictment states. Davis also used the investors’ funds to make Ponzi-type payments to newer investors to conceal the scam, the charges allege. The alleged fraud scheme began in 2003 and continued until this year.
The indictment charges Davis, 45, of Bowie, Md., with six counts of money laundering, five counts of wire fraud, four counts of mail fraud, and one count of aggravated identity theft. Arraignment is scheduled for June 28, 2018, at 9:30 a.m., before U.S. District Judge Robert W. Gettleman.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by the U.S. Securities and Exchange Commission, which previously filed a civil complaint against Davis.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud, mail fraud and money laundering is punishable by up to 20 years in prison, while aggravated identity theft carries a mandatory consecutive prison term of two years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Jennie H. Levin.
Film Producer Sentenced to 8 Years in Prison for Multimillion-Dollar Investment SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID BERGSTEIN, a film producer and entrepreneur, was sentenced today in Manhattan federal court to 8 years in prison for defrauding investors of more than $26 million. BERGSTEIN was found guilty on March 1, 2018 following a four-week jury trial before U.S. District Court Judge P. Kevin Castel, who imposed today’s sentence.
Manhattan U.S. Attorney Berman said: “As a Hollywood film producer and entrepreneur, David Bergstein is versed in common themes for fictional writing. Deception, truth, and lies fit the narrative for Bergstein’s real life scheme to bilk investors of more than $26 million. A unanimous jury has found Bergstein’s plot to be full of holes, and he has now been sentenced to 8 years in federal prison.”
The jury found Bergstein guilty of all counts of the Indictment, which charged him with one count of conspiracy to commit investment adviser fraud and securities fraud, two counts of investment adviser fraud, two counts of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud.
According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:
From 2011 through 2012, BERGSTEIN engaged in a scheme to defraud investors in Weston Capital Asset Management (“WCAM”), a New York-based registered investment adviser, by (i) concealing material information from Weston investors about financial transactions involving their money; (ii) transferring funds from one pool of Weston’s investors to make payments to, provide a security interest for, or otherwise benefit, another pool of Weston’s investors, without the required disclosures to investors concerning conflicts of interest; and (iii) misappropriating a portion of funds transferred from investor accounts for their own and others’ benefit. BERGSTEIN orchestrated this scheme in part through two transactions involving Weston investors’ assets: first, a loan from a Weston fund called the Partners 2 (or “P2”) Fund, and, second, a swap agreement with a Weston fund called the Wimbledon TT Portfolio (the “TT Portfolio”).
The Partners 2 Loan Scheme
In 2010, Weston agreed to a transaction with an entity named Gerova Financial Corporation (“Gerova”), an international reinsurance company, in which Weston sent assets from one of its hedge funds (the Wimbledon Financing Fund, or “WFF”) to Gerova in exchange for restricted shares of Gerova stock. This exchange was intended to replace illiquid hedge fund assets with stock, which could be bought and sold more easily. In 2011, however, Gerova’s stock price plummeted. Weston subsequently sought to unwind the transaction, and Weston’s president was introduced to BERGSTEIN for this purpose. BERGSTEIN and Weston’s principals subsequently formulated the outlines of a structure in which Weston would return its Gerova stock, receive its assets back from Gerova, and place those assets into another entity called Arius Libra Inc. (“Arius Libra”) as part of an investment in a separate business. Certain payments would be made along the way to facilitate the transfers.
In order to complete this transaction, BERGSTEIN and Weston’s principals agreed to loan money from the P2 Fund, another Fund operated and managed by Weston, to Arius Libra. The purpose of this loan (the “P2 Loan”) was purportedly (i) to pay certain debts associated with Gerova, and (ii) to fund Arius Libra’s purported medical billing businesses. Bergstein arranged for the P2 Loan to be secured by certain of the assets of WFF. Thus, in the event the P2 Loan was not repaid, the P2 Fund had the ability to liquidate WFF assets to make P2 investors whole, to the detriment of investors in WFF. In total, approximately $9 million in investor money was disbursed from the P2 Fund pursuant to the P2 Loan.
As BERGSTEIN well knew, however, P2 Fund investors were neither informed of the existence of the P2 Loan nor given any information about Arius Libra. And no disclosures were made to inform either P2 Fund or WFF investors of the conflict of interest arising from the P2 Fund’s security interest in WFF assets, as BERGSTEIN also knew. And although BERGSTEIN had represented to Weston that disbursements made pursuant to the P2 Loan would be used both to pay off Gerova creditors and to fund Arius Libra’s medical billing businesses, in fact, BERGSTEIN misappropriated millions of dollars of P2 Loan proceeds and used them to pay for, among other things, his own personal expenses, including credit card bills and attorney’s fees.
The TT Portfolio Swap Agreement Scheme
In late 2011, BERGSTEIN and Weston’s principals secretly arranged for Weston’s TT Portfolio to enter into a swap agreement with an entity controlled by BERSTEIN known as Swartz IP Services (“Swartz IP”), a transaction that was not disclosed to TT Portfolio investors. As part of this swap agreement, Bergstein arranged for approximately $17.7 million from the TT Portfolio to be transferred to Swartz IP. In exchange, BERGSTEIN agreed to provide certain investment returns and to meet investor redemption requests. Bergstein induced this transaction by misrepresenting to Weston’s principals that a wealthy investor had capitalized Swartz IP and guaranteed the transaction.
The TT Portfolio transaction was completed without disclosure to investors, even though, for other swap agreements, Weston had amended the TT Portfolio offering memorandum to reflect the particular swap agreement at issue. Of the money that was transferred to Swartz IP, BERGSTEIN directed that approximately $3 million be transferred to the P2 Fund to pay back part of the P2 Loan. BERGSTEIN thus arranged for money from one set of Weston’s investors (the TT Portfolio investors) to be used to pay back part of a debt owed to another set of Weston’s investors (the P2 Fund investors) – another conflict of interest that was not disclosed to P2 or TT Portfolio investors.
As a further part of the scheme, BERGSTEIN made false representations about Swartz IP’s assets and ability to meet redemption requests and secretly diverted TT Portfolio investor proceeds to pay BERGSTEIN’s personal expenses, including credit card bills, impressionist artwork, and private jets.
* * *
In addition to his prison term, BERGSTEIN, 55, of Hidden Hills, California, was sentenced to three years of supervised release, forfeiture and restitution amounts to be determined at a later time. BERGSTEIN was remanded on March 1, 2018, following the return of the jury’s verdict, and he remains in custody.
Mr. Berman praised the investigative work of the FBI, the IRS, and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Robert W. Allen, and Elisha J. Kobre are in charge of the prosecution.
Federal Inmate Sentenced to Another Year in Prison for Illegally Possessing BuprenorphineRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and was sentenced to one year and one day in prison, consecutive to the current prison term he is serving, followed by three years’ supervised release, United States Attorney Scott W. Brady announced today.
Alexander Rodriguez-Melendez, 30, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 12, 2017, Rodriguez-Melendez possessed a quantity of Buprenorphine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Rodriguez-Melendez.
Father and Son Admit to Fraudulent Sales of Titanium to Connecticut Defense SubcontractorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN J. PALIE, JR., 62, of Tiverton, Rhode Island, and JOHN J. PALIE III, 42, of Plymouth, Massachusetts, waived their right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to fraud offenses stemming from their having sold titanium to a Connecticut defense subcontractor.
According to court documents and statements made in court, JOHN PALIE, JR. is the owner and Chief Executive Officer of A&P Alloys, Inc. (“A&P”), a company in West Bridgewater, Massachusetts, that acquired and sold specialty metals, including titanium. JOHN PALIE III was a manager at A&P, having responsibilities for, among other things, the purchase and sale of titanium, and the preparation of titanium orders for shipment and delivery to customers. In pleading guilty, PALIE JR. and PALIE III admitted that they arranged two separate titanium sales to a Connecticut-based aircraft parts manufacturer that involved false representations about the source and quality of the titanium. The aircraft parts manufacturer supplies titanium parts to a company that manufactures aircraft engines, including engines for U.S. Air Force fighter jets.
In April and May 2012, PALIE JR. and PALIE III arranged a sale of 11 pieces of titanium to the Connecticut aircraft parts manufacturer, representing that the titanium had been certified as meeting an advanced aerospace quality standard when, in fact, it had never been certified as such. The order listed the engine manufacturer as the end buyer of the titanium.
In 2013, PALIE JR. and PALIE III arranged another sale of titanium to the Connecticut aircraft parts manufacturer with the engine manufacturer as the end buyer. In August 2013, PALIE III arranged for 400 pieces of titanium, along with certificates stating that the titanium originated from a particular mill and satisfied an advanced aerospace quality standard, to be delivered to the aircraft parts manufacturer. Due to concerns about the quality of the titanium, the engine manufacturer directed the aircraft parts manufacturer not to accept the titanium. PALIE III agreed to replace the 400 pieces with other titanium that satisfied the quality standard in question. However, instead of replacing the titanium, he arranged for the returned 400 pieces to be sandblasted and re-stamped with the manufacturer’s mark of a different titanium mill so that they appeared to be replacements for the returned pieces. In November 2013, PALIE III had the falsely labeled pieces, along with false certificates, shipped back to the aircraft parts manufacturer.
The government contends that the losses sustained by the multiple victim companies that purchased fraudulently misrepresented titanium total $1,328,000.
PALIE JR. and PALIE III each pleaded guilty to two counts of mail fraud, an offense that carries a maximum term of imprisonment of 20 years on each count. Judge Underhill scheduled sentencing for September 19, 2018.
PALIE JR. and PALIE III are released pending sentencing.
This matter is being investigated by the Defense Criminal Investigative Service, the U.S. Department of Defense Office of Inspector General, the U.S. Air Force Office of Special Investigations, and the U.S. Department of Transportation, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs and More Than $23.6 MillionRead the Press Release
WASHINGTON - Today, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
These results were announced by Deputy Attorney General Rod J. Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent-in-Charge Angel M. Melendez of HSI New York Field Office, Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) New York Division, Assistant Director Kenneth Jenkins of the U.S. Secret Service (USSS) Office of Investigations, and Special Agent in Charge James J. Hunt of the U.S. Drug Enforcement Administration (DEA) New York Division.
“Criminals who think that they are safe on the Darknet are wrong,” said Deputy Attorney General Rosenstein. “We can expose their networks, and we are determined to bring them to justice. Today, we arrested more than 35 alleged Darknet vendors. We seized their weapons, their drugs, and $23.6 million of their ill-gotten gains. This nationwide enforcement effort will reduce the supply of deadly drugs like fentanyl that are killing an unprecedented number of Americans. I want to thank our federal prosecutors, and the dedicated federal agents with DEA, Homeland Security Investigations, the Postal Inspection Service, and the Secret Service for their outstanding work.”
“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit,” said HSI Executive Associate Director Benner. “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”
“Postal Inspectors and their law enforcement partners will spare no resource or expense to shine a light on the sale and distribution of illicit and dangerous items on the Darknet, that serve to destroy the lives of many through addiction and despair,” said Inspector in Charge Rendina. “Today’s announcement of our law enforcement partnership and operation sends a strong message to those who choose this illegal path, we are watching and will bring you to justice for your crimes against the American public.”
“The Secret Service is proud to work with our law enforcement partners to help combat one of the largest threats to the U.S. financial infrastructure, money laundering with virtual currency,” said U.S. Secret Service Assistant Director Jenkins. “The Secret Service continues to adapt along with these cyber criminals to maintain our level of success in stopping them.”
“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt. “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”
The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
• Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
• Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
• Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
• Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
• Seizure of more than $3.6 million in U.S. currency and gold bars;
• Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
• Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
• Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.Amongst those charged federally, include:
• Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
• Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
• Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
• Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
• Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
• Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
• In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the District of Utah, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.
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Dunkirk Woman Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that a Minerva Maestre, 50, of Dunkirk, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to serve 60 months in federal prison by Senior U.S. District Judge William M. Skretny. In addition, the defendant was ordered to forfeit more than $150,000 in drug proceeds.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on April 28, 2017, Dunkirk Police, the Southern Tier Regional Drug Task Force and the Drug Enforcement Administration executed a search warrant at the defendant’s residence located at 51 E. Second Street in Dunkirk. During the search, officers seized 60 grams of crack cocaine, 42 grams of cocaine, plastic baggies, and $171,962 in cash.
The sentencing is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Joseph Geraci; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Dunkirk Police Department, under the direction of Chief David Ortolano.
Drug Traffickers Sentenced to 30 Years in Federal PrisonRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Shaun Booth, age 30, of Hot Springs, Arkansas was sentenced on June 26, 2018 to 90 months in federal prison followed by three years of supervised release, on one count of Aiding and Abetting the Possession with Intent to Distribute Methamphetamine, Steven Taylor, age 36, of Maud, Texas was sentenced today to 151 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine and Kelsey Williams, age 24, of Olive Branch, Mississippi was sentenced on June 25, 2018 to 120 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on June 7, 2016, officers with the 18th East Judicial Drug Taskforce in Garland County executed a state search warrant at the Economy Inn located in Hot Springs, which is within the Western District of Arkansas. Upon entry into the room, officers made contact with co-conspirator, Booth, who was the lone occupant of the room and in the far bed of the room. Booth had a valid warrant for his arrest and was placed in custody. During execution of the warrant, officers located a large amount of methamphetamine, as well as numerous items of drug paraphernalia. During the investigation agents learned that the methamphetamine had been brought in from Texas by Taylor and Williams and dropped off at the Economy Inn for further distribution by Booth. Investigators also learned that Taylor had the room rented in his name and had a key to the room.
The methamphetamine seized in this case was sent to the Arkansas State Crime lab where it tested positive for methamphetamine.
Booth, Taylor and Williams were all indicted by a federal grand jury in October 2016 and pled guilty in 2017.
This case was investigated by the 18th East Judicial Drug Taskforce. Assistant United States Attorney David Harris prosecuted the case for the United States.
Court Shuts Down Idaho Tax Return PreparerRead the Press Release
A federal court in Boise, Idaho permanently enjoined Jonathan Peirsol from preparing federal income tax returns for others, the Justice Department announced yesterday. Peirsol consented to the civil injunction order and admitted the allegations in the complaint. He previously pleaded guilty to aiding and assisting in the preparation of a false tax return and, in May 2017, was sentenced to 12 months and one day in prison.
According to the civil complaint, Peirsol prepared false income tax returns by adding fictitious itemized deductions without the knowledge or consent of his customers, including, most commonly, fraudulent medical expenses. Peirsol also added false education expenses to his customers’ income tax returns without their knowledge or consent, as alleged in the complaint. The complaint states that Peirsol’s conduct caused at least $62,441 in tax loss.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Felon Sentenced to More Than 10 Years for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Lecardo Albury (32, Tampa) to 10 years and 8 months in federal prison for possessing a firearm as a convicted felon.
According to court documents, on July 13, 2017, Albury was pulled over for a traffic violation. A search of the vehicle revealed a .40 caliber pistol loaded with 10 rounds of ammunition, two plastic baggies with 114 grams of marijuana, a glass pipe, and a small scale. Albury has 13 prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Columbus Man Sentenced to More Than 24 Years for Creating Pornography of Toddler and Young GirlRead the Press Release
COLUMBUS, Ohio – Jordan L. Price, 29, of Columbus, was sentenced in U.S. District Court to 295 months in prison and 15 years of supervised release for production of child pornography. Price pleaded guilty to the crime in January 2018.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Franklin County Prosecutor Ron O’Brien and other members of the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down by Senior U.S. District Judge Michael H. Watson.
According to the Statement of Facts in this case, in July 2017, the National Center for Missing and Exploited Children (NCMEC) received two reports from Google regarding an email account that had been used to send numerous child pornography files.
A search warrant executed on the Gmail account revealed that the account belonged to Price. Further investigation of Price revealed that he had used his cell phone to take several pornographic pictures of two female children who were five years of age or younger. Price’s hand was visible in some of the pictures, moving the victims’ clothing aside to expose and manipulate their genitalia.
In addition to the pornography that Price produced, he was also found to possess more than 200 child pornography files, including depictions of the rape of toddlers, in his Dropbox account.
“The youngest victim in this case was a toddler,” U.S. Attorney Glassman said. “The defendant moved aside the toddler’s diaper in order to photograph her genitalia. That Price saw these very young children as sexual objects to be exploited rather than children to be cared for indicates the necessity of the significant prison sentence he received today.”
U.S. Attorney Glassman commended the investigation of this case by the Franklin County Sheriff’s Office as well as Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Director, Franklin County Special Victim’s Unit, who are representing the United States in this case.
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Colombian Man Sentenced to More Than 15 Years for Transporting CocaineRead the Press Release
Tampa, FL – U.S. District Judge Steven Merryday has sentenced Francisco Moreno-Valencia (40, Colombia, South America) to 15 years and 6 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine on vessels subject to the jurisdiction of the United States. Moreno-Valencia pleaded guilty on February 15, 2018.
According to court documents, Francisco Moreno-Valencia was the right hand of his brother, Luis Moreno-Valencia, who was the organizational head of his Colombian-based drug trafficking organization. Francisco Moreno-Valencia was responsible for storing the cocaine and dispatching the mariners for several maritime smuggling ventures in international waters of the Eastern Pacific Ocean. In November 2014 and December 2015, the United States Coast Guard interdicted over 800 kilograms of cocaine aboard vessels commonly referred to as “go fast boats.” Francisco Moreno-Valencia was involved in the transportation of cocaine from Choco, Colombia, to Panama.
Luis Moreno-Valencia was sentenced to 17 years and 6 months in federal prison on May 17, 2018.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorneys Thomas N. Palermo and Charlie Connally.
California and Florida Men Charged with Selling Synthetic Cannabinoids over the InternetRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and Peter R. Rendina, Inspector-in-Charge of the New York Field Division of the U.S. Postal Inspection Service (“USPIS”), announced today that JONATHAN RIENDEAU and JADE PLANTE have been charged with operating websites that sold more than $1 million of synthetic cannabinoids throughout the United States. Both defendants were arrested this morning. RIENDEAU will be presented today in federal court in the Southern District of California. PLANTE will be presented today in federal court in the Southern District of Florida. The case has been assigned to United States District Judge Naomi Reice Buchwald.
U.S. Attorney Geoffrey S. Berman said: “Trafficking of synthetic cannabinoids – sometimes called K2 or Spice – is on the rise and poses a serious threat to public health and safety. Packaged attractively to appeal to teenagers and young adults, synthetic cannabinoids are in reality a toxic cocktail that can be very dangerous to consume. As alleged, Jonathan Riendeau and Jade Plante used the internet to peddle massive quantities of synthetic cannabinoids. Thanks to our law enforcement partners, Riendeau and Plante have been arrested and their dangerous business has been dismantled.”
NYPD Commissioner James P. O’Neill said: “As NYPD detectives continue to do remarkable work in investigating those responsible for directing smokeable synthetic cannabinoids onto our streets – and the resulting scourge of related overdoses – we are grateful for the collaboration of our federal partners, whose reach and expertise greatly strengthens our impact on this crisis. The composition of these toxic chemicals varies by batch, and the results of taking them are unpredictable. What is predictable, however, is our relentless investigation of anyone who produces or sells so-called ‘synthetic marijuana’ in New York City or anywhere else in America.”
HSI Special Agent-in-Charge Angel M. Melendez said: “These individuals allegedly sold and distributed massive quantities of laced smokeable synthetic cannabinoids, throughout the country using the internet. These arrests are so timely, considering amount of K2 related overdoses we have experienced here in New York City. Law enforcement is full steam ahead on investigations to bring down those online drug dealers and prosecute them to the fullest extent of the law.”
USPIS Inspector-in-Charge Peter R. Rendina said: “Dealers in synthetic drugs never think of the lasting impact on the lives destroyed and the communities devastated by their greedy and illegal operation. Their only goal is to make money off of the users. Whether it be a clever name or packaging, these illegal operations will never go unnoticed by law enforcement. Today’s arrests are a strong message to drug traffickers that Postal Inspectors and their law enforcement partners will spare no resource or expense to protect our customers and the sanctity of the U.S. Mail.”
According to the allegations in the Indictment[1]:
From February 2014 until June 2018, RIENDEAU and PLANTE operated a scheme to distribute massive quantities of smokeable synthetic cannabinoids (“SSC”), containing controlled substances and controlled substance analogues, throughout the United States. SSC, which can be addictive, are often marketed as safe, legal alternatives to marijuana. In fact, SSC are not safe and may affect the brain much more powerfully than marijuana; their actual effects can be unpredictable and, in some cases, more dangerous or even life-threatening.
RIENDEAU and PLANTE operated three different websites on which they sold SSC, colloquially referred to as “K2” or “Spice,” which included dried, shredded plant material onto which synthetic cannabinoid chemicals had been sprayed, and liquids containing synthetic cannabinoid chemicals for users to vaporize and inhale with e-cigarettes or other similar devices. The SSC distributed by the scheme were branded with colorful graphics and distinctive names, including “Dead Man Walking,” “Brainfreeze,” “Klimax,” “Twilite,” “Delirium,” “Purple Haze,” “Diablo,” “AK-47,” “ScoobySnax,” “F*cking Crazy,” and “Dafuq.” Many of the SSC were marketed as having flavors, including chocolate, apple, and strawberry. The SSC were sometimes marked “not for human consumption,” or “potpourri.”
Over the course of the scheme, RIENDEAU and PLANTE shipped approximately 6,000 packages of SSC through the United States mail to customers throughout the U.S., including locations in Manhattan, the Bronx, and all 50 states, containing a total of more than 120 kilograms of SSC. RIENDEAU and PLANTE were paid more than $1 million for SSC in the course of the scheme.
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RIENDEAU, 38, of San Diego, California, is charged with three counts of conspiring to distribute narcotics. PLANTE, 39, of Port Saint Lucie, Florida, is charged with one count of conspiring to distribute narcotics. Each count carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, USPIS, and the NYPD, and thanked the Drug Enforcement Administration for its assistance. The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (“HIDTA”), which is a federally funded crime fighting initiative and part of the Organized Crime Drug Enforcement Task Force program.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Robert B. Sobelman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Boise Man Pleads Guilty to Access with Intent to View Child PornographyRead the Press Release
BOISE – Jose Luis “Joey” Sanchez, 39, of Boise, pleaded guilty yesterday in United States District Court to access with intent to view child pornography, U.S. Attorney Bart M. Davis announced.
According to court records, between October 2015 and January 2016, agents with Homeland Security Investigations monitored an online video conferencing application used to view and exchange images of child pornography. Agents identified Sanchez as a user from Idaho who had logged into the chatroom and viewed child pornography on seventeen separate occasions.
In May 2016, investigators with the Idaho Internet Crimes Against Children Task Force (ICAC) served a search warrant on Sanchez’s residence in Boise, Idaho, and seized a laptop computer. Sanchez admitted that he had used the video conferencing application and viewed images of child pornography. On Sanchez’s laptop, investigators found evidence that it was used to access the video conferencing application, that Sanchez had communicated with other users about sexual acts with children, and that Sanchez exchanged information on chatrooms where images of child pornography were available.
Sentencing is set for September 25, 2018, before Chief U.S. District Judge B. Lynn Winmill. Access with intent to view child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,100 special assessment. As part of his plea, Sanchez also agreed to forfeit the computer and electronic storage devices used in the commission of the charged offense.
This case was investigated by the ICAC Task Force and Homeland Security Investigations, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the United States Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Assumption Parish Man Sentenced After Pleading Guilty to Drug and Gun ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that U. S. District Judge Nannette Jolivette Brown sentenced TOMMY WAYNE THOMPSON, age 32, of Labadieville, Louisiana, to 85-months imprisonment and four years of supervised release after THOMPSON pled guilty to conspiracy to distribute and possess with intent to distribute cocaine hydrochloride, distribution of 28 grams or more of cocaine base (“crack”), and being a felon in possession of a firearm.
According to court documents, between November 2012, and June 2013, Special Agents of the Drug Enforcement Administration, using undercover agents and confidential sources, made several purchases of cocaine hydrochloride and crack cocaine from THOMPSON in Labadieville, Louisiana. In May 2013, agents obtained a wiretap of THOMPSON’S telephone and intercepted several telephone calls between THOMPSON and another individual, with whom THOMPSON discussed obtaining and purchasing drugs. On June 6, 2013, agents executed search warrants at THOMPSON’S residence in Napoleonville, Louisiana and a second residence frequented by THOMPSON in Labadieville. In the Napoleonville residence, agents located and seized a Lorcin 9mm handgun in a cabinet in the residence. THOMPSON, who had previously been convicted of a felony, was prohibited from possessing a firearm. In that same residence, agents seized $68,617.00 in cash from a utility room. In the Labadieville residence, agents located and seized $5,500.00 in cash from the top of a refrigerator. In THOMPSON’S vehicle located at the residence, agents found and seized a clear plastic bag containing cocaine hydrochloride.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, and the Assumption Parish Sheriff’s Office Narcotics Division. Assistant United States Attorney André Jones was in charge of the prosecution.
Aruban Telecommunications Purchasing Official Sentenced to Prison in Money Laundering Conspiracy Involving Violations of the Foreign Corrupt Practices ActRead the Press Release
An Aruban official residing in Florida was sentenced to 36 months in prison today for money laundering charges in connection with his role in a scheme to arrange and receive corrupt payments to influence the awarding of contracts with an Aruban state-owned telecommunications corporation.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Assistant Special Agent in Charge Paul Keenan of the FBI’s Miami, Florida Field Office made the announcement.
Egbert Yvan Ferdinand Koolman, 49, a Dutch citizen residing in Miami, was sentenced by U.S. District Judge Federico A. Moreno of the Southern District of Florida, who also ordered Koolman to serve three years of supervised release following his prison sentence and to pay over $1.3 million in restitution. Koolman was an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), an instrumentality of the Aruban government. He pleaded guilty on April 13, before Judge Moreno to one count of conspiracy to commit money laundering.
According to admissions made as part of his plea agreement, between 2005 and 2016, Koolman operated a money laundering conspiracy from his position as Setar’s product manager. Koolman admitted that, as part of the scheme, he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the Foreign Corrupt Practices Act (FCPA). Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts. He received the corrupt payments via wire transfer from banks located in the United States, in cash during meetings in Miami and in Aruba, and by withdrawing cash in Aruba using a bank card that drew money from a U.S.-based bank account. In exchange for the more than $1.3 million in corrupt payments that he received, Koolman also admittedly provided favored vendors with Setar’s confidential information.
In connection with the scheme, Lawrence W. Parker, Jr., 42, of Miami, pleaded guilty on Dec. 28, 2017 before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate the FCPA and to commit wire fraud. He was sentenced on April 30, to serve 35 months in prison and was ordered to pay $701,750 in restitution.
The FBI’s International Corruption Unit in Miami is investigating the case. Trial Attorneys Jonathan Robell and Vanessa Snyder of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lois Foster-Steers of the Southern District of Florida are prosecuting the case. The Criminal Division’s Office of International Affairs, as well as law enforcement colleagues in Aruba and Panama, provided significant assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Amity Woman Sentenced to over 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Leslie Fryar, age 42, of Amity, Arkansas, was sentenced today to 87 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, during October 2016, investigators with the 18th East Judicial Drug Task Force, Arkansas State Police (ASP), and Department of Homeland Security began investigating Fryar, for the distribution of methamphetamine within Garland County, Arkansas. During March 2017, Arkansas State Police conducted a traffic stop on a vehicle and made contact with the driver, who was identified as Fryar. Fryar consented to a search of her vehicle and law enforcement found a plastic bag in the glove compartment which contained approximately 115.5 grams of suspected methamphetamine. Fryar was subsequently arrested. The suspected methamphetamine was submitted to the Arkansas State Crime Laboratory for analysis, and it was determined to be 109.94 grams of actual methamphetamine.
Fryar was indicted by a federal grand jury in April 2017 and entered a guilty plea in November 2017.
This case was investigated by the 18th East Judicial Drug Task Force, the Arkansas State Police, and the Department of Homeland Security. Assistant United States Attorney David Harris prosecuted the case for the United States.
Allentown Man Charged with Defrauding the Government, Theft of Government Funds, and Aggravated Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury indicted Julio Polanco Suarez, age 41, of Allentown, Pennsylvania, with conspiring to defraud the government, theft of government money, and aggravated identity theft. The indictment was returned on April 10, 2018, but remained under seal until Suarez’s apprehension.
According to United States Attorney David J. Freed, the indictment charges Suarez with conspiring to defraud the government between March 1, 2009 and September 20, 2016. The government money and identity theft charges are alleged to have occurred in Luzerne County, Pennsylvania, on September 20, 2016.
The indictment alleges that Suarez’s coconspirators stole individuals’ identities, used them to prepare and file false tax returns, and obtained the refund checks issued by the U.S. Treasury pursuant to those false tax returns. Suarez took possession of the refund checks, forged names and social security numbers on them, and cashed them at check cashing businesses in the Middle District of Pennsylvania. Suarez and his coconspirators are charged with cashing $522,613.80 in fraudulently obtained Treasury checks, and attempting to cash an additional $41,401.57 worth of checks.
The case was investigated by the Department of the Treasury’s Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and other federal and state law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious charges are up to 10 years of imprisonment. The aggravated identity theft charge carries a two-year consecutive mandatory minimum term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Albany Woman Pleads Guilty to Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Katie Bessette, age 29, of Albany, pled guilty today to conspiring to distribute cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of her guilty plea, Bessette admitted that on December 3, 2017, she distributed approximately 527 grams of cocaine to another person at a shopping center in Albany County.
Sentencing is scheduled for October 17, 2018 before Senior United States District Judge Gary L. Sharpe. Bessette faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Ahmed Abu Khatallah Sentenced to 22 Years in Prison for September 2012 Attack in Benghazi, LibyaRead the Press Release
WASHINGTON – Ahmed Abu Khatallah, aka Ahmed Mukatallah, 47, a Libyan national, was sentenced today to 22 years in prison on federal terrorism charges and other offenses stemming from the September 11, 2012 terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
Khatallah was captured in Libya on June 15, 2014, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. He was found guilty by a jury on November 28, 2017, following seven weeks of trial, of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic assault rifle during a crime of violence. He was sentenced by the Honorable Christopher R. Cooper.
According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September of 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry.
On the night of September 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured.
Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack.
Following the attack at the Mission, in the early hours of September 12, 2012, the violence continued at a nearby CIA annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded.
This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA, and the Department of State.
The case was prosecuted by Assistant U.S. Attorneys John Crabb, Jr., Michael C. DiLorenzo, and Julieanne Himelstein, all of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and former Assistant U.S. Attorney Opher Shweiki. Assistance was provided by Trial Attorney C. Alexandria Bogle of the Counterterrorism Section of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Kenneth Kohl and David Mudd of the U.S. Attorney’s Office for the District of Columbia.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Paralegal Specialists Rayneisha Booth and Jessica Moffatt, Legal Assistant Matthew Ruggiero, and Victim/Witness Services Coordinator Tonya Jones, all of the U.S. Attorney’s Office for the District of Columbia.
Ahmed Abu Khatallah Sentenced to 22 Years in Prison for September 2012 Attack in Benghazi, LibyaRead the Press Release
Ahmed Abu Khatallah, aka Ahmed Mukatallah, 47, a Libyan national, was sentenced today to 22 years in prison on federal terrorism charges and other offenses stemming from the Sept. 11, 2012 terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
Khatallah was captured in Libya on June 15, 2014, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. He was found guilty by a jury on Nov. 28, 2017, following seven weeks of trial, of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic assault rifle during a crime of violence.
According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September of 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry.
On the night of Sept. 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured.
Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack.
Following the attack at the Mission, in the early hours of Sept. 12, 2012, the violence continued at a nearby CIA annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded.
This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA and the Department of State.
The case was prosecuted by Assistant U.S. Attorneys John Crabb, Jr., Michael C. DiLorenzo, and Julieanne Himelstein of the District of Columbia, and former Assistant U.S. Attorney and Opher Shweiki. Assistance was provided by Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorneys Kenneth Kohl and David Mudd of the District of Columbia.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Paralegal Specialists Rayneisha Booth and Jessica Moffatt, Legal Assistant Matthew Ruggiero, and Victim/Witness Services Coordinator Tonya Jones, all of the District of Columbia.
Additional Charges Against KC Daycare Owner Previously Indicted for $556,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Additional charges were brought today against the owner of a Kansas City, Mo., day care center who, along with the center’s director, was previously indicted by a federal grand jury for a conspiracy to fraudulently receive as much as $556,000 in federal benefits.
Sharif Karie, 40, of Olathe, Kan., was charged with 15 counts of money laundering in a superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s 23-count superseding indictment also contains the original eight counts charged against Karie and Sheri Beamon, 47, of Kansas City, Mo.
Karie, a naturalized U.S. citizen from Somalia, is the owner and CEO of a day care center established under two businesses and two names for the same location, with the same key employees: KARIE Day Care Center, LLC, and Tima Child Care Center, LLC, at 1019 Admiral Blvd., Kansas City, Mo. Beamon is the director of KARIE/Tima Childcare Center.
The original indictment, which was returned by a federal grand jury on Jan. 12, 2017, was the result of a nationwide sweep that targeted childcare center fraud schemes. The national law enforcement operation in Missouri and six other states was the result of separate, but related, federal investigations into childcare center fraud that resulted in a loss of more than $1 million to the government.
The money-laundering charges relate to financial transactions in which Karie allegedly attempted to conceal the source of the proceeds of illegal activity.
The indictment alleges that Karie and Beamon participated in a conspiracy from October 2013 to June 2016 to submit false claims to the government. They allegedly billed a federal grant program to provide childcare services to low-income families for more hours and children than actually attended the daycare center. As much as $556,000 was fraudulently billed in connection with this scheme, the indictment says.
The Child Care and Development Fund provides daycare subsidies for low-income families where the parents are employed or engaged in job training. Providers contract with the Children’s Division of the Missouri Department of Health and Senior Services and submit claims electronically.
According to the indictment, pole cameras were installed near the day care center and captured footage of the entrances and exits of the building during two time periods in 2015 and in 2016. Timesheets and billing records were reviewed and compared to the children seen on the pole cameras being dropped off and picked up from the daycare center during that time. There were significant discrepancies, the indictment says, between the timesheets, claims submitted and the pole camera footage.
In addition to the conspiracy, Karie and Beamon are charged together in one count of theft of public money, three counts of aiding and abetting each other to commit aggravated identity theft and three counts of wire fraud. The indictment also contains a forfeiture allegation, which would require Karie and Beamon to forfeit to the government any property derived from the proceeds of the alleged scheme.
According to the indictment, the state conducted a compliance review of the daycare center’s billing for May 2014 and July 2014. The review found several attendance records missing. The review also identified 14 out of the 15 families with children at the center who had a parent employed there. With only two classrooms, the indictment says, it is improbable that parents were not caring for their own children. One of these parents reported that her job was contingent on having all of her children placed in care at KARIE Day Care Center so her child care would be paid by the state. This same 2014 audit found several discrepancies on the time sheets submitted to the state.
Subsequent unannounced inspections at KARIE Day Care Center found the facility in violation of state regulations pertaining to child care licensing rules, the indictment says, including health and safety, staff ratios and the maintaining of attendance records. Each of the inspections resulted in violation findings.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, Office of Investigations, the FBI, the Missouri Department of Social Services – Division of Legal Services Investigations and the Kansas City, Mo., Police Department.
Acting United States Attorney Congratulates Recent Appointment of Rita Lin to the San Francisco Superior Court BenchRead the Press Release
SAN FRANCISCO –Acting United States Attorney Alex G. Tse congratulated Rita Lin on her appointment to the San Francisco County Superior Court. Lin, of San Francisco, has served as an Assistant U.S. Attorney at the U.S. Attorney’s Office, Northern District of California since 2014. Earlier today, Governor Edmund G. Brown Jr. announced his decision to appoint Lin to the bench along with nine other California superior court appointments.
“Rita is an excellent AUSA and carried out the mission of the Justice Department to the highest degree. We commend the Governor’s selection today, and as an office we are proud that she may now continue her public service as a judge for Superior Court of San Francisco.” said Acting U.S. Attorney Tse.
7 Dublin Residents Charged with Federal Firearms, Drug Distribution and Related OffensesRead the Press Release
DUBLIN, GA: Federal indictments were unsealed today against 7 Dublin residents charged with federal firearms, drug distribution, and related offenses. The charges are the result of joint federal, state, and local efforts to reduce violent crime and drug activities in the Dublin area.
Increases in violence and drug activity in Dublin has become of serious concern to law enforcement and local residents alike.
To address the apparent increase in violent crime and drug activities, the Dublin Police Department (DPD) and the Federal Bureau of Investigation (FBI), began a joint investigation to identify and arrest the criminals operating in and around Dublin. Law enforcement used a number of investigative techniques to identify the targets, including undercover purchases of drugs and firearms and extensive surveillance.
In early June 2018, the federal grand jury for the Southern District of Georgia indicted 7 defendants identified as a result of this investigation. Those indictments initially were returned under seal.
On June 27, 2018, local, state, and federal law enforcement officers executed arrests warrants. Today, the indictments and federal warrants were unsealed, and all of the charged defendants made their initial appearance in federal court.
The federal charges and maximum penalties include:
- Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment. However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the minimum sentence is 15 years’ imprisonment and the maximum sentence is life imprisonment.
- Distribution of Controlled Substances, and Possession of Controlled Substances with Intent to Distribute, 21 U.S.C. § 841(a)(1), which typically carries a maximum sentence of 20 years’ imprisonment, but may carry increased minimum and maximum terms of imprisonment based on the quantity of controlled substances involved and the prior drug convictions of the defendant.
- Carrying a Firearm During and in Relation To a Crime of Violence or Drug Trafficking Crime, 18 U.S.C. § 924(c), which carries a potential sentence of not less than 5 years’ imprisonment, and up to life imprisonment, consecutive to any other sentence imposed.
During the investigation, law enforcement investigators seized firearms and ammunition. Some of the firearms seized during this investigation had previously been stolen. Additionally, investigators seized quantities of numerous controlled substances, including cocaine, crack cocaine, methamphetamine and marijuana.
The Dublin residents charged with federal crimes include:
Lamar Cook, age 34,
Trevolis Coney, age 29,
Shanetra Coney, age 26,
Alexander Johnson, age 31,
Aldrickus T. Cuyler, age 23,
Michael D. Stephens, age 40,
Octavia M. Stephens, age 42.
At least one of the defendants was in possession of gang related literature when arrested on the charges that are alleged in the pending federal indictment.
United States Attorney Bobby L. Christine said, “In concert with the FBI, state and local law enforcement partners including the Dublin Police Department and District Attorney Craig Fraser of the Dublin Judicial Circuit, the United States Attorney’s Office for the Southern District of Georgia has today struck a blow at the heart of violent street level criminal activity on behalf of the law abiding citizens of the greater Dublin community. This will not be the last action taken on this front as we together make this district safer!”
“We believe these arrests will have an immediate impact on the safety of the law abiding citizens of the Dublin community,” said J.C. Hacker, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Let this also be a warning to anyone else who believes they are above the law that the FBI, U.S. Attorney’s Office and the Dublin Police Department will continue working together to bring violent offenders to justice, and hold them accountable to stiff federal laws.”
DPD Chief Tim Chatman, said, “This is only the beginning. We will continue to collaborate with the FBI and federal prosecutors to rid our streets of this kind of behavior, gangs, drugs, etc. We thank the FBI and federal prosecutors for assisting us in this matter. We owe it to our citizens to look for better ways to make our streets safer.”
United States Attorney Christine emphasized that an indictment or criminal complaint is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Attorney General Jeff Sessions previously announced a recommitment of the United States Department of Justice to Project Safe Neighborhoods (PSN), a program dedicated to bringing together federal, state, and local law enforcement to reduce violent crime and make neighborhoods safer for everyone. The United States Attorney’s Office incorporated key components of the PSN strategy into the Dublin operation, including strong federal involvement, the cultivation of partnerships with local law enforcement and community stakeholders, targeted enforcement in those areas most affected by violent crime, and outreach efforts designed to prevent violent crime before it occurs.
Today's indictments arose out of a joint investigation led by the FBI and the Dublin Police Department, with assistance from the Laurens County Sheriff's Office, the District Attorney's Office for the Dublin Judicial Circuit, and the Georgia Department of Corrections K-9 Unit. Assistant United States Attorneys Patricia G. Rhodes, Henry W. Syms, and Tara M. Lyons are prosecuting these cases for the United States.
For any questions, please contact the U.S. Attorney’s Office at (912) 652-4422.
20 Members and Associates of Bronx Gang Charged in Manhattan Federal Court with Racketeering, Robbery, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced the unsealing today of a Superseding Indictment charging a total of 20 members and associates of a branch of the MacBallas street gang operating primarily in and around the Andrew Jackson and Melrose Houses in the Bronx with racketeering, narcotics, robbery, and firearms offenses. Two defendants are charged with the 2011 murder of Daniel Delgado.
A total of 12 defendants were taken into custody today; three other defendants were already in federal custody; and three are in state custody. Fourteen of the 20 defendants will be presented and arraigned before U.S. Magistrate Judge Kevin N. Fox later today. The case is assigned to U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants brought violence, fear, and drugs to the streets of New York. The people of this city will not stand for it, and neither will we. Thanks to the extraordinary work of the NYPD and DEA, the defendants will now face justice for their alleged crimes.”
NYPD Commissioner James P. O’Neill said: “Gang and crew activity, particularly in the Bronx as we’ve seen of late, is responsible for much of the violence in our city. This behavior will never be tolerated by New Yorkers, and I thank our federal partners at the DEA and the Southern District for strengthening the NYPD’s relentless efforts to rid our streets of these criminals.”
DEA Special Agent-in-Charge James J. Hunt said: “Gang violence begets violence and turns neighborhoods into battlegrounds. Law enforcement knows that shutting down gangs’ drug and gun networks lays a foundation for safer communities. Today’s arrests demonstrate that we are proactively safeguarding our communities by dismantling one gang at a time.”
As alleged in the Superseding Indictment unsealed today in Manhattan federal court and in other court papers[1]:
From 2011 through June 2018, in the Southern District of New York and elsewhere, TOSHNELLE FOSTER, a/k/a “Tosh,” CHRISTOPHER ASHE, a/k/a “Chips,” DAWAYNE BELL, JASON CHRISTIAN, a/k/a “Hungry,” NAVONE DOZIER, a/k/a “Dollaz,” KEVON GAITHER, a/k/a “KK,” CLARENCE GLASGO, a/k/a “Chuck,” XAVIER HOLMAN, a/k/a “Rico,” JAFARI JONES, a/k/a “JJ,” SEAN JONES, a/k/a “S Dot,” KEENAN MCFARLAND, AUSTIN MORRISHOW, a/k/a “Chuckey,” DEANDRE MORRISON, a/k/a “D Nice,” DEONTE MORRISON, a/k/a “Suki,” KEITH OUTLAW, a/k/a “Keefy,” LASYAH PALMER, a/k/a “Timbo,” JASON RAMOS, a/k/a “Chico,” FRANCISCO TORRES, a/k/a “Baby,” and BO WILLIAMS, a/k/a “Boski,” were all members and associates of the MacBallas street gang, whose territory was centered in and around the Andrew Jackson and Melrose housing projects in the Bronx, New York. In order to fund the gang, protect its territory, and promote its standing, members of the MacBallas engaged in, among other things, narcotics trafficking, robbery, and other acts of violence, including murder. MacBallas members sold heroin, crack cocaine, and marijuana in the gang’s territory, promoted their gang affiliation on social media sites like Facebook, possessed shared firearms, and engaged in shootings as part of their gang membership.
In particular, on August 1, 2011, DEANDRE MORRISON and NATHANIEL FLUDD murdered Daniel Delgado in order to maintain and increase their status in the MacBallas gang.
Members of the MacBallas gang also participated in a conspiracy to distribute narcotics in and around the MacBallas territory in the Bronx. In particular, CHRISTIAN, ASHE, DOZIER, GAITHER, JAFARI JONES, SEAN JONES, McFARLAND, MORRISHOW, DEONTE MORRISON, OUTLAW, PALMER, RAMOS, TORRES, and WILLIAMS participated in a conspiracy to distribute heroin, marijuana, and more than 280 grams of crack cocaine.
* * *
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD’s Bronx Violent Crimes Squad and the New York Field Division of the DEA.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Maurene Comey, and Christopher Clore are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering
Conspiracy
18 U.S.C. § 1962(d)
TOSHNELLE FOSTER, 26
CHRISTOPHER ASHE, 21
DAWAYNE BELL, 27
JASON CHRISTIAN, 37
NAVONE DOZIER, 23
KEVON GAITHER, 22
CLARENCE GLASGO, 23
XAVIER HOLMAN, 28
JAFARI JONES, 23
SEAN JONES, 28
KEENAN McFARLAND, 22
AUSTIN MORRISHOW, 20
DEANDRE MORRISON, 26
DEONTE MORRISON, 24
KEITH OUTLAW, 26
LASYAH PALMER, 29
JASON RAMOS, 23
FRANCISCO TORRES, 27
BO WILLIAMS, 27
20 years
2
Narcotics
Conspiracy
21 U.S.C. § 846
JASON CHRISTIAN
CHRISTOPHER ASHE
NAVONE DOZIER
KEVON GAITHER
JAFARI JONES
SEAN JONES
KEENAN McFARLAND
AUSTIN MORRISHOW
DEONTE MORRISON
KEITH OUTLAW
LASYAH PALMER
JASON RAMOS
FRANCISCO TORRES
BO WILLIAMS
Life in prison
Mandatory minimum of 10 years in prison
3
Murder in Aid of
Racketeering
18 U.S.C. § 1959(a)(1)
NATHANIEL FLUDD
DEANDRE MORRISON
Death, or Life in prison
4
Causing Death through use of a Firearm
18 U.S.C. § 924(j)
NATHANIEL FLUDD
DEANDRE MORRISON
Death, or Life in prison
5
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
SEAN JONES
NAVONE DOZIER
DAWAYNE BELL
CLARENCE GLASGO
20 years in prison
6
Firearms Offense
18 U.S.C. § 924(c)(1)(A)(iii) and 2
SEAN JONES
NAVONE DOZIER
DAWAYNE BELL
CLARENCE GLASGO
Life in prison
Mandatory minimum of 10 years in prison
7
Hobs Act Robbery
18 U.S.C. § 1951
JAFARI JONES
20 years in prison
8
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
JAFARI JONES
Life in prison
Mandatory minimum of 10 years in prison
9
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
KEITH OUTLAW
20 years in prison
10
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
KEITH OUTLAW
Life in prison
Mandatory minimum of 10 years in prison
11
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
DEONTE MORRISON
20 years in prison
12
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
DEONTE MORRISON
Life in prison
Mandatory minimum of 10 years in prison
13
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
TOSHNELLE FOSTER
20 years in prison
14
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
TOSHNELLE FOSTER
Life in prison
Mandatory minimum of 10 years in prison
15
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
KEITH OUTLAW
20 years in prison
16
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
XAVIER HOLMAN
20 years in prison
17
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
XAVIER HOLMAN
Life in prison
Mandatory minimum of 10 years in prison
18
Felon in Possession of Ammunition
18 U.S.C. § 922(g)
XAVIER HOLMAN
10 years in prison
19
Felon in Possession of Ammunition
18 U.S.C. § 922(g)
KEENAN McFARLAND
10 years in prison
20
Firearms Offense
18 U.S.C. § 924(c)(1)(A)(iii) and 2
JASON CHRISTIAN
KEENAN McFARLAND
AUSTIN MORRISHOW
LASYAH PALMER
JASON RAMOS
FRANCISCO TORRES
BO WILLIAMS
Life in prison
Mandatory minimum of 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Tuesday 26 June 2018
Wisconsin Man Sentenced for Passport FraudRead the Press Release
CHARLESTON, W. Va. -- An Indian national and Wisconsin resident who attempted to apply for a West Virginia birth certificate using a fake passport was sentenced yesterday to time served and three years of supervised release, announced United States Attorney Mike Stuart. Stuart commended the investigative work of the Diplomatic Security Service within the United States Department of State.
“Attempting to obtain or use false personal identification documents is a serious offense,” said United States Attorney Mike Stuart. “In turn, as a matter of national security, my Office will take cases like this very seriously and prosecute every case to the fullest extent possible.”
Mohammed Maaz, also known as Adam Rizk, 20, pleaded guilty on May 24, 2018, to passport fraud after he submitted a phony Canadian passport purporting to identify his mother to the West Virginia Department of Health and Human Resources in February 2017. He was attempting to obtain a birth certificate that he could then use to fraudulently secure a United States passport. Maaz had been detained since his arrest on March 5, 2018.
Assistant United States Attorney Gabriele Wohl handled the prosecution. The sentence was imposed by United States District Judge Joseph R. Goodwin.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Westfield Woman Arrested, Charged with Embezzling Thousands of Dollars from Health Care AgencyRead 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 Alicia Raynor, 40, of Westfield, NY, was arrested and charged by criminal complaint with embezzlement. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that according to the complaint, in 2012, the defendant was hired by Compassion at Home, Inc. as the Business Manager. Between November 2012 and August 2015, the defendant had access to the payroll processing service of Compassion at Home, which was used to deposit pay directly into employee bank accounts. Raynor used the service to divert funds from the company's bank account to accounts under her control. In August 2015, the President of the company terminated the defendant for using company funds to pay personal expenses.
In the middle of 2016, the President noticed that, although Raynor was no longer employed by Compassion at Home and was no longer entitled to any payments from the company, numerous wire transfers were being sent from a company bank account to the defendant. Realizing that Raynor had maintained access to the payroll processing service, the President eliminated the defendant's access to the payment processing service, which ceased the wire transfers to Raynor.
Between September 24, 2015, and June 30, 2016, Alicia Raynor received 139 electronic funds transfers from the company bank account into bank accounts under her control. The transfers involved variations of the defendant's name, bank names, credit card names, and names of employees of Compassion at Home. Raynor is accused of embezzling a total of $227,000.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
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.
Virginia man admits to cigarette smuggling chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Udayappan Subramanian, of Haymarket, Virginia has admitted to unlawful cigarette smuggling, United States Attorney Bill Powell announced today.
Subramanian, age 41, pled guilty to one count of “Trafficking of Contraband Cigarettes.” He transporting large quantities of contraband cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Subramanian faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Michael Stein is prosecuting the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Alcohol and Tobacco Tax and Trade Bureau, and the West Virginia State Police led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Virginia Man Pleads Guilty to Producing Images of Himself Sexually Abusing a ChildRead the Press Release
A Centreville, Virginia man pleaded guilty today to two counts of producing child pornography, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office, and Fairfax County Chief of Police Colonel Edwin C. Roessler Jr.
Kenneth Wayne Burk, 37, pleaded guilty before U.S. District Court Judge Leonie M. Brinkema of the Eastern District of Virginia. According to admissions made in connection with his plea, law enforcement began investigating Burk after a minor accused him of sexual abuse. In 2017, law enforcement seized electronic devices from Burk’s home in Centreville, and a forensic examination of these devices revealed numerous images of Burk sexually abusing the minor between 2013 and 2017.
Burk is scheduled to be sentenced on Sept. 14.
The case was investigated by the FBI and the Fairfax County Police Department. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Reaches Settlement with Two Suburban Hospitals to Ensure Effective Communication with Deaf and Hard-of-Hearing PatientsRead the Press Release
CHICAGO — The U.S. Attorney’s Office today announced a settlement agreement with two west suburban hospitals to ensure effective communication with deaf and hard-of-hearing patients, pursuant to the Americans with Disabilities Act.
The agreement requires the hospitals – Adventist La Grange Memorial Hospital and Adventist Hinsdale Hospital – to provide appropriate auxiliary aids and services, including qualified American Sign Language interpreters, to ensure effective communication with deaf and hard-of-hearing patients and their companions. Per the terms of the agreement, the hospitals will provide mandatory training to their employees on how to address the needs of deaf and hard-of-hearing patients. The hospitals will also designate at least one employee as an ADA administrator, who will coordinate immediate access to the proper services – free of charge to the patient.
The settlement amicably resolves a complaint filed with the Department of Justice by a deaf patient who alleged that personnel at the hospitals discriminated against him by failing to provide the proper services under the ADA. The hospitals will pay $10,000 in damages to the complainant. Although the United States and the complainant agreed not to institute a civil lawsuit, the United States may review compliance with the settlement at any time, and reserves the right to file suit if it believes any portion has been violated.
The settlement, which became effective Monday, was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. The United States is represented by Assistant U.S. Attorneys Sarah J. North and Patrick Johnson.
The ADA prohibits public accommodations, including hospitals, from discriminating on the basis of disability in the full and equal enjoyment of their goods and services. The complainant alleged that the hospitals failed, during two visits in 2015, to provide sign language interpretive services in a manner that ensured effective communication. In both visits, the complainant said he requested an interpreter so he could fully communicate with medical personnel, but his requests were denied and the auxiliary aids and services that were provided did not ensure effective communication.
The agreement does not represent an admission of liability by the hospitals, which are part of Adventist Midwest Health, a system of health providers serving the western suburbs of Chicago and a component of Adventist Health Systems. Adventist Midwest Health fully cooperated in the U.S. Attorney’s Office’s investigation of this matter.
To learn more about the ADA and other laws protecting the rights of the deaf and hard of hearing, log on to www.ada.gov or call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD).
Two Men Responsible for ‘Bladed Bandit’ Robbery Spree Plead Guilty to Multiple Armed Robberies across Southern CaliforniaRead the Press Release
SANTA ANA, California – Two men who participated in a series of armed bank robberies attributed to the “Bladed Bandit” because one of the robbers brandished a large knife each have pleaded guilty in federal court to multiple counts of armed robbery.
Chad Dupape, 29, of Fountain Valley, and Vincent Edward Wilson, 53, of Long Beach, pleaded guilty Monday to committing the robberies.
During a hearing in United States District Court, Dupape admitted to committing four armed bank robberies and attempted bank robberies:
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a January 2 robbery of a Chase Bank branch in Seal Beach in which he obtained more than $21,000;
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a January 16 attempted robbery of a Farmers & Merchants Bank branch in Long Beach;
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a January 16 attempted robbery of a Wells Fargo Bank branch in Fountain Valley; and
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a January 18 robbery of a U.S. Bank branch in Fountain Valley.
When he pleaded guilty on Monday, Dupape admitted that during one of those robberies, he had displayed a knife, and during another, he had shown a black handgun to the teller.
Wilson pleaded guilty to the Chase Bank and U.S. Bank robberies, admitting that he had driven Dupape to both of those robberies and that he had acted as the look-out for the Chase Bank robbery.
Each of the armed bank robbery charges carries a statutory maximum penalty of 25 years in federal prison, meaning that Dupape could be sentenced to as much as 100 years in prison.
The two men pleaded guilty before United States District Judge David O. Carter, is scheduled to sentence Dupape on August 20 and Wilson on November 10.
The investigation into the string of robberies by the “Bladed Bandits” was conducted by the Orange County Bank Robbery Apprehension Team (BRAT), which includes special agents from the Federal Bureau of Investigation and deputies with the Orange County Sheriff’s Department. Officers from the Long Beach Police Department, the Seal Beach Police Department, and the Los Angeles County Sheriff’s Department provided substantial assistance during the investigation.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
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Two Maryland residents found guilty of heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kelvin Johnson, of Baltimore, Maryland and Sykebia Stewart, of Dundalk, Maryland were found guilty today by a federal jury on heroin distribution charges, United States Attorney Bill Powell announced.
After four hours of deliberation, a jury found Johnson, age 25, and Stewart, age 25, guilty on all counts. Johnson was found guilty of one count of “Distribution of Heroin,” and one count of “Aiding and Abetting the Distribution of Heroin Resulting in Death,” and Stewart is guilty of one count of “Aiding and Abetting the Distribution of Heroin Resulting in Death.” Johnson and Stewart distributed heroin in May 2016 in Berkeley County, resulting in death.
“I want to thank the jury for their service. This case once again tells the tragic story involving heroin and death. The story is told all too often. The prosecution team worked very hard, the jury did its duty, and the court will ultimately sentence these defendants. While neither the verdict nor sentence will bring the victims back, justice will be served. We will continue to aggressively prosecute all those who engage in deadly criminal conduct in our district,” said Powell.
Johnson faces up to 20 years incarceration and a fine of up to $1,000,000 for the “Distribution of Heroin” conviction. Johnson and Stewart each face incarceration of not less than twenty years or more than life, and a fine of up to $1,000,000 for the “Aiding and Abetting the Distribution of Heroin Resulting in Death” conviction. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Anna Z. Krasinski and Traci M. Cook prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force investigated.
Chief U.S. District Judge Gina M. Groh presided.
Two Individuals Charged for being Found in the Country after Prior RemovalRead the Press Release
The United States Attorney’s Office and the Swanton Sector of the United States Border Patrol announce that, in the early morning hours of June 23, 2018, Border Patrol agents arrested two adult individuals for being found in the United States, having been previously removed from the country. Lucio Hernandez-Martinez, an alien of Mexican citizenship, and Manuel Antonio Flores-Martinez, an alien of Peruvian citizenship, had their initial appearances in federal court in Burlington yesterday before The Honorable John M. Conroy, United States Magistrate Judge for the District of Vermont.
According to the criminal complaint, in the early morning of June 23, Border Patrol agents received a report of possible illegal activity in Norton, Vermont, in an area known for unlawful cross border activity. Agents responded to the area and found the two defendants hiding in a ditch. Both attempted to flee when they observed border patrol agents, and both were later apprehended. Investigation revealed that both men were aliens without permission to enter or remain in the U.S. Hernendez-Martinez was ordered removed on three previous occasions. Flores-Martinez was ordered removed on two prior occasions.
United States Attorney Christina E. Nolan commended Border Patrol for its efficient and effective handling of this matter, and for its diligence in protecting the integrity of Vermont’s northern border.
“I commend the agents involved in this arrest,” said Beecher Falls Station Patrol Agent in Charge Paul Kuhn. “Through their vigilance they were able to interdict two aliens, who had previously been removed, from furthering their illegal entry into the United States.”
The United States Attorney emphasizes that the charges are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
The prosecutor in this case is Assistant U.S. Attorney Wendy Fuller. Lucio Hernandez-Martinez is represented by Frank J. Twarog. Manuel Antonio Flores-Martinez is represented by Maryanne E. Kampmann.
Two Honduran National Men Sentenced for Illegally Reentering the United StatesRead the Press Release
Both defendants had prior misdemeanor convictions for illegally entering the United States
BECKLEY, W.Va. – Jeyson Francisco Sanchez-Castillo and Olvin Alexis Ramos-Diaz both were sentenced to time served for the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Sanchez-Castillo, 19, of and Ramos-Diaz, 21, both of Honduras, pleaded guilty on May 2, 2018 and had been in custody since February 28, 2018—nearly four months of federal incarceration. United States District Judge Irene C. Berger remanded both men for deportation proceedings as immigration authorities had placed a detainer on them. United States Attorney Mike Stuart praised the work of Immigration and Customs Enforcement (ICE).
“The revolving door must end,” said United States Attorney Mike Stuart. “If we want a country, we must have a border. If people want to come here, they should get in line and enter legally. Otherwise, they can expect to be prosecuted and deported in every case.”
On February 28, 2018, both Sanchez-Castillo and Ramos-Diaz were arrested by ICE agents, who were conducting targeted law enforcement operations in the Beckley area. Agents observed defendants leaving a home on their way to work to at a restaurant in Beckley, West Virginia. After stopping the cars and confirming their identity, both men admitted they were not in the United States legally and were placed under arrest. ICE agents submitted Sanchez-Castillo’s and Ramos-Diaz’s fingerprints, forensically matching both of them to prior removals from the United States in 2017. They both also forensically matched Texas misdemeanor convictions of Illegal Entry into the United States. After being deported, Sanchez-Castillo and Ramos-Diaz both illegally reentered the United States without lawful permission from the Secretary of Homeland Security. Sanchez-Castillo and Ramos-Diaz are citizens of Honduras.
Assistant United States Attorney Erik S. Goes handled both prosecutions.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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