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Thursday 21 June 2018
PTS Prisoner Transport Officer Indicted for Sexually Assaulting Inmate and Possessing a Firearm in Furtherance of Sexual AssaultRead the Press Release
James Baldinger, 51, of Minnesota, and a transport officer with the Prisoner Transportation Services of America (PTS), appeared in federal court today in Duluth, Minnesota, after a federal grand jury sitting in Albuquerque, New Mexico, indicted him on charges related to his sexual assaults of a female in his custody, and using his firearm in furtherance of those assaults.
Counts One and Two of the indictment charge Baldinger with committing civil rights offenses that resulted in bodily injury, including aggravated sexual abuse and the use of a deadly weapon. Count Three charges Baldinger with knowingly possessing a firearm in furtherance of these crimes of violence.
Baldinger faces a maximum of life in prison if convicted of the crimes charged, and a mandatory minimum of five years in prison for possession of the firearm.
An indictment is merely a formal accusation of criminal conduct, and Baldinger is presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the FBI in cooperation with the New Mexico State Police. It is being prosecuted by Assistant United States Attorney Shaheen Torgoley of the District of New Mexico, and Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice.
PTS Prisoner Transport Officer Indicted for Sexually Assaulting Inmate and Possessing Firearm in Furtherance of Sexual AssaultRead the Press Release
ALBUQUERQUE – James Baldinger, 51, of Minnesota, and a transport officer with the Prisoner Transportation Services of America (PTS), appeared in federal court today in Duluth, Minn., after a federal grand jury sitting in Albuquerque, N.M., indicted him on charges related to his sexual assaults of a female in his custody, and using his firearm in furtherance of those assaults. Counts One and Two of the indictment charge Baldinger with committing civil rights offenses that resulted in bodily injury, including aggravated sexual abuse and the use of a deadly weapon. Count Three charges Baldinger with knowingly possessing a firearm in furtherance of these crimes of violence.
Baldinger faces a maximum of life in prison if convicted of the crimes charged, and a mandatory minimum of five years in prison for possession of the firearm.
An indictment is merely a formal accusation of criminal conduct, and Baldinger is presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the FBI in cooperation with the New Mexico State Police. It is being prosecuted by Assistant U.S. Attorney Shaheen Torgoley of the District of New Mexico, and Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice.
Oklahoma City Pair Charged with Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – A federal grand jury has charged GERMAINE COULTER, SR., 45, and ELIZABETH ANDRADE, 35, both of Oklahoma City, with child sex trafficking and conspiracy to sex traffic a child, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On June 20, 2018, the grand jury returned a three-count indictment against Coulter, a/k/a "Slim," and Andrade, a/k/a "Beth," "Bobbi Monroe," "Tiffany," and "Porsche." Count One charges both Coulter and Andrade with conspiracy to sex traffic a child. Count Two charges Coulter with the substantive offense of child sex trafficking, and Count Three charges Andrade with the same offense.
According to the indictment, in January and February 2018, Coulter and Andrade recruited a female under the age of 18, referred to in the indictment as Jane Doe, to perform commercial sex work for Coulter. Coulter allegedly told her she needed to make $1,000.00 per day, all of which would go to him, and he would buy her a car, get her an apartment, and get her business cards after she turned 18, if she was successful. He directed Jane Doe to call him "Daddy," according to the indictment. Coulter and Andrade are alleged to have sent photos of Jane Doe to prospective customers, and Andrade allegedly began taking Doe with her on commercial sex appointments, where Jane Doe performed sex acts for money. The indictment further alleges that between January 27, 2018, and February 19, 2018, Coulter and Andrade trained and directed Doe how to interact and perform sex acts with customers and how to convince her mother to let her stay with them. Coulter is also alleged to have communicated with Doe’s mother to get permission for Doe to stay with them and to travel to Kansas.
If convicted on Count One, Coulter and Andrade face up to life imprisonment. If convicted on Count Two or Three, Coulter and Andrade will face mandatory minimum sentences of ten years, with the possibility of up to life in prison. If convicted on any count, Coulter or Andrade would also face supervised release after incarceration of at least five years and up to life, in addition to fines of up to $250,000 per count, mandatory restitution, and $5,100 special assessments per count.
This case is the result of an investigation by the Federal Bureau of Investigation and the Oklahoma City Police Department, with assistance from the Oklahoma County District Attorney’s Office. Assistant U.S. Attorneys K. McKenzie Anderson and Jessica Perry are prosecuting the case.
The public is reminded these charges are merely accusations and that Coulter and Andrade are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Nigerian Leader of Nationwide Identity Theft and IRS Tax Fraud Scheme Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore. – On Wednesday, June 20, 2018, Emmanuel Oluwatosin Kazeem, 35, of Bowie, Maryland and Nigeria, was sentenced to 15 years in prison for leading a vast conspiracy to steal identities and file fraudulent tax returns. He was ordered to pay more than $12 million in restitution and will be subject to deportation when released from prison.
“Emmanuel Kazeem orchestrated one of the largest tax fraud schemes in our nation’s history. The complexity of this case and the incredible effort by law enforcement to bring those responsible to justice cannot be understated,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I want to remind everyone that this case began when vigilant Oregonians notified the IRS when fraudulently tax returns were filed in their names. It only takes one tip to make a difference and bring down a complex criminal organization.”
“IRS-CI vigorously investigates criminals who band together to take advantage of our tax system. Today’s sentencing of Emmanuel Kazeem sends a strong message to those who seek to rob U.S. citizens of their hard earned tax dollars,” said Acting Special Agent in Charge, Brian Payne.
According to court documents and evidence presented at trial, in May 2013, a victim in Medford, Oregon notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s personal identifying information (PII) including social security numbers and dates of birth.
An IRS investigation led to search warrants of residences in Illinois, Maryland, and Georgia and to numerous email and instant messenger accounts used by Kazeem and other co-conspirators. At a Chicago residence, agents seized approximately 150 prepaid debit cards and $50,000 in money orders. In Maryland and Georgia, agents seized more than 50 electronic devices, 40 money orders in amounts exceeding $29,000, $14,000 in cash and numerous prepaid debit cards containing over $12,000 in fraudulent tax refunds. The search warrants helped agents identify Kazeem as the leader and mastermind of the scheme.
The scheme resulted in the conspirators possessing stolen PII of more than 259,000 victims. Kazeem purchased more than 91,000 identities from a Vietnamese hacker that originated from an Oregon company’s private database. The company provided pre-employment and volunteer background checks for thousands of clients. Kazeem divided the identities into batches and shared them with other co-conspirators. They were in turn used to file fraudulent tax returns between 2012 and 2015.
In carrying out the scheme, Kazeem trained and directed his co-conspirators including his younger brother, Michael Oluwasegun Kazeem, to use stolen PII to obtain thousands of electronic filing PINs to bypass IRS authentication procedures. They acquired over 19,500 E-File PINS during the course of the conspiracy. Kazeem also used taxpayers’ PII to gain unauthorized access into many taxpayers’ IRS transcripts, which contain sensitive personal financial information. Conspirators also used pre-paid debit cards with the victims’ stolen identities to receive direct electronic tax refund deposits from the IRS.
In total, Kazeem was linked to 10,139 fraudulent federal tax returns attempting to get over $91 million dollars in refunds and successfully receiving over $11.6 million dollars. Refunds were withdrawn from the debit cards and at least 2,000 wire transfers totaling over $2.1 million dollars were sent to Nigeria. Over 700 of those wire transfers, totaling more than $690,000, were directly linked to Kazeem.
Kazeem used the conspiracy windfall to place a nearly $200,000 down payment on a newly constructed house and to purchase a $175,000 townhouse, both in Maryland. His average monthly credit card payment during 2012 to 2015 was over $8,300. Kazeem also attempted to use his ill-gotten funds to develop a $6 million dollar, 4-star hotel in Lagos, Nigeria.
In May 2015, Kazeem transferred the townhouse to his sister in Nigeria for $10 and included her on the deed to his Maryland residence, also for $10. He was arrested one day later.
IRS agents determined Kazeem had no verifiable sources of income between 2012 and 2015. In order to disguise the source of the fraudulent refunds, he listed sources of income from bogus employers in reports to both the IRS and immigration authorities. After entering the United States on a student visa from Nigeria, Kazeem engaged in marriage fraud to evade immigration laws. In April 2014, while leading the tax fraud scheme, he filed for naturalization under the Immigration and Nationality Act. Based on the false information provided to U.S. Citizenship and Immigration Services, he was approved. The same year he personally participated in filing over 1,445 fraudulent federal tax returns and received over $3,385,000 from returns paid out by the IRS.
Kazeem was convicted by a federal jury on 19 counts, including mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud, in Medford on August 4, 2017. Five other co-conspirators, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo, Lateef Animawun, Oluwamuyiwa Olawoye and Michael Kazeem, previously received federal prison sentences for their roles in the same conspiracy.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations with support provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit. The case is being prosecuted by Byron Chatfield and Gavin Bruce, Assistant U.S. Attorneys for the District of Oregon.
Newly Unsealed Federal Indictment Charges Iranian Businessman with Illegally Exporting Nuclear Nonproliferation-Controlled Materials from IllinoisRead the Press Release
CHICAGO — An Iranian businessman schemed with the owner of a European company to illegally export nuclear nonproliferation-controlled materials to Iran from Illinois, according to a newly unsealed federal indictment.
SAEED VALADBAIGI, also known as “Saeed Valad” and “Saeed Baigi,” plotted in 2011 to illegally export U.S.-origin 7075 T6 Aluminum tubing from Illinois to Iran by way of Belgium and Malaysia, the indictment states. The size and type of the aluminum was used in the missile and aerospace industry and was subject to U.S. regulations for nuclear nonproliferation purposes, the indictment states. Valadbaigi’s smuggling plan was part of an effort to evade U.S. laws and export-control regulations, according to the charges.
The eight-count indictment was returned in 2016 in U.S. District Court in Chicago and ordered unsealed Wednesday. It charges Valadbaigi with three counts of wire fraud, two counts of attempting to violate the International Emergency Economic Powers Act, one count of conspiracy to defraud the United States, one count of illegally exporting articles from the United States, and one count of making false statements on a U.S. export form.
Valadbaigi, 56, of Iran, is considered a fugitive. A warrant for his arrest was issued in 2016 and remains outstanding.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office. The government is represented by Assistant U.S. Attorney Rajnath Laud.
In addition to the 7075 Aluminum tubing, the newly unsealed indictment accuses Valadbaigi of illegally exporting titanium sheets from a company in northern Illinois, to Iran, by way of the Republic of Georgia, the United Arab Emirates and Malaysia. At the time of that deal in 2009, Valadbaigi controlled various companies in all three of those countries, the indictment states. The charges further allege that Valadbaigi in 2012 ordered acrylic sheets from a company in Connecticut, and falsely claimed that the sheets would be used only in Hong Kong. He later allegedly arranged for the acrylic sheets to be transshipped to Iran.
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 and attempting to violate the IEEPA carries a maximum sentence of 20 years in prison. The illegal export charge is punishable by up to ten years in prison, while the conspiracy and false statement counts are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The charges against Valadbaigi are part of an investigation that previously resulted in the conviction of NICHOLAS KAIGA, who managed and later owned the Belgium company that did business with Valadbaigi. Kaiga admitted in a plea agreement that he knew the 7075 Aluminum was subject to U.S. export controls and that it could not be exported to Malaysia without a license from the U.S. Department of Commerce, which neither he nor Valadbaigi possessed. Kaiga admitted that he nonetheless used his company, Industrial Metals and Commodities, as an intermediary to export the 7075 Aluminum tubing from a company in northern Illinois, to Belgium and then to Malaysia, on behalf of Valadbaigi. Kaiga pleaded guilty to violating U.S. export-control regulations and was sentenced in 2015 to two years and three months in a U.S. prison.
New Port Richey Man Sentenced to 12 Years for Child Pornography CrimesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Brian Scott Ellis (50, New Port Richey) to 12 years in federal prison for possessing and attempting to produce child pornography. He pleaded guilty on February 28, 2018.
According to court documents, Ellis had amassed a collection of thousands of child pornography images and videos. He distributed child pornography as part of internet “send-to-get” groups, and attempted to film explicit videos of an unrelated child.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Frank Murray.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.justice.gov/psc.
New Jersey Man Charged in ‘Bait-and-Switch’ Scheme with Canadian CoinsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that James Franklin Hill, 55, of South Orange, New Jersey, was charged today by indictment with one count of wire fraud in connection with a scheme that involved a classic “bait-and-switch” scam with a set of 24 Canadian Gold Maple Leaf coins.
According to the indictment, Hill allegedly responded to Craigslist advertisements posted by coin dealers and collectors located in Pennsylvania, Delaware, New Jersey, New York, North Carolina, Florida, Tennessee, Ohio, Illinois, Wisconsin, Arizona, and California. The indictment alleges that Hill presented the coin dealers and collectors with the opportunity to purchase a set of 24 Canadian Gold Maple Leaf coins at prices ranging from $19,000 to $30,000. Hill allegedly showed a genuine set of coins to the purchasers, and then switched the genuine set of coins with a fake set before the transactions were concluded. In November 2016, Hill allegedly sent text and electronic messages to a purchaser in Oxford, Pennsylvania before selling the fraudulent coins to the purchaser. The indictment alleges that between 2010 and 2017, Hill allegedly defrauded his coin purchasers of more than $250,000.
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Oxford Borough (Pennsylvania) Police Department, and other law enforcement agencies in Delaware, New Jersey, New York, North Carolina, Florida, Tennessee, Ohio, Illinois, Wisconsin, Arizona, and California. Based on the evidence, authorities believe there may be additional victims who have not yet been identified. Anyone with information about this matter is encouraged to contact the Federal Bureau of Investigation in Newtown Square, PA at (610) 353-4500. Callers may remain anonymous.
The case is being prosecuted by Assistant United States Attorney Anita Eve.
Mozambique National Sentenced for Visa Fraud in East TexasRead the Press Release
PLANO, Texas – A 37-year-old Mozambique national residing in the Dallas area has been sentenced to prison for federal immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Nelia Angelina Mulembwe pleaded guilty on Feb. 20, 2018 to fraud and misuse of visas, permits and other documents and was sentenced to six months in federal prison by U.S. District Judge Marcia Crone on June 20, 2018.
According to information presented in court, in June 2017, law enforcement officers received a tip that a Mozambique national was being held captive in a Collin County apartment. An investigation revealed that the victim had worked for Mulembwe as a nanny and housekeeper in Mozambique. In 2015, Mulembwe applied for a visa for the victim to accompany her and her children to the United States. Mulembwe falsely represented that the victim was a student and would be coming to the United States for a month-long visit. However, after arriving in the United States in October 2015, the victim stayed in Mulembwe’s apartment where she slept on a mattress on the floor in the children’s room and worked constantly with no time off until she was rescued by federal agents in June 2017. During this time, the victim’s family in Mozambique was paid the equivalent of approximately $70 a month, but the victim received no compensation for her services. Mulembwe was also ordered to pay restitution of $108,699.25 to her victim, which represents fair wages the victim should have received.
“Labor trafficking is modern day slavery,” said U.S. Attorney Brown. “Cases involving trafficking of people for the sex trade seem to get more attention, but these types of cases, where people are forced to work for little or no pay, are becoming more common. The cases involve the denial of basic human rights, and the type of people who are victims are particularly vulnerable. Federal law enforcement will continue to investigate and prosecute these cases, and we hope that the public will report situations like this when anyone becomes aware of them.”
This case was investigated by the Department of Labor-Office of Inspector General, the U.S. Department of State’s Diplomatic Security Service (DSS), and the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorney Marisa Miller.
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Morgantown woman admits to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lori Murphy, of Morgantown, West Virginia, has admitted to heroin trafficking, United States Attorney Bill Powell announced.
Murphy, age 29, pled guilty to one count of “Distribution of Heroin within 1000 feet of Protected Location.” Murphy admitted to distributing heroin near North Elementary School in April of 2017 in Monongalia County.
Murphy faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Missoula Sex Trafficker Sentenced to 30 Years in PrisonRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Terrance Tyrell Edwards was sentenced to 360 months in prison, lifetime supervised release, and a $1,000 special assessment. Edwards was also ordered to pay $3,370 in restitution to one of his victims. U.S. District Judge Susan P. Watters presided over the hearing.
A jury convicted Edwards in February of three counts of Sex Trafficking by Force, Fraud, or Coercion; three counts of Transportation of a Minor with Intent to Engage in Prostitution; one count of Obstruction of a Sex Trafficking Investigation; one count of Transportation of a Person with Intent to Engage in Criminal Sexual Activity; one count of Distribution of Marijuana to Person Under 21 Years of Age; and one count of Tampering with a Witness, Victim, or Informant. The jury also convicted co-defendant Francine “Joanna” Granados of one count of Tampering with a Witness, Victim, or Informant.
Beginning in March of 2016, shortly after he was released from prison on prostitution charges, Edwards began forcing his first female victim in this case to engage in commercial sex in Missoula, Montana. Edwards physically and emotionally abused her and threatened her life and the lives of her family members. Shortly after this victim escaped, Edwards transported another victim from Missoula to Billings and forced her to work in commercial sex. Edwards sexually assaulted her and threatened her with violence if she ever spoke about what they had done in Billings. In September of 2016, Edwards forced a third victim to engage in commercial sex in Missoula. Edwards transported this victim throughout the state of Montana and to Utah, where he forced her to walk the street for commercial sex customers. Edwards physically assaulted her, emotionally abused her, and threatened her and her child. Edwards kept all of the money from the commercial sex encounters.
Also in September of 2016, Edwards transported three minor girls from North Dakota to Montana to work in commercial sex. On their way to Billings, Edwards supplied them with marijuana. Edwards was arrested in Billings shortly after arriving with the girls.
Immediately after Edwards was arrested, he and co-defendant Granados began trying to influence the testimony of various victims. In recorded jail calls, Edwards and Granados discussed how Granados would reach out to one of the minor victim’s family members and how Granados had used a relative’s Facebook account to communicate directly with that minor victim. Edwards himself contacted a different minor victim in an attempt to prevent her from cooperating with law enforcement. Despite warnings from the FBI that she was witness tampering, Granados, at Edwards’s direction, also sent multiple Facebook messages to one of Edwards’s sex trafficking victims attempting to coerce her to recant her statements to law enforcement. In its sentencing memorandum filed with the Court, the United States Attorney’s Office noted Edwards’s extensive criminal history, including a prior conviction for promotion of prostitution, and seriousness of the offenses for which he was convicted here.
Also today Granados was sentenced to 24 months, 3 supervised release, and a $100 special assessment. As noted above, she assisted Edwards in attempting to tamper with multiple witnesses in connection with the investigation.
The case was prosecuted by Assistant U.S. Attorneys Zeno Baucus and Cyndee Peterson and was investigated by the Federal Bureau of Investigation, the Montana Department of Criminal Investigations, the Missoula Police Department, and the Billings Police Department.
Mexican Man Pleads Guilty to Illegally Entering the U.S. After RemovalRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Fausto Rivera-Rivera, 37, a citizen of Mexico, pled guilty today in U.S. District Court to illegally entering the United States after being removed or deported.
According to court records, Rivera-Rivera unlawfully entered the United States, was ordered removed to Mexico in 2013, and left. He did not apply for permission to reenter the United States. On April 27, 2018, he was arrested in Clinton, Maine, after a Clinton Police officer stopped a vehicle in which he was a passenger. He admitted to U.S. Border Patrol that he reentered the United States in Arizona in 2015 without being inspected and without legal authority.
Rivera-Rivera faces up to two years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. Upon completion of any sentenced imposed, he faces deportation to Mexico.
The investigation was conducted by the U.S. Border Patrol and the Clinton Police Department.
Mesquite, Texas Man Sentenced to 240 Months in Federal PrisonRead the Press Release
DALLAS— Manuel Medina-Valdes, 25, of Mesquite, Texas, was sentenced Friday, June 15, 2018, by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison for his role in the distribution of methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Medina-Valdes has been in custody since his arrest in December 2016. He pleaded guilty in June 2017 to one count of possession with intent to distribute methamphetamine.
According to the plea agreement factual resume filed in the case, on December 13, 2016, Drug Enforcement Administration agents executed a federal search warrant at Medina-Valdes’s residence in Mesquite, Texas. Agents seized two sets of keys on a nightstand, numerous detailed drug ledgers, and an air respirator mask. The keys seized from Medina-Valdes’s residence unlocked the home’s front door and a guest room’s closet door. After unlocking the closet door, agents found approximately seven kilograms of methamphetamine, miscellaneous methamphetamine lab re-crystallization equipment, drug packaging, approximately $15,000, five handguns and ammunition. Additionally, agents located a Mexican passport for Medina-Valdes and multiple Home Depot and Walmart receipts for acetone, propane, and plastic containers, which are used recrystallizing methamphetamine.
The Drug Enforcement Administration led the investigation, with assistance from the Rockwall Police Department, Garland Police Department, and Allen Police Department. Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.
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Massachusetts Man Pleads Guilty to Sexual Exploitation of a Child and Possession of Child PornographyRead the Press Release
BINGHAMTON, NEW YORK - Michael McCann, age 31, of Haverhill, Massachusetts, and formerly of Ilion, New York, pled guilty today to sexual exploitation of a minor and possession of child pornography. 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 (FBI).
As part of his guilty plea, McCann admitted to taking and distributing a photograph of himself engaged in sexual conduct with a 3-year old child, as well as possessing videos and still images depicting child pornography.
McCann, who is held without bail, will be sentenced on October 22, 2018 and faces up to fifty (50) years in prison, a mandatory minimum term of imprisonment of fifteen (15) years, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least five (5) 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 Syracuse Mid-State Child Exploitation Task Force, a federal task force that investigates cases involving the sexual exploitation of children. The task force consists of FBI Agents and New York State Police Investigators. This investigation was conducted with the assistance of the FBI Little Rock, Arkansas Field Office, the FBI Lowell, Massachusetts Resident Agency, the Herkimer County District Attorney’s Office, the Herkimer County Child Advocacy Center, Herkimer County Child Protective Services, the Village of Ilion, NY Police Department and the Haverhill, Massachusetts Police Department, and is being prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
MS-13 Member Convicted for Gang Murders of Two TeenagersRead the Press Release
BOSTON – Following a multi-week trial in federal court in Boston, an MS-13 member was found guilty today of racketeering conspiracy involving murder. This is the government’s 49th conviction in the case. Defendant is 16th person found responsible for murder. Of the 16 individuals held accountable for murder, 15 were in the United States illegally.
Edwin Gonzalez, a/k/a “Sangriento,” 22, a Salvadoran national, was found guilty of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. In addition, the jury found that Gonzalez’s racketeering activity on behalf of MS-13 included his participation in the Sept. 7, 2015, murder of a 15-year-old in East Boston and the Jan. 10, 2016, murder of a 16-year old in East Boston. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Sept. 26, 2018.
After a multi-year investigation, Gonzalez was one of dozens of leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. According to court documents, MS-13 members in Massachusetts engaged in a variety of racketeering acts and crimes of violence, including six different murders committed by members of MS-13 in Massachusetts between October 2014 and January 2016.
Gonzalez was the 49th defendant to be convicted as part of this case. All nine defendants who went to trial were convicted and 40 others pleaded guilty. Of the 16 defendants held responsible for murder, 15 defendants, including Gonzalez, were in the United States illegally at the time the murders were committed. The conviction of Gonzalez brings to end this series of prosecutions; the remaining defendants are fugitives and will be prosecuted upon arrest.
The multi-year investigation revealed that multiple MS-13 cliques operate in East Boston, Chelsea, Everett, Somerville, and other parts of Massachusetts. Gonzalez was a member of the Molinos Locos Salvatrucha clique of MS-13.
On Sept. 7, 2015, Gonzalez and three other MS-13 members lured a 15-year-old boy through social media to Constitution Beach in East Boston. Convinced that the victim was a gang rival, Gonzalez and others targeted him by pretending to be a girl on Facebook and lured the victim to the beach for a date. When the victim arrived at Constitution Beach, Gonzalez and three other MS-13 members took turns stabbing the victim repeatedly, killing him and leaving him dead on a public beach. The victim had approximately 33 sharp force injuries and multiple blunt force injuries. The other three MS-13 members who committed this murder with Gonzalez – Carlos Melara, a/k/a “Chuchito,” a/k/a “Criminal;” Henry Parada Martinez, a/k/a “Street Danger;” and Rene Mejia Flores a/k/a “Gasper,” – have pleaded guilty and are awaiting sentencing.
On Dec. 6, 2015, Gonzalez was promoted to “homeboy,” or full-member of the gang, to reward him for the murder he committed on behalf of MS-13. Melara and Mejia Flores were also promoted to “homeboys” for their role in the murder.
On Jan.10, 2016, Gonzalez and three other MS-13 members lured a 16-year-old boy through social media to Falcon Street in East Boston. Again, convinced that the victim was a gang rival, Gonzalez and others targeted him by pretending to be a girl on Facebook. Gonzalez then went to pick up the victim, pretending to be a relative of the girl that the victim was supposed to meet for a date. When Gonzalez arrived with the victim in East Boston, the MS-13 members attacked the victim. Three of the MS-13 members, including Gonzalez, were armed with large knives and stabbed the victim repeatedly, while the fourth MS-13 member fired multiple gunshots into the victim. Gonzalez and the other MS-13 members then ran away, leaving the teenager dead on a public street. The victim had approximately 48 sharp force injuries, multiple gunshot wounds, and multiple blunt force injuries. The other three MS-13 members who committed this murder with Gonzalez – Edwin Diaz, a/k/a “Demente;” Jairo Perez, a/k/a “Seco;” and Rigoberto Mejia, a/k/a “Ninja” – have pleaded guilty and are awaiting sentencing.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Wes Adams, State’s Attorney, Anne Arundel County (Maryland), Anne Arundel County State’s Attorney’s Office, made the announcement today.
Los Angeles Men Sentenced to 20 & 25 Years for Running Nationwide Synthetic Drug Trafficking RingRead the Press Release
SYRACUSE, NEW YORK –Andrew Raymond, age 39, and Brian Requena, age 41, both of Los Angeles, California, were sentenced yesterday following their convictions after trial for conspiracy to possess with intent to distribute synthetic drugs and money laundering, relating to their operation of a major nationwide synthetic drug trafficking ring, announced United States Attorney Grant C. Jaquith; Special Agent in Charge James J. Hunt, Drug Enforcement Administration (DEA), New York Division; and Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
Raymond was sentenced to serve 25 years in prison and Brian Requena was sentenced to serve 20 years in prison. Both men were convicted following an 11-day jury trial in Syracuse in July 2017. Upon their release from prison, Raymond and Requena will each serve a 3-year term of supervised release. As a further part of the sentence, Raymond and Requena forfeited multiple luxury vehicles, including a 2013 Rolls Royce Ghost, a 2014 BMW, and a 2015 Cadillac Escalade; 32 pieces of jewelry, including 10 Rolex watches, a Cartier watch, diamond earrings, diamond necklaces, and diamond rings; and funds seized from 16 bank accounts. Additionally, the court ordered a money judgment of $3 million against Raymond and a $1.5 million money judgment against Requena. Three other members of the conspiracy previously pled guilty to similar charges.
“The significant sentences imposed in this case reflect the seriousness of the defendants’ crimes –- leading an illegal business manufacturing and distributing large quantities of dangerous synthetic cannabinoids nationwide and laundering the drug proceeds,” said United States Attorney Grant C. Jaquith. “Thanks to the dedication of federal law enforcement, the profits of their poison peddling have been forfeited and prison substituted for their luxury. We will continue to investigate and prosecute drug traffickers who masquerade as legitimate businessmen.”
DEA Special Agent in Charge James J. Hunt stated, “Andrew Raymond and Brian Requena were not legitimate businessmen, they were drug kingpins earning millions off the sale of poison. They capitalized on distributing synthetic cannabinoids - a deadly psychoactive substance - in Northern New York and throughout the United States. I commend the Northern District of New York for their diligent work on this investigation and their unwavering commitment to prosecuting those who violate the Controlled Substance Act.”
“We are committed to working with our law enforcement partners and will use our financial expertise to dismantle criminal organizations that victimize the American public. These two individuals made enormous profits and acquired significant assets as a result of their criminal activity. Yesterday’s sentences demonstrate the high price they will pay for engaging in such criminal activity,” stated Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
The trial evidence established that Raymond and Requena conspired to manufacture and distribute synthetic cannabinoids (also known as “Spice,” “Spike,” “K2,” or “synthetic marijuana”) throughout the country, including to multiple “head shops” in the Northern District of New York. Documents found at the defendants’ warehouses in Los Angeles and in their computers showed that they understood their synthetic substances were controlled by federal drug laws. The defendants took significant steps to evade detection by law enforcement, setting up shell companies and using Post Office boxes to divert attention from the warehouse where they manufactured their product. Additionally, the defendants transferred their company (Real Feel Products, Inc.) and all of its bank accounts from Andrew Raymond’s name to Brian Requena’s after DEA and other law enforcement agencies executed a search warrant on their warehouse in February 2014.
At the height of their drug trafficking conspiracy, Raymond and Requena were each making approximately $100,000 per week in profit, and they had a large team of employees who manufactured, shipped, and sold their products. The evidence at trial also showed that the defendants conspired to commit money laundering by wiring millions of dollars to China to purchase the powder form of the synthetic cannabinoid that they used in their finished product.
This case was investigated by the United States Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), and U.S. Immigration and Customs Enforcement (ICE), and was prosecuted by Assistant U.S. Attorneys Carla Freedman and Michael F. Perry.
Livingston Regional Hospital, LLC Agrees to Settle False Claims Act AllegationsRead the Press Release
Livingston Regional Hospital, LLC, a LifePoint Health Inc. company, has agreed to pay $784,000 to settle allegations that Livingston Regional Hospital violated the False Claims Act, announced United States Attorney Don Cochran for the Middle District of Tennessee.
The settlement resolves allegations that between July 9, 2015 and October 31, 2015, Livingston Regional Hospital violated the False Claims Act by knowingly billing Medicare Part A for inpatient psychiatric care that was not medically necessary.
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against Livingston Regional Hospital by two former employees who brought their claims under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblowers will receive $156,800 as their share of the settlement.
This matter was investigated by the Department of Health and Human Services Office of Inspector General and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only, and there has been no determination of liability.
This case is docketed as United States ex rel. Dorothy Griffin and Teresa Long v. Livingston Regional Hospital, LLC and LifePoint Health, Inc., Civil Action No. 2:16-cv-00095 (M.D. Tenn.).
Life Sentence Imposed on Leaders of Drug Trafficking OrganizationRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that, ANTOINE DEWAYNE MYLES a/k/a “Twan”, 42, of Dunn, North Carolina, LEMONT JERRONE WEBB, 44, of Godwin, North Carolina, and HARRY MYLES, SR., 63, also of Dunn, were sentenced by United States District Judge Terrance W. Boyle. ANTOINE DEWAYNE MYLES was sentenced to life imprisonment followed by 5 years of supervised release, WEBB was also sentenced to life imprisonment followed by 10 years of supervised release and HARRY MYLES, SR. was sentenced to 64 months imprisonment followed by 3 years of supervised release.
WEBB and HARRY MYLES, SR. were convicted following a four-day trial on January 20, 2018. WEBB was convicted of drug conspiracy, money laundering conspiracy, possession with intent to distribute cocaine base (crack), and several money laundering offenses. HARRY MYLES, SR. was found guilty of money laundering offenses. ANTOINE DEWAYNE MYLES was convicted on March 8, 2018, after a three-day trial, of conspiracy to distribute and possess with the Intent to Distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base (crack), possession with intent to distribute cocaine and cocaine base (crack), and money laundering conspiracy.
The evidence at trial showed that from 2011 until their arrest on June 5, 2015, ANTOINE DEWAYNE MYLES and his brother LEMONT WEBB, were leaders in a Drug Trafficking Organization (DTO) responsible for the distribution of kilogram quantities of crack cocaine in Godwin, North Carolina. The evidence showed that ANTOINE MYLES and WEBB hired other people to work shifts selling crack cocaine from a trailer in Godwin, NC, 24 hours a day, 7 days per week. In October 2014, the Cumberland County Sheriff’s Office obtained an injunction against the trailer used to distribute the crack cocaine, but MYLES and WEBB continued their operation, selling crack cocaine from a Winnebago across the street from the original trailer.
The evidence at trial established that HARRY MYLES, SR., the father of LEMONT WEBB and ANTOINE MYLES, played an integral role in the operation of the DTO by allowing multiple properties used to store and distribute crack cocaine, to be placed in his name in order to conceal the true source of the illegal funds used to purchase the properties, and to frustrate law enforcement’s efforts to seize the properties. Additionally, the trial evidence established that HARRY MYLES, SR. and LEMONT WEBB purchased tow trucks and started a towing business which was utilized to launder illegal drug proceeds. Moreover, ANTOINE MYLES and LEMONT WEBB both purchased multiple vehicles with illegal drug proceeds and titled the vehicles in the names of other persons to frustrate any efforts by law enforcement to seize and forfeit the vehicles.
At sentencing, LEMONT WEBB was found responsible for the distribution of over 125 kilograms of cocaine base (crack) over the life of the drug conspiracy and ANTOINE MYLES was found responsible for the distribution of over 40 kilograms of cocaine base (crack) during his involvement in the drug conspiracy. HARRY MYLES, SR. was found to have been involved in the laundering of over $175,000 in illegal drug proceeds.
Additionally, 15 other defendants have been convicted of various drug and money laundering charges arising from this investigation.
Mr. Higdon commented: “Antoine Myles, his father Harry Myles, and Lemont Webb have finally been brought to justice. For years they have victimized the small community of Godwin and turned it into a virtual open-air drug market. Collectively they distributed nearly 300 pounds of cocaine. As law enforcement tried to stop them, they thumbed their noses, adjusted their operation and carried on. Today, that stops! The sentences handed down in these cases are clear warnings to drug traffickers that we are Taking Back North Carolina from the drug dealers and violent criminals. And removing these defendants from Godwin, North Carolina is a great start.”
"Today, Justice is served and not only are criminals going to jail for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture. The role of IRS-CI in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations. One of the government's most powerful weapons is the ability to seize through asset forfeiture the assets associated with narcotics-related crime,” said Matthew D. Line, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “IRS-CI is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice."
Cumberland County District Attorney Billy West said, “He would like to thank the Cumberland County Sheriff’s Office and our Federal Law Enforcement partners for dismantling this Drug Trafficking Organization that was a blight on our community. The Cumberland County District Attorney’s Office looks forward to continuing to partner with our local, state, and federal law enforcement agencies to combat drug traffickers in Cumberland County.”
The investigation of this case was conducted by the Drug Enforcement Administration (DEA), the Cumberland County Sheriff’s Office, the Internal Revenue Service-Criminal Investigation (IRS-CI) and the United States Marshal’s Service. Assistant United States Attorney Lawrence Cameron represented the government in this case.
Lansing Woman Gets Jail Time for Lying to Grand JuryRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Tiffany Renee Pryor, formerly of Lansing, Michigan, was convicted of making a false declaration to a grand jury and sentenced to six months’ incarceration and six months’ home confinement, to be followed by two years’ supervised release. Pryor had offered false exculpatory testimony before a grand jury investigating a case regarding a felon who was in possession of a firearm.
“My office will always pursue and prosecute those who would seek to thwart justice by lying under oath,” said U.S. Attorney Birge.
Roderick Frost, the defendant in whose case Pryor gave false testimony, was convicted of being a felon in possession of a firearm and sentenced to 96 months’ incarceration. His prior convictions rendered him an armed career criminal.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Meridian Township Police Department and prosecuted by Assistant United States Attorneys Sally J. Berens and Alexis Sanford.
END
Laguna Pueblo Man Sentenced to 20 Years for 2nd Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Jeffrey Antonio, 36, an enrolled member and resident of Laguna Pueblo, N.M., was sentenced yesterday evening in federal court in Albuquerque, N.M., to 20 years of imprisonment for his second-degree murder conviction. Antonio will serve a three-year term of supervised release after completing his prison sentence. The sentence was announced by U.S. Attorney John C. Anderson, Special Agent in Charge William McClure of District IV of the BIA’s Office of Justice Services, and Bernalillo County Sheriff Manuel Gonzales, III.
Antonio was indicted on March 23, 2016, on a second-degree murder charge. The indictment alleged that Antonio committed the offense on July 31, 2015, on the Sandia Pueblo Indian Reservation in Bernalillo County, N.M.
A federal jury found Antonio guilty on the sole count of the indictment on April 19, 2017, after a three day trial. The evidence at trial established that on July 31, 2015, Antonio was driving a truck on the Sandia Pueblo Indian Reservation when he swerved into oncoming traffic and crashed head-on into another vehicle, injuring the driver and killing the passenger. Law enforcement officers who responded to the scene of the crash observed a cold four-pack of beer in Antonio’s truck that was missing two cans and noted that Antonio smelled of alcohol. The results of a blood test at a hospital following the crash revealed that Antonio had a BAC of .19.
During the trial, the jury learned that Antonio has two prior convictions for driving under the influence of alcohol; one in 2008 and another in 2011, which required that Antonio complete a first offender program. The program incorporates educational aspects of the risks associated with driving while impaired.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Bernalillo County Sheriff’s Department. Assistant U.S. Attorneys Joseph Spindle and Michael D. Murphy prosecuted the case.
Justice Department Reaches Agreement with Wisconsin to Protect the Voting Rights of U.S. Citizens Residing Temporarily OverseasRead the Press Release
The Justice Department today announced that it has entered into an agreement with the State of Wisconsin to ensure that Wisconsin voters who temporarily reside overseas receive voting protections to which they are entitled under the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA). Under this agreement, Wisconsin election officials will ensure that U.S. citizens residing overseas temporarily can receive their ballots electronically and utilize a Federal write-in absentee ballot to vote, if necessary, like other UOCAVA voters.
The agreement was filed in conjunction with a lawsuit filed today alleging that Wisconsin was not affording its voters residing overseas temporarily all of the voting protections guaranteed by UOCAVA. This agreement was necessary because Wisconsin law differentiates between permanent and temporary overseas voters and as result, temporary overseas voters were deprived of certain UOCAVA protections.
UOCAVA protects the voting rights in elections for federal office of absent uniformed service members, their family members, and U.S. citizens residing outside the U.S. UOCAVA requires states to allow all UOCAVA voters to receive their blank absentee ballots by mail or electronically, at the voters’ option. UOCAVA also requires States to allow all UOCAVA voters to use a Federal write-in absentee ballot as a back-up measure for voting, if the voters have applied on time for an absentee ballot but have not received the ballot from their state. These protections extend to all overseas voters, regardless of whether the voter resides overseas indefinitely or temporarily.
Wisconsin state election officials have agreed to take steps to implement these protections prior to the upcoming Aug. 14 Federal primary election and Nov. 6 Federal general election, and to notify local election officials and the public about these requirements. The state is also required to take steps to assure these protections for all future Federal elections.
“This agreement reflects the Department’s continued and resolute commitment to protecting the right to vote for members of our armed forces, their families, and overseas U.S. citizens, and ensuring that all of these voters are afforded a meaningful opportunity to vote in federal elections,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “I commend the Wisconsin Elections Commission and the other state officials who worked with the Department to reach a resolution to guarantee that the full protections of UOCAVA are provided to all overseas voters in the upcoming 2018 Federal elections and in future Federal elections.”
More information about UOCAVA and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/uniformed-and-overseas-citizens-absentee-voting-act. Please report any complaints to the Civil Rights Division at 1-800-253-3931.
Jury Convicts Former Clinton Township Trustee Dean Reynolds on All Fourteen Bribery and Conspiracy ChargesRead the Press Release
This afternoon, a federal jury convicted Dean Reynolds, a former Trustee of Clinton Township, on all fourteen counts of bribery and bribery conspiracy United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Internal Revenue Service.
The jury deliberated for slightly over an hour before reaching its guilty verdicts following a six-day long trial that began on June 13, 2018. The Court remanded Reynolds into custody following entry of the verdicts.
During the trial, the evidence showed that Reynolds demanded and took over $150,000 in bribes in four separate bribery conspiracies involving four different government contracts. The bribes included over $75,000 in cash, $50,000 in free legal services for Reynolds’ divorce, and an all-expenses paid trip to Disney World, including an eight-night stay in a deluxe-level room costing over $600 per night. The jury found that Reynolds demanded bribes in connection with the Clinton Township garbage-hauling contract worth over $16 million, the township engineering contract worth over $500,000 per year, and the township towing contract. In addition, the jury convicted Reynolds of conspiring to pay bribes to former New Haven, Michigan Trustee Brett Harris and to corrupt the garbage contract for New Haven. Reynolds was convicted of taking multiple bribes from convicted garbage executive Chuck Rizzo, from Paulin Modi, a former managing partner of Giffels Webster Engineering, who was also convicted of bribery, and from Gasper Fiore, the owner of multiple towing companies in southeast Michigan, who was also previously convicted of bribery conspiracy.
United States Attorney Schneider said, “Today’s verdict shows both our intolerance for corrupt public officials in Metro Detroit, and the community’s willingness to find them guilty after hearing the evidence. The verdict is a victory for honest government and a blow to those officials who try to subvert it for their own selfish, greedy ends.”
"The pursuit of public officials who abuse their authority for personal gain is one of the highest priorities for the FBI," stated Timothy R. Slater, Special Agent in Charge of the FBI Detroit Field Office. "We are committed to rooting out corruption and graft in southeast Michigan to ensure that our communities get the honest and quality public representation that they deserve."
Based on the jury’s guilty verdicts for conspiring to commit bribery and taking bribes, Reynolds faces a maximum of five years in prison on each of the four bribery conspiracy charges and a fine of up to $250,000. In addition, Reynolds also faces a maximum of ten years in prison and a fine of $250,000 on each of his ten convictions for bribery. A preliminary calculation of the federal sentencing guidelines for Reynolds indicates that he faces a total combined sentencing guideline range of over twenty years in prison.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. Reynolds was the sixteenth individual convicted as part of this investigation, including public officials, contractors, and other co-conspirators.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys R. Michael Bullotta, David A. Gardey, and Adriana Dydell
June Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 23 indictments charging 33 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Ali-Saif Al-Mjamaie, age 28, of El Cajon, California, is charged in a two-count Indictment. Count I charges the defendant with conspiracy to launder money beginning on or about October 12, 2017, and continuing to on or about October 13, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $500,000 fine or twice the value of money involved, NMT 5 year term of supervised release, and a $100 special assessment. Count II charges the defendant with unlicensed money transmitting business beginning on or about October 12, 2017, and continuing to on or about October 13, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, 3 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about October 13, 2017.
* Ian Beals, age 24, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about May 11, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with felon in possession of a firearm on or about May 11, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and $100 special assessment.
* Joseph M. Calhoun, age 33, of Lincoln, is charged in a three-Count Indictment with possessing and uttering counterfeit securities of a political subdivision of the State on or about January 11, 2018. The maximum possible penalty if convicted is 10 years imprisonment for each count, a $250,000 fine for each count, a 3 year term of supervised release for each count, and a $100 special assessment for each count.
* Raul Chub-Cu, age 35, is charged with illegal reentry after deportation on or about June 1, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Cisca Bruno, age 24, of Omaha, is charged with illegal reentry after deportation on or about June 11, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Matthew Leigh Clausen, age 40, of Omaha, is charged with assault of a federal officer on or about June 5, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jorge Domingo-Tomas, age 51, of Lexington, Nebraska is charged with illegal reentry after deportation on or about June 12, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jeffrey Fraser, age 61, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with obtaining a controlled substance by fraud on or about March 24, 2014 to on or about January 2018. The maximum possible penalty if convicted is 4 years imprisonment, a $250,000 fine, 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with being a user or a person addicted to a controlled substance in possession of a firearm on or about January 2, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and $100 special assessment.
* David Alejandro Gonzalez Nava, age 24, is charged with illegal reentry after deportation on or about June 5, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Randy J. Kirby, age 60, of Hastings, Nebraska is charged in a nine Count Indictment with Healthcare Fraud on or about September 2, 2013 and continuing until on or about September 22, 2016. The Indictment alleges fraud against the Nebraska Medical Assistant Program causing losses of $133,639.57. The maximum possible penalty if convicted is 10 years imprisonment for each count, a $250,000 fine for each count, a 3 year term of supervised release for each count, and a $100 special assessment for each count.
* Raul Lopez-Colin, age 36, is charged with illegal reentry after deportation following a felony conviction on or about February 23, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Adrian Lopez-Vargas, age 31, is charged with illegal reentry after deportation on or about June 1, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ismael Lopez-Vargas, age 34, is charged with illegal reentry after deportation on or about June 1, 2018 following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Nelson Mauricio Martinez, age 38, is charged with illegal reentry after deportation on or about June 11, 2018 following a felony conviction. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Mauricio Morales Paniagua, age 31, of Omaha, is charged with illegal reentry after deportation on or about May 5, 2018 following a felony conviction. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Nelson Nicolas Nunez-Acosta, age 52, of Newark, New Jersey, and Felipe Genao Minaya, age 47, of Newark, New Jersey, are charged with possession with intent to distribute 400 grams or more of fentanyl on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit a 2013 Freightliner Corp truck and a 2007 refrigerated trailer seized on or about April 26, 2018.
* Jason Osbourne, age 33, is charged with felon in possession of a firearm on or about March 10, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and $100 special assessment.
* Reiko Elio Penunuri, age 39, Ramon Penunuri-Noreiga, age 37, Jasive Zamora-Carillo, age 37, Emmanuel Solorio-Cruz, age 26, Francisco Guevara-Zamudio, age 27, Jessica Medina, age 28, Jose Cruz Jauregui-Preciado, age 38, Deborah Drummy, age 56, Dylan McCurdy, age 30, and Luis Tafoya, age 33 are charged in a eleven-count Indictment. Count I charges the defendants with conspiracy to distribute 500 grams, or more of a mixture or substance containing methamphetamine beginning on or about January 1, 2018, and continuing to on or about June 5, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges Penunuri and Penunuri-Noriega with distribution of 50 grams or more of a mixture or substance containing methamphetamine on or about February 14, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count III charges Zamora-Carrillo with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about February 14, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count IV charges Zamora-Carrillo and Medina with distribution of 50 grams or more of a mixture or substance containing methamphetamine on or about February 27, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count V charges McCurdy and Tafoya with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about April 18, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VI charges Penunuri-Noriega with distribution of 50 grams or more of a mixture or substance containing methamphetamine on or about May 9, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VII charges Zamora-Carillo with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about May 9, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VIII charges Zamora-Carrillo with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about May 13, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count IX charges Zamora-Carrillo with distribution of with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about May 14, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count X charges Penunuri and Penunuri-Noriega with distribution of 500 grams or more of a mixture or substance containing methamphetamine on or about May 25, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count XI charges Penunuri, Penunuri-Noriega, Jauregui-Preciado, Solorio-Cruz and Zamora-Carrillo with use of facilities in interstate commerce in aid of racketeering between on or about January 1, 2018 and on or about June 5, 2018. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, 3 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about June 5, 2018.
* Jose Peralta Vargas, age 33, of Las Vegas, Nevada, is charged with illegal reentry after deportation on or about June 1, 2018 following a felony conviction. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Porfirio Rodriguez Reyes, age 38, of Lincoln, is charged in a six-count Indictment. Count I charges the defendant with distribution of a mixture or substance containing a detectable amount of heroin on or about February 9, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with distribution of a mixture or substance containing a detectable amount of heroin on or about February 12, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of a mixture or substance containing a detectable amount of heroin on or about February 19, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count IV charges the defendant distribution of 5 grams or more of methamphetamine (actual) on or about February 22, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count V charges the defendant distribution of 100 grams or more of methamphetamine on or about February 23, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VI charges the defendant distribution of 50 grams or more of methamphetamine (actual) on or about March 2, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment.
* Michael Lee Vanness, age 34, is charged in a six-count Indictment. Count I charges the defendant with conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine beginning on or about July 13, 2017, and continuing to on or about April 25, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 5 grams or more of a mixture or substance containing methamphetamine (actual) on or about July 13, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count III charges the defendant with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about February 20, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count IV charges the defendant with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about April 17, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count V charges the defendant with felon in possession of a firearm on or about April 17, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and $100 special assessment. Count VI charges the defendant with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about April 24, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment.
* Timothy A. White, age 44, of Los Angeles, California, is charged with conspiracy to distribute 400 grams or more of a mixture or substance containing fentanyl and 1 kilogram or more of a mixture or substance containing a detectable amount of heroin beginning on or about May 30, 2018, and continuing to on or about June 1, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment.
* Manuel Zavala-Balderas, age 31, is charged with illegal reentry after deportation on or about June 12, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
Jamshid Muhtorov and Bakhtiyor Jumaev Guilty of Providing Material Support to a Terrorist OrganizationRead the Press Release
DENVER – A jury in U.S. District Court in Denver today found Jamshid Muhtorov guilty on three counts involving material support to a terrorist organization, U.S. Attorney Bob Troyer announced. The guilty verdicts come after a 19-day trial before Senior U.S. District Court Judge John L. Kane. The defendant was acquitted of an additional count. The Assistant Attorney General for National Security John C. Demers joined in today's announcement.
U.S. Attorney Troyer said: “The jury verdict today reflects the strength and character of our prosecution team, the FBI, and the American justice system. We thank the jury for their essential role in that system and service to our country.”
“Jamshid Muhtorov and Bakhtiyor Jumaev, who was previously convicted, conspired and attempted to provide material support to the Islamic Jihad Union (IJU), a designated foreign terrorist organization,” said Assistant Attorney General Demers. “Thanks to all the prosecutors, agents, and analysts on these cases, these defendants will now be held accountable for their crimes.”
On April 30, 2018, a jury in the U.S. District Court found Muhtorov’s co-defendant, Bakhtiyor Jumaev, guilty of similar charges. Sentencing for Jumaev is scheduled for July 18, 2018. Sentencing for Muhtorov has not yet been set.
Jamshid Muhtorov and Bakhtiyor Jumaev Guilty of Providing Material Support to TerroristsRead the Press Release
Today Assistant Attorney General for National Security John C. Demers and U.S. Attorney Bob Troyer announced that a jury in the U.S. District Court in Denver found Jamshid Muhtorov guilty on three counts involving material support to a terrorist organization. The guilty verdicts come after a 19-day trial before Senior U.S. District Court Judge John L. Kane. The defendant was acquitted of an additional count.
“Jamshid Muhtorov and Bakhtiyor Jumaev, who was previously convicted, conspired and attempted to provide material support to the Islamic Jihad Union (IJU), a designated foreign terrorist organization,” said Assistant Attorney General Demers. “Thanks to all the prosecutors, agents, and analysts on these cases, these defendants will now be held accountable for their crimes.”
“The jury verdict today reflects the strength and character of our prosecution team, the FBI, and the American justice system," said U.S. Attorney Troyer. "We thank the jury for their essential role in that system and service to our country.”
On April 30, 2018, a jury in the U.S. District Court found Muhtorov’s co-defendant, Bakhtiyor Jumaev, guilty of similar charges. Sentencing for Jumaev is scheduled for July 18, 2018. Sentencing for Muhtorov has not yet been set.Jamestown Man Pleads Guilty to Conspiracy to Distribute Cocaine, Methamphetamine, and MarijuanaRead 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 Juan Pacheco, Jr., 36, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to distribute five kilograms or more of cocaine, 500 grams or more of methamphetamine, and marijuana. The charge carries a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Michael P. Felicetta and Joel L. Violanti, who are handling the case, stated that the defendant was receiving kilogram quantities of cocaine and methamphetamine from California that were smuggled into the United States from Mexico. Members of the Drug Enforcement Administration working collaboratively with law enforcement officers from the Jamestown Metro Drug Task Force (JMDTF) identified Pacheco as a significant dealer in the Jamestown area and began investigating his activities.
Pacheco was arrested on August 18, 2016, after authorities executed a search warrant at his stash house located at 477 Main Street in Jamestown. Officers recovered approximately nine kilograms of cocaine, three-and-a-half kilograms of methamphetamine, and three kilograms of marijuana. Approximately $133,000 in cash was also seized as well as approximately $7,000 from the defendant’s pocket upon his arrest.
Pacheco pleaded guilty just two weeks before the start of a jury trial in this case.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division, and the Jamestown Metro Drug Task Force, which includes officers from the Jamestown Police Department, under the direction of Chief Harry Snellings; the Ellicott Police Department, under the direction of William L. Ohnmeiss Jr.; and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark.
Sentencing is scheduled for October 31, 2018 at 10:00 a.m. before Judge Vilardo.
Illegal aliens admit to reentry chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Mexican nationals have admitted to a reentry of a removed alien charges, United States Attorney Bill Powell announced.
Juan Mendez-Patishtan, age 34, and Filberto Reyes-Vazquez, age 49, each pled guilty to one count of “Reentry of a Removed Alien.” Mendez-Patishtan admitted to reentering the United States illegally after being removed six separate times from 2010 to 2016. Reyes-Vazquez is accused of reentering the United States illegally after being removed in May 2016. The men were found in Harrison County in April 2018.
Mendez-Patishtan faces up to two years incarceration 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 defendant.
Reyes-Vazquez was sentenced to time served and one year supervised release.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement investigated.
U.S. Magistrate Judge Michael John Aloi presided over the plea hearings.
Senior U.S. District Judge Irene M. Keeley presided over the sentencing.
Illegal Alien Pleads Guilty to Immigration and Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Jose Luis Alonso DeLeon has pled guilty to an indictment charging him with possession of a firearm by an illegal alien, a violation of 18 USC Section 922(g), which carries a maximum penalty of up to ten years imprisonment and three years of supervised release; and illegal reentry of a removed alien, which carries a maximum penalty of up to two years imprisonment and one year of supervised release.
DeLeon is scheduled to be sentenced before United States District Judge William Steele on September 21, 2018, at 10:00 a.m.
As part of the factual resume for the guilty plea, the United States established that on March 25, 2018, officers of the Fairhope, Alabama Police Department encountered Jose Luis Alonso DeLeon at the laundromat located at 139 Baldwin Square Shopping Center in Fairhope. Officers were in the area looking for a maroon truck that had just struck and killed a bicyclist moments before.
DeLeon was still sitting behind the steering wheel in the truck. The officer located a Mexican driver’s license in DeLeon’s pocket.Corporal Rada of the FPD observed a firearm lying in plain view on the front passenger floorboard of the truck. Corporal Rada recovered the firearm and identified it as a Glock model 26 9mm pistol.
As part of the Court proceedings, DeLeon admitted that he is a citizen of Mexico and that he was in the United States without permission. Investigation revealed that on March 25, 2014, he was found in the United States and was ordered removed. He departed on March 27, 2014 from Laredo, Texas Port of Entry. He had also been encountered in the United States by the Border Patrol on May 5, 1999; February 28, 2000; March 19, 2000; March 24, 2014; March 25, 2014; and April 24, 2014.
After the April 24, 2014 encounter he was charged with violating Title 8 U.S.C. 1325, entry without inspection. He pled guilty and served 30 days imprisonment.
Although these charges arose on the same date as DeLeon’s pending charges with District Attorney Bob Wilters in Baldwin County, they are separate from the Alabama state charges of manslaughter and leaving the scene of an accident. DeLeon is charged in state court with causing the death of Amy Hawkins who was riding her bicycle in the northbound lane of County Road 13 in Fairhope, Alabama on March 25, 2018.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations; the Bureau of Alcohol, Tobacco Firearms and Explosives; the Fairhope Police Department; and ALEA. This case is being prosecuted by AUSA Maria E. Murphy.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/
Honduran Man Pleads Guilty to Transporting Illegal AliensRead the Press Release
ALEXANDRIA, Va. – A Honduran national pleaded guilty today to illegal reentry after removal and conspiring with others to transport illegal aliens to various locations in the United States.
“Mr. Zelaya-Ortiz was deported twice before his latest arrest,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “He was removed in December 2012, and then he illegally returned. He was removed a second time in June 2014, and he illegally returned again. Just two months ago, Fairfax County Police officers found him smuggling six other illegal aliens who he was transporting to various points across the country in exchange for money. After Mr. Zelaya-Ortiz completes his sentence in this case, he will be deported, at taxpayer expense, for a third time. The Department of Justice is committed to prioritizing criminal immigration enforcement. This is an issue of public safety. People cannot be permitted to continuously flout the law.”
According to court documents, Danny Josue Zelaya-Ortiz, aka “Jose Castro”, 29, was part of a conspiracy to charge illegal aliens in the United States a fee for transporting them from Texas to other states across the country. In April 2018, Zelaya-Ortiz picked up at least six alien passengers, all of whom had been smuggled into the United States from the Mexico border. Zelaya was driving the passengers towards Maryland and the New York area when his vehicle was stopped in Virginia by Fairfax County Police on April 25, 2018. He was cited for an improper vehicle tag display and driving without an operator’s license. Homeland Security Investigations special agents responded to the scene after it was determined Zelaya-Ortiz and the passengers had no lawful status in the United States. Zelaya-Ortiz admitted he knew the passengers were illegal aliens and that he received payments for his role in the scheme. At the time of the crime, Zelaya-Ortiz had been in the country illegally after having been twice removed by immigration officials.
“Human smugglers time and time again demonstrate a total disregard for both our laws and for human life,” said Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. “HSI will continue to enforce the laws these criminals attempt to skirt, and continue to disallow all of the nefarious activities these smuggling schemes fund.”
Zelaya-Ortiz pleaded guilty to conspiracy to transport illegal aliens and illegal reentry after deportation. He faces a maximum penalty of 12 years in prison when sentenced on September 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Special Assistant U.S. Attorneys Raizza K. Ty and Christopher Kaltsas are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-235.
Hartford Man Sentenced to 45 Months in Prison for Distributing Heroin, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM MARRERO-BENITEZ, 25, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 45 months of imprisonment, followed by three years of supervised release, for distributing heroin and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on December 14, 2016, Hartford Police officers conducting a heroin trafficking investigation attempted to stop a vehicle MARRERO-BENITEZ was driving in the area of New Britain Avenue and Broad Street. MARRERO-BENITEZ accelerated from the scene at a high rate of speed, striking the front of a police vehicle, swerving through traffic, ignoring red lights and stop signs, and nearly striking at least two other vehicles head-on. Officers pursued MARRERO-BENITEZ on I-84 East into East Hartford where MARRERO-BENITEZ drove off the road and down an embankment, and then fled the vehicle and ran into the woods. An officer caught up to MARRERO-BENITEZ and, after a struggle during which the officer was kicked in the head, MARRERO-BENITEZ was apprehended. At the time of his arrest, MARRERO-BENITEZ possessed 138 wax folds containing heroin.
In May 2015, MARRERO-BENITEZ, who was on state probation at the time, illegally possessed and sold a rifle to an individual working with law enforcement. He subsequently pleaded guilty in federal court to one count of possession of a firearm by a previously convicted felon and, on July 7, 2016, was sentenced to 18 months of imprisonment, followed by three years of supervised release. He was released from federal prison in October 2016.
On March 29, 2018, MARRERO-BENITEZ pleaded guilty to one count of possession with intent to distribute heroin.
Judge Covello sentenced MARRERO-BENITEZ to 27 months of imprisonment on the heroin offense, and a consecutive 18 months of imprisonment for violating the conditions of his federal supervised release.
MARRERO-BENITEZ has been detained since December 14, 2016.
This matter was investigated by the Hartford Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Northern Connecticut Violent Crimes Task Force, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Michael J. Gustafson.
Guatemalan Man Pleads Guilty to Unlawfully Re-entering the United States Following Previous RemovalRead the Press Release
SYRACUSE, NEW YORK - Marcial De Leon-Aguilar, age 31, and a citizen of Guatemala, pled guilty today to unlawfully re-entering the United States after previously having been removed, announced United States Attorney Grant C. Jaquith and Thomas Feeley, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Buffalo, New York.
As part of his guilty plea today, De Leon-Aguilar admitted that he was previously convicted of a felony offense and had been deported three times prior to the current charge.
Sentencing is scheduled for July 31, 2018. At sentencing, Marcial De Leon-Aguilar faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and removal or deportation from the United States.[1] 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 is being investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement (ICE).
[1] Deportation and removal proceedings are separate civil matters litigated in Immigration Court and are not adjudicated as part of a criminal prosecution.
Greenville Roofing Company Owner Pleads Guilty to Tax EvasionRead the Press Release
John Frederick Snyder, Owner of Snyder’s Roofing, Willfully Underreported his Income by Over $6 Million for tax years 2009 to 2014
GRAND RAPIDS, MICHIGAN — John Frederick Snyder, 71, of Greenville, Michigan, and owner of Snyder’s Roofing, pled guilty on June 20, 2018, to a felony information charging him with tax evasion for the 2011 tax year. As part of his plea agreement, Snyder further admitted to willfully evading the assessment of income taxes for 2009 to 2014 by underreporting his income by over $6 Million. He has agreed to pay restitution of $414,160.00, representing his tax loss, plus fraud penalties and interest. At a sentencing hearing yet to be set by the court, Snyder will face up to five years’ imprisonment and a fine of up to $250,000.00.
According to his plea agreement and court records, Snyder consistently failed to timely file tax returns and when he did file he underreported the amount of his business income. He purposely deposited less than all of his business income into his business bank account without informing his accountant. Instead, he took checks from his customers and signed them over to his suppliers (making them third-party checks) to pay for the materials and services used in his business. Because of this practice, his business account never showed his actual business income. Snyder also carried out his tax evasion scheme by depositing checks made payable directly to him for the work of his roofing business into his personal bank accounts, taking back cash at the same time, or negotiating the entire amount of the checks for cash. Snyder used some of this unreported cash to pay his employees.
“Snyder willfully evaded his civic and legal obligation to pay his taxes,” said U.S. Attorney Birge. “The IRS figured out his scheme and he will now pay those taxes after all, along with fraud penalties and interest, while also facing up to five years in prison.”
“This is a classic example of greed,” said Manny Muriel, IRS-Criminal Investigation Special Agent in Charge of the Detroit Field Office. “Snyder blatantly disregarded the law to line his own pockets. He painstakingly took steps to avoid paying his fair share of taxes. IRS-Criminal Investigation will continue to seek out and find those who choose to disregard the tax laws.”
The Internal Revenue Service-Criminal Investigation Division, Grand Rapids, conducted the investigation, and Assistant United States Attorney Ronald M. Stella is prosecuting the case.
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Greenbrier, Tennessee Man Charged with Making Threats Against the PresidentRead the Press Release
Andrew Long Ryan, 37, of Greenbrier, Tennessee, was indicted yesterday by a federal grand jury and charged with two counts of making threats against the President, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Ryan was initially charged in a criminal complaint on June 18, 2018, and is currently in federal custody.
According to records filed with the court, on May 28-29, 2018, Ryan, a former police officer with the Bowling Green, Kentucky, Police Department, posted several concerning messages on his social media accounts, including a Facebook post that read, “Death is coming,” and a Twitter post that read, “I will kill Donald Trump if you don’t follow my leaders lead.” President Trump visited Nashville, Tennessee on May 29, 2018.
The charging documents allege several instances of erratic behavior by Ryan during the months leading up to the President’s visit and continuing until early June 2018, when Ryan was taken into custody by the Robertson County, Tennessee Sheriff’s Department for violating a protective order previously obtained by his family. The charging documents outline allegations of Ryan’s declining mental state and threatening behavior during the past several months, including placing family members in fear of their safety and previous incidents where he drew the attention of local law enforcement; the Federal Protective Service; the FBI; and the Secret Service.
In addition, according to the charging documents, on February 14, 2018, officers with the Greenbrier Police Department seized several firearms from Ryan’s home and several law enforcement officers expressed concern that Ryan’s behavior would escalate into an act of mass violence.
If convicted, Ryan faces up to five years in prison on each count.
This case was investigated by the United States Secret Service with valuable assistance from the Greenbrier Police Department; the Federal Protective Service; and the FBI. Assistant U.S. Attorney Ben Schrader is prosecuting the case.
An indictment is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
Grand Jury Indicts Matthews, N.C. Man Previously Arrested in Murder-For-Hire PlotRead the Press Release
CHARLOTTE, N.C. – A grand jury sitting in Charlotte returned a federal indictment yesterday, charging Bryant Riyanto Budi, 26, of Matthews, N.C. with attempted possession of radioactive material with intent to cause death and use of interstate commerce facilities in the commission of murder-for-hire. Budi was arrested on Friday, June 1, 2018, for attempting to hire a hitman via the internet to murder a Charlotte-area resident.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the charging documents, in April and May 2018, Budi contacted an HSI undercover agent (UCA) located in Buffalo, New York via the internet to conduct a murder-for-hire. Court documents allege that Budi used online usernames, encrypted messaging platforms, and encrypted email services to disguise his true identity from the undercover agent. During the course of communications between Budi and the UCA, Budi hired the UCA to murder an individual who resides in the Charlotte area, identified in court documents as “C.S.”
Court documents allege that in April and May 2018, Budi also contacted an FBI online covert employee (OCE) via the internet to purchase a lethal dose of a radioactive substance. In his communications with the OCE, Budi expressed his intent to use the radioactive substance to kill an unnamed individual. Budi also instructed the FBI OCE to ship the radioactive substance to an address in Charlotte. On May 22, 2018, the OCE advised Budi a package containing the radioactive substance was shipped. On May 31, 2018, the package containing an inert substitute for the radioactive material ordered by Budi was delivered to an address in Charlotte as instructed by Budi. On June 1, 2018, at approximately 11:15 p.m., Budi was arrested.
The charge of attempted possession of radioactive material with intent to cause death carries a maximum term of life in prison. The use of interstate commerce facilities in the commission of murder-for-hire charge carries a maximum prison term of 10 years.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked HSI in Buffalo, New York and Charlotte; the FBI in Charlotte and supporting FBI field offices; the FBI’s Weapons of Mass Destruction Directorate in Washington, D.C.; the U.S. Attorney’s Office for the Western District of New York, and the Department of Justice’s National Security Division.
Assistant U.S. Attorney Casey Arrowood of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution, assisted by Trial Attorney Bridget Behling, of the National Security Division.
Gorge “Chico” Duarte Sentenced to 262 Months in Prison for Methamphetamine Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On June 20, 2018, Gorge “Chico” Duarte, 42, of Mohawk, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 262 months in federal prison for his role in a conspiracy to distribute methamphetamine (meth) in the Eastern District of Tennessee. According to his plea agreement on file with U.S. District Court, Duarte admitted that he was responsible for at least 500 grams but less than 1.5 kilograms of actual meth.
In early 2015, local, state, and federal law enforcement agencies collaborated and began an investigation into an evolving meth distribution network that distributed multiple kilogram quantities of meth in and around Hamblen County, Tennessee. Duarte served a local source of supply. He obtained meth from a larger trans-national criminal organization and in turn supplied the meth to other local distributors. During the course of committing the offense, Duarte was serving a term of supervised release for a prior federal conviction, conspiracy to distribute cocaine in the Eastern District of Tennessee. He was ordered to serve an additional 37 months consecutive to the 262 months for violating his supervised release.
This investigation was the product of a partnership between the FBI, Hamblen County Sheriff’s Department and Third Judicial Drug Task Force. Assistant U.S. Attorney J. Christian Lampe represented the United States in court proceedings.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. 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.
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Girlfriend Admits Crime in Attempt to Save Boyfriend; Gets ArrestedRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Mary Downie, Acting Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced today’s arrest of Nicole Blakely, who admitted during a recent trial that she possessed firearms while using illegal drugs.
Blakely, 39, of Little Rock, was arrested on a federal complaint for being an unlawful drug user in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(3). She appeared before United States Magistrate Judge Joe J. Volpe Thursday afternoon and was detained following her initial appearance.
Last week, during the federal criminal trial of Blakely’s boyfriend, Torrioan Neal, Blakely was called as a witness to testify on Neal’s behalf. The charges against Neal included possession with intent to distribute marijuana. Prior to her testimony, her lawyer informed the Court that he had advised her against testifying; she acknowledged that advice to the Judge, indicated that she understood the potential consequences, and insisted on testifying anyway.
According to the federal complaint charging her, Blakely then testified that she was a regular drug user and that she had purchased all the marijuana the police had found in her house. Blakely stated during the trial that the day law enforcement officers located marijuana and a gun in Neal and Blakely’s residence she had gotten off work at 7:00 a.m. When she arrived home, Blakely testified, she smoked marijuana. She also testified that she was the owner of a pistol the police found in the house.
The jury found that Neal was guilty of possessing the marijuana with the intent to distribute it, despite Blakely’s claims that the marijuana was hers alone. Neal now faces a potential sentence of up to 10 years in prison.
The crime with which Blakely is charged is also punishable by up to 10 years imprisonment. Assistant United States Attorney Kristin Bryant is prosecuting the case, which is being investigated by the ATF.
A complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edarTwitter:
@EDARNEWSFormer Computer Security Specialist Sentenced to Seven Years in Federal Prison for Receiving Child Sexual Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced William Marion Patterson, III (49, Jacksonville) to seven years in federal prison for receiving child sexual abuse videos and images over the internet.
According to court documents, in 2015, the Federal Bureau of Investigation and the Naval Criminal Investigative Service conducted an undercover online child exploitation investigation of an individual who was using a particular online file-sharing network. At that time, this user, later identified as Patterson, was the most prolific trader of child pornography in the state of Florida on this file-sharing network. On June 11, 2015, law enforcement officers executed a search warrant at Patterson’s home. During an interview, Patterson admitted, among other things, that he used this file-sharing network and that he was responsible for everything found on his computer. Subsequent forensic analyses revealed that Patterson’s computer media contained approximately 854 videos and 5,394 images depicting young children being sexually abused.
This case was investigated by the Federal Bureau of Investigation, the Naval Criminal Investigative Service, the Columbia County Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.justice.gov/psc.
Former Baruch College Basketball Coach and Athletics Official Sentenced to 20 Months in Prison for Embezzling More Than $700,000Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MACHLI JOSEPH was sentenced to 20 months in prison for embezzling more than $700,000 in funds intended for Baruch College for the rental of their athletic facilities. JOSEPH pled guilty in January 2018 before U.S. District Judge Paul A. Crotty, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Machli Joseph used the facilities of Baruch College as his own cash machine, renting them out without approval and without compensation to the school. All told, his scheme diverted nearly three-quarters of a million dollars that should have been paid to the college. Our Office is committed to pursuing those who misappropriate educational funds for their own profit.”
According to the Information and Complaint filed in this case, and statements made during the plea proceeding:
MACHLI JOSEPH served as an athletic department official at Baruch College between 2002 and 2016. He served as Baruch’s women’s basketball head coach between 2004 and 2014, its men’s basketball coach in 2002, as assistant athletic director from 2003 to 2011, and as associate athletic director from 2011 until August 2016. At times when the Baruch College gym was not being used by the school’s athletic teams, it could be rented out to outside parties. In his administrative capacity, JOSEPH had control over those gym rentals and their scheduling.
On numerous occasions between 2010 and 2016, JOSEPH rented the gym to outside parties, ostensibly on behalf of Baruch College. In instructing the renting parties on how to provide payment, however, JOSEPH directed that payment be made to entities that were not, in fact, connected to Baruch College. Instead, they were entities with bank accounts over which JOSEPH had personal control, some of which merely sounded like Baruch-affiliated entities. On several occasions, JOSEPH simply directed that payment be made directly to him or individual associates of his. Many of these funds were ultimately spent on personal expenses and items for JOSEPH and his family, including renovations to his home in New Jersey. All told, the scheme improperly diverted over $700,000 of payments intended for Baruch College.
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In addition to the prison term, JOSEPH, 43, of Elizabeth, New Jersey, was sentenced to three years of supervised release and ordered to forfeit $787,194, and to pay the same amount in restitution.
Mr. Berman praised the investigative work of the Department of Education – Office of the Inspector General and the New York State Inspector General’s Office.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Catherine E. Ghosh and Martin S. Bell are in charge of the prosecution.
Former Accounting Manager Sentenced for Embezzling $1.1 MillionRead the Press Release
NEWPORT NEWS, Va. – A Chesapeake woman was sentenced today to 46 months in prison for embezzling over $1.1 million from a Hampton business.
According to court documents, Susan Gray, 47, engaged in a scheme to embezzle funds from, Harbor Construction Company, Inc., from January 2012 through January 2017. Gray transferred approximately $1,185,245.64 from Harbor Construction’s payroll accounts to her own personal accounts. She used these embezzled funds for own enrichment including making over $100,000 in ATM withdrawals, travel, jewelry, entertainment, restaurants, and retail purchases, and the purchase of a new car. During tax years 2012 through 2016, Gray failed to report $990,932.25 in unauthorized and embezzled funds on her filed income tax returns.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Mark S. Davis. Managing Assistant U.S. Attorney Howard J. Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-130.
Felon Charged for Two Armed Bank RobberiesRead the Press Release
LAS VEGAS, Nev. – A felon who robbed two Las Vegas banks at gunpoint on the same day and stole a total of approximately $22,000 made his initial appearance in federal court today, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Robert Carl Litheredge, 58, of Las Vegas, is charged in a criminal complaint with two counts of armed bank robbery, one count of brandishing a firearm during and in relation to a crime of violence, one count of discharging a firearm during and in relation to a crime of violence, and one count of felon in possession of a firearm. He appeared before U.S. District Magistrate Judge Carl W. Hoffman who scheduled a preliminary hearing for July 5, 2018.
According to allegations contained in the complaint, on April 17, 2018, Litheredge, who was wearing a dark colored ski mask and carrying a handgun, entered the Bank of America at 2638 Horizon Ridge Parkway in Henderson. He told the customers and employees to get down on the floor as he waved the handgun in the air. He told a teller that he wanted $100,000 while pointing the handgun at the teller who was overcome with fear. The Branch Manager stepped in and provided Litheredge with cash from the teller’s drawer. He fled the bank with $1,999.
It is further alleged that several hours later, Litheredge entered the Bank of America at 4080 Spring Mountain Road in Las Vegas. He wore a black ski mask and carried a handgun. He demanded $50,000 from a teller, then walked the teller to the back of the bank. The teller went through a door behind the teller stations and closed himself off from Litheredge who was left in the bank’s lobby. Litheredge then fired one round from his handgun into the ceiling. The teller pushed two wrapped stacks of cash totaling $20,000 through the teller window trays. Litheredge then fired another round into the ceiling before fleeing the bank.
Later that day, the Henderson Police Department released the bank robbery suspect’s photo to the media. On April 18, the Las Vegas Metropolitan Police Department received an anonymous tip identifying Litheredge as the perpetrator. The police located Litheredge on April 19, 2018, and arrested him. Litheredge had a .45 caliber handgun on his person when he was taken into custody. Later on April 19, during an interview with detectives from the Henderson Police Department and the Las Vegas Metropolitan Police Department, Litheredge admitted to robbing both banks on April 17.
Litheredge is also charged with felon in possession of a firearm. He has eight prior felony convictions including two bank robbery convictions from 2001 and 2007.
The case is being investigated by the FBI, the Henderson Police Department, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Federal Jury Convicts Grand Prairie Man on Firearm ChargesRead the Press Release
DALLAS— Following a two-day trial, a federal jury convicted Eric Gerard McGinnis, 42, of Grand Prairie, Texas, of multiple firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, on Wednesday, a federal jury convicted McGinnis of possessing an unregistered short barrel rifle and unlawfully possessing ammunition while he was subject to an active protective order. McGinnis will remain in custody pending sentencing, which is set for October 24, 2018, before U.S. Chief District Judge Barbara M.G. Lynn.
According to evidence presented at trial, a Dallas County court entered a two-year protective order against McGinnis on August 31, 2015, finding that he had committed family violence against a former girlfriend with whom he had lived. The protective order also prohibited him from possessing firearms or ammunition.
On July 28, 2017, officers from the Grand Prairie Police Department responded to the sound of gunshots in a wooded area near North Belt Line Road and East Palace Parkway. There they found McGinnis carrying a backpack that contained an AR-15 rifle that had a receiver made using a 3D printer and had a barrel that was only ten inches long. He also possessed 88 rounds of ammunition for the rifle. McGinnis did not have the short barrel rifle registered to him in the National Firearm Registration and Transfer Record, which is the repository for registrations for weapons that must be registered under the National Firearms Act.
The evidence presented at trial also showed that McGinnis had attempted to purchase a receiver from a federal firearms licensee in 2016, but the transaction required a background check that rejected McGinnis based on the active protective order.
The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and Grand Prairie Police Department investigated the case. Assistant U.S. Attorneys Brian McKay and Rick Calvert are prosecuting the case.
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Federal Drug and Violent Crime Enforcement Operation Nets 18 Defendants Wanted for Guns, Drugs and Other ChargesRead the Press Release
NASHVILLE – As part of Take Back North Carolina Initiative, the United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that several cocaine and heroin centered Organized Crime and Drug Enforcement Task Force Operations (OCDETF), as well as, violent crime enforcement operations resulted in the arrest of eighteen (18) defendants for outstanding federal charges in a coordinated warrant enforcement operation. Also, at least one defendant related to this operation was found to be in the custody of the North Carolina Department of Corrections and will now face federal prosecution. A federal detainer has been filed against this subject.
In addition to the federal arrests, thirteen (13) defendants were arrested for outstanding state charges in connection with this operation.
This operation was conducted as part of the Eastern District of North Carolina Take Back North Carolina Initiative which brings the full weight and resources of the federal court system in the fight against crime in Nash, Edgecombe, Wilson, and Pitt Counties in partnership with The District Attorney’s Office as well as federal, state, and local law enforcement.
The following individuals were charged by way of Criminal Indictment. The individual charges for each defendant is contained in the parenthesis following the personal information.
- Marquavious Harold Carr, 29, of Elm City, NC (Conspiracy to Distribute and Possess with Intent to Distribute One Hundred (100) Grams or More of Heroin, Twenty-Eight (28) Grams or More of Cocaine Base (Crack), and a Quantity of Cocaine and Marijuana)
- Angelo McKinley Cooper, 29, of Rocky Mount, NC (Possession with Intent to Distribute Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Felon in Possession of a Firearm)
- Ronnie Renault Foreman, 39, of Greenville, NC (Felon in Possession of a Firearm, and Aiding and Abetting)
- Terance Earl Foreman, 33, of Greenville, NC (Felon in Possession of a Firearm, and Aiding and Abetting)
- Cohn Deangelo Hinton, 48, of Rocky Mount, NC (Conspiracy to Distribute and Possess with Intent to Distribute Five Hundred (500) Grams or More of Cocaine, One Hundred (100) Grams or More of Heroin, and a Quantity of Cocaine Base (Crack) and Marijuana)
- Keyonta Tarezze Langley, 30, of Greenville, NC (Felon in Possession of a Firearm)
- De’Andre Anthony Lucas, 28, of Wilson, NC (Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base (Crack) and Heroin)
- Shaquandra McAllister, 28, of Wilson, NC (Conspiracy to Distribute and Possess with Intent to Distribute Twenty-Eight (28) Grams or More of Cocaine Base (Crack), and a Quantity of Cocaine and Heroin)
- Marquice Quashawn McCoy, 30, of Rocky Mount, NC (Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base (Crack) and Heroin)
- Trawn Joval Rodgers, 38, of Greenville, NC (Distribution of Cocaine)
- Kendrick Dequan Rogers, 25, of Raleigh, NC (Conspiracy to Distribute and Possess with Intent to Distribute Five Hundred (500) Grams or More of Cocaine, Twenty-Eight (28) Grams or More of Cocaine Base (Crack), One Hundred (100) Grams or More of Heroin, and Marijuana)
- Travis Kwymaine Ruffin, 28, of Wilson, NC (Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base (Crack) and Heroin)
- Michael Speight, 26, of Elm City, NC (Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base (Crack))
- Rodney Durrell Thomas, 20, of Elm City, NC (Conspiracy to Distribute and Possess with Intent to Distribute One Hundred (100) Grams or More of Heroin, Twenty-Eight (28) Grams or More of Cocaine Base (Crack), and a Quantity of Cocaine and Marijuana)
- Monte Marquis Thorne, 42, of Rocky Mount, NC (Possession with Intent to Distribute Cocaine and Cocaine Base (Crack); Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Felon in Possession of a Firearm)
- Brendon Rashad White, 20, of Wilson, NC (Conspiracy to Distribute and Possess with Intent to Distribute Five Hundred (500) Grams or More of Cocaine, One Hundred (100) Grams or More of Heroin, and a Quantity of Cocaine Base (Crack) and Marijuana)
- Jazmein Jaquae Wiggins, 39, of Rocky Mount, NC (Felon in Possession of a Firearm and Ammunition)
- Marcus Antwan Wiley, 29, of Elm City, NC (Conspiracy to Distribute and Possess with Intent to Distribute Heroin)
The charges and allegations contained in the Indictments are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The enforcement operation was conducted by the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), the United States Marshal Service, the Federal Bureau of Investigation (FBI), Nash County Sheriff’s Office, Wilson Police Department, Rocky Mount Police Department, Edgecombe County Sheriff’s Office, Tarboro Police Department, Spring Hope Police Department, Nashville Police Department, Greenville Police Department, Greenville Regional Drug Task Force, North Carolina State Bureau of Investigation, North Carolina Seventh Prosecutorial District Attorney’s Office, and the United States Probation Office.
Four Gang Members Indicted for Vicious Assault on 15-Year Old BoyRead the Press Release
An indictment was unsealed in Flint charging Doniel A. Heard of Canton, Talasha R. Willis of Flint, Kimberly A. Perryman of Mt. Morris, and Alina D. White of Waterford for their involvement in a vicious assault on a 15-year old boy, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Acting Special Agent in Charge Timothy T. Waters, Federal Bureau of Investigation, Detroit Division (FBI), John C. Mullaly, Chief of Police of the Genesee Township Police Department, and David S. Leyton, Genesee County Prosecuting Attorney.
Heard, Willis, Perryman, and White are each charged with a count of assault with a dangerous weapon in aid of racketeering, and a count of interference with commerce by robbery.
According to the indictment, the defendants, Heard, Willis, Perryman, and White, are members of a street gang known as “M.O.B. 662,” which is a set of the Bloods, a national criminal street gang. The defendants beat and robbed the 15-year old victim, then carved “M.O.B. 662” into his chest with a knife. The indictment alleges that the defendants assaulted the victim for the purpose of gaining entrance to and maintaining and increasing position in the gang.
“As alleged in the indictment, this was a brutal attack on a 15-year old boy by a violent street gang,” stated United States Attorney Schneider. “We will continue to vigorously prosecute violent street gangs, especially those who target children.”
“This case is a stark reminder that the influence of violent street gangs extends beyond the big cities and into smaller communities such as our own,” said Genesee County Prosecutor David Leyton. “We must be ever-vigilant in thwarting their activities and stopping them from gaining a foothold in Flint and Genesee County and the prosecution of this case is a part of that effort,” he said.
“The defendants’ vicious attack of a 15-year old child is the type of senseless violence that if left unchecked can eat away at the core of a community,” stated Timothy T. Waters, Acting Special Agent in Charge of the Detroit FBI. “The FBI, in collaboration with our local and state partners, is dedicated to protecting our neighborhoods from violent street gangs and securing safety for our communities.”
“During the Genesee Township Police Department’s investigation, it became obvious that the nature of the robbery and maiming of the juvenile victim was part of a larger organized gang related activity. Our agency worked closely with the United States Attorney’s Office, the Genesee County Prosecutor’s Office, and with our State and Federal law enforcement partners to identify and apprehend the criminal parties responsible for this heinous attack,” said Chief Mullaly.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the Genesee Township Police Department and special agents of the FBI, with assistance from the Genesee County Prosecutor’s Office. The case is being prosecuted by Assistant United States Attorneys Chris Rawsthorne, Ann Nee, and Anthony Vance.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national, residing illegally in the United States, was sentenced today in federal court in Boston for identity theft and related charges.
Willy Antonio Hernandez Camilo, 34, a Dominican national previously residing in Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years and a day in prison and three years of supervised release. Hernandez Camilo will be subject to deportation proceedings upon completion of his sentence. In March 2018, Hernandez Camilo pleaded guilty to one count of passport fraud, two counts of misuse of a Social Security number, and two counts of aggravated identity theft.
In 2014, Hernandez Camilo applied for a passport at a Methuen post office purporting to be a U.S. citizen. On the application he represented that the name, Social Security number, and date of birth of a Puerto Rican man were his. He supported the application with a birth certificate and a 2012 Massachusetts driver’s license, both in the victim’s name. In 2016, Hernandez Camilo went to a Massachusetts Registry of Motor Vehicles office in Haverhill and applied to renew his Massachusetts driver’s license. Again, he represented the victim’s identity to be his own. Hernandez Camilo admitted that he knew the identity he used was not fabricated but belonged to a real person.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State, Bureau of Diplomatic Security, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national, living illegally in the United States, pleaded guilty yesterday and was sentenced in federal court in Boston in connection with misusing a Social Security number and identity theft.
Saly Romero Aquino, a/k/a Saly Nicaury Romero Aquino, a/k/a Saly Nicauri Romero Aquino, a/k/a Saly Nicauri Romero Tejada, 33, a Dominican national residing in Lawrence, pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Indira Talwani accepted Romero Aquino’s plea and immediately sentenced her to two years and a day in prison and 18 months of supervised release. Romero Aquino will be subject to deportation upon completion of her sentence.
On Feb. 25, 2013, Romero Aquino walked into a Social Security Administration field office in Lawrence and applied for a replacement Social Security card in the name of a U.S. citizen who was born in Puerto Rico and later moved to upstate New York. Romero Aquino claimed that the victim’s Social Security number was her own. As proof of identity, she presented a Massachusetts driver’s license that was in the victim’s name but contained a photo of herself. The application was granted. A replacement card bearing the victim’s name and Social Security number was mailed to the Lawrence address that Romero Aquino had used on her application.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Juan Laboy, 44, a Dominican national residing in Lawrence, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 15, 2018.
Laboy, who is currently on federal supervised release for a 2016 illegal reentry conviction, has previously been deported five times: Oct. 18, 2006; Jan. 12, 2008; April 7, 2010; Dec. 3, 2013; and April 5, 2016.
On Nov. 14, 2017, law enforcement arrested Laboy and charged him with trafficking in cocaine. Laboy’s prints were obtained and found to match the prints in his Alien file. The cocaine trafficking charges are currently pending in Lawrence District Court.
Immediately following his plea hearing before Judge Young, Laboy appeared before U.S. District Court Judge Allison D. Burroughs for a hearing related to violating his supervised release. Judge Burroughs found Laboy in violation of his supervised release and sentenced him to eight months in prison.
The charge of illegal reentry provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and Laboy will be subject to deportation upon completion of his sentence. 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 Rebecca J. Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A Dominican national, who is illegally in the United States, pleaded guilty yesterday in federal court in Boston to charges related to identity theft.
Kelny Andujar, a/k/a Kelny Alberto Andujar Pinales, 36, a Dominican national residing in Lawrence, pleaded guilty to one count of passport fraud, one count of misusing a Social Security number, and two counts of aggravated identity theft. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Sept. 13, 2018. Andujar has been in custody since his arrest in March 2018.
In March 2016, Andujar went to a post office in Lawrence and applied for a U.S. passport. He applied in the name of a U.S. citizen who lives in Puerto Rico and listed that citizen’s date of birth, place of birth and Social Security number. Andujar supported his application with a certified copy of the victim’s birth certificate, a Social Security card bearing the victim’s name and Social Security number, and a Massachusetts ID card bearing Andujar’s photo but the victim’s name. The passport application was denied.
In November 2016, Andujar went to the Registry of Motor Vehicles in Wilmington and applied for a duplicate Massachusetts ID card in the victim’s name. Andujar represented that the victim’s name, date of birth, and Social Security number were his own. The application was granted, and Andujar was issued a replacement ID card bearing his photo with the victim’s name.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Andujar will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Sentenced to Five Years in Prison for Robbing Banks in Downtown WashingtonRead the Press Release
WASHINGTON – Timothy L. Jennings, Sr., 61, of Washington, D.C., was sentenced today to five years in prison for robbing two banks in downtown Washington, announced U.S. Attorney Jessie K. Liu, Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jennings pled guilty in April 2018, in the U.S. District Court for the District of Columbia, to two counts of bank robbery. He was sentenced by the Honorable Tanya S. Chutkan. In addition to the prison term, Jennings was ordered to pay a total of $1,367 in restitution to the two banks. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, Jennings carried out the first robbery on July 17, 2017, at approximately 9:05 a.m., targeting a SunTrust Bank in the 900 block of 17th Street NW. Jennings told a teller: “This is a robbery and I have a gun and I'll shoot you,” and demanded money. The teller handed him a total of $926 and Jennings fled the scene.
The second robbery took place four days later, on July 21, 2017, at approximately 9:20 a.m. This time, Jennings entered an M&T Bank in the 500 block of 12th Street NW and handed the teller a note demanding money. The teller handed him $441 and Jennings fled.
In his plea, Jennings also accepted responsibility for two additional bank robberies, which took place later on the morning of July 21, within an hour of the M&T Bank robbery. In both incidents, he left the banks without money. One attempt took place at a BB&T branch in the 800 block of Connecticut Avenue NW and the other at a Bank of America branch in the 800 block of 17th Street NW. Hours after these incidents, officers from the Metropolitan Police Department located Jennings and arrested him. He has been in custody ever since.
At the time of these offenses, Jennings had been on supervised release for a few months after serving more than 10 years in prison for several additional bank robberies.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge DeSarno, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They expressed appreciation for the efforts of those who worked in the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
Decatur Man Sentenced to 30 Years in Prison for Plan to Kidnap Woman and Sell Daughter into Sex TradeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Decatur man involved in a kidnapping and child sex-trafficking plot to 30 years in prison, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge R. David Proctor sentenced BRIAN DAVID “Blaze” BOERSMA, 49, for attempted kidnapping of a minor, attempted kidnapping, attempted sex trafficking of a child, possession of a firearm by a convicted felon and possessing a firearm in furtherance of a violent crime. Boersma pleaded guilty to the charges in March.
Boersma had a detailed plan to kidnap a woman and her 14-year-old daughter, sexually assault and torture the woman, and sell her child into the sex trade, according to court records. Boersma falsely implicated the woman’s ex-husband in the kidnapping plot.
“Boersma’s actions will forever remain despicable and the horrors that he intended upon innocent victims was avoided because a concerned citizen heard something and then said something,” Town said. “There is only one place suitably worse than prison for Boersma…and that day will come, too.”
“Boersma is now being held accountable for his depraved and abhorrent behavior,” Sharp said. “I, particularly, want to thank my agents and our partners at the Decatur Police Department for their work in bringing Boersma to justice. The FBI and our law enforcement partners are committed to aggressively seeking out those who exploit innocent victims.”
Boersma worked at the Alabama Farmers’ Cooperative in Decatur shuttling trailers from the storage yard to the warehouse where they would be loaded with merchandise to ship to other locations. His plea agreement with the government lays out his efforts in the fall of 2017 to encourage a co-worker at the co-op to find someone willing to kidnap a woman and her daughter for payment. Boersma, in installments, gave the co-worker $3,440 to hold for a kidnapping payment. The co-worker alerted the FBI to Boersma’s plan in mid-September and the bureau sent two undercover employees to pose as willing kidnappers.
According to Boersma’s plea agreement, he intended to carry out the kidnappings and child sex-trafficking as follows:
Boersma boasted to his co-worker that he would sell the child to a pimp he knew in Memphis, Tenn., and hoped to get as much as $40,000 because she was “a young, clean virgin.” Ultimately, his contact in Memphis offered him only $8,000 for the girl, Boersma said.
Boersma had outfitted a trailer at the co-op with a mattress and restraints for holding the mother and daughter. He also placed inside the trailer a metal “sex device” he had built so the woman could be tied to it, beaten and raped.
Boersma falsely claimed that the woman’s ex-husband wanted the woman and child kidnapped as retribution for the woman divorcing him and taking him to court for child support. He said the ex-husband wanted to beat the woman with a bullwhip and it would be a “bloody mess” in the trailer. He said he put plastic down inside the trailer to help with clean up.
Boersma also told the undercover FBI employees that once the woman was dead, he would “have to go get 300 pounds of lime and dig a hole.” He said he would get the lime from the co-op and bury the body under a nearby bridge.
On Oct. 10, Boersma and his co-worker met at a Decatur hotel with the undercover FBI agents who Boersma believed would kidnap the mother and child. Boersma told the agents what he wanted done, provided photos of the two intended victims and handed the agents $3,440. He then led the agents to the woman’s workplace, to her home and to the co-op, where he showed them the trailer he had prepared for holding the victims.
Shortly after returning to the hotel, police arrested Boersma as he approached his pickup truck. A loaded Smith & Wesson M&P .40-caliber pistol was recovered in a subsequent search of the truck. Boersma was prohibited from possessing the gun because of a felony unlawful possession of a controlled substance conviction in Shelby County, Tenn., in 1998.
The FBI investigated the case in conjunction with the Decatur Police Department. Assistant U.S. Attorney Davis Barlow prosecuted the case.
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Daniel Burgess Imprisoned for Securities FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Daniel Burgess, 51, of Stowe, was sentenced in United States District Court in Rutland to 24 months of imprisonment following his guilty plea to a charge of wire fraud. Chief U.S. District Judge Geoffrey Crawford also ordered that Burgess serve a three-year term of supervised release following completion of his prison sentence and pay restitution in the amount of $248,900. The court directed Burgess to surrender to the Bureau of Prisons on July 24 to begin serving his sentence.
On October 27, 2016, a federal grand jury in Burlington returned a one-count wire fraud indictment against Burgess. According to the indictment, Burgess engaged in the business of buying and selling securities through a company he owned named Tucker Financial Services. The indictment alleges that in July 2011, Burgess entered into a contract with a woman from Nevada in which Burgess agreed to try to sell 520,000 shares of a penny stock the woman owned. Under the terms of the agreement, the woman would receive 80% of the gross proceeds of any stock sales and Burgess would be entitled to the remaining 20%.
The indictment charges that between August and October 2011, Burgess sold all 520,000 shares of the stock for a total of about $619,000. The woman’s 80% share of the sale proceeds was about $495,000. Burgess paid her about $246,000, but fraudulently converted the remaining money to his own use. Among other things, he financed an expensive European wedding and honeymoon with his victim’s money.
This case was investigated by the Federal Bureau of Investigation and the Vermont Department of Financial Regulation.
Burgess is represented by Brice Simon. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Dallas Man Arrested at Los Angeles International Airport on $62.6 Million Investment Fraud SchemeRead the Press Release
DALLAS—Christopher A. Faulkner, 41, from Dallas, Texas, was arrested Monday, June 18, 2018, at the Los Angeles International Airport by special agents with the Internal Revenue Service-Criminal Division (IRS-CI), Federal Bureau of Investigation (FBI), with assistance from Customs and Border Patrol. Faulkner was arrested on a federal complaint, charging him with securities fraud, mail fraud and money laundering, in connection with a scheme to defraud investors of millions of dollars. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Faulkner made an appearance Monday in Los Angeles, California before a U.S. Magistrate Judge and will remain in custody pending further court hearings in Dallas, Texas.
According to the filed criminal complaint affidavit, between 2011 and 2016, Faulkner established and controlled several oil and gas companies located in Texas. On April 28, 2016, the IRS-CI and FBI executed search warrants and seized documents and electronic data from Breitling Oil and Gas Inc., Crude Energy, LLC and Patriot Energy, Inc., offices located in Dallas, Texas.
According to the criminal complaint affidavit, as part of the scheme to defraud investors, Faulkner made fraudulent misrepresentations to investors and raised over $62.6 million in investor funds through the sale of working interest units in 16 drilling prospects.
The affidavit alleges Faulkner’s companies marketed the working interest programs using multiple forms of misrepresentations, to include the hyperinflation of reasonable estimated costs to drill and test the well, which resulted in huge undisclosed profits to Faulkner’s companies. Well operators for each of Faulkner’s prospects created a written estimate of costs to drill a well in the form of an “Authority for Expenditure” (“AFE”) and provided these to Faulkner. However, these estimates were never included in the offering materials provided to investors. Instead, examination of emails and Faulkner’s computer, seized from his office, showed he commonly created AFEs in the name of the operator, but grossly inflated the estimated costs.
Additionally, the affidavit claims Faulkner made fraudulent misrepresentations to investors by having oversold many of the programs the company offered, and used inflated reports and production estimates supplied by a third party geologist. An examination of Faulkner’s seized computer and emails, revealed Faulkner was closely affiliated to the third party geologist and increased the already inflated estimates.
The affidavit further alleges that substantially all the investor money was transferred from segregated well accounts into general and operating bank accounts. Faulkner diverted significant amounts of investor funds for his own benefit while investors received minimal returns on their investment.
According to the affidavit, between 2011 and 2013, Breitling received investments totaling $41.4 million. However, the investors received less than $2.4 million of their initial investment. Faulkner, during this same period of time, received approximately $8 million in cash disbursements from Breitling. In addition to these direct cash payments, Faulkner also received at least $1.9 million of additional benefits by virtue of Breitling paying for personal expenses on credit cards and more than $2 million of investor funds on personal expenses in direct charges to its bank accounts.
Additionally, the affidavit states, in 2014 and 2015, Faulkner, by virtue of Crude Energy, LLC and Patriot Energy, Inc., diverted $13.8 million of commingled investor funds by means of $6.1 million in cash disbursements and approximately $7.7 million in personal American Express card charges. Additionally, the companies also paid more than $4 million in personal expenses through its bank accounts.
The complaint alleges Faulkner used the investor money to finance a lavish lifestyle that included high end vehicles, expensive jewelry, clothing, art, home improvements, professional concierge services, and chartered flights.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the charged offenses is 35 years in federal prison and a $750,000 fine.
The investigation is being conducted by the Internal Revenue Service-Criminal Division, Federal Bureau of Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
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